Q Earnings Presentation August 10, 2017

Transcription

1 Q Earnings Presentation August 10, 2017

2 Forward-Looking Statements 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 expectations, including with respect to Navios Acquisition s future dividends, 2017 cash flow generation and Navios Acquisition s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "may", "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 revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Navios Acquisition at the time this presentation was made. Although Navios Acquisition 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 Acquisition. 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, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and drydocking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Acquisition operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Acquisition's filings with the U.S. Securities and Exchange Commission including its annual and interim reports filed on Form 20-F and Form 6-K. Navios Acquisition 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 Acquisition s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Acquisition makes no prediction or statement about the performance of its common stock. 2

3 Navios Universe Scale, experience and relationships Global brand, industry relationships and reputation Economies of scale of ~ 200 vessel fleet owned/managed Ship management within the public company cost center vs profit center Track record of value creation through the cycle Importance to NNA Access to deal flow Professional management team Alignment of interests Fixed OpEx Special Purpose Vehicles Navios Europe I & II 24 vessels: 12 Containers, 5 Panamax, 2 handymax 5 Product Tankers Navios Maritime Containers Inc. (Oslo OTC: NMCI) 14 Container vessels Navios Maritime Acquisition Corporation (NYSE: NNA) 36 vessels - 26 product tankers, 8 VLCCs, 2 chemical tankers Navios Maritime Holdings Inc. (NYSE: NM) 64 vessels: 38 owned, 26 chartered-in Navios Maritime Partners L.P. (NYSE: NMM) 37 vessels: 13 Capes, 14 Panamaxes, 3 Ultra- Handymaxes, 7 Containers Navios Maritime Midstream Partners L.P. (NYSE: NAP) 6 VLCCs Navios South American Logistics Inc. Port Terminal facilities, barging & cabotage 3

4 Ownership Structure Navios Maritime Acquisition Corp. NYSE: NNA - $ VLCCs 8 LR1 Product Tankers 18 MR2 Product Tankers 2 Chemical Tankers H Adjusted EBITDA: $64.5 million Annual dividend: $0.20; 14.8% yield 59.0% $0.79 / common share Navios Maritime Midstream Partners L.P. NYSE: NAP - $ VLCCs H EBITDA: $27.1 million Market value of NNA ownership: $118.9 million 2017 expected dividend: $1.69; 17.9% yield $49.1 million in dividends distributed to NNA since 2015 All market data based on August 9,

5 Company Highlights Modern & Diverse Tanker Fleet Cash Flow Visibility 36-vessel fleet 8 VLCC, 8 LR1, 18 MR2 and 2 Chemical Tankers Average age of 6.5 years 94.0% of total available days fixed in 2017 = $ million (1) 67.9% of H available days fixed on base rate or/and profit sharing 20.3% of H available days fixed on floating rates 28.5% of available days fixed in 2018 = $41.7+ million (2) Diverse group of first-class charterers (Shell, BP, Navig8, Vitol) Low OpEx Operating expenses fixed through mid-2018 Capturing Market Upside Risk Management Sponsor of MLP Additional Avenue of Growth Seasoned Management Team Strong Track Record Access to Capital $7.6 million from profit sharing in % of fixed days in 2017 have profit sharing (3) Chartering strategy balances credit risk and market opportunity Stability of cash flow through long term contracts Navios Maritime Midstream Partners L.P. (NAP) 59.0% ownership interest (4) NAP has purchase options for three VLCCs expiring in Q NNA backstopped three VLCCs for average daily rate of $37,142 for two years Strategic relationships with banks, shipyards and other key industry players Average industry experience of 20+ years per person NNA has raised about $3.4 billion in debt and equity since 2010 (1) 20.3% of available days fixed on floating rate without floor are not included in contracted revenue (2) 6.6% of available days fixed on floating rate without floor are not included in contracted revenue (3) Includes remaining 168 VLCC days fixed on floor + index rate (4) As per issuances under the NAP Continuous Offering Program as of August 9,

