Navios Maritime Holdings Inc Perp Pfd Shs Sp Amer Dep Recpt Level 3 Repr 1/100th Perp Pfd Shs Ser G · OTC:NMPGY
Navios Maritime Holdings Inc Perp Pfd Shs Sp Amer Dep Recpt Level 3 Repr 1/100th Perp Pfd Shs Ser G — Navios Maritime Holdings — Q3 2016 Earnings Presentation
38 slides from Navios Maritime Holdings Inc Perp Pfd Shs Sp Amer Dep Recpt Level 3 Repr 1/100th Perp Pfd Shs Ser G's earnings presentation, Nov 22, 2016
Slide 1: Navios Maritime Holdings Inc. Q3 2016 Earnings Presentation
Navios Maritime Holdings Inc. Q3 2016 Earnings Presentation November 22, 2016
Slide 2: Forward Looking Statements
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 2016 and 2017 cash flow generation, future co
Slide 3: Company Highlights
Company Highlights • 66 (1) controlled vessels; 40 owned / 26 chartered-in (20 with purchase options) Large, Modern Fleet • Modern high-quality fleet with an average age of 7.8 years (vs. ~ 8.6 year industry average) Scale in a Fragmented Industry • Diverse fleet – 21 Capesize, 23 Panamax, 20 Ultra
Slide 4: Navios Group Structure
Navios Group Structure Navios Maritime Holdings Inc . (NYSE: NM) • Controls 66-vessel dry bulk fleet: 40 owned and 26 long term chartered-in vessels. • Global brand: Flexible business model • Stable cash flow from charter out contracts and distributions from subsidiaries • 2015 EBITDA: $133.4 millio
Slide 5: Strength through Diversification
Strength through Diversification Navios • 36 vessels (8 VLCCs & 28 product and chemical tankers) Maritime • VLCC spot rate: YTD 2016 = $46,230 Acquisition 2015 = $64,846 Share of Navios Group Corporation 2014 = $30,015 Enterprise Value (1) (NYSE: NNA) • 2016 9M Net income: $44.8 million; EBITDA: $14
Slide 6: Recent Developments
Recent Developments Third quarter performance ‒ $38.5 million Q3 Adjusted EBITDA ‒ $163.3 million of cash as of September 30, 2016 ‒ ~ 85% of total debt has no LTV maintenance requirement Operating efficiencies ‒ Scale provides significant operating leverage (cash savings through cost control) ‒
Slide 7: Series G and Series H ADS Exchange Program
Series G and Series H ADS Exchange Program Series G and Series H ADS (Preferred Stock): ‒ $61.1 million acquired at 28% of par • 2.44 million ADSs tendered (~36% of outstanding 6.8 million ADSs) • Eliminated $5.3 million in annual dividends (& $4.0 million of accrued dividends) ‒ Consideration - c
Slide 8: Bond Repurchases
Bond Repurchases ‒ Acquired $58.9 million of par 8.125% Senior Notes due 2019 ‒ $30.5 million cash used to fund purchases • Annual interest savings: $4.8 million • Interest savings through bond maturity: $11.2 million; 30% ROI • Positive NAV impact = $28.4 million ($0.26/share) Amount Outstanding An
Slide 9: Reducing Bank Debt Cash Requirements
Reducing Bank Debt Cash Requirements Reducing 15-month cash requirements by $13.4 million (Q4 2016 through end 2017) ‒ $11.4 million positive cash effect expected in 2017 • $5.2 million deferral of loan amortization payments (from 2017 to 2018) • $6.2 million amortization savings from debt that is
Slide 10: Reducing Breakeven of Charter-in Fleet
Reducing Breakeven of Charter-in Fleet We chartered-in seven vessels for two years at average charter rates of − $6,827 per day for 2017 − $7,575 per day for 2018 − Reduction in average charter-in cost: − $2,220 per day in 2017 − $2,107 per day in 2018 − Additional Chartered-in Vessels: two Ca
Slide 11: Impact of Initiatives on 2017 Cash Breakeven
Impact of Initiatives on 2017 Cash Breakeven $1,274 $231 $530 $513 $12,258 $10,984 Initial Bond Debt cash Charter– Current Cash Cash Repurchases requirements* in fleet Breakeven Breakeven $1,274 expected reduction in daily cash breakeven * Note: Subject to completion of approval process by certain f
Slide 12: Chartering – Performance vs. Q3 YTD Spot Market
Chartering – Performance vs. Q3 YTD Spot Market $41.3 million additional charter revenue vs. average spot market through Q3 2016 (1) Capesize Panamax Handymax $12,000 $9,000 $8,327 $7,000 $10,363 $8,000 $6,500 $10,000 $7,000 $6,000 $5,578 10% $8,000 $6,000 $4,591 $5,500 $5,874 76% $5,000 81% $5,006
