Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — FY2021 Earnings Presentation
25 slides from Zim Integrated Shipping Services's earnings presentation, Mar 9, 2022
Slide 1: Full Year and Q4 2021 Financial Results
FULL YEAR AND Q4 2021 FINANCIAL RESULTS March 9, 2022
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 This presentation 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-looking
Slide 4: Major Milestones Since IPO (January 2021)
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Major Milestones Since IPO (January 2021) Jan-2021 Feb-2021 Mar-2021 Apr-2021 Apr-2021 Completed $225 million Concluded long-term charter Concluded additional round of Launched ZIMARK to provide Announced f
Slide 5: 2021: a year in review
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary 2021: a year in review Investing in our future Operated Container Carried Newbuild vessels(3) capacity(1) fleet(1) volume(2) (318K TEUs) ~20% ~35% ~23% 36 (1) Increase from January 2021 to March 2022 (2) In
Slide 6: Record full year and quarterly results
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Record full year and quarterly results Revenues $10.7 billion Operating cash flow Adj EBITDA and Full year Adj EBITDA $6.6 billion EBIT margins 2021 of $6.0 billion Net profit $4.6 billion of 61% and 54% Sh
Slide 7: Exceptional return of capital; strong outlook for 2022
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Exceptional return of capital; strong outlook for 2022 2022 Q4 2021 Full-year dividend guidance $17.00/share Adjusted EBITDA $7.1 – 7.5 billion (~$2.04 billion) Adjusted EBIT $5.6 – 6.0 billion Total divide
Slide 8: Proven strategy: deliver strong results and invest in future growth
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Proven strategy: deliver strong results and invest in future growth Operational agility Operational excellence Grow operated capacity by Secure newbuild fleet: 36 vessels ~20% TEUs Advance ESG objectives Cu
Slide 9: Improvement across key operational and financial indicators
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Improvement across key operational and financial indicators Operational Q4.21 vs. Q4.20 2021 vs. 2020 Balance Sheet 2021 vs. 2020 Carried volume 858 3,481 7% 23% Total debt* 3,341 (K TEUs) 799 2,841 1,479 (
Slide 10: Consistent earnings growth and continued deleveraging
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Consistent earnings growth and continued deleveraging $6,597 $4,767 5.3x $2,949 $1,759 $1,036 $620 $359 * $386 $414 $465 $273 * $328 * 0.0x Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21
Slide 11: FY 2021: record results across all metrics
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary FY 2021: record results across all metrics Revenue ($Mn) XX% - margin +169% EBIT* ($Mn) EBITDA* ($Mn) +5,561 Net Profit ($Mn) +5,091 +4,125 18% 54% 26% 61% 3,992 10,729 729 5,820 1,036 6,597 524 4,649 2020 2
Slide 12: Q4.2021: record results across all metrics
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Q4.2021: record results across all metrics +155% +11% XX% - margin +1,831 +282 39% 68% 66% 68% Revenue ($Mn) 1,361 3,466 3,136 3,466 EBITDA* ($Mn) 531 2,362 2,080 2,362 Q4.20 04.21 Q3.21 Q4.21 Q4.20 Q4.21 Q
Slide 13: ZIM 23% growth vs. overall market growth of ~6.6% (YoY)
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary ZIM 23% growth vs. overall market growth of ~6.6%* (YoY) Volume breakdown by geographic trade zone (K TEU) 884 858 798 858 2,841 3,481 48 57 57 202 50 243 172 939 251 184 251 607 144 619 163 153 163 593 87
Slide 14: Q4.2021 cash flow bridge ($ Mn)
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Q4.2021 cash flow bridge ($ Mn) -344 -308 -299 -3 2,005 1,661 1,051 Cash Flow from CAPEX, Net Free Cash Debt Service Dividend Others Net Change in Operations Flow Total Cash Position 14
Slide 15: FY 2021 cash flow bridge ($ Mn)
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary FY 2021 cash flow bridge ($ Mn) -1,094 205 50 -1,351 -536 -9 5,971 4,877 3,236 Cash Flow from CAPEX, Net Free Cash IPO Financing Debt Service Dividend Others Net Change in Operations Flow Proceeds Initiativ
Slide 16: Demand will continue to outpace growth in supply in 2022
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Demand will continue to outpace growth in supply in 2022; possible supply chain bottlenecks, scrapping and IMO 2023 regulation support expectation that ramp up in newbuilding deliveries will offset supply g
Slide 17: Ocean Timeliness Indicator remains near record high
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Ocean Timeliness Indicator remains near Estimated impact of lower port record high, more than doubled on the TP productivity on effective capacity and increased significantly on the FEWB Cargo ready date to
Slide 18: Charter hire trend correlates with demand
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Charter hire trend correlates with demand as reflected by freight trend, carriers facing supply shortage driving higher charter cost for longer duration, are expected to sustain rate levels Clarksons’ rates
Slide 19: Confidence in longer market strength drove vessel sale-and-purchase market
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary Confidence in longer market strength Elevated demand for containerized drove the sale-and-purchase market for supply chain into the US is expected to container vessels to record levels sustain in the near-t
Slide 20: 2022 full-year guidance
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary 2022 full-year guidance Adjusted EBITDA Adjusted EBIT $7.1 – 7.5 Bn $5.6 – 6.0 Bn Average freight rates in Volume growth inline Average bunker rates in Charter rates remain 2022 higher than 2021; with marke
Slide 21: $19.5/share + $2.0/share = $21.5/share
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary 2021 dividends $2.5/share $17.0/share Q3 2021 interim dividend Q4 2021 dividend (declared November 2021, paid December 2021) (declared March 2022, payable April 2022)* $19.5/share + $2.0/share = $21.5/share
Slide 22: Q&A Session
Slide 23: ZIM – positive near- and long-term outlook
2021 achievements 2021 highlights Financial results Market developments 2022 guidance Summary ZIM – positive near- and long-term outlook Improved commercial and operational position • Secured core newbuild fleet • Launched several new services to capture market demand • Grew container fleet • Invest
Slide 24: Appendix
Slide 25: Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) FY2021 FY2020 FY2019 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) 4,649 524 (13) Financial expenses, net 157 181 154 Income taxes 1,010 17 12 Operating income (EBIT) 5,816 722 153 Non-cash charter h
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