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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/13/23 ZIM Integrated Shipping Svcs Ltd. 20-F 12/31/22 147:20M Z-K Global Ltd./FA |
Document/Exhibit Description Pages Size
1: 20-F Annual or Annual-Transition Report by a Foreign HTML 4.59M
Non-Canadian Issuer
2: EX-1.1 Underwriting Agreement or Conflict Minerals Report HTML 248K
-- exhibit_1-1
3: EX-2.1 Plan of Acquisition, Reorganization, Arrangement, HTML 56K
Liquidation or Succession -- exhibit_2-1
4: EX-8.1 Opinion of Counsel re: Tax Matters -- exhibit_8-1 HTML 124K
7: EX-13.1 Annual or Quarterly Report to Security Holders -- HTML 38K
exhibit_13-1
8: EX-13.2 Annual or Quarterly Report to Security Holders -- HTML 38K
exhibit_13-2
5: EX-12.1 Statement re: the Computation of Ratios -- HTML 43K
exhibit_12-1
6: EX-12.2 Statement re: the Computation of Ratios -- HTML 42K
exhibit_12-2
9: EX-15.1 Letter re: Unaudited Interim Financial Info -- HTML 37K
exhibit_15-1
10: EX-15.2 Letter re: Unaudited Interim Financial Info -- HTML 36K
exhibit_15-2
16: R1 Document and Entity Information HTML 109K
17: R2 Consolidated Statements of Financial Position HTML 118K
18: R3 Consolidated Income Statements HTML 90K
19: R4 Consolidated Statements of Comprehensive Income HTML 74K
20: R5 Consolidated Statements of Changes in Equity HTML 77K
21: R6 Consolidated Statement of Cash Flows HTML 124K
22: R7 Reporting entity HTML 51K
23: R8 Basis of Preparation HTML 52K
24: R9 Significant accounting policies HTML 180K
25: R10 Accounting estimates HTML 51K
26: R11 Vessels, containers, handling equipment and other HTML 254K
tangible assets
27: R12 Intangible assets HTML 154K
28: R13 Leases HTML 98K
29: R14 Trade and other receivables HTML 60K
30: R15 Other investments HTML 55K
31: R16 Cash and cash equivalents HTML 51K
32: R17 Capital and reserves HTML 133K
33: R18 Loans and other liabilities HTML 141K
34: R19 Employee benefits HTML 156K
35: R20 Trade and other payables HTML 72K
36: R21 Provisions HTML 48K
37: R22 Income from voyages and related services HTML 56K
38: R23 Operating expenses and cost of services HTML 78K
39: R24 Other operating income HTML 54K
40: R25 Other operating expenses HTML 53K
41: R26 General and administrative expenses HTML 67K
42: R27 Personnel expenses HTML 55K
43: R28 Depreciation and amortization expenses HTML 55K
44: R29 Finance income and expenses HTML 91K
45: R30 Income tax HTML 272K
46: R31 Segment information HTML 75K
47: R32 Commitments HTML 55K
48: R33 Contingencies HTML 52K
49: R34 Related parties HTML 145K
50: R35 Financial risk management HTML 312K
51: R36 Significant accounting policies (Policies) HTML 218K
52: R37 Significant accounting policies (Tables) HTML 70K
53: R38 Vessels, containers, handling equipment and other HTML 254K
tangible assets (Tables)
54: R39 Intangible assets (Tables) HTML 147K
55: R40 Leases (Tables) HTML 102K
56: R41 Trade and other receivables (Tables) HTML 57K
57: R42 Other investments (Tables) HTML 53K
58: R43 Cash and cash equivalents (Tables) HTML 50K
59: R44 Capital and reserves (Tables) HTML 133K
60: R45 Loans and other liabilities (Tables) HTML 137K
61: R46 Employee benefits (Tables) HTML 134K
62: R47 Trade and other payables (Tables) HTML 71K
63: R48 Provisions (Tables) HTML 46K
64: R49 Income from voyages and related services (Tables) HTML 55K
65: R50 Operating expenses and cost of services (Tables) HTML 77K
66: R51 Other operating income (Tables) HTML 53K
67: R52 Other operating expenses (Tables) HTML 52K
68: R53 General and administrative expenses (Tables) HTML 67K
69: R54 Personnel expenses (Tables) HTML 55K
70: R55 Depreciation and amortization expenses (Tables) HTML 54K
71: R56 Finance income and expenses (Tables) HTML 93K
72: R57 Income tax (Tables) HTML 270K
73: R58 Segment information (Tables) HTML 74K
74: R59 Commitments (Tables) HTML 52K
75: R60 Related parties (Tables) HTML 148K
76: R61 Financial risk management (Tables) HTML 291K
77: R62 Reporting entity (Narrative) (Details) HTML 94K
78: R63 Basis of Preparation - (Narrative) (Details) HTML 38K
79: R64 Significant accounting policies (Narrative) HTML 41K
(Details)
80: R65 Significant accounting policies - Estimated useful HTML 75K
lives (Details)
81: R66 Significant accounting policies - Term of leases HTML 50K
in which the Group is engaged (Details)
82: R67 Significant accounting policies - Estimated useful HTML 46K
life of intangible assets (Details)
83: R68 Vessels, containers, handling equipment and other HTML 105K
tangible assets - Components and Movements
(Details)
84: R69 Intangible assets - Components and Movements HTML 76K
(Details)
85: R70 Intangible assets - Increase (decrease) in HTML 44K
recoverable amount of CGU (Details)
86: R71 Intangible assets - Impairment test (Details) HTML 43K
87: R72 Leases - Right-of-use assets (Details) HTML 57K
88: R73 Leases - Maturity analysis of Group's lease HTML 47K
liabilities (Details)
89: R74 Leases - Amounts recognized in profit or loss HTML 46K
(Details)
90: R75 Leases - Amounts recognized in statement of cash HTML 38K
flows (Details)
91: R76 Trade and other receivables - Carrying amounts HTML 56K
(Details)
92: R77 Trade and other receivables - Factoring facility HTML 40K
(Details)
93: R78 Other investments (Details) HTML 64K
94: R79 Cash and cash equivalents (Details) HTML 43K
95: R80 Capital and reserves - Share capital (Details) HTML 64K
96: R81 Capital and reserves - Special State Share HTML 49K
(Details)
97: R82 Capital and reserves - Share-Based Payment HTML 77K
Arrangements (Details)
98: R83 Capital and reserves - Fair value measurement HTML 69K
(Details)
99: R84 Capital and reserves - Reconciliation of HTML 66K
outstanding share options (Details)
100: R85 Capital and reserves - Earnings (Loss) per share HTML 53K
(Details)
101: R86 Loans and other liabilities - Components (Details) HTML 55K
102: R87 Loans and other liabilities - Terms and debt HTML 62K
repayment schedule (Details)
103: R88 Loans and other liabilities - Financial Covenants HTML 40K
(Details)
104: R89 Loans and other liabilities - Movement in HTML 63K
liabilities deriving from financing activities
(Details)
105: R90 Employee benefits - Composition (Details) HTML 60K
106: R91 Employee benefits - Defined contribution pension HTML 43K
plans (Details)
107: R92 Employee benefits - Movement in the present value HTML 59K
of the defined benefit pension plan obligation and
present value of plan assets (Details)
108: R93 Employee benefits - Plan assets composition HTML 47K
(Details)
109: R94 Employee benefits - Actuarial assumptions HTML 70K
(Details)
110: R95 Employee benefits - Sensitivity analysis (Details) HTML 65K
111: R96 Trade and other payables (Details) HTML 58K
112: R97 Provisions (Details) HTML 45K
113: R98 Income from voyages and related services (Details) HTML 44K
114: R99 Operating expenses and cost of services (Details) HTML 58K
115: R100 Other operating income (Details) HTML 42K
116: R101 Other operating expenses (Details) HTML 42K
117: R102 General and administrative expenses (Details) HTML 50K
118: R103 Personnel expenses (Details) HTML 43K
119: R104 Depreciation and amortization expenses (Details) HTML 44K
120: R105 Finance income and expenses - Finance income HTML 47K
(Details)
121: R106 Finance income and expenses - Finance expenses HTML 53K
(Details)
122: R107 Income tax - Income Tax Rate (Details) HTML 38K
123: R108 Income tax - Measurement of results for tax HTML 51K
purposes (Details)
124: R109 Income tax - Reconciliation of effective tax rate HTML 66K
(Details)
125: R110 Income tax - Recognised deferred tax assets and HTML 64K
liabilities (Details)
126: R111 Income tax - Unrecognised deferred tax assets HTML 41K
(Details)
127: R112 Income tax - Movement in deferred tax assets and HTML 61K
liabilities during the year (Details)
128: R113 Segment information (Details) HTML 58K
129: R114 Commitments (Details) HTML 55K
130: R115 Commitments - Chartering agreements (Details) HTML 46K
131: R116 Contingencies (Details) HTML 46K
132: R117 Related parties - Transaction with Associates HTML 44K
(Details)
133: R118 Related parties - Associate Balances (Details) HTML 43K
134: R119 Related parties - Key management personnel HTML 43K
(Details)
135: R120 Related parties - Transactions with other related HTML 49K
parties and directors (Details)
136: R121 Related parties - Other related party balances HTML 48K
(Details)
137: R122 Financial risk management - Credit risk (Details) HTML 49K
138: R123 Financial risk management- Liquidity risk HTML 75K
Contractual maturities of financial liabilities
(Details)
139: R124 Financial risk management - Currency risk - HTML 89K
Group's exposure (Details)
140: R125 Financial risk management - Currency risk - HTML 44K
Sensitivity Analysis (Details)
141: R126 Financial risk management - Interest rate risk - HTML 51K
Group's exposure (Details)
142: R127 Financial risk management- Fair value (Details) HTML 73K
145: XML IDEA XML File -- Filing Summary XML 272K
143: XML XBRL Instance -- zk2329334_htm XML 6.00M
144: EXCEL IDEA Workbook of Financial Reports XLSX 259K
12: EX-101.CAL XBRL Calculations -- zim-20221231_cal XML 287K
13: EX-101.DEF XBRL Definitions -- zim-20221231_def XML 862K
14: EX-101.LAB XBRL Labels -- zim-20221231_lab XML 3.00M
15: EX-101.PRE XBRL Presentations -- zim-20221231_pre XML 1.41M
11: EX-101.SCH XBRL Schema -- zim-20221231 XSD 400K
146: JSON XBRL Instance as JSON Data -- MetaLinks 599± 879K
147: ZIP XBRL Zipped Folder -- 0001178913-23-000936-xbrl Zip 894K
| ZIM Integrated Shipping Services Ltd. - 1654126 - 2023 |
| i ☐ |
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
| i ☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended i December 31, i 2022 / |
| i ☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to . |
| i ☐ |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report |
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
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i Ordinary shares, no par value
|
“ i ZIM”
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i The New York Stock Exchange
|
|
i Large Accelerated Filer ☒
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Accelerated Filer ☐
|
Non-accelerated Filer ☐
|
Emerging growth company i ☐
|
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Page | ||
| 1 | ||
| 6 | ||
| 7 | ||
| 8 | ||
| 8 | ||
|
A. |
Directors and senior management |
8 |
|
B. |
Advisers |
8 |
|
C. |
Auditors |
8 |
| 8 | ||
|
A. |
Offer statistics |
8 |
|
B. |
Method and expected timetable |
8 |
| 8 | ||
|
A. |
Selected financial data |
8 |
|
B. |
Capitalization and indebtedness |
8 |
|
C. |
Reasons for the offer and use of proceeds |
8 |
|
D. |
Risk factors |
8 |
| 35 | ||
|
A. |
History and development of the company |
35 |
|
B. |
Business Overview |
36 |
|
C. |
Organizational structure |
63 |
|
D. |
Property, plant and equipment |
63 |
| 63 | ||
| 64 | ||
| 80 | ||
|
A. |
Directors and senior management |
83 |
|
B. |
Compensation |
83 |
|
C. |
Board practices |
84 |
|
D. |
Employees |
91 |
|
E. |
Share ownership |
92 |
| 94 | ||
|
A. |
Major shareholders |
94 |
|
B. |
Related party transactions |
95 |
|
C. |
Interests of Experts and Counsel |
102 |
| 102 | ||
|
A. |
Consolidated statements and other financial information |
102 |
|
B. |
Significant changes |
104 |
| 104 | ||
|
A. |
Offering and listing details |
104 |
|
B. |
Plan of distribution |
104 |
|
C. |
Markets |
104 |
|
D. |
Selling shareholders |
104 |
|
E. |
Dilution |
104 |
|
F. |
Expenses of the issue |
104 |
| 104 | ||
|
A. |
Share capital |
104 |
|
B. |
Memorandum of association and bye-laws |
104 |
|
C. |
104 | |
|
D. |
Exchange controls |
104 |
|
E. |
Taxation |
104 |
|
F. |
Dividends and paying agents |
109 |
|
G. |
Statement by experts |
110 |
|
H. |
Documents on display |
110 |
|
I. |
Subsidiary information |
110 |
| 110 | ||
| 110 | ||
|
A. |
Debt securities |
110 |
|
B. |
Warrants and rights |
110 |
|
C. |
Other securities |
110 |
|
D. |
American Depositary Shares |
110 |
| 111 | ||
| 111 | ||
|
A. |
Defaults |
111 |
|
B. |
Arrears and delinquencies |
111 |
| 111 | ||
| 111 | ||
|
A. |
Disclosure Controls and Procedures |
111 |
|
B. |
Management’s Annual Report on Internal Control over Financial Reporting |
111 |
|
C. |
Attestation Report of the Registered Public Accounting Firm |
112 |
|
D. |
Changes in Internal Control over Financial Reporting |
112 |
| 112 | ||
| 112 | ||
| 112 | ||
| 113 | ||
| 113 | ||
| 113 | ||
| 113 | ||
| 114 | ||
| 114 | ||
| 115 | ||
| 115 | ||
| 115 | ||
| 115 | ||
|
F-2 | ||
|
“alliance” |
A type of a vessel sharing agreement that involves joint operations of fleets of vessels and sharing of
vessel space in multiple trades. |
|
“bareboat charter” |
A form of charter where the vessel owner supplies only the vessel, while the charterer is responsible for
crewing the vessel, obtaining insurance on the vessel, the auxiliary vessel equipment, supplies, maintenance and the operation and management
of the vessel, including all costs of operation. The charterer has possession and control of the vessel during a predetermined period
and pays the vessel owner charter hire during that time. |
|
“bill of lading” |
A document issued by or on behalf of a carrier as evidence of a contract carriage and is usually considered
as a document of title (transferable by endorsement) and as receipt by the carrier for the goods shipped and carried. The document contains
information relating to the nature and quantity of goods, their apparent condition, the shipper, the consignee, the ports of loading and
discharge, the name of the carrying vessel and terms and conditions of carriage. A house bill of lading is a document issued by a freight
forwarder or non-vessel operating common carrier that acknowledges receipt of goods that are to be shipped and is issued once the goods
have been received. |
|
“blank sailing” |
A scheduled sailing that has been cancelled by a carrier or shipping line resulting in a vessel skipping
certain ports or the entire route. |
|
“booking” |
Prior written request of a shipper (in a specific designated form) from the carrier setting forth the requested
details of the shipment of designated goods (i.e., a space reservation). |
|
“bulk cargo” |
Cargo that is transported unpackaged in large quantities, such as ores, coal, grain and liquids.
|
|
“BWM Convention” |
The International Convention for the Control and Management of Ships’ Ballast Water and Sediments.
|
|
“capacity” |
The maximum number of containers, as measured in TEUs, that could theoretically be loaded onto a container
ship, without taking into account operational constraints. With reference to a fleet, a carrier or the container shipping industry, capacity
is the total TEUs of all vessels in the fleet, the carrier or the industry, as applicable. |
|
“cargo manifest” |
A shipping document listing the contents of shipments per bills of lading including their main particulars,
usually used for customs, security, port and terminal purposes. |
|
“carrier” |
The legal entity engaged directly or through subcontractors in the carriage of goods for a profit.
|
|
“CERCLA” |
The U.S. Comprehensive Environmental Response Compensation, and Liability Act. |
|
“CGU” |
Cash generating unit. |
|
“charter” |
The leasing of a vessel for a certain purpose at a pre-determined rate for a pre-determined period of time
(where the hire is an agreed daily rate) or for a designated voyage (where the hire is agreed and based on volume/ quantity of goods).
|
|
“classification societies” |
Organizations that establish and administer standards for the design, construction and operational maintenance
of vessels. As a practical matter, vessels cannot operate unless they meet these standards. |
|
“conference” |
A grouping of container shipping companies which come together to set a common structure of rates and surcharges
for a specific trade route. |
|
“consignee” |
The entity or person named in the bill of lading as the entity or person to whom the carrier should deliver
the goods upon surrendering of the original bill of lading when duly endorsed. |
|
“container” |
A steel box of various size and particulars designed for shipment of goods. |
|
“containerized cargo” |
Cargo that is transported using standard intermodal containers as prescribed by the International Organization
for Standardization. Containerized cargo excludes cargo that is not transported in such containers, such as automobiles or bulk cargo.
|
|
“customs clearance” |
The process of clearing import goods and export goods through customs. |
|
“demurrage” |
The fee we charge an importer for each day the importer maintains possession of a container that is beyond
the scheduled or agreed date of return. |
|
“depot” |
Container yards located outside terminals for stacking of containers. |
|
“detention” |
A penalty charge which may be imposed by the carrier, the terminal or the warehouse to customers for exceeding
agreed times for returning (merchant’s haulage) or stuffing/stripping (carrier’s haulage) container(s). |
|
“dominant leg” |
The direction of shipping on a particular trade with the higher transport volumes. The opposite direction
of shipping is called the “counter-dominant” leg. |
|
“drydocking” |
An out-of-service period during which planned repairs and maintenance are carried out, including all underwater
maintenance such as external hull painting. During the drydocking, mandatory classification society inspections are carried out and relevant
certifications issued. |
|
“ECAs” |
Emission Control Areas as defined by Annex VI to the MARPOL Convention. |
|
“end-user” |
A customer who is a producer of the goods to be shipped or an exporter or importer of such goods, in each
case, with whom we have a direct contractual relationship. In contrast, with respect to an indirect customer, we only have a contractual
relationship with a freight forwarder who acts as agent for the producer of the goods to be shipped. |
|
“EPA” |
The U.S. Environmental Protection Agency, an agency of the U.S. federal government responsible for protecting
human health and the environment. |
|
“FCL” |
Full Container Load, which refers to cargo shipped in a complete container. |
|
“feeder” |
A small tonnage vessel that provides a linkage between ports and long hull vessels or main hub ports and
smaller facility ports, which may be inaccessible to larger vessels. |
|
“feeder service” |
A line of service that transfers cargo between a central hub port and regional ports for a transcontinental
ocean voyage. |
|
“freight forwarder” |
Non-vessel operating common carriers that assemble cargo from customers for forwarding through a shipping
company. |
|
“GDP” |
Gross domestic product. |
|
“global orderbook” |
The list of newbuilding orders published by Danish Ship Finance A/S |
|
“hybrid charter” |
A form of charter where the charterer’s responsibility and involvement is more in line with that
of a “bareboat” charter, but the vessel owner retains possession of the vessels and other rights as defined in the charter
party agreement. |
|
“IMO” |
The International Maritime Organization, the United Nations specialized agency with responsibility for
the safety and security of shipping and the prevention of marine pollution by ships. |
|
“IMO 2020 Regulations” |
Global regulations imposed by the IMO, effective January 1, 2020, requiring all ships to burn fuel
with a maximum sulfur content of 0.5%, among other requirements. |
|
“ISM Code” |
International Safety Management Code, an international code for the safe management and operation of ships
and for pollution prevention issued by the IMO applicable to international route vessels and shipping companies (ship management companies,
bareboat charters and shipowners). |
|
“ISPS Code” |
International Ship and Port Facility Security Code, an international code for vessel and port facility
security issued by the IMO applicable to international route vessels. |
|
“JWC” |
The Joint War Committee. |
|
“Kyoto Protocol” |
The Kyoto Protocol to the United Nations Framework Convention on Climate Change. |
|
“LCL” |
Less than a Container Load, which refers to shipments that fill less than a full shipping container and
are grouped with other cargo. |
|
“liner” |
A vessel sailing between specified ports on a regular basis. |
|
“lines” |
A line refers to a route for shipping cargo between sea ports. |
|
“LNG” |
Liquified natural gas. LNG is used as a vessel fuel, and is considered to emit less sulfur oxide, carbon,
and other pollutants than existing conventional vessel fuels. |
|
“logistics” |
A comprehensive, system-wide view of the entire supply chain as a single process, from raw materials supply
through finished goods distribution. All functions that make up the supply chain are managed as a single entity, rather than managing
individual functions separately. |
|
“long-term lease” |
In relation to container leasing, a lease typically for a term which exceeds five years, during which
an agreed leasing rate is payable. |
|
“MARPOL Convention” |
The International Convention for the Prevention of Pollution from Ships. |
|
“MEPC” |
The Marine Environment Protection Committee of the IMO. |
|
“MTSA” |
The US Maritime Transport Security Act of 2002. |
|
“newbuilding” |
A vessel under construction or on order. |
|
“non-dominant leg”, or “counter- dominant leg” |
The direction of shipping on a particular trade with the lower transport volumes. The opposite direction
of shipping is called the “dominant” leg. |
|
“non-vessel operating common carrier” |
A carrier, usually a freight forwarder, which does not own or operate vessels and is engaged in the provision
of shipping services, normally issuing a house bill of lading. |
|
“off hire” |
A period within a chartering term during which no charter hire is being paid, in accordance with the charter
arrangement, due to the partial or full inability of vessels, owners or crew to comply with charterer instructions resulting in the limited
availability or unavailability of the vessel for the use of the charterer. |
|
“own” |
With respect to our vessels or containers, vessels or containers to which we have title (whether or not
subject to a mortgage or other lien). |
|
“P&I” |
Protection and indemnity. |
|
“port state controls” |
The inspection of foreign ships in national ports to verify that the condition of the ship and its equipment
comply with the requirements of international regulations and that the ship is manned and operated in compliance with these rules.
|
|
“reefer” |
A temperature-controlled shipping container. |
|
“regional carrier” |
A carrier who generally focuses on a number of smaller routes within a geographical region or within a
major market, and usually offers direct services to a wider range of ports within a particular market. |
|
“scrapping” |
The process by which, at the end of its life, a vessel is sold to a shipbreaker who strips the ship and
sells the steel as “scrap.” |
|
“scrubbers” |
A type of exhaust gas cleaning equipment utilized by ships to control emissions. |
|
“service” |
A string of vessels which makes a fixed voyage and serves a particular market. |
|
“Shanghai (Export) Containerized Freight Index” |
Composite index published by the Shanghai Shipping Exchange that reflects the fluctuation of spot freight
rates in the export container transport market in Shanghai. The basis period of the composite index is October 16, 2009 and the basis
index is 1,000 points. |
|
“shipper” |
The entity or person named in the bill of lading to whom the carrier issues the bill of lading. |
|
“slot” |
The space required for one TEU on board a vessel. |
|
“slot capacity” |
The amount of container space on a vessel. |
|
“slot charter/hire agreement” |
An arrangement under which one container shipping company will charter container space on the vessel of
another container shipping company. |
|
“slow steaming” |
The practice of operating vessels at significantly less than their maximum speed. |
|
“SOLAS” |
The International Convention for the Safety of Life at Sea, 1974. |
|
“SSAS” |
Ship Security Alert Systems. |
|
“STCW” |
The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978,
as amended. |
|
“stevedore” |
A terminal operator or a stevedoring company who is responsible for the loading and discharging containers
on or from vessels and various other container related operating activities. |
|
“swap agreement” |
An exchange of slots between two carriers, with each carrier operating its own line, while also having
access to capacity on the other shipper’s line. |
|
“terminal” |
An assigned area in which containers are stored pending loading into a vessel or are stacked immediately
after discharge from the vessel pending delivery. |
|
“TEU” |
Twenty-foot equivalent unit, a standard unit of measurement of the volume of a container with a length
of 20 feet, height of eight feet and six inches and width of eight feet. |
|
“time charter” |
A form of charter where the vessel owner charters a vessel’s carry capacity to the charterer for
a particular period of time for a daily hire. During such period, the charterer has the use of vessel’s carrying capacity and may
direct her sailings. The charterer is responsible for fuel costs, port dues and towage costs. The vessel owner is only responsible for
manning the vessel and paying crew salaries and other fixed costs, such as maintenance, repairs, oils, insurance and depreciation.
