Slide 1: First Quarter 2022 Earnings Conference Call
1 First Quarter 2022 Earnings Conference Call First Quarter 2022 Earnings Conference Call May 3, 2022
Slide 2: Forward-Looking Statements
2 First 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 May 3, 2022. We believe that our expectati
Slide 3: Opening Remarks
3 First Quarter 2022 Earnings Conference Call Opening Remarks • Recap of Matson’s 1Q22 results: – Matson is off to a solid start in 2022 with higher year - over - year operating income in both Ocean Transportation and Logistics • Ocean Transportation: – China strength – continued strong demand for o
Slide 4: Hawaii Service First Quarter 2022 Performance
4 First Quarter 2022 Earnings Conference Call Hawaii Service First Quarter 2022 Performance • Container volume decreased 0.6% YoY – Primarily due to lower eastbound volume – Continued to see elevated hospitality - related demand – Strong domestic tourist arrivals and modest improvement in internatio
Slide 5: Hawaii Service – Current Business Trends
5 First Quarter 2022 Earnings Conference Call Hawaii Service – Current Business Trends Select Hawaii Economic Indicators (1) Source: http://files.hawaii.gov/dbedt/economic/data_reports/mei/2022 - 03 - state.xls (2) Source: https://uhero.hawaii.edu/wp - content/uploads/2022/03/22Q1_Forecast_r.pdf UHE
Slide 6: China Service First Quarter 2022 Performance
6 First Quarter 2022 Earnings Conference Call China Service First 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 5
Slide 7: China Service – Current Business Trends
7 First Quarter 2022 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 U.S. Retail Trade Inventories/Sales (Adjusted) Source: https://www.census.gov/mtis/www/data/text/timeseries1.xlsx • Transpacific tradelane is currently experiencing: – S
Slide 8: Guam Service First Quarter 2022 Performance
8 First Quarter 2022 Earnings Conference Call Guam Service First 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 10.0% • Container volume increased 10.0% YoY – Higher retail - related demand Current Business Trends • Cautiously op
Slide 9: Alaska Service First Quarter 2022 Performance
9 First Quarter 2022 Earnings Conference Call Alaska Service First Quarter 2022 Performance • Container volume increased 20.2% YoY – Increase in AAX seafood volume – Higher northbound volume primarily due to: • Higher retail - related demand • TOTE dry - dock volume – Higher southbound volume primar
Slide 10: SSAT Joint Venture First Quarter 2022 Performance
10 First Quarter 2022 Earnings Conference Call SSAT Joint Venture First 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 $34.0 million; YoY change of $
Slide 11: Matson Logistics First Quarter 2022 Performance
11 First Quarter 2022 Earnings Conference Call Matson Logistics First Quarter 2022 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 2021 2022 • Operating income of $16.4 million; YoY change of $10.3 million • Higher YoY operating
Slide 12: Financial Results – Summary Income Statement
12 First Quarter 2022 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics. First Quarter Quarters Ended 3/31 D ($ in millions, except per share data) 2022 2021 $ Revenue Ocean Transportation $ 943.9 $ 560
Slide 13: Cash Generation and Uses of Cash
13 First 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 Cash Flow from Operations Paydown of Borrowings, net Maintenance & Other Capex (1) New Vessel Capex (2) Dividends Share Repurchase Other Cash Flows Net Increase i
Slide 14: Financial Results – Summary Balance Sheet
14 First Quarter 2022 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $614.7 million (1) • Net Debt of $221.9 million (2) See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics. (1) Total Debt is presented before any reduction for deferred lo
Slide 15: Update on New Vessel and LNG Projects
15 First Quarter 2022 Earnings Conference Call Update on New Vessel and LNG Projects • Continue to evaluate refleeting options for the Alaska tradelane – Either three new purpose - built vessels for Alaska, or – Three new LNG - ready Aloha Class vessels for the CLX and move three smaller, older CLX
Slide 16: Closing Remarks
16 First Quarter 2022 Earnings Conference Call Closing Remarks • Supply chain issues likely to persist globally and potentially longer than many expect – expedited freight solutions will be in high demand to mange through this difficult supply chain environment – Consumer spending picture remains po
Slide 17: Appendix
17 First Quarter 2022 Earnings Conference Call Appendix
Slide 18: Appendix – Non-GAAP Measures
18 First 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 de