Navios Maritime Containers Inc. · Navios Containers expressly disclaims any obligations or...

Navios Maritime Containers Inc.


Q1 2018 Earnings Presentation

May 7, 2018


Forward Looking Statements

2

This presentation contains forward-looking statements concerning future events, including future contracted revenues and

rates, EBITDA, future available days, future financial performance of the fleet, timing of vessel deliveries, and Navios

Containers' growth strategy and measures to implement such strategy; including future vessel acquisitions and the ability to

secure or refinance related financing, the further growth of our containership fleet, and entering into further time charters.

Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such

words and similar expressions are intended to identify forward-looking statements. These forward-looking statements are

based on the information available to, and the expectations and assumptions deemed reasonable by Navios Containers at

the time these statements were made. Although Navios Containers 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 Navios Containers.

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, risks relating to the future vessel acquisitions, the

quality of the fleet and the market for the fleet vessels, the uncertainty relating to global trade, including prices of seaborne

commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term

time charters, our ability to maximize the use of our vessels, expected demand in the container shipping sector in general,

fluctuations in charter rates for container carrier vessels, the aging of our fleet and resultant increases in operations costs,

the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs

of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses,

including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance, and

general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and

maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our

business, general domestic and international political conditions, competitive factors in the market in which Navios

Containers operates, and risks associated with global operations. Navios Containers 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 Navios Containers' expectations with respect thereto or any change in events, conditions or circumstances on

which any statement is based. Navios Containers makes no prediction or statement about the performance of its common

stock.


■ Global brand, industry relationships

and reputation

■ Economies of scale of ~ 200 vessel

fleet owned/managed

■ Ship management within the public

company – cost center vs profit

center

■ Track record of value creation

through the cycle

■ Access to deal flow

■ Professional management team

■ Alignment of interests

■ Fixed OpEx

NMCI Within the Navios Group

Why important for NMCI?

Scale, experience and relationships

3

Navios Maritime

Holdings Inc.

(NYSE: NM) 71 dry bulk vessels: 38 owned, 33 chartered-in

Navios Maritime

Containers Inc.

(N-OTC:NMCI)25 containerships Navios

Maritime Partners L.P.

(NYSE: NMM)38 vessels: 13 Capes,

17 Panamaxes, 3 Ultra-Handymaxes, 5 containerships

Navios South American

Logistics Inc.Port Terminal facilities,

barging & cabotageSpecial Purpose Vehicles Navios

Europe I & II 24 vessels:

12 containerships, 5 Panamax, 2 Handymax,

5 Product Tankers

Navios Maritime

Midstream Partners L.P.

(NYSE: NAP)6 VLCCs

Navios Maritime

Acquisition Corporation (NYSE: NNA)

35 vessels - 26 product tankers, 7 VLCCs, 2

chemical tankers


Ownership Structure

39.1% Interest60.9% Interest

100% Interest

Common Shareholders Navios Group

(36.0% NMM / 3.1% NM)

25 Containerships

4

11 x 10,000 TEU12 x 8,200 TEU19 x 4,250-4,730 TEU 13 x 3,450 TEU

Navios Maritime

Containers Inc.(OSLO N-OTC: NMCI)


NMCI: Company Highlights

5

Navios Group’s Containership Vehicle – Right of First Refusal for all Containerships

New Growth Vehicle

Focused on the

Containership Sector

New growth vehicle with attractive entry point and clean, low-cost structure

Attractive opportunities today to buy containerships towards bottom of the cycle

Access to distressed deals from banks / operators – available only to select

managers

Leverage Existing

Operating Platform

Leverage an established large operating platform

Economies of scale = ~ 5% lower operating expenditures than the industry

Charterers prefer to deal with large, safe and reliable owners

Well Positioned to

Grow in Container

Market Recovery

Sector poised for recovery: trade growth + high scrapping + lack of new orders

Focus on containerships with attractive deployment opportunities in higher

growth trades

Acquisitions provide free cash flow in current market with significant capital

appreciation and cash flow yield improvement as market recovers

Strong Sponsor with

Seasoned

Management

Strong & strategic relationships with banks and other key industry players

Management team has average industry experience of 20+ years per person

Demonstrated access of Navios Group to debt and equity capital markets

Long track record of financial reporting, compliance and investor accountability


A Growth Platform in the Containership Sector


Established in April 2017 to take advantage of dislocation in the containership market

