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6-K 1 zk2329739.htm 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, 2023

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 22, 2023, ZIM Integrated Shipping Services Ltd. (the “Company”) issued a press release announcing its consolidated results for the three months ended on March 31, 2023. A copy of this press release and the Company’s condensed consolidated unaudited interim financial statements for the period ended on March 31, 2023 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 22, 2023

EXHIBIT INDEX

EXHIBIT NO.		DESCRIPTION
99.1		Press Release dated May 22, 2023
99.2		Condensed consolidated unaudited interim financial statements for the period ended on March 31, 2023

EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1

ZIM Reports Financial Results for the First Quarter of 2023

Reported Revenues of $1.4 Billion, Net Loss of $58 Million, Adjusted EBITDA1 of

$373 Million and Adjusted EBIT Loss1 of $14 Million

Reaffirms Full Year 2023 Guidance: Expects to Generate Adjusted EBITDA of
$1.8-$2.2 Billion and Adjusted EBIT of $100-$500 Million2

Haifa, Israel, May 22, 2023 – ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), a global container liner shipping company, announced today its consolidated results for the three months ended March 31, 2023.

First Quarter 2023 Highlights

•	Net loss for the first quarter was $58 million (compared to net income of $1,711 million in the first quarter of 2022), or a diluted loss per share of $0.503 (compared to diluted earnings per share of $14.19 in the first quarter of 2022)

•	Adjusted EBITDA for the first quarter was $373 million, a year-over-year decrease of 85%

•	Operating loss (EBIT) for the first quarter was $14 million, compared to operating income of $2,243 million in the first quarter of 2022. Reconciliation items between operating income and Adjusted EBIT in the first quarter were negligible.

•	Revenues for the first quarter were $1,374 million, a year-over-year decrease of 63%

•	Carried volume in the first quarter was 769 thousand TEUs, a year-over-year decrease of 10%

•	Average freight rate per TEU in the first quarter was $1,390, a year-over-year decrease of 64%

•	Net leverage ratio1 of 0.1x at March 31, 2023, compared to 0.0x as of December 31, 2022; net debt of $381 million, compared to net cash of $279 million as of December 31, 2022

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

2 The Company does not provide IFRS guidance because it is not readily available. See disclosure regarding “Use of Non-IFRS Measures in the Company’s 2023 Guidance.”

3 The number of shares used to calculate the diluted earnings per share is 120,169,288. The number of outstanding shares as of March 31, 2023, was 120,184,098.

Eli Glickman, ZIM President & CEO, stated, “Following a record year of Adjusted EBITDA and EBIT generation, ZIM’s first quarter results reflected the significant decline in freight rates and weak demand, particularly in the Transpacific trade, that began last year. While the near-term outlook for container shipping remains challenging, the proactive steps we took during the preceding highly lucrative market period better position us now to meet these challenges and we believe our differentiated strategy will ultimately deliver sustainable value for shareholders over the long term.”

Mr. Glickman added, “With a focus on enhancing our commercial and operational resilience, we adapted our vessel sourcing strategy to improve our cost structure with the addition of fuel-efficient newbuild tonnage that will overhaul our fleet profile, as well as advance our ESG goals. These include ten 15,000 TEU dual-fuel LNG vessels, which are ideally suited for our core Asia to US East Coast service, and 36 smaller, more versatile vessels, 18 of which are also dual-fuel LNG, that will enable ZIM to operate a fleet best suited for our trades and services. At the same time, our strong balance sheet and ample liquidity further make us confident that the Company will operate from a position of strength even amidst current market headwinds.”

Mr. Glickman concluded, “We continue to anticipate positive EBIT in 2023 despite macro and industry headwinds. Our expectation is for recovery in demand with inventory restocking to begin in the second half of this year, resulting in an improvement in freight rates. As such, for 2023, we have re-affirmed the guidance we shared earlier in the year of Adjusted EBITDA of between $1.8 billion and $2.2 billion and Adjusted EBIT of between $100 million and $500 million.”

