Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q2 2024 Earnings Presentation
22 slides from Zim Integrated Shipping Services's earnings presentation, Aug 19, 2024
Slide 1: Investor Presentation Q2 2024 Financial Results
Investor Presentation Q2 2024 FINANCIAL RESULTS August 19, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Use of non-IFRS financial measures The following information contains, or may be deemed to contain forward-looking statements (as defined in The Company presents non-IFRS measures as additional performance measures as the Company believes the U.S. Private Securi
Slide 3: Q2 2024 – Continued Strong Momentum; Improved 2024 Outlook
Q2 2024 – Continued Strong Momentum; Improved 2024 Outlook Improved Financial Raised Full Year Record Carried Volume Performance Guidance 3 Investor Presentation Q2 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 4: Solid Q2 2024 Results
Solid Q2 2024 Results* Revenue Adj EBITDA Adj EBIT** Cash Flow Total Equity $ 1.93 Bn $ 766 Mn $ 488 Mn from Operations (30.06.2024) (+48%) (+179%) $ 777 Mn 2.89 Bn (+124%) Margins Margins Net Income** Total Liquidity Adj EBITDA Adj EBIT $ 373 Mn 40% 25% (30.06.2024) $ 2.34 Bn * Figures in parenthes
Slide 5: Increased FY 2024 Guidance; Declared Q2 2024 Dividend
Increased FY 2024 Guidance; Declared Q2 2024 Dividend FY 2024 Q2 2024 Guidance* Dividend Adjusted EBITDA $0.93/Share $2.6 Bn to $3.0 Bn (~$112 Mn) Adjusted EBIT 30% of Q2 2024 Net Income $1.45 Bn to $1.85 Bn * Previous guidance provided in May 2024: Adjusted EBITDA of $1,150 million to $1,550 millio
Slide 6: Commercial and Operational Strategy Yielding Strong Results
Strategy Yielding Strong Results Operational Commercial Increased exposure to higher transpacific Exposure tospot transpacific rates spot rate Fleet renewal program 46 newbuild vessels LNG capacity deployed on Asia-USEC trade 28 LNG-powered 38 delivered to date Commercial agility: adapted network to
Slide 7: Growth Engines
Growth Engines Strategic investments in disruptive technologies ▪ Related to ZIM’s core shipping business and broader supply chain and logistics ecosystem as well as innovative sustainability related technologies ▪ Aim to enhance customer offering ▪ Modest capital requirements with significant poten
Slide 8: Key Operational and Financial Indicators
Key Operational and Financial Indicators* Operational Q2-24 H1-24 Cash Flow Q2-24 H1-24 Balance Sheet 30-6-2024 Carried volume 952 1,799 Free cash flow 712 1,015 Total debt 5,583 (K TEUs) (+11%) (+10%) ($ Mn) (+391) (+552) ($ Mn) (+585) Freight rate 1,674 1,569 Cash 93% 85% Cash, bank deposit and 2,
Slide 9: ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries
ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries Newbuild Capacity 148 46 containerships (28 LNG-fueled); Delivery 2023-2024; 38 Delivered * 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 12 132 containerships + 6 x 5,5
Slide 10: Q2 and H1 2024 Financial Highlights
Q2 and H1 2024 Financial Highlights XX% - margin +30% +48% +84% +179% 34% 40% 21% 24% Adjusted Revenue 1,310 1,933 2,684 3,495 EBITDA 275 766 648 1,193 ($Mn) ($Mn) Q2.23 Q2.24 H1.23 H1.24 Q2.23 Q2.24 H1.23 H1.24 -11% 25% -6% 19% Adjusted (147) 488 (160) 655 Net Income/ (213) 373 (271) 465 EBIT ($Mn)
Slide 11: Volume Breakdown By Geographic Trade Zone (K TEU)
