Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q2 2022 Earnings Presentation
35 slides from Navios Maritime Partners Lp's earnings presentation, Jul 28, 2022
Slide 1: Navios Maritime Partners L.P. Second Quarter 2022 Earnings Presentation
CONFIDENTIAL – DO NOT DISTRIBUTE Navios Maritime Partners L.P. (NYSE:NMM) Second Quarter 2022 Earnings Presentation July 28, 2022 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements DRAFT This presentation contains and will contain 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, including completion of the acqu
Slide 3: Leading US Publicly Listed Shipping Company
DRAFT Leading US Publicly Listed Shipping Company – 188 Vessels 90 Dry Bulk Vessels(1) 10.6 million dwt Average age (2): 10.0 years vs. industry average: 11.4 years 36 Capesize Vessels 45 Panamax Vessels 9 Handymax - Handysize Vessels 6.5 million dwt 3.6 million dwt 0.5 million dwt 49 Containerships
Slide 4: Strength Through Diversification
Strength Through Diversification DRAFT Optimizing Leading to consistent Chartering Strategy PROFITABILITY Capturing Allowing Optimal Cyclical Opportunity CAPITAL ALLOCATION Countering Leading to Segment Specific Volatility BALANCE SHEET STRENGTH A diversified platform provides stable entity-level re
Slide 5: Selected Segment Data Pro Forma for Acquisition
Selected Segment Data Pro Forma for Acquisition DRAFT Drybulk ✓ 1 Containerships Tankers Total Fleet ➢ # of vessels 90 49 49 188 ✓ Fleet Size ➢ Average age (yrs) 10 10.4 8.6 9.6 ➢ Capacity 10.6 mdwt 251,822 TEU 5.9 mdwt ➢ Vessel value ($mm)(1) 2,080.6 2,790.4 1,516.4 6,387.4 ✓ Asset and Market Value
Slide 6: Acquired 36-Vessel Drybulk Fleet
Acquired 36-Vessel Drybulk Fleet DRAFT Acquired Fleet • 36 dry bulk vessels with 3.9 million DWT capacity ➢ average age of 9.6 years ➢ 26 owned vessels ➢ 10 charter- in vessels (with purchase options) Owned Charter in Total Capes 10 2 12 Panamax/Kamsarmax 13 6 19 Ultra Handymax / Handysize 3 2 5 Tot
Slide 7: Transaction Rationale
Transaction Rationale DRAFT Acquisition of fleet enabled in large part because of Navios Partners’ diversification • A young, known en-bloc fleet of 36 vessels at an opportune time in the drybulk market Quality Vessels • Scale – post transaction the drybulk and total fleet will increase by 67% and 2
Slide 8: Other Recent Developments
Other Recent Developments DRAFT H1 2022 Financial Results(1) In US$ millions Q2 2022 H1 2022 Revenue 280.7 517.3 EBITDA 163.5 289.6 Net Income 118.2 203.8 Acquired two newbuilding LNG (Dual Fuel) 7,700 TEU containerships ▪ $241.2 million acquisition price; Delivery – Q4 2024 ▪ ~ $370 million contrac
Slide 9: H2 2022: Operating Free Cash Potential
H2 2022: Operating Free Cash Potential DRAFT Open / Index Significant cash flow potential Vessel Type Days Available days 2023 ▪ H2 2022 – 28,763 available days, 51.3% fixed H2 2022 • Contracted revenue exceeds total cash expenses by $18.7 million Capesize 3,952 12,684 • 13,997 open/index days gener
Slide 10: Diversification in Action
Diversification in Action DRAFT Countering segment specific volatility(1) Asset value(2) volatility per segment Q2 2022 vs Q4 2021 Dry bulk Containerships Tankers Total Fleet Drybulk vessels : + 11% Containerships : - 4% +4% Tanker vessels : + 18% Total Fleet : + 4% - 4% $5,181 $5,406 Diversificatio
Slide 11: Fleet Renewal – Capturing Cyclical Opportunity