|
|
“trade” |
Trade between an origin group of countries and a destination group of countries. |
|
“UNCITRAL” |
The United Nations Commission on International Trade Law. |
|
|
|
|
“U.S. Shipping Act” |
The U.S. Shipping Act of 1984, as amended by the US Ocean Shipping Reform Act of 1998, and the Ocean Shipping
Reform Act of 2022. |
|
“vessel sharing agreement” (VSA) |
An operational agreement between two or more carriers to operate their vessels on a service by swapping
slots on such service and whereby at least two carriers contribute vessels to the service. |
|
“2M Alliance” |
A container shipping alliance comprised of Copenhagen based Maersk Lines Ltd. (Maersk) and Geneva
based Mediterranean Shipping Company (MSC). In January 2023 MSC and Maersk released a joint statement announcing the termination of the
2M Alliance in January 2025. |
| • |
our expectations regarding general market conditions, including as a result of rising inflation and corresponding increasing interest
rates, the Russia-Ukraine conflict, the COVID‑19 pandemic and other global economic trends; |
| • |
our expectations regarding trends related to the global container shipping industry, including with respect to fluctuations in container
supply, industry consolidation, demand for containerized shipping services, bunker prices, charter/ freights rates, container values and
other factors affecting supply and demand; |
| • |
our plans regarding our business strategy, areas of possible expansion and expected capital spending or operating expenses;
|
| • |
our anticipated ability to obtain additional financing in the future to fund expenditures. |
| • |
our expectation of modifications with respect to our and other shipping companies’ operating fleet and lines, including the
utilization of larger vessels within certain trade zones and modifications made in light of environmental regulations; |
| • |
the expected benefits of our cooperation agreements and strategic partnerships; |
| • |
Formation of new alliances among global carriers, changes in and disintegration of existing alliances and collaborations, including
alliances and collaborations to which we are not a party to; |
| • |
our anticipated insurance costs; |
| • |
our beliefs regarding the availability of crew; |
| • |
our expectations regarding our environmental and regulatory conditions, including changes in laws and regulations or actions taken
by regulatory authorities, and the expected effect of such regulations; |
| • |
our beliefs regarding potential liability from current or future litigation; |
| • |
our plans regarding hedging activities; |
| • |
our ability to pay dividends in accordance with our dividend policy; |
| • |
our expectations regarding our competition and ability to compete effectively; and |
| • |
our ability to effectively handle cyber-security threats and recover from cyber-security incidents. |
| • |
The container shipping industry is dynamic and volatile and has been marked in recent years by instability and uncertainties
as a result of global economic conditions and the many factors that affect supply and demand in the shipping industry, including geopolitical
trends, US-China related trade restrictions, regulatory developments, relocation of manufacturing, logistical bottlenecks in certain location
along the cargo carriage chain, and, recently, the impact of the COVID‑19 pandemic, rising inflation and climbing interest rates
and fluctuations in demand for containerized shipping services which could significantly impact freight rates. |
| • |
The military conflict between Russia and Ukraine or other geopolitical instabilities may cause financial markets to plummet, reduce
global trade, increase bunker prices and may have a material adverse effect on our business, financial condition, results of operations
and liquidity. |
| • |
We charter-in most of our fleet, which makes us more sensitive to fluctuations in the charter market, and as a result of our dependency
on the vessel charter market, our costs associated with chartering vessels are unpredictable and could be, in certain circumstances, high
even when the freight market is in a downward trend. |
| • |
Future imbalance between supply of global container ship capacity and demand may limit our ability to operate our vessels profitably.
|
| • |
Limited or unavailable access to ports and means of land transportation, including due to congestion. |
| • |
Changing trading patterns, trade flows and sharpening trade imbalances, regulatory measures, variable operational costs, such as
container storage costs, terminal costs and land transportation costs, including due to the impact of the COVID-19 pandemic, may increase
our container repositioning costs. If our efforts to minimize our repositioning costs are unsuccessful, it could adversely affect our
business, financial condition and results of operations. |
| • |
Our ability to participate in operational partnerships in the shipping industry remains limited, which may adversely affect our business,
and we face risks related to our strategic cooperation agreement with the 2M Alliance, which, following the joint statement by its members
(MSC and Maersk) announcing the termination of the 2M Alliance in January 2025, will be terminated in January 2025, and can be unilaterally
terminated even earlier by any party to the agreement after an initial period of 18 months (subject to provision of a six month prior
written notice). |
| • |
The container shipping industry is highly competitive, and competition may intensify even further. Certain of our large competitors
may be better positioned and have greater financial resources than us and may therefore be able to offer more attractive schedules, services
and rates, which could negatively affect our market position and financial performance. |
| • |
We may be unable to retain existing customers or may be unable to attract new customers. |
| • |
We are incorporated and based in Israel and, therefore, our results may be adversely affected by political, economic and military
instability in Israel. |
| • |
We face cyber-security risks. |
| • |
Volatile bunker prices, including as a result of environmental regulation (such as the mandatory transfer to low sulfur oil bunker
by the IMO 2020 Regulations), dependency on gas suppliers for LNG operated vessels or other geopolitical and economic events, may have
an adverse effect on our results of operations. |
| • |
We are subject to environmental regulations, and in addition, ESG regulation and reporting requirements have intensified and are
expected to continue to intensify in the future, including without limitation, with respect to the use of cleaner fuel and/or imposition
of vessel speed limits, which could increase our operational costs. |
| • |
The temporary spike in freight rates and related charges during 2020-2021 has resulted in increased scrutiny by regulators around
the world. In particular, the ministry of transportation in China approached several carriers, including the Company, with a request for
information with respect to the charging of customers practices, and filing of charges and changes in charges with the relevant regulators.
In the U.S., the Ocean Shipping Reform Act of 2022 (OSRA) mandates a series of rulemaking projects by the Federal Maritime Commission
(FMC) and requires carriers to immediately implement certain requirements in detention and demurrage invoices, which may affect our ability
to effectively collect these fees from our customers, heighten the risk of civil litigation against us and adversely affect our financial
results. If we are found to be in violation of the applicable regulation, we could be subject to various sanctions, including monetary
sanctions. |
| • |
global and regional economic and geopolitical trends, including the short- and long-term impact of the COVID-19 pandemic on the global
economy, armed conflicts (including the Russia-Ukraine conflict), terrorist activities, embargoes, strikes, rising inflation, climbing
interest rates and trade wars; |
| • |
the global supply of and demand for commodities and industrial products globally and in certain key markets, such as China;
|
| • |
developments in international trade, including the imposition of tariffs, the modification of trade agreements between states and
other trade protectionism (for example, in the U.S.-China trade); |
| • |
currency exchange rates; |
| • |
prices of energy resources, including vessel fuels and marine LNG; |
| • |
environmental and other regulatory developments; |
| • |
changes in seaborne and other transportation patterns; |
| • |
changes in the shipping industry, including mergers and acquisitions, bankruptcies, restructurings and alliances; |
| • |
changes in the infrastructure and capabilities of ports and terminals; |
| • |
weather conditions; |
| • |
outbreaks of diseases, including the COVID-19 pandemic; and |
| • |
development of digital platforms to manage operations and customer relations, including billing and services. |
| • |
actual or anticipated variations in our or our competitors’ results of operations and financial condition; |
| • |
variations in our financial performance from the expectations of market analysts; |
| • |
announcements by us or our competitors of significant business developments, changes in service provider relationships, acquisitions
or expansion plans; |
| • |
our involvement in litigation; |
| • |
our sale of ordinary shares or other securities in the future; |
| • |
market conditions in our industry, which traditionally has been volatile; |
| • |
changes in key personnel; |
| • |
the trading volume of our ordinary shares; |
| • |
changes in the estimation of the future size and growth rate of our markets; and |
| • |
general economic and market conditions. |
|
Year ended December 31, |
||||||||||||||
|
Geographic trade zone (percentage
of total TEUs carried for the period) |
Primary trade |
2022 |
2021 |
2020 |
||||||||||
|
Pacific |
Transpacific |
34 |
% |
39 |
% |
40 |
% | |||||||
|
Cross-Suez |
Asia-Europe |
13 |
% |
10 |
% |
12 |
% | |||||||
|
Atlantic-Europe |
Atlantic |
15 |
% |
18 |
% |
21 |
% | |||||||
|
Intra-Asia |
Intra-Asia |
31 |
% |
27 |
% |
21 |
% | |||||||
|
Latin America |
Intra-America |
7 |
% |
6 |
% |
6 |
% | |||||||
|
100 |
% |
100 |
% |
100 |
% | |||||||||
|
Type of Container |
|
Type of Cargo |
|
Quantity |
|
TEUs |
|
Dry van containers |
|
Most general cargo, including commodities in bundles, cartons, boxes,
loose cargo, bulk cargo and furniture |
|
1,860,853 |
|
3,131,023 |
|
Reefer containers |
|
Temperature controlled cargo, including pharmaceuticals, electronics and perishable
cargo |
|
96,200 |
|
189,610 |
|
Other specialized containers |
|
Heavy cargo and goods of excess height and/or width, such as machinery, vehicles and
building |
|
48,778 |
|
59,353 |
|
|
|
2,005,831 |
3,379,986 |
| • |
Out-of-gauge cargo. Cargo that is over-weight, over-height, over-length and/or over-width
can present many challenges and issues relating to proper stowage, securing and handling. We maintain our containers to the highest standards
and offer premium third-party services relating to these particular challenges. |
| • |
Dangerous and hazardous, cargo. We specialize in carrying Dangerous and hazardous shipments
safely in accordance with all applicable local and international rules and regulations. We ship a wide array of such cargos, and we employ
dedicated teams of specialists in five offices around the globe who are specially trained to guide our customers through every stage of
the supply chain challenges. We have also developed and implemented "ZIMGuard", an innovative artificial intelligence-based, screening
software designed to detect and identify incidents of misdeclared hazardous cargo before loading to vessel. |
| • |
Reefer cargo. Reefer cargo includes perishable goods, pharmaceuticals and electronics. Our
reefer specialists and merchant marine officers ensure the safe transport of reefer cargo with precise tracking and continuous monitoring
throughout the cold chain. During 2022 the portion of our reefer cargo carried out of our total carried TEU has grown by 8% compared to
2021, demonstrating our strategy to focus on reefers as one of our growth engines. In addition, as we strive to have the youngest reefer
fleet in the industry, we have also invested in new custom-made reefer containers already equipped with our ZIMonitor capabilities, as
well as in controlled atmosphere units which are designed to ship fresh produce cargo. |
|
|
|
Capacity |
|
|
||||
|
Number |
(TEU) |
Other Vessels |
Total(1)
| |||||
|
Vessels owned by us |
|
9 |
|
31,842 |
|
— |
|
9 |
|
Vessels chartered from parties related to us |
5 |
20,660 |
1 |
6 | ||||
|
Periods up to 1 year (from December 31, 2022) |
|
3 |
|
15,548 |
|
|
3 | |
|
Periods between 1 to 5 years (from December 31, 2022) |
|
2 |
|
20,660 |
|
1 |
|
3 |
|
Periods over 5 years (from December 31, 2022) |
|
— |
|
— |
|
— |
|
— |
|
Vessels chartered from third parties(2)
|
125 |
496,776 |
10 |
135 | ||||
|
Periods up to 1 year (from December 31, 2022) |
|
27 |
|
75,285 |
|
1 |
|
28 |
|
Periods between 1 to 5 years (from December 31, 2022) |
|
95 |
|
408,732 |
|
9 |
|
99 |
|
Periods over 5 years (from December 31, 2022) |
|
3 |
|
12,759 |
|
— |
|
3 |
|
Total(3)
|
|
139 |
|
549,278 |
|
11 |
|
150 |
| (1) |
Includes 136 vessels accounted as right-of-use assets under the accounting guidance of IFRS 16. |
| (2) |
Includes 130 vessels accounted as right-of-use assets under the accounting guidance of IFRS 16 and 4 vessels accounted under sale
and leaseback refinancing agreements. |
| (3) |
Under our time charters, the vessel owner is responsible for operational costs and technical management of the vessel, such as crew,
maintenance and repairs including periodic drydocking, cleaning and painting and maintenance work required by regulations, and certain
insurance costs. Transport expenses such as bunker and port canal costs are borne by us. For some of the vessels that we own and for our
vessels we charter under “bareboat” terms, we provide our own operational and technical management services or through a third-party
ship management service provider. Our operational management services include the chartering-in, sale and purchase of vessels and accounting
services, while our technical management services include, among others, selecting, engaging, and training competent personnel to supervise
the maintenance and general efficiency of our vessels; arranging and supervising the maintenance, drydockings, repairs, alterations and
upkeep of our vessels in accordance with the standards developed by us, the requirements and recommendations of each vessel’s classification
society, and relevant international regulations and maintaining necessary certifications and ensuring that our vessels comply with the
law of their flag state. |
| • |
Slot swap agreements. We enter into agreements with other carriers for the exchange of vessel
space, or “slots”, for repositioning of empty containers. Under these agreements, other carriers offer ZIM space on
their own operated vessels, in exchange for space on our vessels for the purpose of repositioning empty containers. ZIM has greatly developed
this cooperation. We have slot swap agreements with 14 carriers and exchange thousands of TEUs each year. |
| • |
Slot sale agreements. We sell slots on board our vessels to transport empty containers.
|
| • |
One-way container lease. We use leasing companies and other shipping liners’ empty
containers to move cargo from locations with increased demand to over-supplied locations. We are a global leader in one-way container
volumes. |
| • |
Equipment sub-leases. We lease our equipment to other carriers and freight forwarders in
order to reduce our container repositioning and evacuation costs. |
|
Geographic trade zone | ||||||||||
|
Partner |
|
Pacific |
|
Cross-Suez |
|
Intra-Asia |
|
Atlantic-Europe |
|
Latin America |
|
A.P. Moller-Maersk(1)
|
|
✓ |
|
✓ |
|
✓ | ||||
|
Mediterranean Shipping Company(1)
|
|
✓ |
|
|
|
✓ | ||||
|
CMA CGM S.A. |
|
|
|
|
✓ |
|
|
|
| |
|
Evergreen Marine Corporation |
|
|
|
|
✓ |
|
|
|
| |
|
Hapag-Lloyd AG(2)
|
|
|
|
✓ |
|
✓ |
|
✓ | ||
|
China Ocean Shipping Company (COSCO) |
|
|
|
✓ |
|
✓ |
|
| ||
|
ONE |
|
|
|
|
✓ |
|
✓ |
|
| |
|
Orient Overseas Container Line Limited (OOCL) |
|
|
|
|
✓ |
|
|
|
| |
|
Yang Ming Marine Transport Corporation |
|
|
|
✓ |
|
✓ |
|
| ||
|
Hyundai Merchant Marine Co., Ltd. |
|
|
|
|
✓ |
|
|
|
| |
|
Others |
|
|
|
✓ |
|
|
✓ | |||
| (1) |
Our cooperation with Maersk and MSC is under the 2M Alliance framework. However, in the Latin America we also have a separate bilateral
cooperation agreement with MSC, and our separate bilateral cooperation with MSC on the Atlantic terminated effective as of April 2022.
We also have a separate bilateral cooperation agreement with Maersk in the Latin America and Intra Asia trades. |
| (2) |
With respect to the Atlantic-Europe trade, we have a swap agreement with THE Alliance member Hapag-Lloyd, supporting ZIM loadings
on THE Alliance service on this trade. ZIM also has a separate bilateral agreement with respect to the Atlantic-Europe trade with Hapag-Lloyd
in its standalone capacity. |
| • |
injury to, destruction or loss of, or loss of use of, natural resources and related assessment costs; |
| • |
injury to, or economic losses resulting from, the destruction of real and personal property; |
| • |
loss of subsistence use of natural resources that are injured, destroyed or lost; |
| • |
net loss of taxes, royalties, rents, fees and or net profit revenues resulting from injury, destruction or loss of real or personal
property, or natural resources; |
| • |
lost profits or impairment of earning capacity due to injury, destruction or loss of real or personal property or natural resources;
and |
| • |
net cost of increased or additional public services necessitated by removal activities following a discharge of pollutants, such
as protection from fire, safety or health hazards, and loss of subsistence use of natural resources. |
| • |
on-board installation of automatic information systems to enhance vessel-to-vessel and vessel-to-shore communications; |
| • |
on-board installation of ship security alert systems; |
| • |
the development of ship security plans; and |
| • |
compliance with flag state security certification requirements. |
| • |
our local shipping agencies’ effectiveness in capturing such demand; |
| • |
our level of customer service, which affects our ability to retain and attract customers; |
| • |
our ability to effectively deploy capacity to meet such demand; |
| • |
our operating efficiency; and |
| • |
our ability to establish and operate existing and new services in markets where there is growing demand. |
| • |
cyclical demand for container shipping services relative to the supply of vessel and container capacity; |
| • |
competition in specific trades; |
| • |
bunker prices; |
| • |
costs of operation; |
| • |
the particular dominant leg on which the cargo is transported; |
| • |
average vessel size in specific trades; |
| • |
the origin and destination points selected by the shipper; and |
| • |
the type of cargo and container type. |
|
Year Ended December 31, |
||||||||||||
|
2021 |
2020 |
|||||||||||
|
(in millions) |
||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBIT |
||||||||||||
|
Net income (loss) |
$ |
4,629.0 |
$ |
4,649.1 |
$ |
524.2 |
||||||
|
Financial expenses, net |
108.5 |
156.8 |
181.2 |
|||||||||
|
Income taxes |
1,398.3 |
1,010.4 |
16.6 |
|||||||||
|
Operating income (EBIT) |
6,135.8 |
5,816.3 |
722.0 |
|||||||||
|
Non-cash charter hire expenses(1)
|
0.4 |
1.5 |
7.7 |
|||||||||
|
Capital loss (gain), beyond the ordinary course of business(2)
|
(0.6 |
) |
(0.1 |
) |
(0.1 |
) | ||||||
|
Assets Impairment loss (recovery) |
0.0 |
0.0 |
(4.3 |
) | ||||||||
|
Expenses related to legal contingencies |
9.8 |
2.0 |
3.3 |
|||||||||
|
Adjusted EBIT |
$ |
6,145.4 |
$ |
5,819.7 |
$ |
728.6 |
||||||
|
Adjusted EBIT margin(3)
|
48.9 |
% |
54.2 |
% |
18.3 |
% | ||||||
| (1) |
Mainly related to amortization of deferred charter hire costs, recorded in connection with the 2014 restructuring. |
| (2) |
Related to disposal of assets, other than container and equipment (which are disposed on a recurring basis). |
| (3) |
Represents Adjusted EBIT divided by Income from voyages and related services. |
|
Year Ended December 31, |
||||||||||||
|
2021 |
2020 |
|||||||||||
|
(in millions) |
||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) ADJUSTED EBITDA |
||||||||||||
|
Net income (loss) |
$ |
4,629.0 |
$ |
4,649.1 |
$ |
524.2 |
||||||
|
Financial expenses, net |
108.5 |
156.8 |
181.2 |
|||||||||
|
Income taxes |
1,398.3 |
1,010.4 |
16.6 |
|||||||||
|
Depreciation and amortization |
1,396.2 |
779.2 |
314.2 |
|||||||||
|
EBITDA |
7,532.0 |
6,595.5 |
1,036.2 |
|||||||||
|
Non-cash charter hire expenses(1)
|
0.1 |
0.0 |
0.7 |
|||||||||
|
Capital loss (gain), beyond the ordinary course of business(2)
|
(0.6 |
) |
(0.1 |
) |
(0.1 |
) | ||||||
|
Assets Impairment loss (recovery) |
0.0 |
0.0 |
(4.3 |
) | ||||||||
|
Expenses related to legal contingencies |
9.8 |
2.0 |
3.3 |
|||||||||
|
Adjusted EBITDA |
$ |
7,541.3 |
$ |
6,597.4 |
$ |
1,035.8 |
||||||
| (1) |
Mainly related to amortization of deferred charter hire costs, recorded in connection with the 2014 restructuring. Following the
adoption of IFRS 16 on January 1, 2019, part of the adjustments are recorded as amortization of right-of-use assets. |
| (2) |
Related to disposal of assets, other than containers and equipment (which are disposed on a recurring basis). |
|
Year Ended December 31, |
||||||||||||||||||||||||
|
2021 |
2020 |
|||||||||||||||||||||||
|
(in millions) |
||||||||||||||||||||||||
|
Income from voyages and related services |
$ |
12,561.6 |
100 |
% |
$ |
10,728.7 |
100 |
% |
$ |
3,991.7 |
100 |
% | ||||||||||||
|
Cost of voyages and related services: |
||||||||||||||||||||||||
|
Operating expenses and cost of services |
(4,764.5 |
) |
(37.9 |
) |
(3,905.9 |
) |
(36.4 |
) |
(2,835.1 |
) |
(71.0 |
) | ||||||||||||
|
Depreciation |
(1,370.3 |
) |
(10.9 |
) |
(756.3 |
) |
(7.1 |
) |
(291.6 |
) |
(7.3 |
) | ||||||||||||
|
Gross profit |
6,426.8 |
51.2 |
6,066.5 |
56.5 |
865.0 |
21.7 |
||||||||||||||||||
|
Other operating income (expenses), net |
48.0 |
0.4 |
13.6 |
0.1 |
16.9 |
0.4 |
||||||||||||||||||
|
General and administrative expenses |
(338.3 |
) |
(2.7 |
) |
(267.7 |
) |
(2.5 |
) |
(163.2 |
) |
(4.1 |
) | ||||||||||||
|
Share of profits of associates |
(0.7 |
) |
(0.0 |
) |
3.9 |
0.1 |
3.3 |
0.1 |
||||||||||||||||
|
Results from operating activities |
6,135.8 |
48.9 |
5,816.3 |
54.2 |
722.0 |
18.1 |
||||||||||||||||||
|
Finance expenses, net |
(108.5 |
) |
(0.9 |
) |
(156.8 |
) |
(1.4 |
) |
(181.2 |
) |
(4.6 |
) | ||||||||||||
|
Profit (loss) before income tax |
6,027.3 |
48.0 |
5,659.5 |
52.8 |
540.8 |
13.5 |
||||||||||||||||||
|
Income taxes |
(1,398.3 |
) |
(11.1 |
) |
(1,010.4 |
) |
(9.5 |
) |
(16.6 |
) |
(0.4 |
) | ||||||||||||
|
Net income (loss) |
4,629.0 |
36.9 |
% |
$ |
4,649.1 |
43.3 |
% |
$ |
524.2 |
13.1 |
% | |||||||||||||
|
TEUs carried |
Average freight rate per TEU carried |
Freight revenues from containerized cargo |
||||||||||||||||||||||||||||||||||
|
Year Ended December 31, |
Year Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||||||||||||||
|
Geographic trade zone |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
|||||||||||||||||||||||||||
|
Pacific |
1,160 |
1,376 |
(15.7 |
)% |
$ |
4,743 |
$ |
3,835 |
23.7 |
% |
$ |
5,504.2 |
$ |
5,278.9 |
4.3 |
% | ||||||||||||||||||||
|
Cross-Suez |
428 |
345 |
24.1 |
% |
$ |
3,568 |
$ |
3,639 |
(2.0 |
)% |
$ |
1,528.5 |
$ |
1,254.2 |
21.9 |
% | ||||||||||||||||||||
|
Atlantic-Europe |
496 |
619 |
(19.9 |
)% |
$ |
2,485 |
$ |
1,551 |
60.2 |
% |
$ |
1,231.3 |
$ |
960.7 |
28.2 |
% | ||||||||||||||||||||
|
Intra-Asia |
1,058 |
939 |
12.7 |
% |
$ |
1,840 |
$ |
1,826 |
0.8 |
% |
$ |
1,945.9 |
$ |
1,714.6 |
13.5 |
% | ||||||||||||||||||||
|
Latin America |
238 |
202 |
17.8 |
% |
$ |
3,120 |
$ |
2,430 |
28.4 |
% |
$ |
742.3 |
$ |
490.3 |
51.4 |
% | ||||||||||||||||||||
|
Total |
3,380 |
3,481 |
(2.9 |
)% |
$ |
3,240 |
$ |
2,786 |
16.3 |
% |
$ |
10,952.2 |
$ |
9,698.7 |
12.9 |
% | ||||||||||||||||||||
|
Year Ended December 31, |
||||||||||||||||
|
2021 |
Change |
% Change |
||||||||||||||
|
(in millions) |
||||||||||||||||
|
Income from voyages and related services |
$ |
12,561.6 |
$ |
10,728.7 |
1,832.9 |
17.1 |
% | |||||||||
|
Cost of voyages and related services: |
||||||||||||||||
|
Operating expenses and cost of services |
(4,764.5 |
) |
(3,905.9 |
) |
(858.6 |
) |
22.0 |
|||||||||
|
Depreciation |
(1,370.3 |
) |
(756.3 |
) |
(614.0 |
) |
81.2 |
|||||||||
|
Gross profit |
$ |
6,426.8 |
$ |
6,066.5 |
360.3 |
5.9 |
% | |||||||||
|
Year Ended December 31, |
||||||||||||
|
2021 |
2020 |
|||||||||||
|
(in millions) |
||||||||||||
|
Net cash generated from operating activities |
$ |
6,110.1 |
5,970.9 |
$ |
880.8 |
|||||||
|
Net cash used in investing activities |
(1,645.0 |
) |
(3,343.1 |
) |
(35.2 |
) | ||||||
|
Net cash used in financing activities |
(4,976.4 |
) |
(1,653.0 |
) |
(460.4 |
) | ||||||
|
Type of debt |
|
Original currency |
|
Fixed / Variable |
|
Effective interest (1) |
|
Year of maturity |
|
Face value |
|
Carrying amount | |||
|
(in millions)
| |||||||||||||||
|
Financial Debt: |
|||||||||||||||
|
Tranche E loan |
|
U.S. dollars |
|
Fixed |
|
|
|
|
|||||||
|
Other long term loans |
|
U.S. dollars |
|
Fixed |
|
7.6 |
%(2) |
2023 – 2030 |
|
119.4 |
|
119.4 | |||
|
Short-term credit from banks |
|
U.S. dollars |
|
Fixed |
|
5.9 |
% |
2023 |
|
53.0 |
|
53.0 | |||
|
Total |
$ |
172.4 |
$ |
172.4 | |||||||||||
|
Lease liabilities |
|
Mainly U.S. dollars |
|
Fixed |
|
7.7 |
%(2)
|
2023 – 2032 |
$ |
4,159.5 |
$ |
4,159.5 | |||
|
Total |
|
|
|
|
$ |
4,331.9 |
$ |
4,331.9 | |||||||
| (1) |
The effective interest rate is the rate that discounts estimated future cash payments or receipts through the contractual life of
the financial instrument to the net carrying amount of the financial instrument and does not necessarily reflect the contractual interest
rate. |
| (2) |
Based on weighted average. |
|
Name |
|
Age |
|
Position |
|
Executive officers |
|
|
|
|
|
|
61 |
|
Chief Executive Officer and President | |
|
|
50 |
|
Chief Financial Officer | |
|
Noam Nativ |
|
52 |
|
EVP General Counsel and Company Secretary |
|
David Arbel |
|
63 |
|
EVP Chief Operations Officer |
|
Yakov Baruch |
|
55 |
|
EVP Human Resources & Organization |
|
Eyal Ben-Amram |
|
60 |
|
EVP Chief Information Officer |
|
Saar Dotan |
|
53 |
|
EVP Countries and Business Development |
|
Assaf Tiran |
|
47 |
|
EVP Cross Suez and Atlantic BU |
|
Dan Hoffmann |
|
67 |
|
EVP Intra Asia Trade Business Unit |
|
Nissim Yochai |
|
64 |
|
EVP ZIM USA President & Latin America BU |
|
Hani Kalinski |
50 |
EVP Pacific BU | ||
|
Directors |
|
|
||
|
|
67 |
|
Chairman of the Board | |
|
Yair Caspi |
|
50 |
|
Director |
|
Liat Tennenholtz(2)
|
|
38 |
|
Director |
|
Nir Epstein(1)(2)
|
|
53 |
|
Director |
|
Flemming Robert Jacobs(1)(2)
|
|
79 |
|
Director |
|
Dr. Karsten Karl-Georg Liebing |
|
57 |
|
Director |
|
Birger Johannes Meyer-Gloeckner |
|
45 |
|
Director |
|
Yoav Moshe Sebba |
|
52 |
|
Director |
|
William (Bill) Shaul(1) (2)
|
|
61 |
|
Director |
| (1) |
Member of our audit committee. |
| (2) |
Member of our compensation committee. Nir Epstein served as a member of our Compensation Committee until December 6, 2021.
