Navios Maritime Holdings Inc. Navios Maritime Holdings Inc.

Jefferies Shipping ConferenceJefferies Shipping ConferenceSeptember 15, 2005September 15, 2005

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Safe Harbor StatementSafe Harbor Statement

This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Maritime Holdings Inc. (Navios). Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Navios’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The information set forth herein should be viewed in light of such risks. Navios does not assume any obligation to update the information contained in this presentation.

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AgendaAgenda

• Navios Overview

• Navios – Vessel Operations

• Navios – Risk Management Operations

• Navios – Uruguay Port Operations

• Dry Bulk Shipping Market Overview

• Navios Historical Financial Performance

Navios OverviewNavios Overview

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Management TeamManagement TeamThe senior management team of Navios is very experienced in the maritime business and operates conservatively

Angeliki FrangouChairman & CEO

♦ 15 years experience in the shipping industry

♦ CEO of Maritime Enterprises since founding in 2001

♦ 11 years as CEO of Franser Shipping

Robert G. Shaw President

♦ Joined Navios in 2001 after representing management in 1999 MBO

♦ Responsible for Operations Group and Pireaus Technical Ship Management Arm

♦ 21 years experience in maritime law in New York with Healy & Baillie

Bruce C. HoagCFO

♦ 13 years professional experience with USS

♦ 23 years experience with Navios

♦ He played a key part in the MBO of 1999 and the financial business combination of Navios and Anemos in 2002

Ted C. PetroneSVP Trading

♦ Joined Navios in 1980

♦ Serves as Vice President and is responsible for the commercial Panamax activities and the trading desk

Michael E. McClure SVP Research & RM

♦ 27 years experience with Navios

♦ In 1995 he organized the risk management department of Navios

♦ Today he is responsible for freight derivative trading and market research

Shunji SasadaSVP Fleet Development

♦ 10 years experience with Mitsui O.S.K. Lines Ltd.

♦ 6 years experience with Trinity Bulk carriers a subsidiary of Mitsui O.S.K in Norway

♦ Joined Navios in 1997

Eugene CorneliusVP Finance

♦ Qualified as a Chartered Accountant in 1991

♦ Professional experience as an accountant with Deloitte & Touche

♦ Joined Navios in 2001

Pablo Soler GM Uruguay

♦ Joined Navios Uruguay in 1984 as operations manager

♦ Promoted to General Manager in 1989

♦ Member of Corporacion Navios Board since 1999

Vasiliki Papaefthymiou

EVP Legal ♦ 14 years experience in

maritime law

♦ General Counsel for Maritime Enterprises since 2001

♦ 10 years as General Counsel to Franser Shipping

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Our HistoryOur HistoryNavios incorporated as a subsidiary of United States Steel Corporation

Sold to Fednav Limited

Merger of Navios Corporation and Anemos Maritime Holdings

Transformed itself from captive ore carrier for US Steel to a third party cargo carrier

Series of MBOs, Citicorp Venture Capital ownership, and Restructurings

September 17, 2004:ISE formed as a blank check company for the purposes of acquiring an operating business in the shipping industry

September 8, 2004: Navios engages Lazard to consider strategic alternatives including a potential sale

August 25, 2005: ISE/Navios

merger effective

February 10, 2005:ISE announces that it has entered into an exclusive negotiating agreement relating to the possible acquisition of Navios

March 1, 2005:ISE and Navios announce that they have entered into a stock purchase agreement

1954 Mid-1970s Mid-1980s 2002 2004 2005

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NaviosNavios• Dry Bulk Panamax and Handymax Platform• 28 vessels (13 Ultra Handymax and 15 Panamax)

– Own 6 modern Ultra Handymax vessels– Long-Term Chartered Fleet of 22 vessels– Deep in-the-money purchase options on 13 vessels

• 5 options to be exercised in 2005• 2 options to be exercised in 2006

• Average Vessel Age - 3.5 years• Experienced risk management – FFA, COA, short-term

chartering• Port Terminal - substantial competitive advantage and

stable earnings• Strong and growing cash flow with healthy balance sheet

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NAVIOS MARITIME HOLDINGS INC

ANEMOS MARITIMEHOLDINGS INC

Owning Companies Trading Companies

NAVIOS IONIAN

NAVIOS APOLLON

NAVIOSHERAKLES

NAVIOS ACHILLES

NAVIOS KYPROS

NAVIOS HIOS

ManagementCompany

BrokerageCompany

NAVIOS SHIPMANAGEMENT INC.

IONIANSHIPPING

CORPORATION

APOLLONSHIPPING

CORPORATION

HERAKLESSHIPPING

CORPORATION

ACHILLESSHIPPING

CORPORATION

KYPROSSHIPPING

CORPORATION

HIOSSHIPPING

CORPORATION

ACROPOLISSHIPPING &

TRADING INC.

