Fleet Overview - Navios Partners has a diversified fleet of 176 vessels across dry bulk, containership, and tanker segments[8, 23] - The average age of the fleet is 97 years, which is younger than the industry average[18, 23] - The company's fleet has a total vessel value of $45 billion[18] Financial Highlights - Navios Partners reported revenue of $13 billion for FY 2023[47] - The company's Adjusted EBITDA for FY 2023 was $748 million, an increase of 119% compared to the previous year[47] - Navios Partners has a contracted revenue backlog of $33 billion[18] - The company's cash balance as of December 31, 2023, was $296 million, a 692% increase from the previous year[47] Strategic Initiatives - Navios Partners is executing a fleet renewal and modernization strategy, including a $16 billion investment in newbuilding vessels[30] - The company has secured $09 billion in contracted revenue from its newbuilding program[30] - Navios Partners sold 17 vessels in 2023 and YTD 2024, generating $3276 million in gross proceeds[31] Market Outlook - The report highlights disruptions in global trade due to the Red Sea situation and Panama Canal transits, which are expected to increase ton miles on all shipping segments[63] - Global oil demand is expected to grow by 12% in 2024 to 1030 million barrels per day[95] - The product tanker fleet is expected to grow by 14% in 2024[104]

DRAFT DRAFT DRAFT 1 Second Quarter 2023 Earnings Presentation August 23, 2023 2 Highlights Forward-Looking Statements Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition o ...

I think what we like about the diversified platform is that we can be able to capture every opportunity that comes to us without being restricted one way or the other. You remember when we were doing drybulk in 2021, when we did our containers early on, then we enter a new sector in the tankers, we expanded again on the tankers, we will seek the best, more attractive opportunity. And maybe just one final one for me, just about the containers. Clearly, that's been a nice source of visibility, and you've paid ...

DRAFT DRAFT 2 3 | --- | --- | --- | |-------|---------------------|-------| | | | | | | Chartering strategy | | 4 Selected Segment Data DRAFT Balance Sheet ➢ $343.6 million to finance six newbuilding vessels (1.8% average margin; 11 years average term) ▪ $242.2 million gross sale proceeds from 13 vessels ➢ $160.3 million completed in Q1 2023 ➢ $ 81.9 million to close in Q2 2023 ▪ Two Japanese newbuilding Capesize vessels delivered (March and April) 7 Evolution of Quarterly Adjusted EBITDA(1) (in $ million) ...

[Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements regarding the company's plans, strategies, business prospects, and market trends, subject to numerous risks and uncertainties - This report contains forward-looking statements regarding the company's plans, strategies, business prospects, and market trends. These statements are based on management's current expectations and are subject to numerous risks and uncertainties[10](index=10&type=chunk)[12](index=12&type=chunk) - Key areas covered by forward-looking statements include the ability to pay cash distributions, future financial results, charter hire rates, vessel values, debt repayment, access to capital markets, and the ability to integrate acquired fleets[11](index=11&type=chunk) - The company cautions that actual results could differ materially from these statements due to significant uncertainties, many of which are beyond its control and have been exacerbated by events like the COVID-19 pandemic and the Ukrainian/Russian conflict[13](index=13&type=chunk) [PART I](index=4&type=section&id=PART%20I) [Item 3. Key Information](index=5&type=section&id=Item%203.%20Key%20Information) This section details the primary risks facing the company, categorized into business and industry risks, indebtedness risks, risks related to its equity units, and risks concerning its organizational and tax structure [Risks Relating to Our Business and our Industry](index=5&type=section&id=Risks%20Relating%20to%20Our%20Business%20and%20our%20Industry) The company's business is subject to significant industry-specific risks, including the highly cyclical and volatile nature of charter rates and dependence on global demand, particularly from China - The shipping industry is highly cyclical, with the Baltic Dry Index (BDI) ranging from a low of **530** in February 2023 to a high of **5,650** in October 2021, and the Containership Timecharter Rate Index falling from **434** in April 2022 to **95** by February 2023[34](index=34&type=chunk)[35](index=35&type=chunk) - The business is heavily reliant on China's economy, which accounted for approximately **74%** of global seaborne iron ore trade and **23%** of seaborne crude oil trade in 2022[44](index=44&type=chunk) - Customer concentration has decreased, with no single customer accounting for **10%** or more of total revenues in 2022, a contrast to prior years[86](index=86&type=chunk) - As of March 2023, the newbuilding orderbook as a percentage of the existing global fleet stood at approximately **7%** for drybulk carriers, **29%** for containerships, and **4%** for tankers, indicating varied risks of future oversupply across sectors[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Risks Relating to Our Indebtedness](index=32&type=section&id=Risks%20Relating%20to%20Our%20Indebtedness) The company's significant debt level, totaling **$1.959 billion** as of December 31, 2022, poses risks from restrictive covenants and interest rate volatility - As of December 31, 2022, the company's total borrowings amounted to **$1,959.0 million**, which could impair the ability to obtain additional financing and requires a substantial portion of cash from operations for debt service[180](index=180&type=chunk) - Financing arrangements contain restrictive covenants, including maintaining security value to loan ratios (**105%-140%**), a minimum EBITDA to interest expense ratio of at least **2.00:1.00**, and total liabilities to total assets ratios ranging from less than **0.75** to **0.80**[190](index=190&type=chunk) - The company is exposed to interest rate volatility as borrowings are based on floating rates like SOFR, and it does not currently have interest rate swap arrangements to hedge this exposure[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) [Risks Relating to Our Units](index=34&type=section&id=Risks%20Relating%20to%20Our%20Units) Ownership of the company's common units carries risks, including the board's discretion over cash distributions, potential unit price volatility, and limited unitholder voting rights - The board of directors has discretion over cash distributions, having suspended them in February 2016 and reinstated them in March 2018[196](index=196&type=chunk) - The partnership agreement restricts voting rights, stipulating that any person or group owning more than **4.9%** of common units cannot vote the excess units, a limitation not applicable to the general partner or its affiliates except in independent director elections[209](index=209&type=chunk)[210](index=210&type=chunk) [Risks Relating to Our Organizational Structure, Taxes and Other Legal Matters](index=37&type=section&id=Risks%20Relating%20to%20Our%20Organizational%20Structure%2C%20Taxes%20and%20Other%20Legal%20Matters) The company's organizational structure presents risks, including dependence on its Managers, potential conflicts of interest with affiliates, and adverse U.S. federal income tax consequences for unitholders - The company depends on its Managers for significant commercial, technical, and administrative services, with fees and cost reimbursements representing a significant percentage of revenues[214](index=214&type=chunk)[249](index=249&type=chunk) - Navios Holdings owns approximately **10.5%** of the company's common units, and its affiliates may have conflicts of interest that could favor their own interests over those of other unitholders[244](index=244&type=chunk) - There is a risk that U.S. tax authorities could treat the company as a "Passive Foreign Investment Company" (PFIC), which would have adverse tax consequences for U.S. unitholders; however, based on current operations, the company believes it was not a PFIC for 2022[220](index=220&type=chunk)[221](index=221&type=chunk) - Recent tax law changes, particularly "downward attribution" rules, could result in the company being treated as a "Controlled Foreign Corporation" (CFC), which would have adverse tax consequences for U.S. unitholders owning **10%** or more of the equity[225](index=225&type=chunk) [Item 4. Information on the Partnership](index=43&type=section&id=Item%204.%20Information%20on%20the%20Partnership) This section provides a comprehensive overview of the partnership, including its history, strategic developments, business operations, fleet composition, competitive strengths, customer base, and the regulatory landscape [History and Development of the Partnership](index=43&type=section&id=A.