Navios Maritime Holdings Q2 2013 results presentation
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Navios Maritime Holdings Q2 2013 results presentation Navios Maritime Holdings Q2 2013 results presentation Presentation Transcript

  • Navios Maritime Holdings Inc. Q2 2013 Earnings Presentation 22 August 2013 This presentation contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Holdings’ growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which Navios Holdings operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Holdings’ filings with the Securities and Exchange Commission. Navios Holdings expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Holdings’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. The Company makes no prediction or statement about the performance of its common stock. For the selected financial data presented herein, Navios Holdings compiled consolidated statements of operation and selected balance sheets for the relevant periods. EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. EBITDA is a “non-GAAP financial measure” and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and payment of dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.
  • Creating Shareholder Value: Navios Group Navios Maritime Acquisition Corp. (NYSE: NNA) • Navios entity in tanker sector • Fleet of 41 vessels: 29 product tankers, 8 VLCC, 4 chemical tankers • Acquired product tankers for historically low values • Developing leading company in tanker sector • EBITDA: FY 2012: $97.5 million; H1 2013 $57.3 million • Market value of NM ownership: $222.6 million • Annual dividend: $0.20; 5.4% yield Navios Maritime Holdings Inc. (NYSE: NM) • Controls 58-vessel drybulk fleet; 40 owned and 18 long term chartered-in vessels • Flexible business model; Opportunity from market intelligence • Stable cash flow from charter-out contracts >12 months and Short-Term Charters, COAs and FFAs • FY 2012 EBITDA: $399.0 million; H1 2013: $77.3 million • NM: Share price: $6.30 • Annual dividend: $0.24; 3.8% yield Navios Maritime Partners L.P. (NYSE: NMM) • Focused on long-term charter business in the drybulk sector • MLP with high dividend payout model • Fleet of 25 dry bulk vessels of 2.7 M DWT • NM receives incentive distributions through the wholly owned GP • EBITDA: FY 2012: $177.4 million; H1 2013 $82.1 million • Market value of NM ownership: $218.7 million • Annual dividend: $1.77; 12.6% yield Navios South American Logistics • Integrated wet and dry logistics operator in Hidrovia Region • Core operations: - Port Terminal storage facilities (dry and wet) - Barging (dry and wet) - Cabotage business • Expansion of port and barge business into mineral commodities • EBITDA: FY 2012: $48.1 million; H1 2013 $31.7 million 23.4% NM Ownership 51.6% NM Economic Interest 63.8% NM Ownership$2.12/ share $2.15/ share All stock prices and yields as of August 21, 2013 2
  •  Conservative Balance Sheet ⎯ 44.1% Net Debt to Book Capitalization ⎯ No material debt maturities for four years ⎯ No unfunded capex ⎯ $277.1 million cash  Low cash breakeven of $5,365 per day per vessel for 2,447 open days for 2013 provides flexibility on chartering policy ‒ Free cash flow generation at current market levels: ‒ 1-year Time Charter :  Current: $18,000 for Capesize, $9,500 for Panamax and $9,500 for Ultra-Handymax  20-year average: $32,245 for Capesize, $18,337 for Panamax and $16,242 for Ultra-Handymax ‒ Additional upside: ‒ Profit sharing provides free cash flow generation of $2.2 million for every $1,000 of profit sharing achieved 3 Strong Competitive Positioning Note: Breakeven includes operating costs of owned fleet (including drydock), charter-in expenses for charter-in fleet, general and administrative expenses including credit default insurance expenses, interest expense and capital repayments (excludes COAs, short term charters and FFAs) 2013E Breakeven Analysis Total Fixed Revenue 149,365,443 Dividends from affiliates 38,900,000 Total Cost (201,394,744) Excess cost over revenue (13,129,301) Open days 2,447 Impact on revenue per $1,000 day rate 2,447,000
