CONFIDENTIAL – DO NOT DISTRIBUTE
60
Years of
Innovation &
Excellence
(NYSE: NMM)
Third Quarter 2014 Earnings Presentation
October 27, 2014
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. For the selected financial data
presented herein, Navios Partners compiled consolidated statement of operations for the three and nine month periods ended September 30, 2014
and September 30, 2013.
.
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Navios Partners Ownership Structure
100% Membership Interest
Navios GP L.L.C.
(General Partner)
Navios Maritime Holdings Inc.
NYSE: NM
18.0% Limited Partner Interest
Common Unitholders
80.0% Limited Partner Interest
2.0% General Partner Interest
Incentive Distribution Rights
Navios Maritime Partners L.P.
NYSE: NMM
100% Membership Interest
32 Vessels
8 Capesize, 14 Panamax and 3 Ultra Handymax Dry Bulk Carriers
7 Container vessels
2
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Company Highlights
Long-Term Charter
Coverage
with Strong
Counterparties
 Average charter duration is 3.1 years
 Staggered charter expirations minimize charter renewal risk
 Strong creditworthy counterparties (Bunge, Cargill, Cosco, Exelon, HMM, Rio
Tinto, Yang Ming, etc.)
Secured Revenue
Stream
 Approximately 8 years coverage on the container fleet
Solid Distribution
throughout the
Cycle
 26.4% increase in distributions since inception
Young, Growing
Fleet
Continued Access
to Capital Markets
 87.8% of contracted revenue is from charters longer than 3 years
 Committed to a minimum distribution of $1.77 through 2015
 More than quadrupled fleet capacity since Nov. 2007 IPO
 Average fleet age of 7.5 years (1)
 $1.3 billion in equity and public debt issued since May 2009
 ~ $830 million equity
 ~ $440 million public debt
(1)
Navios Maritime Partners fleet age weighted by DWT
3
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Actively Managing the Cycle
•
Prudent acquisition strategy, no unfunded acquisitions
‒
‒
‒
•
Diversified sources of financing; issued Term Loan B
‒
‒
•
Extended contract duration; solidified cash flow generation
‒
‒
‒
‒
Acquired four drybulk vessels
Average age of acquired vessels of 2.8 years, compared to the fleet average of 6.5 years at acquisition
Solid distribution; secured revenue stream
‒
‒
‒
(1)
Strategic entry into container segment at favorable asset values
Market volatility risk mitigated by long-term contracts
$60.4 million expected annual EBITDA generation (1)
Acquisition at an attractive EBITDA multiple of 6.5x
Renewed drybulk fleet at attractive prices
‒
‒
•
Diversifies sources of financing from existing lending sources
Significant annual cash saving compared to traditional bank financing
Entered container segment: 7 vessels with over 8 years average charter duration

•
Acquisition of 11 vessels since 2012
Secured financing in advance of any acquisitions
$793 million raised/collected in 2013-2014 YTD
•
$265 million through equity raisings;
•
$440 million issuance of Term Loan B;
•
$88 million settlement of insurance/charters
26.4% increase in distributions since inception
87.8% of contracted revenue is from charters longer than 3 years
3.1 years average charter duration; staggered charter expirations minimize charter renewal risk
EBITDA estimates assume expenses approximating operating cost structure under the amended Management Agreement and 360 revenue days per year. Aggregate EBITDA
assumes 3% increase in operating costs.
4
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Recent Developments
•
$117.7 million container vessel acquisition update
‒
‒
(1)
(2)
Two container vessels
Vessel
Type
TEU
Built
Delivery Date
YM Utmost
Container
8,204
2006
August 29, 2014
YM Unity
Container
8,204
2006
October 28, 2014 (2)

Minimum four-year charters at $34,266 net per day per vessel

$19.0 million expected annual EBITDA (1), $75.7 million expected aggregate EBITDA (1)

Acquisition at an attractive EBITDA multiple of 6.2x
$56.0 million bank financing:

Maturity in 2019

Amortization profile of 10.2 years

Interest rate of Libor +3%
EBITDA estimates assume expenses approximating operating cost structure under the amended Management Agreement and 360 revenue days per year. Aggregate EBITDA
assumes 3% increase in operating costs.