6 Key Developments EBITDA $64.5 million H Adjusted EBITDA $27.1 million Q Adjusted EBITDA Chartering strategy ensures stability in a low-rate environment H rates VLCC LR1 product tankers MR2 product tankers Clarksons average $22,374 $7,696 $10,294 NNA $33,533 $14,593 $14,362 Average charter rate for H for NNA was 51% higher than market average (1) H NNA generated ~ $39.1 million revenue above market average (1) 67.9% of H available days fixed on base rate or base rate and profit sharing 98.0% of Q available days fixed; 22% fixed on floating rates Vessels opening in seasonally strong Q4 Breakeven Analysis 2017E Total fixed revenue 194,501,859 Dividends from subsidiary 21,297,784 Total cost (228,832,491) Excess cost over cash (13,032,848) Open + days contracted on floating rate 2,126 Breakeven (6,130) Remaining 6M Open + days on floating rate Product and chemical tankers 1,160 VLCCs (1) 966 Total 2,126 (1) Based on Clarksons averages, excluding chemical tankers 6

7 Chartering Strategy Ensures Stable Cash Flow Long-term charters ensure stable cash flow in a downward market environment Average NNA charter rate for H was 51% higher than market average (1) 42% higher in Q % higher in Q Based on LTM performance NNA generated $69.6 million more revenue than market average (1) Q Performance VLCC LR1 Product Tankers MR2 Product Tankers $40,000 $30,000 $20,000 $10,000 $18,229 63% $29,785 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $6, % $14,339 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $9,608 46% $14,026 $0 Clarksons average Navios $2,000 $0 Clarksons average Navios $2,000 $0 Clarksons average Navios (1) Based on Clarksons averages, excluding chemical tankers 7

8 Chartering Strategy Managing Risk and Reward 88.2% of H available days fixed 67.9 % fixed on base rate / base rate + profit sharing 20.3% fixed on floating rates 28.5% of available days fixed in 2018 Chartering strategy balance market opportunity and long-term employment Matching income statement to balance sheet with stable cash flows Capture market improvement through profit sharing and days fixed on floating rates 34.9% 33.0% H ,624 days 20.3% 11.8% Fixed rate days Fixed days with profit sharing (1) Fixed days on floating rate Open days VLCC Product and chemical tankers 1,971 2, Total days 2,309 2,189 1, (1) Includes 168 VLCC days in 2017 fixed on floating rate with floor 8

9 Liquidity Position (in million USD) June 30, 2017 Cash (1) 56.8 Debt (2) 1,084.7 Shareholders' Equity Capitalization 1,583.0 Net Debt / Capitalization 64.9% No significant debt maturities until 2021 (million USD) (1) Includes restricted cash of $5.2 million (2) Net of deferred finance costs 9

10 Cash Flow Cushion from Low Breakeven Contracted Revenue (1) (Average Daily Rate) Fully Loaded Cost $17, % Fixed $17,415 $3,211 $5,754 $917 $7, E 2017 E Opex (incl. dry docking) General & Administrative Expenses Interest Expense Capital Repayments Total Available Days of Fleet: 13,140 for E Total fixed revenue 194,501,859 Dividends from subsidiary 21,297,784 Total cost (228,832,491) Excess cost over cash (13,032,848) Open + days contracted on floating rate 2,126 Breakeven (6,130) Breakeven includes operating expenses as per Management Agreement inclusive of dry docking estimated expenses, general and administrative expenses, interest expense and capital repayment (1) Excludes revenue from 1,342 days fixed on floating rate for 2017 and the respective available days. Includes only the floor rate for 168 VLCC days in 2017 fixed on floating rates with floor 10

11 Fleet Update 11

12 Recent Fleet Developments Bougainville, MR2 product tanker chartered out for two years plus two years Charter rate = $14,138 net per day plus profit sharing first year ; $14,420 net per day plus profit sharing second year Charter rate = $14,708 net per day plus profit sharing first optional year ; $15,002 net per day plus profit sharing second optional year Base expected aggregate EBITDA = $5.1 million (1) Nave Titan, MR2 product tanker chartered out for one plus one year Charter rate = $11,850 net per day plus profit sharing; optional period $13,331 net per day plus profit sharing Base expected annual EBITDA = $1.7 million (1) Nave Ariadne, LR1 product tanker chartered out for minimum six months Charter rate based on pool earnings Nave Andromeda, LR1 product tanker took over Nave Ariadne s contract Remaining duration 11 months Charter rate = $17,775 net per day plus profit sharing Base expected EBITDA = $3.0 million (1) (1) Assuming operating costs and 360 revenue days per year as per management agreement 12

