EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2



ZIM INTEGRATED SHIPPING SERVICES LTD.
 
CONDENSED CONSOLIDATED UNAUDITED INTERIM
 
FINANCIAL STATEMENTS
 
MARCH 31, 2022
 


ZIM INTEGRATED SHIPPING SERVICES LTD.

INDEX TO CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

   Page
   
FINANCIAL STATEMENTS:
  
   
3
   
4
   
5
   
6
   
7-8
   
9-14

2

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF FINANCIAL POSITION

          March 31     December 31
  
   
    2022    
2021
    
2021
  
     Note      US $ in millions
Assets
                        
Vessels
  
6
      
4,037.5
      
1,299.7
      
2,957.8
  
Containers and handling equipment
  
6
      
1,323.6
      
665.6
      
1,365.8
  
Other tangible assets
  
6
      
74.6
      
64.5
      
68.9
  
Intangible assets
          
77.5
      
66.8
      
73.8
  
Investments in associates
          
13.6
      
13.5
      
12.2
  
Other investments
          
306.2
      
3.1
      
169.2
  
Trade and other receivables
          
107.9
      
5.8
      
107.2
  
Deferred tax assets
          
2.3
      
1.6
      
2.1
  
Total non-current assets
          
5,943.2
      
2,120.6
      
4,757.0
  
                               
Inventories
          
173.8
      
86.3
      
119.0
  
Trade and other receivables
          
1,386.4
      
700.3
      
1,278.0
  
Other investments
          
2,092.4
      
63.0
      
2,144.5
  
Cash and cash equivalents
          
2,727.2
      
1,188.4
      
1,543.3
  
Total current assets
          
6,379.8
      
2,038.0
      
5,084.8
  
Total assets
          
12,323.0
      
4,158.6
      
9,841.8
  
                               
Equity
                              
Share capital and reserves
  
5
      
2,009.8
      
1,992.4
      
2,011.4
  
Retained earnings (deficit)
          
2,246.1
      
(936.1
)
    
2,580.6
  
Equity attributable to owners of the Company
          
4,255.9
      
1,056.3
      
4,592.0
  
Non-controlling interests
          
4.3
      
3.8
      
7.5
  
Total equity
          
4,260.2
      
1,060.1
      
4,599.5
  
                               
Liabilities
                              
Lease liabilities
          
2,784.2
      
1,055.1
      
2,178.7
  
Loans and other liabilities
          
171.3
      
440.2
      
120.8
  
Employee benefits
          
57.1
      
63.2
      
65.6
  
Deferred tax liabilities
          
122.6
      
34.2
      
120.6
  
Total non-current liabilities
          
3,135.2
      
1,592.7
      
2,485.7
  
                               
Trade and other payables
  
4(f)
   
2,946.2
      
538.7
      
1,086.3
  
Provisions
          
31.6
      
25.6
      
28.3
  
Contract liabilities
          
596.6
      
295.6
      
618.3
  
Lease liabilities
          
1,238.4
      
508.2
      
893.0
  
Loans and other liabilities
          
114.8
      
137.7
      
130.7
  
Total current liabilities
          
4,927.6
      
1,505.8
      
2,756.6
  
Total liabilities
          
8,062.8
      
3,098.5
      
5,242.3
  
Total equity and liabilities
          
12,323.0
      
4,158.6
      
9,841.8
  

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

Date of approval of the Financial Statements:  May 18, 2022
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.

3
ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM INCOME STATEMENTS

         
Three months ended
March 31
    
Year ended
December 31
  
         
2022
    
2021
    
2021
  
   
Note
    
US $ in millions
  
Income from voyages and related services
          
3,716.4
      
1,744.3
      
10,728.7
  
Cost of voyages and related services:
                              
Operating expenses and cost of services
  
8
      
(1,118.3
)
    
(880.6
)
    
(3,905.9
)
Depreciation
          
(284.4
)
    
(128.1
)
    
(756.3
)
Gross profit
          
2,313.7
      
735.6
      
6,066.5
  
                               
Other operating income
          
4.6
      
2.4
      
14.5
  
Other operating expenses
          
(0.1
)
    