Scheduled delivery date
5
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Liquidity
September 30, 2014
(US $ million)
Debt Maturity
141.4
Debt
557.3
Partners' Capital
771.1
Capitalization
(US $ million)
Cash
1,328.4
Pro Forma Net Debt / Capitalization
31.3%
450
400
350
300
250
200
150
100
50
0
418.0
-
-
2014
2015
2016
2017
At least $150 million purchasing power for future acquisitions
6
14.3
58.2
2018
2019
CONFIDENTIAL – DO NOT DISTRIBUTE
Multiple Avenues of Distribution Growth
Increases since IPO:
Navios Group
Vessels
• Right to purchase Capesize
and Panamax vessels on 3+
year charters
• Eleven vessels dropped down
since IPO
• Navios Group has grown to a
controlled fleet of 147 vessels
of which 86 are dry bulk
vessels
November 2007 IPO
626,100 DWT
(1) Includes owned and chartered-in tonnage
26.4% distribution
300% number of vessels
421% operational fleet capacity
Purchase Options
• Exercised purchase option for
Navios Fantastiks and Navios
Sagittarius
• Purchase options on Navios
Prosperity and Navios
Aldebaran
(1)
+421%
7
Opportunities in the
S&P Market
• Vessel values have fallen
significantly from 2008 highs
• 13 vessels acquired in the
open market
• Highly fragmented industry
• Distressed opportunities
October 2014
3,264,751 DWT
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Q3 & Nine Months September 30, 2014 Earnings Highlights
Earnings Highlights
(in $ million)
Q3 2014
Q3 2013
Y-O-Y
Variance
Time charter revenue
55.3
46.6
18.7%
168.0
146.0
15.0%
EBITDA
37.5
35.6
5.1%
160.7 (1)
117.7 (3)
36.5%
Net Income
13.0
13.1 (1)
(0.6%)
61.4 (1) (2)
48.9 (3) (4)
25.6%
EPU
0.16
0.19 (1)
(15.8%)
0.77 (1) (2)
0.72 (3) (4)
6.7%
Operating Surplus
25.0
28.2 (1)
(11.3%)
123.8
99.4
24.5%
Replacement and
Maintenance Capex Reserve
6.0
3.5
70.1%
17.8
10.5
70.3%
Active Vessels
31
22
40.9%
31
22
40.9%
Available Days
2,709
1,952
38.8%
8,072
5,736
40.7%
except active vessels and available days
Nine Months Ended
September 30, 2014
Nine Months Ended
September 30, 2013
Y-O-Y
Variance
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes. EBITDA is presented because Navios Partners believes that
EBITDA is a basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital
expenditures, meet working capital requirements and pay dividends. 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. 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.
Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense and estimated maintenance and replacement capital
expenditures. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue
generated by, Navios Partners’ capital assets. Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a
partnership’s ability to make quarterly cash distributions. Operating Surplus is not required by US GAAP and should not be considered as an alternative to net income or any other
indicator of Navios Partners’ performance required by US GAAP.
(1)
(2)
(3)
(4)
Positively affected by the accounting effect of the $47.6 million insurance settlement.
Negatively affected by the $22.0 million non-cash write-off of intangible asset relating to the Navios Pollux.
Positively affected by the $13.3 million hire payment received in advance in relation to the Navios Melodia.
Negatively affected by the non-cash write-off of $3.2 million for the nine months ended September 30, 2013, related to a favorable contract. Also, includes the write-off of deferred
finance fees of $2.4 million for the nine months ended September 30, 2013.
8
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Balance Sheet
Selected Balance Sheet Data (US $ million)
September 30, 2014
December 31, 2013
141.4
70.0
8.7
18.0
1,093.5
1,026.2
1,343.2
1,250.1
Other current liabilities
14.8
10.3
Long term debt, current portion
12.9
5.4
Long term debt
544.4
528.0
Total partners’ capital
771.1
706.5
1,343.2
1,250.1
39.9%
45.6%
Cash & cash equivalents (1)
Other current assets
Vessels, net
Total Assets
Total liabilities & partners’ capital
Net Debt / Asset Value (charter attached) (2)
(1)
(2)
Includes restricted cash of $1.2 million as of September 30, 2014 and $34.6 million as of December 31, 2013.