13 Large, Modern and Diverse Tanker Fleet 36 Vessels (3.9 million dwt) 8 Crude Tankers 26 Product Tankers 2 Chemical Tankers Vessel Sizes in NNA Fleet VLCC tankers (280, ,000 dwt) 8 LR1 product tankers (60,000 85,000 dwt) 18 MR2 product tankers (47,000 52,000 dwt) Chemical tankers (25,000 dwt) Commodities Transported Crude Oil, no heat fuel oils Refined petroleum products and blending stocks (diesel, naphtha, gasoline, gasoil, jet fuel, fuel oils) Liquid bulk chemicals (Organic/inorganic chemicals, vegetable oils and animal fats) Key Trades Primarily long-haul routes AG to Japan / China AG to US Gulf West Africa to South East Asia and China Atlantic basin; Europe to/from US US Gulf to Central and South Americas Europe to West Africa Middle East and India to Atlantic basin and Far East Intra Far East and South East Asia including Australasia Middle East major export zone Far East and S. East Asia major import zone US/Europe and Far East 13

14 Staggered Charter Expirations Nave Equator (MR2) Nave Equinox (MR2) Nave Pulsar (MR2) Nave Dorado (MR2) Nave Aquila (MR2) Nave Atria (MR2) Nave Bellatrix (MR2) Nave Orion (MR2) Nave Titan (MR2) Nave Capella (MR2) Nave Alderamin (MR2) Bougainville (MR2) Nave Jupiter (MR2) Nave Luminosity (MR2) Nave Velocity (MR2) Nave Pyxis (MR2) Nave Sextans (MR2) Nave Orbit (MR2) Nave Polaris (Chem) Nave Cosmos (Chem) Nave Cielo (LR1) Nave Ariadne (LR1) Nave Cassiopeia (LR1) Nave Cetus (LR1) Nave Rigel (LR1) Nave Atropos (LR1) Nave Andromeda (LR1) Nave Estella (LR1) Nave Photon (VLCC) Nave Synergy (VLCC) Nave Buena Suerte (VLCC) Nave Galactic (VLCC) Nave Neutrino (VLCC) Nave Electron (VLCC) Nave Quasar (VLCC) Nave Spherical (VLCC) $17,000 $11,603 $11,974 / $12,344 last nine months $12,245 $12,344 $11,850+ P/S $12,838 $12,675 $11,850+ P/S $13,825 $16,296 + P/S $12,675 $14,138 +PS / $14,420 second year $11,850 + P/S $11,850 + P/S $11,850 + P/S $16,294 $16,294 $17,750 Floating rate Floating rate $17,775 + P/S Floating rate Floating rate $18,022 + P/S $18,022 + P/S Floating rate $17,775 + P/S $13,260 $40,488 Floating rate Floating rate with $19,750 floor Floating rate with $27,156 floor $37,520 Floating rate Floating rate $41,

15 ~ 17% Lower Operating Costs than Peers in 2016 Navios Maritime Holdings Inc. ( NM ) has created significant economies of scale NM shares these efficiencies with NNA by providing technical & commercial management + administrative services NNA operating cost (opex and G&A expenses) for 2016 is 17% lower than the average of listed peers* 2016 Peer* Survey operating cost per day per vessel $12,000 $10,000 $8,000 $9,996 $8,333 $6,000 $4,000 Peers Average* NNA 2016 NNA estimated savings = $22.8 million ($1,663 p/d/p vessel x 13,792 calendar days) $88.3 Million of Estimated Operating Cost Savings in (1) (1) Includes 2015 estimated savings of $33.2 million ($2,416 p/d/p vessel x 13,877 calendar days) and 2014 estimated savings of $32.3 million ($2,440 p/d/p vessel x 13,344 calendar days) (*) Peer group includes: DHT, EURN, GNRT, NAT, STNG, TNK, TNP and TORM Operating cost = (1) vessel operating expense (including technical management and related services) + (2) general and administrative expense + (3) as applicable, fees and commissions related to the affiliate management services that are not otherwise included such as 0.75% % commissions on vessel gross revenue or flat fees when vessels are chartered to parties other than related pools, 1% commission of gross purchase/sale price (capitalized as part of the carrying value of the vessel), supervisory fees on vessel construction (capitalized under construction costs), 1.25% commission on freight, hires and demurrages as chartering services, special awards for capital raising (deducted as additional paid in capital). Operating cost per day is based on calendar days of owned vessels for the vessel operating expenses and total days (including charter in vessels) for general and administrative expenses. Analysis for 2014, 2015 and 2016 is based on the 2015 and F filings of the peer companies, recent filings, annual reports and press releases. 15

