1. Navios Maritime Acquisition
Corporation (NNA)
LONG POSITION: $6.79 PRICE TARGET
SAM KAPLAN
4/6/2014
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2. Where Are We?
•29.6% returns in the S&P 500 Index in 2013
•The Fed sustains interest rates at artificially low levels (2.77%)
•Facebook bought a company with no revenues for $2 billion
•Seth Klarman: “There is a growing gap between the financial
markets and the real economy”
•Where can we find undervaluation?
•Shipping
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3. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
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4. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
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5. Investment Thesis
1. Crude and product tankers are in the early stages of a recovery
2. Navios Acquisition Corp. is a strong company with competitive advantages that will allow
them to take advantage of business opportunities
3. Navios Acquisition Corp. is both relatively and intrinsically undervalued
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6. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
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7. Shipping
•Stock prices, ship values
and day rates near historical
lows
•High operating leverage
•Crude crushed
•Geographic shift leading to
longer routes
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8. Capital Product Partners L.P. (CPLP)
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9. Frontline Ltd. (FRO)
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10. Teekay Tankers Ltd. (TNK)
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11. Tsakos Energy Navigation Limited (TNP)
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12. DHT Holdings, Inc. (DHT)
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13. What Happened?
•The tanker industry was booming between 2000 and 2008
•Shipping companies began ordering more ships
•Ships take approximately 2 years to build
•Financial Crisis
•Industry utilization hit bottom in 2011
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14. Impact on Crude Tanker Industry
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1000
1500
2000
2500
3000
3500
Crude Tanker Supply and Demand (DWT)
Demand in Terms of DWT Supply in Terms of DWT
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
Crude Tanker Implied Utilization (DWT)

15. Impact on Product Tanker Industry
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10,000
15,000
20,000
25,000
30,000
35,000
Product Tanker Supply and Demand (DWT)
Demand in Terms of DWT Supply in Terms of DWT
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
Product Tanker Implied Utilization (DWT)

16. Industry Order Book
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17. What Next for Crude Tankers?
•Global oil imports are expected to increase 1.4% in 2014, due to declining US imports and
expanding Asian imports
•China’s oil consumption increased at a 16% compounded annual growth rate between 2009 and
2013
•81% of the 387 million metric tons of spot crude oil shipped by VLCCs in 2013 was discharged in
Asia
•Imports to Asia require longer shipping distances
•Current crude tanker spot rates are 50% below the 10-year average
•Increasing support for the repeal of the ban on US crude exports
•Contango
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18. Historical and Expected Crude Oil Trade
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19. Increasing Shipping Distances
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20. Spot Rates Near Historical Lows
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21. Crude Tanker Values Near Historic Lows
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22. Contango
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23. What Next for Product Tankers?
•Refinery capacity is expected to increase by 9.5 million barrels per day between 2013 and 2018
•Approximately 80% of this capacity will be added in the broader Asia and Middle East regions
•New low-cost Asian and Middle Eastern capacity is forcing closures of old high-cost OECD
capacity, which structurally favors more long –haul products trade
•Refined oil products ton mile growth is expected to outpace the demand for refined oil products,
increasing the demand for product tankers
•Since US crude exports are banned, product exports have increased with crude production
•Current product tanker day rates are 36% below the 10 year average
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24. Longer Routes
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25. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
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26. Company Overview
•Spun off from Navios Maritime Holdings Inc. in 2008 (Navios Maritime still has 47.8% of voting
power and 50.5% of the economic interest)
•Charters its vessels to international oil companies, refineries, and large vessel operators under
long, medium and short-term charters
•Operate 10 VLCCs, 8 LR1s, 21 MR2s, and 4 Chemical Tankers
•Focus in Asia
•560M Market Cap
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27. Geographic Composition
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78.3%
11.8%
9.9%
Revenues by Geographic Region
% Asia % Europe % United States

28. Fleet Composition
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23%
19%
49%
9%
By Number of Vessel
VLCC LR1 MR2 Chemical Tankers
58%
15%
24%
3%
By DWT Capacity
VLCC LR1 MR2 Chemical Tankers

