navios maritime holdings inc.library.corporate-ir.net/library/18/187/187110/items/329945... · –...

Navios Maritime Holdings Inc.

March 26, 2009

(NYSE: NM)

at

3rd Annual Capital Link Forum

DisclosuresStatements in this presentation which are not statements of historical fact are “forward-looking statements” (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, the Company at the time this presentation was made. Although the Company believes that the assumptions underlying such statements are reasonable, it can give no assurance that they will be attained. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information or future events, unless it is required to do so under the securities laws. The Company makes no prediction or statement about the performance of its common units.

For the selected financial data presented herein, Navios Holdings compiled consolidated statement of operations for the fiscal year 2008 and three-month period ended December 31, 2008.

EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is a “non-GAAP financial measure” and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and determination of dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

3

Agenda

• Introduction• Vessel Operations• Independent Subsidiaries

– Navios Partners– Navios Logistics– Navios Acquisition

• Industry Overview• Financial Results• Summary• Appendix

444

Seasoned Management Team

• 19 years experience in the shipping industry

• Chairman and CEO of Navios since August 2005

• Previously founded two private shipping companies

Shunji SasadaCOO – Navios Corp

• 28 years experience

• 16 years experience with Mitsui O.S.K. Lines Ltd, including 6 years with Trinity Bulk carriers (Norway) and Mitsui O.S.K. Bulk Shipping (London)

• Joined Navios in 1997

Other Key ManagementOther Key Management

• SVP of Corporate Affairs since April 2007

• Previously, CFO from October 2005 to April 2007

• Served as Vice President of Navios Research and Risk Management and Manager of Financial Analysis


Angeliki FrangouChairman & CEO

Navios Maritime Holdings

• CFO since April 2007

• PwC partner in charge of shipping practice in Greece

• UK Chartered Accountant

• 19 years experience in the accounting profession


George AchniotisCFO


Michael E. McClureSVP - Corporate Affairs


Vasiliki Papaefthymiou

EVP - Legal

• 18 years experience in Maritime Law

• General Counsel for Maritime Enterprises since 2001

• 10 years as General Counsel to Franser Shipping

Anna KalathakisSVP- Legal Risk Mgt

• 15 Years experience in Maritime Law

• Graduate of Georgetown University, MBA – European University and JD -Tulane


• Previously, SVP responsible for the commercial activities and the FFA trading desk

• 30 years experience in the shipping industry


Ted C. PetronePresident

Navios Corp

Claudio LopezVice Chairman

Navios South American Logistics

• 26 years experience

• President, Argentinean Shipowners Tanker Association

• Former professor of Maritime Law at University of Belgrano

Ruben MartinezGM - Port Division

Navios South American Logistics

• Began as a Mechanical Engineer & promoted to General Manager in 2005

• Graduated in Mechanical Engineering from Montevideo University


55

Company Overview• NYSE listing (“NM”)

• 55 year operating history

• Among world’s largest vertically integrated dry bulk shipping companies

– Young fleet of 53 owned & chartered-in vessels (5.1 million dwt)

– In-house technical & commercial management

– Purchase options on 12 vessels below

fair market value

• Flexible Business Model

• Significant Contracted Revenue

• Low-cost Operator

• Strong Brand with Established Long-term Relationships

CapesizeCapesize

UltraUltra--HandymaxHandymax

PanamaxPanamax

(1) Fleet Growth statistics shown represent change from September 5, 2005 to December 31, 2008. Fleet calculation includes controlled fleet of Navios Group. Fleet of 21 vessels at September 5, 2005 and 63 controlled vessels at December 31, 2008. EBITDA represents CAGR for 2005-2007. Includes Navios Partners’ fleet.

EBITDA: 55%Fleet: 200%

Significant Growth (1)

Analyst Coverage• Cantor Fitzgerald• Dahlman Rose & Co.• Fearnley Fonds• JP Morgan• Lazard Capital Markets• Bank of America / Merrill

Lynch• Jefferies• Goldman Sachs• DnB NOR• CLARKSON Johnston Rice • Pareto

666

Strong Brand Created from Operating History of Over 50 years

December 2006:$300mm High YieldSenior Note OfferingNavios 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 Special Purpose Acquisition Company

August 25, 2005: ISE/Navios merger effective

March 1, 2005:ISE and Navios entered into a stock purchase agreement

1954 Mid-1970s Mid-1980s 2002 2004 2005 2006 2007 2008

NASDAQ Listing (BULK)November 28, 2005

• Excellent brand recognition• Strong long-term customer relationships• Key relationships with Asian trading companies

Benefits from our long operating historyBenefits from our long operating history

June 2006:Warrant program raises $65.5mm

January 2007:Warrant program raises $71 mm

February 2007: Acquisition of Kleimar and NYSE listing (NM)

May 2007:$132.2 m secondary equity offering

November 2007:NYSE Listing Navios Maritime Partners LP

January 2008FormedNaviosSouthAmericanLogistics

June 2008IPO ofNaviosMaritime Acquisition Corporation:raised $253.0 million

777

Flexible Business ModelSecured Cash Flow + Risk Management + Investment Opportunities

