ZIM Stories Monetary Outcomes for the Third Quarter and First 9 Months of 2022

Recorded Q3 2022 Internet Earnings of $1.17 Billion; Continued to Ship Very Robust Working Margins

Delivered Document Outcomes for the First 9 Months of 2022, together with Internet Earnings of $4.2 Billion 

Revised 2022 Full 12 months Steerage: Anticipate to Generate Adjusted EBITDA¹ of $7.4–$7.7 Billion and Adjusted EBIT of $6.0–$6.3 Billion

Declared Q3 2022 Dividend of Roughly $354 million, or $2.95 per Share, Representing 30% of Q3 2022 Internet Earnings

HAIFA, Israel, Nov. 16, 2022 /PRNewswire/ — ZIM Built-in Transport Providers Ltd. (NYSE: ZIM), a worldwide container liner transport firm, introduced at the moment its consolidated outcomes for the three and 9 months ended September 30, 2022.

Third Quarter 2022 Highlights

• Internet revenue for the third quarter was $1.17 billion (in comparison with $1.46 billion within the third quarter of 2021), or $9.66 per diluted share² (in comparison with $12.16 within the third quarter of 2021)

• Adjusted EBITDA for the third quarter was $1.93 billion, a year-over-year lower of seven%

• Working revenue (EBIT) for the third quarter was $1.54 billion, a year-over-year lower of 17%

• Revenues for the third quarter have been $3.23 billion, a year-over-year improve of three%

• Carried quantity within the third quarter was 842 thousand TEUs, a year-over-year lower of 5%

• Common freight price per TEU in third quarter was $3,353, a year-over-year improve of 4%

• Internet leverage¹ ratio of 0.0x at September 30, 2022, much like December 31, 2021

• Declared dividend of roughly $354 million, or $2.95 per share, representing roughly 30% of third quarter internet revenue

• Introduced a ten-year liquefied pure fuel (LNG) buy settlement with Shell to provide the LNG-fueled vessels that will likely be deployed on ZIM’s Asia to USEC commerce

Eli Glickman, ZIM President & CEO, said, “Our third quarter and nine-month 2022 outcomes replicate excellent execution and elevated profitability. Whereas market situations remained unstable, we delivered robust EBITDA and EBIT margins and generated internet revenue of $1.17 billion within the third quarter. Given our important money era, and per our prioritization of returning capital to shareholders, we now have declared this yr over $1.26 billion, or $10.55 per share, in dividends on account of 2022 outcomes, together with a Q3 dividend of roughly $354 million, or $2.95 per share.”

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Mr. Glickman added, “Pushed by macroeconomic and geopolitical uncertainties, the near-term outlook for container transport has shifted and the normalization in freight charges has begun. Primarily based on our present market expectations, we now forecast 2022 adjusted EBITDA of between $7.4 billion to $7.7 billion and adjusted EBIT of between $6.0 billion to $6.3 billion, and notice that each will as soon as once more characterize full-year information.”

Mr. Glickman concluded, “The proactive steps we now have taken over the previous two years, mixed with our steadiness sheet energy, have remodeled ZIM and considerably enhanced our resilience each commercially and operationally, to finest place our Firm for the ‘new regular.’ As we stay dedicated to our international area of interest technique centered on engaging trades, we now have opened a number of new companies throughout this time, enhancing our port protection to higher serve our prospects and making our industrial presence extra resilient and diversified. We have now recognized development engines complementary to our container transport actions, corresponding to our automobile service actions and digital freight forwarding subsidiary. We have now additionally secured aggressive and value efficient newbuild capability to assist our industrial technique and advance our and our prospects’ ESG agenda.”

Monetary and Working Outcomes for the Third Quarter Ended September 30, 2022

Complete revenues have been $3.23 billion for the third quarter of 2022, in comparison with $3.14 billion for the third quarter of 2021.

