Navios Maritime Acquisition Corporation
Navios Maritime Acquisition — Q2 2010 Earnings Presentation
30 slides from Navios Maritime Acquisition's earnings presentation, Jul 29, 2010
Slide 1: Q2 2010 Earnings
Q2 2010 Earnings July 29, 2010
Slide 2: Disclosures
2 Disclosures Statements in this presentation which are not statements of historical fact are "forward- looking statements" (as such term is defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking sta
Slide 3: Management and Board of Directors
3 Management and Board of Directors Angeliki Frangou Chairman & CEO Ted C. Petrone President Leonidas Korres CFO Anna Kalathakis SVP - Legal Risk Management Chairman and CEO of Navios Holdings and Navios Partners 20 years experience in the shipping industry Previously founded two private shipping co
Slide 4: Navios Maritime Acquisition Corporation
4 Navios Maritime Acquisition Corporation (NYSE: NNA) NNA target: develop a leading company in the tanker sector Product tanker investment Acquired eleven product and two chemical tankers + options for two product tankers Aggregate purchase price of $457.7 million, funded with: Approximately 27% ($1
Slide 5: Delivery of Two Product Tankers
5 Delivery of Two Product Tankers Delivery of Colin Jacob Vessel Specifications: 2007-built LR1 product tanker; DWT: 74,671 (delivered June 29, 2010) Charter Term - 3 years (expires June 2013) Charter Rate = $17,000 (net) + 50/50 profit sharing Acquisition Price = $43.5 million Annualized EBITDA = $
Slide 6: Financial Highlights Q2 2010
6 Financial Highlights Q2 2010
Slide 7: Existing Fleet
7 Existing Fleet Vessels under construction Vessels delivered Current fleet: 13 (1) vessels (0.7 million dwt) 4 LR1 Product Tankers 7 MR2 Product Tankers 2 Chemical tankers Excellent brand recognition Strategic relationships with shipyards and other industry players Favorable relationships with bank
Slide 8: Contemplated Acquisition of Seven VLCC Tankers
8 Contemplated Acquisition of Seven VLCC Tankers
Slide 9: Transformational contemplated acquisition
9 Transformational contemplated acquisition Investment Thesis Favorable crude carrier industry fundamentals Consideration paid for Vessels plus corresponding long-term charters Nature of long time charters with creditworthy counterparties beneficially impacts valuation Significantly accretive to sha
Slide 10: Solid Portfolio of Charters - Industry Leaders
10 Solid Portfolio of Charters - Industry Leaders SINOCHEM DOSCO FORMOSA SK SHIPPING East 0.1331 0.6196 0.1344 0.1129 Revenue by Charterer Solid customer base with strong creditworthy counterparties 94% of contracted volume secured by charters running longer than 5 years Remaining Charter Duration 1
Slide 11: High Quality and Diverse Customer Base
11 High Quality and Diverse Customer Base Formosa Petrochemical Corp., a Taiwanese company, refines crude oil and markets petroleum and petro-chemical products Publicly listed in Taiwan Formed in 1978 and is one of the largest Chinese state-owned shipping enterprises, operating as a wholly-owned sub
Slide 12: Staggered Charter Expirations
12 Staggered Charter Expirations(1) Shinyo Kieran 40750 5670 Shinyo Saowalak 40440 5630 C.Dream 40440 3300 Shinyo Kannika 40440 2500 Shinyo Ocean 40440 2450 Shinyo Navigator 40440 2400 Shinyo Splendor 40440 1500 * The chart is set up as stack chart. The date (month/year) were turned into number form
Slide 13: Description of Warrant Program
13 Description of Warrant Program
Slide 14: Description of Warrant Program
14 Description of Warrant Program Choice of Cash and Cashless Exercise to Warrant Holders Cash Exercise : $5.65 exercise price per warrant Cashless Exercise: 4.25 warrants exchanged for 1 NNA share Warrant holders may use a combination of cash and cashless exercise Partial exercises permitted Tender
Slide 15: Pro Forma Shares and Warrants
15 Pro Forma Shares and Warrants (assuming minimum requirements satisfied) (in millions) Current cap structure Pro Forma cap structure: Post Tender Offer Pro Forma cap structure: Post Tender Offer and Acquisition(1) Common Shares 21.6 42.8 44.4 Ownership of NM (+ Affiliates) 65.6%(2) 65.4% 63.1% War
