ZIM ZIM Integrated Shipping Services Ltd

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ZIM Reports Financial Results for the Third Quarter of 2024;

Raises Full Year 2024 Guidance

Reported Revenues of $2.77 Billion, Net Income of $1.13 Billion, Adjusted EBITDA¹

of $1.53 Billion and Adjusted EBIT of $1.24 Billion²; Achieved Adjusted EBITDA and

Adjusted EBIT Margins of 55% and 45%, Respectively

Achieved 12% Volume Growth YOY with Record Carried Volume
of 970 Thousand TEUs in Q3 2024

Increased Full Year 2024 Guidance to Adjusted EBITDA of $3.3 Billion
to $3.6 Billion and Adjusted EBIT of $2.15 Billion to $2.45 Billion³

Declared Increased Dividend of ~$440 million, Comprised of a Regular Dividend of

~$340 Million, or 30% of Q3 Net Income, Plus Special Dividend of ~$100 Million;

Per Share Distribution: $3.65 Per Share, Reflecting Regular Dividend of $2.81 Per

Share Plus Special Dividend of $0.84 Per Share

Haifa, Israel, November 20, 2024 – ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), (“ZIM” or the “Company”) a global container liner shipping company, announced today its consolidated results for the three and nine months ended September 30, 2024.

Third Quarter 2024 Highlights

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Eli Glickman, ZIM President & CEO, stated, “ZIM delivered strong third quarter results, as we again achieved record carried volumes contributing to our outstanding financial performance. We are pleased to share our success with our shareholders and declare a special dividend of ~$100 million on top of the regular 30% of quarterly net income dividend payout of ~$340 million, for a total dividend of ~$440 million, or $3.65 per share. Our growing earnings power is reflective of a strong rate environment, but also a testament to our diligent execution, upscaling our capacity and enhancing our cost structure. We’ve continued to see incremental benefits from our strategic investment in our operated capacity as new larger, more modern, cost-effective vessels join our fleet.”

Mr. Glickman added, “Also contributing to our strong Q3 was a decision we made earlier in the year to increase our exposure to spot volumes in the Transpacific trade. A key differentiator for ZIM is our commercial agility and we intend to continue to leverage this strength to capitalize on market opportunities moving forward. Based on results that have exceeded expectations to date and improved outlook for the fourth quarter of 2024, we have increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between $3.3 billion and $3.6 billion and Adjusted EBIT between $2.15 billion and $2.45 billion.”

Mr. Glickman concluded, “We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.”

Summary of Key Financial and Operational Results

Financial and Operating Results for the Third Quarter Ended September 30, 2024

Total revenues were $2.77 billion for the third quarter of 2024, compared to $1.27 billion for the third quarter of 2023, mainly driven by the increase in freight rates as well as carried volume.

ZIM carried 970 thousand TEUs in the third quarter of 2024, compared to 867 thousand TEUs in the third quarter of 2023. The average freight rate per TEU was $2,480 for the third quarter of 2024, compared to $1,139 for the third quarter of 2023.

Operating income (EBIT) for the third quarter of 2024 was $1.23 billion, compared to operating loss of $2.28 billion for the third quarter of 2023. The increase was primarily driven by the impairment loss recorded in the third quarter of 2023 and the above-mentioned increase in revenues.

Net income for the third quarter of 2024 was $1.13 billion, compared to net loss of $2.27 billion for the third quarter of 2023, also mainly driven by the above-mentioned impairment loss recorded in the third quarter of 2023 and the increase in revenues.

Adjusted EBITDA for the third quarter of 2024 was $1.53 billion, compared to $211 million for the third quarter of 2023. Adjusted EBIT was $1.24 billion for the third quarter of 2024, compared to Adjusted EBIT loss of $213 million for the third quarter of 2023. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2024 were 55% and 45%, respectively. This compares to 17% and -17% for the third quarter of 2023, respectively.

Net cash generated from operating activities was $1.50 billion for the third quarter of 2024, compared to $338 million for the third quarter of 2023.

Financial and Operating Results for the Nine Months Ended September 30, 2024

Total revenues were $6.26 billion for the first nine months of 2024, compared to $3.96 billion for the first nine months of 2023, primarily driven by both an increase in freight rates as well as carried volume.