ZIM carried 842 thousand TEUs within the third quarter of 2022, in comparison with 884 thousand TEUs within the third quarter of 2021. The common freight price per TEU was $3,353 for the third quarter of 2022, in comparison with $3,226 for the third quarter of 2021.

Working revenue (EBIT) for the third quarter of 2022 was $1.54 billion, in comparison with $1.86 billion for the third quarter of 2021, ensuing from elevated prices, primarily bunker prices and vessels chartering, partially offset by greater revenues.

Internet revenue for the third quarter of 2022 was $1.17 billion, in comparison with $1.46 billion for the third quarter of 2021. Internet revenue for the third quarter of 2022 included a tax expense of $348 million, in comparison with $358 million for the third quarter of 2021.

Adjusted EBITDA was $1.93 billion for the third quarter of 2022, in comparison with $2.08 billion for the third quarter of 2021. Adjusted EBIT was $1.55 billion for the third quarter of 2022, in comparison with $1.86 billion for the third quarter of 2021. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2022 have been 60% and 48%, respectively. This compares to 66% and 59% for the third quarter of 2021, respectively.

Internet money generated from working actions was $1.67 billion for the third quarter of 2022, in comparison with $2.01 billion for the third quarter of 2021.

Monetary and Working Outcomes for the 9 Months Ended September 30, 2022

Complete revenues have been $10.37 billion for the primary 9 months of 2022, in comparison with $7.26 billion for the primary 9 months of 2021, primarily pushed by elevated freight charges.

ZIM carried 2,557 thousand TEUs within the first 9 months of 2022, in comparison with 2,623 thousand TEUs within the first 9 months of 2021. The common freight price per TEU was $3,600 for the primary 9 months of 2022, in comparison with $2,510 for the primary 9 months of 2021.

Working revenue (EBIT) for the primary 9 months of 2022 was $5.55 billion, in comparison with $3.70 billion for the primary 9 months of 2021. 9-month working revenue benefited from elevated freight charges, the affect of which was partially offset by elevated bunkering and vessel chartering prices.

Internet revenue for the primary 9 months of 2022 was $4.21 billion, in comparison with $2.94 billion for the primary 9 months of 2021. Internet revenue for the primary 9 months of 2022 included a tax expense of $1.26 billion, in comparison with $636 million for the primary 9 months of 2021.

Adjusted EBITDA was $6.57 billion for the primary 9 months of 2022, in comparison with $4.24 billion for the primary 9 months of 2021. Adjusted EBIT was $5.56 billion for the primary 9 months of 2022, in comparison with $3.71 billion for the primary 9 months of 2021. Adjusted EBITDA and Adjusted EBIT margins for the primary 9 months of 2022 have been 63% and 54%, respectively. This compares to 58% and 51% for the primary 9 months of 2021, respectively.

Internet money generated from working actions was $5.04 billion for the primary 9 months of 2022, in comparison with $3.97 billion for the primary 9 months of 2021.

Liquidity, Money Flows and Capital Allocation

ZIM’s complete money place (which incorporates money and money equivalents and investments in financial institution deposits and different funding devices) elevated by $634 million from $3.81 billion as of December 31, 2021 to $4.44 billion at September 30, 2022. Capital expenditures totaled $62 million for the third quarter of 2022, in contrast with $291 million for the third quarter of 2021. Internet debt was $250 million as of September 30, 2022, in comparison with internet money of $509 million as of December 31, 2021, a change of $759 million. ZIM’s internet leverage ratio as of September 30, 2022, was 0.0x, much like December 31, 2021.

Q3 2022 Dividend

In accordance with the Firm’s dividend coverage, ZIM’s Board of Administrators declared a money dividend of roughly $354 million, or $2.95 per bizarre share, reflecting roughly 30% of third quarter 2022 internet revenue. The dividend will likely be paid on December 7, 2022 to holders of ZIM bizarre shares as of November 29, 2022.