16 Navios Maritime Midstream Partners

17 Overview of Navios Midstream Partners 100% Membership Interest Navios Maritime Acquisition NYSE: NNA Common Unitholders Navios Maritime Midstream Partners GP LLC (General Partner) 57.0% (1) Limited Partner Interest 41.0% (1) Limited Partner Interest 2.0% General Partner Interest Incentive Distribution Rights Navios Maritime Midstream Partners L.P. (NYSE: NAP) 100% Membership Interest Navios Maritime Midstream Operating LLC 100% 100% 100% 100% 100% Shinyo Ocean Shinyo Kannika Shinyo Saowalak Shinyo Kieran Nave Celeste 100% C. Dream (1) Based on COP issuances as of August 9,

18 Navios Midstream Partners Highlights Visibility through Long- Term Charters with Strong Counterparties Pipeline & Cash Flow Growth Conservative Credit Ratios and Strong Asset Coverage Navios Group Provides Strategic Relationships and Scale & Seasoned Management Team Healthy Tanker Market Fundamentals $ million in long-term contracted revenue with top-tier companies 100% fixed through 2018 (1) 3.8 years remaining average charter period (1) Upside potential through profit sharing ~ $4.9 million in 2016 NAP has three purchase options (expiring in November 2018) for VLCCs. Right to acquire from Navios Group any crude, product, LPG or chemical tanker with five+ year charter Actively surveying market for third party acquisitions Net Debt to Book Capitalization = 32.1% (Q2 2017) Navios Group has proven market access to debt and equity capital markets Navios Group has strategic relationships with customers, shipyards, banks and other key industry players Economies of scale provide operating expenses in line with industry average, fixed until December 2018 Management team has average industry experience of 20+ years per person Average TD3: Q = $31,093, Q = $22,260 VLCC rates continue to be volatile Global seaborne crude trade is expected to expand 1.8% in 2017 Scraping 2017YTD (0.9M DWT) has exceeded 2016 figures (0.6M DWT) Charterers prefer to deal with large, safe and reliable owners (1) Includes backstop from NNA 18

19 Product Market Overview 19

20 MBPD Refinery Capacity Shifting to Asia and Middle East According to the IEA, refinery capacity is expected to increase by 10.3 million barrels per day (MBPD) for the period ; About 74% of that capacity will be added in the broader Asia and Middle East regions. For the same period the IEA expects OECD capacity to increase by about 0.5 MBPD with new US and European capacity increasing (0.3 MBPD each) while OECD Asia/Oceania continues to close capacity (loss of 0.1 MBPD). OECD Americas refining is expected to increase by about 0.3 MBPD; almost all of the additions are in the US New low-cost Asian and Middle Eastern capacity is still forcing closure of old high-cost OECD capacity, structurally favoring more long-haul products trade. Refining Capacity Additions ( ) 2016 Global Oil Consumption OECD Americas China Other Asia Middle East Latin America Non-OECD Europe OECD Europe OECD Asia Oceania FSU Africa Other OECD 3% LatAm 4% Brazil 3% FSU 5% Canada 2% Other Non- OECD 13% Other Asia 13% India 4% US 20% China 12% Japan 4% Europe 15% -1.0 Source: IEA MRS March 2017 Source: IEA OMR January

21 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Million Tons Million Tons/Mo Rising Product Exports from Middle East and China Refineries opened or expanded in Saudi Arabia and China have driven export volumes higher Saudi Arabia product exports were up by 26% or 0.3 MBPD FY in 2016 but are down 5% May YTD due in part to lower crude production Chinese exports in 2016 totaled 48.2 million tons (1.0 MBPD) up 34% from 2015 and are up again 13% May YTD Chinese diesel exports were up 115% in 2016 to 15.4 million tons or 0.3 MBPD and up again 21% May YTD Saudi Arabian Product Exports Chinese Product Exports Gasoline Naphtha Kerosene Gas/Diesel Oil Fuel Oil Source: Clarksons, JODI, PPAC (Excluding LPG, Bitumen, Lube Oils) Motor and aviation gasoline Kerosenes Gas/diesel oil Fuel oil 21