Focused on growth in Panamax segment with attractive entry point and market fundamentals

Current fleet strategy focused on two most attractive segments within the containership sector

from a demand/supply perspective

• 22 “Baby Panamaxes” (3,450 - 4,730 TEU)

• 3 “New Panamaxes” (7,500 - 10,000 TEU)

Visible growth pipeline: 17 containerships within the Navios Group coupled with secondary

market opportunities

Well capitalized with $180 million of equity and $177 million of debt

Low cash breakeven and attractive cash yields at current market rates

No legacy liabilities

Experienced management team with unique access to deal flow

Commitment from Navios Group with $70 million cash investment

6


3

22

25

Fleet Evolution

7

Fleet Acquisitions & Highlights

14

3

4

4

Q2/Q3 2017 Q3/Q4 2017 Q4 2017 Q1/Q2 2018

Acquisition

Price$118.0 million $31.2 million $96.8 million $129.0 million $375 mm

Contracted

EBITDA (1)

~ $45 million

5 vessels on TC with

staggered

expirations ending in

Q1 2019

--

~ $70 million

4 vessels on TC

through Q2 2020

~ $13 million

3 vessels on TC with

staggered expirations

ending Q1 2019

~ $128mm

Average Age 10 years 8 years 9.5 years 9.9 years 10 years

# of vessels

11x4,250 TEU

3x3,450 TEU

from RMT

fleet liquidation

2x4,250 TEU

1x4,360 TEU from

commercial banks

4x4,730 TEU from

German owner

1x4,250 TEU from commercial bank

1x10,000 TEU from 3rd party

2x8,204 TEU from NMM

3,450-5,000 TEU

7,500-10,000 TEU

(1) Contracted EBITDA at the time of acquisition assumes Opex of $6,100 for the 3,450-5,000 TEU vessels and $7,400 per day for the 8,000-10,000 TEU vessels in the fleet.

G&A assumed to be $685 per vessel per day. Based on 360 operating days and 365 cost days.


$180

$243

Equity Invested Current NAV

The NMCI Story So Far…(the First Twelve Months)

8


Charter rates have increased 64% since initial vessels acquired in June 2017

Significant growth in the value of the equity invested since inception

• Current NAV implies an increase in equity value of ~$63 million (35%)

Source: Clarksons. Rates shown reflect 6-12 month TC rate for 4,400 TEU for June 2017 and April 2018.

Note: NAV based on charter-adjusted fleet values for NMCI fleet of 25 vessels as of March 2018. Total equity capital invested reflects the total equity raised at NMCI since inception.

Appreciation of Equity Invested

($ in

mill

ion

s)

+ 35%

Charter Rate Improvement

$7,300

$12,000

Rates June 2017 Current Rates

+ 64%

($ p

er

da

y)


$12,000

$20,388

Current Rates 15- Year Avg

$20,000

$33,475

Current Rates 7- Year Avg

Significant Potential Upside

9


~ 70% potential further charter rate increase as rates recover to their historical averages

Current vessel values remain well below historical averages

Source: Clarksons. Rates shown reflect 6-12 month TC rate for 4,400 TEU and 3-Year TC for 9,000 TEU vessels.

Note: Fleet values shown based on NMCI fleet of 25 vessels as of March 2018. Fleet value at 15-year averages reflects 15-year average values for 3,450 and 4,730 TEU vessels

and 7-year average for the 8,000-10,000 TEU vessels.

Potential Rate Improvement

($ /

da

y)

+ 70%

$379.3

$755.9

Current Charter- FreeAppraised Fleet Value

Fleet Value at 15-Yr Avg

4,250 TEU 8,200 TEU

+ 67%

Potential Growth in Fleet Value

+100%


0

5

10

15

20

25

30

35

40

NB 5 10 15 20 25

Scrap value NB parity 3.6-3.8K TEU Discount to NB parity

56%

0

10

20

30

40

50

60

70

80

90

100

NB 5 10 15 20 25Scrap value NB parity 8.5k-9.1k TEU Discount to NB parity

Attractive Entry Point

10

Discount to Newbuild Parity 4,250 TEU

Significant discount to NB parity, even with today`s NB prices around historically low levels

Scrap value

Discount to Newbuild Parity 8,200 TEU

Scrap Value

37%

Vessels acquired at significant discounts to current newbuild parity

Significant upside potential in current market as asset values move to their historical

averages

Source: Clarksons.

