Zim Integrated Shipping Services Ltd. · NYSE:ZIM
Zim Integrated Shipping Services — Q4 2022 Earnings Presentation
18 slides from Zim Integrated Shipping Services's earnings presentation, Mar 13, 2023
Slide 1: Full Year & Q4 2022 Financial Results
FULL YEAR & Q4 2022 FINANCIAL RESULTS March 13, 2023
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: Record Full Year Operational Results; Strong Balance Sheet
2022 highlights Financial highlights 2023 guidance Market update Summary Record Full Year Operational Results*; Strong Balance Sheet Revenue Adj EBITDA Adj EBIT Operating Total equity $ 12.6 Bn $ 7.5 Bn $ 6.1 Bn cash flow (12.31. 2022) (+17%) (+14%) (+6%) $ 6.1 Bn $ 5.9 Bn (+2%) Margins Margins Adj
Slide 4: Building Resilience for Future Growth
2022 highlights Financial highlights 2023 guidance Market update Summary Building Resilience for Future Growth Operational Commercial Growth engines Cost structure Diversification Disruptive technologies Agility Customer centric Early-stage Excellence Digital innovation Strategic partners Secure cor
Slide 5: Building Long Term Shareholder Value
2022 highlights Financial highlights 2023 guidance Market update Summary Building Long Term Shareholder Value 2023 Guidance Dividend Adjusted EBITDA Q4 dividend $6.40/share; $1.8 – 2.2 billion ($769 million) Adjusted EBIT 2022 total payout $100 - 500 million 44% of 2022 net income $16.95/share ($2.0
Slide 6: Strong Results Across Key Operational and Financial Indicators
2022 highlights Financial highlights 2023 guidance Market update Summary Strong Results Across Key Operational and Financial Indicators* Operational Q4-22 2022 Cash flow Q4-22 2022 Balance Sheet 31-12-22 Carried volume 823 3,380 Free cash flow 1,048 5,796 Total debt** 4,332 (K TEUs) (-4%) (-3%) ($ M
Slide 7: Maintaining Strong Earnings and Low Leverage Ratio
2022 highlights Financial highlights 2023 guidance Market update Summary Maintaining Strong Earnings and Low Leverage Ratio $9,075 $8,930 $8,310 $7,541 $6,597 $4,767 $2,949 3.4x $1,759 $1,036 $414 $465 $620 0.0x Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 7 LTM Adj. EBITD
Slide 8: Solid Execution Support Strong Results and Profitability
2022 highlights Financial highlights 2023 guidance Market update Summary Solid Execution Support Strong Results and Profitability +17% XX% - margin +14% -37% -59% 61% 60% Adjusted 68% 44% Revenue 3,466 2,189 10,729 12,562 EBITDA 2,362 973 6,597 7,541 ($Mn) ($Mn) 4 Q4.22 +6% 0% -72% -76% 54% 49% 61%
Slide 9: Volume Breakdown By Geographic Trade Zone (K TEU)
2022 highlights Financial highlights 2023 guidance Market update Summary Volume Breakdown By Geographic Trade Zone (K TEU) 3,481 3,380 1,376 1,160 428 345 496 619 858 823 Pacific 1,058 303 291 939 Cross-Suez 84 115 Atlantic 163 108 Intra-Asia 251 250 202 238 57 59 Latin America 9 Q4.2021 Q4.2022 FY.
Slide 10: Cash Flow 2022 Highlights ($m)
2022 highlights Financial highlights 2023 guidance Market update Summary Cash Flow 2022 Highlights ($m) 6,110 -314 5,796 -3,303 (1,670) 59 -88 792 Cash Flow from CAPEX, Net Free Cash Dividend* Debt Service Financing Net Change Net Change in Operations Flow Initiatives in ST Loans Total Cash & Others
Slide 11: 2023 Full Year Guidance
2022 highlights Financial highlights 2023 guidance Market update Summary 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 11
Slide 12: 2022 Dividend
2022 highlights Financial highlights 2023 guidance Market update Summary 2022 Dividend $2.85/share $4.75/share $2.95/share $6.40/share Q1 2022 Q2 2022 Q3 2022 Q4 2022 interim dividend interim dividend interim dividend dividend* (20% of Q1 2022 net income) ($3.33 – 30% of Q2 2022 net income + (30% of
Slide 13: Capital Allocation Priorities for 2023 (and Beyond)
2022 highlights Financial highlights 2023 guidance Market update Summary Capital Allocation Priorities for 2023 (and Beyond) Capacity Equipment M&A Return capital prepayment for renew container focus on SEA to shareholders LNG vessels fleet; reefer fleet and LATAM 13
Slide 14: Supply/Demand Balance is a Threat; Potential Mitigating Factors are Possible
2022 highlights Financial highlights 2023 guidance Market update Summary Supply/Demand Balance is a Threat; Potential Mitigating Factors are Possible Supply/Demand Balance 30M 8.8% 10% Scrapping Restocking 8.6% 7.6% 8.2% 20M 6.3% 6.7% 5.8% 4.0% 4.5% 2.2% 3.8% 2.9% 4.1% 1.4% 1.8% 1.9% 1.7% 1.8% -1.0%
Slide 15: — a EEE SS lS dll le > e Sa <=
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Slide 16: Solid Foundation for Any Market
2022 highlights Financial highlights 2023 guidance Market developments Summary Solid Foundation for Any Market Diversified Significant Competitive Growth Strong commercial LNG “green” cost structure engines balance sheet presence capacity 16
Slide 17: — a EEE SS lS dll le > e Sa <=
— a EEE SS lS dll le > e Sa <=
Slide 18: Reconciliation of Net income to Adjusted EBITDA and Adjusted EBIT
Reconciliation of Net income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) 2022 2021 2020 RECONCILIATION OF NET INCOME TO ADJUSTED EBIT Net income 4,629 4,649 524 Financial expenses, net 109 157 181 Income taxes 1,398 1,010 17 Operating income (EBIT) 6,136 5,816 722 Non-cash charter hire expenses (
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