Core Fleet (Owned and LongCore Fleet (Owned and Long--Term CharteredTerm Chartered--in Fleet)in Fleet)

Capitalize on real-time Market Intelligence in making strategic fleet management decisionsContracts of Affreightment (“COA”)Short-Term ChartersForward Freight Agreements (“FFA”)

Risk ManagementRisk Management

63.8% ownership stakeBarge operations in the Hidrovia region and Port Terminal facilities (grain and liquid)Emerging markets commoditiesSignificant growth potential

Navios South American LogisticsNavios South American Logistics

Navios Maritime Partners L.P.Navios Maritime Partners L.P.(NYSE:NMM)(NYSE:NMM)

51.6% ownership stake 2.0% General Partner Interest Significant Incentive Distribution RightsHigh dividend distribution model

Navios Maritime Acquisition Corp.Navios Maritime Acquisition Corp.(NYSE:NNA.U)(NYSE:NNA.U)

19% ownership stake for NM $253.0 million Gross IPO Proceeds$7.6 million NM investment Favorable acquisition opportunity

NM TotalEBITDA

Includes both owned and long-term chartered-in vesselsEmployed in long-term charter-out contracts (>12 months) AA+ rated EU government backed insurance on all charters-outSignificant spreads over vessel operating expenses and charter-in rates

8

Proactive Approach to the Credit Crisis• Obtained $353.5 million in debt financing

– Favorable terms in difficult credit conditions– Demonstrates favorable positioning with lenders due to conservative business posture – Financing includes:

• 10-year term financing for $120.0 million, secured at 60% of original vessel values& interest at Libor plus 190 bps (1)

• 3-year term convertible debt for $33.5 million, with 2% interest per annum; exercisable at $11.00 per share

• 2-year revolver for $200.0 million in total, with interest at Libor plus 275 bps

• Vessel Cancellations without forfeiture of deposits– Three Capes (all unfixed)

• $265.0 million in capex savings– Nine long-term chartered-in vessels (all unfixed)

• $61.1 million in reduced time charter expenses annually

• Seller financing– Navios Vega partially financed with the issuance of a convertible bond to the Seller

(1) Term loan amortization consists of 20 semi-annual installments of $6.5mm for the first two years, $7.0mm for the next two years, $7.5mm for the next three years and $3.5mm for the last three years.

999

Strong Liquidity Position

December 31, 2008$ (in millions)

(1) Includes restricted cash

(2) Includes $81.3 million debt of Navios Logistics

(3) Drawings under this facility as of December 31, 2008

(4) As of December 31, 2008 not including new revolving facility

(5) Committed in February 2009

Revolving Credit Facilities 193.0

Drawn Portion (3) (170.7)

Undrawn Portion 22.3

Cash 151.5

Total Liquidity (4) 173.8

New Revolving Facility (5) 110.0

Total liquidity including new revolving facility 283.8

Liquidity Position

Cash (1) 151.5

Debt (2) 887.7

Shareholders' Equity 814.9

Capitalization 1,702.6

Net Debt / Capitalization 43.2%

Balance Sheet

101010

Financing In Place for All Newbuildings

Vessel Type Anticipated Delivery Date DWT Charter-out rate per day (net) Charter Term

Navios Vega Ultra-Handymax 2/2009 58,792 $12,350 2 years

Navios Pollux Capesize 6/2009 181,000 $42,250 10 years

Navios Happiness Capesize 7/2009 180,000 $55,100 5 years

Navios Lumen Capesize 9/2009 181,000 $44,850 7 years

Navios TBN Capesize 10/2009 172,000 $41,325 10 years


Navios TBN Capesize 11/2009 180,000 $45,500(CoA)

5 years


TOTAL 1,296,792

(1) Includes $37.3 million of equity paid after December 31, 2008

Aggregate Cost = $ 853.9 millionDebt Financing = $ 440.5 millionEquity Paid = $ 344.7 million (1)

Balance = $ 68.7 million

1111

Corporate StrategyLarge, Modern Fleet • 53 controlled vessels

• 36 (1) active ships with an average age of 4.7 years - 18 owned / 18 chartered-in

Flexible Business Model / Vertically Integrated

• Mix of owned and chartered-in vessels (Capesize, Panamax and Ultra-Handymax)

• Short-term chartering, Contracts of Affreightments (“COA”) and Forward Freight Agreements (“FFA”)

Focus on Long-Term Contracted Revenue (2)

• 88.6% of revenue days in 2009 - $241.4 million• 68.0% of revenue days in 2010 - $274.2 million• 54.3% of revenue days in 2011 - $236.5 million• 44.7% of revenue days in 2012 - $207.6 million

Low-Cost Operator • Favorable long-term charter-in rates • Operating costs lower than average due to efficient in-house operations

Below Market Vessel Acquisitions

• Purchase options on 12 vessels below current fair market value

Seasoned Management Team • Senior management team with average industry experience of 20+ years

Favorable Long-Term Industry Dynamics

• Strong emerging market demand, aging dry bulk fleet, increased scrapping activity

Strong Brand with Established Long-Term Relationships

• 55 year operating history

(1) Including Navios Vega delivered on 2/18/2009 and Phoenix Grace delivered on 2/26/2009

(2) Excludes Kleimar vessels.