29. Competitive Advantages
•Modern, High-Quality Fleet
•Diversified Fleet
•Capitalize on Low Vessel Price
•High Quality Counterparties
•Experienced Management Team
•Competitive Cost Structure
•The Navios Brand and Network
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30. Competitive Cost Structure
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11644
7330
6330 6330
12060
8550 8340
7920
5000
6000
7000
8000
9000
10000
11000
12000
13000
VLCC Crude LR1 Product MR2 Product IMO II Chemical
Cost per Day
Navios Industry Average
3%
14%
24%
20%
0%
5%
10%
15%
20%
25%
30%
VLCC Crude LR1 Product MR2 Product IMO II Chemical
Navios Cost Advantage

31. Liquidity and Solvency
Liquidity: 2010 2011 2012 2013
Current Ratio 2.80 1.02 1.06 1.85
Quick Ratio 2.27 0.61 0.71 1.40
Adj. EBITDA/Interest 12.20 2.57 1.93 1.45
Solvency: 2010 2011 2012 2013
Total Liabilities/Assets 0.75 0.80 0.83 0.72
Total Liabilities/Equity 2.96 4.01 4.93 2.58
Debt/Capital 0.74 0.78 0.81 0.71
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32. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
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33. Public Comparables Analysis
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$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00
2013A EV/Revenues:
2014E EV/Revenues:
2013A EV/Adj. EBITDA:
2014E EV/Adj. EBITDA:
Public Comparables Analysis
Min to 25th 25th to Median Median to 75th 75th to Max

34. Discounted Cash Flow Analysis
Assumptions
•NNA increases fleet by 2 vessels per year
•NNA fleet composition remains constant
•Average day rate increases to $27.5 thousand per day by 2018 (management projects $31.2 thousand
by 2016)
•Total utilization improves from 79.9% to 82.6% between 2013 and 2018 (management projections
imply 95.9% by 2015)
•Available utilization falls from 99.6% to 97.0% between 2013 and 2018
•Cost per day is 15-17% above historical cost
•Value of vessels appreciate by 10% over a 5 year period
•Terminal Value is the aggregate value of ships owned
•WACC=7.09%
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35. Acquisition Sensitivity
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Implied Price:
9.31$ 43 46 49 52 55
9% 6.01 6.88 7.75 8.62 9.49
8% 6.72 7.63 8.54 9.45 10.36
7% 7.47 8.43 9.38 10.33 11.28
6% 8.27 9.26 10.26 11.26 12.26
5% 9.10 10.15 11.20 12.24 13.29
Estimated 2018 Number of Vessels
W
A
C
C
Implied Return:
43 46 49 52 55
9% 63% 86% 110% 134% 157%
8% 82% 107% 132% 156% 181%
7% 103% 128% 154% 180% 206%
6% 124% 151% 178% 205% 232%
5% 147% 175% 203% 232% 260%
Estimated 2018 Number of Vessels
W
A
C
C
Mean Min 25th Median 75th Max
Impled Price 9.43 6.01 8.27 9.38 10.36 13.29
Implied Return 155% 63% 124% 154% 181% 260%

36. Vessel Appreciation Sensitivity
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Implied Price:
9.31$ 0% 5.0% 10.0% 15.0% 20.0%
9% 6.46 7.10 7.75 8.39 9.04
8% 7.19 7.87 8.54 9.22 9.89
7% 7.97 8.67 9.38 10.09 10.79
6% 8.78 9.52 10.26 11.00 11.74
5% 9.64 10.42 11.20 11.97 12.75
Vessel Price Appreciation
W
A
C
C
Implied Return:
0% 5% 10% 15% 20%
9% 75% 93% 110% 127% 145%
8% 95% 113% 132% 150% 168%
7% 116% 135% 154% 173% 193%
6% 138% 158% 178% 198% 218%
5% 161% 182% 203% 224% 246%
Vessel Price Appreciation
W
A
C
C
Mean Min 25th Median 75th Max
Implied Price 9.43 6.46 8.39 9.38 10.42 12.75
Implied Return 155% 75% 127% 154% 182% 246%

37. Public Comparables and DCF Valuation
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$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00
2013A EV/Adj. EBITDA:
2014E EV/Adj. EBITDA:
Discounted Cash Flow:
Min to 25th 25th to Median Median to 75th 75th to Max

