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Company Presentation
August 2015
Navios South American Logistics Inc.
2
This presentation contains 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 future events and Navios South American Logistics, Inc.’s (“Navios Logistics”, “NSAL”, or the “Company”) growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although the Company 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 the Company. 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 changes in the demand for barges, pushboats and product tanker vessels; competitive factors in the market in which the Company operates; weather-related risks; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company 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 the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. For the selected financial data presented herein, Navios Logistics compiled consolidated statements of operation and selected balance sheets for the relevant periods.
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.
Forward Looking Statements
3
Navios Logistics Overview
Navios Maritime Holdings Inc . (NYSE: NM)
• Controls 63-vessel dry bulk fleet; 40 owned and 23 long term chartered-in vessels.
• Global brand; Flexible business model
• Stable cash flow from charter out contracts and distributions (including IDRs) from subsidiaries
• FY 2014 EBITDA: $191.4 million
• Share price: $3.44 market value; value of share in public subsidiaries = $4.19
• Annual Dividend: $0.24; 7.0% yield
Navios Maritime Acquisition Corp. (NYSE: NNA)
• Fleet: 37 vessels: 27 product tankers, 6 VLCC,
4 chemical tankers
• Acquired crude and product tankers for
historically low values
• Developing leading company in tanker sector
• EBITDA: FY 2014: $156.2 million
• Market value of NM ownership: $288.3 million
• Annual dividend: $0.20; 5.1% yield
Navios South American
Logistics • Logistics operator in Hidrovia
Region
• Core operations: Port Terminal
facilities (dry & wet), barging (dry
& wet), cabotage business
• EBITDA: FY 2014: $68.8 million
20-year contract with Vale for port
services – expected $35 M annual
minimum EBITDA
Navios Maritime Partners L.P. (NYSE: NMM)
• Fleet: 31 vessels: 8 Capesize, 12
Panamax, 3 Ultra Handymax Dry Bulk
Carriers and 8 Container vessels
• MLP with high dividend payout model
• FY 2014 EBITDA:$200.0 million
• Market value of NM ownership:
$164.1 million.
• Annual dividend: $1.77; 18.4% yield
All stock prices and yields as of August 17, 2015.
Navios Maritime Midstream Partners L.P (NYSE: NAP)
• Fleet: 6 VLCCs
• Focused on long-term charter business in the
tanker midstream sector
• Options on 5 VLCC dropdowns provide built-in
fleet & distribution growth
• Pro Forma Q4 2014 EBITDA: $11.9 million
• Market value of NNA ownership: $184.2 million
• Annual dividend: $1.65; 11.3% yield
20.1% 46.1% 63.8%
60.85%
Creating Shareholder Value
4
5
(1) Including three new building push boats to be delivered in Q1 2016
Navios Maritime Holdings Inc.
NYSE: NM
Navios Logistics Ownership Structure
63.8% Ownership 36.2% Ownership
Port Terminals
Storage and Transshipment
• Bulk Terminal – Nueva
Palmira, Uruguay (tax free
zone) with 460,000 mt storage
capacity
• Fuel Terminal – San Antonio,
Paraguay with 45,660 m3
storage capacity
20-year contract with Vale for port
services – expected $35 million annual
minimum EBITDA
Barge Business
• 364(1) barges and pushboats
transporting dry and liquid
cargoes across the river system
– Push boats
– Dry barges
– Oil barges
– LPG barges
• 1 floating dry dock
Cabotage Business
• Refined product transportation
along the Argentinean coast
• Six ocean going product
tankers, two self-propelled
barges and one bunker vessel
• Strategy to secure cash flows
with long term contracts
• Awarded Brazilian Cabotage
contracts for six new building
vessels
Navios South American Logistics Inc.
(Marshall Islands)
Peers Business Inc.