12

Managing Credit RiskCredit Default Insurance

• AA+ rated, EU government backed• Covers entire Core Fleet and Contracts of Affreightment • Covers entire duration of charter for all vessels, including future deliveries• Insurance payments commence one month after non-payment (includes incidental expenses)• Approximately $1.8 billion total amount of revenue covered (including CoAs)• Flexibility in managing risk: ability to adjust to market levels on a quarterly basis

Internal Committees: Credit & Market

Credit Committee• Reviews credit conditions and credit policy

– Meets monthly / establishes credit guidelines and monitors credit decisions• Reviews FFA counterparties & physical counterparties

Market Committee• Daily Senior Management Meetings

– Reviews market conditions, fleet coverage and FFA exposure– Internal controls govern FFA duration (term) and exposure (amount)

• Established tiered list of acceptable counterparties– Counterparties subject to credit analysis & collateral or other requirements (vessel ownership, parent

guarantees, etc.) • Expectation for 2009 is more than 80% of FFAs will trade on exchange

13

Continuing to Return Capital to Shareholders

Dividend Policy:

• Q4 2008 Distribution: $0.06 per share– Record date: March 16, 2009– Payment date: April 3, 2009– 100,515,305 shares outstanding as of December 31, 2008 – Approximately 75% of dividend expected to be funded by cash flow from Navios Partners

• $24.1 million annualized NM dividend • $17.9 million 2009E distribution to NM from NMM (at current run rate)

Share Repurchase Program:

• November 2008 Share Repurchase Program: $25 million – Extend existing 10b5-1 plan– 575,580 shares repurchased as of December 31, 2008 – Approximately $24.0 million available

Vessel Operations

151515

Navios Holdings – 53 vessels & 5.1 million DWT

(1) Includes Product tanker Vanessa, excludes Navios Logistics’ Fleet(2) Includes Navios Vega, delivered on February 18, 2009 and Phoenix Grace delivered on 2/26/2009 (3) Navios Group is composed of Navios Holdings (NM) and Navios Partners (NMM)

16 Panamax

• 11 vessels (0.86 million dwt)

18 Ultra-Handymax



28 Long-Term Charter-In 2.87 million dwt

12 Purchase Options

25 Owned Vessels2.28 million dwt

Controls 53(1) Vessels (5.1 million dwt)36 (2) Currently Operating (2.8 million dwt)

Average Age = 4.7 years

Charter-in strategy allows fleet expansion with zero capital outlay& future ownership option via purchase options

Navios Group(3) controls 63 vessels and 6.1 million DWT

16 Capesize




One of the largest fleets among US-listed dry bulk carriers

3 Handysize



• 1 vessel (1)

(0.02 million dwt)• 5 vessels

(0.38 million dwt)• 12 vessels

(0.64 million dwt)


Charterer % of Total Charter-Out Revenue (2)

Cosco Bulk Carriers 22.3% Korea Line Corp 16.7% Mitsui O.S.K. Lines Ltd. 13.8% Sanko 8.1% Sealink 5.8% STX 5.2% Emirates Trading Agency 5.0% Samsun Logic (3) 4.3% Pacific King 3.9% Constellation Energy Group 3.8%

Total: 88.9% 161616

Contracted Revenue Grows Through 2010

Top Ten Charter PartiesTop Ten Charter Parties

Contracted Revenue(1)

2008: $219.3 million2009: $241.4 million2010: $274.2 million2011: $236.5 million2012: $207.6 million

Average Daily Charter Rate

$27,090

$32,933

$36,407$34,761

$24,675

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2008 2009 2010 2011 2012

Average Daily CharterAverage Daily Charter--out Rateout Rate

High utilization ratesEarnings visibilitySteady cash flowDownside protection in challenging markets

Time Charter StrategyTime Charter Strategy

(1) Excludes COAs, Kleimar controlled Fleet and Navios Logistics’ Fleet

% Days Contracted

88.6%

68.0%

54.3%44.7%

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012

% Days Contracted% Days Contracted

AA+ insurance on all charters-out

(2) Years 2009 through 2011

(3) Charter-Out commences 10/31/2009

171717

Low-Cost Operator with Favorable Charters-In

Opex is less than the industry average due to:Modern, efficient fleetStrong in-house technical management team Proactive, in-transit repairs Upgraded, customized IT for fleet management

Opex is approximately 12% less than the industry average

Navios Holdings benefits from technical management services provided to Navios Partners

LTM Average Daily Operating Costs / Vessel (Including dryLTM Average Daily Operating Costs / Vessel (Including dry--docking)docking)

$4,638

$5,323

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

Navios Average perVessel

Industry Average perVessel

$/Da

y

(1)

(1) Source: Drewry Shipping Consultants – July, 2008(2) Excludes Kleimar controlled vessels

