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  Title	Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]
  ID	4290809
  External ID	7317561928
  Author	Unknown
  Published Date	Nov. 20, 2024, 6:40 a.m.
  Summary	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For
  Tags	press-release
  URL	https://mx.advfn.com/bolsa-de-valores/nyse/zim/noticias/94954569/form-6-k-report-of-foreign-issuer-rules-13a-16-and-15d-16
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  Content ID	2545730
  Key	e597dedd-09ea-48b6-8a82-2ef107a9ff65
  Content	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of November, 2024 Commission File Number: 001-39937 ZIM Integrated Shipping Services Ltd. Exact Name of Registrant as Specified in Its Charter 9 Andrei Sakharov Street P.O. Box 15067 Matam, Haifa 3190500, Israel (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☒ Form 40-F ☐ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes ☐ No ☒ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ☐ No ☒ On November 20, 2024, ZIM Integrated Shipping Services Ltd. (the “Company”) issued a press release announcing its consolidated results for the three months and nine months ended on September 30, 2024. A copy of this press release and the Company's condensed consolidated unaudited interim financial statements for the period ended on September 30, 2024 are attached herewith as Exhibit 99.1 and Exhibit 99.2, respectively. The information in this Form 6-K (including Exhibit 99.1 and Exhibit 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ZIM INTEGRATED SHIPPING SERVICES LTD. By: /s/ Noam Nativ Noam Nativ EVP General Counsel and Corporate Secretary Date: November 20, 2024 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION Press Release dated November 20, 2024 Condensed consolidated unaudited interim financial statements for the period ended on September 30, 2024 Exhibit 99.1 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 EBITDA of $1.53 Billion and Adjusted EBIT of $1.24 Billion ; 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 Billion 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 • Net income for the third quarter was $1.13 billion (compared to a net loss of $2.27 billion in the third quarter of 2023 ), or diluted earnings per share of $9.34 (compared to diluted loss per share of $18.90 in the third quarter of 2023). See disclosure regarding “Use of Non-IFRS Financial Measures.” Operating income (EBIT) for the third quarter was $1.23 billion. A reconciliation to Adjusted EBIT is provided in the tables below. The Company does not provide IFRS guidance because it cannot be determined without unreasonable effort. See disclosure regarding “Use of Non-IFRS Measures in the Company's 2024 Guidance.” Net loss for the third quarter of 2023 was primarily driven by a non-cash impairment loss of $2.06 billion. The number of shares used to calculate the diluted earnings per share is 120,475,290. The number of outstanding shares as of September 30, 2024 was 120,389,157. • Adjusted EBITDA for the third quarter was $1.53 billion, a year-over-year increase of 626%. • Operating income (EBIT) for the third quarter was $1.23 billion, compared to operating loss of $2.28 billion in the third quarter of 2023. • Adjusted EBIT for the third quarter was $1.24 billion, compared to Adjusted EBIT loss of $213 million in the third quarter of 2023. • Total revenues for the third quarter were $2.77 billion, a year-over-year increase of 117%. • Carried volume in the third quarter was 970 thousand TEUs, a year-over-year growth of 12%. • Average freight rate per TEU in the third quarter was $2,480, a year-over-year increase of 118%. • Net debt of $2.70 billion as of September 30, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio of 0.9x as of September 30, 2024, compared to 2.2x as of December 31, 2023. 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 $2.45 billion.” Mr. Glickman concluded, “We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.” Summary of Key Financial and Operational Results Q3-24 Q3-23 9M-24 9M-23 Carried volume (K-TEUs) Average freight rate ($/TEU) Total revenues ($ in millions) Operating income (loss) (EBIT) ($ in millions) Profit (loss) before income tax ($ in millions) Net income (loss) ($ in millions) Adjusted EBITDA ($ in millions) Adjusted EBIT ($ in millions) Net income (loss) margin (%) Adjusted EBITDA margin (%) Adjusted EBIT margin (%) Diluted earnings (loss) per share ($) Net cash generated from operating activities ($ in millions) Free cash flow ($ in millions) SEP-30-24 DEC-31-23 Net debt ($ in millions) 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. Investor Relations: Elana Holzman ZIM Integrated Shipping Services Ltd. holzman.elana@zim.com Leon Berman The IGB Group lberman@igbir.com Media: Avner Shats ZIM Integrated Shipping Services Ltd. media@zim.com CONSOLIDATED BALANCE SHEET (Unaudited) (U.S. dollars in millions) September 30 December 31 Assets Vessels Containers and handling equipment Other tangible assets Intangible assets Investments in associates Other investments Other receivables Deferred tax assets Total non-current assets Inventories Trade and other receivables Other investments Cash and cash equivalents Total current assets Total assets Equity Share capital and reserves Retained earnings Equity attributable to owners of the Company Non-controlling interests Total equity Liabilities Lease liabilities Loans and other liabilities Employee benefits Deferred tax liabilities Total non-current liabilities Trade and other payables Provisions Contract liabilities Lease liabilities Loans and other liabilities Total current liabilities Total liabilities Total equity and liabilities CONSOLIDATED INCOME STATEMENTS (Unaudited) (U.S. dollars