Q Earnings Presentation February 7, 2018

Transcription

1 Q Earnings Presentation February 7, 2018

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 stock repurchases, future dividends, future 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: 5 Product Tankers, 12 Containers, 5 Panamax, 2 handymax Navios Maritime Containers Inc. (Oslo OTC :NMCI) 21 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) 39 vessels: 13 Capes, 16 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 FY 2017 Adjusted EBITDA (1) : $107.7 million Annual dividend: $0.08; 9.6% yield 59.0% $0.81 / common share Navios Maritime Midstream Partners L.P. NYSE: NAP - $ VLCCs FY 2017 EBITDA: $57.9 million Market value of NNA ownership: $122.7 million 2018 expected dividend to NNA: $21.3 million ($1.69 per share) $59.8 million in dividends distributed to NNA since 2015 All market data based on February 6, 2018 (1) Mainly adjusted to exclude $59.1 million impairment in equity investment in Navios Midstream Partners in Q

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 7.0 years 60.2% of total available days fixed in 2018 = $86.4+ million (1) 46.3% of 2018 available days fixed on base rate or/and profit sharing 13.9% of 2018 available days fixed on floating rates Diverse group of first-class charterers (Shell, Navig8, Vitol, etc) 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 2018 have profit sharing 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 (2) 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) 13.9% of available days fixed on floating rate without floor are not included in contracted revenue (2) As of February

6 Key Developments EBITDA $107.7 million 2017 Adjusted EBITDA (1) ; $20.0 million Q Adjusted EBITDA (1) Chartering strategy ensures stability in a low-rate environment Q rates VLCC LR1 product tankers MR2 product tankers Clarksons average $16,334 $8,093 $10,301 NNA $22,561 $14,441 $13,258 Average charter rate for 2017 for NNA was 53% higher than market average (2) FY 2017 NNA generated ~ $74.1 million revenue above market average (2) Returning Capital to Shareholders $25.0 million - stock repurchase program Shares trade below consensus NAV Two year program Tax efficient return to shareholders ~ $13.0 million - annualized dividend based on $0.02 per share quarterly distribution Credit facilities refinancing Advance discussions to refinance next 16 months maturities ($64.0 million) through leasing structure Rate = 3M Libor % Tenor = 6 years Repayment profile = 12 years (18 years age adjusted) (1) Please refer to slide 34 for adjustments in EBITDA (2) Based on Clarksons averages, excluding chemical tankers 6

7 Chartering Strategy Ensures Stable Cash Flow Average NNA charter rate for FY 2017 was 53% higher than market average (1) Based on 2017 performance NNA generated $74.1 million more revenue than market average (1) FY 2017 Performance VLCC LR1 Product Tankers MR2 Product Tankers $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 $17,794 Clarksons average $28,939 $12,000 $12,000 $10,213 63% $10,000 $8,247 75% $10,000 37% $8,000 $8,000 Navios $16,000 $14,000 $6,000 $4,000 $2,000 $0 Clarksons average $14,437 Navios $16,000 $14,000 $6,000 $4,000 $2,000 $0 Clarksons average $13,998 Navios (1) Based on Clarksons averages, excluding chemical tankers 7

8 Chartering Strategy Managing Risk and Reward 60.2% of 2018 available days fixed 46.3% fixed on base rate or base rate and profit sharing 13.9% fixed on floating rates 8.8% of 2019 available days fixed Chartering strategy balance market opportunity and long-term employment Capture market improvement through profit sharing and days fixed on floating rates ,140 days 21.9% 24.4% 13.9% 39.8% Fixed rate days Fixed days with Fixed days on profit sharing (1) floating rate Open days VLCC ,048 Product and chemical tankers 2,744 3,200 1,096 3,180 Total days 2,884 3,204 1,824 5,228 (1) Includes 4 VLCC days in 2018 fixed on floating rate with floor 8

9 Cash Flow Breakeven Contracted Revenue (Average Daily Rate) $14,184 Includes only 5% of available VLCC days 2018 E Contracted revenue includes revenue from 6,088 days in 2018 (46.3%) fixed on base rate and base rate plus profit sharing Total Available Days of Fleet: 13,140 for 2018 Fully Loaded Cost $17,206 $3,000 $5,562 $936 $7, E Capital Repayments Interest Expense G&A Expenses Opex (incl. dry docking amortization) (USD) 2018E Total fixed revenue 86,353,456 Expected dividends from subsidiary 21,303,807 Total cost (226,096,381) Excess cost over revenue (118,439,117) Open + days contracted on floating rate 7,052 Breakeven per pen + days contracted on floating rate (16,795) Total cost includes operating expenses as per Management Agreement inclusive of dry docking amortization, general and administrative expenses, interest expense and capital repayment 9