|
| • |
retain, oversee, compensate, evaluate and terminate our independent auditors, subject to the approval of the Board of Directors,
and to the extent required, to that of the shareholders; |
| • |
approve or, as required, pre-approve, all audit, audit-related and all permitted non-audit services and related compensation and
terms, other than de minimis non-audit services, to be performed by the independent registered public accounting firm; |
| • |
oversee the accounting and financial reporting processes of our company and audits of our financial statements, the effectiveness
of our internal control over financial reporting and prepare such reports as may be required of an audit committee under the rules and
regulations promulgated under the Exchange Act; |
| • |
review with management, and our independent auditor, as applicable, our annual, semi-annual and quarterly audited and unaudited financial
statements prior to publication and/or filing (or submission, as the case may be) to the SEC; |
| • |
recommend to the Board of Directors the retention, promotion, demotion and termination of the internal auditor, and the internal
auditor’s engagement fees and terms, in accordance with the Companies Law; |
| • |
approve the yearly or periodic work plan proposed by the internal auditor, and review the internal audit framework that exists
within the Company and the functioning of the internal audit function, as well as whether the internal auditor has the necessary tools
to fulfil his duties, giving attention to, inter alia, the special needs of the Company and its
size; |
| • |
review with our general counsel and/or external counsel, as deemed necessary, legal or regulatory matters that could have a material
impact on the financial statements or our compliance policies and procedures; |
| • |
establish policies and procedures with respect to transactions (other than transactions related to the compensation or terms of services)
between the company and officers, directors, or controlling shareholders, or affiliates thereof, or transactions that are not in the ordinary
course of the company’s business, and determine whether such transactions are extraordinary; |
| • |
establish, with respect to certain related party transactions, the obligation to conduct a competitive process or other process,
prior to engagement in such transaction and the audit committee may determine such obligation with respect to a certain type of transaction
according to certain parameters that it will establish once a year in advance; |
| • |
review and approve any engagements or transactions that require the audit committee’s approval under the Companies Law;
|
| • |
receive and retain reports of suspected business irregularities and legal compliance issues, and suggest to the Board of Directors
remedial courses of action; and |
| • |
establish procedures for the handling of employees’ complaints as to the management of our business and the protection to be
provided to such employees. |
| • |
recommend to the Board of Directors with respect to the approval of the compensation policy for directors and officers and, once
every three years, regarding any extensions to a compensation policy that was adopted for a period of more than three years;
|
| • |
review the implementation of the compensation policy and periodically recommend to the Board of Directors with respect to any amendments
or updates to the compensation policy; |
| • |
resolve whether or not to approve arrangements with respect to the terms of engagement and employment of officers and directors;
and |
| • |
exempt, under certain circumstances, the compensation terms of a candidate for chief executive officer from the requirement to obtain
shareholder approval. |
| • |
at least a majority of the shares of the non-controlling shareholders and shareholders that do not have a personal interest in the
approval, which are voted at the meeting, are voted in favor (disregarding abstentions); or |
| • |
the total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in such appointment,
which are voted against such appointment, does not exceed two percent of the aggregate voting rights in the company. |
| • |
the education, skills, experience, expertise, and accomplishments of the relevant director or officer; |
| • |
the director’s or officer’s position, responsibilities, and prior compensation agreements with him or her; |
| • |
the ratio between the cost of the terms of employment of an office holder and the cost of employment of other employees of the company,
including employees employed through contractors who provide services to the company, and in particular, the ratio between such cost to
the average and median salary of such employees of the company, as well as the impact of disparities between them on the working relationship
in the company; |
| • |
if the terms of engagement or employment include variable components — the possibility of reducing variable components
at the discretion of the Board of Directors and the possibility of setting a limit on the value of non-cash variable equity-based components;
and |
| • |
if the terms of engagement or employment include severance compensation — the term of engagement or employment of the
director or officer, the terms of his or her compensation during such period, the company’s performance during such period, his
or her individual contribution to the achievement of the company goals and the maximization of its profits, and the circumstances under
which he or she is leaving the company. |
| • |
with regards to variable components: |
| • |
with the exception of officers who report directly to the chief executive officer, determining the variable components on a long-term
performance basis and on measurable criteria; however, the company may determine that an immaterial part of the variable components of
the compensation package of a director or officer, or the total sum of such components if such sum is not higher than three monthly
salaries per annum, will be awarded based on non-measurable criteria, while taking into account such director’s or officer’s
contribution to the company; and |
| • |
the ratio between variable and fixed components, as well as the limit of the values of variable components at the time of their payment,
or in the case of equity-based compensation, at the time of grant. |
| • |
claw-back provisions under which the director or officer will be required to return to the company, according to terms to be set
forth in the compensation policy, any amounts paid as part of his or her terms of engagement or employment, if such amounts were paid
based on information later to be discovered to be wrong, and such information was restated in the company’s financial statements;
|
| • |
the minimum holding or vesting period of variable equity-based components to be set in the terms of engagement or employment, as
applicable, while taking into consideration long-term incentives; and |
| • |
a limit to retirement grants. |
|
Year ended December 31 |
||||||||||||
|
2022 |
2021 |
2020 |
||||||||||
|
Operational, administrative, and other |
3,619 |
3,334 |
2,832 |
|||||||||
|
Sales and marketing |
954 |
868 |
756 |
|||||||||
|
Information technology |
257 |
225 |
206 |
|||||||||
|
Total |
4,830 |
4,427 |
3,794 |
|||||||||
| • |
We must be, at all times, a company incorporated and registered in Israel, with our headquarters and principal and registered office
domiciled in Israel. |
| • |
Subject to certain exceptions, we must maintain a minimal fleet of 11 seaworthy vessels that are fully owned by us, either directly
or indirectly through our subsidiaries, at least three of which must be capable of carrying general cargo. Subject to certain exceptions,
any transfer of vessels in violation thereof shall be invalid unless approved in advance by the State of Israel pursuant to the mechanism
set forth in our articles of association. Currently, as a result of waivers received from the State of Israel, we own fewer vessels than
the minimum fleet requirement. |
| • |
At least a majority of the members of our Board of Directors, including the chairperson of the board and our chief executive officer,
must be Israeli citizens. |
| • |
The State of Israel must provide prior written consent for any holding or transfer or issuance of shares that confers possession
of 35% or more of our issued share capital, or that provides control over us, including as a result of a voting agreement. |
| • |
Any transfer of shares that confers its owner with a holding of more than 24% but not more than 35% of our issued share capital will
require an advance notice to the State of Israel which will include full details regarding the proposed transferor and transferee, the percentage
of shares to be held by the transferee after the transfer and relevant details regarding the transaction, including voting agreements
and agreements for the appointment of directors (if any). If the State of Israel shall be of the opinion that the transfer of shares may
possibly harm the security interests of the State of Israel or any of its vital interests or that it has not received the relevant information
for the purpose of reaching its decision, the State of Israel shall be entitled to serve notice, within 30 days, that it objects
to the transfer, giving reason for its objection. In such circumstances, the party requesting the transfer may initiate proceedings in
connection with this matter with the competent court, which will consider and rule on the matter. |
| • |
The State of Israel must consent in writing to any winding-up, merger or spin-off, except for certain mergers with subsidiaries that
would not impact the Special State Share or the minimal fleet. |
| • |
We must provide governance, operational and financial information to the State of Israel similar to information that we provide to
our ordinary shareholders. In addition, we must provide the State of Israel with particular information related to our compliance with
the terms of the Special State share and other information reasonably required to safeguard the State of Israel’s vital interests.
|
| • |
Any amendment, review or cancellation of the rights afforded to the State of Israel by the Special State Share must be approved in
writing by the State of Israel prior to its effectiveness. |
|
Ordinary Shares |
Percentage of |
Percentage of |
|||||||
|
Name of beneficial Owner |
|
Owned
|
|
Ordinary Shares |
|
Special State Share |
|
Special State Share owned
|
|
|
Principal Shareholders |
|||||||||
|
Kenon Holdings Ltd.(1)
|
|
24,843,478 |
|
20.7 |
% |
||||
|
State of Israel(2)
|
|
|
1 |
100 |
% | ||||
|
Executive Officers and Directors |
|
|
|||||||
|
* |
* |
||||||||
|
* |
* |
||||||||
|
David Arbel |
|
* |
|
* |
|
|
|
|
|
|
Yakov Baruch |
|
* |
|
* |
|
|
|
|
|
|
Eyal Ben-Amram |
|
* |
|
* |
|
|
|
|
|
|
Saar Dotan |
|
* |
|
* |
|
|
|
|
|
|
Dan Hoffmann |
|
* |
|
* |
|
|
|
|
|
|
Noam Nativ |
|
* |
|
* |
|
|
|
|
|
|
Nissim Yochai |
|
* |
|
* |
|
|
|
|
|
|
Assaf Tiran |
* |
|
* |
||||||
|
Hani Kalinski |
* |
|
* |
||||||
|
|
* |
|
* |
|
|
|
|
||
|
Yair Caspi |
|
* |
|
* |
|
|
|
|
|
|
Nir Epstein |
|
* |
|
* |
|
|
|
|
|
|
Flemming Robert Jacobs |
|
* |
|
* |
|
|
|
|
|
|
Dr. Karsten Karl-Georg Liebing |
|
* |
|
* |
|
|
|
|
|
|
Birger Johannes Meyer-Gloeckner |
|
* |
|
* |
|
|
|
|
|
|
Yoav Moshe Sebba |
|
* |
|
* |
|
|
|
|
|
|
William (Bill) Shaul |
|
* |
|
* |
|
|
|
|
|
|
Liat Tennenholtz |
|
* |
|
* |
|
|
|
|
| (1) |
Based on information provided by such shareholder in its filing on Schedule 13G on January 25, 2023. Kenon Holdings Ltd., or
Kenon, is a publicly traded corporation (NYSE and TASE: KEN). The address for Kenon Holdings Ltd. is 1 Temasek Avenue, #37‑02B
Millenia Tower, Singapore 039192. |
| (2) |
For a description of the different voting rights held by the holder of the Special State Share, see “Item 6.E— Share
ownership - The Special State Share.” |
| • |
information on the advisability of a given action brought for his or her approval or performed by virtue of his or her position;
and |
| • |
all other important information pertaining to these actions. |
| • |
refrain from any conflict of interest between the performance of his or her duties in the company and his or her personal affairs;
|
| • |
refrain from any activity that is competitive with the business of the company; |
| • |
refrain from exploiting any business opportunity of the company in order to receive a personal gain for himself or herself or others;
and |
| • |
disclose to the company any information or documents relating to the company’s affairs which the director or officer received
as a result of his or her position as a director or officer. |
| • |
at least a majority of the shares held by all shareholders who do not have a personal interest in the approval of the transaction
and who are present and voting at the meeting approves the transaction, excluding abstentions; or |
| • |
the shares voted against the transaction by shareholders who have no personal interest in the transaction and who are present and
voting at the meeting do not exceed 2% of the voting rights in the company. |
| • |
an amendment to the company’s articles of association; |
| • |
an increase of the company’s authorized share capital; |
| • |
a merger; or |
| • |
interested party transactions that require shareholder approval. |
| 1. |
The audit committee and the Board of Directors have determined that chartering of vessels is conducted in the ordinary course of
the Company’s business and in the shipping industry as a whole. |
| 2. |
The contemplated charter must be compatible with the Company’s operational and business needs (including age, size, technical
specifications, original designation, charter period, etc.), all in the Company’s sole discretion, given the Company’s work
and strategic plans. |
| 3. |
The cumulative number of vessels that are chartered in from the Related Parties shall not exceed: |
| 4. |
in the event the total fleet of the Company (either owned vessels or chartered vessels) consists of 100 vessels or less, the lower
of (i) 20 vessels or (ii) 25% of the total fleet; and (B) in the event the total fleet of the Company (either owned vessels
or chartered vessels) consists of more than 100 vessels, 25% of the total fleet. |
| 5. |
The scope of the contemplated charter from the Related Party at the date of approval of the said charter must meet the following
cumulative parameters: |
| • |
The total charter obligations of the Company from the relevant charter transaction with the Related Party divided by the Company’s
total charter obligations from all vessels chartered by the Company, including the charter proposed to be approved with the Related Party,
shall not exceed 5%. For the purpose of this parameter, the last contractually agreed upon charter periods, including any option periods,
shall be taken into account in the calculation of the charter costs. |
| • |
The total charter obligations of the Company from all vessels chartered from the Related Party (including the contemplated charter)
divided by the Company’s total charter obligations from all vessels chartered by the Company (including from Related Parties) shall
not exceed 22%. For the purpose of this parameter, the last contractually agreed upon charter periods, including any option periods, shall
be taken into account in the calculation of the charter costs. |
| 6. |
Charters from the Related Parties shall be made on market terms, which shall be determined based on relevant market data concerning
the most recent charter transactions in the market of similar nature, and on the experience and expertise of the members of the audit
committee and the Board. In the determination of similar charters, the audit committee and Board of Directors will take into account the
use of vessels as similar as possible to the vessel involved in the contemplated charter, and relevant parameters including: age, size,
technical specifications, charter speed, fuel consumption, etc., all subject to necessary adjustments. |
| 7. |
The audit committee will review the Procedure on an annual basis in order to confirm the parameters detailed therein comply with
the classifications of the charters of vessels from Related Parties as non-Extraordinary Transactions. |
| • |
The services to be provided by us may include transportation of containers services, including related land transportation, custom
clearance, demurrage and detention services; |
| • |
Each engagement shall reflect, upon the date of the engagement, based on a reasonable best estimate of us, at minimum, either (i) a
positive net operating revenue, or (ii) a positive return on variable costs for us; |
| • |
All the transactions entered into during a specific calendar year, on an aggregate basis, will result in a net profit to us;
|
| • |
The maximum payment for all such services shall not exceed $20 million per year, while a deviation of up to $5 million between
the years shall not be considered as a breach of this condition. In any event, the overall payment during the 5‑year term of
the resolution will not exceed $100 million; |
| • |
The specific transactions entered into by us in accordance with this resolution will be reviewed by the audit committee on a semi-annual
basis, which will supervise the implementation of this resolution as well as analyze the actual profitability of us from these transactions
on an annual basis and will have the authority to instruct the cessation of such engagements or propose amendments to this resolution
to our shareholders. |
| (i) |
have a controlling interest of more than 25% in any of the means of control of such non-Israeli corporation or (ii) are the
beneficiaries of, or are entitled to, 25% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly.
Such exemption is not applicable to a person whose gains from selling or otherwise disposing of the shares are deemed to be a business
income. |
| • |
certain financial institutions; |
| • |
dealers or traders in securities who use a mark-to-market method of tax accounting; |
| • |
persons holding our ordinary shares as part of a hedging transaction, straddle, wash sale, conversion transaction or integrated transaction,
or persons entering into a constructive sale with respect to |
| • |
our ordinary shares; |
| • |
persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; |
| • |
entities classified as partnerships for U.S. federal income tax purposes; |
| • |
tax-exempt entities, including “individual retirement accounts” and “Roth IRAs”; |
| • |
persons that own or are deemed to own 10% or more of our voting stock or of the total value of our stock; |
| • |
persons who acquired our ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation; or
|
| • |
persons holding shares in connection with a trade or business conducted outside of the United States. |
| • |
a citizen or individual resident of the United States; |
| • |
a corporation (or other entity taxable as a corporation) created or organized in or under the laws of the United States, any state
therein or the District of Columbia; or |
| • |
an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. |
| • |
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of our assets; |
| • |
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations
of our management and directors; and |
| • |
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets
that could have a material effect on the financial statements. |
|
2022 |
2021 |
|||||||
|
(in thousands of US$) |
||||||||
|
Audit fees (1) |
2,138 |
2,644 |
||||||
|
Audit-related fees (2)
|
135 |
151 |
||||||
|
Tax fees (3) |
308 |
307 |
||||||
|
All other fees |
256 |
123 |
||||||
|
Total |
2,837 |
3,225 |
||||||
| (1) |
Audit fees are the aggregate fees billed or expected to be billed for the audit of our annual financial statements. This category
also includes services that are normally provided by an auditor for statutory or regulatory filings, such as consents and review of documents
filed with the SEC. |
| (2) |
Audit-related fees are the aggregate fees billed for assurance and related services rendered during the years ended December 31,
2022 and 2021, that are traditionally performed by an auditor and are reasonably related to the performance of the audit and are not reported
under audit fees. |
| (3) |
Tax fees are the aggregate fees billed for professional services rendered during the years ended December 31, 2022 and 2021, for
tax compliance, tax advice, and tax planning. |
|
Exhibit No. |
|
Description | |
|
101 |
|
The following materials from our Annual Report on Form 20‑F for the year ended December 31,
2022 formatted in iXBRL (Inline Extensible Business Reporting Language) are furnished herewith: (i) the Reports of Independent Registered
Public Accounting Firms, (ii) the consolidated statements of financial position, (iii) the consolidated income statements, (iv) the
consolidated statements of comprehensive loss, (v) the consolidated statements of changes in equity, (vi) the consolidated statements
of cash flows, and (vii) the notes to consolidated financial statements, tagged as blocks of text and in detail. | |
|
104 |
The cover page from ZIM Integrated Shipping Services Ltd.’s Annual Report on Form 20-F for the year
ended December 31, 2022 formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101 | ||
| * |
| ** |
Furnished |
|
|
ZIM INTEGRATED SHIPPING SERVICES LTD. | ||
|
|
| ||
|
|
By: |
/s/ Eli Glickman | |
|
|
|
Name: |
|
|
|
|
Title: |
President and Chief Executive Officer |
|
Page
|
|
|
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS (PCAOB ID No. i 1057)
|
F-3 - F-8
|
|
FINANCIAL STATEMENTS:
|
|
|
F-9
|
|
|
F-10
|
|
|
F-11
|
|
|
F-12
|
|
|
F-13 - F-14
|
|
|
F-15 - F-77
|
|
December 31
|
||||||||||||
|
2022
|
2021
|
|||||||||||
|
Note
|
US $ in millions
|
|||||||||||
|
Assets
|
||||||||||||
|
Vessels
|
5
|
i 4,409.9
|
i 2,957.8
|
|||||||||
|
Containers and handling equipment
|
5
|
i 1,242.8
|
i 1,365.8
|
|||||||||
|
Other tangible assets
|
5
|
i 98.5
|
i 68.9
|
|||||||||
|
Intangible assets
|
6
|
i 92.9
|
i 73.8
|
|||||||||
|
Investments in associates
|
i 22.0
|
i 12.2
|
||||||||||
|
Other investments
|
9
|
i 1,373.2
|
i 169.2
|
|||||||||
|
Other receivables
|
8
|
i 112.1
|
i 107.2
|
|||||||||
|
Deferred tax assets
|
24(c
|
)
|
i 2.3
|
i 2.1
|
||||||||
|
Total non-current assets
|
i 7,353.7
|
i 4,757.0
|
||||||||||
|
Inventories
|
i 190.7
|
i 119.0
|
||||||||||
|
Trade and other receivables
|
8
|
i 825.7
|
i 1,278.0
|
|||||||||
|
Other investments
|
9
|
i 2,233.1
|
i 2,144.5
|
|||||||||
|
Cash and cash equivalents
|
10
|
i 1,022.1
|
i 1,543.3
|
|||||||||
|
Total current assets
|
i 4,271.6
|
i 5,084.8
|
||||||||||
|
Total assets
|
i 11,625.3
|
i 9,841.8
|
||||||||||
|
Equity
|
||||||||||||
|
Share capital and reserves
|
11
|
i 1,987.7
|
i 2,011.4
|
|||||||||
|
Retained earnings
|
i 3,901.9
|
i 2,580.6
|
||||||||||
|
Equity attributable to owners of the Company
|
i 5,889.6
|
i 4,592.0
|
||||||||||
|
Non-controlling interests
|
i 6.3
|
i 7.5
|
||||||||||
|
Total equity
|
i 5,895.9
|
i 4,599.5
|
||||||||||
|
Liabilities
|
||||||||||||
|
Lease liabilities
|
7
|
i 2,778.7
|
i 2,178.7
|
|||||||||
|
Loans and other liabilities
|
12
|
i 91.9
|
i 120.8
|
|||||||||
|
Employee benefits
|
13
|
i 45.2
|
i 65.6
|
|||||||||
|
Deferred tax liabilities
|
24(c
|
)
|
i 151.4
|
i 120.6
|
||||||||
|
Total non-current liabilities
|
i 3,067.2
|
i 2,485.7
|
||||||||||
|
Trade and other payables
|
14
|
i 896.2
|
i 1,086.3
|
|||||||||
|
Provisions
|
15
|
i 50.2
|
i 28.3
|
|||||||||
|
Contract liabilities
|
i 238.9
|
i 618.3
|
||||||||||
|
Lease liabilities
|
7
|
i 1,380.8
|
i 893.0
|
|||||||||
|
Loans and other liabilities
|
12
|
i 96.1
|
i 130.7
|
|||||||||
|
Total current liabilities
|
i 2,662.2
|
i 2,756.6
|
||||||||||
|
Total liabilities
|
i 5,729.4
|
i 5,242.3
|
||||||||||
|
Total equity and liabilities
|
i 11,625.3
|
i 9,841.8
|
||||||||||
|
/s/ Yair Seroussi |
/s/ Eli Glickman |
/s/ Xavier Destriau |
||
|
Chairman of the Board
|
President & Chief
|
Chief Financial Officer
|
||
|
of Directors
|
Executive Officer
|
F - 9
|
Year ended December 31
|
||||||||||||||||
|
2022
|
2021
|
2020
|
||||||||||||||
|
Note
|
US $ in millions
|
|||||||||||||||
|
Income from voyages and related services
|
16
|
i 12,561.6
|
i 10,728.7
|
i 3,991.7
|
||||||||||||
|
Cost of voyages and related services
|
||||||||||||||||
|
Operating expenses and cost of services
|
17
|
( i 4,764.5
|
)
|
( i 3,905.9
|
)
|
( i 2,835.1
|
)
|
|||||||||
|
Depreciation
|
22
|
( i 1,370.3
|
)
|
( i 756.3
|
)
|
( i 291.6
|
)
|
|||||||||
|
Gross profit
|
i 6,426.8
|
i 6,066.5
|
i 865.0
|
|||||||||||||
|
Other operating income
|
18
|
i 48.9
|
i 14.5
|
i 12.6
|
||||||||||||
|
Other operating expenses
|
19
|
( i 0.9
|
)
|
( i 1.0
|
)
|
i 4.3
|
||||||||||
|
General and administrative expenses
|
20
|
( i 338.3
|
)
|
( i 267.7
|
)
|
( i 163.2
|
)
|
|||||||||
|
Share of profits (loss) of associates
|
( i 0.7
|
)
|
i 4.0
|
i 3.3
|
||||||||||||
|
Results from operating activities
|
i 6,135.8
|
i 5,816.3
|
i 722.0
|
|||||||||||||
|
Finance income
|
23(a
|
)
|
i 130.9
|
i 18.8
|
i 8.1
|
|||||||||||
|
Finance expenses
|
23(b
|
)
|
( i 239.4
|
)
|
( i 175.6
|
)
|
( i 189.3
|
)
|
||||||||
|
Net finance expenses
|
( i 108.5
|
)
|
( i 156.8
|
)
|
( i 181.2
|
)
|
||||||||||
|
Profit before income taxes
|
i 6,027.3
|
i 5,659.5
|
i 540.8
|
|||||||||||||
|
Income taxes
|
24
|
( i 1,398.3
|
)
|
( i 1,010.4
|
)
|
( i 16.6
|
)
|
|||||||||
|
Profit for the year
|
i 4,629.0
|
i 4,649.1
|
i 524.2
|
|||||||||||||
|
Attributable to:
|
||||||||||||||||
|
Owners of the Company
|
i 4,619.4
|
i 4,640.3
|
i 518.0
|
|||||||||||||
|
Non-controlling interests
|
i 9.6
|
i 8.8
|
i 6.2
|
|||||||||||||
|
Profit for the year
|
i 4,629.0
|
i 4,649.1
|
i 524.2
|
|||||||||||||
