Danaos Corporation · NYSE:DAC
Danaos — Investor Presentation (February 2025)
52 slides from Danaos's investor presentation, February 2025
Slide 1: Investor Presentation February 2025
Investor Presentation February 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 $3.4bn $453mm Cash Contracted revenue through 2033(1) Cash and Cash Equivalents as of December 31, 2024 0.40x $807mm Net Debt / 2024 Adjusted EBITDA(2) Liquidity(3) as of December 31, 2024 $723mm ~$1.8bn 2024 Adjusted EBITDA Enterprise value(4) (1) Cash Contracted Revenue as of
Slide 6: Fourth Quarter 2024 Financial & Operational Summary
Fourth Quarter 2024 Financial & Operational Summary Three Months ended December 31, 2024 and December 31, 2023 per segment* (Express in thousands of United States dollars, except as otherwise stated) Three Months Ended Three Months Ended December 31, 2024 December 31, 2023 Container Dry Bulk Contain
Slide 7: 2024 Financial & Operational Summary
2024 Financial & Operational Summary Twelve Months ended December 31, 2024 and December 31, 2023 per segment* (Express in thousands of United States dollars, except as otherwise stated) Year Ended Year Ended December 31, 2024 December 31, 2023 Container Dry Bulk Container Dry Bulk Financial & Operat
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) 700 Existing Fleet New Buildings 90 Containerships Drybulk vessels 600 134.2 80 500 91.4 10 46.4 400 7 70 300 436.6 465.5 200 423.7 421.3 73 60 71 69 68 100 - 50 2021 2022 2023 20
Slide 9: Fourth Quarter and Twelve Months 2024 Highlights
Fourth Quarter and Twelve Months 2024 Highlights Operating Revenues Adjusted EBITDA USDm USDm $1,200 $800.0 $1,100 $1,000 $700.0 $1,014.1 $722.6 $707.0 $900 $973.6 $600.0 $800 $700 $500.0 $600 $400.0 $500 $300.0 $400 $300 $200.0 $189.7 $200 $258.2 $172.6 $249.3 $100.0 $100 $0 $0.0 Three Months Ended
Slide 10: Fourth Quarter and Twelve Months 2024 Highlights – Segments
Fourth Quarter and Twelve Months 2024 Highlights – Segments Operating Revenues per Segment Time Charter Equivalent ($/per day)(1) per Segment USDm USD $1,600.0 $60,000 $36,869 $37,572 $1,200.0 $45,000 $1,014.1 $800.0 $30,000 $937.1 $400.0 $15,000 $20,270 $258.2 $18,147 $237.5 $0.0 $20.7 $77.0 $0 Thr
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 February 7, 2025. (2) Age as
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 February 7, 2025. (2) Age as
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 February 7, 2025. (2) Age as
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: Experienced 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 29 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 2019 Founded by Dimitris Coustas Incorporation in Marshall $200mn equity
Slide 18: A Diverse & High-Quality Fleet
A Diverse & High-Quality Fleet Containership Fleet Overview(1) 5x 7x 13,100 TEU Average Age: 12.7 years NBs 9,200 TEU Remaining Charter Term: 2.3 years Remaining Charter Term : 5.0 years 5x 9,600 - 10,100 TEU Average Age: 15.5 years 2x 13% 7% Remaining Charter Term: 3.0 years NBs 6,000 TEU 7% Remain
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 8% 3% $3.4 billion through 3% 19% to 2033(1) 5% 6% Average charter duration of 3.7 years 7% 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 $974 $1,000 $1,000 $851 $800 $800 $723 $690 $707 $600 $600 $509 $452 $459 $447 $462 $400 $400 $318 $318 $310 $311 $200 $200 $0 $0 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 20
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 Cash and Cash Equivalents Undrawn Commitments Net Adjusted Debt Net Debt / Adjusted EBITDA (RH Axis) $800 $746 $3,000 8.0x 7.4x
Slide 28: Strong Free Cash Flow Visibility & Great Conversion to OCF
Strong Free Cash Flow Visibility & Great Conversion to OCF 2024 Free Cash Flow(1) Bridge USDm Drivers of FCF Uses of FCF Higher re-chartering Early repayment of debt and leases 2024 FCF High utilization Capex and Investments excludes CapEx Operational efficiency Dividends and one-time /
Slide 29: Financial Debt Maturity Profile
Financial Debt Maturity Profile Well-balanced repayment profile(1) USDm $300 $282.9 $274.9 $200 $116.4 $100 $35.2 $35.2 $0 2025 2026 2027 2028 2029 Credit Facilities & Unsecured Notes Breakdown of Financial Debt $744.5m Credit position • Corporate credit rating at BB+ and Ba1 and senior unsecured de
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
Container Trade: Demand Levels Strong at end of 2024 Ahead of Tariff Uncertainty World Container Trade & GDP, 2000 – 2025F 225 Mn Teu 2024(E) World Container Trade Mn TEU % yoy 275 17.5% 250 15.0% 225 12.5% 200 10.0% 5.8% 175 7.5% 2024(E) Trade yoy Growth 150 5.0% 125 2.5% 100 0.0% 234 Mn Teu 75 -2.
