6th Annual Shipping Conference

Transcription

1 6th Annual Shipping Conference September 9, 2009

2 Disclosures Statements in this presentation which are not statements of historical fact are forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, the Company at the time this presentation was made. Although the Company believes that the assumptions underlying such statements are reasonable, it can give no assurance that they will be attained. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information or future events, unless it is required to do so under the securities laws. The Company makes no prediction or statement about the performance of its common units. EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. 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 p in accordance with accounting principles p 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 determination of cash distribution. 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.

3 Agenda Company Overview Company Recent Developments Growth Strategy Fleet and Operations Overview Industry Overview Financial Results Quarterly Cash Distribution ib ti Summary Appendix 3

4 Company Overview

5 Navios Partners Ownership Structure 100% Membership Interest Navios Maritime Holdings Inc. NYSE: NM Common Unitholders (1) Navios GP L.L.C. (General Partner) 2.0% General Partner Interest Incentive Distribution Rights 44.7% Limited Partner Interest Navios Maritime Partners L.P. NYSE: NMM 53.3% Limited Partner Interest 100% Membership Interest Navios Maritime Operating L.L.C. 10 Drybulk Vessels 1 Capesize and 9 Panamax drybulk carriers (active fleet) (1) Refers to publicly traded common units and includes approx. 2.0% of common units purchased by a corporation owned by Angeliki Frangou 5

6 Conservative Business Posture Long Term Charter Coverage Weighted average remaining term of charter coverage approximately 4.4 years Staggered charter-out expirations which minimize charter renewal risk Strong Counterparties Strong creditworthy counterparties (Mitsui, Rio Tinto, Cargill, etc.) Insured Revenue Stream Charter-out contracts insured by AA+ rated EU governmental agency Steady Increase in Distributions Per Unit Q1 & Q $0.35 Q $0.385 (10% increase) Q $0.40 (4% increase) Q1 & Q $0.40 Operating Expense Visibility 5-year contract with Navios ShipManagement with costs fixed until November 2009 Young Fleet Fleet age of 6.4 years (1) vs. industry fleet age of 15.0 years (2) (1) Navios Maritime Partners fleet age weighted by DWT (2) Source: Clarksons as of August

7 Recent Developments: p Proactive approach to credit crisis

8 Proactive approach to credit crisis $36.1 Million Offering of Common Units Offering completed on May 8, million units issued at $10.32 per unit Successful, traditional overnight equity raise demonstrates market acceptance of NMM Net proceeds used to finance the acquisition of Navios Sagittarius Acquisition of Navios Sagittarius Cost: $34.6 million Vessel Specifications: Panamax Vessel ; 75, dwt ; 2006 built Long-term chartered in vessel with $25.0 million purchase option (de-escalating over time) Chartered-out at a net daily rate of $26,125 for 10 years (ending Nov 2018) Delivered to Navios Partners June 10, 2009 Annual EBITDA = $5.8 million No debt financing required Transaction improved age profile, charter coverage and balance sheet / leverage ratios Restructuring Navios Bonavis (formerly TBN I) purchase obligation Navios Partners relieved of $130.0 million obligation to purchase Navios Bonavis (2009-built Capesize; 180,000 DWT) Navios Partners received 12-month option to purchase vessel for $125.0 million Navios Holdings (1) was released from omnibus restrictions for two years and (2) received 1,000,000 subordinated units (unregistered securities which are ineligible for dividends for three years, when converted into common on a 1:1 basis) 8

9 Growth Strategy

10 Multiple Avenues of Distribution Growth: Since IPO 14.3% Distribution increase 36.4% Increase in operational fleet capacity Exercising Purchase Options Exercised the purchase option for Navios Fantastiks in Q Purchase options on Navios Sagittarius, Navios Prosperity and Navios Aldebaran in 2010, 2012 and 2013 Opportunities in the Dry Bulk S&P Market Sale and purchases of drybulk vessels Highly fragmented industry Vessel values have fallen significantly from their 2008 peak Additional Growth Through Navios Holdings Controlled Vessels Right to purchase certain vessels on 3+ year charters Navios Holdings has grown Group controlled fleet to 69 vessels Active IPO 626,100 DWT +36% 853,753 DWT (*) Includes owned and chartered-in tonnage. (*) 10 Sep 2009