|
Earnings per share (US$)
|
||||||||||||||||
|
Basic earnings per 1 ordinary share
|
11(d
|
)
|
i 38.49
|
i 40.31
|
i 5.18
|
|||||||||||
|
Diluted earnings per 1 ordinary share
|
11(d
|
)
|
i 38.35
|
i 39.02
|
i 4.96
|
|||||||||||
F - 10
|
Year ended December 31
|
||||||||||||
|
2022
|
2021
|
2020
|
||||||||||
|
US $ in millions
|
||||||||||||
|
Profit for the year
|
i 4,629.0
|
i 4,649.1
|
i 524.2
|
|||||||||
|
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
|
( i 18.0
|
)
|
( i 7.8
|
)
|
i 3.9
|
|||||||
|
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax
|
( i 34.6
|
)
|
( i 0.7
|
)
|
||||||||
|
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, reclassified to profit and loss
|
i 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
|
( i 1.9
|
)
|
( i 0.2
|
)
|
i 0.6
|
|||||||
|
Defined benefit pension plans actuarial gains, net of tax
|
i 8.5
|
i 1.1
|
i 0.2
|
|||||||||
|
Other comprehensive income for the year, net of tax
|
( i 43.4
|
)
|
( i 7.6
|
)
|
i 4.7
|
|||||||
|
Total comprehensive income for the year
|
i 4,585.6
|
i 4,641.5
|
i 528.9
|
|||||||||
|
Attributable to:
|
||||||||||||
|
Owners of the Company
|
i 4,578.2
|
i 4,636.8
|
i 523.8
|
|||||||||
|
Non-controlling interests
|
i 7.4
|
i 4.7
|
i 5.1
|
|||||||||
|
Total comprehensive income for the year
|
i 4,585.6
|
i 4,641.5
|
i 528.9
|
|||||||||
F - 11
|
Attribute to the owners of the Company
|
||||||||||||||||||||||||||||
|
Share
capital
|
General
Reserves (**)
|
Translation
reserve
|
Retained
earnings
(deficit)
|
Total
|
Non-controlling
interests
|
Total
Equity
|
||||||||||||||||||||||
|
US $ in millions
|
||||||||||||||||||||||||||||
|
Balance at December 31, 2021
|
i 923.2
|
i 1,107.9
|
( i 19.7
|
)
|
i 2,580.6
|
i 4,592.0
|
i 7.5
|
i 4,599.5
|
||||||||||||||||||||
|
Initial application of amendment to IAS 37 (*)
|
( i 3.3
|
)
|
( i 3.3
|
)
|
( i 3.3
|
)
|
||||||||||||||||||||||
|
Balance at January 1, 2022
|
i 923.2
|
i 1,107.9
|
( i 19.7
|
)
|
i 2,577.3
|
i 4,588.7
|
i 7.5
|
i 4,596.2
|
||||||||||||||||||||
|
Profit for the year
|
i 4,619.4
|
i 4,619.4
|
i 9.6
|
i 4,629.0
|
||||||||||||||||||||||||
|
Other comprehensive income for the year, net of tax
|
( i 33.9
|
)
|
( i 15.8
|
)
|
i 8.5
|
( i 41.2
|
)
|
( i 2.2
|
)
|
( i 43.4
|
)
|
|||||||||||||||||
|
Exercise of options
|
i 2.7
|
( i 2.7
|
)
|
|||||||||||||||||||||||||
|
Share-based compensation
|
i 25.8
|
i 25.8
|
i 25.8
|
|||||||||||||||||||||||||
|
Dividend to owners of the Company
|
( i 3,303.3
|
)
|
( i 3,303.3
|
)
|
( i 3,303.3
|
)
|
||||||||||||||||||||||
|
Acquisition of subsidiary with non-controlling interest
|
i 0.2
|
i 0.2
|
( i 0.2
|
)
|
||||||||||||||||||||||||
|
Dividend to non-controlling interests in subsidiaries
|
( i 8.4
|
)
|
( i 8.4
|
)
|
||||||||||||||||||||||||
|
Balance at December 31, 2022
|
i 925.9
|
i 1,097.3
|
( i 35.5
|
)
|
i 3,901.9
|
i 5,889.6
|
i 6.3
|
i 5,895.9
|
||||||||||||||||||||
|
Balance at January 1, 2021
|
i 700.3
|
i 1,106.5
|
( i 16.0
|
)
|
( i 1,523.5
|
)
|
i 267.3
|
i 7.2
|
i 274.5
|
|||||||||||||||||||
|
Profit for the year
|
i 4,640.3
|
i 4,640.3
|
i 8.8
|
i 4,649.1
|
||||||||||||||||||||||||
|
Other comprehensive income for the year, net of tax
|
( i 3.7
|
)
|
i 0.2
|
( i 3.5
|
)
|
( i 4.1
|
)
|
( i 7.6
|
)
|
|||||||||||||||||||
|
Issuance of share capital, net of issuance costs
|
i 203.5
|
i 203.5
|
i 203.5
|
|||||||||||||||||||||||||
|
Share-based compensation
|
i 20.8
|
i 20.8
|
i 20.8
|
|||||||||||||||||||||||||
|
Exercise of options
|
i 19.4
|
( i 19.4
|
)
|
|||||||||||||||||||||||||
|
Dividend to owners of the Company
|
( i 536.4
|
)
|
( i 536.4
|
)
|
( i 536.4
|
)
|
||||||||||||||||||||||
|
Acquisition of subsidiary with non-controlling interest
|
i 0.3
|
i 0.3
|
||||||||||||||||||||||||||
|
Dividend to non-controlling interests in subsidiaries
|
( i 4.7
|
)
|
( i 4.7
|
)
|
||||||||||||||||||||||||
|
Balance at December 31, 2021
|
i 923.2
|
i 1,107.9
|
( i 19.7
|
)
|
i 2,580.6
|
i 4,592.0
|
i 7.5
|
i 4,599.5
|
||||||||||||||||||||
|
Balance at January 1, 2020
|
i 700.3
|
i 1,105.4
|
( i 21.1
|
)
|
( i 2,042.2
|
)
|
( i 257.6
|
)
|
i 5.4
|
( i 252.2
|
)
|
|||||||||||||||||
|
Profit for the year
|
i 518.0
|
i 518.0
|
i 6.2
|
i 524.2
|
||||||||||||||||||||||||
|
Other comprehensive income for the year, net of tax
|
i 5.1
|
i 0.7
|
i 5.8
|
( i 1.1
|
)
|
i 4.7
|
||||||||||||||||||||||
|
Transaction with an interested party, net of tax
|
i 0.6
|
i 0.6
|
i 0.6
|
|||||||||||||||||||||||||
|
Share-based compensation
|
i 0.5
|
i 0.5
|
i 0.5
|
|||||||||||||||||||||||||
|
Dividend to non-controlling interests in subsidiaries
|
( i 3.3
|
)
|
( i 3.3
|
)
|
||||||||||||||||||||||||
|
Balance at December 31, 2020
|
i 700.3
|
i 1,106.5
|
( i 16.0
|
)
|
( i 1,523.5
|
)
|
i 267.3
|
i 7.2
|
i 274.5
|
|||||||||||||||||||
F - 12
|
Year ended December 31
|
||||||||||||||||
|
2022
|
2021
|
2020
|
||||||||||||||
|
Note
|
US $ in millions
|
|||||||||||||||
|
Cash flows from operating activities
|
||||||||||||||||
|
Profit for the year
|
i 4,629.0
|
i 4,649.1
|
i 524.2
|
|||||||||||||
|
Adjustments for:
|
||||||||||||||||
|
Depreciation and amortization
|
22
|
i 1,396.3
|
i 779.2
|
i 314.1
|
||||||||||||
|
Impairment loss (recovery) in respect of tangible assets
|
19
|
( i 4.3
|
)
|
|||||||||||||
|
Net finance expenses
|
23
|
i 108.5
|
i 156.8
|
i 181.2
|
||||||||||||
|
Share of profits and change in fair value of investees
|
( i 2.1
|
)
|
( i 4.7
|
)
|
( i 4.1
|
)
|
||||||||||
|
Capital gains, net
|
18
|
( i 42.7
|
)
|
( i 8.7
|
)
|
( i 8.8
|
)
|
|||||||||
|
Income taxes
|
24
|
i 1,398.3
|
i 1,010.4
|
i 16.6
|
||||||||||||
|
Other non-cash items
|
i 39.7
|
i 20.8
|
||||||||||||||
|
i 7,527.0
|
i 6,602.9
|
i 1,018.9
|
||||||||||||||
|
Change in inventories
|
( i 71.7
|
)
|
( i 66.8
|
)
|
i 8.1
|
|||||||||||
|
Change in trade and other receivables
|
i 496.6
|
( i 766.5
|
)
|
( i 204.5
|
)
|
|||||||||||
|
Change in trade and other payables including contract liabilities
|
( i 325.7
|
)
|
i 555.9
|
i 68.8
|
||||||||||||
|
Change in provisions and employee benefits
|
i 15.9
|
i 6.6
|
( i 2.2
|
)
|
||||||||||||
|
i 115.1
|
( i 270.8
|
)
|
( i 129.8
|
)
|
||||||||||||
|
Dividends received
|
i 0.9
|
i 4.4
|
i 4.4
|
|||||||||||||
|
Interest received
|
i 53.2
|
i 3.5
|
i 2.3
|
|||||||||||||
|
Income taxes paid
|
( i 1,586.1
|
)
|
( i 369.1
|
)
|
( i 15.0
|
)
|
||||||||||
|
Net cash generated from operating activities
|
i 6,110.1
|
i 5,970.9
|
i 880.8
|
|||||||||||||
|
Cash flows from investing activities
|
||||||||||||||||
|
Proceeds from sale of tangible assets, intangible assets and interest in investees
|
i 48.1
|
i 10.9
|
i 6.7
|
|||||||||||||
|
Acquisition and capitalized expenditures of tangible assets, intangible assets and interest in investees
|
( i 345.5
|
)
|
( i 1,005.0
|
)
|
( i 42.7
|
)
|
||||||||||
|
Acquisition of investment instruments, net
|
( i 1,433.1
|
)
|
( i 182.5
|
)
|
||||||||||||
|
Change in other receivables
|
( i 20.2
|
)
|
( i 101.8
|
)
|
||||||||||||
|
Change in other investments (mainly deposits), net
|
i 105.7
|
( i 2,064.7
|
)
|
i 0.8
|
||||||||||||
|
Net cash used in investing activities
|
( i 1,645.0
|
)
|
( i 3,343.1
|
)
|
( i 35.2
|
)
|
||||||||||
F - 13
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Year ended December 31
|
||||||||||||||||
|
2022
|
2021
|
2020
|
||||||||||||||
|
Note
|
US $ in millions
|
|||||||||||||||
|
Cash flows from financing activities
|
||||||||||||||||
|
Receipt of long-term loans and other long-term liabilities
|
i 59.2
|
i 50.0
|
||||||||||||||
|
Issuance of share capital, net of issuance costs
|
11(a
|
)
|
i 205.4
|
|||||||||||||
|
Sale and lease back transactions
|
i 9.1
|
|||||||||||||||
|
Repayment of lease liabilities and borrowings
|
12(d
|
)
|
( i 1,449.4
|
)
|
( i 1,191.3
|
)
|
( i 336.3
|
)
|
||||||||
|
Change in short-term loans
|
( i 53.5
|
)
|
( i 16.0
|
)
|
i 6.1
|
|||||||||||
|
Dividend paid to non-controlling interests
|
( i 8.4
|
)
|
( i 4.7
|
)
|
( i 3.3
|
)
|
||||||||||
|
Dividend paid to owners of the company
|
( i 3,303.3
|
)
|
( i 536.4
|
)
|
||||||||||||
|
Interest paid
|
( i 221.0
|
)
|
( i 160.0
|
)
|
( i 136.0
|
)
|
||||||||||
|
Net cash used in financing activities
|
( i 4,976.4
|
)
|
( i 1,653.0
|
)
|
( i 460.4
|
)
|
||||||||||
|
Net change in cash and cash equivalents
|
( i 511.3
|
)
|
i 974.8
|
i 385.2
|
||||||||||||
|
Cash and cash equivalents at beginning of the year
|
i 1,543.3
|
i 570.4
|
i 182.8
|
|||||||||||||
|
Effect of exchange rate fluctuation on cash held
|
( i 9.9
|
)
|
( i 1.9
|
)
|
i 2.4
|
|||||||||||
|
Cash and cash equivalents at the end of the year
|
10
|
i 1,022.1
|
i 1,543.3
|
i 570.4
|
||||||||||||
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.
(1) The container shipping industry continues to be characterized by volatility in freight rates, charter rates and bunker prices, accompanied by significant uncertainties in the global trade (including the implications of the ongoing military conflict between Russia and Ukraine, the rise of inflation in certain countries, or the continuing trade restrictions between the US and China). In addition, regulators in certain jurisdictions have become more active in their regulatory oversight over our industry, through change in regulations and interpretation of related rules.
In June 2022, the US administration published the ‘Ocean Shipping Reform Act of 2022’, promoting an increased regulatory supervision over maritime shipping carriers and others in the shipping industry, mainly in respect of demurrage and detention charges.
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, although remained at levels which continued to enable the Company to further strengthen its capital structure over the period.
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 participating in partnerships and cooperation agreements and by upgrading its customer’s offerings, whilst seeking operational excellence and cost efficiencies.
(2) Further to the Company’s operational cooperation with the “2M” alliance initiated in 2018, the Company announced in February 2022, that the 2M alliance partners (Maersk and MSC, two leading shipping liner companies) and the Company formally agreed to extend their existing operational collaboration agreement, based on a full slot exchange and vessel sharing agreement, on the Asia – US East Coast and Asia – US Gulf Coast trades. The parties also agreed to terminate their collaboration in the Asia to Mediterranean and Pacific North – West trades, in which ZIM launched a new independent service to address its customers' needs. The amended agreement with the 2M alliance partners became effective on April 2, 2022, while both parties may terminate the agreement by providing a six-month prior written notice following the initial 12-month period from the effective date of the amended agreement. In January 2023 the members of the 2M Alliance announced the termination of the 2M Alliance in 2025.
(3) In August 2022, the Company announced a long-term agreement with Shell NA LNG, LLC for the purpose of supply marine liquefied natural gas (LNG). The agreement, committing the parties for a period of i ten years, will secure the supply of LNG for i ten i 15,000 TEU LNG-fueled vessels that are expected to enter into service during 2023-2024 and be deployed on the Asia - US East Coast trade (in respect of the Company’s commitments, see also Note 26).
F - 15
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 Reporting entity (cont'd)
(b) Financial position (cont’d)
(4) In November 2022, the Company early repaid in full its Tranche-E loan for a total consideration of US$ i 66 million (see also Notes 12 and 23(b)).
(5) Charter agreements:
In January 2022, the Company entered into an agreement with a related-party shipping company for an i eight-year charter of i three i 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels, for a total consideration of approximately US$ i 400 million. The vessels are scheduled to be delivered during the first and second quarters of 2024.
In February 2022, the Company entered into an agreement with Navios Maritime Partners L.P. for chartering a total of i thirteen container vessels for a term of approximately i five years, in a total consideration of approximately US$ i 870 million. The agreement comprises five secondhand vessels at the size range of i 3,500- i 4,360 TEU, all of which were delivered during 2022, deployed in trades between Asia and Africa, and i eight i 5,300 TEU newbuild vessels, scheduled to be delivered between the third quarter of 2023 and the fourth quarter of 2024.
In March 2022, the Company entered into an agreement with MPC Container Ships ASA and MPC Capital AG, for chartering of i six i 5,500 TEU newbuild vessels for a period of i seven years, in a total consideration of approximately US$ i 600 million. The vessels are scheduled to be delivered between May 2023 and February 2024.
As part of its ongoing operational needs, the Company continued to charter vessels for additional periods through new and extended chartering arrangements (see also Notes 7 and 26).
(6) Fleet acquisitions:
Further to the purchase agreements of eight second-hand vessels the Company entered into during the second half of 2021, all related vessels were delivered to the Company, including five of such vessels delivered during 2022.
(7) Dividends:
In April, June, September and December 2022, further to the approval of the Company’s Board of Directors, the Company distributed dividends in amounts of US$ i 2,037 million, US$ i 342 million, US$ i 570 million and US$ i 354 million, reflecting US$ i 17.00, US$ i 2.85, US$ i 4.75 and US$ i 2.95 per ordinary share, respectively.
In March 2023, in accordance with the Company’s dividend policy, the Company’s Board of Directors approved a dividend distribution of approximately US$ i 6.40 per ordinary share (or approximately US$ i 769 million, considering the number of ordinary shares outstanding as of December 31, 2022). The dividend is scheduled to be paid on April 3, 2023, to all holders of ordinary shares on record as of March 24, 2023.
Since the foregoing declared dividend amount per share constitutes more than 25% of the Company’s ordinary share market price on the declaration date (March 13, 2023), according to the NYSE rules, the ex-dividend date with respect to this dividend distribution will be April 4, 2023.
F - 16
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
| 2 |
Basis of Preparation
|
| (a) |
Statement of compliance
These Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by IASB. The Board of Directors approved the Financial Statements for issue on March 13, 2023.
|
| (b) |
Basis of measurement
|
| - |
Financial instruments measured at fair value through profit or loss
|
| - |
Financial instruments measured at fair value through other comprehensive income
|
| - |
Deferred tax assets and liabilities
|
| - |
Provisions
|
| - |
Assets and liabilities in respect of employee benefits
|
| - |
Investments in associates
|
| (c) |
Use of estimates and judgements
|
| (d) |
Functional and presentation currency
|
| (e) |
Operating cycle
|
F - 17
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2 Basis of Preparation (cont’d)
| (f) |
Changes in accounting guidance
|
F - 18
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and have been applied consistently by Group entities, unless indicated otherwise.
|
(a) |
Basis of consolidation |
The Group implements the acquisition method to all business combinations. The acquisition date is the date on which the acquirer obtains control over the acquiree. An investor controls an investee when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Substantive rights held by the Group and by others are taken into account in assessing control. The Group recognizes goodwill at acquisition according to the fair value of the consideration transferred including any amounts recognized in respect of non-controlling interests in the acquiree less the net amount of the identifiable assets acquired and the liabilities assumed.
The consideration transferred includes the fair value of the assets transferred to the previous owners of the acquiree and the liabilities incurred by the acquirer to the previous owners of the acquiree. In a step acquisition, the difference between the acquisition date fair value of the Group’s pre-existing equity rights in the acquiree and the related carrying amount at that date is recognized in profit or loss under other income or expenses.
Costs associated with the acquisition that were incurred by the acquirer in the business combination such as: finder’s fees, advisory, legal, valuation and other professional or consulting fees are expensed in the period the services are received.
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies applied by the Group.
Non-controlling interests reflects the equity of a subsidiary that cannot be attributed, directly or indirectly, to the parent company.
Measurement of non-controlling interests on the date of the business combination
Non-controlling interests that are instruments that give rise to a present ownership interest and entitle the holder to a share of net assets in the event of liquidation (for example: ordinary shares), are measured at the date of the business combination at either fair value or their proportionate interest in the identifiable assets and liabilities of the acquiree, on a transaction-by-transaction basis.
Allocation of profit or loss and other comprehensive income to the shareholders
Profit or loss and any part of other comprehensive income are allocated to the owners of the Company and the non-controlling interests, even when this results with a negative balance of the non-controlling interests.
F - 19
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(a) |
Basis of consolidation (cont’d) |
Upon the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. If the Group retains any interest in the former subsidiary, then such interest is measured at fair value at the date that control is lost. The difference between; (i) the sum of the proceeds and fair value of the retained interest, and (ii) the derecognized balances, is recognized in profit or loss under other income or other expenses. Subsequently the retained interest is accounted for as an equity-accounted investee or as a financial asset in accordance with the provisions of IAS 28 and IFRS 9, depending on the level of influence retained by the Group in the former subsidiary.
The amounts recognized in capital reserves through other comprehensive income with respect to the former subsidiary are reclassified to profit or loss or to retained earnings in the same manner that would have been applicable if the subsidiary had itself realized the same assets or liabilities.
Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating activities. Significant influence is presumed to exist when the Group holds between 20% and 50% of voting rights in another entity. In assessing significant influence, potential voting rights that are currently exercisable or convertible into shares of the investee are taken into account.
Associates are accounted for using the equity method (equity accounted investees) and are recognized initially at cost. The cost of the investment includes transaction costs. The consolidated financial statements include the Company’s share of the income and expenses in profit or loss and of other comprehensive income of equity accounted investees, after adjustments to align the accounting policies with those of the Company, from the date that significant influence commences until the date that significant influence ceases.
When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term interests that form part thereof, is reduced to zero. When the Company’s share of long-term interests that form a part of the investment in the investee is different from its share in the investee’s equity, the Group continues to recognize its share of the investee’s losses, after the equity investment was reduced to zero, according to its economic interest in the long-term interests, after the aforesaid interests were reduced to zero. The recognition of further losses is discontinued except to the extent that the Group has an obligation to support the investee or has made payments on behalf of the investee.?
When the Group increases its interest in an associated company accounted for by the equity method while retaining significant influence, it implements the acquisition method only with respect to the additional interest obtained whereas the previous interest remains the same. When there is a decrease in the interest in an associated company accounted for by the equity method while retaining significant influence, the Group derecognizes a proportionate part of its investment and recognizes in profit or loss a gain or loss from such decrease in interest.
F - 20
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(a) |
Basis of consolidation (cont’d) |
The application of the equity method is discontinued from the date the group loses significant influence in an associate and the retained investment is accounted as a financial asset or a subsidiary, as relevant. On the date of losing significant influence, any retained interest it has in the former associate is measured at fair value. Any difference between the sum of the fair value of the retained interest and any proceeds received from the partial disposal of the investment in the associate, and the carrying amount of the investment on that date, are recognized in profit or loss. Amounts recognized in equity through other comprehensive income with respect to such associates are reclassified to profit or loss or to retained earnings in the same manner that would have been applicable if the associate had itself disposed the related assets or liabilities.
(viii) Transactions eliminated in consolidation
Intra-group balances and transactions and any unrealized income and expenses arising from intra-group transactions are eliminated. Unrealized gains arising from transactions with associates are eliminated to the extent of the Group’s interest in the associate. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
|
(b) |
Foreign currency |
|
| (i) | Foreign currency transactions |
Transactions in foreign currencies are translated to the respective functional currency of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortized cost in foreign currency translated at the exchange rate at the end of the period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising from retranslation of those assets and liabilities are recognized in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of their recognition.
| (ii) | Foreign operations |
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into United States dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to United States dollars at exchange rates at the dates of the transactions.
Foreign currency differences are recognized in other comprehensive income, and presented in the foreign currency translation reserve (translation reserve) in equity. However, if the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests.
F - 21
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(c) |
Financial instruments |
|
|
(iii)Non-derivative financial assets |
||
Initial recognition of financial assets
The Group initially recognizes receivables, deposits and loans on the date that they are originated. All other financial assets acquired in a regular way purchase, are recognized initially on the trade date which is the date that the Group becomes a party to the contractual provisions of the instrument. A financial asset is initially measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial asset, unless subsequently measured at fair value. A trade receivable without a significant financing component is initially measured at the transaction price.
Classification of financial assets into categories and the accounting treatment of each category
The Group’s non-derivative financial instruments include investments in debt and equity securities, trade and other receivables and cash and cash equivalents, classified at initial recognition to one of the following measurement categories: (i) amortized cost,; (ii) fair value through other comprehensive income – investments in debt instruments,; (iii) fair value through other comprehensive income – investments in equity instruments,; or (iv) fair value through profit or loss.
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated at fair value through profit or loss: (i) it is held within a business model whose objective is to hold assets to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise to cash flows representing solely payments of principal and interest on specified dates.
A financial asset is measured at fair value through other comprehensive income if it meets both of the following conditions and is not designated at fair value through profit or loss: (i) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and (ii) the contractual terms of the debt instrument give rise to cash flows representing solely payments of principal and interest on specified dates.
All financial assets not classified as measured at amortized cost or fair value through other comprehensive income as described above, as well as financial assets designated at fair value through profit or loss, are measured at fair value through profit or loss.
The Group’s balances of trade and other receivables and deposits are held within a business model whose objective is collecting the contractual cash flows. The contractual cash flows of these financial assets represent solely payments of principal and interest that reflects consideration for the time value of money and the credit risk. Accordingly, these financial assets are subsequently measured at amortized cost.