Slide 32: Red Sea Crisis: Liner Operators Avoiding Red Sea for Now
Red Sea Crisis: Liner Operators Avoiding Red Sea for Now, Freight Markets Soften + 2.9 Mn TEU Deployed Capacity Changes, Jan-25 vs Jan-24 Select Spot Container Freight Rates, Ex-Far East New Vessel Deliveries, Mn TEU $/TEU $/FEU Jan-24 to Jan-25 3.5 8,000 16,000 Far East-North Europe 3.0 +2.86 7,000
Slide 33: Demand: US TEU Volumes Strong as New China Tariffs Introduced
Demand: US TEU Volumes Strong as New China Tariffs Introduced + 13.9% US Containerised Imports from Far East, 2018-24 US Inflation-Adjusted Consumer Spending by Type US Far East TEU Imports, Index, Q4 24 vs Q4 23 Mn TEU 100 = 2.0 160 Jan-18 1.8 140 + 16.8% 1.6 US Far East TEU Imports, 1.4 120 12M 24
Slide 34: Container Timecharter Rates: Markets Stable with Vessel Availability Squeezed
Container Timecharter Rates: Markets Stable with Vessel Availability Squeezed +167% 1-Year Timecharter Market Rates, January 2017 – January 2025 8,500 TEU Charter Rate % Ch: $k/Day Jan 25 vs. Avg 2010-19 200 180 +244% 160 140 6,500 TEU Charter Rate % Ch: 120 Jan 25 vs. Avg 2010-19 100 80 +410% 6040
Slide 35: Supply: Orderbook Stable at 27.5% of Fleet
Supply: Orderbook Stable at 27.5% of Fleet, Skewed to Largest Fleet Segments 27.5% Containership Orderbook, End-December 2024 Age Profile of Fleet: Smaller Vessel Fleet Ageing Industry Orderbook-to-Fleet % Share Mn TEU 53.2 Ratio, End-Dec 24 % of 100% 7.0 Fleet 90% 6.0 80% 11.7% 5.0 70% Orderbook-to
Slide 36: Supply: Deliveries Slow as Scrapping Volumes Negligible
Supply: Deliveries Slow as Scrapping Volumes Negligible 577 k TEU Containership Deliveries versus Scrapping, 2014-24 20+ Year-Old Fleets vs Segment Orderbooks Containership Deliveries, k TEU % Q4 24 k TEU 1000 1400 30+ Year Fleet 100% Containership Demolitions Containership Deliveries 25-29 Year Fle
Slide 37: Idle Capacity: Vessel Idling Highly Limited in Scale
Idle Capacity: Vessel Idling Highly Limited in Scale The volume of idle Idle Containership Capacity: Liner Company Owned vs Tonnage Provider Owned capacity % Share Mn TEU remains at a low level 3.0 80% 70% 2.5 0.6% 2016 71% NOO Owned 60% Idle Fleet at End-Jan 25 2.0 50% vs. Peak of 12% in Jun 20 1.5
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 15.3% 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: Industry to Remain Consolidated as Alliance Patterns Face Shake-Up in 2025
Industry to Remain Consolidated as Alliance Patterns Face Shake-Up in 2025 Recent wave of Announced Changes to Alliances (Current Fleets and Orderbooks) consolidation between liner Mn TEU operators 9.0 Consolidation between liner 8.0 1 companies provides more stable Orderbook set of counterparties 9
Slide 40: C.2 Drybulk Vessel Demand & Supply Side Dynamics
C.2 Drybulk Vessel Demand & Supply Side Dynamics
Slide 41: Capesize: Markets Begin 2025 on Slow Footing
Capesize: Markets Begin 2025 on Slow Footing $9,715 k/Day Weekly Average Capesize Spot Rate Developments, 2021-25 Baltic C5TC, Average $ k/Day Wk1-Wk6, 2025 90 80 Range, 2015-20 2021 2022 2023 70 $20,315 k/Day 2024 2025 60 Baltic C5TC, Average Wk1-Wk6, 2024 50 40 30 $7,780 k/Day 20 Baltic C5TC, Aver
Slide 42: Capesize: Chinese Steel Demand Remains Soft, Few Tariff Impacts
Capesize: Chinese Steel Demand Remains Soft, Few Tariff Impacts on Capesizes China Daily Steel Output, 10-Day Average, 2021-25 Incremental Seaborne Iron Ore Imports, 2018-2025(F) + 77.9 10yr Min-Max MnT Western Europe Other % yoy MnT/Day Incremental Iron Ore Imports, (2012-2021) Taiwan 2023 (MnT) 2.