  •  Navios chartering strategy protects against downside risk while allowing exposure to market  Strategy of fixing vessels for period charters: ⎯ Base rate (floor) above the Company’s breakeven of $5,365 per day per vessel ensuring visibility of revenues, free cash flow generation and protection from downside risk ⎯ Profit sharing based on indices, ensuring the capture of any upside movement of the market  11% of fleet and 33% of charters fixed since June have market exposure  Recent charters: maximizing profitability in a rising rate environment: ‒ Base rate and profit sharing: • Ultra-Handymax: 100% over base rate of $8,000, basis the average of six Baltic Supramax time charter routes, for a period of MIN 11/MAX 16 months. Current earnings rate $9,514 per day • Ultra-Handymax: 70%/30% profit share over base rate of $8,000 basis BSI +8%, for a period MIN 12/MAX 24 months (vessel not redelivered) • Ultra-Handymax: 100% over base rate of $8,500, basis the average of six Baltic Supramax time charter routes, for a period of MIN 22 /MAX 27 months. Current earnings rate $9,537 per day • Ultra-Handymax: 100% over base rate of $8,000, basis the average of six Baltic Supramax time charter routes, for a period of MIN 20 /MAX 25 months (vessel not redelivered) ‒ Index plus premium: • Panamax: Charterers pay the weighted average of the Panamax Index routes + 10% for a period of MIN 7 months / MAX until May 5, 2014. Current earnings rate $9,610 per day • Panamax: Charterers pay the weighted average of the Panamax Index routes +17% for a period of MIN 12 / MAX 15 months (vessel not redelivered) ‒ Capesize: $18,000 to $19,400 gross per day for 95 days ‒ Capesize: $16,000 net per day for 45 days Pac round trip Chartering Initiatives 4
  • Four vessels  Agreed financing: - Amount: $40.0 million or 60% of fair market value - Amortization profile: 18.4 years adjusted for vessels’ age - Margin: Libor + 325 bps  Acquisition of charter free vessels towards cyclical lows provides NM: - Leverage to market recovery; currently $7.0 million above cost  Cash flow breakeven of $7,445 per day per vessel Navios Asia LLC Status  Six vessels through joint venture  Anticipated delivery of vessels: - Two Panamax vessels scheduled for delivery in Q3 2013.  Financing: - The acquisition of the vessels is expected to be partially financed by bank debt consistent with our existing credit facilities Acquisitions update 5 Vessel Name Year Built DWT Estimated Delivery Acquisition Cost (in mm) Navios Galileo Jan-06 76,596 August 26 $17.25 Navios Taurus Jan-05 76,596 September 3 $16.25 Navios Amitie Nov-05 75,395 September 10 $16.25 Navios Northern Star Aug-05 75,395 September 11 $16.25 Total 303,982 $66.00
  • Strategic Relationships: HSH transaction Formation of Navios Europe Inc.  The Navios Group, composed of Navios Maritime Holdings Inc. (NYSE: NM), Navios Maritime Acquisition Corporation (NYSE: NNA) and Navios Maritime Partners L.P. (NYSE: NMM) formed Navios Europe Inc. as the next step in concluding the letter of intent signed with HSH Nordbank AG ("HSH") in April of 2013  Navios Europe, which will initially acquire five product tankers and five container vessels from debtors of HSH, will be owned 47.5% by NM, 47.5% by NNA and 5% by NMM – It is anticipated that funding requirements will be satisfied in the same percentages Management of Vessels  In August 2013, Navios Europe arranged technical and commercial management for five out of the ten vessels. To date, the following vessels were delivered: – Esperanza N a 2,007 TEU Sub-Panamax Container built in 2008 – Harmony N a 2,824 TEU Sub-Panamax Container built in 2006 – Three tanker vessels are also expected to be delivered through September 2013 Closing  Navios Europe is expected to take ownership of all 10 vessels by November 1, 2013, at which point management of the remaining vessels will be transferred as well Strategic Partnership  HSH and Navios are committed to their excellent working relationship. After the completion of this transaction, HSH and Navios hope to work together toward similar transactions. 6
  • Strong Liquidity Position ($ million) June 30, 2013 Cash (1) 277.1 Debt (2) 1,418.7 Shareholders' Equity 1,168.0 Capitalization (3) 2,586.7 Net Debt / Capitalization 44.1% Navios Holdings’ Liquidity Position Revolving Credit Facilities 2.9 Drawn Portion (4) (2.9) Undrawn portion 0.0 Cash (1) 277.1 Total Navios Holdings’ Liquidity 277.1 (1)Includes $6.0 million of restricted cash (2)Includes $293.8 million debt of Navios Logistics (3)Excludes noncontrolling interest (4)Drawing under facilities as of June 30, 2013 ($‘m) 36.4 509.0 725.4 0 100 200 300 400 500 600 700 800 2013 2014 2015 2016 2017 2018 2019+ Debt Maturity 7
  • $6,280 $1,188 $5,157 $181 $11,488 $15,968 $3,302 $1,770 • Breakeven includes operating costs of owned fleet (including drydock), charter-in expenses for charter-in fleet, general and administrative expenses including credit default insurance expenses, interest expense and capital repayments (excludes COAs, short term charters and FFAs) • Total Available Days of Core Fleet: 15,727 for 2013 • Includes JV vessels on a consolidated basis 2014 21.5% Fixed 2013 84.6% Fixed Average Contracted Daily Charter-Out Rate Opex (incl. drydocking) + Charter-in Costs General & Administrative Expenses Interest Expense Capital Repayments CostRevenue $12,806 8 2013E Cash Breakeven 2013 E 2014 E 2013E Breakeven Analysis Total Fixed Revenue 149,365,443 Dividends from affiliates 38,900,000 Total Cost (201,394,744) Excess cost over revenue (13,129,301) Open days 2,447 Impact on revenue per $1,000 day rate 2,447,000 $17,738 $14,790 * Allocation of part of the $175.4 million of insurance restructuring proceeds to the respective years * *
