Danaos Corporation · NYSE:DAC
Danaos — Q1 2025 Earnings Presentation
52 slides from Danaos's earnings presentation, May 14, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities, events or developments that the Company expect
Slide 3: Business Highlights
Business Highlights Business Model Provides Strong & ✓ Stable Cash Flow Profile Leading Diverse & High ✓ Containership Owner ✓ Quality Fleet & Operator Pioneers in Demand & Supply Digitalisation & ✓ Side Dynamics ✓ Champion of ESG Robust Capital Principles Structure & ✓ Conservative Financial Strate
Slide 4: Key Business Highlights
Key Business Highlights Leading Containership • One of the largest publicly-listed owners of modern containerships with 50+ year history in the shipping industry A Owner and Operator • One of the most efficient operators in the industry with highly competitive breakeven levels • Charter backlog of $
Slide 5: Danaos by the Numbers
Danaos by the Numbers $3.7bn $481mm Cash Contracted revenue through 2033(1) Cash and Cash Equivalents as of March 31, 2025 0.42x $825mm Net Debt / LTM 1Q 2025 Adjusted EBITDA(2) Liquidity(3) as of March 31, 2025 $717mm ~$1.9bn LTM 1Q 2025 Adjusted EBITDA Enterprise value(4) (1) Cash Contracted Reven
Slide 6: First Quarter 2025 Financial & Operational Summary
First Quarter 2025 Financial & Operational Summary Three Months ended March 31, 2025 and March 31, 2024 per segment* (Express in thousands of United States dollars, except as otherwise stated) Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Container Dry Bulk Container Dry Bulk F
Slide 7: Last Twelve Months Ended March 31 Financial & Operational Summary
Last Twelve Months Ended March 31 Financial & Operational Summary Last Twelve Months ended March 31, 2025 and March 31, 2024 per segment* (Express in thousands of United States dollars, except as otherwise stated) Last Twelve Months Ended Last Twelve Months Ended March 31, 2025 March 31, 2024 Contai
Slide 8: Fleet Summary & Strong Charter Coverage Profile
Fleet Summary & Strong Charter Coverage Profile Containership Fleet TEU Capacity (in thousands)(1) Number of vessels (1) 90 700 Existing Fleet New Buildings Containerships Drybulk vessels 600 134.2 128.2 80 10 500 10 91.4 46.4 400 7 70 300 465.5 471.5 436.6 423.7 421.3 73 74 200 71 60 69 68 100 - 50
Slide 9: First Quarter and Last Twelve Months Ended March - Highlights
First Quarter and Last Twelve Months Ended March 31 - Highlights Operating Revenues Adjusted EBITDA USDm USDm $1,200 $800.0 $1,100 $700.0 $1,000 $1,014.0 $705.2 $717.1 $900 $983.5 $600.0 $800 $500.0 $700 $600 $400.0 $500 $300.0 $400 $300 $200.0 $200 $177.2 $171.7 $253.4 $253.3 $100.0 $100 $0 $0.0 Th
Slide 10: First Quarter Highlights – Segments
First Quarter Highlights – Segments Operating Revenues per Segment Time Charter Equivalent ($/per day)(1) per Segment USDm USD $300.0 $60,000 $250.0 $236.2 $45,000 $36,565 $200.0 $150.0 $30,000 $100.0 $15,000 $50.0 $10,513 $17.1 $0.0 $0 Three Months Ended March 31, 2025 Three Months Ended March 31,
Slide 11: Substantial Containership Fleet Employment and Charter Coverage
Substantial Containership Fleet Employment and Charter Coverage(1) denotes firm charter period 1 1 denotes firm charter period 2 denotes optional period at the option of the charterer (1) On the basis of US GAAP revenue accounting and concluded charter contracts through May 12, 2025. (2) Age as of M
Slide 12: Substantial Containership Fleet Employment and Charter Coverage
Substantial Containership Fleet Employment and Charter Coverage(1) denotes firm charter period 1 1 denotes firm charter period 2 denotes optional period at the option of the charterer (1) On the basis of US GAAP revenue accounting and concluded charter contracts through May 12, 2025. (2) Age as of M
Slide 13: Substantial Containership Fleet Employment and Charter Coverage
Substantial Containership Fleet Employment and Charter Coverage(1) denotes firm charter period 1 1 denotes firm charter period 2 denotes optional period at the option of the charterer (1) On the basis of US GAAP revenue accounting and concluded charter contracts through May 12, 2025. (2) Age as of M
Slide 14: Drybulk Fleet - Summary
Drybulk Fleet - Summary No. Vessel Type DWT Built Age(1) 1 Achievement Capesize 175,966 2011 13 2 Genius Capesize 175,580 2012 12 3 Ingenuity Capesize 176,022 2011 12 4 Integrity Capesize 175,966 2010 13 5 Peace Capesize 175,858 2010 14 6 W Trader Capesize 175,879 2009 14 7 E Trader Capesize 175,886
Slide 15: Experience Senior Management
Experience Senior Management Dr. John Coustas, President & Chief Executive Officer Evangelos Chatzis, Vice President & Chief Financial Officer • CEO since 1987 • Joined Danaos in 2005 • Over 30 years of experience in • Over 30 years of experience in corporate the shipping industry finance and the sh
Slide 16: A. Leading Containership Owner and Operator
A. Leading Containership Owner and Operator
