Slide 1: Third Quarter 2022 Earnings Conference Call
1 Third Quarter 2022 Earnings Conference Call Third Quarter 2022 Earnings Conference Call November 2, 2022
Slide 2: Forward-Looking Statements
2 Third 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 November 2, 2022. We believe that our expe
Slide 3: Opening Remarks
3 Third Quarter 2022 Earnings Conference Call Opening Remarks • Matson’s differentiated ocean services performed well in 3Q22, but the Company achieved lower year - over - year consolidated operating income – Lower demand for expedited ocean services in the Transpacific tradelane compared to the hig
Slide 4: Views on Current Market Environment
4 Third Quarter 2022 Earnings Conference Call Views on Current Market Environment Transpacific tradelane • In 3Q22, saw lower demand for expedited ocean services in the Transpacific tradelane – With less demand and easing port congestion in Southern California, the Company ended its temporary CCX se
Slide 5: Views on Current Market Environment (continued)
5 Third Quarter 2022 Earnings Conference Call Views on Current Market Environment (continued) Domestic tradelanes • Local economies continue to show economic growth – Hawaii: tourism outlook remains strong with international visitor traffic picking up; tight labor market with low unemployment rate –
Slide 6: Hawaii Service Third Quarter 2022 Performance
6 Third Quarter 2022 Earnings Conference Call Hawaii Service Third Quarter 2022 Performance • Container volume decreased 7.1% YoY primarily due to lower retail - related demand – YoY decline impacted by pandemic spike in demand in 3Q21 – 3Q22 volume higher than volume achieved in 3Q19 • During 3Q22,
Slide 7: China Service Third Quarter 2022 Performance
7 Third Quarter 2022 Earnings Conference Call China Service Third 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 and ended in 3Q22. 4Q21 volume figure includes
Slide 8: Guam Service Third Quarter 2022 Performance
8 Third Quarter 2022 Earnings Conference Call Guam Service Third 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 • Container volume decreased 1.8% YoY primarily due to lower retail - related demand – 3Q22 volume higher than volume
Slide 9: Alaska Service Third Quarter 2022 Performance
9 Third Quarter 2022 Earnings Conference Call Alaska Service Third Quarter 2022 Performance • Container volume increased 10.6% YoY – Higher AAX export seafood volume – Higher northbound volume primarily due to higher retail - related demand and volume related to a competitor’s dry - docking – Higher
Slide 10: SSAT Joint Venture Third Quarter 2022 Performance
10 Third Quarter 2022 Earnings Conference Call SSAT Joint Venture Third 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 $23.4 million; YoY change of $
Slide 11: Matson Logistics Third Quarter 2022 Performance
11 Third Quarter 2022 Earnings Conference Call Matson Logistics Third 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 $20.1 million; YoY change of approximately $4.1 million • Higher YoY operating income cont
Slide 12: Financial Results – Summary Income Statement
12 Third Quarter 2022 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics. INCOME STATEMENT SUMMARY DATA FEED Year-to-Date Third Quarter YTD Ended 9/30 D D ($ in millions, except per share data) 2022 2021
Slide 13: Cash Generation and Uses of Cash
13 Third 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 New Vessel Capex (1) Capital Construction Fund Dividends Share
Slide 14: Financial Results – Summary Balance Sheet
14 Third Quarter 2022 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $538.1 million (1) • Prepaid $50.4 million for all outstanding principal on Prudential Series C - 2 and C - 3 notes See the Addendum for a reconciliation of GAAP to non - GAAP Financial Metrics.
Slide 15: Update on New Vessel and LNG Projects
15 Third Quarter 2022 Earnings Conference Call Update on New Vessel and LNG Projects • On November 1 st , signed agreements with Philly Shipyard, Inc. for construction of three new LNG - ready Aloha Class vessels – New vessels for CLX service; will move three existing CLX vessels into Alaska service
Slide 16: Update on New Vessel and LNG Projects (continued)
16 Third Quarter 2022 Earnings Conference Call Update on New Vessel and LNG Projects (continued) • Three new Aloha Class vessels and LNG projects are important steps towards achieving Matson’s 2030 greenhouse emissions goal – Reduce Scope 1 greenhouse gas emissions from owned fleet by 40% by 2030 us
Slide 17: Closing Thoughts
17 Third Quarter 2022 Earnings Conference Call Closing Thoughts • Matson is well - positioned to capitalize on future opportunities in Ocean Transportation and Logistics – Leverage brand and portfolio of essential, high - quality businesses – CLX and CLX+ are the two fastest services in the Transpac
Slide 18: Appendix
18 Third Quarter 2022 Earnings Conference Call Appendix
Slide 19: Hawaii Service – Current Business Trends
19 Third Quarter 2022 Earnings Conference Call Hawaii Service – Current Business Trends UHERO Projections (2) (1) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2022 - 09 - state.xls (2) Source: https://uhero.hawaii.edu/wp - content/uploads/2022/09/22Q3_Forecast.pdf 2020 2021 2022P
Slide 20: Appendix – Non-GAAP Measures
20 Third 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