ZIM carried 2,768 thousand TEUs in the first nine months of 2024, compared to 2,496 thousand TEUs in the first nine months of 2023. The average freight rate per TEU was $1,889 for the first nine months of 2024, compared to $1,235 for the first nine months of 2023.

Operating income (EBIT) for the first nine months of 2024 was $1.87 billion, compared to operating loss of $2.46 billion for the first nine months of 2023. The increase was primarily driven by the above-mentioned increase in revenues and the impairment loss recorded in the third quarter of 2023.

Net income for the first nine months of 2024 was $1.59 billion, compared to net loss of $2.54 billion for the first nine months of 2023, also mainly driven by the above-mentioned increase in revenues and impairment loss recorded in the third quarter of 2023.

Adjusted EBITDA was $2.72 billion for the first nine months of 2024, compared to $859 million for the first nine months of 2023. Adjusted EBIT was $1.90 billion for the first nine months of 2024, compared to Adjusted EBIT loss of $373 million for the first nine months of 2023. Adjusted EBITDA and Adjusted EBIT margins for the first nine months of 2024 were 44% and 30%, respectively. This compares to 22% and -9% for the first nine months of 2023.

Net cash generated from operating activities was $2.60 billion for the first nine months of 2024, compared to $858 million for the first nine months of 2023.

Liquidity, Cash Flows and Capital Allocation

ZIM’s total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) increased by $441 million from $2.69 billion as of December 31, 2023 to $3.13 billion as of September 30, 2024. Capital expenditures totaled $50 million for the third quarter of 2024, compared to $14 million for the third quarter of 2023. Net debt position as of September 30, 2024 was $2.70 billion, compared to $2.31 billion, as of December 31, 2023, an increase of $389 million. ZIM's net leverage ratio as of September 30, 2024, was 0.9x, compared to 2.2x as of December 31, 2023.

Third Quarter 2024 and Special Dividend

In accordance with the Company's dividend policy, the Company’s Board of Directors declared a regular cash dividend of approximately $340 million, or $2.81 per ordinary share, reflecting approximately 30% of third quarter 2024 net income. In addition, the Board of Directors declared a special dividend of approximately $100 million, or $0.84 per share, for a total dividend of approximately $440 million or $3.65 per share. The dividend (both regular and special) will be paid on December 9, 2024, to holders of record of ZIM ordinary shares as of December 2, 2024.

All future dividends are subject to the discretion of Company's Board of Directors and to the restrictions provided by Israeli law.

Use of Non-IFRS Measures in the Company’s 2024 Guidance

A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2024 guidance to corresponding IFRS measures is not available on a forward-looking basis. In particular, the Company has not reconciled its Adjusted EBITDA and Adjusted EBIT because the various reconciling items between such non-IFRS financial measures and the corresponding IFRS measures cannot be determined without unreasonable effort due to the uncertainty regarding, and the potential variability of, the future costs and expenses for which the Company adjusts, the effect of which may be significant, and all of which are difficult to predict and are subject to frequent change.

Updated Full-Year 2024 Guidance

The Company increased its guidance for the full year of 2024 and now expects to generate Adjusted EBITDA between $3.3 billion and $3.6 billion and Adjusted EBIT between $2.15 billion and $2.45 billion. Previously, the Company expected to generate Adjusted EBITDA between $2.6 billion and $3.0 billion and Adjusted EBIT between $1.45 billion and $1.85 billion.

Conference Call Details

Management will host a conference call and webcast (along with a slide presentation) to review the results and provide a corporate update today at 8:00 AM ET.

To access the live conference call by telephone, please dial the following numbers: United States (toll free) +1-800-715-9871 or +1-646-307-1963; Israel +972-3-376-1144 or UK/international +44-20-3481-4247, and reference conference ID: 1972775 or the conference name. The call (and slide presentation) will be available via live webcast through ZIM’s website, located at the following link. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.

About ZIM

Founded in Israel in 1945, ZIM (NYSE: ZIM) is a leading global container liner shipping company with established operations in more than 90 countries serving approximately 33,000 customers in over 300 ports worldwide. ZIM leverages digital strategies and a commitment to ESG values to provide customers innovative seaborne transportation and logistics services and exceptional customer experience. ZIM’s differentiated global-niche strategy, based on agile fleet management and deployment, covers major trade routes with a focus on select markets where the company holds competitive advantages. Additional information about ZIM is available at www.ZIM.com.