Volume Breakdown By Geographic Trade Zone (K TEU) 1,799 1,629 242 117 356 461 952 276 860 213 Latin America 126 66 153 Intra-Asia 183 236 243 Atlantic 137 Cross-Suez 103 83 120 772 Pacific 602 423 328 Q2.2023 Q2.2024 H1.2023 H1.2024 11 Investor Presentation Q2 2024 highlights Financial highlights 20
Slide 12: Q2 2024 Cash Flow Bridge ($Mn)
Q2 2024 Cash Flow Bridge ($Mn) 777 -65 712 -28 -598 92 6 Cash Flow from CAPEX, net Free Cash Flow Dividend Debt Service* Others Net Change in Operations Cash Position * Debt service includes $73 million reflecting downpayments for four LNG vessels received during the quarter 12 Investor Presentation
Slide 13: H1 2024 Cash Flow Bridge ($Mn)
H1 2024 Cash Flow Bridge ($Mn) 1,103 -88 1,015 -28 -1,339 -339 13 Cash Flow from CAPEX, net Free Cash Flow Dividend Debt Service* Others Net Change in Operations Cash Position * Debt service includes $308 million reflecting downpayments for 10 LNG vessels received during the period and payment for f
Slide 14: Increased 2024 Full Year Guidance
Increased 2024 Full Year Guidance Adjusted EBITDA Assumptions* $2.6 Bn to $3.0 Bn Freight rates: Significantly higher Adjusted EBIT Volume: Unchanged $1.45 Bn to $1.85 Bn Bunker costs: Unchanged * New guidance assumptions compared to guidance provided in May 2024 14 Investor Presentation Q2 2024 hig
Slide 15: Red Sea Crisis Altered Oversupply into an Equilibrium
Red Sea Crisis Altered Oversupply into an Equilibrium; Continued Pressure on Supply Contribute to Growing Tension in Supply Chain Supply/Demand Balance Ocean Timeliness Indicator 30M 100 10% CRD TO Destination Ocean Port Departure (Days) 10.6% 8.6% 7.6% 8.1% 20M 6.3% 7.2% 80 5.8% 3.0% 5.8% 1.8% 4.0%
Slide 16: Spot Rates Soar, Though Also May Have Peaked
Spot Rates Soar, Though Also May Have Peaked SCFI Index - USWC SCFI Index - USEC $9,000 $12,000 10,452 $8,000 $11,000 $10,000 9,106 $7,000 6,153 $9,000 $6,000 6,068 $8,000 9,083 5,744 $/FEU $/FEU $5,000 $7,000 $4,000 3,144 $6,000 $5,000 $3,000 2,017 3,504 $4,000 $2,000 3,071 $3,000 1,474 2,660 $1,00
Slide 17: Strong Container Volumes, But Inventory Levels Increasing
Strong Container Volumes, But Inventory Levels Increasing Asia to US Volumes, TEU per month Inventories by category (US) 0,95 2.1M 0,90 1.9M 0,85 1.7M 0,80 1.5M Trillions USD 0,75 1.3M 0,70 1.1M 0,65 0.9M 0,60 0.7M 0,55 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov/19 Feb/20 May/20 Aug/20 Nov/
Slide 18: Q&A Session
Q&A Session 18 Investor Presentation Q2 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 19: Strategic Transformation Continues; Yielding Results
Strategic Transformation Continues; Yielding Results Capitalize on current market Complete ZIM fleet conditions to deliver full renewal program year guidance Capital allocation priorities: promote Strong cash balance and long-term profitable growth and balance sheet support return capital to shareho
Slide 20: Appendix
Appendix 20 Investor Presentation
Slide 21: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q2’24 Q2’23 Q2’22 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT* Net income (loss) 373 (213) 1,336 Financial expenses, net 93 104 28 Income taxes 2 (59) 400 Operating income (loss) (EBIT) 468 (168) 1,764 Capital loss
Slide 22: Thank you
Thank you
ZIM Integrated Shipping Services — Q2 2024 Earnings Presentation on 6ix