11 Fleet and Operations Overview

12 Modern, High Quality Capesize and Panamax Fleet Purchase Vessel Type DWT Year Built Ownership Option Navios Fantastiks Capesize 180, % Navios Prosperity Panamax 82, Chartered-in Navios Alegria Panamax 76, % Navios Galaxy I Panamax 74, % Current Fleet Navios Felicity Panamax 73, % 10 Navios Libra II Panamax 70, % Navios Gemini S Panamax 68, % Navios Aldebaran Panamax 76, Chartered-in (1) (4) Navios Hope Panamax 75, % Navios Sagittarius (4) Panamax 75, Chartered-in Total dwt: 853,753 (1) Navios Aurora I was renamed Navios Hope as of February 2, 2009 (2) Navios Partners fleet age weighted by DWT (3) Source: Clarkson Research as of August 2009 (4) Navios Hope and Navios Sagittarius are drop down vessels post the initial IPO Average Age of Fleet: (2) Average Age of Drybulk Industry: (3) years 15.0 years

13 Diversified Portfolio of Charters with Industry Leaders AA+ rated EU Governmental Agency insurance on all charters-out Remaining Charter Duration (1) Revenue by Charterer (1) 6 10 years 33% 7% 1 3 years 19% 7% 15% 3 6 years 14% 9% 60% 6% Average Remaining Charter Term: 4.4 years 30% 93% of contracted volume secured by charters running longer than 3 years Diversified customer base with strong creditworthy counterparties (1) Note: Percentages based on projected 2009 through 2018 net revenues 13

14 Staggered Charter Expiration Profile (1) Navios Alegria $23,750 DEC-2010 Navios Libra II $23,513 DEC-2010 Navios Prosperity $24,000 JUL-2012 Navios Aldebaran $28,391 MAR-2013 Navios Felicity Navios Hope (2) $10,643 $26,169 JUN-2013 $16,841 SEP-2013 Original Charter-Out Rate New Charter-Out Rate Navios Fantastiks $32,279 $36,290 FEB-2014 Navios Gemini is $19,523 $24, FEB-2014 Navios Galaxy I $21,937 FEB-2018 Navios Sagittarius $26,125 NOV % Secured Charter-out days for 2009 and 2010 (1) Per day, net of commission (2) Navios Aurora I was renamed Navios Hope as of 2/2/2009. $33,863 net daily charter rate until 2/14/2009. Lump sum of approx. $29.6 million received in Q

15 Industry Overview

16 Baltic Exchange Dry Index* BDI 2002 up-to-date BDI October 2008 up-to-date * As of 09/04/

17 GDP Growth Supported by Emerging Economies 10.0 Emerging and developing economies World Advanced economies %An Annual GDP Growth Actual Oct-08 Nov-08 Jan-09 Mar-09 Jul Changing economic growth expectations: The IMF recently (July 2009) increased its forecast for 2010 World growth to 2.5% from 1.9% 17

18 Chinese Steel Production and Iron Ore Imports Stockpiles Steel production Iron Ore Imports August Jan Feb Mar May Jun Aug Sep r Oct Nov Dec Jan Feb Mar May Jun Aug Sep l r Oct Nov Dec Jan Feb Mar May Jun Aug Sep l r Oct Nov Dec Jan Feb Mar May June July l r September Ap Ju Ap Ju Ap Ju Ap Source: National Bureau of Statistics of China/ Mysteel

19 Chinese Raw Material Demand: Fleet Availability Capesize Vessels Newbuilding deliveries (January - August) 58 Conversions 27 Deletions (15) Net change (January - August) 70 Cape congestion (67) Net availability of capes 3 Chart source: Fearnley Fonds ASA. Source : SSY Congestion primarily related to Chinese iron ore and coal demand Chinese steel mills projected to continue to substitute iron ore imports for domestic production Average waiting time at Chinese discharge ports has remained high throughout 2009 and increasing in Brazil and Australia 19