  • 17 Capesize 20 Panamax 19 Ultra- Handymax 2 Handysize 10 Vessels 1.77 million DWT 15 Vessels 1.16 million DWT 14 Vessels 0.75 million DWT 1 Vessel 0.04 million DWT 40 Owned 3.72 million DWT 7 Vessels 1.27 million DWT 5 Vessels 0.47 million DWT 5 Vessels 0.34 million DWT 1 Vessel 0.04 million DWT 18 LT Charter-In 2.12 million DWT (2) 4 Vessels 0.72 million DWT 2 Vessels 0.16 million DWT 4 Vessels 0.24 million DWT 1 Vessel 0.04 million DWT 11 Purchase Options 1.16 million DWT One of the Largest US-listed Dry Bulk Fleets Charter-in strategy allows fleet expansion with zero capital outlay & future ownership via purchase options Navios Group(3) controls 124 vessels 83 dry bulk (8.5 million DWT) and 41 tankers (4.2 million DWT) Navios Holdings Controls 58(1) Vessels (5.8 million DWT) 45 Vessels Currently Operating (4.8 million DWT) Average Age: 6.4 years (1) Excludes Navios Logistics’ fleet (2) Includes 11 vessels that have purchase options (3) Navios Group is composed of Navios Holdings (NM), Navios Partners (NMM) and Navios Acquisition (NNA). Excludes Navios Logistics’ fleet 9
  • $11,488 $15,968 $3,302 $1,770 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2013 2014 Average Daily Charter-out Rate 10 Long-Term Contracted Revenue Contracted Revenue (1) After Restructured Credit Default Insurance 2012 $266.6 million Cash Settlement $175.4 million 2013 $149.4 million 2014 $61.6 million (1) Excludes CoAs, Kleimar controlled fleet, Navios Logistics’ Fleet 84.6% 21.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 Contracted Days * Allocation of part of the $175.4 million of insurance restructuring proceeds to the respective years * *$14,790 $17,738
  • Efficient, Low Cost Operator  Established reputation as strong operating history allow for favorable charter contract terms and rates  Strong relationships allow for attractive charter-in rates with no capital outlay, low breakeven  Navios insured for entirety of contracted chartered- out/charter-in spread Favorable Long-Term Charter-in Contracts(2)LTM Average Daily Operating Costs / Vessel (including dry-docking)  Opex is approximately 32% less than industry average due to a modern, efficient fleet with strong in-house technical management  Navios Holdings benefits from technical management services provided to affiliates $3,841 $5,640 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Navios Average per Vessel Industry Average per Vessel $/Day (1) Source: Drewry Shipping Consultants October 2012 (2) Excludes Kleimar controlled vessels (1) $/Day $11,488 $13,357 $3,302 0 2000 4000 6000 8000 10000 12000 14000 16000 Average Daily Charter-out Rate Av. Charter-in Av. Charter-out * Allocation of part of the $175.4 million of insurance restructuring proceeds to the respective years 2013 * $14,790 11
  • Baltic Exchange Dry Index* 2002 – 2013 BDI October 2008 to date BDI 2002 to date * As of 08/21/2013 12
  • GDP Growth Driven by Emerging Economies Source: IMF July 2013 5.1 5.0 5.4 3.2 3.1 3.8 1.2 1.2 2.1 (6.0) (4.0) (2.0) - 2.0 4.0 6.0 8.0 10.0 Emerging and developing economies World Advanced economies IMF Latest Revisions of GDP Growth (%) July 2013 April 2013 World GDP 2013 ▼ 3.1 ▼ 3.3 2014 ▼ 3.8 ▼ 4.0 Advanced economies GDP 2013 1.2 ▼ 1.2 2014 ▼ 2.1 2.2 Emerging markets GDP 2013 ▼ 5.0 ▼ 5.3 2014 ▼ 5.4 ▼ 5.7 13
  • 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1980 1985 1990 1995 2000 2005 2010 Trade(MillionTons) Upside: India Source: Drewry Shipping Consultants Ltd. World Dry Bulk Trade 1980 - 2013 2.8% 5.5% China admitted to the WTO Berlin wall falls 1.1% Forecast 14
  • The Southern Trade Routes: How China / India Can Keep Growing Without the OECD United States South America Africa India China S.E. Asia Japan OECD Trade Expansion 1950+ Europe Southern Silk Route Massive expansion in “South: South” Trade, as expanding economies such as China and India invest overseas to secure raw material supply Source: Galbraiths, Oct 2011 and HSBC “Southern Silk Road” June 2011 Australia Movements of Oil, Iron Ore, Coal, Grain etc. from emerging nations in return for investment/infrastructure, Oil/Steel products from China and India 15
  • Worldwide urbanization and rising incomes Global urban populations are expected to increase substantially by 2050 along with incomes per capita leading to increased metal demand. Source: Rio Tinto and UN Growth in incomes and urban populations support increased metal demand which will increase seaborne movements of raw materials. 42% 51% 67% 0 1 2 3 4 5 6 7 8 9 10 Billions World urbanization will continue to grow: 6.3B urban residents by 2050 Urban Rural 16