Considers Clarksons’ charter attached values of owned vessels as of September 2014.
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Q3 2014 Cash Distribution
Cash Distribution of $0.4425 per unit for Q3 2014 ($1.77 annualized)
Record Date:
Payment Date:
November 7, 2014
November 10, 2014
Operating Surplus:
Common Unit Coverage:
Pro Forma Common Unit Coverage(1):
$25.0 million
0.73x
1.0x
Distribution:
$35.5 million
Tax efficient status – Distributions reported on Form-1099
Committed to minimum distribution of $1.77 per unit through 2015
(1) Adjusted to reflect full operation of the container vessels acquired in the second quarter, normalized revenues on hires of vessels received upfront and
distribution to units issued but equity not yet redeployed.
10
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Modern, Diverse Fleet
32 Vessels (3.3 million dwt)
Average age of combined fleet(1): 7.5 years
25 Dry Bulk Vessels
7 Container Vessels
2,661,386 dwt
50,400 TEU
8 Capesize
Vessels
14 Panamax
Vessels
3 Ultra-Handymax
Vessels
5 Vessels
6,800 TEU
2 Vessels
8,200 TEUs
1.4 million dwt
1.1 million dwt
0.2 million dwt
34,000 TEU
16,400 TEU
Average age of drybulk vessels:
7.4 years
Compared to
Industry average of 9.0 years (2)
Average age of container vessels:
8.2 years
Compared to
Industry average of 10.8 years (2)
(1) Navios Partners average age based on a dwt basis
(2) Source: Clarksons
11
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Portfolio of Industry Leading Charterers
Contracted Revenue
2015 Contracted Revenue by Charterer
Average Charter Duration: approx. 3.1 years
Bunge; 4.0% Exelon Corp.
(2) ; 5.1%
1-3 years
3-5 years
12.2%
Other; 10.9%
5-10 years
Yang Ming;
13.4%
14.9%
Rio Tinto; 4.5%
Cosco; 7.4%
Samsun Logix;
8.1%
HMM; 29.4%
72.9%
Hanjin; 11.5%
Korea Line
(1)
; 5.7%
Diversified customer base with
strong creditworthy counterparties
87.8% of contracted revenue is from
charters longer than 3 years
(1) In January 2011, Korea Line Corporation (“KLC”) filed for receivership. The charter was affirmed and will be performed by KLC on its original terms following an
interim suspension period during which NMM trades the vessel directly
(2) Ex Constellation Energy Group
12
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Staggered Charter Expirations (1)
Navios Pollux
Navios Soleil
Navios Hope
Navios Helios
Navios Gemini S
Navios Orbiter
Navios Alegria
Navios Sun
Navios Aldebaran
Navios Fantastiks
Navios Hyperion
Navios Felicity
Navios Harmony
Navios Prosperity
Navios Libra II
Navios Apollon
Navios Fulvia
Navios La Paix
Navios Joy
Navios Galaxy I
YM Utmost
YM Unity
Navios Sagittarius
Navios Aurora II
Navios Buena Ventura
Navios Luz
Navios Melodia
Hyundai Singapore
Hyundai Hong Kong
Hyundai Tokyo
Hyundai Shanghai
Hyundai Busan
$21,300 Nov 2014
$10,165 Nov 2014
$10,000
Dec 2014
$12,513
Dec 2014
$12,350
Feb 2015
$9,289
Feb 2015
$9,500
Feb 2015
$13,063
Feb 2015
$11,000
Mar 2015
$20,425
Mar 2015
4TC BPI
Apr 2015
$12,000
May 2015
$12,350
May 2015
$12,000+P/S
July 2015
$12,000+PS
Sep 2015
$12,500
Sept 2015
$50,588
Sept 2015
6TC BSI + 10%
Dec 2015
$19,000
June 2016
$21,937
$34,266
$34,266
$26,125
$41,325
$29,356+P/S
$29,356+P/S
$29,356+P/S
$30,119
$30,119
$30,119
$30,119
$30,119
2014
2015
2016
2017
99.2% revenue days covered in 2014
61.3% revenue days covered in 2015
Feb 2018
Aug 2018
Oct 2018
Nov 2018
Nov 2019
Oct 2020
Nov 2020
Sep 2022
Dec 2023
Dec 2023
Dec 2023
Dec 2023
Dec 2023
2018
2019
2020
(1) Daily charter-out rate net of commissions or settlement proceeds, where applicable. See fleet appendix for further detail.
