6-K

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 May, 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

+972 (4) 865-2000

(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 May 21, 2024, ZIM Integrated Shipping Services Ltd. (the “Company”) issued a press release announcing its consolidated results for the three months ended on March 31, 2024. A copy of this press release and the Company’s condensed consolidated unaudited interim financial statements for the period ended on March 31, 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: May 21, 2024

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Press Release dated May 21, 2024
99.2	Condensed consolidated unaudited interim financial statements for the period ended on March 31, 2024

EX-99.1

Exhibit 99.1

ZIM Reports Financial Results for the First Quarter of 2024;

Raising Full Year 2024 Guidance

Reported Revenues of $1.56 Billion, Net Income of $92 Million, Adjusted EBITDA¹ of

$427 Million and Adjusted EBIT of $167 Million

Increased Full Year 2024 Guidance to Adjusted EBITDA of $1,150 Million
to $1,550 Million and Adjusted EBIT of $0 to $400 Million²

Declared Dividend of $28 million or $0.23 per Share

Haifa, Israel, May 21, 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 months ended March 31, 2024.

First Quarter 2024 Highlights

• Net income for the first quarter was $92 million (compared to a net loss of $58 million in the first quarter of 2023), or a diluted earnings per share of $0.75³ (compared to diluted loss per share of $0.50 in the first quarter of 2023).

• Adjusted EBITDA¹ for the first quarter was $427 million, a year-over-year increase of 14%.

• Operating income (EBIT) for the first quarter was $167 million, compared to operating loss of $14 million in the first quarter of 2023. Reconciliation items between operating income and Adjusted EBIT in the first quarter of each year were negligible.

• Revenues for the first quarter were $1.56 billion, a year-over-year increase of 14%.

• Carried volume in the first quarter was 846 thousand TEUs, a year-over-year increase of 10%.

• Average freight rate per TEU in the first quarter was $1,452, a year-over-year increase of 4%.

• Net debt¹ of $3.11 billion as of March 31, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio¹ of 2.8x at March 31, 2024, compared to 2.2x as of December 31, 2023.

¹ See disclosure regarding “Use of Non-IFRS Financial Measures.”

² 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.”

³ The number of shares used to calculate the diluted earnings per share is 120,450,586. The number of outstanding shares as of March 31, 2024 was 120,320,804.

Eli Glickman, ZIM President & CEO, stated, “We are pleased with the current positive momentum in our business. ZIM’s solid first quarter results illustrate the incremental benefits from our strategic transformation and the outstanding execution of the ZIM team worldwide, as well as a significant improvement in global freight rates. Having taken important steps to revamp our fleet and enhance our cost structure, which exceeded our expectations, we delivered profitable growth in Q1 2024, as ZIM generated net income of $92 million. Per our dividend policy, we declared a dividend of $0.23 per share, or $28 million, representing 30% of quarterly net income.”

Mr. Glickman added, “Given the recent improved freight rate environment currently impacting more trades, we have increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between $1.15 billion and $1.55 billion and Adjusted EBIT between zero and $400 million. Looking ahead, we now expect freight rates to remain stronger for longer than initially anticipated due to a combination of continued pressure on supply and availability of equipment and a recent uptick in demand. While the rate environment during the latter part of 2024 remains unknown, we are confident in ZIM’s strategic positioning as an agile container shipping player with a competitive cost- and fuel-efficient, modern fleet.”

Mr. Glickman concluded, “We look forward to further implementing our differentiated strategy to create a best-in-class experience for customers and generate sustainable value for shareholders. By year’s end, we expect the delivery of the final 16 out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. With a fleet optimally suited to the trades in which we operate, together with declining unit costs, we are well positioned to achieve our volume growth targets and deliver on our commitment to profitability over the long term.”