  • Global iron ore – key developments Source: Clarksons Capital Markets, Macquarie, China NBS, TSI, SSY, Bloomberg 2013 Available Incremental Global Iron Ore Due 2013 to 2016 205.4 454.1 635.9 871.9 0 200 400 600 800 1000 2013 2014 2015 2016 Australia Brazil Africa Canada Others  Iron ore future prices currently showing a decline over the next two years to $107/ton in 2015 from a current spot price of $137.8/ton  Low iron ore prices mean Chinese domestic ore will become uncompetitive, resulting in substitution of higher quality imports for low quality domestic ores  Increased steel production in China will also cause increased iron ore imports 17
  • 50 55 60 65 70 75 80 85 90 95 100 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Milliontons $/Day Quarterly Brazilian Iron Ore Exports Baltic Cape TC Avg Brazil iron ore export seasonality; Future growth will drive cape rates Source: Clarksons, GTIS, Baltic Exchange 18
  • Million tons Iron Ore Steel Production Domestic Production Imports 2006 580 YoY% 326 YoY% 421 YoY% 2007 707 22% 384 18% 488 16% 2008 785 11% 444 16% 500 2% 2009 873 11% 630 42% 567 13% 2010 1,065 22% 619 -2% 626 10% 2011 1,315 24% 687 11% 683 9% 2012 1,329 1% 745 9% 717 5% 2013 through July 763E 7%E 458 8% 455 9% Sources: World Steel Association, National Bureau of Statistics of China/Mysteel, SSY Chinese Urbanization & Steel Production 0 50 100 150 200 250 2006 2007 2008 2009 2010 2011 2012 2013f 2014f MillionTonsperYear China Seaborne Coal Imports 20% CAGR 2009 to 2012 MillionTons Days 0 5 10 15 20 25 30 35 40 45 0 20 40 60 80 100 120 Jan Apr Jul Oct Jan Apr July Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul 2008 2009 2010 2011 2012 2013 Stockpiles Days of Inventory Avg Days of Inventory 19
  • Aging Fleet + Restricted Credit + High Scrap Price = Accelerated Scrapping(1) • 2009 scrapping ≈ 2.4% of fleet DWT (10.0 million DWT) • 2010 scrapping ≈ 1.3% of fleet DWT (5.8 million DWT) • 2011 scrapping ≈ 4.2% of fleet DWT (22.3 million DWT) • 2012 scrapping ≈ 5.5% of fleet DWT (33.6 million DWT) • 2013 scrapping ≈ 2.2% of fleet DWT (15.1 million DWT) - Projected 2013 scrapping: 24.1 million DWT or 3.6% • 2009 total dry bulk fleet ≈ 458.6 million DWT - Non delivery ≈ 40% • 2010 total dry bulk fleet ≈ 536.6 million DWT - Non delivery ≈ 38% • 2011 total dry bulk fleet ≈ 615.6 million DWT - Non delivery ≈ 30% • 2012 total dry bulk fleet ≈ 679.6 million DWT - Non delivery ≈ 30% • Net fleet growth for 2009 = 9.8% • Net fleet growth for 2010 = 16.5% • Net fleet growth for 2011 = 14.4% • Net fleet growth for 2012 = 10.3% 5.1% 5.5% 0% 10% Total Dry Bulk Fleet DryBulkIndustryAgeProfile(2) (% DWT) 20+ Years 25+ Years (1) Source: Clarksons (2) Source: SSY Dry Bulk Forecaster, July 2013 Scrapping Dynamics 10.6% (73.7 m dwt) Bulk Carrier Demolition(1) Year Total Demolition (m dwt) Demolition as % of Fleet 1998 12.3 4.62% 1999 9.3 3.53% 2000 4.6 1.72% 2001 8.2 2.97% 2002 6.1 2.12% 2003 4.2 1.42% 2004 0.4 0.12% 2005 1.0 0.30% 2006 1.7 0.50% 2007 0.5 0.14% 2008 5.6 1.42% 2009 10.6 2.53% 2010 6.4 1.40% 2011 22.2 4.33% 2012 33.6 5.46% 2013 Through 8/16/13 15.1 2.22% 2013 Projected 24.1 3.55% 20
  • 95.9 97.8 138.9 101.2 50.5 30.9 0 20 40 60 80 100 120 140 As of Jan 1, 2012 As of Jan 1, 2013 Source: Clarksons 2013 • July YTD: 69.7 million DWT projected; 40.5 million actual DWT delivered (42% non-delivery by DWT-preliminary) • 495 actual deliveries, 872 newbuilds projected (43% non-delivery by # of vessels -preliminary) 2012 • 138.9 million DWT projected; 98.2 million actual DWT delivered (29% non-delivery by DWT) • 1,192 actual deliveries, 1,665 newbuilds projected (28% non-delivery by # of vessels) 2011 • 137.3 million DWT projected; 95.9 million actual DWT delivered (30% non-delivery by DWT) • 1,147 actual deliveries, 1,691 newbuilds projected (32% non-delivery by # of vessels) 2010 • 125.6 million DWT projected; 77.9 million actual DWT delivered (38% non-delivery by DWT) • 957 actual deliveries, 1,528 newbuilds projected (38% non-delivery by # of vessels) 2009 • 71.3 million DWT projected, 43.1 million actual DWT delivered (40% non-delivery by DWT) • 546 actual deliveries, 962 newbuilds projected (43% non-delivery by # of vessels) Orderbook by year of delivery MillionDWT 2011 2012 2013 2012 2013 2014 Before non-delivery Actual non- delivery 41.4mdwt Dry Bulk Orderbook Before non-delivery Actual non- delivery 41.1mdwt • 2013 projected deliveries is currently 101.2 million DWT as of January 2013 (before non-deliveries) • Annualized deliveries for 2013 are about 60 million DWT based on the current non-delivery percent 21