10 Expected Cash Flow Generation $75.1 million $9.1 million $16,795 $17,884 49% $26, Breakeven per open + days contracted on floating rate Current Rates 20 Year Average Rates Cash Flow Analysis 2018E (USD) Current Rates 20 Year Average Rates Total fixed revenue 86,353,456 86,353,456 Expected dividends from subsidiary 21,303,807 21,303,807 Total Cost (1) (226,096,381) (226,096,381) Excess cost over revenue (118,439,117) (118,439,117) Revenue from open + days contracted on floating rate 126,117, ,230,337 Expected free cash generation 9,051,754 75,065,915 Open + days contracted on floating rate 7,052 7,052 Breakeven per open + days contracted on floating rate (16,795) (16,795) Note: Current rate based on Clarksons Research SIN January year TC rates VLCCs $24,500 day, LR1 Product Tankers $13,125 for and MR2 Product Tankers / Chemical tankers $13,938 per day; 20 year average 1 year TC rates VLCCs $39,309, LR1 Product Tankers $20,639 (18 year average) and MR2 Product Tankers / Chemical tankers $16,890 per day. Cash flow generation assumes normal operational performance of current fleet and expected profit sharing based on the rate assumptions where applicable under the current charters. Rates shown in above tables are weighted to reflect vessel sizes for open days. (1) Total cost includes operating expenses as per Management Agreement inclusive of dry docking amortization, general and administrative expenses, interest expense and capital repayment 10

11 Liquidity Position (in million USD) December 31, 2017 (million USD) 800 Debt maturities Cash (1) Debt (2) 1, Shareholders' Equity Capitalization 1,527.8 Net Debt / Capitalization 64.1% Advance discussions to refinance $64.0 million of debt maturities in 2018 and 2019 and extend to 2024 through leasing structure No significant debt maturities until 2021 (1) Includes restricted cash of $5.3 million (2) Net of deferred finance costs 11

12 Fleet Update 12

13 Recent Fleet Developments Nave Neutrino, VLCC charter extended out until end of March 2018 Charter rate = $22,500 net per day until end of January / $34,500 net per day Expected annual EBITDA = $2.2 million (1) Nave Buena Suerte, VLCC charter extended until February 2018 Charter rate = $22,713 net per day Expected annual EBITDA = $0.6million (1) Nave Galactic and Nave Photon, VLCCs chartered out for minimum three months Charter rate based on pool earnings Nave Equinox, MR2 product tanker chartered out for one plus one year Charter rate = $13,578 net per day; optional period $14,813 net per day; rate increases by $1,876 when trading in ice Base expected annual EBITDA = $2.3 million (1) Nave Bellatrix, MR2 product tanker charter extended for one plus one year Charter rate = $13,331 net per day; optional period $14,566 net per day Expected annual EBITDA = $2.2 million (1) Nave Sextans and Nave Pyxis MR2 product tankers chartered out for one plus one year Charter rate = $13,250 net per day plus profit sharing; optional period $14,500 net per day plus profit sharing Base expected annual EBITDA = $2.2 million (1) Nave Capella MR2 product tanker chartered out for one plus one year Charter rate = $13,331 net per day; optional period $14,566 net per day Expected annual EBITDA = $2.2 million (1) Nave Dorado MR2 product tanker charter extended for one plus one year Charter rate = $13,331 net per day; optional period $14,813 net per day Expected annual EBITDA = $2.2 million (1) (1) Assuming operating costs and 360 revenue days per year as per management agreement 13

14 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 14

15 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) $13,000 $13,578 $11,974 + P/S / $12,344 + P/S last nine months $13,331 $13,331 $11,850+ P/S $13,331 $12,675 $11,850+ P/S $13,331 $12,675 $14,138 +PS / $14,420 + P/S second year $11,850 + P/S $11,850 + P/S $11,850 + P/S $13,250 +PS $13,250 +PS $13,500 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 Floating rate Floating rate $22,713 Floating rate $22,500 / 34,500 Floating rate Floating rate Floating rate

16 ~ 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 ~ $23.0 million ($1,663 p/d/p vessel x 13,792 calendar days) ~$89.0 Million of Estimated Operating Cost Savings in (1) (1) Includes 2015 estimated savings of $33.5 million ($2,416 p/d/p vessel x 13,877 calendar days) and 2014 estimated savings of $32.6 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. 16

