Capital Link International Shipping Forum. March 20, 2008

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Transcription:

Capital Link International Shipping Forum March 20, 2008

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 in accordance with accounting principles 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

Agenda! Company and Fleet Overview! Growth Strategy! Industry Overview! Fourth Quarter 2007 Financial Results! 2008 Financial Forecast 3

Company and Fleet Overview

Overview Exchange/Ticker: NYSE / NMM Units Outstanding 10,500,000 Common Units & 7,621,843 Subordinated Units GP Interest 2% Minimum Quarterly Distribution $0.35 per unit ($1.40 annualized) Current Unit Price (1) $14.00 Current Dividend Yield (1) 10.00% Expected Tax Treatment of Distributions Form 1099: 56% of "qualified" dividend income and 44% of return of capital Focus Focus on fixed rate business (3+ years charter) in the Capesize and Panamax dry bulk markets Strategy Capitalize on high demand for long-term vessel employment & consolidate fragmented dry bulk market (1) As at March 13, 2008 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 41.2% Limited Partner Interest Navios Maritime Partners L.P. NYSE: NMM 56.8% Limited Partner Interest 100% Membership Interest Navios Maritime Operating L.L.C. 10 Drybulk Vessels! 1 Capesize and 7 Panamax drybulk carriers (active fleet)! 1 Contracted vessel acquisition (1 Capesize vessel in June 2009)! 1 Option to Purchase Capesize in October 2009 (1) Includes 2.7% of common units to be purchased by a corporation owned by Angeliki Frangou. 6

Modern, High Quality Capesize and Panamax Fleet Vessel Type DWT Year Built Ownership Purchase Option (1) Fantastiks Capesize 180,265 2005 Chartered-in! Navios Prosperity Panamax 82,535 2007 Chartered-in! Navios Alegria Panamax 76,466 2004 100% Current Fleet 8 Navios Galaxy I Panamax 74,195 2001 100% Navios Felicity Panamax 73,867 1997 100% Navios Libra II Panamax 70,136 1995 100% 2009 2 Navios Gemini S Panamax 68,636 1994 100% Navios Aldebaran Panamax 76,500 2008 Chartered-in! (2) Navios TBN I Capesize 180,000 2009 To be Owned (3) Navios TBN II Capesize 180,000 2009 To be Owned Average Age of Fleet: (4) Average Age of Drybulk Industry: (5) (1) Purchase option of $34.2 million has been exercised to acquire in March 2008. (2) Purchasing from Navios Holdings for $130.0 million at end of June 2009. (3) Option to purchase from Navios Holdings for $135.0 million by October 2009. (4) Navios Partners fleet age weighted by DWT. (5) Source: Drewry Shipping Consultants, Ltd. As of September 30, 2007. 5.7 years 16.0 years 7

2008 Fleet Initiatives $14.8 million annual incremental EBITDA! Aldebaran delivery 2008 built 76,500 dwt long-term chartered-in Panamax vessel Delivered March 17, 2008 Purchase option = $30 million (approx.) Chartered-out at $28,391 for five years (March 2013) Annual EBITDA = $5.4 million! Exercise purchase option on Fantastiks 2005 built 180,265 dwt Capesize vessel Acquisition price = $34.2 million (current market value* = $155 million) Low-cost credit facility available to finance 100% of the acquisition price Annual cost savings = $3.4 million (replacing charter-in rate with opex)! Felicity charter-out renewal Charter-out rate resets to $26,169 from $9,595 per day in April 2008 Duration of new charter is 5 years Annual incremental EBITDA = $6.0 million *Clarksons Research 8

Strong Relationships with Key Industry Participants Strong Counterparties! Provides greater security of cash flows! Opportunities to expand business relationships with largescale global operators! Counterparty insurance 9

Diversified Portfolio of Charters with Industry Leaders Remaining Charter Duration (1) Revenue by Charterer (1) 10+ years 10% 17% 25% 45% 5 10 years 3 5 years 23% 2% 45% 10% Average Remaining Charter Term: 5.2 years 13% 10% Over 55% of contracted volume secured by charters running longer than 5 years Diversified customer base with strong creditworthy counterparties (1) Note: As at December 31, 2007. Percentages weighted based on projected 2008 net revenues. Does not include Navios TBN I and TBN II vessels. 10

Growth Strategy

Multiple Avenues of Distribution Growth DISTRIBUTION GROWTH Purchasing Contracted Capesize and Panamax Vessels! Contracted charter-in of Aldebaran in March 2008! Contracted purchase of Navios TBN I Capesize vessel in June 2009! Option to purchase Navios TBN II Capesize Exercising Purchase Options! Exercise the purchase option for Fantastiks in March 2008! Rights to purchase Navios Prosperity and Navios Aldebaran in 2012 and 2013 Opportunities in the Drybulk S&P Market! Sale and purchases of drybulk vessels! Highly fragmented industry Additional Growth Through Navios Holdings Controlled Vessels! Right to purchase certain vessels on 3+ year charters! Navios Holdings has 41 Capesize and Panamax vessels Current 363,300 DWT 903,565 DWT Oct. 2009 +149% (1) (2) 12 (1) Includes owned tonnage only. (2) Includes Navios TBN II that Navios Maritime Partners has the option to acquire in October 2009.