Summary of Key Financial and Operational Results

	Q1.24		Q1.23
Carried volume (K-TEUs)	846		769
Average freight rate ($/TEU)	1,452		1,390
Total Revenues ($ in millions)	1,562		1,374
Operating income (loss) (EBIT) ($ in millions)	167		(14	)
Profit (loss) before income tax ($ in millions)	96		(65	)
Net income (loss) ($ in millions)	92		(58	)
Adjusted EBITDA1 ($ in millions)	427		373
Adjusted EBIT1 ($ in millions)	167		(14	)
Net income (loss) margin (%)	6	%	(4	)%
Adjusted EBITDA margin (%)	27	%	27	%
Adjusted EBIT margin (%)	11	%	(1	)%
Diluted earnings (loss) per share ($)	0.75		(0.50	)
Net cash generated from operating activities ($ in millions)	326		174
Free cash flow1 ($ in millions)	303		142
	MAR 31, 2024		DEC 31, 2023
Net debt1 ($ in millions)	3,110		2,309

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Financial and Operating Results for the First Quarter Ended March 31, 2024

Total revenues were $1,562 million for the first quarter of 2024, compared to $1,374 million for the first quarter of 2023, mainly driven by the increase in freight rates and carried volume.

ZIM carried 846 thousand TEUs in the first quarter of 2024, compared to 769 thousand TEUs in the first quarter of 2023. The average freight rate per TEU was $1,452 for the first quarter of 2024, compared to $1,390 for the first quarter of 2023.

Operating income (EBIT) for the first quarter of 2024 was $167 million, compared to operating loss of $14 million for the first quarter of 2023. The increase was driven primarily by the above-mentioned increase in revenues.

Net income for the first quarter of 2024 was $92 million, compared to net loss of $58 million for the first quarter of 2023, also mainly driven by the above-mentioned increase in revenues.

Adjusted EBITDA for the first quarter of 2024 was $427 million, compared to $373 million for the first quarter of 2023. Adjusted EBIT was $167 million for the first quarter of 2024, compared to adjusted EBIT loss of $14 million for the first quarter of 2023. Adjusted EBITDA and Adjusted EBIT margins for the first quarter of 2024 were 27% and 11%, respectively. This compares to 27% and -1% for the first quarter of 2023, respectively.

Net cash generated from operating activities was $326 million for the first quarter of 2024, compared to $174 million for the first quarter of 2023.

- 3 -

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) decreased by $442 million from $2.69 billion as of December 31, 2023 to $2.25 billion as of March 31, 2024. Capital expenditures totaled $24 million for the first quarter of 2024, compared to $36 million for the first quarter of 2023. Net debt position as of March 31, 2024 was $3.11 billion compared to net debt position as of December 31, 2023 of $2.31 billion, an increase of $801 million. ZIM's net leverage ratio as of March 31, 2024, was 2.8x, compared to 2.2x as of December 31, 2023.

First Quarter 2024 Dividend and Dividend Policy

In accordance with the Company's dividend policy, the Company’s Board of Directors declared a cash dividend of approximately $28 million, or $0.23 per ordinary share, reflecting approximately 30% of first quarter 2024 net income. The dividend will be paid on June 11, 2024 to holders of ZIM ordinary shares as of June 4, 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 $1.15 billion and $1.55 billion and Adjusted EBIT between zero and $400 million. Previously, the Company expected to generate Adjusted EBITDA between $850 million and $1,450 million and Adjusted EBIT between a loss of $300 million and earnings of $300 million.

- 4 -

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: 2459470 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, 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 and 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” inits 2023 Annual Report filed with the SEC on March 13, 2024. 

- 5 -

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.

- 6 -

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.
+972-4-865-2300
holzman.elana@zim.com

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

Media:

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

- 7 -

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

	March 31				December 31
	2024		2023		2023
Assets
Vessels		4,488.7		4,784.3		3,758.9
Containers and handling equipment		822.9		1,233.1		792.9
Other tangible assets		87.7		98.2		85.2
Intangible assets		104.8		95.1		102.0
Investments in associates		30.3		22.6		26.4
Other investments		814.0		1,344.7		908.7
Other receivables		82.7		113.9		97.9
Deferred tax assets		2.5		2.9		2.6
Total non-current assets		6,433.6		7,694.8		5,774.6
Inventories		197.3		189.1		179.3
Trade and other receivables		868.0		695.3		596.5
Other investments		744.8		1,060.2		874.1
Cash and cash equivalents		687.9		1,892.6		921.5
Total current assets		2,498.0		3,837.2		2,571.4
Total assets		8,931.6		11,532.0		8,346.0
Equity
Share capital and reserves		2,013.9		2,007.9		2,017.5
Retained earnings		527.4		3,073.8		437.2
Equity attributable to owners of the Company		2,541.3		5,081.7		2,454.7
Non-controlling interests		4.1		1.1		3.3
Total equity		2,545.4		5,082.8		2,458.0
Liabilities
Lease liabilities		3,716.8		2,993.6		3,244.1
Loans and other liabilities		66.6		87.6		73.6
Employee benefits		45.4		42.8		46.1
Deferred tax liabilities		5.8		145.4		6.1
Total non-current liabilities		3,834.6		3,269.4		3,369.9
Trade and other payables		612.2		1,359.8		566.4
Provisions		63.6		51.6		60.7
Contract liabilities		292.9		195.7		198.1
Lease liabilities		1,534.7		1,499.0		1,644.7
Loans and other liabilities		48.2		73.7		48.2
Total current liabilities		2,551.6		3,179.8		2,518.1
Total liabilities		6,386.2		6,449.2		5,888.0
Total equity and liabilities		8,931.6		11,532.0		8,346.0