13
2021
2022
2023
CONFIDENTIAL – DO NOT DISTRIBUTE
Efficient, Low Cost Operator
Average Daily Operating Costs / Vessel (including dry-docking)
(1)
 Opex is 21.3% less than the industry average
 Navios Partners benefits from fixed operational cost (2)
Pro Forma Combined Fleet
$7,261
$/Day
$7,000
$5,712
$6,000
$5,000
$4,000
Containership Fleet
Dry bulk Fleet
$10,000
$6,599
$6,000
$/Day
$/Day
$7,000
$5,107
$5,000
$4,000
$8,000
$9,436
$7,700
$6,000
Navios Average per Vessel
(1)
(2)
Source: Drewry Shipping Consultants – Annual Report 2013/2014
As per Management Agreement.
14
Industry Average per Vessel
CONFIDENTIAL – DO NOT DISTRIBUTE
GDP Growth Driven by Emerging Economies
8.5
6.5
%
4.7 4.4
3.3 3.3
4.5
5.0
3.8
2.5
1.4
0.5
1.8
-1.5
-3.5
Emerging and developing economies
World
IMF Latest Revisions of GDP Growth (%)
World GDP
Advanced economies GDP
Emerging markets GDP
Source: IMF, October 2014
Advanced economies
October 2014
July 2014
2014
3.3
3.4
2015
3.8
4.0
2014
1.8
1.8
2015
2.3
2.4
2014
4.4
4.6
2015
5.0
5.2
15
2.3
CONFIDENTIAL – DO NOT DISTRIBUTE
World Dry Bulk Trade 1980 - 2014
Upside:
India
China admitted
to the WTO
4,500
4,000
5.5%
Berlin wall falls
3,000
2,500
2.8%
1.1%
1,500
1,000
Forecast
2,000
Provisional
Trade (Million Tons)
3,500
500
0
1980
1982
1984
1986
Source: Drewry Shipping Consultants Ltd.
1988
1990
1992
1994
1996
16
1998
2000
2002
2004
2006
2008
2010
2012
2014
Global Iron Ore – Key Developments
 Low iron ore prices mean Chinese domestic ore will become uncompetitive,
resulting in substitution of higher quality imports for low quality domestic ores
 Increased steel production in China will also cause increased iron ore imports
Available Incremental Global Iron Ore
Due 2014 to 2018
700
(million tons)
600
652.6
590.1
Global Iron Ore Cost Curve
(62% Fe CFR China)
$180
Chinese Miners
$160
$140
492.6
500
$120
400
$100
322.1
10/23/14 Iron Ore Price: $80.00/T
$80
300
200
$60
171.8
$40
100
$20
$0
0
2014
2015
2016
Australia
Brazil
Africa
Source: China NBS, TSI, Bloomberg July 2014
2017
Canada
0%
2018
17
10%
20%
30%
40%
50%
60%
70%
80%
90% 100%
Chinese Urbanization & Steel Production
120
45
Stockpiles
Days of Inventory
Avg Days of Inventory
100
China's urbanization will continue to grow
40
1.6
35
1.4
30
1.2
60
Billions
25
20
40
15
20
0
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
July
Apr
Jan
Oct
Jul
Apr
Jan
2008
2009
2010
2011
2012
2013
1
76%
0.8
10
0.6
5
0.4
0
0.2
Days
Million Tons
80
0
49%
2014
Urban
Rural
Iron Ore
Steel Production
Million tons
Domestic Production
Imports
2006
580
YoY%
326
YoY%
421
YoY%
2007
707
22%
384
18%
488
16%
2008
785
11%
444
16%
500
2%
2009
873
11%
630
42%
567
13%
2010
1,065
22%
619
-2%
626
10%
2011
1,315
24%
687
11%
683
9%
2012
1,329
1%
745
9%
717
5%
2013
1,424
7%
820
10%
779
9%
2014: Sep YTD
1,108
8%
699
16%
614
5%
Sources: World Steel Association, World Bank,
National Bureau of Statistics of China/Mysteel, UN
18
It’s Not Just About Iron Ore…It’s Also About Coal
Indian Seaborne Coal Imports
Chinese Seaborne Coal Imports
(million tons)
250
(million tons)
300
2006 – 2014F CAGR = 21%
2009 – 2014F CAGR = 23%
250
200
200
150
150
100
100
50
50
0
2006 2007 2008 2009 2010 2011 2012 2013 2014F