Favorable LongFavorable Long--Term CharterTerm Charter--In Contracts In Contracts (2) (2)

Established reputation and strong operating history allow for favorable charter contract terms and rates

Strong relationships allow for attractive rates with no capital outlay, low breakeven

Navios insures for entirety of contracted chartered-out period

$9,727 $9,953$10,929

$32,933

$27,090$24,675

$2,500

$10,000

$17,500

$25,000

$32,500

$40,000

2008 2009 2010

$/Da

y

Average Charter-out rate

Average Charter-in rate

INCREASINGMARGINS

$6,397

$2,506

$6,228

$4,384

$27,090

$32,933

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2009

Operating Breakeven

• Breakeven includes operating costs of owned fleet (including drydock), charter-in expenses for charter-in fleet, general and administrative expenses, credit default insurance expenses, interest expense and capital repayments (excludes COAs, short term charters and FFAs)

• Total Available Days of Core Fleet:10,418 for 200912,240 for 2010

Operating Breakeven

2010 – 68.0% Fixed

2009 – 88.6% Fixed

Average Contracted Daily Charter-Out Rate

18

$19,515

Operating Expenses + Charter-in Costs General & Administrative Expenses Interest Expense Capital Repayments

Navios Partners

2020

Navios Partners Ownership Structure

100% Membership Interest

2.0% General Partner InterestIncentive Distribution Rights

48.4% Limited Partner Interest49.6% Limited Partner Interest

11 Drybulk Vessels• 1 Capesize and 8 Panamax drybulk carriers (active fleet)

• 1 Capesize vessel in June 2009

100% Membership Interest

Navios GP L.L.C.Navios GP L.L.C.(General Partner)(General Partner)

Navios Maritime Partners L.P.NYSE: NMM

Navios Maritime Operating L.L.C.Navios Maritime Operating L.L.C.

Common UnitholdersCommon Unitholders**Navios Maritime Holdings Inc.Navios Maritime Holdings Inc.NYSE: NMNYSE: NM

* Refers to publicly traded common units and includes 500,000 of common units purchased by a corporation owned by Angeliki Frangou (representing 2.3% of units outstanding).

• 1 Option to Purchase Capesize in July 2009

21

Significant Growth in Key Operating Metrics2 1.62 1.3

14 .3

17.9

7.0

14 .214 .6

12 .1

9 .2

4 .3

8 .88 .97.2

1.6

3 .8

0

5

10

15

20

25

Q4 2007 * Q1 2008 Q2 2008 Q3 2008 Q4 2008

R evenue

EB IT D A

N et Inco me

$0.40

$0.35$0.35

$0.385

$0.32$0.34$0.36$0.38$0.40$0.42

Q1 2008 Q2 2008 Q3 2008 Q4 2008

2008 UNIT DISTRIBUTION GROWTH

$ M

* The reporting period consists of 46 days out of 92 days in the calendar quarter

** Assuming annualized run rate of Q4 2008 distributions

Dividend Distributions to NM:

2008 = $14.4 million

2009E** = $17.9 million

Navios Logistics

23

Navios South American Logistics • Navios owns and operates a modern port

terminal in Nueva Palmira, Uruguay– Largest bulk transfer/storage facility

in Uruguay– Seven silos with a total storage

capacity of 270,440 tons; Eighth silo of 80,000 tons operational in April 2009

– 2.5 million tons transferred in 2008– Located in a tax-free zone– Exports commodities from Argentina,

Bolivia, Brazil, Paraguay and Uruguay• Horamar is an operator of barges / upriver

port terminal with 30+ years operating history• Navios Logistics:

– Critical mass for South American logistics business through complementary business and eventually “spin off” independent entity

– Strong presence in inland waterway transportation in the Hidrovia region of Argentina, Bolivia, Brazil, Paraguay and Uruguay

– Capitalize on region’s growing agricultural and mineral exports and energy needs

– 2008 EBITDA: $27.0 million

Navios South American Logistics Inc(Marshall Islands)

Horamar S.A

• 240 wet and dry barges• 1 Port - Paraguay• Fleet employed in Argentine

cabotage business (four product oil tankers):- Malva H delivered on January 13, 2008 - Estefania H delivered on July 25, 2008 - Makenita: expected delivery in Q2 2009- Sara H: expected delivery in Q4 2009

Corporación Navios S.A.