- 8 -

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

	Three months ended						Year ended
	March 31						December 31
	2024			2023			2023
Income from voyages and related services		1,562.0			1,374.3			5,162.2
Cost of voyages and related services
Operating expenses and cost of services		(1,080.8	)		(939.7	)		(3,885.1	)
Depreciation		(257.7	)		(380.5	)		(1,449.8	)
Impairment of assets								(2,034.9	)
Gross profit (loss)		223.5			54.1			(2,207.6	)
Other operating income		6.0			10.1			14.4
Other operating expenses					(3.6	)		(29.3	)
General and administrative expenses		(60.8	)		(74.1	)		(280.7	)
Share in loss of associates		(2.1	)		(0.4	)		(7.8	)
Results from operating activities		166.6			(13.9	)		(2,511.0	)
Finance income		38.7			44.4			142.2
Finance expenses		(109.0	)		(95.2	)		(446.7	)
Net finance expenses		(70.3	)		(50.8	)		(304.5	)
Profit (loss) before income taxes		96.3			(64.7	)		(2,815.5	)
Income taxes		(4.2	)		6.6			127.6
Profit (loss) for the period		92.1			(58.1	)		(2,687.9	)
Attributable to:
Owners of the Company		90.3			(59.5	)		(2,695.6	)
Non-controlling interests		1.8			1.4			7.7
Profit (loss) for the period		92.1			(58.1	)		(2,687.9	)
Earnings (loss) per share (US$)
Basic earnings (loss) per 1 ordinary share		0.75			(0.50	)		(22.42	)
Diluted earnings (loss) per 1 ordinary share		0.75			(0.50	)		(22.42	)
Weighted average number of shares for earnings (loss) per share calculation:
Basic		120,307,283			120,169,288			120,213,031
Diluted		120,450,586			120,169,288			120,213,031

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

	Three months ended						Year ended
	March 31						December 31
	2024			2023			2023
Cash flows from operating activities
Profit (loss) for the period		92.1			(58.1	)		(2,687.9	)
Adjustments for:
Depreciation and amortization		260.6			387.2			1,471.8
Impairment loss								2,063.4
Net finance expenses		70.3			50.8			304.5
Share of losses and change in fair value of investees		2.1			0.4			6.5
Capital gain, net		(6.0	)		(9.8	)		(10.9	)
Income taxes		4.2			(6.6	)		(127.6	)
Other non-cash items		1.5			6.3			18.9
		424.8			370.2			1,038.7
Change in inventories		(18.0	)		1.6			11.4
Change in trade and other receivables		(236.2	)		143.2			242.7
Change in trade and other payables, including contract liabilities		133.3			(91.7	)		(95.1	)
Change in provisions and employee benefits		3.2			1.4			15.9
		(117.7	)		54.5			174.9
Dividends received from associates		1.2			0.1			2.3
Interest received		22.0			49.5			133.8
Income taxes paid		(4.2	)		(300.7	)		(329.7	)
Net cash generated from operating activities		326.1			173.6			1,020.0
Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets, and interest in investees		1.5			12.2			27.4
Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees		(24.4	)		(35.9	)		(115.7	)
Proceeds from sale (acquisition) of investment instruments, net		199.0			(161.1	)		(138.2	)
Loans granted to investees		(1.2	)		(1.7	)		(5.4	)
Change in other receivables		7.7			(8.2	)		3.2
Change in other investments (mainly deposits), net		1.1			1,400.9			2,005.2
Net cash generated from investing activities		183.7			1,206.2			1,776.5
Cash flows from financing activities
Repayment of lease liabilities and borrowings		(636.7	)		(395.0	)		(1,713.1	)
Change in short term loans					(21.0	)		(21.0	)
Dividend paid to non-controlling interests		(0.4	)		(6.9	)		(8.9	)
Dividend paid to owners of the Company								(769.2	)
Interest paid		(103.7	)		(86.8	)		(380.7	)
Net cash used in financing activities		(740.8	)		(509.7	)		(2,892.9	)
Net change in cash and cash equivalents		(231.0	)		870.1			(96.4	)
Cash and cash equivalents at beginning of the period		921.5			1,022.1			1,022.1
Effect of exchange rate fluctuation on cash held		(2.6	)		0.4			(4.2	)
Cash and cash equivalents at the end of the period		687.9			1,892.6			921.5