%20History%20and%20Development%20of%20the%20Partnership) Navios Partners, formed in 2007, has significantly grown its international dry cargo and tanker vessel fleet through strategic mergers and acquisitions, including a **36-vessel** drybulk fleet in 2022 - Completed the merger with Navios Maritime Containers L.P. (NMCI) on March 31, 2021, making NMCI a wholly-owned subsidiary[259](index=259&type=chunk) - Acquired a controlling interest in Navios Maritime Acquisition Corporation (NNA) on August 25, 2021, and completed the full merger on October 15, 2021[260](index=260&type=chunk)[261](index=261&type=chunk) - Acquired a **36-vessel** drybulk fleet from Navios Holdings for **$835.0 million**, with deliveries completed in July and September 2022[265](index=265&type=chunk) [Business Overview](index=46&type=section&id=B.%20Business%20Overview) The company operates a diversified fleet of **175** vessels with **23** newbuildings, pursuing stable cash flows through long-term charters while navigating competitive markets and extensive environmental regulations - The company is committed to achieving "net-zero" carbon emissions by **2050** through operational improvements and investment in new, efficient technologies[268](index=268&type=chunk) - Fleet Composition as of March 13, 2023 | Vessel Type | Count | | :--- | :--- | | Drybulk Vessels | 82 | | Containerships | 47 | | Tanker Vessels | 46 | | **Total** | **175** | - The company has a significant newbuilding program, including **12** containerships, **6** Aframax/LR2 tankers, and **5** other vessels expected for delivery through **2026**[271](index=271&type=chunk)[284](index=284&type=chunk) - The company's chartering strategy for 2023 involves having approximately **88.0%** of containership days, **41.1%** of drybulk days (ex-index), and **72.9%** of tanker days (ex-index) fixed to secure stable cash flows while maintaining some market exposure[283](index=283&type=chunk) - The company is subject to significant environmental regulations, including the IMO's EEXI and CII requirements effective January 1, 2023, and the upcoming inclusion of maritime transport in the EU's Emissions Trading System (ETS) starting in 2024[383](index=383&type=chunk)[391](index=391&type=chunk)[393](index=393&type=chunk) [Operating and Financial Review and Prospects](index=78&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes the company's financial performance, highlighting a **69.7%** revenue increase in 2022 due to fleet expansion and higher Time Charter Equivalent (TCE) rates, alongside liquidity, capital expenditures, and non-GAAP measure reconciliations [Operating Results](index=81&type=section&id=A.%20Operating%20results) For the year ended December 31, 2022, time charter and voyage revenues increased by **69.7%** to **$1,210.5 million**, driven by fleet expansion and a **6.1%** rise in the Time Charter Equivalent (TCE) rate, leading to increased net income - Financial Performance Comparison (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Time charter and voyage revenues | $1,210.5 M | $713.2 M | | Net income attributable to unitholders | $579.2 M | $516.2 M | - Key Fleet Performance Indicators (2022 vs. 2021) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Available Days | 49,804 | 31,884 | | Time Charter Equivalent (TCE) per day | $23,042 | $21,709 | | Fleet Utilization | 98.9% | 99.2% | - The increase in revenue was primarily due to the expansion of the fleet following the acquisition of the **36-vessel** drybulk fleet from Navios Holdings, the NMCI Merger, and the NNA Merger[486](index=486&type=chunk) - A gain on the sale of vessels of **$149.4 million** was recognized in 2022, compared to a **$33.6 million** gain in 2021[494](index=494&type=chunk) [Liquidity and Capital Resources](index=84&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) As of December 31, 2022, the company had a negative working capital position of **$307.3 million**, but anticipates sufficient cash flows and contracted revenue of **$3.5 billion** to meet obligations, with total borrowings at **$1.9454 billion** - The company had a negative working capital position of **$307.3 million** as of December 31, 2022, with current assets of **$310.4 million** and current liabilities of **$617.7 million**[505](index=505&type=chunk) - Cash Flow Summary (2022 vs. 2021) | Cash Flow Activity | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $506,340 | $277,173 | | Net cash used in investing activities | ($316,241) | ($106,252) | | Net cash used in financing activities | ($184,447) | ($32,203) | - Total borrowings, net of deferred finance costs, were **$1,945.4 million** as of December 31, 2022, an increase from **$1,361.7 million** at year-end 2021[536](index=536&type=chunk) - Capital expenditures totaled **$610.6 million** in 2022, a significant increase from **$278.8 million** in 2021, reflecting continued fleet expansion and modernization[537](index=537&type=chunk) [Critical Accounting Estimates](index=89&type=section&id=E.%20Critical%20Accounting%20Estimates) The company's financial statements rely on critical accounting estimates, particularly concerning the impairment of long-lived assets, fair value of acquisitions, and the useful lives and residual values of vessels - The acquisition of the **36-vessel** drybulk fleet from Navios Holdings in 2022 was accounted for as an asset acquisition, not a business combination[556](index=556&type=chunk)[902](index=902&type=chunk) - In 2022, the company recognized a **$7.9 million** impairment loss on four vessels committed for sale, following a **$71.6 million** impairment loss in 2020, with no impairment recorded in 2021[572](index=572&type=chunk)[576](index=576&type=chunk)[921](index=921&type=chunk) - The company estimates the useful life of its vessels at **25 years** for drybulk and tanker vessels and **30 years** for containerships, with residual values based on a scrap rate of **$340 per LWT**[580](index=580&type=chunk)[898](index=898&type=chunk) [Directors, Senior Management and Employees](index=94&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section outlines the company's leadership, board structure, and compensation practices, noting the seven-member board, independent committees, and executive compensation through the Managers - The board of directors consists of **seven members**: three appointed by the General Partner and four elected by common unitholders to serve staggered three-year terms[615](index=615&type=chunk) - Non-management directors receive an annual fee of **$80,000**, with additional fees for committee chairs, and the Chairwoman of the Board receives a fee of **$150,000 per year**[609](index=609&type=chunk) - In December 2022, the Compensation Committee approved a cash payment of **$4.4 million** to officers and directors, with an additional **$4.4 million** subject to service conditions in 2023[611](index=611&type=chunk) [Major Unitholders and Related Party Transactions](index=100&type=section&id=Item%207.