Forward-Looking Statements

The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company’s future financial results, its anticipated growth strategies and anticipated trends in its business. These statements are only predictions based on the Company’s current expectations and projections about future events or results. There are important factors that could cause the Company’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: market changes in freight, bunker, charter and other rates or prices (including as a result of the continued situation in the Red Sea), supply-demand fluctuations in the containerized shipping market, new legislation or regulation affecting the Company’s operations, new competition and changes in the competitive environment, our ability to achieve cost savings or expense reductions, the outcome of legal proceedings to which the Company is a party, global, regional and/or local political instability, including the ongoing war between Israel and Hamas, the increased tension between Israel and Iran and its proxies, in particular the ongoing hostilities between Israel and Hezbollah, inflation rate fluctuations, capital markets fluctuations and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including under the caption “Risk Factors” in its 2023 Annual Report filed with the SEC on March 13, 2024. 

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except as otherwise required by law.

The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

Use of Non-IFRS Financial Measures

The Company presents non-IFRS measures as additional performance measures as the Company believes that it enables the comparison of operating performance between periods on a consistent basis. These measures should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. Please note that Adjusted EBITDA does not take into account debt service requirements or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company's use. In addition, the non-IFRS financial measures presented by the Company may not be comparable to similarly titled measures reported by other companies due to differences in the way these measures are calculated.

Adjusted EBITDA is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net, income taxes, depreciation and amortization in order to reach EBITDA, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.

Adjusted EBIT is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net and income taxes, in order to reach our results from operating activities, or EBIT, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.

Free cash flow is a non-IFRS financial measure which we define as net cash generated from operating activities minus capital expenditures, net.

Net debt is a non-IFRS financial measure which we define as face value of short- and long-term debt, minus cash and cash equivalents, bank deposits and other investment instruments.  We refer to this measure as net cash when cash and cash equivalents, bank deposits and other investment instruments exceed the face value of short- and long-term debt.

Net leverage ratio is a non-IFRS financial measure which we define as net debt (see above) divided by Adjusted EBITDA for the last twelve-month period. When our net debt is less than zero, we report the net leverage ratio as zero.

See the reconciliation of net income to Adjusted EBIT and Adjusted EBITDA and net cash generated from operating activities to free cash flow in the tables provided below.

Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com

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

Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
media@zim.com

CONSOLIDATED BALANCE SHEET (Unaudited)
(U.S. dollars in millions)

 

CONSOLIDATED INCOME STATEMENTS (Unaudited)
(U.S. dollars in millions, except per share data)

 

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(U.S. dollars in millions)

 

RECONCILIATION OF NET INCOME TO ADJUSTED EBIT*
(U.S. dollars in millions)

 

 

* The table above may contain slight summation differences due to rounding.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA*
(U.S. dollars in millions)

 

 

* The table above may contain slight summation differences due to rounding.

RECONCILIATION OF NET CASH GENERATED FROM OPERATING ACTIVITIES TO FREE CASH FLOW
(U.S. dollars in millions)

 

	Page
FINANCIAL STATEMENTS:
Condensed consolidated unaudited interim Statements of Financial Position	3
Condensed consolidated unaudited interim Income Statements	4
Condensed consolidated unaudited interim Statements of Comprehensive Income	5
Condensed consolidated unaudited interim Statements of Changes in Equity	6-7
Condensed consolidated unaudited interim Statements of Cash Flows	8-9
Notes to the condensed consolidated unaudited interim Financial Statements	10-18

