Zim Integrated Shipping Services Ltd. · NYSE:ZIM

Zim Integrated Shipping Services — Q2 2021 Earnings Presentation

19 slides from Zim Integrated Shipping Services's earnings presentation, Aug 18, 2021

  1. Slide 1: Q2 2021 Financial Results

    Q2 2021 FINANCIAL RESULTS August 18, 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: Q2 & YTD 2021 achievements

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Q2 & YTD 2021 achievements Record Quarterly Results Major Milestones Second strategic long-term Revenues of $2.4 billion and net profit of chartering agreement with $888 million; exceeds 2020 results

  5. Slide 5: Consistent earnings growth and continued deleveraging

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Consistent earnings growth and continued deleveraging $2,949 $1,759 5.3x $1,036 $620 $386 $414 $465 $328* $359 * $273 * 0.3x Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 * LTM Adjusted

  6. Slide 6: Strong execution across all strategic pillars

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Strong execution across all strategic pillars Operational agility Operational excellence Adapt fleet size to capitalize on market Expand LNG-fueled fleet opportunities: Invest in container fleet 68 59

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

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Improvement across key operational and financial indicators Operational Q2’21 vs. Q2’20 1H’21 vs. 1H’20 Balance Sheet Q2’21 vs. Q4’20 Carried Volume 921 1,739 44% 36% Total Debt* 2,371 (K TEUs) 641 1,

  8. Slide 8: Significant improvement in all metrics: Q2 YOY & Q2.21 vs. Q1.21

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Significant improvement in all metrics: Q2 YOY & Q2.21 vs. Q1.21 +200% +37% + 1,190 + 514 Revenue ($Mn) 795 2,382 1,744 2,382 EBITDA* ($Mn) 145 1.335 821 1,335 Q2.20 Q2.21 Q1.21 Q2.21 Q2.20 Q2.21 Q1.2

  9. Slide 9: Significant improvement in all metrics: 1H.21 vs. 1H.20

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Significant improvement in all metrics: 1H.21 vs. 1H.20 +155% Revenue ($Mn) EBIT* ($Mn) EBITDA* ($Mn) Net Profit ($Mn) +1,914 +1,747 +1,465 1,618 4,126 100 1,847 242 2,156 13 1,478 1H.20 1H.21 1H.20 1H

  10. Slide 10: ZIM 44% growth vs. overall market growth of ~15% (Q2 YoY)

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary ZIM 44% growth vs. overall market growth of ~15%* (Q2 YoY) Volume breakdown by geographic trade zone (K TEU) 641 921 818 921 52 52 45 237 237 208 37 123 159 159 153 141 89 89 84 79 261 384 328 384 Q2.

  11. Slide 11: Cash flow Q2 2021 highlights ($ Mn)

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Cash flow Q2 2021 highlights ($ Mn) FCF 867 +357 -154 -314 50 -544 -16 1,335 1,188 1,545 Cash Non GAAP Working Investing Debt Financing Others Cash 31.03.21 EBITDA Capital And Cash Flow Service Initia

  12. Slide 12: Orderbook-to-Fleet Ratio

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Market supply/demand fundamentals remain positive; Recent ramped up in orderbook expected to be offset with land-side bottlenecks and decarbonization efforts Supply/Demand Balance Orderbook-to-Fleet 3

  13. Slide 13: Alphaliner Charter Rate Index SCFI / CCFI (Monthly Average)

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Freight rates trend continues to rise well-above average of the past decade driven by supply challenges Charter hire trend correlates with demand as reflected by spot rates Shanghai Container Freight

  14. Slide 14: Despite continued demand boom, retailers' inventory levels remain very low

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Despite continued demand boom, Oil prices rise amid uncertainty on retailers’ inventory levels remain very OPEC stand and US bigger than low expected drop in gasoline inventories US Retail Trade Inven

  15. Slide 15: 2021 full-year guidance

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary 2021 full-year guidance Previous Guidance Updated Guidance 5.2021 8.2021 Adjusted $2.5 - 2.8 Bn $4.8 - 5.2 Bn EBITDA Adjusted $1.85 - 2.15 Bn $4.0 - 4.4 Bn EBIT 15

  16. Slide 16: Dividend: $2.0 per share

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Dividend Initial guidance for FY 2021 Declared Reconfirm special dividend dividend policy on account of 2020 net profits management recommendation to distribute annual dividend of $2.0 per share (appr

  17. Slide 17: Poised for continued growth and delivering shareholder value

    Q2 2021 achievements Q2 2021 highlights Financial results Market developments 2021 guidance Summary Poised for continued growth and delivering shareholder value Positioning ZIM as an innovative leader of seaborne transportation and logistics services Differentiated strategy and strong underlying mar

  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) Q2'21 Q2'20 Q2'19 RECONCILIATION OF NET INCOME TO ADJUSTED EBIT Net income 888 25 5 Financial expenses, net 46 40 36 Income taxes 224 4 3 Operating income (EBIT) 1,158 69 44 Non-cash charter hire expenses (1)(2) 0 2 3 Capita

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