Sources: Clarksons
2006
19
2007
2008
2009
2010
2011
2012
2013 2014F
… It’s About Grain, Too
China Grain Imports
Meat Consumption Per Capita:
China vs OECD
160
Coarse Grain Trade
Corn Trade
70
Barley
140
Wheat Trade
Rice Trade
15kg/capita
OECD
China
Million tonnes
50
60
2022/23f
2021/22f
2020/21f
2019/20f
2022
2018/19f
2020
2017/18f
2018
2016/17f
2016
2015/16f
2014
2014/15f
0
2013/14f
avg 2010-12
•
80
20
China’s meat
consumption/capita is
rising to OECD levels
40
•
100
40
45
•
Soybean Trade
2012/13
55
22kg/capita
Meat Consumption (kg /capita)
60
Soybean Oil Trade
120
65
Grain shipments, while small relative to iron ore and coal, account for a large amount of vessel
demand as measured in vessel days
China’s grain imports will more than double from 2012 to 2022 as the country improves its diet
and consumes more meat
It takes eight tons of grain to produce one ton of beef
Sources: Clarksons, FAO, USDA
20
Dry Bulk Orderbook
2014
• 9M YTD: 37.8 million actual DWT delivered; 57.8 million DWT projected (35% non-delivery by DWT-preliminary)
• 486 actual deliveries, 758 newbuilds projected (36% non-delivery by # of vessels -preliminary)
2013
• 62.4 million actual DWT delivered; 101.2 million DWT projected (38% non-delivery by DWT-provisional)
• 788 actual deliveries, 1,272 newbuilds projected (38% non-delivery by # of vessels -provisional)
2012
• 98.2 million actual DWT delivered; 138.9 million DWT projected (29% non-delivery by DWT)
• 1,192 actual deliveries, 1,665 newbuilds projected (28% non-delivery by # of vessels)
2011
• 95.9 million actual DWT delivered; 137.3 million DWT projected (30% non-delivery by DWT)
• 1,147 actual deliveries, 1,691 newbuilds projected (32% non-delivery by # of vessels)
2010
• 77.9 million actual DWT delivered; 125.6 million DWT projected (38% non-delivery by DWT)
• 957 actual deliveries, 1,528 newbuilds projected (38% non-delivery by # of vessels)
2009
• 43.1 million actual DWT delivered; 71.3 million DWT projected (40% non-delivery by DWT)
• 546 actual deliveries, 962 newbuilds projected (43% non-delivery by # of vessels)
Orderbook by year of delivery
140
Million DWT
120
Actual nondelivery
41.1mdwt
100
97.8
Before
non-delivery
101.2
Actual nondelivery
38.7mdwt
80
75.1
62.4
60
•
Estimated deliveries for 2014
are 50 million DWT assuming
33% non-deliveries
Before
non-delivery
30.9
2012
2013
2014
2013
2014
0
As of Jan 1, 2013
Source: Clarksons
2014 projected deliveries were
75.1 million DWT as of
January 2014 (before nondeliveries)
46.1
40
20
•
As of Jan 1, 2014
21
2015
Bulk Carrier Demolition(1)
Scrapping Dynamics
Aging Fleet + Restricted Credit + High Scrap Price =
Accelerated Scrapping(1)
Year
Total Demolition
(m dwt)
Demolition as %
of Fleet
• 2014 YTD scrapping ≈ 12.4 million DWT – 1.7% of fleet DWT
‒ Projected 2014 scrapping of 15.4 M DWT or 2.1% of fleet
• 2013 scrapping ≈ 22.2 million DWT – 3.3% of fleet DWT
• 2012 scrapping ≈ 33.6 million DWT – 5.5% of fleet DWT
• 2011 scrapping ≈ 22.2 million DWT – 4.3% of fleet DWT
• 2010 scrapping ≈ 6.4 million DWT – 1.4% of fleet DWT
• 2009 scrapping ≈ 10.6 million DWT – 2.5% of fleet DWT
1998
12.3
4.63%
1999
9.3
3.53%
2000
4.6
1.72%
2001
8.2
2.98%
2002
6.1
2.12%
