Danaos Corporation · NYSE:DAC
Danaos — Investor Presentation (December 2018)
24 slides from Danaos's investor presentation, December 2018
Slide 1: Investor Presentation
Danaos Corporation | December 2018 World-Class Shipping, Leading-Edge Expertise Investor Presentation
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 Overview
Business Overview DISCIPLINED BUSINESS MODEL • One of the largest publicly-listed owners of modern containerships • Long-term charters and relationships with the world’s leading liner companies promote free cash flow generation and limit market risk • Steady deleveraging to return value to sharehold
Slide 4: Diverse, High-Quality Fleet Serving Blue-Chip Customers
Diverse, High-Quality Fleet Serving Blue-Chip Customers Fleet Overview1 Counterparty Concentration by TEU 11x Others 2,200 – 2,600 TEU 9x 13% 8,500 – 9,600 TEU 27% 7% 8x 3,400 TEU 3x 8% 10,100 TEU 11% 10x 19% 4,300 – 5,500 TEU 15% 5x 9x 13,100 TEU 6,400 – 6,500 TEU 5.1 years Revenue-weighted Avg. Re
Slide 5: Contracted Revenues of $1.6 Billion Through 2028
Contracted Revenues of $1.6 Billion Through 2028 Contracted Revenue by Year mm $ by Asset Class $359 $347 $319 $278 $173 $116 2019 2020 2021 2022 2023 2024+ 13,000 10,000 8,500-9,500 6,400-6,500 4,300-5,500 3,500 2,200-2,600 Revenue-Weighted Charter Coverage(1) 84% 74% 69% 61% 39% 5% 2019 2020 2021
Slide 6: Substantial Fleet Employment and Coverage
Substantial Fleet Employment and Coverage Charterer Age1 Vessel Total Charter Revenue Contribution 6.6 Hyundai Honour 6.6 Hyundai Respect 32.9% 6.4 Maersk Enping 5x 6.3 Maersk Exeter 13,100 TEU 6.3 MSC Ambition 3.9% 7.6 Express Berlin 7.5 Express Rome 7.4 Express Athens 3x 14.1 Europe 10,100 TEU 13.
Slide 7: Substantial Fleet Employment and Coverage (Cont’d)
Substantial Fleet Employment and Coverage (Cont’d) Charterer Age1 Vessel Total Charter Revenue Contribution 14.6 ANL Tongala 14.4 Derby D 11.1 YM Seattle 4.1% 10.8 YM Vancouver 10.2 Zim Rio Grande 10.0 Zim Sao Paolo 10x 9.9 Zim Kingston 4,300 – 5,500 TEU 9.7 Zim Monaco 9.5 Zim Dalian 9.3 Zim Luanda
Slide 8: Recent Refinancing Highly Beneficial
Recent Refinancing Highly Beneficial Timeline of Key Recent Events August 2018: Closing of comprehensive debt refinancing; August 2016: December 2016: Reduced debt by ~$570mm, extended maturities to Hanjin declares bankruptcy, Recorded impairment charge of $415mm on 25 December 2023 and issued new s
Slide 9: Experienced Senior Management
Experienced Senior Management Dr. John Coustas Iraklis Prokopakis Evangelos Chatzis Dimitris Vastarouchas Senior Vice President, Technical Director & President & CEO CFO Treasurer & COO Deputy COO • CEO since 1987 • Joined Danaos in 1998 • Joined Danaos in 2005 • Danaos Technical Manager • Over 30 y
Slide 10: Industry Overview
Industry Overview
Slide 11: Global Macroeconomic Trends & Container Trade
Global Macroeconomic Trends & Container Trade World macroeconomic conditions appear to remain Global Annual GDP Growth 8% broadly supportive of continued global container trade 6 expansion. 4 % y-o-y Global GDP growth was relatively healthy in 2017 2 and 2018, at 3.7% in each year. 0 (2) GDP f
Slide 12: Container Trade Market Share & Growth
Container Trade Market Share & Growth Container Trade By Trade Lane 2018E Selected Container Trade Lane Volume Growth TEU, % YoY 2.9% FE-Eur w/b 4.5% 1.7% Mainlane, 4.6% 28% T/P e/b 4.5% 5.1% 2.2% Intra-Regional, Transatl 7.2% 41% 6.9% 1 2.2% ME E/W 2.6% (0.8%) 201mm 9.7% 1 TEU ISC E/W 5.9% 5.7% (2.