Fleet Renewal – Capturing Cyclical Opportunity DRAFT • Opportunistic replacement of older vessels with newbuilding vessels • Purchase and sale of vessels tailored to segment fundamentals • Newer, state-of-the-art vessels significantly more carbon efficient ➢ ~ $1.4 billion investment in newbuilding
Slide 12: $3.0 Billion Contracted Revenue
$3.0 Billion Contracted Revenue DRAFT Contracted revenue by segment Broad exposure to credit quality counterparties Dry Bulk, 3% Tanker, 16% Containership, 81% $2.5 billion contracted revenue on containerships 0.1% 2.8% 3.6% Contracted revenue per year 4.7% (in $ million) 4.8% 8.6% 38.1% $2,456 $708
Slide 13: Q2 and H1 2022 Earnings Highlights
Q2 and H1 2022 Earnings Highlights DRAFT Earnings Highlights (in $‘000 ) except per unit data Q2 2022 Q2 2021 H1 2022 H1 2021 Revenue 280,661 152,009 517,278 217,072 EBITDA 163,478 90,424 289,596 248,975(1) Net Income 118,160 99,913 203,825 236,592(1) Earnings per Common Unit basic 3.84 4.32 6.62 13
Slide 14: Balance Sheet
Balance Sheet DRAFT Balance Sheet Data (amounts in $‘000 ) June 30, 2022 December 31, 2021 Cash & cash equivalents(1) 174,624 169,446 Other current assets 118,106 56,894 Vessels, net 2,786,914 2,852,570 Other non-current assets 599,537 544,389 Total Assets 3,679,181 3,623,299 Other current liabiliti
Slide 15: Debt Profile
Debt Profile DRAFT 33.8% LTV at June 30, 2022(1)(2) Analysis of debt at June 30, 2022(2) (in $ million) ~ 3.0x coverage (in $ million) $2,156 $6,387 $827 $1,516 $1,170 $986 Axis Title $407 Tankers Axis Title $2,790 Tankers $588 $239 Containers $2,156 Containers $266 $827 $141 Dry bulk $922 $407 $2,0
Slide 16: Q2 2022 Debt Updates
Q2 2022 Debt Updates DRAFT $141 million new financing ▪ $55 million new facility concluded in Q2 2022 ➢ Refinance four Capesize vessels ➢ Interest: SOFR + 2.25% Margin ➢ Maturity: Q2 2027 (5 years duration / 7 years amortization profile) ▪ $86 million new facility(1) ➢ Finance acquisition of two new
Slide 17: ESG – Sustainability Through Sea Transport
ESG – Sustainability Through Sea Transport DRAFT Transoceanic shipping is the most carbon efficient mode of transport ▪ Shipping represents: • ~ 90% of world trade • ~ 3% of man-made greenhouse gas emissions Aspirational Goal: ▪ Net zero will safeguard air and water quality and avoid negative ecolog
Slide 18: Company Highlights
Company Highlights DRAFT ▪ Leading US-listed fleet of 188 vessels Strength in Scale ‒ 90 dry bulk / 49 tankers / 49 containerships ‒ 3 segments / 16 vessel types / 10+ end markets served ▪ Mitigates individual segment volatility Resiliency in ▪ Positioning to leverage fundamentals across sectors Div
Slide 19: Industry Overview
DRAFT Industry Overview
Slide 20: World Dry Bulk Trade
World Dry Bulk Trade DRAFT 6.5 World GDP growth 6.1 5.7 5.3 4.5 4.6 4.3 4.4 4.4 4.4 4.3 4.3 4.1 3.9 3.9 3.9 3.9 3.7 3.7 3.7 3.4 3.4 3.5 3.2 3.3 3.0 3.1 3.2 2.9 3.0 3.0 2.9 2.9 3.0 2.4 2.6 2.5 2.7 2.6 2.4 2.2 2.0 1.9 1.9 2.0 1.9 1.8 1.4 1.5 0.6 0.4 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 19
Slide 21: Coal – Seaborne Imports Boosted by Ton Mile Increase
Coal – Seaborne Imports Boosted by Ton Mile Increase DRAFT Coal trade heavily impacted by the war in Ukraine Seaborne coal trade ▪ Surge in gas prices and uncertain supply led European countries to reactivate coal fired power plants 1st Half 2nd Half • 7% expected increase in European seaborne coal
Slide 22: Iron Ore - Europe and Asia (Ex-China) Supporting Trade