Slide 17: 50 Year Legacy of Leadership in Container Shipping
50 Year Legacy of Leadership in Container Shipping 1987 2006 2018 2020 to 2024 Dr. John Coustas steps NYSE IPO Refinancing Strong Free Cash Flow into Chief Executive role Raised $200mn generation and Deleveraging 1972 2005 2010 Incorporation in Marshall 2019 Founded by Dimitris Coustas $200mn equity
Slide 18: A Diverse & High-Quality Fleet
A Diverse & High-Quality Fleet Containership Fleet Overview(1) 5x 13,100 TEU Average Age: 12.9 years Remaining Charter Term: 2.1 years 7x 5x NBs 9,200 TEU 9,600 - 10,100 TEU Remaining Charter Term : 5.3 years Average Age: 15.7 years Remaining Charter Term: 3.3 years 5% 18% 7% 1x 6,000 TEU Average Ag
Slide 19: Charter Backlog to Leading Container Operators
Charter Backlog to Leading Container Operators Containership Charter Backlog(1) (TEU-weighted remaining duration of charter backlog) Charter backlog of 6% 3% $3.7 billion through 3% 18% to 2033(1) 5% 6% Average charter duration of 3.9 years 9% 18% (weighted by aggregate contracted charter hire) (1)
Slide 20: Track Record of Operational Excellence
Track Record of Operational Excellence Danaos' Management Practice Performance(1) vs SBI average As part of a benchmarking exercise conducted by a global management consulting firm, Management Practice Performance and Safety & Quality Performance was assessed across a number of metrics and benchmark
Slide 21: Pioneers in Digitization Supporting Danaos’ Class Leading Operational Excellence
Pioneers in Digitization Supporting Danaos’ Class Leading Operational Excellence Early innovator in utilising technology in optimising operations: 1995 2004 2015 International Safety Management Lloyd’s List Technical Innovation Award Lloyd’s List Intelligence Big Data Award Certification of its cont
Slide 22: Leading Digitization Performance
Leading Digitization Performance Danaos utilises its leading management software capability, aiding in the optimal management of its fleet Danaos Software Capability Note: based on a self-assessment of participating companies – scores are an average of the answers ticked off in the questionnaire Sou
Slide 23: Longstanding Champion of ESG Principles
Longstanding Champion of ESG Principles Danaos Management is keenly focused on maintaining a strong ESG framework for company operations Environmental Social Governance Last 3 Years Progress Advanced solutions to Code of ethics and ✓ Independent Board 72% decrease in the use of ✓ reduce emissions th
Slide 24: B. Robust Capital Structure and Conservative Financial Strategy
B. Robust Capital Structure and Conservative Financial Strategy
Slide 25: Financial Strategy
Financial Strategy Balanced Chartering Strategy • Continue to deploy assets on long-term charters to ensure cash flow visibility Supported by Continued Operational • Maintain high fleet utilization Excellence • Excess cash flow can be used for reducing leverage, for acquisition of young and modern f
Slide 26: Historical Financial Highlights
Historical Financial Highlights Revenues Adjusted EBITDA USDm USDm $1,200 $1,200 $993 $1,014 $1,014 $974 $1,000 $1,000 $851 $800 $800 $723 $717 $707 $690 $600 $600 $509 $452 $459 $447 $462 $400 $400 $310 $318 $311 $318 $200 $200 $0 $0 2017 2018 2019 2020 2021 2022 2023 2024 LTM 1Q 2017 2018 2019 202
Slide 27: Focused on Maintaining Conservative Capital Structure
Focused on Maintaining Conservative Capital Structure De-leveraging Profile Cash and Cash Equivalents(2) and Undrawn Commitments Net Debt - Adjusted EBITDA Multiple(1) USDm Decrease in Net Debt by Cash and Cash Equivalents Undrawn Commitments $2.0 billion $800 $746 $762 Net Adjusted Debt Net Debt /
Slide 28: Strong Free Cash Flow Visibility & Great Conversion to OCF
Strong Free Cash Flow Visibility & Great Conversion to OCF LTM 1Q 2025 Free Cash Flow(1) Bridge USDm Drivers of FCF Uses of FCF High utilization Capex and Investments LTM 1Q 2025 Operational efficiency Dividends FCF excludes CapEx and Shares repurchase one-time / extraordinary items $717 (
Slide 29: Financial Debt Maturity Profile
Financial Debt Maturity Profile Well-balanced repayment profile(1) USDm $300 $285.4 $277.3 $200 $118.8 $100 $28.2 $37.7 $32.4 $0 2025 2026 2027 2028 2029 2030 Credit Facilities & Unsecured Notes Breakdown of Financial Debt $780m Credit position • Corporate credit rating at BB+ and Ba1 and senior uns
Slide 30: C.1 Container Vessel Demand & Supply Side Dynamics
C.1 Container Vessel Demand & Supply Side Dynamics
Slide 31: Container Trade: Demand Levels Strong at end of 2024 Ahead of Tariff Uncertainty
Container Trade: Demand Levels Strong at end of 2024 Ahead of Tariff Uncertainty World Container Trade & GDP, 2000 – 2025F 226 Mn Teu 2024(E) World Container Trade Mn TEU % yoy 275 17.5% 250 15.0% 225 12.5% 6.3% 200 10.0% 175 7.5% 2024(E) Trade yoy Growth 150 5.0% 125 2.5% 100 0.0% 230 Mn Teu 75 -2.
