Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q1 2021 Earnings Presentation
20 slides from Zim Integrated Shipping Services's earnings presentation, May 19, 2021
Slide 1: Investor Presentation, May 2021
ee ED ee ZIM « INVESTORIPRESENTATION 19 May 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 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: Q1 & YTD 2021 achievements
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Q1 & YTD 2021 achievements Redeem $349 million principal amount of Achieved record profitability in Q1 2021 Series 1 and 2 notes due 2023 Outstanding net result! Reached net profit $590 milli
Slide 5: Consistent earnings growth and disciplined deleveraging strategy
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Consistent earnings growth and disciplined deleveraging strategy $1,759 ($MN) 5.3x $1,036 $620 $386 $414 $465 $328 * $359 * $273 * 0.5x Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 L
Slide 6: Strong execution across all strategic pillars
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Strong execution across all strategic pillars Operational agility Operational excellence ▪ Advance initiatives & policies to mitigate environmental impact 68 59 98 112 ▪ ▪ Effective cost mana
Slide 7: Cash position significantly improved in Q1 2021; leverage ratio decreased
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Cash position significantly improved in Q1 2021; together with increased earnings our leverage ratio decreased to lowest level Operational (Q1’21 vs. Q1’20) Balance Sheet (Q1’21 vs. Q4’20) Ca
Slide 8: Significant improvement in all metrics in Q1 YOY and Q1.21 vs. Q4.20
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Significant improvement in all metrics in Q1 YOY and Q1.21 vs. Q4.20 +112% +28% + 724 + 290 12% 47% 39% 47% XX% - margin Revenue ($Mn) 823 1,744 1,361 1,744 EBITDA* ($Mn) 97 821 531 821 Q1.20
Slide 9: Volume breakdown by geographic trade zone (K TEU)
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Volume breakdown by geographic trade zone (K TEU) 638 818 799 818 45 50 45 208 184 208 43 132 153 153 153 155 84 91 84 86 222 328 321 328 Q1.20 Q1.21 Q4.20 Q1.21 9 Pacific Cross-Suez Atlantic
Slide 10: Cash flow Q1 2021 highlights ($Mn)
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Cash flow Q1 2021 highlights ($Mn) +618 FEF 643 -44 -6 205 -134 -224 821 570 1,188 Cash Non GAAP Working Investing Debt IPO Proceeds Others Cash 31.12.20 EBITDA Capital And Cash Flow Service
Slide 11: Market supply/demand fundamentals are positive; orderbook below previous peaks
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Market supply/demand fundamentals are positive; The recently ramped up orderbook is still much below previous peaks Supply/Demand balance Orderbook-to-Fleet 30.0 M TEU Fleet Capacity (year en
Slide 12: Drewry forecasts demand will surpass supply growth during 2021
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Drewry forecasts demand will surpass supply growth during 2021 Drewry port handling forecast Drewry global supply-demand index 20% Mar 21 baseline S/D Index 15% Upside scenario 110 S/D Index
Slide 13: Freight rates remain well above the average of the past decade
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Freight rates remain well above the average of the past decade; Charter hire trend correlates with demand as reflected by spot rates Shanghai Container Freight Index development 10 Year Chart
Slide 14: Retailers' inventory levels have not yet been rebuilt
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Despite continued demand boom, Oil prices rise with hopes for demand retailers’ inventory levels have not yet recovery in the US and Europe been rebuilt Retailers: Inventory to Sales ratio (U
Slide 15: 2021 full-year guidance
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy 2021 full-year guidance* Initial guidance for Updated guidance for FY 2021 FY 2021 Average Freight Rate Higher Higher Average Bunker Price Higher Slightly higher Volume Higher Slightly higher
Slide 16: Dividend update: $2.0 per share
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Dividend update Initial guidance for FY 2021 Declare Reconfirm special dividend dividend policy on account of 2020 net profits management recommendation to distribute annual dividend of $2.0
Slide 17: Continue to accelerate, leveraging the momentum!
Q1 2021 achievements Q1 2021 highlights Financial results Market developments 2021 guidance Focus & strategy Continue to accelerate, leveraging the momentum! Positioning ZIM as an innovative leader of seaborne transportation and logistics services with relentless focus on: Maintaining agility Promot
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Slide 19: Appendix
Slide 20: Reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBIT
Reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q1'21 Q1'20 Q1'19 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT Net income (loss) 590 (12) (24) Financial expenses (income), net 39 34 39 Income taxes 54 3 4 Operating income (EBIT) 683 25 19 Non-cash charter h
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