Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q1 2022 Earnings Presentation
30 slides from Navios Maritime Partners Lp's earnings presentation, May 11, 2022
Slide 1: Navios Maritime Partners L.P. First Quarter 2022 Earnings Presentation
CONFIDENTIAL – DO NOT DISTRIBUTE Navios Maritime Partners L.P. (NYSE:NMM) First Quarter 2022 Earnings Presentation May 10, 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 TCE rates and Navios P
Slide 3: Leading US Publicly Listed Shipping Company
Leading US Publicly Listed Shipping Company DRAFT 54 Dry Bulk Vessels 6.6 million dwt Average age (1): 9.9 years vs. industry average: 11.3 years 24 Capesize Vessels 26 Panamax Vessels 4 Ultra-Handymax Vessels 4.3 million dwt 2.1 million dwt 0.2 million dwt 47 Containerships 236,422 TEU Average age
Slide 4: Selected Segment Data
Selected Segment Data DRAFT Drybulk Container ✓ 1 Tankers Total Fleet ships ➢ # of Vessels 54 47 49 150 ✓ Fleet Size ➢ Average age (yrs) 9.9 10.8 8.4 9.5 ➢ Capacity 6.6 mdwt 236,422 TEU 5.9 mdwt ➢ Vessel value ($mm)(1) (2) 1,210.0 3,306.7 1,246.4 5,763.1 ➢ Debt ($mm) 391.9 423.7 516.7 1,332.3 ✓ Asse
Slide 5: 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 6: Diversification: Optimizing Chartering Strategy
Diversification: Optimizing Chartering Strategy DRAFT • Containerships 99% Fixed – Containerships Historical Rates ➢ 99% of available days fixed ➢ Current rates at historic high • Dry bulk vessels 4,320 $121,885 $121,802 ➢ 24% of available days fixed ➢ Current rates ✓ 8% below 20-year average ✓ 84%
Slide 7: Diversification: Capturing Cyclical Opportunity
Diversification: Capturing Cyclical Opportunity DRAFT • Purchase and sale of vessels tailored to segment fundamentals ➢ ~ $1.3 billion investment in newbuilding program (22 vessels) ✓ Ten containerships – investments hedged through long-term charters ✓ Seven drybulk vessels – attractive prices compa
Slide 8: Recent Developments
Recent Developments DRAFT Q1 2022 Financial Results (1) In US$ millions Q1 2022 Revenue 236.6 EBITDA 126.1 Net Income 85.7 Agreed to acquire four newbuilding 115,000 dwt Aframax/LR2 vessels ▪ $58.5 million price per vessel plus $4.2 million in additional features • Vessels designed with the latest t
Slide 9: 9M 2022: Operating Free Cash Potential
9M 2022: Operating Free Cash Potential DRAFT Significant cash flow potential Available Open / Index ▪ Remaining 9M 2022 – 55.4% fixed Vessel Type Days 9M 2022 Days 9M 2022 • Contracted revenue exceeds total cash expenses by $69.3 million Capesize 5,476 3,854 • 15,829 open/index days generate additio
Slide 10: Fleet Profile
Fleet Profile DRAFT Continuous Fleet Renewal ▪ Opportunistic replacement of older vessels with newbuilding vessels • ~ $1.3 billion investment • 22 newbuilding vessels (17.2%(1) of fleet) to be delivered through Q1 2025 ✓ Ten containerships ✓ Seven dry bulk vessels ✓ Five tanker vessels • 24 vessels
Slide 11: $2.8 Billion Contracted Revenue
$2.8 Billion Contracted Revenue DRAFT Contracted Revenue by Segment Broad exposure to credit quality counterparties Dry Bulk, 3% Tanker, 18% Containership, 79% $2.2 Billion Contracted Revenue on Containerships 4.5%4.3% 5.5% Contracted revenue by year 5.8% 10.8% 44.2% (in $ million) $417 $2,187 Axis
Slide 12: Q1 2022 Earnings Highlights
Q1 2022 Earnings Highlights DRAFT Earnings Highlights (in $‘000 ) Q1 2022 Q1 2021(1) except per unit data Revenue 236,617 65,063 EBITDA 126,118 158,551 Adjusted EBITDA 126,118 33,659 (2) Net Income 85,665 136,679 Adjusted Net Income 85,665 11,787 (2) Adjusted Earnings per Common Unit basic 2.78 1.02
Slide 13: Balance Sheet