  • -1.5% -0.8% 1.6% 1.2% 1.4% 1.7% -0.3% 3.4% -6.0% -5.2% -8.3% -4.4% -1.1% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013f Seaborne Dry Bulk Supply/Demand Balance 0 2000 4000 6000 8000 10000 12000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Baltic Dry Index Source: SSY , Baltic Exchange, 2013 Projections: SSY, Drewry, Howe Robinson 2013 Projection Range 0% +1.2% 22
  • Earnings Highlights ($ ‘000 except per share data) Three months ended June 30, 2013 Three months ended June 30, 2012 Y-O-Y Variance Six months ended June 30, 2013 Six months ended June 30, 2012 Y-O-Y Variance Revenue 125,572 172,079 (27%) 259,409 324,093 (20%) EBITDA 38,800 61,086 (36%) 77,274 123,659 (37%) Adjusted EBITDA 38,800 60,763 (1) (36%) 77,274 123,336 (1) (37%) Net (Loss) / Income (15,881) 5,285 N/A (26,036) 14,744 N/A Adjusted Net (Loss) / Income (15,881) 4,962 (1) N/A (26,036) 14,421 (1) N/A Basic (Losses) / Earnings per Share (0.16) 0.05 N/A (0.26) 0.14 N/A Adjusted Basic (Losses) / Earnings Per Share (0.16) 0.04 (1) N/A (0.26) 0.13 (1) N/A (1) Adjusted EBITDA, Adjusted Net Income and Adjusted Basic EPS for the three and six month periods ended June 30, 2012, excludes $0.3 million gain from the sale of the Navios Buena Ventura to Navios Partners. NM Q2 & H1 2013 Earnings Highlights 23
  • NM Strong Balance Sheet Selected Balance Sheet Data (in $'000) June 30, 2013 December 31, 2012 Cash & cash equivalents 271,097 257,868 Restricted cash 6,011 24,704 Other current assets 191,813 187,995 Vessels, port terminal and other fixed assets, net 1,721,979 1,746,493 Total Assets 2,973,691 2,941,462 Current portion of long term debt 14,255 33,095 Other current liabilities 167,039 156,281 Senior notes, net of discount 1,127,714 1,034,141 Long term debt, net of current portion 276,759 290,976 Stockholders Equity (1) 1,167,983 1,206,376 Book Capitalization (1) 2,586,711 2,564,588 Net Debt / Book Capitalization 44.1% 41.9% (1) Excludes noncontrolling interest. 24
  • Returning Capital to Shareholders Dividend Policy: Q2 2013 NM Distribution: $0.06 per share Record Date: September 18, 2013 Payment Date: September 26, 2013 Shares Outstanding as of Q2: 103,330,707 Total cost: $6.2 million Annual run rate: $24.8 million Annualized dividends from public subsidiaries: $41.4 million 25
  • 100% Membership Interest 2.0% General Partner Interest Incentive Distribution Rights 76.6% Limited Partner Interest 21.4% Limited Partner Interest 25 Dry Bulk Vessels 8 Capesize, 14 Panamax and 3 Ultra Handymax Dry Bulk Carriers 100% Membership Interest Navios GP L.L.C. (General Partner) Navios Maritime Partners L.P. NYSE: NMM Common UnitholdersNavios Maritime Holdings Inc. NYSE: NM Navios Partners Ownership Structure 26
  • NM’s Economic Interest in NMM Cash Distributions FY 2013F $29.4 million FY 2012 $28.6 million FY 2011 $25.6 million FY 2010 $22.2 million FY 2009 $18.1 million FY 2008 $11.9 million Total $135.8 million NM Ownership of NMM Units Market Value August 21, 2013 15.6 million units 23.4% $218.7 million December 31, 2012 15.5 million units 25.2% $210.3 million December 31, 2011 15.4 million units 27.1% $212.2 million December 31, 2010 14.7 million units 28.7% $267.3 million December 31, 2009 12.4 million units 37.0% $169.0 million December 31, 2008 11.2 million units 51.6% $79.9 million November 12, 2007 (IPO) 8.0 million units 43.2% $159.8 million (1) As of August 21, 2013 (2) Including GP interest Economic Interest (2) Value Appreciation $110.5 million or 102% Book Value $108.2 million Market Value $218.7 million (1) 27
  • 51.8% Interest 48.2% Interest (1) 41 Tanker Vessels 21 MR2, 8 LR1, 8 VLCC, and 4 Chemical Tankers 100% Ownership Interest Navios Maritime Acquisition Corp. NYSE: NNA Public Shareholders Navios Maritime Holdings Inc. NYSE: NM NNA Ownership Structure (1) 51.60% economic interest 28
  • NNA Company Highlights Large, Modern and Diverse Tanker Fleet  41 owned vessels (29 in the water), 12 to be delivered (10 newbuildings)  Modern high-quality fleet with an average age of 4.7 years  Diverse portfolio of 8 VLCC, 8 LR1, 21 MR2 and 4 Chemical Tankers Proprietary Deal Flow Built in Growth  Access to distressed deals through strong relationships with banks  Available revenue days will grow from 5,786 days in 2012 to 12,596 days in 2014 (118% growth in available revenue days)  14 product tankers delivering throughout 2013, 5 in 2014 and 2 in 2015 Long-Term Cash Flow Visibility with Strong Counterparties  93.6% of revenue days fixed in 2013 - $188.4 million  62.8% of revenue days fixed in 2014 - $169.8 million  Average duration of all charters of 2.4 years  Diverse group of first-class charterers (DOSCO, Shell, Koch, Vitol, Formosa) Well Positioned to Capture Product Tanker Market Upside  44% of product tankers revenue days open in 