Relationship with Navios Holdings Provides Key Advantages Network of Strong Relationships! Drybulk and raw material producers! Industrial end-users! Agricultural traders and exporters High Quality Technical & Commercial Management! Fixed OpEx at below industry average (1)! History of low number of off-hire days (utilization of 99.5-100%) Proven Ability to Source New Assets! Grown controlled fleet to 62 vessels*! Required to offer certain owned vessels if Navios Holdings charters vessels for 3+ years! Long relationships with shipyards! Track record in the S&P market * As at 12/31/2007 (1) Five year management contract with two years fixed operating expenses for owned vessels. ($4,000 per day for panamax and $5,000 per day for capes) 13

Industry Overview

Favorable Demand Dynamics Strong Growth in Emerging Markets Seaborne Demand Amplified by Ton-Mile Effect " Emerging countries now contribute over half of world GDP (PPP basis) (1) " Emerging countries will grow at 6.8% for next 5 years " Increases in steel production, power generation and grain consumption " Long hauls with changing trading patterns " China s dependency on Brazilian iron ore " Inefficient transportation bottlenecks (e.g. port congestion) " China now a net importer of coal & corn; India a net importer of steel CHINA Significant Coastal Dry Cargo Volume Strong Domestic Demand " 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 Jing Ulrich, JPMorgan CHINA INDIA It s not all about China! " Crude Steel production to increase by 100 million mt by 2012 decreasing exports of iron ore " Ultra mega power plant projects being planned requiring coal imports " Major Port expansion program (1) The Economist September 14, 2006. 15 15

Growth in Asia Comparative imapct of Chinese and OECD IP growth % change 7% 6% 5% 4% 3% 2% 1% 0% kg/per capita 1,200 1,000 800 600 400 The Asian Growth Model: Steel production per capita -1% -2% -3% 1991 China im pact OECD im pact Combined impact 1994 1997 2000 2003 2006 2009 200 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Years Source: ICAP HYDE, December 2007 Japan China India South Korea Taiw an 16

Drybulk Vessels Supply vs. Aging Fleet! Order book includes 164.7 mdwt (41.5% of fleet) of scheduled deliveries through 2010 (1) New vessels ordered today will not be delivered until 2010-11 Substantial greenfield shipyard risk Capesize orderbook to be built at 31 yards only 13 of them have built Capes before (3) Majority of tonnage on order at new facilities, several of whom face difficulties in sourcing steel, engines, tail shafts etc Credit crunch and steel plate prices may threaten existing orders and financing of new shipyards Drybulk Industry Age Profile (% dwt) (2) 50% 40% 30% 20% 10% 0% Over 20 Years Old 29% Total Drybulk Fleet Over 25 Years Old 14% Total Drybulk Fleet! Given strong market conditions, older vessels are not being actively scrapped (1) Source: Drewry Shipping Consultants, Ltd. (January 2008) (2) Source: SSY s Dry Bulk Forecaster (January 2008). (3) Source: Howe Robinson (January 2008) 17

Fourth Quarter 2007 Financial Results

Interim Q4 2007 Financial Results Navios Partners Financial Results (Dollars in millions) Period from 11/16/07 to 12/31/07 (46 days) Time charter and voyage revenues Time charter and voyage expenses Management Fees $7.0 (1.5) (0.9) EBITDA Run Rate Depreciation and amortization (1.4) General and administrative (0.4) Net interest expense and finance cost (1.2) Net Income $1.6 EBITDA $4.3 Operating Surplus $3.3 Replacement Capex Reserve $1.0 EBITDA for 2007 interim period is not reflective of actual run rate, as this EBITDA does not include: "Cash flow from Aldebaran which will deliver in March 2008 "Cost savings due to exercising purchase option on Fantastiks in March 2008 "Charter-out rate on Felicity being renewed significantly higher in April 2008 Active vessels at 12/31/2007 7 19

Strong Balance Sheet Selected Balance Sheet data as at 12/31/2007 (Dollars in millions) 12/31/2007 Cash & cash equivalents $10.9 Other current assets 0.4 Vessels, net 136.0 Total Assets $205.0 Current Liabilities $6.6 Long term Debt 165.0 Equity 26.8 Total Liabilities $205.0 Low Cost Credit Facility! Credit facility in place to debt finance: 100% of the Purchase option for Fantastiks 50% of the acquisition vessel for the TBN I Cape delivering in June 2009! No amortization for 4 years Net Debt/Asset Value (1) 35.4%! $95.0 million of capacity undrawn on revolving credit facility! Low spread over LIBOR 20 (1) Assumes estimated current market value of assets as per Clarksons Research. Includes Fantastiks as an owned vessel.