The Group classifies its investment instruments according to the objectives of the business model within which the instruments are held, at the level of the portfolio. Such assessment considers the Company's stated policies and objectives for the portfolio and management's considerations in evaluating its performance, as well as the frequency, volume and timing of purchases and disposals of the portfolio's financial assets, in prior periods and per future expectations.
F - 22
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(c) |
Financial instruments (cont’d) |
Impairment of financial assets
Provisions for expected credit losses of financial assets measured at amortized cost are recognized in profit or loss and deducted from the gross carrying amount of the financial assets. Provisions for expected credit losses of financial assets measured at fair value through other comprehensive income, reflecting an increase in credit risk since the initial recognition of such assets, are recognized in profit or loss and deducted from other comprehensive income. Impairment losses related to financial assets, including trade and other receivables, are presented under financing expenses.
Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights of the Group to the cash flows from the asset expire or the Group transfers the rights to receive the contractual cash flows from the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
Subsequent measurement and gains and losses
Financial assets at fair value through profit or loss - These assets are subsequently measured at fair value. Net gains and losses, including any interest income or dividend income, are recognized in profit or loss.
Investments in equity instruments at fair value through other comprehensive income - These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss, unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.?
Financial assets at amortized cost - These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Investments in debt instruments at fair value through other comprehensive income - These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.
Cash and cash equivalents
Cash and cash equivalents include cash balances available for immediate use and call deposits. Cash equivalents are short-term highly liquid investments (with original maturities of three months or less) that are readily convertible into known amounts of cash and are exposed to insignificant risks of change in value.
F - 23
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(c) |
Financial instruments (cont’d) |
The Group’s non-derivative financial liabilities include lease liabilities, loans and borrowings from banks and others, and trade and other payables. Financial liabilities are recognized initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.
Financial liabilities are derecognized when the obligation of the Group, as specified in the agreement, expires or when it is discharged or cancelled.
Financial liabilities are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. With respect to a lease liability, the Company also remeasures its carrying amount to reflect reassessments and/or modifications of the lease (see also Note 3(d)(ii)).
Debt modifications
An exchange of debt instruments having substantially different terms, or a substantial modification of terms of a debt instrument, between an existing borrower and lender is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability at fair value. The difference between the carrying amount of the original financial liability and the fair value of the new financial liability is recognized in profit or loss as part of the financial income or expenses. Any costs incurred in relation to such modifications are recognized in profit or loss as part of the financial income or expenses. The terms are substantially different if the discounted present value of the cash flows according to the new terms, including any commissions paid, less any commissions received and discounted using the original effective interest rate, is different by at least i ten percent from the discounted present value of the remaining cash flows of the original financial liability. In addition to the aforesaid quantitative criterion, the Group examines, inter alia, whether there have also been changes in various economic parameters inherent in the exchanged debt instruments. In the case of insubstantial change in terms, the new cash flows are discounted at the original effective interest rate, with the difference between the present value of the financial liability with the new terms and the present value of the original financial liability being recognized in profit or loss.
Offset of financial instruments
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Derivatives are recognized initially at fair value; attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives, including embedded derivatives presented separately, are measured at fair value and changes therein are recognized in profit or loss.
F - 24
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(c) |
Financial instruments (cont’d) |
(vi) Financial guarantees
A financial guarantee is initially recognized at fair value. In subsequent periods a financial guarantee is measured at the higher of the amount recognized in accordance with the guidelines of IFRS 9 and the liability initially recognized after being amortized in accordance with IFRS 15. Any resulting adjustment of the liability is recognized in profit or loss.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effects.
|
(d) |
Vessels, containers, handling equipment and other tangible assets |
Vessels, containers, handling equipment and other tangible assets are stated at cost less accumulated depreciation (see below) and accumulated impairment losses (see Note 3(f)). The cost of inspecting a vessel (dry-docking), that needs to be performed after a number of years of operation (usually once every i five years), is separated from the cost of the vessel and depreciated according to the period until the following inspection. The Company’s management believes that there is no other material separate component whose contractual period of use is different from the contractual period of use of the whole vessel.
Gains and losses on disposal of vessels, containers, handling equipment and other tangible assets are determined by the difference between the net consideration from disposal and the carrying amount of these items and are recognized, on a net basis, within 'other operating income / expenses' in profit or loss.
Subsequent costs
The Group recognises within the carrying amount of an asset (vessel, container, handling equipment or other tangible asset), the cost of replacing part of such an asset, when that cost is incurred, if it is probable that the future economic benefits embodied with such part will flow to the Group and the cost of the part can be measured reliably (while the carrying amount of the replaced part is derecognized). Material improvements that increase the economic benefits expected from the assets are capitalised as part of their cost. All other costs are recognized in the income statement as an expense as incurred.
Depreciation
Depreciation is a systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount is the cost of the asset, or other amount substituted for cost, less its residual value.
An asset is depreciated from the date it is ready for use, meaning the date it reaches the location and condition required for it to operate in the manner intended by management.
Depreciation is recognized in profit and loss on a straight-line basis over the estimated useful life of each part of the asset (vessel, container, handling equipment or other tangible asset). Freehold land is not depreciated.
F - 25
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(d) |
Vessels, containers, handling equipment and other tangible assets (cont’d) |
The estimated useful lives of vessels, containers, handling equipment and other tangible assets are as follows (taking into account a residual value of mainly i 10%- i 20% of the cost of the assets, where applicable):
?
|
? |
years |
|
||
|
1. Vessels |
? |
i Mainly 25 (*) |
? |
|
|
2. Containers |
? |
i Mainly 13-15 (*) |
? |
|
|
3. Chassis |
? |
i 30 |
? |
|
|
4. Other equipment |
? |
i 13 |
? |
|
|
5. Dry docking for owned vessels |
? |
i Up to 5 |
? |
|
(*) As part of its periodical review of estimates, the Company reassessed and revised its estimates in respect of dry containers, by i extending their average useful life from 13 to 15 years and increasing their residual value from i 10% to 20% of historical cost. In addition, considering expectations in respect of future environmental regulations, the Company reassessed and revised its estimates in respect of the i useful life of certain older vessels, from 25 years to 22 years. The above revised estimates resulted with a net reduction of US$ i 7 million in depreciation expenses for the second half of 2022.
The estimated useful lives of other tangible assets for the current and comparative periods are as follows:
|
? |
|
years |
|
|
|||
|
1. |
Buildings |
? |
i 25 |
? |
? |
||
|
2. |
Computer systems and communication equipment |
? |
i 4- i 7 |
( i Mainly 5 years) |
? |
||
|
3. |
Other |
? |
i 5 - i 15 |
? |
? |
||
?
Depreciation methods, useful life and residual values are reviewed at each reporting date.
A lease, in accordance with IFRS 16, defined as an arrangement that conveys the right to control the use of an identified asset for a period of time in exchange for consideration, is initially recognized on the date in which the lessor makes the underlying asset available for use by the lessee.
Upon initial recognition, the Company recognizes a lease liability at the present value of the future lease payments during the lease term and concurrently recognizes a right-of-use asset at the same amount of the liability, adjusted for any prepaid and/or initial direct costs incurred in respect of the lease. The present value is calculated using the implicit interest rate of the lease, or the Company’s incremental borrowing rate applicable for such lease, when the implicit rate is not readily determinable. The lease term is the non-cancellable period of the lease, considering extension and/or termination options which are reasonably certain to apply (see also Note 4(i)(a)).
Following recognition, the Company depreciates a right-of-use asset on a straight-line basis (see below), as well as adjust its value to reflect any re-measurement of its corresponding lease liability or any impairment losses in accordance with IAS 36.
The Company chose to apply the available exemptions, with respect certain assets or asset classes, for short-term leases and leases of low-value assets, as well as the expedient for the inclusion of non-lease components in the accounting of a lease.
F - 26
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(d) |
Vessels, containers, handling equipment and other tangible assets (cont’d) |
Lease modifications
When a lease modification increases the scope of the lease by adding a right to use one or more underlying assets, and the consideration for the lease increased by an amount commensurate with the stand-alone price for the increase in such circumstances, the Group accounts for the modification as a separate lease. When the Group doesn’t account the modification as a separate lease, on the initial date of the lease modification, the Group determines the revised terms and measures the lease liability by discounting the revised lease payments using a revised discount rate, against the right-of-use asset.
For lease modifications that includes a decrease in scope of the lease, as a preceding step and before remeasuring the lease liability against the right-of-use asset, the Group first recognizes a decrease in the carrying amount of the right-of-use asset (on a pro-rata basis) and the lease liability (considering the revised lease payments and the pre-modification discounting rate), in order to reflect the partial or full cancellation of the lease, with the net change recognized in profit or loss.
Sale and lease-back
The Group applies the requirements of IFRS 15 to determine whether an asset transfer is accounted for as a sale. If an asset transfer satisfies the requirements of IFRS 15 to be accounted for as a sale, the Group measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount that relates to the right of use retained by the Group. Accordingly, the Group only recognizes the amount of gain or loss that relates to the rights transferred. If the asset transfer does not satisfy the requirements of IFRS 15 to be accounted for as a sale, the Group accounts the transaction as secured borrowing.
Depreciation
Right-of-use assets are depreciated over the lease term, or their useful lives (considering residual value, if applicable), if it is reasonably certain that the Group will obtain ownership by the end of the lease term. The term of leases in which the Group is engaged with, are as follows:?
|
? |
years |
|
||
|
1. Vessels |
? |
i i 1 / - i i 6 / |
? |
|
|
2. Containers |
? |
i i 1 / - i i 13 / |
? |
|
|
3. Buildings, vehicles and other assets |
? |
Mainly i i 1 / - i i 8 / |
? |
|
?
| (e) |
Intangible assets
|
| (i) |
Goodwill
|
F - 27
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(e) |
Intangible assets (cont’d) |
Development activities involve a plan or design for the production of new or substantially improved processes. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically, commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use the asset. The expenditures capitalized include the cost of direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Other development expenditures are recognized in profit or loss as incurred. In subsequent periods, capitalized development expenditures are measured at cost less accumulated amortization and accumulated impairment losses.?
The Group’s assets include computer systems consisting of hardware and software. The licenses for the software, which are considered to be a separate item, adding functionality to the hardware, are classified as intangible assets.
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.
Amortization is a systematic allocation of the amortizable amount of an intangible asset over its useful life. The amortizable amount is the cost of the asset, or other amount substituted for cost, less its residual value. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows:?
|
Software |
|
i i 5 / years |
? |
|
Capitalised software development costs |
? |
i i 5 / - i i 8 / years |
? |
?
Amortization methods, useful life and residual values are reviewed at each reporting date.
F - 28
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(f) |
Impairment |
(i) Financial assets
The Group recognizes a credit loss when it determines that the credit risk of a financial asset has increased significantly since initial recognition. An impairment loss is calculated as the difference between the financial asset’s carrying amount and the present value of its estimated (probability-weighted, where applicable) future cash flows discounted at the original effective interest rate. Provisions for expected credit losses of financial assets measured at amortized cost are recognized in profit or loss and deducted from the gross carrying amount of the financial assets. For investments in debt instruments at fair value through other comprehensive income, provisions for expected credit losses are recognized in profit or loss and deducted through other comprehensive income and do not reduce the carrying amount of the financial asset.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. The reversal is recognized in profit or loss.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (hereinafter: cash-generating unit, or “CGU”). The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use and its fair value less costs to sell.
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the CGU’s recoverable amount is estimated. An impairment loss is recognized if the carrying amount of the Company's cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then to reduce the carrying amount of the other assets in that unit, on a pro rata basis (considering that the carrying amount of each individual asset will not be reduced below the greater of its value-in-use and its fair value less costs to sell).
An impairment loss is allocated between the owners of the Company and the non-controlling interests on the same basis that the profit or loss is allocated. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are re-assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
F - 29
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(g) |
Employee benefits |
|
| (i) | Post-employment benefits |
The Group has a number of post-employment benefit plans. The plans are usually financed by deposits with insurance companies or with funds managed by a trustee, and they are classified as defined contribution plans and as defined benefit plans.
| (a) | Defined contribution plans |
A defined contribution pension plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the periods during which related services rendered by employees.
| (b) | Defined benefit plans |
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). The discount rate is the yield at the reporting date on high grade corporate bonds denominated in the same currency, that have maturity dates approximating the terms of the Group’s obligations.
The calculation is performed by a qualified actuary using the projected unit credit method.
When the calculation results in a net asset for the Group, an asset is recognized up to the net present value of economic benefits available in the form of a refund from the plan or a reduction in future contributions to the plan. An economic benefit in the form of refunds or reductions in future contributions is considered available when it can be realized over the life of the plan or after settlement of the obligation.
Gains or losses resulting from settlements of a defined benefit plan are recognized in profit or loss.
The Group recognizes immediately, directly in other comprehensive income, all actuarial gains and losses arising from defined benefit plans.
F - 30
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(g) |
Employee benefits (cont’d) |
(ii) Termination benefits
Termination benefits are recognized as an expense when the Group is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value. The discount rate is the yield at the reporting date on high grade corporate bonds denominated in the same currency, that have maturity dates approximating the terms of the Group’s obligations.
The Group’s net obligation in respect of long-term service benefits, other than pension plans, is the amount of future benefits that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on long-term high grade corporate bonds denominated in the same currency, that have maturity dates approximating to the terms of the Group’s obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in which they arise.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related employees’ services are provided. The employee benefits are classified, for measurement purposes, as short-term benefits or as other long-term benefits depending on when the Group expects the benefits to be settled.
The grant date fair value of share-based compensation awards granted to employees is recognized as a salary expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The amount recognized as an expense in respect of share-based compensation awards that are conditional upon meeting service and non-market performance conditions, is adjusted to reflect the number of awards that are expected to vest.
If the terms of an award previously granted are modified by increasing the fair value of the equity instruments granted, such incremental fair value, measured immediately before and after the modification, is recognized for the grantee’s services as a salary expense, over the period from the modification date and until the modified equity instruments are fully vested.
F - 31
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(h) |
Provisions |
|
A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation.
The Group recognizes a reimbursement asset if, and only if, it is virtually certain that the reimbursement will be received if the Company settles the obligation. The amount recognized in respect of the reimbursement does not exceed the amount of the provision.
Legal matters
The Financial Statements includes appropriate provisions in respect of legal matters involving the Group which, in the opinion of the Group's management, based, among others, on the opinion of its legal advisers retained in respect of those matters, is more likely than not that an outflow of economic benefits will be required to settle the obligation and the amount of obligation can be estimated reliably. Note 27 includes details of additional exposure due to contingent legal matters, where the amounts might be significant.
|
(i) |
Revenue Recognition from shipping services and related expenses |
Revenue from containerized and non-containerized cargo
The Group considers each freight transaction as comprised of one performance obligation, recognized per the time-based portion completed as at the reporting date. The operating expenses related to cargo traffic are recognized immediately as incurred. If the expected incremental and other direct costs related to the cargo exceed its expected related revenue, a provision for onerous contracts is recognized through profit or loss, in accordance with IAS 37.
With respect to presentation and in accordance with IFRS 15 guidance, the Company recognizes “Contract assets”, reflecting receivables (not eligible to be classified as a financial asset, i.e. as trade receivables) and “Contract liabilities”, reflecting obligation to provide services, both with respect to engagements with customers, not yet completed as at the respective reporting date. Contract assets and contract liabilities relating to the same contract are to be presented on a net basis in the statement of financial position. However, trade receivables and contract liabilities deriving from the same contract are to be presented on a gross basis in the statement of financial position.
Revenue from demurrage
Revenues from demurrage and detentions for containers are accounted as separate performance obligation and recognized over time, up until the time of the customer’s late return or pick-up of containers.
Revenue from value-added services
Revenues from value-added services provided to the customers by the Company and its agencies, such as documents handling, customs, duties etc., are accounted as separate performance obligation and recognized when the service is rendered.
Cooperation agreements
Non-monetary exchange of slots with other shipping companies in order to facilitate sale of services to customers are not accounted as revenues.
F - 32
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(j) |
Finance income and expenses |
Finance income ordinarily includes interest income recognized in profit or loss as it accrues, using the effective interest method. Finance expenses include mainly interest expense in respect of lease liabilities and borrowings and impairment losses recognized on trade and other receivables. Foreign currency gains and losses are reported on a net basis.
In the statements of cash flows, interest received and dividends received are presented as part of cash flows from operating activities. Interest paid and dividends paid are presented as part of cash flows from financing activities.
|
(k) |
Income taxes |
Income taxes include current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to amounts relate to items recognized directly in equity or in other comprehensive income, to the extent they relate to such items. Current taxes are the taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their corresponding amounts used for taxation purposes. Deferred taxes are not recognized for the following temporary differences: (i) the initial recognition of goodwill, (ii) the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and (iii) differences relating to investments in subsidiaries, associates and joint arrangements, to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future, either by way of selling the investment or by way of distributing dividends by the investee. Deferred taxes are measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised, or to the extent it can be utilized in future periods against taxable temporary differences (i.e. deferred tax liabilities). Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Additional income taxes that arise from the distribution of dividends are recognized in profit or loss when the liability to pay the related dividends is recognized by the distributing company.
Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset.
Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities if, the Company or the Group has the legally enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met:
| - | In the case of current tax assets and liabilities, the Company or the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously; or |
| - | In the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either; | |
| - | The same taxable entity; or |
F - 33
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3 Significant accounting policies (cont’d)
|
(k) |
Income taxes (cont’d) |
| - | Different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are contractual to be settled or recovered, intend to realise the current tax assets and settle the current tax liabilities on a net basis or realise and settle simultaneously. | |
|
(l) |
Earnings (losses) per share |
The Group presents basic and diluted earnings (losses) per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, for the effects of all dilutive potential ordinary shares, if any. Share splits (or reversed splits) in effect as of the financial statements issuance date are applied to all presented periods.
i|
(m) |
Transactions with controlling shareholder |
Assets and liabilities included in a transaction with a controlling shareholder are measured at fair value on the date of the transaction, with the difference between the fair value and the consideration from the transaction recorded in the Company’s equity.
i|
(n) |
Government grants |
Government grants are recognized initially when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Grants received from the Government of Israel with respect to the cost of employing Israeli resident sailors on Israeli vessels during 2020 were deducted from the salary costs.
i|
(o) |
Inventories |
Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the moving average principle, and mainly includes fuel on board.
|
(p) |
Non-current assets and disposal groups held for sale |
Non-current assets are classified as held for sale if it is highly probable that they will be recovered primarily through a sale transaction and not through continuing use. Immediately before classification as held for sale, the assets are remeasured in accordance with the Group’s accounting policies. Thereafter, the assets are measured at the lower of their carrying amount and fair value less cost to sell. In subsequent periods, depreciable assets classified as held for sale are not periodically depreciated. Impairment losses recognized on initial classification as held for sale, and subsequent gains or losses on remeasurement, are recognized in profit or loss.
F - 34
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
| 4 |
Accounting estimates
|
| (i) |
Significant accounting estimates and judgements
|
| (a) |
Assessment of extension options and purchase options available in lease arrangements
|
| (b) |
Assessment of incremental borrowing rate applicable for lease arrangements
|
| (c) |
Assessment of non-financial assets for impairment
|
| (d) |
Assessment of probability of contingent liabilities
|
F - 35
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4 Accounting estimates (cont’d)
|
(ii) |
Determination of fair values
|
| (a) |
Financial instruments (including derivatives)
|
| (b) |
Share-based compensation arrangements
|
F - 36
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
5 Vessels, containers, handling equipment and other tangible assets (*)
i|
Cost:
|
||||||||||||||||||||||||
|
Balance at
January 1, 2022 |
Additions
|
Disposals
|
Lease
modifications and terminations |
Effect of
movements in exchange rates |
Balance at
December 31, 2022 |
|||||||||||||||||||
|
US $ in millions
|
||||||||||||||||||||||||
|
Vessels
|
i 4,192.2
|
i 2,449.0
|
i 71.5
|
i 6,712.7
|
||||||||||||||||||||
|
Containers and equipment
|
i 1,870.4
|
i 115.0
|
( i 60.8
|
)
|
( i 33.8
|
)
|
i 1,890.8
|
|||||||||||||||||
|
Computer systems and
|
||||||||||||||||||||||||
|
communication equipment
|
i 52.0
|
i 8.5
|
( i 7.1
|
)
|
i 7.5
|
( i 0.5
|
)
|
i 60.4
|
||||||||||||||||
|
Other property and equipment
|
i 137.4
|
i 40.0
|
( i 3.3
|
)
|
( i 2.3
|
)
|
i 171.8
|
|||||||||||||||||
|
Total
|
i 6,252.0
|
i 2,612.5
|
( i 71.2
|
)
|
i 45.2
|
( i 2.8
|
)
|
i 8,835.7
|
||||||||||||||||
|
|
Balance at |
|
Depreciation |
|
Disposals |
|
Lease modifications and terminations |
|
Effect of movements in exchange rates |
|
Balance at |
|||||||||||||
|
|
US $ in millions |
|||||||||||||||||||||||
|
Vessels |
i 1,259.3 |
|
i 1,204.4 |
|
|
|
( i 160.9 |
) |
|
|
i 2,302.8 |
|||||||||||||
|
Containers and equipment |
i 582.2 |
|
i 155.4 |
|
( i 52.6 |
) |
( i 35.9 |
) |
|
|
i 649.1 |
|||||||||||||
|
Computer systems and communication equipment |
i 40.1 |
|
i 7.5 |
|
( i 7.1 |
) |
|
|
( i 0.3 |
) |
i 40.2 |
|||||||||||||
|
Other property and equipment |
i 80.4 |
|
i 17.5 |
|
( i 3.0 |
) |
|
|
( i 1.4 |
) |
i 93.5 |
|||||||||||||
|
Total |
i 1,962.0 |
|
i 1,384.8 |
|
( i 62.7 |
) |
( i 196.8 |
) |
( i 1.7 |
) |
i 3,085.6 |
|||||||||||||
|
Payments on account |
i 102.5 |
i 1.1 | ||||||||||||||||||||||
|
Net carrying amounts:
|
|
Balance at
|
Balance at
|
|||||||||||||||||||||||
|
US $ in millions
|
US $ in millions
|
|||||||||||||||||||||||
|
Vessels
|
i 2,932.9
|
i 4,409.9
|
||||||||||||||||||||||
|
Payments on account, net
|
i 24.9
|
|||||||||||||||||||||||
|
i 2,957.8
|
i 4,409.9
|
|||||||||||||||||||||||
|
Containers and equipment
|
i 1,288.2
|
i 1,241.7
|
||||||||||||||||||||||
|
Payments on account, net
|
i 77.6
|
i 1.1
|
||||||||||||||||||||||
|
i 1,365.8
|
i 1,242.8
|
|||||||||||||||||||||||
|
Computer systems and
|
||||||||||||||||||||||||
|
communication equipment
|
i 11.9
|
i 20.2
|
||||||||||||||||||||||
|
Other property and equipment
|
i 57.0
|
i 78.3
|
||||||||||||||||||||||
|
i 68.9
|
i 98.5
|
|||||||||||||||||||||||
|
Total
|
i 4,392.5
|
i 5,751.2
|
||||||||||||||||||||||
F - 37
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5 Vessels, containers, handling equipment and other tangible assets (cont'd) (*)
|
Cost:
|
||||||||||||||||||||||||
|
Balance at
January 1, 2021 |
Additions
|
Disposals
|
Lease
modifications and terminations |
Effect of
movements in exchange rates |
Balance at
December 31, 2021 |
|||||||||||||||||||
|
US $ in millions
|
||||||||||||||||||||||||
|
Vessels
|
i 1,595.6
|
i 1,778.5
|
i 818.1
|
i 4,192.2
|
||||||||||||||||||||
|
Containers and equipment
|
i 983.3
|
i 862.3
|
( i 15.5
|
)
|
i 40.3
|
i 1,870.4
|
||||||||||||||||||
|
Computer systems and
|
||||||||||||||||||||||||
|
Communication equipment
|
i 60.5
|
i 5.4
|
( i 14.7
|
)
|
i 0.8
|
i 52.0
|
||||||||||||||||||
|
Other property and equipment
|
i 118.6
|
i 19.2
|
( i 1.2
|
)
|
i 0.9
|
( i 0.1
|
)
|
i 137.4
|
||||||||||||||||
|
Total
|
i 2,758.0
|
i 2,665.4
|
( i 31.4
|
)
|
i 860.1
|
( i 0.1
|
)
|
i 6,252.0
|
||||||||||||||||
|
Depreciation and impairment charges:
|
||||||||||||||||||||||||
|
Balance at
January 1, 2021 |
Depreciation
|
Disposals
|
Lease
modifications and terminations |
Effect of
movements in exchange rates |
Balance at
December 31, 2021 |
|||||||||||||||||||
|
US $ in millions
|
||||||||||||||||||||||||
|
Vessels
|
i 647.6
|
i 611.7
|
i 1,259.3
|
|||||||||||||||||||||
|
Containers and equipment
|
i 462.4
|
i 133.4
|
( i 11.1
|
)
|
( i 2.5
|
)
|
i 582.2
|
|||||||||||||||||
|
Computer systems and
|
||||||||||||||||||||||||
|
Communication equipment
|
i 47.6
|
i 7.1
|
( i 14.6
|
)
|
i 40.1
|
|||||||||||||||||||
|
Other property and equipment
|
i 64.3
|
i 17.4
|
( i 1.0
|
)
|
( i 0.3
|
)
|
i 80.4
|
|||||||||||||||||
|
Total
|
i 1,221.9
|
i 769.6
|
( i 26.7
|
)
|
( i 2.5
|
)
|
( i 0.3
|
)
|
i 1,962.0
|
|||||||||||||||
|
Payments on account
|
i 102.5
|
|
Net carrying amounts:
|
|
Balance at
|
Balance at
|
|||||||||||||||||||||||
|
US $ in millions
|
US $ in millions
|
|||||||||||||||||||||||
|
Vessels
|
i 948.0
|
i 2,932.9
|
||||||||||||||||||||||
|
Payments on account, net
|
i 24.9
|
|||||||||||||||||||||||
|
i 948.0
|
i 2,957.8
|
|||||||||||||||||||||||
|
Containers and equipment
|
i 520.9
|
i 1,288.2
|
||||||||||||||||||||||
|
Payments on account, net
|
i 77.6
|
|||||||||||||||||||||||
|
i 520.9
|
i 1,365.8
|
|||||||||||||||||||||||
|
Computer systems and
|
||||||||||||||||||||||||
|
Communication equipment
|
i 12.9
|
i 11.9
|
||||||||||||||||||||||
|
Other property and equipment
|
i 54.3
|
i 57.0
|
||||||||||||||||||||||
|
i 67.2
|
i 68.9
|
|||||||||||||||||||||||
|
Total
|
i 1,536.1
|
i 4,392.5
|
||||||||||||||||||||||
F - 38
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
| 6 |
Intangible assets
|
Cost:
|
Balance at
January 1, 2022 |
Additions
|
Effect of
movements in exchange rates |
Balance at
December 31, 2022 |
|||||||||||||
|
US $ in millions
|
||||||||||||||||
|
Goodwill
|
i 6.3
|
i 4.0
|
( i 0.7
|
)
|
i 9.6
|
|||||||||||
|
Software (mostly development costs)
|
i 211.6
|
i 27.3
|
( i 0.1
|
)
|
i 238.8
|
|||||||||||
|
Other intangible assets
|
i 4.5
|
i 4.5
|
||||||||||||||
|
Total
|
i 222.4
|
i 31.3
|
( i 0.8
|
)
|
i 252.9
|
|||||||||||
|
Amortization and impairment losses:
|
||||||||||||||||
|
Balance at
January 1, 2022 |
Amortization
|
Effect of
movements in exchange rates |
Balance at
December 31, 2022 |
|||||||||||||
|
US $ in millions
|
||||||||||||||||
|
Goodwill
|
||||||||||||||||
|
Software (mostly development costs)
|
i 145.6
|
i 10.4
|
( i 0.1
|
)
|
i 155.9
|
|||||||||||
|
Other intangible assets
|
i 3.0
|
i 1.1
|
i 4.1
|
|||||||||||||
|
Total
|
i 148.6
|
i 11.5
|
( i 0.1
|
)
|
i 160.0
|
|||||||||||
|
Net carrying amounts:
|
||||||||||||||||
|
Balance at
January 1, 2022 |
Balance at
December 31, 2022 |
|||||||||||||||
|
US $ in millions
|
US $ in millions
|
|||||||||||||||
|
Goodwill
|
i 6.3
|
i 9.6
|
||||||||||||||
|
Software (mostly development costs)
|
i 66.0
|
i 82.9
|
||||||||||||||
|
Other intangible assets
|
i 1.5
|
i 0.4
|
||||||||||||||
|
Total
|
i 73.8
|
i 92.9
|
||||||||||||||
F - 39
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6 Intangible assets (cont’d)
|
Cost:
|
||||||||||||||||||||
|
Balance at
January 1, |
Additions
|
Disposals
|
Effect of
movements in exchange rates |
Balance at
December 31, 2021 |
||||||||||||||||
|
US $ in millions
|
||||||||||||||||||||
|
Goodwill
|
i 7.6
|
( i 1.3
|
)
|
i 6.3
|
||||||||||||||||
|
Software (mostly development costs)
|
i 194.5
|
i 17.1
|
i 211.6
|
|||||||||||||||||
|
Dry docking
|
i 4.5
|
( i 4.5
|
)
|
|||||||||||||||||
|
Other intangible assets
|
i 3.4
|
i 1.1
|
i 4.5
|
|||||||||||||||||
|
Total
|
i 210.0
|
i 18.2
|
( i 4.5
|
)
|
( i 1.3
|
)
|
i 222.4
|
|||||||||||||
|
Amortization and impairment losses:
|
||||||||||||||||||||
|
Balance at
January 1, |
Amortization
|
Disposals
|
Effect of
movements in exchange rates |
Balance at
December 31, 2021 |
||||||||||||||||
|
US $ in millions
|
||||||||||||||||||||
|
Goodwill
|
||||||||||||||||||||
|
Software (mostly development costs)
|
i 136.3
|
i 9.3
|
i 145.6
|
|||||||||||||||||
|
Dry docking
|
i 4.5
|
( i 4.5
|
)
|
|||||||||||||||||
|
Other intangible assets
|
i 2.7
|
i 0.3
|
i 3.0
|
|||||||||||||||||
|
Total
|
i 143.5
|
i 9.6
|
( i 4.5
|
)
|
i 148.6
|
|||||||||||||||
|
Net carrying amounts:
|
||||||||||||||||||||
|
Balance at
January 1, 2021 |
Balance at
December 31, 2021 |
|||||||||||||||||||
|
US $in millions
|
US $in millions
|
|||||||||||||||||||
|
Goodwill
|
i 7.6
|
i 6.3
|
||||||||||||||||||
|
Software (mostly development costs)
|
i 58.2
|
i 66.0
|
||||||||||||||||||
|
Dry docking
|
||||||||||||||||||||
|
Other intangible assets
|
i 0.7
|
i 1.5
|
||||||||||||||||||
|
Total
|
i 66.5
|
i 73.8
|
||||||||||||||||||
?
