…is still uncertain how sustainable these rate levels are in the long term, given the potential for demand side disruptions as well. We remain cautious about the second half of the year and continue to closely monitor market developments. Slide number six. ZIM has made significant progress in its fleet renewal program, which includes the integration of LNG-powered vessels. This initiative not only contributes to lower carbon emissions but also improves our cost per TEU. We currently operate 147 vessels and plan to replace smaller vessels with larger ones to enhance efficiency and competitiveness. Our commitment to sustainability extends to our goal of achieving net-zero greenhouse gas emissions by 2050. Slide number seven. Our free cash flow in Q1 was $303 million, a significant increase from the previous year’s $142 million. Total debt increased by $359 million, reflecting our ongoing fleet expansion and investment in our future growth. Despite this increase, we maintain a solid balance sheet and remain focused on managing our debt levels effectively. Slide number eight. Looking ahead, ZIM expects to outperform the market in volume growth, with a particular focus on the transpacific and Latin America trades. Our strategic positioning, fleet renewal program, and commitment to sustainability set us apart in a competitive industry landscape. We are confident in our ability to drive long-term sustainable growth and create value for our shareholders. Thank you for your attention, and now I will turn the call over to Xavier Destriau, our CFO, to provide more details on our financial performance. Xavier Destriau: Thank you, Eli. Slide number nine. As Eli mentioned, our Q1 financial results were strong, with revenue reaching $1.56 billion and net income of $92 million. Adjusted EBITDA for the quarter was $427 million, reflecting a margin of 27%. We continue to focus on optimizing our cost structure and improving operational efficiency, which has positively impacted our financial performance. Slide number ten. In light of our strong Q1 results and the favorable market conditions, we have revised our full-year 2024 guidance. We now expect adjusted EBITDA to be in the range of $1.15 billion to $1.55 billion and adjusted EBIT to be between $0 to $400 million. This revised outlook reflects our confidence in our ability to capitalize on market opportunities and drive sustainable growth. Slide number eleven. ZIM’s fleet renewal program has been a key driver of our success, with the integration of LNG-powered vessels contributing to lower emissions and cost savings. We remain committed to investing in our fleet to ensure operational excellence and competitiveness. Additionally, our focus on maintaining high spot exposure in the transpacific trade positions us well to capitalize on market dynamics and drive revenue growth. Slide number twelve. Despite the positive outlook, we remain cautious about the potential market uncertainties in the second half of the year. Factors such as geopolitical tensions and supply chain disruptions could impact our financial performance. However, we are confident in our strategic initiatives and our ability to navigate these challenges effectively. In conclusion, ZIM is well positioned to deliver a strong financial performance in 2024 and beyond. Thank you for your attention, and we will now open the call for questions. Operator: Thank you. [Operator Instructions] Our first question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about the impact of low unemployment and high inflation in the U.S. on demand and salaries. How do you see these factors influencing the container shipping industry? Eli Glickman: Thank you for your question. The current economic conditions in the U.S. are indeed impacting consumer demand and overall market dynamics. Low unemployment and high inflation could potentially lead to higher consumer spending, which in turn could drive demand for goods and, subsequently, container shipping services. However, these factors also pose challenges in terms of cost pressures, particularly on the labor front. Rising salaries and wage pressures could impact our operating expenses and overall profitability. We are closely monitoring these developments and adjusting our strategies accordingly to ensure we remain competitive and profitable in this changing environment. Analyst: Thank you for your insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about how ZIM plans to address vessel capacity shortages and equipment shortages, especially in Asia. Given the current market conditions, how do you plan to mitigate these challenges and ensure smooth operations? Xavier Destriau: Thank you for your question. Vessel capacity shortages and equipment shortages are indeed key challenges that the industry is facing, particularly in Asia. To address these issues, ZIM is implementing a proactive approach to optimize capacity utilization and ensure efficient operations. We are working closely with our partners and suppliers to secure adequate vessel capacity and equipment availability. Additionally, we are exploring alternative solutions such as chartering additional vessels and optimizing our network to mitigate the impact of these shortages. Our priority is to maintain service reliability and meet customer demand while managing these challenges effectively. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s upfront payments for new vessel deliveries and how these investments align with the company\’s financial goals. Could you provide more details on the financial implications of these payments and how they contribute to ZIM\’s growth strategy? Eli Glickman: Thank you for your question. ZIM has made substantial upfront payments for new vessel deliveries as part of our fleet renewal program and growth strategy. These investments are essential to enhancing our operational efficiency, competitiveness, and sustainability. While these payments may impact our short-term cash flow, we believe that they are necessary for long-term value creation and growth. Our focus is on optimizing our fleet and ensuring that we have the right vessels to meet customer demand and market trends. We are committed to managing our investments effectively and balancing our financial objectives with our strategic priorities. Analyst: Thank you for the clarification. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s financial covenants related to leverage or EBITDA. Could you provide more details on any specific financial metrics that the company monitors to ensure financial stability and compliance with its debt obligations? Xavier Destriau: Thank you for your question. ZIM does not have specific financial covenants related to leverage or EBITDA, except for a minimum cash requirement. We monitor a range of financial metrics to assess our financial stability and ensure compliance with our debt obligations. These metrics include our cash position, debt levels, operating cash flow, and profitability indicators such as EBITDA and adjusted EBIT. Our goal is to maintain a strong balance sheet and liquidity position to support our growth initiatives and ensure financial resilience. We remain committed to prudent financial management and transparency in our reporting. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about ZIM\’s strategic positioning in the market and how the company plans to outperform competitors in the current environment. What are the key factors driving ZIM\’s competitive advantage and growth prospects? Eli Glickman: Thank you for your question. ZIM\’s strategic positioning in the market is based on our focus on operational excellence, customer service, and innovation. We differentiate ourselves through our fleet renewal program, which includes the integration of LNG-powered vessels to reduce emissions and improve cost efficiency. Additionally, our strong presence in key trades such as the transpacific and Latin America routes positions us well to capitalize on market opportunities and drive revenue growth. Our commitment to sustainability and long-term value creation also sets us apart from competitors. We are confident in our ability to outperform the market through our proactive approach to managing capacity, demand, and market dynamics. Analyst: Thank you for the insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s dividend policy and how the company plans to balance dividend payouts with its growth initiatives. Could you provide more details on the factors that influence dividend decisions and how ZIM aims to create value for shareholders through dividends? Xavier Destriau: Thank you for your question. ZIM\’s dividend policy is based on a payout of 30% of quarterly net income. Our Board of Directors evaluates dividend decisions based on our financial performance, cash flow generation, and growth prospects. We aim to strike a balance between rewarding shareholders through dividends and reinvesting in our business to drive long-term sustainable growth. Our dividend policy reflects our commitment to creating value for our shareholders while maintaining financial discipline and liquidity. We believe that dividends are an important component of shareholder return and are committed to delivering consistent and sustainable dividends over time. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about ZIM\’s outlook for the second half of the year and how the company plans to navigate potential market uncertainties. Given the current environment, what are the key risks and opportunities that ZIM is monitoring, and how do you plan to address them effectively? Eli Glickman: Thank you for your question. ZIM remains cautious about the second half of the year due to market uncertainties and potential disruptions. We are closely monitoring geopolitical tensions, supply chain dynamics, and demand patterns to assess the impact on our operations and financial performance. While we have raised our full-year guidance based on strong Q1 results and positive market conditions, we recognize the need to remain vigilant and adaptable in the face of changing market dynamics. Our focus is on managing capacity, demand, and costs effectively to mitigate risks and capitalize on opportunities. We are committed to navigating these challenges proactively and ensuring the long-term sustainability and profitability of our business. Analyst: Thank you for the insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s long-term market expectations and how the company plans to address challenges such as supply growth outpacing demand. Given the competitive landscape, what strategies is ZIM implementing to maintain its market position and drive sustainable growth? Xavier Destriau: Thank you for your question. ZIM\’s long-term market expectations remain challenging, with supply growth likely to outpace demand in the container shipping industry. To address this challenge, we are focused on optimizing our fleet, managing capacity effectively, and enhancing our operational efficiency. Our fleet renewal program, which includes the integration of LNG-powered vessels, is a key strategy to reduce emissions, improve cost efficiency, and enhance our competitiveness. Additionally, our focus on strategic trades such as the transpacific and Latin America routes positions us well to capitalize on market dynamics and drive revenue growth. We are committed to sustainability, innovation, and customer service to differentiate ourselves in the competitive landscape and create long-term value for our stakeholders. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about ZIM\’s free cash flow and how the company plans to utilize its cash position to support growth initiatives. Could you provide more details on the factors influencing free cash flow and how ZIM aims to allocate capital effectively to drive value creation? Eli Glickman: Thank you for your question. ZIM\’s free cash flow in Q1 was $303 million, reflecting our strong operational performance and cash generation. We aim to utilize our cash position to support growth initiatives, including fleet renewal, operational efficiency enhancements, and strategic investments. Our focus is on optimizing our capital allocation to drive long-term value creation and sustainable growth. We are committed to maintaining a strong balance sheet, liquidity position, and financial discipline to support our strategic objectives and create value for our shareholders. Analyst: Thank you for the insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about ZIM\’s total debt and how the company plans to manage its debt levels effectively. Given the increase in debt due to fleet expansion, what strategies is ZIM implementing to ensure financial stability and long-term sustainability? Xavier Destriau: Thank you for your question. ZIM\’s total debt increased by $359 million in Q1, reflecting our ongoing fleet expansion and investment in growth initiatives. While this increase in debt is necessary to support our strategic objectives, we are focused on managing our debt levels effectively to ensure financial stability and long-term sustainability. We are committed to prudent financial management, transparency in reporting, and maintaining a strong balance sheet to support our growth initiatives and create value for our shareholders. Our goal is to optimize our debt structure, reduce financing costs, and enhance our financial flexibility to support our strategic priorities. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s fleet renewal program and how the company plans to drive sustainability and operational excellence through this initiative. Could you provide more details on the integration of LNG-powered vessels and how this contributes to ZIM\’s environmental goals and cost efficiency? Eli Glickman: Thank you for your question. ZIM\’s fleet renewal program is a key driver of our sustainability and operational excellence initiatives. The integration of LNG-powered vessels is a significant step towards reducing emissions, improving cost efficiency, and enhancing our competitiveness. These vessels are more fuel-efficient and environmentally friendly, aligning with our goal of achieving net-zero greenhouse gas emissions by 2050. By investing in LNG-powered vessels, we are not only reducing our carbon footprint but also improving our cost per TEU and operational efficiency. We believe that sustainability and operational excellence go hand in hand and are essential to our long-term success and growth. Analyst: Thank you for the insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s revenue performance in Q1 and how the company plans to sustain this momentum in the coming quarters. Given the strong start to the year, what strategies is ZIM implementing to drive revenue growth and profitability in a challenging market environment? Xavier Destriau: Thank you for your question. ZIM delivered revenue of $1.56 billion in Q1, reflecting our strong performance and market dynamics. To sustain this momentum, we are focused on optimizing our cost structure, enhancing operational efficiency, and capitalizing on market opportunities. Our fleet renewal program, strategic positioning in key trades, and commitment to customer service are key drivers of revenue growth and profitability. Additionally, we are closely monitoring market trends, demand patterns, and supply dynamics to adjust our strategies accordingly and drive sustainable growth. Our goal is to continue delivering strong financial performance and creating value for our shareholders in a competitive and dynamic market environment. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about ZIM\’s adjusted EBITDA forecast for the full year 2024 and how the company plans to achieve this target. Given the upward revision of the guidance, what factors are influencing this outlook, and how do you plan to capitalize on market opportunities to drive financial performance? Eli Glickman: Thank you for your question. ZIM has revised its full-year 2024 adjusted EBITDA forecast to be in the range of $1.15 billion to $1.55 billion, reflecting our confidence in our ability to capitalize on market opportunities and drive sustainable growth. The factors influencing this outlook include strong spot rates, improved market conditions, and our strategic initiatives such as fleet renewal and operational efficiency enhancements. We are focused on optimizing our cost structure, managing capacity effectively, and maintaining service reliability to meet customer demand and drive revenue growth. Our goal is to outperform the market in volume growth, particularly in key trades such as the transpacific and Latin America routes. We are committed to delivering a strong financial performance in 2024 and creating long-term value for our stakeholders. Analyst: Thank you for the insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s fleet expansion and how the company plans to optimize its fleet to drive operational efficiency and cost savings. Given the increase in total debt, what strategies is ZIM implementing to ensure that these investments generate a positive return and contribute to long-term value creation? Xavier Destriau: Thank you for your question. ZIM\’s fleet expansion is a key part of our growth strategy and operational excellence initiatives. We are focused on optimizing our fleet to drive operational efficiency, cost savings, and competitiveness. The integration of larger vessels and LNG-powered vessels is a key component of our fleet renewal program, which aims to enhance our cost per TEU, reduce emissions, and improve our competitive position. While the increase in total debt reflects our ongoing investments in fleet expansion, we are committed to managing our debt levels effectively and ensuring that these investments generate a positive return. Our goal is to optimize our fleet structure, improve our cost efficiency, and drive long-term value creation for our shareholders. Analyst: Thank you for the information. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to ask about ZIM\’s focus on the transpacific trade and how the company plans to maintain high spot exposure in this key market. Given the competitive landscape and changing market dynamics, what strategies is ZIM implementing to capitalize on opportunities in the transpacific trade and drive revenue growth? Eli Glickman: Thank you for your question. ZIM is focused on maintaining high spot exposure in the transpacific trade, which is a key market for us. We are implementing strategies to optimize our capacity utilization, enhance service reliability, and meet customer demand in this important trade route. Our fleet renewal program, operational efficiency enhancements, and customer service initiatives are key drivers of our success in the transpacific trade. Additionally, we are closely monitoring market dynamics, demand patterns, and supply trends to adjust our strategies and capitalize on opportunities in this competitive market. Our goal is to drive revenue growth, profitability, and long-term value creation through our strategic positioning in key trades such as the transpacific route. Analyst: Thank you for the insights. Operator: Our next question comes from the line of [inaudible] from [inaudible]. Please go ahead. Analyst: Thank you for taking my question. I wanted to inquire about ZIM\’s progress in achieving net-zero greenhouse gas emissions by 2050. Given the company\’s commitment to sustainability, how do you plan to align your environmental goals with your financial objectives and drive long-term value creation through sustainability initiatives? Xavier Destriau: Thank you for your question. ZIM is committed to achieving net-zero greenhouse gas emissions by 2050 as part of our sustainability initiatives. We are integrating LNG-powered vessels into