Note: In the diagrams above, the red markers on the discount to newbuild parity lines reflect the most recent purchase prices of this vessel size acquired by NMCI.


Acquisition of Three Containerships

11

Vessel Size Year

Built

Net Charter

Rate($ / day)

Charter

Expiration

Expected NTM

EBITDA (1)

($ in millions)

YM Utmost 8,204 TEU 2006 $34,266 08 / 2018 $5.5

YM Unity 8,204 TEU 2006 $34,266 10 / 2018 $6.4

Navios Unison 10,000 TEU 2010 $26,663 03 /2019 $6.8

$117.25 million acquisition of three containerships – expected delivery in Q2 2018

• Expected aggregate NTM EBITDA: $18.7 million (1)

• Special committee of NMCI board unanimously approved acquisition of two vessels from NMM

Financing:

$61.0 million new bank financing

• $25.0 million loan to finance the 10,000 TEU containership

• $36.0 million loan to finance the two 8,204 TEU containerships

$56.25 million of equity

(1) The Next Twelve Months (“NTM”) EBITDA calculations assume (a) revenue based on contracted time charter rates through the charter expiration dates (as

indicated in the table above) and per open day; $20,000 and $27,000 for the 8,204 TEU and 10,000 TEU containerships, respectively and (b) operating expenses in

line with the management agreement and normal operations.


Transaction Rationale: Attractive Cash Yield

(1) Cash Yield = EBITDA / Purchase Price. Based on total purchase price of $117.25 million for three vessels acquired. 12

$18.7

$27.3

NTM EBITDACurrent Rates

EBITDA7-Yr Avg Rates

~46%

16% 23%

$33,475 / $33,475($ / Day)

Cash Yields of Three Containerships Acquired (1)

$27,000 / $20,000

16% yield in current market, increasing to 23% as rates recover to historical average

46% cash flow upside with EBITDA increasing to $27.3 million

7,500-10,000 TEU vessels are new “workhorses” of sector; strong demand by charterers

10,000 TEU / 8,200 TEU

Source: Clarksons. Average rates shown for 3-year TC for 9,000 TEU vessel.


13

Sale & Leaseback Financing

$119.0 million sale & leaseback financing

• Refinance $92.4 million loan facilities maturing at the end of 2019

• 5-year sale & leaseback (20-year amortization profile)

• Purchase obligation in year five

• Executed term sheet - expect to complete documentation in Q2 2018 (1)

$49.3 million additional cash in 2018

• $26.6 million additional cash from refinancing

• $22.7 million reduction in debt service in remaining 9M 2018

Financing Highlights

Normalizes NMCI debt amortization profile with no debt maturities until 2022

Reduces 2018 debt service by $22.7 million, significantly reducing cash breakeven

Provides incremental cash liquidity to finance vessel acquisitions

Fixed rate financing for 5 years at attractive market levels

Establishes relationship with one of the largest leasing house in China

(1) No assurances can be provided that the Company will successfully complete this financing.

Transaction Summary


12,629

20,952

Current Rates 15Yr. Average rates

Expected Free Cash Flow Generation FY 2018

Cash Flow Analysis 2018E

($ Thousands) Current rates 15 –yr. avg. rates

Contracted Revenues 117,216 117,216

Total Expenses (Opex, G&A and debt service) (84,264) (84,264)

Net cash from contracted revenue $32,952 $32,952

Revenue from open days* 25,997 43,129

Free cash generation 58,949 76,081

Open Days 2,059 2,059

$33.0 million of net cash in 2018 only from contracted revenues alone

2,059 open days provide additional $26.0 million at current rates

14

$58.9 million

$76.1 million29%

.

Note: Current rate based on Clarksons SIN April 2018 rates of $12,000 per day for 4,250 TEU vessels, $11,500 per day for 3,450 TEU vessels, $20,000 per day for 8,200 TEU

vessels and $27,000 per day for 10,000 TEU vessels.15 year average rates; 4,250 TEU $20,388; 3,450 TEU: $17,286 per day. Average rates for 8,200 TEU and 10,000 TEU:

$33,475 per day reflect a seven year period. Cash flow generation assumes normal operational performance of current fleet.

Rates shown in above tables are weighted to reflect vessel sizes for open days.