DRAFT Iron Ore - Europe and Asia (Ex-China) Supporting Trade ▪ Seaborne iron ore import growth from Europe and Asia (Ex-China) H1 vs H2 total seaborne iron ore projections should offset Chinese slow down • 4% increase in Asia (Ex-China) imports (10 million MT) 1st Half 2nd Half ▪ 2% increase in Euro
Slide 23: Grains – Ton Mile Growth Offsets Volume Reduction
Grains – Ton Mile Growth Offsets Volume Reduction DRAFT ◼ Seaborne grain trade has been adversely effected by the war in Ukraine ◼ Trade readjustments will result in shifting trade patterns towards long-haul routes ▪ Trade volume is expected to decrease by 2.8% in 2022 but expected to increase 4.2%
Slide 24: Dry Bulk Fleet Data
Dry Bulk Fleet Data DRAFT ▪ 2022E net fleet growth ~ 2.7% ▪ 2023E net fleet growth ~ 0.7% ▪ Total orderbook of 7.1% is one of the lowest on record ▪ Vessels over 20 years of age = 8.2% of the fleet Deliveries Removals Net fleet growth Year Actual Projected % non-delivery Year DWT % of fleet Year DWT
Slide 25: Container Industry Overview
DRAFT Container Industry Overview
Slide 26: World Container Trade 1996-2022
World Container Trade 1996-2022 DRAFT m TEU 1996 – 2021 CAGR = 6.2% growth 220 13.7% 15% 200 7.4% 10% 180 4.9% 6.3% Million TEU 5.6% 4.3% 160 5.0% 4.5% 140 2.0% 5% 0.7% 120 3.3% 0% 100 2.0% 80 -5% 60 -1.3% -9.6% 40 -10% 20 0 -15% 2021 P 2022 F 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2
Slide 27: Containership Fleet Data
Containership Fleet Data DRAFT ▪ 2022E net fleet growth ~ 3.4% ▪ 2023E net fleet growth ~ 7.4% ▪ Current orderbook=27.6% of the fleet (by TEU) skewed towards larger vessels: ▪ ~ 68% of orderbook is for vessels of 10,000+ TEU – ~ 64% of orderbook is for vessels of 13,000+ TEU; – ~ 4% of orderbook is
Slide 28: Tanker Industry Overview
DRAFT Tanker Industry Overview
Slide 29: Global Oil Demand
Global Oil Demand DRAFT 40+ Year global oil demand and GDP growth 10 World GDP Oil Demand (IEA) 5 0 -5 -10 ▪ In spite of Russian invasion of Ukraine, IEA still sees a 1.8% (1.7 mb/d) increase in world oil demand in 2022 ‒ 2022 oil demand of 99.2 mb/d expected to exceed 2021 demand of 97.5 mb/d but w
Slide 30: VLCC Fleet Data
VLCC Fleet Data DRAFT ▪ 2022E net fleet growth ~ 3.7% ▪ 2023E net fleet growth ~ 1.3% ▪ Current VLCC orderbook = 4.6% of the fleet by DWT (41 vessels) ▪ Vessels over 20 years of age* = 10.5% of the fleet by DWT (93 vessels) Deliveries Removals Net Fleet Growth % Non- Year Actual Projected Year DWT %
Slide 31: Product Tanker Fleet Data
Product Tanker Fleet Data DRAFT ▪ 2022E net fleet growth ~ 1.3% ▪ 2023E net fleet growth ~ 1.5% ▪ Current Product Tanker orderbook = 5.1% of the fleet by DWT (122 vessels) ▪ Vessels over 20 years of age* = 7.2% of current fleet Deliveries Removals Net Fleet Growth % non- Fleet period Year Actual Pro
Slide 32: Appendix
DRAFT Appendix
Slide 33: Acquired Fleet
Acquired Fleet DRAFT Vessel Type Dwt Yard Year Vessel Type Dwt Yard Year built built Owned Vessels Chartered-in Fleet with purchase options Navios Etoile Capesize 179,234 Sungdong S.B. 2010 Capesize - Navios Felix 181,221 Imabari SB 2016 Navios Happiness Capesize 180,022 Daewoo S.B. 2009 scrubber fi
Slide 34: Definitions
Definitions DRAFT EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described under “Earnings Highlights”. Navios Partners uses
Slide 35: www.navios-mlp.com
Navios Maritime Containers L.P. www.navios-mlp.com 35 20
Navios Maritime Partners — Q2 2022 Earnings Presentation on 6ix