Navios South American Logistics Inc. Company Presentation

Transcription

1 Navios South American Logistics Inc. Company Presentation August 2017

2 Forward Looking Statements and Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Reform Act of All statements herein other than statements of historical fact, including statements regarding business and industry prospects or future results of operations or financial position, and future dividends or distributions, should be considered forward-looking. 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 Logistics at the time this presentation was made. Although Navios Logistics 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 Logistics. Actual results may differ materially from those expressed or implied by such forward-looking statements. Included among the factors that, in management s view, could cause actual results to differ materially from the forward-looking statements contained in this report are changes in any of the following: (i) demand and/or charter and contract rates for our vessels and port facilities; (ii) production or demand for the types of dry and liquid products that are transported by our vessels or stored in our ports; (iii) operating costs including, but not limited to, changes in crew salaries, insurance, provisions, repairs, maintenance and overhead expenses; (iv) changes in interest rates; and other factors listed from time to time in the Navios Logistics filings with the Securities and Exchange Commission, including its Form 20Fs and Form 6Ks. Navios Logistics expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forwardlooking statements contained herein to reflect any change in Navios Logistics expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. EBITDA represents Net Income/(Loss) attributable to Navios Logistics stockholders before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain items as described under Earnings Highlights. EBITDA is presented because it is used by certain investors to measure a company's operating performance. EBITDA and Adjusted EBITDA are non-gaap financial measures 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. While EBITDA is frequently used as a measure of operating performance, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation. Wood Mackenzie Notice on Market and Industry Data The information upon which the Wood Mackenzie report is based has either been supplied to Wood MacKenzie by Navios Logistics or comes from Wood Mackenzie own experience, knowledge and databases. The opinions expressed in the Wood Mackenzie report are those of Wood Mackenzie. They have been arrived at following careful consideration and enquiry but we do not guarantee their fairness, completeness or accuracy. The opinions, as of this date, are subject to change. We do not accept any liability for your reliance upon them. 2

3 Navios Logistics Overview 3

4 Seasoned Management Team Angeliki Frangou Chairman Claudio Pablo Lopez CEO, Vice Chairman Ioannis Karyotis Chief Financial Officer George Achniotis EVP Business Development Ted Petrone Vice Chairman, NM ~30 years of experience in the shipping industry Chairman and CEO of Navios since August 2005 Previously founded two private shipping companies 30+ years of experience in SA Logistics business Former professor of Maritime Law at University of Belgrano Executive director of Compania Naviera Horamar S.A. since 2005 CFO since 2011 Former Project Leader at The Boston Consulting Group Master s of Science from London School of Economics and MBA from INSEAD CFO Navios Holdings PwC partner in Greece in charge of shipping practice UK Chartered Accountant 30 years experience in the accounting profession and shipping industry Joined Navios in 2006 ~40 years of experience in the shipping industry Previously, President responsible for all the commercial activities and the FFA trading desk Joined Navios in 1980 Ruben Martinez COO Port Division Horacio Enrique Lopez COO Shipping Division Carlos Augusto Lopez CCO Shipping Division Mariana Rebolo Chief Legal Counsel Navios Logistics Stratos Desypris SVP Strategic Planning Maria Lopez SVP Commercial Affairs GM of CNSA since 2005 Extensive experience in port terminal development Graduate of University of the Republic, Uruguay COO (Shipping) since years of experience in shipping industry Member of Board of Directors of Compania Naviera Horamar S.A. since 1997 CCO (Shipping) since 2008 Former Chairman of Paraná de las Palmas Shipyard and a former member of the board of Naviera Conosur S.A. 17 years of experience in corporate and maritime law Graduate of the University of Buenos Aires, Faculty law Joined Navios Logistics in 2010 Chief Financial Controller of Navios Holdings CFO Navios Partners 20 years experience in the accounting profession and in shipping industry Joined Navios in 2006 Director of Compania Naviera Horamar 6 years of experience in shipping industry MBA with honors from Pace University 4