Fleet of 25 Vessels w/ Sale & Leaseback Financing

15-year average charter rates would provide $76.1 million Free Cash Flow in 2018


15


FY 2018E FY 2019E

Revenue Breakeven per

open day

$17,881

$24,644

Cash Breakeven – FY2018 -2019

• Total Available Days of Fleet: 8,614 for FY2018 and 9,125 for FY2019

$6,85076.1% Fixed

20.4% Fixed

FY 2019E

.

Note: Breakeven per open day is the rate per open day necessary for total revenues to equal total expenses.


Liquidity and Debt Maturity Profile

March 31, 2018(US $’000)

As of March 31,

2018

Cash (1)$33,291

Debt (2)$114,447

Stockholders’ Equity 172,814

Capitalization $287,261

Net Debt / Capitalization 28.3%

Pro Forma Debt Maturity (3)

20.3

72.3

0

10

20

30

40

50

2018 2019 2020 2021 2022 2023

($ m

illio

n)

16

(1) Includes restricted cash of $0.4 million, as of March 31, 2018.

(2) Net of deferred financing fees of $1.4 million.

(3) Pro forma debt maturity schedule reflects the $119.0 million sale & leaseback financing (refinancing facilities maturing in 2019), and the two

new $61.0 million term loans that are expected to be funded in Q2 2018. No assurances can be provided that the Company will successfully

complete the sale & leaseback financing.

Current Debt Maturity

31.8

5.1 1.70.0

10.0

20.0

30.0

40.0

50.0

2018 2019 2020 2021 2022 2023

($ m

illio

n)


Fleet Summary

17

25 Vessels (120K TEU)Average age of combined fleet: 10.1 years

25 Containerships

1 Vessel

10,000 TEU

2 Vessels

8,204 TEU

19 Vessels

4,250 - 4,730 TEU

3 Vessels

3,450 TEU

10,000 TEU 16,408 TEU 82,780 TEU 10,350 TEU


Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Feb-20 Apr-20 Jun-20

APL Atlanta

APL Denver

APL Los Angeles

APL Oakland

NileDutch Okapi

Navios Tempo

Navios Unison

MOL Devotion

MOL Destiny

Navios Spring

Navios Domino

Navios Azure

YM Unity

Navios Indigo

MOL Delight

YM Utmost

Navios Vermillion

Navios Verde

Navios Summer

Navios Lapis

MOL Dedication

Navios Amaranth

Navios Felicitas

Navios Amarillo

Navios Verano

$26,850 July 2018 (1)

$26,850 February 2019 (1)

$9,500 November 2018

$26,850 November 2018 (1)

$26,663 March 2019

Employment Summary

$ 7,431 July 2018

18

Charter Coverage

Remainder 2018 (Q2-Q4 )

$7,604 July 2018

$9,144 May 2018

$34,266 October 2018 (1)

$7,093 July 2018

$9,000 August 2018

$8,444 November 2018

42.7%

$8,133 October 2018

$9,000 August 2018

$7,575 June 2018

$34,266 August 2018(1)

$9,381 August 2018

$27,156 May 2020 (1)

$27,156 April 2020 (1)

$27,156 March 2020 (1)

$27,156 June 2020 (1)

30.7%

69.3%

Fixed days Open days

$10,468 May 2019

$11,011 May 2019

$11,603 November 2018

$26,850 September 2018 (1)

Daily charter-out rate net of commissions, where applicable. See fleet appendix for further detail.

Charter expiration dates shown reflect expected redelivery date based on the midpoint of the full redelivery period in the charter agreement, unless otherwise noted.

(1) Charter expiration dates shown reflect earliest redelivery date of the full redelivery period in the charter agreement.


Navios Holdings agreed to provide Navios Containers the following:

Commercial and Technical Management

10-year agreement

Opex - initial rates ~ 5% below the industry average (1)

• $6,100 per day for 3,000 up to 5,500 TEU containerships, fixed for two years

• $7,400 per day for 8,000 and 10,000 TEU containerships, fixed for two years

Administrative Services

Reimbursement of allocated G&A costs

No Other fees and expenses

NO additional technical or commercial management fees

NO commissions charged for commercial management

NO commissions or fees charged for any sale or purchase transaction

NO commissions or fees charged for originating any loan or other financing transactions

Economies of Scale

(1) Drewry Shipping Consultants – Annual Report 2016/2017. Drewry only identifies opex and drydock amortizations, but does not include commercial management or other costs. Based

on the 2016 average for vessel operating costs for containership sizes between 3,000 and 6,000 TEU, and for vessels between 8,000 and 10,000 TEU. 19

