ZIM INTEGRATED SHIPPING SERVICES LTD. Investor Presentation
Q1 2024 FINANCIAL RESULTS
May 21, 2024
Disclaimer
Forward-Looking Statements
This presentation contains or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business as well as its intended dividend policy. These statements are only predictions based on the Company's current expectations and projections about future events or results. There are important factors that could cause the Company's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: market changes in freight, bunker, charter and other rates or prices, new legislation or regulation affecting the Company's operations, new competition and changes in the competitive environment, the outcome of legal proceedings to which the Company is a party, and other risks and uncertainties detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including under the caption "Risk Factors" in its 2023 Annual Report.
Although the Company believes that the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except as otherwise required by law.
The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
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Investor Presentation
Use of non-IFRS financial measures
The Company presents non-IFRS measures as additional performance measures as the Company believes that it enables the comparison of operating performance between periods on a consistent basis. These measures should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. Please note that Adjusted EBITDA does not take into account debt service requirements, or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company's use. In addition, Non-IFRS financial measures, as those presented by the Company, may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated.
Adjusted EBITDA: net income (loss) adjusted to exclude financial expenses (income), net, income taxes, depreciation and amortization in order to reach EBITDA, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.
Adjusted EBIT: net income (loss) adjusted to exclude financial expenses (income), net and income taxes, in order to reach our results from operating activities, or EBIT, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.
Free cash flow: net cash generated from operating activities minus capital expenditures, net.
Total cash position: includes cash and cash equivalents and investments in bank deposits and other investment instruments.
Net debt: face value of short- and long-term debt, minus cash and cash equivalents, bank deposits and other
investment instruments. Net cash: cash and cash equivalents, bank deposits and other investment instruments exceeding the face value of short- and long-term debt.
Net leverage ratio: net debt (defined above) divided by Adjusted EBITDA of the last twelve-month period.
Positive Momentum into 2024
Leverage stronger freight rates
to deliver positive earnings
2024 expected to be better
than 2023
Strategic plan to upscale fleet is
yielding results; expect to achieve 2024
volume growth objectives
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Investor Presentation | Q1 2024 highlights | Financial highlights | 2024 guidance | Market update | Summary |
Solid Q1 2024 Results*
Revenue | Adj EBITDA | Adj EBIT** | Cash flow | Total liquidity | Total equity | ||||
$1.56 Bn | $427 Mn | $167 Mn | from operations | Returning capital to shareholders | |||||
(31.03.2024) | (31.03.2024) | ||||||||
$326 Mn | remains high priority | ||||||||
(+14%) | (+14%) | $2.25 Bn | 2.55 Bn | ||||||
(+88%) | |||||||||
Margins | Margins | ||||||||
Adj EBITDA | Adj EBIT | ||||||||
27% | 11% |
- Figures in parentheses reflect year-over-year comparison
- Q1 2023 Adjusted EBIT totaled a loss of $14 million
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Investor Presentation | Q1 2024 highlights | Financial highlights | 2024 guidance | Market update | Summary |
Increased FY 2024 Guidance; Declared Q1 2024 Dividend
FY 2024 | Q1 2024 |
Guidance* | Dividend |
Adjusted EBITDA | $0.23/share | |