					September 30								December 31
					2024				2023				2023
		Note			US $ in millions
Assets
Vessels		6				5,301.9				3,222.9				3,758.9
Containers and handling equipment		6				988.7				788.2				792.9
Other tangible assets		6				91.1				61.1				85.2
Intangible assets						107.6				93.3				102.0
Investments in associates						26.0				26.8				26.4
Other investments						844.6				1,252.6				908.7
Other receivables						69.9				105.5				97.9
Deferred tax assets						2.5				9.6				2.6
Total non-current assets						7,432.3				5,560.0				5,774.6
Inventories						208.4				156.4				179.3
Trade and other receivables						1,062.5				644.3				596.5
Other investments						766.6				918.6				874.1
Cash and cash equivalents						1,548.7				912.1				921.5
Total current assets						3,586.2				2,631.4				2,571.4
Total assets						11,018.5				8,191.4				8,346.0
Equity
Share capital and reserves		5				2,041.1				1,980.7				2,017.5
Retained earnings						1,884.8				586.9				437.2
Equity attributable to owners of the Company						3,925.9				2,567.6				2,454.7
Non-controlling interests						4.8				3.8				3.3
Total equity						3,930.7				2,571.4				2,458.0
Liabilities
Lease liabilities						4,284.7				2,952.0				3,244.1
Loans and other liabilities						67.4				79.3				73.6
Employee benefits						43.4				39.4				46.1
Deferred tax liabilities						5.2				13.0				6.1
Total non-current liabilities						4,400.7				3,083.7				3,369.9
Trade and other payables						668.3				554.6				566.4
Provisions						93.0				58.3				60.7
Contract liabilities						433.8				207.3				198.1
Lease liabilities						1,433.6				1,668.0				1,644.7
Loans and other liabilities						58.4				48.1				48.2
Total current liabilities						2,687.1				2,536.3				2,518.1
Total liabilities						7,087.8				5,620.0				5,888.0
Total equity and liabilities						11,018.5				8,191.4				8,346.0

/s/ Yair Seroussi		/s/ Eli Glickman		/s/ Xavier Destriau
Yair Seroussi		Eli Glickman		Xavier Destriau
Chairman of the Board of Directors		President & Chief Executive Officer		Chief Financial Officer

					Nine months ended September 30								Three months ended September 30								Year ended December 31
					2024				2023				2024				2023				2023
		Note			US $ in millions
Income from voyages and related services		7				6,259.8				3,956.9				2,765.2				1,273.0				5,162.2
Cost of voyages and related services
Operating expenses and cost of services		8				(3,381.9	)			(2,922.0	)			(1,167.8	)			(1,008.4	)			(3,885.1	)
Depreciation						(824.9	)			(1,212.8	)			(292.1	)			(417.4	)			(1,449.8	)
Impairment of assets										(2,034.9	)							(2,034.9	)			(2,034.9	)
Gross profit (loss)						2,053.0				(2,212.8	)			1,305.3				(2,187.7	)			(2,207.6	)
Other operating income						32.9				2.5				7.3				0.6				14.4
Other operating expenses						(1.7	)			(32.5	)			(1.1	)			(22.4	)			(29.3	)
General and administrative expenses						(209.7	)			(209.4	)			(75.9	)			(63.9	)			(280.7	)
Share of loss of associates						(4.8	)			(5.2	)			(0.8	)			(2.3	)			(7.8	)
Results from operating activities						1,869.7				(2,457.4	)			1,234.8				(2,275.7	)			(2,511.0	)
Finance income						81.0				117.7				19.8				35.6				142.2
Finance expenses						(346.5	)			(338.7	)			(121.6	)			(101.5	)			(446.7	)
Net finance expenses						(265.5	)			(221.0	)			(101.8	)			(65.9	)			(304.5	)
Profit (loss) before income taxes						1,604.2				(2,678.4	)			1,133.0				(2,341.6	)			(2,815.5	)
Income taxes						(13.1	)			137.1				(6.8	)			71.1				127.6
Profit (loss) for the period						1,591.1				(2,541.3	)			1,126.2				(2,270.5	)			(2,687.9	)
Attributable to:
Owners of the Company						1,586.2				(2,547.2	)			1,124.6				(2,272.6	)			(2,695.6	)
Non-controlling interests						4.9				5.9				1.6				2.1				7.7
Profit (loss) for the period						1,591.1				(2,541.3	)			1,126.2				(2,270.5	)			(2,687.9	)
Earnings (loss) per share (US$)
Basic earnings (loss) per 1 ordinary share		10				13.18				(21.19	)			9.34				(18.90	)			(22.42	)
Diluted earnings (loss) per 1 ordinary share		10				13.17				(21.19	)			9.34				(18.90	)			(22.42	)