17 Navios Maritime Midstream Partners

18 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 Based on COP issuances as of February 6,

19 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 Tanker Market Volatility ~$340 million in long-term contracted revenue with top-tier companies ~100% fixed through 2018 (1), 41% fixed for 2019 (1) 3.3 years remaining average charter period (1) Upside potential through profit sharing - $4.9 million in 2016, $0.6 million in 2017 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 = 35.3% (Q4 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 TD = $22,682, TD3 Q = $23,931 VLCC rates continue to be volatile Global seaborne crude trade is expected to grow by 2.8% in 2018 Scrapping (2) picked up in 2017, 4.2M DWT compared to 0.6M DWT for FY 2016 Charterers prefer to deal with large, safe and reliable owners (1) Includes backstop from NNA (2) Includes removals 19

20 Product Market Overview 20

21 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 ( ) 2017 Global Oil Consumption Other Asia China India Middle East Africa FSU Europe L. America / Caribs North America Other OECD 3% LatAm 4% Brazil 3% FSU 5% Canada 2% Other Non- OECD 13% Other Asia 13% India 5% US 20% China 13% Japan 4% Europe 15% Source: Clarksons, IEA Source: IEA OMR January

22 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/Mo 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 the next Saudi refinery expansion will be 400,000 barrels per day in 2019 Chinese exports in 2016 totaled 48.2 million tons (1.0 MBPD) up 34% from 2015 and up 7% November 2017 YTD Chinese diesel exports were up 115% in 2016 to 15.4 million tons or 0.4 MBPD and up 12% November YTD led by an all time record of 2.0 million tons of diesel exports in that month 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 22

23 MBPD MPBD MBPD US Shifting Role in the Energy Marketplace Average US domestic crude oil production has increased by 4.5 MBPD since end 2008 to 10.0 MBPD in November 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 469% 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, 902 MB in 2016, 1,005 MB through November 2017 US Crude Production increased by 4.5 MBPD 09 - Nov 17 US Imports / Exports of Petroleum Products 00 - Nov 17 US Exports by Region 04 to Nov Latam Caribs Europe Other Nov U.S. Field Production of Crude Oil 0 US Imports US Exports 0.0 Source: EIA 23

24 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

25 36% 42% 33% 29% 52% 37% 27% Product Tanker (1) Net Fleet, Age Profile + Scrapping Deliveries Scrapping Net Fleet Growth Year Actual Projected % nondelivery Demolition Year Total Demolition As % of Fleet M 3.56% M 2.80% M 3.19% M 2.72% M 4.21% M 4.52% M 2.25% M 2.73% M 2.03% M 1.35% M 1.04% M 0.53% M 1.37% Year DWT % of fleet Year DWT % of Fleet Fleet period end M 11.4 M 29% M 1.4% M 3.9% 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 3.6% M M 8.3 M 36% M 2.0% M 2.2% M M 10.1 M 42% M 2.7% M 1.9% M M 14.4 M 52% M 2.3% M 3.3% M M 18.0 M 39% M 4.5% M 5.0% M Unless noted, all data in DWT; Source: Clarksons Jan 2018 (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 Jan 2018 = 15.4 million DWT or 10% of the fleet World product tanker orderbook schedule (million dwt January 2018) (2) Actual LR1 Orderbook Non-deliveries LR2 Orderbook MR2 Orderbook estimated deliveries: 5.3 million DWT assuming 25% non delivery rate Assuming scrapping average of last 5 years: 1.7 million DWT MR1 Orderbook Expected 2018 Net fleet growth ~ 2.2% 25

26 Crude Market Overview 26

27 % change (year on year) Global Oil Demand: Growth Continues Global oil demand is driven by GDP In January, the IMF increased global GDP growth to 3.9% for 2018 and 3.9% for 2019, lead by expansions in advanced economies and China Global oil demand rose by 1.4% (1.3 mb/d) in In 2017 demand increased by 1.6% or 1.6 mb/d. IEA projects 1.3% growth in oil demand in 2018 or 1.3 mb/d, with 4Q18 demand averaging about 100 mb/d Non-OECD economies account for 94% of the forecast oil demand growth in 2018 and 74% of the anticipated 2017 increase, with China and India driving the expansion. OECD oil demand has been stronger than expected in 2017, particularly in Europe and the US Global Oil Demand ( ) (mm b/d) 37 Year Global Oil Demand and GDP Growth 100 Jan-18 estimates World GDP (IMF) Oil Demand (IEA) P 2018E -3-4 Source: International Energy Agency Jan 2018, IMF Jan

