Navigator : Presentation (Q4, 2023)

Fourth Quarter 2023 Earnings Presentation

March 14, 2024

Forward Looking Statements

This presentation contains certain statements that may be deemed to be "forward- looking statements" within the meaning of applicable federal securities laws. Most forward-looking statements contain words that identify them as forward-looking, such as "may", "plan", "seek", "will", "expect", "intend", "estimate", "anticipate", "believe", "project", "opportunity", "target", "goal", "growing" and "continue" or other words that relate to future events, as opposed to past or current events. All statements, other than statements of historical facts, that address activities, events or developments that Navigator Holdings Ltd. ("Navigator" or the "Company") expects, projects, believes or anticipates will or may occur in the future, including, without limitation, acquisitions of vessels, the outlook for fleet utilization and shipping rates, general industry conditions, future operating results of the Company's vessels, capital expenditures, expansion and growth opportunities, business strategy, ability to pay dividends and other such matters, are forward- looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ any expectations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree.

Navigator cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included in this presentation speak only as of the date made, and Navigator undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, Navigator cautions you not to place undue weight on certain forward-looking statements pertaining to potential growth opportunities or long-term financial goals set forth herein.

CORPORATE PRESENTATION 2024	2

Highlights - Record Setting End of the Year Teeing Up a Strong 2024

Financial

• Total operating revenues of $141.6m for Q4, 2023, up 14.9% from $123.3m for Q4, 2022.
• Adjusted EBITDA was $71.7m for Q4, 2023, compared to $55.0m for Q4, 2022 and $72.2m for Q3, 2023.
• Net income of $17.8m, or $0.24 per share; adjusted net income of $23.1m, or $0.32 per share (highest quarterly EPS since 1Q16).
• Robust cash position of $158.2m as of December 31, 2023, after repaying $23.8m of revolving credit facilities in December 2023, giving total liquidity of $182m.
• Under the Company's Return of Capital policy, in the fourth quarter we paid a cash dividend of $0.05/share (totalling $3.7m) and repurchased 76,502 shares for an amount of $1.1m in respect of third quarter 2023 net income.
• Declared a $0.05/share dividend plus anticipated share buybacks to equal 25% of net income in respect of the fourth quarter 2023.

Commercial

• Average TCE* earned was $28,428/day for Q4, 2023 compared to $23,622/day for Q4, 2022.
• Fleet utilization remained strong at 91.3% for Q4, 2023 compared to 94.1% for Q4, 2022.
• Ethylene Export Terminal throughput volumes were 208,495 tons for Q4, 2023 compared to 262,835 tons for Q4, 2022, and were 986,666 tons for the full year 2023, compared to 1,000,000 tons of nameplate capacity.
• Expansion of our Ethylene Export Terminal at Morgan's Point is well underway.
  Contributed three progress payments totalling $35m during 2023, of which $17m was paid in the fourth quarter.
• U.S. Handysize ethane exports reached a record of 270,000 tons during the month of December

Outlook

• Utilization in Q1, 2024 expected to be near 90%, average TCE rates remain robust.
• Semi and fully-refrigerated Timecharter extensions being renewed at higher levels compared to same period last year.
• Supply picture remains attractive with a minimal Handysize orderbook of 7% compared to 21% of the fleet above 20 years of age.
• U.S. NGL production continues to rise which in turn increases excess availability of LPG and ethane.
• U.S. ethylene exports to Asia on the rise post Lunar New Year providing incremental ton-mile demand as we expect 75% of the voyages are routed away from Panama Canal and via Cape of Good Hope.
• Handysize ethane and ethylene counter seasonal during the first two months of the year providing additional demand for the segment.

CORPORATE PRESENTATION 2024

* TCE (time charter equivalent) excludes the 9 owned smaller	3
vessels commercially managed by the independent Unigas Pool.

