ZIM Integrated Shipping Services Ltd.

Thank you for standing by and welcome to the ZIM integrated shipping services second quarter 2025 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press star one. Thank you. I'd now like to turn the call over to Elana Holtzman, Head of Investor Relations. You may begin.

Thank you, Operator, and welcome to ZIM's second quarter 2025 Financial Results Conference Call. Joining me on the call today are Eli Glickman, ZIM's President and CEO, and Xavier Despleaux, ZIM's CFO. Before we begin, I would like to remind you that during the course of this call, we will make forward-looking statements regarding expectations, predictions, projections, or future events or results. We believe that our expectations and assumptions are reasonable. We wish to caution you that such statements reflect only the company's current expectations and that actual events or results may differ, including materially. You are kindly referred to consider the risk factors and cautionary language described in the documents the company filed with the Securities and Exchange Commission, including our 2024 annual report on Form 20F filed with the SEC on March 12, 2025. We undertake no obligation to update these forward-looking statements. At this time, I would like to turn the call over to ZIM CEO, Eli Glickman. Eli?

Thank you, Ilana, and welcome, everyone. Thank you for joining us today. Despite severe market disruption and volatility, mainly due to American tariff announcements, we leverage our transformed fleet and improved cost structure in Q2 to mitigate negative effects. Slide number four. We generated revenue of $1.6 billion and net income of $24 million. Q2 adjusted EBITDA was $472 million and adjusted EBIT was $149 million. We suggested EBITDA margin of 29% and adjusted EBIT margin of 9%. We maintain total liquidity of $2.9 billion at June 30th, having paid approximately $470 million in dividends in the second quarter. Slide number five. Per our dividend policy to distribute 30% of quarterly net income, our Board of Directors has declared a dividend of $0.06 per share of a total of $7 million based on Q2 results. Despite the considerable uncertainty given our performance today, we are revising our full year guidance ranges. We are raising the lower end of our full year guidance such that we expect to generate adjusted EBITDA between $1.8 billion to $2.2 billion and adjust EBIT between $550 million and $950 million. Xavier, our CFO, will provide additional context and our underlying assumptions for our 2025 guidance later on the call. Slide number six. While it has been an unpredictable 2025 so far with wide swims in freight rates, we are confident in our competitive position in the industry and believe Zim is well positioned to navigate turbulent periods like the one we are in today. this trend lies in our modern competitive fleet and agile commercial strategy and we will remain proactive responding to changes in demand across our global trade lanes we have adapted our trans-pacific network to account for the changes in the cargo flow following the various tariff announcement since april we first rearrange We first rearrange our Trans-Pacific Network to address the sharp decline in cargo from China to the US and parallel improvement in cargo flow from other Southeast Asian markets. And later, we reinstate capacity to China after the spike in demand following the tariff suspension announcement in May. As we have previously discussed, we aim to build a strong commercial presence in key market in which we operate and diversify our geographic footprint to enhance our business resilience. Accordingly, Zim has worked to expand and diversify its network to both mirror changes in trade flows to the US as well as increase our exposure to trade from China to diverse and markets beyond the United States. Our expanded presence in Southeast Asia, especially in Vietnam and Thailand, align with region's rise as manufacturing hub for the U.S. and globally. Zim's strong and growing position in this market will enable us to capitalize on the expected continued growth in these trades. During the second quarter, this presence in Southeast Asia served as an advantage, enabling us to partially mitigate the impact of reduced cargo flows from China. Nevertheless, the incremental volume from Southeast Asia was not sufficient to fully offset the shortfall, as reflected in our overall carried volume for the period. The surge in Trans-Pacific demand we experienced in May was short lived and current demand on this trade continues to be relatively weak. Furthermore, due to ongoing uncertainty regarding tariffs between the US and China and based on our current feasibility, we did not anticipate a strong peak season this year. As a supply that was previously withdrawn from the Trans-Pacific has been reinstated, we also anticipate continued pressure on freight rates during the second half of 2025. In light of this development, We are pleased with our growing presence in Latin America, where we saw 10% volume growth year-over-year. Zines tend to benefit from growing trade between Latin American countries and both the US and China. In addition to growing geographic diversification, our operational excellence remains a core strength. We operate today a modern and competitive fleet that is highly suited to the trades where we currently operate, and we continue to focus on ensuring access to the right capacity. Following a transition period from 23 to 2024, during which we had 46 new built vessels delivered to us, we entered 25 with transformed fleet, significantly improving our cost structure and the efficiency of our operated capacity tends to larger, more modern vessels. Moving forward, Our objective is to maintain and further enhance our competitive position while capitalizing on attractive opportunities that will ensure our fleet remains modern and cost-effective. In April, we announced new long-term chartering agreement for 10,000-11,500 TULNG dual-fuel vessels that will be delivered in 2027 and 2028. Not only in this versatile capacity ideally suited for ZIM's various global trades, but it will also further strengthen our core LNG fleet, which is a critical commercial differentiator. In the future, we see significant values as operators of LNG tonnage and customers increasingly seek eco-friendly shipping solutions. We also view it as imperative that ZIM maintains some degree of flexibility at all times to act dynamically and reshuffle vessel capacity based on market demand. We recognize that the market realities of today may be different than the realities of tomorrow. We implement the same agility operationally, aligning our operating capacity with the shifting dynamics of the trending environment. This year, we regain this important optionality with respect to our fleet size and have re-delivered charter capacity. Xavier will discuss our current fleet profile in more detail. Overall, market fundamentals still point to supply growth outpacing demand moving forward. However, as we have seen, the rate environment can be volatile and unpredictable. even by a range of factors impacting global trade and economic expectations. In the face of such uncertainty, our focus is controlling what we can to position ZIM for sustainable and profitable growth. We are confident that our commitment to excellence and our agility will serve us well and we continue to take steps forward to further enhance business resilience, both commercially and operationally. On this note, I will turn the call over to Xavier, our CFO, for a more detailed discussion for financial results, 2025 guidance, as well as additional comments on the market environment. Xavier, please.