(0.1
)
    
(1.0
)
General and administrative expenses
          
(77.1
)
    
(55.9
)
    
(267.7
)
Share of profit of associates
          
1.4
      
1.5
      
4.0
  
                               
Results from operating activities
          
2,242.5
      
683.5
      
5,816.3
  
                               
Finance income
          
21.4
      
6.8
      
18.8
  
Finance expenses
          
(45.3
)
    
(46.3
)
    
(175.6
)
                               
Net finance expenses
          
(23.9
)
    
(39.5
)
    
(156.8
)
                               
Profit before income taxes
          
2,218.6
      
644.0
      
5,659.5
  
                               
Income taxes
          
(507.6
)
    
(54.4
)
    
(1,010.4
)
                               
Profit for the period
          
1,711.0
      
589.6
      
4,649.1
  
                               
Attributable to:
                              
                               
Owners of the Company
          
1,708.8
      
587.6
      
4,640.3
  
Non-controlling interests
          
2.2
      
2.0
      
8.8
  
                               
Profit for the period
          
1,711.0
      
589.6
      
4,649.1
  
                               
Earnings per share (US$)
                              
Basic earnings per 1 ordinary share
  
10
      
14.25
      
5.35
      
40.31
  
Diluted earnings per 1 ordinary share
  
10
      
14.19
      
5.13
      
39.02
  

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

4

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

   
Three months ended
March 31
    
Year ended
December 31
  
   
2022
    
2021
    
2021
  
   
US $ in millions
  
Profit for the period
    
1,711.0
      
589.6
      
4,649.1
  
                         
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
    
(5.0
)
    
(3.3
)
    
(7.8
)
                         
Net change in fair value of investments in debt instruments at fair 
    value through other comprehensive income, net of tax
    
(7.3
)
            
(0.7
)
                         
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
    
0.2
      
(0.2
)
    
(0.2
)
                         
Defined benefit pension plans actuarial gains, net of tax
    
3.9
              
1.1
  
                         
Other comprehensive income for the period, net of tax
    
(8.2
)
    
(3.5
)
    
(7.6
)
                         
Total comprehensive income for the period
    
1,702.8
      
586.1
      
4,641.5
  
                         
Attributable to:
                        
                         
Owners of the Company
    
1,701.5
      
585.2
      
4,636.8
  
Non- controlling interests
    
1.3
      
0.9
      
4.7
  
                         
Total comprehensive income for the period
    
1,702.8
      
586.1
      
4,641.5
  

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

5

ZIM INTEGRATED SHIPPING SERVICES LTD.

CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY

   
Attribute to the owners of the Company
             
                                           
                     
Retained
          
Non-
        
   
Share
    
General
    
Translation
    
earnings
          
controlling
    
Total
  
   
capital
    
reserves (**)
    
reserve
    
(deficit)
    
Total
    
interests
    
equity
  

 
US $ in millions
  
For the three months period ended March 31, 2022
                                          
Balance at December 31, 2021
    
923.2
      
1,107.9
      
(19.7
)
    
2,580.6
      
4,592.0
      
7.5
      
4,599.5
  
Initial application of an amendment to IAS 37 (*)
                            
(3.3
)
    
(3.3
)
            
(3.3
)
Balance at January 1, 2022
    
923.2
      
1,107.9
      
(19.7
)
    
2,577.3
      
4,588.7
      
7.5
      
4,596.2
  
Profit for the period
                            
1,708.8
      
1,708.8
      
2.2
      
1,711.0
  
Other comprehensive income for the period, net of tax
                    
(4.1
)
    
(3.2
)
    
(7.3
)
    
(0.9
)
    
(8.2
)
Share-based compensation
            
2.5
                      
2.5
              
2.5
  
Exercise of options
    
1.1
      
(1.1
)
                                        
Dividend to owners of the Company (Note 4(f))
                            
(2,036.8
)
    
(2,036.8
)
            
(2,036.8
)
Dividend to non-controlling interests in subsidiaries
                                            
(4.5
)
    
(4.5
)
Balance at March 31, 2022
    
924.3
      
1,109.3
      
(23.8
)
    