4

Contents

• Financial
• Commercial
• Recent Developments
• Appendix

Financial

Income Statement: Highest Annual Adjusted EBITDA on Record

			2022	2023		▪ Strong operational performance in 4Q 2023, with total operating
	(US$'000)	Q4	Q4
			revenues of $141.6m, adjusted EBITDA of $71.7m, net income
			Audited	Unaudited
					attributable to stockholders of Navigator Holdings of $17.8m, and EPS of
	Operating revenues	105,115	129,068	$0.24.
						▪ Adjusted net income (which excludes unrealized gains/losses on
	Operating revenues - Unigas Pool	11,837	12,564
	Operating revenues - Luna Pool	6,333	-			derivatives instruments and vessel sales) of $23.1m, or $0.32 per share.
	Total operating revenues		123,285	141,632		▪ Ethylene terminal throughput volumes in 2023 were 986,666 tons, in line
	Brokerage commissions	1,494	1,706			with nameplate capacity, and are expected to remain near capacity in
					2024.
	Voyage expenses	16,865	18,115
	Voyage expenses - Luna Pool	5,533	-		▪ Highest annual adjusted EBITDA on record of $282.2m, and adjusted EPS
	Vessel operating expenses	43,924	46,715			(which excludes unrealized gains/losses on derivatives instruments and
	Depreciation and amortization	30,559	32,828			vessel sales) for the full year 2023 of $1.14.
	General and administrative costs	8,389	8,878
	Profit from sale of vessel	(4,363)	144				2022		2023
				Q4		Q4
	Other Income	(105)	36
			Weighted average number of vessels*	44.0		47.0
	Total operating expenses	102,296	108,422
	Operating income	20,989	33,210			Ownership days	4,048		4,324
	Foreign currency loss on senior secured bonds	(5,969)	-			Available days	3,968		4,273
	Realized gain on non-designated derivative instruments	6,888	-			Operating days	3,736		3,903
	Unrealized loss on non-designated derivative instruments	(471)	(5,254)
			Fleet utilization	94.1%		91.3%
	Net interest expense and deferred finance costs	(13,482)	(14,295)
			Average daily results in quarter:
	Loss on repayment of senior bonds	(1,102)	-
	Income taxes	(4,459)	(56)			Time charter equivalent	$ 23,622		$ 28,428
	Share of result of joint venture	7,861	5,540			Daily vessel operating expense	$ 9,060		$ 9,067
	Net income	10,255	19,145
	Net income attributable to non-controlling interest	(287)	(1,394)			*With the exception of daily vessel operating expenses, all other data in the table above excludes the
	Net income attributable to stockholders of NVGS	9,968	17,751			nine owned smaller vessels commercially managed by the independent Unigas Pool.

CORPORATE PRESENTATION 2024	6

Balance Sheet and Liquidity Position Provides A Strong Foundation for Future Growth

(US$'000)	December 31	December 31
2022	2023
		Audited	Unaudited
Assets
Cash and cash equivalents	153,194	158,242
Other current assets	75,127	97,130
Total current assets	228,321	255,372
Vessels, net	1,692,494	1,754,382
Equity method investments	148,534	174,910
Other assets	27,389	18,021
Total assets	2,096,738	2,202,685
Liabilities and equity
Net current portion of debt	99,009	120,327
Other current liabilities	60,614	65,115
Total current Liabilities	159,623	185,442
Net long-term debt	755,421	773,653
Other non-current Liabilities		8,282	10,516
Total liabilities		923,326	969,612
Equity	1,162,494	1,190,274
Non-controlling interest	10,918	42,800
Total liabilities and equity	2,096,738	2, 202,685

• Strong balance sheet with sustained liquidity and cash generation following debt refinancings/repayments.
• Total liquidity of $182m as of December 31, 2023, with cash balance forecast to increase over 2024.
• Net debt to capitalization of 34.6% as of December 31, 2023.
• Net debt to adjusted EBITDA of 2.6x for the 12 months to December 31, 2023.
• Repaid $23.8m of the $111m Term Loan and Revolving Credit Facility, but which remains available to be redrawn by the Company.

