Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q4 2023 Earnings Presentation
20 slides from Zim Integrated Shipping Services's earnings presentation, Mar 13, 2024
Slide 1: Investor Presentation Q4 & FY 2023 Financial Results
INVESTOR PRESENTATION Q4 & FY 2023 FINANCIAL RESULTS March 13, 2024
Slide 2: Disclaimer
Disclaimer | Forward-Looking Statements | | Adjusted EBITDA | The following information 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
Slide 3: Full Year 2023 Results
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Full Year 2023 Results Revenue Adj EBITDA Adj EBIT Cash flow Total liquidity Total equity** $ 5.2 Bn $ 1.0 Bn $ (422) Mn* from operations (31.12.2023) (31.12.2023) (-59%) (-86%) $ 1.0Bn $2.7 Bn 2.5 Bn (-83%) Margins Mar
Slide 4: 2024 Outlook
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary 2024 Outlook 2024 Market Dynamics 2024 Guidance Supply-Demand imbalance Adjusted EBITDA Adjusted EBIT Uncertain Duration & Impact $850 Mn to $(300) Mn to Red Sea disruptions Panama Canal draft restrictions $1,450 Mn $30
Slide 5: 2023-2024: ZIM Strategic Transformation On Track
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary 2023-2024: ZIM Strategic Transformation On Track Operational Modern fleet: 46 newbuilds; 28 LNG-powered Excellence Optimize fleet; redeliver old chartered capacity Adapt network and open new services Commercial Resilien
Slide 6: 2024 Capital Allocation Priorities
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary 2024 Capital Allocation Priorities Invest Preserve in long-term cash growth Fleet Cost savings Equipment & cost avoidance Growth engines initiatives 6
Slide 7: Key Operational and Financial Indicators
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Key Operational and Financial Indicators* Operational Q4-23 FY-23 Cash Flow Q4-23 FY-23 Balance Sheet 31-12-2023 Carried volume 786 3,281 Free cash flow 128 919 Total debt 4,998 (K TEUs) (-5%) (-3%) ($ Mn) (-920) (-4,87
Slide 8: ZIM Operated Capacity; Expected Deliveries & Redeliveries
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary ZIM Operated Capacity*; 2024-25 Expected Deliveries & Redeliveries Newbuild capacity 150 46 containerships (of which 28 LNG-fueled); Delivery 2023-2024 10 x 15,000 TEU LNG-fueled Delivered 9 4 x 12,000 TEU Delivered 4 V
Slide 9: Q4 2023 & FY 2023 Financial Highlights
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Q4 2023 & FY 2023 Financial Highlights -59% XX% - margin -86% -80% -45% 60% 20% Adjusted 44% 16% Revenue 2,189 1,205 12,562 5,162 EBITDA 973 190 7,541 1,049 ($Mn) ($Mn) 4 4 4 4 >-100% >-100% >-100% >-100% 49% -8% 27% -4
Slide 10: Volume Breakdown By Geographic Trade Zone (K TEU)
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Volume Breakdown By Geographic Trade Zone (K TEU) 3,380 3,281 238 290 Latin America Intra-Asia 1,058 917 Atlantic Cross-Suez Pacific 496 429 386 428 823 786 59 91 250 1,259 206 1,160 108 116 115 54 291 319 10 Q4.2022 Q4
Slide 11: Full Year 2023 Cash Flow Bridge ($Mn)
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Full Year 2023 Cash Flow Bridge ($Mn) -128 27 1,020 919 -769 -2,094 -1,923 -21 42 Cash Flow from CAPEX & Sale of Free Cash Dividend Debt Service Net Chage Others Net Change in Operations Prepayments Assets Flow in ST Lo
Slide 12: Q4 2023 Cash Flow Bridge ($Mn)
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Q4 2023 Cash Flow Bridge ($Mn) -40 6 162 128 -598 -423 47 Cash Flow from CAPEX Sale of Free Cash Flow Debt Service Others Net Change in Operations Assets Cash Position 12
Slide 13: 2024 Full Year Guidance
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary 2024 Full Year Guidance Adjusted EBITDA Assumptions $850 to 1,450 Mn Freight rates: Slightly higher Adjusted EBIT Volume: Higher $(300) to 300 Mn Bunker costs: Lower 13
Slide 14: The Red Sea Crisis: a Wild Card; Sustained Impact on Rates Uncertain
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary The Red Sea Crisis: a “Wild Card”; Sustained Impact on Rates – Uncertain Containerships diverted from Suez and Panama 6,000 Shanghai Containerized Freight Index 400% Canals to Cape Route 350% 500 5.50 5,000 300% SCFI (1
Slide 15: 2024 Underlying Market Dynamic – Significant Oversupply with 120 Large Capacity Newbuilds
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary 2024 Underlying Market Dynamic – Significant Oversupply with 120 Large Capacity Newbuilds Expected this Year Supply/Demand Balance Delivery Breakdown by Size Range in TEU Millions 30M 2012 0.3M 0.3M 0.6M 2013 0.4M 0.5M
Slide 16: Factors Impacting Effective Supply
Q4 & FY 2023 highlights Financial highlights 2024 guidance Market update Summary Factors Impacting Effective Supply Geopolitics Blanking Regulatory Climate-related Slow steaming Scrapping Idling 16
Slide 17: Q&A Session
Q&A SESSION
Slide 18: 2025 and beyond
Q4 & FY 2023 highlights Financial highlights 2023 guidance Market developments Summary Clear Path Forward 2025 and beyond Significantly improved market position 2023-2024 Transition period 18
Slide 19: Appendix
APPENDIX
Slide 20: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBIT(1) ($ in Mn) 2023 2022 2021 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) (2,688) 4,629 4,649 Financial expenses, net 305 109 157 Income taxes (128) 1,398 1,010 Operating income (loss) (EBIT) (2,511) 6,136 5,8
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