F - 40
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6 Intangible assets (cont’d)
Impairment test (cont'd)
| • |
A detailed cash flow for the abovementioned period, based upon the Company’s business plan.
|
| • |
Freight rates: expected to decrease in 2023 and to be further affected by industry’s supply and demand dynamics, as well as by macroeconomic trends and uncertainties.
|
| • |
Carried volume (TEUs): expected to increase over the projected period, in accordance with the Company’s fleet structure and business plan.
|
| • |
Bunkering costs: according to the future price curves of fuel and liquefied natural gas (LNG).
|
| • |
Charter hire rates: according to contractual rates in effect as of December 31, 2022, and estimated market rates for future renewals.
|
| • |
Post tax discount rate of i 11.5%.
|
| • |
Long-term nominal growth rate of i 2.5%.
|
| • |
Payment of tax at the Company’s corporate tax rate of i 23%.
|
|
Increase
|
Decrease
|
|||||||
|
By 100 bps
|
||||||||
|
US $ in millions
|
||||||||
|
Discount rate
|
( i 625
|
)
|
i 766
|
|||||
|
Terminal growth rate
|
i 512
|
( i 406
|
)
|
|||||
F - 41
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
| 7 |
Leases
|
| (a) |
Right-of-use-assets
|
| Containers
and equipment
|
Buildings,
vehicles and other
tangible assets
|
|||||||||||||||
|
Vessels
|
Total
|
|||||||||||||||
|
US $ in millions
|
||||||||||||||||
|
Balance as at January 1, 2022
|
i 2,720.2
|
i 458.6
|
i 47.6
|
i 3,226.4
|
||||||||||||
|
Additions
|
i 2,184.6
|
i 22.5
|
i 2,207.1
|
|||||||||||||
|
Depreciation
|
( i 1,170.0
|
)
|
( i 80.5
|
)
|
( i 18.4
|
)
|
( i 1,268.9
|
)
|
||||||||
|
Other (*)
|
i 232.5
|
i 1.9
|
i 6.3
|
i 240.7
|
||||||||||||
|
Balance as at December 31, 2022
|
i 3,967.3
|
i 380.0
|
i 58.0
|
i 4,405.3
|
||||||||||||
| Containers
and equipment
|
Buildings,
vehicles and other
tangible assets
|
|||||||||||||||
|
Vessels
|
Total
|
|||||||||||||||
|
US $ in millions
|
||||||||||||||||
|
Balance as at January 1, 2021
|
i 826.7
|
i 466.1
|
i 47.9
|
i 1,340.7
|
||||||||||||
|
Additions
|
i 1,677.5
|
i 85.1
|
i 16.3
|
i 1,778.9
|
||||||||||||
|
Depreciation
|
( i 602.1
|
)
|
( i 89.2
|
)
|
( i 18.5
|
)
|
( i 709.8
|
)
|
||||||||
|
Other (*)
|
i 818.1
|
( i 3.4
|
)
|
i 1.9
|
i 816.6
|
|||||||||||
|
Balance as at December 31, 2021
|
i 2,720.2
|
i 458.6
|
i 47.6
|
i 3,226.4
|
||||||||||||
| (*) |
Mainly modifications, see also Note 5.
|
| (b) |
Maturity analysis of the Group's lease liabilities
|
|
As at December 31
|
||||||||
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Less than one year
|
i 1,380.8
|
i 893.0
|
||||||
|
One to five years
|
i 2,652.8
|
i 1,981.5
|
||||||
|
More than five years
|
i 125.9
|
i 197.2
|
||||||
|
Total
|
i 4,159.5
|
i 3,071.7
|
||||||
F - 42
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7 Leases (cont’d)
|
|
(c) |
Amounts recognized in profit or loss
|
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Interest expenses related to lease liabilities
|
i 206.0
|
i 139.6
|
||||||
|
Expenses relating to short-term leases:
|
||||||||
|
Vessels
|
i 101.6
|
i 71.7
|
||||||
|
Containers
|
i 34.3
|
i 36.6
|
||||||
| (d) |
Amounts recognized in the statement of cash flows
|
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Cash outflow related to lease liabilities
|
i 1,564.1
|
i 877.8
|
||||||
|
(e) |
For further details regarding the Company’s obligations, in respect of leases not accounted as a lease liability as of December 31, 2022, see also Note 26. |
i
| 8 |
Trade and other receivables
|
| (a) |
Carrying amounts
|
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Non-current other receivables
|
i 112.1
|
i 107.2
|
||||||
|
Current trade and other receivables
|
||||||||
|
Trade receivables
|
i 671.5
|
i 1,178.0
|
||||||
|
Other receivables
|
||||||||
|
Insurance recoveries (see also Note 15)
|
i 23.9
|
i 7.7
|
||||||
|
Government institutions
|
i 11.9
|
i 14.9
|
||||||
|
Prepaid expenses
|
i 24.9
|
i 55.8
|
||||||
|
Other receivables (*)
|
i 93.5
|
i 21.6
|
||||||
|
i 154.2
|
i 100.0
|
|||||||
|
i 825.7
|
i 1,278.0
|
|||||||
(*) As at December 31, 2022, mainly includes interest receivables and receivables related to vessel owners.
| (b) |
Factoring facility
|
F - 43
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
| 9 |
Other investments
|
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Non-current investments
|
||||||||
|
Financial instruments and other financial assets at fair value through other comprehensive income (*)
|
i 1,358.4
|
i 162.9
|
||||||
|
Financial assets at fair value through profit or loss (*)
|
i 11.2
|
i 2.3
|
||||||
|
Other
|
i 3.6
|
i 4.0
|
||||||
|
i 1,373.2
|
i 169.2
|
|||||||
|
Current investments
|
||||||||
|
Bank deposits and other financial assets at amortized cost
|
i 2,017.4
|
i 2,123.1
|
||||||
|
Financial assets at fair value through profit or loss (*)
|
i 0.7
|
i 1.1
|
||||||
|
Financial instruments at fair value through other comprehensive income (*)
|
i 215.0
|
i 20.3
|
||||||
|
i 2,233.1
|
i 2,144.5
|
|||||||
10 Cash and cash equivalents
i|
|
2022 |
2021 |
||||||
|
|
US $ in millions |
|||||||
|
Bank balances and cash in hand |
i 372.7 |
i 499.3 |
||||||
|
Demand deposits |
i 649.4 |
i 1,044.0 |
||||||
|
|
i 1,022.1 |
i 1,543.3 |
||||||
| The Group’s exposure to interest rate risk and a sensitivity analysis for financial liabilities is disclosed in Note 29. |
F - 44
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
| 11 |
Capital and reserves
|
| (a) |
Share capital
|
|
2022
|
2021
|
|||||||
|
Number of ordinary shares (issued and paid up):
|
||||||||
|
Balance at the beginning of the year
|
i 119,743,188
|
i 100,000,000
|
||||||
|
Issued in consideration of cash (public offering)
|
i 15,000,000
|
|||||||
|
Exercise of share options (cashless)
|
i 406,733
|
i 4,743,188
|
||||||
|
Balance at the end of the year
|
i 120,149,921
|
i 119,743,188
|
||||||
| (b) |
Special State Share
|
F - 45
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11 Capital and reserves (cont’d)
| (c) |
Share-Based Payment Arrangements
|
|
Grant date
|
Instrument terms
|
Number of instruments
|
Vesting Terms
|
Contractual life
|
||||
|
Each option is exercisable into one ordinary share, at the exercise price of the share on the grant date, adjusted to future dividends.
|
i 4,990,000
|
i 50%, i 25%
and i 25% of the options are exercisable following a service period of i 2
years, i 3 years and i 4
years, respectively.
|
i 6 years
|
| The weighted average of the options’ fair value, measured using the Black-Scholes model, and the related measurement inputs used, were as below: |
|
Fair value
|
USD i 0.362
|
|
|
Share price on grant date
|
USD i 1.00
|
|
|
Exercise price
|
USD i 1.00
|
|
|
Expected volatility
|
i 31.9%
|
|
|
Expected life
|
i 6 years
|
|
|
Expected dividends
|
i 0%
|
|
|
Risk-free interest rate
|
i 2.7%
|
F - 46
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|
Grant date
|
Instrument terms
|
Number of instruments
|
Vesting Terms
|
Contractual life
|
||||
|
Each option is exercisable into one ordinary share, at the exercise price per the offering price of US$ i 15.00, adjusted to future dividends.
|
i 546,822
|
i i i i i 25 / / / / %
of the options shall vest upon the first anniversary of the grant date with the remaining options vesting in equal quarterly portions over the following three years period.
|
i 5 years
|
| The weighted average of the options’ fair value, measured using the Black & Scholes model, and the related measurement inputs used, were as below: |
|
Fair value
|
USD i 5.32
|
|
|
Share price on grant date
|
USD i 15.00
|
|
|
Exercise price
|
USD i 15.00
|
|
|
Expected volatility
|
i 40.2%
|
|
|
Expected life
|
i 5 years
|
|
|
Expected dividends
|
i 0%
|
|
|
Risk-free interest rate
|
i 0.46%
|
F - 47
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
During 2022, the Board of Directors approved grants of share options to officers, directors and employees, as detailed below:
|
Granted in
|
Number of instruments
|
Instrument terms
|
Vesting terms
|
Contractual life
|
||||
|
March 2022
|
i 1,727,443
|
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 i i i 25 / / %
each.
|
i i i 5
years / /
|
||||
|
May 2022 |
i 490,662 | |||||||
|
August 2022 |
i 107,110 |
| The weighted average of the options’ fair value, measured using the Black & Scholes model, and the related measurement inputs used, were as below: |
|
Granted in
|
March 2022
|
May 2022
|
August 2022
|
|
|
Fair Value
|
USD i 29.72
|
USD i 26.30
|
USD i 25.07
|
|
|
Share price on grant date
|
USD i 68.94
|
USD i 55.63
|
USD i 51.86
|
|
|
Exercise price
|
USD i 68.37
|
USD i 51.37
|
USD i 47.78
|
|
|
Expected volatility
|
i 47.3%
|
i 48.4%
|
i 48.9%
|
|
|
Expected life
|
i 5 years
|
i 4.9 years
|
i 5 years
|
|
|
Expected dividends
|
i 0%
|
i 0%
|
i 0%
|
|
|
Risk-free interest rate
|
i 1.7%
|
i 3.0%
|
i 3.0%
|
Reconciliation of outstanding share options
i
|
2022
|
2021
|
|||||||||||||||
|
Issuable
shares
|
Weighted
average
exercise
price
|
Issuable
shares
|
Weighted
average
exercise
price
|
|||||||||||||
|
Outstanding at the beginning of the period
|
i 714,322
|
i 8.04
|
i 4,990,000
|
i 1.00
|
||||||||||||
|
Granted during the period
|
i 2,325,215
|
i 65.34
|
i 546,822
|
i 15.00
|
||||||||||||
|
Exercised during the period
|
( i 406,733
|
)
|
i 0.00
|
( i 4,822,500
|
)
|
i 0.75
|
||||||||||
|
Fortified during the period
|
( i 171,374
|
)
|
||||||||||||||
|
Outstanding at the end of the period
|
i 2,461,430
|
i 37.05
|
i 714,322
|
i 8.04
|
||||||||||||
|
Exercisable at the end of the period
|
i 167,500
|
i 0.00
|
||||||||||||||
F - 48
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11 Capital and reserves (cont’d)
| (d) |
Earnings per share
|
|
2022
|
2021
|
2020
|
||||||||||
|
US $ in millions
|
||||||||||||
|
Profit attributable to ordinary shareholders used to calculate basic and diluted earnings per share (US $ in millions)
|
i 4,619.4
|
i 4,640.3
|
i 518.0
|
|||||||||
|
Number of outstanding shares at the beginning of the period used to calculate basic earnings per share
|
i 119,910,688
|
i 100,000,000
|
i 100,000,000
|
|||||||||
|
Effect of shares issued
|
i 13,712,329
|
|||||||||||
|
Effect of share options
|
i 101,687
|
i 1,393,175
|
||||||||||
|
Weighted average number of ordinary shares used to calculate basic earnings per share
|
i 120,012,375
|
i 115,105,504
|
i 100,000,000
|
|||||||||
|
Effect of share options
|
i 432,514
|
i 3,828,219
|
i 4,530,892
|
|||||||||
|
Weighted average number of ordinary shares used to calculate diluted earnings per share
|
i 120,444,889
|
i 118,933,723
|
i 104,530,892
|
|||||||||
| In the year ended December 31, 2022, options for i 2,153,841 ordinary shares, granted to officers, directors and employees (see above) were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive. |
F - 49
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
12 Loans and other liabilities
This Note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more information about the Group’s exposure to interest rate, foreign currency and liquidity risk, see Note 29.
i| (a) | The loans and other liabilities are as follows: |
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Non-current liabilities
|
||||||||
|
Loans from financial institutions
|
i 25.0
|
i 35.2
|
||||||
|
Loan from shipyard
|
i 56.6
|
|||||||
|
Other loans and liabilities
|
i 53.2
|
i 29.0
|
||||||
|
Derivative instrument
|
i 13.7
|
|||||||
|
i 91.9
|
i 120.8
|
|||||||
|
Current liabilities
|
||||||||
|
Current portion of loans from financial institution
|
i 10.0
|
i 13.6
|
||||||
|
Current portion of other loans and liabilities
|
i 33.1
|
i 10.6
|
||||||
|
i 43.1
|
i 24.2
|
|||||||
|
Short-term borrowings
|
i 53.0
|
i 106.5
|
||||||
|
i 96.1
|
i 130.7
|
|||||||
See also Note 1(b)(4) with respect to the early repayment of the Company’s loan from shipyard (Tranche-E) and Note 29(a)(2) with respect to the contractual maturities of financial liabilities.
See also Note 7(b) with respect to lease liabilities.
Securing assets
As security for certain long-term bank loans and other long-term loans and liabilities, liens have been registered on certain assets, including the insurance rights and the generated revenues related to such assets.
| (b) | Terms and debt repayment schedule |
| Effective |
Year of
|
Carrying
|
|||||||||||||||
|
Currency
|
interest (2)
|
Maturity
|
Face value
|
Amount
|
|||||||||||||
|
US $ in millions
|
|||||||||||||||||
|
Long-term loans
|
US$
|
(*) i 7.6
|
%
|
2023-2030
|
i 119.4
|
i 119.4
|
|||||||||||
|
Long-term liabilities
|
US$
|
2023-2032
|
i 15.6
|
i 15.6
|
|||||||||||||
|
Short-term credit from banks (3)
|
US$
|
i 5.9
|
%
|
2023
|
i 53.0
|
i 53.0
|
|||||||||||
|
i 188.0
|
i 188.0
|
||||||||||||||||
F - 50
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12 Loans and other liabilities (cont’d)
(b) Terms and debt repayment schedule (cont’d)
| Effective |
Year of
|
Carrying
|
|||||||||||||||
|
Currency
|
interest (2)
|
Maturity
|
Face value
|
Amount
|
|||||||||||||
|
US $ in millions
|
|||||||||||||||||
|
Long-term loans:
|
|||||||||||||||||
|
Tranche E (1)
|
US$
|
i 8.7
|
%
|
2026
|
i 74.7
|
i 56.6
|
|||||||||||
|
Other
|
US$
|
(*) i 6.6
|
%
|
2022-2026
|
i 86.3
|
i 86.3
|
|||||||||||
|
Long-term liabilities
|
US$
|
2022
|
i 2.1
|
i 2.1
|
|||||||||||||
|
Short-term credit from banks (3)
|
US$
|
i 2.4
|
%
|
2022
|
i 106.5
|
i 106.5
|
|||||||||||
|
i 269.6
|
i 251.5
|
||||||||||||||||
(*)Weighted average.
/See also Note 7(b) with respect to lease liabilities.
| (1) | Tranche E was originally issued in the framework of the Company’s 2014 debt restructuring as an unsecured loan payable on 2026. In November 2022, the Company entered into an agreement and early repaid its entire outstanding balance for a total consideration of US$ i 66 million. |
| (2) | The effective interest rate is the rate that discounts estimated future cash payments or receipts through the contractual life of the financial instrument to its net carrying amount, and it does not necessarily reflect the contractual interest rate. |
| (3) |
Includes US$ i 35 million subject to Libor + i 2.95%. |
As at December 31, 2022, the Company complies with all its covenants. According to these consolidated Financial Statements, the Company’s liquidity, as defined in the related agreements, amounts to US$ i 4,600 million (Minimum Liquidity required is US$ i 250 million).
