Zim Integrated Shipping Services Ltd. · NYSE:ZIM

Zim Integrated Shipping Services — Q1 2023 Earnings Presentation

15 slides from Zim Integrated Shipping Services's earnings presentation, May 22, 2023

  1. Slide 1: Q1 2023 Financial Results

    Q1 2023 FINANCIAL RESULTS May 22, 2023

  2. 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

  3. Slide 3: Q1.23 Results Reflect Industry Downturn; Reaffirming Full Year 2023 Guidance

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Q1.23 Results Reflect Industry Downturn; Reaffirming Full Year 2023 Guidance 2023 Revenue Adj EBITDA Adj EBIT Cash flow Total equity Guidance $ 1.4 Bn $ 373 Mn $ -14 Mn from operations (31.03. 2023) Adjusted EBITDA (-63%) (-

  4. Slide 4: Long-term Strategy & Priorities Remain Unchanged

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Long-term Strategy & Priorities Remain Unchanged; Key Strengths: Agility, Excellence and Innovation Improved cost Operational and Growth engines structure commercial agility Cost & fuel-efficient Network adaptation newbuild

  5. Slide 5: Key Operational and Financial Indicators

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Key Operational and Financial Indicators* Operational Q1-23 Cash flow Q1-23 Balance Sheet 31-3-2023 Carried volume 769 Free cash flow +142 Total debt** 4,639 (K TEUs) (-10%) ($ Mn) (-1,341) ($ Mn) (+307) Freight rate 1,390 C

  6. Slide 6: Q1.2023 Financial Highlights

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Q1.2023 Financial Highlights XX% - margin -63% -37% -85% -62% 44% 26% 68% 27% Adjusted Revenue 3,716 1,374 2,189 1,374 EBITDA 2,533 373 973 373 ($Mn) ($Mn) >100% >100% >100% 60% -1% 27% -1% >100% Adjusted 2,243 -14 585 -14 N

  7. Slide 7: Volume Breakdown By Geographic Trade Zone (K TEU)

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Volume Breakdown By Geographic Trade Zone (K TEU) 859 823 56 769 59 51 269 250 219 155 107 109 115 94 116 Latin America Intra-Asia Atlantic 285 274 291 Cross-Suez Pacific Q1.22 Q1.23 Q4.22 7

  8. Slide 8: Q1 2023 cash flow bridge ($Mn)

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Q1 2023 cash flow bridge ($Mn)* 174 -32 142 -482 -21 8 -353 Cash Flow CAPEX Free Cash Debt Service Net Change Others Net Change in from Flow in ST Loans Total Cash Operations Position 8 * Excludes final 2022 dividend of appr

  9. Slide 9: Reaffirming 2023 Full Year Guidance

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Reaffriming 2023 Full Year Guidance Adjusted Adjusted Average Carried Bunker EBITDA EBIT freight rates volume rates $1.8 – 2.2 Bn $100 – 500 Mn Significantly Higher Slightly lower lower 9

  10. Slide 10: Oversupply in 2023 & 2024 Expected; Only Slow Steaming Meaningful To Date

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Oversupply in 2023 & 2024 Expected; Potential Mitigating Factors: Only Slow Steaming Meaningful To Date Supply/Demand Balance Slow Steaming 30M Reduced up to 6% of effective capacity in 2023* 10% 8.9% 8.6% 8.3% 20M 6.3% 7.6%

  11. Slide 11: Recent Demand Development is Positive

    Q1 2023 highlights Financial highlights 2023 guidance Market update Summary Recent Demand Development is Positive; Assuming 1.4% YoY Growth in Demand, 2023 Volume Expected to Grow from Current Levels Global volumes TEU/month 17.0M 16.0M 15.0M 14.0M 13.0M 12.0M 11.0M 10.0M Jan Feb Mar Apr May Jun Jul

  12. Slide 12: PAP tac SN te aa oa RS

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  13. Slide 13: Positioning ZIM as an Innovative Leader of Seaborne Transportation

    Q1 2023 highlights Financial highlights 2023 guidance Market developments Summary Positioning ZIM as an Innovative Leader of Seaborne Transportation Differentiated digitalization ESG as Strong balance operational and core value sheet & liquidity and Innovation commercial strategy 13

  14. Slide 14: Appendix

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  15. Slide 15: Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT

    Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q1’23 Q1’22 Q1’21 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) (58) 1,711 590 Financial expenses, net 51 24 39 Income taxes (7) 508 54 Operating income (EBIT) (14) 2,243 683 Non-cash charter hire ex

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