Zim Integrated Shipping Services Ltd. · NYSE:ZIM

Zim Integrated Shipping Services — Q3 2023 Earnings Presentation

17 slides from Zim Integrated Shipping Services's earnings presentation, Nov 15, 2023

  1. Slide 1: Q3 2023 Financial Results

    Q3 2023 FINANCIAL RESULTS November 15, 2023

  2. Slide 2: Disclaimer

    Disclaimer | Forward-Looking Statements | | Adjusted EBITDA | The following information 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

  3. Slide 3: Clear Strategic Path; ZIM in Transition

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Clear Strategic Path; ZIM in Transition 2023-2024 2021-2022 Transition period Long-term strategic actions Continued improvement in cost structure • Fleet renewal program: • Add cost effective newbuild capacity 46 newbuilds;

  4. Slide 4: Results Continue to Reflect Industry Downturn

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Results Continue to Reflect Industry Downturn Revenue Adj EBITDA Adj EBIT Cash flow Total equity** $ 1.3 Bn $ 211 Mn $ (213) Mn* from operations (30.09.2023) (-61%) (-89%) $ 338 Mn $2.6 Bn (-80%) Margins Margins Adj EBITDA A

  5. Slide 5: Key Operational and Financial Indicators

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Key Operational and Financial Indicators* Operational Q3-23 9M-23 Cash flow Q3-23 9M-23 Balance Sheet 30-9-2023 Carried volume 867 2,496 Free cash flow 328 791 Total debt** 4,733 (K TEUs) (+3%) (-2%) ($ Mn) (-1,298) (-3,957)

  6. Slide 6: ZIM Operated Capacity; 2023-24 Expected Deliveries & Redeliveries

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary ZIM Operated Capacity*; 2023-24 Expected Deliveries & Redeliveries Newbuild capacity 145 46 containerships (of which 28 LNG-fueled); Delivery 2023-2024 10 x 15,000 TEU LNG-fueled Delivered 6 4 x 12,000 TEU Delivered 4 Vessel

  7. Slide 7: Q3 2023 & 9M 2023 Financial Highlights

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Q3 2023 & 9M 2023 Financial Highlights XX% - margin -62% -87% -61% -89% 60% 63% 22% Adjusted 17% Revenue 3,228 1,273 10,373 3,957 EBITDA 1,934 211 6,568 859 ($Mn) ($Mn) >-100% >-100% >-100% >-100% 48% 54% -9% 1,166 4,212 -17

  8. Slide 8: Volume Breakdown By Geographic Trade Zone (K TEU)

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Volume Breakdown By Geographic Trade Zone (K TEU) 2,557 2,496 179 199 807 711 313 388 842 867 314 332 61 82 265 250 109 100 941 96 869 113 294 339 Q3.2022 Q3.2023 9M.2022 9M.2023 8

  9. Slide 9: Q3 2023 Cash Flow Bridge ($Mn)

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Q3 2023 Cash Flow Bridge ($Mn) 338 -10 328 -451 -124 -1 Cash Flow from CAPEX, net Free Cash Debt Others Net Cash Operations Flow Service Flow 9

  10. Slide 10: 9M 2023 Cash Flow Bridge ($Mn)

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary 9M 2023 Cash Flow Bridge ($Mn) 858 -67 791 -769 -1,496 -1,500 -21 -5 Cash Flow from CAPEX, net Free Cash Dividend Debt Net change Others Net Cash Operations Flow Service in ST loans Flow 10

  11. Slide 11: 2023 Full Year Guidance

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary 2023 Full Year Guidance Adjusted EBITDA Assumptions $900 – 1,100 Mn Freight rates: continued weakness; no recovery from current levels Adjusted EBIT loss Volume: slight decline YoY $(600) – (400) Mn Bunker costs: higher that

  12. Slide 12: Near Term Market Outlook – Oversupply in 23 & 2024; Depressed Freight Rates

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Near Term Market Outlook – Oversupply in 2023 & 2024; Depressed Freight Rates; Extended Destocking Cycle SCFI - USEC (base port) $/FEU Supply/Demand Balance SCFI Index (16 Oct 2009=1000) 30M 10% 9.1% 8.6% 7.6% 8.4% 20M 6.3%

  13. Slide 13: Limited Impact from Management Capacity by Carriers

    Q3 2023 highlights Financial highlights 2023 guidance Market update Summary Limited Impact from Management Capacity by Carriers Slow steaming 2023 average speed ~5% lower vs. 2022 (for vessel size 6K-12K TEUs)(1) Blanking Used periodically, with short term impact 1-9/2023: 104K TEU vs. deliveries of

  14. Slide 14: Q&A Session

  15. Slide 15: ZIM in Transition: Clear Strategic Path

    Q3 2023 highlights Financial highlights 2023 guidance Market developments Summary Clear Strategic Path 2017 Launch ZIM strategic transformation ZIM in 2020-21 Execute fleet renewal program Transition Strong cash balance to sustain market Receive 46 newbuild containerships downturn & support 2023-24

  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(1) ($ in Mn) Q3’23 Q3’22 Q3’21 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) (2,270) 1,166 1,463 Financial expenses, net 66 30 38 Income taxes (71) 348 358 Operating income (EBIT) (2,276) 1,544 1,859 Impairmen

ZIM Integrated Shipping Services — Q3 2023 Earnings Presentation on 6ix