5 Navios Logistics Operating History Horamar established 1975 CNSA dry port in Uruguay established in1956 Navios South American Logistics established by combining NM s dry port with Horamar s barge and upriver port businesses 1/1/2008 Acquired minorities in Cabotage JVs Q year storage & transshipment contract with Vale Operation of Iron Ore port Q s 1970 s Acquired two product tankers Q1 and Q Operation of 80,000 tons silo in dry port Q Operation of dry port drying & conditioning facility Q Operation of 100,000 tons silo in dry port Q Operation of 2 nd conveyor belt in dry port Q Acquired six push boats and 72 dry barges Q to Q Acquired one river tanker Q Acquired 6 pushboats, 102 dry barges and 3 oil barges Q Acquired one product tanker Q Acquired three product tankers Q2 and Q Acquired three push boats and 66 barges Q2/Q Acquired four liquid barges Q Q Acquired one bunker vessel Q

6 Navios Logistics within the Navios Universe Scale, experience and relationships 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 Importance to NSAL Access to deal flow Professional management team Alignment of interest Special Purpose Vehicles Navios Europe I & II 24 vessels: 12 Containers, 5 Panamax, 2 Handymax, 5 Product Tankers Navios Maritime Midstream Partners L.P. (NYSE: NAP) 6 VLCCs Navios South American Logistics Inc. Port terminal facilities, barging & cabotage Navios Maritime Holdings Inc. (NYSE: NM) 64 dry bulk vessels: 38 owned, 26 chartered-in Navios Maritime Acquisition Corporation (NYSE: NNA) 36 vessels: 26 product tankers, 8 VLCCs, 2 chemical tankers Navios Maritime Containers Inc. (Oslo: OTC NMCI) 14 container vessels Navios Maritime Partners L.P. (NYSE: NMM) 37 vessels: 13 Capes, 14 Panamaxes, 3 Ultra- Handymaxes, 7 Containers 6

7 Navios Logistics Ownership Structure Navios Maritime Holdings Inc. NYSE: NM Navios South American Logistics Inc. (Marshall Islands) Peers Business Inc. 63.8% Ownership 36.2% Ownership Barge Business Port Terminals Cabotage Business 338 (1) barges and push boats transporting dry and liquid cargoes across the river system Push boats Dry barges Oil barges LPG barges 1 floating dry dock Grain Terminal Nueva Palmira, Uruguay (tax free zone) 460,000 mt storage capacity 8 million tons annual transshipment capacity Iron Ore Terminal Nueva Palmira, Uruguay (tax free zone) 700,000 mt storage capacity 10 million tons annual transshipment capacity Fuel Terminal San Antonio, Paraguay 45,660 m3 storage capacity Refined product transportation along the Argentinean coast Six ocean going product tankers One river tanker (2) One bunker vessel (1) Including three new building push boats expected to be delivered in Q (2) Expected to be delivered in Q

8 Navios Logistics Highlights Leading Logistics Provider in the Hidrovia Region Largest independent grain terminal in Hidrovia Largest independent mineral terminal in Hidrovia One of the largest independent liquid terminals in Paraguay One of the largest, most versatile river barge fleets serving a diverse set of industries One of the largest Argentinean product cabotage fleet with an average age of 8 years Strong Liquidity and Favorable Credit Ratios Focus on Contracted Cash Flow Strong Counterparties Scale and Strong Asset Base Provide Operating Efficiency Favorable Market Fundamentals Seasoned Management Team with Strong Track Record and Established Brand $70.0 million total liquidity as of June 30, x Total Debt / Pro-forma LTM EBITDA (1), 4.0x Net debt / Pro-forma LTM EBITDA (1) $1.2 billion estimated 20-year aggregate EBITDA (2) from Vale port contract based on minimum guaranteed quantity Strategic positioning with fixed rate contracts and CoAs with minimum volume guarantees Long-term relationships with high contract renewal rates Diverse group of large, high-quality counterparties ADM, Bunge, Cargill, Dreyfus, Vale, Vitol, YPF among others Economies of scale provide low costs per ton transported Integrated terminal, barge and cabotage network offers substantial operating leverage Robust growth in exports of commodities Hidrovia system and coastal cabotage are critical infrastructure for region Strategic relationships Experienced management team Long operating history in region (1) LTM Pro-forma EBITDA = $55.6 million (Q LTM EBITDA) + $35 million (expected iron ore port minimum annual EBITDA) + $3.5 million (expected new building river tanker annual EBITDA) (2) Assuming operating costs similar to the operating costs of Navios Logistics existing dry port terminal, including contracted tariff escalations and adjustments 8