%20Major%20Unitholders%20and%20Related%20Party%20Transaction) This section details the ownership structure and key agreements with related parties, including major unitholders like Navios Holdings (**10.5%**) and the Omnibus and Management Agreements governing operations and competition - Major Unitholders as of March 17, 2023 | Beneficial Owner | Common Units | Percentage | | :--- | :--- | :--- | | Navios Holdings | 3,183,199 | 10.5% | | Pilgrim Global ICAV | 3,087,401 | 10.2% | | Angeliki Frangou | 1,550,632 | 5.1% | - The Omnibus Agreement with Navios Holdings includes non-competition clauses and grants rights of first offer on the sale of certain vessel types between the two entities[639](index=639&type=chunk)[645](index=645&type=chunk) - The company has Management Agreements with the Managers for commercial and technical vessel management and an Administrative Services Agreement for administrative support, both expiring on January 1, 2025[650](index=650&type=chunk)[658](index=658&type=chunk) [Financial Information](index=106&type=section&id=Item%208.%20Financial%20Information) This section addresses legal proceedings, including a past claim related to the 2016 Hanjin Shipping bankruptcy, and the company's cash distribution policy of **$0.05 per unit** quarterly, subject to board discretion and debt restrictions - The company's cash distribution policy, amended in July 2020, is to pay a quarterly distribution of **$0.05 per unit**, but payment is at the discretion of the Board of Directors and subject to various restrictions[668](index=668&type=chunk) - The company had previously filed claims for lost revenues from the 2016 Hanjin Shipping bankruptcy and has fully provided for these amounts in its books[665](index=665&type=chunk) [Additional Information](index=107&type=section&id=Item%2010.%20Additional%20Information) This section provides further details on the company's corporate structure, material contracts, and tax considerations, including its Marshall Islands entity status, U.S. tax election, and Section 883 exemption for shipping income [Taxation](index=114&type=section&id=E.%20Taxation) The company, a Marshall Islands limited partnership, has elected to be treated as a corporation for U.S. federal income tax purposes and believes its international shipping income is exempt from U.S. tax under Section 883 - The company has elected to be treated as a corporation for U.S. federal income tax purposes[433](index=433&type=chunk)[694](index=694&type=chunk) - Management believes the company qualifies for the Section 883 Exemption, which exempts U.S. Source International Transportation Income from U.S. federal income tax[437](index=437&type=chunk)[438](index=438&type=chunk) - The company and its unitholders are not subject to Marshall Islands income, capital gains, or withholding taxes on distributions under current law[448](index=448&type=chunk)[731](index=731&type=chunk) [Quantitative and Qualitative Disclosures about Market Risks](index=115&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) The company is exposed to market risks, primarily interest rate risk from floating-rate debt, with a **1%** LIBOR/SOFR increase impacting 2022 interest expense by **$12.6 million**, while credit risk has decreased due to reduced customer concentration - The company is exposed to interest rate risk from its floating-rate bank borrowings; a hypothetical **1%** increase in LIBOR/SOFR would have increased its 2022 interest expense by **$12.6 million**[739](index=739&type=chunk) - Credit risk concentration has been reduced; no single customer accounted for **10%** or more of total revenues in 2022[741](index=741&type=chunk) - Foreign exchange risk exists but is limited as transactions are predominantly U.S. dollar-denominated[736](index=736&type=chunk) [PART II](index=122&type=section&id=PART%20II) [Item 15. Controls and Procedures](index=122&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2022, with no material changes reported during the year - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[749](index=749&type=chunk) - Based on the COSO framework, management assessed the company's internal control over financial reporting as effective as of December 31, 2022, an assessment audited and confirmed by the independent registered public accounting firm[753](index=753&type=chunk)[754](index=754&type=chunk)[756](index=756&type=chunk) [Item 16. Corporate Governance and Other Matters](index=123&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This section covers corporate governance, identifying Serafeim Kriempardis as the Audit Committee Financial Expert, detailing audit fees of **$0.6 million** for 2022, and noting the **$100.0 million** common unit repurchase program authorized in July 2022 - The Board of Directors has determined that Serafeim Kriempardis qualifies as an "audit committee financial expert"[758](index=758&type=chunk) - Principal Accountant Fees | Fee Type | 2022 | 2021 | | :--- | :--- | :--- | | Audit Fees | $0.6 million | $0.5 million | | Audit-Related Fees | $0 | $0 | | Tax Fees | $0 | $0 | | Other Fees | $0 | $0 | - In July 2022, the Board authorized a common unit repurchase program for up to **$100.0 million**; as of December 31, 2022, no repurchases had been made under this program[768](index=768&type=chunk) [PART III](index=125&type=section&id=PART%20III) [Item 18. Financial Statements](index=125&type=section&id=Item%2018.%20Financial%20Statements) This section presents the audited consolidated financial statements for Navios Maritime Partners L.P. for fiscal years 2022, 2021, and 2020, including balance sheets, statements of operations, cash flows, and detailed notes - Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $310,424 | $226,340 | | Vessels, net | $3,777,329 | $2,852,570 | | **Total Assets** | **$4,895,704** | **$3,623,299** | | Total Current Liabilities | $617,740 | $395,505 | | Total Non-Current Liabilities | $1,935,001 | $1,458,069 | | **Total Liabilities** | **$2,552,741** | **$1,853,574** | | **Total Partners' Capital** | **$2,342,963** | **$1,769,725** | - Consolidated Statement of Operations Highlights (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Time charter and voyage revenues | $1,210,528 | $713,175 | $226,771 | | Vessel operating expenses | ($312,022) | ($191,449) | ($93,732) | | Net income/ (loss) | $579,247 | $511,273 | ($68,541) | | Net income/ (loss) attributable to Navios Partners' unitholders | $579,247 | $516,186 | ($68,541) | - Consolidated Statement of Cash Flows Highlights (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $506,340 | $277,173 | $94,086 | | Net cash used in investing activities | ($316,241) | ($106,252) | ($83,854) | | Net cash used in financing activities | ($184,447) | ($32,203) | ($9,906) |

