Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q1 2023 Earnings Presentation
32 slides from Navios Maritime Partners Lp's earnings presentation, May 23, 2023
Slide 1: First Quarter 2023 Earnings Presentation
DRAFT Navios Maritime Partners L.P. (NYSE:NMM) First Quarter 2023 Earnings Presentation May 23, 2023 1 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, TCE rates and Navios Partners’ e
Slide 3: Highlights
Highlights DRAFT Leading Financial US-Listed Strength Maritime Company Scale $4.6 billion 173 vessels gross fleet value Diversification $2.4 billion 3 segments net fleet equity 15+ asset classes Modern Fleet $3.4 billion Average age = contracted revenue 9.6 years 3
Slide 4: Strength Through Diversification
Strength Through Diversification DRAFT Chartering strategy Optimizing generating consistent Profitability Cyclical opportunity Capturing allowing optimal Capital Allocation Segment specific volatility Countering creating Balance Sheet Strength A diversified platform provides stable entity-level retu
Slide 5: Fleet Snapshot
Fleet Snapshot DRAFT 81 Dry Bulk Vessels 9.9 million dwt Average age (1): 10.2 years (industry average: 11.8 years) 36 Capesize Vessels 39 Panamax Vessels 6 Handymax - Handysize Vessels 6.5 million dwt 3.1 million dwt 0.3 million dwt 47 Containerships 235,414 TEU Average age (1): 10.6 years (industr
Slide 6: Selected Segment Data
Selected Segment Data DRAFT Drybulk Container ✓ 1 Tankers Total Fleet ships ➢ # of Vessels 81 47 45 173 Fleet Size ➢ Average age (yrs) 10.2 10.6 8.2 9.6 ➢ Capacity 9.9 mdwt 235,414 TEU 5.6 mdwt ➢ Vessel value ($mm)(1) 1,953 839 1,763 4,555 ➢ Debt and bareboat liabilities 1,023 390 719 2,132 ($mm)(3)
Slide 7: Recent Developments
Recent Developments DRAFT Q1 2023 Financial Results $309.5 $188.8 $99.2 Revenue EBITDA Net Income EPU $3.22 million million million Balance Sheet ▪ ~ $213 million cash balance as of March 31, 2023 ▪ $438.6 million new financing at attractive terms ➢ $343.6 million to finance six newbuilding vessels
Slide 8: Material Growth Since 2020
Material Growth Since 2020 DRAFT Significant operating growth since the implementation of our diversified strategy ▪ Diversified strategy initiated in 2020 • Q1 2021: acquisition of a containership company (29 vessels) • Q3 2021: acquisition of a tanker company (45 vessels) • Q3 2022: acquisition of
Slide 9: 9M 2023: Operating Free Cash
9M 2023: Operating Free Cash DRAFT Significant cash flow potential Open / Index Available Vessel type days days 9M 2023 ▪ Remaining 9M 2023 – 41,923 available days, 63% fixed 9M 2023 • $70.2 million excess contracted revenue over total cash expense Capesize 9,791 5,072 • 15,469 open/index days shoul
Slide 10: Diversification in Action
Diversification in Action DRAFT Countering Segment Specific Volatility (in $ million) Asset value(1) volatility per segment Q1 2023 vs Q4 2022 Diversification mitigates individual segment +3% volatility $156 ( $38 ) $35 Drybulk vessels : +9% $4,402 9% (4%) 2% $4,555 Containerships : -4% 3% Tanker ve
Slide 11: Fleet Renewal – Scheduled Replacement + Cyclical Opportunity
Fleet Renewal – Scheduled Replacement + Cyclical Opportunity DRAFT Newbuilding Program(1) Sale of vessels New vessels: significantly more carbon efficient ▪ Opportunistic sales of older vessels tailored to segment ▪ ~ $1.4 billion investment fundamentals ✓ Containerships: ~$860 million investment fo
Slide 12: $3.4 Billion Contracted Revenue
$3.4 Billion Contracted Revenue DRAFT Contracted Revenue by Segment Broad Exposure to Credit Quality Counterparties Drybulk $0.4 billion Tanker $0.8 billion Containerships $2.2 billion $2.2 Billion Contracted Revenue on Containerships Contracted Revenue per Year 2.3% 2.5% 4.1% 3.9% $704 4.2% 88 6.1%
Slide 13: Earnings Highlights
Earnings Highlights DRAFT Earnings Highlights Three Months Three Months (in $‘000 ) Ended Ended except per unit data, active vessels, available days and TCE achieved March 31, 2023 (1) March 31, 2022 (2) Revenue 309,522 236,617 EBITDA 188,836 126,118 Net Income 99,165 85,665 Earnings per Common Unit
Slide 14: Balance Sheet
Balance Sheet DRAFT Balance Sheet Data (amounts in $‘000 ) March 31, 2023 December 31, 2022 Cash & cash equivalents(1) 213,211 175,098 Other current assets 105,010 135,326 Vessels, net 3,695,272 3,777,329 Other non-current assets 822,300 807,951 Total Assets 4,835,793 4,895,704 Other current liabili