Navios Containers leverages the economies of scale of Navios Holdings

from a ~200 vessel diverse fleet under management


NMCI Q1 2018 Earnings Highlights

20

Earnings Highlights

(Figures in $’000, except active vessels, TCE and available

days) Three Months Ended

March 31, 2018

Revenue $29,917

EBITDA 15,706

Net Income 3,041

EPS $0.10

Active Vessels at period end 22

Available Days 1,907

TCE $15,259

EBITDA represents net income before interest and finance costs, before depreciation and amortization. We use EBITDA as liquidity measure and reconcile

EBITDA to net cash provided by/(used in) operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA is calculated as follows: net cash

provided by operating activities adding back, when applicable and as the case may be, the effect of (i) net increase/(decrease) in operating assets, (ii) net

(increase)/decrease in operating liabilities, (iii) net interest cost, (iv) deferred finance charges and (v) payments for drydock and special survey costs. Navios

Containers believes that EBITDA is a basis upon which liquidity can be assessed and represents useful information to investors regarding Navios Containers’

ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Containers also believes that

EBITDA is used (i) by prospective and current lessors as well as potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition

candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

EBITDA has limitations as an analytical tool, and therefore, should not be considered in isolation or as a substitute for the analysis of Navios Containers’ results as

reported under U.S. GAAP. Some of these limitations are: (i) EBITDA does not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA

does not reflect the amounts necessary to service interest or principal payments on our debt and other financing arrangements; and (iii) although depreciation and

amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA does not reflect any cash

requirements for such capital expenditures. Because of these limitations, among others, EBITDA should not be considered as a principal indicator of Navios

Containers’ performance. Furthermore, our calculation of EBITDA may not be comparable to that reported by other companies due to differences in methods of

calculation.


Balance Sheet

21

Selected Balance Sheet Data (in $’000)

March 31, 2018 December 31, 2017

Cash & cash equivalents (1) $33,291 $14,501

Other current assets 15,255 6,870

Vessels, net 189,663 177,597

Total Assets $296,529 $266,811

Other current liabilities $9,268 $7,060

Current portion of long term debt, net 40,747 42,499

Long term debt, net of current portion and discount 73,700 76,534

Stockholders’ equity 172,814 140,718

Total Liabilities & Stockholders’ Equity $296,529 $266,811

Net Debt / Book Capitalization 28.3% 40.2%

(1) Includes restricted cash of $0.4 million as of March 31, 2018 and $0.3 million as of December 31, 2017.


Industry Overview


5.3%

2.1%

4.2%

5.7% 5.2% 4.9%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

160

180

200

220

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7e

201

8f

201

9f

growthm TEU

Source : Clarkson Research Services, IMF Apr 2018

Trade Growth % World GDP Growth % (RHS)

1996 – 2017 CAGR = 7.0%

World Container Trade 1996-2019

World trade growth

2016 4.2%

2017 e 5.7%

2018 F 5.2%

2019 F 4.9%

23


907

1,686

1,070 1,169

1,667

538 53837

434

517

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

On1/1/2017

On1/1/2018

Orderbook by year of delivery:Actual # vessels delivered: 2015 = 211; 2016 = 132; 2017 = 152; 2018 = 67

‘000 TEU

2016 2017 2018 2017 2018 2019 2020 2021

Before non-delivery

Deliveries

2018 Apr* 0.54 million TEU delivered; 0.70 million projected (23% non deliveries by TEU); 67 vessels delivered

2017 1.17 million TEU delivered; 1.69 million projected (31% non deliveries by TEU); 152 vessels delivered



2014 1.51 million TEU delivered; 1.62 million projected ( 7% non deliveries by TEU); 207 vessels delivered


2012 1.26 million TEU delivered; 1.58 million projected (20% non-deliveries by TEU); 212 vessels delivered



Container Ship Orderbook

Source: Clarksons; *Apr Non-deliveries are preliminary

Orderbook on 5/3/18: 2018= 0.83 M TEU; 2019= 0.97 M TEU;

2020= 0.63 M TEU; 2021= 0.15 M TEU24

Non-deliveries

32%

32%


1.4%

4.6%

10.3%

0%

5%

10%

15%

20%

Fleet Age Profile (% TEU)

