Investor Presentation

May 2024

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 expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the outlook for fleet utilization and shipping rates, general industry conditions including bidding activity, future operating results of the Company's vessels, future operating revenues and cash flows, capital expenditures, vessel market values, asset sales, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include any resurgence of COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies, high inflation and high interest rate environment, geopolitical conflicts, general market conditions, including charter rates and vessel values, counterparty performance under existing charters, changes in operating expenses, ability to obtain financing and comply with covenants in financing arrangements, actions taken by regulatory authorities, potential liability from litigation and international political conditions. Danaos Corporation is listed on the New York Stock Exchange under the ticker symbol "DAC". Before you invest, you should also read the documents Danaos Corporation has filed with the SEC for more complete information about the company. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov or via www.danaos.com

Readers of this presentation should review our Annual Report on Form 20-F filed with the SEC on February 29, 2024, including the section entitled "Key Information" and "Risk Factors", and our other filings with the SEC for a discussion of factors and circumstances that could affect our future financial results and our ability to realize the expectations stated herein.

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow, Time Charter Equivalent Revenues and Time Charter Equivalent $/per day may be included in our presentations. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow, Time Charter Equivalent Revenues and Time Charter Equivalent $/per day are presented because they are used by management and certain investors to measure a company's financial performance and underlying trends as they exclude certain items impacting overall comparability. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow, Time Charter Equivalent Revenues and Time Charter Equivalent $/per day are "non-GAAP financial measures" and should not be considered a substitute for net income, cash flow from operating activities and other operations, cash flow statement data prepared or operating revenues in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. Reconciliations to GAAP measures are included in the Appendix to this presentation.

Certain shipping industry information, statistics and charts contained herein have been derived from industry sources. You are hereby advised that such information, statistics and charts have not been prepared specifically for inclusion in this presentation and the Company has not undertaken any independent investigation to confirm the accuracy or completeness of such information.

Business Highlights

Business Model

✓

Provides Strong &

Stable Cash Flow

Leading

Profile

  • Containership Owner
    • Operator

✓

Demand & Supply

Side Dynamics

Robust Capital

✓

Structure &

Conservative

Financial Strategy

  • Diverse & High
    Quality Fleet

Pioneers in

  • Digitalisation &
    Champion of ESG
    Principles

1

Key Business Highlights

A

Leading Containership

Owner and Operator

B

Business Model Provides

Strong and Stable Cash

Flow Profile

C

Diverse and High Quality

Fleet

Pioneers in Digitization &

D

Longstanding Champion

of ESG Principles

Healthy and Robust

E

Capital Structure and

Conservative Financial

Strategy

F

Demand & Supply Side

Dynamics

  • One of the largest publicly-listedowners of modern containerships with 50 year history in the shipping industry
  • One of the most efficient operators in the industry with highly competitive breakeven levels
  • Charter backlog of $2.5 billion through to 2028(1) with world leading liner companies provides good cash flow visibility
  • We have now secured multi-yearchartering agreements for all of our 14 newbuildings
  • Strong operating days contract coverage of 98.5% for 2024 and 69.4% for 2025 limits downside risk and provides solid contracted income base
  • Containership vessel ownership across all core segments from 2,100 TEU to 13,100 TEU to meet diverse set of customer needs
  • The Company has recently re-enteredthe dry bulk segment with the acquisition of 7 Capesize bulk carriers, while it has entered into agreements to acquire a further 3 Capesize vessels expected to join our fleet within Q2 and Q3 2024
  • Containership vessel orderbook consists of 14 new methanol fuel ready vessels with an aggregate capacity of 107,946 TEU. All our newbuildings are designed with the latest eco characteristics and in accordance with IMO Tier III emissions and EEDI Phase III standards. During April & May 2024 we have taken delivery of the first 2 vessels
  • A leader in ship management innovation, through the award-winningWAVES data analytics platform
  • Danaos met the IMO 2030 carbon intensity targets 11 years ahead of requirements in 2019 and continues to meet the target with a 48.5% reduction in CO2 emissions per ton miles for year 2023
  • Net Debt / LTM Adjusted EBITDA ratio of 0.19x as of March 31, 2024
  • In March 2024, we entered into a syndicated loan facility agreement for an amount of up to $450 million, to finance all 8 newbuilding containerships with deliveries in 2024 and 2025
  • We have repurchased 1,671,059 shares in the open market for $104.4 million since inception of our $200 million authorized share repurchase program announced in June 2022, as amended on November 10, 2023
  • Following the all-stock merger of Eagle Bulk Shipping Inc. ("EGLE") with Star Bulk Carriers Corp. ("SBLK") completed on
    April 9, 2024, we currently own 4,070,214 shares of common stock of SBLK
  • Charter market remains strong with charter rates across all vessels still above historical averages for period of up to 3 years
  • The current order-book, of about 22.4% of TEU capacity with deliveries through 2027, is expected to be mitigated by reduction in the average service speed of the global fleet due to environmental regulations already in effect

