
| 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 service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Return on Invested Capital (“ROIC”), Return on Equity (“ROE”), Total Debt-to-EBITDA and Net Debt-to-EBITDA. $ in millions, except ROIC and roe 2012 2013 2014 2015 2016 2017 for the years ended December 31, total debt less: total cash and cash equivalents cash on deposit in capital construction fund net income add: loss from discontinued operations add: income taxes add: interest expense add: depreciation and amortization EBITDA net income(A) add: loss from discontinued operations add: interest expense (tax-effected)(2) total return (B) average total debt average shareholders’ equity (c) total invested capital (d) total invested capital (d) roic = (b)/(d) roe = (a)/(c) $319.1 $286.1 $373.6 $429.9 $738.9 $857.1 (19.9) (114.5) (293.4) (25.5) (13.9) (19.8) (27.5) (31.2) (0.9) 299.2 171.6 52.7 404.4 693.8 836.4 $45.9 $53.7 $70.8 $103.0 $81.4 $232.0(1) 6.1 33.0 32.2 51.9 74.8 49.1 (106.8)(1) 11.7 14.4 17.3 18.5 24.1 24.2 95.4 91.0 90.1 105.8 135.4 146.6 192.1 191.3 230.1 302.1 290.0 296.0 $45.9 $53.7 $70.8 $103.0 $81.4 $232.0(1) 7.2 9.0 10.0 10.7 15.1 14.9 59.2 62.7 80.8 113.7 96.5 246.9 $319.1(3) $302.6 $329.9 $401.8 $584.4 $798.0 279.9(3) 309.1 351.0 407.1 472.8 586.6 599.0(3) 611.7 680.9 808.9 1,057.2 1,384.6 9.9% 10.3% 11.9% 14.1% 9.1% 17.8% 16.4% 17.4% 20.2% 25.3% 17.2% 39.6% (1) includes the benefit of a one-time, on-cash adjustment of $155.0 million related to the enactment of the tax cuts and jobs act. (2) the effective tax rates each year in the period 2012-2017 were 38.8%, 37.5%, 42.3%, 42.1%, 37.6% and (85.3)%, respectively. In 2017, the adjusted effective tax rate, excluding the benefit of a one-time, non-cash adjustment related to the tax cuts and jobs act, would have been 38.5%. (3) the 2012 calculation is based on total invested capital as of December 31, 2012 due to the timing of the separation from alexander & baldwin. Oppenheimer Industrial Growth Conference 20 may 8, 2018 |