2,246.1
      
4,255.9
      
4.3
      
4,260.2
  
                                                         
For the three months period ended March 31, 2021
                                                        
Balance at January 1, 2021
    
700.3
      
1,106.5
      
(16.0
)
    
(1,523.5
)
    
267.3
      
7.2
      
274.5
  
Profit for the period
                            
587.6
      
587.6
      
2.0
      
589.6
  
Other comprehensive income for the period, net of tax
                    
(2.2
)
    
(0.2
)
    
(2.4
)
    
(1.1
)
    
(3.5
)
Issuance of share capital, net of issuance costs
    
203.5
                              
203.5
              
203.5
  
Share-based compensation
            
0.3
                      
0.3
              
0.3
  
Dividend to non-controlling interests in subsidiaries
                                            
(4.3
)
    
(4.3
)
Balance at March 31, 2021
    
903.8
      
1,106.8
      
(18.2
)
    
(936.1
)
    
1,056.3
      
3.8
      
1,060.1
  
                                                         
Balance at January 1, 2021
    
700.3
      
1,106.5
      
(16.0
)
    
(1,523.5
)
    
267.3
      
7.2
      
274.5
  
Profit for the year
                            
4,640.3
      
4,640.3
      
8.8
      
4,649.1
  
Other comprehensive income for the year, net of tax
                    
(3.7
)
    
0.2
      
(3.5
)
    
(4.1
)
    
(7.6
)
Issuance of share capital, net of issuance costs
    
203.5
                              
203.5
              
203.5
  
Share-based compensation
            
20.8
                      
20.8
              
20.8
  
Exercise of options
    
19.4
      
(19.4
)
                                        
Dividend to owners of the Company
                            
(536.4
)
    
(536.4
)
            
(536.4
)
Acquisition of subsidiary with non-controlling interest
                                            
0.3
      
0.3
  
Dividend to non-controlling interests in subsidiaries
                                            
(4.7
)
    
(4.7
)
Balance at December 31, 2021
    
923.2
      
1,107.9
      
(19.7
)
    
2,580.6
      
4,592.0
      
7.5
      
4,599.5
  

(*) See Note 3.
(**) Include reserves related to transactions with an interested party and share-based compensation.
The accompanying Notes are an integral part of these condensed consolidated interim Financial Statements.

6

  ZIM INTEGRATED SHIPPING SERVICES LTD.
CONDENSED CONSOLIDATED UNADITED INTERIM STATEMENTS OF CASH FLOWS


 
Three months ended
March 31
    
Year ended
December 31
  
   
2022
    
2021
    
2021
  
   
US $ in millions
  
Cash flows from operating activities
                  
Profit for the period
    
1,711.0
      
589.6
      
4,649.1
  
                         
Adjustments for:
                        
Depreciation and amortization
    
290.2
      
133.6
      
779.2
  
Net finance expenses
    
23.9
      
39.5
      
156.8
  
Share of profits and change in fair value of investees
    
(1.5
)
    
(2.5
)
    
(4.7
)
Capital gain
    
(4.0
)
    
(0.4
)
    
(8.7
)
Income taxes
    
507.6
      
54.4
      
1,010.4
  
Other non-cash items
    
2.5
              
20.8
  
     
2,529.7
      
814.2
      
6,602.9
  
                         
Change in inventories
    
(54.8
)
    
(34.1
)
    
(66.8
)
Change in trade and other receivables
    
(96.3
)
    
(174.2
)
    
(766.5
)
Change in trade and other payables including contracts liabilities
    
36.0
      
175.7
      
555.9
  
Change in provisions and employee benefits
    
(2.1
)
    
(0.7
)
    
6.6
  
     
(117.2
)
    
(33.3
)
    
(270.8
)
                         
Dividends received from associates
            
0.7
      
4.4
  
Interest received
    
3.2
      
0.7
      
3.5
  
Income taxes paid
    
(755.7
)
    
(4.9
)
    
(369.1
)
Net cash generated from operating activities
    
1,660.0
      
777.4
      
5,970.9
  
                         
Cash flows from investing activities
                        
Proceeds from sale of tangible assets, intangible assets, investments and affiliates
    