		Nine months ended September 30								Three months ended September 30								Year ended December 31
		2024				2023				2024				2023				2023
		US $ in millions
Profit (loss) for the period			1,591.1				(2,541.3	)			1,126.2				(2,270.5	)			(2,687.9	)
Other components of comprehensive income
Items of other comprehensive income that were or will be reclassified to profit or loss
Foreign currency translation differences for foreign operations			0.2				(7.0	)			3.0				(1.3	)			(9.1	)
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax			16.2				(25.6	)			20.9				(19.5	)			4.4
Reclassification of investments in debt instruments at fair value through other comprehensive income to profit or loss			0.5				7.9				(0.1	)			2.3				13.6
Items of other comprehensive income that would never be reclassified to profit or loss
Net change in fair value of investments in equity instruments at fair value through other comprehensive income, net of tax			(0.3	)			1.4				(0.1	)			(0.2	)			1.5
Defined benefit pension plans actuarial gains (losses), net of tax			1.0				1.4				(0.3	)			1.2				0.1
Other comprehensive income for the period, net of tax			17.6				(21.9	)			23.4				(17.5	)			10.5
Total comprehensive income for the period			1,608.7				(2,563.2	)			1,149.6				(2,288.0	)			(2,677.4	)
Attributable to:
Owners of the Company			1,603.0				(2,568.2	)			1,146.7				(2,289.8	)			(2,683.3	)
Non-controlling interests			5.7				5.0				2.9				1.8				5.9
Total comprehensive income for the period			1,608.7				(2,563.2	)			1,149.6				(2,288.0	)			(2,677.4	)

		Attribute to the owners of the Company
		Share capital				General reserves (*)				Translation Reserve				Retained earnings				Total				Non-controlling interests				Total equity
		US $ in millions
For the nine months period ended September 30, 2024
Balance at January 1, 2024			926.6				1,133.7				(42.8	)			437.2				2,454.7				3.3				2,458.0
Profit for the period															1,586.2				1,586.2				4.9				1,591.1
Other comprehensive income for the period, net of tax							16.4				(0.6	)			1.0				16.8				0.8				17.6
Share-based compensation							7.8												7.8								7.8
Exercise of options			0.5				(0.5	)
Dividend to owners of the Company															(139.6	)			(139.6	)							(139.6	)
Dividend to non-controlling interests in subsidiaries																							(4.2	)			(4.2	)
Balance at September 30, 2024			927.1				1,157.4				(43.4	)			1,884.8				3,925.9				4.8				3,930.7
For the three months period ended September 30, 2024
Balance at July 1, 2024			927.0				1,134.8				(45.1	)			872.4				2,889.1				2.4				2,891.5
Profit for the period															1,124.6				1,124.6				1.6				1,126.2
Other comprehensive income for the period, net of tax							20.7				1.7				(0.3	)			22.1				1.3				23.4
Share-based compensation							2.0												2.0								2.0
Exercise of options			0.1				(0.1	)
Dividend to owners of the Company															(111.9	)			(111.9	)							(111.9	)
Dividend to non-controlling interests in subsidiaries																							(0.5	)			(0.5	)
Balance at September 30, 2024			927.1				1,157.4				(43.4	)			1,884.8				3,925.9				4.8				3,930.7