Slide 13: NM: Strong Liquidity Position
NM: Strong Liquidity Position ($ million) September 30, 2016 September 30, 2016 Cash (1) 163.3 Cash (1) 163.3 Debt (2) (5) 1,647.2 Undrawn financing facility (4) 8.3 Shareholders' Equity (3) 929.1 Undrawn NNA loan facility 20.0 Capitalization (3) 2,576.3 Net Debt / Capitalization 57.6% Total Liquidi
Slide 14: Cost Structure After Cost Reduction Initiatives
Cost Structure After Cost Reduction Initiatives Revenue Cost $11,529 (3) $10,671 $10,984 Average rates of fixed $8,836 (3) base rates $592 $713 Effect of current rates on open days (3)(4) $3,853 $3,421 Capital Repayments $266 35.2%(2) Fixed $287 93.2% (1) Fixed Interest Expense $9,341 $7,829 $5,939
Slide 15: One of the Largest US-listed Dry Bulk Fleets
One of the Largest US-listed Dry Bulk Fleets Navios Holdings Controls 66(1) Vessels (6.7 million DWT) 59 Vessels Operating (6.0 million DWT) Average Age: 7.8 years 21 Capesize 23 Panamax 20 Ultra 2 Handysize Handymax 13 Vessels 12 Vessels 14 Vessels 1 Vessel 40 Owned 2.32 million DWT 0.93 million DW
Slide 16: Leveraging Scale
Leveraging Scale $36.1 million (1) annual opex savings “Opex”(2) one of the lowest in the industry Opex (in $/day) NM: Dry Bulk Fleet Navios Group has developed significant efficiencies from in- house capabilities and economies of scale ‒ Ability to hire and retain skilled professionals for te
Slide 17: Industry Overview
Industry Overview
Slide 18: World GDP Growth
World GDP Growth 8.5 6.5 4.6 4.6 4.5 4.0 4.2 % 3.4 3.2 3.1 3.4 2.5 1.9 2.1 1.6 1.8 0.5 -1.5 -3.5 2016F 2017F 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Emerging and developing economies World economies Advanced economies IMF Latest Revisi
Slide 19: Urbanization Drives Demand for Iron Ore
Urbanization Drives Demand for Iron Ore Chinese Iron Ore Imports World Seaborne Iron Ore Trade 2014-17F 1,200 2007 – 2015P CAGR = 12% 1,000 Million tons 2014 2015 2016F YoY% 2017F YoY% 800 (million tons) Total World Trade 1,337 1,363 1,430 4.9% 1,483 3.7% 600 Of which: 400 Australia 717 767 809 5.5%
Slide 20: Chinese and Indian Coal: Production and Imports
Chinese and Indian Coal: Production and Imports (million tons) 600 Chinese plus Indian Seaborne Coal Imports 2006 – 2015P CAGR = 19% 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 P 2016 Annualized COMBINED CHINESE COAL INDIAN COAL IMPORTS Domestic Production Seaborne Import
Slide 21: Protein consumption increase to drive Chinese soybean imports
Protein consumption increase to drive Chinese soybean imports China vs OECD meat consumption USDA Soybean Import Forecast to 2025 75 70 65 Chart Title 13 160.0 kg/capita 140.0 60 22 18 120.0 kg/capita kg/capita 100.0 55 80.0 60.0 50 40.0 20.0 45 0.0 40 China OECD Chinese soybean imports will grow
Slide 22: Minimal Fleet Growth
Minimal Fleet Growth Projected scrapping for 2016 expected to be close to record levels Negative growth for Panamax; minimal growth for Capesize vessels 2016 YTD 60 40 30.5 28.3 32.2 Scrapping on pace for 32 20 MDWT in 2016 0 30.5 mdwt scrapped in 2015 2015 Scrapping Nov 16, 2016 2016 Annualized
Slide 23: Orderbook for 2016 and Beyond
Orderbook for 2016 and Beyond MDWT # Vessels Actual Projected Non-Delivery % Actual Projected Non-Delivery % 10M 2016 42.8 81.9 48% 506 974 48% 2015 49.3 85.1 42% 659 1,104 40% 2014 48.2 75.1 36% 614 987 38% 2013 62.9 101.2 38% 808 1,272 36% 2012 100.4 138.9 28% 1,248 1,665 25% Orderbook (by year of
Slide 24: Net Fleet, Age Profile + Historical Scrapping
Net Fleet, Age Profile + Historical Scrapping Deliveries Demolition 42.8 million actual DWT delivered; 81.9 million DWT Year Total Demolition (m dwt) Demolition as % of Fleet 2016 10M projected (48% non-delivery by DWT-preliminary) 1998 12.3 4.62% 49.3 million actual DWT delivered; 85.1 million DWT
Slide 25: NM Q3 & Nine Months 2016 Highlights
NM Q3 & Nine Months 2016 Highlights Earnings Highlights Three months Three months Nine months Nine months ended ended Y-O-Y ended ended Y-O-Y ($ ‘000 except per share data) September 30, September 30, Variance September 30, September 30, Variance 2016 2015 2016 2015 Revenue 113,087 130,955 (14%) 320