28 Ton Mile Development Absorbs Increasing VLCC Fleet China s incremental imports from Atlantic in 2017 translated to 31 additional VLCCs 1 Chinese crude oil imports increased YoY by about 0.9 MBPD (305 mb) in Jan-Nov 2017 Oil supply volume significantly increased from West Africa, South America, Caribs, Europe and Med. US exports to China reached the 143 KBPD (50 mb) in Jan-Nov 2017 from almost zero in 2015 Tons shipped from these export areas requires more ships due to the longer trade distance Miles moved per ton transported to China (2) : Arabian Gulf West Africa S America 5,500 t m 9,650 t m 11,500 t m Imports from Arabian Gulf Imports from West Africa Imports from South America KBPD KBPD KBPD 3,643 3,652 1, ,103 1, % 24% 13% Source: GTIS (1) Assuming 90 day VLCC round trip (2) Average miles to China from each loading area 28

29 Increasing Chinese Consumption Still Below World Average Chinese Crude Oil Imports ( ) 11% CAGR Jan 09 to Dec 17 mbpd mbpd China Now World s Largest Crude Importer 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: Clarksons, US Census, BP Statistical Review 2016, BP Energy Outlook 2017, Citibank, EIA, Petroleum Supply Monthly and Weekly, Petroleum Status Report, China General Admin of Customs through Bloomberg 29

30 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 30

31 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 30% since Scrapping accelerates YTD VLCCs delivered VLCCs scrapped Orderbook 35 Fleet 10 VLCCs are being circulated for potential scrapping OB OB 2019 OB years 20+ years Total of 194 vessels of 15+ years old Note: Orderbook as of January 1 st, 2018 YTD as of 01/30/18 Source: Clarksons 31

32 25% 31% 47% 33% 36% 11% 40% 34% VLCC Net Fleet, Age Profile + Historical Scrapping Year Actual Projected Deliveries Removals Net Fleet Growth % Non- Delivery Year DWT % of Fleet Year DWT % of Fleet Fleet Period End M 17.1 M 11% M 2.0% M 5.3% M M 22.3 M 36% M 0.3% 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 Removals Year Total Demolition % of Fleet 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% M 1.95% 2018 Thru 1/ M 0.40% Source: Clarksons; Unless noted, all data in DWT VLCC fleet as of 1/30/18: M DWT on 4 vsl delivered less 3 scrapped (736 vsls) 2017 fleet includes one VLCC added after conversion (1) Orderbook 1/30/18: 28.7 M DWT (92 vsls) % 1% -4% Non-Deliveries Inflate VLCC Orderbook (1) Non-deliveries Actual Jan 2018 Orderbook VLCC Net Fleet Growth % 3.3% 32

33 Q4 and FY 2017 Financial Results

34 Fourth Quarter and FY 2017 Earnings Highlights ($ million except per share data) Three month period ended December 31, 2017 Three month period ended December 31, 2016 YoY (%) Year ended December 31, 2017 Year ended December 31, 2016 Revenue (25.2%) (21.7%) EBITDA (60.1%) (75.0%) Adjusted EBITDA 20.0 (1) 40.1 (3) (50.2%) (2) (4) (41.2%) Net Income / (loss) (12.0) 18.1 N/A (78.9) 62.9 N/A Adjusted Net Income / (loss) (12.3) (1) 8.6 (3) N/A (19.4) (2) 52.1 (4) N/A Earnings/(loss) per share (0.08) 0.11 N/A (0.50) 0.40 N/A Adjusted Earnings/(loss) per Share (0.08) (1) 0.05 (3) N/A (0.12) (2) 0.33 (4) N/A 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 Loss and Loss per share for the three month period ended December 31, 2017 has been adjusted to exclude $0.1 million of stock-based compensation. Net Loss and Loss per share for the year ended December 31, 2017 have been further adjusted to exclude $0.3 million write off of deferred finance income. (2) EBITDA, Net Loss and Loss per share for the year ended December 31, 2017 has been adjusted to exclude $59.1 million impairment loss in equity investment in Navios Midstream Partners and $0.1 million of stock-based compensation. Net Loss and Loss per share for the year ended December 31, 2017 have been further adjusted to exclude $0.4 million write off of deferred finance costs. (3) EBITDA, Net Income and Earnings per share for the three month period ended December 31, 2016 has been adjusted to exclude $9.5 million gain on sale of vessels, $0.1 million of stockbased compensation and a $0.4 million gain on debt repayment. Net Income and Earnings per share have been further adjusted to exclude $0.2 million write off of deferred financing cost. (4) EBITDA, Net Income and Earnings per share for the year ended December 31, 2016 has been adjusted to exclude $11.7 million gain on sale of vessels, a $0.4 million gain on debt repayment and $0.9 million of stock-based compensation. Net Income and Earnings per share have been further adjusted to exclude $0.5 million write off of deferred finance costs. YoY (%) 34