(1) Cash Contracted Revenue as of March 31, 2024 on the basis of concluded charter contracts through May 27, 2024, and assuming at the earliest charter expiry.

2

Danaos by the Numbers

$2.5bn

Cash Contracted revenue through 2028(1)

0.19x

Net Debt / LTM Q1 2024 Adjusted EBITDA(2)

$705mm

LTM Q1 2024 Adjusted EBITDA

$324mm

Cash and Cash Equivalents as of March 31, 2024

$748mm

Liquidity(3) as of March 31, 2024

~$1.9bn

Enterprise value(4)

(1) Cash Contracted Revenue as of March 31, 2024, on the basis of concluded charter contracts through May 27, 2024 and assuming at the earliest charter expiry. (2) Net debt of $134mm and LTM Adjusted EBITDA of $705mm as of March 31, 2024. (3) Available Liquidity includes Cash and Cash Equivalents of $324mm, available and undrawn Credit Commitment of $326mm, and Marketable Securities of $97mm as of March 31, 2024(4) Enterprise value calculated using the May 24, 2024 market capitalization of ~$1.8bn ($90.59

3 price, 19.36mm shares).

First Quarter 2024 Financial & Operational Summary

Three Months ended March 31, 2024 and March 31, 2023 per segment*

(Express in thousands of United States dollars, except as otherwise stated)

Three Months Ended

Three Months Ended

March 31, 2024

March 31, 2023

Container

Dry Bulk

Container

Dry Bulk

Financial & Operating Metrics

Vessels

Vessels

Other

Total

Vessels

Vessels

Other

Total

Operating Revenues

$233,411

$20,038

-

$253,449

$243,574

-

-

$243,574

Voyage expenses, excl. commissions

($488)

($10,827)

-

($11,315)

($415)

-

-

($415)

Time Charter Equivalent Revenues

(1)

$232,923

$9,211

-

$242,134

$243,159

-

-

$243,159

Net income / (loss)

(2)

$138,359

$337

$11,802

$150,498

$148,789

-

($2,588)

$146,201

Adjusted net income / (loss)

$138,856

$337

$823

$140,016

$147,843

-

($2,588)

$145,255

Earnings per share, basis

$7.75

$7.18

Earnings per share, diluted

(2)

$7.68

$7.18

Adjusted earnings per share, diluted

$7.15

$7.14

Operating Days

(1)

6,019

596

-

5,956

-

-

Time Charter Equivalent $/day

$38,698

$15,455

-

$40,826

-

-

Ownership Days

6,185

637

-

6,150

-

-

Average number of vessels

68.0

7.0

-

68.3

-

-

Fleet Utilization

(2)

97.3%

93.6%

-

96.8%

-

-

Adjusted EBITDA

$174,188

$2,192

$823

$177,203

$181,628

-

($2,588)

$179,040

Consolidated Balance Sheet & Leverage Metrics

As of March 31, 2024

As of December 31, 2023

Cash and cash equivalents

$324,326

$271,809

Availability under Revolving Credit Facility

$326,250

$337,500

Marketable securities

$97,007

-

Total cash liquidity & marketable securities

(3)