		Attribute to the owners of the Company
		Share capital				General reserves (*)				Translation reserve				Retained earnings				Total				Non-controlling interests				Total Equity
		US $ in millions
For the nine months period ended September 30, 2023
Balance at January 1, 2023			925.9				1,097.3				(35.5	)			3,901.9				5,889.6				6.3				5,895.9
Loss for the period															(2,547.2	)			(2,547.2	)			5.9				(2,541.3	)
Other comprehensive income for the period, net of tax							(16.3	)			(6.1	)			1.4				(21.0	)			(0.9	)			(21.9	)
Share-based compensation							15.4												15.4								15.4
Exercise of options			0.5				(0.5	)
Dividend to owners of the Company															(769.2	)			(769.2	)							(769.2	)
Dividend to non-controlling interests in subsidiaries																							(7.5	)			(7.5	)
Balance at September 30, 2023			926.4				1,095.9				(41.6	)			586.9				2,567.6				3.8				2,571.4
For the three months period ended September 30, 2023
Balance at July 1, 2023			926.3				1,109.1				(40.6	)			2,858.3				4,853.1				2.0				4,855.1
Loss for the period															(2,272.6	)			(2,272.6	)			2.1				(2,270.5	)
Other comprehensive income for the period, net of tax							(17.4	)			(1.0	)			1.2				(17.2	)			(0.3	)			(17.5	)
Share-based compensation							4.3												4.3								4.3
Exercise of options			0.1				(0.1	)
Balance at September 30, 2023			926.4				1,095.9				(41.6	)			586.9				2,567.6				3.8				2,571.4
For the year ended December 31, 2023
Balance at January 1, 2023			925.9				1,097.3				(35.5	)			3,901.9				5,889.6				6.3				5,895.9
Loss for the year															(2,695.6	)			(2,695.6	)			7.7				(2,687.9	)
Other comprehensive income for the year, net of tax							19.5				(7.3	)			0.1				12.3				(1.8	)			10.5
Share-based compensation							17.6												17.6								17.6
Exercise of options			0.7				(0.7	)
Dividend to owners of the Company															(769.2	)			(769.2	)							(769.2	)
Dividend to non-controlling interests in subsidiaries																							(8.9	)			(8.9	)
Balance at December 31, 2023			926.6				1,133.7				(42.8	)			437.2				2,454.7				3.3				2,458.0

		Nine months ended								Three months ended								Year ended
		September 30								September 30								December 31
		2024				2023				2024				2023				2023
		US $ in millions
Cash flows from operating activities
Profit (loss) for the period			1,591.1				(2,541.3	)			1,126.2				(2,270.5	)			(2,687.9	)
Adjustments for:
Depreciation and amortization			833.6				1,232.5				295.0				423.8				1,471.8
Impairment loss							2,063.4								2,063.4				2,063.4
Net finance expenses			265.5				221.0				101.8				65.9				304.5
Share of losses and change in fair value of investees			4.8				4.5				0.8				2.3				6.5
Capital loss (gain), net			(31.7	)			3.2				(6.2	)			(4.2	)			(10.9	)
Income taxes			13.1				(137.1	)			6.8				(71.1	)			(127.6	)
Other non-cash items			11.9				14.2				8.9				4.5				18.9
			2,688.3				860.4				1,533.3				214.1				1,038.7
Change in inventories			(29.1	)			34.3				(20.7	)			17.7				11.4
Change in trade and other receivables			(481.3	)			237.5				(34.3	)			60.6				242.7
Change in trade and other payables including contract
liabilities			326.8				(76.7	)			(5.0	)			19.2				(95.1	)
Change in provisions and employee benefits			31.9				7.0				4.6				4.1				15.9
			(151.7	)			202.1				(55.4	)			101.6				174.9
Dividends received from associates			2.4				1.7				1.2				0.2				2.3
Interest received			64.6				113.0				24.8				25.0				133.8
Income taxes paid			(3.2	)			(319.4	)			(6.4	)			(3.3	)			(329.7	)
Net cash generated from operating activities			2,600.4				857.8				1,497.5				337.6				1,020.0
Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets,
and interest in investees			10.5				21.4				7.3				3.7				27.4
Acquisition and capitalized expenditures of tangible assets,
intangible assets and interest in investees			(141.1	)			(75.2	)			(50.3	)			(13.7	)			(115.7	)
Proceeds from sale (acquisition) of investment
instruments, net			240.8				(609.6	)			(74.3	)			(26.2	)			(138.2	)
Loans granted to investees			(5.2	)			(3.8	)			(2.4	)			(2.1	)			(5.4	)
Change in other receivables			23.3				(4.7	)			7.9				9.3				3.2
Change in other investments (mainly deposits), net			(34.4	)			2,002.6				(34.4	)			19.9				2,005.2
Net cash generated from (used in) investing activities			93.9				1,330.7				(146.2	)			(9.1	)			1,776.5