35 Balance Sheet Highlights Selected Balance Sheet Data (in million USD) December 31, 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 64.1% 62.3% (1) Including restricted cash (2) Net of deferred finance costs and premium 35

36 Returning Capital to Shareholders Stock repurchase program $25.0 million Shares trade below consensus NAV Two year program Tax efficient return to shareholders Dividend Policy Q Distribution: $0.02 per share Record date: March 22, 2018 Payment date: March 27,

37 Appendix 37

38 Existing Fleet VLCCs Vessel Type DWT Year Built Net Charter Rate ($/day) Expiration Date Profit Share Nave Photon VLCC 297, Floating rate (1) May-18 Nave Spherical VLCC 297, Floating rate (1) May-18 Nave Synergy VLCC 299, Floating rate (1) May-18 Nave Galactic VLCC 297, Floating rate (1) May-18 Nave Quasar VLCC 297, Floating rate (1) Mar-18 Nave Buena Suerte (2) VLCC 297, $22,713 Feb-18 Nave Neutrino (2) VLCC 298, $22,500 / 34,500 Feb-18 / Mar-18 Nave Electron (2) VLCC 305, Floating rate (1) May-18 TOTAL 2,390,056 (1) Evergreen upon notice of redelivery (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 38

39 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) May-18 50%-50% Nave Sextans MR2 Product Tanker 49, ,250 (2) Feb-19 50%-50% Nave Pyxis MR2 Product Tanker 49, ,250 (2) Mar-19 50%-50% Nave Luminosity MR2 Product Tanker 49, ,850 (1) Sep-18 50%-50% Nave Jupiter MR2 Product Tanker 49, ,850 (1) May-18 50%-50% Bougainville MR2 Product Tanker 50, ,138 (3) Sep % Nave Alderamin MR2 Product Tanker 49, ,675 (4) Mar-18 None Nave Capella MR2 Product Tanker 49, ,331 (5) Jan-19 None Nave Titan MR2 Product Tanker 49, ,850 (1) Jun-18 50%-50% Nave Orion MR2 Product Tanker 49, ,675 (6) Mar-18 None Nave Bellatrix MR2 Product Tanker 49, ,331 (7) Dec-18 None Nave Aquila MR2 Product Tanker 49, ,331 (8) Nov-18 None Nave Atria MR2 Product Tanker 49, ,850 (1) Jul-18 50%-50% Nave Equator MR2 Product Tanker 50, ,000 (9) Oct-18 None Nave Orbit MR2 Product Tanker 50, ,500 (10) Nov-18 None Nave Equinox MR2 Product Tanker 50, ,578 (11) Jan-19 Ice-transit premium Nave Pulsar MR2 Product Tanker 50, ,973/12,344 (12) Feb-18/Nov-18 50%-50% Nave Dorado MR2 Product Tanker 47, ,331 (13) Jan-19 None Nave Cosmos Chemical Tanker 25, Floating rate May-18 Nave Polaris Chemical Tanker 25, Floating rate May-18 TOTAL 951,723 (1) Charterer's option to extend the charter for one year at $13,331 net per day plus profit sharing (2) Charterer's option to extend the charter for one year at $14,500 net per day (3) 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 (4) Charterer's option to extend the charter for one year at $13,650 net per day (5) Charterer's option to extend the charter for one year at $14,566 net per day (6) Charterer's option to extend the charter for one year at $13,894 net per day (7) Charterer's option to extend the charter for one year at $14,566 net per day (8) Charterer's option to extend the charter for one year at $14,566 net per day (9) Charterer's option to extend the charter for one year at $14,250 net per day (10) Charterer's option to extend the charter for one year at $14,750 net per day (11) Charterer s option to extend for one year at $14,813 net per day. Rate increases by $1,876 when trading in ice (12) Charterer's option to extend the charter for one year at $13,455 net per day (13) Charterer's option to extend the charter for six months at $14,813 net per day 39

40 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 May-18 TOTAL 598,002 (1) Charterer's option to extend the charter for one year at $14,625 net per day 40

41 41