Port Terminal – Nueva Palmira –Uruguay (tax free zone)

Navios Maritime Holdings Minority Shareholders

63.8% 36.2%

100%

2424

Fleet Expansion Since Horamar Acquisition

• Fleet expansion:– Acquisition of six convoys for $72.0 million– Financing: $70.0 million Loan Facility– Secured Long-Term Cash Flow:

• Three & five year agreements with two major commodity producers

• Started operations in Q4 2008

• Fleet employed in Argentine cabotage business:– Malva H: delivered on January 13, 2008

• Product Oil Tanker, built in 2007, 9,947 dwt • Employed as of February 2, 2008• Chartered for minimum four years (plus charterer’s

option to extend for two years)

– Estefania H: delivered on July 25, 2008• Product Oil Tanker, built in 2008, 12,000 dwt • Employed as of August 2, 2008

– Makenita: expected delivery in Q2 2009• Product Oil Tanker, 17,000 dwt

– Sara H: expected delivery in Q4 2009• Product Oil Tanker, 9,000 dwt

Fleet - January 2008

13 pushboats

55 dry barges

28 oil barges

3 LPG barges

2 self-propelled barges

1 small oil tankers

4 service vessels

Fleet - February 2009

20 pushboats

157 dry barges

49 oil barges

3 LPG barges

2 self-propelled barges

2 small oil tankers

2 handysize tanker

2 docking platforms

Navios Logistics controls a fleet of 240 barges and vessels transporting wet and dry cargo

Navios Acquisition

26

Navios Maritime Acquisition Corporation

• Closed on July 1, 2008

• Net proceeds for acquisition estimated at approximately $240.0 million

• Must complete a business combination by June 30, 2010

• Units trading on NYSE (NYSE: NNA.U)– Common shares trade on NYSE under the symbol NNA– Warrants trade on NYSE under the symbol NNA WS

• 19% ownership position for NM

• Significant return on investment potential to NM– $7.6 million initial risk investment in warrants

Industry Overview

28

Baltic Dry Index* 1999 – 2009

* As of 03/23/2009

0

2000

4000

6000

8000

10000

12000 Baltic Dry Index

AVERAGE 1985 ‐ TODAY

11 Dec 2001 ‐ TODAY

29

0

1,000

2,000

3,000

4,000

5,000

6,000

1980 1984 1988 1992 1996 2000 2004 2008

Trad

e (M

illio

n To

ns)

Drybulk Cargo General Cargo

China admitted to the WTO Future Upside:

India

0

1,000

2,000

3,000

4,000

5,000

6,000

1980 1984 1988 1992 1996 2000 2004 2008

Trad

e (M

illio

n To

ns)

Drybulk Cargo General Cargo

292929

1.4%1.4%

2.8%2.8%

5.1%5.1%

China admitted to the WTO Future Upside:

India

World Dry Cargo Trade 1980–2008

Source: Drewry Shipping Consultants Ltd. (2008 estimates, Jan 2009)

30

GDP Growth Supported by Emerging Economies

Source: IMF, March 2009

4.13.5

5.9

4.8

6.3

7.57.1

7.9

3.33.7

4.7 4.7

2.22.8

3.63.54.0 4.0

-3.25

5.9

8.3

6.10

4.00

2.003.8

5.1 5.0

2.5

3.5

4.9

4.5

5.1 5.2

3.20

-0.75

2.00

4.0

2.52.6

0.80 0.25

2.7

3.03.2

1.91.61.2

2.8 3.02.6

3.5

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

1995 1996 1997 1998 1999 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Emerging and developing economies

World

Advanced economies

31Source: Macquarie Research

Combined Chinese and Indian Urbanization Rates Per Year

China’s and India’s Development Remains Intact

25-30 Million People

Urbanizing Per Year

Indian Urbanization as

the “Second Leg”

0

5

10

15

20

25

30

35

50-55 55-60 60-65 65-70 70-75 75-80 80-85 85-90 90-95 95-00 00-05 05-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50

Year (1950 - 2050)

Mill

ion

s of

Peo

ple

ChinaIndia

32

Drybulk Orders by Yard Status

0

20

40

60

80

100

120

2009 2010 2011 2012 2013

Mdw

t

Greenfield Yards Newly Established Yards Expansion Yards Established Yards

20% 22% 17%22%

20%

16%11%

13%

16%

48%

45%

51%

Source: Clarksons, October 2008

Order book includes 184.7 mdwt (44.1% of fleet) of scheduled deliveries through 2010(1)

– Financial crisis causing cancellations of orders by owners and cancellation of new shipyard expansion capacity – Substantial greenfield (green) and inexperienced (red & yellow) shipyard risk– Capesize orderbook to be built at 31 yards – only 13 of them have built Capes before (2)

– Newbuilding Orders not being delivered as scheduled – Slippage for 2008 approximately 24%– Slippage for 2009 estimated to be 25% to 32%

(1) Source: Drewry Shipping Consultants, Ltd. (January 2009)(2) Source: Howe Robinson (January 2008)

33

Aging Fleet + Weak Market = Accelerated Scrapping

28%

17%

0%

10%

20%

30%

40%

50%

Total Drybulk Fleet Total Drybulk Fleet

Over 20 Years Old Over 25 Years Old

Drybulk Industry Age Profile (% dwt)

Source: SSY’s Dry Bulk Forecaster (March 2009)

Source: Clarksons’ Research March 2009

Scrapping Dynamics *:

•Average scrapping for the period 1978-2007 was approximately 1.62% of fleet dwt per year•Average scrapping over 4-year period 2004-2007 was 0.25% of fleet dwt per year•Scrapping for 2008 exceeded 1% of fleet on dwt basis (all within Q4)•Scrapping for 2009 projected to be at record levels

