World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020

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World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020
World-Class Shipping, Leading-Edge Expertise
Corporate Presentation | November 2020
World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020
Disclaimer
Danaos by the Numbers

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 the strength of world economies, 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, including the terms of its new
credit facilities and agreements entered into in connection with the refinancing, the affects of the refinancing transactions and the Company’s ability to
achieve the benefits of the refinancing, actions taken by regulatory authorities, potential liability from litigation and international political conditions. Danaos
Corporation is listed in 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 27, 2020, including the section entitled “Key
Information – 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 and Adjusted EPS may be included in our presentations. EBITDA, Adjusted EBITDA, Adjusted Net Income
and Adjusted EPS 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 and Adjusted EPS are “non-GAAP
financial measures” and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement
data prepared 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.

                                                                                                                                                                          2
World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020
Business Overview                                                                k

A LEADING CONTAINERSHIP OWNER AND OPERATOR
                     •      One of the largest publicly-listed owners of modern containerships with
      ✓                     long track record in the shipping market
                                                                                                                  MARKET UPDATE
                     •      One of the most efficient operators in the industry with highly
                            competitive breakeven levels                                              • The charter market has improved significantly
                                                                                                        since the initial shock at the start of the COVID-19
                     •      Management is the largest shareholder (~46%)(1) and is aligned with
                                                                                                        pandemic, and volumes have recovered faster
                            public shareholders
                                                                                                        than expected
HEALTHY CAPITAL STRUCTURE                                                                             • Consistent capacity management by liner
                                                                                                        companies addressed the drop in volumes brought
                     • Adjusted Net Debt / EBITDA ratio of 4.5x and consistent reduction in             on by the pandemic, alleviating pressure on our
      ✓                leverage through amortization schedule                                           customers’ cash flows and stabilizing freight rates
                     • Going forward financial covenants in line with conservative operating          • Volumes has seen consistent improvements,
                       expectations                                                                     particularly in Transpacific eastbound, intra-Asia
                                                                                                        and North-South trade lanes
                     • Repurchased 17.5% of outstanding shares in October 2020
                                                                                                      • The portion of the global containership fleet that is
LIMIT RE-CHARTERING RISK AND POTENTIAL FOR UPSIDE                                                       sitting idle (based on TEU) has declined from a
                                                                                                        high of 11.4% at the end of May to 3.3% as of
                     • Charter backlog of $1.1 billion through 2028 with world’s leading liner          October 23 (5-year average is 4.0%)
      ✓                companies provides good cash flow visibility
                                                                                                      • SCFI comprehensive index reached its highest
                     • Large, modern 13,100 TEU vessels are all on long-term charters through           level since 2012 in mid-October and is up more
                       2024                                                                             than 80% from April lows
                     • Strong contract coverage of 87% for the next 12 months limits downside         • Historically-low orderbook for containerships,
                       risk and provides potential for upside                                           provides potential for a swift recovery when the
                                                                                                        situation normalizes
(1)   Inclusive of extended Coustas family interest. .                                                                                                       3
World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020
Danaos by the Numbers

                   $1.1bn                                       46%
          Contracted cash flow through 2028     Ownership through founder / management

                      4.5x                                    $1.6bn
          Net debt to LTM Adjusted EBITDA                    Enterprise value

                  $313mn                                         3.0x
           LTM Adjusted EBITDA 3Q 2020        Reduction in leverage over the last three years

                                                                                                4
World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020
40+ Year Legacy of Leadership
  in Container Shipping

                                     1987                                                                              2006                                                                                2010
                                     Dr. John Coustas steps into                                                       NYSE IPO                                                                            $200mm equity
                                     Chief Executive role                                                              Raised $200mm                                                                       raise

       1972                                                                            2005                                                                                                                                                                              2018 to present
       Founded by Dimitris                                                             Incorporation in Marshall                                                                                                                                                         Refinancing, share
       Coustas                                                                         Islands                                                                                                                                                                           offering and growth

        Market Share1, 2 Among Top Public Containership Owners Globally
        By TEU, thousands

                     Publicly Traded Pure-Play Operators                                                                                                                    Financial / Independent Owners
         1,026

                        504                                                                          470                 457           456
                                       404                                                                                                                  386
                                                 244                  207                                                                                                      268                     253                  247           223             211             209         194
                                                                               180                                                                                                                                                                                                                         181

                                                                                                                                                                                                                                          Schulte Group
           Seaspan

                         Costamare

                                                                                                                                                                                                                          Peter Dohle /
                                       Danaos

                                                                      Navios

                                                                                                                                                                                                                                                                          Zeaborn

                                                                                                                                                                                                                                                                                    Norddeutsche R.H.
                                                                                                                         Shoei Kisen

                                                                                                                                                                                Eastern Pacific Shpg

                                                                                                                                                                                                                                                          Nissen Kaiun
                                                                                                                                                            BoCom Leasing
                                                  Global Ship Lease