Liquidity Position Continues To Climb

	$250			$233.3
		$182.0	23.8
	$200	$178.7
	$150		23.8
million
$128.7		$159.5
	$100	$108.2
$
	$50
	50.0	50.0	50.0
	$0
	30 September, 2023	31 December, 2023	12 March, 2024

Minimum cash requirement - Bank covenant Available Cash & Cash Equivalents Undrawn vessel facilities

CORPORATE PRESENTATION 2024	7

Reducing Debt, Supportive Lender Appetite, and Opportunities to Reduce Costs

• Aggressively reducing debt with >$100m of expected annual debt amortization across 2024-25.
• Three debt maturities in 2025: $100m unsecured notes maturing in September 2025 likely to be called in March 2025; $190m of remaining 2025 maturities likely to be refinanced with a new loan >$200m, resulting in a positive liquidity event.
• Discussions around refinancing 2025 maturities already underway.

Indicative Quarterly Loan Repayment Profile

$140

$123

$120

							$105
	$100	$35
						$26	$81
	$80
million$	$26					$22	$19
	$60
									$20
	$40	$35					$31
						$22
	$20
	$26					$25	$20
	$0
	2024					2025	2026
				Q1		Q2			Q3		Q4

CORPORATE PRESENTATION 2024

Current Debt Maturity Profile

$500

$400

$ million	$300
Company						2026Company			Company2028
2024			2025Comparison		2027		2029
			$200				$136
			B						A			B
			$100				$54
																		$25
							$91*								$40
														$56
			$0						$29					$31
		$100 million Bond		$107 million facility		$210 million facility			$67 million facility
		$151 million facility		$111.8 million facility		$200 million facility

*Outstanding balance on the unsecured notes remains $100m, the purchased Bonds will not be cancelled or redeemed and will be held by the Company as treasury bonds.

8

Lean Operations and Cost Efficiencies Result In Strong Cashflow From Operations

• Low TCE breakeven levels allow Navigator to report positive EBITDA, even in the toughest market conditions, and remain cashflow positive throughout the shipping cycle
• All-incash breakeven for 2024 includes $123.1m in expected debt amortization
• Expense guidance for 2024 in-line with 2023 despite having a slightly larger fleet this year

Estimated Cash Breakeven for 2024 = $20,705/day

Expense Guidance for 2024

Company A

Daily OPEX

Mid-sized

Semi-ref ethylene

Semi-ref LPG

Fully ref LPG

Small LPG

Full Year Estimates

Vessel OPEX Cash G&A Depreciation

Net cash interest expense

	$10,990 /day
	$8,800 /day
A	$8,500 /day
$9,130 /day
Company
$7,580 /day

$172-174 million

$30-31 million

$129-131 million

$59-61 million

CORPORATE PRESENTATION 2024	9

Operational Leverage Provides Substantial EBITDA Upside

• Highest annual adjusted EBITDA on record of $282m.
• Strong adjusted EBITDA of $71.7m; eight out of the last nine quarters have resulted in at least $55m of quarterly adjusted EBITDA.
• First quarter 2024 adjusted EBITDA likely to be healthy.
• Includes our share of quarterly income from the Ethylene Export Terminal Joint Venture of $5.5m in line with historical fourth quarter results.
• Annual EBITDA generation primarily driven by shipping operations, with every +$1,000/day in TCE adding >$18m in annual EBITDA

Historical Adjusted EBITDA (2023 unaudited)

	$80
																				$69	$69 $72 $72
	$70
														$60 $56 $55
	$60														$55
	$50
million											$40					$42
$30	$26
	$40
	$32	$30	$32 $31	$29
$	$20
																$6	$7	$7		$8			$6
	$10							$3					$3	$5	$5	$4	$6
									$2
							$1
	$0
					$0
								-$1
	($10)		-$3
								Total EBITDA				Ethylene JV Net Income

		Potential Annual Adj. EBITDA Generation
	$400						$341	$359	$378
	$350					$323
		$282	$287	$305
	$300
million$	$250
$207
$200
	$150
	$100
	$50
	$0
	2022	LTM	Annualized +$1,000/ +$2,000/ +$3,000/ +$4,000/ +$5,000/
		EBITDA	EBITDA	4Q23	day	day	day	day	day
				EBITDA

* assumes 56 vessels at 90% utilization for 360 revenue days

CORPORATE PRESENTATION 2024	10