Up to date Full-12 months 2022 Steerage

The Firm revised its steerage for the full-year 2022 and now expects to generate Adjusted EBITDA of between $7.4 billion and $7.7 billion and Adjusted EBIT of between $6.0 billion and $6.3 billion. Beforehand the Firm anticipated to generate Adjusted EBITDA of between $7.8 billion and $8.2 billion and Adjusted EBIT of between $6.3 billion and $6.7 billion.

Lengthy-Time period LNG Bunkering Settlement with Shell

In August 2022, the Firm introduced the signing of a ten-year LNG buy settlement with Shell NA LNG, LLC to provide ten LNG-fueled vessels that will likely be deployed on ZIM’s flagship ZIM Container Service Pacific (ZCP), on the Asia to USEC commerce. These ten 15,000 TEU vessels are anticipated to enter into service throughout 2023-2024 and will likely be transporting items from China and South Korea to the US East Coast and the Caribbean.

Use of Non-IFRS Measures within the Firm’s 2022 Steerage

A reconciliation of the Firm’s non-IFRS monetary measures included in its full-year 2022 steerage to corresponding IFRS measures just isn’t out there on a forward-looking foundation. Particularly, the Firm has not reconciled its Adjusted EBITDA and Adjusted EBIT as a result of the varied reconciling objects between such non-IFRS monetary measures and the corresponding IFRS measures can’t be decided with out unreasonable effort because of the uncertainty relating to, and the potential variability of, the longer term prices and bills for which the Firm adjusts, the impact of which can be important, and all of that are troublesome to foretell and are topic to frequent change.

Convention Name Particulars

Administration will host a convention name and webcast (together with a slide presentation) to assessment the outcomes and supply a company replace at the moment at 8:00 AM ET.

To entry the dwell convention name by phone, please dial the next numbers: United States +1-855-265-6958 or +1-718-705-8796; Israel +972-3-721-9662 or UK/worldwide +44-1-212-818-004. The decision (and slide presentation) will likely be out there by way of dwell webcast by way of ZIM’s web site, positioned on the following hyperlink. Following the conclusion of the decision, a replay of the convention name will likely be out there on the Firm’s web site right here.

About ZIM

Based in Israel in 1945, ZIM (NYSE: ZIM) is a number one international container liner transport firm with established operations in roughly 100 international locations serving roughly 30,000 prospects in over 350 ports worldwide. ZIM leverages digital methods and a dedication to ESG values to offer prospects revolutionary seaborne transportation and logistics companies and distinctive buyer expertise. ZIM’s differentiated global-niche technique, based mostly on agile fleet administration and deployment, covers main commerce routes with a give attention to choose markets the place the corporate holds aggressive benefits. Extra details about ZIM is obtainable at www.ZIM.com.

Ahead-Wanting Statements

The next data comprises, or could also be deemed to include forward-looking statements (as outlined within the U.S. Non-public Securities Litigation Reform Act of 1995). In some circumstances, you’ll be able to determine these statements by forward-looking phrases corresponding to “might,” “would possibly,” “will,” “ought to,” “count on,” “plan,” “anticipate,” “consider,” “estimate,” “predict,” “potential” or “proceed,” the unfavourable of those phrases and different comparable terminology. These forward-looking statements, that are topic to dangers, uncertainties and assumptions concerning the Firm, might embrace projections of the Firm’s future monetary outcomes, its anticipated development methods and anticipated tendencies in its enterprise. These statements are solely predictions based mostly on the Firm’s present expectations and projections about future occasions or outcomes. There are essential elements that would trigger the Firm’s precise outcomes, stage of exercise, efficiency or achievements to vary materially from the outcomes, stage of exercise, efficiency or achievements expressed or implied by the forward-looking statements. Components that would trigger such variations embrace, however should not restricted to: market modifications in freight, bunker, constitution and different charges or costs, new laws or regulation affecting the Firm’s operations, new competitors and modifications within the aggressive setting, the end result of authorized proceedings to which the Firm is a celebration, international and/or regional political instability, inflation price fluctuations, capital markets fluctuations and different dangers and uncertainties detailed every now and then within the Firm’s filings with the U.S. Securities and Change Fee (SEC), together with underneath the caption “Danger Components” in its 2021 Annual Report filed with the SEC on March 9, 2022.

