Navios Maritime Partners Lp · NYSE:NMM

Navios Maritime Partners Lp — Q4 2020 Earnings Presentation

37 slides from Navios Maritime Partners Lp's earnings presentation, Mar 24, 2021

  1. Slide 1: Fourth Quarter 2020 Earnings Presentation

    CONFIDENTIAL – DO NOT DISTRIBUTE (NYSE: NMM) Fourth Quarter 2020 Earnings Presentation March 24, 2021

  2. Slide 2: Forward-Looking Statements

    CONFIDENTIAL – DO NOT DISTRIBUTE Forward-Looking Statements This presentation contains 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 Navios Partne

  3. Slide 3: Definitions

    CONFIDENTIAL – DO NOT DISTRIBUTE Definitions EBITDA represents net income/ (loss) attributable to Navios Partners’ unitholders before interest and finance costs, before depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA b

  4. Slide 4: Proforma Structure

    CONFIDENTIAL – DO NOT DISTRIBUTE Proforma Structure General Partner Common Unitholders 2% Interest 98% Limited Partner Interests Navios Maritime Partners LLP NYSE: NMM 85 Vessels 49 Dry Bulk Vessels 36 Containerships 5.6 million dwt 182,386 TEU 18 Capesize 27 Panamax 4 Ultra-Handymax 9 Neo Panamax 2

  5. Slide 5: Premiere Dry Cargo Shipping Platform

    CONFIDENTIAL – DO NOT DISTRIBUTE Premiere Dry Cargo Shipping Platform  Top-10 publicly listed dry cargo fleet(1) Large, Diverse  85-vessel fleet Fleet  49 drybulk vessels  36 containership vessels  ~ $900 million of contracted revenue  Contracted revenue > total expenses of the full fleet by C

  6. Slide 6: Recent Developments

    CONFIDENTIAL – DO NOT DISTRIBUTE Recent Developments Q4 Financial Results: Adjusted Adjusted Adjusted $35.5 million $12.8 million $1.12 EBITDA(1) Net Income (1) EPU (1) NMCI Unitholders approve merger Merger approved on March 24, 2021 and expected to close on March 31, 2021 Post merger: ~ 19.7 milli

  7. Slide 7: Combined Company Highlights

    Combined Company Highlights  Contracted revenue for 2021 exceeds fleet  Potential significant free cash expenses by $12.6 million (1) generation  Remaining 9,879 open / index days generate additional free cash  43.5% Combined net debt/book  Strong balance sheet with low capitalization leverage

  8. Slide 8: World GDP Growth: Highest in 50 years

    CONFIDENTIAL – DO NOT DISTRIBUTE World GDP Growth: Highest in 50 years 2021 GDP Growth expected to be the highest since 1973 6.5 World GDP Growth 5.7 5.5 5.3 4.5 4.6 4.3 4.4 4.4 4.4 4.3 4.1 4.3 3.9 3.9 3.9 3.9 3.7 3.7 3.7 3.4 3.5 3.3 3.4 3.2 3.1 2.9 3.0 3.0 3.0 2.9 2.9 3.0 2.6 2.7 2.4 2.2 2.5 2.6 2.

  9. Slide 9: FY 2021: Operating Cash Flow Potential

    CONFIDENTIAL – DO NOT DISTRIBUTE FY 2021: Operating Cash Flow Potential  29,026 available days for FY 2021 • 19,147 days (66.0%) fixed at average $18,612 net per day • 9,879 days (34.0%) open / index Contracted revenue exceeds total expenses by $12.6 million $23,549 $18,612 Average contracted Curre

  10. Slide 10: Combined Liquidity

    CONFIDENTIAL – DO NOT DISTRIBUTE Combined Liquidity December 31, 2020 (in US $ thousand) December 31, 2020 NMM NMCI Combined Cash (1) 30,728 7,573 38,301 Borrowings, net of deferred fees 486,857 232,159 719,016 Partners' Capital 654,830 191,545 846,375 Capitalization 1,141,687 423,704 1,565,391 Net

  11. Slide 11: Q4 and FY 2020 Earnings Highlights

    CONFIDENTIAL – DO NOT DISTRIBUTE Q4 and FY 2020 Earnings Highlights (in $ million) except active vessels, available days and TCE achieved Q4 2020 Q4 2019 FY 2020 FY 2019 Time charter revenue 69.2 61.3 226.8 219.4 EBITDA (27.4) (38.2) 21.4 37.1 Adjusted EBITDA 35.5 (1) 33.7(2) 99.8(4) 120.0(5) Net Lo

  12. Slide 12: Balance Sheet

    CONFIDENTIAL – DO NOT DISTRIBUTE Balance Sheet Selected Balance Sheet Data (in $ million) December 31, 2020 December 31, 2019 Cash & cash equivalents (1) 30.7 30.4 Other current assets 30.1 45.6 Vessels, net 1,041.1 1,062.2 Other non-current assets 105.4 115.3 Total Assets 1,207.3 1,253.5 Other curr

