Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q3 2024 Earnings Presentation
20 slides from Zim Integrated Shipping Services's earnings presentation, Nov 20, 2024
Slide 1: Investor Presentation Q3 2024 Financial Results
Investor Presentation Q3 2024 FINANCIAL RESULTS November 20, 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: Q3 2024 Highlights – Continued Strong Momentum
Q3 2024 Highlights – Continued Strong Momentum Strong Record Raised Financial Carried Full Year Performance Volume Guidance Significant Return of Capital to Shareholders 3 Investor Presentation Q3 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 4: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Revenue Net Income* Adj EBITDA Adj EBIT* $2.77 Bn $1.13 Bn $1.53 Bn $1.24 Bn (+117%) (+626%) Margin Margin 55% 45% Cash Flow from Operations Total Liquidity Total Equity $1.50 Bn (30.09.2024) (30.09.2024) (+343%) $3.12 Bn $3.93 Bn Note: Figures in parentheses reflect yea
Slide 5: Increased FY 2024 Guidance; Declared Q3 2024 & Special Dividend
Increased FY 2024 Guidance; Declared Q3 2024 & Special Dividend $3.65/Share Adjusted EBITDA Regular $2.81 + Special $0.84 $3.3 Bn to $3.6 Bn FY 2024 Q3 2024 ~$440 Mn Adjusted EBIT Guidance* Dividend Regular dividend ~$340 Mn (30% of Q3-24 net income) $2.15 Bn to $2.45 Bn + Special dividend ~$100 Mn
Slide 6: Strategy Yielding Early Results; Drives Improved Competitive Position
Strategy Yielding Early Results; Drives Improved Competitive Position Operational Excellence Fleet Renewal Program; LNG Capacity Improved Cost Structure Secure LNG Supply Secure Equipment Double Digit Volume Growth Commercial Agility Operational Collaboration Agreements Identify Growth Markets Spot
Slide 7: Evolution of ZIM’s Operated Capacity: Larger, Newer, Greener
Evolution of ZIM’s Operated Capacity: Larger, Newer, Greener Average vessel size +50% Transformed Fleet 780K TEU ~40% ~50% LNG- newbuild powered 639K TEU 550K TEU Regain flexibility: 427K TEU capacity up for renewal 375K TEU 124K TEU 82K TEU 87 118 150 144 144 35 22 2020 2021 2022 2023 2024* 2025 20
Slide 8: Key Operational and Financial Indicators
Key Operational and Financial Indicators* Operational Q3-24 9M-24 Cash Flow Q3-24 9M-24 Balance Sheet 30-9-2024 Carried volume 970 2,768 Free cash flow 1,454 2,470 Total debt 5,826 (K TEUs) (+12%) (+11%) ($ Mn) (+1,126) (+1,679) ($ Mn) (+828) Freight rate 2,480 1,889 Cash 95% 91% Cash, bank deposit
Slide 9: ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries
ZIM Operated Capacity; 2024-25 Expected Deliveries & Redeliveries Newbuild Capacity 145 46 containerships (28 LNG-fueled); Delivery 2023-2024; 42 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 15 129 containerships + 6 x 5,5
Slide 10: Q3 and 9M 2024 Financial Highlights
Q3 and 9M 2024 Financial Highlights +58% XX% - margin +217% +117% 44% +626% 55% 44% 17% 22% Adjusted Revenue 1,273 2,765 3,957 6,260 EBITDA 211 1,531 859 2,725 ($Mn) ($Mn) Q3.23 Q3.24 9M.23 9M.24 Q3.23 Q3.24 9M.23 9M.24 1,126 1,591 45% 30% -17% -9% Adjusted (213) 1,236 (373) 1,891 Net Income/ (2,270
Slide 11: Volume Breakdown By Geographic Trade Zone (K TEU)
Volume Breakdown By Geographic Trade Zone (K TEU) +11% 2,768 2,496 372 199 +12% 543 970 711 867 Latin America 130 416 Intra-Asia 82 313 Atlantic 187 245 Cross-Suez 250 140 332 Pacific 100 92 96 1,192 942 421 339 Q3.2023 Q3.2024 9M.2023 9M.2024 11 Investor Presentation Q3 2024 highlights Financial hi
Slide 12: Q3 2024 Cash Flow Bridge ($Mn)
Q3 2024 Cash Flow Bridge ($Mn) 1,498 -44 1,454 -112 -595 32 779 Cash Flow from CAPEX, net Free Cash Flow Dividend Debt Service* Others Net Change in Operations Cash Position * Debt service includes $60 million reflecting downpayments for three LNG vessels received during the quarter 12 Investor Pres
Slide 13: 9M 2024 Cash Flow Bridge ($Mn)
9M 2024 Cash Flow Bridge ($Mn) 2,600 -130 2,470 -140 -1,933 44 441 Cash Flow from CAPEX, net Free Cash Flow Dividend Debt Service* Others Net Change in Operations Cash Position * Debt service includes $368 million reflecting downpayments for 13 LNG vessels received during the period and payment for
Slide 14: Increased 2024 Full Year Guidance
Increased 2024 Full Year Guidance Adjusted EBITDA Assumptions* $3.3 Bn to $3.6 Bn Freight rates: Higher Adjusted EBIT Volume: Unchanged $2.15 Bn to $2.45 Bn Bunker costs: Unchanged * New guidance assumptions compared to guidance provided in August 2024 14 Investor Presentation Q3 2024 highlights Fin
Slide 15: Risk of Oversupply Continues, though to a Lesser Extent
Risk of Oversupply Continues, though to a Lesser Extent Supply/Demand Balance Mitigating factors 30M 10.4% 10% Orderbook deliveries stretched to 2028 8.6% 7.6% 8.1% 20M 6.3% 7.2% 5.8% 3.0% 5.8% 1.8% 4.0% 3.8% 2.5% 4.7% 3.8% 2.9% 4.5% 4.1% Industry’s decarbonization agenda 1.7% 1.8% 2.5% -0.3% requir
Slide 16: Q&A Session
Q&A Session 16 Investor Presentation Q3 2024 highlights Financial highlights 2024 guidance Market update Summary
Slide 17: Strategy Builds Resilient Business
Strategy Builds Resilient Business Operational Excellence - Fleet Commercial Agility Strong Balance Transformation Sheet & Liquidity Program Almost Operational Completed Flexibility Improved Competitive Position for 2025 and Beyond ZIM Well Positioned as Innovative Leader of Seaborne Transportation
Slide 18: Appendix
Appendix 18 Investor Presentation
Slide 19: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q3’24 Q3’23 Q3’22 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT* Net income (loss) 1,126 (2,270) 1,166 Financial expenses, net 102 66 30 Income taxes 7 (71) 348 Operating income (loss) (EBIT) 1,235 (2,276) 1,544 Impai
Slide 20: Thank you
Thank you fingogoxv
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