Though the Firm believes the expectations mirrored within the forward-looking statements contained herein are cheap, it can’t assure future outcomes, stage of exercise, efficiency or achievements. Furthermore, neither the Firm nor some other individual assumes accountability for the accuracy and completeness of any of those forward-looking statements. The Firm assumes no obligation to replace any of those forward-looking statements after the date hereof to evolve its prior statements to precise outcomes or revised expectations, besides as in any other case required by legislation.

The Firm prepares its monetary statements in accordance with Worldwide Monetary Reporting Requirements (IFRS), as issued by the Worldwide Accounting Requirements Board (IASB).

Use of Non-IFRS Monetary Measures

The Firm presents non-IFRS measures as further efficiency measures because the Firm believes that it allows the comparability of working efficiency between durations on a constant foundation. These measures shouldn’t be thought-about in isolation, or as an alternative choice to working revenue, some other efficiency measures, or money movement information, which have been ready in accordance with Typically Accepted Accounting Ideas as measures of profitability or liquidity. Please notice that Adjusted EBITDA doesn’t take note of debt service necessities, or different commitments, together with capital expenditures, and due to this fact, doesn’t essentially point out the quantities which may be out there for the Firm’s use. As well as, the non-IFRS monetary measures offered by the Firm, will not be akin to equally titled measures reported by different corporations, as a result of variations in the way in which these measures are calculated.

Adjusted EBITDA is a non-IFRS monetary measure which we outline as internet revenue (loss) adjusted to exclude monetary bills (revenue), internet, revenue taxes, depreciation and amortization with a purpose to attain EBITDA, and additional adjusted to exclude impairment of property, non-cash constitution rent bills, capital beneficial properties (losses) past the bizarre course of enterprise and bills associated to authorized contingencies.

Adjusted EBIT is a non-IFRS monetary measure which we outline as internet revenue (loss) adjusted to exclude monetary bills (revenue), internet and revenue taxes, with a purpose to attain our outcomes from working actions, or EBIT, and additional adjusted to exclude impairment of property, non-cash constitution rent bills, capital beneficial properties (losses) past the bizarre course of enterprise and bills associated to authorized contingencies.

Free money movement is a non-IFRS monetary measure which we outline as internet money generated from working actions minus capital expenditures, internet.

Internet debt is a non-IFRS monetary measure which we outline as face worth of short- and long-term debt, minus money and money equivalents, financial institution deposits and different funding devices.  We confer with this measure as internet money when money and money equivalents, financial institution deposits and different funding devices exceed the face worth of short- and long-term debt.

Internet leverage ratio is a non-IFRS monetary measure which we outline as internet debt (see above) divided by Adjusted EBITDA for the final twelve-month interval. When our internet debt is lower than zero, we report the online leverage ratio as zero.

See the reconciliation of internet revenue to Adjusted EBITDA and Adjusted EBIT and internet money generated from working actions to free money movement within the tables offered beneath.

Investor Relations:

Elana Holzman
ZIM Built-in Transport Providers Ltd.
+972-4-865-2300
holzman.elana@zim.com

Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com

Media:

Avner Shats
ZIM Built-in Transport Providers Ltd.
+972-4-865-2520
shats.avner@zim.com

[1] See disclosure relating to “Use of Non-IFRS Monetary Measures”.

[2] The variety of shares used to calculate the diluted earnings per share is 120,439,492. The variety of excellent shares as of September 30, 2022, was 120,047,393.

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SOURCE Zim Built-in Transport Providers Ltd.