##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 20-F
 (Mark One)
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring shell company report
 For the transition period from            to
 Commission file number
 001-33311
 Navios Maritime Holdings Inc.
  Not Applicable
  Republic of Marshall Islands
  85 Akti Miaouli Street
Piraeus, Greece 185 38
  Kenneth R. Koch, Esq., Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Tel: (212) 935-3000,
Fax: (212) 983-3115, The Chrysler Center, 666 Third Avenue, New York, New York 10017
  Securities registered or to be registered pursuant to Section 12(b) of the Act:
 Title of each class
    
    Name of each exchange on which registeredCommon Stock, par value $.0001 per share
    
    New York Stock Exchange LLC
 Securities registered or to be registered pursuant to Section 12(g) of the Act.
    
    NoneSecurities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
    
    None
   o þ
 o þ
 þ o
 þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
 þ o o
 o o
 o þ




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##### 



TABLE OF CONTENTS
 FORWARD-LOOKING STATEMENTS
    
    
    3Item 1. Identity of Directors, Senior Management and Advisers
    
    
    4Item 2. Offer Statistics and Expected Timetable
    
    
    4Item 3. Key Information
    
    
    4Item 4. Information on the Company
    
    
    21Item 4A. Unresolved Staff Comments
    
    
    43Item 5. Operating and Financial Review and Prospects
    
    
    43Item 6. Directors, Senior Management and Employees
    
    
    78Item 7. Major Shareholders and Related Party Transactions
    
    
    82Item 8. Financial Information
    
    
    84Item 9. The Offer and Listing
    
    
    85Item 10. Additional Information
    
    
    86Item 11. Quantitative and Qualitative Disclosures about Market Risk
    
    
    90Item 12. Description of Securities Other than Equity Securities
    
    
    91PART IIItem 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    92Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    92Item 15. Controls and Procedures
    
    
    92Item 16A. Audit Committee Financial Expert
    
    
    92Item 16B. Code of Ethics
    
    
    92Item 16C. Principal Accountant Fees and Services
    
    
    92Item 16D. Exemptions from the Listing Standards for Audit Committees
    
    
    93Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    93Item 16F. Changes in Registrants Certifying Accountant
    
    
    94Item 16G. Corporate Governance
    
    
    94PART IIIItem 17. Financial Statements
    
    
    95Item 18. Financial Statements
    
    
    95Item 19. Exhibits
    
    
    95EX-8.1EX-12.1EX-12.2EX-13.1EX-15.1EX-8.1EX-12.1EX-12.2EX-13.1EX-15.1EX-15.2EX-15.3
  2




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FORWARD-LOOKING STATEMENTS
 This Annual Report should be read in conjunction with the consolidated financial
statements and accompanying notes included in this report.
      3




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##### Table of Contents



PART I
 
 Item 1. Identity of Directors, Senior Management and Advisers
  
 Item 2. Offer Statistics and Expected Timetable
  
 Item 3. Key Information
 A. Selected Financial Data
    Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    

    
    PredecessorYear
    
    
    Year
    
    
    Year
    
    
    Year
    
    
    August 26,
    

    
    January 1,Ended
    
    
    Ended
    
    
    Ended
    
    
    Ended
    
    
    2005 to
    

    
    2005 toDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    

    
    August 25,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    

    
    2005(Expressed in thousands of U.S. Dollars - except per share data)Statement of
Income DataRevenue
    
    $
    598,676
    
    
    $
    1,246,062
    
    
    $
    758,420
    
    
    $
    205,375
    
    
    $
    76,298
    

    
    $
    158,630Time charter, voyage
and logistic business
expenses
    
    
    (353,838
    )
    
    
    (1,066,239
    )
    
    
    (557,573
    )
    
    
    (84,225
    )
    
    
    (39,119
    )

    
    
    (91,806
    )Direct vessel expenses
    
    
    (31,454
    )
    
    
    (26,621
    )
    
    
    (27,892
    )
    
    
    (19,863
    )
    
    
    (3,137
    )

    
    
    (5,650
    )General and
administrative
expenses
    
    
    (43,897
    )
    
    
    (37,047
    )
    
    
    (23,058
    )
    
    
    (15,057
    )
    
    
    (4,582
    )

    
    
    (9,964
    )Depreciation and
amortization
    
    
    (73,885
    )
    
    
    (57,062
    )
    
    
    (31,900
    )
    
    
    (37,129
    )
    
    
    (13,504
    )

    
    
    (3,872
    )Provision for losses
on accounts
receivable
    
    
    (2,237
    )
    
    
    (2,668
    )
    
    
    
    
    
    
    (6,242
    )
    
    
    (411
    )

    
    
    Gain on sale of
assets/partial sale
of subsidiary
    
    
    20,785
    
    
    
    27,817
    
    
    
    167,511
    
    
    
    
    
    
    
    
    

    
    
    Interest income from
investments in
finance lease
    
    
    1,330
    
    
    
    2,185
    
    
    
    3,507
    
    
    
    
    
    
    
    
    

    
    
    Interest income
    
    
    1,699
    
    
    
    7,753
    
    
    
    10,819
    
    
    
    3,832
    
    
    
    1,163
    

    
    
    1,350Interest expense and
finance cost, net
    
    
    (63,618
    )
    
    
    (49,128
    )
    
    
    (51,089
    )
    
    
    (47,429
    )
    
    
    (11,892
    )

    
    
    (1,677
    )Gain (loss) on
derivatives
    
    
    375
    
    
    
    8,092
    
    
    
    25,100
    
    
    
    20,322
    
    
    
    (1,980
    )

    
    
    2,684Other income
    
    
    6,749
    
    
    
    948
    
    
    
    445
    
    
    
    1,283
    
    
    
    52
    

    
    
    1,426Other expense
    
    
    (20,508
    )
    
    
    (7,386
    )
    
    
    (767
    )
    
    
    (472
    )
    
    
    (1,012
    )

    
    
    (572
    )Income before equity
in net earnings of
affiliated companies
and joint venture
    
    
    40,177
    
    
    
    46,706
    
    
    
    273,523
    
    
    
    20,395
    
    
    
    1,876
    

    
    
    50,549
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Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    

    
    PredecessorYear
    
    
    Year
    
    
    Year
    
    
    Year
    
    
    August 26,
    

    
    January 1,Ended
    
    
    Ended
    
    
    Ended
    
    
    Ended
    
    
    2005 to
    

    
    2005 toDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    

    
    August 25,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    

    
    2005(Expressed in thousands of U.S. Dollars - except per share data)Equity in net
earnings of
affiliated companies
and joint venture
    
    
    29,222
    
    
    
    17,431
    
    
    
    1,929
    
    
    
    674
    
    
    
    285
    

    
    
    788Income before taxes
    
    $
    69,399
    
    
    $
    64,137
    
    
    $
    275,452
    
    
    $
    21,069
    
    
    $
    2,161
    

    
    $
    51,337Income taxes
    
    
    1,565
    
    
    
    56,113
    
    
    
    (4,451
    )
    
    
    
    
    
    
    

    

    
    
    Net income
    
    $
    70,964
    
    
    $
    120,250
    
    
    $
    271,001
    
    
    $
    21,069
    
    
    $
    2,161
    

    
    $
    51,337Less: Net income
attributable to the
noncontrolling
interest
    
    
    (3,030
    )
    
    
    (1,723
    )
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Net income
attributable to
Navios Holdings
common stockholders
    
    $
    67,934
    
    
    $
    118,527
    
    
    $
    271,001
    
    
    $
    21,069
    
    
    $
    2,161
    

    
    $
    51,337Less:Incremental fair
value of securities
offered to induce
warrants exercise
    
    
    
    
    
    
    
    
    
    
    (4,195
    )
    
    
    
    
    
    
    
    

    
    
    Income available to
common shareholders
    
    $
    67,934
    
    
    $
    118,527
    
    
    $
    266,806
    
    
    $
    21,069
    
    
    $
    2,161
    

    
    $
    51,337Weighted average
number of shares,
basic
    
    
    99,924,587
    
    
    
    104,343,083
    
    
    
    92,820,943
    
    
    
    54,894,402
    
    
    
    40,189,356
    

    
    
    874,584Basic earnings per
share
    
    $
    0.68
    
    
    $
    1.14
    
    
    $
    2.87
    
    
    $
    0.38
    
    
    $
    0.05
    

    
    $
    58.70Weighted average
number of shares,
diluted
    
    
    105,194,659
    
    
    
    107,344,748
    
    
    
    99,429,533
    
    
    
    55,529,688
    
    
    
    45,238,554
    

    
    
    874,584Diluted earnings per
share
    
    $
    0.65
    
    
    $
    1.10
    
    
    $
    2.68
    
    
    $
    0.38
    
    
    $
    0.05
    

    
    $
    58.70Balance Sheet Data
(at period end)Current assets,
including cash
    
    $
    427,680
    
    
    $
    505,409
    
    
    $
    848,245
    
    
    $
    195,869
    
    
    $
    114,539Total assets
    
    
    2,935,182
    
    
    
    2,253,624
    
    
    
    1,971,004
    
    
    
    944,783
    
    
    
    789,383Current liabilities,
including current
portion of long term
debt
    
    
    196,080
    
    
    
    271,532
    
    
    
    450,491
    
    
    
    108,979
    
    
    
    133,604Total long term debt,
including current
portion
    
    
    1,622,706
    
    
    
    887,715
    
    
    
    614,049
    
    
    
    568,062
    
    
    
    493,400Stockholders equity
    
    
    925,480
    
    
    
    805,820
    
    
    
    769,204
    
    
    
    274,216
    
    
    
    207,758
 5




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Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    

    
    PredecessorYear
    
    
    Year
    
    
    Year
    
    
    Year
    
    
    August 26,
    

    
    January 1,Ended
    
    
    Ended
    
    
    Ended
    
    
    Ended
    
    
    2005 to
    

    
    2005 toDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    

    
    August 25,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    

    
    2005(Expressed in thousands of U.S. Dollars - except per share data)Other Financial DataNet cash provided by (used in) operating activities
    
    $
    216,451
    
    
    $
    (28,388
    )
    
    $
    128,075
    
    
    $
    56,432
    
    
    $
    24,371
    

    
    $
    71,945Net cash used in investing activities
    
    
    (802,538
    )
    
    
    (452,637
    )
    
    
    (16,451
    )
    
    
    (111,463
    )
    
    
    (119,447
    )

    
    
    (4,264
    )Net cash provided by (used in) financing activities
    
    
    626,396
    
    
    
    187,082
    
    
    
    216,285
    
    
    
    116,952
    
    
    
    68,880
    

    
    
    (50,506
    )Book value per common share
    
    
    9.17
    
    
    
    8.02
    
    
    
    7.23
    
    
    
    4.42
    
    
    
    4.70
    

    
    
    5.67Cash dividends per common share
    
    
    0.27
    
    
    
    0.38
    
    
    
    0.24
    
    
    
    0.25
    
    
    
    
    

    
    
    Cash dividends per preferred share
    
    
    52.35
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Cash paid for common stock dividend declared
    
    
    27,154
    
    
    
    28,588
    
    
    
    26,023
    
    
    
    15,382
    
    
    
    
    

    
    
    Cash paid for preferred stock dividend declared
    
    
    429
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Adjusted EBITDA(1)
    
    $
206,801
    
    
    $
    165,478
    
    
    $
    349,875
    
    
    $
    103,177
    
    
    $
26,537
    

    
    $
    55,696
 
 (1)
    
    EBITDA represents net income before interest, taxes, depreciation and amortization. Adjusted EBITDA in this document represents EBITDA before stock based compensation. EBITDA
and Adjusted EBITDA do not represent and should not be considered in isolation or as a substitute for analysis of the Companys results as reported under U.S. GAAP, and our
calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation. EBITDA and Adjusted EBITDA is
included in this document because it is a basis upon which the Company assesses its liquidity position and because it is used by certain investors to measure the Companys
ability to service and/or incur indebtedness, pay capital
expenditures, meet working capital requirements and pay dividends. The following table reconciles net cash from operating
activities, as reflected in the consolidated statements of cash flows, to Adjusted EBITDA: 6




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Adjusted EBITDA Reconciliation to Cash from Operations
 Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    
    
    Successor
    

    
    PredecessorYear
    
    
    Year
    
    
    Year
    
    
    Year
    
    
    August 26,
    

    
    January 1,Ended
    
    
    Ended
    
    
    Ended
    
    
    Ended
    
    
    2005 to
    

    
    2005 toDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    

    
    August 25,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    

    
    2005(Expressed in thousands of U.S. Dollars - except per share data)Net cash provided by (used in) operating activities
    
    $
    216,451
    
    
    $
    (28,388
    )
    
    $
    128,075
    
    
    $
    56,432
    
    
    $
    24,371
    

    
    $
    71,945Net (decrease) increase in operating assets
    
    
    (30,399
    )
    
    
    (87,797
    )
    
    
    177,755
    
    
    
    33,065
    
    
    
    5,864
    

    
    
    (14,525
    )Net (increase) decrease in operating liabilities
    
    
    (56,498
    )
    
    
    226,145
    
    
    
    (176,510
    )
    
    
    (31,086
    )
    
    
    1,720
    

    
    
    21,407Payments for drydock and special survey costs
    
    
    3,522
    
    
    
    3,653
    
    
    
    2,426
    
    
    
    2,480
    
    
    
    1,710
    

    
    
    Net interest cost
    
    
    55,237
    
    
    
    39,298
    
    
    
    38,414
    
    
    
    35,593
    
    
    
    9,476
    

    
    
    (98
    )Provision for losses on accounts receivable
    
    
    (2,237
    )
    
    
    (2,668
    )
    
    
    
    
    
    
    (6,024
    )
    
    
    (411
    )

    
    
    880Gain on sale of assets/partial sale of subsidiary
    
    
    20,785
    
    
    
    27,817
    
    
    
    167,511
    
    
    
    
    
    
    
    
    

    
    
    Unrealized gain (loss) on derivatives, warrants and interest rate swaps
    
    
    9,311
    
    
    
    (15,376
    )
    
    
    10,953
    
    
    
    12,625
    
    
    
    (16,478
    )

    
    
    (23,728
    )Earnings in affiliates and joint ventures, net of dividends received
    
    
    1,355
    
    
    
    4,517
    
    
    
    1,251
    
    
    
    92
    
    
    
    285
    

    
    
    (185
    )Unrealized losses on available for sale securities
    
    
    (13,778
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Non-cash compensation received
    
    
    6,082
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Noncontrolling interest
    
    
    (3,030
    )
    
    
    (1,723
    )
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Adjusted EBITDA
    
    $
    206,801
    
    
    $
    165,478
    
    
    $
    349,875
    
    
    $
    103,177
    
    
    $
    26,537
    

    
    $
    55,696
 B. Capitalization and Indebtedness
  C. Reasons for the Offer and Use of Proceeds
  D. Risk Factors
  7




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Risks Associated with the Shipping Industry and Our Operations
 The cyclical nature of the international drybulk shipping industry may lead to decreases in charter
rates and lower vessel values, which could adversely affect our results of operations and financial
condition.
   
    
    global and regional economic conditions;
    
    developments in international trade;
    
    changes in seaborne and other transportation patterns, such as port congestion and canal closures;
    
    weather and crop yields;
    
    armed conflicts, acts of piracy and terrorist activities;
    
    political developments; and
    
    embargoes and strikes.
  
    
    the number of vessels that are in or out of service;
    
    the scrapping rate of older vessels;
    
    port and canal traffic and congestion;
    
    the number of newbuilding deliveries; and
    
    vessel casualties.
 The economic slowdown in the Asia Pacific region has markedly reduced demand for shipping services
and has decreased shipping rates, which could adversely affect our results of operations and
financial condition.
  8




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Disruptions in world financial markets and the resulting governmental action in the United States
and in other parts of the world could have a material adverse impact on our ability to obtain
financing required to expand our business through the acquisition of vessels or new businesses.
Furthermore, such a disruption would adversely affect our results of operations, financial
condition and cash flows, causing the market price of our common stock to decline.
    When our charters contracts expire, we may not be able to successfully replace them.
  
    
    environmental, health and safety record;
    
    compliance with regulatory industry standards;
    
    reputation for customer service, technical and operating expertise;
    
    shipping experience and quality of ship operations, including cost-effectiveness;
    
    quality, experience and technical capability of crews;
    
    the ability to finance vessels at competitive rates and overall financial stability;
    
    relationships with shipyards and the ability to obtain suitable berths;
    
    construction management experience, including the ability to procure on-time
delivery of new vessels according to customer specifications;
    
    willingness to accept operational risks pursuant to the charter, such as allowing
termination of the charter for force majeure events; and
    
    competitiveness of the bid in terms of overall price.
  9




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We may employ vessels on the spot market and thus expose ourselves to risk of losses based on
short-term decreases in shipping rates.
  We are subject to certain credit risks with respect to our counterparties on contracts, and the
failure of such counterparties to meet their obligations could cause us to suffer losses on such
contracts and thereby decrease revenues.
   Trading and complementary hedging activities in freight, tonnage and Forward Freight Agreements
(FFAs) subject us to trading risks, and we may suffer trading losses which could adversely affect
our financial condition and results of operations.
   We are subject to certain operating risks, including vessel breakdowns or accidents, that could
result in a loss of revenue from the affected vessels and which in turn could have an adverse
effect on our results of operations or financial condition.
  We are subject to various laws, regulations and conventions, including environmental laws that
could require significant expenditures both to maintain compliance with such laws and to pay for
any uninsured environmental liabilities resulting
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from a spill or other environmental disaster.
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Capital expenditures and other costs necessary to operate and maintain our vessels may increase due
to changes in governmental regulations, safety or other equipment standards.
  We are subject to vessel security regulations and will incur costs to comply with recently adopted
regulations and may be subject to costs to comply with similar regulations which may be adopted in
the future in response to terrorism.
  12




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
    
    on-board installation of automatic information systems, or
AIS, to enhance vessel-to-vessel and vessel-to-shore
communications;
    
    on-board installation of ship security alert systems;
    
    the development of vessel security plans; and
    
    compliance with flag state security certification requirements.
  Acts of piracy on ocean-going vessels have increased recently in frequency and magnitude, which
could adversely affect our business.
  Our operations expose us to global political risks, such as wars and political instability that may
interfere with the operation of our vessels and thereby cause a decrease in revenues from such
vessels.
   13




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A failure to pass inspection by classification societies could result in one or more vessels being
unemployable unless and until they pass inspection, resulting in a loss of revenues from such
vessels for that period and a corresponding decrease in operating cash flows.
    Vessels may suffer damage and we may face unexpected dry docking costs, which could affect our cash
flow and financial condition.
  Rising crew costs may adversely affect our profits.
  The shipping industry has inherent operational risks that may not be adequately covered by our
insurance.
    Because we obtain some of our insurance through protection and indemnity associations, we may also
be subject to calls, or premiums, in amounts based not only on our own claim records, but also on
the claim records of all other members of the protection and indemnity associations.
  Maritime claimants could arrest our vessels, which could interrupt our cash flow.
  14




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##### Table of Contents



The risks and costs associated with vessels increase as the vessels age.
  As we expand our business, we may have difficulty managing our growth, which could increase
expenses.
  
    
    locating and acquiring suitable vessels;
    
    identifying and consummating acquisitions or joint ventures;
    
    integrating any acquired business successfully with our existing operations;
    
    enhancing our customer base;
    
    managing our expansion; and
    
    obtaining required financing.
 Unrealized losses of available for sale securities may negatively affect our results of
operations in the future.
    Any drought or significant decline in production of soybeans or other agricultural products in the
Hidrovia region, including any possible effects of climate change, or any significant change
affecting the navigability of certain rivers in the region, would have an adverse effect on our
Navios Logistics business.
 15




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##### Table of Contents



The operation of our ocean-going vessels and Navios Logistics fleet entails the possibility of
marine disasters including damage or destruction of the vessel due to accident, the loss of a
vessel due to piracy or terrorism, damage or destruction of cargo and similar events that may cause
a loss of revenue from affected vessels and could damage our business reputation, which may in turn
lead to loss of business.
  
    
    damage or destruction of a vessel due to marine disaster such as a collision;
    
    the loss of a vessel due to piracy or terrorism;
    
    cargo and property losses or damage as a result of the foregoing or less
drastic causes such as human error, mechanical failure and bad weather;
    
    environmental accidents as a result of the foregoing; and
    
    business interruptions and delivery delays caused by mechanical failure,
human error, war, acts of piracy, terrorism, political action in various
countries, labor strikes or adverse weather conditions.
  Accidents or operational disruptions in connection with loading, discharging or transiting the
rivers in our Navios Logistics business could adversely affect our operations and revenues.
  Although we have longstanding relationships with certain Japanese ship owners who provide us access
to very competitive contracts, we cannot assure you that we will always be able to maintain such
relationships or that such contracts will continue to be available in the future.
  Our Chairman and Chief Executive Officer holds approximately 23% of our common stock and will be
able to exert considerable influence over our actions; her failure to own a significant amount of
our common stock or to be our Chief
 16




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##### Table of Contents



Executive Officer would constitute a default under our secured credit facilities.
  The loss of key members of our senior management team could disrupt the management of our business.
  Certain of our directors, officers, and principal stockholders are affiliated with entities engaged
in business activities similar to those conducted by us which may compete directly with us, causing
such persons to have conflicts of interest.
  Because we generate all of our revenues in U.S. dollars but incur a portion of our expenses in
other currencies, exchange rate fluctuations could cause us to suffer exchange rate losses, thereby
increasing expenses and reducing income.
  The smuggling of drugs or other contraband onto our vessels may lead to governmental claims against
us.
  Risks Relating to Our Debt
 We have substantial debt, which could adversely affect our financial health and our ability to
obtain financing in the future, react to changes in our business and make payments under the notes.
  17




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##### Table of Contents




    
    our ability to obtain additional financing for working capital, capital expenditures, debt
service requirements, vessel or other acquisitions or general corporate purposes and our
ability to satisfy our obligations with respect to our debt may be impaired in the future;
    
    a substantial portion of our cash flow from operations must be dedicated to the payment of
principal and interest on our indebtedness, thereby reducing the funds available to us for
other purposes;
    
    we will be exposed to the risk of increased interest rates because our borrowings under our
senior secured credit facility will be at variable rates of interest;
    
    it may be more difficult for us to satisfy our obligations to our lenders, resulting in
possible defaults on and acceleration of such indebtedness;
    
    we may be more vulnerable to general adverse economic and industry conditions;
    
    we may be at a competitive disadvantage compared to our competitors with less debt or
comparable debt at more favorable interest rates and, as a result, we may not be better
positioned to withstand economic downturns;
    
    our ability to refinance indebtedness may be limited or the associated costs may increase; and
    
    our flexibility to adjust to changing market conditions and ability to withstand competitive
pressures could be limited, or we may be prevented from carrying out capital expenditures
that are necessary or important to our growth strategy and efforts to improve operating
margins or our business.
 Despite our current indebtedness levels, we and our subsidiaries may be able to incur substantially
more debt, including secured debt. This could further exacerbate the risks associated with our
substantial indebtedness.
  The agreements and instruments governing our debt will contain restrictions and limitations that
could significantly impact our ability to operate our business.
  
    
    incur or guarantee additional indebtedness;
    
    create liens on our assets;
    
    make new investments;
    
    engage in mergers and acquisitions;
    
    pay dividends or redeem capital stock;
    
    make capital expenditures;
    
    engage in certain FFA trading activities;
    
    change the flag, class or commercial and technical management of our vessels;
    
    enter into long term charter arrangements without the consent of the lender; and
    
    sell any of our vessels.
  18




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Our ability to generate the significant amount of cash needed to pay interest and principal and
otherwise service our debt and our ability to refinance all or a portion of our indebtedness or
obtain additional financing depend on multiple factors, many of which may be beyond our control.
   We may be unable to raise funds necessary to finance the change of control repurchase offer
required by the indenture governing our outstanding notes and our secured credit facilities.
  An increase in interest rates would increase the cost of servicing our debt and could reduce our
profitability.
  If the recent volatility in LIBOR continues, it could affect our profitability, earnings and cash flow.
   The market values of our vessels, which have declined from historically high levels, may fluctuate
significantly, which could cause us to breach covenants in our credit facilities and result in the
foreclosure of our mortgaged vessels.
  
    
    number of newbuilding deliveries;
    
    changes in environmental and other regulations that may limit the useful life of vessels;
    
    changes in global drybulk commodity supply;
    
    types and sizes of vessels;
    
    development of and increase in use of other modes of transportation;
    
    cost of vessel acquisitions;
    
    cost of newbuilding vessels;
    
    governmental or other regulations;
    
    prevailing level of charter rates; and
    
    general economic and market conditions affecting the shipping industry.
  19




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We may require additional financing to acquire vessels or business or to exercise vessel purchase
options, and such financing may not be available.
  We are incorporated in the Republic of the Marshall Islands, which does not have a well-developed
body of corporate law.
  We, and certain of our officers and directors, may be difficult to serve with process as we are
incorporated in the Republic of the Marshall Islands and such persons may reside outside of the
United States.
  Being a foreign private issuer exempts us from certain Securities and Exchange Commission
requirements.
  
    
    the rules under the Exchange Act requiring the filing with
the SEC of quarterly reports on Form 10-Q or current
reports on Form 8-K;
    
    the sections of the Exchange Act regulating the
solicitation of proxies, consents or authorizations in
respect of a security registered under the Exchange Act;
    
    the provisions of Regulation FD aimed at preventing
issuers from making selective disclosures of material
information; and
    
    the sections of the Exchange Act requiring insiders to
file public reports of their stock ownership and trading
activities and establishing insider liability for profits
realized from any short-swing trading transaction (i.e.,
a purchase and sale, or sale and purchase, of the issuers
equity securities within less than six months).
  We may earn United States source income that is subject to tax, thereby adversely affecting our
results of operations and cash flows.
  20




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We may be taxed as a United States corporation.
  
 Item 4. Information on the Company
 A. History and Development of the Company
        21




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B. Business overview
 Introduction
  22




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
    
    Operation of a high quality,
modern fleet.Navios Holdings
owns and charters in a modern,
high quality fleet, having an
average age of approximately 4.4
years that provides numerous
operational advantages including
more efficient cargo operations,
lower insurance and vessel
maintenance costs, higher levels
of fleet productivity, and an
efficient operating cost
structure.
    
    Pursue an appropriate balance
between vessel ownership and a
long-term chartered-in fleet.
Navios Holdings controls, through
a combination of vessel ownership
and long-term time chartered
vessels, approximately 6.6
million dwt in tonnage, making
Navios Holdings one of the
largest independent drybulk
operators in the world. Navios
Holdings ability, through its
longstanding relationships with
various shipyards and trading
houses, to charter-in vessels at
favorable rates allows it to
control additional shipping
capacity without the capital
expenditures required by new
vessel acquisition. In addition,
having purchase options on 12 of
the 27 time chartered vessels
(including those to be delivered)
permits Navios Holdings to
determine when is the most
commercially opportune time to
own or charter-in vessels. Navios
Holdings intends to monitor
developments in the sales and
purchase market to maintain the
appropriate balance between owned
and long-term time chartered
vessels.
    
    Capitalize on Navios Holdings
established reputation.Navios
Holdings believes its reputation
and commercial relationships
enable it to obtain favorable
long term time charters, enter
into the freight market and
increase its short-term tonnage
capacity to complement the
capacity of its core fleet, as
well as to obtain access to cargo
freight opportunities through COA
arrangements not readily
available to other industry
participants. This reputation has
also enabled Navios Holdings to
obtain favorable vessel
acquisition terms as reflected in
the purchase options contained in
some of its long term charters.
    
    Utilize industry expertise to
take advantage of market
volatility.The drybulk shipping
market is cyclical and volatile.
Navios Holdings uses its
experience in the industry,
sensitivity to trends, and
knowledge and expertise as to
risk management and FFAs to hedge
against, and in some cases, to
generate profit from, such
volatility.
    
    Maintain high fleet utilization
rates.The shipping industry uses
fleet utilization to measure a
companys efficiency in finding
suitable employment for its
vessels and minimizing the days
its vessels are off-hire. At
99.3% as of December 31, 2009,
Navios Holdings believes that it
has one of the highest fleet
utilization rates in the
industry.
    
    Maintain customer focus and reputation for
service and safety.Navios Holdings is recognized
by its customers for the high quality of its
service and safety record. Navios Holdings high
standards for performance, reliability, and
safety provide Navios Holdings with an
advantageous competitive profile.
    
    Enhance vessel utilization and profitability
through a mix of spot charters, time charters,
and COAs and strategic backhaul and triangulation
methods.Specifically, this strategy is
implemented as follows:
 
    
    The operation of voyage charters or spot fixtures for the
carriage of a single cargo from load port to discharge
port;
    
    The operation of time charters, whereby the vessel is
hired out for a predetermined period but without any
specification as to voyages to be performed, with the
ship owner being responsible for operating costs and the
charterer for voyage costs; and
    
    The use of COAs, under which Navios Holdings contracts to
carry a given quantity of cargo between certain load and
discharge ports within a stipulated time frame, but does
not specify in advance which vessels will be used to
perform the voyages.
  23




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##### Table of Contents



Competitive Advantages
    
    
    A high-quality, modern fleet of vessels that provides a
variety of operational advantages, such as lower insurance
premiums, higher levels of productivity, and efficient
operating cost structures, as well as a competitive
advantage over owners of older fleets, especially in the
time charter market, where age and quality of a vessel are
of significant importance in competing for business;
    
    A core fleet which has been chartered-in (some through
2023, assuming minimum available charter extension periods
are exercised) on attractive terms that allow Navios
Holdings to charter-out the vessels at a considerable
spread during strong markets and to weather down cycles in
the market while maintaining low operating expenses;
    
    Strong cash flows from creditworthy counterparties;
    
    Strong commercial relationships with both freight
customers and Japanese trading houses and ship owners,
providing Navios Holdings with access to future attractive
long term time charters on newbuildings with valuable
purchase options;
    
    Strong in-house technical management team who oversee
every step of technical management, from the construction
of the vessels in Japan or Korea to subsequent shipping
operations throughout the life of a vessel, including the
superintendence of maintenance, repairs and dry docking,
providing efficiency and transparency in Navios Holdings
owned fleet operations; and
    
    Visibility into worldwide commodity flows through its
physical shipping operations and port terminal operations
in South America.
  Shipping Operations
 Navios Holdings Fleet.
 Owned Fleet.
 24




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##### Table of Contents



Owned Vessels
 Vessel Name
    
    Vessel Type
    
    
    Year Built
    
    
    Deadweight(in metric tons)Navios Ionian
    
    Ultra Handymax
    
    
    2000
    
    
    
    52,067Navios Vector
    
    Ultra Handymax
    
    
    2002
    
    
    
    50,296Navios Horizon
    
    Ultra Handymax
    
    
    2001
    
    
    
    50,346Navios Herakles
    
    Ultra Handymax
    
    
    2001
    
    
    
    52,061Navios Achilles
    
    Ultra Handymax
    
    
    2001
    
    
    
    52,063Navios Meridian
    
    Ultra Handymax
    
    
    2002
    
    
    
    50,316Navios Mercator
    
    Ultra Handymax
    
    
    2002
    
    
    
    53,553Navios Arc
    
    Ultra Handymax
    
    
    2003
    
    
    
    53,514Navios Hios
    
    Ultra Handymax
    
    
    2003
    
    
    
    55,180Navios Kypros
    
    Ultra Handymax
    
    
    2003
    
    
    
    55,222Navios Ulysses
    
    Ultra Handymax
    
    
    2007
    
    
    
    55,728Navios Vega
    
    Ultra Handymax
    
    
    2009
    
    
    
    58,792Navios Celestial
    
    Ultra Handymax
    
    
    2009
    
    
    
    58,063Navios Magellan
    
    Panamax
    
    
    2000
    
    
    
    74,333Navios Star
    
    Panamax
    
    
    2002
    
    
    
    76,662Navios Orbiter
    
    Panamax
    
    
    2004
    
    
    
    76,602Navios Asteriks
    
    Panamax
    
    
    2005
    
    
    
    76,801Navios Bonavis
    
    Capesize
    
    
    2009
    
    
    
    180,022Navios Happiness
    
    Capesize
    
    
    2009
    
    
    
    180,022Navios Pollux
    
    Capesize
    
    
    2009
    
    
    
    180,727Navios Lumen
    
    Capesize
    
    
    2009
    
    
    
    180,661Navios Aurora II
    
    Capesize
    
    
    2009
    
    
    
    169,031Navios Stellar
    
    Capesize
    
    
    2009
    
    
    
    169,001Navios Phoenix
    
    Capesize
    
    
    2009
    
    
    
    180,242Navios Antares
    
    Capesize
    
    
    2010
    
    
    
    169,059Vanessa(1)
    
    Product Handysize
    
    
    2002
    
    
    
    19,078
 Owned Vessels to be delivered
 Vessel Name
    
    Vessel Type
    
    
    Delivery Date
    
    
    Deadweight(in metric tons)Navios Melodia
    
    Capesize
    
    
    07/2010
    
    
    
    180,000Navios Fulvia
    
    Capesize
    
    
    08/2010
    
    
    
    180,000Navios Buena Ventura
    
    Capesize
    
    
    09/2010
    
    
    
    180,000Navios Luz
    
    Capesize
    
    
    10/2010
    
    
    
    180,000Navios Etoile
    
    Capesize
    
    
    10/2010
    
    
    
    180,000Navios Hull 1106
    
    Capesize
    
    
    03/2011
    
    
    
    180,000Navios Bonheur
    
    Capesize
    
    
    11/2010
    
    
    
    180,000
 
 (1)
    
    95% owned. Contracted to be sold for $18.3 million in the second quarter of 2010. Long Term Fleet.
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Long term Chartered-in Fleet in Operation
 Year
    
    
    
    
    
    
    PurchaseVessel Name
    
    Vessel Type
    
    
    Built
    
    
    Deadweight
    
    
    Option(1)(in metric tons)Navios Astra
    
    Ultra Handymax
    
    
    2006
    
    
    
    53,468
    
    
    YesNavios Primavera
    
    Ultra Handymax
    
    
    2007
    
    
    
    53,464
    
    
    YesNavios Armonia
    
    Ultra Handymax
    
    
    2008
    
    
    
    55,100
    
    
    NoNavios Cielo
    
    Panamax
    
    
    2003
    
    
    
    75,834
    
    
    NoNavios Orion
    
    Panamax
    
    
    2005
    
    
    
    76,602
    
    
    NoNavios Titan
    
    Panamax
    
    
    2005
    
    
    
    82,936
    
    
    NoNavios Altair
    
    Panamax
    
    
    2006
    
    
    
    83,001
    
    
    NoNavios Esperanza
    
    Panamax
    
    
    2007
    
    
    
    75,200
    
    
    NoTorm Antwerp
    
    Panamax
    
    
    2008
    
    
    
    75,250
    
    
    NoBelisland
    
    Panamax
    
    
    2003
    
    
    
    76,602
    
    
    NoGolden Heiwa
    
    Panamax
    
    
    2007
    
    
    
    76,662
    
    
    NoSA Fortius
    
    Capesize
    
    
    2001
    
    
    
    171,595
    
    
    NoC. Utopia
    
    Capesize
    
    
    2007
    
    
    
    174,000
    
    
    NoBeaufiks
    
    Capesize
    
    
    2004
    
    
    
    180,181
    
    
    YesPhoenix Beauty
    
    Capesize
    
    
    2010
    
    
    
    169,150
    
    
    NoRubena N
    
    Capesize
    
    
    2006
    
    
    
    203,233
    
    
    NoSC Lotta (Phoenix Grace)
    
    Capesize
    
    
    2009
    
    
    
    170,500
    
    
    No
 Long term Chartered-in Fleet to be Delivered
 PurchaseVessel Name
    
    Vessel Type
    
    
    Delivery Date
    
    
    Deadweight
    
    
    Option(1)(in metric tons)Navios TBN
    
    Handysize
    
    
    02/2011
    
    
    
    35,000
    
    
    Yes(2)Kleimar TBN
    
    Capesize
    
    
    04/2010
    
    
    
    176,800
    
    
    NoNavios TBN
    
    Handysize
    
    
    04/2011
    
    
    
    35,000
    
    
    Yes(2)Navios TBN
    
    Panamax
    
    
    09/2011
    
    
    
    80,000
    
    
    YesNavios TBN
    
    Capesize
    
    
    06/2013
    
    
    
    180,000
    
    
    YesNavios TBN
    
    Capesize
    
    
    09/2011
    
    
    
    180,200
    
    
    YesNavios TBN
    
    Ultra Handymax
    
    
    03/2012
    
    
    
    61,000
    
    
    YesKleimar TBN
    
    Capesize
    
    
    07/2012
    
    
    
    180,000
    
    
    YesNavios TBN
    
    Panamax
    
    
    01/2013
    
    
    
    82,100
    
    
    YesNavios TBN
    
    Ultra Handymax
    
    
    08/2013
    
    
    
    61,000
    
    
    Yes
 
 (1)
    
    Generally, Navios Holdings may exercise its purchase option after three to five years of service.(2)
    
    The initial 50% purchase option on each vessel is held by Navios Holdings.  Short Term Fleet:
 Exercise of Vessel Purchase Options
  26




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Commercial
Ship Management:
 Technical Ship Management:
 Operation of the fleet:
 Financial Risk Management:
 
    
    Freight Rate Risk.Navios Holdings uses FFAs to
manage and mitigate its risk to its freight
market exposures in shipping capacity and freight
commitments and respond to fluctuations in the
drybulk shipping market by augmenting its overall
long or short position. These FFAs settle monthly
in cash on the basis of publicly quoted indices,
not physical delivery. These instruments
typically cover periods from one month to one
year, and are based on time charter rates or
freight rates on specific quoted routes. Navios
Holdings enters into these FFAs through
over-the-counter transactions and over NOS ASA, a
Norwegian clearing house, and LCH, the London
Clearing House. Navios Holdings FFA trading
personnel work closely with the chartering group
to ensure that the most up-to-date information is
incorporated into the companys commercial ship
management strategy and policies. See Risk
Factors  Risks Associated with the Shipping
Industry and Our Operations  Trading and
complementary hedging activities in freight,
tonnages and Forward Freight Agreements (FFAs)
subject us to trading risks, and we may suffer
trading losses which could adversely affect our
financial condition and results of operations
for additional detail on the financial
implications, and risks of our use of FFAs.
    
