5th Annual Shipping, Logistics & Offshore Services Conference

Transcription

1 5th Annual Shipping, Logistics & Offshore Services Conference New York City, September 16, 2008

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 dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation. 2

3 Agenda Company Overview Quarterly Cash Distributions Review of Financial Results Fleet and Operations Overview Industry Overview 3

4 Company Overview

5 Navios Partners Ownership Structure 100% Membership Interest Navios Maritime Holdings Inc. NYSE: NM Common Unitholders (*) Navios GP L.L.C. (General Partner) 2.0% General Partner Interest Incentive Distribution Rights 49.6% Limited Partner Interest Navios Maritime Partners L.P. NYSE: NMM 48.4% Limited Partner Interest 100% Membership Interest Navios Maritime Operating L.L.C. 11 Drybulk Vessels 1 Capesize and 8 Panamax drybulk carriers (active fleet) 1 Capesize vessel in June Option to Purchase Capesize in October 2009 (*) Refers to publicly traded common units and includes 500,000 of common units purchased by a corporation owned by Angeliki Frangou (representing 2.3% of units outstanding). 5

6 Quarterly Cash Distributions

7 Increase in Quarterly Cash Distributions Unit Distributions Cash %I Increase Equivalent Effective Distributions From Annualized Annualized Per Unit Minimum Basis Yield at Current Distribution Unit Price (1) Minimum Distribution $0.35 $ % Actual Distribution Q $ $ % Q $ $ % Intended Distribution Q $ % $ % Q $ % $ % (1) As at September 12, 2008 NMM closing price of $

8 Q2 Cash Distribution Cash Distribution of $0.35 per unit for Q Record Date: Aug 8, 2008 ; Payment Date: Aug 14, 2008 Cumulative Operating Surplus: $6.6 million Distribution: $6.5 million ($3.7 million to Common Units) ($2.8 million to GP and Navios Holdings) Common Unit Coverage: 1.78x 8

9 Review of Financial Results

10 Q Financial Results Navios Partners Financial i Results (Dollars in millions) Period from 4/1/08 to 6/30/08 Time charter and voyage revenue Time charter and voyage expenses $17.9 (3.2) EBITDA Run Rate Direct vessel expenses Management fees Depreciation and amortization General and administrative expenses (2.5) (0.5) EBITDA for Q is not reflective of actual run rate, as this EBITDA does not include: Net interest expense and finance cost (2.3) Acquisition of Navios Aurora I on July Net Income $7.2 1, 2008 EBITDA (0.1) (2.1) $12.1 Operating Surplus $5.9 Replacement Capex Reserve $2.3 Active vessels at 6/30/ Full quarter impact of cost savings due to delivery of Navios Fantastiks into the owned fleet in May 2008 Full quarter impact of the significantly higher charter-out rate of Navios Felicity as of April

11 First Half 2008 Financial Results Navios Partners Financial i Results (Dollars in millions) Six month period from 1/1/08 to 6/30/08 Time charter and voyage revenue Time charter and voyage expenses $32.3 (6.0) EBITDA Run Rate Direct vessel expenses Management fees (3.9) EBITDA for H is not reflective Depreciation and amortization (5.3) of actual run rate, as this EBITDA does not include: General and administrative expenses (1.0) Net interest expense and finance cost (4.8) Acquisition of Navios Aurora I on July 1, 2008 Net Income EBITDA $11.0 $21.3 Full impact of cost savings due to delivery of Navios Fantastiks into the owned fleet in May 2008 Operating Surplus $13.1 Full earnings impact of delivery of Navios Aldebaran in March 2008 Replacement Capex Reserve $4.4 Full impact of the significantly higher Active vessels: at 6/30/ charter-out rate of Navios Felicity as of at 7/01/ April (0.3)

12 $ m Significant Growth in Key Operating Metrics Q Q Q * $ UNIT DISTRIBUTION GROWTH ** $0.40 $0.39 $0.38 $0.37 $0.36 $0.35 $0.34 $0.33 $0.32 $0.35 $0.385 Q1 Q2 Q3 Q4 * The reporting period consists of 46 days out of 92 days in the calendar quarter. ** Management has recommended to the Board of Directors the increases in unit distributions for Q3 and Q4 12 $ $0.40 Revenue EBITDA Net Income