Summary of Key Financial and Operational Results

		Q1.23			Q1.22
Carried volume (K-TEUs)		769			859
Average freight rate ($/TEU)		1,390			3,848
Total Revenues ($ in millions)		1,374			3,716
Operating income (loss) (EBIT) ($ in millions)		(14	)		2,243
Profit (loss) before income tax ($ in millions)		(65	)		2,219
Net income (loss) ($ in millions)		(58	)		1,711
Adjusted EBITDA1 ($ in millions)		373			2,533
Adjusted EBIT1 ($ in millions)		(14	)		2,243
Adjusted EBITDA margin		27	%		68	%
Adjusted EBIT margin		(1	)%		60	%
Diluted earnings (loss) per share ($)		(0.50	)		14.19
Net cash generated from operating activities ($ in millions)		174			1,660
Free cash flow1 ($ in millions)		142			1,483
	MAR.23			DEC.22
Net debt (Net cash)1 ($ in millions)		381			(279	)

- 2 -

Financial and Operating Results for the First Quarter Ended March 31, 2023

Total revenues were $1.37 billion for the first quarter of 2023, compared to $3.72 billion for the first quarter of 2022.

ZIM carried 769 thousand TEUs in the first quarter of 2023, compared to 859 thousand TEUs in the first quarter of 2022. The average freight rate per TEU was $1,390 for the first quarter of 2023, compared to $3,848 for the first quarter of 2022.

Operating loss (EBIT) for the first quarter of 2023 was $14 million, compared to operating income of $2,243 million for the first quarter of 2022, resulting mainly from the decrease in freight rates as well as carried volume.

Net loss for the first quarter of 2023 was $58 million, compared to net income of $1,711 million for the first quarter of 2022.

Adjusted EBITDA was $373 million for the first quarter of 2023, compared to $2,533 million for the first quarter of 2022. Adjusted EBIT loss was $14 million for the first quarter of 2023, compared to Adjusted EBIT of $2,243 million for the first quarter of 2022. Adjusted EBITDA and Adjusted EBIT margins for the first quarter of 2023 were 27% and -1%, respectively. This compares to 68% and 60% for the first quarter of 2022, respectively.

Net cash generated from operating activities was $174 million for the first quarter of 2023, compared to $1,660 million for the first quarter of 2022.

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 $353 million from $4.60 billion as of December 31, 2022 to $4.25 billion as of March 31, 2023.4 Capital expenditures totaled $36 million for the first quarter of 2023, compared to $183 million for the first quarter of 2022. Net debt position as of March 31, 2023, was $381 million compared to net cash position of $279 million as of December 31, 2022, a decrease of $660 million. ZIM’s net leverage ratio as of March 31, 2023, was 0.1x, compared to 0.0x as of December 31, 2022.

- 3 -

Use of Non-IFRS Measures in the Company’s 2023 Guidance

A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2023 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.

Full-Year 2023 Guidance

In 2023, the Company continues to expect generating Adjusted EBITDA of between $1.8 billion and $2.2 billion and Adjusted EBIT of between $100 to $500 million in light of its expectation for improvement in market conditions during the second half of 2023, despite macroeconomic and industry headwinds.

Dividend Policy and First Quarter 2023 Dividend

ZIM’s dividend policy remains unchanged, according to which the Company intends to distribute 30-50% of annual net income as a dividend to shareholders. Dividend payments will be made on a quarterly basis at a rate of approximately 30% of the net quarterly income of the first three fiscal quarters of the year (cumulatively), while the total annual dividend amount to be distributed by the Company (including any interim dividends paid during the first three fiscal quarters of the year) will total 30-50% of the annual net income. All future dividends are subject to the Company’s Board discretion and to the restrictions provided by Israeli law.

In accordance with its dividend policy and in light of the net loss recorded in the first quarter of 2023, the Company will not pay a dividend to shareholders on account of its first quarter results.

___________________

4 On April 4, 2023, the Company distributed a dividend to shareholders of $6.40 per share or a total of approximately $769 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 +1-855-243-7669 (toll free) or +1-561-771-1427; Israel +972-3-915-5970, UK/international +44-1-612-508-206. 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 34,000 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, the outcome of legal proceedings to which the Company is a party, global, regional and/or local political instability, 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 2022 Annual Report filed with the SEC on March 13, 2023.