•Total dry bulk fleet for 2008 about 420.6 m dwt

* Source: Clarksons

Year End

OVER 100

60- 100

40- 60 10- 40

Total Fleet

DEMO AS % OF FLEET

1978 0.2 0.5 1.5 2.2 1.60%1979 0.4 0.9 1.3 0.90%1980 0.6 0.6 0.40%1981 0.1 0.2 0.3 0.20%1982 0.1 0.5 1.1 1.7 1%1983 0.4 0.3 0.8 1.6 3.2 1.70%1984 0.3 0.9 1.0 3.2 5.3 2.80%1985 0.5 1.4 2.0 5.6 9.5 4.80%1986 1.4 2.3 2.9 5.6 12.3 6.30%1987 2.1 0.9 1.2 3.0 7.1 3.60%1988 0.6 0.4 1.0 2.0 1%1989 0.1 0.2 0.2 0.6 1.1 0.50%1990 0.2 0.2 0.1 1.0 1.6 0.70%1991 0.3 0.1 0.7 1.1 0.50%1992 2.0 0.7 0.5 0.6 3.9 1.80%1993 1.7 0.4 0.4 1.1 3.6 1.60%1994 1.2 0.6 0.6 1.2 3.5 1.60%1995 0.7 0.3 0.2 0.7 1.8 0.70%1996 2.6 1.0 1.5 2.0 7.1 2.80%1997 3.0 1.3 1.0 2.6 8.0 3%1998 3.3 2.8 1.6 4.5 12.2 4.60%1999 2.3 2.2 1.6 3.1 9.1 3.40%2000 1.0 0.2 0.8 2.4 4.5 1.60%2001 1.5 2.3 0.7 3.6 8.1 2.80%2002 1.3 1.4 0.5 2.8 6.0 2%2003 0.8 0.6 0.6 2.2 4.1 1.40%2004 0.1 0.3 0.3 0.10%2005 0.2 0.2 0.1 0.4 0.9 0.30%2006 0.3 0.5 0.2 0.9 1.8 0.50%2007 0.1 0.1 0.2 0.4 0.10%2008 1.9 1.1 0.4 1.6 5.0 1.20%

JAN '09 0.3 0.5 0.2 0.8 1.8 0.43%FEB '09 0.2 0.3 0.2 0.8 1.5 0.35%MAR '09 0.0 0.1 0.0 0.4 0.5 0.12%

YTD 0.5 0.9 0.3 2.0 3.8 0.89%(f) 2009 4.1 2.8 2.8 12.3 22.0

BULKCARRIER DEMOLITION BY SIZE

Financial Results

35

FY 2008 Earnings Highlights

($ ‘000) FY ended December 31, 2008

FY ended December 31, 2007

Y-O-Y Variance

Revenue 1,246,062 758,420 64%

EBITDA 165,477 349,875 (53%)

Adjusted EBITDA 150,017 (1) 182,364(1) (18%)

EBITDA contribution of Navios Logistics*

25,781 4,681 267%

Net income / loss 118,527 271,001 (56%)

Adjusted Net income 45,817 (2) 103,490(2) (41%)

EPS 1.14 2.87 (60%)

Adjusted EPS 0.46 (2) 1.04(2) (56%)

(1) Adjusted EBITDA for the year ended December 31, 2008 excludes: (i) $27.8 million gain on sale of assets (ii) $5.3 million relating to the accounting treatment of unrealized losses on sponsor warrants acquired as part of the IPO of Navios Maritime Acquisition Corporation, (iii) $2.9 million of swap losses, (iv) $2.6 million of write off of doubtful accounts and (v) $1.5 million of cancellation fee. Adjusted EBITDA for the year ended December 31, 2007 excludes a $167.5 million gain from sale of assets of Navios Holdings to Navios Partners.

(2) Adjusted Net income and Adjusted EPS for the year ended December 31, 2008 exclude: (i) the effect of a $57.2 million write-off of deferred Belgian taxes, and (ii) all one-off items affecting Adjusted EBITDA. Adjusted Net income and Adjusted EPS for the year ended December 31, 2007 exclude a $167.5 million gain from sale of assets to Navios Partners.

Full Year financial results not directly comparable due to the sale of seven vessels by NM to NMM in November 2007 which would have contributed approx. $46.5 million in EBITDA in 2008

* Represents Navios Holdings’ share in the logistics business

36

Strong Balance Sheet Selected Balance Sheet Data (in $'000)

December 31, 2008 December 31, 2007

Cash & cash equivalents 133,624 427,567Restricted cash 17,858 83,697Other current assets 353,927 336,981Deposits for vessels acquisitions 404,096 208,254

Vessels, port terminal and other fixed assets, net (1) 737,094 425,591Total Assets 2,251,274 1,971,004Current portion of long term debt 15,177 14,220Other current liabilities 247,259 436,271Senior notes, net of discount 298,344 298,149Long term debt, net of current portion 574,194 301,680Stockholders Equity 814,916 769,204

Book Capitalization 1,702,631 1,383,253Net Debt / Book Capitalization 43.2% 7.4%

(1) The majority of the vessels are reflected at net book values between $19 - $26 million each.