13 Strong Balance Sheet Selected Balance Sheet data as at 6/30/2008 (Dollars in millions) 6/30/2008 Cash & cash equivalents (1) $15.4 Other current assets 0.8 Vessels, net Total assets $237.8 Current liabilities $4.1 Long term debt Total partners capital 28.1 Total liabilities & partners capital $237.8 Net Debt/Asset Value (2) 28.8% Accumulated Replacement Capex Reserve 5.4 Low Cost Credit Facility $35.0 million drawn on July 1, 2008 to finance the acquisition of Navios Aurora I Remaining $60.0 million of credit facility in place to finance approximately 45% of the acquisition price for the TBN I Cape delivering in June 2009 No amortization until Q Low Spread over LIBOR (1) Includes Restricted cash of approximately $0.6 million (2) Assumes estimated current market values of owned vessels as per Clarksons and estimated market values of chartered-in vessels (less the exercise values). Includes Navios Aurora I and drawdown of $35.0 million in debt to finance its acquisition 13

14 Fleet and Operations Overview

15 Modern, High Quality Capesize and Panamax Fleet Purchase Vessel Type DWT Year Built Ownership Option (1) Navios Fantastiks Capesize 180, % Navios Prosperity Panamax 82, Chartered-in Current Fleet To be Delivered 9 2 Navios Alegria Panamax 76, % Navios Galaxy I Panamax 74, % Navios Felicity Panamax 73, % Navios Libra II Panamax 70, % Navios Gemini S Panamax 68, % Navios Aldebaran Panamax 76, Chartered-in (2) Navios Aurora I Panamax 75, % (3) Navios TBN I Capesize 180, To be Owned (4) Navios TBN II Capesize 180, To be Owned (1) Delivered to owned fleet in May 2008 (2) Acquired from Navios Holdings on July 1, 2008 (3) Purchasing from Navios Holdings for $130.0 million at end of June 2009 (4) Option to purchase from Navios Holdings for $135.0 million by October 2009 (5) Navios Partners fleet age weighted by DWT (6) Source: Drewry Shipping Consultants, Ltd. as of January, 2008 Average Age of Fleet: (5) Average Age of Drybulk Industry: (6) years 15.0 years

16 Diversified Portfolio of Charters with Industry Leaders Remaining Charter Duration (1) Revenue by Charterer (1) 11% 1 3 years 17% 11% 59% 3 5 years 30% 17% 35% 11% 5 10 years Average Remaining Charter Term: 4.9 years 9% About 60% of contracted volume secured by charters running longer than 5 years Diversified customer base with strong creditworthy counterparties (1) Note: As at July 1, Percentages based on projected 2008 through 2018 net revenues. Does not include Navios TBN I and TBN II Capesize vessels. 16

17 Staggered Charter Expiration Profile (1) Navios Alegria $23,750 DEC-2010 Navios Libra II Navios Prosperity $23,513 $24,000 DEC-2010 JUL-2012 Navios Aldebaran $28,391 MAR-2013 Navios Felicity Navios Aurora I $9,595 $26,169 APR-2013 $24,063 $33,863 AUG-2013 Original Charter-Out Rate New Charter-Out Rate Navios Fantastiks $32,279 $36,290 FEB-2014 Navios Gemini S $19,523 $24,225 FEB-2014 Navios TBN I $47,400 JUN-2014 Navios TBN II Navios Galaxy I (2) $55,100 OCT-2014 $21,937 FEB Increase in charter rates and additional vessel purchases provide for a significant projected increase in 2009 and run-rate EBITDA (1) Per day, net of commission (2) Option to purchase from Navios Holdings for $135.0 million by October

18 Industry Overview

19 BDI Index Forward expectations remain strong index poin BDI 2006 BDI 2007 BDI 2008 Forward Curve SEP 4000 Forward Curve Q JAN JAN JAN JUN MAY MAY APR APR APR MAR MAR FEB FEB FEB JUN JUN JUL JUL JUL SEP AUG AUG AUG SEP OCT DEC NOV NOV NOV OCT OCT DEC.. despite continuing worldwide credit and equity concerns Source: The Baltic Exchange