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

	Three months ended March 31
	2024			2023
Net income (loss)		92			(58	)
Financial expenses, net		70			51
Income taxes		4			(7	)
Operating income (loss) (EBIT)		167			(14	)
Adjusted EBIT		167			(14	)
Adjusted EBIT margin		11	%		(1	)%

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

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

	Three months ended March 31
	2024			2023
Net income (loss)		92			(58	)
Financial expenses, net		70			51
Income taxes		4			(7	)
Depreciation and amortization		261			387
EBITDA		427			373
Adjusted EBITDA		427			373
Net income (loss) margin		6	%		(4	)%
Adjusted EBITDA margin		27	%		27	%

* 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)

	Three months ended March 31
	2024			2023
Net cash generated from operating activities		326			174
Capital expenditures, net		(23	)		(32	)
Free cash flow		303			142

- 11 -

EX-99.2

Exhibit 99.2

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM

FINANCIAL STATEMENTS

MARCH 31, 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	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
Condensed consolidated unaudited interim Statements of Cash Flows	7-8
Notes to the condensed consolidated unaudited interim Financial Statements	9-14

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF FINANCIAL POSITION

		March 31				December 31
		2024		2023		2023
	Note	US $ in millions
Assets
Vessels	6		4,488.7		4,784.3		3,758.9
Containers and handling equipment	6		822.9		1,233.1		792.9
Other tangible assets	6		87.7		98.2		85.2
Intangible assets			104.8		95.1		102.0
Investments in associates			30.3		22.6		26.4
Other investments			814.0		1,344.7		908.7
Other receivables			82.7		113.9		97.9
Deferred tax assets			2.5		2.9		2.6
Total non-current assets			6,433.6		7,694.8		5,774.6
Inventories			197.3		189.1		179.3
Trade and other receivables			868.0		695.3		596.5
Other investments			744.8		1,060.2		874.1
Cash and cash equivalents			687.9		1,892.6		921.5
Total current assets			2,498.0		3,837.2		2,571.4
Total assets			8,931.6		11,532.0		8,346.0
Equity
Share capital and reserves	5		2,013.9		2,007.9		2,017.5
Retained earnings			527.4		3,073.8		437.2
Equity attributable to owners of the Company			2,541.3		5,081.7		2,454.7
Non-controlling interests			4.1		1.1		3.3
Total equity			2,545.4		5,082.8		2,458.0
Liabilities
Lease liabilities			3,716.8		2,993.6		3,244.1
Loans and other liabilities			66.6		87.6		73.6
Employee benefits			45.4		42.8		46.1
Deferred tax liabilities			5.8		145.4		6.1
Total non-current liabilities			3,834.6		3,269.4		3,369.9
Trade and other payables			612.2		1,359.8		566.4
Provisions			63.6		51.6		60.7
Contract liabilities			292.9		195.7		198.1
Lease liabilities			1,534.7		1,499.0		1,644.7
Loans and other liabilities			48.2		73.7		48.2
Total current liabilities			2,551.6		3,179.8		2,518.1
Total liabilities			6,386.2		6,449.2		5,888.0
Total equity and liabilities			8,931.6		11,532.0		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

Date of approval of the Financial Statements: May 21, 2024.
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

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ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM INCOME STATEMENTS