in millions, except per share data) Nine months ended September 30 Three months ended September 30 Year ended December 31 Income from voyages and related services Cost of voyages and related services Operating expenses and cost of services Depreciation Impairment of assets Gross profit (loss) Other operating income Other operating expenses General and administrative expenses Share of loss of associates Results from operating activities Finance income Finance expenses Net finance expenses Profit (loss) before income taxes Income taxes Profit (loss) for the period Attributable to: Owners of the Company Non-controlling interests Profit (loss) for the period Earnings (loss) per share (US$) Basic earnings (loss) per 1 ordinary share Diluted earnings (loss) per 1 ordinary share Weighted average number of shares for earnings (loss) per share calculation: Basic Diluted CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (U.S. dollars in millions) Nine months ended September 30 Three months ended September 30 Year ended December 31 Cash flows from operating activities Profit (loss) for the period Adjustments for: Depreciation and amortization Impairment loss Net finance expenses Share of losses and change in fair value of investees Capital loss (gain), net Income taxes Other non-cash items Change in inventories Change in trade and other receivables Change in trade and other payables including contract liabilities Change in provisions and employee benefits Dividends received from associates Interest received Income taxes received (paid) Net cash generated from operating activities Cash flows from investing activities Proceeds from sale of tangible assets, intangible assets and interest in investees Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees Proceeds from sale (acquisition) of investment instruments, net Loans granted to investees Change in other receivables Change in other investments (mainly deposits), net Net cash generated from (used in) investing activities Cash flows from financing activities Repayment of lease liabilities and borrowings Change in short term loans Dividend paid to non-controlling interests Dividend paid to owners of the Company Interest paid Net cash used in financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of the period Effect of exchange rate fluctuation on cash held Cash and cash equivalents at the end of the period RECONCILIATION OF NET INCOME TO ADJUSTED EBIT* (U.S. dollars in millions) Nine months ended September 30 Three months ended September 30 Net income (loss) Financial expenses, net Income taxes Operating income (EBIT) Capital loss (gain), beyond the ordinary course of business Impairment of assets Expenses related to legal contingencies Adjusted EBIT Adjusted EBIT margin * The table above may contain slight summation differences due to rounding. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA* (U.S. dollars in millions) Nine months ended September 30 Three months ended September 30 Net income (loss) Financial expenses, net Income taxes Depreciation and amortization EBITDA Capital loss (gain), beyond the ordinary course of business Impairment of assets Expenses related to legal contingencies Adjusted EBITDA Net income (loss) margin Adjusted EBITDA margin * 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) Nine months ended September 30 Three months ended September 30 Net cash generated from operating activities Capital expenditures, net Free cash flow Exhibit 99.2 ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2024 ZIM INTEGRATED SHIPPING SERVICES LTD. INDEX TO CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Page FINANCIAL STATEMENTS: Condensed consolidated unaudited interim Statements of Financial Position Condensed consolidated unaudited interim Income Statements Condensed consolidated unaudited interim Statements of Comprehensive Income Condensed consolidated unaudited interim Statements of Changes in Equity Condensed consolidated unaudited interim Statements of Cash Flows Notes to the condensed consolidated unaudited interim Financial Statements ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF FINANCIAL POSITION September 30 December 31 Note US $ in millions Assets Vessels Containers and handling equipment Other tangible assets Intangible assets Investments in associates Other investments Other receivables Deferred tax assets Total non-current assets Inventories Trade and other receivables Other investments Cash and cash equivalents Total current assets Total assets Equity Share capital and reserves Retained earnings Equity attributable to owners of the Company Non-controlling interests Total equity Liabilities Lease liabilities Loans and other liabilities Employee benefits Deferred tax liabilities Total non-current liabilities Trade and other payables Provisions Contract liabilities Lease liabilities Loans and other liabilities Total current liabilities Total liabilities Total equity and liabilities /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 Date of approval of the Financial Statements: November 20, 2024. The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM INCOME STATEMENTS Nine months ended September 30 Three months ended September 30 Year ended December 31 Note US $ in millions Income from voyages and related services Cost of voyages and related services Operating expenses and cost of services Depreciation Impairment of assets Gross profit (loss) Other operating income Other operating expenses General and administrative expenses Share of loss of associates Results from operating activities Finance income Finance expenses Net finance expenses Profit (loss) before income taxes Income taxes Profit (loss) for the period Attributable to: Owners of the Company Non-controlling