$747,583

$609,309

Debt, gross of deferred finance costs

$458,641

$410,516

Net Debt

(4)

$134,315

$138,707

LTM Adjusted EBITDA

(5)

$705,165

$707,002

Net Debt / LTM Adjusted EBITDA

(5)

0.19x

0.20x

  • For management purposes, the Company is organized based on operating revenues generated from containership vessels and dry bulk vessels and has two reporting segments: (1) a container vessels segment and (2) a dry bulk vessels segment. The Other segment includes components that are not allocated to any of the

Company's reportable segments and includes investments in an affiliate accounted for by equity method accounting and investments in marketable securities.

  1. Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. (2) Adjusted net income/(loss), adjusted earnings per share and diluted and adjusted EBITDA are non-GAAP measures. Note: Please refer below for reconciliations of non-GAAP to GAAP measures. (3) Total available liquidity is defined as cash and cash equivalents plus undrawn revolving credit facility. (4) Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents. (5) Last twelve months Adjusted.

4 EBITDA.

Fleet Summary & Strong Charter Coverage Profile

Containership Fleet TEU Capacity(1)

550

Existing

New Buildings

500

91.4

107.9

450

46.4

400

350

436.6

423.7

421.3

419.1

  1. 0
  1. 0

2021

2022

2023

March 31, 2024

Containership - Contracted Revenue & Contracted Days Coverage(3)

USDm

Number of vessels (1)(2)

90

Containerships

Drybulk vessels

70

7

10

71

69

68

67

50

2021

2022

2023

March 31, 2024

$1,000

$800

$600

$400

$200

$0

($200)

99%

100%

$53

69%

$28

48%

60%

$7

$871

$725

29%

$532

7%

20%

$354

$257

($12)

($5)

-20%

2024

2025

2026

2027

2028 and onward

Cash Contracted Revenue

Non-cash Component of Contracted Revenue

Contracted days coverage

  1. TEU capacity and number of vessels at the end of respective year. (2) Includes 3 Drybulk vessels expected to be delivered in Q2 & Q3 2024. (3)Cash Contracted Revenue as of March 31, 2024 on the basis of concluded charter contracts through May 27, 2024 and at the earliest charter expiry. Non-cash component of contracted revenue includes straight-line revenue adjustment, amortization of charter attached components and unearned revenue recognition, including $110.5 million of charter hire prepayment in Q2 2022,

5 representing partial prepayment of charter hire payable from March 31, 2024 through January 2027 in accordance with US GAAP.

First Quarter 2024 Highlights

Operating Revenues

USDm

$500

$400

$300

$253.4

$243.6

$200

$100

$0

Three Months Ended March 31

2023 2024

Adjusted Net Income

USDm

$300.0

$200.0

$145.3

$140.0

$100.0

$0.0

Three Months Ended March 31

2023

2024

Adjusted EBITDA

USDm

$300.0

$200.0

$179.0

$177.2

$100.0

$0.0

Three Months Ended March 31

2023

2024

Free Cash Flow

USDm

$300.0

$200.0

$146.4

$100.0

$114.1

$0.0

Three Months Ended March 31

2023

2024

6 Note: Please refer to the Appendix tables for reconciliations of non-GAAP to GAAP measures.

First Quarter 2024 Highlights - Segments

Operating Revenues per Segment

USDm

$280.0

$253.4

$233.4

$210.0

$140.0

$70.0

$0.0

$20.0

Three Months Ended March 31, 2024

Dry Bulk vessels

Container vessels

Time Charter Equivalent ($/per day)(1) per Segment

USD

$60,000

$38,698

$45,000

$30,000

$15,000

$15,455

$0

Three Months Ended March 31, 2024

Dry Bulk vessels

Container Vessels

Reconciliation of Operating Revenues to Time Charter Equivalent $/per day

Container vessels

Dry Bulk vessels

Three Months

Three Months

Ended March 31,

Ended March 31,

2024

2023

2024

2023

Operating Revenues (in 000's of US$)

