Slide 1: Fourth Quarter 2021 Earnings Conference Call
1 Fourth Quarter 2021 Earnings Conference Call Fourth Quarter 2021 Earnings Conference Call February 17, 2022
Slide 2: Forward-Looking Statements
2 Fourth 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 February 17, 2022. We believe that our ex
Slide 3: Opening Remarks
3 Fourth Quarter 2021 Earnings Conference Call Opening Remarks • Recap of Matson’s 4Q21 results: – Matson finished off a strong year with continued improvement in economic and business trends in our markets driving solid performance in both Ocean Transportation and Logistics – Ocean Transportation:
Slide 4: Hawaii Service Fourth Quarter 2021 Performance
4 Fourth Quarter 2021 Earnings Conference Call Hawaii Service Fourth Quarter 2021 Performance • Container volume increased 10.4% YoY – Higher retail and hospitality - related demand compared to 4Q20, which was negatively impacted by state’s COVID - 19 mitigation efforts – Includes benefit of extra w
Slide 5: Hawaii Service – Current Business Trends
5 Fourth Quarter 2021 Earnings Conference Call Hawaii Service – Current Business Trends Select Hawaii Economic Indicators (1) Source: http://files.hawaii.gov/dbedt/economic/data_reports/mei/2021 - 12 - state.xls (2) Source: https://uhero.hawaii.edu/wp - content/uploads/2021/12/21Q4_Forecast.pdf UHER
Slide 6: China Service Fourth Quarter 2021 Performance
6 Fourth Quarter 2021 Earnings Conference Call China Service Fourth 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 58,000 Q1 Q2 Q3 Q4 2020 2021 Note : 2Q20 volume figure includes volume related to seven CLX+ voyages. 3Q21 vo
Slide 7: China Service – Current Business Trends
7 Fourth 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 Oct. 2021 U.S. Retail Trade Inventories/Sales (Adjusted) Source: https://www.census.gov/mtis/www/d
Slide 8: Guam Service Fourth Quarter 2021 Performance
8 Fourth Quarter 2021 Earnings Conference Call Guam Service Fourth 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 14.0% • Container volume increased 14.0% YoY – Higher retail - related demand compared to pandemic - reduced level
Slide 9: Alaska Service Fourth Quarter 2021 Performance
9 Fourth Quarter 2021 Earnings Conference Call Alaska Service Fourth Quarter 2021 Performance • Container volume increased 10.2% YoY – Increase in Alaska - Asia Express (AAX) seafood volume – Includes benefit of extra week in 4Q21 – Higher southbound volume • 4Q21 volume 31.1% higher than 4Q19 volum
Slide 10: Alaska Service – Current Business Trends
10 Fourth Quarter 2021 Earnings Conference Call Alaska Service – Current Business Trends • Improving economic trends in Alaska, but economic recovery trajectory remains uncertain • Jobs market continues to improve off the pandemic lows, but challenges remain – Expectations for improvement in tourism
Slide 11: SSAT Joint Venture Fourth Quarter 2021 Performance
11 Fourth Quarter 2021 Earnings Conference Call SSAT Joint Venture Fourth Quarter 2021 Performance Equity in Income of Joint Venture $ 0.0 $ 5.0 $ 10.0 $ 15.0 $ 20.0 $ 25.0 Q1 Q2 Q3 Q4 $ in millions 2020 2021 Current Business Trends • Terminal joint venture contribution was $21.3 million; YoY change
Slide 12: Matson Logistics Fourth Quarter 2021 Performance
12 Fourth Quarter 2021 Earnings Conference Call Matson Logistics Fourth 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 $49.8 million; YoY change of $14.3 million – Higher contributio
Slide 13: Financial Results – Summary Income Statement
13 Fourth Quarter 2021 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics. (1) The 4Q21 income taxes benefited from a deduction related to foreign - derived intangible income (“FDII”) under section 250 o
Slide 14: Cash Generation and Uses of Cash
14 Fourth Quarter 2021 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 (3) Other Cash Flows Net Incre
Slide 15: Financial Results – Summary Balance Sheet
15 Fourth Quarter 2021 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $629.0 million (2) – $18.2 million and $131.1 million of debt reduction in 4Q21 and FY2021, respectively • Net Debt of $346.6 million (3) See the Addendum for a reconciliation of GAAP to non - G
Slide 16: Review of 2021 Capital Expenditures
16 Fourth Quarter 2021 Earnings Conference Call Review of 2021 Capital Expenditures FY 2021 Comments Operating lease terminations / early buy - outs $117.3 million • $95.8 million for termination of Maunalei operating l ease • $21.5 million related to buyouts on Mauna Loa and other equipment Equipme
Slide 17: Capital Expenditures Update
17 Fourth Quarter 2021 Earnings Conference Call Capital Expenditures Update FY 2022 FY 2023 Comments Maintenance and other capital expenditures $80 – 90 million Approximately $75 million • Includes Phase II work at Sand Island and gantry crane enhancements • Includes lease buyouts on equipment • Inc
Slide 18: Appendix
18 Fourth Quarter 2021 Earnings Conference Call Appendix
Slide 19: Appendix – Non-GAAP Measures
19 Fourth 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 d