		Three months ended March 31						Year ended December 31
		2024			2023			2023
	Note	US $ in millions
Income from voyages and related services			1,562.0			1,374.3			5,162.2
Cost of voyages and related services
Operating expenses and cost of services	8		(1,080.8	)		(939.7	)		(3,885.1	)
Depreciation			(257.7	)		(380.5	)		(1,449.8	)
Impairment of assets									(2,034.9	)
Gross profit (loss)			223.5			54.1			(2,207.6	)
Other operating income			6.0			10.1			14.4
Other operating expenses						(3.6	)		(29.3	)
General and administrative expenses			(60.8	)		(74.1	)		(280.7	)
Share in loss of associates			(2.1	)		(0.4	)		(7.8	)
Results from operating activities			166.6			(13.9	)		(2,511.0	)
Finance income			38.7			44.4			142.2
Finance expenses			(109.0	)		(95.2	)		(446.7	)
Net finance expenses			(70.3	)		(50.8	)		(304.5	)
Profit (loss) before income taxes			96.3			(64.7	)		(2,815.5	)
Income taxes			(4.2	)		6.6			127.6
Profit (loss) for the period			92.1			(58.1	)		(2,687.9	)
Attributable to:
Owners of the Company			90.3			(59.5	)		(2,695.6	)
Non-controlling interests			1.8			1.4			7.7
Profit (loss) for the period			92.1			(58.1	)		(2,687.9	)
Earnings (loss) per share (US$)
Basic earnings (loss) per 1 ordinary share	10		0.75			(0.50	)		(22.42	)
Diluted earnings (loss) per 1 ordinary share	10		0.75			(0.50	)		(22.42	)

The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

4

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended March 31						Year ended December 31
	2024			2023			2023
	US $ in millions
Profit (loss) for the period		92.1			(58.1	)		(2,687.9	)
Other components of comprehensive income
Items of other comprehensive income that were or will be reclassified to profit and loss
Foreign currency translation differences for foreign operations		(2.7	)		0.9			(9.1	)
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax		(4.7	)		8.0			4.4
Reclassification of investments in debt instruments at fair value through other comprehensive income to profit and loss		0.4			3.2			13.6
Items of other comprehensive income that would never be reclassified to profit and loss
Net change in fair value of investments in equity instruments at fair value through other comprehensive income, net of tax		(0.2	)		1.4			1.5
Defined benefit pension plans actuarial gains, net of tax		(0.2	)		0.7			0.1
Other comprehensive income for the period, net of tax		(7.4	)		14.2			10.5
Total comprehensive income for the period		84.7			(43.9	)		(2,677.4	)
Attributable to:
Owners of the Company		83.5			(45.6	)		(2,683.3	)
Non-controlling interests		1.2			1.7			5.9
Total comprehensive income for the period		84.7			(43.9	)		(2,677.4	)

The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

5

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 three month period ended March 31, 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										90.3			90.3			1.8			92.1
Other comprehensive income for the period, net of tax				(4.7	)		(2.0	)		(0.1	)		(6.8	)		(0.6	)		(7.4	)
Share-based compensation				3.1									3.1						3.1
Exercise of options		0.2		(0.2	)
Dividend to non-controlling interests in subsidiaries																(0.4	)		(0.4	)
Balance at March 31, 2024		926.8		1,131.9			(44.8	)		527.4			2,541.3			4.1			2,545.4
For the three month period ended March 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 period										(59.5	)		(59.5	)		1.4			(58.1	)
Other comprehensive income for the period, net of tax				12.6			0.7			0.6			13.9			0.3			14.2
Share-based compensation				6.9									6.9						6.9
Exercise of options		0.2		(0.2	)
Dividend to owners of the Company										(769.2	)		(769.2	)					(769.2	)
Dividend to non-controlling interests in subsidiaries																(6.9	)		(6.9	)
Balance at March 31, 2023		926.1		1,116.6			(34.8	)		3,073.8			5,081.7			1.1			5,082.8
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
Exercise of options		0.7		(0.7	)
Share-based compensation				17.6									17.6						17.6
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

(*) 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.