2003
4.2
1.42%
2004
0.4
0.12%
2005
1.0
0.30%
2006
1.7
0.50%
2007
0.5
0.15%
2008
5.6
1.42%
2009
10.6
2.53%
2010
6.5
1.42%
2011
23.2
4.32%
2012
33.5
5.42%
2013
22.2
3.26%
2014 Through
10/17/14
12.4
1.71%
2014 Projected
15.6
2.15%
•
•
•
•
•
•
2014 YTD dry bulk fleet ≈ 750.4 million DWT - Non delivery ≈ 36%
2013 total dry bulk fleet ≈ 724.1 million DWT - Non delivery ≈ 38%
2012 total dry bulk fleet ≈ 684.9 million DWT - Non delivery ≈ 29%
2011 total dry bulk fleet ≈ 619.4 million DWT - Non delivery ≈ 30%
2010 total dry bulk fleet ≈ 538.9 million DWT - Non delivery ≈ 38%
2009 total dry bulk fleet ≈ 460.5 million DWT - Non delivery ≈ 40%
•
•
•
•
•
•
Net fleet growth for 2014
Net fleet growth for 2013
Net fleet growth for 2012
Net fleet growth for 2011
Net fleet growth for 2010
Net fleet growth for 2009
= 3.6%
= 5.7%
= 10.6%
= 14.9%
= 17.0%
= 10.0%
Dry Bulk Industry Age Profile(2)
(% DWT)
20+ Years
10%
5.7%
25+ Years
0%
9.4%
(69.6 m dwt)
3.6%
Total Dry Bulk Fleet
(1)
(2)
Source: Clarksons
Source: SSY Dry Bulk Forecaster, Oct 2014
22
CONFIDENTIAL – DO NOT DISTRIBUTE
Baltic Exchange Dry Index* 2002 – 2014
BDI 2002 to date
BDI 2013-2014 YTD
* As of 10/23/2014
23
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Company Highlights
Long-Term Charter
Coverage
with Strong
Counterparties
 Average charter duration is 3.1 years
 Staggered charter expirations minimize charter renewal risk
 Strong creditworthy counterparties (Bunge, Cargill, Cosco, Exelon, HMM, Rio
Tinto, Yang Ming, etc.)
Secured Revenue
Stream
 Approximately 8 years coverage on the container fleet
Solid Distribution
throughout the
Cycle
 26.4% increase in distributions since inception
Young, Growing
Fleet
Continued Access
to Capital Markets
 87.8% of contracted revenue is from charters longer than 3 years
 Committed to a minimum distribution of $1.77 through 2015
 More than quadrupled fleet capacity since Nov. 2007 IPO
 Average fleet age of 7.5 years (1)
 $1.3 billion in equity and public debt issued since May 2009
 ~ $830 million equity
 ~ $440 million public debt
(1)
Navios Maritime Partners fleet age weighted by DWT
24
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Appendix:
Container Market Overview
World Container Trade 1996-2015
m TEU
growth
200
25%
180
20%
160
15%
140
120
10%
100
5%
80
60
0%
40
-5%
20
World Container Trade
Source : Clarkson Research Services, IMF
Container Trade Growth %
27
World GDP Growth %
2015 (f)
2014 (f)
2013 (p)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
-10%
1996
0
Container Fleet Dynamics
•
•
•
•
•
•
9M 2014 scrapping ≈ 0.33 million TEU – 2.0% of fleet TEU
2013 scrapping ≈ 0.43 million TEU - 2.6% of fleet TEU
2012 scrapping ≈ 0.33 million TEU - 2.2% of fleet TEU
2011 scrapping ≈ 0.08 million TEU - 0.6% of fleet TEU
2010 scrapping ≈ 0.13 million TEU - 1.0% of fleet TEU
2009 scrapping ≈ 0.38 million TEU - 3.1% of fleet TEU
•
•
•
•
•
•
9M 2014 Total fleet ≈ 17.95 million TEU - Non delivery ≈ 5%
2013 Total fleet ≈ 17.12 million TEU - Non delivery ≈ 27%
2012 Total fleet ≈ 16.23 million TEU - Non delivery ≈ 21%
2011 Total fleet ≈ 15.32 million TEU - Non delivery ≈ 27%
2010 Total fleet ≈ 14.20 million TEU - Non delivery ≈ 38%
