ZIM Integrated Shipping Services 6K Current report | ZIM 20 Nov 24

Exhibit 99.2

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM

FINANCIAL STATEMENTS

SEPTEMBER 30, 2024

ZIM INTEGRATED SHIPPING SERVICES LTD.

INDEX TO CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

	Page
FINANCIAL STATEMENTS:

Condensed consolidated unaudited interim Statements of Financial Position	3

Condensed consolidated unaudited interim Income Statements	4

Condensed consolidated unaudited interim Statements of Comprehensive Income	5

Condensed consolidated unaudited interim Statements of Changes in Equity	6-7

Condensed consolidated unaudited interim Statements of Cash Flows	8-9

Notes to the condensed consolidated unaudited interim Financial Statements	10-18

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF FINANCIAL POSITION

		September 30				December 31
		2024		2023		2023
	Note	US $ in millions
Assets
Vessels	6		5,301.9		3,222.9		3,758.9
Containers and handling equipment	6		988.7		788.2		792.9
Other tangible assets	6		91.1		61.1		85.2
Intangible assets			107.6		93.3		102.0
Investments in associates			26.0		26.8		26.4
Other investments			844.6		1,252.6		908.7
Other receivables			69.9		105.5		97.9
Deferred tax assets			2.5		9.6		2.6
Total non-current assets			7,432.3		5,560.0		5,774.6

Inventories			208.4		156.4		179.3
Trade and other receivables			1,062.5		644.3		596.5
Other investments			766.6		918.6		874.1
Cash and cash equivalents			1,548.7		912.1		921.5
Total current assets			3,586.2		2,631.4		2,571.4
Total assets			11,018.5		8,191.4		8,346.0

Equity
Share capital and reserves	5		2,041.1		1,980.7		2,017.5
Retained earnings			1,884.8		586.9		437.2
Equity attributable to owners of the Company			3,925.9		2,567.6		2,454.7
Non-controlling interests			4.8		3.8		3.3
Total equity			3,930.7		2,571.4		2,458.0

Liabilities
Lease liabilities			4,284.7		2,952.0		3,244.1
Loans and other liabilities			67.4		79.3		73.6
Employee benefits			43.4		39.4		46.1
Deferred tax liabilities			5.2		13.0		6.1
Total non-current liabilities			4,400.7		3,083.7		3,369.9

Trade and other payables			668.3		554.6		566.4
Provisions			93.0		58.3		60.7
Contract liabilities			433.8		207.3		198.1
Lease liabilities			1,433.6		1,668.0		1,644.7
Loans and other liabilities			58.4		48.1		48.2
Total current liabilities			2,687.1		2,536.3		2,518.1
Total liabilities			7,087.8		5,620.0		5,888.0
Total equity and liabilities			11,018.5		8,191.4		8,346.0

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

Date of approval of the Financial Statements: November 20, 2024.
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM INCOME STATEMENTS

		Nine months ended September 30						Three months ended September 30						Year ended December 31
		2024			2023			2024			2023			2023
	Note	US $ in millions

Income from voyages and related services	7		6,259.8			3,956.9			2,765.2			1,273.0			5,162.2
Cost of voyages and related services
Operating expenses and cost of services	8		(3,381.9	)		(2,922.0	)		(1,167.8	)		(1,008.4	)		(3,885.1	)
Depreciation			(824.9	)		(1,212.8	)		(292.1	)		(417.4	)		(1,449.8	)
Impairment of assets						(2,034.9	)					(2,034.9	)		(2,034.9	)
Gross profit (loss)			2,053.0			(2,212.8	)		1,305.3			(2,187.7	)		(2,207.6	)

Other operating income			32.9			2.5			7.3			0.6			14.4
Other operating expenses			(1.7	)		(32.5	)		(1.1	)		(22.4	)		(29.3	)
General and administrative expenses			(209.7	)		(209.4	)		(75.9	)		(63.9	)		(280.7	)
Share of loss of associates			(4.8	)		(5.2	)		(0.8	)		(2.3	)		(7.8	)

Results from operating activities			1,869.7			(2,457.4	)		1,234.8			(2,275.7	)		(2,511.0	)

Finance income			81.0			117.7			19.8			35.6			142.2
Finance expenses			(346.5	)		(338.7	)		(121.6	)		(101.5	)		(446.7	)