  13. Slide 13: Top-10 Publicly Listed Dry Cargo Fleet

    CONFIDENTIAL – DO NOT DISTRIBUTE Top-10 Publicly Listed Dry Cargo Fleet 85 Vessels (7.8 million dwt) Average age of combined fleet(1): 10.7 years 49 Dry Bulk Vessels 5.6 million dwt Average age : 9.8 years(1), Industry average 10.6 years 18 Capesize Vessels 27 Panamax Vessels 4 Ultra-Handymax Vessel

  14. Slide 14: Fleet Update

    CONFIDENTIAL – DO NOT DISTRIBUTE Fleet Update Agreed to acquire six drybulk vessels with an average age of ~ 2.0 years • Agreement for three Japanese newbuilding Capesize long-term bareboat charter-in vessels  $51.5 million implied price per vessel  15-year duration; Capital flexibility through a

  15. Slide 15: 2021 Chartering Strategy

    CONFIDENTIAL – DO NOT DISTRIBUTE 2021 Chartering Strategy Chartering strategy focusing on different sector fundamentals • Drubulk vessels • 53.5% market exposure days positioned for stronger market • Containerships • 89.4% fixed days capitalizing on market strength Dry Bulk Containerships Total Flee

  16. Slide 16: ESG – Sustainability through Sea Trade

    CONFIDENTIAL – DO NOT DISTRIBUTE ESG – Sustainability through Sea Trade Transoceanic shipping is the most carbon efficient mode of transport  Shipping represents:  ~ 90% of world trade  ~ 3% of man-made greenhouse gas emissions  Net zero will safeguard air and water quality and avoid negative ec

  17. Slide 17: Industry Overview

    CONFIDENTIAL – DO NOT DISTRIBUTE Industry Overview

  18. Slide 18: World Seaborne Dry Bulk Trade and GDP Growth

    CONFIDENTIAL – DO NOT DISTRIBUTE World Dry Bulk Trade - 0.1% World GDP - 3.5% - 3.2% (111) MT Dry Bulk trade - 1.9% (101) MT 6 26% Billion tons World Seaborne Dry Bulk Trade China admitted to 22% 5 World GDP Growth (RHS) the WTO 18% 4 Berlin wall falls 14% 3 10% 6% 2 2% 1 -2% 0 -6% IMF GDP Growth (%

  19. Slide 19: Dry Bulk Demand Up – Minimal Supply Growth

    CONFIDENTIAL – DO NOT DISTRIBUTE Dry Bulk Demand Up – Minimal Supply Growth Higher trade growth in 2021 vs 2020 Demand up Net fleet growth down 2020 - 2021 MT 2020 2021 1,544 Demand Net Fleet Growth +41 MT +56 MT +2.7% +4.8% +9 MT 1,221 1,503 2.6% +1.8% 3.7% 3.7% 1,1 65 514 523 -1.9% Grains Coal Iro

  20. Slide 20: Post Pandemic Growth Fueled by Iron Ore

    CONFIDENTIAL – DO NOT DISTRIBUTE Post Pandemic Growth Fueled by Iron Ore World Seaborne Iron Ore Trade 2020-2021F Chinese Seaborne Iron Ore Imports 1,400 Million tons 2020 2021F YoY% Δ MT 1,200 2008 – 2020 CAGR = 8% 1,000 Total World Trade 1,503 1,544 2.7% 41 800 Of which: 600 400 Australia 871 886

  21. Slide 21: Asian Coal Imports to Rebound in 2021

    CONFIDENTIAL – DO NOT DISTRIBUTE Asian Coal Imports to Rebound in 2021  Asian coal(1) imports grew 4% CAGR 2011 to 2020; and are expected to grow by 4.3% in 2021 after decreasing 6.8% in 2020  The 2020 decrease was mainly attributed to India shrinking imports 13% and China’s 8% decrease  Indian i

  22. Slide 22: Food Security Drives Demand for Grain

    CONFIDENTIAL – DO NOT DISTRIBUTE Food Security Drives Demand for Grain Seaborne Grain Trade Seaborne Grain Exports 2020-21 600 Million tons 2020 P YoY% Δ MT 2021 F YoY% Δ MT 2008 – 2020 CAGR = 5.1% (million tons) Total World Trade 513.6 7.7% 36.6 523.0 1.8% 9.4 500 Of which: US 131.5 25.0% 26.3 141.

