Navios Maritime Holdings, Inc (NYSE: NM) J P Morgan Global High Yield and Leverage Finance Conference January 24 , 2008
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 and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. • For the following results and the selected financial data presented herein, Navios has compiled consolidated statement of operations for the fiscal years 2005 and 2006 and nine month period ended September 30, 2007. • 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. 2
Company Overview
Seasoned Management Team Michael E. McClure George Achniotis Ted C. Petrone Angeliki Frangou SVP - Corporate Affairs CFO President Chairman & CEO Navios Maritime Holdings Navios Maritime Holdings Navios Maritime Holdings Navios Corp • SVP of Corporate Affairs • CFO since April 2007 • Previously, SVP • 17 years experience in the since April 2007 responsible for the shipping industry • PwC partner in charge of commercial activities and shipping practice in • Previously, CFO from • Chairman and CEO of the FFA trading desk Greece October 2005 to April 2007 Navios since August 2005 • 30 years experience in the • UK Chartered Accountant • Served as Vice President • Previously founded two shipping industry of Navios Research and private shipping • 19 years experience in the • Joined Navios in 1980 Risk Management and companies accounting profession Manager of Financial Analysis • Joined Navios in 2006 • Joined Navios in 1978 Other Key Management Other Key Management Vasiliki Papaefthymiou Anna Kalathakis Shunji Sasada Ruben Martinez EVP - Legal SVP- Legal Risk Mgt COO – Navios Corp GM - Uruguay • 16 years experience in • 13 Years experience in • 26 years experience • Began as a Mechanical Maritime Law Maritime Law Engineer & promoted to • 16 years experience with General Manager in 2005 • General Counsel for Maritime • Graduate of Georgetown Mitsui O.S.K. Lines Ltd, Enterprises since 2001 University, MBA – European including 6 years with Trinity • Graduated in Mechanical University and JD - Tulane Bulk carriers (Norway) and Engineering from Montevideo • 10 years as General Counsel Mitsui O.S.K. Bulk Shipping University to Franser Shipping • Joined Navios in 2005 (London) • Joined Navios in 1989 • Joined Navios in 1997 4
Navios Business Overview / Corporate Strategy Large, Modern Fleet • 62 controlled vessels • 33 active ships with an average age of 4.1 years - 16 owned / 17 chartered-in • Mix of owned and chartered-in vessels (Capesize, Panamax and Ultra- Flexible Business Model / Vertically Integrated Handymax) • Short-term chartering, Contracts of Affreightments (“COA”) and Forward Freight Agreements (“FFA”) Significant Contracted Revenue* • 89.3% of revenue days in 2008 • 40.8% of revenue days in 2009 • 16.0% of revenue days in 2010 • Favorable long-term charter-in rates Low-Cost Operator • Operating costs lower than average due to efficient in-house operations • Purchase options on 22 vessels significantly below fair market value (1) Below Market Vessel Acquisitions Seasoned Management Team • Senior management team with average relevant industry experience of 20+ years per person Favorable Industry Dynamics • Strong global demand led by emerging markets Strong Brand with Established • 50+ year operating history Long-term Relationships (1)Navios Oribiter has been exercised and will be delivered in Feb/March 2008. Two other vessels – Aurora and Beaufiks will be exercised in 2008 5 * Excludes Kleimar vessels
Strong Brand Created from Operating History of Over 50 years December 2006: November 2007: $300mm High Yield Merger of Navios NYSE Listing March 1, 2005: Navios incorporated as a Senior Note Offering Corporation and Anemos Navios Maritime ISE and Navios entered subsidiary of United States Maritime Holdings Partners LP into a stock purchase Steel Corporation January 2007: agreement Warrant program Sold to Fednav NASDAQ Listing (BULK) raises $71 mm Limited November 28, 2005 1954 Mid-1970s Mid-1980s 2002 2004 2005 2006 2007 2008 September 17, 2004: June 2006: May 2007: Jan 2008 ISE formed as a Special Warrant program $132.2 m Series of MBOs, Formed Transformed itself from Purpose Acquisition raises $65.5mm secondary Citicorp Venture Navios captive ore carrier for US Company equity offering Capital ownership, South Steel to a third party cargo and Restructurings American February 2007: carrier August 25, 2005: Logistics Acquisition of ISE/Navios merger Kleimar and NYSE effective listing (NM) Benefits from our long operating history Benefits from our long operating history • Excellent brand recognition • Strong long-term customer relationships • Key relationships with Asian trading companies 6
Operations Update
NM Core Fleet – 62 vessels (6.0 million DWT) One of the largest fleets of any US-listed dry bulk carrier Controls 62 Vessels (6.0 million dwt) 33 Currently Operating (2.7 million dwt) Average Age = 4.1 years 23 Panamax 18 Capesize 15 Ultra-Handymax 6 Handysize • 9 (2) vessels (1.56 • 1 vessel (1) (0.19 24 Owned Vessels • 4 vessels (0.31 • 10 vessels (0.53 million dwt ) million dwt) 2.41 million dwt million dwt) million dwt) • 9 vessels (1.61 • 5 vessels (0.27 38 Long-term Chartered- • 19 vessels (1.50 • 5 vessels (0.17 million dwt ) million dwt) million dwt ) million dwt) in 3.55 million dwt • 3 vessels (0.54 • 3 vessels (0.17 • 11 vessels (0.87 • 5 vessels (0.17 22 (3) Purchase Options million dwt ) million dwt) million dwt) million dwt) Charter-in strategy allows for fleet expansion with zero capital outlay and future ownership option via purchase options (1) Product Tanker Vanessa (2) One vessel 95% owned (contracted to be sold for $24.2 million in 2009) (3) 11 of the vessels have 50% purchase options 8
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