20 Aging Fleet + Credit Crisis = Accelerated Scrapping Dry Bulk Industry Age Profile (% dwt) 50% Over 20 Years Old Over 25 Years Old 40% 30% 26% 20% 16% 10% 0% Total Dry Bulk Fleet Total Dry Bulk Fleet Source: SSY s Dry Bulk Forecaster (August 2009) Year End OVER 100 Bulkcarrier Demolition BULKCARRIER DEMOLITION BY SIZE Total Fleet DEMO AS % OF FLEET % % % % % % % % % Jan '09 - Jun ' % Jul ' % Aug ' YTD % Scrapping Dynamics*: Average scrapping for the period was approximately 1.62% of fleet dwt per year Average scrapping over 4-year period was 0.25% of fleet dwt per year Scrapping for 2008 exceeded 1% of fleet on dwt basis (all within Q4) Scrapping for 2009 projected to be at record levels Total dry bulk fleet end 2008 about m dwt Total dry bulk fleet end July 2009 about m dwt * Source: Clarksons 20

21 Scrapping LTM approx million dwt s LTM scrapping approaching 1986 record level of 12.3 million dwt s LTM 272 vessels scrapped: DWT of scrapped vessels LTM: approx million dwt s Average age of scrapped vessels LTM: 31 years DWT of scrapped vessels YTD : approx. 7.2 million 70 3,000, Scrapping LTM Total No of Ships 2,500,000 Total DWT 2,000,000 1,500,000 1,000, ,000 0 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09Jun-09 Jul-09 Aug-09 0 Source: SSY / Clarskons LTM number of vessels 21

22 Dry Bulk Orderbook: Slippage & Cancellation Scenario m. DWT Slippage & Cancellation Scenario Scheduled Deliveries Historical Scenario Slippage July YTD 35% (357 N/Bs expected, 231 actual deliveries) Slippage propelled by financial & technical issues Scenario assumes acceleration of slippage and cancellations for and 2011 Re-negotiations becoming common resulting in delivery postponements and cancellations

23 Financial Results

24 Significant Growth in Key Operating Metrics $ m EBITDA Operating Surplus Net Income $0.42 $0.40 $0.38 $0.36 $0.34 $ (1) 9.7 Q Q Q Q Q Q $ UNIT DISTRIBUTION TREND $0.35 $0.385 $0.40 $0.40 $0.40 Q Q Q Q Q Q (1) Adjusted Net Income for the three months ended June 30, 2009 includes $6.1 million non-cash expense recognized for the 1.0 million subordinated units issued to NM to release NMM from the obligation to acquire Navios Bonavis (formerly TBN I). This is an accounting treatment under US GAAP by reference to the market price for the common units without any discount for illiquidity. 24

25 Second Quarter 2009 Earnings Highlights ($ 000) Three months Three months Y-O-Y ended June 30, ended June 30, Variance Time charter and voyage % revenue EBITDA % Operating Surplus % Net Income (50.0%) Adjusted Net Income 9.7 (1) % Replacement Capex Reserve (13.0%) Active vessels % (1) Adjusted Net Income for the three months sended dedjune e30, 2009 includes cudes$6.1 million non-cash expense recognized ed for the 1.0 million subordinated units issued to NM to release NMM from the obligation to acquire Navios Bonavis (formerly TBN I). This is an accounting treatment under US GAAP by reference to the market price for the common units without any discount for illiquidity 25

26 First Half 2009 Earnings Highlights ($ 000) Six months Six months Y-O-Y ended June 30, ended June 30, Variance Time charter and voyage % revenue EBITDA % Operating Surplus % Net Income % Adjusted Net Income 18.6 (1) % Replacement Capex Reserve (11.4%) Active vessels % (1) Adjusted Net Income for the six months ended dedjune e30, 2009 includes cudes $6.1 million non-cash expense recognized ed for the 1.0 million subordinated units issued to NM to release NMM from the obligation to acquire Navios Bonavis (formerly TBN I). This is an accounting treatment under US GAAP by reference to the market price for the common units without any discount for illiquidity 26