Navios Maritime Partners L.P. (NYSE:NMM) Q4 2022 Results Conference Call February 21, 2023 8:30 AM ET Company Participants Angeliki Frangou - Chairwoman and CEO Efstratios Desypris - COO Erifili Tsironi - CFO Ted Petrone - Vice Chairman, Navios Corporation Conference Call Participants Omar Nokta - Jefferies Operator Thank you for joining us for Navios Maritime Partners' Fourth Quarter 2022 Earnings Conference Call. With us today from the company are Chairwoman and CEO; Ms. Angeliki Frangou; Chief Operating ...

Navios Maritime Partners L.P. (NYSE:NMM) Q3 2022 Earnings Conference Call November 10, 2022 8:30 AM ET Company Participants Angeliki Frangou ??? Chairwoman and Chief Executive Officer Stratos Desypris ??? Chief Operating Officer Eri Tsironi ??? Chief Financial Officer Ted Petrone ??? Vice Chairman Conference Call Participants Omar Nokta ??? Jefferies Operator Thank you for joining us for Navios Maritime Partners Third Quarter 2022 Earnings Conference Call. With us today from the company are Chairwoman and C ...

CONFIDENTIAL – DO NOT DISTRIBUTE | --- | --- | |-------|--------------------------------------------------------------------------------------| | | | | | Partners L.P. (NYSE:NMM) Third Quarter 2022 Earnings Presentation November 10, 2022 | | | | | | | | | | 1 DRAFT Forward-Looking Statements This presentation contains and will contain 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 ...

CONFIDENTIAL – DO NOT DISTRIBUTE | --- | --- | |-------|-----------------------------------------------------------------------------------| | | | | | Partners L.P. (NYSE:NMM) Second Quarter 2022 Earnings Presentation July 28, 2022 | | | | | | | | | | 1 DRAFT Forward-Looking Statements This presentation contains and will contain 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 futur ...

Navios Maritime Partners L.P. (NYSE:NMM) Q2 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants Angeliki Frangou - Chairwoman & Chief Executive Officer Stratos Desypris - Chief Operating Officer Eri Tsironi - Chief Financial Officer George Achniotis - Executive Vice President, Business Development Conference Call Participants Omar Nokta - Jefferies Operator Thank you for joining us for Navios Maritime Partners Second Quarter 2022 Earnings Conference Call. With us today from the compa ...