    Credit Risk.Navios Holdings closely monitors its
credit exposure to charterers and FFAs
counterparties. Navios Holdings has established
policies designed to ensure that contracts are
entered into with counter-parties that have
appropriate credit history. Counter parties and
cash transactions are limited to high credit
quality collateralized corporations and financial
institutions. Most importantly, Navios Holdings
has strict guidelines and policies that are
designed to limit the amount of credit exposure.
We have insured our charter-out contracts through
a AA+ rated governmental agency of a European
Union member state, which provides that if the
charterer goes into payment default, the insurer
will reimburse us for the charter payments under
the terms of the policy the remaining term of the
charter-out contract (subject to applicable
deductibles and other customary limitations for
insurance).
    
    Interest Rate Risk.Navios Holdings uses from
time to time interest rate swap agreements to
reduce exposure to fluctuations in interest
rates. Specifically, Navios Holdings has entered
into interest rate swap contracts that entitle it
to receive interest at floating rates on
principal amounts and oblige it to pay interest
at fixed rates on the same amounts. Thus, these
instruments allow Navios Holdings to raise long
term borrowings at floating rates and swap them
into fixed rates. Although these instruments are
intended to minimize the anticipated financing
costs and maximize gains for Navios Holdings that
may be set off against interest expense, they may
also result in losses, which would increase
financing costs. See Note 13 to the audited
consolidated financial statements of Navios
Holdings for the year ended December 31, 2009,
included elsewhere in this document. See also
item 11 Quantitative and Qualitative Disclosure
about Market Risks  Interest Rate Risk.
    
    Foreign Exchange Risk.Although Navios Holdings
revenues are dollar-based, 13.2% of its expenses
related to its Logistics segment are in Uruguayan
pesos, Argentinean pesos, Paraguayan Guaranies
and Brazilian Reales and 6.2% of its expenses
related to operation of its Piraeus and Belgian
office are in Euros. Navios Holdings monitors its
Euro, Argentinean Peso, Uruguayan Peso,
Paraguayan Guarani and Brazilian Real exposure
against long term currency forecasts and enters
into foreign currency contracts when considered
appropriate.
 27




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Navios Logistics Operations
 Inception:
   
  Tanker vessels, barges and push boats operations
 Overview:
 Fleet:
 Products transported:
  Drybulk Cargo  Soybeans:
 28




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##### Table of Contents



Drybulk Cargo  Iron Ore
 Oil transportation in Paraguay:
 Fleet developments and utilization in the region:
  Oil Tanker Industry Overview
  Liquid Port and Terminal Operations
 Overview:
 Sales of products:
  Dry Port and Terminal Operations
 Overview:
 29




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Port Infrastructure:
  Port Operation:
   Future Growth:
 30




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##### Table of Contents



Navios Logistics Uruguay Annual Throughput Volumes (metric tones in million)
 
 Navios Logistics Uruguay Export Market:
 Uruguay Wheat and Soy Actual and Projected Exports
 
   Customers
 Fleet
  31




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Tanker vessels, barges and push boats operations
  Dry Port Terminal
  Competition
   Intellectual Property
  Governmental and Other Regulations
 Sources of applicable rules and standards:
   32




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International environmental regulations:
 Ship safety standards:
    Regulations to prevent pollution from ships:
   Greenhouse Gas Emissions:
 33




---



##### Table of Contents



Other international regulations to prevent pollution:
 European regulations: Erika
  United States Environmental Regulations and laws governing civil liability for pollution:
   34




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Security Regulations:
 
    
    on-board installation of automatic information systems to
enhance vessel-to-vessel and vessel-to-shore communications;
    
    on-board installation of ship security alert systems;
    
    the development of vessel security plans; and
    
    compliance with flag state security certification requirements.
  International laws governing civil liability to pay compensation or damages:
   36




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Inspection by Classification Societies:
  
    
    Annual Surveys:For sea-going ships, annual surveys are
conducted for the hull and the machinery (including the
electrical plant) and, where applicable, for special
equipment classed, at intervals of 12 months from the date
of commencement of the class period indicated in the
certificate.
    
    Intermediate Surveys:Extended annual surveys are referred
to as intermediate surveys and typically are conducted two
and one-half years after commissioning and each class
renewal. Intermediate surveys may be carried out on the
occasion of the second or third annual survey.
    
    Class Renewal Surveys:Class renewal surveys, also known
as special surveys, are carried out for the ships hull,
machinery (including the electrical plant), and for any
special equipment classed, at the intervals indicated by
the character of classification for the hull. At the
special survey, the vessel is thoroughly examined,
including audio-gauging, to determine the thickness of its
steel structure. Should the thickness be found to be less
than class requirements, the classification society would
prescribe steel renewals. The classification society may
grant a one-year grace period for completion of the
special survey. Substantial amounts of money may have to
be spent for steel renewals to pass a special survey if
the vessel experiences excessive wear and tear. In lieu of
the special survey every four or five years, depending on
whether a grace period was granted, a ship owner has the
option of arranging with the classification society for
the vessels integrated hull or machinery to be on a
continuous survey cycle, in which every part of the vessel
would be surveyed within a five-year cycle.
 Risk of Loss and Liability Insurance
 General:
 Hull and Machinery and War Risk Insurances:
 37




---



##### Table of Contents



Protection and Indemnity Insurance:
 Uninsured Risks:
 Credit Risk Insurance:
 Risk Management
   Legal Proceedings
    38




---



##### Table of Contents



Crewing and Shore Employees
    Facilities
  
    
    Navios Corporation leases approximately 12,458 square feet
of space at 20 Marshall Street, South Norwalk, CT, 06820
pursuant to a lease that expires on May 15, 2011. Navios
Holdings sublets approximately 2,000 square feet of space
to a third party, pursuant a sub-lease that expires on May
15, 2011.
    
    Navios ShipManagement Inc. and Navios Corporation lease
approximately 2,034 square meters of space at 85 Akti
Miaouli, Piraeus, Greece, pursuant to a lease that expires
in 2017.
    
    Kleimar N.V. leases approximately 387 square meters of
space at 5 Suikerui 2000 Antwerp, Belgium, pursuant to a
lease that expires in April 2011.
    
    Navios ShipManagement Inc. leases approximately 1,368
square meters of space at 85 Akti Miaouli, Piraeus,
Greece, pursuant to a lease agreement that expires in
2019.
    
    Navios Corporation leases approximately 11,923 square feet
of space at 825 Third Avenue, New York, pursuant to a
lease that expires on April 29, 2019. Navios Holdings
sublets the 34th floor in the building know as
and located at 825 3rd Avenue, New York, which premises
comprise a portion of the premises under the main lease,
to a third party pursuant a sub-lease that expires on
April 28, 2019.
  
    
    CNSA leases the land on which it operates its port and
transfer facility, located at Zona Franca, Nueva Palmira,
Uruguay. This lease is between Uruguayan National
Authority of Free Zones and CNSA, which expires on
November 29, 2025, with an option to extend for another 20
years.
    
    Navegacion Guarani S.A. leases approximately 640 square
meters of space at Jejuí 324 corner Chile  Edificio
Grupo General, Asuncion, Paraguay, pursuant to a lease
that expires in November 2010.
    
    Mercofluvial S.A. leases approximately 91 square meters of
space at Ayolas 451 casi Estrella, Asuncion, Paraguay,
pursuant to a lease that expires in April 2010.
    
    Mercopar S.A. leases approximately 220 square meters of
space at Ygatimy 459 casi 14 de Mayo, Asuncion, Paraguay,
pursuant to a lease that expires in July 2010.
    
    Compania Naviera Horamar S.A. leases approximately 70
square meters at Dorrego 21 bis 7° A street in the
locality of Rosario, Argentina pursuant to a lease
agreement that expires in September 2010.
    
    Compania Naviera Horamar S.A. leases approximately 450
square meters at Cepeda 429 street, San Nicolas, Buenos
Aires Argentina pursuant to a lease agreement that expires
in November 2011.
 39




---



##### Table of Contents




    
    Hidronave S.A. leases approximately 195 square meters at
Av. General Rondon 1473, Corumba, Brazil of pursuant to
a lease agreement that expires in March 2013.
     C. Organizational structure
   Subsidiaries included in the consolidation:
 EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios Maritime Holdings Inc.
    
    Holding Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios Corporation
    
    Sub-Holding Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios International Inc.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navimax Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios Handybulk Inc.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Hestia Shipping Ltd.
    
    Operating Company
    
    100%
    
    Malta
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Anemos Maritime Holdings Inc.
    
    Sub-Holding Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios ShipManagement Inc.
    
    Management Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31NAV Holdings Limited
    
    Sub-Holding Company
    
    100%
    
    Malta
    
    1/1  12/31
    
    1/1  12/31
    
    2/2-12/31Kleimar N.V.
    
    Operating Company/Vessel Owning Company
    
    100%
    
    Belgium
    
    1/1  12/31
    
    1/1  12/31
    
    2/2-12/31Kleimar Ltd.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    9/13-12/31Bulkinvest S.A.
    
    Operating Company
    
    100%
    
    Luxembourg
    
    1/1  12/31
    
    1/1  12/31
    
    2/2-12/31Navios Maritime Acquisition
Corporation
    
    Sub-Holding Company
    
    100%
    
    Marshall Is.
    
    
    
    3/14  6/30
    
    Primavera Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    10/15  12/31
    
    
 40




---



##### Table of Contents



EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Ginger Services Co.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    12/22  12/31
    
    Astra Maritime Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    10/15  12/31
    
    Achilles Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Apollon Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Herakles Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Hios Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Ionian Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Kypros Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Meridian Shipping Enterprises Inc.
    
    Navios Meridian
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Libra Shipping Enterprises
Corporation
    
    Navios Libra II
    
    100%
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Alegria Shipping Corporation
    
    Navios Alegria
    
    100%
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Felicity Shipping Corporation
    
    Navios Felicity
    
    100%
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Gemini Shipping Corporation
    
    Navios Gemini S
    
    100%
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Mercator Shipping Corporation
    
    Navios Mercator
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Arc Shipping Corporation
    
    Navios Arc
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Galaxy Shipping Corporation
    
    Navios Galaxy I
    
    100%
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Horizon Shipping Enterprises
Corporation
    
    Navios Horizon
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Magellan Shipping Corporation
    
    Navios Magellan
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Aegean Shipping Corporation
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Star Maritime Enterprises
Corporation
    
    Navios Star
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Aurora Shipping Enterprises Ltd.
    
    Navios Hope (ex Navios Aurora I)
    
    100%
    
    Marshall Is.
    
    
    
    1/21  6/30
    
    Corsair Shipping Ltd.
    
    Navios Ulysses
    
    100%
    
    Marshall Is
    
    1/1  12/31
    
    6/11  12/31
    
    Rowboat Marine Inc.
    
    Navios Vega
    
    100%
    
    Marshall Is
    
    1/1  12/31
    
    6/11  12/31
    
    Hyperion Enterprises Inc.
    
    Navios Hyperion
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    2/26-12/31Beaufiks Shipping Corporation
    
    Vessel Owning Company
    
    100%
    
    Marshall Is
    
    1/1  12/31
    
    6/19  12/31
    
    Sagittarius Shipping Corporation
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    1/1  6/10
    
    3/6  12/31
    
    Nostos Shipmanagement Corp.
    
    Navios Bonavis
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    7/4-12/31Portorosa Marine Corporation
    
    Navios Happiness
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    7/4-12/31Shikhar Ventures S.A
    
    Navios Stellar
    
    100%
    
    Liberia
    
    1/1  12/31
    
    1/1  12/31
    
    12/12  12/31Sizzling Ventures Inc.
    
    Operating Company
    
    100%
    
    Liberia
    
    1/1  12/31
    
    1/1  12/31
    
    12/12 12/31Rheia Associates Co.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/12  12/31Taharqa Spirit Corp.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/12  12/31Rumer Holding Ltd.(i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/10  12/31Chilali Corp.
    
    Navios Aurora II
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/10  12/31Pharos Navigation S.A.(i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/11  12/31Pueblo Holdings Ltd.
    
    Navios Lumen
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    8/8  12/31
    
    Surf Maritime Co.
    
    Navios Pollux
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    8/8  12/31
    
    Quena Shipmanagement Inc.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    7/29  12/31
    
    Orbiter Shipping Corp.
    
    Navios Orbiter
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    9/13  12/31Aramis Navigation
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    12/14-12/31
    
    
    
    White Narcissus Marine S.A.
    
    Navios Asteriks
    
    100%
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    4/19  12/31Navios G.P. L.L.C.
    
    Operating Company
    
    100%
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    8/7-12/31
 41




---



##### Table of Contents



EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios South American Logistics
Inc.
    
    Sub-Holding Company
    
    100%
    
    Marshall Is.
    
    
    
    
    
    12/17-12/31Navios Maritime Partners L.P.
    
    Sub-Holding Company
    
    100%
    
    Marshall Is.
    
    
    
    
    
    8/7-11/15Prosperity Shipping Corporation
    
    Navios Prosperity
    
    100%
    
    Marshall Is.
    
    
    
    
    
    10/8-11/15Aldebaran Shipping Corporation
    
    Navios Aldebaran
    
    100%
    
    Marshall Is.
    
    
    
    
    
    10/8-11/15Fantastiks Shipping Corporation
    
    Navios Fantastiks
    
    100%
    
    Marshall Is.
    
    
    
    
    
    10/23-11/15Pandora Marine Inc. (i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    6/11-12/31
    
    
    
    Floral Marine Ltd. (i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    6/11-12/31
    
    
    
    Red Rose Shipping Corp. (i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    6/11-12/31
    
    
    
    Customized Development S.A.(i)
    
    Vessel Owning Company
    
    100%
    
    Liberia
    
    6/22-12/31
    
    
    
    Highbird Management Inc.
    
    Navios Celestial
    
    100%
    
    Marshall Is.
    
    7/14-12/31
    
    
    
    Ducale Marine Inc. (i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    6/22-12/31
    
    
    
    Kohylia Shipmanagement S.A. (i)
    
    Vessel Owning Company
    
    100%
    
    Marshall Is.
    
    7/14-12/31
    
    
    
    Corporacion Navios S.A.
    
    Operating Company
    
    100%
    
    Uruguay
    
    
    
    
    
    1/1-12/31Navios Maritime Finance (US) Inc.
    
    Operating Company
    
    100%
    
    Delaware
    
    10/20-12/31
    
    
    
    
 Navios South American Logistics and Subsidiaries:
 EffectiveNature /
    
    Ownership
    
    Country of
    

Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios South American Logistics Inc.
    
    Sub-Holding Company
    
    65.48%
    
    Marshal Is.
    
    1/1  12/31
    
    1/1  12/31
    
    Corporacion Navios SA (v)
    
    Operating Company
    
    65.48%
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Nauticler SA
    
    Sub-Holding Company
    
    65.48%
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Compania Naviera Horamar SA
    
    Operating Company
    
    65.48%
    
    Argentina
    
    1/1  12/31
    
    1/1  12/31
    
    Compania de Transporte Fluvial Int SA
    
    Operating Company
    
    65.48%
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Ponte Rio SA
    
    Operating Company
    
    65.48%
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Thalassa Energy SA
    
    Barge Owning Company
    
    40.93%
    
    Argentina
    
    1/1  12/31
    
    1/1  12/31
    
    HS Tankers Inc.
    
    Makenita H
    
    33.39%
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    HS Navegation Inc.
    
    Estefania H
    
    33.39%
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    HS Shipping Ltd Inc.
    
    Malva H
    
    40.93%
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    HS South Inc. (ii)
    
    Vessel Owning Company
    
    40.93%
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    Mercopar Internacional S.A.(iii)
    
    Holding Company
    
    65.48%
    
    Uruguay
    
    1/1-12/9
    
    1/1  12/31
    
    Nagusa Internacional S.A. (iii)
    
    Holding Company
    
    65.48%
    
    Uruguay
    
    1/1-12/9
    
    1/1  12/31
    
    Hidrovia OSR Internacional S.A. (iii)
    
    Holding Company
    
    65.48%
    
    Uruguay
    
    1/1-12/9
    
    1/1  12/31
    
    Petrovia Internacional S.A.
    
    Holding Company
    
    65.48%
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Mercopar S.A.
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Navegation Guarani S.A.
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Hidrovia OSR S.A.
    
    Oil Spill Response & Salvage Services
    
    65.48%
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Petrovia S.A.(iv)
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1-1/20
    
    1/1  12/31
    
    Mercofluvial S.A.
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Petrolera San Antonio S.A. (PETROSAN)
    
    Oil Storage Plant and Dock Facilities
    
    65.48%
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Flota Mercante Paraguaya S.A.(iv)
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1-2/13
    
    1/1  12/31
    
    Compania de Transporte Fluvial S.A. (iv)
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1-12/31
    
    1/1  12/31
    
    Hidrogas S.A. (iv)
    
    Shipping Company
    
    65.48%
    
    Paraguay
    
    1/1-1/20
    
    1/1  12/31
    
    Stability Oceanways S.A.
    
    Barge and Pushboat Owning Shipping Company
    
    65.48%
    
    Panama
    
    1/1  12/31
    
    4/16  12/31
    
    Hidronave S.A.
    
    Pushboat Owning Company
    
    33.39%
    
    Brazil
    
    1/11-12/31
    
    
    
    
 
 (i)
    
    Each company has the rights over the shipbuilding contract of a Capesize vessel.(ii)
    
    This company has the rights over the shipbuilding contract of a tanker vessel. 42




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##### Table of Contents



(iii)
    
    These companies were sold on December 10, 2009 to independent third parties.(iv)
    
    These companies were merged into other Paraguayan shipping companies within the group.(v)
    
    This company was 100% owned in 2007. Affiliates included in the financial statements accounted for under the equity method:
 Nature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest (*)
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios Maritime Partners L.P.
    
    Sub-Holding Company
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Navios Maritime Operating L.L.C.
    
    Operating Company
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Libra Shipping Enterprises Corporation
    
    Navios Libra II
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Alegria Shipping Corporation
    
    Navios Alegria
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Felicity Shipping Corporation
    
    Navios Felicity
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Gemini Shipping Corporation
    
    Navios Gemini S
    
    
    27.7
    %
    
    Marshal Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Galaxy Shipping Corporation
    
    Navios Galaxy I
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Prosperity Shipping Corporation
    
    Navios Prosperity
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Fantastiks Shipping Corporation
    
    Navios Fantastiks
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Aldebaran Shipping Corporation
    
    Navios Aldebaran
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16-12/31Aurora Shipping Enterprises Ltd.
    
    Navios Hope (ex
Navios Aurora I)
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    7/1  12/31
    
    Sagittarius Shipping Corporation
    
    Navios Sagittarius
    
    
    27.7
    %
    
    Marshall Is.
    
    6/10-12/31
    
    
    
    Palermo Shipping S.A.
    
    Navios Apollon
    
    
    27.7
    %
    
    Marshall Is.
    
    10/29-12/31
    
    
    
    Acropolis Chartering & Shipping Inc.
    
    Brokerage Company
    
    
    50
    %
    
    Liberia
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios Maritime Acquisition Corporation
    
    Sub-Holding Company
    
    
    19
    %
    
    Marshall Is.
    
    1/1  12/31
    
    7/1  12/31
    
    
 
 (*)
    
    Percentage does not include the ownership of 3,131,415 common units relating to the sale
of Navios Hope to Navios Partners. D. Property, plants and equipment
  
 Item 4A.
    
    Unresolved Staff Comments
  
 Item 5.
    
    Operating and Financial Review and Prospects
   Overview
   43




---



##### Table of Contents



Chartering Policy and Industry Outlook
     44




---



##### Table of Contents



Fleet Development
  Owned Vessels
 Charter-out
    
    
    ExpirationVessels(1)
    
    Type
    
    
    Built
    
    
    DWT
    
    
    Rate(2)
    
    
    Date(3)Navios Ionian
    
    Ultra Handymax
    
    
    2000
    
    
    
    52,067
    
    
    
    11,970
    
    
    
    04/07/2011Navios Celestial
    
    Ultra Handymax
    
    
    2009
    
    
    
    58,063
    
    
    
    17,550
    
    
    
    01/24/2012Navios Vector
    
    Ultra Handymax
    
    
    2002
    
    
    
    50,296
    
    
    
    9,975
    
    
    
    10/17/2010Navios Horizon
    
    Ultra Handymax
    
    
    2001
    
    
    
    50,346
    
    
    
    36,100
    
    
    
    08/24/2011Navios Herakles
    
    Ultra Handymax
    
    
    2001
    
    
    
    52,061
    
    
    
    11,400
    
    
    
    03/30/2010Navios Achilles
    
    Ultra Handymax
    
    
    2001
    
    
    
    52,063
    
    
    
    26,864
    
    
    
    11/17/201313,609
    
    
    
    12/17/2013Navios Meridian
    
    Ultra Handymax
    
    
    2002
    
    
    
    50,316
    
    
    
    23,700
    
    
    
    10/08/2012Navios Mercator
    
    Ultra Handymax
    
    
    2002
    
    
    
    53,553
    
    
    
    22,800
    
    
    
    08/01/201131,350
    
    
    
    02/20/2015Navios Arc
    
    Ultra Handymax
    
    
    2003
    
    
    
    53,514
    
    
    
    10,450
    
    
    
    02/26/2011Navios Hios
    
    Ultra Handymax
    
    
    2003
    
    
    
    55,180
    
    
    
    12,588
    
    
    
    06/19/2010Navios Kypros
    
    Ultra Handymax
    
    
    2003
    
    
    
    55,222
    
    
    
    24,063
    
    
    
    03/31/201034,024
    
    
    
    01/28/201120,685
    
    
    
    01/28/2014Navios Ulysses
    
    Ultra Handymax
    
    
    2007
    
    
    
    55,728
    
    
    
    31,281
    
    
    
    10/12/2013Navios Vega
    
    Ultra Handymax
    
    
    2009
    
    
    
    58,792
    
    
    
    12,350
    
    
    
    02/18/2011Navios Magellan
    
    Panamax
    
    
    2000
    
    
    
    74,333
    
    
    
    21,850
    
    
    
    03/06/2010Navios Star
    
    Panamax
    
    
    2002
    
    
    
    76,662
    
    
    
    19,000
    
    
    
    12/05/2010Asteriks
    
    Panamax
    
    
    2005
    
    
    
    76,801
    
    
    
    20,900
    
    
    
    11/21/2010Navios Orbiter
    
    Panamax
    
    
    2004
    
    
    
    76,602
    
    
    
    38,052
    
    
    
    04/01/2014Navios Pollux
    
    Capesize
    
    
    2009
    
    
    
    180,727
    
    
    
    42,250
    
    
    
    07/24/2019Navios Bonavis
    
    Capesize
    
    
    2009
    
    
    
    180,022
    
    
    
    47,400
    
    
    
    06/29/2014Navios Happiness
    
    Capesize
    
    
    2009
    
    
    
    180,022
    
    
    
    55,100
    
    
    
    07/23/2014Navios Lumen
    
    Capesize
    
    
    2009
    
    
    
    186,661
    
    
    
    37,500
    
    
    
    12/10/201139,830
    
    
    
    12/10/201339,330
    (6)
    
    
    12/09/2017Navios Aurora II
    
    Capesize
    
    
    2009
    
    
    
    169,031
    
    
    
    41,325
    
    
    
    11/24/2019Navios Stellar
    
    Capesize
    
    
    2009
    
    
    
    169,001
    
    
    
    35,874
    (8)
    
    
    12/22/2016Navios Phoenix
    
    Capesize
    
    
    2009
    
    
    
    180,242
    
    
    
    36,575
    
    
    
    12/20/2010Navios Antares
    
    Capesize
    
    
    2010
    
    
    
    169,059
    
    
    
    38,000
    
    
    
    01/19/201547,500
    (7)
    
    
    01/19/2018Vanessa
    
    Handysize
    
    
    2002
    
    
    
    19,078
    
    
    
    11,525
    
    
    
    08/05/2010
 45




---



##### Table of Contents



Long Term Chartered-in Vessels
 Purchase
    
    
    Charter-out
    
    
    ExpirationVessels
    
    Type
    
    
    Built
    
    
    DWT
    
    
    Option(4)
    
    
    Rate(2)
    
    
    Date(3)Navios Astra
    
    Ultra Handymax
    
    
    2006
    
    
    
    53,468
    
    
    Yes
    
    
    14,012
    
    
    
    10/15/2010Navios Primavera
    
    Ultra Handymax
    
    
    2007
    
    
    
    53,464
    
    
    Yes
    
    
    20,046
    
    
    
    05/09/2010Navios Armonia
    
    Ultra Handymax
    
    
    2008
    
    
    
    55,100
    
    
    No
    
    
    23,700
    
    
    
    06/07/2013Navios Cielo
    
    Panamax
    
    
    2003
    
    
    
    75,834
    
    
    No
    
    
    14,773
    
    
    
    06/12/2010Navios Orion
    
    Panamax
    
    
    2005
    
    
    
    76,602
    
    
    No
    
    
    49,400
    
    
    
    12/14/2012Navios Titan
    
    Panamax
    
    
    2005
    
    
    
    82,936
    
    
    No
    
    
    27,100
    
    
    
    11/24/2010Navios Altair
    
    Panamax
    
    
    2006
    
    
    
    83,001
    
    
    No
    
    
    19,238
    
    
    
    10/24/2010Navios Esperanza
    
    Panamax
    
    
    2007
    
    
    
    75,200
    
    
    No
    
    
    14,513
    
    
    
    02/19/2013Torm Antwerp
    
    Panamax
    
    
    2008
    
    
    
    75,250
    
    
    No
    
    
    
    
    
    
    Belisland (Kerveros)
    
    Panamax
    
    
    2003
    
    
    
    76,602
    
    
    No
    
    
    
    
    
    
    Golden Heiwa
    
    Panamax
    
    
    2007
    
    
    
    76,662
    
    
    No
    
    
    
    
    
    
    SA Fortius
    
    Capesize
    
    
    2001
    
    
    
    171,595
    
    
    No
    
    
    
    
    
    
    C. Utopia
    
    Capesize
    
    
    2007
    
    
    
    174,000
    
    
    No
    
    
    
    
    
    
    Beaufiks
    
    Capesize
    
    
    2004
    
    
    
    180,181
    
    
    Yes
    
    
    
    
    
    
    Phoenix Beauty
    
    Capesize
    
    
    2010
    
    
    
    169,150
    
    
    No
    
    
    
    
    
    
    Rubena N
    
    Capesize
    
    
    2006
    
    
    
    203,233
    
    
    No
    
    
    
    
    
    
    SC Lotta (Phoenix
Grace)
    
    Capesize
    
    
    2009
    
    
    
    170,500
    
    
    No
    
    
    
    
    
    
    
 Vessels to be Delivered
 Long Term Chartered-in
 Delivery
    
    PurchaseVessels
    
    Type
    
    Date
    
    Option
    
    DWTNavios TBN
    
    Handysize
    
    02/2011
    
    Yes(5)
    
    
    35,000Navios TBN
    
    Handysize
    
    04/2011
    
    Yes(5)
    
    
    35,000Navios TBN
    
    Capesize
    
    09/2011
    
    Yes
    
    
    180,200Kleimar TBN
    
    Capesize
    
    04/2010
    
    No
    
    
    176,800Kleimar TBN
    
    Capesize
    
    07/2012
    
    Yes
    
    
    180,000Navios TBN
    
    Capesize
    
    06/2013
    
    Yes
    
    
    180,000Navios TBN
    
    Ultra Handymax
    
    03/2012
    
    Yes
    
    
    61,000Navios TBN
    
    Ultra Handymax
    
    08/2013
    
    Yes
    
    
    61,000Navios TBN
    
    Panamax
    
    01/2013
    
    Yes
    
    
    82,100Navios TBN
    
    Panamax
    
    09/2011
    
    Yes
    
    
    80,000
 46




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##### Table of Contents



Owned Vessels
 Charter-out
    
    
    ExpirationVessels
    
    Type
    
    
    Delivery Date
    
    
    DWT
    
    
    Rate(1)
    
    
    Date(2)Navios Melodia
    
    Capesize
    
    
    07/2010
    
    
    
    180,000
    
    
    
    29,356
    
    
    
    07/2022Navios Fulvia
    
    Capesize
    
    
    08/2010
    
    
    
    180,000
    
    
    
    50,588
    
    
    
    08/2015Navios Buena Ventura
    
    Capesize
    
    
    09/2010
    
    
    
    180,000
    
    
    
    29,356
    
    
    
    09/2020Navios Luz
    
    Capesize
    
    
    10/2010
    
    
    
    180,000
    
    
    
    29,356
    
    
    
    10/2020Navios Etoile
    
    Capesize
    
    
    10/2010
    
    
    
    180,000
    
    
    
    29,356
    
    
    
    10/2020Navios TBN
    
    Capesize
    
    
    03/2011
    
    
    
    180,000
    
    
    
    27,431
    
    
    
    03/2023Navios Bonheur
    
    Capesize
    
    
    11/2010
    
    
    
    180,000
    
    
    
    29,356
    
    
    
    11/2022
 
 (1)
    
    On January 8, 2010 and on October 29, 2009, Navios Holdings sold the
Navios Hyperion and the Navios Apollon, respectively, to Navios Partners.(2)
    
    Net Time Charter-out Rate per day (net of commissions).(3)
    
    Estimated dates assuming midpoint of redelivery by charterers.(4)
    
    Generally, Navios Holdings may exercise its purchase option after three to five years of service.(5)
    
    Navios Holdings holds the initial 50% purchase option on each vessel.(6)
    
    The net daily charter out rate is $37,500 for years 1 and 2, $39,830 for years 3 and 4,
$39,330 for years 5,6,7 plus option (Navios) year 8. Optional year included in the exhibit above.
Profit sharing is 100% to Navios until the net daily rate of $44,850 and 50%/50% thereafter.(7)
    
    The net daily charter out rate is $38,000 until expiration of five-year charter; $47,500 net
daily rate thereafter for three one-year (Navios) options. Optional years included in the exhibit
above. Profit sharing is 60% (Navios) / 40% (charterer) above $40,000 gross for years 1 and 2; 65%
(Navios) / 35% (charterer) for years 3,4 and 5 above $40,000 gross and 50%/50% above $50,000 gross
for the three one-year (Navios) options.(8)
    
    Amount represents daily rate of insurance proceeds following the default of the original
charterer. Recent Developments
 Vessel Acquisitions
       47




---



##### Table of Contents



Sale of vessels
  Dividend Policy
  Navios Partners:
    Changes in Capital Structure
 Issuance of Common Stock:
 Issuance of Preferred Stock:
  Share Repurchase Program:
 48




---



##### Table of Contents



A. Operating Results
 Factors Affecting Navios Holdings Results of Operations:
   
    
    Market Exposure:Navios Holdings manages the size and
composition of its fleet, by chartering and owning
vessels, to adjust to anticipated changes in market
rates. Navios Holdings aims at achieving an appropriate
balance between owned vessels and long and short term
chartered-in vessels and controls approximately
6.6 million dwt in drybulk tonnage. Navios Holdings
options to extend the duration of vessels it has under
long term time charter (durations of over 12 months) and
its purchase options on chartered vessel (see separate
table) permits Navios Holdings to adjust the cost and
the fleet size to correspond to market conditions.
    
    Available days:Available days is the total number of
days a vessel is controlled by a company less the
aggregate number of days that the vessel is off-hire due
to scheduled repairs or repairs under guarantee, vessel
upgrades or special surveys. The shipping industry uses
available days to measure the number of days in a period
during which vessels should be capable of generating
revenues.
    