- 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 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 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 EBITDA and Adjusted EBIT 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

- 6 -

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

	March 31				December 31
	2023		2022		2022
	(Unaudited)		(Unaudited)		(Audited)

Assets
Vessels		4,784.3		4,037.5		4,409.9
Containers and handling equipment		1,233.1		1,323.6		1,242.8
Other tangible assets		98.2		74.6		98.5
Intangible assets		95.1		77.5		92.9
Investments in associates		22.6		13.6		22.0
Other investments		1,344.7		306.2		1,373.2
Other receivables		113.9		107.9		112.1
Deferred tax assets		2.9		2.3		2.3
Total non-current assets		7,694.8		5,943.2		7,353.7

Inventories		189.1		173.8		190.7
Trade and other receivables		695.3		1,386.4		825.7
Other investments		1,060.2		2,092.4		2,233.1
Cash and cash equivalents		1,892.6		2,727.2		1,022.1
Total current assets		3,837.2		6,379.8		4,271.6
Total assets		11,532.0		12,323.0		11,625.3

Equity
Share capital and reserves		2,007.9		2,009.8		1,987.7
Retained earnings		3,073.8		2,246.1		3,901.9
Equity attributable to owners of the Company		5,081.7		4,255.9		5,889.6
Non-controlling interests		1.1		4.3		6.3
Total equity		5,082.8		4,260.2		5,895.9

Liabilities
Lease liabilities		2,993.6		2,784.2		2,778.7
Loans and other liabilities		87.6		171.3		91.9
Employee benefits		42.8		57.1		45.2
Deferred tax liabilities		145.4		122.6		151.4
Total non-current liabilities		3,269.4		3,135.2		3,067.2

Trade and other payables		1,359.8		2,946.2		896.2
Provisions		51.6		31.6		50.2
Contract liabilities		195.7		596.6		238.9
Lease liabilities		1,499.0		1,238.4		1,380.8
Loans and other liabilities		73.7		114.8		96.1
Total current liabilities		3,179.8		4,927.6		2,662.2
Total liabilities		6,449.2		8,062.8		5,729.4
Total equity and liabilities		11,532.0		12,323.0		11,625.3

- 7 -

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

	Three months ended March 31,						Year ended December 31,
	2023			2022			2022
	(Unaudited)			(Unaudited)			(Audited)

Income from voyages and related services		1,374.3			3,716.4			12,561.6
Cost of voyages and related services:
Operating expenses and cost of services		(939.7	)		(1,118.3	)		(4,764.5	)
Depreciation		(380.5	)		(284.4	)		(1,370.3	)
Gross profit		54.1			2,313.7			6,426.8

Other operating income		10.1			4.6			48.9
Other operating expenses		(3.6	)		(0.1	)		(0.9	)
General and administrative expenses		(74.1	)		(77.1	)		(338.3	)
Share of profit (loss) of associates		(0.4	)		1.4			(0.7	)

Results from operating activities		(13.9	)		2,242.5			6,135.8

Finance income		44.4			21.4			130.9
Finance expenses		(95.2	)		(45.3	)		(239.4	)

Net finance expenses		(50.8	)		(23.9	)		(108.5	)

Profit (loss) before income taxes		(64.7	)		2,218.6			6,027.3

Income taxes		6.6			(507.6	)		(1,398.3	)

Profit (loss) for the period		(58.1	)		1,711.0			4,629.0

Attributable to:

Owners of the Company		(59.5	)		1,708.8			4,619.4
Non-controlling interests		1.4			2.2			9.6
Profit (loss) for the period		(58.1	)		1,711.0			4,629.0

Earnings (loss) per share (US$)
Basic earnings (loss) per 1 ordinary share		(0.50	)		14.25			38.49
Diluted earnings (loss) per 1 ordinary share		(0.50	)		14.19			38.35

Weighted average number of shares for earnings (loss) per share calculation:
Basic		120,169,288			119,910,688			120,012,375
Diluted		120,169,288			120,438,898			120,444,889

- 8 -

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

	Three months ended March 31,						Year ended December 31,
	2023			2022			2022
	(Unaudited)			(Unaudited)			(Audited)