Slide 32: Demand: US TEU Volumes Strong Ahead of Tariffs, Weakening Now Expected
Demand: US TEU Volumes Strong Ahead of Tariffs, Weakening Now Expected + 13.9% US Containerised Imports from Far East, 2018-24 US Inflation-Adjusted Consumer Spending by Type US Far East TEU Imports, Q1 25 vs Q1 24 Mn TEU 2.0 Durable Goods Index, 100 Non-Durable Goods = Jan-18 Services 1.8 Durable G
Slide 33: US Tariffs : Chinese US Market Share Extensive, Options to Diversify Over Time
US Tariffs : Chinese US Market Share Extensive, Options to Diversify Over Time 39% US Containerised Imports by Source, 2024 World Container Trade by Region, 2024 China Share of US TEU Imports, 2024 % Share Middle 100% East/Subcontinent, Other, 2% 8% China/Hong 90% Kong, 39% 80% 18% Latin America, 9%
Slide 34: Container Timecharter Rates: Markets So Far Insulated from Tariffs
Container Timecharter Rates: Markets So Far Insulated from Tariffs +173% 1-Year Timecharter Market Rates, January 2017 – January 2025 $k/Day 8,500 TEU Charter Rate % Ch: 200 Apr 25 vs. Avg 2010-19 180 160 +240% 140 120 6,500 TEU Charter Rate % Ch: 100 Apr 25 vs. Avg 2010-19 80 60 +409% 40 20 4,300 T
Slide 35: Supply: Orders Still Being Placed, Larger Vessel Sizes Still Dominant
Supply: Orders Still Being Placed, Larger Vessel Sizes Still Dominant 31.0% Containership Orderbook, End-April 2025 Age Profile of Fleet: Smaller Vessel Fleet Ageing Industry Orderbook-to-Fleet Mn TEU 61.3% % Share Ratio, End-Apr 25 8.0 of Fleet 100% 7.0 90% 80% 6.0 13.7% 5.0 70% Orderbook-to-Fleet
Slide 36: Supply: Deliveries Slow as Scrapping Volumes Negligible
Supply: Deliveries Slow as Scrapping Volumes Negligible 526 k TEU Containership Deliveries versus Scrapping, 2014-24 20+ Year-Old Fleets vs Segment Orderbooks Containership Deliveries, k TEU k TEU 30+ Year Fleet % Q1 25 1000 1400 100% 25-29 Year Fleet Containership Demolitions 20-24 Year Fleet 90% 8
Slide 37: Idle Capacity: Vessel Idling Remains Highly Limited in Scale
Idle Capacity: Vessel Idling Remains Highly Limited in Scale The volume of idle Idle Containership Capacity: Liner Company Owned vs Tonnage Provider Owned capacity remains at a Mn TEU % Share low level 3.0 80% 70% 2.5 0.6% 2016 71% NOO Owned 60% Idle Fleet at End-Apr 25 2.0 50% vs. Peak of 12% in Ju
Slide 38: 2,200-13,200 TEU Fleet: Workhorses of Long-Distance Container Trades
2,200-13,200 TEU Fleet: Workhorses of Long-Distance Container Trades 17.5% Danaos Fleet Segment Share of Long-Distance Trade Deployment Orderbook-to-Fleet Ratio in Danaos Fleet Segment Danaos fleet segments provide 74% of capacity Transpacific 63% of long-haul container trade volumes Transatlantic 7
Slide 39: Alliance Shake-Up Boosts Vessel Requirements, Current Landscape Faces New Risks
Alliance Shake-Up Boosts Vessel Requirements, Current Landscape Faces New Risks Recent wave of Alliance Landscape (Current Fleets and Orderbooks) consolidation between liner operators Mn TEU 10.0 Consolidation between liner 9.0 Orderbook 1 companies provides more stable 8.0 set of counterparties 10
Slide 40: C.2 Drybulk Vessel Demand & Supply Side Dynamics
C.2 Drybulk Vessel Demand & Supply Side Dynamics
Slide 41: Capesize: Markets Improve Following Slow Start to Year