Slide 15: Debt Highlights
Debt Highlights DRAFT Debt and bareboat liabilities(1) at March 31, 2023 Mitigating interest rate risk (in $ million) ▪ 32% of debt ($0.7 billion) at 5.6% average fixed interest rate $2,132 ▪ 68% of debt ($1.4 billion) at floating rate $719 • 2.6% average margin for floating rate debt (16% reduction
Slide 16: Q1 2023 Debt Update
Q1 2023 Debt Update DRAFT 73% of newbuilding financing completed Analysis of Debt on NB Vessels ▪ $977.3 million debt facilities 800.0 $714.0 • $714.0 million arranged / signed 600.0 • $175.6 million approved / in documentation $413.5 400.0 • $87.7 million under discussion 200.0 $300.5 ▪ $476 millio
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 ▪ Net-zero will safeguard air and water quality and avoid negative ecological impacts ▪ Tech
Slide 18: Industry Overview
DRAFT Industry Overview
Slide 19: Tanker Industry Overview
DRAFT Tanker Industry Overview
Slide 20: Global Oil Demand
Global Oil Demand DRAFT Global Oil Demand and GDP Growth 10 World GDP Oil Demand (IEA) 5 Percent 0 -5 -10 ▪ 2.8% expected world GDP growth in 2023 and 3.0% in 2024 • ~ 85% correlation of world oil demand to global GDP growth ▪ 2.2% expected growth in oil demand (2.2 mb/d) in 2023 to 102.0 mb/d, exce
Slide 21: Crude Oil and Products: Changing Trading Patterns
Crude Oil and Products: Changing Trading Patterns DRAFT ◼ Seaborne crude and product trades have been affected by the war in Ukraine ➢ EU sanctions imposed on Russian crude imports and price cap ◼ Trade patterns are shifting towards longer-haul routes due to the war ➢ 94% decrease in seaborne Russia
Slide 22: VLCC Fleet Data
VLCC Fleet Data DRAFT ▪ 2022 Net fleet growth 4.4% ▪ 2023 Expected net fleet growth 2.1% ▪ 2024 Expected net fleet growth -1.5%; negative net fleet growth ▪ Current VLCC orderbook = 1.4% of the fleet by DWT (13 vessels: 11 in 2023, NONE in 2024, 1 each in 2025 and 2026) ▪ Vessels over 20 years of ag
Slide 23: Product Tanker Fleet Data
Product Tanker Fleet Data DRAFT ▪ 2022 Net fleet growth 1.7% ▪ 2023 Expected net fleet growth 1.6% ▪ 2024 Expected net fleet growth 0.3% ▪ Current Product Tanker orderbook = 8.0% of the fleet by DWT (188 vessels) ▪ Vessels over 20 years of age* = 9.9% of current fleet by DWT (358 vessels) Deliveries
Slide 24: Dry Bulk Industry Overview
DRAFT Dry Bulk Industry Overview
Slide 25: World Dry Bulk Trade
World Dry Bulk Trade DRAFT 6.5 World GDP growth 6.3 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 3.4 3.0 3.0 3.1 3.0 2.9 3.0 2.9 2.9 2.8 2.4 2.6 2.5 2.7 2.6 2.4 2.0 2.2 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 198
Slide 26: Major Dry Bulk Commodities
Major Dry Bulk Commodities DRAFT Iron Ore Coal Grain H1 2023 H2 2023 H1 2023 H2 2023 790 652 731 619 Iron ore trade expected to grow Increase in seaborne volumes Trade volume reduction mitigated as recession fears abate and ton miles by increased ton miles ■ Seaborne iron ore trade expected to grow
Slide 27: Dry Bulk Fleet Data
Dry Bulk Fleet Data DRAFT ▪ 2022 Net fleet growth 2.8% ▪ 2023 Expected net fleet growth 2.4% ▪ 2024 Expected net fleet growth 0.6% ▪ Total orderbook of 6.9% is one of the lowest on record ▪ Vessels over 20 years of age = 8.8% of the fleet Deliveries Removals Net fleet growth Year Actual Projected %
Slide 28: Container Industry Overview
DRAFT Container Industry Overview
Slide 29: World Container Trade 1996-2024
World Container Trade 1996-2024 DRAFT m TEU 1996 – 2022 CAGR = 6.1% growth 220 13.7% 15% 200 7.4% 10% 180 4.9% 6.6% Million TEU 5.6% 4.3% 160 5.0% 4.5% 140 2.3% 5% 120 3.3% -3.7% 3.3% 0% 100 2.0% 80 -1.1% -5% 60 -1.4% -9.6% 40 -10% 20 0 -15% 2022 P 2023 F 2024 F 1996 1997 1998 1999 2000 2001 2002 20
Slide 30: Container Fleet Data
Container Fleet Data DRAFT ■ 2022 Net fleet growth 4.0% ■ 2023 Expected net fleet growth 6.9% ■ 2024 Expected net fleet growth 5.8% ■ Current orderbook of 28.4% of the fleet by TEU skewed towards larger vessels: • 72% of containership orderbook is for vessels of 10,000+ TEU – 68% of orderbook is for
Slide 31: 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 32: www.navios-mlp.com
DRAFT www.navios-mlp.com . 20 32
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