Cash flows from operating activities
Profit (loss) for the period		(58.1	)		1,711.0			4,629.0

Adjustments for:
Depreciation and amortization		387.2			290.2			1,396.3
Net finance expenses		50.8			23.9			108.5
Share of profits and change in fair value of investees		0.4			(1.5	)		(2.1	)
Capital gain, net		(9.8	)		(4.0	)		(42.7	)
Income taxes		(6.6	)		507.6			1,398.3
Other non-cash items		6.3			2.5			39.7
		370.2			2,529.7			7,527.0

Change in inventories		1.6			(54.8	)		(71.7	)
Change in trade and other receivables		143.2			(96.3	)		496.6
Change in trade and other payables including contracts liabilities		(91.7	)		36.0			(325.7	)
Change in provisions and employee benefits		1.4			(2.1	)		15.9
		54.5			(117.2	)		115.1

Dividends received		0.1						0.9
Interest received		49.5			3.2			53.2
Income taxes paid		(300.7	)		(755.7	)		(1,586.1	)
Net cash generated from operating activities		173.6			1,660.0			6,110.1

Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets, and interest in investees		12.2			5.3			48.1
Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees		(35.9	)		(182.5	)		(345.5	)
Acquisition of investment instruments, net		(161.1	)		(182.9	)		(1,433.1	)
Loans granted to investees		(1.7	)
Change in other receivables		(8.2	)		(0.3	)		(20.2	)
Change in other investments (mainly deposits), net		1,400.9			99.8			105.7
Net cash generated from (used in) investing activities		1,206.2			(260.6	)		(1,645.0	)

Cash flows from financing activities
Receipt of long-term loans and other long-term liabilities					59.2			59.2
Repayment of lease liabilities and borrowings		(395.0	)		(208.9	)		(1,449.4	)
Change in short term loans		(21.0	)		(20.0	)		(53.5	)
Dividend paid to non-controlling interests		(6.9	)		(4.5	)		(8.4	)
Dividend paid to owners of the Company								(3,303.3	)
Interest paid		(86.8	)		(40.5	)		(221.0	)
Net cash used in financing activities		(509.7	)		(214.7	)		(4,976.4	)

Net change in cash and cash equivalents		870.1			1,184.7			(511.3	)
Cash and cash equivalents at beginning of the period		1,022.1			1,543.3			1,543.3
Effect of exchange rate fluctuation on cash held		0.4			(0.8	)		(9.9	)
Cash and cash equivalents at the end of the period		1,892.6			2,727.2			1,022.1

- 9 -

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

	Three months ended March 31,
	2023			2022

Net income (loss)		(58	)		1,711
Financial expenses (income), net		51			24
Income taxes		(7	)		508
Operating income (loss) (EBIT)		(14	)		2,243
Non-cash charter hire expenses		0			0
Adjusted EBIT		(14	)		2,243
Adjusted EBIT margin		(1	)%		60	%

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

	Three months ended March 31,
	2023			2022

Net income (loss)		(58	)		1,711
Financial expenses (income), net		51			24
Income taxes		(7	)		508
Depreciation and amortization		387			290
EBITDA		373			2,533
Non-cash charter hire expenses		0			0
Adjusted EBITDA		373			2,533
Adjusted EBITDA margin		27	%		68	%

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

	Three months ended March 31,
	2023			2022

Net cash generated from operating activities		174			1,660
Capital expenditures, net		(32	)		(177	)
Free cash flow		142			1,483

- 10 -

EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2

Exhibit 99.2

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM

FINANCIAL STATEMENTS

MARCH 31, 2023

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
			2023		2022		2022
	Note		US $ in millions
Assets
Vessels		6		4,784.3		4,037.5		4,409.9
Containers and handling equipment		6		1,233.1		1,323.6		1,242.8
Other tangible assets		6		98.2		74.6		98.5
Intangible assets				95.1		77.5		92.9
Investments in associates				22.6		13.6		22.0
Other investments				1,344.7		306.2		1,373.2
Other receivables				113.9		107.9		112.1
Deferred tax assets				2.9		2.3		2.3
Total non-current assets				7,694.8		5,943.2		7,353.7