    Operating days:Operating days is the number of
available days in a period less the aggregate number of
days that the vessels are off-hire due to any reason,
including lack of demand or unforeseen circumstances.
The shipping industry uses operating days to measure the
aggregate number of days in a period during which
vessels actually generate revenues.
    
    Fleet utilization:Fleet utilization is obtained by
dividing the number of operating days during a period by
the number of available days during the period. The
shipping industry uses fleet utilization to measure a
companys efficiency in finding suitable employment for
its vessels and minimizing the amount of days that its
vessels are off-hire for reasons other than scheduled
repairs or repairs under guarantee, vessel upgrades,
special surveys or vessel positioning.
    
    TCE:TCE rates are defined as voyage and time charter
revenues plus gains or losses on FFA less voyage
expenses during a period divided by the number of
available days during the period. Navios Holdings
includes the gains or losses on FFA in the determination
of TCE rates as neither voyage and time charter revenues
nor gains or losses on FFA are evaluated in isolation.
Rather, the two are evaluated together to determine
total earnings per day. The TCE rate is a standard
shipping industry performance measure used primarily to
compare daily earnings generated by vessels on time
charters with daily earnings generated by vessels on
voyage charters, because charter hire rates for vessels
on voyage charters are generally not expressed in per
day amounts, while charter hire rates for vessels on
time charters generally are expressed in such amounts.Equivalent vessels:Equivalent vessels data is the
available days of the fleet divided by the number of the
calendar days in the respective period.
 Voyage and Time Charter
  
    
    the duration of the charters;
    
    the level of spot market rates at the time of charters;
    
    decisions relating to vessel acquisitions and disposals;
    
    the amount of time spent positioning vessels;
    
    the amount of time that vessels spend in dry-dock undergoing repairs and upgrades;
    
    the age, condition and specifications of the vessels; and
    
    the aggregate level of supply and demand in the drybulk shipping industry.
 49




---



##### Table of Contents



Spot Charters, Contracts of Affreightment (COAs), and Forward Freight Agreements (FFAs)
       Statement of Operations Breakdown by Segment
  50




---



##### Table of Contents



Period over Period Comparisons
 For the year ended December 31, 2009 compared to the year ended December 31, 2008
  Year ended
    
    
    Year endedDecember 31,
    
    
    December 31,(in thousands of U.S. dollars)
    
    2009
    
    
    2008Revenue
    
    $
    598,676
    
    
    $
    1,246,062Time charter, voyage and logistic business expenses
    
    
    (353,838
    )
    
    
    (1,066,239
    )Direct vessel expenses
    
    
    (31,454
    )
    
    
    (26,621
    )General and administrative expenses
    
    
    (43,897
    )
    
    
    (37,047
    )Depreciation and amortization
    
    
    (73,885
    )
    
    
    (57,062
    )Provision for losses on accounts receivable
    
    
    (2,237
    )
    
    
    (2,668
    )Interest income from investments in finance lease
    
    
    1,330
    
    
    
    2,185Interest income
    
    
    1,699
    
    
    
    7,753Interest expense and finance cost, net
    
    
    (63,618
    )
    
    
    (49,128
    )Gain on derivatives
    
    
    375
    
    
    
    8,092Gain on sale of assets/partial sale of subsidiary
    
    
    20,785
    
    
    
    27,817Other income
    
    
    6,749
    
    
    
    948Other expense
    
    
    (20,508
    )
    
    
    (7,386
    )Income before equity in net earnings of affiliated companies and joint venture
    
    
    40,177
    
    
    
    46,706Equity in net earnings of affiliated companies and joint venture
    
    
    29,222
    
    
    
    17,431Income before taxes
    
    
    69,399
    
    
    
    64,137Income taxes
    
    
    1,565
    
    
    
    56,113Net income
    
    $
    70,964
    
    
    $
    120,250Less: Net income attributable to the noncontrolling interest
    
    
    (3,030
    )
    
    
    (1,723
    )Net income attributable to Navios Holdings common stockholders
    
    $
    67,934
    
    
    $
    118,527
  Year ended December 31,2009
    
    
    2008FLEET DATAAvailable days
    
    
    15,588
    
    
    
    22,817Operating days
    
    
    15,479
    
    
    
    22,745Fleet utilization
    
    
    99.3
    %
    
    
    99.7
    %Equivalent vessels
    
    
    43
    
    
    
    62AVERAGE DAILY RESULTSTime Charter Equivalents
    
    $
    25,821
    
    
    $
    45,566
  Revenue:
 51




---



##### Table of Contents



Time Charter, Voyage and Logistic Business Expenses:
 Direct Vessel Expenses:
 General and Administrative Expenses:
 Year ended
    
    
    Year ended(in thousands of U.S. dollars)
    
    December 31, 2009
    
    
    December 31, 2008Payroll and related costs(1)
    
    
    15,333
    
    
    
    15,751Professional, legal and audit fees(1)
    
    
    5,389
    
    
    
    4,775Navios Logistics
    
    
    9,116
    
    
    
    8,045Office expenses(1)
    
    
    2,854
    
    
    
    2,862Other(1)
    
    
    398
    
    
    
    1,561Sub-total
    
    
    33,090
    
    
    
    32,994Credit risk insurance(1)
    
    
    10,807
    
    
    
    4,053General and administrative expenses
    
    
    43,897
    
    
    
    37,047
 
 (1)
    
    Amounts do not include expenses of the logistics business.  Depreciation and Amortization:
 Provision for Losses on Accounts Receivable:
 Interest Income from Investments in Finance Lease:
 Interest Expense and Finance Cost, Net:
 52




---



##### Table of Contents



Net Other Income and Expense:
 Gain on Derivatives:
 Baltic Exchange'sPanamax TimeCharter AverageIndexMay 20, 2008
    
    $
    91,710
    (a)December 12, 2008
    
    $
    3,537
    (b)January 19, 2009
    
    $
    3,917
    (c)November 19, 2009
    
    $
    35,819
    (d)December 31, 2009
    
    $
    28,620
    (*)
 
 (a)
    
    High for fiscal year 2008.(b)
    
    Low for fiscal year 2008.(c)
    
    Low for fiscal year 2009(d)
    
    High for fiscal year 2009(*)
    
    End of year rate Gain on Sale of Assets/Partial Sale of Subsidiary:
 For the year ended December 31, 2008 compared to the year ended December 31, 2007
  53




---



##### Table of Contents



Year ended
    
    
    Year endedDecember 31,
    
    
    December 31,(in thousands of U.S. dollars)
    
    2008
    
    
    2007Revenue
    
    $
    1,246,062
    
    
    $
    758,420Time charter, voyage and logistic business expenses
    
    
    (1,066,239
    )
    
    
    (557,573
    )Direct vessel expenses
    
    
    (26,621
    )
    
    
    (27,892
    )General and administrative expenses
    
    
    (37,047
    )
    
    
    (23,058
    )Depreciation and amortization
    
    
    (57,062
    )
    
    
    (31,900
    )Provision for losses on accounts receivable
    
    
    (2,668
    )
    
    
    Interest income from investments in finance lease
    
    
    2,185
    
    
    
    3,507Interest income
    
    
    7,753
    
    
    
    10,819Interest expense and finance cost, net
    
    
    (49,128
    )
    
    
    (51,089
    )Gain on derivatives
    
    
    8,092
    
    
    
    25,100Gain on sale of assets/partial sale of subsidiary
    
    
    27,817
    
    
    
    167,511Other income
    
    
    948
    
    
    
    445Other expense
    
    
    (7,386
    )
    
    
    (767
    )Income before equity in net earnings of affiliated companies and joint venture
    
    
    46,706
    
    
    
    273,523Equity in net earnings of affiliated companies and joint venture
    
    
    17,431
    
    
    
    1,929Income before taxes
    
    
    64,137
    
    
    
    275,452Income taxes
    
    
    56,113
    
    
    
    (4,451
    )Net income
    
    $
    120,250
    
    
    $
    271,001Less: Net income attributable to the noncontrolling interest
    
    
    (1,723
    )
    
    
    Net income attributable to Navios Holdings common stockholders
    
    $
    118,527
    
    
    $
    271,001
  Year ended December 31,2008
    
    
    2007FLEET DATAAvailable days
    
    
    22,817
    
    
    
    19,219Operating days
    
    
    22,745
    
    
    
    19,198Fleet utilization
    
    
    99.7
    %
    
    
    99.9
    %Equivalent vessels
    
    
    62
    
    
    
    53AVERAGE DAILY RESULTSTime Charter Equivalents
    
    $
    45,566
    
    
    $
    30,843
   Revenue:
  54




---



##### Table of Contents



Time Charter, Voyage and Logistic Business Expense:
 Direct Vessel Expenses:
 General and Administrative Expenses:
 Year ended
    
    
    Year ended(in thousands of U.S. dollars)
    
    December 31, 2008
    
    
    December 31, 2007Payroll and related costs(1)
    
    
    15,751
    
    
    
    12,174Professional, legal and audit fees(1)
    
    
    4,775
    
    
    
    5,975Logistics business
    
    
    8,045
    
    
    
    507Office expenses(1)
    
    
    2,862
    
    
    
    2,003Other(1)
    
    
    1,561
    
    
    
    1,978Sub-total
    
    
    32,994
    
    
    
    22,637Credit risk insurance(1)
    
    
    4,053
    
    
    
    421General and administrative expenses
    
    
    37,047
    
    
    
    23,058
 
 (1)
    
    Amounts do not include expenses of the logistics business.  Depreciation and Amortization:
 55




---



##### Table of Contents



Provision for Losses on Accounts Receivable:
 Interest Income from Investments in Finance Lease:
 Interest Expense and Finance Cost, Net:
 Gain on Derivatives:
 Baltic ExchangesPanamax TimeCharter AverageIndexJanuary 31, 2007
    
    $
    31,719
    (a)October 30, 2007
    
    $
    94,977
    (b)May 20, 2008
    
    $
    91,710
    (c)December 12, 2008
    
    $
    3,537
    (d)
 
 (a)
    
    Low for fiscal year 2007.(b)
    
    High for fiscal year 2007.(c)
    
    High for fiscal year 2008.(d)
    
    Low for fiscal year 2008. Gain on Sale of Assets/Partial Sale of Subsidiary:
  Net Other Income and Expense:
 Navios South American Logistics Inc.
  56




---



##### Table of Contents



Recent Developments
 Assets Acquisition:
     Factors affecting Navios Logistics results of operations
  Charter and freight rates
  Weather Conditions
  Foreign currency transactions
   Inflation and fuel price increases
  Seasonality
  57




---



##### Table of Contents



Financial Highlights
  CNSA(Expressed in thousands of US Dollars )
    
    Year ended
    
    
    Year ended
    
    
    Year endedDecember 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007Revenue
    
    $
    138,890
    
    
    $
    107,778
    
    
    $
    9,689Time charter, voyage and port terminal expenses
    
    
    (94,040
    )
    
    
    (70,268
    )
    
    
    (3,860
    )General and administrative expenses
    
    
    (9,116
    )
    
    
    (8,045
    )
    
    
    (507
    )Depreciation and amortization
    
    
    (21,604
    )
    
    
    (18,562
    )
    
    
    (1,867
    )Provision for losses on accounts receivable
    
    
    (1,351
    )
    
    
    
    
    
    
    Interest income
    
    
    11
    
    
    
    502
    
    
    
    148Interest expense and finance cost, net
    
    
    (4,247
    )
    
    
    (4,421
    )
    
    
    Other income
    
    
    947
    
    
    
    948
    
    
    
    4Other expense
    
    
    (4,821
    )
    
    
    (2,980
    )
    
    
    (644
    )Income before taxes
    
    $
    4,669
    
    
    $
    4,952
    
    
    $
    2,963Income Taxes
    
    
    1,863
    
    
    
    (981
    )
    
    
    Net income
    
    
    6,532
    
    
    
    3,971
    
    
    
    2,963Less: Net income attributable to the noncontrolling interest
    
    
    (1,182
    )
    
    
    (544
    )
    
    
    Net income attributable to Navios Logistics stockholders
    
    $
    5,350
    
    
    $
    3,427
    
    
    $
    2,963
 58




---



##### Table of Contents



(Expressed
in thousands of US Dollars )
    
    December 31,
    
    
    December 31,2009
    
    
    2008ASSETSCurrent assetsCash and cash equivalents
    
    
    26,927
    
    
    
    11,516Restricted cash
    
    
    1,674
    
    
    
    1,050Accounts receivable, net
    
    
    15,578
    
    
    
    13,864Due from affiliate companies
    
    
    
    
    
    
    41Short term backlog asset
    
    
    
    
    
    
    44Prepaid expenses and other current assets
    
    
    13,598
    
    
    
    6,041Total current assets
    
    
    57,777
    
    
    
    32,556Vessels, port terminal and other fixed assets, net
    
    
    265,850
    
    
    
    250,237Deferred financing costs, net
    
    
    870
    
    
    
    420Deferred dry dock and special survey costs, net
    
    
    1,673
    
    
    
    1,433Other long term assets
    
    
    9,435
    
    
    
    9,535Intangible assets other than goodwill
    
    
    77,185
    
    
    
    84,957Goodwill
    
    
    91,682
    
    
    
    91,393Total non-current assets
    
    
    446,695
    
    
    
    437,975Total assets
    
    
    504,472
    
    
    
    470,531LIABILITIES AND EQUITYCurrent liabilitiesAccounts payable
    
    
    17,954
    
    
    
    10,165Accrued expenses
    
    
    7,520
    
    
    
    9,058Due to affiliate companies
    
    
    94
    
    
    
    Current portion of long term debt
    
    
    5,829
    
    
    
    3,137Total current liabilities
    
    
    31,397
    
    
    
    22,360Long term debt, net of current portion
    
    
    114,564
    
    
    
    78,191Unfavorable lease terms
    
    
    
    
    
    
    1,505Long term liabilities
    
    
    6,200
    
    
    
    22,181Deferred tax liability
    
    
    22,777
    
    
    
    26,573Total non-current liabilities
    
    
    143,541
    
    
    
    128,450Total liabilities
    
    
    174,938
    
    
    
    150,810Commitments and contingencies
    
    
    
    
    
    
    Stockholders equityCommon stock  $1 par value, authorized 20,000 shares
    
    
    20
    
    
    
    20Additional paid-in capital
    
    
    284,761
    
    
    
    284,762Retained earnings
    
    
    8,778
    
    
    
    3,427Total Navios Logistics stockholders equity
    
    
    293,559
    
    
    
    288,209Noncontrolling interest
    
    
    35,975
    
    
    
    31,512Total equity
    
    
    329,534
    
    
    
    319,721Total liabilities and  equity
    
    
    504,472
    
    
    
    470,531
 Period over Period Comparisons
  For the year ended December 31, 2009 compared to the year ended December 31, 2008
 Revenue:
 59




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##### Table of Contents



Time Charter, Voyage and Port Terminal Expenses:
 General and Administrative Expenses:
 Depreciation and Amortization:
 Provision for Losses on Accounts Receivable:
 Interest Income:
 Interest Expense and Finance Cost, Net:
 Other Income/Expense, Net:
 Income Taxes:
 For the year ended December 31, 2008 compared to the year ended December 31, 2007
 Revenue:
 Time Charter, Voyage and Port Terminal Expenses:
 60




---



##### Table of Contents



General and Administrative Expenses :
 Depreciation and Amortization:
 Interest Income:
 Interest Expense and Finance Cost, Net:
 Other Income/Expense, Net:
 Income Taxes:
 61




---



##### Table of Contents



Balance Sheet highlights
 Investing activities
      Financing activities
     EBITDA:
 EBITDA Reconciliation to Net Income
 CNSAYear ended
    
    
    Year ended
    
    
    Year ended(Expressed in thousands of U.S. dollars)
    
    December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007Net income
    
    $
    5,350
    
    
    $
    3,427
    
    
    $
    2,963Depreciation and amortization
    
    
    21,604
    
    
    
    18,562
    
    
    
    1,867Dry dock amortization
    
    
    270
    
    
    
    27
    
    
    
    Interest income
    
    
    (11
    )
    
    
    (502
    )
    
    
    (148
    )Interest expense and finance cost, net
    
    
    4,247
    
    
    
    4,421
    
    
    
    Income taxes
    
    
    (1,863
    )
    
    
    981
    
    
    
    EBITDA
    
    $
    29,597
    
    
    $
    26,916
    
    
    $
    4,682
   62




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##### Table of Contents



Purchase Accounting
      Non-Guarantor Subsidiary
  B. Liquidity and Capital Resources
    Year Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,(in thousands of U.S. Dollars)
    
    2009
    
    
    2008
    
    
    2007Net cash provided by /(used in) operating activities
    
    $
    216,451
    
    
    $
    (28,388
    )
    
    $
    128,075Net cash used in investing activities
    
    
    (802,538
    )
    
    
    (452,637
    )
    
    
    (16,451
    )Net cash provided by financing activities
    
    
    626,396
    
    
    
    187,082
    
    
    
    216,285Increase / (decrease) in cash and cash equivalents
    
    
    40,309
    
    
    
    (293,943
    )
    
    
    327,909Cash and
cash equivalents, beginning of year
    
    
    133,624
    
    
    
    427,567
    
    
    
    99,658Cash and
cash equivalents, end of year
    
    $
    173,933
    
    
    $
    133,624
    
    
    $
    427,567
 Cash provided by operating activities for the year ended December 31, 2009 as compared to the cash
used in operating activities for the year ended December 31, 2008:
  63




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##### Table of Contents



Year Ended
    
    
    Year Ended(in thousands of U.S. Dollars)
    
    December 31,
    
    
    December 31,2009
    
    
    2008Net income
    
    $
    70,964
    
    
    $
    120,250Adjustments to reconcile net income to net cash
(used in)/ provided by operating activities:Depreciation and amortization
    
    
    73,885
    
    
    
    57,062Amortization and write-off of deferred financing cost
    
    
    6,682
    
    
    
    2,077Amortization of deferred dry dock costs
    
    
    2,441
    
    
    
    1,933Provision for losses on accounts receivable
    
    
    2,237
    
    
    
    2,668Unrealized (gain)/loss on derivatives
    
    
    (1,674
    )
    
    
    8,220Unrealized (gain)/loss on warrants
    
    
    (5,863
    )
    
    
    5,282Unrealized (gain)/loss on interest rate swaps
    
    
    (1,774
    )
    
    
    1,874Share based compensation
    
    
    2,187
    
    
    
    2,694Gains on sale of assets/partial sale of subsidiary
    
    
    (20,785
    )
    
    
    (27,817
    )Deferred taxes
    
    
    (1,565
    )
    
    
    (56,113
    )Earnings in affiliates and joint ventures, net of dividends received
    
    
    (1,355
    )
    
    
    (4,517
    )Compensation income
    
    
    (6,082
    )
    
    
    Unrealized loss on available for sale securities
    
    
    13,778
    
    
    
    Net income adjusted for non-cash items
    
    
    133,076
    
    
    
    113,613
        64




---



##### Table of Contents



Cash used in investing activities for the year ended December 31, 2009 as compared to the year
ended December 31, 2008:
    Cash provided by financing activities for the year ended December 31, 2009 as compared to the year
ended December 31, 2008:
    Cash used in operating activities for the year ended December 31, 2008 as compared to the cash
provided for the year ended December 31, 2007:
  65




---



##### Table of Contents



Cash used in investing activities for the year ended December 31, 2008 as compared to the year
ended December 31, 2007:
    66




---



##### Table of Contents



Cash provided by financing activities for the year ended December 31, 2008 as compared to the year
ended December 31, 2007:
    Adjusted EBITDA:
    67




---



##### Table of Contents



Long-Term Debt Obligations and Credit Arrangements:
 Senior Notes:
 Ship Mortgage Notes:
 HSH/Commerzbank Facility:
   68




---



##### Table of Contents



Emporiki Facility:
 DNB Facility:
 Marfin Revolving Facility:
 Dekabank Facility:
 Convertible Debt:
 Marfin Facility:
 Commerzbank Facility:
 69




---



##### Table of Contents



Unsecured Bond:
 Emporiki Facility:
 DVB Facility:
 Navios Logistics loans:
        70




---



##### Table of Contents



Year
    
    Amount in thousands of USD2010
    
    $
    59,8042011
    
    
    80,9912012
    
    
    174,8312013
    
    
    60,3272014
    
    
    471,3542015 and thereafter
    
    
    783,6501,630,957
 Working Capital Position:
  Capital expenditures:
 Concentration of Credit Risk:
  Effects of Inflation:
 C. Research and development, patents and licenses, etc.
  D. Trend information
  E. Off-Balance Sheet Arrangements
   71




---



##### Table of Contents



F. Contractual Obligations as at December 31, 2009:
 Payment due by period ($ in millions)
 Less than
    
    
    
    
    
    
    
    
    
    
    More thanContractual Obligations
    
    Total
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsLong-Term Debt obligations(i)(ii) (iii)
    
    
    1,630.9
    
    
    
    59.8
    
    
    
    255.8
    
    
    
    531.7
    
    
    
    783.6Operating Lease Obligations (Time Charters)
    
    
    905.5
    
    
    
    114.6
    
    
    
    205.9
    
    
    
    192.7
    
    
    
    392.3Operating Lease Obligations Push Boats and Barges
    
    
    19.4
    
    
    
    3.9
    
    
    
    7.8
    
    
    
    7.7
    
    
    
    Vessel Deposits(iv)
    
    
    275.0
    
    
    
    256.0
    
    
    
    19.0
    
    
    
    
    
    
    
    Rent Obligations(v)
    
    
    14.3
    
    
    
    2.0
    
    
    
    3.2
    
    
    
    3.1
    
    
    
    6.0Total
    
    
    2,845.1
    
    
    
    436.3
    
    
    
    491.7
    
    
    
    735.2
    
    
    
    1,181.9
 
 (i)
    
    The amount identified does not include interest costs associated with the outstanding credit facilities which are based on LIBOR or applicable interest rate swap rates, plus the costs of complying with any applicable regulatory requirements
and a margin ranging from 1.5% to 2.75% per annum.(ii)
    
    Following the amendment of the facility agreement with HSH Nordbank and Commerzbank A.G in March 2009, Navios Holdings has to accumulate $14.0 million of cash reserves into a pledged account with the agent bank ($5.0 million in March 2009 and
$1.1 million on each loan repayment date during 2009 and 2010, which commenced in January 2009).(iii)
    
    The long-term debt contractual obligations includes in the amount shown for more than five years future principal payments of the drawn portion of credit facilities associated with the financing of the construction of Capesize vessels
scheduled to be delivered on various dates throughout March 2011.(iv)
    
    Future remaining contractual deposits for the seven owned Capesize vessels to be delivered in various dates until March 2011.(v)
    
    In October 2006, the Company signed an agreement with a third party to sublease approximately 2,000 square feet of its Norwalk office. Navios Corporation leases also approximately 11,923 square feet of space at 825 3rd Avenue, New York,
pursuant to a lease that expires on April 29, 2019. Kleimar has leased approximately 387 square meters to locate its offices. Navios Logistics has several lease agreements to locate its offices. The table above incorporates only the lease
obligation of the offices indicated in this footnote. Recent Accounting Pronouncements
 Noncontrolling Interests in Consolidated Financial Statements
  Business Combinations
  Nonfinancial Assets and Nonfinancial Liabilities
  72




---



##### Table of Contents



Disclosures about Derivative Instruments and Hedging Activities
  Determination of the useful life of intangible assets
  Determining whether instruments granted in share-based payment transactions are participating securities
  Disclosures about Credit Derivatives and Certain Guarantees
  Fair Value Measurements
  Accounting for an instrument (or an embedded Feature)
  73




---



##### Table of Contents



Equity Method Investment Accounting Considerations
  Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
  Amendments to the Impairment Guidance on Recognition of Interest Income and Impairment on Purchased
Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in
Securitized Financial Assets
  Disclosures about Fair Value of Financial Instruments
  Business Combinations
  74




---



##### Table of Contents



Consolidation of Variable Interest Entities
  The Hierarchy of Generally Accepted Accounting Principles
  Accounting for Transfers of Financial Assets
  Subsequent events
  Critical Accounting Policies
  75




---



##### Table of Contents



Use of estimates:
 Accounting for derivative financial instruments and hedge activities:
     Stock-based compensation:
  76




---



##### Table of Contents



Impairment of long-lived assets:
    Vessel, Port Terminal. Tanker Vessels, Barges, Push boats and Other Fixed Assets, net:
   Deferred Dry-dock and Special Survey Costs:
 Goodwill and Other Intangibles:
     77




---



##### Table of Contents



Investment in available for sale securities:
  G. Safe Harbor
  
 Item 6. Directors, Senior Management and Employees
 A. Directors and Senior Management
  Name
    
    Age
    
    PositionAngeliki Frangou
    
    
    45
    
    
    Chairman of the Board and Chief Executive OfficerGeorge Achniotis
    
    
    45
    
    
    Chief Financial OfficerTed C. Petrone
    
    
    55
    
    
    President of Navios Corporation and DirectorMichael E. McClure
    
    
    63
    
    
    Executive Vice President  Corporate AffairsVasiliki Papaefthymiou
    
    
    41
    
    
    Executive Vice President  Legal, Secretary and DirectorAnna Kalathakis
    
    
    39
    
    
    Senior Vice President  Legal Risk ManagementShunji Sasada*
    
    
    52
    
    
    Chief Operating Officer  Navios CorporationSpyridon Magoulas
    
    
    54
    
    
    DirectorJohn Stratakis
    
    
    45
    
    
    DirectorRex W. Harrington
    
    
    77
    
    
    DirectorAllan Shaw
    
    
    46
    
    
    Director
 
 *
    
    Significant employee Angeliki Frangou
 78




---



##### Table of Contents



George Achniotis
 Ted C. Petrone
 Michael E. McClure
 Vasiliki Papaefthymiou
 Anna Kalathakis
 Shunji Sasada
 Spyridon Magoulas
 79




---



##### Table of Contents



John Stratakis
 Rex W. Harrington
 Allan Shaw
 B. Compensation
  80




---



##### Table of Contents



C. Board Practices
     D. Employees
    E. Share Ownership
   81




---



##### Table of Contents



Amount and Nature
    
    
    Percentage ofof Beneficial
    
    
    OutstandingName and Address of Beneficial Owner(1)
    
    Ownership
    
    
    Common StockAngeliki Frangou(2)
    
    
    23,406,589
    
    
    
    23.2
    %George Achniotis
    
    
    *
    
    
    
    *Michael E. McClure
    
    
    *
    
    
    
    *Vasiliki Papaefthymiou
    
    
    *
    
    
    
    *Anna Kalathakis
    
    
    *
    
    
    
    *Ted C. Petrone
    
    
    *
    
    
    
    *Spyridon Magoulas
    
    
    *
    
    
    
    *John Stratakis
    
    
    *
    
    
    
    *Rex Harrington
    
    
    *
    
    
    
    *Allan Shaw
    
    
    *
    
    
    
    *Shunji Sasada
    
    
    *
    
    
    
    *
 
 *
    
    Less than one percent(1)
    
    The business address of each of the individuals is 85 Akti Miaouli Street, Piraeus Greece 185 38.(2)
    
    Angeliki Frangou has filed a Schedule 13D amendment indicating that she intends, subject to market conditions, to purchase up to $20
million of common stock and as of October 10, 2005, she had purchased approximately $10.0 million in value of common stock.     
 Item 7. Major Shareholders and Related Party Transactions
 A. Major Shareholders
   Amount andNature of
    
    
    Percentage ofBeneficial
    
    
    OutstandingName
    
    Ownership
    
    
    Common StockAngeliki Frangou
    
    
    23,406,589
    
    
    
    23.2
    %FMR LLC(1)
    
    
    6,846,083
    
    
    
    6.7
    %
 (1)
    
    Disclaims beneficial ownership except to the extent of its pecuniary interest. B. Related Party Transactions
 Leases:
  82




---



##### Table of Contents



Acropolis:
 Stock Transactions:
 Management fees:
 General and administrative expenses:
 Balance due from affiliate:
 Omnibus agreement:
 Sale of Navios Apollon :
 Navios Bonavis:
 Sale of Navios Hope:
 83




---



##### Table of Contents



Sale of rights of Navios Sagittarius:
 Navios Acquisition:
    C. Interests of experts and counsel.
  
 Item 8. Financial Information
 A. Consolidated Statements and Other Financial Information
 Consolidated Financial Statements:
 Legal Proceedings:
  Dividend Policy:
   84




---



##### Table of Contents



B. Significant Changes
  
 Item 9. Listing Details
     Common Stock
    
    
    Warrants(*)
    
    
    UnitsYear Ended
    
    High
    
    
    Low
    
    
    High
    
    
    Low
    
    
    High
    
    
    LowDecember 31, 2009
    
    $
    6.60
    
    
    $
    1.68
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    December 31, 2008
    
    $
    14.95
    
    
    $
    1.10
    
    
    $
    9.91
    
    
    $
    0.01
    
    
    $
    
    
    
    $
    December 31, 2007
    
    $
    19.76
    
    
    $
    5.21
    
    
    $
    14.75
    
    
    $
    0.87
    
    
    $
    14.90
    
    
    $
    6.91December 31, 2006
    
    $
    5.56
    
    
    $
    5.18
    
    
    $
    1.12
    
    
    $
    0.29
    
    
    $
    13.59
    
    
    $
    4.35
  Common Stock
    
    
    Warrants(*)
    
    
    UnitsQuarter Ended
    
    High
    
    
    Low
    
    
    High
    
    
    Low
    
    
    High
    
    
    LowMarch  31,
2010 (through March 15, 2010)
    
    $
    7.28
    
    
    $
    5.50
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    December 31, 2009
    
    $
    6.60
    
    
    $
    4.40
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    September 30, 2009
    
    $
    5.63
    
    
    $
    3.54
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    June 30, 2009
    
    $
    5.95
    
    
    $
    2.18
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    March 31, 2009
    
    $
    4.75
    
    
    $
    1.68
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    December 31, 2008
    
    $
    5.23
    
    
    $
    1.10
    
    
    $
    2.87
    
    
    $
    0.01
    
    
    $
    
    
    
    
    September 30, 2008
    
    $
    10.62
    
    
    $
    4.65
    
    
    $
    5.59
    
    
    $
    1.00
    
    
    $
    
    
    
    
    June 30, 2008
    
    $
    14.95
    
    
    $
    9.00
    
    
    $
    9.91
    
    
    $
    4.01
    
    
    $
    
    
    
    
    March 31, 2008
    
    $
    12.99
    
    
    $
    7.74
    
    
    $
    8.12
    
    
    $
    3.35
    
    
    $
    
    
    
    
    
  Common Stock
    
    
    Warrants(*)Month Ended
    
    High
    
    
    Low
    
    
    High
    
    
    LowMarch 2010
    
    $
    6.54
    
    
    $
    6.12
    
    
    $
    
    
    
    $
    February 2010
    
    $
    6.54
    
    
    $
    5.50
    
    
    $
    
    
    
    $
    January 2010
    
    $
    7.28
    
    
    $
    6.08
    
    
    $
    
    
    
    $
    December 2009
    
    $
    6.27
    
    
    $
    5.70
    
    
    $
    
    
    
    $
    November 2009
    
    $
    6.60
    
    
    $
    4.48
    
    
    $
    
    
    
    $
    October 2009
    
    $
    5.35
    
    
    $
    4.40
    
    
    $
    
    
    
    $
    September 2009
    
    $
    6.60
    
    
    $
    4.48
    
    
    $
    
    
    
    $
    
 
 (*)
    
    The warrants ceased to be publicly traded upon their expiration on December 9, 2008. 85




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##### Table of Contents



Item 10. Additional Information
 A. Share Capital
  B. Memorandum of articles of association
  C. Material Contracts
  D. Exchange controls
   E. Taxation
 Marshall Islands Tax Considerations
  Other Tax Jurisdictions
   Federal Income Tax Consequences
 General
  86




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##### Table of Contents



United States Federal Income Tax Considerations
 Taxation of Operating Income: In General
     United States Taxation of Gain on Sale of Vessels
  United States Federal Income Taxation of U.S. Holders
  
    
    is an individual United States citizen or resident, a United States corporation or other United States entity
taxable as a corporation, an estate of which the income is subject to United States federal income taxation
regardless of its source, or a trust if a court within the United States is able to exercise primary
jurisdiction over the administration of the trust and one or more United States persons have the authority to
control all substantial decisions of the trust;
    
    owns Navios Holdings common stock as a capital asset; and
    
    owns less than ten percent (10%) of Navios Holdings common stock for United States federal income tax purposes.
  Tax Treatment of Common Stock
 Distributions
  87




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##### Table of Contents



Sale, Exchange or Other Disposition of Common Stock
  Passive Foreign Investment Company Status and Significant Tax Consequences
    United States Federal Income Taxation of Non-U.S. Holders
  Dividends on Common Stock
  88




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##### Table of Contents



Sale, Exchange or other Disposition of Common Stock
  
    
    the gain is effectively connected with the Non-U.S.
Holders conduct of a trade or business in the United
States (and, if the Non-U.S. Holder is entitled to the
benefits of an income tax treaty with respect to that
gain, that gain is attributable to a permanent
establishment maintained by the Non-US Holder in the
United States); or
    
    the Non-U.S. Holder is an individual who is present in
the United States for 183 days or more during the
taxable year of disposition or is otherwise treated as a
United States resident for income tax purposes and other
conditions are met.
  Backup Withholding and Information Reporting
  
    
    fails to provide an accurate taxpayer identification number;
    
    is notified by the IRS that the shareholder failed to report all interest or
dividends required to be shown on the shareholders federal income tax returns; or
    
    in certain circumstances, fails to comply with applicable certification requirements.
     F. Dividends and paying agents
  G. Statement by experts
  H. Documents on display
  89




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##### Table of Contents



I. Subsidiary information
  
 Item 11. Quantitative and Qualitative Disclosures about Market Risks
  Interest Rate Risk:
 Debt Instruments
   Interest Rate Swaps
  a)
    
    One swap with the Royal Bank of Scotland and one swap with Alpha Bank
with a total notional principal amount of $20.4 million. The swaps
were entered into at various points in 2001 and mature in 2010. Navios
Holdings estimates that it would have to pay $0.6 million to terminate
these agreements as of December 31, 2009. As a result of the swaps,
Navios Holdings net exposure is based on total floating rate debt
less the notional principal of floating to fixed interest rate swaps.
A 100 basis points change in interest rates would increase or decrease
interest expense by $0.08 million as of December 31, 2009, so long as
the relevant LIBOR does not exceed the caps described below. The swaps
are set by reference to the difference between the three month LIBOR
(which is the base rate under Navios Holdings long term borrowings)
and the yield on the U.S. ten year treasury bond. The swaps
effectively fix interest rates at 5.55% to 5.65%. However, each of the
foregoing swaps is subject to a cap of 7.5%; to the extent the
relevant LIBOR exceeds the cap, Navios Holdings would remain exposed.b)
    
    One swap with Dexia Bank Belgium with a notional amount of
$21.0 million. The swap was entered into at August 2005 and matures in
2010. Navios Holdings estimates that it would have to pay $0.5 million
to terminate these agreements as of December 31, 2009. The swap
exchange LIBOR with fixed rate 4.525%.
  a)
    