22 MBPD MPBD MBPD US Shifting Role in the Energy Marketplace Average US domestic crude oil production has increased by 3.9 MBPD since end 2008 to 9.2 MBPD in May 2017 Product exports have increased with crude production US Crude production increases along with refinery expansions in US Gulf have lead to product exports from the US rising by 447% since beginning Majority of exports went to Latin America/Caribs US has become a net exporter of Petroleum Products Exports surpassed Imports by 160 MBarrels in 2011, 390 MB in 2012, 496MB in 2013, 704 MB in 2014, 798 MB in 2015, 910 MB in 2016, 444MB through May 2017 US Crude Production increased by 3.9 MBPD 09 - May 17 US Imports / Exports of Petroleum Products 00 - May 17 US Exports by Region 04 to May Latam Caribs Europe Other US Crude Oil Production May 17 US Product Imports Source: EIA 22

23 World Product Supply Imbalances = Arbitrage Possibilities Product transportation is driven by regional refinery output differences, regional needs and development Product Supply Balances 2016 and 2022 (thousand barrels per day) North America Europe FSU Middle East gasoil/kerosene gasoline/naphtha fuel oil Latin America Africa Asia Source: IEA MRS March

24 36% 42% 33% 52% 37% 27% 39% Product Tanker (1) Net Fleet, Age Profile + Historical Scrapping Deliveries Scrapping Net Fleet Growth Year Actual Projected % nondelivery Demolition Year Total Demolition As % of Fleet M 4.02% M 2.52% M 5.55% M 7.50% M 4.83% M 3.56% M 2.71% M 3.18% M 2.72% M 4.21% M 4.52% M 2.25% M 2.73% M 2.03% M 1.40% M 1.04% M 0.52% H M 0.48% Year DWT % of fleet Year DWT % of Fleet Fleet period end H M 7.0 M 36% H M 0.5% H M 2.5% M M 12.9 M 27% M 0.5% M 6.2% M M 13.9 M 37% M 1.0% M 5.4% M M 9.8 M 33% M 1.4% M 3.5% M M 8.3 M 36% M 2.0% M 2.1% M M 10.1 M 42% M 2.7% M 1.9% M M 14.4 M 52% M 2.3% M 3.4% M M 18.0 M 39% M 4.5% M 5.0% M Unless noted, all data in DWT; Source: Clarksons July 2017 (1) Product tankers defined as all coated tankers above 25k dwt plus uncoated 25-85k dwt tankers including IMO 2/3 with avg tank size > 3k cbm, excluding stainless steel and specialized tankers (2) Total Orderbook as of beginning July 2017 = 14.9 million DWT or 10% of the fleet World product tanker orderbook schedule (million dwt January 2017) (2) Actual Non-deliveries LR1 Orderbook LR2 Orderbook MR2 Orderbook estimated deliveries: 7.9 million DWT assuming 30% non delivery rate Assuming scrapping average of last 3 years: 1.3 million DWT MR1 Orderbook Expected 2017 Net fleet growth ~ 4.4% 24

25 Crude Market Overview 25

26 % change (year on year) Global Oil Demand: Growth Continues Global oil demand is driven by GDP The IMF projects global GDP growth of 3.5% for 2017 and 3.6% for 2018 Global oil demand rose by 1.6% (1.6 mb/d) in The IEA projected 2017 demand to increase by 1.5% or 1.4 mb/d IEA projects 1.4% growth in oil demand in 2018 or 1.4 mb/d, with 2H18 demand averaging over 100 mb/d Non-OECD economies account for all the forecast oil demand growth in 2018 and 94% of the anticipated 2017 increase, with China and India driving the expansion. Global Oil Demand ( ) (mm b/d) 37 Year Global Oil Demand and GDP Growth Jan-17 estimates Jul-17 estimates World GDP (IMF) Oil Demand (IEA) E 2018E Source: International Energy Agency July, IMF July

27 Worldwide Supply / Demand to 2035 Worldwide global liquids demand will increase by 15 MBPD between 2015 and 2035 (BP) Increased demand by 2035 will come from emerging markets, with China and India accounting for about half OECD consumption will decline by about 8 MBPD by 2035 Majority (9 MBPD) of supply increases will come from OPEC sources Global oil trade will continue shift eastward to non-oecd Asia Source: BP 2017 Energy Outlook 27