Inventories				189.1		173.8		190.7
Trade and other receivables				695.3		1,386.4		825.7
Other investments				1,060.2		2,092.4		2,233.1
Cash and cash equivalents				1,892.6		2,727.2		1,022.1
Total current assets				3,837.2		6,379.8		4,271.6
Total assets				11,532.0		12,323.0		11,625.3

Equity
Share Capital and reserves		5		2,007.9		2,009.8		1,987.7
Retained earnings				3,073.8		2,246.1		3,901.9
Equity attributable to owners of the Company				5,081.7		4,255.9		5,889.6
Non-controlling interests				1.1		4.3		6.3
Total equity				5,082.8		4,260.2		5,895.9

Liabilities
Lease liabilities				2,993.6		2,784.2		2,778.7
Loans and other liabilities				87.6		171.3		91.9
Employee benefits				42.8		57.1		45.2
Deferred tax liabilities				145.4		122.6		151.4
Total non-current liabilities				3,269.4		3,135.2		3,067.2

Trade and other payables		4(b)		1,359.8		2,946.2		896.2
Provisions				51.6		31.6		50.2
Contract liabilities				195.7		596.6		238.9
Lease liabilities				1,499.0		1,238.4		1,380.8
Loans and other liabilities				73.7		114.8		96.1
Total current liabilities				3,179.8		4,927.6		2,662.2
Total liabilities				6,449.2		8,062.8		5,729.4
Total equity and liabilities				11,532.0		12,323.0		11,625.3

/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 22, 2023.

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

			Three months ended March 31						Year ended December 31
			2023			2022			2022
	Note		US $ in millions

Income from voyages and related services				1,374.3			3,716.4			12,561.6
Cost of voyages and related services
Operating expenses and cost of services		8		(939.7	)		(1,118.3	)		(4,764.5	)
Depreciation				(380.5	)		(284.4	)		(1,370.3	)
Gross profit				54.1			2,313.7			6,426.8

Other operating income				10.1			4.6			48.9
Other operating expenses				(3.6	)		(0.1	)		(0.9	)
General and administrative expenses				(74.1	)		(77.1	)		(338.3	)
Share of profit (loss) of associates				(0.4	)		1.4			(0.7	)

Results from operating activities				(13.9	)		2,242.5			6,135.8

Finance income				44.4			21.4			130.9
Finance expenses				(95.2	)		(45.3	)		(239.4	)

Net finance expenses				(50.8	)		(23.9	)		(108.5	)

Profit (loss) before income taxes				(64.7	)		2,218.6			6,027.3

Income taxes				6.6			(507.6	)		(1,398.3	)

Profit (loss) for the period				(58.1	)		1,711.0			4,629.0

Attributable to:

Owners of the Company				(59.5	)		1,708.8			4,619.4
Non-controlling interests				1.4			2.2			9.6
Profit (loss) for the period				(58.1	)		1,711.0			4,629.0

Earnings (loss) per share (US$)
Basic earnings (loss) per 1 ordinary share		10		(0.50	)		14.25			38.49
Diluted earnings (loss) per 1 ordinary share		10		(0.50	)		14.19			38.35

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

	Three months ended March 31						Year ended December 31
	2023			2022			2022
	US $ in millions

Profit (loss) for the period		(58.1	)		1,711.0			4,629.0

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		0.9			(5.0	)		(18.0	)

Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax		8.0			(7.3	)		(34.6	)

Net change in fair value of investments in debt instruments at fair value through other comprehensive income, reclassified to profit and loss		3.2						2.6

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		1.4			0.2			(1.9	)

Defined benefit pension plans actuarial gains, net of tax		0.7			3.9			8.5

Other comprehensive income for the period, net of tax		14.2			(8.2	)		(43.4	)

Total comprehensive income for the period		(43.9	)		1,702.8			4,585.6

Attributable to:
Owners of the Company		(45.6	)		1,701.5			4,578.2
Non-controlling interests		1.7			1.3			7.4