    One swap with the Royal Bank of Scotland and one swap
with Alpha Bank with a total notional principal amount
of $20.4 million. The swaps were entered into at various
points in 2001 and mature in 2010. Navios Holdings
estimates that it would have to pay $1.0 million to
terminate these agreements as of December 31, 2008. As a
result of the swaps, Navios Holdings net exposure is
based on total floating rate debt less the notional
principal of floating to fixed interest rate swaps. A
100 basis points change in interest rates would increase
or decrease interest expense by $0.2 million as of
December 31, 2008, so long as the relevant LIBOR does
not exceed the caps described below. The swaps are set
by reference to the difference between the three month
LIBOR (which is the base rate under Navios Holdings
long term borrowings) and the yield on the U.S. ten year
treasury bond. The swaps effectively fix interest rates
at 5.55% to 5.65%. However, each of the foregoing swaps
is subject to a cap of 7.5%; to the extent the relevant
LIBOR exceeds the cap, Navios Holdings would remain
exposed.
 90




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##### Table of Contents



b)
    
    In July 2006, and in connection with our senior secured
credit facility with HSH Nordbank AG, Navios Holdings
entered into a second ISDA agreement with HSH Nordbank
AG, whereby it exchanges LIBOR with a fixed rate of
5.52%. This contract applied for the period from
December 31, 2007 to September 30, 2009, for a notional
amount of $79.3 million at redemptions in accordance
with the repayment schedule of our senior secured credit
facility. The ISDA agreement is secured by the same
collateral as the secured credit facility. A 100 basis
points change in interest rates would increase or
decrease interest expense by $0.1 million as of
December 31, 2008.c)
    
    One swap with Fortis Bank and two swaps with Dexia Bank
Belgium with a total notional amount of $34.0 million.
The swaps were entered into at May 2004 and August 2005
and mature in 2009 and 2010. Navios Holdings estimates
that it would have to pay $0.9 million to terminate
these agreements as of December 31, 2008. The swaps
exchange LIBOR with fixed rates varying from 3.95% to
4.525%.
 FFAs Derivative Risk:
 Forward Freight Agreements (FFAs)
   
 Item 12. Description of Securities Other than Equity Securities
  91




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##### Table of Contents



PART II
 
 Item 13. Defaults, Dividend Arrearages and Delinquencies
  
 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15. Controls and Procedures
 A. Disclosure Controls and Procedures
   B. Managements annual report on internal control over financial reporting
     C. Attestation report of the registered public accounting firm
  D. Changes in internal control over financial reporting
  
 Item 16A. Audit Committee financial expert
  
 Item 16B. Code of Ethics
  
 Item 16C. Principal Accountant Fees and Services
   92




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##### Table of Contents



Year ended
    
    
    Year ended(in thousands of U.S. Dollars)
    
    December 31, 2009
    
    
    December 31, 2008Audit fees
    
    $
    1,270
    
    
    $
    1,614Audit-related fees
    
    
    
    
    
    
    Tax fees
    
    
    
    
    
    
    All other fees
    
    
    
    
    
    
    Total
    
    $
    1,270
    
    
    $
    1,614
   
 Item 16D. Exemptions from the Listing Standards for Audit Committees
  
 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
     Total number ofshares purchasedunder the shareTotal number of
    
    Average price
    
    repurchasePeriod
    
    shares purchased
    
    paid per share
    
    programsJanuary 2009
    
    
    7,800
    
    
    $
    3.45
    
    
    
    7,800February 2009
    
    
    149,600
    
    
    $
    2.26
    
    
    
    157,400March 2009
    
    
    174,500
    
    
    $
    2.05
    
    
    
    331,900
  Total number ofshares purchasedunder the shareTotal number of
    
    Average price
    
    repurchasePeriod
    
    shares purchased
    
    paid per share
    
    programsMarch 2008
    
    
    362,900
    
    
    $
    9.30
    
    
    
    362,900April 2008
    
    
    181,300
    
    
    $
    9.39
    
    
    
    544,200May 2008
    
    
    
    
    
    $
    
    
    
    
    544,200June 2008
    
    
    429,340
    
    
    $
    9.44
    
    
    
    973,540July 2008
    
    
    1,404,200
    
    
    $
    9.18
    
    
    
    2,377,740August 2008
    
    
    907,550
    
    
    $
    8.92
    
    
    
    3,285,290September 2008
    
    
    1,500,000
    
    
    $
    7.49
    
    
    
    4,785,290October 2008
    
    
    2,174,000
    
    
    $
    3.97
    
    
    
    6,959,290November 2008
    
    
    441,981
    
    
    $
    1.39
    
    
    
    7,401,271December 2008
    
    
    133,599
    
    
    $
    3.14
    
    
    
    7,534,870
  93




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##### Table of Contents



Item 16F. Changes in Registrants Certifying Accountant
  
 Item 16G. Corporate Governance
  94




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##### Table of Contents



PART III
 
 Item 17. Financial Statements
  
 Item 18. Financial Statements
   
 Item 19. Exhibits
 1.1
    
    Amended and Restated Articles of Incorporation. (Incorporated by reference to the Registration Statement on Form F-1
of Navios Maritime Holdings Inc. (File No. 333-129382)).1.2
    
    Bylaws. (Incorporated by reference to the Registration Statement on Form F-1 of Navios Maritime Holdings Inc. (File
No. 333-129382)).1.3
    
    Articles of Amendment of Articles of Incorporation (Incorporated by reference to Exhibit 99.1 of the Form 6-K filed on
January 17, 2007).2.1
    
    Specimen Unit Certificate (Incorporated by reference to the Registration Statement on Form F-1 of Navios Maritime
Holdings Inc. (File No. 333-129382)).2.2
    
    Specimen Common Stock Certificate. (Incorporated by reference to the Registration Statement on Form F-1 of Navios
Maritime Holdings Inc. (File No. 333-129382)).2.3
    
    Specimen Warrant Certificate. (Incorporated by reference to the Registration Statement on Form F-1 of Navios Maritime
Holdings Inc. (File No. 333-129382)).2.4
    
    Form of Warrant Agreement between Continental Stock Transfer & Trust Company and International Shipping Enterprises,
Inc., the legal predecessor of Navios Holdings (Incorporated by reference to Exhibit 4.4 of the Registration
Statement on Form S-1 of International Shipping Enterprises, Inc. (File No. 333-119719)).2.5
    
    Stockholders Rights Agreement, dated as of October 6, 2008, between Navios Maritime Holdings Inc. and Continental
Stock Transfer and Trust Company (Incorporated by reference to Exhibit 99.1 of the Form 6-K filed on October 6,
2008).2.6
    
    Certificate of Designations of Rights, Preferences and
Privileges of Preferred Stock of Navios Maritime Holdings
Inc. (Incorporated by reference to Exhibit 99.2 of the Form 6-K filed on October 6, 2008).2.7
    
    Certificate of Designation, Preferences and Rights of Series A
Convertible Preferred Stock of Navios Maritime Holdings Inc.
(Incorporated by reference to Exhibit 3.1 of the Form 6-K filed
on July 7, 2009).2.8
    
    Form of $20.0 million 6% Bond Due 2012 (Incorporated by reference
to Exhibit 10.1 of the Form 6-K filed on August 5, 2009).2.9
    
    Certificate of Designation, Preferences and Rights of Series B
Convertible Preferred Stock of Navios Maritime Holdings Inc.
(Incorporated by reference to Exhibit 3.1 of the Form 6-K filed
on September 22, 2009).2.10
    
    Certificate of Designation, Preferences and Rights of Series C
Convertible Preferred Stock of Navios Maritime Holdings Inc.
(Incorporated by reference to Exhibit 3.1 of the Form 6-K filed
on September 24, 2009).2.11
    
    Certificate of Designation, Preferences and Rights of Series D
Convertible Preferred Stock of Navios Maritime Holdings Inc.
(Incorporated by reference to Exhibit 3.1 of the Form 6-K filed
on February 4, 2010).
 95




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##### Table of Contents



4.1
    
    2006 Employee, Director and Consultant Stock Plan (Incorporated by reference to Exhibit 10.1 of the Form 6-K filed on
May 16, 2007).4.2
    
    Fourteenth Supplemental Indenture, dated as of June 4, 2008 (Incorporated by reference to Exhibit 99.1 of the Form 6-K
filed on June 13, 2008).4.3
    
    Fifteenth Supplemental Indenture, dated as of June 4, 2008 (Incorporated by reference to Exhibit 99.2 of the Form 6-K
filed on June 13, 2008).4.4
    
    Financial Agreement, dated as of March 31, 2008, between
Nauticler S.A. and Marfin Egnatia Bank, S.A.
(Incorporated by reference to Exhibit 99.3 of the Form 6-K filed on June 13, 2008).
 96




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##### Table of Contents



4.5
    
    Facility Agreement, dated as of June 24, 2008, with Navios Maritime Holdings Inc. as a guarantor, for a loan amount up
to $133.0 million (Incorporated by reference to Exhibit 99.1 to the Form 6-K filed on July 14, 2008).4.6
    
    Sixteenth Supplemental Indenture, dated as of August 4, 2008 (Incorporated by reference to Exhibit 99.1 of the
Form 6-K filed on September 19, 2008).4.7
    
    Seventeenth Supplemental Indenture, dated as of August 4, 2008 (Incorporated by reference to Exhibit 99.2 of the
Form 6-K filed on September 19, 2008).4.8
    
    Eighteenth Supplemental Indenture, dated as of August 28, 2008 (Incorporated by reference to Exhibit 99.3 of the
Form 6-K filed on September 19, 2008).4.9
    
    Nineteenth Supplemental Indenture, dated as of September 18, 2008 (Incorporated by reference to Exhibit 99.4 of the
Form 6-K filed on September 19, 2008).4.10
    
    Twentieth Supplemental Indenture, dated as of September 18, 2008 (Incorporated by reference to Exhibit 99.5 of the
Form 6-K filed on September 19, 2008).4.11
    
    Twenty-First Supplemental Indenture, dated as of November 10, 2008 (Incorporated by reference to Exhibit 99.1 of the
Form 6-K filed on ecember 10, 2008).4.12
    
    Facility Agreement, dated as of November 10, 2008, with Navios Maritime Holdings Inc. as a guarantor, for a loan
amount up to $90.0 million (Incorporated by reference to Exhibit 99.2 of the Form 6-K filed on December 10, 2008).4.13
    
    Twenty-Second Supplemental Indenture to the Indenture dated December 18,
2006, dated as of February 24, 2009 (Incorporated by reference to Exhibit
99.1 of the Form 6-K filed on May 18, 2009).4.14
    
    Loan Agreement, dated March 26, 2009, among Surf Maritime Co., Pueblo
Holdings Ltd., Ginger Services Co. and Marfin Egnatia Bank S.A.
(Incorporated by reference to Exhibit 99.2 of the Form 6-K filed on May 18,
2009).4.15
    
    Financial Agreement, dated March 20, 2009, between Nauticler S.A. and Marfin
Popular Bank Public Co., Ltd. (Incorporated by reference to Exhibit 99.3 of
the Form 6-K filed on May 18, 2009).4.16
    
    Third Supplemental Agreement in relation to the Facility Agreement dated
February 1, 2007, dated March 23, 2009 (Incorporated by reference to Exhibit
99.4 of the Form 6-K filed on May 18, 2009).4.17
    
    Amendment to Share Purchase Agreement, dated June 29, 2009, between Anemos
Maritime Holdings Inc. and Navios Maritime Partners L.P. (Incorporated by
reference to Exhibit 10.1 of the Form 6-K filed on July 7, 2009).4.18
    
    Amendment to Omnibus Agreement, dated June 29, 2009, among Navios Maritime
Holdings Inc., Navios GP L.L.C., Navios Maritime Operating L.L.C., and
Navios Maritime Partners L.P. (Incorporated by reference to Exhibit 10.2 of
the Form 6-K filed on July 7, 2009).4.19
    
    Facility Agreement for $240.0 million, dated June 24, 2009, among the
Borrowers listed therein and Commerzbank AG (Incorporated by reference to
Exhibit 10.3 of the Form 6-K filed on July 7, 2009).4.20
    
    Twenty-Third Supplemental Indenture, dated as of July 2, 2009 (Incorporated
by reference to Exhibit 99.1 of the Form 6-K filed on August 5, 2009).4.21
    
    Twenty-Fourth Supplemental Indenture, dated as of July 14, 2009
(Incorporated by reference to Exhibit 99.2 of the Form 6-K filed on August
5, 2009).4.22
    
    Supplemental Agreement in relation to the Facility Agreement dated December
11, 2007, dated July 10, 2009, among Chilali Corp., Rumer Holdings Ltd. and
Emporiki Bank of Greece S.A. with Navios Maritime Holdings Inc. as guarantor (Incorporated by reference to Exhibit 99.3 of
the Form 6-K filed on August 5, 2009).4.23
    
    Amended and Restated Loan Agreement in respect of a loan facility of up to
$120.0 million,   dated May 25, 2009
with Navios Maritime Holdings Inc. as guarantor  (Incorporated by reference to
Exhibit 99.2 of the Form 6-K filed on October 8, 2009).4.24
    
    Supplemental Agreement in relation to the Amended and Restated Loan Agreement
dated May 25, 2009, dated July 16, 2009 (Incorporated by reference to
Exhibit 99.1 of the Form 6-K filed on October 8, 2009).4.25
    
    Second Supplemental Agreement in relation to the Facility Agreement dated
December 11, 2007, dated August 28, 2009 (Incorporated by reference to
Exhibit 99.3 of the Form 6-K filed on October 8, 2009).4.26
    
    Facility Agreement for $66.5 million, dated August 28, 2009, with Navios Maritime Holdings Inc. as guarantor
(Incorporated by reference to Exhibit
99.4 of the Form 6-K filed on October 8, 2009).4.27
    
    Facility Agreement for $75.0 million, dated August 28, 2009,
with Navios Maritime Holdings Inc. as guarantor
(Incorporated by reference to Exhibit 99.5 of the Form 6-K filed on October
8, 2009).4.28
    
    Twenty-Fifth Supplemental Indenture, dated September 8, 2009 (Incorporated
by reference to Exhibit 99.6 of the Form 6-K filed on October 8, 2009).4.29
    
    Loan Agreement for up to $110.0 million, dated October 23, 2009,
with Navios Maritime Holdings Inc. as guarantor (Incorporated by
reference to Exhibit 99.1 of the Form 6-K filed on November 10, 2009 (Film
No. 091172561)).4.30
    
    Indenture relating to 87/8% First Priority Ship
Mortgage Notes due 2017, dated November 2, 2009, among Navios Maritime
Holdings Inc., Navios Maritime Finance (US) Inc. and Wells Fargo Bank,
National Association (Incorporated by reference to Exhibit 99.3 of the Form
6-K filed on November 10, 2009 (Film No. 091172624)).4.31
    
    Registration Rights Agreement, dated as of November 2, 2009 (Incorporated by
reference to Exhibit 99.4 of the Form 6-K filed on November 10, 2009 (Film
No. 091172624)).4.32
    
    First Supplemental Indenture to the indenture dated November 2, 2009, dated
as of January 29, 2010 (Incorporated by reference to Exhibit 99.6 of the
Form 6-K filed on February 17, 2010).4.33
    
    Twenty-Seventh Supplemental Indenture dated as of January 29, 2010
(Incorporated by reference to Exhibit 99.6 of the Form 6-K filed on February
17, 2010).4.34
    
    Twenty-Sixth Supplemental Indenture dated as of October 23, 2009
(Incorporated by reference to Exhibit 99.6 of the Form 6-K filed on February
17, 2010).8.1
    
    List of subsidiaries.12.1
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act.12.2
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act.13.1
    
    Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act.15.1
    
    Consent of PricewaterhouseCoopers S.A.15.2
    
    Consent of PricewaterhouseCoopers S.A.15.3
    
    Financial Statements of Navios Maritime Partners L.P. for the year ended December 31, 2009.
 97




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SIGNATURE
  Navios Maritime Holdings Inc.By:
    /s/ Angeliki FrangouName:
    Angeliki FrangouTitle:
    Chairman and Chief Executive Officer Date: March 16, 2010
 98




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##### Table of Contents



INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 PageNAVIOS MARITIME HOLDINGS INC.REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    
    F-2CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2009 AND 2008
    
    
    F-3CONSOLIDATED STATEMENTS OF INCOME FOR EACH OF THE YEARS ENDED
    
    
    F-5DECEMBER 31, 2009, 2008 AND 2007CONSOLIDATED STATEMENTS OF CASH FLOWS FOR EACH OF THE YEARS ENDED
    
    
    F-6DECEMBER 31, 2009, 2008 AND 2007CONSOLIDATED STATEMENTS OF EQUITY FOR EACH OF THE YEARS ENDED
    
    
    F-8DECEMBER 31, 2009, 2008 AND 2007NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
    
    
    F-9
 F-1




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 To the Shareholders and the Board of Directors of
Navios Maritime Holdings Inc.:
     /s/ PricewaterhouseCoopers S.A.
 F-2




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 
 CONSOLIDATED BALANCE SHEETS
  December 31,
    
    
    December 31,Notes
    
    
    2009
    
    
    2008ASSETSCurrent assetsCash and cash equivalents
    
    
    4,13
    
    
    $
    173,933
    
    
    $
    133,624Restricted cash
    
    
    2, 12,13
    
    
    
    107,158
    
    
    
    17,858Accounts receivable, net
    
    
    6
    
    
    
    78,504
    
    
    
    109,780Short term derivative asset
    
    
    13
    
    
    
    38,382
    
    
    
    214,156Short term backlog asset
    
    
    9
    
    
    
    
    
    
    
    44Due from affiliate companies
    
    
    17
    
    
    
    1,973
    
    
    
    1,677Prepaid expenses and other current assets
    
    
    7
    
    
    
    27,730
    
    
    
    28,270Total current assets
    
    
    
    
    
    
    427,680
    
    
    
    505,409Deposit for vessels acquisitions
    
    
    8
    
    
    
    344,515
    
    
    
    404,096Vessels, port terminal and other fixed assets, net
    
    
    8,24
    
    
    
    1,577,741
    
    
    
    737,094Long term derivative assets
    
    
    13
    
    
    
    8,181
    
    
    
    36,697Deferred financing costs, net
    
    
    
    
    
    
    25,685
    
    
    
    13,449Deferred dry dock and special survey costs, net
    
    
    
    
    
    
    5,953
    
    
    
    4,873Investments in leased assets
    
    
    
    
    
    
    18,431
    
    
    
    18,998Investments in affiliates
    
    
    10,17
    
    
    
    13,042
    
    
    
    5,605Investments in available for sale securities
    
    
    8,10, 24
    
    
    
    46,314
    
    
    
    22,358Other long term assets
    
    
    
    
    
    
    19,153
    
    
    
    9,535Customer relationships
    
    
    9
    
    
    
    31,941
    
    
    
    33,716Trade name
    
    
    9
    
    
    
    86,100
    
    
    
    89,953Port terminal operating rights
    
    
    9
    
    
    
    30,382
    
    
    
    31,310Favorable lease terms
    
    
    9
    
    
    
    152,148
    
    
    
    192,899Goodwill
    
    
    3
    
    
    
    147,916
    
    
    
    147,632Total non-current assets
    
    
    
    
    
    
    2,507,502
    
    
    
    1,748,215Total assets
    
    
    
    
    
    $
    2,935,182
    
    
    $
    2,253,624LIABILITIES AND EQUITYCurrent liabilitiesAccounts payable
    
    
    
    
    
    $
    61,990
    
    
    $
    72,520Dividends payable
    
    
    2
    
    
    
    6,052
    
    
    
    9,096Accrued expenses
    
    
    11
    
    
    
    48,030
    
    
    
    34,468Deferred income and cash received in advance
    
    
    8
    
    
    
    9,529
    
    
    
    11,319Short term derivative liability
    
    
    13
    
    
    
    10,675
    
    
    
    128,952Current portion of long term debt
    
    
    12
    
    
    
    59,804
    
    
    
    15,177Total current liabilities
    
    
    
    
    
    
    196,080
    
    
    
    271,532Senior and ship mortgage notes, net of discount
    
    
    12
    
    
    
    693,049
    
    
    
    298,344Long term debt, net of current portion
    
    
    12
    
    
    
    869,853
    
    
    
    574,194Unfavorable lease terms
    
    
    9
    
    
    
    59,203
    
    
    
    76,684Long term liabilities and deferred income
    
    
    8,14
    
    
    
    33,470
    
    
    
    47,827Deferred tax liability
    
    
    2,22
    
    
    
    22,777
    
    
    
    26,573Long term derivative liability
    
    
    13
    
    
    
    
    
    
    
    23,691Total non-current liabilities
    
    
    
    
    
    
    1,678,352
    
    
    
    1,047,313Total liabilities
    
    
    
    
    
    
    1,874,432
    
    
    
    1,318,845Commitments and contingencies
    
    
    15
    
    
    
    
    
    
    
    Stockholders equityPreferred Stock  $0.0001 par value, authorized
1,000,000 shares, 8,201 and none issued and
outstanding as of December 31, 2009 and December
31, 2008, respectively
    
    
    
    
    
    
    
    
    
    
    
 F - 3




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 CONSOLIDATED BALANCE SHEETS
 December 31,
    
    
    December 31,Notes
    
    
    2009
    
    
    2008Common stock  $0.0001 par value, authorized
250,000,000 shares, issued and outstanding
100,874,199 and 100,488,784, as of December 31,
2009 and 2008, respectively
    
    
    
    
    
    
    10
    
    
    
    10Additional paid-in capital
    
    
    
    
    
    
    533,729
    
    
    
    494,719Accumulated other comprehensive income/ (loss)
    
    
    
    
    
    
    15,156
    
    
    
    (22,578
    )Retained earnings
    
    
    
    
    
    
    376,585
    
    
    
    333,669Total Navios Holdings stockholders equity
    
    
    
    
    
    
    925,480
    
    
    
    805,820Noncontrolling interest
    
    
    23
    
    
    
    135,270
    
    
    
    128,959Total equity
    
    
    
    
    
    
    1,060,750
    
    
    
    934,779Total liabilities and equity
    
    
    
    
    
    $
    2,935,182
    
    
    $
    2,253,624
  F - 4




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 
 CONSOLIDATED STATEMENTS OF INCOME
  Year Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,Note
    
    
    2009
    
    
    2008
    
    
    2007Revenue
    
    
    20
    
    
    $
    598,676
    
    
    $
    1,246,062
    
    
    $
    758,420Time charter, voyage and logistic business
expenses
    
    
    
    
    
    
    (353,838
    )
    
    
    (1,066,239
    )
    
    
    (557,573
    )Direct vessel expenses
    
    
    
    
    
    
    (31,454
    )
    
    
    (26,621
    )
    
    
    (27,892
    )General and administrative expenses
    
    
    
    
    
    
    (43,897
    )
    
    
    (37,047
    )
    
    
    (23,058
    )Depreciation and amortization
    
    
    8,9
    
    
    
    (73,885
    )
    
    
    (57,062
    )
    
    
    (31,900
    )Provision for losses on accounts receivable
    
    
    6
    
    
    
    (2,237
    )
    
    
    (2,668
    )
    
    
    Interest income from investments in finance lease
    
    
    
    
    
    
    1,330
    
    
    
    2,185
    
    
    
    3,507Interest income
    
    
    
    
    
    
    1,699
    
    
    
    7,753
    
    
    
    10,819Interest expense and finance cost, net
    
    
    
    
    
    
    (63,618
    )
    
    
    (49,128
    )
    
    
    (51,089
    )Gain on derivatives
    
    
    13
    
    
    
    375
    
    
    
    8,092
    
    
    
    25,100Gain on sale of assets/partial sale of subsidiary
    
    
    19
    
    
    
    20,785
    
    
    
    27,817
    
    
    
    167,511Other income
    
    
    
    
    
    
    6,749
    
    
    
    948
    
    
    
    445Other expense
    
    
    
    
    
    
    (20,508
    )
    
    
    (7,386
    )
    
    
    (767
    )Income before equity in net earnings of
affiliated companies and joint venture
    
    
    
    
    
    
    40,177
    
    
    
    46,706
    
    
    
    273,523Equity in net earnings of affiliated companies
and joint venture
    
    
    10,17
    
    
    
    29,222
    
    
    
    17,431
    
    
    
    1,929Income before taxes
    
    
    
    
    
    $
    69,399
    
    
    $
    64,137
    
    
    $
    275,452Income taxes
    
    
    2,22
    
    
    
    1,565
    
    
    
    56,113
    
    
    
    (4,451
    )Net income
    
    
    
    
    
    $
    70,964
    
    
    $
    120,250
    
    
    $
    271,001Less: Net income attributable to the
noncontrolling interest
    
    
    23
    
    
    
    (3,030
    )
    
    
    (1,723
    )
    
    
    Net income attributable to Navios Holdings
common stockholders
    
    
    
    
    
    $
    67,934
    
    
    $
    118,527
    
    
    $
    271,001Less:Incremental fair value of securities offered to
induce warrants exercise
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,195
    )Income available to Navios Holdings common
stockholders
    
    
    
    
    
    $
    67,934
    
    
    $
    118,527
    
    
    $
    266,806Basic net income per share attributable to
Navios Holdings stockholders
    
    
    
    
    
    $
    0.68
    
    
    $
    1.14
    
    
    $
    2.87Weighted average number of shares, basic
    
    
    21
    
    
    
    99,924,587
    
    
    
    104,343,083
    
    
    
    92,820,943Diluted net income per share attributable to
Navios Holdings stockholders
    
    
    
    
    
    $
    0.65
    
    
    $
    1.10
    
    
    $
    2.68Weighted average number of shares, diluted
    
    
    21
    
    
    
    105,194,659
    
    
    
    107,344,748
    
    
    
    99,429,533
  F - 5




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
  Year Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,Note
    
    
    2009
    
    
    2008
    
    
    2007OPERATING ACTIVITIES:Net income
    
    
    
    
    
    $
    70,964
    
    
    $
    120,250
    
    
    $
    271,001Adjustments to reconcile net income to net cash
provided by/(used in) operating activities:Depreciation and amortization
    
    
    8,9
    
    
    
    73,885
    
    
    
    57,062
    
    
    
    31,900Amortization and write-off of deferred financing
cost
    
    
    
    
    
    
    6,682
    
    
    
    2,077
    
    
    
    1,856Amortization of deferred dry dock costs
    
    
    
    
    
    
    2,441
    
    
    
    1,933
    
    
    
    1,687Provision for losses on accounts receivable
    
    
    6
    
    
    
    2,237
    
    
    
    2,668
    
    
    
    Unrealized (gain)/loss on FFA derivatives
    
    
    13
    
    
    
    (1,674
    )
    
    
    8,220
    
    
    
    (12,232
    )Unrealized (gain)/loss on warrants
    
    
    13
    
    
    
    (5,863
    )
    
    
    5,282
    
    
    
    Unrealized loss on available for sale securities
    
    
    24
    
    
    
    13,778
    
    
    
    
    
    
    
    Unrealized (gain)/loss on interest rate swaps
    
    
    13
    
    
    
    (1,774
    )
    
    
    1,874
    
    
    
    1,279Share based compensation
    
    
    14
    
    
    
    2,187
    
    
    
    2,694
    
    
    
    566Gains on sale of assets/partial sale of subsidiary
    
    
    19
    
    
    
    (20,785
    )
    
    
    (27,817
    )
    
    
    (167,511
    )Deferred taxes
    
    
    2,22
    
    
    
    (1,565
    )
    
    
    (56,113
    )
    
    
    4,451Compensation income
    
    
    
    
    
    
    (6,082
    )
    
    
    
    
    
    
    Earnings in affiliates and joint ventures, net of
dividends received
    
    
    10,17
    
    
    
    (1,355
    )
    
    
    (4,517
    )
    
    
    (1,251
    )Changes in operating assets and liabilities:Decrease /(increase) in restricted cash
    
    
    
    
    
    
    11,078
    
    
    
    65,839
    
    
    
    (67,473
    )Decrease /(increase) in accounts receivable
    
    
    
    
    
    
    29,082
    
    
    
    2,473
    
    
    
    (76,016
    )(Increase)/decrease in prepaid expenses and other
assets
    
    
    
    
    
    
    (9,465
    )
    
    
    16,704
    
    
    
    (29,811
    )(Increase)/decrease in due from affiliates
    
    
    
    
    
    
    (296
    )
    
    
    2,781
    
    
    
    (4,455
    )(Decrease)/increase in accounts payable
    
    
    
    
    
    
    (10,610
    )
    
    
    (42,154
    )
    
    
    59,946Increase/(decrease) in accrued expenses
    
    
    
    
    
    
    12,306
    
    
    
    (10,584
    )
    
    
    20,088(Decrease)/increase in deferred voyage revenue
    
    
    
    
    
    
    (5,172
    )
    
    
    (19,737
    )
    
    
    26,398(Decrease)/increase in long term liability
    
    
    
    
    
    
    (11,659
    )
    
    
    13,627
    
    
    
    (341
    )Increase/(decrease) in derivative accounts
    
    
    
    
    
    
    71,633
    
    
    
    (167,297
    )
    
    
    70,419Payments for dry dock and special survey costs
    
    
    
    
    
    
    (3,522
    )
    
    
    (3,653
    )
    
    
    (2,426
    )Net cash provided by/(used in) operating
activities
    
    
    
    
    
    
    216,451
    
    
    
    (28,388
    )
    
    
    128,075INVESTING ACTIVITIES:Acquisition of subsidiary, net of cash acquired
    
    
    3
    
    
    
    (369
    )
    
    
    (107,569
    )
    
    
    (145,436
    )Deposits in escrow in connection with acquisition
of subsidiary
    
    
    3
    
    
    
    
    
    
    
    (2,500
    )
    
    
    Proceeds from sale of assets
    
    
    19
    
    
    
    66,600
    
    
    
    70,088
    
    
    
    353,300Restricted cash for investing activities
    
    
    12
    
    
    
    (90,878
    )
    
    
    
    
    
    
    Receipts from finance lease
    
    
    
    
    
    
    567
    
    
    
    4,843
    
    
    
    9,049Deposits for vessel acquisitions
    
    
    8
    
    
    
    (238,810
    )
    
    
    (197,853
    )
    
    
    (188,254
    )Acquisition of vessels
    
    
    8
    
    
    
    (512,760
    )
    
    
    (118,814
    )
    
    
    (44,510
    )Purchase of property and equipment
    
    
    8
    
    
    
    (26,888
    )
    
    
    (100,832
    )
    
    
    (600
    )Net cash used in investing activities
    
    
    
    
    
    
    (802,538
    )
    
    
    (452,637
    )
    
    
    (16,451
    )FINANCING ACTIVITIES:Proceeds from long-term loan
    
    
    12
    
    
    
    621,270
    
    
    
    314,827
    
    
    
    141,914Proceeds from senior notes, net of discount
    
    
    12
    
    
    
    394,412
    
    
    
    
    
    
    
    Repayment of long term debt and payment of
principal
    
    
    12
    
    
    
    (333,952
    )
    
    
    (52,563
    )
    
    
    (135,945
    )
 F - 6




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,Note
    
    
    2009
    
    
    2008
    
    
    2007Debt issuance costs
    
    
    
    
    
    
    (18,097
    )
    
    
    (2,310
    )
    
    
    (3,228
    )Restricted cash
    
    
    
    
    
    
    (9,500
    )
    
    
    
    
    
    
    Contributions from noncontrolling shareholders
    
    
    
    
    
    
    563
    
    
    
    
    
    
    
    Issuance of common stock
    
    
    18
    
    
    
    
    
    
    
    6,749
    
    
    
    239,567Dividends paid
    
    
    
    
    
    
    (27,583
    )
    
    
    (28,588
    )
    
    
    (26,023
    )Acquisition of treasury stock
    
    
    18
    
    
    
    (717
    )
    
    
    (51,033
    )
    
    
    Net cash provided by financing activities
    
    
    
    
    
    
    626,396
    
    
    
    187,082
    
    
    
    216,285Increase (decrease) in cash and cash equivalents
    
    
    
    
    
    
    40,309
    
    
    
    (293,943
    )
    
    
    327,909Cash and cash equivalents, beginning of
year
    
    
    
    
    
    
    133,624
    
    
    
    427,567
    
    
    
    99,658Cash and cash equivalents, end of year
    
    
    
    
    
    $
    173,933
    
    
    $
    133,624
    
    
    $
    427,567SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATIONCash paid for interest
    
    
    
    
    
    $
    58,224
    
    
    $
    48,570
    
    
    $
    46,423Cash paid for income taxes
    
    
    
    
    
    $
    2,238
    
    
    $
    2,553
    
    
    $
    
 Non-cash investing and financing activities
 
    
    See Notes 8 and 18 for issuance of Preferred Stock in connection with the acquisition of vessels
    
    See Note 2 for dividends declared but not paid.
    
    See Note 12 for debt assumed in connection with acquisitions of business
    
    See Note 3 for the shares released to the shareholders of Horamar.
    