25+ yrs 20-24 yrs 15-19 yrs

Source: Clarksons; Unless noted, all data in TEU; YTD through 5/3/18;

*Apr Non-deliveries are preliminary

Containership Net Fleet, Age Profile + Historical Scrapping

DemolitionYear Total Demolition (‘000 TEU) % of Fleet2000 15.5 0.35%

2001 36.2 0.74%

2002 68.1 1.23%

2003 25.7 0.42%

2004 8.0 0.12%

2005 2.3 0.03%

2006 23.8 0.29%

2007 20.9 0.22%

2008 101.2 0.93%

2009 378.4 3.07%

2010 132.6 1.02%

2011 77.9 0.55%

2012 334.7 2.17%

2013 444.2 2.72%

2014 372.6 2.16%

2015 193.5 1.05%

2016 654.4 3.30%

2017 399.6 1.99%

2018 Thru 5/3 25.8 0.12%

Deliveries Scrapping Net Fleet Growth

Year Actual Projected% Non-

DeliveryYear TEU

% of

FleetYear TEU % of Fleet

Fleet Period

End

2018 Apr* 536 K 700 K 23% 2018 26 K 0.1% 2018(1) 510 K 2.4% 21,342 K

2017 1,169 K 1,686 K 31% 2017 400 K 2.0% 2017 766 K 3.8% 20,832 K

2016 907 K 1,386 K 35% 2016 654 K 3.3% 2016 247 K 1.2% 20,066 K

2015 1,659 K 1,889 K 12% 2015 193 K 1.1% 2015 1,461 K 8.0% 19,819 K

2014 1,513 K 1,624 K 7% 2014 373 K 2.2% 2014 1,139 K 6.6% 18,358 K

2013 1,347 K 1,840 K 27% 2013 444 K 2.7% 2013 890 K 5.4% 17,220 K

2012 1,265 K 1,578 K 20% 2012 335 K 2.2% 2012 916 K 5.9% 16,330 K

2011 1,224 K 1,652 K 26% 2011 78 K 0.5% 2011 1,129 K 7.9% 15,414 K

0.40 M = 143 Vessels Scrapped in 2017

2018 Net Fleet Growth 0.51 M =

0.54 M Delivered – 0.03 M Scrapped

Total Containership Fleet: 5,218

2018 Deliveries: 67 ships, 536K TEU to 5/3/18

3.49 M TEU

25(1) Net Fleet Growth YTD reflects deliveries and scrapping through 5/3/18

For the whole fleet that is: 0.54M TEU delivered – 0.03M TEU scrapped


6%

14%

8%

0%1% 0%

31%

36%

13%

0%

10%

20%

30%

40%

2%

7%

7%

9%

5%

3%3% 3%

6%

5%

3%

2%

0%0%

2%

0%0% 0% 0% 0% 0%

0%

2%

4%

6%

8%

10%2016 2017 2018

Orderbook and Scrapping by Vessel SizeOrderbook-to-Fleet Ratio by Segment Scrapping in % of Fleet by Segment

Attractive supply characteristics for the 4,000 - 5,100 TEU and 7,500 - 10,000 TEU ships

No orderbook

for 4,000-5,099

TEU segment

Source: Clarksons Research Services, Alphaliner

26

No orderbook

for 7,500-

10,000 TEU

segment


Improving Fundamentals 2,000-5,100 TEU Sizes


28

Deployment 4,000 – 5,100 TEU Containerships: Depends on Specifications

Pre Panama Canal expansion, main trading route was Far East – US (through old Panama Canal locks)

Post Canal expansion, deployment in Far East – US East Coast declined by 81%: vessels redeployed to

different trades after being replaced by wider and larger vessels

Redeployment limited due to port restrictions in high growth trading areas (Africa and Intra Asia)

~260/270 LOA, Draft 12.5 m, Beam 32m

~290 LOA, Draft 13.5m, Max Beam 32m

Not all Panamaxes Are the Same

Shorter vessels with shallower draft found new

deployment in Africa and Intra Asia where limitations

in port infrastructure eliminate larger and deeper

vessels

Less deployment options for longer and deeper draft

vessels led to increased scrapping and idle capacity

Baby Panamax

Panamax Max

88% of the 4-5,100 TEU vessels scrapped

since 2015 were Panamax Maxes

(95 out of 108 ships) 13

95

0

20

40

60

80

100

Baby panamax Panamax Max

54,465 TEU

435,827 TEU

# of vessels

Vessels Scrapped

Source: Clarksons


29

NMCI Baby Panamaxes Trading in High Growth Trading Areas

Higher trade growth in Intra Asia and Africa N-S favoring NMCI Fleet

Trade Growth - NMCI Baby-Panamax Fleet Deployment (1)

