Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q1 2022 Earnings Presentation
20 slides from Zim Integrated Shipping Services's earnings presentation, May 18, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 FINANCIAL RESULTS May 18, 2022
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
Slide 3: Another quarter of outstanding financial and operational performance
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Another quarter of outstanding financial and operational performance Q1.21 YoY Q1.21 Revenues $3.7 Bn +113% Adjusted 47% & EBITDA and 39% Adjusted EBITDA $2.5 Bn +209% EBIT margins Net profit $1.7 Bn +190% 68% & 60% Op
Slide 4: Strong outlook for 2022; exceptional return of capital
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Strong outlook for 2022; exceptional return of capital 2022 Full-year Q1 2022 guidance dividend Increased full year 2022 guidance $2.85/share Adjusted EBITDA $7.8 – 8.2 billion (~$342 million) Adjusted EBIT $6.3 – 6.7
Slide 5: Promoting operational excellence to support continued profitability
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Promoting operational excellence to support continued profitability Secured future chartered newbuild capacity Total: 46 vessels; 28 LNG-fueled deliverable 2023-2024 8x 5,300 TEU wide beam Highly fuel-efficient 6x 5,50
Slide 6: Advancing global-niche strategy & agile fleet management to drive superior profitability
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Advancing global-niche strategy & agile fleet management to drive superior profitability Expand capacity to meet demand & changes to 2M Grow network with 10 new lines partnership Expand eCommerce network Currently oper
Slide 7: Strong results across all key operational and financial indicators
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Strong results across all key operational and financial indicators* Operational Q1 2022 Cash flow Q1 2022 Balance Sheet March 31, 2022 Carried volume 859 Free cash flow 1,483 Total debt** 4,325 (K TEUs) (+5%) ($ Mn) (+
Slide 8: Consistent earnings growth and continued deleveraging
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Consistent earnings growth and continued deleveraging $8,310 $6,597 $4,767 $2,949 3.4x $1,759 $1,036 $414 $465 $620 0.0x Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 LTM Adj. EBITDA ($ Mn) Net Leverage Ratio 8
Slide 9: Significant YoY improvement across all financial indicators
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Significant YoY improvement across all financial indicators +113% +7% XX% - margin +1,712 +171 47% 68% 68% 68% Adjusted 1,744 3,716 3,466 3,716 821 2,533 2,362 2,533 Revenue EBITDA ($Mn) Q1.21 Q1.22 Q4.21 Q1.22 ($Mn) Q
Slide 10: ZIM 5% growth vs. market decline of ~1.8% (YoY)
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary ZIM 5% growth vs. market decline of ~1.8%* (YoY) Volume breakdown 859 858 by geographic trade 818 56 57 zone (K TEU) 45 269 208 251 153 155 163 84 94 84 328 303 285 Q1.2022 Q1.2021 Q4.2021 Pacific Cross-Suez Atlantic I
Slide 11: Continued strong cash generation of $1.3 Bn
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Continued strong cash generation of $1.3 Bn 59 -177 -249 -20 -8 1,660 1,483 1,265 Cash Flow from CAPEX, Net Free Cash Financing Debt Service Net Change Others Net Change in Operations Flow Initiatives in ST Loans Total
Slide 12: Updated 2022 full-year guidance
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Updated 2022 full-year guidance Adjusted Adjusted EBITDA EBIT $7.8 – 8.2 Bn $6.3 – 6.7 Bn Average freight rates in Volume growth ~5% Average bunker rates in Charter rates remain 2022 higher than 2021; 2022 higher than
Slide 13: Port congestion and supply chain disruptions may extend into 2023
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Port congestion and supply chain disruptions may extend into 2023 Real effective capacity Cargo ready date to destination port departure 120 110 30,000 -7% -15% -17% 25,000 -11% 100 20,000 '000 teu 90 15,000 Days 80 10
Slide 14: Robust demand, particularly in US, expected to persist
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Robust demand, particularly in US, expected to persist Demand (avg weekly TEU) vs US retail trade inventory/sales ratio Global demand in March 2022 – 6% higher than 2019 Global volumes, TEU/month 450K 1.7 16.0M 400K 1.
Slide 15: Supply/demand balance expected to converge in 2023 and growing orderbook represent risks
Q 2022 1highlights Financial highlights Market developments 2022 guidance Summary Supply/demand balance expected to converge in 2023 and growing orderbook represent risks; yet continued supply chain disruptions and pressure to decarbonize expected to offset newbuilding deliveries in 2023 Supply/Dema
Slide 16: 2022 SCFI exhibits similar seasonality trend as previous years
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary 2022 SCFI exhibits similar seasonality trend as previous years Comprehensive Index SCFI Comprehensive Index (2018-2022) W-o-W change pre- and post-CNY 20% 5,500 15% 5,000 10% 4,500 4,148 4,000 5% 3,343 3,500 0% 3,000 2
Slide 17: Carrying positive trajectory into 2022
Q1 2022 highlights Financial highlights Market developments 2022 guidance Summary Carrying positive trajectory into 2022 Proven, Outstanding Differentiated execution strategy Long-term profitable growth & industry leading margins 17
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Slide 20: Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q1’22 Q1’21 Q1’20 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) 1,711 590 (12) Financial expenses, net 24 39 34 Income taxes 508 54 3 Operating income (EBIT) 2,243 683 25 Non-cash charter hire expens
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