Zim Integrated Shipping Services Ltd. · NYSE:ZIM

Zim Integrated Shipping Services — Q2 2023 Earnings Presentation

17 slides from Zim Integrated Shipping Services's earnings presentation, Aug 16, 2023

  1. Slide 1: Q2 2023 Financial Results

    Q2 2023 FINANCIAL RESULTS August 16, 2023

  2. Slide 2: Disclaimer

    Disclaimer | Forward-Looking Statements | | Adjusted EBITDA | This presentation contains or may be deemed to contain forward-looking statements (as defined in the U.S. Private Net income (loss) adjusted to exclude financial expenses (income), net, income Securities Litigation Reform Act of 1995 and

  3. Slide 3: Q2.23 Results Continue to Reflect Industry Downturn

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Q2.23 Results Continue to Reflect Industry Downturn Revenue Adj EBITDA Adj EBIT Cash flow Total equity $ 1.3 Bn $ 275 Mn $ (147) Mn* from operations (30.06.2023) (-62%) (-87%) $347 Mn $ 4.9 Bn (-80%) Margins Margins Adj EBIT

  4. Slide 4: Strong Balance Sheet & Ample Cash Allow Maintaining Long Term View

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Strong Balance Sheet & Ample Cash Allow Maintaining Long Term View Long term – secured optimal fleet to support profitable growth Secure cost-effective LNG capacity – Strengthen & fuel-efficient advance ESG commercial positi

  5. Slide 5: Growth Engines

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Growth Engines Seed / early-stage companies Complementary to ZIM’s core shipping activity Disruptive technologies Active investor – ZIM acts as strategic partner Modest investments with significant potential upside 5

  6. Slide 6: 2023 Full Year Guidance

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary 2023 Full Year Guidance* Adjusted EBITDA Revised assumptions* $1.2 – 1.6 Bn Soft peak season No material improvement in freight rates Adjusted EBIT loss Lower volume growth $(500) – (100) Mn * Revised full year 2023 guidance

  7. Slide 7: Key Operational and Financial Indicators

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Key Operational and Financial Indicators* Operational Q2-23 1H-23 Cash flow Q2-23 1H-23 Balance Sheet 30-6-2023 Carried volume 860 1,629 Free cash flow 321 463 Total debt** 4,869 (K TEUs) (+0%) (-5%) ($ Mn) (-1,318) (-2,659)

  8. Slide 8: Q2.2023 Financial Highlights

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Q2.2023 Financial Highlights -62% XX% - margin -86% -62% -87% 61% 24% 65% 21% Adjusted 1,310 7,145 2,684 275 4,634 648 Revenue 3,429 EBITDA 2,101 ($Mn) ($Mn) >-100% >-100% >-100% 51% -11% >-100% 56% -6% Adjusted 1,764 (147)

  9. Slide 9: Volume Breakdown By Geographic Trade Zone (K TEU)

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Volume Breakdown By Geographic Trade Zone (K TEU) 1,715 1,629 117 117 543 461 856 860 279 213 61 66 236 274 243 200 Latin America 103 125 120 Intra-Asia 106 576 602 Atlantic 291 328 Cross-Suez Pacific Q2.2022 Q2.2023 H1.2022

  10. Slide 10: Q2 2023 cash flow bridge ($Mn)

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Q2 2023 cash flow bridge ($Mn) 347 321 -26 -769 -562 -1,024 -14 Cash Flow from CAPEX Free Cash Flow Dividend Debt Service Others Net Cash Flow operations 10

  11. Slide 11: 1H 2023 cash flow bridge ($Mn)

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary 1H 2023 cash flow bridge ($Mn) 520 -57 463 -769 -1,044 -1,377 -21 -6 Cash Flow from CAPEX Free Cash Flow Dividend Debt Service Net change Others Net Cash Flow operations in ST loans 11

  12. Slide 12: Oversupply in 2023 & 2024 Expected; Potential Mitigating Factors

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Oversupply in 2023 & 2024 Expected; Potential Mitigating Factors: Only Slow Steaming Meaningful To Date Supply/Demand Balance 30M Slow steaming 10% 8.8% 8.6% 7.6% 8.5% 20M 6.3% 6.7% 5.8% 4.0% 4.5% 2.2% 3.8% 2.9% 4.1% 1.4% 1.

  13. Slide 13: Inventory levels remain relatively high; demand development is positive

    Q2 2023 highlights 2023 guidance Financial highlights Market update Summary Inventory levels remain relatively high; demand development is positive globally, compared to the recent six months of downturn however, yet at 2019 levels Inventories by category Global volumes, TEU per month 0.95 17.0M 0.9

  14. Slide 14: PAP tac SN te aa oa RS

    PAP tac SN te aa oa RS

  15. Slide 15: Managing through the market downturn

    Q2 2023 highlights 2023 guidance Financial highlights Market developments Summary Managing through the market downturn Long term Remain focused on executing strategy to position ZIM as innovative leader of seaborne transportation Deliver superior Strong balance service to customers sheet and cash an

  16. Slide 16: gr SS

    gr SS

  17. Slide 17: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT

    Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q2’23 Q2’22 Q2’21 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) (213) 1,336 888 Financial expenses, net 104 28 45 Income taxes (59) 400 224 Operating income (EBIT) (168) 1,764 1,157 Capital gain, bey

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