$233,411

$243,574

$20,038

-

Less:

Voyage Expenses excluding commissions (in 000's of US$)

(488)

(415)

(10,827)

-

Time Charter Equivalent Revenues (in 000's of US$)

$232,923

$243,159

$9,211

-

Ownership days

6,185

6,150

637

-

Less:

Off-hire days

(166)

(194)

(41)

-

Operating days

6,019

5,956

596

-

Time Charter Equivalent $/per day

$38,698

$40,826

$15,455

-

(Time Charter Equivalent Revenues / Operating days)

Note: Please refer to the Appendix tables for reconciliations of non-GAAP to GAAP measures.

7 (1) Time charter equivalent and Time Charter Equivalent $/per day are non-GAAP measures.

Substantial Containership Fleet Employment and Charter Coverage(1)

As of

May 22, 2024

Current charter

Next Charter

Charter

Charter

2024

2025

2026

2027

2028

Vessel

TEU

Age

Charterer

1

Rate

Expiry

Rate

Expiry

Q2 2024 Q3 2024 Q4 2024

Q1 2025 Q2 2025 Q3 2025 Q4 2025

Q1 2026 Q2 2026 Q3 2026 Q4 2026

Q1 2027 Q2 2027 Q3 2027 Q4 2027

Q1 2028 Q2 2028 Q3 2028 Q4 2028

Kota Peony

13,100

12

*

$54,000

Mar 2027

5x

Kota Primrose

13,100

12

*

$54,000

Apr 2027

Hyundai Smart

13,100

12

*

$64,918

May 2024

$54,000

Jun 2027

13,100 TEU

Hyundai Speed

13,100

12

*

$64,918

Jun 2024

$51,500

Apr 2027

Hyundai Ambition

13,100

12

*

$64,918

Jun 2024

$51,500

Apr 2027

Pusan C

9,580

18

*

$58,500

May 2028

5x

Le Havre

9,580

18

*

$58,500

Jun 2028

Express Berlin

10,100

13

*

$33,000

Aug 2026

9,600 -

10,100 TEU

Express Rome

10,100

13

*

$30,000

Sep 2024

$37,000

Apr 2027

333333333333

Express Athens

10,100

13

*

$30,000

Sep 2024

$37,000

Apr 2027

333333333333

Europe

8,468

20

*

$56,000

May 2028

America

8,468

20

*

$56,000

Apr 2028

Kota Santos

8,463

19

$55,000

Aug 2026

Kota Manzanillo

8,533

18

$47,500

Feb 2026

13x

Belita

8,533

18

$45,000

Jul 2026

8,500 -

Niledutch Lion

8,626

16

$47,500

May 2026

9,000 TEU

C Hamburg

9,012

14

*

$56,000

Jan 2028

Bremen

9,012

14

*

$56,000

Jan 2028

CMA CGM Attila

8,530

13

*

$34,500

May 2027

CMA CGM Tancredi

8,530

13

*

$34,500

Jul 2027

CMA CGM Bianca

8,530

13

*

$43,000

Apr 2024

$34,500

Sep 2027

CMA CGM Samson

8,530

12

*

$43,000

Jun 2024

$34,500

Nov 2027

1x 8,010 TEU

CMA CGM Melisande

8,530

12

*

$43,000

Aug 2024

$34,500

Jan 2028

Catherine C

8,010

*

$42,000

May 2027

(Methanol Ready)

1x

7,165 TEU

Interasia Accelerate

7,165

*

$36,000

Apr 2027

(Methanol Ready)

denotes firm charter period 1

1 denotes firm charter period 2

denotes optional period at the option of the charterer

  • Information is not disclosed due to confidentiality arrangements.

(1) On the basis of US GAAP revenue accounting and concluded charter contracts through May 27, 2024. (2) Age as of March 31, 2024.

8

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Danaos Corporation published this content on 28 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2024 11:52:06 UTC.