9 Ten Years of Investment Grain Port 274,400 mt silo space 1-ocean vessel loading pier with 1 conveyor belt loading line 1-barge discharge pier 460,000 mt silo space (+68%) 1-ocean vessel loading pier with 2 conveyor belt loading lines 1-barge discharge pier Iron Ore Port 700,000 mt stock pile space 2-ocean vessels loading piers with 1 conveyor belt loading line 2-barges discharge piers Liquid Port Cabotage Barges 35,280 m 3 tank space 1 tanker vessel 13 push boats 100 barges 45,660 m 3 tank space (+29%) 8 tanker vessels (2) (+700%) 27 push boats (1) (+108%) 311 barges (+211%) ~ $500 million invested in critical infrastructure over 10 years $94 million Pro-forma EBITDA (3) (1) Including three new building push boats expected to be delivered in Q (2) Including one new building river tanker expected to be delivered in Q (3) LTM Pro-forma EBITDA = $55.6 million (Q LTM EBITDA) + $35 million (expected iron ore port minimum annual EBITDA) + $3.5 million (expected new building river tanker annual EBITDA) 9

10 Significant Capacity for Growth Iron Ore Port Dynamics Corumba produces high grade lump ore Corumba lump ore commands significant premium over the standard 62% Fe Sinter Fines benchmark 2016 regional production reflected a historical low in iron ore prices Opportunity Capitalize on 6 million tons of available capacity at new port for Vale and other industry participants 10 million tons p.a. total Port expansion into available land Grain Port Barges Hidrovia countries = ~ 55% of global soybean production 6% 17 year CAGR in exports Navios terminal throughput up from 2.2 to 4.7 million tons in 10 years Adverse weather impact in 2016 Reduced demand for iron ore transportation in 2015/2016 Adverse weather conditions in 2016 impacted regional trade Addition of 2 nd conveyor belt loading line has increased grain port capacity Capitalize on 3 million tons of available capacity 8 million tons p.a. total Port expansion into available land Renewed demand for long-term barge transportation contracts Increased push boat capacity to move grain, ore and liquid cargoes +4.5 convoys from 2016 (new deliveries and excess capacity) 10

11 Built-in EBITDA Growth With New Terminal Vale contract includes incentives to expand throughput beyond the minimum guaranteed quantities Existing iron ore terminal capacity provides significant further EBITDA upside potential NSAL Pro-Forma EBITDA (1) NSAL Pro-Forma Net Debt/EBITDA (1) +53% +16% x 3.5x 2.6x LTM EBITDA+ Vale Minimum Guaranteed Quantity (4 mm tons) LTM EBITDA+Full Vale contract (6mm tons) LTM EBITDA + Year 1-full iron ore port capacity (10 mm tons) LTM EBITDA+ Vale Minimum Guaranteed Quantity (4 mm tons) LTM EBITDA+Full LTM EBITDA + Vale contract (6mmYear 1-full iron ore tons) port capacity (10 mm tons) Vale Transshipment Contract (1) LTM EBITDA includes $55.6 million (Q LTM EBITDA) + $3.5 million (expected new building river tanker annual EBITDA) + $35.0 million (expected annual EBITDA from 4 million tons minimum guaranteed quantity of Vale contract) + $15.0 million (expected annual EBITDA from 2 million tons additional quantity of Vale contract) + $35.0 million expected annual EBITDA at full iron ore port capacity utilization 11

12 Strong Liquidity Position As of June 30, 2017 (in million) Cash $62.9 Bank Debt 39.0 Export Financing 33.2 Senior Notes Total Debt $440.9 Shareholders Equity $347.6 Capitalization $788.5 Net Debt / Capitalization 48% Net Debt / PF LTM EBITDA (1) 4.0x PF LTM EBITDA (1) / Interest 3.3x Debt maturities Cash 62.9 Undrawn facilities (2) 7.1 Total liquidity 70.0 No debt maturities until 2022 (1) LTM Pro-forma EBITDA = $55.6 million (Q LTM EBITDA) + $35 million (expected iron ore port minimum annual EBITDA) + $3.5 million (expected new building river tanker annual EBITDA) (2) Seller s credit for new building river and estuary tanker expected to be delivered in Q