Total comprehensive income for the period		(43.9	)		1,702.8			4,585.6

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
	Share capital		General reserves (*)			Translation reserve			Retained earnings			Total			Non-controlling interests			Total equity
	US $ in millions
For the three months period ended March 31, 2023
Balance at December 31, 2022		925.9		1,097.3			(35.5	)		3,901.9			5,889.6			6.3			5,895.9
Profit (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 three months period ended March 31, 2022
Balance at December 31, 2021		923.2		1,107.9			(19.7	)		2,580.6			4,592.0			7.5			4,599.5
Initial application of an amendment to IAS 37										(3.3	)		(3.3	)					(3.3	)
Balance at January 1, 2022		923.2		1,107.9			(19.7	)		2,577.3			4,588.7			7.5			4,596.2
Profit for the period										1,708.8			1,708.8			2.2			1,711.0
Other comprehensive income for the period, net of tax							(4.1	)		(3.2	)		(7.3	)		(0.9	)		(8.2	)
Share-based compensation				2.5									2.5						2.5
Exercise of options		1.1		(1.1	)
Dividend to owners of the Company										(2,036.8	)		(2,036.8	)					(2,036.8	)
Dividend to non-controlling interests in subsidiaries																(4.5	)		(4.5	)
Balance at March 31, 2022		924.3		1,109.3			(23.8	)		2,246.1			4,255.9			4.3			4,260.2

For the year ended December 31, 2022
Balance at December 31, 2021		923.2		1,107.9			(19.7	)		2,580.6			4,592.0			7.5			4,599.5
Initial application of an amendment to IAS 37										(3.3	)		(3.3	)					(3.3	)
Balance at January 1, 2022		923.2		1,107.9			(19.7	)		2,577.3			4,588.7			7.5			4,596.2
Profit for the year										4,619.4			4,619.4			9.6			4,629.0
Other comprehensive income for the year, net of tax				(33.9	)		(15.8	)		8.5			(41.2	)		(2.2	)		(43.4	)
Exercise of options		2.7		(2.7	)
Share-based compensation				25.8									25.8						25.8
Dividend to owners of the Company										(3,303.3	)		(3,303.3	)					(3,303.3	)
Acquisition of subsidiary with non-controlling interest				0.2									0.2			(0.2	)
Dividend to non-controlling interests in subsidiaries																(8.4	)		(8.4	)
Balance at December 31, 2022		925.9		1,097.3			(35.5	)		3,901.9			5,889.6			6.3			5,895.9

(*) Include reserves related to transactions with an interested party, share-based compensation and changes in fair value of investment instruments.

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

	Three months ended						Year ended
	March 31						December 31
	2023			2022			2022
	US $ in millions

Cash flows from operating activities
Profit (loss) for the period		(58.1	)		1,711.0			4,629.0

Adjustments for:
Depreciation and amortization		387.2			290.2			1,396.3
Net finance expenses		50.8			23.9			108.5
Share of profits and change in fair value of investees		0.4			(1.5	)		(2.1	)
Capital gain, net		(9.8	)		(4.0	)		(42.7	)
Income taxes		(6.6	)		507.6			1,398.3
Other non-cash items		6.3			2.5			39.7

		370.2			2,529.7			7,527.0

Change in inventories		1.6			(54.8	)		(71.7	)
Change in trade and other receivables		143.2			(96.3	)		496.6
Change in trade and other payables including contract liabilities		(91.7	)		36.0			(325.7	)
Change in provisions and employee benefits		1.4			(2.1	)		15.9

		54.5			(117.2	)		115.1

Dividends received		0.1						0.9
Interest received		49.5			3.2			53.2
Income taxes paid		(300.7	)		(755.7	)		(1,586.1	)

Net cash generated from operating activities		173.6			1,660.0			6,110.1

Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets, and interest in investees		12.2			5.3			48.1
Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees		(35.9	)		(182.5	)		(345.5	)
Acquisition of investment instruments, net		(161.1	)		(182.9	)		(1,433.1	)
Loans granted to investees		(1.7	)
Change in other receivables		(8.2	)		(0.3	)		(20.2	)
Change in other investments (mainly deposits), net		1,400.9			99.8			105.7
Net cash generated from (used in) investing activities		1,206.2			(260.6	)		(1,645.0	)

