Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call October 30, 2024 1 Third Quarter 2024 Earnings Conference Call
Slide 2: Forward-Looking Statements
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 October 30, 2024. We believe that our expectations and assumptions are reasonable. Actual
Slide 3: Opening Remarks
Opening Remarks • Very strong 3Q24 that exceeded our expectations – Higher YoY operating income in both Ocean Transportation and Logistics • Ocean Transportation 3Q24: – China service was the primary driver of the increase in consolidated operating income YoY – Higher YoY volume in Alaska – Hawaii a
Slide 4: Hawaii Service
Hawaii Service Third Quarter 2024 Performance Container Volume (FEU Basis) • Container volume decreased 2.2% YoY due to lower general demand 41,000 • Slow economic growth with stalled growth in 39,000 statewide tourist arrivals 37,000 (2.2)% 35,000 Full Year 2024 Outlook 33,000 • Expect volume in 20
Slide 5: Hawaii Service – Current Business Trends
Hawaii Service – Current Business Trends Select Hawaii Economic Indicators UHERO Projections (3) Unemployment Rate and Visitor Arrivals by Air 2024P 2025P 2026P 10.0% 1,000 Real GDP 1.0% 2.8% 2.3% 9.0% 900 Construction Jobs Growth 4.8% 2.9% 0.6% 8.0% 800 Population Growth (0.2)% 0.0% 0.1% Visitor Ar
Slide 6: China Service
China Service Third Quarter 2024 Performance Container Volume (FEU Basis) • Container volume increased 2.6% YoY 43,000 2.6% – Two additional sailings in 3Q24 38,000 • Significantly higher freight rates YoY for both the CLX and MAX 33,000 28,000 23,000 18,000 13,000 8,000 Q1 Q2 Q3 Q4 2023 2024 Note:
Slide 7: China Service – Current Business Trends
China Service – Current Business Trends • The elevated freight rates in 3Q24 were primarily due to a traditional peak season with strong freight demand and additional factors including: – A resilient U.S. economy and a stable consumer demand environment coupled with tighter supply chain conditions •
Slide 8: Guam Service
Guam Service Third Quarter 2024 Performance Container Volume (FEU Basis) • Container volume decreased 9.4% YoY 5,500 – Primarily due to lower demand from retail and food and beverage segments 5,000 (9.4)% 4,500 Full Year 2024 Outlook 4,000 • Expect Guam’s economy to remain stable with a low unemploy
Slide 9: Alaska Service
Alaska Service Third Quarter 2024 Performance Container Volume (FEU Basis) • Container volume increased 1.4% YoY due to 24,000 higher retail-related demand 1.4% 22,000 20,000 18,000 Full Year 2024 Outlook 16,000 • Expect continued economic growth in Alaska 14,000 supported by a low unemployment rate
Slide 10: SSAT Joint Venture
SSAT Joint Venture Third Quarter 2024 Performance Equity in Income of Joint Venture • Terminal joint venture contribution was $6.9 $ 8.0 million; YoY increase of $5.6 million $ 7.0 – Primarily due to higher lift volume $ 6.0 $ 5.0 Full Year 2024 Outlook $ 4.0 $ in millions $ 3.0 • Expect contributio
Slide 11: Matson Logistics
Matson Logistics Third Quarter 2024 Performance Operating Income • Operating income of $15.4 million; YoY increase $ 18.0 of approximately $1.5 million $ 16.0 – Higher contributions from supply chain management and transportation brokerage $ 14.0 $ 12.0 $ in millions Fourth Quarter 2024 Outlook $ 10
Slide 12: Financial Results – Summary Income Statement
Financial Results – Summary Income Statement Year-to-Date Third Quarter YTD Ended 9/30 Δ Quarter Ended 9/30 Δ ($ in millions, except per share data) 2024 2023 $ % 2024 2023 $ % Revenue Ocean Transportation $ 2,067.6 $ 1,837.3 $ 230.3 12.5% $ 798.7 $ 669.4 $ 129.3 19.3% Logistics 463.9 468.4 ( 4.5) (
Slide 13: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Last Twelve Months Ended September 30, 2024 $800.0 $704.5 ($39.7) $700.0 ($205.0) $600.0 $500.0 ($40.6) $ in millions ($35.5) $400.0 ($44.7) ($214.4) $300.0 $200.0 ($12.3) $112.3 $100.0 $0.0 Cash Flow from Paydown of Maint. New Vessel Capital Dividends Share Other Ne
Slide 14: Financial Results – Summary Balance Sheet
Financial Results – Summary Balance Sheet September 30, December 31, ($ in millions) 2024 2023 ASSETS Cash and cash equivalents $ 270.3 $ 134.0 Other current assets 381.5 468.3 Total current assets 651.8 602.3 Share Repurchase Investment in SSAT 93.3 85.5 Property and equipment, net 2,190.6 2,089.9
Slide 15: 2024 Outlook
2024 Outlook 4Q24 Outlook FY 2024 Outlook Items Approximately $180 million, Depreciation and including $27 million in dry-dock Ocean Transportation – Operating Income Amortization amortization To be meaningfully higher than the 4Q24 $66.4 million achieved in 4Q23 Interest Income Approximately $47 mi
Slide 16: Revised Capital Expenditures Outlook
Revised Capital Expenditures Outlook ($ in millions) FY 2024 Comments Maintenance and other capital $110 – 120 expenditures Expenditures for LNG $85 – 90 • Kaimana Hila LNG installation complete and exited drydock in October installations and reengining • No additional conversion projects planned on
Slide 17: New Vessel Update
New Vessel Update • On September 30th, began construction on the first of three new “Aloha Class” containerships for the CLX – Upon delivery, vessels will have dual- fuel engines capable of operating on both conventional marine fuels and LNG • New vessels expected to carry ~15,000 Cutting of steel a
Slide 18: New Vessel Milestone Payment Schedule
New Vessel Milestone Payment Schedule As of September 30th, our cash and cash equivalents and CCF combined exceed our remaining milestone payments. ($ in millions as of 9/30/24) Milestone Payments Schedule 4Q24 (paid from cash and cash equivalents) $36 1Q25 82 2Q25 36 3Q25 120 4Q25 131 FY 2025 $369
Slide 19: Appendix
Appendix 19 Third Quarter 2024 Earnings Conference Call
Slide 20: Appendix – Non-GAAP Measures
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, help investors understand our ability to incur and