Featured Report: NNA Q1 2021 Earnings Presentation

Q1 2021 Earnings Presentation

May 19, 2021

Forward-Looking Statements and Definitions

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 expectations, including Navios Acquisition's future dividends, ability to refinance its Ship Mortgage Notes, expected cash flow generation and Navios Acquisition's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further employment contracts. 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. Such statements include comments regarding expected revenue and employment contracts. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Navios Acquisition at the time these statements were made. Although Navios Acquisition 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 risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Acquisition. 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: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on 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, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing, potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it, 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 employment contracts, our ability to maximize the use of our vessels, expected demand in the tanker sector, the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including fluctuations in charter rates and vessel values and factors affecting vessel supply and demand, the aging of our fleet and resultant increases in operation and dry docking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, 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, 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, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Acquisition operates, risks associated with operations outside the United States and other factors listed from time to time in Navios Acquisition's filings with the Securities and Exchange Commission, including its annual and interim reports filed on Form 20-F and Form 6-K. Navios Acquisition 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 Acquisition's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Acquisition makes no prediction or statement about the performance of its common stock.

EBITDA represents net income/ (loss) before interest and finance costs, before depreciation and amortization and before income taxes. Adjusted EBITDA in this document represents EBITDA excluding certain items as described under "Financial Highlights". Adjusted net income/ (loss) and Adjusted income/ (loss) per share (basic and diluted) represent net income/ (loss) and income/ (loss) per share (basic and diluted), excluding certain items as described under "Financial Highlights". We use Adjusted EBITDA as liquidity measure and reconcile EBITDA and Adjusted 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/(used in) 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) amortization of deferred finance costs and other related expenses; (v) equity/ (loss) in net earnings of affiliates, net of dividends received;

1. payments for dry dock and special survey costs; (vii) impairment charges; (viii) gain / (loss) on sale of assets; (ix) gain/ (loss) on debt repayment; (x) stock- based compensation and

1. transaction costs. Navios Acquisition believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and present useful information to investors regarding Navios Acquisition's ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Acquisition also believes that EBITDA and Adjusted EBITDA are used: (i) by 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 and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Acquisition's results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Acquisition's performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

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Ownership Structure

Navios Maritime Holdings Inc.	Public Shareholders
NYSE: NM

29.1% Interest70.9% Interest

Navios Maritime Acquisition Corp. NYSE: NNA

45 Vessels (consolidated)(1)

20 Vessels

12 VLCCs, 4 MR2 Product Tankers, 2 MR1 Product Tankers, 2 Chemical Tankers

100% ownership unrestricted subsidiary

Navios Maritime Midstream Partners LP

25 Tankers

10 LR1, 14 MR2 Product Tankers, 1 MR1 Product Tanker

(1) Excluding Nave Neutrino, VLCC (agreement for sale in Q2 2021)	3

Company Highlights

Modern &	◼ 45 vessel fleet (consolidated)(1)
◼ 12 VLCC, 10 LR1, 18 MR2, 3 MR1, 2 Chemical Tankers
Diverse Tanker Fleet
◼ Average age = nine years
	◼	FY 2020
		•	Revenue = $361.4 million
Improved Credit Metrics		•	EBITDA = $190.0 million
◼	Improved credit metrics
		• 2020 Net debt/EBITDA = 5.4x
		• 2019 Net debt/EBITDA = 8.8x
	◼ Four VLCC newbuilds under bareboat lease delivering through 2022
Fleet Renewal		• Two delivered in October 2020 and in February 2021
	◼ Financially attractive bareboat in/out structure
Chartering Strategy:	◼ ~ $500 million in contracted revenue
◼ Remaining 9M 2021 available days
Downside Protection with		• 53.4% fixed on base rate
Upside Participation		• 13.7% fixed with profit sharing arrangements
	•	23.2% open
Risk Management	◼	Chartering strategy balances risk and opportunity
◼	Diverse group of first-class charterers (Shell, Koch, Chevron, CSET etc)
Seasoned Management Team	◼	Strategic relationships with banks, shipyards and other industry players
Strong Track Record	◼	Average industry experience of 20+ years per person

1. Excluding Nave Neutrino VLCC (agreement for sale in Q2 2021)

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World GDP Growth: Highest in 50 years

• IMF projects world GDP to grow by 6.0% in 2021
• ~90% correlation of world oil demand to global GDP growth
• World oil demand is expected to grow by 6.0% this year

	6
(YoY)	5
4
3
change	2
1
	0
	-1
%	-2
-3
	-4
	-5

-6-7-8-9-10

1970:

$3.0 trillion

World GDP Growth and Oil Demand

World GDP (IMF)

Oil Demand (IEA)

World GDP of 1970 ~ 30x smaller than World GDP of 2019	2019:
	$87.7 trillion

Source: International Energy Agency May 2021, IMF Apr 2021, World Bank	5