Navios Logistics Highlights
6
Leading Logistics
Provider in the Hidrovia
Region of South America
Largest independent dry 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
Largest Argentinean product cabotage fleet with an average age of 6 years
Multiple Avenues of
Growth
Opportunities to invest in new port infrastructure
– 20-year contract with Vale for storage and transshipment of mineral commodities
Increasing minerals and grain production and fuel demand create need for new convoys
Opportunity to expand in Brazilian cabotage
Favorable Market
Fundamental
Robust growth in exports of grain and mineral commodities
Hidrovia system and coastal cabotage are critical infrastructure for region
Scale and Strong Asset
Base Provide Operating
Efficiency
Economies of scale provide low costs per ton transported
Integrated terminal, barge and cabotage network offers substantial operating leverage
Strong
Counterparties
Diverse group of large, high-quality counterparties
ADM, Bunge, Cargill, Dreyfus, Petrobras, Petropar, Vale, Vitol among others
Focus on Contracted
Cash Flow
Strategic positioning with fixed rate contracts and CoAs with minimum volume guarantees
Long-term relationships with high contract renewal rates
Seasoned Management
Team with Strong Track
Record and Established
Brand
Strategic relationships
Experienced management team
Long operating history in region
Integrated Transportation and Storage Services
7
Port Terminals Barge Business Cabotage Business
Asset Base
Bulk transfer and storage port
terminal in Nueva Palmira,
Uruguay
Liquid port in San Antonio,
Paraguay
295 dry barges
37 tank barges
27 pushboats1
2 small inland oil tankers
3 LPG barges
1 floating dry dock
6 Product tankers
(8,974 – 17,508 dwt)
2 self-propelled barges
1 Bunker Vessel (1,693 dwt)
Commodities Transported
or Stored
Dry cargo (cereals, soybeans,
iron ore, etc)
Liquid cargo (primarily diesel
fuel and naphtha)
Dry cargo
Liquid cargo
Liquefied Petroleum Gas (LPG)
Refined oil products
Typical Customer Contracts
Long-term storage and
transshipment contracts
New 20-year storage and
transshipment contract with
Vale for mineral commodities
Time charters and CoAs (1-6
years)
Spot market contracts
Time charters
(1-3 years average duration)
Spot market contracts
Geographic
Region
Strategic locations along the
Hidrovia river system
Hidrovia river system
Argentinean coastal trade
Opportunity to expand into
Brazilian cabotage market
1. Including three new building push boats to be delivered in Q1 2016
Barge Business Ports Cabotage
# Barges &
Pushboats
Largest Independent Dry Port
in the Hidrovia
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.)
DWT
(‘000) Top 5 Players Top 5 Argentinean Coastal Cabotage
Players by Tonnage1
Largest Independent Logistics Provider in Hidrovia
8 1. Includes vessels 5,000 – 29,000 DWT
2. Including three new building push boats to be delivered in Q1 2016
Sources: Drewry
724
364
279 271 243
0
100
200
300
400
500
600
700
800
Ultrapetrol NSAL Fluvialba Interbarge ADM
2
81 79
63
38
28
0
10
20
30
40
50
60
70
80
90
NSAL NationalShipping
Antares Maruba Ultrapetrol
Navios Logistics Presence Throughout Supply Chain
9
Argentina
Paraguay
Brazil
Bolivia
Iron ore
Grains
Liquid cargo
Dry Port
Liquid Port
Paraguay Fuel Port Terminal • Loading / Unloading
• 45,660 m3 storage capacity
Uruguay Bulk Port Terminal • Loading / Unloading
• 460,000 mt storage capacity
• Drying & conditioning facility
Uruguay
Cabotage Transportation • 6 ocean going tankers
• 2 self-propelled barges
• 1 bunker vessel
• Distribution of oil products
Barge Transportation • 3641 barges and push boats
• Dry and liquid cargos
Exports
1. Including three new building push boats to be delivered in Q1 2016
10
Market Overview
• Runs over 4,500 kilometers across the agricultural heartland of South America
– Comparable in length to the Mississippi system
Hidrovia Region Mississippi Region South America
Number of barges: ~ 2,100 Number of barges: ~ 29,000
Significant Capacity for Growth
Hidrovia: Agricultural Heartland of South America
11 Source: Drewry
12
Favorable Market Fundamentals of Hidrovia
VENEZUELA
BOLIVIA
ARGENTINA
BRAZIL
FRENCH GUIANA
SURINAMEGUYANA
COLOMBIA
ECUADOR
PERU
PARAGUAY
URUGUAY
CHILE
VENEZUELA
BOLIVIA
ARGENTINA
BRAZIL
FRENCH GUIANA
SURINAMEGUYANA
COLOMBIA
ECUADOR
PERU
PARAGUAY
URUGUAY
CHILE
• Growing exports of grain and mineral commodities
- Region accounts for ~53% of global soybean
production
- Significant expansion in iron ore production