Capesize: Markets Improve Following Slow Start to Year $16,633 k/Day Weekly Average Capesize Spot Rate Developments, 2021-25 Baltic C5TC, Average $ k/Day Wk1-Wk18, 2025 90 80 Range, 2015-20 2021 2022 2023 70 $23,153 k/Day 60 2024 2025 Baltic C5TC, Average 50 Wk1-Wk18, 2024 40 30 20 $11,249 k/Day 10
Slide 42: Capesize: Chinese Steel Demand Stronger For Now, Few Tariff Impacts on Capesizes
Capesize: Chinese Steel Demand Stronger For Now, Few Tariff Impacts on Capesizes China Daily Steel Output, 10-Day Average, 2021-25 Incremental Seaborne Iron Ore Imports, 2018-2025(F) + 55.0 10yr Min-Max (2012-2021) MnT/Day 2024 MnT % yoy Incremental Iron Ore Imports, 2.6 2021 Other 2023 (MnT) 2022 1
Slide 43: Capesize: Bauxite Offers Source of Tonne-Mile Expansion
Capesize: Bauxite Offers Source of Tonne-Mile Expansion Capesize Tonne-Mile Demand by Cargo, 3M 25 vs 3M 24 Capesize Annual Employment by Cargo (Mn Dwt) - 106.9 BnTM Incremental Iron Ore 2500 Coal Billions Ton-Miles 39% 3M 25 vs 24, BnTM 2004 Iron Ore 2000 61% 3M 2024 Coal 3M 2025 26% - 148.8 1500 2
Slide 44: Capesize: Deliveries See Uptick as Scrapping Remains Minimal
Capesize: Deliveries See Uptick as Scrapping Remains Minimal 8.1% Capesize Deliveries and Scrapping, 2015-2024 Age Profile of Capesize Fleet Capesize Orderbook-to- Fleet Ratio, End-Q1 2025 Mn Dwt 10 % Share 25+ Years 20-24 Years 15-19 Years Scrapping Deliveries 10-14 Years 5-9 Years 0-4 Years 8 100%
Slide 45: D. Appendix
D. Appendix <i a EI Fd
Slide 46: Adjusted Net Income
Adjusted Net Income Reconciliation of Net Income to Adjusted Net Income USD thousands LTM Three Months Ended March 31, Ended March 31, Year Ended December 31, Reconciliation of Net Income / (Loss) to Adjusted Net Income 2025 2024 2025 2024 2024 2023 2022 2021 2020 2019 2018 2017 in thousands of U.S.
Slide 47: Adjusted Net Income per segment
Adjusted Net Income per segment Reconciliation of Net Income to Adjusted Net Income per segment USD thousands Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Container Dry Bulk Container Dry Bulk Reconciliation of Net Income / (Loss) to Adjusted Net Income Vessels Vessels Other T
Slide 48: Adjusted EBITDA
Adjusted EBITDA Reconciliation of Net Income to EBITDA and Adjusted EBITDA USD thousands LTM Three Months Ended December 31, Ended December 31, Year Ended December 31, Reconciliation of Net Income / (Loss) to EBITDA and Adjusted EBITDA 2025 2024 2025 2024 2024 2023 2022 2021 2020 2019 2018 2017 in t
Slide 49: Adjusted EBITDA per segment
Adjusted EBITDA per segment Reconciliation of Net Income to EBITDA and Adjusted EBITDA per segment USD thousands Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Container Dry Bulk Container Dry Bulk Reconciliation of Net Income to Adjusted EBITDA Vessels Vessels Other Total Vesse
Slide 50: Free Cash Flow
Free Cash Flow Reconciliation of Free Cash Flow to Net Increase / (Decrease) in Cash, cash equivalents and restricted cash USD thousands LTM Three Months Ended December 31, Ended December 31, Year Ended December 31, Reconciliation of Free Cash Flow 2025 2024 2025 2024 2024 2023 2022 2021 2020 2019 i
Slide 51: Stock Performance – Danaos vs. Peers
Stock Performance – Danaos vs. Peers Since July 1, 2020 3000% 2,607% 2500% 2000% Stockholders' Return1 1500% 1000% 500% 0% -500% Danaos Costamare GSL Source: NASDAQ (1) Stockholders’ return is a rate of return over the period from July 1, 2020 to May 12, 2025, including dividend received and reinves
Slide 52: Thank You
Thank You