28 Billion Ton Miles Asia is the Dominant User of VLCC Vessels Asia VLCC ton-mile development Oil supply volume to China increased from AG, West Africa, South America and Caribs 2001 to 2016 Tons shipped from WAfr + S America requires more ships due to the longer trade distance 1,400 1,200 1, Miles moved per ton transported to China (1) : Arabian Gulf West Africa S America 5,500 t m 9,650 t m 11,500 t m WAF+S America AG 100% 90% 0.9% 1.5% 0.3% 0.4% 0.4% 8% 8% 8% 9% 6% Spot VLCC fixture development (2) Long haul trade drives ton mile increase 80% 70% 60% 50% 40% 30% 20% 10% 0% 24% 26% 31% 67% 65% 33% 39% 61% 57% 55% YTD 2017 Source: Drewry, IEA MTOM Report Feb 2015, Clarksons (1) Average ton miles based on 2016 tons transported to China. (2) East / West based on whether discharge port is East or West of Suez *YTD: July 21, 2017 West - West East - West West - East East - East West East fixtures as a proportion of total spot fixtures increased by 8% in 2016 compared to 2015 West East fixtures accounted for 33% of total spot fixtures in 2016 from 24% in YTD comparison West - East fixtures have increased 45% compared to same period last year East West fixtures have decreased 14% compared to the same period last year 28

29 Barrels per person per year Growing Chinese Consumption Leads to Significant Increase in VLCC Fleet Chinese Crude Oil Imports ( ) Energy per Capita by Region as a Proportion of the US % CAGR Jan 09 to Jul 17 mbpd US Brazil 6 20 W Europe China India Japan South Korea Current Chinese per capita oil consumption is 3.2 barrels per year Chinese crude imports reached a record 9.2 MBPD in March 2017 up from 2016 average of 7.6 MBPD Per Capita Ratios: US/China 6.7x Europe/China 3.1x World/China 1.5x China consumption goes to: Additional mbpd Additional VLCC (1) US per capita usage ,232 Europe per capita usage ,176 World per capita usage (1) Assuming 90 days VLCC roundtrip and all additional crude is imported by sea Source: Drewry, Clarksons, US Census, BP Statistical Review 2016, BP Energy Outlook 2017, Citibank. 29

30 Number of VLCCs VLCC Orderbook versus Age Profile Confirmed VLCCs on order are less than the number of ships needed to replace existing VLCCs of 17 years of age or older Orderbook non-deliveries have averaged 35% since Orderbook OB OB 2018 OB Fleet years 20+ years Total of 168 vessels of 15+ years old Note: Orderbook as of 8/8/17 Source: Clarksons 30

31 25% 31% 47% 33% 36% 40% 34% VLCC Net Fleet, Age Profile + Historical Scrapping Year Actual Projected Deliveries Scrapping Net Fleet Growth % Non- Delivery Year DWT % of Fleet Year DWT % of Fleet Fleet Period End H M 11.1 M 21% YTD 0.9 M 0.4% YTD (1) 9.1 M 4.2% M M 22.3 M 36% M 0.3% 2016 (2) 14.7 M 7.4% M M 9.1 M 31% M 0.6% M 3.1% M M 10.2 M 25% M 2.2% M 1.8% M M 17.8 M 47% M 3.5% M 1.6% M M 23.0 M 33% M 2.7% M 6.0% M M 29.1 M 34% M 4.2% M 7.4% M M 27.8 M 40% M 7.7% M 2.6% M Demolition Year Total Demolition % of Fleet M 6.20% M 9.18% M 9.48% M 8.71% M 2.24% M 2.01% M 1.05% M 2.45% M 6.45% M 4.52% M 7.71% M 4.20% M 2.70% M 3.47% M 2.18% M 0.59% M 0.29% 2017 Thru 7/ M 0.42% Source: Clarksons; Unless noted, all data in DWT, YTD through 7/26/ % 1% -4% Non-Deliveries Inflate VLCC Orderbook (3) Actual Non-deliveries VLCC Net Fleet Growth Jan 2016 Orderbook Jan 2017 Orderbook 4.9%4.6% (1) Net Fleet Growth YTD: 10.0M DWT delivered 0.9M DWT scrapped (both #s through 7/26/17) (2) Includes 2 TMT VLOCs reclassed as VLCCs (3) Total Orderbook as of 7/26/17 = 28.4 million DWT 31