    See Note 24 for investments in available for sale securities.
  F - 7




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 
 CONSOLIDATED STATEMENTS OF EQUITY
 AccumulatedNumber of
    
    
    
    
    
    
    Number of
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    Other
    
    
    TotalPreferred
    
    
    Preferred
    
    
    Common
    
    
    Common
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    Navios Holdings
    
    
    NoncontrollingShares
    
    
    Stock
    
    
    Shares
    
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    Income/(Loss)
    
    
    Stockholders Equity
    
    
    Interest
    
    
    Total EquityBalance December 31, 2006
    
    
    
    
    
    $
    
    
    
    
    62,088,127
    
    
    $
    6
    
    
    
    276,178
    
    
    $
    7,848
    
    
    $
    (9,816
    )
    
    
    
    
    
    $
    274,216
    
    
    $
    
    
    
    
    274,216Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    271,001
    
    
    
    
    
    
    
    
    
    
    
    271,001
    
    
    
    
    
    
    
    271,001Other comprehensive
income/(loss):- Change in fair value of
financial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19,939
    )
    
    
    
    
    
    
    (19,939
    )
    
    
    
    
    
    
    (19,939
    )- Reclassification to
earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,816
    
    
    
    
    
    
    
    9,816
    
    
    
    
    
    
    
    9,816Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    260,878
    
    
    
    
    
    
    
    260,878Issuance of common stock in
connection with the
construction of two vessels
(Note 8,18)
    
    
    
    
    
    
    
    
    
    
    1,397,624
    
    
    
    
    
    
    
    20,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,000
    
    
    
    
    
    
    
    20,000Issuance of common stock
(Note 18)
    
    
    
    
    
    
    
    
    
    
    42,779,414
    
    
    
    5
    
    
    
    239,562
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    239,567
    
    
    
    
    
    
    
    239,567Stock based compensation
expenses (Note 18)
    
    
    
    
    
    
    
    
    
    
    147,264
    
    
    
    
    
    
    
    566
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    566
    
    
    
    
    
    
    
    566Dividends declared/paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (26,023
    )
    
    
    
    
    
    
    
    
    
    
    (26,023
    )
    
    
    
    
    
    
    (26,023
    )Balance December 31, 2007
    
    
    
    
    
    $
    
    
    
    
    106,412,429
    
    
    $
    11
    
    
    $
    536,306
    
    
    $
    252,826
    
    
    $
    (19,939
    )
    
    
    
    
    
    $
    769,204
    
    
    $
    
    
    
    $
    769,204Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    118,527
    
    
    
    
    
    
    
    
    
    
    
    118,527
    
    
    
    1,723
    
    
    
    120,250Other comprehensive
income/(loss):- Unrealized holding
losses on investments
in-available-for-sale
securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (22,578
    )
    
    
    
    
    
    
    (22,578
    )
    
    
    
    
    
    
    (22,578
    )- Reclassification to
earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,939
    
    
    
    
    
    
    
    19,939
    
    
    
    
    
    
    
    19,939Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    115,888
    
    
    
    1,723
    
    
    
    117,611Issuance of common stock
(Note 18)
    
    
    
    
    
    
    
    
    
    
    1,351,368
    
    
    
    
    
    
    
    6,756
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,756
    
    
    
    
    
    
    
    6,756Acquisition of Horamar
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    96,186
    
    
    
    96,186Noncontrolling interests in
subsidiaries of Horamar
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,050
    
    
    
    31,050Acquisition of treasury
shares (Note 18)
    
    
    
    
    
    
    
    
    
    
    (7,534,870
    )
    
    
    (1
    )
    
    
    (51,032
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51,033
    )
    
    
    
    
    
    
    (51,033
    )Stock based compensation
expenses (Note 18)
    
    
    
    
    
    
    
    
    
    
    259,857
    
    
    
    
    
    
    
    2,689
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,689
    
    
    
    
    
    
    
    2,689Dividends declared/ paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (37,684
    )
    
    
    
    
    
    
    
    
    
    
    (37,684
    )
    
    
    
    
    
    
    (37,684
    )Balance December 31, 2008
    
    
    
    
    
    
    
    
    
    
    100,488,784
    
    
    
    10
    
    
    
    494,719
    
    
    
    333,669
    
    
    
    (22,578
    )
    
    
    
    
    
    
    805,820
    
    
    
    128,959
    
    
    
    934,779Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    67,934
    
    
    
    
    
    
    
    
    
    
    
    67,934
    
    
    
    3,030
    
    
    
    70,964Other comprehensive
income/(loss):- Unrealized holding
gains on investments in
available-for-sale
securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,956
    
    
    
    
    
    
    
    23,956
    
    
    
    
    
    
    
    23,956- Reclassification to
earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,778
    
    
    
    
    
    
    
    13,778
    
    
    
    
    
    
    
    13,778Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    105,668
    
    
    
    3,030
    
    
    
    108,698Contribution from
noncontrolling shareholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,801
    
    
    
    2,801Acquisition of Hidronave S.A.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    480
    
    
    
    480Acquisition of treasury
shares (Note 18)
    
    
    
    
    
    
    
    
    
    
    (331,900
    )
    
    
    
    
    
    
    (717
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (717
    )
    
    
    
    
    
    
    (717
    )Issuance of Preferred Stock
(Note 18)
    
    
    8,201
    
    
    
    
    
    
    
    357,142
    
    
    
    
    
    
    
    37,575
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37,575
    
    
    
    
    
    
    
    37,575Stock-based compensation
expenses (Note 18)
    
    
    
    
    
    
    
    
    
    
    360,173
    
    
    
    
    
    
    
    2,152
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,152
    
    
    
    
    
    
    
    2,152Dividends declared/ paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25,018
    )
    
    
    
    
    
    
    
    
    
    
    (25,018
    )
    
    
    
    
    
    
    (25,018
    )Balance December 31, 2009
    
    
    8,201
    
    
    $
    
    
    
    
    100,874,199
    
    
    $
    10
    
    
    $
    533,729
    
    
    $
    376,585
    
    
    $
    15,156
    
    
    
    
    
    
    $
    925,480
    
    
    $
    135,270
    
    
    $
    1,060,750
  F-8




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 NOTE 1: DESCRIPTION OF BUSINESS
    NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
 (a)
    
    Basis of presentation:The accompanying consolidated financial
statements are prepared in accordance with accounting principles
generally accepted in the United States of America (US GAAP). Where
necessary, comparative figures have been reclassified to conform to
changes in presentation in the current year.(b)
    
    Change in accounting policy:In December 2007, the
Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards for
Noncontrolling Interests in Consolidated Financial
Statements, according to which accounting and reporting
for noncontrolling interests will be characterized as
noncontrolling interests and classified as a component
of equity. The Statement also establishes reporting
requirements that provide sufficient disclosures that
clearly identify and distinguish between the interests
of the parent and the interests of the noncontrolling
owners. Besides, this Statement applies to all entities
that prepare consolidated financial statements, except
not-for profit organizations, but affects only those
entities that have an outstanding noncontrolling
interest in one or more subsidiaries or that consolidate
a subsidiary that have an outstanding noncontrolling
interest. The guidance was effective for Navios Holdings
as of January 1, 2009 and as a result the Company has
adopted the presentation of noncontrolling interests in
the consolidated balance sheets, consolidated statements
of income, consolidated statements of cash flows,
consolidated statement of changes in equity and Note 23.(c)
    
    Principles of consolidation:The accompanying
consolidated financial statements include the accounts
of Navios Holdings, and its majority owned subsidiaries.
All significant inter-company balances and transactions
have been eliminated in the consolidated statements.Subsidiaries:Subsidiaries are those entities in which
the Company has an interest of more than one half of the
voting rights or otherwise has power to govern the
financial and operating policies. The purchase method of
accounting is used to account for the acquisition of
subsidiaries. The cost of an acquisition is measured as
the fair value of the assets given up, shares issued or
liabilities undertaken at the date of acquisition plus
costs directly attributable to the acquisition. The
excess of the cost of acquisition over the fair value of
the net tangible and intangible assets acquired and
liabilities assumed is recorded as goodwill.
 F-9




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Investments in Affiliates and Joint Ventures:Affiliates
are entities over which the Company generally has
between 20% and 50% of the voting rights, or over which
the Company has significant influence, but which it does
not exercise control. Joint ventures are entities over
which the Company exercises joint control. Investments
in these entities are accounted for by the equity method
of accounting. Under this method the Company records an
investment in the stock of an affiliate or joint venture
at cost, and adjusts the carrying amount for its share
of the earnings or losses of the affiliate or joint
venture subsequent to the date of investment and reports
the recognized earnings or losses in income. Dividends
received from an affiliate or joint venture; reduce the
carrying amount of the investment. When the Companys
share of losses in an affiliate or joint venture equals
or exceeds its interest in the affiliate, the Company
does not recognize further losses, unless the Company
has incurred obligations or made payments on behalf of
the affiliate or the joint venture.
 Subsidiaries included in the consolidation:
 EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios Maritime Holdings
Inc.
    
    Holding Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios Corporation
    
    Sub-Holding Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios International Inc.
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navimax Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios Handybulk Inc.
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Hestia Shipping Ltd.
    
    Operating Company
    
    
    100
    %
    
    Malta
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Anemos Maritime Holdings
Inc.
    
    Sub-Holding Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios ShipManagement Inc.
    
    Management Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31NAV Holdings Limited
    
    Sub-Holding Company
    
    
    100
    %
    
    Malta
    
    1/1  12/31
    
    1/1  12/31
    
    2/2  12/31Kleimar N.V.
    
    Operating
company/Vessel
Owning Company
    
    
    100
    %
    
    Belgium
    
    1/1  12/31
    
    1/1  12/31
    
    2/2  12/31Kleimar Ltd.
    
    Operating company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    9/13  12/31Bulkinvest S.A.
    
    Operating company
    
    
    100
    %
    
    Luxembourg
    
    1/1  12/31
    
    1/1  12/31
    
    2/2  12/31Navios Maritime
Acquisition Corporation
    
    Sub-Holding company
    
    
    100
    %
    
    Marshall Is.
    
    
    
    3/14  6/30
    
    Primavera Shipping
Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    10/15  12/31
    
    Ginger Services Co.
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    12/22  12/31
    
    
 F-10




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Astra Maritime Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    10/15  12/31
    
    Achilles Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Apollon Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Herakles Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Hios Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Ionian Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Kypros Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Meridian Shipping Enterprises
Inc.
    
    Navios Meridian
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Libra Shipping Enterprises 
Corporation
    
    Navios Libra II
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Alegria Shipping Corporation
    
    Navios Alegria
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    1/1  11/15Felicity Shipping Corporation
    
    Navios Felicity
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Gemini Shipping Corporation
    
    Navios Gemini S
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    1/1  11/15Mercator Shipping Corporation
    
    Navios Mercator
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Arc Shipping Corporation
    
    Navios Arc
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Galaxy Shipping Corporation
    
    Navios Galaxy I
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    1/1-11/15Horizon Shipping Enterprises 
Corporation
    
    Navios Horizon
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Magellan Shipping Corporation
    
    Navios Magellan
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Aegean Shipping Corporation
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Star Maritime Enterprises 
Corporation
    
    Navios Star
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Aurora Shipping Enterprises
Ltd.
    
    Navios Hope (ex
Navios Aurora I)
    
    
    100
    %
    
    Marshall Is.
    
    
    
    1/21  6/30
    
    Corsair Shipping Ltd.
    
    Navios Ulysses
    
    
    100
    %
    
    Marshall Is
    
    1/1  12/31
    
    6/11  12/31
    
    Rowboat Marine Inc.
    
    Navios Vega
    
    
    100
    %
    
    Marshall Is
    
    1/1  12/31
    
    6/11  12/31
    
    Hyperion Enterprises Inc.
    
    Navios Hyperion
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    2/26  12/31Beaufiks Shipping Corporation
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is
    
    1/1  12/31
    
    6/19  12/31
    
    Sagittarius Shipping 
Corporation
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  6/10
    
    3/6  12/31
    
    Nostos Shipmanagement Corp.
    
    Navios Bonavis
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    7/4-12/31Portorosa Marine Corporation
    
    Navios Happiness
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    7/4  12/31Shikhar Ventures S.A
    
    Navios Stellar
    
    
    100
    %
    
    Liberia
    
    1/1  12/31
    
    1/1  12/31
    
    12/12  12/31Sizzling Ventures Inc.
    
    Operating cosmpany
    
    
    100
    %
    
    Liberia
    
    1/1  12/31
    
    1/1  12/31
    
    12/12 12/31Rheia Associates Co.
    
    Operating company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/12  12/31Taharqa Spirit Corp.
    
    Operating company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/12  12/31Rumer Holding Ltd.(i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/10  12/31Chilali Corp.
    
    Navios Aurora II
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/10  12/31Pharos Navigation S.A.(i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    12/11  12/31Pueblo Holdings Ltd.
    
    Navios Lumen
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    8/8  12/31
    
    Surf Maritime Co.
    
    Navios Pollux
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    8/8  12/31
    
    Quena Shipmanagement Inc.
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    7/29  12/31
    
    Orbiter Shipping Corp.
    
    Navios Orbiter
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    9/13  12/31Aramis Navigation
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    12/14  12/31
    
    
    
    White Narcissus Marine S.A.
    
    Navios Asteriks
    
    
    100
    %
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    4/19  12/31
 F-11




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios G.P. L.L.C.
    
    Operating Company
    
    
    100
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    8/7  12/31Navios South American Logistics Inc.
    
    Sub-Holding Company
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    12/17  12/31Navios Maritime Partners L.P.
    
    Sub-Holding Company
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    8/7  11/15Prosperity Shipping Corporation
    
    Navios Prosperity
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    10/8  11/15Aldebaran Shipping Corporation
    
    Navios Aldebaran
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    10/8  11/15Fantastiks Shipping Corporation
    
    Navios Fantastiks
    
    
    100
    %
    
    Marshall Is.
    
    
    
    
    
    10/23  11/15Pandora Marine Inc. (i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    6/11-12/31
    
    
    
    Floral Marine Ltd. (i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    6/11  12/31
    
    
    
    Red Rose Shipping Corp. (i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    6/11-12/31
    
    
    
    Customized Development S.A.
    
    Vessel Owning Company
    
    
    100
    %
    
    Liberia
    
    6/22-12/31
    
    
    
    Highbird Management Inc.
    
    Navios Celestial
    
    
    100
    %
    
    Marshall Is.
    
    7/14  12/31
    
    
    
    Ducale Marine Inc. (i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    6/22-12/31
    
    
    
    Kohylia Shipmanagement S.A. (i)
    
    Vessel Owning Company
    
    
    100
    %
    
    Marshall Is.
    
    7/14  12/31
    
    
    
    Corporacion Navios S.A.
    
    Operating Company
    
    
    100
    %
    
    Uruguay
    
    
    
    
    
    1/1  12/31Navios Maritime Finance (US) Inc.
    
    Operating Company
    
    
    100
    %
    
    Delaware
    
    10/20-12/31
    
    
    
    
 F-12




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 EffectiveNature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios South American Logistics and Subsidiaries:Navios South American Logistics Inc.
    
    Sub-Holding Company
    
    
    65.48
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    Corporacion Navios SA
    
    Operating Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Nauticler SA
    
    Sub-Holding Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Compania Naviera Horamar SA
    
    Operating Company
    
    
    65.48
    %
    
    Argentina
    
    1/1  12/31
    
    1/1  12/31
    
    Compania de Transporte Fluvial Int SA
    
    Operating Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Ponte Rio SA
    
    Operating Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Thalassa Energy SA
    
    Barge Owning Company
    
    
    40.93
    %
    
    Argentina
    
    1/1  12/31
    
    1/1  12/31
    
    HS Tankers Inc.
    
    Makenita H
    
    
    33.39
    %
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    HS Navegation Inc.
    
    Estefania H
    
    
    33.39
    %
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    HS Shipping Ltd Inc.
    
    Malva H
    
    
    40.93
    %
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    HS South Inc. (ii)
    
    Vessel Owning Company
    
    
    40.93
    %
    
    Panama
    
    1/1  12/31
    
    1/1  12/31
    
    Mercopar Internacional S.A.(iii)
    
    Holding Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/9
    
    1/1  12/31
    
    Nagusa Internacional S.A. (iii)
    
    Holding Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/9
    
    1/1  12/31
    
    Hidrovia OSR Internacional S.A. (iii)
    
    Holding Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/9
    
    1/1  12/31
    
    Petrovia Internacional S.A.
    
    Holding Company
    
    
    65.48
    %
    
    Uruguay
    
    1/1  12/31
    
    1/1  12/31
    
    Mercopar S.A.
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Navegation Guarani S.A.
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Hidrovia OSR S.A.
    
    Oil Spill Response &
Salvage Services
    
    
    65.48
    %
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Petrovia S.A.(iv)
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  1/20
    
    1/1  12/31
    
    Mercofluvial S.A.
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Petrolera San Antonio S.A. (PETROSAN)
    
    Oil Storage Plant and
Dock Facilities
    
    
    65.48
    %
    
    Paraguay
    
    1/1  12/31
    
    1/1  12/31
    
    Flota Mercante Paraguaya S.A.(iv)
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  2/13
    
    1/1  12/31
    
    Compania de Transporte Fluvial S.A.
(iv)
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  2/13
    
    1/1  12/31
    
    Hidrogas S.A. (iv)
    
    Shipping Company
    
    
    65.48
    %
    
    Paraguay
    
    1/1  1/20
    
    1/1  12/31
    
    Stability Oceanways S.A.
    
    Barge and Pushboat
Owning Shipping
Company
    
    
    65.48
    %
    
    Panama
    
    1/1  12/31
    
    4/16  12/31
    
    Hidronave S.A.
    
    Pushboat Owning Company
    
    
    33.39
    %
    
    Brazil
    
    1/11  12/31
    
    
    
    
 
 (i)
    
    Each company has the rights over the shipbuilding contract of a Capesize vessel. (Note 8)(ii)
    
    This company has the rights over the shipbuilding contract of a tanker vessel.(iii)
    
    These companies were sold on December 10, 2009 to independent third parties.(iv)
    
    These companies were merged into other Paraguayan shipping companies within the Navios Logistics group. F-13




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Affiliates included in the financial statements accounted for under the equity method:
 Nature /
    
    Ownership
    
    Country of
    
    Statement of operationsCompany Name
    
    Vessel Name
    
    Interest (*)
    
    Incorporation
    
    2009
    
    2008
    
    2007Navios Maritime Partners L.P.
    
    Sub-Holding Company
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Navios Maritime Operating L.L.C.
    
    Operating Company
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Libra Shipping Enterprises Corporation
    
    Navios Libra II
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Alegria Shipping Corporation
    
    Navios Alegria
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Felicity Shipping Corporation
    
    Navios Felicity
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Gemini Shipping Corporation
    
    Navios Gemini S
    
    
    27.7
    %
    
    Marshal Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Galaxy Shipping Corporation
    
    Navios Galaxy I
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Prosperity Shipping Corporation
    
    Navios Prosperity
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Fantastiks Shipping Corporation
    
    Navios Fantastiks
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Aldebaran Shipping Corporation
    
    Navios Aldebaran
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    1/1  12/31
    
    11/16  12/31Aurora Shipping Enterprises Ltd.
    
    Navios Hope (ex
Navios Aurora I)
    
    
    27.7
    %
    
    Marshall Is.
    
    1/1  12/31
    
    7/1  12/31
    
    Sagittarius Shipping Corporation
    
    Navios Sagittarius
    
    
    27.7
    %
    
    Marshall Is.
    
    6/10  12/31
    
    
    
    Palermo Shipping S.A.
    
    Navios Apollon
    
    
    27.7
    %
    
    Marshall Is.
    
    10/29  12/31
    
    
    
    Acropolis Chartering & Shipping Inc.
    
    Brokerage Company
    
    
    50
    %
    
    Liberia
    
    1/1  12/31
    
    1/1  12/31
    
    1/1  12/31Navios Maritime Acquisition Corporation
    
    Sub-Holding Company
    
    
    19
    %
    
    Marshall Is.
    
    1/1  12/31
    
    7/1  12/31
    
    
 
 (*)
    
    percentage does not include the ownership of 3,131,415 common units relating to the sale of
Navios Hope to Navios Partners. (d)
    
    Use of estimates:The preparation of consolidated
financial statements in conformity with the accounting
principles generally accepted in the United States of
America requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets
and liabilities as of the dates of the financial
statements and the reported amounts of revenues and
expenses during the reporting periods. On an on-going
basis, management evaluates the estimates and
judgments, including those related to uncompleted
voyages, future drydock dates, the carrying value of
investments in affiliates, the selection of useful
lives for tangible assets, expected future cash flows
from long-lived assets to support impairment tests,
provisions necessary for accounts receivables,
provisions for legal disputes, pension benefits, and
contingencies. Management bases its estimates and
judgments on historical experience and on various
other factors that are believed to be reasonable under
the circumstances, the results of which form the basis
for making judgments about the carrying values of
assets and liabilities that are not readily apparent
from other sources. Actual results could differ from
those estimates under different assumptions and/or
conditions.(e)
    
    Cash and Cash equivalents:Cash and cash equivalents
consist of cash on hand, deposits held on call with
banks, and other short-term liquid investments with
original maturities of three months or less.(f)
    
    Restricted cash:Restricted cash consists of the
restricted portion of derivative base and margin
collaterals with NOS ASA, a Norwegian clearing house,
and cash retention accounts which are restricted for
use as general working capital unless such balances
exceed installment and interest payments due to
vessels lenders. A portion of the amounts on deposit
with NOS ASA and LCH are held as base and margin
collaterals on active trades. As of December 31, 2009
and 2008, the restricted balance with NOS ASA was $471
and $1,586, respectively and with LCH was $1,104 and
$9,993 respectively.Also included in restricted cash as of December 31,
2009 and 2008 are amounts held as security in the form
of letters of guarantee or letters of credit totaling
$2,167 and $1,534, respectively. In addition at each
of December 31, 2009 and 2008 restricted cash includes
$103,416 (out of which $90,878 is kept in a pledged
account and may be released to the Company subject to
nomination of substitute vessels agreed by the bank)
and $4,745, respectively.(g)
    
    Insurance claims:Insurance claims at each balance sheet date consist of claims
submitted and/or claims in the process of compilation or submission (claims
pending). They are recorded on the accrual basis and represent the claimable
expenses, net of applicable deductibles, incurred through December 31 of each
reported period, which are expected to be recovered from insurance companies. Any
remaining costs to complete the claims are included in accrued liabilities. The
classification of insurance claims into current and non-current assets is based on
managements expectations as to their collection dates.(h)
    
    Inventories:Inventories, which are comprised of lubricants and stock provisions on
board the owned vessels, are valued at the lower of cost or market value as
determined on the first-in first-out basis.
 F-14




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 (i)
    
    Vessel, Port Terminal. Tanker Vessels, Barges, Push boats and Other Fixed Assets,
net:Vessels, port terminal, tanker vessels, barges, push boats and other fixed
assets acquired as parts of business combination would be recorded at fair market
value on the date of acquisition. Vessels acquired as asset acquisitions would be
stated at historical cost, which consists of the contract price, any material
expenses incurred upon acquisition (improvements and delivery expenses). Subsequent
expenditures for major improvements and upgrading are capitalized, provided they
appreciably extend the life, increase the earning capacity or improve the
efficiency or safety of the vessels. The cost and related accumulated depreciation
of assets retired or sold are removed from the accounts at the time of sale or
retirement and any gain or loss is included in the accompanying consolidated
statements of operations.Expenditures for routine maintenance and repairs are expensed as incurred.Depreciation is computed using the straight line method over the useful life of the
vessels, after considering the estimated residual value.Annual depreciation rates used, which approximate the useful life of the assets are:
 Vessels
    
    25 yearsPort facilities and transfer station
    
    3 to 40 yearsTanker vessels, barges and push boats
    
    15 to 44 yearsFurniture, fixtures and equipment
    
    3 to 10 yearsComputer equipment and software
    
    5 yearsLeasehold improvements
    
    6 years
 Management estimates the useful life of the Companys vessels to be 25 years
from the vessels original construction. However, when regulations place
limitations over the ability of a vessel to trade on a worldwide basis, its
useful life is re-estimated to end at the date such regulations become
effective.(j)
    
    Deposits for vessels acquisitions:This represents amounts expensed by
the Company in accordance with the terms of the purchase agreements
for the construction of long-lived fixed assets. Interest costs
incurred during the construction (until the asset is substantially
complete and ready for its intended use) are capitalized. Capitalized
interest for the year ended December 31, 2009 amounted to $11,854
($4,387 and $54 for the years ended December 31, 2008 and 2007,
respectively). In September 2008, Navios Logistics began construction
of a new silo at its port facility in Uruguay, which has been fully
operational since August 2009 and has added an additional of 80,000
metric tons storage capacity. For the construction of the new silo
Navios Logistics paid an amount of $4,770 during 2008 and $2,767
during 2009.(k)
    
    Assets Held for Sale:It is the Companys policy to dispose of vessels
and other fixed assets when suitable opportunities occur and not
necessarily to keep them until the end of their useful life. The
Company classifies assets and disposal groups as being held for sale
in accordance with accounting for the impairment or the disposal of
long-lived assets, when the following criteria are met: management has
committed to a plan to sell the asset (disposal group); the asset
(disposal group) is available for immediate sale in its present
condition; an active program to locate a buyer and other actions
required to complete the plan to sell the asset (disposal group) have
been initiated; the sale of the asset (disposal group) is probable,
and transfer of the asset (disposal group) is expected to qualify for
recognition as a completed sale within one year; the asset (disposal
group) is being actively marketed for sale at a price that is
reasonable in relation to its current fair value; and actions required
to complete the plan indicate that it is unlikely that significant
changes to the plan will be made or that the plan will be withdrawn.
Long-lived assets or disposal groups classified as held for sale are
measured at the lower of their carrying amount or fair value less cost
to sell. These assets are not depreciated once they meet the criteria
to be held for sale. No assets were classified as held for sale in any
of the periods presented.(l)
    
    Impairment of Long Lived Assets:Vessels, other fixed assets and
other long lived assets held and used by Navios Holdings are
reviewed periodically for potential impairment whenever events or
changes in circumstances indicate that the carrying amount of a
particular asset may not be fully recoverable. In accordance with
Impairment of Long Lived Assets, Navios Holdings management
evaluates the carrying amounts and periods over which long-lived
assets are depreciated to determine if events or changes in
circumstances have occurred that would require modification to
their carrying values or useful lives. In evaluating useful lives
and carrying values of long-lived assets, certain indicators of
potential impairment, are reviewed such as undiscounted projected
operating cash flows, vessel sales and purchases, business plans
and overall market conditions. Undiscounted projected net
operating cash flows are determined for each vessel and compared
to the vessel carrying value. In the event that impairment
occurred, the fair value of the related asset is determined and a
charge is recorded to operations calculated by comparing the
assets carrying value to the estimated fair market value. Fair
market value is estimated primarily through the use of third-party
valuations performed on an individual vessel basis.
 F-15




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 For the year ended December 31, 2009, the management of Navios
Holdings after considering various indicators, including but not
limited to the market price of its long-lived assets, its
contracted revenues and cash flows and the economic outlook,
concluded that no impairment loss should be recognized on the
long-lived assets of Navios Holdings.Although management believes the underlying indicators supporting
this assessment are reasonable, if charter rate trends and the
length of the current market downturn, management may be required
to perform impairment analysis in the future that could expose
Navios Holdings to material impairment charges in the future.No impairment loss was recognized for any of the periods presented.(m)
    
    Deferred Dry-dock and Special Survey Costs:The
Companys vessels, barges and push boats are subject
to regularly scheduled dry-docking and special surveys
which are carried out every 30, 60, and 84 months for
vessels and barges and push boats, respectively, to
coincide with the renewal of the related certificates
issued by the Classification Societies, unless a
further extension is obtained in rare cases and under
certain conditions. The costs of dry-docking and
special surveys is deferred and amortized over the
above periods or to the next dry-docking or special
survey date if such has been determined. Unamortized
dry-docking or special survey costs of vessels, barges
and push boats sold are written off to income in the
year the vessel, barge or push boat is sold.This cost is determined by reference to the estimated
economic benefits to be derived until the next
dry-docking or special survey. For each of the years
ended December 31, 2009, 2008 and 2007, the
amortization was $2,441, $1,933, and $1,687,
respectively. Accumulated amortization as of
December 31, 2009 and 2008 was $4,268 and $3,028,
respectively.(n)
    
    Asset Retirement Obligation:In accordance with
accounting for asset retirement obligations the
Company recorded a legal obligation associated with
the retirement of a tangible long lived asset in the
period in which it is incurred. At December 31, 2009
and 2008, the asset balance was $20 for each period.
At December 31, 2009 and 2008, the liability balance
associated with the lease of port terminal was $39 and
$37, respectively.(o)
    
    Deferred Financing Costs:Deferred financing costs
include fees, commissions and legal expenses
associated with obtaining loan facilities. These costs
are amortized over the life of the related debt using
the effective interest rate method, and are included
in interest expense. Amortization and write offs for
each of the years ended December 31, 2009, 2008 and
2007 were $6,682, $2,077 and $1,856, respectively.(p)
    
    Goodwill and Other Intangibles:As required by the
accounting for goodwill and other intangible assets,
goodwill acquired in a business combination initiated
after June 30, 2001 is not to be amortized. Similarly,
intangible assets with indefinite lives are not
amortized. Rather, the guidance requires that goodwill
be tested for impairment at least annually and written
down with a charge to operations if the carrying
amount exceeds the estimated fair value.The Company evaluates impairment of goodwill using a
two-step process. First, the aggregate fair value of
the reporting unit is compared to its carrying amount,
including goodwill. The Company determines the fair
value based on a combination of discounted cash flow
analysis and an industry market multiple.If the fair value exceeds the carrying amount, no
impairment exists. If the carrying amount of the
reporting unit exceeds the fair value, then the
Company must perform the second step in order to
determine the implied fair value of the reporting
units goodwill and compare it with its carrying
amount. The implied fair value is determined by
allocating the fair value of the reporting unit to all
the assets and liabilities of that unit, as if the
unit had been acquired in a business combination and
the fair value of the unit was the purchase price. If
the carrying amount of the goodwill exceeds the
implied fair value, then goodwill impairment is
recognized by writing the goodwill down to the implied
fair value.No impairment loss was recognized for any of the periods presented.The fair value of the trade name was determined based on the
relief from royalty method which values the trade name based on
the estimated amount that a company would have to pay in an arms
length transaction in order to use that trade name. The asset is
being amortized under the straight line method over 32 years. The
fair value of customer relationships was determined based on the
excess earnings method, which relies upon the future cash flow
generating ability of the asset. The asset is amortized under the
straight line method over 20 years. Other intangibles that are
being amortized, such as the amortizable portion of favorable
leases, port terminal operating rights, backlog assets and
liabilities, would be considered impaired if their fair market
value could not be recovered from the future undiscounted cash
flows associated with the asset. Vessel purchase options, which
are included in favorable lease terms, are not amortized and would
be considered impaired if the carrying value of an option, when
added to the option price of the vessel, exceeded the fair market
value of the vessel.
 F-16




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 The weighted average amortization periods for intangibles are:
 Intangible assets/liabilities
    
    YearsTrade name
    
    
    21.0Favorable lease terms (*)
    
    
    6.6Unfavorable lease terms (**)
    
    
    4.7Port terminal operating rights
    
    
    30.0Customer relationships
    
    
    20.0Backlog asset  port terminal
    
    
    3.6
 
 (*)
    
    The intangible asset associated with
the favorable lease terms includes
an amount of $57,187 related to
purchase options for the vessels.
This amount is not amortized and
should the purchase options be
exercised, any unamortized portion
of this asset will be capitalized as
part of the cost of the vessel and
will be depreciated over the
remaining useful life of the vessel
(Note 9). As of December 31, 2009
and 2008, $16,545 and $16,545,
respectively, had been transferred
to the acquisition cost of vessels
and as of December 31, 2009 the
amount of $2,885, has been written
off due to the sale of Navios
Sagittarius to Navios Partners on
June 10, 2009.(**)
    
    The intangible liability associated
with the unfavorable lease terms
includes an amount of $15,890
related to purchase options held by
third parties. This amount is not
amortized and if exercised by the
third party the liability will be
included in the calculation of the
gain or loss of the related vessel.
As of December 31, 2009 and 2008, no
purchase options held by third
parties have been exercised. (q)
    
    Foreign Currency Translation:The
Companys functional and reporting
currency is the US Dollar. The
Company engages in worldwide
commerce with a variety of entities.
Although, its operations may expose
it to certain levels of foreign
currency risk, its transactions are
predominantly US dollar denominated.
Additionally, the Companys
subsidiaries in Uruguay, Argentina,
Brazil and Paraguay transact a
nominal amount of their operations
in Uruguayan pesos, Argentinean
pesos, Reales and Guaranies whereas
the Companys wholly-owned vessel
subsidiaries and the vessel
management subsidiary transact a
nominal amount of their operations
in Euros; however, all of the
subsidiaries primary cash flows are
US dollar denominated. Transactions
in currencies other than the
functional currency are translated
at the exchange rate in effect at
the date of each transaction.
Differences in exchange rates during
the period between the date a
transaction denominated in a foreign
currency is consummated and the date
on which it is either settled or
translated, are recognized in the
statement of income. The foreign
currency exchange gains/(losses)
recognized in the consolidated
statement of income for each of the
years ended December 31, 2009, 2008
and 2007, were $181, $(11) and
$(104), respectively.(r)
    
    Provisions:The Company, in the ordinary course of
business, is subject to various claims, suits and
complaints. Management, in consultation with internal
and external advisers, will provide for a contingent
loss in the financial statements if the contingency
had been incurred at the date of the financial
statements and the amount of the loss can be
reasonably estimated. In accordance with the FASB
issued guidance for accounting for contingencies, as
interpreted by the FASB issued guidance, reasonable
estimation of the amount of a loss, if the Company
has determined that the reasonable estimate of the
loss is a range and there is no best estimate within
the range, the Company will provide the lower amount
of the range. See Note 15, Commitments and
Contingencies for further discussion.The Company participates in Protection and Indemnity
(P&I) insurance plans provided by mutual insurance
associations known as P&I clubs. Under the terms of
these plans, participants may be required to pay
additional premiums (supplementary calls) to fund
operating deficits incurred by the clubs (back
calls). Obligations for back calls are accrued
annually based on information provided by the clubs.Provisions for estimated losses on uncompleted voyages
and vessels time chartered to others are provided for
in the period in which such losses are determined. At
December 31, 2009, the balance for provision for loss
making voyages in progress was $2,048 (2008: $2,339).(s)
    
    Segment Reporting:The Company accounts for its
segments in accordance with the FASB issued guidance
which establishes disclosures about segments of an
enterprise and related information and requires
descriptive information about its reportable operating
segments. Operating segments, as defined, are
components of an enterprise about which separate
financial information is available that is evaluated
regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing
performance. Following the acquisition of Horamar and
the formation of Navios Logistics, the Company has
renamed its Port Terminal Segment to Logistics
Segment, to include the activities of Horamar which
provides similar products and services in the region
that Navios existing port facility currently
operates. Based on the Companys methods of internal
reporting and management structure, the Company has
two reportable segments: Vessel Operations and
Logistic Business.
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 (t)
    