13 Integrated Transportation and Storage Services Port Terminals Grain Port Iron Ore Port Liquid Port Barge Business Cabotage Business Assets Grain transfer and storage port terminal in Nueva Palmira, Uruguay Iron ore transfer and storage port terminal in Nueva Palmira, Uruguay Liquid port in San Antonio, Paraguay 272 dry barges 36 tank barges 27 push boats (1) 3 LPG barges 1 floating dry dock 6 Product tankers (8,974 17,508 dwt) 1 Bunker Vessel (1,693 dwt) 1 River tanker (5,000 dwt) (2) Commodities transported or stored Agricultural commodities (grains, soybeans, etc) Iron ore, manganese ore Liquid cargo (primarily diesel fuel and naphtha) Dry cargo Liquid cargo LPG Refined oil products Typical Customer Contracts Long-term storage and transshipment contracts 20-year storage and transshipment contract with Vale Storage and transshipment contracts Sale of products Time charters and CoAs (1-6 years) Spot contracts Time charters (1-3 years average duration) Spot contracts Geographic Region Strategic location in Uruguay for exports of Hidrovia region s grains Strategic location in Uruguay for exports of Corumba region s minerals Strategic location for imports into land-locked Paraguay Hidrovia river system Argentinean coastal trade (1) Including three new building push boats expected to be delivered in Q (2) Expected to be delivered in Q

14 Largest Independent Logistics Provider in Hidrovia Port Terminals Cabotage Business Barge Business Grain Port Largest Independent in the Hidrovia Iron Ore Port Largest Independent in the Hidrovia DWT ( 000) Top 5 Argentinean Coastal Cabotage Players by Tonnage (1) (3) # Barges & Pushboats Top 5 Players (2) Liquid Port 0 National Shipping Antares NSAL Maruba ONA 0 (4) Ultrapetrol NSAL Fluvialba Interbarge ADM One of the Largest Independent Liquid Ports in Paraguay Key Benefits of Large Scale Lower operating costs Greater market presence Higher quality charterers Strong strategic relationships (shipyards, commercial banks, etc.) (1) Includes vessels 5,000 29,000 DWT, includes bareboat chartered-in tonnage where known (2) Including three new building push boats expected to be delivered in Q (3) Including one new building river tanker expected to be delivered in Q (4) Recently restructured through US bankruptcy proceeding Sources: Drewry, company information 14

15 Navios Logistics Presence Throughout Supply Chain Barge Transportation 338 (1) barges and push boats Dry and liquid cargos 1 floating dry dock Grain Port Liquid Port Iron ore Grains Liquid cargo Bolivia Argentina Brazil Paraguay Uruguay Port Terminals Paraguay Fuel Port Terminal Loading / Unloading 45,660 m 3 storage capacity Uruguay Grain Port Terminal Loading / Unloading 460,000 mt grain storage space Drying & conditioning facility 8 million tons annual transshipment capacity Uruguay Iron Ore Port Terminal Loading / Unloading 700,000 mt initial minerals storage space 10 million tons annual transshipment capacity Cabotage Exports 6 ocean going tankers 1 bunker vessel 1 river tanker (2) Distribution of oil products (1) Including three new building push boats expected to be delivered in Q (2) Expected to be delivered in Q

16 The New Iron Ore Terminal 16

17 Network of Large, Independent Port Terminals Port Terminals Grain Terminal Iron Ore Terminal Liquid Terminal Storage and Transshipment Located in Nueva Palmira, Uruguay (tax free zone) 460,000 mt grain storage capacity Drying and conditioning facility 8 million tons annual transshipment capacity Storage and Transshipment Located in Nueva Palmira, Uruguay (tax free zone) 700,000 mt minerals storage capacity 10 million tons annual transshipment capacity 20-year contract with Vale for port services expected $35 million annual minimum EBITDA Storage, transshipment, sale of oil products Located in San Antonio, Paraguay 45,660 m 3 storage capacity 17