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

	Three months ended						Year ended
	March 31						December 31
	2023			2022			2022
	US $ in millions

Cash flows from financing activities
Receipt of long-term loans and other long-term liabilities					59.2			59.2
Repayment of lease liabilities and borrowings		(395.0	)		(208.9	)		(1,449.4	)
Change in short term loans		(21.0	)		(20.0	)		(53.5	)
Dividend paid to non-controlling interests		(6.9	)		(4.5	)		(8.4	)
Dividend paid to owners of the Company								(3,303.3	)
Interest paid		(86.8	)		(40.5	)		(221.0	)
Net cash used in financing activities		(509.7	)		(214.7	)		(4,976.4	)

Net change in cash and cash equivalents		870.1			1,184.7			(511.3	)
Cash and cash equivalents at beginning of the period		1,022.1			1,543.3			1,543.3
Effect of exchange rate fluctuation on cash held		0.4			(0.8	)		(9.9	)
Cash and cash equivalents at the end of the period		1,892.6			2,727.2			1,022.1

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

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 container 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, 2022 (hereafter – the “annual Financial Statements”). These condensed consolidated unaudited interim Financial Statements were approved by the Board of Directors on May 22, 2023.

(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 uncertainty were the same as those applied to the annual financial statements.

3	Significant accounting policies

The 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.

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

4	Financial position

(a)

The container shipping industry continues to be characterized by volatility in freight rates, charter rates and bunker prices, accompanied by continuing uncertainties in the global trade (including the rise of inflation and interest rates in certain countries, the implications of the ongoing military conflict between Russia and Ukraine and other geopolitical challenges). In addition, commencing 2022, regulators in certain jurisdictions (mainly in the U.S) have become more active in their regulatory oversight over our industry, through change in regulations and interpretation of related rules.

Following the peak levels reached during 2021 and the first quarter of 2022, freight rates have decreased in most trades throughout the remainder of the year 2022 and continued to further decrease during the first quarter of 2023.

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.

At each reporting date, the Company reviews the carrying amount of its operating assets and assesses them for impairment when indications exist. As of March 31, 2023, the Company tested for impairment its cash-generating-unit, which consist all of its operating assets, using similar estimation methods and assumptions to those applied as of December 31, 2022 (see also Note 6 to the Company’s 2022 annual financial statements). The test resulted with no impairment to be recognized.

(b)

In April 2023, further to the approval by the Company’s Board of Directors in March 2023, the Company distributed a dividend in an amount of US$ 769 million, reflecting US$ 6.40 per ordinary share. As of March 31, 2023, the dividend amount is presented under Trade and other payables.

(c)

Charter agreements:

Further to the Company’s long-term agreement with Seaspan for the chartering of ten 15,000 TEU new-build liquefied natural gas (LNG) dual-fuel vessels, the first and second vessels were delivered during February and April 2023.

Additional vessels related to this agreement, as well as to other chartering agreements the Company entered into during 2021 and 2022, are scheduled to be delivered to the Company during 2023 and 2024 (see also Notes 1(b) and 26 to the Company’s 2022 annual financial statements).

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

5	Capital and reserves

Share-Based Payment Arrangements

During the three months period ended March 31, 2023, 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, 2023, 2022 and the year ended December 31, 2022, the Company recorded expenses related to share-based compensation arrangements of US$ 6.9 million, US$ 2.5 million and US$ 25.8 million, respectively.

6	Right-of-use assets

	Balance at March 31				Balance at December 31
	2023		2022		2022
	US $ in millions

Vessels		4,382.9		3,630.3		3,967.3
Containers and handling equipment		362.7		439.0		380.0
Other tangible assets		57.4		53.4		58.0
		4,803.0		4,122.7		4,405.3

7	Segment information

ZIM is managed as one operating unit, generating revenues from operating a global liner service network of cargo shipping and related services, in which lines share the use of its resources and their performance are co-dependent. Accordingly, the chief operating decision maker manages and allocates resources to the entire liner network. As there is no appropriate allocation for the Group’s results, assets and liabilities, these are all attributed to the Group’s sole operating segment.