Intra Asia

6.6%

(1) NMCI Fleet voyages for Nov 2017 – Jan 2018, trade growth estimate for 2018

Africa N-S

7.2%


0

5

10

15

20

25

30

35

40

NB 5 10 15 20 25


$ M

illi

on

s

Discount to Newbuild Price Parity

30

Historical NB Price ($mm) Discount to NB Parity


Source: Clarksons

Scrap value

20

30

40

50

60

70

80

90

100

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

3.6-3.8K, infl adj Avg 1996-2017, infl adj

$ M

illi

on

s

Avg. ~$56.1m

Avg. ~$44.4m


2,000 to 5,100 TEU Trade: Intra-Asia Outpaces World

2-5,100 TEU Intra-Asia Deployment

Source: Clarksons Research

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

10

20

30

40

50

60

70

2013 2014 2015 2016 2017e 2018f

Intra-Asia (M TEU LHS) Intra-Asia (% growth RHS)

Global Trade (% growth RHS)

Intra-Asia Trade Growth 2013 to 2018

Intra-Asia trade lane has been one of the fastest growing, outpacing world container trade growth

every year since 2013

Currently accounts for 29% of total container trade

2,000 to 5,100 TEU vessels saw an increase of 97% since 2013 in deployment on the Intra-Asia

trade lane

168

331

0

50

100

150

200

250

300

350

Jan 2013 Apr 2018

# of vessels

97%

31


Partners Trade Start date

Cosco, Evergreen, Yangming North Europe East Med Nov 2017

Cheng Lie, APL Korea, China SE Asia Nov 2017

Cosco China Indonesia Dec 2017

APL, OOCL China Pakistan Dec 2017

WHL, Cosco China West India Jan 2018

WHL, Cosco, IAL, OOCL, SeaCon China East India Jan 2018

PIL China Latin America Jan 2018

MCC China SE Asia Mar 2018

Cosco, CMA CGM, Evergreen, OOCL North Europe USEC Apr 2018

Evergreen Thailand Indonesia Apr 2018

ONE Japan Thailand, Vietnam Apr 2018

HMM Asia North Europe Apr 2018

SM Lines Asia US West Coast May 2018

32

Growing cargo volumes and capacity expansions boosts demand for 4,000 – 5,000 TEU vessels

Line operators in order to increase market share are starting new strings to service their customers

Line operators new services creates demand for additional 66 vessels

New Services Boost Demand for 4,000 - 5,000 TEU Vessels

66Vessels

Source: Alphaliner


Fleet Development (# of vessels)

2013: 94 removed vs 69 delivered





2018 YTD: 5 removed vs 19 delivered

-

200,000

400,000

600,000

Jan 2017 Apr 2018

33

Improving Fundamentals for 2,000 to 5,100 TEU Fleet

Idle CapacityFleet DeploymentFleet Size

96%

4,200

4,600

5,000

5,400

Jan 2017 Apr 2018 4,000

4,400

4,800

5,200

5,600

6,000

Jan 2017 Apr 2018

2.6%

7.1%

Increase in Intra-Asia trade lifts deployment

Idle capacity decreased by 96% since January 2017

Source: Clarksons: YTD through 5/3/18

TEU ‘000 TEU ‘000 TEU

-25 -58 -62

-166-202

-188

-300

-200

-100

0

-100

-50

0

2013 2014 2015 2016 2017 2018 YTD

2-5.1K TEU Annual Net Fleet Growth (LHS) 2-5.1K TEU Cumulative Net Fleet Growth (RHS)

Cumulative since 2013: -188 vessels

Fleet decreased 3.1%

Record 445,000 TEU

scrapped in 2016 in 2,000 to 5,100 TEU sector


Attractive Opportunities in 7,500-10,000 TEU Sizes


20%

21%

59%

35

7,500-10,000 TEU Vessels - the Workhorses of Containerships

Source: Trade map based on Clarkons Seanet (8,000-11,000 TEU).

Vessel deployment data from Alphaliner Apr 2018.