Net finance expenses			(265.5	)		(221.0	)		(101.8	)		(65.9	)		(304.5	)

Profit (loss) before income taxes			1,604.2			(2,678.4	)		1,133.0			(2,341.6	)		(2,815.5	)

Income taxes			(13.1	)		137.1			(6.8	)		71.1			127.6

Profit (loss) for the period			1,591.1			(2,541.3	)		1,126.2			(2,270.5	)		(2,687.9	)

Attributable to:
Owners of the Company			1,586.2			(2,547.2	)		1,124.6			(2,272.6	)		(2,695.6	)
Non-controlling interests			4.9			5.9			1.6			2.1			7.7
Profit (loss) for the period			1,591.1			(2,541.3	)		1,126.2			(2,270.5	)		(2,687.9	)

Earnings (loss) per share (US$)
Basic earnings (loss) per 1 ordinary share	10		13.18			(21.19	)		9.34			(18.90	)		(22.42	)
Diluted earnings (loss) per 1 ordinary share	10		13.17			(21.19	)		9.34			(18.90	)		(22.42	)

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

	Nine months ended September 30						Three months ended September 30						Year ended December 31
	2024			2023			2024			2023			2023
	US $ in millions

Profit (loss) for the period		1,591.1			(2,541.3	)		1,126.2			(2,270.5	)		(2,687.9	)

Other components of comprehensive income

Items of other comprehensive income that were or will be reclassified to profit or loss
Foreign currency translation differences for foreign operations		0.2			(7.0	)		3.0			(1.3	)		(9.1	)

Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax		16.2			(25.6	)		20.9			(19.5	)		4.4

Reclassification of investments in debt instruments at fair value through other comprehensive income to profit or loss		0.5			7.9			(0.1	)		2.3			13.6

Items of other comprehensive income that would never be reclassified to profit or loss

Net change in fair value of investments in equity instruments at fair value through other comprehensive income, net of tax		(0.3	)		1.4			(0.1	)		(0.2	)		1.5

Defined benefit pension plans actuarial gains (losses), net of tax		1.0			1.4			(0.3	)		1.2			0.1

Other comprehensive income for the period, net of tax		17.6			(21.9	)		23.4			(17.5	)		10.5

Total comprehensive income for the period		1,608.7			(2,563.2	)		1,149.6			(2,288.0	)		(2,677.4	)

Attributable to:
Owners of the Company		1,603.0			(2,568.2	)		1,146.7			(2,289.8	)		(2,683.3	)
Non-controlling interests		5.7			5.0			2.9			1.8			5.9

Total comprehensive income for the period		1,608.7			(2,563.2	)		1,149.6			(2,288.0	)		(2,677.4	)

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 nine months period ended September 30, 2024
Balance at January 1, 2024		926.6		1,133.7			(42.8	)		437.2			2,454.7			3.3			2,458.0
Profit for the period										1,586.2			1,586.2			4.9			1,591.1
Other comprehensive income for the period, net of tax				16.4			(0.6	)		1.0			16.8			0.8			17.6
Share-based compensation				7.8									7.8						7.8
Exercise of options		0.5		(0.5	)
Dividend to owners of the Company										(139.6	)		(139.6	)					(139.6	)
Dividend to non-controlling interests in subsidiaries																(4.2	)		(4.2	)
Balance at September 30, 2024		927.1		1,157.4			(43.4	)		1,884.8			3,925.9			4.8			3,930.7

For the three months period ended September 30, 2024
Balance at July 1, 2024		927.0		1,134.8			(45.1	)		872.4			2,889.1			2.4			2,891.5
Profit for the period										1,124.6			1,124.6			1.6			1,126.2
Other comprehensive income for the period, net of tax				20.7			1.7			(0.3	)		22.1			1.3			23.4
Share-based compensation				2.0									2.0						2.0
Exercise of options		0.1		(0.1	)
Dividend to owners of the Company										(111.9	)		(111.9	)					(111.9	)
Dividend to non-controlling interests in subsidiaries																(0.5	)		(0.5	)
Balance at September 30, 2024		927.1		1,157.4			(43.4	)		1,884.8			3,925.9			4.8			3,930.7