18 Strong Cash Flow Profile Anchored by Vale Contract Iron ore port economics provide growing base of EBITDA 4 million tons guaranteed per year by Vale $35.0 million estimated annual EBITDA (1) $1.2 billion estimated 20-year aggregate EBITDA (1) Contracted tariff escalators provide margin protection and built-in growth 6 million tons additional available annual capacity (10 million tons total design capacity) $94M Vale has an option for additional 2 million tons, with tariff incentives 4 million tons additional capacity available $50.0 million estimated additional annual EBITDA (1) 35 Full Capacity EBITDA Build (in $ million) 15 $109M $144M 85 Significant Contracted EBITDA Growth through 2037 Contracted tariff escalators provide built-in growth $35M $1.2B LTM EBITDA+ Vale Minimum Guaranteed Quantity (4 mm tons) 2 mm tons Vale optional LTM EBITDA+Full Vale contract (6mm tons) 4 mm tons available LTM EBITDA + Year 1-full iron ore port capacity (10 mm tons) 4 mm tons MGQ 20-year cumulative MGQ EBITDA Vale has commenced transshipment of iron ore at the new terminal (1) Assuming operating costs similar to operating costs of Navios Logistics existing dry port terminal, including contracted tariff escalations and adjustments (2) LTM EBITDA includes $55.6 million (Q LTM EBITDA) + $3.5 million (expected new building river tanker annual EBITDA) 18

19 The Iron Ore Terminal at a Glance Inbound operations 1 Barge unloading pier Three berths for barges 2 Two unloading cranes 2,000 tons/hour unloading rate 3 Conveyor belt to stockpile 2,875 tons/hour rate Storage 4 Iron ore stockpiles Initial capacity 700,000 tons 5 Stacker reclaimer 2,875 tons/hour stacking rate 3,900 tons/hour reclaiming rate Transshipment operations 6 Conveyor belt to loading pier 7 Ocean pier Two berths for ocean vessels (inner/outer) Accommodates vessels up to 150,000 dwt 8 Travelling shiploader Up to 3,900 tons/hour loading rate We have only developed 55% of our available land 19

20 Critical Infrastructure Asset Improves Logistics Advantageous Location Ideally located at the mouth of the river, where the confluence of the Parana and Uruguay Rivers meets the Atlantic Strategic location set as early as 1956 when US Steel first established the port Further upstream requires expensive pilots and tugs and poses size restrictions for oceangoing vessels Further downstream open water is unsuitable for river barges to navigate Operational Efficiency Facility specialized for iron ore transshipment, built to meet Vale specifications State-of-the-art unloading equipment with 2 cranes and conveyor belt system Stacker-Reclaimer able to handle cargo without trucks or payloaders decreasing cost Travelling Shiploader loads 3,900 tons/hour translating into <2 day turnaround for baby Capesize vessels Environmentally friendly facility Unique Ability to Stockpile Only port in the region with ability to stockpile 700,000 tons storage capacity with room for future expansion into adjacent land Stockpile ensures iron ore availability year-round, avoiding loading downtime while waiting for cargo a serious operational challenge for other regional ports Mitigates potential seasonal volatility 20

21 Purpose-built NSAL Port Provides Efficient Access Feature NSAL Iron Ore Terminal San Nicolas Port NSAL Iron Ore Terminal San Nicolas Port Max Ship Size Baby Capesize Panamax Discharge Rates (Barge) 2,000 tons/hour 667 tons/hour Loading Rates (Ocean Vessels) Up to 3,900 tons/hour 1,000 tons/hour Fast and efficient traveling shiploader Slower loading through mobile conveyor Stockpile 700,000 tons (initial static capacity) Not available Easy Access to Ocean for Exports Yes No Specialized Ore Handling Equipment Yes No Automated stacker/reclaimer serves stockpile Spillage of cargo running through non-specialized equipment NSAL terminal offers a more efficient solution compared to San Nicolas, a port previously used by Vale to export Corumba ore Total logistics costs savings of up to $9/ton, including transshipment costs and savings possible from utilizing larger vessels Sources: Wood Mackenzie 21