32 Q2 and H Financial Results

33 Second Quarter and First Half 2017 Earnings Highlights ($ million except per share data) Three month period ended June 30, 2017 Three month period ended June 30, 2016 YoY (%) Six month period ended June 30, 2017 Six month period ended June 30, 2016 YoY (%) Revenue (21.5%) (20.6%) Adjusted EBITDA 27.1 (1) 45.5 (2) (40.4%) 64.5 (1) (2) (36.3%) Net Income (64.4) 12.2 N/A (58.8) 36.0 N/A Adjusted Net Income (4.6) (1) 12.4 (2) N/A 1.0 (1) 34.4 (2) (99.1%) Earnings/(loss) per share (0.41) 0.08 N/A (0.37) 0.23 N/A Adjusted Earnings/(loss) per Share (0.03) (1) 0.08 (2) N/A 0.01 (1) 0.22 (2) (95.5%) EBITDA represents net (loss)/income before interest and finance costs, before depreciation and amortization and before income taxes. Adjusted EBITDA in this document represents EBITDA before stock-based compensation, gain on sale of vessel and impairment loss. We use Adjusted EBITDA as liquidity measure and reconcile Adjusted EBITDA to net cash provided by/ (used in) operating activities, the most comparable U.S. GAAP liquidity measure. Adjusted EBITDA in this document is calculated as follows: net cash provided by/(used in) operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase/(decrease) in operating assets; (ii) net (increase)/decrease in operating liabilities; (iii) net interest cost; (iv) amortization of deferred finance cost and other related expenses; (v) equity in net earnings of affiliated companies, net of dividends received; (vi) payments for dry dock and special survey costs; and (vii) impairment charges. Navios Acquisition believes that Adjusted EBITDA is the basis upon which liquidity can be assessed and present useful information to investors regarding Navios Acquisition s ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Acquisition also believes that Adjusted EBITDA is used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA has limitations as analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Acquisition s results as reported under U.S. GAAP. Some of these limitations are: (i) Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. Adjusted EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, Adjusted EBITDA should not be considered as a principal indicator of Navios Acquisition s performance. Furthermore, our calculation of Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation. (1) EBITDA, Net income/(loss) and Earnings/(loss) per share for the three and six month period ended June 30, 2017 have been adjusted to exclude $59.1 million impairment loss in equity investment in Navios Midstream Partners. Net income/(loss) and Earnings/(loss) per share for the three and six month period ended June 30, 2017 have been further adjusted to exclude $0.7 million write off of deferred financing cost (2) EBITDA, Net income and Earnings per share for the three month period ended June 30, 2016 have been adjusted to exclude $0.3 million of share-based compensation. EBITDA for the six month period ended June 30, 2016 has been adjusted to exclude $2.3 million gain on sale of vessels and $0.5 million of share-based compensation. Net income and Earnings per share have been further adjusted to exclude $0.2 million write off of deferred financing cost 33

34 Strong Balance Sheet Selected Balance Sheet Data (in million USD) June 30, 2017 December 31, 2016 Cash & cash equivalents (1) Vessels, net 1, ,306.9 Investments in affiliates Due from related parties Total Assets 1, ,703.6 Total debt (2) 1, ,095.9 Stockholders Equity Total Liabilities and Shareholders Equity 1, ,703.6 Book Capitalization 1, ,668.9 Net Debt / Book Capitalization 64.9% 62.3% (1) Including restricted cash (2) Net of deferred finance costs and premium 34

35 Returning Capital to Shareholders Dividend Policy Q Distribution: $0.05 per share Record date: September 7, 2017 Payment date: September 14, 2017 Consistently paid dividend since