    Revenue and Expense Recognition:Revenue Recognition:Revenue is recorded when services
are rendered, the Company has a signed charter
agreement or other evidence of an arrangement, the
price is fixed or determinable, and collection is
reasonably assured. The Company generates revenue from
the following sources, (1) transportation of cargo,
(2) time charter of vessels and (3) port terminal
operations.Voyage revenues for the transportation of cargo are
recognized ratably over the estimated relative transit
time of each voyage. A voyage is deemed to commence
when a vessel is available for loading and is deemed
to end upon the completion of the discharge of the
current cargo. Estimated losses on voyages are
provided for in full at the time such losses become
evident. Under a voyage charter, the Company agrees to
provide a vessel for the transportation of specific
goods between specific ports in return for payment of
an agreed upon freight rate per ton of cargo.Revenues from time chartering of vessels are accounted
for as operating leases and are thus recognized on a
straight line basis as the average revenue over the
rental periods of such charter agreements, as service
is performed, except for loss generating time
charters, in which case the loss is recognized in the
period when such loss is determined. A time charter
involves placing a vessel at the charterers disposal
for a period of time during which the charterer uses
the vessel in return for the payment of a specified
daily hire rate. Short period charters for less than
three months are referred to as spot-charters.
Charters extending three months to a year are
generally referred to as medium term charters. All
other charters are considered long term. Under time
charters, operating cost such as for crews,
maintenance and insurance are typically paid by the
owner of the vessel.Revenues from port terminal operations consist of an
agreed flat fee per ton and cover the services
performed to unload barges (or trucks), transfer the
product into the silos for temporary storage and then
loading the ocean-going vessels. Revenues are
recognized upon completion of loading the ocean-going
vessels. Additionally, fees are charged for vessel
dockage and for storage time in excess of
contractually specified terms. Dockage revenues are
recognized ratably up to completion of loading.
Storage fees are assessed and recognized when the
product remains in the silo storage beyond the
contractually agreed time allowed. Storage fee revenue
is recognized ratably over the storage period and ends
when the product is loaded onto the ocean-going
vessel.Forward Freight Agreements (FFAs):Realized gains or
losses from FFAs are recognized monthly concurrent
with cash settlements. In addition, the FFAs are
marked to market quarterly to determine the fair
values which generate unrealized gains or losses.
Trading of FFAs could lead to material fluctuations in
the Companys reported results from operations on a
period to period basis. See Note 13.Deferred Voyage Revenue:Deferred voyage revenue
primarily relates to cash received from charterers
prior to it being earned. These amounts are recognized
as revenue over the voyage or charter period.Time Charter, Voyage and Port Terminal Expense:Time
charter and voyage expenses comprise all expenses
related to each particular voyage, including time
charter hire paid and voyage freight paid, bunkers,
port charges, canal tolls, cargo handling, agency fees
and brokerage commissions. Also included in time
charter and voyage expenses are charterers liability
insurances, provision for losses on time charters and
voyages in progress at year-end, direct port terminal
expenses and other miscellaneous expenses.Direct Vessel Expense:Direct vessel expenses consist
of all expenses relating to the operation of vessels,
including crewing, repairs and maintenance, insurance,
stores and lubricants and miscellaneous expenses such
as communications and amortization of dry-docking and
special survey costs.Prepaid Voyage Costs:Prepaid voyage costs relate to
cash paid in advance for expenses associated with
voyages. These amounts are recognized as expense over
the voyage or charter period.(u)
    
    Employee benefits:Pension and retirement obligations-crew:The Companys
ship-owning subsidiary companies employ the crew on
board under short-term contracts (usually up to nine
months) and, accordingly, they are not liable for any
pension or post-retirement benefits.
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Provision for employees severance and retirement
compensation:The employees in the Companys office in
Greece are protected by Greek labor law. Accordingly,
compensation is payable to such employees upon
dismissal or retirement. The amount of compensation is
based on the number of years of service and the amount
of remuneration at the date of dismissal or
retirement. If the employees remain in the employment
of the Company until normal retirement age, they are
entitled to retirement compensation which is equal to
40% of the compensation amount that would be payable
if they were dismissed at that time. The number of
employees that will remain with the Company until
retirement age is not known. The Company is required
to annually value the statutory terminations
indemnities liability. Management obtains a valuation
from independent actuaries to assist in the
calculation of the benefits. The Company provides, in
full, for the employees termination indemnities
liability. This liability amounted to $368 and $305 at
December 31, 2009 and 2008, respectively.U.S. Retirement savings plan:The Company sponsors a
401(k) retirement savings plan, which is categorized
as a defined contribution plan. The plan is available
to full time employees who meet the plans eligibility
requirements. The plan permits employees to make
contributions up to 15% of their annual salary with
the Company matching up to the first 6%. The Company
makes monthly contributions (matching contributions)
to the plan based on amounts contributed by employees.
Subsequent to making the matching contributions, the
Company has no further obligations. The Company may
make an additional discretionary contribution annually
if such a contribution is authorized by the Board of
Directors. The plan is administered by an independent
professional firm that specializes in providing such
services. See Note 14.Other post-retirement obligations:The Company has a
legacy pension arrangement for certain Bahamian,
Uruguayan and former Navios Corporation employees. The
entitlement to these benefits is only to these former
employees. The expected costs of these benefits are
accrued each year, using an accounting methodology
similar to that for defined benefit pension plans.
These obligations are valued annually by independent
actuaries.Stock-based compensation:On October 18, 2007 and
December 16, 2008, the Compensation Committee of the
Board of Directors authorized the issuance of
 restricted common stock, restricted stock units and
stock options in accordance with the Companys stock
option plan for its employees, officers and directors.
The Company awarded shares of restricted common stock
and restricted stock units to its employees, officers
and directors and stock options to its officers and
directors, based on service conditions only, which
vest over two years and three years, respectively. On
December 17, 2009, the Company authorized the issuance
of shares of restricted common stock, restricted stock
units and stock options in accordance with the
Companys stock option plan for its employees,
officers and directors. The awarded on December 17,
2009, restricted common stock and restricted stock
units to its employees, officers and directors, vest
over three years.The fair value of stock option grants is determined
with reference to option pricing models, principally
adjusted Black-Scholes models. The fair value of
restricted stock and restricted stock units is
determined by reference to the quoted stock price on
the date of grant. Compensation expense, net of
estimated forfeitures, is recognized based on a graded
expense model over the vesting period.(v)
    
    Financial Instruments:Financial instruments carried
on the balance sheet include cash and cash
equivalents, trade receivables and payables, other
receivables and other liabilities, long-term debt and
capital leases. The particular recognition methods
applicable to each class of financial instrument are
disclosed in the applicable significant policy
description of each item, or included below as
applicable.Financial risk management:The Companys activities
expose it to a variety of financial risks including
fluctuations in future freight rates, time charter
hire rates, and fuel prices, credit and interest rates
risk. Risk management is carried out under policies
approved by executive management. Guidelines are
established for overall risk management, as well as
specific areas of operations.Credit risk:The Company closely monitors its exposure
to customers and counter-parties for credit risk. The
Company has policies in place to ensure that it trades
with customers and counterparties with an appropriate
credit history. Derivative counter-parties and cash
transactions are limited to high quality credit
financial institutions.Interest rate risk:The Company is party to interest
rate swap agreements. The purpose of the agreements is
to reduce exposure to fluctuations in interest rates.
Any differential to be paid or received on an interest
rate swap agreement is recognized as a component of
gain/loss on derivatives over the period of the
agreement. Gains and losses on early termination of
interest rate swaps are taken to the consolidated
statement of operations. The effective portion of
changes in the fair value of interest rate swap
agreements that are designated and qualify as cash
flow hedges are recognized in equity. The gain or loss
relating to the ineffective portion is recognized in
the statement of operations.Liquidity risk:Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities, the availability of funding
through an adequate amount of committed credit facilities and the
ability to close out market positions. The Company monitors cash
balances adequately to meet working capital needs.
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Foreign exchange risk:Foreign currency transactions are translated
into the measurement currency rates prevailing at the dates of
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies are
recognized in the statement of operations.Accounting for derivative financial instruments and hedging activities:The Company enters into dry bulk shipping FFAs as economic hedges
relating to identifiable ship and or cargo positions and as economic
hedges of transactions the Company expects to carry out in the normal
course of its shipping business. By utilizing certain derivative
instruments, including dry bulk shipping FFAs, the Company manages the
financial risk associated with fluctuating market conditions. In
entering into these contracts, the Company has assumed the risk that
might arise from the possible inability of counterparties to meet the
terms of their contracts.The Company also trades dry bulk shipping FFAs which are cleared
through NOS ASA, a Norwegian clearing house and LCH the London
clearing house. NOS ASA and LCH call for both base and margin
collaterals, which are funded by Navios Holdings, and which in turn
substantially eliminate counterparty risk. Certain portions of these
collateral funds may be restricted at any given time as determined by
NOS ASA and LCH.At the end of each calendar quarter, the fair value of dry bulk
shipping FFAs traded over-the-counter are determined from an index
published in London, United Kingdom and the fair value of those FFAs
traded with NOS ASA and LCH are determined from the NOS and LCH
valuations accordingly.Pursuant to the accounting for derivative financial instruments, the
Company records all of its derivative financial instruments and hedges
as economic hedges except for those qualifying for hedge accounting.
Gains or losses of instruments qualifying for hedge accounting as cash
flow hedges are reflected under Accumulated Other Comprehensive
Income/(Loss) in stockholders equity, while those instruments that
do not meet the criteria for hedge accounting are reflected in the
statement of operations. For FFAs that qualify for hedge accounting
the changes in fair values of the effective portion representing
unrealized gain or losses are recorded under Accumulated Other
Comprehensive Income/(Loss) in the stockholders equity while the
unrealized gains or losses of the FFAs not qualifying for hedge
accounting together with the ineffective portion of those qualifying
for hedge accounting, are recorded in the statement of operations
under Gain/(Loss) on derivatives. The gains/(losses) included in
Accumulated Other Comprehensive Income/(Loss) are being reclassified
to earnings under Revenue in the statement of operations in the same
period or periods during which the hedged forecasted transaction
affects earnings. The reclassification to earnings commenced in the
third quarter of 2006 and extended until December 31, 2008, depending
on the period or periods during which the hedged forecasted
transactions affected earnings. All of the amount included in
Accumulated Other Comprehensive Income/(Loss) had been reclassified
to earnings as of December 31, 2008. For the years ended December 31,
2009, 2008 and 2007, losses of $0, $19,939 and $9,816, respectively,
included in Accumulated Other Comprehensive Income/ (Loss), were
reclassified to earnings.The Company classifies cash flows related to derivative financial
instruments within cash provided by operating activities in the
consolidated statement of cash flows.(w)
    
    Earnings per Share:Basic earnings per share are
computed by dividing net income by the weighted
average number of common shares outstanding during the
periods presented. Diluted earnings per share reflect
the potential dilution that would occur if securities
or other contracts to issue common stock were
exercised. Dilution has been computed by the treasury
stock method whereby all of the Companys dilutive
securities (the warrants and stock options) are
assumed to be exercised and the proceeds used to
repurchase common shares at the weighted average
market price of the Companys common stock during the
relevant periods. The incremental shares (the
difference between the number of shares assumed issued
and the number of shares assumed purchased) shall be
included in the denominator of the diluted earnings
per share computation. Restricted stock and restricted
stock units (vested and unvested) is included in the
calculation of the diluted earnings per shares, based
on the weighted average number of restricted stock and
restricted stock units assumed to be outstanding
during the period. Convertibles shares are including
in the calculation of the diluted earnings per shares,
based on the weighted average number of convertible
 shares assumed to be outstanding during the period.(x)
    
    Income Taxes:The Company is a Marshall Islands
Corporation. Pursuant to various treaties and the
United States Internal Revenue Code, the Company
believes that substantially all its operations are
exempt from income taxes in the Marshall Islands and
United States of America. The tax expense reflected in
the Companys consolidated financial statements for
the year ended December 31, 2007 was attributable to
its subsidiary in Belgium, which was subject to the
Belgium income tax regime. (Note 22). In June 2008,
Navios Holdings Belgian subsidiary received a ruling
from the Belgian tax authorities, confirming that
provided it meets certain quantitative criteria, it
would be eligible to be taxed under the tonnage tax
system (rather than the income tax regime up to 2007).
The effect of the ruling was that the deferred taxes
recognized in the balance sheet relating to Kleimar
(amounting to $57,249) were reversed through the
income statement in the second quarter of 2008.
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 The tax expense reflected in the Companys
consolidated financial statements for the year ended
December 31, 2009 was attributable to its subsidiaries
in South America, which are subject to the Argentinean
and Paraguayan income tax regime.The asset and liability method is used to account for
future income taxes. Under this method, future income
tax assets and liabilities are recognized for the
estimated future tax consequences attributable to
differences between the financial statement carrying
amounts and the tax bases of assets and liabilities.
Future income tax assets and liabilities are measured
using enacted tax rates in effect for the year in
which those temporary differences are expected to be
recovered or settled. The effect on future income tax
assets and liabilities of a change in tax rates is
recognized in income in the period that includes the
enactment date. A deferred tax asset is recognized for
temporary differences that will result in deductible
amounts in future years. Valuation allowance is
recognized if, based on the weight of available
evidence, it is more likely than not that some portion
or all of the deferred tax asset will not be realized.(y)
    
    Dividends:Dividends are recorded in the Companys
financial statements in the period in which they are
declared. At December 31, 2009, the dividend declared
relating to the third quarter of 2009 of approximately
$6.1 million was payable on January 7, 2010, and thus
it is recorded on the consolidated balance sheet as a
current liability.(z)
    
    Guarantees:The Company accounts for guarantees in
accordance with guidance on guarantors accounting and
disclosure requirements for guarantees, including
indirect guarantees of indebtedness of others. Under
this guidance, a liability for the fair value of the
obligation undertaken in issuing the guarantee is
recognized. However, this is limited to those
guarantees issued or modified after December 31, 2002.
The recognition of fair value is not required for
certain guarantees such as the parents guarantee of a
subsidiarys debt to a third party or guarantees on
product warranties. For those guarantees excluded from
the above guidance, fair value recognition provision,
financial statement disclosures of their terms are
made.(aa)
    
    Leases:Vessel leases where Navios Holdings is
regarded as the lessor are classified as either
finance leases or operating leases based on an
assessment of the terms of the lease. For charters
classified as finance type leases the minimum lease
payments are recorded as the gross investment in the
lease. The difference between the gross investment in
the lease and the sum of the present values of the two
components of the gross investment is recorded as
unearned income which is amortized to income over the
lease term as finance lease interest income to produce
a constant periodic rate of return on the net
investment in the lease.(ab)
    
    Accounting for the acquisition of Horamar:The
Company accounted for the acquisition of Horamar
Group (as described in Note 3) as a partial sale of
CNSA to the noncontrolling shareholders of Navios
Logistics, and a partial acquisition of Horamar.
Accordingly, a gain was recognized by Navios for the
portion of CNSA sold amounting to $2,702. Horamars
assets and liabilities were revalued to 100% of their
respective fair values, CNSAs assets and liabilities
were recorded at carryover basis, reflecting the
common control nature of the transaction. The
contingent shares consideration will be accounted for
when the contingency is resolved.(ac)
    
    Treasury Stock:Treasury stock is accounted for using
the cost method. Excess of the purchase price of the
treasury stock acquired, plus direct acquisition
costs over its par value is recorded in additional
paid-in capital.(ad)
    
    Trade Accounts receivable:The amount shown as
accounts receivable, trade, at each balance sheet
date, includes receivables from charterers for hire,
freight and demurrage billings and FFA
counterparties, net of a provision for doubtful
accounts. At each balance sheet date, all potentially
uncollectible accounts are assessed individually for
purposes of determining the appropriate provision for
doubtful accounts.(ae)
    
    Investment in available for sale securities:The
Company classifies its existing marketable equity
securities as available-for-sale in accordance with
guidance on accounting for certain investments in
debt and equity securities. These securities are
carried at fair market value, with unrealized gains
and losses excluded from earnings and reported
directly in stockholders equity as a component of
other comprehensive income (loss) unless an
unrealized loss is considered other-than-temporary,
in which case it is transferred to the statement of
income. Management evaluates securities for other
than temporary impairment (OTTI) on a quarterly
basis. Consideration is given to (1) the length of
time and the extent to which the fair value has been
less than cost, (2) the financial condition and
near-term prospects of the investee, and (3) the
intent and ability of the Company to retain its
investment in the investee for a period of time
sufficient to allow for any anticipated recovery in
fair value.(af)
    
    Financial Instruments and Fair Value:The Company adopted guidance on
Fair Value Measurements as of January 1, 2008. According to this
guidance, a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (level 1 measurements) and the
lowest priority to unobservable inputs (level 3 measurements). The
three levels of the fair value hierarchy under guidance on Fair
Value Measurements are described below:
 Basis of Fair Value Measurement
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 (ag)
    
    Recent Accounting Pronouncements:Noncontrolling Interests in Consolidated Financial StatementsIn December 2007, the Financial Accounting Standards Board
(FASB) issued guidance which states that accounting and
reporting for noncontrolling interests will be
recharacterized as noncontrolling interests and classified
as a component of equity. The guidance also establishes
reporting requirements that provide sufficient disclosures
that clearly identify and distinguish between the interests
of the parent and the interests of the noncontrolling
owners. Guidance applies to all entities that prepare
consolidated financial statements, except not-for-profit
organizations, but will affect only those entities that have
an outstanding noncontrolling interest in one or more
subsidiaries or that deconsolidate a subsidiary. The
guidance was effective as of January 1, 2009 and the
consolidated financial statements were updated to reflect
the reporting and disclosure requirements.Business CombinationsIn December 2007, the FASB issued guidance which establishes
principles and requirements for how an acquirer recognizes
and measures in its financial statements the identifiable
assets acquired, the liabilities assumed any non controlling
interest in the acquiree and the goodwill acquired. The
guidance also establishes disclosure requirements which will
enable users to evaluate the nature and financial effects of
the business combination. The guidance was effective for
Navios Holdings for business combinations after January 1,
2009 and it did not have a material affect on the Companys
consolidated financial statements.Fair value of Nonfinancial Assets and Nonfinancial LiabilitiesIn February 2008, the FASB issued guidance which delays the effective date of the fair value
guidance application for nonfinancial assets and nonfinancial liabilities, except for items that
are recognized or disclosed at fair value in the financial statements on a recurring basis (at
least annually). For purposes of applying this guidance, nonfinancial assets and nonfinancial
liabilities would include all assets and liabilities other that those meeting the definition of a
financial asset or financial liability as defined in guidance The Fair Value Option for Financial
Assets and Financial Liabilities. This guidance defers the effective date of relative guidance to
fiscal years beginning after November 15, 2008, and the interim periods within those fiscal years
for items within the scope of this guidance. The application of this guidance did not have a
material effect on the consolidated financial statements of the Company.Disclosures about Derivative Instruments and Hedging ActivitiesIn March 2008, the FASB issued guidance which changes the disclosure requirements for derivative
instruments and hedging activities. Entities are required to provide enhanced disclosures about (a) how
and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items
are accounted for under relative guidance and its related interpretations, and (c) how derivative
instruments and related hedged items affect an entitys financial position, financial performance, and
cash flows. This guidance is effective for financial statements issued for fiscal years and interim
periods beginning after November 15, 2008, with early application encouraged. This Statement
encourages, but does not require, comparative disclosures for earlier periods at initial adoption. The
adoption of the guidance did not have a material effect on the Companys consolidated financial
statements.Determination of the useful life of intangible assetsIn April 2008, FASB issued guidance which amends the factors that should be considered in developing
renewal or extension assumptions used to determine the useful life of a recognized intangible asset
under guidance on Goodwill and Other Intangible Assets. The intent of this guidance is to improve the
consistency between the useful life of a recognized intangible asset and the period of expected cash
flows used to measure the fair value of the asset under guidance on Business Combinations, and other
U.S. generally accepted accounting principles (GAAP). This guidance was effective for the Company for
fiscal years beginning after December 15, 2008, and interim periods within those fiscal years, and it
did not have a material effect on the consolidated financial statements of the Company.Determining whether instruments granted in share-based payment transactions are participating securitiesIn June 2008, FASB issued guidance which addresses whether instruments granted in share-based payment
transactions are participating securities prior to vesting and, therefore, need to be included in the
earnings allocation in computing earnings per share (EPS) under the two-class method described in
guidance on Earnings per Share. This guidance was effective for the Company for fiscal years beginning
after December 15, 2008, and interim periods within those fiscal years. All prior-period EPS data
presented shall be adjusted retrospectively (including interim financial statements, summaries of
earnings, and selected financial data) to conform to the provisions of this guidance. The adoption of
this guidance did not have a material effect on the Companys consolidated financial statements.
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Disclosures about Credit Derivatives and Certain GuaranteesIn September 2008, FASB issued guidance which amends guidance on Accounting for Derivative Instruments
and Hedging Activities, to require disclosures by sellers of credit derivatives, including credit
derivatives embedded in a hybrid instrument. This guidance also amends guidance on Guarantors
Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others, to require an additional disclosure about the current status of the payment/performance risk of
a guarantee. Further, this guidance clarifies the Boards intent about the effective date of guidance
on Disclosures about Derivative Instruments and Hedging Activities. This guidance applies to credit
derivatives, hybrid instruments that have embedded credit derivatives, and guarantees. This guidance
also pertains to hybrid instruments that have embedded credit derivatives (for example, credit-linked
notes). The provisions of this guidance are effective for reporting periods (annual or interim) ending
after November 15, 2008, and encourages that the amendments to be applied in periods earlier than the
effective date to facilitate comparisons at initial adoption. In periods after initial adoption, this
guidance requires comparative disclosures only for periods ending subsequent to initial adoption. The
adoption of this guidance did not have a material effect on the Companys consolidated financial
statements.Fair Value MeasurementsIn October 2008, the FASB issued guidance which clarifies the application of guidance on
Fair Value Measurements in a market that is not active and provides an example to illustrate
key considerations in determining the fair value of a financial asset when the market for
that asset is not active. This guidance applies to financial assets within the scope of
accounting pronouncements that require or permit fair value measurements. The guidance was
effective upon issuance, including prior periods for which financial statements have not
been issued. Revisions resulting from a change in the valuation technique or its application
shall be accounted for as a change in accounting estimate (Accounting changes and Error
Corrections). The disclosure provisions for a change in accounting estimate are not required
for revisions resulting from a change in valuation technique or its application. The
application of this guidance did not have a material effect on the consolidated financial
statements of the Company.Accounting for an instrument (or an embedded Feature)In November 2008, the FASB issued its final consensus on accounting for an instrument (or an
embedded Feature) with a settlement amount that is based on the stock of an entitys
consolidated subsidiary. This issue applies to freestanding financial instruments (and
embedded features) for which the payoff to the counterparty is based, in whole or in part,
on the stock of a consolidated subsidiary. This Issue applies to those instruments (and
embedded features) in the consolidated financial statements of the parent, whether the
instrument was entered into by the parent or the subsidiary. This Issue was effective for
fiscal years beginning on or after December 15, 2008 and interim periods within those fiscal
years. Early adoption is not permitted. The consensus shall be applied to outstanding
instruments as of the beginning of the fiscal year in which this issue is initially applied.
The adoption of the Issue did not have a material effect on the consolidated financial
statements of the Company.Equity Method Investment Accounting ConsiderationsIn November 2008, the FASB issued guidance on Equity Method Investment Accounting
Considerations to clarify the accounting for certain transactions and impairment
considerations involving equity method investments. The FASB and the IASB concluded a joint
effort in converging the accounting for business combinations as well as the accounting and
reporting for noncontrolling interests. The objective of that joint effort was not to
reconsider the accounting for equity method investments; however, the application of the
equity method is affected by the accounting for business combinations and the accounting for
consolidated subsidiaries, which were affected by the issuance other guidance. This guidance
was effective for fiscal years beginning on or after December 15, 2008, and interim periods
within those fiscal years, consistent with the effective dates of other relative guidance.
This guidance shall be applied prospectively. Earlier application by an entity that has
previously adopted an alternative accounting policy is not permitted. The adoption of this
guidance did not have a material effect on the consolidated financial statements of the
Company.Accounting for Transfers and Servicing of Financial Assets and Extinguishments of LiabilitiesIn December 2008, the FASB issued guidance which amends Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities to require public entities
to provide additional disclosures about transfers of financial assets. It also amends
Consolidation of Variable Interest Entities to require public enterprises, including
sponsors that have a variable interest in a variable interest entity, to provide additional
disclosures about their involvement with variable interest entities. Additionally, this
guidance requires certain disclosures to be provided by a public enterprise that is (a) a
sponsor of a qualifying
 special-purpose entity (SPE) that holds a variable interest in the
qualifying SPE but was not the transferor (nontransferor) of financial assets to the
qualifying SPE and (b) a servicer of a qualifying SPE that holds a significant variable
interest in the qualifying SPE but was not the transferor (nontransferor) of financial
assets to the qualifying SPE. This guidance is effective for the first reporting period
(interim or annual) ending after December 15, 2008, with earlier application encouraged. Its
adoption did not have a material effect on the consolidated financial statements of the
Company.
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NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Amendments to the Impairment Guidance on Recognition of Interest Income and
Impairment on Purchased Beneficial Interests and Beneficial Interests That
Continue to Be Held by a Transferor in Securitized Financial AssetsIn January 2009, the FASB issued guidance to achieve more consistent
determination of whether an other-than-temporary impairment has occurred. This
guidance also retains and emphasizes the objective of an other-than-temporary
impairment assessment and the related disclosure requirements in guidance on
Accounting for Certain Investments in Debt and Equity Securities and other
related guidance. This guidance is effective for interim and annual reporting
periods ending after December 15, 2008, and shall be applied prospectively.
Retrospective application to a prior interim or annual reporting period is not
permitted. The adoption of this guidance did not have a material effect on the
consolidated financial statements of the Company.Disclosures about Fair Value of Financial InstrumentsIn April 2009, the FASB issued guidance to require disclosures about fair value
of financial instruments for interim reporting periods of publicly traded
companies, as well as in annual financial statements. This guidance also amends
guidance on Interim Financial Reporting, to require those disclosures in
summarized financial information at interim reporting periods. An entity may
early adopt this guidance only if it also elects to early adopt guidance on
Determining Fair Value when the volume and level of activity for the asset or
liability have significantly decreased and identifying transactions that are
not orderly and Recognition and Presentation of other-than-temporary
impairments. This guidance does not require disclosures for earlier periods
presented for comparative purposes at initial adoption. In periods after
initial adoption, this guidance requires comparative disclosures only for
periods ending after initial adoption. This guidance will be effective for
interim reporting periods after June 15, 2009, with early adoption permitted
for periods ending after March 15, 2009. The adoption of this guidance did not
have a material impact on the Companys consolidated financial statements.Business CombinationsIn April 2009, the FASB issued guidance which amends and clarifies guidance on
Business Combinations, to address application issues raised by preparers,
auditors, and members of the legal profession on initial recognition and
measurement subsequent measurement and accounting, and disclosure of assets and
liabilities arising from contingencies in a business combination. This guidance
is effective for assets or liabilities arising from contingencies in business
combinations for which the acquisition date is on or after the beginning of the
first annual reporting period beginning on or after December 15, 2008. Its
adoption did not have a material effect on the consolidated financial
statements.Consolidation of Variable Interest EntitiesIn June 2009, the FASB issued guidance which amends certain requirements of
guidance on Consolidation of Variable Interest Entities, to improve financial
reporting by enterprises involved with variable interest entities and to
provide more relevant and reliable information to users of financial
statements. This guidance carries forward the scope relative guidance, with the
addition of entities previously considered qualifying special-purpose entities,
as the concept of these entities was eliminated in guidance on Accounting for
Transfers of Financial Assets. This shall be effective as of the beginning of
each reporting entitys first annual reporting period that begins after
November 15, 2009, for interim periods within that first annual reporting
period, and for interim and annual reporting periods thereafter. Earlier
application is prohibited. The Company is currently evaluating the potential
impact of the adoption of this guidance on the Companys consolidated financial
statements.The Hierarchy of Generally Accepted Accounting PrinciplesIn June 2009, the FASB issued guidance which replaces establishes the FASB
Accounting Standards Codification (Codification) as the source of authoritative
accounting principles recognized by the FASB to be applied by nongovernmental
entities in the preparation of financial statements in conformity with GAAP.
Rules and interpretive releases of the Securities and Exchange Commission
(SEC) under authority of federal securities laws are also sources of
authoritative GAAP for SEC registrants. This guidance shall be effective for
financial statements issued for interim and annual periods ending after
September 15, 2009, except for nonpublic nongovernmental entities that have not
followed the guidance included in the AICPA Technical Inquiry Service
(TIS) Section 5100, Revenue Recognition, paragraphs 3876. An entity shall
follow the disclosure requirements of relative guidance and disclose the
accounting principles that were used before and after the application of the
provisions of this guidance and the reason that applying this guidance resulted
in a change in accounting principle or correction of an error. The adoption of
this guidance did not have any material effect on the consolidated financial
statements of the Company.
 F-24




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Accounting for Transfers of Financial Assets
  Subsequent events
   NOTE 3: ACQUISITION
 Acquisition of Horamar Group
     F-25




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Adjusted purchase priceConsideration to sellers (cash), excluding contingent consideration
    
    $
    109,700Fair value of 34.5% ownership in CNSA
    
    
    26,901Total consideration given for 65.5% acquired interest in Horamar
    
    
    136,601Proforma purchase price  100%
    
    
    208,552Transaction costs
    
    
    3,461Total proforma purchase price  100%
    
    
    212,013Fair value of assets and liabilities acquiredVessel fleet
    
    
    128,838Petrosan port tangible assets
    
    
    12,557Customer relationships
    
    
    35,490Tradenames and trademarks
    
    
    10,420Favorable contracts
    
    
    3,780Favorable construction contracts
    
    
    7,600Petrosan port operating rights
    
    
    3,060Unfavorable contracts
    
    
    (3,010
    )Deferred taxes
    
    
    (27,287
    )Long term debt assumed
    
    
    (11,665
    )Noncontrolling interests in subsidiaries of Horamar
    
    
    (31,050
    )Other long term assets/liabilities
    
    
    488Net working capital, including cash retained of $5,592
    
    
    5,970Fair value of identifiable assets and liabilities of Horamar
    
    
    135,191Goodwill
    
    $
    76,822
    WeightedAverage
    
    Year ended
    
    Year endedAmortization
    
    December 31, 2009
    
    December 31, 2008Description
    
    Period (Years)
    
    Amortization
    
    AmortizationCustomer relationships
    
    
    20
    
    
    $
    (1,774
    )
    
    $
    (1,774
    )Tradenames and trademarks
    
    
    10
    
    
    $
    (1,042
    )
    
    $
    (1,042
    )Favorable contracts
    
    
    4
    
    
    $
    (827
    )
    
    $
    (827
    )Petrosan port operating rights
    
    
    20
    
    
    $
    (153
    )
    
    $
    (153
    )Favorable construction contracts
    
    
    
    
    
    $
    
    
    
    $
    Unfavorable contracts
    
    
    2
    
    
    $
    1,505
    
    
    $
    1,505
 F-26




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
  Accumulated
    
    
    TransferDescription
    
    Gross Amount
    
    
    Amortization
    
    
    to vessel cost
    
    
    Net AmountCustomer relationships
    
    $
    35,490
    
    
    $
    (3,549
    )
    
    $
    
    
    
    $
    31,941Tradenames and trademarks
    
    $
    10,420
    
    
    $
    (2,084
    )
    
    $
    
    
    
    $
    8,336Favorable contracts
    
    $
    3,780
    
    
    $
    (1,654
    )
    
    $
    
    
    
    $
    2,126Favorable construction contracts (*)
    
    $
    7,600
    
    
    $
    
    
    
    $
    (3,200
    )
    
    $
    4,400Petrosan port operating rights
    
    $
    3,060
    
    
    $
    (306
    )
    
    $
    
    
    
    $
    2,754Unfavorable contracts
    
    $
    (3,010
    )
    
    $
    3,010
    
    
    $
    
    
    
    $
    Totals
    
    $
    57,340
    
    
    $
    (4,583
    )
    
    $
    (3,200
    )
    
    $
    49,557
 
 (*)
    
    This amount is not amortized and when the vessel is delivered, will be
capitalized as part of the cost of the vessel and will be depreciated
over the remaining useful life of the vessel. (Note 9). Following the
delivery of the tanker vessel, Makenita H, $3,200 has been transferred
to the cost of the vessel as of December 31, 2009.  Year ended December 31,2007(unaudited)Gross revenues
    
    $
    807,602Net income
    
    $
    266,516Basic earnings per share
    
    $
    2.87Diluted earnings per share
    
    $
    2.68
  NOTE 4: CASH AND CASH EQUIVALENTS
  December 31,
    
    
    December 31,2009
    
    
    2008Cash on hand and at banks
    
    $
    60,316
    
    
    $
    28,976Short-term deposits and highly liquid funds
    
    
    113,617
    
    
    
    104,648Total cash and cash equivalents
    
    $
    173,933
    
    
    $
    133,624
  NOTE 5: SHORT TERM INVESTMENTS
  F-27




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 6: ACCOUNTS RECEIVABLE, NET
  December 31,
    
    
    December 31,2009
    
    
    2008Accounts receivable
    
    $
    89,084
    
    
    $
    118,123Less: Provision for doubtful receivables
    
    
    (10,580
    )
    
    
    (8,343
    )Accounts receivables, net
    
    $
    78,504
    
    
    $
    109,780
  Balance at
    
    Charges to
    
    
    
    
    
    Balance atBeginning of
    
    Costs and
    
    Amount
    
    End ofAllowance for doubtful receivables
    
    Period
    
    expenses
    
    Utilized
    
    PeriodYear ended December 31, 2007
    
    
    (6,435
    )
    
    
    
    
    
    
    760
    
    
    
    (5,675
    )Year ended December 31, 2008
    
    
    (5,675
    )
    
    
    (2,668
    )
    
    
    
    
    
    
    (8,343
    )Year ended December 31, 2009
    
    
    (8,343
    )
    
    
    (2,237
    )
    
    
    
    
    
    
    (10,580
    )
  NOTE 7: PREPAID EXPENSES AND OTHER CURRENT ASSETS
  December 31,
    
    
    December 31,2009
    
    
    2008Prepaid voyage costs
    
    $
    1,825
    
    
    $
    7,466Claim receivables, net
    
    
    3,907
    
    
    
    6,515Advances to agents
    
    
    937
    
    
    
    537Inventories
    
    
    13,716
    
    
    
    10,344Prepaid taxes
    
    
    2,526
    
    
    
    1,947Contributions from noncontrolling shareholders
    
    
    2,302
    
    
    
    Other
    
    
    2,517
    
    
    
    1,461Total prepaid expenses and other current assets
    
    $
    27,730
    
    
    $
    28,270
  NOTE 8: VESSELS, PORT TERMINAL AND OTHER FIXED ASSETS
 Accumulated
    
    
    Net BookVessels
    
    Cost
    
    
    Depreciation
    
    
    ValueBalance December 31, 2006
    
    $
    502,514
    
    
    $
    (24,202
    )
    
    $
    478,312Additions
    
    
    54,518
    
    
    
    (24,444
    )
    
    
    30,074Disposals
    
    
    (151,431
    )
    
    
    14,473
    
    
    
    (136,958
    )Transfer from investment in joint venture
    
    
    27,701
    
    
    
    
    
    
    
    27,701Balance December 31, 2007
    
    $
    433,302
    
    
    $
    (34,173
    )
    
    $
    399,129Additions
    
    
    133,932
    
    
    
    (20,368
    )
    
    
    113,564Disposals
    
    
    (28,647
    )
    
    
    219
    
    
    
    (28,428
    )Balance December 31, 2008
    
    $
    538,587
    
    
    $
    (54,322
    )
    
    $
    484,265Additions
    
    
    883,108
    
    
    
    (32,498
    )
    
    
    850,610Disposals
    
    
    (30,975
    )
    
    
    5,844
    
    
    
    (25,131
    )Balance December 31, 2009
    
    $
    1,390,720
    
    
    $
    (80,976
    )
    
    $
    1,309,744
 F-28




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Accumulated
    
    
    Net BookPort Terminals
    
    Cost
    
    
    Depreciation
    
    
    ValueBalance December 31, 2006
    
    $
    27,098
    
    
    $
    (1,232
    )
    
    $
    25,866Additions
    
    
    
    
    
    
    (917
    )
    
    
    (917
    )Balance December 31, 2007
    
    
    27,098
    
    
    
    (2,149
    )
    