22 Corumba Price Premium and Improved Logistics Support Production Growth High quality iron ore commands price premium The region s mines produce lump ore of exceptional quality in terms of Fe grade and trace elements The Corumbá mines ore quality matches demand growth trends, especially in higher growth Direct Reduced Iron (DRI) applications Price premium of high grade ore expected to grow further over time given the geological erosion of seaborne iron ore serving Asian markets 2016 FOB Price for Corumba Lump Ore 70.4 Higher profitability supports production growth Corumba mine output is expected to rebound to approximately 5 mm tons in the short term, and up to 10-13mm tons by 2025 Annual production was 5-8mm tons during 2010 to 2015 The significant premium for Corumba lump ore provides an attractive netback margin supporting regional production volume growth The new purpose-built NSAL terminal improves export logistics, further enhancing operational efficiency and profitability for the Corumba mines Corumba Mines Production Forecast (million tons per annum) 24.7 Significant price premium for 67% Fe Corumba Lump Ore Up to Up to Sinter Fines 62% Fe FOB Price $/ton Sources: Wood Mackenzie 2016A 2017E-2018E 2019E-2020E 2025E 22

23 Market Overview 23

24 Fresh Water Availability vs. Population: Grain Exports = Virtual Water Trade North & Central America Europe Asia Water requirement equivalent of main food products Product Unit Equivalent water in m3 per unit 15% 8% South America 26% 6% 8% 13% Africa 11% 13% 36% % of Global Water Supply % of Global Population 60% Australia & Oceania 5% <1% Fresh beef kg 15 Fresh lamb kg 10 Fresh poultry kg 6 Cereals kg 1.5 Citrus fruits kg 1 Palm oil kg 2 Puls, roots and tubers kg 1 This table gives examples of water required per unit of major food products, including livestock, which consume the most water per unit. Cereals, oil crops, and pulses, roots and tubers consume far less water. Source: SIWI and IWMI, 2004 Global Virtual Water Imbalances Will Continue to be a Driver of Agricultural Trade Source: Web site of the UNESCO/IHP Regional Office of Latin America and the Caribbean 24

25 Favorable Market Fundamentals of Hidrovia Runs over 4,500 kilometers across the agricultural heartland of South America VENEZUELA COLOMBIA ECUADOR Navios Oil Products Terminal PERU CHILE BOLIVIA ARGENTINA Source: Drewry, USDA July 2017 GUYANA SURINAME PARAGUAY URUGUAY Coastal Cabotage Trade FRENCH GUIANA BRAZIL Hidrovia River System Navios Grains and Iron Ore Port Terminals Growing exports of grain and mineral commodities - Region accounts for ~53% of global soybean production - Significant exporter to emerging market economies, such as China - Produces some of the highest quality iron ore Stable growth in oil demand - 69% of Argentina s refining capacity is located near the Hidrovia and in the River Plate - Paraguay does not produce any crude oil and relies on imports through the river system Reliance on waterborne transportation - Shortage of highway or rail infrastructure alternatives - River system provides access to Atlantic Ocean and global export markets - River barges and coastal tankers are the most costefficient method of transportation Hidrovia comparable in length to Mississippi river system with approximately 10% of the barges 25

26 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17P 17/18E 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17P 17/18E Million Metric Tons Strategically Positioned to Serve the Soybean Production Hidrovia Region Soybean Production Uruguay Soybean Production % % 50% Region % of World % % 0.0 Soybean Production Region % of World Uruguay Soybean Production Hidrovia region accounts for ~ 53% of world soybean production Uruguay is the fastest growing soybean producer in the region Note: Crop years for Soybean Production according to USDA definition, P = Preliminary, E = Estimate Source: Drewry, USDA July

27 The Corumba Region Minerals Production Million Metric Tons Thousand Metric Tons $/t Vale Corumba Iron Ore Vale Urucum Iron Ore Vale Urucum Manganese Ore MMX Iron Ore 0 Q1:14 Q2:14 Q3:14 Q4:14 Q1:15 Q2:15 Q3:15 Q4:15 Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Q2:17 0 Vale Corumba Iron Ore (LHS) MMX Iron Ore (LHS) Vale Urucum Iron Ore (LHS) Vale Urucum Manganese Ore (LHS) Source: Drewry, Vale, MMX Note: MMX production was stopped in Q due to the restructuring of the MMX Group and there is no available production data since for the mine; Lease of MMX s iron ore assets and mining rights has been assigned to Vetorial 27