F - 51
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12 Loans and other liabilities (cont’d)
| (d) | Movement in liabilities deriving from financing activities |
|
Loans and
other
Liabilities
|
Lease
Liabilities
|
|||||||
|
Balance as at January 1, 2022
|
i 251.5
|
i 3,071.7
|
||||||
|
Changes related to financing cash flows:
|
||||||||
|
Receipt of long-term loans and other long-term liabilities
|
i 59.2
|
|||||||
|
Repayment of borrowings and lease liabilities
|
( i 92.2
|
)
|
( i 1,357.2
|
)
|
||||
|
Change in short-term loans
|
( i 53.5
|
)
|
||||||
|
Additional Leases
|
i 2,207.0
|
|||||||
|
Modifications
|
i 241.2
|
|||||||
|
Other Changes (*)
|
i 23.0
|
( i 3.2
|
)
|
|||||
|
Balance as at December 31, 2022
|
i 188.0
|
i 4,159.5
|
||||||
|
(*) Mainly includes revaluation of derivative and adjustments in respect of estimated cashflows. |
|
Loans and other liabilities
|
||||||||||||
|
Loans and other
Liabilities
|
Debentures
|
Lease
Liabilities
|
||||||||||
|
Balance as at January 1, 2021
|
i 234.3
|
i 423.7
|
i 1,174.0
|
|||||||||
|
Changes related to financing cash flows:
|
||||||||||||
|
Receipt of long-term loans and other long-term liabilities
|
i 50.0
|
|||||||||||
|
Repayment of borrowings and lease liabilities
|
( i 19.7
|
)
|
( i 433.8
|
)
|
( i 737.8
|
)
|
||||||
|
Change in short-term loans
|
( i 16.0
|
)
|
||||||||||
|
Additional Leases
|
i 1,779.7
|
|||||||||||
|
Modifications
|
i 864.0
|
|||||||||||
|
Other Changes (*)
|
i 2.9
|
i 10.1
|
( i 8.2
|
)
|
||||||||
|
Balance as at December 31, 2021
|
i 251.5
|
i 3,071.7
|
||||||||||
|
|
(*) Mainly includes discount amortization, adjustments in respect of estimated cashflows and accrual of PIK interest. |
F - 52
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 Employee benefits
| (a) | Composition |
| 2022 | 2021 | |||||||
|
US $ in millions |
||||||||
|
Presented as non-current liabilities:
|
||||||||
|
Present value of obligations (see section (f) below)
|
i 52.9
|
i 70.7
|
||||||
|
Fair value of the plan assets (see section (f) below)
|
( i 26.8
|
)
|
( i 31.1
|
)
|
||||
|
Recognized liability for defined benefit obligations
|
i 26.1
|
i 39.6
|
||||||
|
Termination benefit-liability for early retirement
|
i 6.6
|
i 10.2
|
||||||
|
Other long-term benefits
|
i 12.5
|
i 15.8
|
||||||
|
Non-current
|
i 45.2
|
i 65.6
|
||||||
|
Presented as current liabilities:
|
||||||||
|
Liability for annual leave
|
i 9.0
|
i 9.0
|
||||||
|
Current portion of liability for early retirement
|
i 2.8
|
i 4.3
|
||||||
|
Current (Note 14)
|
i 11.8
|
i 13.3
|
||||||
|
Total employee benefits
|
i 57.0
|
i 78.9
|
||||||
| (b) | Defined contribution pension plans | |
| According to the Israeli Severance Pay Law - 1963, an employee who is dismissed, or who reaches the retirement age, is entitled to severance payments, in a sum equal, in essence, to 8⅓% of his last monthly salary multiplied by the actual months of employment (hereinafter – “Severance Obligation”). The Severance Pay Law allows employers to be relieved from part or all of the Severance Obligation by making regular deposits to pension funds and insurance companies, if it is approved (beforehand) by a relevant regulation or Collective Agreement. | ||
|
The Group makes regular deposits to pension funds and insurance companies. With respect to some of its employees, the Group makes such payments replacing its full Severance Obligation regarding those employees and, therefore, treats those payments as if they were payments to a defined contribution pension plan. With respect to most of the other employees, the Group makes such payments replacing only ( i 6%)/(8⅓%) of the respective Severance Obligation. Therefore, the Company treats those payments as payments to a defined contribution pension plan and treats the remainder (2⅓%)/(8⅓%) as payments to a defined benefit pension plan. The Group’s payments in respect of the above-mentioned, as well as in respect of other contribution plans, during the years ended December 31, 2022, 2021 and 2020, were US$ i 11.8 million, US$ i 9.7 million and US$ i 8.3 million, respectively. |
| (c) | Defined benefit pension plan |
| (i) | The post-employment liability included in the statement of financial position represents the balance of liabilities not covered by deposits and/or insurance policies in accordance with the existing labour agreements, the Severance Pay Law and the salary components which Management believes entitle the employees to receipt of compensation. To cover their pension and severance liabilities, the Company and certain of its subsidiaries make regular deposits with recognized pension and severance pay funds in the employees’ names and purchase insurance policies. |
F - 53
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 Employee benefits (cont’d)
| The reserves in compensation funds include accrued linkage differentials (for Israeli CPI) and accrued interest and are deposited in banks and insurance companies. Withdrawal of the reserve monies is contingent upon fulfilment of detailed provisions in the Severance Pay Law. |
| (ii) | Group retirees receive, in addition to the pension payments, benefits which consist mainly of a holiday gift and vouchers. The Group’s liability in respect of these costs accumulates during the employees’ service period. The contractual costs are in respect of the post-employment period, based on an actuarial calculation for existing retirees and for the serving employees entitled to this benefit according to their contractual retirement age. |
| (d) | Other long-term employee benefits |
|
(i) |
Provision for annual absence |
|
|
Under labour agreement, employees retiring on pension are entitled to certain compensation in respect of unutilised annual absence. The provision was measured based on actuarial calculations. The actuarial assumptions applied include those noted in section (g) below, as well as assumptions based on the Group’s experience according to the likelihood of payment of annual absence pay at retirement age. |
|
(ii) |
Company participation in education fees for children of employees studying in higher educational institutions |
|
|
Under the labour agreement, employees are entitled to the participation of the Company in education fees for their children. The provision was measured based on actuarial calculations, by applying actuarial assumptions included in section (g) below, as well as assumptions based on the Company’s experience according to the likelihood of payment of educational fees. |
| (e) | Benefits in respect of voluntary early retirement | |
|
According to agreements reached with certain employees who retired early, these employees are entitled to a pension from the Group until they reach regular retirement age. A provision, computed based on the present value of the early retirement payments, is included in the Consolidated Statement of Financial Position. |
| (f) | Movement in the present value of the defined benefit pension plan obligation |
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Defined benefit obligation at January 1
|
i 70.7
|
i 70.4
|
||||||
|
Benefits paid by the plan
|
( i 4.4
|
)
|
( i 4.9
|
)
|
||||
|
Current service cost and interest
|
i 5.3
|
i 4.2
|
||||||
|
Foreign currency exchange changes in plan measured in a currency
|
||||||||
|
different from the entity’s functional currency
|
( i 7.0
|
)
|
i 1.1
|
|||||
|
Actuarial gains recognized in other comprehensive income
|
( i 11.7
|
)
|
( i 0.1
|
)
|
||||
|
Defined benefit obligation at December 31
|
i 52.9
|
i 70.7
|
||||||
F - 54
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 Employee benefits (cont’d)
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Fair value of plan assets at January 1
|
i 31.1
|
i 30.7
|
||||||
|
Contribution paid by the Group
|
i 2.1
|
i 0.3
|
||||||
|
Benefits paid by the plan
|
( i 2.0
|
)
|
( i 2.5
|
)
|
||||
|
Return on plan assets
|
i 0.8
|
i 0.7
|
||||||
|
Foreign currency exchange changes in plan measured in a currency
|
||||||||
|
different from the entity's functional currency
|
( i 2.5
|
)
|
i 0.6
|
|||||
|
Actuarial gains (loss) recognized in other comprehensive income
|
( i 2.7
|
)
|
i 1.3
|
|||||
|
Fair value of plan assets at December 31
|
i 26.8
|
i 31.1
|
||||||
| Plan assets composition |
|
|
|
2022
|
2021
|
|||||||
|
US $ in millions
|
||||||||
|
Equity instruments
|
i 8.5
|
i 9.4
|
||||||
|
Debt instruments
|
i 12.8
|
i 15.0
|
||||||
|
Cash and deposits
|
i 2.4
|
i 2.0
|
||||||
|
Other
|
i 3.1
|
i 4.7
|
||||||
|
i 26.8
|
i 31.1
|
|||||||
| (g) | Actuarial assumptions | |
|
The principal actuarial assumptions at the reporting date: |
| (i) | Annual resignation and dismissal rates were determined on the basis of the past experience of the Group; for employees of the Company the resignation rate is estimated between i 6.0% and i 10.0% and the dismissal rate is estimated between i 1.0% and i 2.0%. For the subsidiaries, the resignation rate is estimated at between i 2.6% and i 4.2% and the dismissal rate is estimated at between i 2.0% and i 4.2%. |
| (ii) | The relevant discount rates are as follows: |
|
|
2022 |
2021 |
2020 |
|||||||||
|
Early retirement |
i 4.7%- i 4.8 |
% |
i 1.0%- i 1.2 |
% |
i 0.9%- i 1.0 |
% |
||||||
|
Annual absence |
i 5.1%- i 5.2 |
% |
i 2.6%- i 2.9 |
% |
i 2.4%- i 2.5 |
% |
||||||
|
Tuition fees |
i 4.8%- i 5.0 |
% |
i 1.6%- i 2.2 |
% |
i 1.3%- i 1.9 |
% |
||||||
|
Defined benefit plan |
i 3.8%- i 5.3 |
% |
i 0.7%- i 3.3 |
% |
i 1.0%- i 2.7 |
% |
||||||
F - 55
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 Employee benefits (cont’d)
| (iii) | Assumptions regarding future benefits growth were made based on the Group’s experience and management’s assessments. For employees, the average future annual salary growth rate applied in 2022, 2021 and 2020 ranged between i 2.0%- i 5.8%,
i 2.0%- i 5.0% and i 2.0%- i 4.8%,
respectively.
|
|
|
Assumptions regarding future mortality are based on published statistics and mortality tables. |
|
(iv) |
The overall long-term annual rate of return on assets applied in 2022, 2021 and 2020 ranged between i 2.6%- i 5.1%, i 0.9%- i 2.9% and i 0.7%- i 4.0%, respectively. The long-term annual rate of return addresses the portfolio as a whole, based exclusively on historical returns, without adjustments. |
| (v) | Sensitivity analysis |
| Reasonably possible changes to one of the relevant actuarial assumptions, assuming other assumptions constant, would have affected the defined benefit obligation by the amounts below: |
|
|
Defined benefit obligation |
|||||||
|
|
||||||||
|
|
Increase |
Decrease |
||||||
|
|
US $ in millions |
|||||||
|
Discount rate ( i 0.5% movement) |
( i 1.4 |
) |
i 1.3 |
|||||
|
Future benefit growth ( i 0.5% movement) |
i 2.2 |
( i 2.2 |
) |
|||||
| As at December 31, 2022, the weighted average duration of the defined benefit obligation was i 9 years (as at December 31, 2021 - i 10 years). | |
| In 2023, the Group expects to pay about approximately US$ i 0.6 million in contributions to the funded defined benefit pension plan. |
| (h) | The Company’s Board of Directors approved compensation plans for the Company's employees and management (the "Plans"), payable as cash bonuses, in respect of each of the years 2022, 2021 and 2020. The bonuses under the Plans were subject to the satisfaction of certain pre-conditions, such as profitability and minimum EBITDA, while the actual bonus payable to each participant under the Plans is based on each participant's meeting of certain key performance indicators (determined based on the overall performance of the Company and the individual performance of each participant). The accrual for bonuses is presented within the current liabilities. |
F - 56
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13 Employee benefits (cont’d)
| (i) | During the second half of 2018, the Company’s Board of Directors approved the adoption of a share option plan that allows for the grant of options to purchase ordinary shares of the Company, as well as specific grants to certain members of management, which constitute less than i 5% of the Company’s share capital. |
|
During 2020 the Company's Board of Directors approved the adoption of the 2020 share incentive plan, pursuant to which the Company may grant share-based awards. According to such plan, the awards will vest in the course of a four years period. Vested awards will be exercisable on a “cashless basis”, expiring on the fifth anniversary of their grant date, subject to early termination and acceleration provisions. The Company’s Board of directors further approved the reservation of a maximum aggregate number of i 1,000,000 ordinary shares of the Company, which shall be available for issuance under its Share Option Plans. On March 9, 2022, the Board of directors approved an increase of the number of shares available for issuance by an additional i 3,200,000 ordinary shares. |
|
| In respect of options to purchase ordinary shares, granted further to the above-mentioned plans, see Note 11(c). |
14 Trade and other payables
i|
|
2022 |
2021 |
||||||
|
|
US $ in millions |
|||||||
|
Trade payables |
i 427.2 |
i 433.9 |
||||||
|
Other payables |
||||||||
|
Salaries and related payables |
i 82.3 |
i 64.4 |
||||||
|
Provision for annual leave and early retirement (see Note 13(a)) |
i 11.8 |
i 13.3 |
||||||
|
Government institutions |
i 291.2 |
i 526.9 |
||||||
|
Accrued interest |
i 5.3 |
i 6.1 |
||||||
|
Accrued expenses |
i 43.7 |
i 18.4 |
||||||
|
Advances from customers and others |
i 11.5 |
i 10.2 |
||||||
|
Payables and other credit balances |
i 23.2 |
i 13.1 |
||||||
|
|
i 469.0 |
i 652.4 |
||||||
|
|
i 896.2 |
i 1,086.3 |
||||||
All of the trade and other payables are contractual to be settled within one year or are repayable on demand.
The Group’s exposure to currency, liquidity and market risks related to trade and other payables is disclosed in Note 29.
/
F - 57
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
15 Provisions
i|
|
2022
|
|||
|
|
US $
in millions |
|||
|
Balance at the beginning of the year
|
|
i 28.3
|
||
|
Provisions added during the year
|
|
i 31.9
|
||
|
Provisions utilized during the year
|
|
( i 7.3
|
) | |
|
Provisions reversed during the year
|
|
( i 2.7
|
) | |
|
Balance at the end of the year
|
|
i 50.2
|
||
| Legal contingencies | |
| For legal matters addressed against the Group, see Note 27. | |
| Claims covered by insurance | |
| Claims covered by insurance represent mainly claims for damage to customers’ cargo that was shipped at the responsibility of the Company. The Company has agreements with insurance companies that indemnify it in respect of such damages (other than the deductible amounts provided in the insurance agreements). Regarding assets that were recognized in respect thereto, see Note 8, insurance recoveries. |
16 Income from voyages and related services
i|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Shipping |
i 12,391.7 |
i 10,540.2 |
i 3,920.3 |
|||||||||
|
Other |
i 169.9 |
i 188.5 |
i 71.4 |
|||||||||
|
|
i 12,561.6 |
i 10,728.7 |
i 3,991.7 |
|||||||||
| See also Note 25 with respect to disaggregation of revenues by geographical trade zone. |
F - 58
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17 Operating expenses and cost of services
i|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Wages, maintenance and other vessel operating costs |
i 34.5 |
i 14.3 |
i 13.0 |
|||||||||
|
Expenses relating to fleet equipment (mainly containers and chassis) |
i 29.1 |
i 28.1 |
i 26.6 |
|||||||||
|
Fuel and lubricants |
i 1,434.8 |
i 739.8 |
i 361.6 |
|||||||||
|
Insurance |
i 15.2 |
i 11.5 |
i 9.6 |
|||||||||
|
Expenses related to cargo handling |
i 1,981.6 |
i 1,879.9 |
i 1,432.9 |
|||||||||
|
Port expenses |
i 359.0 |
i 255.5 |
i 206.9 |
|||||||||
|
Agents’ salaries and commissions |
i 261.1 |
i 238.8 |
i 159.1 |
|||||||||
|
Cost of related services and sundry |
i 216.1 |
i 170.9 |
i 100.5 |
|||||||||
|
Slots purchase and hire of vessels |
i 398.8 |
i 530.5 |
i 497.9 |
|||||||||
|
Hire of containers |
i 34.3 |
i 36.6 |
i 27.0 |
|||||||||
|
|
i 4,764.5 |
i 3,905.9 |
i 2,835.1 |
|||||||||
18 Other operating income
i|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Capital gain, net |
i 42.7 |
i 8.7 |
i 8.8 |
|||||||||
|
Sundry |
i 6.2 |
i 5.8 |
i 3.8 |
|||||||||
|
|
i 48.9 |
i 14.5 |
i 12.6 |
|||||||||
19 Other operating expenses
i|
|
2022 |
2021 |
2020 |
|||||||||
|
US $ in millions |
||||||||||||
|
Impairment loss (recovery) |
|
( i 4.3 |
) | |||||||||
|
Sundry |
i 0.9 |
i 1.0 |
|
|||||||||
|
|
i 0.9 |
i 1.0 |
( i 4.3 |
) | ||||||||
F - 59
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
20 General and administrative expenses
i
|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Salaries and related expenses |
i 238.8 |
i 193.0 |
i 115.3 |
|||||||||
|
Office equipment and maintenance |
i 22.1 |
i 15.1 |
i 11.6 |
|||||||||
|
Depreciation and amortization |
i 26.0 |
i 22.9 |
i 22.5 |
|||||||||
|
Consulting, legal fees and insurance |
i 22.4 |
i 19.9 |
i 4.1 |
|||||||||
|
Travel and vehicle expenses |
i 5.7 |
i 2.0 |
i 1.7 |
|||||||||
|
Other |
i 23.3 |
i 14.8 |
i 8.0 |
|||||||||
|
|
i 338.3 |
i 267.7 |
i 163.2 |
|||||||||
21 Personnel expenses
i
|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Salaries and related expenses included in: |
||||||||||||
|
Operating expenses and cost of services |
i 250.9 |
i 218.3 |
i 145.4 |
|||||||||
|
General and administrative |
i 238.8 |
i 193.0 |
i 115.3 |
|||||||||
|
|
i 489.7 |
i 411.3 |
i 260.7 |
|||||||||
22 Depreciation and amortization expenses
i
|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Operating expenses |
i 1,370.3 |
i 756.3 |
i 291.6 |
|||||||||
|
General and administrative expenses |
i 26.0 |
i 22.9 |
i 22.5 |
|||||||||
|
|
i 1,396.3 |
i 779.2 |
i 314.1 |
|||||||||
F - 60
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
23 Finance income and expenses
i|
(a) |
Finance income |
|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Interest income on debt instruments at amortized cost |
i 60.1 |
i 7.0 |
i 1.9 |
|||||||||
|
Interest income on debt instruments at fair value through other comprehensive income |
i 24.0 |
i 0.3 | ||||||||||
|
Gain from repurchase of debt |
|
i 6.2 |
||||||||||
|
Net foreign currency exchange rate differences |
i 46.8 |
i 11.5 |
||||||||||
|
|
i 130.9 |
i 18.8 |
i 8.1 |
|
||||||||
|
(b) |
Finance expenses |
|
|
2022 |
2021 |
2020 |
|||||||||
|
|
US $ in millions |
|||||||||||
|
Interest expenses |
i 224.8 |
i 168.9 |
i 150.4 |
|||||||||
|
Adjustments to financial liabilities in respect of estimated cashflows and repayments (*) |
i 5.1 |
i 3.9 | i 22.0 | |||||||||
|
Loss reclassified on derecognition of investment in debt instruments at fair value through other comprehensive income |
i 2.6 | |||||||||||
|
Net foreign currency exchange rate differences |
|
i 13.6 |
||||||||||
|
Impairment losses on trade and other receivables |
i 6.9 |
i 2.8 |
i 3.3 |
|||||||||
|
|
i 239.4 |
i 175.6 |
i 189.3 |
|||||||||
(*) In 2022, includes US$ i 5 million expense in respect of the early repayment of Tranche-E (see also Note 1(b)).
F - 61
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
| 24 |
Income tax
|
| (a) |
Measurement of results for tax purposes
|
|
2022
|
2021
|
2020
|
||||||||||
|
US $ in millions
|
||||||||||||
|
Current tax expenses
|
||||||||||||
|
Current year
|
i 1,360.4
|
i 892.8
|
i 16.2
|
|||||||||
|
Taxes in respect of previous years
|
( i 2.6
|
)
|
( i 2.0
|
)
|
i 0.8
|
|||||||
|
i 1,357.8
|
i 890.8
|
i 17.0
|
||||||||||
|
Deferred tax expenses
|
||||||||||||
|
Origination and reversal of temporary differences
|
i 40.5
|
i 119.6
|
( i 0.4
|
)
|
||||||||
|
Total income taxes in income statements
|
i 1,398.3
|
i 1,010.4
|
i 16.6
|
|||||||||
| (b) |
Reconciliation of effective tax rate
|
|
2022
|
2021
|
2020
|
||||||||||
|
US $ in millions
|
||||||||||||
|
Profit for the year
|
i 4,629.0
|
i 4,649.1
|
i 524.2
|
|||||||||
|
Income taxes
|
i 1,398.3
|
i 1,010.4
|
i 16.6
|
|||||||||
|
Profit excluding income taxes
|
i 6,027.3
|
i 5,659.5
|
i 540.8
|
|||||||||
|
Income tax using the domestic corporation tax rate
|
i 1,386.3
|
i 1,301.7
|
i 124.4
|
|||||||||
|
Current year losses for which no deferred tax asset was recognized
|
i 2.3
|
|||||||||||
|
Utilization of carried forward tax losses for which no deferred tax assets were recognized
|
( i 287.5
|
)
|
( i 115.9
|
)
|
||||||||
|
Effect of tax rates in foreign jurisdictions
|
i 0.4
|
i 1.2
|
i 3.9
|
|||||||||
|
Non-deductible expenses
|
i 7.3
|
i 5.9
|
i 0.2
|
|||||||||
|
Effect of different tax rates on specific gains
|
i 3.8
|
( i 7.6
|
)
|
i 4.1
|
||||||||
|
Effect of share of loss (profits) of associates
|
i 0.2
|
( i 0.9
|
)
|
( i 0.8
|
)
|
|||||||
|
Other
|
( i 2.0
|
)
|
( i 2.4
|
)
|
i 0.7
|
|||||||
|
i 1,398.3
|
i 1,010.4
|
i 16.6
|
|
|||||||||
/
F - 62
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24 Income tax (Cont’d)
(c) Deferred tax assets and liabilities
(i) Recognized deferred tax assets and liabilities
i| Deferred tax assets and liabilities are attributable to the following: |
|
|
|
Assets |
|
Liabilities |
|
Net |
||||||||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||
|
|
|
US $ in millions |
||||||||||||||||||||||
|
Vessels, containers, |
|
|
|
|
|
( i 185.6 |
) |
( i 144.7 |
) |
|
( i 185.6 |
) |
|
( i 144.7 |
) |
|||||||||
|
Financial instruments |
|
i 13.4 |
|
|
|
|
|
|
|
i 13.4 |
|
|
||||||||||||
|
Employee benefits |
|
i 12.9 |
|
i 17.6 |
|
|
|
|
|
i 12.9 |
|
i 17.6 |
||||||||||||
|
Tax losses carry-forwards |
|
i 6.8 |
|
i 9.0 |
|
|
|
|
|
i 6.8 |
|
i 9.0 |
||||||||||||
|
Other items |
|
i 3.4 |
|
|
|
|
|
( i 0.4 |
) |
|
i 3.4 |
|
|
( i 0.4 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net deferred tax |
||||||||||||||||||||||||
|
assets (liabilities) |
|
i 36.5 |
|
i 26.6 |
|
( i 185.6 |
) |
( i 145.1 |
) |
|
( i 149.1 |
) |
|
( i 118.5 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net deferred tax assets |
|
|
|
|
|
|
|
|
|
i 2.3 |
|
i 2.1 |
||||||||||||
|
Net deferred tax liabilities |
||||||||||||||||||||||||
|
of the financial position |
|
|
|
|
|
|
|
|
|
( i 151.4 |
) |
|
( i 120.6 |
) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
( i 149.1 |
) |
|
( i 118.5 |
) | ||||||||||
|
(*) |
In accordance with IsraeliIncome Tax Regulations, the Group is entitled to deduct depreciation for vessels and related equipment at a higher rate than recorded in its financial statements. |
(ii) Unrecognized deferred tax assets
On December 31, 2022 the group had carry forward tax losses in the amount of US$ i 90 million (2021: US$ i 102 million, 2020: US$ i 1,799 million).
Deferred tax assets in the amount of US$ i 14 million at December 31, 2022 (2021: US$ i 15 million, 2020: US$ i 297 million) have not been recognized in respect of the tax losses, since it is not probable that future taxable profits will be available against which the Group can utilize the benefits therefrom. Under existing Israeli tax laws, there is no time limit for utilizing tax losses.
F - 63
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24 Income tax (Cont’d)
|
Vessels containers assets |
Financial instruments |
Employee |
Accumulated |
Other |
Total | |||||||||||||||||||
|
US $ in millions |
||||||||||||||||||||||||
|
Balance at January 1, 2022 |
|
( i 144.7 |
) |
|
|
|
i 17.6 |
|
i 9.0 |
|
( i 0.4 |
) |
|
( i 118.5 |
) | |||||||||
|
Recognized in profit or loss |
|
( i 40.9 |
) |
|
i 3.1 |
|
( i 4.3 |
) |
( i 2.2 |
) |
i 3.8 |
|
( i 40.5 |
) |
||||||||||
|
Recognized in other comprehensive income |
|
|
|
i 10.3 |
|
( i 0.4 |
) |
|
|
|
|
|
i 9.9 |
|
||||||||||
|
Balance at December 31, 2022 |
|
( i 185.6 |
) |
|
i 13.4 |
|
i 12.9 |
|
i 6.8 |
|
i 3.4 |
|
|
( i 149.1 |
) |
|||||||||
|
Vessels containers assets |
Financial instruments |
Employee |
Accumulated |
Other |
Total |
|||||||||||||||||||
|
US $ in millions |
||||||||||||||||||||||||
|
Balance January 1, 2021 |
( i 144.5 |
) |
i 13.4 |
i 16.9 |
i 117.7 |
( i 2.4 |
) |
i 1.1 |
||||||||||||||||
|
Recognized in profit or loss |
( i 0.2 |
) |
( i 13.4 |
) |
i 0.4 |
( i 108.7 |
) |
i 2.5 |
( i 119.4 |
) | ||||||||||||||
|
Recognized in other comprehensive income |
|
|
i 0.3 |
|
( i 0.5 |
) |
( i 0.2 |
) | ||||||||||||||||
|
Balance December 31, 2021 |
( i 144.7 |
) |
|
i 17.6 |
i 9.0 |
( i 0.4 |
) |
( i 118.5 |
) | |||||||||||||||
| (e) | Tax assessments | |
|
The tax assessments of the Company through (and including) the year 2020 are considered to be final. |
F - 64
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
25 Segment information
ZIM is managed as i one operating unit, generating revenues from operating a global liner service network of cargo shipping and related services.
The Group service 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, reflecting the Group’s service, provided throughout its global network, as follows: |
|
|
2022 |
2021 |
2020 |
|||||||||
|
US $ in millions |
||||||||||||
|
Freight revenues from containerized cargo: |
||||||||||||
|
Pacific |
i 5,504.2 |
i 5,278.8 |
i 1,860.6 |
|||||||||
|
Cross-Suez |
i 1,528.5 |
i 1,254.2 |
i 392.7 |
|||||||||
|
Atlantic |
i 1,231.3 |
i 960.8 |
i 577.4 |
|||||||||
|
Intra-Asia |
i 1,945.9 |
i 1,714.6 |
i 453.1 |
|||||||||
|
Latin America |
i 742.3 |
i 490.3 |
i 208.4 |
|||||||||
|
|
i 10,952.2 |
i 9,698.7 |
i 3,492.2 |
|||||||||
|
|
||||||||||||
|
Other revenues (*) |
i 1,609.4 |
i 1,030.0 |
i 499.5 |
|||||||||
|
|
i 12,561.6 |
i 10,728.7 |
i 3,991.7 |
|||||||||
| (*) Mainly related to demurrage, value-added services and non-containerized cargo. |
F - 65
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
26 Commitments
Commitments are mainly in respect of future leases, present short-term leases, purchase obligations and other service charges (mainly denominated in United States dollar).