    
    24,949Acquisition of subsidiary (Note 3)
    
    
    12,557
    
    
    
    
    
    
    
    12,557Additions
    
    
    4,770
    
    
    
    (1,730
    )
    
    
    3,040Balance December 31, 2008
    
    $
    44,425
    
    
    $
    (3,879
    )
    
    $
    40,546Additions
    
    
    3,045
    
    
    
    (2,244
    )
    
    
    801Transfer to port terminals
    
    
    12,659
    
    
    
    (437
    )
    
    
    12,222Balance December 31, 2009
    
    $
    60,129
    
    
    $
    (6,560
    )
    
    $
    53,569
 Accumulated
    
    
    Net BookTanker vessels, barges and push boats
    
    Cost
    
    
    Depreciation
    
    
    ValueBalance December 31, 2006
    
    $
    
    
    
    $
    
    
    
    $
    Additions
    
    
    
    
    
    
    
    
    
    
    Balance December 31, 2007
    
    
    
    
    
    
    
    
    
    
    Acquisition of subsidiary (Note 3)
    
    
    126,732
    
    
    
    
    
    
    
    126,732Additions
    
    
    93,941
    
    
    
    (13,436
    )
    
    
    80,505Balance December 31, 2008
    
    $
    220,673
    
    
    $
    (13,436
    )
    
    $
    207,237Additions
    
    
    30,829
    
    
    
    (16,049
    )
    
    
    14,780Disposals
    
    
    (392
    )
    
    
    250
    
    
    
    (142
    )Transfer to port terminals
    
    
    (12,659
    )
    
    
    437
    
    
    
    (12,222
    )Balance December 31, 2009
    
    $
    238,451
    
    
    $
    (28,798
    )
    
    $
    209,653
 Accumulated
    
    
    Net BookOther fixed assets
    
    Cost
    
    
    Depreciation
    
    
    ValueBalance December 31, 2006
    
    $
    1,908
    
    
    $
    (794
    )
    
    $
    1,114Additions/acquisition of subsidiary
    
    
    744
    
    
    
    (345
    )
    
    
    399Balance December 31, 2007
    
    $
    2,652
    
    
    $
    (1,139
    )
    
    $
    1,513Acquisition of subsidiary (Note 3)
    
    
    2,106
    
    
    
    
    
    
    
    2,106Disposals
    
    
    (258
    )
    
    
    258
    
    
    
    Additions
    
    
    2,466
    
    
    
    (1,039
    )
    
    
    1,427Balance December 31, 2008
    
    $
    6,966
    
    
    $
    (1,920
    )
    
    $
    5,046Additions
    
    
    592
    
    
    
    (734
    )
    
    
    (142
    )Disposals
    
    
    (345
    )
    
    
    216
    
    
    
    (129
    )Write off of fully depreciated assets
    
    
    (673
    )
    
    
    673
    
    
    
    Balance December 31, 2009
    
    $
    6,540
    
    
    $
    (1,765
    )
    
    $
    4,775
 Accumulated
    
    
    Net BookTotal
    
    Cost
    
    
    Depreciation
    
    
    ValueBalance December 31, 2006
    
    
    531,520
    
    
    
    (26,228
    )
    
    
    505,292Additions/acquisition of subsidiary
    
    
    55,262
    
    
    
    (25,706
    )
    
    
    29,556Disposals
    
    
    (151,431
    )
    
    
    14,473
    
    
    
    (136,958
    )Transfer from investment in joint venture
    
    
    27,701
    
    
    
    
    
    
    
    27,701Balance December 31, 2007
    
    
    463,052
    
    
    
    (37,461
    )
    
    
    425,591Acquisition of subsidiary (Note 3)
    
    
    141,395
    
    
    
    
    
    
    
    141,395Additions
    
    
    235,109
    
    
    
    (36,573
    )
    
    
    198,536Disposals
    
    
    (28,905
    )
    
    
    477
    
    
    
    (28,428
    )Balance December 31, 2008
    
    $
    810,651
    
    
    $
    (73,557
    )
    
    $
    737,094Additions
    
    
    917,574
    
    
    
    (51,525
    )
    
    
    866,049Disposals
    
    
    (31,712
    )
    
    
    6,310
    
    
    
    (25,402
    )Write off of fully depreciated assets
    
    
    (673
    )
    
    
    673
    
    
    
    Balance December 31, 2009
    
    $
    1,695,840
    
    
    $
    (118,099
    )
    
    $
    1,577,741
 F-29




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
        F-30




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
        NOTE 9: INTANGIBLE ASSETS OTHER THAN GOODWILL
  Accumulated
    
    
    Disposal/Transfer to
    
    
    Net Book ValueDecember 31, 2009
    
    Acquisition Cost
    
    
    Amortization
    
    
    vessel cost
    
    
    December 31, 2009Trade name
    
    $
    100,420
    
    
    $
    (14,320
    )
    
    $
    
    
    
    $
    86,100Port terminal operating rights
    
    
    34,060
    
    
    
    (3,678
    )
    
    
    
    
    
    
    30,382Customer relationships
    
    
    35,490
    
    
    
    (3,549
    )
    
    
    
    
    
    
    31,941Favorable construction contracts
    
    
    7,600
    
    
    
    
    
    
    
    (3,200
    )
    
    
    4,400Favorable lease terms
    
    
    255,816
    
    
    
    (103,760
    )
    
    
    (4,308
    )
    
    
    147,748Total Intangible assets
    
    
    433,386
    
    
    
    (125,307
    )
    
    
    (7,508
    )
    
    
    300,571Unfavorable lease terms
    
    
    (130,523
    )
    
    
    71,320
    
    
    
    
    
    
    
    (59,203
    )Backlog assets
    
    
    14,830
    
    
    
    (14,830
    )
    
    
    
    
    
    
    Total
    
    $
    317,693
    
    
    $
    (68,817
    )
    
    $
    (7,508
    )
    
    $
    241,368
 F-31




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Fair valuemeasurementdue toAccumulated
    
    
    Transfer to
    
    
    acquisition of
    
    
    Net Book ValueDecember 31, 2008
    
    Acquisition Cost
    
    
    Amortization
    
    
    vessel cost
    
    
    subsidiary
    
    
    December 31, 2008Trade name
    
    $
    90,000
    
    
    $
    (10,467
    )
    
    $
    
    
    
    $
    10,420
    
    
    $
    89,953Port terminal operating rights
    
    
    31,000
    
    
    
    (2,750
    )
    
    
    
    
    
    
    3,060
    
    
    
    31,310Customer relationships
    
    
    
    
    
    
    (1,774
    )
    
    
    
    
    
    
    35,490
    
    
    
    33,716Favorable construction contracts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,600
    
    
    
    7,600Favorable lease terms
    
    
    269,277
    
    
    
    (73,900
    )
    
    
    (13,858
    )
    
    
    3,780
    
    
    
    185,299Total Intangible assets
    
    
    390,277
    
    
    
    (88,891
    )
    
    
    (13,858
    )
    
    
    60,350
    
    
    
    347,878Unfavorable lease terms
    
    
    (127,513
    )
    
    
    53,839
    
    
    
    
    
    
    
    (3,010
    )
    
    
    (76,684
    )Backlog assets
    
    
    14,830
    
    
    
    (14,786
    )
    
    
    
    
    
    
    
    
    
    
    44Total
    
    $
    277,594
    
    
    $
    (49,838
    )
    
    $
    (13,858
    )
    
    $
    57,340
    
    
    $
    271,238
 Amortization
    
    
    Amortization
    
    
    AmortizationExpense
    
    
    Expense
    
    
    ExpenseYear Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007Trade name
    
    $
    (3,853
    )
    
    $
    (3,860
    )
    
    $
    (2,808
    )Port terminal operating rights
    
    
    (927
    )
    
    
    (929
    )
    
    
    (774
    )Unfavorable lease terms
    
    
    17,481
    
    
    
    22,543
    
    
    
    32,877Customer relationships
    
    
    (1,774
    )
    
    
    (1,774
    )
    
    
    Favorable lease terms
    
    
    (33,243
    )
    
    
    (34,015
    )
    
    
    (36,025
    )Backlog assets
    
    
    (44
    )
    
    
    (2,454
    )
    
    
    (5,246
    )Backlog liabilities
    
    
    
    
    
    
    
    
    
    
    5,946Total
    
    $
    (22,360
    )
    
    $
    (20,489
    )
    
    $
    (6,030
    )
  Within one
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Five YearDescription
    
    year
    
    
    Year Two
    
    
    Year Three
    
    
    Year Four
    
    
    Year Five
    
    
    AggregateTrade name
    
    $
    3,853
    
    
    $
    3,852
    
    
    $
    3,860
    
    
    $
    3,853
    
    
    $
    3,853
    
    
    $
    19,271Favorable lease terms
    
    
    20,907
    
    
    
    17,661
    
    
    
    17,672
    
    
    
    14,329
    
    
    
    12,879
    
    
    
    83,448Unfavorable lease terms
    
    
    (7,939
    )
    
    
    (6,439
    )
    
    
    (6,136
    )
    
    
    (5,131
    )
    
    
    (4,933
    )
    
    
    (30,578
    )Port terminal operating rights
    
    
    929
    
    
    
    929
    
    
    
    929
    
    
    
    929
    
    
    
    929
    
    
    
    4,645Customer relationships
    
    
    1,775
    
    
    
    1,775
    
    
    
    1,775
    
    
    
    1,775
    
    
    
    1,775
    
    
    
    8,875$
    19,525
    
    
    $
    17,778
    
    
    $
    18,100
    
    
    $
    15,755
    
    
    $
    14,503
    
    
    $
    85,661
  F-32




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 10: INVESTMENT IN AFFILIATES
 Navios Maritime Partners L.P.
       Acropolis Chartering and Shipping Inc.
  Navios Maritime Acquisition Corporation
   F-33




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
  December 31, 2009
    
    December 31, 2008Navios
    
    Navios
    
    
    
    
    
    Navios
    
    NaviosBalance Sheet
    
    Partners
    
    Acquisition
    
    Acropolis
    
    Partners
    
    Acquisition (**)
    
    AcropolisCurrent assets
    
    $
    92,579
    
    
    $
    251,636
    
    
    $
    2,067
    
    
    $
    29,058
    
    
    $
    252,258
    
    
    $
    2,262Non-current assets
    
    
    344,177
    
    
    
    
    
    
    
    35
    
    
    
    293,849
    
    
    
    
    
    
    
    39Current liabilities
    
    
    13,351
    
    
    
    501
    
    
    
    243
    
    
    
    46,401
    
    
    
    475
    
    
    
    364Non-current liabilities
    
    
    215,415
    
    
    
    8,855
    
    
    
    
    
    
    
    199,659
    
    
    
    8,855
    
    
    
    
 Year Ended
    
    Year Ended
    
    Year EndedDecember 31, 2009
    
    December 31, 2008
    
    December 31, 2007 (**)Navios
    
    Navios
    
    
    
    
    
    Navios
    
    Navios
    
    
    
    
    
    NaviosIncome Statement
    
    Partners
    
    Acquisition
    
    Acropolis
    
    Partners (*)
    
    Acquisition
    
    Acropolis
    
    Partners (*)
    
    AcropolisRevenue
    
    $
    92,643
    
    
    $
    
    
    
    $
    3,260
    
    
    $
    75,082
    
    
    $
    
    
    
    $
    8,423
    
    
    $
    50,352
    
    
    $
    5,302Net Income/(loss)
    
    
    34,322
    
    
    
    (648
    )
    
    
    2,429
    
    
    
    28,758
    
    
    
    1,047
    
    
    
    4,558
    
    
    
    19,508
    
    
    
    2,789
 
 (*)
    
    The summarized financial information of Navios Partners for the year ended December 31, 2007 include balances that were carved-out from Navios Holdings prior to the IPO on November 16, 2007.(**)
    
    Navios Acquisition was incorporated in July 2008, and therefore, no financial data for periods prior to 2008 exist. NOTE 11: ACCRUED EXPENSES
  December 31,
    
    
    December 31,2009
    
    
    2008Payroll
    
    $
    6,827
    
    
    $
    5,762Accrued interest
    
    
    13,573
    
    
    
    7,465Accrued voyage expenses
    
    
    12,979
    
    
    
    10,401Accrued running costs
    
    
    3,743
    
    
    
    2,072Provision for losses on voyages in progress
    
    
    2,048
    
    
    
    2,339Audit fees and related services
    
    
    64
    
    
    
    391Accrued taxes
    
    
    2,195
    
    
    
    2,330Professional fees
    
    
    1,651
    
    
    
    933Other accrued expenses
    
    
    4,950
    
    
    
    2,775Total accrued expenses
    
    $
    48,030
    
    
    $
    34,468
 NOTE
12: BORROWINGS
  December 31,
    
    
    December 31,2009
    
    

2008Loan Facility HSH Nordbank and Commerzbank A.G.
    
    $
    146,810
    
    
    $
    250,956Revolver Facility HSH Nordbank and Commerzbank A.G.
    
    
    23,893
    
    
    
    80,667Commerzbank A.G.
    
    
    174,055
    
    
    
    Dekabank Deutsche Girozentrale
    
    
    120,000
    
    
    
    Loan Facility Emporiki Bank ($154.0 million)
    
    
    113,870
    
    
    
    51,060Loan Facility Emporiki Bank ($75.0 million)
    
    
    61,671
    
    
    
    Loan DVB Bank
    
    
    16,240
    
    
    
    17,360Loan DNB NOR Bank
    
    
    66,500
    
    
    
    18,000Loan Marfin Egnatia Bank
    
    
    70,000
    
    
    
    70,000Revolving credit facility Marfin Egnatia Bank
    
    
    
    
    
    
    90,000Loan facility Marfin Egnatia Bank
    
    
    34,025
    
    
    
    Other long term loans
    
    
    50,393
    
    
    
    11,328Convertible debt
    
    
    33,500
    
    
    
    Unsecured bond
    
    
    20,000
    
    
    
    Ship mortgage notes
    
    
    400,000
    
    
    
    
 F-34




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 December 31,
    
    
    December 31,2009
    
    
    2008Senior notes
    
    
    300,000
    
    
    
    300,000Total borrowing
    
    
    1,630,957
    
    
    
    889,371Less: unamortized discount
    
    
    (8,251
    )
    
    
    (1,656
    )Less: current portion
    
    
    (59,804
    )
    
    
    (15,177
    )Total long term borrowings
    
    $
    1,562,902
    
    
    $
    872,538
 Senior Notes:
 Ship Mortgage Notes:
 Loan Facilities:
  HSH/Commerzbank Facility:
 F-35




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
      Emporiki Facility:
 DNB Facility:
 Marfin Revolving Facility:
 Dekabank Facility:
 Convertible Debt:
 Marfin Facility:
 F-36




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Commerzbank Facility:
 Unsecured Bond:
 Emporiki Facility:
 DVB Facility:
 Navios Logistics loans:
       F-37




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
  Year
    
    Amount in thousands of USD2010
    
    
    59,8042011
    
    
    80,9912012
    
    
    174,8312013
    
    
    60,3272014
    
    
    471,3542015 and thereafter
    
    
    783,650Total
    
    
    1,630,957
 NOTE 13: DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
 Warrants
   Interest rate risk
   December 31, 2009RoyalBank of
    
    Dexia Bank
    
    AlphaCounterparty
    
    Scotland
    
    Belgium
    
    BankNotionalUSD 10,937 declining 437 at resetting dates until maturity date
    
    USD 21,000 declining 280 at resetting dates until maturity date
    
    USD 9,500 declining 250 at resetting dates until maturity dateTerms
    
    Floor 6 months LIBOR 5.55% Cap 6 months LIBOR 7.5%
    
    3 months LIBOR for 4.525%
    
    Floor 3 months LIBOR 5.65% Cap 6 months LIBOR 7.5%Resets
    
    April and October
    
    Quarterly
    
    QuarterlyInception
    
    April 2001
    
    August 2005
    
    July 2001Maturity
    
    October 2010
    
    August 2010
    
    July 2010
 F - 38




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 December 31, 2008RoyalHSH
    
    Bank of
    
    Fortis Bank
    
    Dexia Bank
    
    Dexia Bank
    
    AlphaCounterparty
    
    Nordbank
    
    Scotland
    
    Belgium
    
    Belgium
    
    Belgium
    
    BankNotionalUSD 79,345 declining
20,796  15,330 at
resetting days until
maturity date
    
    USD 10,937 declining 437 at resetting dates
until maturity date
    
    USD 6,500 declining
131 at resetting dates
until maturity date
    
    USD 21,000 declining
280 at resetting dates
until maturity date
    
    USD 6,500 declining
131 at resetting dates
until maturity date
    
    USD 9,500 declining 250 at resetting dates
until maturity dateTerms
    
    3 months LIBOR for 5.52%
    
    Floor 6 months LIBOR 5.55% Cap 6 months LIBOR 7.5%
    
    3 months LIBOR for 3.95%
    
    3 months LIBOR for 4.525%
    
    3 months LIBOR for 3.95%
    
    Floor 3 months LIBOR 5.65% Cap 6 months LIBOR 7.5%Resets
    
    Quarterly
    
    April and October
    
    Quarterly
    
    Quarterly
    
    Quarterly
    
    QuarterlyInception
    
    December 2007
    
    April 2001
    
    May 2004
    
    August 2005
    
    May 2004
    
    July 2001Maturity
    
    September 2009
    
    October 2010
    
    April 2009
    
    August 2010
    
    April 2009
    
    July 2010
   Forward Freight Agreements (FFAs)
    F - 39




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
     December 31,
    
    
    December 31,Forward Freight Agreements (FFAs)
    
    2009
    
    
    2008Short term FFA derivative asset
    
    $
    28,194
    
    
    $
    130,844Long term FFA derivative asset
    
    
    
    
    
    
    34,379Short term FFA derivative liability
    
    
    (9,542
    )
    
    
    (126,577
    )Long term FFA derivative liability
    
    
    
    
    
    
    (23,159
    )Net fair value on FFA contracts
    
    $
    18,652
    
    
    $
    15,487NOS FFAs portion of fair value transferred to NOS derivative account (*)
    
    $
    (77
    )
    
    $
    (15,470
    )LCH FFAs portion of fair value transferred to LCH derivative account (**)
    
    $
    10,265
    
    
    $
    98,782
  December 31,
    
    
    December 31,Interest Rate Swaps
    
    2009
    
    
    2008Short term interest rate swap liability
    
    $
    (1,133
    )
    
    $
    (2,375
    )Long term interest rate swap liability
    
    
    
    
    
    
    (532
    )Net fair value of interest rate swap contract
    
    $
    (1,133
    )
    
    $
    (2,907
    )
 Reconciliation of balances
  December 31,
    
    
    December 31,2009
    
    
    2008FFAs
    
    $
    18,652
    
    
    $
    15,487NOS FFAs portion of fair value transferred to NOS derivative account (*)
    
    
    (77
    )
    
    
    (15,470
    )LCH FFAs portion of fair value transferred to LCH derivative account (**)
    
    
    10,265
    
    
    
    98,782Navios Acquisition Warrants
    
    
    8,181
    
    
    
    2,318Interest rate swaps
    
    
    (1,133
    )
    
    
    (2,907
    )Total
    
    $
    35,888
    
    
    $
    98,210
 F - 40




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Balance Sheet Values
 December 31,
    
    
    December 31,2009
    
    
    2008Total short term derivative asset
    
    $
    38,382
    
    
    $
    214,156Total long term derivative asset
    
    
    8,181
    
    
    
    36,697Total short term derivative liability
    
    
    (10,675
    )
    
    
    (128,952
    )Total long term derivative liability
    
    
    
    
    
    
    (23,691
    )Total
    
    $
    35,888
    
    
    $
    98,210
 
 (*)
    
    NOS: The Norwegian Futures and Options Clearing House (NOS Clearing ASA).(**)
    
    LCH: The London Clearing House. Fair value of financial instruments
  Cash and cash equivalents:
 Forward Contracts:
 Borrowings:
 Interest rate swaps:
 Forward freight agreements:
  December 31, 2009
    
    December 31, 2008Book Value
    
    Fair Value
    
    Book Value
    
    Fair ValueCash and cash equivalent
    
    
    173,933
    
    
    
    173,933
    
    
    
    133,624
    
    
    
    133,624Restricted cash
    
    
    107,158
    
    
    
    107,158
    
    
    
    17,858
    
    
    
    17,858Trade receivables
    
    
    78,504
    
    
    
    78,504
    
    
    
    109,780
    
    
    
    109,780Accounts payable
    
    
    (61,990
    )
    
    
    (61,990
    )
    
    
    (72,520
    )
    
    
    (72,520
    )Senior and ship mortgage
notes, net of discount
    
    
    (693,049
    )
    
    
    (714,500
    )
    
    
    (298,344
    )
    
    
    (178,488
    )Long term debt
    
    
    (929,657
    )
    
    
    (929,657
    )
    
    
    (589,371
    )
    
    
    (589,371
    )Available for sale securities
    
    
    46,314
    
    
    
    46,314
    
    
    
    22,358
    
    
    
    22,358Interest rate swaps
    
    
    (1,133
    )
    
    
    (1,133
    )
    
    
    (2,907
    )
    
    
    (2,907
    )Navios Acquisition Warrants
    
    
    8,181
    
    
    
    8,181
    
    
    
    2,318
    
    
    
    2,318Forward Freight Agreements, net
    
    
    18,652
    
    
    
    18,652
    
    
    
    15,487
    
    
    
    15,487
  Fair Value Measurements as of December 31, 2009Quoted Prices in
    
    
    Significant Other
    
    
    SignificantActive Markets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsAssets
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)FFAs
    
    $
    28,194
    
    
    $
    28,194
    
    
    $
    
    
    
    $
    Navios Acquisition Warrants
    
    
    8,181
    
    
    
    
    
    
    
    8,181
    
    
    
    Investments in available for sale securities
    
    
    46,314
    
    
    
    46,314
    
    
    
    
    
    
    
    Total
    
    $
    82,689
    
    
    $
    74,508
    
    
    $
    8,181
    
    
    $
    
 F - 41




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Fair Value Measurements as of December 31, 2009Quoted Prices in
    
    
    Significant Other
    
    
    SignificantActive Markets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsLiabilities
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)FFAs
    
    $
    9,542
    
    
    $
    9,542
    
    
    $
    
    
    
    $
    Interest rate swap contracts
    
    
    1,133
    
    
    
    
    
    
    
    1,133
    
    
    
    Total
    
    $
    10,675
    
    
    $
    9,542
    
    
    $
    1,133
    
    
    $
    
 Fair Value Measurements as of December 31, 2008Quoted Prices in
    
    
    Significant Other
    
    
    SignificantActive Markets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsAssets
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)FFAs
    
    $
    165,223
    
    
    $
    165,223
    
    
    $
    
    
    
    $
    Navios Acquisition Warrants
    
    
    2,318
    
    
    
    
    
    
    
    2,318
    
    
    
    Investments in available for sale securities
    
    
    22,358
    
    
    
    22,358
    
    
    
    
    
    
    
    Total
    
    $
    189,899
    
    
    $
    187,581
    
    
    $
    2,318
    
    
    $
    
 Fair Value Measurements as of December 31, 2008Quoted Prices in
    
    
    Significant Other
    
    
    SignificantActive Markets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsLiabilities
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)FFAs
    
    $
    149,736
    
    
    $
    149,736
    
    
    $
    
    
    
    $
    Interest rate swap contracts
    
    
    2,907
    
    
    
    
    
    
    
    2,907
    
    
    
    Total
    
    $
    152,643
    
    
    $
    149,736
    
    
    $
    2,907
    
    
    $
    
  NOTE 14: EMPLOYEE BENEFIT PLANS
 Retirement Saving Plan
  Defined Benefit Pension Plan
   F - 42




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Stock Plan
    
    
    Expected term:The simplified method was used which
includes taking the average of the weighted average time
to vesting and the contractual term of the option award.
The option awards vest over three years at 33.3%, 33.3%
and 33.4% respectively, resulting in a weighted average
time to vest of approximately 2 years. The contractual
term of the award is 7 years. Utilizing the simplified
approach formula, the derived expected term estimate for
the Companys option award is 4.5 years.
    
    Expected volatility:The historical volatility of Navios
Holdings shares was used in order to estimate the
volatility of the stock option awards. The final expected
volatility estimate (which equals the historical estimate
is 68.86% and 61.30% for 2009 and 2008, respectively)
    
    Expected dividends:The expected dividend is based on the
current dividend, our historical pattern of dividend
increases and the market price of our stock.
    
    Risk-free rate:Navios Holdings has selected to employ the
risk-free yield-to-maturity rate to match the expected
term estimated under the simplified method. The 4.5 year
yield-to-maturity rate as of the grant date is 3.64% and
1.23% for 2009 and 2008, respectively.
     F - 43




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
  Weighted
    
    Weightedaverage
    
    average
    
    Aggregateexercise
    
    remaining
    
    intrinsicShares
    
    price
    
    term
    
    valueOptionsOutstanding at January 1, 2008
    
    
    288,000
    
    
    
    
    
    
    
    
    
    
    
    1,542Granted
    
    
    571,266
    
    
    
    3.18
    
    
    
    
    
    
    
    691Outstanding as of December 31, 2008
    
    
    859,266
    
    
    
    7.73
    
    
    
    8.57
    
    
    
    2,233Vested or expected to vest at December 31, 2008
    
    
    96,000Exercisable at December 31, 2008
    
    
    96,000Outstanding at January 1, 2009
    
    
    859,266
    
    
    
    
    
    
    
    
    
    
    
    2,233Granted
    
    
    405,365
    
    
    
    5.87
    
    
    
    
    
    
    
    1,049Outstanding as of December 31, 2009
    
    
    1,264,631
    
    
    
    7.13
    
    
    
    8.02
    
    
    
    3,282Vested or expected to vest at December 31, 2009
    
    
    286,422Exercisable at December 31, 2009
    
    
    286,422Restricted stock and restricted stock unitsOutstanding as of January 1, 2008
    
    
    147,264
    
    
    
    
    
    
    
    
    
    
    
    2,467Granted
    
    
    314,016
    
    
    
    
    
    
    
    
    
    
    
    1,255Vested
    
    
    (79,858
    )
    
    
    
    
    
    
    
    
    
    
    (1,301
    )Forfeited or expired
    
    
    (1,083
    )
    
    
    
    
    
    
    
    
    
    
    (18
    )Non Vested as of December 31, 2008
    
    
    380,339
    
    
    
    
    
    
    
    1.7
    
    
    
    2,403Outstanding as of January 1, 2009
    
    
    380,339
    
    
    
    
    
    
    
    
    
    
    
    2,403Granted
    
    
    384,149
    
    
    
    
    
    
    
    
    
    
    
    2,164Vested
    
    
    (217,894
    )
    
    
    
    
    
    
    
    
    
    
    (1,719
    )Forfeited or expired
    
    
    (22,457
    )
    
    
    
    
    
    
    
    
    
    
    (127
    )Non Vested as of December 31, 2009
    
    
    524,137
    
    
    
    
    
    
    
    2.3
    
    
    
    2,721
   NOTE 15: COMMITMENTS AND CONTINGENCIES:
     F - 44




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 16: LEASES
 Chartered-in:
   Amount2010
    
    $
    114,5842011
    
    
    94,3762012
    
    
    111,5192013
    
    
    104,9642014
    
    
    87,7802015 and thereafter
    
    
    392,258$
    905,481
   Vessel
    
    Vessel Type
    
    Delivery Date
    
    Deadweight
    
    Purchase Option(1)(in metric tons)Navios TBN
    
    Kamsarmax
    
    
    08/2010
    
    
    
    81,000
    
    
    YesNavios TBN
    
    Kamsarmax
    
    
    09/2010
    
    
    
    81,000
    
    
    YesNavios TBN
    
    Kamsarmax
    
    
    11/2010
    
    
    
    81,000
    
    
    YesNavios TBN
    
    Handysize
    
    
    01/2011
    
    
    
    35,000
    
    
    YesNavios TBN
    
    Kamsarmax
    
    
    01/2011
    
    
    
    81,000
    
    
    YesNavios TBN
    
    Kamsarmax
    
    
    02/2011
    
    
    
    81,000
    
    
    YesNavios TBN
    
    Kamsarmax
    
    
    03/2011
    
    
    
    81,000
    
    
    YesNavios TBN
    
    Handysize
    
    
    05/2011
    
    
    
    35,000
    
    
    YesNavios TBN
    
    Handysize
    
    
    06/2011
    
    
    
    35,000
    
    
    Yes
 
 (1)
    
    The initial 50% purchase option on each vessel was held by Navios Holdings. Chartered-out:
  Amount2010
    
    $
    341,2522011
    
    
    329,9442012
    
    
    308,5512013
    
    
    260,3102014
    
    
    190,9822015 and thereafter
    
    
    629,426Total minimum revenue, net of commissions
    
    $
    2,060,465
  Office space:
  Amount2010
    
    $
    1,9342011
    
    
    1,6882012
    
    
    1,5512013
    
    
    1,5512014
    
    
    1,5532015 and thereafter
    
    
    6,020Total minimum lease payments
    
    $
    14,297
 F - 45




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
   NOTE 17: TRANSACTIONS WITH RELATED PARTIES
 Office rent:
  Purchase of services:
 Management fees:
 General & administrative expenses:
 Balances due to related parties:
 Balance due from affiliate:
 Omnibus agreement:
 F - 46




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Sale of Navios Apollon:
 Sale of rights of Navios Sagittarius
 Navios Bonavis
 Sale of Navios Hope:
 Navios Acquisition:
   F - 47




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 18: PREFERRED AND COMMON STOCK
                F - 48




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
        F - 49




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 19: DISPOSAL OF ASSETS
  Navios ApollonCash consideration received
    
    $
    32,000Book value of vessel Apollon sold to Navios Partners
    
    
    (25,131
    )Total gain
    
    
    6,869Deferred gain (see Note 8)
    
    
    (2,874
    )Gain recognized on sale of Navios Apollon
    
    
    
    
    
    $
    3,995Navios SagittariusCash consideration received
    
    
    34,600Book value of purchase option of Navios Sagittarius sold to Navios Partners
    
    
    (2,885
    )Book value of favorable lease term of Navios Sagittarius sold to Navios Partners
    
    
    (1,423
    )Total gain
    
    
    30,292Deferred gain (see Note 8)
    
    
    (13,510
    )Gain recognized on sale of rights of Navios Sagittarius to Navios Partners
    
    
    
    
    
    $
    16,782Gain from sale of other assets
    
    
    
    
    
    $
    8Gain on sale of assets
    
    
    
    
    
    $
    20,785
  Navios HopeCash consideration received
    
    $
    35,000Shares consideration received
    
    
    44,936Book value of vessel Navios Hope sold to Navios Partners
    
    
    (28,428
    )Total gain
    
    
    51,508Deferred gain (see Note 8)
    
    
    (26,568
    )Gain recognized on sale of Navios Hope
    
    
    
    
    
    $
    24,940ObeliksCash consideration received
    
    
    35,090Book value of vessel Obeliks sold
    
    
    (34,915
    )Gain recognized on sale of Obeliks
    
    
    
    
    
    $
    175Partial sale of subsidiarySale price
    
    
    78,000Book value of CNSA contributed to Navios Logistics
    
    
    (70,150
    )Excess of fair value sale (including noncontrolling interests)
    
    
    7,850Gain on sale of partial subsidiary
    
    
    
    
    
    $
    2,702Gain on sale of assets/partial sale of subsidiary
    
    
    
    
    
    $
    27,817
  Assets sold to Navios PartnersCash proceeds on sale of assets to Navios Partners
    
    $
    353,300Net book value of assets sold
    
    
    (185,789
    )Gain on sale of assets
    
    $
    167,511
 F - 50




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 20: SEGMENT INFORMATION
   Vessel Operations
    
    
    Logistics Businessfor the
    
    
    for the
    
    
    Total for theYear Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2009
    
    
    2009Revenue
    
    $
    459,786
    
    
    $
    138,890
    
    
    $
    598,676Gain on derivatives
    
    
    375
    
    
    
    
    
    
    
    375Interest income
    
    
    1,688
    
    
    
    11
    
    
    
    1,699Interest income from investments in finance leases
    
    
    1,330
    
    
    
    
    
    
    
    1,330Interest expense and finance cost
    
    
    (59,371
    )
    
    
    (4,247
    )
    
    
    (63,618
    )Depreciation and amortization
    
    
    (52,281
    )
    
    
    (21,604
    )
    
    
    (73,885
    )Equity in net income of affiliated companies and
joint ventures
    
    
    29,222
    
    
    
    
    
    
    
    29,222Net income
    
    
    62,583
    
    
    
    5,351
    
    
    
    67,934Total assets
    
    
    2,430,710
    
    
    
    504,472
    
    
    
    2,935,182Goodwill
    
    
    56,239
    
    
    
    91,677
    
    
    
    147,916Capital expenditures
    
    
    751,659
    
    
    
    26,799
    
    
    
    778,458Investment in affiliates
    
    $
    13,042
    
    
    $
    
    
    
    $
    13,042
 Vessel Operations
    
    
    Logistics Businessfor the
    
    
    for the
    
    
    Total for theYear Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2008
    
    
    2008Revenue
    
    $
    1,138,284
    
    
    $
    107,778
    
    
    $
    1,246,062Gain on
derivatives
    
    
    16,244
    
    
    
    
    
    
    
    16,244Interest income
    
    
    7,252
    
    
    
    501
    
    
    
    7,753Interest income from investments in finance leases
    
    
    2,185
    
    
    
    
    
    
    
    2,185Interest expense and finance cost
    
    
    (44,707
    )
    
    
    (4,421
    )
    
    
    (49,128
    )Depreciation and amortization
    
    
    (38,499
    )
    
    
    (18,563
    )
    
    
    (57,062
    )Equity in net income of affiliated companies and
joint ventures
    
    
    17,431
    
    
    
    
    
    
    
    17,431Net income
    
    
    115,100
    
    
    
    3,427
    
    
    
    118,527Total assets
    
    
    1,783,132
    
    
    
    472,246
    
    
    
    2,255,378Goodwill
    
    
    56,239
    
    
    
    91,393
    
    
    
    147,632Capital expenditures
    
    
    318,287
    
    
    
    99,212
    
    
    
    417,499Investment in affiliates
    
    $
    5,605
    
    
    $
    
    
    
    $
    5,605
 F - 51




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Port TerminalVessel Operations
    
    
    Operationsfor the
    
    
    for the
    
    
    Total for theYear Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31,
    
    
    December 31,
    
    
    December 31,2007
    
    
    2007
    
    
    2007Revenue
    
    $
    748,731
    
    
    $
    9,689
    
    
    $
    758,420Gain on
derivatives
    
    
    26,379
    
    
    
    
    
    
    
    26,379Interest income
    
    
    10,671
    
    
    
    148
    
    
    
    10,819Interest income from investments in finance leases
    
    
    3,507
    
    
    
    
    
    
    
    3,507Interest expense and finance cost
    
    
    (51,089
    )
    
    
    
    
    
    
    (51,089
    )Depreciation and amortization
    
    
    (30,033
    )
    
    
    (1,867
    )
    
    
    (31,900
    )Equity in net income of affiliated companies and joint ventures
    
    
    1,929
    
    
    
    
    
    
    
    1,929Net income
    
    
    268,038
    
    
    
    2,963
    
    
    
    271,001Total assets
    
    
    1,894,296
    
    
    
    76,708
    
    
    
    1,971,004Goodwill
    
    
    56,239
    
    
    
    14,571
    
    
    
    70,810Capital expenditures
    
    
    253,364
    
    
    
    
    
    
    
    253,364Investment in affiliates
    
    $
    1,079
    
    
    $
    
    
    
    $
    1,079
  Revenue by Geographic Region
 Year ended
    
    
    Year ended
    
    
    Year endedDecember 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007North America
    
    $
    34,366
    
    
    $
    84,543
    
    
    $
    92,474Europe
    
    
    77,976
    
    
    
    400,867
    
    
    
    280,187Asia
    
    
    322,346
    
    
    
    600,286
    
    
    
    323,352South America
    
    
    145,831
    
    
    
    107,778
    
    
    
    9,689Other
    
    
    18,157
    
    
    
    52,588
    
    
    
    52,718Total
    
    $
    598,676
    
    
    $
    1,246,062
    
    
    $
    758,420
  NOTE 21: EARNINGS PER COMMON SHARE
  F - 52




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 Year ended
    
    
    Year ended
    
    
    Year endedDecember 31,
    
    
    December 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2007Numerator:Net income attributable to Navios Holdings common
stockholders
    
    $
    67,934
    
    
    $
    118,527
    
    
    $
    271,001Less:Dividend on Preferred Stock
    
    
    (909
    )
    
    
    
    
    
    
    Interest on convertible debt and amortization of
convertible bond discount
    
    
    1,107
    
    
    
    
    
    
    
    Incremental fair value of securities offered to
induce warrants exercise
    
    
    
    
    
    
    
    
    
    
    (4,195
    )Income available to common shareholders
    
    $
    68,132
    
    
    $
    118,527
    
    
    $
    266,806Denominator:Denominator for basic net income per share attributable
to Navios Holdings stockholders  weighted average
shares
    
    
    99,924,587
    
    
    
    104,343,083
    
    
    
    92,820,943Dilutive potential common shares  weighted averageRestricted stock, restricted stock units and stock options
    
    
    533,075
    
    
    
    178,691
    
    
    
    29,613Convertible Preferred Stock and convertible debt
    
    
    4,736,997
    
    
    
    
    
    
    
    Warrants outstanding  weighted average
    
    
    
    
    
    
    6,759,586
    
    
    
    15,426,857Proceeds on exercises of warrants
    
    $
    
    
    
    $
    33,797,930
    
    
    $
    77,134,285Number of shares to be repurchased
    
    
    
    
    
    
    3,936,612
    
    
    
    8,847,880Dilutive effect of securities  warrants
    
    
    5,270,072
    
    
    
    3,001,665
    
    
    
    6,608,590Denominator for diluted net income per share attributable
to Navios Holdings stockholders  adjusted weighted
shares and assumed conversions
    
    
    105,194,659
    
    
    
    107,344,748
    
    
    
    99,429,533Basic net income per share attributable to Navios
Holdings  stockholders
    
    $
    0.68
    
    
    $
    1.14
    
    
    $
    2.87Diluted net income per share attributable to Navios
Holdings stockholders
    
    $
    0.65
    
    
    $
    1.10
    
    
    $
    2.68
 NOTE 22: INCOME TAXES
     
    
    for the financial year of putting into service: maximum depreciation 20% straight line;
    
    for each of the two following financial years: maximum depreciation of 15% straight line;
 F - 53




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 
    
    then per financial year up to the complete writing off: maximum depreciation of 10% straight line.
          F - 54




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NOTE 23: NONCONTROLLING INTEREST
  Noncontrolling interest December 31, 2007
    
    $
    Acquisition of Horamar
    
    
    96,186Noncontrolling interest in subsidiaries of Horamar
    
    
    31,050Profit and loss for the period
    
    
    1,723Noncontrolling interest December 31, 2008
    
    $
    128,959Contribution
from  noncontrolling shareholders
    
    
    2,801Acquisition of Hidronave S.A.
    