interests Profit (loss) for the period Earnings (loss) per share (US$) Basic earnings (loss) per 1 ordinary share Diluted earnings (loss) per 1 ordinary share The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF COMPREHENSIVE INCOME Nine months ended September 30 Three months ended September 30 Year ended December 31 US $ in millions Profit (loss) for the period 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 Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax Reclassification of investments in debt instruments at fair value through other comprehensive income to profit or loss 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 Defined benefit pension plans actuarial gains (losses), net of tax Other comprehensive income for the period, net of tax Total comprehensive income for the period Attributable to: Owners of the Company Non-controlling interests Total comprehensive income for the period The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY 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 Profit for the period Other comprehensive income for the period, net of tax Share-based compensation Exercise of options Dividend to owners of the Company Dividend to non-controlling interests in subsidiaries Balance at September 30, 2024 For the three months period ended September 30, 2024 Balance at July 1, 2024 Profit for the period Other comprehensive income for the period, net of tax Share-based compensation Exercise of options Dividend to owners of the Company Dividend to non-controlling interests in subsidiaries Balance at September 30, 2024 (*) Include reserves related to share-based compensation, changes in fair value of investment instruments and transactions with an interested party. The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY 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 Loss for the period Other comprehensive income for the period, net of tax Share-based compensation Exercise of options Dividend to owners of the Company Dividend to non-controlling interests in subsidiaries Balance at September 30, 2023 For the three months period ended September 30, 2023 Balance at July 1, 2023 Loss for the period Other comprehensive income for the period, net of tax Share-based compensation Exercise of options Balance at September 30, 2023 For the year ended December 31, 2023 Balance at January 1, 2023 Loss for the year Other comprehensive income for the year, net of tax Share-based compensation Exercise of options Dividend to owners of the Company Dividend to non-controlling interests in subsidiaries Balance at December 31, 2023 (*) Include reserves related to share-based compensation, changes in fair value of investment instruments and transactions with an interested party. The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CASH FLOWS Nine months ended Three months ended Year ended September 30 September 30 December 31 US $ in millions Cash flows from operating activities Profit (loss) for the period Adjustments for: Depreciation and amortization Impairment loss Net finance expenses Share of losses and change in fair value of investees Capital loss (gain), net Income taxes Other non-cash items Change in inventories Change in trade and other receivables Change in trade and other payables including contract liabilities Change in provisions and employee benefits Dividends received from associates Interest received Income taxes paid Net cash generated from operating activities Cash flows from investing activities Proceeds from sale of tangible assets, intangible assets, and interest in investees Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees Proceeds from sale (acquisition) of investment instruments, net Loans granted to investees Change in other receivables Change in other investments (mainly deposits), net Net cash generated from (used in) investing activities The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CASH FLOWS Nine months ended Three months ended Year ended September 30 September 30 December 31 US $ in millions Cash flows from financing activities Repayment of lease liabilities and borrowings Change in short term loans Dividend paid to non-controlling interests Dividend paid to owners of the Company Interest paid Net cash used in financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of the period Effect of exchange rate fluctuation on cash held Cash and cash equivalents at the end of the period The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS 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. 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. 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 IFRS 18, Presentation and disclosure in financial statements In April 2024, the IASB issued IFRS 18 which will replace IAS 1, Presentation of financial statements. The new standard introduces new presentation and disclosure requirements, including a more structured presentation of the income statement, in which all income and expense items will be allocated to new distinct activity categories of operating, investing, financing, income taxes and discontinued operations, based on the main business activities as specified by each entity. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Material accounting policies (cont'd) (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. 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. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Financial position (cont'd) In view of the aforementioned business environment and in order to constantly improve the Group's results of operations and liquidity position, Management continues to optimize its network by considering, and when appropriate, implementing structural changes, participating in partnerships and cooperation agreements and by upgrading its customer's offerings, whilst seeking operational excellence and cost efficiencies. (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%. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Financial position (cont'd) (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. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Capital and reserves Share-Based Payment Arrangements During the reported period, the Board of Directors approved grants under the Company's share option plans for employees, officers and directors, as detailed below: Grant date Number of instruments Instrument terms Vesting terms Contractual life March 2024 Each option is exercisable into one ordinary share on a cash-less basis. These options shall vest upon the first, second, third and fourth anniversary, in four equal instalments of 25% each. 5 years Information on fair value measurement The weighted average fair value of the options granted, measured using the Black & Scholes model and the related measurement inputs used, were as below: Fair Value USD 4.94 Share price on grant date USD 10.99 Exercise price USD 12.48 Expected volatility Expected life 5 years Expected dividends (*) Risk-free interest rate (*) Options' exercise price is adjusted in respect of dividend distributions. During the nine and three months period ended September 30, 2024, a total of 102,529 and 34,176 ordinary shares were issued, respectively, upon the cashless exercise of options, previously granted in respect of share-based payment arrangements. During the three months period ended September 30, 2024 and 2023, the Company recorded expenses related to share-based compensation arrangements of US$ 2.0 million and US$ 4.3 million, respectively. During the nine months period ended September 30, 2024 and 2023 and the year ended December 31, 2023, the Company recorded expenses related to share-based compensation arrangements of US$ 7.8 million, US$ 15.4 million and US$ 17.6 million, respectively. In November 2024, the Company's Board of Directors approved the grant of 34,827 share options under the Company's share option plans for employees, officers and directors. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Right-of-use assets Balance at September 30 Balance at December 31 US $ in millions Vessels Containers and handling equipment Other tangible assets Income from voyages and related services Nine months ended September 30 Three months ended September 30 Year ended December 31 US $ in millions Freight revenues from containerized cargo: Pacific Cross-Suez Atlantic Intra-Asia Latin America Freight revenues from non-containerized cargo (mostly related to vehicle shipping services) Other revenues (*) (*) Mainly demurrage, related services and other value-added services. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Operating expenses and cost of services Nine months ended September 30 Three months ended September 30 Year ended December 31 US $ in millions Wages, maintenance and other vessel-operating costs Expenses relating to fleet equipment (mainly containers and chassis) Bunker and lubricants Insurance Expenses related to cargo handling Port expenses Agents' salaries and commissions Cost of related services and sundry Slot purchases and hire of vessels Hire of containers Financial instruments Financial instruments measured at fair value Balance at September 30, US $ in millions Level 1 Level 3 Total Level 1 Level 3 Total Fair value through profit and loss Cash and cash equivalents: Money market instruments Other investments: Equity instruments Loans and other liabilities: Derivative instruments Fair value through other comprehensive income Other investments: Sovereign bonds Corporate bonds Equity instruments ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Financial instruments (cont'd) Financial instruments measured at fair value (cont'd) Balance at December 31, US $ in millions Level 1 Level 3 Total Fair value through profit and loss Cash and cash equivalents: Money markets instruments Other investments: Equity instruments Loans and other liabilities: Derivative instruments Fair value through other comprehensive income Other investments: Sovereign bonds Corporate bonds Equity instruments Financial instruments not measured at fair value The carrying amounts of the Group's financial assets and liabilities, including cash and cash equivalents, trade and other receivables, other investments, trade and other payables and loans and other liabilities, reflect reasonable approximation of their fair value. ZIM INTEGRATED SHIPPING SERVICES LTD. NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS Earnings (loss) per share Basic and diluted earnings (loss) per share Nine months ended September 30 Three months ended September 30 Year ended December 31 US $ in millions Profit (loss) attributable to ordinary shareholders used to calculate basic and diluted earnings per share (US $ in millions) Number of shares at the beginning of the period used to calculate basic earnings (loss) per share Effect of share options Weighted average number of ordinary shares used to calculate basic earnings (loss) per share Effect of share options Weighted average number of ordinary shares used to calculate diluted earnings (loss) per share In the nine and three months period ended September 30, 2024, options for 1,935,009 and 1,905,009 ordinary shares, granted to officers, directors and employees were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive. ZIM Integrated Shipping ... (NYSE:ZIM) Gráfica de Acción Histórica De Oct 2024 a Nov 2024 ZIM Integrated Shipping ... (NYSE:ZIM) Gráfica de Acción Histórica De Nov 2023 a Nov 2024
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