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

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY

	Attribute to the owners of the Company
	Share capital		General reserves (*)			Translation reserve			Retained earnings			Total			Non-controlling interests			Total Equity
	Share capital		General reserves (*)			Translation reserve			Retained earnings			Total			Non-controlling interests			Total Equity
	US $ in millions
For the nine months period ended September 30, 2023
Balance at January 1, 2023		925.9		1,097.3			(35.5	)		3,901.9			5,889.6			6.3			5,895.9
Loss for the period										(2,547.2	)		(2,547.2	)		5.9			(2,541.3	)
Other comprehensive income for the period, net of tax				(16.3	)		(6.1	)		1.4			(21.0	)		(0.9	)		(21.9	)
Share-based compensation				15.4									15.4						15.4
Exercise of options		0.5		(0.5	)
Dividend to owners of the Company										(769.2	)		(769.2	)					(769.2	)
Dividend to non-controlling interests in subsidiaries																(7.5	)		(7.5	)
Balance at September 30, 2023		926.4		1,095.9			(41.6	)		586.9			2,567.6			3.8			2,571.4

For the three months period ended September 30, 2023
Balance at July 1, 2023		926.3		1,109.1			(40.6	)		2,858.3			4,853.1			2.0			4,855.1
Loss for the period										(2,272.6	)		(2,272.6	)		2.1			(2,270.5	)
Other comprehensive income for the period, net of tax				(17.4	)		(1.0	)		1.2			(17.2	)		(0.3	)		(17.5	)
Share-based compensation				4.3									4.3						4.3
Exercise of options		0.1		(0.1	)
Balance at September 30, 2023		926.4		1,095.9			(41.6	)		586.9			2,567.6			3.8			2,571.4

For the year ended December 31, 2023
Balance at January 1, 2023		925.9		1,097.3			(35.5	)		3,901.9			5,889.6			6.3			5,895.9
Loss for the year										(2,695.6	)		(2,695.6	)		7.7			(2,687.9	)
Other comprehensive income for the year, net of tax				19.5			(7.3	)		0.1			12.3			(1.8	)		10.5
Share-based compensation				17.6									17.6						17.6
Exercise of options		0.7		(0.7	)
Dividend to owners of the Company										(769.2	)		(769.2	)					(769.2	)
Dividend to non-controlling interests in subsidiaries																(8.9	)		(8.9	)
Balance at December 31, 2023		926.6		1,133.7			(42.8	)		437.2			2,454.7			3.3			2,458.0

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

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CASH FLOWS

	Nine months ended						Three months ended						Year ended
	September 30						September 30						December 31
	2024			2023			2024			2023			2023
	US $ in millions

Cash flows from operating activities
Profit (loss) for the period		1,591.1			(2,541.3	)		1,126.2			(2,270.5	)		(2,687.9	)

Adjustments for:
Depreciation and amortization		833.6			1,232.5			295.0			423.8			1,471.8
Impairment loss					2,063.4						2,063.4			2,063.4
Net finance expenses		265.5			221.0			101.8			65.9			304.5
Share of losses and change in fair value of investees		4.8			4.5			0.8			2.3			6.5
Capital loss (gain), net		(31.7	)		3.2			(6.2	)		(4.2	)		(10.9	)
Income taxes		13.1			(137.1	)		6.8			(71.1	)		(127.6	)
Other non-cash items		11.9			14.2			8.9			4.5			18.9
		2,688.3			860.4			1,533.3			214.1			1,038.7

Change in inventories		(29.1	)		34.3			(20.7	)		17.7			11.4
Change in trade and other receivables		(481.3	)		237.5			(34.3	)		60.6			242.7
Change in trade and other payables including contract
liabilities		326.8			(76.7	)		(5.0	)		19.2			(95.1	)
Change in provisions and employee benefits		31.9			7.0			4.6			4.1			15.9
		(151.7	)		202.1			(55.4	)		101.6			174.9

Dividends received from associates		2.4			1.7			1.2			0.2			2.3
Interest received		64.6			113.0			24.8			25.0			133.8
Income taxes paid		(3.2	)		(319.4	)		(6.4	)		(3.3	)		(329.7	)

Net cash generated from operating activities		2,600.4			857.8			1,497.5			337.6			1,020.0

Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets,
and interest in investees		10.5			21.4			7.3			3.7			27.4
Acquisition and capitalized expenditures of tangible assets,
intangible assets and interest in investees		(141.1	)		(75.2	)		(50.3	)		(13.7	)		(115.7	)
Proceeds from sale (acquisition) of investment
instruments, net		240.8			(609.6	)		(74.3	)		(26.2	)		(138.2	)
Loans granted to investees		(5.2	)		(3.8	)		(2.4	)		(2.1	)		(5.4	)
Change in other receivables		23.3			(4.7	)		7.9			9.3			3.2
Change in other investments (mainly deposits), net		(34.4	)		2,002.6			(34.4	)		19.9			2,005.2
Net cash generated from (used in) investing activities		93.9			1,330.7			(146.2	)		(9.1	)		1,776.5

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CASH FLOWS

	Nine months ended						Three months ended						Year ended
	September 30						September 30						December 31
	2024			2023			2024			2023			2023
	US $ in millions

Cash flows from financing activities
Repayment of lease liabilities and borrowings		(1,591.2	)		(1,214.1	)		(474.2	)		(352.7	)		(1,713.1	)
Change in short term loans		10.3			(21.0	)		10.3						(21.0	)
Dividend paid to non-controlling interests		(4.2	)		(7.5	)		(0.5	)					(8.9	)
Dividend paid to owners of the Company		(139.6	)		(769.2	)		(111.9	)					(769.2	)
Interest paid		(342.2	)		(281.5	)		(120.6	)		(98.8	)		(380.7	)
Net cash used in financing activities		(2,066.9	)		(2,293.3	)		(696.9	)		(451.5	)		(2,892.9	)

Net change in cash and cash equivalents		627.4			(104.8	)		654.4			(123.0	)		(96.4	)
Cash and cash equivalents at beginning of the period		921.5			1,022.1			889.8			1,040.3			1,022.1
Effect of exchange rate fluctuation on cash held		(0.2	)		(5.2	)		4.5			(5.2	)		(4.2	)
Cash and cash equivalents at the end of the period		1,548.7			912.1			1,548.7			912.1			921.5

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

Reporting entity

ZIM Integrated Shipping Services Ltd. (hereinafter - the "Company" or "ZIM") and its subsidiaries (hereinafter – "the Group" or "the Companies") and the Group’s interests in associates, operate in the field of cargo shipping and related services.

ZIM is a company incorporated in Israel, with limited liability. ZIM’s ordinary shares have been listed on the New York Stock Exchange (the “NYSE”) under the symbol “ZIM” on January 28, 2021. The address of the Company’s registered office is 9 Andrei Sakharov Street, Haifa, Israel.

2	Basis of compliance

(a)

Statement of compliance

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

(b)

Estimates

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

3	Material accounting policies

(a)

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

(b)

Accounting standards issued not yet adopted

IFRS 18, Presentation and disclosure in financial statements

In April 2024, the IASB issued IFRS 18 which will replace IAS 1, Presentation of financial statements. The new standard introduces new presentation and disclosure requirements, including a more structured presentation of the income statement, in which all income and expense items will be allocated to new distinct activity categories of operating, investing, financing, income taxes and discontinued operations, based on the main business activities as specified by each entity.

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

3	Material accounting policies (cont’d)

(b)

Accounting standards issued not yet adopted (cont’d)

In addition, entities will be required to include in their Financial Statements certain management-defined performance measures (often referred to as Non-GAAP measures). The standard is effective retrospectively for annual periods beginning on or after January 1, 2027, with early adoption permitted. The Group is currently assessing the expected effect of the new requirements.

Amendments to IFRS 9 and IFRS 7 (Financial Instruments)

In May 2024, the IASB issued amendments to IFRS 9 (Financial instruments) and IFRS 7 (Financial instruments – Disclosures). The amendments provide clarifications for the timing of recognition and derecognition of financial assets and liabilities, as well as for the classification of financial assets with contingent features. The amendments also add certain disclosure requirements for certain financial assets. The amendments are effective for annual periods beginning on or after January 1, 2026, with early adoption permitted. The Group is currently assessing the expected effect of these amendments.