2009 Total fleet ≈ 12.96 million TEU - Non delivery ≈ 46%
•
•
•
•
•
•
Net fleet growth for 2014
Net fleet growth for 2013
Net fleet growth for 2012
Net fleet growth for 2011
Net fleet growth for 2010
Net fleet growth for 2009
5%
=
=
=
=
=
=
4.9%
5.4%
6.0%
7.9%
9.6%
5.9%
Age Profile – ships older than 20/25 years
4%
3%
3.5%
(625K TEU)
2.3%
2%
1%
1.2%
0%
20+ Years
(1)
Source: Clarksons
25+ Years
28
Container Demolition (1)
Year
Total Demolition Demolition as %
(000 TEU)
of Fleet
1998
87.3
2.30%
1999
52.7
1.24%
2000
15.5
0.35%
2001
36.2
0.74%
2002
68.1
1.24%
2003
25.7
0.42%
2004
7.8
0.12%
2005
1.9
0.03%
2006
23.8
0.29%
2007
20.9
0.22%
2008
101.2
0.93%
2009
378.4
3.09%
2010
130.4
1.01%
2011
77.6
0.55%
2012
332.5
2.17%
2013
428.8
2.64%
9M 2014
334.5
1.95%
2014 Projection
446.0
2.61%
Container Orderbook
2014
• 9M YTD: 1.239 million TEU projected, 1.173 million actual deliveries (5% non deliveries by TEU);
180 vessels expected, 154 delivered (15% non-delivery by number of vessels)
2013
• 1.840 million TEU projected, 1.336 million actual deliveries (27% non deliveries by TEU);
303 vessels expected, 201 delivered (34% non-delivery by number of vessels)
2012
• 1.578 million TEU projected, 1.253 million actual deliveries (21% non-delivery by TEU)
277 vessels expected, 203 delivered (27% non-delivery by number of vessels)
2011
• 1.652 million TEU projected, 1.211 million actual deliveries (27% non-delivery by TEU)
310 vessels expected, 191 delivered (38% non-delivery by number of vessels)
2010
• 2.242 million TEU projected, 1.389 million actual deliveries (38% non-delivery by TEU)
468 vessels expected, 265 delivered (43% non-delivery by number of vessels)
2009
• 2.036 million TEU projected, 1.106 million actual deliveries (46% non-delivery by TEU)
537 vessels expected, 276 delivered (49% non-delivery by number of vessels)
Orderbook by year of delivery
2,000
1,800
‘000 TEU
1,600
1,400
1,200
Before
non-delivery
1,840
Actual
nondelivery
325
thousand
TEU
Actual nondelivery
504 thousand
TEU
1,253
1,624
Before
non-delivery
1,546
1,253
1,039
1,000
800
600
400
2012
2013
2014
2013
2014
200
0
As of Jan 1, 2013
Source: Clarksons
As of Jan 1, 2014
29
2015
CONFIDENTIAL – DO NOT DISTRIBUTE
Appendix:
Navios Partners Fleet
CONFIDENTIAL – DO NOT DISTRIBUTE
Navios Partners Fleet – Dry Bulk
Owned Vessels
Vessels
Navios Apollon
Navios Soleil
Navios La Paix
Navios Gemini S
Navios Libra II
Navios Felicity
Navios Galaxy I
Navios Helios
Navios Hyperion
Navios Alegria
Navios Orbiter
Navios Hope
Navios Sagittarius
Navios Harmony
Navios Sun
Navios Fantastiks
Navios Aurora II
Navios Pollux
Navios Fulvia
Navios Melodia (7)
Navios Luz
Navios Buena Ventura
Navios Joy
Type
Ultra-Handymax
Ultra-Handymax
Ultra-Handymax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Panamax
Capesize
Capesize
Capesize
Capesize
Capesize
Capesize
Capesize
Capesize
Built
2000
2009
2014
1994
1995
1997
2001
2005
2004
2004
2004
2005
2006
2006
2005
2005
2009
2009
2010
2010
2010
2010
2013
Total – 23 Vessels
DWT
52,073
57,337
61,485
68,636
70,136
73,867
74,195
77,075
75,707
76,466
76,602
75,397
75,756
82,790
76,619
180,265
169,031
180,727
179,263
179,132
179,144
179,259
181,389
Charter Rate ($)(1)