36 Appendix 36

37 Existing Fleet VLCCs Vessel Type DWT Year Built Net Charter Rate ($/day) Expiration Date Profit Share Nave Photon VLCC 297, ,488 Dec-17 Nave Spherical VLCC 297, ,475 Nov-17 Nave Synergy VLCC 299, Floating rate (1) Feb-18 Nave Galactic VLCC 297, Floating rate with floor $29,625 / $27,156 last 9 months Sep-17 Nave Quasar VLCC 297, Floating rate (1) Mar-18 Nave Buena Suerte (2) VLCC 297, Floating rate with $19,750 floor Aug-17 Nave Neutrino (2) VLCC 298, ,520 Sep-17 Nave Electron (2) VLCC 305, Floating rate (1) Dec -17 TOTAL 2,390,056 (1) Charterer s and owner s option to terminate after 18 th month (2) Navios Acquisition has extended an option to Navios Maritime Midstream Partners, exercisable until November 2018, to purchase the three VLCCs at fair market value 37

38 Existing Fleet Chemical and MR2 Product Tankers Vessel Type DWT Year Built Net Charter Rate ($/day) Expiration Date Profit Share / premium Nave Velocity MR2 Product Tanker 49, ,850 (1) Jul18 50%-50% Nave Sextans MR2 Product Tanker 49, ,294 Jan-18 None Nave Pyxis MR2 Product Tanker 49, ,294 Feb-18 None Nave Luminosity MR2 Product Tanker 49, ,072/11,850 (1) Sep-17/Sep-18 50%-50% Nave Jupiter MR2 Product Tanker 49, ,850 (1) May-18 50%-50% Bougainville MR2 Product Tanker 50, ,296/14,138 (2) Sep-17/Sep % Nave Alderamin MR2 Product Tanker 49, ,675 (3) Feb-18 None Nave Capella MR2 Product Tanker 49, ,825 (4) Dec-17 None Nave Titan MR2 Product Tanker 49, ,850 (1) Jun-18 50%-50% Nave Orion MR2 Product Tanker 49, ,675 (5) Mar-18 None Nave Bellatrix MR2 Product Tanker 49, ,838 (6) Dec-17 None Nave Aquila MR2 Product Tanker 49, ,344 Nov-17 None Nave Atria MR2 Product Tanker 49, ,850 (1) Jul-18 50%-50% Nave Equator MR2 Product Tanker 50, ,000 Oct-17 None Nave Orbit MR2 Product Tanker 50, ,750 (7) Nov-17 None Nave Equinox MR2 Product Tanker 50, ,603 (8) Nov-17 Ice-transit premium Nave Pulsar MR2 Product Tanker 50, ,973/12,344 (9) Jan-18/Oct-18 50%-50% Nave Dorado MR2 Product Tanker 47, ,245 (10) Jan-18 None Nave Cosmos Chemical Tanker 25, Floating rate Nov-17 Nave Polaris Chemical Tanker 25, Floating rate Nov-17 TOTAL 951,723 (1) Charterer's option to extend the charter for one year at $13,331 net per day plus profit sharing (2) Rate increases to $14,420 for the second year of the contract. Rate can reach a maximum of $19,013 net per day in year one and $19,393 in year two calculated based on a formula. Charterer s option to extend the charter for two years at $14,708 net per day plus profit sharing first year and $15,002 net per day plus profit sharing second year (3) Charterer's option to extend the charter for one year at $13,650 net per day (4) Charterer's option to extend the charter for one year at $14,813 net per day (5) Charterer's option to extend the charter for one year at $13,894 net per day (6) Charterer's option to extend the charter for one year at $14,319 net per day (7) Charterer s option to extend for two years at $ 20,500 net per day (8) Charterer s option to extend for six months at $13,084 net per day. (9) Charterer's option to extend the charter for one year at $13,455 net per day (10) Charterer's option to extend the charter for six months at $13,529 net per day 38

39 Existing Fleet LR1 Product Tankers Vessel Type DWT Year Built Net Charter Rate ($/day) Expiration Date Profit Share Nave Atropos LR1 Product Tanker 74, Floating rate Oct-19 Nave Rigel LR1 Product Tanker 74, ,022 Aug-19 50%/50% Nave Cetus LR1 Product Tanker 74, ,022 April-19 50%/50% Nave Cassiopeia LR1 Product Tanker 74, Floating rate Feb-19 Nave Estella LR1 Product Tanker 75, ,260 (1) Mar-18 Nave Andromeda LR1 Product Tanker 75, ,775 May-18 50%/50% Nave Cielo LR1 Product Tanker 74, ,775 May-18 50%/50% Nave Ariadne LR1 Product Tanker 74, Floating rate Feb-18 TOTAL 598,002 (1) Charterer's option to extend the charter for one year at $14,625 net per day 39

40 40