Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — FY2020 Earnings Presentation
19 slides from Zim Integrated Shipping Services's earnings presentation, Mar 22, 2021
Slide 1: Q4 & Full Year 2020 Financial Results
Q4 & FULL YEAR 2020 FINANCIAL RESULTS 22 March 2021
Slide 2: Today's presenters
Today’s presenters: Eli Glickman Xavier Destriau President & Chief Executive Officer Executive Vice President, Chief Financial Officer 2
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward
Slide 4: Achieving major milestones
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Achieving major milestones Completed Achieved record profitability in Q4 and 2020 successful IPO, raising $225* million in proceeds Increase of 168% in Adjusted EBITDA vs. YTD dec-2019 – reach
Slide 5: The new ZIM
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance The new ZIM Global-niche Asset-light and Focus on Innovation and Customer-centric strategy agile model profitability digitalization approach supported by Big “Powered by our Data, BI and AI Cu
Slide 6: Main achievements and highlights for 2020
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Main achievements and highlights for 2020 Operational agility Operational excellence ▪ Strict COVID-19 crisis management 68 59 98 ▪ ▪ Cooperation with 2M Cost avoidance/reduction before at COV
Slide 7: Consistent earnings growth and disciplined deleveraging strategy
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Consistent earnings growth and disciplined deleveraging strategy ($MN) 5.3x $1,036 $620 $386 $414 $465 $328 * $359 * $273 * 1.2x Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 LTM Adj. EBITDA
Slide 8: Cash position significantly improved in FY 2020, leverage ratio decreased
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Cash position significantly improved in FY 2020, and together with increased earnings our leverage ratio decreased to lowest level Operational Balance Sheet Carried Volume 2,841 (K TEUs) 0.7%
Slide 9: Significant improvement in all metrics in Q4 and FY 2020
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Significant improvement in all metrics in Q4 and FY 2020 +21% + 650 + 416 +64% 14% 39% 12% 26% 827 1,361 3,300 3,992 115 531 386 1,036 Revenue ($M) EBITDA* ($M) Q4.19 Q4.20 FY.19 FY.20 Q4.19 Q
Slide 10: Volume breakdown by geographic trade zone (K TEU)
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Volume breakdown by geographic trade zone (K TEU) 2,821 2,841 187 172 671 607 593 590 343 356 1,017 1,126 2019 2020 Pacific Cross-Suez Atlantic - Europe Intra Asia Latin America 10
Slide 11: Cash flow 2020 highlights ($M)
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Cash flow 2020 highlights ($M) 846 FCF +387 -155 -35 -470 11 1,036 183 570 Cash Non GAAP Working Investing Debt Others Cash 31.12.19 EBITDA Capital And Cash Flow Service 31.12.20 Other Operati
Slide 12: Market supply/demand fundamentals are positive; record low orderbook
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Market supply/demand fundamentals are positive; Record low orderbook supports favorable near-term future supply dynamics Supply/Demand balance Orderbook-to-Fleet 30.0 M TEU Fleet Capacity (yea
Slide 13: Catching up to lost revenue - record-high contract rates
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Catching up to lost revenue - current record-high contract rates expect to last to spring 2022; Charter hire trend correlates with demand as reflected by spot rates Shanghai Container Freight
Slide 14: Retailers' inventory replenishment expected to drive container growth
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Despite 6 months of demand boom, retailers’ Producers are expected to ease supply curbs inventory replenishment expected to drive as economies start to slowly recover from strong container gro
Slide 15: Significant momentum going forward!
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance Significant momentum going forward! Positioning ZIM as an innovative leader of seaborne transportation and logistics services with relentless focus on: Maintaining agility Promoting our core s
Slide 16: 2021 full-year guidance
Main achievements Main highlights 2020 Financial results Market developments Focus & strategy 2021 guidance 2021 full-year guidance Average Average Volume Charter freight rate bunker price Rates Higher Higher Higher Higher EBITDA EBIT $ 1,400 – 1,600 M $ 850 – 1,050 M 16
Slide 17: Thank you
THANK YOU.
Slide 18: Appendix
Slide 19: Reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBIT
Reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBIT ($ in Millions) FY2017 FY2018 FY2019 FY 2020 Net Income (Loss) 11 (120) (13) 524 Financial Expenses (Income), net 117 83 154 181 Income Taxes 14 14 12 17 Depreciation and Amortization 108 112 246 314 EBITDA 251 88 399 1,036 Non
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