4	Financial position

(a)

The container shipping industry continues to be impacted by the supply and demand dynamics, as well as by uncertainties in the global trade, including the continuing disruption in the Red Sea, the implications of the ongoing armed conflicts between Russia and Ukraine and in the Middle-East, the inflation and elevated interest rates in certain countries, the trade limitations between the US and China and other geopolitical challenges. Those, among other things, contribute to the continuing volatility in freight rates, charter rates and bunker prices. In addition, regulators in certain jurisdictions have recently increased their regulatory oversight activities over our industry, by, among others, increased audit activities and introduction of new regulation relating to the contractual routines between carriers and their customers.

As of today, the war situation in Israel, which started in October 2023, has had no material impact on the Company’s activities in Israel. However, those may be subject to temporary disruptions if this situation was to further escalate.

Since December 2023, many ocean carriers including the Company, paused their activities in the Red Sea, following attacks made against commercial vessels by armed organizations in Yemen. The Company continues to call ports in the Mediterranean Sea, as well as to operate services which previously crossed the Suez-canal, by re-routing its vessels around Africa. This disruption results in the extension of voyages duration, as well as leading to an increase in demand for vessel capacity, as additional vessels are operated in order to maintain the same frequency of services.

Further to the above, freight rates have increased towards the end of the fourth quarter of 2023 and continued to further increase during 2024, though demonstrated some decline during the third quarter, partially offsetting the earlier increases.

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

4	Financial position (cont’d)

In view of the aforementioned business environment and in order to constantly improve the Group’s results of operations and liquidity position, Management continues to optimize its network by considering, and when appropriate, implementing structural changes, participating in partnerships and cooperation agreements and by upgrading its customer’s offerings, whilst seeking operational excellence and cost efficiencies.

(b)

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

The Company’s operational cooperation with the 2M alliance (Maersk and MSC), originally launched in 2018, covering services on the Asia - US East Coast and Asia - US Gulf trades, is scheduled to end in January 2025, further to the announced termination of the 2M alliance.

(c)

Charter agreements:

Further to the Company’s long-term agreements for the charter of 46 new-build vessels, including 28 liquefied natural gas (LNG) dual-fuel vessels, as of today, 42 of such vessels have been delivered to the Company. The remaining vessels related to these agreements are scheduled to be delivered to the Company during the remainder of 2024 and the first quarter of 2025 (see also Note 26 to the Company’s annual Financial Statements).

In February 2024, the Company paid a total amount of approximately US$ 130 million for the exercise of a purchase option in respect of five chartered vessels.

(d)

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

(e)

Further to the volatile market terms mentioned above, which mostly affected the Company’s Container shipping services, the Company tested the carrying amount of its Container shipping services CGU for impairment loss (or recovery) as of September 30, 2024 and concluded that no material adjustment to the CGU’s assets carrying amount was required.

Consistent with its previous analysis (as of September 30 2023, see also Note 7 to the Company’s 2023 annual Financial Statements), the Company estimated the recoverable amount of its CGU on the basis of value-in-use, using the discounted cash flow (DCF) method and applying similar estimation methods for updated assumptions, including in respect of freight rates, carried volume, charter hire rates and bunkering costs.

The Company’s projections were estimated for the period ended on June 30, 2029 and a representative terminal year intended to reflect a long-term steady state, considering a post-tax discount rate of 12.5% and a long-term nominal growth rate of 2.5%.

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

4	Financial position (cont’d)

(f)

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

(g)

Dividends:

In June and September 2024, further to the approval of the Company’s Board of Directors, the Company distributed dividends in amounts of US$ 28 million and US$ 112 million, reflecting US$ 0.23 and US$ 0.93 per ordinary share, respectively.

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

5	Capital and reserves

Share-Based Payment Arrangements

During the reported period, the Board of Directors approved grants under the Company’s share option plans for employees, officers and directors, as detailed below:

Grant date		Number of instruments		Instrument terms		Vesting terms		Contractual life
March 2024		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 nine and three months period ended September 30, 2024, a total of 102,529 and 34,176 ordinary shares were issued, respectively, upon the cashless exercise of options, previously granted in respect of share-based payment arrangements.

During the three months period ended September 30, 2024 and 2023, the Company recorded expenses related to share-based compensation arrangements of US$ 2.0 million and US$ 4.3 million, respectively. During the nine months period ended September 30, 2024 and 2023 and the year ended December 31, 2023, the Company recorded expenses related to share-based compensation arrangements of US$ 7.8 million, US$ 15.4 million and US$ 17.6 million, respectively.