Balance Sheet DRAFT Selected Balance Sheet Data (amounts in $‘000 ) March 31, 2022 December 31, 2021 Cash & cash equivalents(1) 108,196 169,446 Other current assets 100,354 56,894 Vessels, net 2,819,311 2,852,570 Other non-current assets 556,541 544,389 Total Assets 3,584,402 3,623,299 Other current
Slide 14: Debt Profile
Debt Profile DRAFT Book Capital Structure March 31, 2022(1) Debt and Vessel Values as at March 31, 2022(2) (in $ million) ~ 4.0x coverage (in $ million) $5,369.9 Cash (1) 108.2 $975.2 Borrowings, net of deferred fees 1,319.8 Axis Title Tankers Partners' Capital $3,306.7 1,853.9 Containers Capitaliza
Slide 15: 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 16: Company Highlights
Company Highlights DRAFT ▪ Leading US-listed fleet of 150 vessels Strength in Scale ‒ ~ 1/3 of the fleet in each of the three segments: 54 dry bulk / 49 tankers / 47 containerships ‒ 3 sectors / 16 vessel types / 10+ end markets served ▪ Mitigates individual segment volatility Resiliency in ▪ Positi
Slide 17: Industry Overview
DRAFT Industry Overview
Slide 18: World Dry Bulk Trade
World Dry Bulk Trade DRAFT World GDP Growth 6.5 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 3.6 3.4 3.4 3.5 3.2 3.3 3.0 3.0 3.1 3.0 2.9 3.0 2.9 2.9 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 19: Major Commodities: Seaborne Ton Mile Trade Growth Due to War
DRAFT Major Commodities: Seaborne Ton Mile Trade Growth Due to War Iron Ore Coal Grains 1,594 1,226 561 1,592 1,221 553 547 1,177 1,581 M tons M tons M tons 2020 2021 2022 2020 2021 2022 2020 2021 2022 Iron Ore Trade Issues to Improve 2H22 Coal Imports Driven by Ton Mile Increase Food Security Drive
Slide 20: Dry Bulk Fleet Data
Dry Bulk Fleet Data DRAFT ▪ 2022 Expected net fleet growth ~ 2.2% ▪ 2023 Expected net fleet growth ~ 0.4% ▪ Total orderbook of 6.6% is one of the lowest on record ▪ Vessels over 20 years of age = 8.3% of the fleet Deliveries Removals Net Fleet Growth Year Actual Projected % non-delivery Year DWT % o
Slide 21: Container Industry Overview
DRAFT Container Industry Overview
Slide 22: 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% 3.0% 140 2.0% 5% 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 23: Container Fleet Data
Container Fleet Data DRAFT ▪ 2022 Expected net fleet growth ~ 3.5% ▪ 2023 Expected net fleet growth ~ 8.2% ▪ Orderbook skewed towards larger vessels • ~ 69% of containership orderbook is for vessels of 10,000+ TEU – ~ 66% of orderbook is for vessels of 13,000+ TEU; – ~ 3% of orderbook is for vessels
Slide 24: Tanker Industry Overview
DRAFT Tanker Industry Overview
Slide 25: 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 1.9% (1.9 mb/d) increase in world oil demand in 2022 ‒ 2022 oil demand of 99.4 mb/d expected to exceed 2021 demand of 97.5 mb/d but w
Slide 26: VLCC Fleet Data
VLCC Fleet Data DRAFT ▪ 2022 Expected net fleet growth ~ 2.9% ▪ 2023 Expected net fleet growth ~ 1.5% ▪ Current VLCC orderbook = 6.2% of the fleet by DWT (54 vessels) ▪ Vessels over 20 years of age* = 10.7% of the fleet by DWT (94 vessels) Deliveries Removals Net Fleet Growth % Non- Year Actual Proj
Slide 27: Product Tanker Fleet Data
Product Tanker Fleet Data DRAFT ▪ 2022 Expected net fleet growth ~ 1.1% ▪ 2023 Expected net fleet growth ~ 1.0% ▪ Current Product Tanker orderbook = 4.9% of the fleet by DWT (122 vessels) ▪ Vessels over 20 years of age* = 7.3% of current fleet Deliveries Removals Net Fleet Growth % non- Fleet period
Slide 28: Appendix
DRAFT Appendix
Slide 29: 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 30: www.navios-mlp.com
Navios Maritime Containers L.P. www.navios-mlp.com 30 20
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