373737

Strong Liquidity Position

December 31, 2008$ (in millions)

(1) Includes restricted cash

(2) Includes $81.3 million debt of Navios Logistics

(3) Drawings under this facility as of December 31, 2008

(4) As of December 31, 2008 not including new revolving facility

(5) Committed in February 2009

Revolving Credit Facilities 193.0

Drawn Portion (3) (170.7)

Undrawn Portion 22.3

Cash 151.5

Total Liquidity (4) 173.8

New Revolving Facility (5) 110.0

Total liquidity including new revolving facility 283.8

Liquidity Position

Cash (1) 151.5

Debt (2) 887.7

Shareholders' Equity 814.9

Capitalization 1,702.6

Net Debt / Capitalization 43.2%

Balance Sheet

38

Summary

• Senior management team has average industry experience of 20+ years

• Long-term relationships with Japanese shipyards and recognized brand name

• Operating costs lower than industry average• In-house technical and commercial management

• 88.6% of revenue days in 2009 • 68.0% of revenue days in 2010• 54.3% of revenue days in 2011• 44.7% of revenue days in 2012

• Fleet has grown from six to 25 owned vessels and currently has 53 controlled(1) vessels

• Future growth through exercise of 12 purchase options, corporateacquisitions and chartered-in vessels

• One of the largest dry bulk operators• Young fleet of 36 active vessels — average age of 4.7 years, 2.8 million dwt• 25 owned vessels

Large, high quality, modern fleet

Large, high quality, modern fleet

Proven ability to grow fleet

Proven ability to grow fleet

Seasoned management team

Seasoned management team

Low cost, efficient operations

Low cost, efficient operations

Operating visibility through contracted

revenues (2)

Operating visibility through contracted

revenues (2)

(1) Includes 17 new deliveries.

(2) Excludes CoAs and Kleimar controlled fleet.

AA+ rated EU government backed insurance on all

charters-out

AA+ rated EU government backed insurance on all

charters-out

3939

www.navios.comwww.navios.com

Appendix

Diversified Business Model NM’s business model positions it favorably in the current credit crisis:• Long-term vessels with no capex outlay• COA book insulates in a downturn• FFA and short-term chartering capture upside

Competitors business models under pressure due to:• Increased exposure to spot rates • Capex intensive business model without long-term coverage• Financings not in place for the newbuild programs

Limited Spot Exposure through 2010 • NM coverage 88.6% for 2009; 68.0% for 2010 • NMM coverage 100% for 2009; 100% for 2010

Depressed spot rates hurting profitability of competitors with inadequate charter coverage

Insured Cash Flows Navios Group insured all charter-out and COA contracts from AA+ rated EU government-backed entity

Majority of competitors do not have any insurance and thus prone to non-payments on charter-party defaults or renegotiations

Return to Shareholders Navios Group’s fixed revenue enables it to maintain return to shareholders through dividends and buyback programs

Virtually all competitors have eliminated dividends

Proactive Management • NM cancelled 3 capes with minimal cancellation fees and reduced Capex by $265 million• NM cancelled 6 long-term charter-in vessels with no cancellation fees and saved $61 million in opex annually• Financing in place to cover our capex requirements• All newbuild vessels fixed on 5-10 year charters

Competitors late in cancelling newbuild vessels and incurring significant losses on deposits

Constant Attention to Asset Risk Navios Group focuses on asset values with residual value exposure analysis

Competitors driven by short-term earnings with minimal consideration for long-term values

Transparency Commercial and Technical management groups within Navios Group

Commercial and technical services outsourced at some firms to related parties

Navios ScorecardWell-Positioned to Withstand Current Financial Crisis

41

42424242

Navios Owned FleetVessels Type Built DWT Charter Rate ($)(1) Expiration Date (2)

Navios Ionian Ultra Handymax 2000 52,068 22,21911,970

02/28/200904/05/2011

Navios Apollon Ultra Handymax 2000 52,073 23,700 11/08/2012

Navios Horizon Ultra Handymax 2001 50,346 36,100 08/24/2011

Navios Herakles Ultra Handymax 2001 52,061 26,600 05/12/2009

Navios Achilles Ultra Handymax 2001 52,063 38,009 12/25/2011

Navios Meridian Ultra Handymax 2002 50,316 23,700 10/08/2012

Navios Mercator Ultra Handymax 2002 53,553 31,350 2/12/2014

Navios Arc Ultra Handymax 2003 53,514 27,693 05/25/2009

Navios Hios Ultra Handymax 2003 55,180 9,500 05/02/2009

Navios Kypros Ultra Handymax 2003 55,222 34,024 02/14/2011

Navios Ulysses Ultra Handymax 2007 55,728 31,281 10/12/2013

Navios Vega Ulltra Handymax 2009 58,792 12,350 02/18/2011

Navios Magellan Panamax 2000 74,333 21,850 01/20/2010

Navios Star Panamax 2002 76,662 21,375 01/21/2010

Navios Hyperion Panamax 2004 75,707 26,26837,050

03/01/200904/01/2014

Navios Orbiter Panamax 2004 76,602 37,147 04/01/2014

Total Total -- 16 vessels 16 vessels 944,220944,220

(1) Net of commissions (2) Expected Redelivery basis midpoint of full redelivery period

