Zim Integrated Shipping Services Ltd. · NYSE:ZIM

Zim Integrated Shipping Services — Q3 2021 Earnings Presentation

19 slides from Zim Integrated Shipping Services's earnings presentation, Nov 17, 2021

  1. Slide 1: Q3 2021 Financial Results

    Q3 2021 FINANCIAL RESULTS November 17, 2021

  2. Slide 2: Today's presenters

    Today’s presenters: Eli Glickman Xavier Destriau President & Chief Executive Officer Executive Vice President, Chief Financial Officer 2

  3. 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

  4. Slide 4: Record quarterly results & Q3.21 highlights

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Record quarterly results & Q3.21 highlights Revenues $ 3.1 billion Operating cash flow Adjusted EBITDA Shareholder equity EBITDA $2.1 billion of $ 2.0 billion and EBIT margins in excess of 66% and 59%

  5. Slide 5: Consistent earnings growth and continued deleveraging

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Consistent earnings growth and continued deleveraging $4,767 5.3x $2,949 $1,759 $1,036 $620 $386 $414 $465 $273 * $328 * $359 * 0.0x Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 *

  6. Slide 6: Strong execution – remain focused on profitability

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Strong execution – remain focused on profitability Operational agility Operational excellence Expand LNG-fueled fleet Currently operating 25 vessels 113 Invest in container fleet Secure capacity: Purc

  7. Slide 7: Improvement across key operational and financial indicators

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Improvement across key operational and financial indicators Operational Q3’21 vs. Q3’20 9M’21 vs. 9M’20 Balance Sheet Q3’21 vs. Q4’20 Carried volume 884 2,623 16% 28% Total debt* 2,819 (K TEUs) 762 2,

  8. Slide 8: Significant improvement in all metrics: Q3 YOY & Q3.21 vs. Q2.21

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Significant improvement in all metrics: Q3 YOY & Q3.21 vs. Q2.21 +210% +32% + 1,818 + 745 Revenue ($Mn) 1,013 3,136 2,382 3,136 EBITDA* ($Mn) 262 2,080 1,335 2,080 Q3.20 Q3.21 Q2.21 Q3.21 Q3.20 Q3.21

  9. Slide 9: Significant improvement in all metrics: 9M.21 vs. 9M.20

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Significant improvement in all metrics: 9M.21 vs. 9M.20 Revenue ($Mn) +176% EBIT* ($Mn) EBITDA* ($Mn) Net Profit ($Mn) +3,732 +3,417 +2,783 2,631 7,262 289 3,706 504 4,236 158 2,941 9M.20 9M.21 9M.20 9

  10. Slide 10: ZIM 16% growth vs. overall market growth of ~1.6% (Q3 YoY)

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary ZIM 16% growth vs. overall market growth of ~1.6%* (Q3 YoY) Volume breakdown by geographic trade zone (K TEU) 762 884 921 884 52 48 48 43 237 243 243 167 159 144 144 143 87 89 87 87 322 362 384 362 Q3

  11. Slide 11: Continued strong cash generation

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary Continued strong cash generation ($ Mn) Q3 2021 Cash Flow Bridge -288 -273 -237 2,008 1,720 1,210 Cash Flow from CAPEX, Net Free Cash Flow Debt Service Dividend Net Change in Operations Total Cash Pos

  12. Slide 12: Orderbook-to-Fleet Ratio

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Supply/demand potential improved alignment in 2022 subject to scrapping level; ramped up orderbook expected to be offset with land-side bottlenecks and decarbonization efforts Supply/Demand Balance Or

  13. Slide 13: Elevated freight rates driven by high demand and supply chain challenges

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Elevated freight rates driven by high demand coupled by supply chain challenges; charter hire trend correlates with freight trend, seem to plateau Shanghai Container Freight Index Development Clarkson

  14. Slide 14: Pressure on the containerized supply chain into the US not expected to ease

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Pressure on the containerized supply Oil prices recover to pre-COVID level: chain into the US not expected to ease strong demand worldwide as economies in the near-term recover from COVID induced slum

  15. Slide 15: 2021 full-year guidance

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary 2021 full-year guidance Previous Guidance Updated Guidance 8.2021 11.2021 Adjusted $4.8 - 5.2 Bn $6.2 – 6.4 Bn EBITDA Adjusted $4.0 - 4.4 Bn $5.4 - 5.6 Bn EBIT 15

  16. Slide 16: New dividend policy

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary New dividend policy* Previous Policy New Policy Implementation Annual dividend of Interim quarterly dividends Declared 30-50% ~20% Q3.21 quarterly dividend of annual net income of quarter’s net income

  17. Slide 17: ZIM – well-positioned to continue outperforming

    Q3 2021 achievements Q3 2021 highlights Financial results Market developments 2021 guidance Summary ZIM – well-positioned to continue outperforming Proven operational and Differentiated strategy Effective capital commercial agility • Global-niche strategy allocation • Chartered-in capacity • Digital

  18. Slide 18: Appendix

  19. Slide 19: Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT

    Reconciliation of net income to Adjusted EBITDA and Adjusted EBIT ($ in Mn) Q3'21 Q3'20 Q3'19 RECONCILIATION OF NET INCOME TO ADJUSTED EBIT Net income 1,463 144 5 Financial expenses, net 38 41 38 Income taxes 358 4 3 Operating income (EBIT) 1,859 189 46 Non-cash charter hire expenses (1)(2) 0 1 2 Ca

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