In ~60% of worldwide containership

deployments, 7,500-10,000 vessels dominate

EU – US

Far East – US

Africa related

M East related

Lat Am related

Oceania related

tradeIntra Asia

Intra Europe

and other(0-5,100 teu vessels –

89% of the trade)

Worldwide Containership Deployments

Far East – EU(10,000+ teu

vessels – 89%

of the trade )

1.47

0.65

1.98

2.42

3.66

2.31

0.000.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0 Million TEU


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jan 2015 Apr 2018

Other

Africa related

EU America

M East related

Lat Am related

FE America

FE Europe

36

7,500-10,000 TEU The New “Panamax” Post Canal Expansion

Pre cascading

main trading route

New trading routes

post Panama canal

expansion

7,500 – 10,000 TEU Containership Trade Development

Source: Alphaliner

Pre and post Panama

canal expansion

trading routes

Million TEU

2015 - 2018 Deployment by Trading Route (+0.54 Million TEU)

3.5

4.0 0.04 M TEU

0.26 M TEU

0.18 M TEU

0.42 M TEU

0.28 M TEU

0.10 M TEU

0.75 M TEU

Increase in deployment in

worldwide trade more than

offset decline in Far East –

Europe trade due to Cascading

Panama Canal expansion

created new trading routes

Far East – US East coast and

Far East – Lat Am East coast

trade, currently deploy 30% of

the 7,500 -10,000 TEU fleet


0

10

20

30

40

50

60

70

80

90

100

NB 5 10 15 20 25


$ M

illi

on

s

Discount to Newbuild Price Parity

37

Historical NB Price ($mm) Discount to NB Parity


Source: Clarksons

Scrap value

40

60

80

100

120

140

160

180

06 07 08 09 10 11 12 13 14 15 16 17 18

8.5K - 9.1K TEU infl adj Avg 1996-2017, infl adj

$ M

illi

on

s

Avg. ~$108.1m


Appendix


Navios Containers Fleet

39

Vessel Name TEU Built Employment Exp Date(2) Charter Rate (1)

Navios Verano 3,450 2006 TC May-2018 $9,144

Navios Summer 3,450 2006 TC Aug-2018 $9,000

Navios Spring 3,450 2007 TC Nov-2018 $8,444

Navios Vermillion 4,250 2007 TC Aug-2018 $9,000

Navios Indigo 4,250 2007 TC Oct-2018 $8,133

Navios Amaranth 4,250 2007 TC July-2018 $7,093

Navios Amarillo 4,250 2007 TC June-2018 $7,575

Navios Verde 4,250 2007 TC Aug-2018 $9,381

Navios Azure 4,250 2007 TC Nov-2018 $11,603

Navios Domino (ex MOL Dominance) 4,250 2008 TC Nov-2018 $9,500

MOL Dedication 4,250 2008 TC Jul-2018(3) $26,850

MOL Delight 4,250 2008 TC Sep-2018(3) $26,850

MOL Destiny 4,250 2009 TC Nov-2018(3) $26,850

MOL Devotion 4,250 2009 TC Feb-2019(3) $26,850

Navios Lapis 4,250 2009 TC July-2018 $7,604

Navios Tempo 4,250 2009 TC

May-2018

May-2019

$7,411

$11,011

Niledutch Okapi (ex Navios Dorado) 4,250 2010 TC May-2019 $10,468

Navios Felicitas 4,360 2010 TC July-2018 $7,431

APL Oakland 4,730 2008 TC Mar-2020(3) $27,156

APL Los Angeles 4,730 2008 TC Apr-2020(3) $27,156

APL Denver 4,730 2008 TC May-2020(3) $27,156

APL Atlanta 4,730 2008 TC June-2020(3) $27,156

Total – 22 vessels 93,130

Owned vessels to be delivered in Q2

2018TEU Built Employment Exp Date(2) Charter Rate (1)

YM Utmost 8,204 2006 TC Aug-2018(3) $34,266

YM Unity 8,204 2006 TC Oct-2018(3) $34,266

Navios Unison 10,000 2010 TC Mar-2019 $26,663

Total – 3 vessels 26,408

(1) Daily charter-out rate net of commissions, where applicable.

(2) Charter expiration dates shown reflect expected redelivery date based on the midpoint of the full redelivery period in the charter agreement, unless otherwise noted.

(3) Charter expiration dates shown reflect earliest redelivery date of the full redelivery period in the charter agreement.


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