Slide 43: Capesize: Iron Ore and Bauxite Drive Tonne-Mile Expansion
Capesize: Iron Ore and Bauxite Drive Tonne-Mile Expansion Capesize Tonne-Mile Demand by Cargo, 12M 24 vs 12M 23 Capesize Annual Employment by Cargo (Mn Dwt) + 108.7 Incremental Iron Ore BnTm Ton-Miles 8000 Coal 12M 24 vs 23, BnTM 2003 40% Iron 7000 12M 2023 Ore 60% 6000 12M 2024 + 89.4 5000 2013 Coa
Slide 44: Capesize: Moderate Fleet Growth Expected to Remain in Place
Capesize: Moderate Fleet Growth Expected to Remain in Place 7.9% Capesize Deliveries and Scrapping, 2015-2024 Age Profile of Capesize Fleet Capesize Orderbook-to- Fleet Ratio, End-Q4 2024 Mn Dwt % 25+ Years 20-24 Years 15-19 Years 10 Scrapping Deliveries 10-14 Years 5-9 Years 0-4 Years 100 8 12.8% 9
Slide 45: D. Appendix
D. Appendix <i a EI Fa
Slide 46: Adjusted Net Income
Adjusted Net Income Reconciliation of Net Income to Adjusted Net Income USD thousands Three Months Ended December 31, Year Ended December 31, Reconciliation of Net Income / (Loss) to Adjusted Net Income 2024 2023 2024 2023 2022 2021 2020 2019 2018 2017 in thousands of U.S. dollars Net Income / (Loss
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 December 31, 2024 December 31, 2023 Container Dry Bulk Container Dry Bulk Reconciliation of Net Income / (Loss) to Adjusted Net Income Vessels Vessels O
Slide 48: Adjusted EBITDA
Adjusted EBITDA Reconciliation of Net Income to EBITDA and Adjusted EBITDA USD thousands Three Months Ended December 31, Year Ended December 31, Reconciliation of Net Income / (Loss) to EBITDA and Adjusted EBITDA 2024 2023 2024 2023 2022 2021 2020 2019 2018 2017 in thousands of U.S. dollars Net Inco
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 December 31, 2024 December 31, 2023 Container Dry Bulk Container Dry Bulk Reconciliation of Net Income to Adjusted EBITDA Vessels Vessels Other Total
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 Three Months Ended December 31, Year Ended December 31, Reconciliation of Free Cash Flow 2024 2023 2024 2023 2022 2021 2020 2019 in thousands of U.S. dollars Adjus
Slide 51: Stock Performance – Danaos vs. Peers
Stock Performance – Danaos vs. Peers Since July 1, 2020 3000% 2,365% 2500% 2000% Stockholders' Return1 1500% 1000% 500% 0% -500% Jul 2020 Jan 2021 Jul 2021 Jan 2022 Jul 2022 Jan 2023 Jul 2023 Jan 2024 Jul 2024 Jan 2025 Danaos Costamare GSL Source: NASDAQ (1) Stockholders’ return is a rate of return
Slide 52: Thank You
Thank You