2014 and 70% in 2015  84% of entire contracted fleet and 88% of product tanker contracted fleet has profit sharing  Every $1,000 of profit share above base rate provides $8.0 million free cash flow or $0.07 per common share annualized Low Cash Flow Breakeven  Full cost of entire fleet covered from existing long-term charters for 2013  Operating expenses below the industry average; fixed until mid-2014  Low financing cost through distress deals with banks Seasoned Management Team with Strong Capital Market Presence and Track Record  Strategic relationships with shipyards, banks and key industry players  Average industry experience of 20+ years per person  NNA has raised about $1.1 billion in capital markets 29
  • 46.4 57.3 H1 2012 H1 2013 73.5 97.5 2011 2012 Vessel Deliveries Continue to Provide Material Growth 4,053 5,786 9,646 2011 2012 2013 Available Days 30 67% 43% 121.9 151.1 188.4 2011 2012 2013 Contracted Revenue (m USD) 25% 24% 100%(1) 100% 93.6% 23% 33% 14 19 34 2011 2012 2013 Fleet 79% 36% (1) % of fixed days (2) Excludes the effect of $3.7 million compensation fee for early charter termination (2) EBITDA (m USD)
  • NM’s Economic Interest in NNA Cash Distributions FY 2013F $9.5 million FY 2012 $5.2 million FY 2011 $5.2 million Total $19.9 million NM Ownership of Economic Interest in NNA Market Value August 21, 2013 60.0 million shares 51.6% $222.6 million December 31, 2012 26.0 million shares 54.0% $61.6 million December 31, 2011 26.0 million shares 54.0% $64.0 million December 31, 2010 26.0 million shares 53.7% $89.7 million 31 Economic Interest Value Appreciation $28.3 million or 15% Book Value $194.3 million Market Value $222.6 million (1) (1) As of August 21, 2013
  • 32 Cabotage Business • Refined product transportation along the Argentinean coast • Six ocean going product tankers and two self-propelled barges • Strategy to secure cash flows with long term contracts • Awarded Brazilian Cabotage contracts for six newbuilding vessels Barge Business • 329 barges and pushboats (1) transporting dry and liquid cargoes across the river system – Pushboats – Dry barges – Oil barges – LPG barges • 1 floating dry dock 36.2% Ownership63.8% Ownership Peers Business Inc. Navios Maritime Holdings Inc. NYSE: NM Navios South American Logistics Inc (Marshall Islands) Port Terminal Operations Storage and Transfer • Bulk Terminal – Nueva Palmira – Uruguay (tax free zone) with 460,000 mt dry storage capacity • Fuel Terminal – San Antonio Port – Paraguay with 45,660 m3 storage capacity Navios Logistics Ownership Structure (1) Including 3 pushboats and 36 barges to be delivered
  • Navios Logistics Highlights 33 Leading Logistics Provider in the Hidrovia Region of South America  Largest independent dry terminal in Hidrovia  One of the largest independent liquid terminals in Paraguay  One of the largest, most versatile barge river fleets serving a diverse set of industries  Largest Argentinean product cabotage fleet with an average age of 4 years Multiple Avenues of Growth  Opportunities to invest in new port infrastructure  Increasing minerals and grain production and fuel demand create need for new convoys  Opportunity to expand in Brazilian cabotage Favorable Market Fundamental  Robust growth in exports of grain and mineral commodities  Hidrovia system and coastal cabotage are critical infrastructure for region Scale and Strong Asset Base Provide Operating Efficiency  Economies of scale provide low costs per ton transported  Integrated terminal, barge and cabotage network offers substantial operating leverage Strong Counterparties  Diverse group of large, high-quality counterparties  Exposure to ADM, Bunge, Cargill, Dreyfus, Petrobras, Petropar, Vale, Vitol among others Focus on Contracted Cash Flow  Strategic positioning with fixed rate contracts and CoA’s with minimum volume guarantees  Long-term relationships with high contract renewal rates Seasoned Management Team with Strong Track Record and Established Brand  Strategic relationships  Experienced management team  Long operating history in region
  • New Business 34 Acquired three barge convoys for approximately $49.2 million • Estimated cost: – $22.7 million for three second hand push boats ($7.6 million each, including transportation) – delivery Q4 2013 – $26.5 million for 36 new building barges ($736,500 each, including transportation) – delivery Q1 2014 • 36 “Parana-type” barges to be built in China – Shipyard relationship leverages Navios Holdings’ global reach – “Parana-type” = 2,800 dwt vs. “Mississippi-type” = 1,500 dwt – 12-barge “Parana-type” convoy has ~ 40% higher carrying capacity compared to a 16-barge “Mississippi-type” convoy with similar operating costs – Option for additional 36 barges under same pricing and terms Agreement in principle for long-term take-or-pay contract • Convoys to be employed for an initial seven-year period • Estimated annual EBITDA = $9.9 million ($3.3 million per convoy) • Tariff adjustments for fuel, crew cost and FX movements • Contract party: A-/Baa2 rated quality credit