Slide 26: NM Balance Sheet
NM Balance Sheet Selected Balance Sheet Data (in $'000) September 30, 2016 December 31, 2015 Cash & cash equivalents (incl. restricted cash) 163,326 176,892 Other current assets 132,844 126,067 Deposits for asset acquisitions 116,424 73,949 Vessels, port terminal and other fixed assets, net 1,844,14
Slide 27: NMM Ownership Structure & Economic Interest
NMM Ownership Structure & Economic Interest Navios Maritime Holdings Inc. Common Unitholders NYSE: NM 100% Membership Interest Navios GP L.L.C. (General Partner) 18.1% Limited Partner Interest 79.9% Limited Partner Interest 2.0% General Partner Interest Incentive Distribution Rights Navios Maritime
Slide 28: NNA Ownership Structure & Economic Interest
NNA Ownership Structure & Economic Interest Navios Maritime Holdings Inc. NYSE: NM Public Shareholders 46.3% Interest 53.7% Interest Navios Maritime Acquisition Corp. NYSE: NNA 36 Tankers 100.0% Membership Interest 26 Product Tankers, 8 VLCCs, 2 Chemical Tankers Navios Maritime Midstream Partners GP
Slide 29: Navios Logistics Ownership Structure
Navios Logistics Ownership Structure Navios Maritime Holdings Inc. Peers Business Inc. NYSE: NM 63.8% Ownership 36.2% Ownership Navios South American Logistics Inc. (Marshall Islands) Port Terminals Barge Business Cabotage Business Storage and Transshipment • 338(1) barges and pushboats • Refined pr
Slide 30: Navios Logistics Q3 and 9M 2016 Earnings Highlights
Navios Logistics Q3 and 9M 2016 Earnings Highlights Three months Three months Nine months Nine months ended ended ended ended September 30, September 30, Y-O-Y September 30, September 30, Y-O-Y (in $ ‘000) 2016 2015 Variance 2016 2015 Variance Revenue 63,400 67,310 (6%) 177,361 198,628 (11%) Navios
Slide 31: Navios Logistics Q3 2016 Balance Sheet
Navios Logistics Q3 2016 Balance Sheet Selected Balance Sheet Data (in $'000) September 30, 2016 December 31, 2015 Cash & cash equivalents (inc. restricted cash) 70,187 81,507 Accounts Receivable 35,265 26,097 Deposits for vessels, port terminals and other fixed assets, net 116,424 44,254 Vessels po
Slide 32: Appendix: Current Navios Holdings Fleet
Appendix: Current Navios Holdings Fleet
Slide 33: Appendix: Core Fleet
Appendix: Core Fleet Owned Fleet: Ultra Handymax Vessels Type Built DWT Charter Rate ($) (1) Expiration Date (2) Profit Share Navios Serenity Handysize 2011 34,690 7,838 11/2016 No Navios Ionian Ultra Handymax 2000 52,067 3,040 12/2016 No Navios Horizon Ultra Handymax 2001 50,346 8,788 01/2017 No Na
Slide 34: Appendix: Core Fleet
Appendix: Core Fleet Owned Fleet: Panamax Vessels Type Built DWT Charter Rate ($) (1) Expiration Date (2) Profit Share Navios Magellan Panamax 2000 74,333 4,988 11/2016 No 9,986 12/2016 No Navios Star Panamax 2002 76,662 — 12/2018 Yes(3) 9,986 12/2016 No Navios Amitie Panamax 2005 75,395 — 12/2018 Y
Slide 35: Appendix: Core Fleet
Appendix: Core Fleet Owned Fleet: Capesize Vessels Type Built DWT Charter Rate ($) (1) Expiration Date (2) Profit Share Navios Stellar Capesize 2009 169,001 — 10/2017 Yes (3) Navios Happiness Capesize 2009 180,022 7,760 11/2016 $4,750+50% Weighted Average BCI — 01/2017 5TC Index Routes Navios Bonavi
Slide 36: Appendix: Core Fleet
Appendix: Core Fleet Long-Term Chartered-In Fleet Charter Expiration Date Purchase Vessels Type Built DWT Profit Share Rate ($)(1) (2) Option (3) Navios Lyra Handysize 2012 34,718 5,700 12/2016 Yes (4) No Navios Primavera Ultra Handymax 2007 53,464 6,649 03/2017 Yes No Mercury Ocean Ultra Handymax 2
Slide 37: Appendix: Core Fleet Vessels to be Delivered
Appendix Core Fleet Vessels to be Delivered Vessels Type Delivery Date DWT Purchase Option Kouju Lily Handymax 11/2016 58,872 No Osmarine Panamax 01/2017 76,000 No KM Imabari Panamax 01/2017 76,000 No Long-term Navios Citrine Panamax 02/2017 81,000 Yes Chartered-in Vessels Navios Dolphin Panamax 02/
Slide 38: www.navios.com
Containership Sector | Clarkson Research www.navios.com www.clarksons.com
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