NAVIMAXCORPORATION

NAVIOSHANDYBULK INC.

NAVIOSINTERNATIONAL

INC.

CORPORACIONNAVIOS SOCIEDAD

ANONIMA

NAVIOS CORPORATION

1. Unless otherwise noted above, all companies are incorporated in theMarshall Islands.

2. All vessels are on the Greek flag (they were previously on the MarshallIslands flag).

3. Unless otherwise noted above, all companies are wholly-owned subsidiaries.

Corporate StructureCorporate Structure

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A Unique Corporate StrategyA Unique Corporate Strategy• Capitalize on vertically integrated, global shipping company

– Economies of scale– Differentiated information flow

• Build core fleet of 30-35 owned vessels through excess cash flow • Appropriate revenue mix – stable cash flow from long-term charters

(70%) and exposure to upside from spot charters (30%)• Leverage brand name – continue to acquire long-term charters-in,

controlling significant additional assets without capital outlay• Professional management – enhance processes, systems and

controls necessary to operate in a regulated environment• Build technical management – reduce operating costs by adopting

best practices• Adopt a FFA strategy that focuses on hedging risks of operations

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Key DifferentiatorsKey Differentiators

• Platform for consolidation of the dry bulk industry

• Strong industrial brand – privileged relationships with leading trading houses in Japan

• Capitalizing on industry dynamics in FFA market

• Scalability and institutionalization potential

• Strong industry fundamentals

• Seasoned management team

• State-of-the-art systems and IT infrastructure

Navios Vessel OperationsNavios Vessel Operations

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Provides diversified and stable earningsStrategic Information from port is a competitive advantage

Navios Maritime Holdings Inc.

Panamax

Long Term Fleet: 15

Short Term Chartering, COAs & Risk Management

Uruguay Port Terminal

Handymax

Owned Fleet: 6Long Term Fleet: 7

Short Term Chartering, COAs & Risk Management

Business SegmentsBusiness Segments

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Ultra-Handymax Owned FleetUltra-Handymax Owned FleetVessel Name Built DWT

Navios Achilles 2001 52,063

Navios Apollon 2000 52,073

Navios Herakles 2001 52,061

Navios Hios 2003 55,180

Navios Ionian 2000 52,068

Navios Kypros 2003 55,180

Navios owns 6 latest generation Ultra-Handymax vessels which are all high-specification sister ships built at Sanoyas Shipyard, Japan

Navios Risk ManagementNavios Risk Management

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Risk ManagementRisk ManagementTools and implementation

ShortTerm

ChartersFFAs

COAs

♦ Forward Freight Agreements– over the counter swap contracts– principal to principal or exchange cleared– tied to the Baltic Exchange Indices– approximately 7,000 trades in the market in

2004

♦ Short term (<12 months) chartering in and out of vessels– Navios typically controls 20 to 40 vessels

throughST Charters

♦ Contracts of Affreightment– contracts to carry freight on specific route and

at specific time (as opposed to chartering a vessel)– customers typically industrial end-users and

international agri-businesses

Increasing Freight Rates Expected-> Long Position

• Buy vessels (long-term)

• Charter in new vessels (long-term)

• Charter in new vessels (short-term)

• Sell / Close (ie “re-let”) existing COAs, locking in a spread

• Open Long FFAs / Close Short FFAs

Decreasing Freight Rates Expected-> Short Position

• Sell vessels (long-term)

• Charter out new vessels (long-term)

• Charter out new vessels (short-term)

• Enter new COAs

• Open Short FFAs / Close Long FFAs

Risk Management Trading Strategies

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0

2,000

4,000

6,000

8,000

10,000

12,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

(# o

f FFA

Tra

des)

Dry Wet

Internal Risk Policies

• Limiting counterparty / credit risk– trades with only five approved outside brokerage

firms which signed acknowledgements of Navios’trading authority instructions

– about 35 approved counterparties with solid track record in the market

– daily review of mark-to-market exposure on individual counterparties

• Internal trading guidelines and practices– traders must check with senior management on

acceptance of counterparties not previously approved

– continuous monitoring by senior management on exposure to all counterparties

– CFO continuously obtains updated credit report on counterparties

• Limiting market risk through internal monitoring and reporting system

– daily trading meeting attended by senior management and traders

– daily report of mark-to-market – VaR: estimates the gain / loss in case the market

turns severely against a position– stress analysis tests– settlement values– interim and financial trading results

Forward Freight Agreements

Global Trade in Forward Freight Agreements

Source: Freight Investor Services

Indust ry Part icipants Financial Inst itut ion Part icipants

♦ Cargill ♦ Morgan Stanley ♦ Louis Dreyfus ♦ Goldman Sachs ♦ Glencore ♦ Deutsche Bank ♦ Bunge ♦ ABN Amro ♦ Koch Carbon ♦ RBS ♦ BHP Billiton ♦ Coeclerici