  23. Slide 23: Dry Bulk Orderbook for 2021 and Beyond

    CONFIDENTIAL – DO NOT DISTRIBUTE Dry Bulk Orderbook for 2021 and Beyond MDWT # Vessels Actual Projected Non-Delivery % Actual Projected Non-Delivery % 2021 Feb YTD 7.6 9.9 23% 71 111 36% 2020 48.9 55.6 12% 486 567 14% 2019 41.6 42.4 2% 443 443 0% 2018 28.5 34.3 17% 301 373 19% 2017 38.5 58.1 34% 463

  24. Slide 24: Dry Bulk Net Fleet, Age Profile + Historical Scrapping

    CONFIDENTIAL – DO NOT DISTRIBUTE Dry Bulk Net Fleet, Age Profile + Historical Scrapping Deliveries Removals Net Fleet Growth Year Actual Projected % non-delivery Year DWT % of fleet Year DWT % of Fleet Fleet period end 2021 YTD 7.6 M 9.9 M 23% 2021* 3.4 M 0.4% 2021(1) 5.5 M 0.6% 917.4 M 2020 48.9 M

  25. Slide 25: Container Industry Overview

    CONFIDENTIAL – DO NOT DISTRIBUTE Container Industry Overview

  26. Slide 26: Favorable Demand/Supply Fundamentals Drive Rates Higher

    CONFIDENTIAL – DO NOT DISTRIBUTE Favorable Demand/Supply Fundamentals Drive Rates Higher ■ Containership demand growth of 5.7% in 2021 and 3.7% in 2022 expected to exceed supply as pent up demand, restocking and increases in consumer demand for goods support increasing traded containerized cargo vol

  27. Slide 27: Trading Patterns Favor NMM Container Fleet

    CONFIDENTIAL – DO NOT DISTRIBUTE Trading Patterns Favor NMM Container Fleet ■ SCFI box rates have climbed 222% from April to Mar 2021 SCFI Comprehensive Index spurred by the early restart of the Chinese economy and from 3,000 continuing demand for consumables and pandemic related SCFI 2,500 supplies

  28. Slide 28: www.navios-mlp.com

    CONFIDENTIAL – DO NOT DISTRIBUTE www.navios-mlp.com

  29. Slide 29: Appendix: Navios Partners Fleet

    CONFIDENTIAL – DO NOT DISTRIBUTE Appendix: Navios Partners Fleet

  30. Slide 30: Navios Partners Fleet – Dry Bulk

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Partners Fleet – Dry Bulk Ultra-Handymax Owned Vessels Vessels Type Built DWT Charter Rate ($)(1) Profit Share(2) Expiration Date(3) Navios La Paix Ultra-Handymax 2014 61,485 - 111% average BSI 58 10TC 02/2022 Navios Christine B Ultra-Handymax 2009 58,058 9,54

  31. Slide 31: Navios Partners Fleet – Dry Bulk

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Partners Fleet – Dry Bulk Panamax Owned Vessels Vessels Type Built DWT Charter Rate ($)(1) Profit Share(2) Expiration Date(3) Navios Anthos Panamax 2004 75,798 9,595 - 01/2022 Navios Azalea Panamax 2005 74,759 11,400 - 05/2021 Navios Camelia Panamax 2009 75,16

  32. Slide 32: Navios Partners Fleet – Dry Bulk

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Partners Fleet – Dry Bulk Panamax (continued) Owned Vessels Vessels Type Built DWT Charter Rate ($)(1) Profit Share(2) Expiration Date(3) Navios Harmony Panamax 2006 82,790 8,740 - 04/2021 Navios Libertas Panamax 2007 75,511 8,550 - 04/2021 Navios Prosperity I

  33. Slide 33: Navios Partners Fleet – Dry Bulk

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Partners Fleet – Dry Bulk Capezise Owned Vessels Vessels Type Built DWT Charter Rate ($)(1) Profit Share(2) Expiration Date(3) Navios Beaufiks (4) Capesize 2004 180,310 - 100% average BCI 5TC 04/2021 Navios Symphony Capesize 2010 178,132 - 100.5% average BCI 5

  34. Slide 34: Navios Partners Fleet – Dry Bulk

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Partners Fleet – Dry Bulk Bareboat Charter-in Bareboat Charter-in Vessels Vessels Type Built DWT Charter Rate ($)(1) Profit Share (2) Expiration Date(3) 10,638 - 03/2021 Navios Libra Panamax 2019 82,011 23,070 - 06/2021 - 125% average BPI 4TC 09/2021 Total – 1

  35. Slide 35: Navios Partners Fleet - Containerships

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Partners Fleet - Containerships Containerships Vessels Type Built TEU Charter Rate ($)(1) Expiration Date(2) Protostar N Containership 2007 2,741 17,775 07/2022 Harmony N Containership 2006 2,824 8,181 07/2021 30,119 12/2023 Hyundai Hong Kong Containership 200

  36. Slide 36: Navios Containers Fleet

    CONFIDENTIAL – DO NOT DISTRIBUTE Navios Containers Fleet Vessel Name TEU Built Employment Exp. Date (2) Charter Rate ($) (1) Navios Summer (3) 3,450 2006 TC May-2022 16,960 Navios Verano (3) 3,450 2006 TC May-2021/ May 2023 9,036 / 22,713 Navios Spring (3) 3,450 2007 TC Jul-2021 7,961 Navios Amarant

  37. Slide 37: www.navios-mlp.com

    CONFIDENTIAL – DO NOT DISTRIBUTE www.navios-mlp.com

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