Slide 16: Crude Market Overview
16 Crude Market Overview
Slide 17: Global Oil Demand is Recovering in 2010
17 Global Oil Demand is Recovering in 2010 Source: International Energy Agency, International Monetary Fund and Energy Information Administration 10/9/2010 1/9/2010 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 20
Slide 18: Asia Projected as a Growing Energy Consumer
18 Asia Projected as a Growing Energy Consumer Asia Projected as a Growing Energy Consumer Energy Consumption by Region Quadrillion Btu Asian Energy Consumption as a Percentage of World Consumption Source: EIA, International Energy Outlook, 2009
Slide 19: Chinese Auto Demand - Another Leg for Crude Oil Growth
19 Chinese Auto Demand - Another Leg for Crude Oil Growth Growth Growth In 2009 China become the world's largest car market Auto penetration in China is just 4% compared with 60%-80% in US, Europe and Japan Most cars bought with cash - consumer credit just beginning Private consumption in China low
Slide 20: Asia is the Dominant user of VLCC Vessels
20 Asia is the Dominant user of VLCC Vessels Source: Clarkson Research, Energy Information Administration * Represents data for the top ten spot trading routes for VLCCs in 2009 In the top 10 spot markets for 2009, VLCCs shipped 218 million metric tons of crude oil to Asian markets accounting for 76
Slide 21: VLCC Supply Orderbook
21 VLCC Supply Orderbook Slippage and cancellations of 20%+ expected due to low rates and difficult credit environment Actual VLCC tanker non-deliveries in 2009 = 20% Actual VLCC tanker non-deliveries till June YTD = 20% Phase out of single hull vessels expected to accelerate Currently approximately
Slide 22: VLCC prices vs. TC rates
22 VLCC prices vs. TC rates Source: Clarksons Correlation (r): 1 yr TC Rate + NB Price - 0.77 1 yr TC Rate + 5 yr old price - 0.87
Slide 23: Product Market Overview
23 Product Market Overview
Slide 24: Shift in Global Refinery Capacity
24 North America Europe Asia (ex-China) China Pacific Middle East Latin America FSU Africa East 23.2 14.6 10 8.5 7.7 7.2 6 3.9 3.2 Shift in Global Refinery Capacity... Source: International Energy Agency Medium-term oil market report, March 2010 Source: OPEC 2009 World Oil Outlook Asia-Pacific Middl
Slide 25: Driving Product Tanker Ton Mile Demand
25 Stack 1 Stack 2 Stack 4 Stack 5 Stack 6 Stack 7 Stack 8 Totals (invisible) Stack 9 Stack 10 Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 2000 7220 1583 8803 2001 7528 1733 9261 2002 7140 1572 8712 2003 7814 1853 9667 2004 8504 2226 10730 2005 9299 2886 12185 2006 9562 3021 12583 2007 971
Slide 26: Supply Fundamentals are Improving
26 LR2 LR1 MR2 MR1 Stack 8 Totals (invisible) Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 2009 6.715796 3.970507 2010 2.6 2.3 2 0.2 7.1 53.7 2011 2.4 3.2 1.5 0.5 7.6 55.7 2012 0.2 0.3 0.5 0 1 54.9 2013 0 0.2 0 0 0.2 53.9 2014 0.1 0.1 53 Supply Fundamentals are Improving World product tanke
Slide 27: Product tanker rates history
27 Date 47-51K Product tanker Trough Peak Line 6 Line 7 Line 8 Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Line 16 Annotations 1/1/1980 25 2/1/1980 25 3/1/1980 25 4/1/1980 25 5/1/1980 26 6/1/1980 26 7/1/1980 26 8/1/1980 26 9/1/1980 26 10/1/1980 26 11/1/1980 26 12/1/1980 26 1/1/1981 26 2/1
Slide 28: Appendix
28 Appendix
Slide 29: Existing Fleet
29 Existing Fleet Vessel Type Type DWT Year Built Year Built Net Charter Rate ($/day) Expiration Date Profit Share Colin Jacob LR1 Product Tanker LR1 Product Tanker 74,671 2007 2007 17,000 Jun-13 50% above $17,000 Ariadne Jacob LR1 Product Tanker LR1 Product Tanker 74,671 2007 2007 17,000 Jul-13 50%
Slide 30: VLCC Fleet to be acquired
30 Vessel Vessel Type DWT Year Built Net Charter Rate ($/day) Expiration Date Profit Share Shinyo Splendor Shinyo Splendor VLCC 306,474 1993 38,019 5/18/2014 NO Shinyo Navigator Shinyo Navigator VLCC 300,549 1996 42,705 12/18/2016 NO C. Dream C. Dream VLCC 298,570 2000 29,625 (1) 3/15/2019 50% above
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