- Significant exporter to emerging market
economies, such as China
• 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 from larger refineries in Argentina
• 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
cost-efficient method of transportation
Coastal
Cabotage
Trade
Navios
Oil
Products
Terminal
Navios
Dry Port
Terminal
Hidrovia
River
System
Source: Drewry, USDA August 2015
New Jumbo Barges: Even More Efficient Design
13
One Jumbo Barge:
2,875 Tons
One Mississippi Barge:
1,500 Tons
~2x
Jumbo Hopper Car:
112 Tons
~26x
Large Semi:
26 Tons
~111x
One 16-Mississippi Barge
Convoy = 24,000 dwt
~2.1x 100-Car unit Train ~920x Large Semis (Trucks)
Source: IOWA Department of Transportation
One 20-Mississippi Barge
Convoy = 30,000 dwt
~2.7x 100-Car unit Train ~1,150x Large Semis (Trucks)
One 12-Jumbo Barge
Convoy = 34,500 dwt
~3.1x 100-Car unit Train ~1,330x Large Semis (Trucks)
=
=
=
=
=
=
Strategically Positioned to Serve the Soybean
Production…
14
Hidrovia accounts for ~53% of
world soybean production
Mill
ion M
etr
ic T
ons
Note: Crop years for Soybean Production according to USDA definition, P = Preliminary, E = Estimate
Source: Drewry, USDA August 2015
Regio
n %
of W
orld
Hidrovia Region Soybean Production Uruguay Soybean Production
40%
45%
50%
55%
60%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
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
P
15
/16
E
Soybean Production Region % of World
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
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
P
15
/16
E
Uruguay Soybean Production
Mill
ion M
etr
ic T
ons
Uruguay is the fastest growing soybean
producer in the region
…and the Corumba Region Iron-Ore Production
15 Source: Drewry, Vale
1.1 1.6 1.8 1.9 2.3
4.2 4.4 4.6
3.5
6.0 7.1
7.8 7.0
5.8
0
1
2
3
4
5
6
7
8
9
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Million Metric Tons Corumba Iron Ore Production
Source: Web site of the UNESCO/IHP Regional Office of Latin America and the Caribbean
Water requirement equivalent of main
food products
Global Virtual Water Imbalances Will Continue to be a Driver of Agricultural Trade
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
Product Unit Equivalent water
in m3 per unit
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
North &
Central America
Africa
Asia
South
America
Europe
15% 8%
26%
6%
11% 13%
8% 13%
36%
60%
5% <1%
Australia
& Oceania
% of Global Water Supply % of Global Population
Fresh Water Availability vs. Population:
Grain Exports = Virtual Water Trade
16
17
Q2 2015 Financial Highlights
Navios Logistics Q2 & H1 2015 Earnings Highlights
18
(in $ ‘000)
Three months
ended
June 30, 2015
Three months
ended
June 30, 2014
Y-O-Y
Variance
Six months
ended
June 30, 2015
Six months
ended
June 30, 2014
Y-O-Y
Variance
Navios
Logistics
Revenue 66,256 69,968 (5%) 131,318 115,566 14%
Adjusted EBITDA 22,723 21,4261 6% 38,322 35,3881 8%
Net income/(loss) 9,412 (21,435) n/a 10,238 (21,612) n/a
Adjusted net income 9,412 5,8461 61% 10,238 5,6691 81%
Port
Terminals
Revenue 21,247 24,596 (14%) 47,777 34,123 40%
Adjusted EBITDA 10,168 9,6161 6% 15,622 13,7921 13%
Barge
Business
Revenue 26,549 28,326 (6%) 51,232 50,978 1%
Adjusted EBITDA 9,327 4,7641 96% 15,733 8,7951 79%
Cabotage
Business
Revenue 18,460 17,046 8% 32,309 30,465 6%
Ajusted EBITDA 3,228 7,0461 (54%) 6,967 12,8011 (46%)
1. EBITDA and Net Income for the three and six months ended June 30, 2014 and for the year ended December 31, 2014 have been adjusted to exclude $27.3 million loss on bond
extinguishment
32.5 39.0
48.1 56.8
68.8
35.4 38.3
2010 2011 2012 2013 2014 1H 20141H 2015
188.0
234.7 247.0 237.1 268.8
115.6 131.3
2010 2011 2012 2013 2014 1H 20141H 2015
9.4%
CAGR 20.6%
CAGR
EBITDA ($ million) Revenue ($ million)
(1)
(1)
Navios Logistics Q2 2015 Balance Sheet
19
Selected Balance Sheet Data (in $'000)
June 30, 2015 December 31, 2014
Cash & cash equivalents 72,020 71,931
Accounts Receivable 37,086 29,317
Deposits for vessels, port terminals and other fixed assets, net 27,699 23,225
Vessels port terminal and other fixed assets, net 437,934 443,625
Total Assets 788,245 786,133
Senior notes, net of deferred financing costs 366,703 366,250
Current portion of long term debt 69 69
Long term debt, net of current portion 356 390
Current portion of capital lease obligations 2,886 1,449
Capital lease obligations, net of current portion 18,555 20,911
Stockholders Equity 324,013 313,775
Book Capitalization 712,582 702,844
Net Debt / Book Capitalization 44% 45%
www.navioslogistics.com