5.3
      
0.5
      
10.9
  
Acquisition of tangible assets, intangible assets and interest in investees
    
(182.5
)
    
(133.0
)
    
(1,005.0
)
Acquisition of investment instruments, net
    
(182.9
)
            
(182.5
)
Change in other receivables
    
(0.3
)
            
(101.8
)
Change in other investments (mainly deposits), net
    
99.8
      
(2.1
)
    
(2,064.7
)
Net cash used in investing activities
    
(260.6
)
    
(134.6
)
    
(3,343.1
)

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


7
  ZIM INTEGRATED SHIPPING SERVICES LTD.
CONDENSED CONSOLIDATED UNADITED INTERIM STATEMENTS OF CASH FLOWS

   
Three months ended
March 31
    
Year ended
December 31
  
   
2022
    
2021
    
2021
  
   
US $ in millions
  
Cash flows from financing activities
            
Receipt of long-term loans and other long-term liabilities
    
59.2
            
50.0
  
Issuance of share capital, net of issuance costs
            
205.4
      
205.4
  
Repayment of borrowings and lease liabilities
    
(208.9
)
    
(190.4
)
    
(1,191.3
)
Change in short term loans
    
(20.0
)
    
(1.0
)
    
(16.0
)
Dividend paid to non-controlling interests
    
(4.5
)
    
(2.8
)
    
(4.7
)
Dividend paid to owners of the Company
                    
(536.4
)
Interest and other financial expenses paid
    
(40.5
)
    
(34.8
)
    
(160.0
)
Net cash used in financing activities
    
(214.7
)
    
(23.6
)
    
(1,653.0
)
                         
Net change in cash and cash equivalents
    
1,184.7
      
619.2
      
974.8
  
Cash and cash equivalents at beginning of the period
    
1,543.3
      
570.4
      
570.4
  
Effect of exchange rate fluctuation on cash held
    
(0.8
)
    
(1.2
)
    
(1.9
)
Cash and cash equivalents at the end of the period
    
2,727.2
      
1,188.4
      
1,543.3
  

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

8

ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS


1
Reporting entity

ZIM Integrated Shipping Services Ltd. (hereinafter - the "Company" or "ZIM") and its subsidiaries (hereinafter – "the Group" or "the Companies") and the Group’s interests in associates, operate in the field of container shipping and related services. 
 
ZIM is a company incorporated in Israel, with limited liability. ZIM’s ordinary shares have been listed on the New York Stock Exchange (the “NYSE”) under the symbol “ZIM” on January 28, 2021. The address of the Company’s registered office is 9 Andrei Sakharov Street, Haifa, Israel.
 

 2
Basis of compliance 
 
  (a)
Statement of compliance

These condensed consolidated unaudited interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended December 31, 2021 (hereafter – the “annual Financial Statements”). These condensed consolidated unaudited interim Financial Statements were approved by the Board of Directors on May 18, 2022.
 
 
(b)
Estimates

The preparation of Financial Statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The significant judgments made by management in applying the Group’s accounting policies and the principal assumptions used in the estimation of uncertainty were the same as those applied to the annual financial statements.
 
3
Significant accounting policies

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

Amendment to IAS 37, Provisions, Contingent Liabilities and Contingent Assets:
As from January 1, 2022, the Company applies the amendment to IAS 37 in respect of onerous contracts, according to which, when assessing whether a contract is onerous, the costs of fulfilling a contract that should be taken into consideration are costs that relate directly to the contract, comprised of: (i) incremental costs, and (ii) an allocation of other costs that relate directly to fulfilling the contract.
The amendment is effective retrospectively in respect of contracts where, at the date of initial application, the entity has not yet fulfilled all its obligations. The Group did not restate comparative data but adjusted the opening balance of retained earnings by the amount of the cumulative effect of the amendment (US$ 3.3 million).

4
Financial position


(a)
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 further implications that might derive from the Covid-19 pandemic and in particular the scope and duration of the lockdown measures applied in China, or the recent military conflict between Russia and Ukraine and the economic sanctions levied on Russia and certain of its corporates and individuals).