Freight revenues are disaggregated geographically by trade zone, as follows:

	Three months ended March 31				Year ended December 31
	2023		2022		2022
	US $ in millions
Freight Revenues from containerized cargo:
Pacific		428.6		1,725.4		5,504.2
Cross-Suez		170.8		472.7		1,528.5
Atlantic		216.6		329.8		1,231.3
Intra-Asia		161.1		597.0		1,945.9
Latin America		91.9		179.7		742.3
		1,069.0		3,304.6		10,952.2
Other Revenues (*)		305.3		411.8		1,609.4
		1,374.3		3,716.4		12,561.6

(*) Mainly related to non-containerized cargo, demurrage and value-added services.

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

8	Operating expenses and cost of services

	Three months ended March 31				Year ended December 31
	2023		2022		2022
	US $ in millions
Wages, maintenance and other vessel-operating costs		8.4		6.8		34.5
Expenses relating to fleet equipment (mainly containers and chassis)		7.9		7.3		29.1
Bunker and lubricants		272.4		261.8		1,434.8
Insurance		4.6		2.1		15.2
Expenses related to cargo handling		419.1		484.4		1,981.6
Port expenses		99.7		70.6		359.0
Agents’ salaries and commissions		50.7		60.5		261.1
Cost of related services and sundry		57.1		64.7		216.1
Slot purchases and hire of vessels		13.1		150.9		398.8
Hire of containers		6.7		9.2		34.3
		939.7		1,118.3		4,764.5

9	Financial instruments

Financial instruments measured at fair value

	March 31,
	2023
	Investments in sovereign bonds at fair value through other comprehensive income		Investments in corporate bonds at fair value through other comprehensive income		Investments in equity instruments at fair value through other comprehensive income		Investments in equity instruments at fair value through profit and loss		Investments in money market instruments at fair value through profit and loss		Derivative instrument
	US $ in millions

Level 1 financial instruments carried at fair value
Cash and cash equivalents										538.0
Other investments:
Current		359.8		80.7		2.6
Non-current		706.3		618.8		3.2
		1,066.1		699.5		5.8				538.0

Level 3 financial instruments carried at fair value
Non-current other investments								11.2
Non-current loans and other liabilities												(13.0	)
		1,066.1		699.5		5.8		11.2		538.0		(13.0	)

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

9	Financial instruments (cont’d)

	March 31,
	2022
	Investments in sovereign bonds at fair value through other comprehensive income		Investments in corporate bonds at fair value through other comprehensive income		Investments in equity instruments at fair value through other comprehensive income
	US $ in millions

Level 1 financial instruments carried at fair value
Other investments:
Current		40.5		25.6		2.2
Non-Current		57.0		236.3		6.8
		97.5		261.9		9.0

	December 31,
	2022
	Investments in sovereign bonds at fair value through other comprehensive income		Investments in corporate bonds at fair value through other comprehensive income		Investments in equity instruments at fair value through other comprehensive income		Investments in equity instruments at fair value through profit and loss		Derivative instrument
	US $ in millions

Level 1 financial instruments carried at fair value
Other investments:
Current		153.7		59.0		2.3
Non-current		739.8		578.7		39.9
		893.5		637.7		42.2

Level 3 financial instruments carried at fair value
Non-current other investments								11.2
Non-current loans and other liabilities										(13.7	)
		893.5		637.7		42.2		11.2		(13.7	)

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

10	Earnings (loss) per share

Basic and diluted earnings (loss) per share

	Three months ended March 31					Year ended December 31
	2023			2022		2022
	US $ in millions
Profit (loss) attributable to ordinary shareholders used to calculate basic and diluted earnings per share (US $ in millions)		(59.5	)		1,708.8		4,619.4

Number of shares at the beginning of the period used to calculate basic earnings (loss) per share		120,149,921			119,910,688		119,910,688
Effect of share options		19,367					101,687

Weighted average number of ordinary shares used to calculate basic earnings (loss) per share		120,169,288			119,910,688		120,012,375

Effect of share options					528,210		432,514

Weighted average number of ordinary shares used to calculate diluted earnings (loss) per share		120,169,288			120,438,898		120,444,889

In the three months period ended March 31, 2023, options for 2,411,114 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.