27 Strong Balance Sheet Selected Balance Sheet Data (in $'000) June 30, 2009 December 31, 2008 Cash & cash equivalents Other current assets Vessels, net Total Assets Deferred revenue, current (1) Other current liabilities Long term debt Total Partners Capital Total liabilities & partners capital (2) Net Debt / Asset Value (3) 47.4% 58.9% Accumulated Replacement Capex Reserve (1) Deferred revenue includes $6.8 million portion from non-cash expense received from prepayment of charter hire in Navios Hope which has been recognized as deferred revenue and amortized over life of the vessel s contract (2) Includes current portion of debt $ million (3) Based on Clarksons valuation as of June 30,

28 Quarterly Cash Distribution

29 Q Cash Distribution Cash Distribution of $0.40 per unit for Q Record Date: August 6, 2009 ; Payment Date: August 11, 2009 Cumulative Operating Surplus: $15.3 million Distribution: $10.1 million ($6.85 million to Common Units) ($3.25 million to GP and Subordinated Units) Common Unit Coverage: 2.23x Total Unit Coverage: 1.51x Tax Efficient Status Distributions reported on Form

30 Quarterly Cash Distributions Unit Distributions Cash Distributionib i $ Per Unit % Increase From Minimum Distribution Equivalent Annualized Basis Effective Annualized Yield at Current Unit Price (1) Minimum Distribution $0.35 $ % Actual Distribution Q $ $ % Q $ $ % Q $ % $ % Q $ % $ % Q $ % $ % Q $ % $ % (1) As at September 4, 2009 NMM closing price of $

31 Conservative Business Posture Long Term Charter Coverage Weighted average remaining term of charter coverage approximately 4.4 years Staggered charter-out expirations which minimize charter renewal risk Strong Counterparties Strong creditworthy counterparties (Mitsui, Rio Tinto, Cargill, etc.) Insured Revenue Stream Charter-out contracts insured by AA+ rated EU governmental agency Steady Increase in Distributions Per Unit Q1 & Q $0.35 Q $0.385 (10% increase) Q $0.40 (4% increase) Q1 & Q $0.40 Operating Expense Visibility 5-year contract with Navios ShipManagement with costs fixed until November 2009 Young Fleet Fleet age of 6.4 years (1) vs. industry fleet age of 15.0 years (2) (1) Navios Maritime Partners fleet age weighted by DWT (2) Source: Clarksons as of August

32 32

33 Appendix

34 Navios MLP Fleet Owned Vessels Vessels Type Built DWT Charter Rate ($) 1 Expiration Date 2 Navios Fantastiks Capesize ,265 32,279 3/1/ ,290 2/26/2014 Navios Alegria Panamax ,466 23,750 12/31/2010 Navios Hope (3) Panamax ,397 10,643 5/18/ ,841 9/25/2013 Navios Libra II Panamax ,136 23,513 12/31/2010 Navios Gemini S Panamax ,636 24,225 2/8/2014 Navios Felicity Panamax ,867 26,169 6/9/2013 Navios Galaxy I Panamax ,195 21,937 2/3/2018 Total - 7 Vessels 618,962 Long-Term Chartered-In Vessels Vessels Type Built DWT Charter-Out Rate ($) 1 Expiration Date 2 Purchase Option Navios Sagittarius Panamax ,756 26,125 11/19/2018 Yes Navios Prosperity Panamax ,535 24,000 7/4/2012 Yes Navios Aldebaran Panamax ,500 28,391 3/16/2013 Yes Total - 3 Vessels 234,791 Total Fleet - 10 Vessels 853,753 dwt (1) Daily charter-out trate net of commissions i (2) Assumed midpoint of redelivery by charterers (3) Navios Aurora I was renamed Navios Hope as of 2/2/2009. Lump sum compensation of $29.6 million under the new charter arrangement payable on 2/11/