Slide 13: Geographic Deployment Favoring Certain Size Vessels
Geographic Deployment Favoring Certain Size Vessels Capacity Deployment By Route Route Deployment By Size % TEU % TEU 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% <3k TEU 3-6k TEU 6-8k TEU 8-12k TEU 12-15k TEU 15k+ TEU Mainlane E-W Non-Mainlane E-W North-South Intra-Regional Mainlane E-W Non-Main
Slide 14: Containership Orderbook & Vessel Supply
Containership Orderbook & Vessel Supply Overall, the containership orderbook constituted 412 units Containership Orderbook, By Scheduled Delivery Year of 2.9m TEU at the start of November 2018, equivalent to TEU, mm 1.25 a historically limited 13% of the fleet. Around 58% of the boxship capacity c
Slide 15: Containership Charter Rate Improving from Recent Lows
Containership Charter Rate Improving from Recent Lows 9,000 TEU gls Containership 3-yr TC Rate1 6,800 TEU Containership 3-yr TC Rate $/day, thousands $/day, thousands 45 45 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
Slide 16: Containership Asset Values Improving from Recent Lows
Containership Asset Values Improving from Recent Lows 8,800 TEU Containership 5 Year Old Secondhand Price 6,600 TEU Containership 5 Year Old Secondhand Price mm $ mm $ 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-08
Slide 17: Financial Overview
Financial Overview
Slide 18: Historical Financials
Historical Financials Revenue Adjusted EBITDA mm $ mm $ $589 $588 $568 $552 $498 $452 $457 $432 $434 $418 $404 $351 $310 $318 2012 2013 2014 2015 2016 2017 LTM 2012 2013 2014 2015 2016 2017 LTM Net Leverage Adjusted Net Income $159 7.3x 7.3x 7.0x 7.2x 6.9x $141 6.5x $126 $115 5.1x $60 $60 $54 2012 2
Slide 19: Third Quarter 2018 Earnings
Third Quarter 2018 Earnings Summary of Results mm $, expect per share figures Nine months ended September 30th, Three months ended September 30th, Last Twelve 2018 2017 % yoy 2018 2017 % yoy Months Operating Revenue $343.1 $337.6 1.6% $117.8 $113.6 3.7% $457.3 1 Adjusted EBITDA 237.7 230.4 3.2 82.7
Slide 20: Danaos Capital Structure as of September 30, 2018
Danaos Capital Structure as of September 30, 2018 Capitalization Refinancing Pro-forma for Actual September 30, Adjustments 1 mm $ Cash Actual June 30, 2018 $75 $10 refinancing $85 2018 $80 Debt: Royal Bank of Scotland 655 (179) 476 476 1 HSH Nordbank, Piraeus Bank, Aegean Baltic Bank 634 (251) 383
Slide 21: Appendix
Appendix
Slide 22: Fleet Overview
Fleet Overview Vessel Name Size (TEU) Built Age Vessel Name Size (TEU) Built Age Hyundai Honour 13,100 2012 6.8 ANL Tongala 4,253 2004 14.7 Hyundai Respect 13,100 2012 6.7 Derby D 4,253 2004 14.6 Maersk Enping 13,100 2012 6.6 YM Seattle 4,253 2007 11.2 Maersk Exeter 13,100 2012 6.5 YM Vancouver 4,25
Slide 23: Adjusted EBITDA
Adjusted EBITDA Reconciliation of Net Income to EBITDA and Adjusted EBITDA September 30, 2018 Nine Months Nine Months Three Months Three Months Last Twelve Months ended ended ended ended ended ($ In thousands) September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 September 30,
Slide 24: Adjusted Net Income
Adjusted Net Income Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share September 30, 2018 Nine Months Nine Months Three Months Three Months Last Twelve Months ended ended ended ended ended ($ In Thousands, except per share items) September 30, 2018 September 30, 2017