                                                                               MPC Group

                                                                                                                                                                                                                                                                                                        Minsheng Financial
                                                                                                     Zodiac Maritime

                                                                                                                                       Offen, Claus Peter

                                                                                                                                                                                                       Fredriksen Group

                                                                                                                                                                                                                           Hammonia

                                                                                                                                                                                                                                                                                                             Leasing
                                                                                                                                                                                                                                                                                         Schuldt
Source: Clarksons Research.
(1)     Includes Gemini Shipholdings Vessels (TEU), a joint venture in which Danaos owns a 49% stake: Suez Canal (5,610), Genoa (5,544), Catherine C (6,422), Leo C (6,422) and Belita (8,533) and 2 new vessel acquisitions (2 x 9,012), expected
        to be delivered to us between December 2020 and January 2021.
(2)     Global Ship Lease includes Pro Forma TEU for Poseidon / Technomar Acquisition which closed November 15, 2018.
                                                                                                                                                                                                                                                                                                                             5
World-Class Shipping, Leading-Edge Expertise - Corporate Presentation | November 2020
Diverse, High-Quality Fleet

        Fleet Overview(1)                                                                 8x
                                                                                          3,500 TEU
                                                                                          Average Age: 12.7 years
                                                                                          Remaining Charter Term: 0.5 years                                                       11x
                                                                                                                                                                                  2,200 – 2,600 TEU
                                                                                                                    1.8% 0.7%                                                     Average Age: 22.2 years
                                                                                                      1.0%                                                                        Remaining Charter Term: 0.2 years

                                                 10x
                                                 4,300 – 5,500 TEU
                                                 Average Age: 13.0 years
                                                 Remaining Charter Term: 0.3 years
                                                                                                    23.2%
                                                                                                                                                       38.5%               5x
                                                                                                                    Contracted                                             13,100 TEU
                                                                                                                     Revenue                                               Average Age: 8.4 years
                                             9x                                                                    Contribution(1)
                                                                                                                                                                           Remaining Charter Term: 3.6 years
                                             6,400 – 6,500 TEU
                                             Average Age: 12.2 years
                                             Remaining Charter Term: 3.0 years

                                                                                                                                          7.8%
                                                                                    27.1%
                                                              12x       (2)
                                                              8,500 – 9,000 TEU                                                                    5x                                                           Gemini Vessels
                                                              Average Age: 11.7 years
                                                              Remaining Charter Term: 2.6 years
                                                                                                                                                   9,600 - 10,100 TEU
                                                                                                                                                   Average Age: 11.2 years
                                                                                                                                                                                                        2x
                                                                                                                                                   Remaining Charter Term: 1.8 years                    5,500 TEU

                                                                                                                                                                                                        2x
                                                                                                                                                                                                        6,500 TEU

                                                                                                                                                                                                        1x
Note:   Figures as of September 30th 2020. Please refer to appendix for additional detail.                                                                                                              8,500 TEU
(1)     Excludes Gemini Shipholdings Vessels (TEU), a joint venture in which Danaos owns a 49% stake: Suez Canal (5,610), Genoa (5,544), Catherine C (6,422), Leo C (6,422) and Belita (8,533).
(2)     Includes 2 new vessel acquisitions (2 x 9,012), expected to be delivered to us between December 2020 and January 2021.
                                                                                                                                                                                                                                 6
Balanced Counterparty
  Danaos by the Numbers
  Concentration
Length of Customer Relationships Noted in Italics
                                                                           Overview of Customer Base
                                             ONE                           • Long history chartering to most major global
                                                                             liner companies
                                                                           •   Engaged with container alliances on
                                                                               deployments across major and minor global
                                                                               routes
                                       18%
                                                              (20 years)
                                                                           •   Have collaborated with customers in ordering
                                                     30%                       46 newbuildings in excess of 300,000 TEU over
               (40+ years)                                                     our history at a cost in excess of $4 billion
                             5%

                                                                           Close Alignment Working with Customers
                             7%
            (15 years)
                                                                           •   Consistently developing operating expertise to
                                                                               obtain and retain customers
                                  8%
                                                                           •   Delivering on-time new ships to customers’
                                                    16%                        specifications
                (34 years)
                                              16%                          •   Prioritizing reputation, customer service and
                                                                               safety
                                                           (25 years)
                                                                           •   Maintain a strategic focus on regular
                                                                               engagement with customers, particularly in
                                       (37 years)
                                                                               regards to new customer needs and
                                                                               technological advancements
Note: Distributed by TEU.
                                                                                                                                7
Strong Charter Coverage through
  2024
  Shorter charter durations limited to vessels in more liquid chartering markets

        Revenue-Weighted Charter Coverage(1)

                       99%
                                                                          81%
                                                                                                                            59%
                                                                                                                                                       41%

                                                                                                                                                                            5%

                        2020                                              2021                                             2022                        2023                2024+

         Contracted Revenue by Year
        mm $ by Asset Class
                        $455
                                                                        $393
                                                                                                                         $282
                                                                                                                                                      $189
                                                                                                                                                                           $119