  • Track Record of Strong EBITDA Growth 35 188.0 234.7 247.0 2010 2011 2012 32.5 39.0 48.1 2010 2011 2012 Revenue ($ million) EBITDA ($ million) 14.6% CAGR 21.7% CAGR 123.4 136.7 H1 2012 H1 2013 24.1 31.7 H1 2012 H1 2013 10.7% 31.6% $90.0 Million Raised in Q1 2013 through Add-On Bond for Growth Capex
  • Navios Logistics Q2 & H1 2013 Earnings Highlights 36 (in $ ‘000) Three months ended June 30, 2013 Three months ended June 30, 2012 Y-O-Y Variance Six months ended June 30, 2013 Six months ended June 30, 2012 Y-O-Y Variance Navios Logistics Revenue 63,467 73,293 (13%) 136,697 123,440 11% EBITDA 17,583 15,373 14% 31,705 24,091 32% Net income 4,423 2,397 85% 10,357 8 n/a Port Terminals Revenue 22,705 30,286 (25%) 59,418 49,923 19% EBITDA 6,971 6,363 10% 14,257 11,713 22% Barge Business Revenue 25,787 27,424 (6%) 49,069 47,398 4% EBITDA 4,519 3,723 21% 7,384 5,552 33% Cabotage Business Revenue 14,975 15,583 (4%) 28,210 26,119 8% EBITDA 6,093 5,287 15% 10,064 6,826 47%
  • Navios Logistics Strong Balance Sheet Selected Balance Sheet Data (in $'000) June 30, 2013 December 31, 2012 Cash & cash equivalents 124,543 45,538 Accounts Receivable 31,431 29,122 Vessels port terminal and other fixed assets, net 362,414 356,038 Total Assets 737,432 636,344 Senior notes 293,251 200,000 Current portion of long term debt 69 69 Long term debt, net of current portion 498 529 Current portion of capital lease obligations 1,376 1,353 Capital lease obligations, net of current portion 23,074 23,759 Noncontrolling Interest 673 561 Stockholders Equity (1) 331,197 320,840 Book Capitalization (1) 649,465 546,550 Net Debt / Book Capitalization 30% 33% (1) Excludes noncontrolling interest 37
  • NM Summary Large, Modern Fleet Provides Scale in a Fragmented Industry • 58 (2) controlled vessels; 40 owned / 18 chartered-in • Modern high-quality fleet with an average age of 6.4 years (vs. 9.3 year(3) average for industry) • Diverse portfolio of Capesize, Panamax, Ultra-Handymax and Handysize vessels Positioned to Capture Market Recovery • Substantial increase in open days as cycle is turning • 84.6% (1) of revenue days in 2013 - $149.4 million • 21.5% (1) of revenue days in 2014 - $61.6 million Low Cash Flow Breakeven • Operating costs lower than average due to efficient in-house operations • Favorable long-term charter-in rates • Capex-lite charter-in strategy with flexible, discretionary options to purchase Strong Brand with Established Track Record in the Drybulk Industry • About 60 years of operating history • Strategic relationships with shipyards, commercial banks and other industry players • Contracts with reputable creditworthy counterparties Proven Market Access • Approx. $1.4 billion of debt and equity issued since September 2008 • $400 million senior secured notes issued in November 2009 • $350 million senior unsecured notes issued in January 2011 • $88 million add-on senior secured notes issued in July 2012 Favorable Long-Term Industry Dynamics • Strong emerging market demand, aging dry bulk fleet, increased scrapping activity, and slippage of new buildings Seasoned Management Team • Average industry experience of 20+ years per person Multiple Avenues of Growth • Navios Maritime Partners • Navios South American Logistics • Navios Maritime Acquisition • Navios Holdings core activities(1) Excludes Kleimar vessels (2) Excludes Navios Logistics fleet (3) Source: Drewry’s as of August 2013 38 Long-term contracts insured by AA rated Insurance Company in the EU
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  • Appendix
  • Owned Fleet: Panamax & Ultra Handymax Vessels Type Built DWT Charter Rate ($) (1) Expiration Date (2) Profit Share NM % Base (3) Navios Serenity Handysize 2011 34,690 15,533 10/13/2013 No Navios Ionian Ultra Handymax 2000 52,067 8,788 12/17/2013 No Navios Horizon Ultra Handymax 2001 50,346 9,500 09/05/2013 No Navios Herakles Ultra Handymax 2001 52,061 8,788 03/28/2014 No Navios Achilles Ultra Handymax 2001 52,063 8,788 10/28/2013 No Navios Meridian Ultra Handymax 2002 50,316 8,883 11/04/2013 No Navios Mercator Ultra Handymax 2002 53,553 10,450 08/30/2013 No Navios Vector Ultra Handymax 2002 50,296 9,738 08/29/2013 No Navios Arc Ultra Handymax 2003 53,514 8,788 09/19/2013 No Navios Hios Ultra Handymax 2003 55,180 8,181 08/07/2015 100% in excess of $8,500 Navios Kypros Ultra Handymax 2003 55,222 8,550 03/20/2014 No Navios Astra Ultra Handymax 2006 53,468 10,213 09/25/2013 No Navios Ulysses Ultra Handymax 2007 55,728 9,975 04/30/2014 No