9
ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
 
4
Financial position (cont’d)



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. Market conditions in the recent quarters impacted positively, resulting in improved results of the Company, mainly driven by elevated freight rates, partially offset by the impact of increased charter hire rates and bunker prices.

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. In addition, the Company continues to explore options which can contribute to strengthen its capital and operational structure.
 

 (b)
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 have 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 will launch a new independent service to address its customers' needs. The agreements with the 2M alliance partners became effective on April 2, 2022.


(c)
In March 2022, the plaintiff in the claim for an alleged patents’ infringement against the Company, as disclosed in Note 27(h) to the Company’s 2021 annual financial statements, voluntarily withdrew his claim, thus resulting in the closure of the related proceedings.


(d)
Charter agreements:

In January 2022, the Company entered into an agreement with a related-party shipping company for an eight-years charter of three 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels, for a total consideration of approximately $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 thirteen container vessels for a term of approximately 5 years, in a total consideration of approximately $870 million. The agreement comprises five secondhand vessels at the size range of 3,500-4,360 TEU, all of which were delivered during 2022, to be deployed in trades between Asia and Africa, and eight 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 MPC Container Ships ASA, for chartering of up to six 5,500 TEU newbuild vessels for a period of 7 years, in a total consideration of up to approximately US$ 600 million. The vessels are scheduled to be delivered between May 2023 and February 2024.

As part of its ongoing operational needs, the Company continues to charter additional vessels and extend vessel charter periods. See also Note 1(b) and Note 26 to the Company’s 2021 annual financial statements, in respect of the Company’s chartering agreements with Seaspan and the Company’s commitments.


(e)
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 Company, including five vessels which were delivered during 2022.

10
ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
 
4
Financial position (cont’d)


(f)
Dividends:

In March 2022, in accordance with the Company’s updated dividends policy, the Company’s Board of Directors approved a distribution of dividend in a total amount of US$ 2,037 million, or US$ 17.00 per ordinary share, which was paid on April 4, 2022, to all holders of ordinary shares on record as of March 23, 2022. As at March 31, 2022 the dividend amount is presented under Trade and other payables.

In May 2022, further to such dividend policy, the Company’s Board of Directors approved a distribution of an interim dividend of approximately US$ 2.85 per ordinary share (or approximately US$ 342 million, considering the number of ordinary shares outstanding as of March 31, 2022). The dividend is scheduled to be paid on June 8, 2022, to all holders of ordinary shares on record as of May 31, 2022.

5         Capital and reserves
 
Share-Based payment arrangements

In March 2022, the Board of directors approved a grant of share options to officers, directors and employees, as detailed below:
 
Grant date
  
Instrument terms
  
Number of instruments
  
Vesting Terms
  
Contractual life
March 9, 2022
  
Each option is exercisable into one ordinary share on a cash-less basis.
  
1,727,443
  
These options shall vest upon the first, second, third and fourth anniversary of the grant date, in four equal instalments of 25% each.
  
5 years

In addition to the above, following the balance sheet date, a grant of approximately 490,662 options granted to the Company’s senior officers and Directors was approved by the Company’s shareholders.

Information on fair value measurement

The weighted average fair value of the options on grant date was US$ 29.72, measured using the Black & Scholes model, based on the following measurement inputs:

Share price on grant date
  
USD 68.94
Exercise price
  
USD 68.37
Expected volatility
  
47.32%
Expected life
  
5 years
Expected dividends
  
0%
Risk-free interest rate
  
1.7%

During the three months period ended March 31, 2022, 67,500 ordinary shares were issued upon the cashless exercise of options, previously granted in respect of share-based payment arrangements.

During the three months period ended March 31, 2022, 2021 and the year ended December 31, 2021, the Company recorded expenses related to share-based compensation arrangements of US$ 2.5 million, US$ 0.3 million and US$ 20.8 million, respectively.