28 Hidrovia Region: Stable Growth in Oil Demand ( 000 barrels per day) 2,603 2,572 2,534 2,487 2,589 2,674 2,953 3,073 2,937 3,209 3,554 3,665 3,838 3,942 4,068 3,965 3, Argentina Bolivia Brazil Paraguay Uruguay CAGR Argentina 3.9% Bolivia 3.2% Brazil 2.1% Paraguay 2.8% Uruguay 1.4% Total 2.4% Argentina s total oil demand was about 700,000 bpd in 2016 Argentina s total oil refining capacity is about 627,000 bpd 69% of Argentina s refining capacity is located near the Hidrovia and in the River Plate Estuary Paraguay does not produce any crude oil and relies on imports through the river system Source: Drewry 28

29 Q2 and H Financial Highlights 29

30 Key Financial Highlights Prudent Financial Strategy Focus on risk management Long-term debt in capital structure Strategic expansion through scalable business model Track Record of Strong EBITDA Growth High Cash Flow Visibility 12.5% CAGR Operation of new iron ore terminal provides significant built-in growth Long-term contracts with high-quality diverse group of counterparties incl. ADM, Cargill, Dreyfus, Vale etc. Strategic positioning with fixed rate contracts and CoAs with minimum volume guarantees Strong Liquidity Position $62.9 million cash as of 6/30/ x Total Debt/PF LTM EBITDA (1), 4.0x Net Debt/PF LTM EBITDA (1) 3.3x PF LTM EBITDA (1) / Interest expense Ability to Access the Capital Markets Through the Cycle Proven track record raising capital in the debt markets Remained active in capital markets raised over $850 million of bonds and bank debt since 2006 (1) LTM Pro-forma EBITDA = $55.6 million (Q LTM EBITDA) + $35 million (expected iron ore port minimum annual EBITDA) + $3.5 million (expected new building river tanker annual EBITDA) 30

31 Navios Logistics Q2 and H Earnings Highlights Navios Logistics Port Terminals Barge Business Cabotage Business (in $ 000) Three months ended June 30, 2017 Three months ended June 30, 2016 Y-O-Y Variance Six months ended June 30, 2017 Six months ended June 30, 2016 Y-O-Y Variance Revenue 59,381 58,742 1% 103, ,961 (9%) EBITDA 19,268 20,671 (7%) 29,346 41,797 (30%) Net income 4,430 7,362 (40%) 1,423 13,036 (89%) Revenue 22,793 16,186 41% 38,381 32,225 19% EBITDA 9,992 7,755 29% 14,349 13,368 7% Revenue 22,198 26,377 (16%) 41,182 52,966 (22%) EBITDA 5,969 9,020 (34%) 11,540 20,577 (44%) Revenue 14,390 16,179 (11%) 23,619 28,770 (18%) EBITDA 3,307 3,896 (15%) 3,457 7,852 (56%) Revenue ($ million) EBITDA ($ million) % CAGR 13% CAGR (1) H H (1) EBITDA for the year ended December 31, 2014 has been adjusted to exclude $27.3 million loss on bond extinguishment H H

32 Navios Logistics Q Balance Sheet Selected Balance Sheet Data (in $'000) June 30, 2017 December 31, 2016 Cash & cash equivalents (inc. restricted cash) 62,899 68,082 Accounts Receivable 20,391 32,913 Deposits for vessels, port terminals and other fixed assets, net 27, ,891 Vessels port terminal and other fixed assets, net 533, ,489 Total Assets 845, ,180 Senior notes, net of deferred financing costs 368, ,180 Current portion of long term debt 4,795 1,819 Long term debt, net of current portion 34,185 23,503 Notes payable, current (1) 4,701 4,532 Notes payable, noncurrent (1) 28,491 29,915 Current portion of capital lease obligations - 2,639 Capital lease obligations, net of current portion - 14,978 Stockholders Equity 347, ,170 Book Capitalization 788, ,736 Net Debt / Book Capitalization 48% 48% (1) Notes payable relate to the outstanding amount of the unsecured export financing line in connection with the purchase of mechanical equipment for the expansion of Navios Logistics dry port terminal 32

33