38. Price Target
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Median Price Target: $17.78
Years 1 2 3 4 5
Annual Return 382% 120% 69% 48% 37%
1st Quartile Price Target: $6.79
Years 1 2 3 4 5
Annual Return 84% 36% 23% 16% 13%

39. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
SAGEHEN CAPITAL MANAGEMENT

40. Risks
•Day rates and vessel values take longer than 5 years to recover
•Navios cannot find attractive distressed acquisitions
•Asian demand and industry utilization do not increase as expected
•Unforeseen future regulation
•Drastic unexpected shift in crude and refined product consumption
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41. Executive Summary
1. Thesis
2. The Shipping Industry
3. About Navios
4. Valuation
5. Risks
6. Questions
SAGEHEN CAPITAL MANAGEMENT

42. Questions?
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43. Appendix:
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44. SAGEHEN CAPITAL MANAGEMENT
Income Statement:
Year Ended Dec. 31st 2010 2011 2012 2013
Revenue 33,568$ 121,925$ 151,097$ 202,397$
Time charter and voyage expenses (355) (3,499) (2,824) (6,762)
Direct vessel expenses - (633) (2,622) (3,096)
Gross profit 33,213 117,793 145,651 192,539
Management fees (entirely through related party transactions) (9,752) (35,679) (47,043) (71,392)
General and administrative expenses (4,042) (4,241) (3,853) (7,017)
Transaction costs (8,019) - - -
Depreciation and amortization (10,120) (38,638) (49,644) (63,880)
Operating income 1,280 39,235 45,111 50,250
Loss on bond and debt extinguishment (5,441) (935) - (33,973)
Interest income 862 1,414 445 315
Interest expenses and finance cost, net (10,651) (43,165) (49,432) (58,386)
Loss on sale of vessel - - - (21,098)
Other income 404 155 280 4,787
Other expense - (561) (202) (487)
Net loss (13,546) (3,857) (3,798) (58,592)

45. SAGEHEN CAPITAL MANAGEMENT
Common Sized Income Statement
Year Ended Dec. 31st 2010 2011 2012 2013
Revenue 100.0% 100.0% 100.0% 100.0%
Time charter and voyage expenses 1.1% 2.9% 1.9% 3.3%
Direct vessel expenses 0.0% 0.5% 1.7% 1.5%
Gross profit 98.9% 96.6% 96.4% 95.1%
Management fees (entirely through related party transactions) 29.1% 29.3% 31.1% 35.3%
General and administrative expenses 12.0% 3.5% 2.6% 3.5%
Transaction costs 23.9% 0.0% 0.0% 0.0%
Depreciation and amortization 30.1% 31.7% 32.9% 31.6%
Operating income 3.8% 32.2% 29.9% 24.8%
Loss on bond and debt extinguishment 16.2% 0.8% 0.0% 16.8%
Interest income 2.6% 1.2% 0.3% 0.2%
Interest expenses and finance cost, net 31.7% 35.4% 32.7% 28.8%
Loss on sale of vessel 0.0% 0.0% 0.0% 10.4%
Other income 1.2% 0.1% 0.2% 2.4%
Other expense 0.0% 0.5% 0.1% 0.2%
Net loss -40.4% -3.2% -2.5% -28.9%

46. SAGEHEN CAPITAL MANAGEMENT
Income Statement Growth
Year Ended Dec. 31st 2011 2012 2013
Revenue 263.2% 23.9% 34.0%
Time charter and voyage expenses 885.6% -19.3% 139.4%
Direct vessel expenses 314.2% 18.1%
Gross profit 254.7% 23.6% 32.2%
Management fees (entirely through related party transactions) 265.9% 31.9% 51.8%
General and administrative expenses 4.9% -9.1% 82.1%
Transaction costs -100.0%
Depreciation and amortization 281.8% 28.5% 28.7%
Operating income 2965% 15.0% 11.4%
Loss on bond and debt extinguishment -82.8% -100.0%
Interest income 64.0% -68.5% -29.2%
Interest expenses and finance cost, net 305.3% 14.5% 18.1%
Loss on sale of vessel
Other income -61.6% 80.6% 1609.6%
Other expense -64.0% 141.1%
Net loss -71.5% -1.5% 1442.7%