    
    480Profit and loss for the period
    
    
    3,030Noncontrolling interest December 31, 2009
    
    $
    135,270
  NOTE 24: INVESTMENT IN AVAILABLE FOR SALE SECURITIES
   NOTE 25: OTHER FINANCIAL INFORMATION
  F - 55




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonIncome Statement for the year
    
    Holdings Inc.
    
    
    Guarantor
    
    
    Guarantorended December 31, 2009
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalRevenue
    
    
    
    
    
    
    459,786
    
    
    
    138,890
    
    
    
    
    
    
    
    598,676Time charter, voyage and logistic
business expenses
    
    
    
    
    
    
    (259,798
    )
    
    
    (94,040
    )
    
    
    
    
    
    
    (353,838
    )Direct vessel expenses
    
    
    
    
    
    
    (31,454
    )
    
    
    
    
    
    
    
    
    
    
    (31,454
    )General and administrative expenses
    
    
    (16,149
    )
    
    
    (18,632
    )
    
    
    (9,116
    )
    
    
    
    
    
    
    (43,897
    )Depreciation and amortization
    
    
    (2,810
    )
    
    
    (49,471
    )
    
    
    (21,604
    )
    
    
    
    
    
    
    (73,885
    )Provision for losses on accounts
receivable
    
    
    
    
    
    
    (886
    )
    
    
    (1,351
    )
    
    
    
    
    
    
    (2,237
    )Interest income from finance leases
    
    
    
    
    
    
    1,330
    
    
    
    
    
    
    
    
    
    
    
    1,330Interest income
    
    
    184
    
    
    
    1,504
    
    
    
    11
    
    
    
    
    
    
    
    1,699Interest expenses and finance cost, net
    
    
    (53,067
    )
    
    
    (6,304
    )
    
    
    (4,247
    )
    
    
    
    
    
    
    (63,618
    )Gain/ (loss) on derivatives
    
    
    5,863
    
    
    
    (5,488
    )
    
    
    
    
    
    
    
    
    
    
    375Gain on sale of assets
    
    
    
    
    
    
    20,785
    
    
    
    
    
    
    
    
    
    
    
    20,785Other income
    
    
    6,083
    
    
    
    (281
    )
    
    
    947
    
    
    
    
    
    
    
    6,749Other expense
    
    
    (13,831
    )
    
    
    (1,856
    )
    
    
    (4,821
    )
    
    
    
    
    
    
    (20,508
    )Income before equity in net earnings
of affiliated companies
    
    
    (73,727
    )
    
    
    109,235
    
    
    
    4,669
    
    
    
    
    
    
    
    40,177Income from subsidiaries
    
    
    125,883
    
    
    
    3,502
    
    
    
    
    
    
    
    (129,385
    )
    
    
    Equity in net earnings of affiliated
companies
    
    
    15,778
    
    
    
    13,444
    
    
    
    
    
    
    
    
    
    
    
    29,222Income before taxes
    
    
    67,934
    
    
    
    126,181
    
    
    
    4,669
    
    
    
    (129,385
    )
    
    
    69,399Income taxes
    
    
    
    
    
    
    (298
    )
    
    
    1,863
    
    
    
    
    
    
    
    1,565Net income
    
    
    67,934
    
    
    
    125,883
    
    
    
    6,532
    
    
    
    (129,385
    )
    
    
    70,964Less: Net income attributable to the
noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    (3,030
    )
    
    
    
    
    
    
    (3,030
    )Net Income attributable to Navios
Holdings common stockholders
    
    
    67,934
    
    
    
    125,883
    
    
    
    3,502
    
    
    
    (129,385
    )
    
    
    67,934
 F - 56




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonIncome Statement for the year
    
    Holdings Inc.
    
    
    Guarantor
    
    
    Guarantorended December 31, 2008
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalRevenue
    
    
    
    
    
    
    1,138,284
    
    
    
    107,778
    
    
    
    
    
    
    
    1,246,062Time charter, voyage and logistic
business expenses
    
    
    
    
    
    
    (995,971
    )
    
    
    (70,268
    )
    
    
    
    
    
    
    (1,066,239
    )Direct vessel expenses
    
    
    
    
    
    
    (26,621
    )
    
    
    
    
    
    
    
    
    
    
    (26,621
    )General and administrative expenses
    
    
    (8,851
    )
    
    
    (20,151
    )
    
    
    (8,045
    )
    
    
    
    
    
    
    (37,047
    )Depreciation and amortization
    
    
    (2,818
    )
    
    
    (35,682
    )
    
    
    (18,562
    )
    
    
    
    
    
    
    (57,062
    )Provision for losses on accounts
receivable
    
    
    
    
    
    
    (2,668
    )
    
    
    
    
    
    
    
    
    
    
    (2,668
    )Interest income from finance leases
    
    
    
    
    
    
    2,185
    
    
    
    
    
    
    
    
    
    
    
    2,185Interest income
    
    
    4,073
    
    
    
    3,178
    
    
    
    502
    
    
    
    
    
    
    
    7,753Interest expenses and finance cost, net
    
    
    (23,335
    )
    
    
    (21,372
    )
    
    
    (4,421
    )
    
    
    
    
    
    
    (49,128
    )Gain/(loss) on derivatives
    
    
    (5,282
    )
    
    
    13,374
    
    
    
    
    
    
    
    
    
    
    
    8,092Gain on sale of assets/partial sale of
subsidiary
    
    
    
    
    
    
    27,817
    
    
    
    
    
    
    
    
    
    
    
    27,817Other income
    
    
    
    
    
    
    
    
    
    
    948
    
    
    
    
    
    
    
    948Other expense
    
    
    64
    
    
    
    (4,470
    )
    
    
    (2,980
    )
    
    
    
    
    
    
    (7,386
    )Income before equity in net earnings
of affiliated companies
    
    
    (36,149
    )
    
    
    77,903
    
    
    
    4,952
    
    
    
    
    
    
    
    46,706Income from subsidiaries
    
    
    140,061
    
    
    
    
    
    
    
    
    
    
    
    (140,061
    )
    
    
    Equity in net earnings of affiliated
companies
    
    
    14,615
    
    
    
    2,816
    
    
    
    
    
    
    
    
    
    
    
    17,431Income before taxes
    
    
    118,527
    
    
    
    80,719
    
    
    
    4,952
    
    
    
    (140,061
    )
    
    
    64,137Income taxes
    
    
    
    
    
    
    57,094
    
    
    
    (981
    )
    
    
    
    
    
    
    56,113Net income
    
    
    118,527
    
    
    
    137,813
    
    
    
    3,971
    
    
    
    (140,061
    )
    
    
    120,250Less: Net income attributable to the
noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    (1,723
    )
    
    
    
    
    
    
    (1,723
    )Net Income attributable to Navios
Holdings common stockholders
    
    
    118,527
    
    
    
    137,813
    
    
    
    2,248
    
    
    
    (140,061
    )
    
    
    118,527
 F - 57




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonIncome Statement for the year
    
    Holdings Inc.
    
    
    Guarantor
    
    
    Guarantorended December 31, 2007
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalRevenue
    
    
    
    
    
    
    748,731
    
    
    
    9,689
    
    
    
    
    
    
    
    758,420Time charter, voyage and port terminal
expenses
    
    
    
    
    
    
    (553,713
    )
    
    
    (3,860
    )
    
    
    
    
    
    
    (557,573
    )Direct vessel expenses
    
    
    
    
    
    
    (27,892
    )
    
    
    
    
    
    
    
    
    
    
    (27,892
    )General and administrative expenses
    
    
    (3,101
    )
    
    
    (19,450
    )
    
    
    (507
    )
    
    
    
    
    
    
    (23,058
    )Depreciation and amortization
    
    
    (2,808
    )
    
    
    (27,225
    )
    
    
    (1,867
    )
    
    
    
    
    
    
    (31,900
    )Interest income from finance leases
    
    
    
    
    
    
    3,507
    
    
    
    
    
    
    
    
    
    
    
    3,507Interest income
    
    
    6,556
    
    
    
    4,115
    
    
    
    148
    
    
    
    
    
    
    
    10,819Interest expenses and finance cost, net
    
    
    (48,537
    )
    
    
    (2,552
    )
    
    
    
    
    
    
    
    
    
    
    (51,089
    )Gain on derivatives
    
    
    
    
    
    
    25,100
    
    
    
    
    
    
    
    
    
    
    
    25,100Gain on sale of assets
    
    
    
    
    
    
    167,511
    
    
    
    
    
    
    
    
    
    
    
    167,511Other income
    
    
    40
    
    
    
    401
    
    
    
    4
    
    
    
    
    
    
    
    445Other expense
    
    
    (99
    )
    
    
    (24
    )
    
    
    (644
    )
    
    
    
    
    
    
    (767
    )Income before equity in net earnings
of affiliated companies and taxes
    
    
    (47,949
    )
    
    
    318,509
    
    
    
    2,963
    
    
    
    
    
    
    
    273,523Income from subsidiaries
    
    
    318,950
    
    
    
    
    
    
    
    
    
    
    
    (318,950
    )
    
    
    Equity in net earnings of affiliated
companies
    
    
    
    
    
    
    1,929
    
    
    
    
    
    
    
    
    
    
    
    1,929Income before taxes
    
    
    271,001
    
    
    
    320,438
    
    
    
    2,963
    
    
    
    (318,950
    )
    
    
    275,452Income tax
    
    
    
    
    
    
    (4,451
    )
    
    
    
    
    
    
    
    
    
    
    (4,451
    )Net Income
    
    
    271,001
    
    
    
    315,987
    
    
    
    2,963
    
    
    
    (318,950
    )
    
    
    271,001Less: Net income attributable to the
noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net Income attributable to Navios
Holdings common stockholders
    
    
    271,001
    
    
    
    315,987
    
    
    
    2,963
    
    
    
    (318,950
    )
    
    
    271,001
 F - 58




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonHoldings Inc.
    
    
    Guarantor
    
    
    GuarantorBalance Sheet as at December 31, 2009
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalCash and cash equivalent
    
    
    115,535
    
    
    
    31,471
    
    
    
    26,927
    
    
    
    
    
    
    
    173,933Restricted cash
    
    
    
    
    
    
    105,484
    
    
    
    1,674
    
    
    
    
    
    
    
    107,158Accounts receivable, net
    
    
    82
    
    
    
    62,844
    
    
    
    15,578
    
    
    
    
    
    
    
    78,504Intercompany receivables
    
    
    515,283
    
    
    
    94
    
    
    
    
    
    
    
    (515,377
    )
    
    
    Short term derivative assets
    
    
    
    
    
    
    38,382
    
    
    
    
    
    
    
    
    
    
    
    38,382Due from affiliate companies
    
    
    
    
    
    
    1,973
    
    
    
    
    
    
    
    
    
    
    
    1,973Prepaid expenses and other current
assets
    
    
    301
    
    
    
    13,831
    
    
    
    13,598
    
    
    
    
    
    
    
    27,730Total current assets
    
    
    631,201
    
    
    
    254,079
    
    
    
    57,777
    
    
    
    (515,377
    )
    
    
    427,680Deposit for vessel acquisitions
    
    
    
    
    
    
    344,515
    
    
    
    
    
    
    
    
    
    
    
    344,515Vessels, port terminal and other
fixed assets, net
    
    
    
    
    
    
    1,311,891
    
    
    
    265,850
    
    
    
    
    
    
    
    1,577,741Long term derivative asset
    
    
    8,181
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,181Investments in subsidiaries
    
    
    1,049,231
    
    
    
    189,313
    
    
    
    
    
    
    
    (1,238,544
    )
    
    
    Investment in available for sale
securities
    
    
    46,314
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46,314Investment in affiliates
    
    
    12,347
    
    
    
    695
    
    
    
    
    
    
    
    
    
    
    
    13,042Investment in leased assets
    
    
    
    
    
    
    18,431
    
    
    
    
    
    
    
    
    
    
    
    18,431Deferred financing costs, net
    
    
    19,870
    
    
    
    4,945
    
    
    
    870
    
    
    
    
    
    
    
    25,685Deferred dry dock and special survey
costs, net
    
    
    
    
    
    
    4,280
    
    
    
    1,673
    
    
    
    
    
    
    
    5,953Other long term assets
    
    
    
    
    
    
    9,713
    
    
    
    9,440
    
    
    
    
    
    
    
    19,153Goodwill and other intangibles
    
    
    103,622
    
    
    
    145,622
    
    
    
    199,243
    
    
    
    
    
    
    
    448,487Total non-current assets
    
    
    1,239,565
    
    
    
    2,029,405
    
    
    
    477,076
    
    
    
    (1,238,544
    )
    
    
    2,507,502Total assets
    
    
    1,870,766
    
    
    
    2,283,484
    
    
    
    534,853
    
    
    
    (1,753,921
    )
    
    
    2,935,182LIABILITIES AND EQUITYAccount payable
    
    
    
    
    
    
    44,036
    
    
    
    17,954
    
    
    
    
    
    
    
    61,990Accrued expenses and other current
liabilities
    
    
    9,257
    
    
    
    31,253
    
    
    
    7,520
    
    
    
    
    
    
    
    48,030Deferred income and cash received in
    
    
    
    
    
    
    9,529
    
    
    
    
    
    
    
    
    
    
    
    9,529advanceDividend payable
    
    
    6,052
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,052Intercompany Payables
    
    
    
    
    
    
    515,283
    
    
    
    94
    
    
    
    (515,377
    )
    
    
    Short term derivative liability
    
    
    
    
    
    
    10,675
    
    
    
    
    
    
    
    
    
    
    
    10,675Current portion of long term debt
    
    
    6,466
    
    
    
    47,509
    
    
    
    5,829
    
    
    
    
    
    
    
    59,804Total current liabilities
    
    
    21,775
    
    
    
    658,285
    
    
    
    31,397
    
    
    
    (515,377
    )
    
    
    196,080Long term debt, net of current portion
    
    
    923,511
    
    
    
    524,827
    
    
    
    114,564
    
    
    
    
    
    
    
    1,562,902Long term liabilities
    
    
    
    
    
    
    27,270
    
    
    
    6,200
    
    
    
    
    
    
    
    33,470Unfavorable lease terms
    
    
    
    
    
    
    59,203
    
    
    
    
    
    
    
    
    
    
    
    59,203Deferred tax
    
    
    
    
    
    
    
    
    
    
    22,777
    
    
    
    
    
    
    
    22,777Total non-current liabilities
    
    
    923,511
    
    
    
    611,300
    
    
    
    143,541
    
    
    
    
    
    
    
    1,678,352Total liabilities
    
    
    945,286
    
    
    
    1,269,585
    
    
    
    174,938
    
    
    
    (515,377
    )
    
    
    1,874,432Noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    135,270
    
    
    
    
    
    
    
    135,270Total stockholders equity
    
    
    925,480
    
    
    
    1,013,899
    
    
    
    224,645
    
    
    
    (1,238,544
    )
    
    
    925,480Total Liabilities and Equity
    
    
    1,870,766
    
    
    
    2,283,484
    
    
    
    534,853
    
    
    
    (1,753,921
    )
    
    
    2,935,182
 F - 59




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonHoldings Inc.
    
    
    Guarantor
    
    
    GuarantorBalance Sheet as at December 31, 2008
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalCash and cash equivalent
    
    
    9,637
    
    
    
    112,471
    
    
    
    11,516
    
    
    
    
    
    
    
    133,624Restricted cash
    
    
    
    
    
    
    16,808
    
    
    
    1,050
    
    
    
    
    
    
    
    17,858Accounts receivable, net
    
    
    
    
    
    
    95,916
    
    
    
    13,864
    
    
    
    
    
    
    
    109,780Intercompany receivables
    
    
    456,854
    
    
    
    
    
    
    
    41
    
    
    
    (456,895
    )
    
    
    Short term derivative assets
    
    
    
    
    
    
    214,156
    
    
    
    
    
    
    
    
    
    
    
    214,156Short term backlog asset
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    
    
    
    
    44Due from affiliate companies
    
    
    
    
    
    
    1,677
    
    
    
    
    
    
    
    
    
    
    
    1,677Prepaid expenses and other current
assets
    
    
    19
    
    
    
    22,210
    
    
    
    6,041
    
    
    
    
    
    
    
    28,270Total current assets
    
    
    466,510
    
    
    
    463,238
    
    
    
    32,556
    
    
    
    (456,895
    )
    
    
    505,409Deposit for vessel acquisitions
    
    
    
    
    
    
    404,096
    
    
    
    
    
    
    
    
    
    
    
    404,096Vessels, port terminal and other
fixed assets, net
    
    
    
    
    
    
    486,857
    
    
    
    250,237
    
    
    
    
    
    
    
    737,094Long term derivative asset
    
    
    2,318
    
    
    
    34,379
    
    
    
    
    
    
    
    
    
    
    
    36,697Investments in subsidiaries
    
    
    923,954
    
    
    
    185,810
    
    
    
    
    
    
    
    (1,109,764
    )
    
    
    Investment in available for sale
securities
    
    
    22,358
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,358Investment in affiliates
    
    
    4,882
    
    
    
    723
    
    
    
    
    
    
    
    
    
    
    
    5,605Investment in leased assets
    
    
    
    
    
    
    18,998
    
    
    
    
    
    
    
    
    
    
    
    18,998Deferred financing costs, net
    
    
    12,219
    
    
    
    810
    
    
    
    420
    
    
    
    
    
    
    
    13,449Deferred dry dock and special survey
costs, net
    
    
    
    
    
    
    3,440
    
    
    
    1,433
    
    
    
    
    
    
    
    4,873Other long term assets
    
    
    
    
    
    
    
    
    
    
    9,535
    
    
    
    
    
    
    
    9,535Goodwill and other intangibles
    
    
    106,433
    
    
    
    182,346
    
    
    
    206,731
    
    
    
    
    
    
    
    495,510Total non-current assets
    
    
    1,072,164
    
    
    
    1,317,459
    
    
    
    468,356
    
    
    
    (1,109,764
    )
    
    
    1,748,215Total assets
    
    
    1,538,674
    
    
    
    1,780,697
    
    
    
    500,912
    
    
    
    (1,566,659
    )
    
    
    2,253,624LIABILITIES AND EQUITYAccount payable
    
    
    
    
    
    
    62,355
    
    
    
    10,165
    
    
    
    
    
    
    
    72,520Accrued expenses and other current
liabilities
    
    
    3,791
    
    
    
    32,938
    
    
    
    9,058
    
    
    
    
    
    
    
    45,787Dividend payable
    
    
    9,096
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,096Intercompany Payables
    
    
    
    
    
    
    456,895
    
    
    
    
    
    
    
    (456,895
    )
    
    
    Short term derivative liability
    
    
    
    
    
    
    128,952
    
    
    
    
    
    
    
    
    
    
    
    128,952Current portion of long term debt
    
    
    10,920
    
    
    
    1,120
    
    
    
    3,137
    
    
    
    
    
    
    
    15,177Total current liabilities
    
    
    23,807
    
    
    
    682,260
    
    
    
    22,360
    
    
    
    (456,895
    )
    
    
    271,532Long term debt, net of current portion
    
    
    709,047
    
    
    
    85,300
    
    
    
    78,191
    
    
    
    
    
    
    
    872,538Long term liabilities
    
    
    
    
    
    
    25,646
    
    
    
    22,181
    
    
    
    
    
    
    
    47,827Long term derivative liability
    
    
    
    
    
    
    23,691
    
    
    
    
    
    
    
    
    
    
    
    23,691Unfavorable lease terms
    
    
    
    
    
    
    75,179
    
    
    
    1,505
    
    
    
    
    
    
    
    76,684Deferred tax
    
    
    
    
    
    
    
    
    
    
    26,573
    
    
    
    
    
    
    
    26,573Total non-current liabilities
    
    
    709,047
    
    
    
    209,816
    
    
    
    128,450
    
    
    
    
    
    
    
    1,047,313Total liabilities
    
    
    732,854
    
    
    
    892,076
    
    
    
    150,810
    
    
    
    (456,895
    )
    
    
    1,318,845Noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    128,959
    
    
    
    
    
    
    
    128,959Total stockholders equity
    
    
    805,820
    
    
    
    888,621
    
    
    
    221,143
    
    
    
    (1,109,764
    )
    
    
    805,820Total Liabilities and Equity
    
    
    1,538,674
    
    
    
    1,780,697
    
    
    
    500,912
    
    
    
    (1,566,659
    )
    
    
    2,253,624
 F - 60




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonCash flow statement for
    
    Holdings Inc.
    
    
    Guarantor
    
    
    Guarantorthe year ended December 31, 2009
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash provided by operating activities
    
    
    69,834
    
    
    
    122,164
    
    
    
    24,453
    
    
    
    
    
    
    
    216,451Cash flows from investing
activitiesAcquisition of subsidiaries,
net of cash acquired
    
    
    
    
    
    
    
    
    
    
    (369
    )
    
    
    
    
    
    
    (369
    )Receipts from finance lease
    
    
    
    
    
    
    567
    
    
    
    
    
    
    
    
    
    
    
    567Proceeds from sale of assets
    
    
    
    
    
    
    66,600
    
    
    
    
    
    
    
    
    
    
    
    66,600Restricted cash from investing activities
    
    
    (90,878
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (90,878
    )Acquisition of vessels
    
    
    
    
    
    
    (512,760
    )
    
    
    
    
    
    
    
    
    
    
    (512,760
    )Deposits on vessel acquisitions
    
    
    
    
    
    
    (238,810
    )
    
    
    
    
    
    
    
    
    
    
    (238,810
    )Purchase of property and
equipment
    
    
    
    
    
    
    (89
    )
    
    
    (26,799
    )
    
    
    
    
    
    
    (26,888
    )Net cash used in investing
activity
    
    
    (90,878
    )
    
    
    (684,492
    )
    
    
    (27,168
    )
    
    
    
    
    
    
    (802,538
    )Cash flows from financing
activitiesIssuance of common stockContributions from noncontrolling shareholders
    
    
    
    
    
    
    
    
    
    
    563
    
    
    
    
    
    
    
    563Proceeds from long term
borrowing, net of finance fees
    
    
    110,000
    
    
    
    488,801
    
    
    
    22,469
    
    
    
    
    
    
    
    621,270Proceeds from ship mortgage notes, net of discount
    
    
    394,412
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    394,412Principal payment on long term
debt
    
    
    (326,896
    )
    
    
    (2,884
    )
    
    
    (4,172
    )
    
    
    
    
    
    
    (333,952
    )Debt issuance costs
    
    
    (12,774
    )
    
    
    (4,589
    )
    
    
    (734
    )
    
    
    
    
    
    
    (18,097
    )Acquisition of treasury stock
    
    
    (717
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (717
    )Restricted cash
    
    
    (9,500
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,500
    )Dividends paid
    
    
    (27,583
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (27,583
    )Net cash provided by financing
activity
    
    
    126,942
    
    
    
    481,328
    
    
    
    18,126
    
    
    
    
    
    
    
    626,396Net
increase/(decrease) in cash and cash
equivalents
    
    
    105,898
    
    
    
    (81,000
    )
    
    
    15,411
    
    
    
    
    
    
    
    40,309Cash and cash equivalents,
beginning of year
    
    
    9,637
    
    
    
    112,471
    
    
    
    11,516
    
    
    
    
    
    
    
    133,624Cash and cash equivalents,
end of year
    
    
    115,535
    
    
    
    31,471
    
    
    
    26,927
    
    
    
    
    
    
    
    173,933
 F - 61




---



##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonCash flow statement for
    
    Holdings Inc.
    
    
    Guarantor
    
    
    Guarantorthe year ended December 31, 2008
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash (used in)/provided by
operating activities
    
    
    (277,609
    )
    
    
    221,002
    
    
    
    28,219
    
    
    
    
    
    
    
    (28,388
    )Cash flows from investing activitiesAcquisition of subsidiaries, net of
cash acquired
    
    
    
    
    
    
    (113,161
    )
    
    
    5,592
    
    
    
    
    
    
    
    (107,569
    )Deposits in escrow in connection
with acquisition of subsidiary
    
    
    
    
    
    
    (2,500
    )
    
    
    
    
    
    
    
    
    
    
    (2,500
    )Receipts from finance lease
    
    
    
    
    
    
    4,843
    
    
    
    
    
    
    
    
    
    
    
    4,843Proceeds from sale of assets
    
    
    
    
    
    
    70,088
    
    
    
    
    
    
    
    
    
    
    
    70,088Acquisition of vessels
    
    
    
    
    
    
    (118,814
    )
    
    
    
    
    
    
    
    
    
    
    (118,814
    )Deposits on vessel acquisitions
    
    
    
    
    
    
    (197,853
    )
    
    
    
    
    
    
    
    
    
    
    (197,853
    )Purchase of property and equipment
    
    
    
    
    
    
    (1,621
    )
    
    
    (99,211
    )
    
    
    
    
    
    
    (100,832
    )Net cash used in investing activity
    
    
    
    
    
    
    (359,018
    )
    
    
    (93,619
    )
    
    
    
    
    
    
    (452,637
    )Cash flows from financing activitiesIssuance of common stock
    
    
    6,749
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,749Proceeds from long term borrowing,
net of finance fees
    
    
    191,728
    
    
    
    51,223
    
    
    
    69,566
    
    
    
    
    
    
    
    312,517Principal payment on long term debt
    
    
    (42,793
    )
    
    
    (9,770
    )
    
    
    
    
    
    
    
    
    
    
    (52,563
    )Acquisition of treasury stock
    
    
    (51,033
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51,033
    )Dividends paid
    
    
    (28,588
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (28,588
    )Net cash provided by financing
activity
    
    
    76,063
    
    
    
    41,453
    
    
    
    69,566
    
    
    
    
    
    
    
    187,082Net (decrease)/increase in cash and
cash equivalents
    
    
    (201,546
    )
    
    
    (96,563
    )
    
    
    4,166
    
    
    
    
    
    
    
    (293,943
    )Cash and cash equivalents,
beginning of year
    
    
    211,183
    
    
    
    209,034
    
    
    
    7,350
    
    
    
    
    
    
    
    427,567Cash and cash equivalents,  end
of year
    
    
    9,637
    
    
    
    112,471
    
    
    
    11,516
    
    
    
    
    
    
    
    133,624
 F - 62




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##### Table of Contents



NAVIOS MARITIME HOLDINGS INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued)
 NaviosMaritime
    
    
    Other
    
    
    NonCash flow statement for
    
    Holdings Inc.
    
    
    Guarantor
    
    
    Guarantorthe year ended December 31, 2007
    
    Issuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
Eliminations
    
    
    
    TotalNet cash provided by/(used in)
operating activities
    
    
    88,907
    
    
    
    33,408
    
    
    
    9,427
    
    


    (3,667
    )
    
    
    
    128,075Cash flows from investing activitiesAcquisition of subsidiaries, net of
cash acquired
    
    
    (167,569
    )
    
    
    22,133
    
    
    
    
    
    
    
    
    
    
    
    (145,436
    )Proceeds from sale of assets
    
    
    
    
    
    
    353,300
    
    
    
    
    
    
    
    
    
    
    
    353,300Receipts from finance lease
    
    
    
    
    
    
    9,049
    
    
    
    
    
    
    
    
    
    
    
    9,049Acquisition of vessels
    
    
    
    
    
    
    (44,510
    )
    
    
    
    
    

    
    
    
    
    
    (44,510
    )Deposit on purchase of vessel
    
    
    
    
    
    
    (188,254
    )
    
    
    
    
    

    
    
    
    
    
    (188,254
    )Acquisition of fixed assets
    
    
    
    
    
    
    (600
    )
    
    
    
    
    

    
    
    
    
    (600
    )Net cash provided by/(used in)
investing activity
    
    
    (167,569
    )
    
    
    151,118
    
    
    
    
    
    

    
    
    
    
    (16,451
    )Cash flows from financing activitiesIssuance of common stock
    
    
    239,567
    
    
    
    
    
    
    
    
    
    

    
    
    
    
    239,567Proceeds from long term borrowing,
net of finance fees
    
    
    122,075
    
    
    
    16,611
    
    
    
    
    
    
    
    
    
    
    
    138,686Principal payment on long term debt
    
    
    (123,250
    )
    
    
    (12,695
    )
    
    
    
    
    
    
    
    
    
    
    (135,945
    )Dividends paid
    
    
    (26,023
    )
    
    
    
    
    
    
    (3,667
    )
    
    3,667
    
    
    
    
    (26,023
    )Net cash provided by/(used in)
financing activity
    
    
    212,369
    
    
    
    3,916
    
    
    
    (3,667
    )
    
    3,667
    
    
    
    
    216,285Net increase in cash and cash
equivalents
    
    
    133,707
    
    
    
    188,442
    
    
    
    5,760
    
    

    
    
    
    
    327,909Cash and cash equivalents,
beginning of year
    
    
    77,476
    
    
    
    20,592
    
    
    
    1,590
    
    

    
    
    
    
    99,658Cash and cash equivalents,  end
of year
    
    
    211,183
    
    
    
    209,034
    
    
    
    7,350
    
    

    
    
    
    
    427,567
 NOTE 26: SUBSEQUENT EVENTS
  (a)
    
    On January 8, 2010, Navios Holdings sold Navios
Hyperion to Navios Partners. The sale price of Navios
Hyperion was $63,000 and was paid entirely in cash.(b)
    
    On January 20, 2010, Navios Holdings took delivery of
Navios Antares, a 169,059 dwt, 2009 built Capesize,
built in South Korean Shipyard for an acquisition cost
of approximately $120,400. As of December 31, 2009
Navios Holdings had paid an amount of $43,080 and
$49,520 in cash and debt, respectively and $10,000 in
shares (698,812 common shares at $14.31 per share based
on the price on the acquisition date) and the remaining
amount was funded though the issuance of 1,780
Preferred Stock which have a nominal value of $17,800.(c)
    
    On January 27, 2010, Navios Holdings concluded the
agreement to acquire a new build 180,000 dwt Capesize
vessel for a nominal price of $55,500, payable $52,500
in cash and $3,000 in the form of mandatorily
convertible Preferred Stock. The vessel is under
construction with a South Korean Shipyard and scheduled
for delivery in the first quarter of 2011.(d)
    
    On February 8, 2010, Navios Partners completed its
public offering of 3,500,000 common units (plus 525,000
overallotment units). Navios Holdings currently owns
33.2% equity interest in Navios Partners, which
includes a 2% general partner interest.(e)
    
    On February 11, 2010, Navios Holdings received an
amount of $4,761 as a dividend distribution from its
affiliate Navios Partners.(f)
    
    Navios Holdings agreed to purchase Navios Vector, a
50,296 dwt, 2002 built Ultra Handymax, which is currently a long term
chartered-in vessel, for an
acquisition cost of approximately $30,000, pursuant to
a memorandum of agreement signed on March 8, 2010. On
March 12, 2010, Navios Holdings paid a 10% deposit of
$3,000 for the acquisition of this vessel.
  F - 63