Navios Maritime Holdings Inc.

Thank you for joining us for Navios Maritime Partners 3rd Quarter 2021 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frango, Chief Operating Officer, Mr. Stratos Desipris, Chief Financial Officer, Ms. Eri Ciceroni, and Executive Vice President of Business Development, Mr. George Agniotis. As a reminder, this conference call is being webcast. To access the webcast, please go to the investor section of Navios Maritime Partners website at www.navios-mlp.com. You'll see the webcasting link in the middle of the page and a copy of the presentation referenced in today's earnings conference call will also be found there. Now, I will review the Safe Harbor Statement. This conference call should contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navia's partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navios Partners management and are subject to risks and uncertainties which would cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Navios Partners filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows. First, Ms. Ferngu will offer opening remarks. Next, Mr. DeCipri will give an overview of Navios Partners segment data. Next, Ms. Cerrone will give an overview of Navios Partners financial results. Then, Mr. Acmiotis will provide an operational update and an industry overview. And lastly, we'll open the call to take questions. Now I turn the call over to Navia's partners, Chairwoman and CEO, Ms. Angeliki Frango. Angeliki?

Thank you, Daniela, and good morning to all of you joining us on today's call. I am pleased with the results for the third quarter of 2021. During Q3, Navios Partners recorded revenue of $228 million, adjusted EBITDA of $145.2 million, and net income of $162.1 million. Please turn to slide 4. On October 15, 2021, we completed a transformative merger with Navios Acquisition. Today, NMM is one of the largest U.S. publicly listed shipping companies with 15 vessel types diversified across three segments and servicing more than 10 end markets. About a third of our fleet operates in each of the dry bulk container ships and tiger segments. We believe that this combination offers a stronger, more resilient entity, mitigating sector-specific cyclicality. NMM has a solid balance sheet and a modest leverage, a healthy income statement, and a pipeline of about $2.2 billion in contracted revenue. Overall, our diversified platform should provide flexibility, allowing us to capitalize on cross-segment opportunities. We expect to be able to provide more predictable returns to our unit holders despite uneven sector performance. As shown on slide 5, 2021 has been a transformational year as we expanded in new segments. Here today, in 2021, our fleet increased by 163% in terms of number of vessels through 88 net vessel additions. Through these S&P activities, we increased our fleet size and reduced average age for our existing segments. For container ships, we increased fleet size by 330% and reduced average age by 24%. For dry bulk, we increased capacity by 36% and reduced average age by 18%. Of course, we also entered into the crude and product tanker segments. In sum, as shown on the chart on the bottom of the slide, we have increased available days by 171% to 47,268 available days. thereby accumulating significant scale in a short period of time. Slide 6 details our company highlights. As I mentioned previously, Navios Partners is one of the largest U.S. publicly listed companies with over 140 vessels. We operate in three segments, have 15 diversified vessel types, and serve over 10 end markets. Our diversification strategy creates resilience in the overall business model and enables us to mitigate individual segment volatility, while also allowing us to leverage each independent sector's fundamentals. Diversification also provides flexibility in our operational and financial strategies as we charter, sell, and purchase vessels and obtain debt finance. The net result is that we should have more predictable entity leverage returns. We also anticipate that diversification and scale should make NMM a more attractive investment platform as we take advantage of global trade patterns. Our three pillars are now working well. Both dry bulk and container ship sectors are performing and the tanker sector has improved materially in the past few months with more improvement expected. Slide 7 reviews our recent developments. During Q3, NMM generated $228 million in revenue, $145.2 million in adjusted EBITDA, and $162.1 million in net income. For the nine months of 2021, NMM generated $469.8 million in adjusted EBITDA and $398.6 million in net income. In 2021, we completed two mergers, our merger with Navios Containers Increased container ships by 29 vessels. The recently completed merger with Navios Acquisition gave us a strong foothold in the tanker sector with 45 tanker vessels. We also continue to renew and expand our fleet. Year-to-date, we expanded our dry bulk fleet by 10 vessels, increasing dry bulk capacity by 36% and reducing its average age by 18%. The busy acquisition calendar has not distracted us from our balance sheet. We remain disciplined. Our cash balance was $141.2 million as of September 30th, And we have 28.3% in net LTV. About 91% of our debt is covered by the scrap value of our vessels alone. We have been taking advantage of robust markets. NMM has $2.2 billion of contracted revenue. We will be profitable in Q4 as contracted revenue exceeds total expenses by $57 million. Yet, we still have 2,473 open or index-linked days. Our busy acquisition calendar has not distracted us from our balance sheet. We remain disciplined. Our cash balance was $141.2 million as of September 30th, and we have 28.3% in FMTV.

About 91% of our debt is covered by the value of our vessels alone.