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ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CASH FLOWS

	Three months ended						Year ended
	March 31						December 31
	2024			2023			2023
	US $ in millions
Cash flows from operating activities
Profit (loss) for the period		92.1			(58.1	)		(2,687.9	)
Adjustments for:
Depreciation and amortization		260.6			387.2			1,471.8
Impairment loss								2,063.4
Net finance expenses		70.3			50.8			304.5
Share of losses and change in fair value of investees		2.1			0.4			6.5
Capital gain, net		(6.0	)		(9.8	)		(10.9	)
Income taxes		4.2			(6.6	)		(127.6	)
Other non-cash items		1.5			6.3			18.9
		424.8			370.2			1,038.7
Change in inventories		(18.0	)		1.6			11.4
Change in trade and other receivables		(236.2	)		143.2			242.7
Change in trade and other payables, including contract liabilities		133.3			(91.7	)		(95.1	)
Change in provisions and employee benefits		3.2			1.4			15.9
		(117.7	)		54.5			174.9
Dividends received from associates		1.2			0.1			2.3
Interest received		22.0			49.5			133.8
Income taxes paid		(4.2	)		(300.7	)		(329.7	)
Net cash generated from operating activities		326.1			173.6			1,020.0
Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets, and interest in investees		1.5			12.2			27.4
Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees		(24.4	)		(35.9	)		(115.7	)
Proceeds from sale (acquisition) of investment instruments, net		199.0			(161.1	)		(138.2	)
Loans granted to investees		(1.2	)		(1.7	)		(5.4	)
Change in other receivables		7.7			(8.2	)		3.2
Change in other investments (mainly deposits), net		1.1			1,400.9			2,005.2
Net cash generated from investing activities		183.7			1,206.2			1,776.5

The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

7

 

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CASH FLOWS

		Three months ended						Year ended
		March 31						December 31
		2024			2023			2023
		US $ in millions
Cash flows from financing activities
Repayment of lease liabilities and borrowings	4(b)		(636.7	)		(395.0	)		(1,713.1	)
Change in short term loans						(21.0	)		(21.0	)
Dividend paid to non-controlling interests			(0.4	)		(6.9	)		(8.9	)
Dividend paid to owners of the Company									(769.2	)
Interest paid			(103.7	)		(86.8	)		(380.7	)
Net cash used in financing activities			(740.8	)		(509.7	)		(2,892.9	)
Net change in cash and cash equivalents			(231.0	)		870.1			(96.4	)
Cash and cash equivalents at beginning of the period			921.5			1,022.1			1,022.1
Effect of exchange rate fluctuation on cash held			(2.6	)		0.4			(4.2	)
Cash and cash equivalents at the end of the period			687.9			1,892.6			921.5

The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

8

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

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 full 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 May 21, 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
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 expenses 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.

9

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

3 Material accounting policies (cont’d)
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 in a preliminary stage of assessing the expected effect of the new requirements.

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 implications of the ongoing military conflict between Russia and Ukraine, the disruptions in the Red Sea, 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.
As of today, the war situation in Israel, which started in October 2023, has had no material impact on the Company’s head-office activities. However, those may be subject to temporary disruptions if this situation was to further escalate.   In December 2023, many ocean carriers including the Company, announced that they will pause 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, following the decrease in freight rates observed during 2022 and 2023, certain trades have experienced freight rates increases towards the end of the fourth quarter of 2023 and during the first quarter of 2024.   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) Charter agreements:

Further to the Company’s long-term agreements for the charter of new-build vessels, including 28 liquefied natural gas (LNG) dual-fuel vessels, as of today, 30 of such vessels have been delivered to the Company. Additional vessels related to these agreements are scheduled to be delivered to the Company in the course of 2024 (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.

(c) In May 2024, in accordance with the Company’s dividend policy, the Company’s Board of Directors approved a dividend distribution of approximately US$ 0.23 per ordinary share (or approximately US$ 28 million, considering the number of ordinary shares outstanding as of March 31, 2024). The dividend is scheduled to be paid on June 11, 2024, to all holders of ordinary shares on record as of June 4, 2024.

10

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

5 Capital and reserves
Share-based payment arrangements   During the reported period, the Board of Directors approved grants of share options to officers and employees, as detailed below:

Grant date	Number of instruments	Instrument terms	Vesting terms	Contractual life
March 2024	43,160	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	50.5%
Expected life	5 years
Expected dividends (*)	0%
Risk-free interest rate	4.1%

(*) Options’ exercise price is adjusted in respect of dividend distributions.

During the three months period ended March 31, 2024, a total of 34,177 shares were issued, upon the cashless exercise of options, previously granted in respect of share-based payment arrangements.