Strong Common Unit Distribution Coverage Cash Distribution of $0.175 per unit for 46-day period from November 16, 2007 to December 31, 2007 Annualized Distribution = $1.40 per unit Record Date: February 11, 2008 ; Payment Date: February 14, 2008 Operating Surplus: $3,253,691 Distribution: $3,236,043 ($1,837,500 to Common Units) Common Unit Coverage: 1.8 x 21

2008 Financial Forecast

Summary 2008 Financial Forecast Navios Partners Financial Forecast (Dollars in millions) Twelve Months Ending December 31, 2008 Time charter and voyage revenues Time charter and voyage expenses Direct vessel expenses (management fees) Depreciation and amortization General and administrative Net interest expense and finance cost Net Income EBITDA Vessels at End of Period Revenue Days $68.7 (10.2) (8.7) (9.9) (2.0) (11.2) $26.7 $47.7 8 2,835 Strong Projected EBITDA Growth with Expense Visibility! Increase in charter rates and vessel drop-downs from Navios Holdings provide for a large increase in run-rate EBITDA! Operating expenses fixed through fixed-rate contracts with Navios Holdings for 2 years $4,000/day for Panamax Vessels (1) $5,000/day for Capesize Vessels (1) (1) Operating expenses per day include management fees. 23

Strong Projected Common Unit Distribution Coverage Forecast Cash Available for Distribution (Dollars in millions, except per unit amounts) Twelve Months Ending December 31, 2008 EBITDA Less: Cash Interest Expense Plus: Cash Interest Income Less: Expansion Capital Expenditures Less: Replacement Capital Expenditures Reserve Plus: Borrowings to Fund Expansion Capital Expenditures Forecast Cash Available for Distribution Minimum Annual Distribution $47.7 (11.2) 0.2 (34.2) (9.5) 34.2 $27.2 $25.9 Forecast Distributable Cash Flow Per Unit $1.47 Minimum Distribution Per Unit $1.40 Common Unit Coverage Total Unit Coverage 1.85x 1.05x 24

Summary Investment Highlights Highly visible and stable cash flows from long-term charters Attractive dividend yield Significant growth opportunities Modern, high quality fleet with strong counterparties Strong dry bulk fundamentals Strong sponsorship with proven ability to grow fleet 25

Contact Public & Investor Relations Contact: Navios Maritime Partners L.P. Investor Relations Nicolas Bornozis Capital Link, Inc. Tel. (212) 661-7566 E-mail: naviospartners@capitallink.com 26

Appendix

Staggered Charter Expiration Profile (1) Navios Alegria Navios Libra II $23,594 $23,513 DEC-2010 DEC-2010 Fantastiks Navios Prosperity $32,279 $24,000 MAR-2011 JUN-2012 Navios Aldebaran Navios Felicity $28,391 $9,595 $26,169 MAR-2013 APR-2013 Original Charter-Out Rate New Charter-Out Rate 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 JAN-2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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 2009. 28

Key Financial Characteristics Stable cash flows Weighted average remaining term of approximately 5.2 years Young fleet Fleet age of 5.7 years (1) vs. industry fleet age of 16.0 years (2) Operating expense visibility 5-year contract with Navios Holdings with first two years fixed 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 September 30, 2007 29

Navios MLP Fleet Owned Vessels Vessels Type Built DWT Charter Rate ($) 1 Expiration Date 2 Navios Alegria Panamax 2004 76,466 19,475 12/31/2007 23,594 12/30/2010 Navios Libra II Panamax 1995 70,136 21,613 12/31/2007 23,513 12/30/2010 Navios Gemini S Panamax 1994 68,636 19,523 2/8/2009 24,225 2/8/2014 Navios Felicity Panamax 1997 73,867 9,595 4/25/2008 26,169 4/26/2013 Navios Galaxy I Panamax 2001 74,195 24,062 2/20/2008 21,937 2/21/2018 Total - 5 Vessels 363,300 Vessels Type Built DWT Charter-Out Rate ($) 1 Expiration Date 2 Purchase Option Fantastiks 3 Capesize 2005 180,265 32,279 3/1/2011 Yes 36,290 2/28/2014 Navios Prosperity Panamax 2007 82,535 24,000 7/4/2012 Yes Navios Aldebaran Panamax 2008 76,500 28,391 3/1/2013 Yes Total - 3 Vessels 339,300 Dropped Down Vessels Vessels Type Expected Delivery DWT Charter-Out Rate ($) 1 Expiration Date 2 Navios TBN I 4 Capesize Jun-09 180,000 47,400 Jun-14 Navios TBN II 5 Capesize Oct-09 180,000 55,100 Oct-14 Total - 2 Vessels 360,000 (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 to acquire in March 2008. (4) Purchasing from Navios Holdings for $130.0 million at end of June 2009. (5) Option to purchase from Navios Holdings for $135.0 million by October 2009. 30