12,500 (3)
10,165
6TC BSI + 10% (4)
12,350
12,000 (3)
12,000 (5)
21,937
12,513
4TC BPI (6)
9,500
9,289
10,000 (3)
26,125
12,350
13,063
20,425
41,325
21,300
50,588
29,356 (8)
29,356 (9)
29,356 (9)
19,000 (10)
Expiration Date(2)
09/2015
11/2014
12/2015
02/2015
09/2015
05/2015
02/2018
12/2014
04/2015
02/2015
02/2015
12/2014
11/2018
05/2015
02/2015
03/2015
11/2019
11/2014
09/2015
09/2022
11/2020
10/2020
06/2016
Dropdown
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
2,502,351
Chartered-In Vessels
Vessels
Navios Prosperity
Navios Aldebaran
Total – 2 Vessels
Type
Panamax
Panamax
Total Dry Bulk Fleet – 25 Vessels
(1)
(2)
(3)
(4)
Built
2007
2008
DWT
82,535
76,500
159,035
Charter Rate ($)(1)
12,000 (5)
11,000 (11)
Expiration Date(2)
07/2015
03/2015
Purchase Option
Yes
Yes
Dropdown
2,661,386 DWT
Daily charter-out rate net of commissions or settlement proceeds, where applicable
Assumed midpoint of redelivery by charterers
Profit sharing 50% on actual results above the base rates
The charter rate is based on the Supramax time charter Index plus 10% with a minimum rate of $9,500 net
per day
(5) Profit sharing: The owners will receive 100% of the first $1,500 in profits above the base rate and
thereafter all profits will be split 50% to each party.
31
(6) The charter rate is based on the Panamax time charter Index.
(7) In January 2011, Korea Line Corporation (“KLC”) filed for receivership. The charter was affirmed and will
be performed by KLC on its original terms following an interim suspension period during which Navios
Partners trades the vessel directly. Rate assumes amortization of payment of $13.3 million received
upfront covering the interim suspension period.
(8) Profit sharing 50% above $37,500/day based on Baltic Exchange Capesize TC Average
(9) Profit sharing 50% above $38,500/day based on Baltic Exchange Capesize TC Average
(10) The charterer has been granted an option to extend the charter for two optional years, the first at
$22,325 (net) per day and the second at $25,650 (net) per day
(11) Profit sharing: The owners will receive 100% of the first $2,500 in profits above the base rate and
thereafter all profits will be split 50% to each party.
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Navios Partners Fleet - Containers
Container Vessels
Vessels
Type
Built
TEU
Charter Rate ($)(1)
Expiration Date(2) (3)
Hyundai Hong Kong
Container
2006
6,800
30,119
12/2023
Hyundai Singapore
Container
2006
6,800
30,119
12/2023
Hyundai Busan
Container
2006
6,800
30,119
12/2023
Hyundai Shanghai
Container
2006
6,800
30,119
12/2023
Hyundai Tokyo
Container
2006
6,800
30,119
12/2023
YM Utmost
Container
2006
8,204
34,266
08/2018
Total – 6 Vessels
42,204
Container Vessels to be delivered
Vessels
Type
Built
TEU
Charter Rate ($)(1)
Expiration Date(2)
YM Unity
Container
2006
8,204
34,266
10/2018
Total Container Vessels Fleet – 7 Vessels of 50,408 TEU
Total Navios Partners Fleet – 32 Vessels
(1) Daily charter-out rate net of commissions
(2) Assumed midpoint of redelivery by charterers.
(3) The vessels are fixed on ten year charters with Navios Partners’ option to terminate after year 7.
32
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