		Nine months ended								Three months ended								Year ended
		September 30								September 30								December 31
		2024				2023				2024				2023				2023
		US $ in millions
Cash flows from financing activities
Repayment of lease liabilities and borrowings			(1,591.2	)			(1,214.1	)			(474.2	)			(352.7	)			(1,713.1	)
Change in short term loans			10.3				(21.0	)			10.3								(21.0	)
Dividend paid to non-controlling interests			(4.2	)			(7.5	)			(0.5	)							(8.9	)
Dividend paid to owners of the Company			(139.6	)			(769.2	)			(111.9	)							(769.2	)
Interest paid			(342.2	)			(281.5	)			(120.6	)			(98.8	)			(380.7	)
Net cash used in financing activities			(2,066.9	)			(2,293.3	)			(696.9	)			(451.5	)			(2,892.9	)
Net change in cash and cash equivalents			627.4				(104.8	)			654.4				(123.0	)			(96.4	)
Cash and cash equivalents at beginning of the period			921.5				1,022.1				889.8				1,040.3				1,022.1
Effect of exchange rate fluctuation on cash held			(0.2	)			(5.2	)			4.5				(5.2	)			(4.2	)
Cash and cash equivalents at the end of the period			1,548.7				912.1				1,548.7				912.1				921.5

1

Reporting entity ZIM Integrated Shipping Services Ltd. (hereinafter - the "Company" or "ZIM") and its subsidiaries (hereinafter – "the Group" or "the Companies") and the Group’s interests in associates, operate in the field of cargo shipping and related services.   ZIM is a company incorporated in Israel, with limited liability. ZIM’s ordinary shares have been listed on the New York Stock Exchange (the “NYSE”) under the symbol “ZIM” on January 28, 2021. The address of the Company’s registered office is 9 Andrei Sakharov Street, Haifa, Israel.

2	Basis of compliance

(a)

Statement of compliance These condensed consolidated unaudited interim Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for annual Financial Statements and should be read in conjunction with the consolidated Financial Statements of the Company as at and for the year ended December 31, 2023 (hereafter – the “annual Financial Statements”). These condensed consolidated unaudited interim Financial Statements were approved by the Board of Directors on November 20, 2024.

(b)

Estimates The preparation of Financial Statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The significant judgments made by management in applying the Group’s accounting policies and the principal assumptions used in the estimation of uncertainties were the same as those applied in the annual Financial Statements.

3	Material accounting policies

(a)

The material accounting policies applied by the Group in these unaudited condensed consolidated interim Financial Statements are the same as those applied by the Group in its annual Financial Statements.

(b)

Accounting standards issued not yet adopted

    

(b)

Accounting standards issued not yet adopted (cont’d) In addition, entities will be required to include in their Financial Statements certain management-defined performance measures (often referred to as Non-GAAP measures). The standard is effective retrospectively for annual periods beginning on or after January 1, 2027, with early adoption permitted. The Group is currently assessing the expected effect of the new requirements. Amendments to IFRS 9 and IFRS 7 (Financial Instruments)   In May 2024, the IASB issued amendments to IFRS 9 (Financial instruments) and IFRS 7 (Financial instruments – Disclosures). The amendments provide clarifications for the timing of recognition and derecognition of financial assets and liabilities, as well as for the classification of financial assets with contingent features. The amendments also add certain disclosure requirements for certain financial assets. The amendments are effective for annual periods beginning on or after January 1, 2026, with early adoption permitted. The Group is currently assessing the expected effect of these amendments.

4	Financial position

(a)

The container shipping industry continues to be impacted by the supply and demand dynamics, as well as by uncertainties in the global trade, including the continuing disruption in the Red Sea, the implications of the ongoing armed conflicts between Russia and Ukraine and in the Middle-East, the inflation and elevated interest rates in certain countries, the trade limitations between the US and China and other geopolitical challenges. Those, among other things, contribute to the continuing volatility in freight rates, charter rates and bunker prices. In addition, regulators in certain jurisdictions have recently increased their regulatory oversight activities over our industry, by, among others, increased audit activities and introduction of new regulation relating to the contractual routines between carriers and their customers. As of today, the war situation in Israel, which started in October 2023, has had no material impact on the Company’s activities in Israel. However, those may be subject to temporary disruptions if this situation was to further escalate.   Since December 2023, many ocean carriers including the Company, paused their activities in the Red Sea, following attacks made against commercial vessels by armed organizations in Yemen. The Company continues to call ports in the Mediterranean Sea, as well as to operate services which previously crossed the Suez-canal, by re-routing its vessels around Africa. This disruption results in the extension of voyages duration, as well as leading to an increase in demand for vessel capacity, as additional vessels are operated in order to maintain the same frequency of services.   Further to the above, freight rates have increased towards the end of the fourth quarter of 2023 and continued to further increase during 2024, though demonstrated some decline during the third quarter, partially offsetting the earlier increases.

