Slide 1: Third Quarter 2021 Earnings Conference Call
1 Third Quarter 2021 Earnings Conference Call Third Quarter 2021 Earnings Conference Call November 3, 2021
Slide 2: Forward-Looking Statements
2 Third Quarter 2021 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 November 3, 2021. We believe that our expect
Slide 3: Opening Remarks
3 Third Quarter 2021 Earnings Conference Call Opening Remarks • Recap of Matson’s 3Q21 results: – Solid performance in Matson’s Ocean Transportation and Logistics businesses – strong economic and business trends in the second quarter continued in the third quarter – Ocean Transportation: • China str
Slide 4: Hawaii Service Third Quarter 2021 Performance
4 Third Quarter 2021 Earnings Conference Call Hawaii Service Third Quarter 2021 Performance • Container volume increased 11.5% YoY – Higher retail and hospitality-related demand compared to 3Q20, which was negatively impacted by state’s COVID- 19 mitigation efforts – Continued rebound in tourism and
Slide 5: Hawaii Service – Current Business Trends
5 Third Quarter 2021 Earnings Conference Call Hawaii Service – Current Business Trends Select Hawaii Economic Indicators (1) Source: https://www.hawaiitourismauthority.org/media/7923/july-21revised.xlsx (2) Source: https://www.hawaiitourismauthority.org/media/7969/aug-21finalrev.xlsx (3) Source: htt
Slide 6: China Service Third Quarter 2021 Performance
6 Third Quarter 2021 Earnings Conference Call China Service Third Quarter 2021 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 Q1 Q2 Q3 Q4 2020 2021 Note: 2Q 2020 volume figure includes volume related to seven CLX+ voyages. 3Q21 volume fi
Slide 7: China Service – Current Business Trends
7 Third Quarter 2021 Earnings Conference Call China Service – Current Business Trends 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 Jan. 2020 Apr. 2020 Jul. 2020 Oct. 2020 Jan. 2021 Apr. 2021 Jul. 2021 U.S. Retail Trade Inventories/Sales (Adjusted) Source: https://www.census.gov/mtis/www/data/text/ti
Slide 8: Guam Service Third Quarter 2021 Performance
8 Third Quarter 2021 Earnings Conference Call Guam Service Third Quarter 2021 Performance Container Volume (FEU Basis) 3,000 3,500 4,000 4,500 5,000 5,500 6,000 Q1 Q2 Q3 Q4 2020 2021 14.6% • Container volume increased 14.6% YoY – Higher retail-related demand compared to pandemic-reduced level in yea
Slide 9: Alaska Service Third Quarter 2021 Performance
9 Third Quarter 2021 Earnings Conference Call Alaska Service Third Quarter 2021 Performance • Container volume increased 10.7% YoY – Addition of Alaska-Asia Express (AAX) seafood volume – Additional northbound sailing – Higher retail-related demand – Higher southbound volume • 3Q21 volume 12.4% high
Slide 10: SSAT Joint Venture Third Quarter 2021 Performance
10 Third Quarter 2021 Earnings Conference Call SSAT Joint Venture Third Quarter 2021 Performance Equity in Income of Joint Venture $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 $ 14.0 Q1 Q2 Q3 Q4 $ in millions 2020 2021 Current Business Trends • Terminal joint venture contribution was $13.0 million, $
Slide 11: Matson Logistics Third Quarter 2021 Performance
11 Third Quarter 2021 Earnings Conference Call Matson Logistics Third Quarter 2021 Performance Operating Income $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 $ 14.0 $ 16.0 $ 18.0 Q1 Q2 Q3 Q4 $ in millions 2020 2021 • Operating income of $16.0 million; YoY change of $4.1 million – Higher contributions
Slide 12: Financial Results – Summary Income Statement
12 Third Quarter 2021 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics.
Slide 13: Cash Generation and Uses of Cash
13 Third Quarter 2021 Earnings Conference Call Cash Generation and Uses of Cash ($ 50.0) $ 50.0 $ 150.0 $ 250.0 $ 350.0 $ 450.0 $ 550.0 $ 650.0 $ 750.0 $ 850.0 Cash Flow from Operations Paydown of Borrowings, net Maint. Capex (1) New Vessel Capex (2) Dividends Share Repurchase Other Cash Flows Net I
Slide 14: Financial Results – Summary Balance Sheet
14 Third Quarter 2021 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $647.2 million(1) – $14.3 million of debt reduction in 3Q21 • Net Debt of $571.3 million(2) See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics. (1) Total Debt is presente
Slide 15: Sustainability Strategy
15 Third Quarter 2021 Earnings Conference Call Sustainability Strategy • We believe we have a responsibility to significantly reduce our impact on climate change by lowering our greenhouse gas (GHG) emissions Short-term goal • State-of-the-art Aloha and Kanaloa Class vessels • Recycle the last of ou
Slide 16: Sustainability Strategy – Environmental Stewardship
16 Third Quarter 2021 Earnings Conference Call Sustainability Strategy Environmental Stewardship • LNG installation on Daniel K. Inouye – currently scheduled for 1Q23 and to last ~5 months – Current estimated total cost of ~$35 million – Current engine is dual-fuel capable • Actively considering LNG
Slide 17: Sustainability Strategy – Environmental Stewardship (continued)
17 Third Quarter 2021 Earnings Conference Call Sustainability Strategy Environmental Stewardship (continued) • In order to achieve our 2030 goal, we currently believe we would need to have eight vessels operating on LNG by the end of the decade: – Current Aloha Class vessels (Daniel K. Inouye and Ka
Slide 18: Appendix
18 Third Quarter 2021 Earnings Conference Call Appendix
Slide 19: Appendix – Non-GAAP Measures
19 Third Quarter 2021 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 decisions, hel