During the three months period ended March 31, 2024, 2023 and the year ended December 31, 2023, the Company recorded expenses related to share-based compensation arrangements of US$ 3.1 million, US$ 6.9 million and US$ 17.6 million respectively.

6 Right-of-use assets

	Balance at March 31				Balance at December 31
	2024		2023		2023
	US $ in millions
Vessels		3,992.3		4,382.9		3,613.3
Containers and handling equipment		312.1		362.7		283.5
Other tangible assets		47.6		57.4		49.2
		4,352.0		4,803.0		3,946.0

11

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

7 Income from voyages and related services
Revenues generated throughout the Group’s global network, are disaggregated as follows:

	Three months ended March 31				Year ended December 31
	2024		2023		2023
	US $ in millions
Freight Revenues from containerized cargo:
Pacific		609.3		428.6		1,779.1
Cross-Suez		185.0		170.8		491.3
Atlantic		164.7		216.6		636.3
Intra-Asia		122.9		161.1		616.6
Latin America		147.3		91.9		425.0
		1,229.2		1,069.0		3,948.3
Freight revenues from non-containerized cargo (mostly related to vehicle shipping services)		111.2		105.7		534.5
Other Revenues (*)		221.6		199.6		679.4
		1,562.0		1,374.3		5,162.2

(*) Mainly demurrage, related services and other value-added services.

8 Operating expenses and cost of services

	Three months ended March 31				Year ended December 31
	2024		2023		2023
	US $ in millions
Wages, maintenance and other vessel-operating costs		8.2		8.4		31.8
Expenses relating to fleet equipment (mainly containers and chassis)		9.5		7.9		31.5
Bunker and lubricants		307.3		272.4		1,098.8
Insurance		7.7		4.6		21.5
Expenses related to cargo handling		457.8		419.1		1,671.4
Port expenses		112.8		99.7		500.7
Agents’ salaries and commissions		49.9		50.7		209.5
Cost of related services and sundry		90.4		57.1		216.9
Slot purchases and hire of vessels		29.0		13.1		79.4
Hire of containers		8.2		6.7		23.6
		1,080.8		939.7		3,885.1

12

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

9 Financial instruments
Financial instruments measured at fair value

	Balance at March 31,
	2024								2023
	US $ in millions
	Level 1		Level 3			Total			Level 1		Level 3			Total
Fair value through profit and loss
Cash and cash equivalents:
Money markets instruments		300.9					300.9			538.0					538.0
Other investments:
Equity instruments				10.8			10.8					11.2			11.2
Loans and other liabilities:
Derivative instruments				(9.8	)		(9.8	)				(13.0	)		(13.0	)
Fair value through other comprehensive income
Other investments:
Sovereign bonds		672.1					672.1			1,066.1					1,066.1
Corporate bonds		857.9					857.9			699.5					699.5
Equity instruments		1.7					1.7			5.8					5.8

	Balance at December 31,
	2023
	US $ in millions
	Level 1		Level 3			Total
Fair value through profit and loss
Cash and cash equivalents:
Money markets instruments		435.9					435.9
Other investments:
Equity instruments				10.7			10.7
Loans and other liabilities:
Derivative instruments				(11.5	)		(11.5	)
Fair value through other comprehensive income
Other investments:
Sovereign bonds		857.7					857.7
Corporate bonds		894.8					894.8
Equity instruments		1.9					1.9

13

 

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

9 Financial instruments (cont’d)
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.

10 Earnings (loss) per share
Basic and diluted earnings (loss) per share

	Three months ended March 31					Year ended December 31
	2024		2023			2023
	US $ in millions
Profit (loss) attributable to ordinary shareholders used to calculate basic and diluted earnings (loss) per share (US $ in millions)		90.3		(59.5	)		(2,695.6	)
Number of shares at the beginning of the period used to calculate basic earnings (loss) per share		120,286,627		120,149,921			120,149,921
Effect of share options		20,656		19,367			63,110
Weighted average number of ordinary shares used to calculate basic earnings (loss) per share		120,307,283		120,169,288			120,213,031
Effect of share options		143,303
Weighted average number of ordinary shares used to calculate diluted earnings (loss) per share		120,450,586		120,169,288			120,213,031

In the three-month period ended March 31, 2024, options for 2,074,479 ordinary shares, granted to officers, directors and employees (see also above) were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.

14