$1,150 Mn to $1,550 | Mn | (~$28 million) |
Adjusted EBIT | 30% of Q1 2024 net income | |
$0 to $400 Mn |
* Previous guidance provided in March 2024: Adjusted EBITDA of $850 million to $1,450 million and Adjusted EBIT Loss of $300 million to Earnings of $300 million
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Investor Presentation | Q1 2024 highlights | Financial highlights | 2024 guidance | Market update | Summary |
Strategic Transformation On Track; Producing Tangible Results
Operational
Excellence
Commercial
Resilience
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Investor Presentation | Q1 2024 highlights |
Improved cost structure and competitive position
Advancing sustainability goals: 23% decline in carbon intensity in 2023; Operate greenest fleet in terms of LNG capacity
Continue to adapt network
Achieve volume growth on strategic trades
Operate modern, greener, fuel-efficient fleet
Deploy larger, more competitive capacity; better suited commercially ESG commitment: cut GHG emissions to net zero by 2050
Financial highlights | 2024 guidance | Market update | Summary |
Key Operational and Financial Indicators*
Operational | Q1-24 |
Carried volume | 846 |
(K TEUs) | (+10%) |
Freight rate | 1,452 |
($/TEU) | (+4%) |
Revenue | 1,562 |
($ Mn) | (+14%) |
Cash Flow | Q1-24 |
Free cash flow | 303 |
($ Mn) | (+161) |
Cash | 71% |
conversion rate | (+33%) |
Balance Sheet | 31-3-2024 |
Total debt | 5,357 |
($ Mn) | (+359) |
Cash, bank deposit and | 2,247 |
investment instruments | |
(-442) | |
($ Mn) | |
Net debt | 3,110 |
($ Mn) | (+801) |
Net leverage | 2.8x |
ratio | |
- Operational and cash flow metrics - figures in parentheses reflect year-over-year comparison; balance sheet metrics - figure in parentheses reflect comparison to year-end 2023
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Investor Presentation | Q1 2024 highlights | Financial highlights | 2024 guidance |
Market update | Summary |
ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries
147*
Vessels
131 containerships +
16 car carriers
Newbuild Capacity
46 containerships (of which 28 LNG-fueled); Delivery 2023-2024
10 x 15,000 TEU LNG-fueled | Delivered | 10 |
4 x 12,000 TEU | Delivered | 4 |
18 x 8,000 TEU LNG-fueled | Delivered | 9 |
6 x 5,500 TEU wide beam | Delivered | 4 |
8 x 5,300 TEU wide beam | Delivered | 3 |
Re | YTD 2024 | 9 chartered vessels |
2024 | 21 additional vessels up for renewal | |
deliveries | 2025 | 37 vessels up for renewal |
* Current operated capacity: of 131 containerships, 117 are chartered vessels and 14 are owned by ZIM; all car carriers are chartered
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Investor Presentation | Q1 2024 highlights | Financial highlights | 2024 guidance | Market update | Summary |
Q1 2024 Financial Highlights
+14% | +30% | XX% | - margin |
+14% | +125% | ||||||||
27% | 27% | 27% | |||||||
16% | |||||||||
Revenue | Adjusted | ||||||||
1,374 | 1,562 | 1,205 | 1,562 | EBITDA | 373 | 427 | 190 | 427 | |
($Mn) | ($Mn) | ||||||||
Q1.23 | Q1.24 | Q4.23 | Q1.24 | Q1.23 | Q1.24 | Q4.23 | Q1.24 |
-1% | 11% | -4% | 11% | |||||
(14) | 167 | (49) | 167 | Net Income/ | (58) | 92 | 92 | |
Adjusted | (147) | |||||||
EBIT ($Mn) | (Loss) ($Mn) | |||||||
Q1.23 | Q1.24 | Q4.23 | Q1.24 | Q1.23 | Q1.24 | Q4.23 | Q1.24 |
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Investor Presentation | Q1 2024 highlights | Financial highlights | 2024 guidance | Market update | Summary |
Volume Breakdown By Geographic Trade Zone (K TEU)
846 | |
769 | 786 |
116 | |
51 | 91 |
219 | 173 |
206 | |
139 | |
109 | 116 |
70 | |
116 | 54 |
274 | 348 | 319 |
Q1.2023 | Q1.2024 | Q4.2023 | ||
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Investor Presentation Q1 2024 highlights | Financial highlights | 2024 guidance | Market update | Summary |
Latin America
Intra-Asia
Atlantic
Cross-Suez
Pacific
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Disclaimer
ZIM Integrated Shipping Services Ltd. published this content on 21 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2024 12:47:04 UTC.