(b)

In September 2024, the Company entered into a long-term operational cooperation with Mediterranean Shipping Company (MSC), scheduled to be launched in February 2025, for a minimum period of three years, subject to the applicable regulatory filings and approvals. According to this cooperation, the Company and MSC will operate together six services on the Asia - US East Coast and Asia - US Gulf trades, enabling ZIM to provide its customers with extensive port coverage and further elevated service quality, while achieving significant operational efficiencies.  The Company’s operational cooperation with the 2M alliance (Maersk and MSC), originally launched in 2018, covering services on the Asia - US East Coast and Asia - US Gulf trades, is scheduled to end in January 2025, further to the announced termination of the 2M alliance.

(c)

Charter agreements: Further to the Company’s long-term agreements for the charter of 46 new-build vessels, including 28 liquefied natural gas (LNG) dual-fuel vessels, as of today, 42 of such vessels have been delivered to the Company. The remaining vessels related to these agreements are scheduled to be delivered to the Company during the remainder of 2024 and the first quarter of 2025 (see also Note 26 to the Company’s annual Financial Statements).   In February 2024, the Company paid a total amount of approximately US$ 130 million for the exercise of a purchase option in respect of five chartered vessels.

(d)

In the third quarter of 2024, the Company entered into a second long-term agreement with Shell NA LNG, LLC to secure the supply of marine liquefied natural gas (LNG) for its 8,000 TEU LNG-fueled vessels, for a period of up to ten years commencing 2025 and with an estimated aggregated consideration of approximately up to US$ 630 million.

(e)

Further to the volatile market terms mentioned above, which mostly affected the Company’s Container shipping services, the Company tested the carrying amount of its Container shipping services CGU for impairment loss (or recovery) as of September 30, 2024 and concluded that no material adjustment to the CGU’s assets carrying amount was required. Consistent with its previous analysis (as of September 30 2023, see also Note 7 to the Company’s 2023 annual Financial Statements), the Company estimated the recoverable amount of its CGU on the basis of value-in-use, using the discounted cash flow (DCF) method and applying similar estimation methods for updated assumptions, including in respect of freight rates, carried volume, charter hire rates and bunkering costs.   The Company’s projections were estimated for the period ended on June 30, 2029 and a representative terminal year intended to reflect a long-term steady state, considering a post-tax discount rate of 12.5% and a long-term nominal growth rate of 2.5%.

(f)

During the third quarter of 2024, the Company was approached by the Federal Maritime Commission (FMC), requesting the Company to provide certain information regarding its demurrage and detention practices vis-à-vis a number of its customers during the period of 2023 and through today. The Company is assessing this request for information, and at this preliminary stage is unable to assess its potential consequences, if any.

(g)

Dividends: In June and September 2024, further to the approval of the Company’s Board of Directors, the Company distributed dividends in amounts of US$ 28 million and US$ 112 million, reflecting US$ 0.23 and US$ 0.93 per ordinary share, respectively.   In November 2024, the Company’s Board of Directors approved a dividend distribution of approximately US$ 3.65 per ordinary share (or approximately US$ 440 million, considering the number of ordinary shares outstanding as of September 30, 2024). This dividend is comprised from a regular dividend amount in accordance with the Company’s dividend policy of approximately US$ 2.81 per ordinary share and an additional special dividend amount of US$ 0.84 per ordinary share. The dividend is scheduled to be paid on December 9, 2024, to all holders of ordinary shares on record as of December 2, 2024.

5	Capital and reserves

Fair Value	USD 4.94
Share price on grant date	USD 10.99
Exercise price	USD 12.48
Expected volatility	50.5%
Expected life	5 years
Expected dividends (*)	0%
Risk-free interest rate	4.1%

6	Right-of-use assets

7	Income from voyages and related services

8	Operating expenses and cost of services

9	Financial instruments

10	Earnings (loss) per share