As at December 31, 2022, the projected future payments are as follows:
|
Related party
|
Other
|
Total
|
||||||||||
|
US $ in millions
|
||||||||||||
|
2023
|
i 18.9
|
i 617.1
|
i 636.0
|
|||||||||
|
2024
|
i 104.0
|
i 1,055.1
|
i 1,159.1
|
|||||||||
|
2025
|
i 51.7
|
i 951.6
|
i 1,003.3
|
|||||||||
|
2026
|
i 51.7
|
i 843.1
|
i 894.8
|
|||||||||
|
2027 and thereafter
|
i 231.6
|
i 4,724.2
|
i 4,955.8
|
|||||||||
|
i 457.9
|
i 8,191.1
|
i 8,649.0
|
||||||||||
The above schedule includes the Company’s commitments in respect of the following chartering agreements:
In February 2021, the Company entered into a strategic agreement with Seaspan, for the long-term charter of i ten i 15,000 TEU liquefied natural gas (LNG) dual-fuel container vessels, intended to be delivered between February 2023 and January 2024 and to be deployed on the Company’s Asia-US East Coast Trade.
In July 2021, the Company entered into an additional strategic agreement with Seaspan, for the long-term charter of i fifteen i 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels, intended to be delivered between the fourth quarter of 2023 and throughout 2024 and to be deployed across the Company’s various global-niche trades.
Pursuant to each of the above-mentioned agreements, the Company will charter the vessels for a period of i i 12 years / . The Company expects to incur, in annualized charter hire costs per vessel, approximately US$ i 17 million in respect of the abovementioned i 15,000 TEU vessels, and approximately US$ i 13 million in respect of the abovementioned i 7,000 TEU vessels, over the term of the agreements.
See also Note 1(b) regarding additional agreements that the Company entered into during 2022 in respect of chartering vessels and purchasing liquified natural gas (LNG).
F - 66
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
27 Contingencies
|
(a) |
The Group is involved in a number of legal matters, including applications to approve the filing of class actions, some of which may involve significant amounts. The developments and/or resolutions in some of such matters, including through either negotiations or litigation, are subject to a high level of uncertainty that cannot be reliably quantified at the reporting date. In addition, due to market conditions, regulators in certain jurisdictions have become more active in their regulatory oversight over our industry. |
| As at December 31, 2022, the total amount claimed with respect to legal matters, excluding those discloses below, as well as excluding claims in the ordinary course of business, which are covered by insurance (and in respect of which the Company has included a provision in the amount it is likely to bear, based on past experience) is approximately US$ i 10 million. Regarding the provision recognized in respect of legal matters, including insurance claims - see Note15. | ||
| In addition, within the ordinary course of business, the Company and its subsidiaries provided guaranties, which as at December 31, 2022 amounted to approximately US$ i 8 million. |
|
(b) |
During 2017, the Company was served, together with another defendant, with an application to the Central District Court in Israel to approve the filing of class action in Israel, related to alleged breaches of competition laws in respect of carriage of vehicles form South-East Asia to Israel. The applicants estimated the total damage caused to the class of plaintiffs at a total of NIS i 403 million (approximately US$ i 115 million) based on an expert opinion attached to the application, although it may not necessarily be correct and/or relevant to the Company. Management, based on legal advice, believes that it has good defense arguments for dismissing the application of the claim to be approved as a class action and it is more likely than not that such application will be dismissed. |
|
(c) |
In one jurisdiction, courts ruled against shipping agencies operating in this jurisdiction in respect of alleged overcharging of local charges from customers, including a subsidiary of the Company. The shipping agencies (including the subsidiary) have appealed to the local Supreme Court against this ruling. The shipping agencies are conducting negotiations to achieve an out of court settlement. |
|
| (d) |
In January 2022, an industry-related investigation involving a subsidiary of the Company was initiated in a certain jurisdiction. Since then, there were no significant updates relating to this matter.
|
|
(e) |
During 2020, in a certain jurisdiction, a claim was filed against the Company, together with other carriers operating in that jurisdiction, regarding competition and commercial issues. The involved carriers jointly responded to the claim, as well as filed a motion for its dismissal which was later denied. Subsequently, the involved carriers have filed a motion for leave to file an appeal.
|
F - 67
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
27 Contingencies (Cont’d)
| (f) |
During 2020, in a certain jurisdiction, the Company was served with a demand letter alleging the use by the Company of confiscated property in another jurisdiction for which the potential plaintiffs are allegedly entitled to compensation. Management, based on legal advice, believes it is more likely than not that this matter, if materialized to an asserted claim, will be rejected. |
|
|
(g) |
During 2021, the Company was served with a claim for an alleged patents infringement filed against it in the US. In March 2022, the plaintiff voluntarily withdrew his claim, thus resulting in the closure of the related proceedings. |
|
| (h) |
In September 2022, a certain customer filed a complaint against the Company with the Federal Maritime Commission (FMC), alleging that the Company overly charged certain demurrage, detention and storage fees, in violation of the applicable regulation.
|
|
| (i) |
In September 2022, following communications between the parties, the Company was approached by a state regulator in a certain jurisdiction indicating that the Company did not meet the local environmental regulation, including an initial informal assessment by that regulator as to the Company’s scope of liability, subject to Company’s possible counter arguments.
|
|
(j) |
The legal matters mentioned in sections (c), (d) and (e) above do not include a specific claimed amount, and/or, based on the Company’s legal advisors, the outcome of which, if any, can’t be assessed in this preliminary stage. Those matters, based on their alleged claims, regardless of their validity and merits, may each result in a potential exposure of tens of millions of US dollars. However, the developments and/or resolutions in such matters, including through either negotiations or litigation, are subject to significant level of uncertainty that cannot be reliably quantified at the reporting date. |
|
(k) |
Based on legal advice and management estimation, the Company included a provision in its financial statements, with respect to certain legal matters. |
F - 68
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28 Related parties
| The Group’s transactions with related parties as detailed below are mainly comprised of compensation to directors and key-management personnel, transactions with associates and transactions with entities which are controlled by or under joint control of those which retain significant influence over the Company. |
| (a) |
Associates: |
|
(i) |
Transactions: |
|
|
2022 |
2021 |
2020 |
||||||||||||||||
|
Note |
US $ in millions |
||||||||||||||||||
|
Other operating income |
18 |
i 0.4 |
i 0.4 |
i 0.1 |
|||||||||||||||
|
Operating expenses and cost of services |
17 |
i 11.0 |
i 6.0 |
i 2.2 |
|||||||||||||||
|
Finance income |
23(a) |
i 0.1 |
|||||||||||||||||
| (ii) |
Balances: |
|
|
|
2022 |
2021 |
|||||||||||||
|
Note |
US $ in millions |
|||||||||||||||
|
Trade and other receivables |
8 |
i 18.5 |
i 22.5 |
|||||||||||||
|
Trade and other payables |
14 |
i 0.3 |
i 0.2 |
|||||||||||||
|
2022 |
2021 |
2020 |
||||||||||
|
US $ in millions |
||||||||||||
|
Short-term employee benefits |
i 5.6 |
i 5.9 |
i 5.4 |
|||||||||
|
Share-based compensation |
i 5.7 |
i 9.4 |
i 0.2 |
|||||||||
|
Long-term employee benefits |
|
i 0.5 |
|
i 0.5 |
|
i 0.4 |
||||||
|
(*) See also Notes 11(c), 13(h) and 13(i). |
F - 69
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28 Related parties (cont’d)
|
|
2022 |
2021 |
2020 |
||||||||||||||||
|
Note |
US $ in millions |
||||||||||||||||||
|
Income from voyages and related services |
16 |
i 19.5 |
i 16.8 |
i 8.1 |
|||||||||||||||
|
Operating expenses and cost of services |
17 |
i 1.4 |
i 5.0 |
i 7.3 |
|||||||||||||||
|
Finance expenses |
23 (b) |
|
i 4.4 |
i 7.7 |
i 5.4 |
||||||||||||||
|
(ii) |
Transactions with directors: |
|
2022 |
2021 |
2020 |
||||||||||
|
US $ in millions |
||||||||||||
|
Directors fees |
i 1.1 |
i 1.2 |
i 1.3 |
|||||||||
|
Share-based compensation |
i 1.7 | |||||||||||
|
(iii) |
Balances: |
|
|
|
|
2022 |
2021 |
|||||||||
|
Note |
US $ in millions |
|||||||||||
|
Trade and other receivables |
8 |
i 2.4 |
i 3.3 |
|||||||||
|
Trade and other payables |
14 |
i 0.2 |
i 0.5 |
|||||||||
|
Lease liabilities (*) |
7 |
i 41.4 |
i 114.3 |
|||||||||
F - 70
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
i
29 Financial risk management
Overview
The Group has exposure to the following risks, related to financial instruments:
|
▪
|
Credit risk
|
|
|
▪
|
Liquidity risk
|
|
|
|
|
|
|
▪
|
Market risk
|
| This Note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing such risks, as well as the Group’s management of its capital. Further quantitative disclosures are included throughout the Financial Statements. | |
| In order to manage these risks and as described hereunder, the group executes from time to time transactions of derivative financial instruments. | |
| The CFO has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Company’s Board of Directors has appointed the Audit Committee to deal with, among other issues, certain financial reporting aspects of the Group’s activities and monitoring the Group’s hedging policies. The Company’s Chief Executive Officer also appointed an Investment Committee to monitor the Company’s investing activities and compliance with its investment policy. The Investment Committee, chaired by the Company’s Chief Executive Officer, provides periodical updates to the Company’s Audit Committee and Board of Directors on its activities. |
Trade and other receivables
The Group’s exposure to credit risk is influenced by the individual characteristics of each significant customer. The demographics of the Group’s customer base, including the default risk of the industry and country, in which customers operate, has also an influence on credit risk.
The income of the Group is derived from cargo shipping and related services in different countries worldwide. The exposure to a concentration of credit risk with respect to trade receivables is limited due to the relatively large number of customers, wide geographic spread and the ability in some cases to auction the contents of the container, the value of which is most likely to be greater than the customer’s debt for the services provided with respect to such container.
The Group has established a credit policy under which each new credit customer is analyzed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes financial analysis from external sources. Credit limits are established for each customer, representing its maximum outstanding balance, available upon approval by the relevant level of authorization. These limits are reviewed periodically, at least once a year. Customers that fail to meet the Group’s benchmark creditworthiness may transact with the Group only on a cash basis.
F - 71
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
29 Financial risk management (cont'd)
Most of the Group’s customers have been transacting with the Group for a few years and losses have occurred infrequently. Trade and other receivables relate mainly to the Group’s wholesale customers. Customers that are graded as “high risk” are placed on a restricted customer list and future sales are made on a cash basis, unless otherwise approved by the credit committee.
In some cases, based on their robustness, customers are requested to provide guarantees.
Provisions for doubtful debts are made to reflect the expected credit losses related to debts whose collection is doubtful per management's estimation (see also Note 23(b)).
Investments
During the second half of 2021, the Company adopted a new investment policy in respect of its cash reserves, mainly comprised of investments in time deposits, fixed income instruments and liquidity funds, all of which denominated in US dollar, aiming to achieve diversification, while maintaining conservative credit risk, liquidity and capital preservation. According to such policy, the Company invests in Investment-Grade rated debt instruments, based on leading credit rating agencies. As of December 31, 2022, the weighted average duration of the Company’s investments in debt instruments was i 2.2 years. The Company’s investment committee meets, at least on a quarterly basis, to review the performance of the portfolio managers, discuss market trends and investment outlook, while ensuring compliance with the Company’s investment policy.
Exposure to credit risk
Cash and cash equivalents and bank deposits – Deposits and cash balances at banks are primarily held at banks with a credit rating of at least BBB+.
Other investment instruments – carrying amount by credit rating:
i|
2022
|
||||
|
US $ in millions
|
||||
|
AA- to AAA
|
i 986.9
|
|||
|
A- to A+
|
i 295.6
|
|||
|
BBB- to BBB+
|
i 248.7
|
|||
|
Total Outstanding
|
i 1,531.2
|
|||
?
Trade receivables
The carrying amount of financial assets represents the maximum credit exposure.
As at December 31, 2022 credit to customers in the amount of approximately US$ i 232.3 million is guaranteed by credit insurance.
F - 72
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
29 Financial risk management (cont’d)
(2) Liquidity risk
The Group monitors its level of cash and highly marketable investments to ensure sufficient liquidity to meet its obligations and expected needs, considering the Group’s short-term and long-term plans and forecasts.
The following are the contractual maturities of financial liabilities, including estimated interest payments:
i?
|
Carrying
|
Contractual
|
More than
|
|||||||||||||||||||||||||
|
amount
|
cash flows
|
0-1 years
|
1-2 years
|
2-5 years
|
5 years
|
||||||||||||||||||||||
|
Note
|
US $ in millions
|
||||||||||||||||||||||||||
|
Non-derivative financial liabilities
|
|||||||||||||||||||||||||||
|
Long-term loans and other liabilities
|
12(a)
|
|
i 119.4
|
i 141.4
|
i 50.0
|
i 20.1
|
i 37.7
|
i 33.6
|
|||||||||||||||||||
|
Lease liabilities
|
7(b)
|
|
i 4,159.5
|
i 4,770.7
|
i 1,654.6
|
i 1,429.3
|
i 1,536.5
|
i 150.3
|
|||||||||||||||||||
|
Short-term borrowings
|
12(a)
|
|
i 53.0
|
i 53.0
|
i 53.0
|
||||||||||||||||||||||
|
Trade and other payables
|
14
|
i 583.9
|
i 583.9
|
i 583.9
|
|||||||||||||||||||||||
|
i 4,915.8
|
i 5,549.0
|
i 2,341.5
|
i 1,449.4
|
i 1,574.2
|
i 183.9
|
||||||||||||||||||||||
|
Carrying
|
Contractual
|
More than
|
|||||||||||||||||||||||||
|
amount
|
cash flows
|
0-1 years
|
1-2 years
|
2-5 years
|
5 years
|
||||||||||||||||||||||
|
Note
|
US $ in millions
|
||||||||||||||||||||||||||
|
Non-derivative financial liabilities
|
|||||||||||||||||||||||||||
|
Long-term loans and other liabilities
|
12(a)
|
|
i 142.9
|
i 167.0
|
i 27.9
|
i 42.0
|
i 97.1
|
||||||||||||||||||||
|
Lease liabilities
|
7
|
i 3,071.7
|
i 3,436.5
|
i 1,022.7
|
i 912.6
|
i 1,267.1
|
i 234.1
|
||||||||||||||||||||
|
Short-term borrowings
|
12(a)
|
|
i 106.5
|
i 106.9
|
i 106.9
|
||||||||||||||||||||||
|
Trade and other payables
|
14
|
i 534.4
|
i 534.4
|
i 534.4
|
|||||||||||||||||||||||
|
i 3,855.5
|
i 4,244.8
|
i 1,691.9
|
i 954.6
|
i 1,364.2
|
i 234.1
|
||||||||||||||||||||||
F - 73
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Group is exposed to currency risk on purchases, receivables and payables where they are denominated in a currency other than the United States dollar.
The Group’s exposure to foreign currency risk was as follows based on notional amounts:
|
US$
|
NIS
|
Others
|
||||||||||
|
US $ in millions
|
US $ in millions
|
US $ in millions
|
||||||||||
|
Non-current assets
|
||||||||||||
|
Other receivables
|
i 110.9
|
i 1.2
|
||||||||||
|
Other non-current investments
|
i 1,370.5
|
i 1.2
|
i 1.5
|
|||||||||
|
Current assets
|
||||||||||||
|
Other current investments
|
i 2,221.7
|
i 0.1
|
i 11.2
|
|||||||||
|
Trade and other receivables
|
i 693.7
|
i 0.8
|
i 92.0
|
|||||||||
|
Cash and cash equivalents
|
i 930.0
|
i 11.7
|
i 80.4
|
|||||||||
|
Non-current liabilities
|
||||||||||||
|
Loans and other liabilities
|
( i 89.0
|
)
|
( i 3.0
|
)
|
||||||||
|
Lease liabilities
|
( i 2,749.0
|
)
|
( i 9.7
|
)
|
( i 20.0
|
)
|
||||||
|
Current liabilities
|
||||||||||||
|
Short term borrowings and current maturities
|
( i 95.4
|
)
|
( i 0.7
|
)
|
||||||||
|
Lease liabilities
|
( i 1,366.0
|
)
|
( i 7.9
|
)
|
( i 6.9
|
)
|
||||||
|
Trade and other payables
|
( i 418.5
|
)
|
( i 100.8
|
)
|
( i 64.6
|
)
|
||||||
|
i 608.9
|
( i 104.6
|
)
|
i 91.1
|
|||||||||
|
? |
|
US$
|
NIS
|
Others
|
||||||||||
|
US $ in millions
|
US $ in millions
|
US $ in millions
|
||||||||||
|
Non-current assets
|
||||||||||||
|
Other receivables
|
i 106.4
|
i 0.8
|
||||||||||
|
Other non-current investments
|
i 165.8
|
i 1.3
|
i 2.1
|
|||||||||
|
Current assets
|
||||||||||||
|
Other current investments
|
i 2,136.4
|
i 8.0
|
||||||||||
|
Trade and other receivables
|
i 1,112.8
|
i 2.2
|
i 92.4
|
|||||||||
|
Cash and cash equivalents
|
i 1,460.6
|
i 22.1
|
i 60.6
|
|||||||||
|
Non-current liabilities
|
||||||||||||
|
Loans and other liabilities
|
( i 119.1
|
)
|
( i 1.8
|
)
|
||||||||
|
Lease liabilities
|
( i 2,148.6
|
)
|
( i 7.4
|
)
|
( i 22.7
|
)
|
||||||
|
Current liabilities
|
||||||||||||
|
Short term borrowings and current maturities
|
( i 130.1
|
)
|
( i 0.6
|
)
|
||||||||
|
Lease liabilities
|
( i 880.0
|
)
|
( i 6.3
|
)
|
( i 6.7
|
)
|
||||||
|
Trade and other payables
|
( i 428.9
|
)
|
( i 50.6
|
)
|
( i 55.1
|
)
|
||||||
|
i 1,275.3
|
( i 38.7
|
)
|
i 77.0
|
|||||||||
F - 74
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
29 Financial risk management (cont’d)
(3) Market risk (cont’d)
(i) Currency risk (cont’d)
Sensitivity analysis
A i i 10 / % appreciation of the United States dollar against NIS at December 31 would have increased / (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.The analysis has been performed on the same basis for 2022 and 2021.
|
Profit or loss
|
||||
|
US $ in millions
|
||||
|
December 31,2022
|
i 10.5
|
|||
|
December 31,2021
|
i 3.3
|
|||
A i i 10 / % devaluation of the United States dollar against the NIS on December 31 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.
(ii) Interest rate risk
The Group prepares a summary of its exposure to interest rate risk on a periodic basis.
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:?
|
Carrying amount
|
||||||||
|
2022
|
2021
|
|||||||
|
US $ in millions
|
US $ in millions
|
|||||||
|
Fixed rate instruments
|
||||||||
|
Financial assets
|
i 4,620.1
|
i 3,852.9
|
||||||
|
Financial liabilities (mostly lease liabilities)
|
( i 4,257.9
|
)
|
( i 3,285.7
|
)
|
||||
|
i 362.2
|
i 567.2
|
|||||||
|
Variable rate instruments
|
||||||||
|
Financial liabilities
|
( i 73.9
|
)
|
( i 35.4
|
)
|
||||
|
( i 73.9
|
)
|
( i 35.4
|
)
|
|||||
?
Fair value sensitivity analysis for fixed rate instruments
Fixed rate instruments accounted by the group at fair value through profit or loss are in immaterial amounts.
An increase (decrease) of 1% in the interest rate of fixed rate instruments accounted by the group at fair value through other comprehensive income would have result with an approximate decrease (increase) in equity of US$ 24 million, net of tax.
Cash flow sensitivity analysis for variable rate instruments
A 10% change in variable interest rates at the reporting date would not have significant influence over the Company’s equity and profit or loss (assuming that all other variables, in particular foreign currency rates, remain constant).
F - 75
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The carrying amounts of certain financial assets and liabilities, including cash and cash equivalents, trade and other receivables, bank deposits and other financial assets at amortized cost, trade and other payables and loans and other liabilities, reflect reasonable approximation of their fair value.
When measuring the fair value of an asset or a liability, the Company uses market observable data to the extent applicable. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
F - 76
ZIM INTEGRATED SHIPPING SERVICES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|
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
|
i 153.7
|
i 59.0
|
i 2.3
|
|||||||||||||||||
|
Non-current
|
i 739.8
|
i 578.7
|
i 39.9
|
|||||||||||||||||
|
i 893.5
|
i 637.7
|
i 42.2
|
||||||||||||||||||
|
Level 3 financial instruments carried at fair value
|
||||||||||||||||||||
|
Non-current other investments
|
i 11.2
|
|||||||||||||||||||
|
Non-current loans and other liabilities
|
( i 13.7
|
)
|
||||||||||||||||||
|
i 11.2
|
( i 13.7
|
)
|
||||||||||||||||||
|
i 893.5
|
i 637.7
|
i 42.2
|
i 11.2
|
( i 13.7
|
)
|
|||||||||||||||
|
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
|
|||||||||||||
|
US $ in millions
|
||||||||||||||||
|
Level 1 financial instruments carried at fair value
|
||||||||||||||||
|
Other investments:
|
||||||||||||||||
|
Current
|
i 2.0
|
i 16.3
|
i 2.0
|
|||||||||||||
|
Non-Current
|
i 35.5
|
i 127.4
|
||||||||||||||
|
i 37.5
|
i 143.7
|
i 2.0
|
||||||||||||||
|
Level 3 financial instruments carried at fair value
|
||||||||||||||||
|
Other investments:
|
||||||||||||||||
|
Non-Current
|
i 2.3
|
|||||||||||||||
|
i 37.5
|
i 143.7
|
i 2.0
|
i 2.3
|
|||||||||||||
/
F - 77
| This ‘20-F’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 7/16/26 | ||||
| 2/1/26 | ||||
| 5/1/25 | ||||
| 9/9/24 | ||||
| 12/31/23 | ||||
| 4/4/23 | ||||
| 4/3/23 | ||||
| 3/24/23 | ||||
| Filed on: | 3/13/23 | 6-K | ||
| 3/1/23 | ||||
| 2/14/23 | ||||
| 1/25/23 | SC 13G | |||
| 1/24/23 | ||||
| 1/1/23 | ||||
| For Period end: | 12/31/22 | |||
| 12/30/22 | ||||
| 12/20/22 | ||||
| 12/7/22 | ||||
| 11/1/22 | ||||
| 10/1/22 | ||||
| 9/8/22 | ||||
| 8/14/22 | ||||
| 6/8/22 | ||||
| 5/2/22 | ||||
| 4/4/22 | ||||
| 4/2/22 | ||||
| 3/9/22 | 20-F, 6-K, S-8 | |||
| 3/7/22 | ||||
| 2/22/22 | ||||
| 1/1/22 | ||||
| 12/31/21 | 20-F | |||
| 12/13/21 | 6-K | |||
| 12/6/21 | ||||
| 3/10/21 | ||||
| 2/19/21 | ||||
| 2/1/21 | S-8 | |||
| 1/28/21 | EFFECT | |||
| 1/27/21 | EFFECT | |||
| 1/1/21 | ||||
| 12/31/20 | 20-F | |||
| 12/22/20 | ||||
| 11/29/20 | ||||
| 11/27/20 | ||||
| 11/25/20 | ||||
| 11/4/20 | ||||
| 10/26/20 | ||||
| 10/5/20 | ||||
| 10/1/20 | ||||
| 9/28/20 | ||||
| 5/18/20 | ||||
| 4/23/20 | ||||
| 3/1/20 | ||||
| 1/23/20 | ||||
| 1/1/20 | ||||
| 12/23/19 | ||||
| 11/21/19 | ||||
| 10/22/19 | ||||
| 10/13/19 | ||||
| 9/8/19 | ||||
| 2/14/19 | ||||
| 1/1/19 | ||||
| 12/4/18 | ||||
| 6/30/18 | ||||
| 3/1/18 | ||||
| 1/1/18 | ||||
| 9/8/17 | ||||
| 11/4/16 | ||||
| 10/27/16 | ||||
| 1/1/15 | ||||
| 10/1/14 | ||||
| 7/14/14 | ||||
| 8/20/13 | ||||
| 1/1/13 | ||||
| 4/5/12 | ||||
| 10/16/09 | ||||
| 11/25/02 | ||||
| 10/16/98 | ||||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/13/24 ZIM Integrated Shipping Svcs Ltd. 20-F 12/31/23 145:18M Z-K Global Ltd./FA 9/26/23 SEC UPLOAD¶ 10/24/23 2:39K ZIM Integrated Shipping Svcs Ltd. 8/17/23 SEC UPLOAD¶ 10/24/23 2:45K ZIM Integrated Shipping Svcs Ltd. 3/30/23 Kenon Holdings Ltd. 20-F 12/31/22 159:29M Z-K Global Ltd./FA |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/16/22 ZIM Integrated Shipping Svcs Ltd. 6-K 3/16/22 3:221K Toppan Merrill/FA 12/30/20 ZIM Integrated Shipping Svcs Ltd. F-1 16:13M Toppan Merrill/FA |