Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q1 2024 Earnings Presentation
19 slides from Zim Integrated Shipping Services's earnings presentation, May 21, 2024
Slide 1: Investor Presentation Q1 2024 Financial Results
Investor Presentation Q1 2024 FINANCIAL RESULTS May 21, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Use of non-IFRS financial measures This presentation contains or may be deemed to contain forward-looking statements (as defined in the U.S. The Company presents non-IFRS measures as additional performance measures as the Company believes Private Securities Liti
Slide 3: Positive Momentum into 2024
Positive Momentum into 2024 Leverage stronger freight rates to deliver positive earnings Returning capital to shareholders 2024 expected to be better Capacity remains high priority prepayment for than 2023 LNG vessels Strategic plan to upscale fleet is yielding results; expect to achieve 2024 volume
Slide 4: Solid Q1 2024 Results
Solid Q1 2024 Results* Revenue Adj EBITDA Adj EBIT** Cash flow Total liquidity Total equity Returning capital to shareholders $ 1.56 Bn $ 427 Mn $ 167 Mn from operations (31.03.2024) (31.03.2024) remains high priority (+14%) (+14%) $ 326 Mn $ 2.25 Bn 2.55 Bn (+88%) Margins Margins Adj EBITDA Adj EBI
Slide 5: Increased FY 2024 Guidance; Declared Q1 2024 Dividend
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 $1,450 milli
Slide 6: Strategic Transformation On Track; Producing Tangible Results
Strategic Transformation On Track; Producing Tangible Results Operational Improved cost structure and competitive position Excellence Advancing sustainability goals: 23% decline in carbon intensity in 2023; Operate greenest fleet in terms of LNG capacity Commercial Resilience Continue to adapt netwo
Slide 7: Key Operational and Financial Indicators
Key Operational and Financial Indicators* Operational Q1-24 Cash Flow FY-23 Q1-24 FY-23 Balance Sheet 31-3-2024 Carried volume 846 3,281Free cash flow 303 919Total debt 5,357 (K TEUs) (+10%) ($ Mn) (-3%) (+161) ($ Mn) (-4,877) (+359) Freight rate 1,452 1,203Cash 71% 88% Cash, bank deposit and 2,247
Slide 8: ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries
ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries Newbuild Capacity 147 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 Vessels 18 x 8,000 TEU LNG-fueled Delivered 9 131 containerships + 6 x 5,500 TEU
Slide 9: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights +14% +30% XX% - margin +14% +125% 27% 27% 27% 16% Adjusted Revenue 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 11% 11% -1% -4% (14) 167 (49) 167 (58) 92 92 Adjusted Net Income/ (147) EBIT ($Mn) (Loss) ($Mn) Q
Slide 10: Volume Breakdown By Geographic Trade Zone (K TEU)
Volume Breakdown By Geographic Trade Zone (K TEU) 846 769 786 116 51 91 173 219 206 139 109 116 70 116 54 Latin America Intra-Asia 348 319 Atlantic 274 Cross-Suez Pacific Q1.2023 Q1.2024 Q4.2023 10 Investor Presentation Q1 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 11: Q1 2024 Cash Flow Bridge ($Mn)
Q1 2024 Cash Flow Bridge ($Mn) 326 -23 303 -740 7 -430 Cash Flow from CAPEX, net Free Cash Flow Debt Service* Others Net Change in Operations Cash Position * Debt service includes $235 million reflecting downpayments for six LNG vessels received during the quarter and payment for five vessels follow
Slide 12: Increased 2024 Full Year Guidance
Increased 2024 Full Year Guidance Adjusted EBITDA Assumptions* $1,150 to 1,550 Mn Freight rates: Slightly higher Adjusted EBIT Volume: Unchanged $0 to 400 Mn Bunker costs: Slightly higher * New guidance assumptions compared to guidance provided in March. 12 Investor Presentation Q1 2024 highlights F
Slide 13: Red Sea Diversion Absorbed Significant Capacity
Red Sea Diversion Absorbed Significant Capacity, Impacting Underlying Supply Demand Balance Supply/Demand Balance Containerships diverted from Suez and Panama 30M Canals to Cape Route 500 5.50 10% 5.00 9.7% 400 8.6% 8.2% 4.50 20M 7.6% Capacity in TEU Millions 6.3% 7.2% 5.8% 3.0% 4.00 1.8% 4.0% 5.3%
Slide 14: Second Wave to Spot Rate Improvement, Expanding to Additional Trades
Second Wave to Spot Rate Improvement, Expanding to Additional Trades 14 Investor Presentation Q1 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 15: Demand Dynamics and Possible Stress on Supply Chain
Demand Dynamics and Possible Stress on Supply Chain Global volumes, TEU per month Ocean Timeliness Indicator (Week to May 6, 2024) 17.0M 100 CRD TO Destination Ocean Port Departure (Days) 16.0M 80 15.0M 60 14.0M 13.0M 40 12.0M 20 11.0M 10.0M 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 202
Slide 16: Q&A Session
Q&A Session 16 Investor Presentation Q1 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 17: 2024 Strategic Priorities
2024 Strategic Priorities Advance fleet renewal Maintain agility in our Leverage strong market program and complete network to meet conditions to deliver ZIM’s strategic evolving customer needs improved guidance transformation 17 Investor Presentation Q1 2024 highlights Financial highlights 2024 gui
Slide 18: Appendix
Appendix 18 Investor Presentation
Slide 19: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q1’24 Q1’23 Q1’22 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT* Net income (loss) 92 (58) 1,711 Financial expenses, net 70 51 24 Income taxes 4 (7) 508 Operating income (loss) (EBIT) 167 (14) 2,243 Adjusted EBIT 167
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