Slide 1: Second Quarter 2022 Earnings Conference Call
1 Second Quarter 2022 Earnings Conference Call Second Quarter 2022 Earnings Conference Call August 1, 2022
Slide 2: Forward-Looking Statements
2 Second Quarter 2022 Earnings Conference Call Forward - Looking Statements Statements made during this presentation that set forth expectations, predictions, projections or are about future events are based on facts and situations that are known to us as of August 1, 2022. We believe that our expec
Slide 3: Opening Remarks
3 Second Quarter 2022 Earnings Conference Call Opening Remarks • Recap of Matson’s 2Q22 results: – Matson performed well with higher year - over - year operating income in both Ocean Transportation and Logistics • Ocean Transportation: – China service continued to see significant demand – Higher yea
Slide 4: Views on Current Market Environment: Domestic tradelanes
4 Second Quarter 2022 Earnings Conference Call Views on Current Market Environment Domestic tradelanes • Local economies continue to recover from pandemic lows – Hawaii: tourism outlook remains strong and expect increasing international tourism arrivals as COVID - 19 wave in Asia recedes – Alaska: r
Slide 5: Views on Current Market Environment (continued): Transpacific tradelane
5 Second Quarter 2022 Earnings Conference Call Views on Current Market Environment (continued) Transpacific tradelane • Currently seeing solid demand for our China service • Some supply chain infrastructure issues slowly subsiding, but other uncertainties remain – China’s factory production continue
Slide 6: Our Current Priorities
6 Second Quarter 2022 Earnings Conference Call Our Current Priorities • Maintain vessel schedule and high - quality service for our Ocean Transportation and Logistics customers as the environment continues to evolve • Focus on organic growth opportunities and long - term investments – Making progres
Slide 7: Hawaii Service Second Quarter 2022 Performance
7 Second Quarter 2022 Earnings Conference Call Hawaii Service Second Quarter 2022 Performance • Container volume decreased 1.5% YoY primarily due to lower retail - related demand • Further improvement in the Hawaii economy supported by strong domestic tourist arrivals and modest improvement in inter
Slide 8: China Service Second Quarter 2022 Performance
8 Second Quarter 2022 Earnings Conference Call China Service Second Quarter 2022 Performance Container Volume (FEU Basis) 8,000 13,000 18,000 23,000 28,000 33,000 38,000 43,000 48,000 53,000 58,000 Q1 Q2 Q3 Q4 2021 2022 Note : CCX service started in 3Q21. 4Q21 volume figure includes the benefit of a
Slide 9: Guam Service Second Quarter 2022 Performance
9 Second Quarter 2022 Earnings Conference Call Guam Service Second Quarter 2022 Performance Container Volume (FEU Basis) 3,000 3,500 4,000 4,500 5,000 5,500 6,000 Q1 Q2 Q3 Q4 2021 2022 (7.0)% • Container volume decreased 7.0% YoY primarily due to lower retail - related demand
Slide 10: Alaska Service Second Quarter 2022 Performance
10 Second Quarter 2022 Earnings Conference Call Alaska Service Second Quarter 2022 Performance • Container volume increased 12.2% YoY – Higher northbound volume primarily due to: • Higher retail - related demand • Additional sailing – Higher AAX seafood volume Container Volume (FEU Basis) 10,000 12,
Slide 11: SSAT Joint Venture Second Quarter 2022 Performance
11 Second Quarter 2022 Earnings Conference Call SSAT Joint Venture Second Quarter 2022 Performance Equity in Income of Joint Venture $ 0.0 $ 5.0 $ 10.0 $ 15.0 $ 20.0 $ 25.0 $ 30.0 $ 35.0 $ 40.0 Q1 Q2 Q3 Q4 $ in millions 2021 2022 • Terminal joint venture contribution was $24.7 million; YoY change of
Slide 12: Matson Logistics Second Quarter 2022 Performance
12 Second Quarter 2022 Earnings Conference Call Matson Logistics Second Quarter 2022 Performance Operating Income $ 0.0 $ 5.0 $ 10.0 $ 15.0 $ 20.0 $ 25.0 Q1 Q2 Q3 Q4 $ in millions 2021 2022 • Operating income of $23.1 million; YoY change of $10.2 million • Higher YoY operating income contributions f
Slide 13: Financial Results – Summary Income Statement
13 Second Quarter 2022 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics. Year-to-Date Second Quarter YTD Ended 6/30 D D ($ in millions, except per share data) 2022 2021 $ 2022 2021 $ Revenue Ocean Tran
Slide 14: Cash Generation and Uses of Cash
14 Second Quarter 2022 Earnings Conference Call Cash Generation and Uses of Cash $ 0.0 $ 200.0 $ 400.0 $ 600.0 $ 800.0 $ 1,000.0 $ 1,200.0 $ 1,400.0 $ 1,600.0 Cash Flow from Operations Paydown of Borrowings, net Maintenance & Other Capex (1) New Vessel Capex (2) Dividends Share Repurchase Other Cash
Slide 15: Financial Results – Summary Balance Sheet
15 Second Quarter 2022 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $596.6 million (1) See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics. (1) Total Debt is presented before any reduction for deferred loan fees as required by GAAP. Deb
Slide 16: Update on New Vessel and LNG Projects
16 Second Quarter 2022 Earnings Conference Call Update on New Vessel and LNG Projects • Continue to evaluate refleeting options for the Alaska tradelane – Leaning towards the option to construct three new LNG - ready Aloha Class vessels for the CLX and move three smaller, older CLX vessels into the
Slide 17: Appendix
17 Second Quarter 2022 Earnings Conference Call Appendix
Slide 18: Hawaii Service – Current Business Trends
18 Second Quarter 2022 Earnings Conference Call Hawaii Service – Current Business Trends UHERO Projections (2) (1) Source: http://files.hawaii.gov/dbedt/economic/data_reports/mei/2022 - 06 - state.xls (2) Source: https://uhero.hawaii.edu/wp - content/uploads/2022/05/22Q2_Forecast.pdf 2020 2021 2022P
Slide 19: Appendix – Non-GAAP Measures
19 Second Quarter 2022 Earnings Conference Call Appendix – Non - GAAP Measures Matson reports financial results in accordance with U.S. generally accepted accounting principles ( “ GAAP ” ). The Company also considers other non - GAAP measures to evaluate performance, make day - to - day operating d