11
ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
 

 6
Right-of-use assets
 
   
Balance at
March 31
    
Balance at
December 31
  
   
2022
    
2021
    
2021
  
   
US $ in millions
  
                   
Vessels
    
3,630.3
      
1,180.6
      
2,720.2
  
Containers and handling equipment
    
439.0
      
485.9
      
458.6
  
Other tangible assets
    
53.4
      
44.8
      
47.6
  
     
4,122.7
      
1,711.3
      
3,226.4
  

 

 7
Segment information

ZIM is managed as one operating unit, generating revenues from operating a global liner service network of container 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, as follows:
 
   
Three months ended
March 31
    
Year ended
December 31
  
   
2022
    
2021
    
2021
  
   
US $ in millions
  
Freight Revenues from containerized cargo:
                  
Pacific
    
1,725.4
      
812.2
      
5,278.8
  
Cross-Suez
    
472.7
      
202.5
      
1,254.2
  
Atlantic
    
329.8
      
159.6
      
960.8
  
Intra-Asia
    
597.0
      
312.0
      
1,714.6
  
Latin America
    
179.7
      
87.4
      
490.3
  
     
3,304.6
      
1,573.7
      
9,698.7
  
Other Revenues (*)
    
411.8
      
170.6
      
1,030.0
  
     
3,716.4
      
1,744.3
      
10,728.7
  

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

12
ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
 

 8
Operating expenses and cost of services
 
   
Three months ended
March 31
    
Year ended
December 31
  
   
2022
    
2021
    
2021
  
   
US $ in millions
  
Wages, maintenance and other vessel-operating costs
    
6.8
      
3.7
      
14.3
  
Expenses relating to fleet equipment (mainly containers and chassis)
    
7.3
      
7.4
      
28.1
  
Fuel and lubricants
    
261.8
      
145.7
      
739.8
  
Insurance
    
2.1
      
2.5
      
11.5
  
Expenses related to cargo handling
    
484.4
      
437.4
      
1,879.9
  
Port expenses
    
70.6
      
60.0
      
255.5
  
Agents’ salaries and commissions
    
60.5
      
41.9
      
238.8
  
Cost of related services and sundry
    
64.7
      
35.0
      
170.9
  
Slot purchases and hire of vessels
    
150.9
      
138.4
      
530.5
  
Hire of containers
    
9.2
      
8.6
      
36.6
  
     
1,118.3
      
880.6
      
3,905.9
  


9
Financial instruments

Level 1 financial instruments carried at fair value
 
   
March 31,
    
December 31,
  
   
2022
    
2021
    
2021
  
   
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 other comprehensive income
    
Investments in sovereign bonds at fair value through other comprehensive income
    
Investments in corporate bonds at fair value through other comprehensive income
    
Investments in equity instruments at fair value through other comprehensive income
  
         
US $ in millions
        
Other investments:
                                          
Current
    
40.5
      
25.6
      
2.2
      
2.0
      
2.0
      
16.3
      
2.0
  
Non-Current
    
57.0
      
236.3
      
6.8
              
35.5
      
127.4
          
     
97.5
      
261.9
      
9.0
      
2.0
      
37.5
      
143.7
      
2.0
  

Financial instruments not measured at fair value

The carrying amounts of the Group’s financial assets and liabilities, including cash and cash equivalents, trade and other receivables, other investments, trade and other payables and loans and other liabilities, reflect reasonable approximation of their fair value.

13
ZIM INTEGRATED SHIPPING SERVICES LTD.

NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
 

 10
Earnings per share

Basic and diluted earnings per share

   
Three months ended
March 31
    
Year ended
December 31
  
   
2022
    
2021
    
2021
  
Profit attributable to ordinary
   shareholders used to calculate basic and
   diluted earnings per share (US $ in millions)
    
1,708.8
      
587.6
      
4,640.3
  
Number of  shares at the beginning of  the
   period used to calculate basic earnings per share
    
119,910,688
      
100,000,000
      
100,000,000
  
Effect of shares issued
            
9,777,778
      
13,712,329
  
Effect of share options
                    
1,393,175
  
                         
Weighted average number of ordinary shares
   used to calculate basic earnings per share
    
119,910,688
      
109,777,778
      
115,105,504
  
Effect of share options
    
528,210
      
4,730,337
      
3,828,219
  
                         
Weighted average number of ordinary shares
   used to calculate diluted earnings per share
    
120,438,898
      
114,508,115
      
118,933,723
  


14