Navios Vega Ultra Handymax 2009 58,792 9,025 12/16/2013 No Navios Celestial Ultra Handymax 2009 58,063 8,833 7,600 11/08/2013 05/08/2015 No 70% in excess of $8,000 Navios Magellan Panamax 2000 74,333 8,313 03/15/2014 No Navios Star Panamax 2002 76,662 7,790 01/22/2014 No Navios Centaurus Panamax 2012 81,472 12,825 04/15/2014 No Navios Avior Panamax 2012 81,355 12,716 05/14/2014 No Total: 19 vessels 1,099,181 41 (1) Daily rate net of commissions or net insurance rates. These rates do not include insurance proceeds received upfront in November 2012 (2) Expected Redelivery basis midpoint of full redelivery period (3) Profit share based on applicable Baltic routes exceeding $/day rates listed. Appendix: Core Fleet
  • (1) Daily rate net of commissions or net insurance rates. These rates do not include insurance proceeds received upfront in November 2012 (2) Expected Redelivery basis midpoint of full redelivery period (3) Subject to COA of $45,500 per day for the remaining period until Q1 2015 (4) Profit share based on applicable Baltic routes exceeding $/day rates listed. (5) Amount represents daily rate of mitigation proceeds following the restructuring of the original charter. Appendix: Core Fleet Owned Fleet: Capesize Vessels Type Built DWT Charter Rate ($) (1) Expiration Date (2) Profit Share NM%/Base (4) Navios Bonavis Capesize 2009 180,022 47,400 06/29/2014 No Navios Happiness Capesize 2009 180,022 14,488 10/12/2015 No Navios Lumen Capesize 2009 180,661 10,450 (5) 01/18/2014 No Navios Stellar Capesize 2009 169,001 10,450 11/11/2013 No Navios Phoenix Capesize 2009 180,242 13,656 01/27/2014 (3) No Navios Antares Capesize 2010 169,059 12,350 01/06/2014 No Navios Etoile Capesize 2010 179,234 29,356 12/02/2020 50% in excess of $38,500 Navios Bonheur Capesize 2010 179,259 17,100 11/20/2013 No Navios Altamira Capesize 2011 179,165 23,440 01/28/2016 No Navios Azimuth Capesize 2011 179,169 9,738 01/15/2014 No Total: 10 vessels 1,775,834 42
  • Long-Term Chartered-In Fleet Vessels Type Built DWT Charter Rate ($) (1) Expiration Date (2) Purchase Option (3) Profit Share NM % / Base (5) Navios Lyra Handysize 2012 34,718 6,175 08/25/2013 Yes (4) No Navios Apollon Ultra Handymax 2000 52,073 7,700 08/14/2014 No 100% in excess of $8,000 Navios Primavera Ultra Handymax 2007 53,464 8,835 11/16/2013 Yes No Navios Armonia Ultra Handymax 2008 55,100 9,263 09/24/2013 No No Navios Oriana Ultra Handymax 2012 61,442 8,788 08/28/2013 Yes No Navios Libra II Panamax 1995 70,136 8,550 10/07/2013 No No Navios Altair Panamax 2006 83,001 8,075 10/22/2013 No No Navios Esperanza Panamax 2007 75,356 6,840 09/03/2013 No No Navios Marco Polo Panamax 2011 80,647 7,838 01/13/2014 Yes No Navios Southern Star Panamax 2013 82,224 10,450 10/12/2013 Yes No Navios Koyo Capesize 2011 181,415 11,970 03/05/2014 Yes No Total: 11 vessels 829,576 (1) Daily charter-out rate net of commissions. (2) Assumed midpoint of redelivery by charterers. (3) Generally, Navios Holdings may exercise its purchase option after three to five years of service. (4) Navios Holdings holds the initial 50% purchase option on the vessel (5) Profit share based on applicable Baltic routes exceeding $/day rates listed. 43 Appendix: Core Fleet
  • Vessels to be Delivered Vessels Type Delivery Date DWT Purchase Option Long-term Chartered-in Vessels on Order Navios Mercury Ultra-Handymax 09/2013 61,000 Yes Navios Venus Ultra-Handymax 02/2015 61,000 Yes Navios Felix Capesize 04/2016 180,000 Yes Total: 3 vessels 302,000 44 Appendix: Core Fleet Vessels Type Built Owned Vessels Navios Galileo Panamax 2006 Navios Northern Star Panamax 2005 Navios Amitie Panamax 2005 Navios Taurus Panamax 2005 Total: 4 vessels of 303, 982 DWT
  • 45 Appendix: Navios Asia LLC Fleet (1) Vessel Name Type Built Charter Period (2) Charter Rate (net) Navios TBN Kamsarmax 2007 Q4 2014 $13,199 Navios TBN Panamax 2007 Q4 2014 $11,426 Navios TBN Panamax 2007 Q3 2015 $10,687 Navios TBN Panamax 2007 Q3 2014 $10,540 Navios TBN Panamax 2006 Navios TBN Panamax 2006 Q4 2013 $11,520 Total: 6 vessels of 464,173 DWT (1) 51% ownership of NM (2) Expiration date assuming no exercise of optional periods
  • Kleimar Controlled Fleet Owned Vessels Vessels Type DWT Built % Owned Navios Asteriks Panamax 76,801 2005 100% Long-Term Chartered-in Vessels Vessels Type DWT Built Expiration(1) Purchase Option Golden Heiwa Panamax 76,662 2007 03/2017 No Beaufiks Capesize 180,310 2004 06/2017 Yes Rubena N Capesize 203,233 2006 01/2016 No SC Lotta Capesize 169,056 2009 03/2014 No King Ore Capesize 176,800 2010 05/2020 No Navios Obeliks Capesize 181,415 2012 07/2022 Yes Total: 7 vessels 1,064,277 (1) Assumes vessels redeliver to owners post expiration of extension period 46 Appendix
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