Risk ManagementRisk Management

Navios Uruguay Port OperationsNavios Uruguay Port Operations

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Terminal OperationsIdeally situated at the confluence of the Parana and Uruguay rivers and near the mouth of the River Plate estuary

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Terminal Operations Terminal Operations Navios Uruguay Annual Throughput Volumes

Uruguay Grain Exports

Source: Uruguayan Farm Cooperative

Terminal—Nueva Palmira, Uruguay

• Navios owns and operates a modern port terminal in Nueva Palmira, Uruguay

– largest bulk transfer and storage facility in Uruguay

– operates 24 hours a day, 365 days a year

– additional 11 acres of riverfront land available for future extensions

– 2.2 million tons of expected throughput in 2005

– lease expires in 2025 with an option to extend for an additional20 years

• Non-unionized

• Located in a tax-free zone

– well placed for export of commodities from Argentina, Bolivia, Brazil, Paraguay and Uruguay

• Navios has signed important long-term contracts with Archer Daniels Midland, Cargill and Louis Dreyfus

• Storage capacities consist of seven silos with a total storage capacity of 280,000 tons of clean and secure grain

– seventh silo of 75,000 tons capacity is under construction

• Separate docks for unloading barges and loading Handymax and Panamax vessels

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Terminal LayoutTerminal Layout

Dry Bulk Shipping MarketsDry Bulk Shipping Markets

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Trad

e (M

illion

tons

)

General Cargo Bulk Cargo

Average 2.45% growthfrom '80-'90

Average 7.20% growthfrom '00-'04

Average 3.89% growthFrom '82-'92

World Dry Cargo TradeWorld Dry Cargo Trade

Source: Drewry Shipping Consultants Ltd

Average (‘80–‘04) = 3.9%

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Promising Chinese Long Term Growth ProspectsPromising Chinese Long Term Growth Prospects

Source: Japanese METI

Industrial Production

0

200

400

600

800

1,000

1,200

0 5 10 15 20 25 30Years From Base

Inde

x, Bas

e Ye

ar =

100

Korea Base 1980 Japan Base 1959 China Base 1995

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Dry Bulk Shipping Supply Known Through 2008Dry Bulk Shipping Supply Known Through 2008

Notes:1 Drewry2 Drewry except for projected growth which is per Clarkson with scrapping assumptions from Howe Robinson & Co. Ltd.; assumes

2006 & 2007 scrapping rates remain constant with estimated 2005 scrapping as a % of the fleet3 Clarkson Research Studies

• Orderbook includes 69.7 mdwt1 (21% of fleet) of scheduled deliveries through 2008

– global fleet projected to grow at 4.7%2 CAGR during this period

• New vessels ordered today will not be delivered before 2008

• Aging fleet– 36% of Dry Bulk Fleet is more than 20 years old– 27% of Handymax fleet > 20 years old– 20% of Panamax fleet > 20 years old

• Given strong market conditions, older vessels are not currently being scrapped

18%

22%

10%

14%

20%

13%

3%

0–5 5–10 10–15 15–20 20–25 25–30 30–35

Deliveries and Scrappings as a % of Fleet

Dry Bulk Age Profile1

Over Age Fleet

0

200

400

600

800

1,000

1,200

1,400

Num

ber o

f Ves

sels

5.5 5.8

3.42.3

1.3 1.6 1.9 1.5 1.5

5.0

0.01.02.03.04.05.06.07.0

2005E 2006E 2007E 2008E 2009E

(%)

Deliveries Scrappings

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Demand will exceed supply through 2008Demand will exceed supply through 2008

• Increased global demand for seaborne coal / iron ore

• Coal is still growing as a primary fuel source for many parts of the world

• As global trade increases, port congestion will continue to affect seaborne commerce

• Brazil, Russia, India and China all rapidly emerging markets

• China grain imports also expected to rise as consumption increases

Navios Historical Financial Navios Historical Financial PerformancePerformance

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5.7 4.8

15.1

43.9 45.3

27.5 29.233.7

14.6

0

10

20

30

40

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

($m

m)

2003 2004 2005

47.134.7

53.4

95.6 99.7

76.0 82.3 78.961.4

0

20

40

60

80

100

120

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

($m

m)

2003 2004 2005

Historical Financial Summary DataHistorical Financial Summary DataRevenues

Reported EBITDA

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SummarySummary• Scalable platform for consolidation of the industry

• Strong industrial brand

• Pioneer and innovator in FFA trading

• Port Terminal - substantial competitive advantage and stable earnings

• Seasoned management team

• Strong and growing cash flow generator

• Strong dry bulk industry fundamentals– Demand growing at over 4% annually led by BRIC– Restricted supply combined with aging fleet