4343434343

Navios Chartered-in Fleet (Active)

Vessels Type Built DWT Purchase Option

Charter-out Rate (1)

($)Expiration Date (2)

Navios Vector (3) Ultra Handymax 2002 50,296 No 9,738 10/17/2009

Navios Astra Ultra Handymax 2006 53,468 Yes 34,200 08/11/2009

Navios Primavera Ultra Handymax 2007 53,464 Yes 20,046 05/09/2010

Navios Armonia Ultra Handymax 2008 55,100 No 23,700 06/07/2013

Navios Cielo Panamax 2003 75,834 No 14,773 06/12/2010

Navios Orion Panamax 2005 76,602 No 49,400 12/15/2012

Navios Titan Panamax 2005 82,936 No 27,100 11/24/2010

Navios Altair Panamax 2006 83,001 No 22,715 09/20/2009

Navios Sagittarius Panamax 2006 75,756 Yes 26,125 11/19/2018

Navios Esperanza Panamax 2007 75,200 No 6,65014,438

03/31/200902/21/2013

10 Chartered-in vessels 3 purchase options2009 weighted average charter-in rate = $9,953

Total Total –– 10 vessels10 vessels 681,657681,657

(1) Daily Charter-out rate net of commissions(2) Assumed midpoint of redelivery by charterers(3) Charterer has right to extend period at similar day rate

4444444444

Kleimar Controlled Fleet Profile

(1) Assumes vessels redeliver to owners post expiration of extension period(2) Includes new build vessels to be delivered

LongLong--Term CharteredTerm Chartered--in Vesselsin Vessels

Vessels Type % Owned DWT Built

Asteriks Panamax 100% 76,801 2005 Vanessa Product Tanker 100% 19,078 2002

Owned VesselsOwned Vessels

Vessels Type DWT Built Delivery Expiration(1) Purchase Option

Beaufiks Capesize 180,181 2004 06/24/2004 06/2017 Yes Rubena N Capesize 203,233 2006 01/11/2006 01/2018 SA Fortius Capesize 171,595 2001 03/06/2003 03/2010 Belisland Panamax 76,602 2003 11/09/2005 12/2009 Golden Heiwa Panamax 76,662 2007 03/14/2007 03/2017 C Utopia Capesize 174,000 2007 11/24/2007 11/2010 Torm Antwerp Panamax 75,250 2008 01/09/2008 03/2012 Pheonix Grace Capesize 170,500 2009 02/26/2009 12/2013 Pheonix Beauty Capesize 170,500 2009 1/2010 11/2012 Kleimar TBN Capesize 176,800 2010 04/2010 04/2013 Kleimar TBN Capesize 180,000 2012 07/2012 07/2025 Yes

Total – 11 Vessels (2) 1,655,323

4545454545

Navios Vessels (to be Delivered)Owned Vessels on OrderOwned Vessels on Order

Vessels Type Anticipated Delivery Date DWTNavios Pollux (1) Capesize 6 / 2009 181,000Navios Happiness (2) Capesize 7 / 2009 180,000Navios Lumen (3) Capesize 9 / 2009 181,000Navios Aurora II (4) Capesize 10 / 2009 172,000Navios TBN (5) Capesize 11 / 2009 172,000Navios Phoenix Capesize 11 / 2009 180,000Navios TBN (6) Capesize 12 / 2009 172,000

Total Total –– 7 Vessels 7 Vessels 1,238,0001,238,000

(1) Chartered-out at $42,250 net per day for ten years commencing on delivery.(2) Chartered-out at $55,100 net per day for seven years commencing on delivery. (NMM has purchase option on this vessel)(3) Chartered-out at $44,850 net per day for five years commencing on delivery. (4) Chartered-out at $41,325 net per day for ten years commencing on delivery.(5) Chartered-out at $57,000 net per day for five years commencing on delivery.(6) Chartered-out at $39,900 net per day for ten years if commencing on delivery if before 12/31/2009, or $37,762 if delivery Q1 2010.

Vessels Type Anticipated Delivery Date Purchase Option DWTNavios TBN Handysize 3/2010 Yes (50%) 35,000Navios TBN Handysize 8/2010 Yes (50%) 35,000Navios TBN Ultra-Handymax 3/2012 Yes 61,000Navios TBN Ultra-Handymax 8/2013 Yes 61,000Navios TBN Panamax 9/2011 Yes 80,000Navios TBN Kamsarmax 1/2013 Yes 82,100Navios TBN Capesize 9/2011 Yes 180,200

LongLong--term Charteredterm Chartered--in Vessels on Orderin Vessels on Order

Total Total –– 7 Vessels7 Vessels 534,300534,300

4646

www.navios.comwww.navios.com

navios maritime holdings inc.library.corporate-ir.net/library/18/187/187110/items/329945... · –...

Documents