20 Favorable Demand Dynamics China is redefining urbanization scale CHINA Significant Coastal Dry Cargo Volume Strong Domestic Demand From , Chinese cities will add more than 350 million people There will be more than 200 cities with more than 1m inhabitants Up to 50,000 new skyscrapers added Up to 170 new transit systems added China coastal dry bulk cargo volume driving dry bulk vessel demand Demand estimated to grow by over 40% over the next 5 years requiring the capacity of an additional 236 Panamax vessels Urbanization and industrialization proceeding, including construction of ports, railways, bridges and roads The approximate population of the United States In Europe today there are only 35 cities of that size The equivalent of building ten New Yorks In Europe today there are 70 transit systems Jing Ulrich, JPMorgan CHINA Crude Steel production to increase by 100 million mt by 2012 decreasing exports of iron ore INDIA Ultra mega power plant projects being planned requiring coal imports It s not all about China! Major Port expansion program 20 20

21 Drybulk Vessels Supply vs. Aging g Fleet Order book includes mdwt (44.5% of fleet) of scheduled deliveries through 2010 (1) New vessels ordered today will not be delivered until 2011 Substantial greenfield (red) and inexperienced (gray) shipyard risk Capesize orderbook to be built at 31 yards only 13 of them have built Capes before (2) Slippage of newbuilding deliveries has occurred Drybulk Industry Age Profile (% dwt) (3) 50% Over 20 Years Old Over 25 Years Old 40% 29% 30% 20% 16% 10% 0% Total Drybulk Fleet Total Drybulk Fleet % Dry Bulk Orderbook by Type of Builder: Share of 2009/2010 Orders (4) Established New Entrant (size) New Entrant (Type) Handy Handymax Panamax Cape Given strong market conditions, older vessels are not being actively scrapped (1) Source: Drewry Shipping Consultants, Ltd. (August 2008) (2) Source: Howe Robinson (January 2008) (3) Source: SSY s Dry Bulk Forecaster (August 2008) (4) Source: SSY (July 2008) 21 21

22 Summary Stable cash flows Weighted average remaining term of charter coverage approx. 4.9 years Young fleet Fleet age of 5.8 years (1) vs. industry fleet age of 15.0 years (2) Operating expense visibility 5-year contract with Navios Holdings with costs fixed until November 2009 Significant built-in growth Cash flow growth from additional vessel purchases and higher charter rates Conservative leverage Low leverage provides ability to fund the majority of our growth with debt (1) Navios Maritime Partners fleet age weighted by DWT (2) Source: Drewry Shipping Consultants, Ltd. as of January

23 Appendix

24 Navios MLP Fleet Owned Vessels Vessels Type Built DWT Charter Rate ($) 1 Expiration Date 2 Navios Fantastiks (3) Capesize ,265 32,279 3/01/ ,290 2/28/2014 Navios Alegria Panamax ,466 23,750 12/30/2010 Navios Aurora I Panamax ,397 24,063 8/15/ ,863 8/15/2013 Navios Libra II Panamax ,136 23,513 12/30/2010 Navios Gemini S Panamax ,636 19,523 2/8/ ,225 2/8/2014 Navios Felicity Panamax ,867 26,169 4/26/2013 Navios Galaxy I Panamax ,195 21,937 2/21/2018 Total - 7 Vessels 618,962 Long-Term Chartered-In Vessels Vessels Type Built DWT Charter-Out Rate ($) 1 Expiration Date 2 Purchase Option Navios Prosperity Panamax ,535 24,000 7/4/2012 Yes Navios Aldebaran Panamax ,500 28,391 3/16/2013 Yes Total - 2 Vessels 159,035 Dropped Down Vessels Vessels Type Expected Delivery DWT Charter-Out Rate ($) 1 Expiration Date 2 Navios TBN I 4 Capesize Jun ,000 47,400 Jun-14 Navios TBN II 5 Capesize Oct ,000 55,100 Oct-14 (1) Daily charter-out rate net of commissions. (2) Assumed midpoint of redelivery by charterers. (3) Purchase option of $34.2 million has been exercised. Vessel acquired on May 2, (4) Purchasing from Navios Holdings for $130.0 million at end of June (5) Option to purchase from Navios Holdings for $135.0 million by October

25 Contact Public & Investor Relations Contact: Navios Maritime Partners L.P. Investor Relations Nicolas Bornozis Capital Link, Inc. Tel. (212)