In November 2024, the Company’s Board of Directors approved the grant of 34,827 share options under the Company’s share option plans for employees, officers and directors.

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

6	Right-of-use assets

	Balance at September 30				Balance at December 31
	2024		2023		2023
	US $ in millions

Vessels		4,820.5		3,109.4		3,613.3
Containers and handling equipment		389.3		292.1		283.5
Other tangible assets		46.0		35.7		49.2
		5,255.8		3,437.2		3,946.0

7	Income from voyages and related services

	Nine months ended September 30				Three months ended September 30				Year ended December 31
	2024		2023		2024		2023		2023
	US $ in millions
Freight revenues from containerized cargo:
Pacific		2,934.1		1,357.0		1,427.7		476.0		1,779.1
Cross-Suez		667.7		434.3		289.9		111.8		491.3
Atlantic		503.3		501.8		182.0		123.8		636.3
Intra-Asia		535.6		483.9		248.2		164.5		616.6
Latin America		587.4		305.6		257.2		110.9		425.0
		5,228.1		3,082.6		2,405.0		987.0		3,948.3

Freight revenues from non-containerized cargo (mostly related to vehicle shipping services)		384.8		394.5		145.4		152.9		534.5

Other revenues (*)		646.9		479.8		214.8		133.1		679.4
		6,259.8		3,956.9		2,765.2		1,273.0		5,162.2

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

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

8	Operating expenses and cost of services

	Nine months ended September 30				Three months ended September 30				Year ended December 31
	2024		2023		2024		2023		2023
	US $ in millions

Wages, maintenance and other vessel-operating costs		27.1		24.9		9.7		7.8		31.8
Expenses relating to fleet equipment (mainly containers and chassis)		27.9		23.8		9.0		8.2		31.5
Bunker and lubricants		965.9		820.3		336.4		266.5		1,098.8
Insurance		25.8		15.2		8.4		5.3		21.5
Expenses related to cargo handling		1,479.6		1,273.7		518.5		430.4		1,671.4
Port expenses		346.7		385.8		118.3		148.6		500.7
Agents’ salaries and commissions		177.9		157.5		64.4		53.0		209.5
Cost of related services and sundry		260.7		143.8		87.4		54.3		216.9
Slot purchases and hire of vessels		46.4		57.7		7.2		27.6		79.4
Hire of containers		23.9		19.3		8.5		6.7		23.6
		3,381.9		2,922.0		1,167.8		1,008.4		3,885.1

9	Financial instruments

Financial instruments measured at fair value

	Balance at September 30,
	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 market instruments		760.4					760.4			539.1					539.1

Other investments:
Equity instruments				11.6			11.6					10.7			10.7

Loans and other liabilities:
Derivative instruments				(19.9	)		(19.9	)				(12.6	)		(12.6	)

Fair value through other comprehensive income
Other investments:
Sovereign bonds		575.1					575.1			1,095.9					1,095.9
Corporate bonds		969.3					969.3			1,044.7					1,044.7
Equity instruments		1.5					1.5			1.8					1.8

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

9	Financial instruments (cont’d)

Financial instruments measured at fair value (cont’d)

	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

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

	Nine months ended September 30					Three months ended September 30					Year ended December 31
	2024		2023			2024		2023			2023
	US $ in millions
Profit (loss) attributable to ordinary shareholders used to calculate basic and diluted earnings per share (US $ in millions)		1,586.2		(2,547.2	)		1,124.6		(2,272.6	)		(2,695.6	)

Number of shares at the beginning of the period used to calculate basic earnings (loss) per share		120,286,629		120,149,921			120,354,982		120,218,275			120,149,921
Effect of share options		53,884		45,069			17,831		1,486			63,110

Weighted average number of ordinary shares used to calculate basic earnings (loss) per share		120,340,513		120,194,990			120,372,813		120,219,761			120,213,031

Effect of share options		122,745					102,477

Weighted average number of ordinary shares used to calculate diluted earnings (loss) per share		120,463,258		120,194,990			120,475,290		120,219,761			120,213,031

In the nine and three months period ended September 30, 2024, options for 1,935,009 and 1,905,009 ordinary shares, granted to officers, directors and employees were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.

ZIM Integrated Shipping Services (ZIM) 6-KCurrent report (foreign)