                       2020                                    2021                                                  2022                             2023                 2024+
                           13,000                      9,500-10,000                        8,500                6,400-6,500               4,300-5,500    3,500   2,200-2,600
Note: Charter Revenue assumes Gross Daily Charter Rate. Contracted Revenue and Charter Expiration Schedule exclude Gemini Shipholdings.
(1) Assumes non-contracted vessels employed at current contracted charter rates.
                                                                                                                                                                                   8
Good Free Cash Flow Visibility

       Illustrative Walk to LTM Q3 2020 Free Cash Flow(1)

                                                                                                                                                                                                        LTM Q3 2020 FCF
                                                                    Drivers of LTM Q3 2020 FCF                                                          Uses of FCF                                      excludes CapEx
                                                                   ✓ Lower interest rates                                                                                                                 and one-time /
                                                                                                                                             ✓ Further debt amortization
                                                                                                                                                                                                          extraordinary
           $313                                                    ✓ Contractual charter escalations                                         ✓ Return of capital to shareholders                              items
                                                                   ✓ Vessel acquisitions                                                     ✓ Vessel acquisitions

                                      ($62)                        ($6)
                                                                                                                                                                     $209
                                                                                              ($12)                        ($9)
                                                                                                                                                  ($15)

                                                                                                                                                                                                              $66
                                                                                                                                                                                        ($143)

      LTM Q3 2020              Net Cash Interest              JV Earnings           Revenue Recognition                   Other                 Dry Docking   Operating Cash Flow   Debt Amortization   LTM Q3 2020 FCF (1)
        EBITDA (1)                                                                      (Non-Cash)

Source: Company filings as of 09/30/2020.
Note: Recurring Free Cash Flow calculated excluding non-recurring items such as Vessels Addition Capital Expenditures and Financing Costs.
(1)     Non-GAAP measure. See appendix for definitions and reconciliations to the nearest GAAP measure.
                                                                                                                                                                                                                           9
Focused on Maintaining
      Conservative Capital Structure

Capitalization                                                                                              Net Adjusted Debt and Adjusted EBITDA Multiple(1)
  $ in millions                                                                      9/30/2020
  Cash                                                                                    $106                $3,500
  Bank Debt:                                                                             1,369                                  7.3x
                                                                                           129                                          7.0x
  Long-term Leaseback Obligation                                                                                                3,165
                                                                                                                 3,000                          7.2x
  Exit Fee                                                                                   23                                         3,042
                                                                                                                                                2,892   6.5x
  Deferred Finance Costs                                                                   (31)
                                                                                           (16)                                                         2,703   7.0x
  Debt Fair Value Adjustment                                                                                     2,500                                                   7.3x
  Total Debt                                                                            $1,475                                                                  2,454
  adjusted for                                                                                                                                                           2,274
   Deferred Finance Costs                                                                     31                 2,000
   Debt Fair Value Adjustment                                                                 16                                                                                 5.1x
  Total Debt                                                                              $1,521                                                                                         4.6x
  Net Debt                                                                                 1,415                 1,500                                                           1,615           4.5x
                                                                                                                                                                                         1,443   1,415
  Book Value of Equity                                                                      1000
  Total Capitalization                                                                    $2,521
                                                                                                                 1,000
  Credit Statistics:
  LTM Adj. EBITDA(2)                                                                         $313                    500
  Debt / LTM Adj. EBITDA(2)                                                                   4.9x
  Net Debt / LTM Adj. EBITDA(2)                                                               4.5x
  Net Debt / Book Equity(2)                                                                   1.4x                          0
                                                                                                                                2012    2013    2014    2015    2016     2017    2018    2019 LTM 3Q
                                                                                                                                                                                                '20
                                                                                                                                                           Net Adjusted Debt
(1)   Based on total adjusted debt, net of deferred finance costs and fair value adjustments, as of September 30 th 2020.
(2)   Non-GAAP measure. See appendix for definitions and reconciliations to the nearest GAAP measure.
                                                                                                                                                                                                         10
Experienced Senior
Management

 Dr. John Coustas, President & CEO                                Iraklis Prokopakis, Senior Vice President, Treasurer & COO
                   • CEO since 1987                                                • Joined Danaos in 1998
                   • Over 30 years of experience in the                            • Over 40 years of experience in the shipping
                     shipping industry                                               industry
                   • Vice Chairman of the board of directors of                    • Member of the Board of the Hellenic Chamber
                     The Swedish Club; member of the board                           of Shipping and the Owners’ Committee of the
                     of directors of the Union of Greek                              Korean Register of Shipping
                     Shipowners and the DNV Council

  Evangelos Chatzis, Chief Financial Officer                      Dimitris Vastarouchas, Technical Director & Deputy COO
                   • Joined Danaos in 2005                                         • Danaos Technical Manager since 2005
                   • Over 25 years of experience in corporate                      • Has over 20 years of experience in the
                     finance and the shipping industry                               shipping industry
                   • Formerly CFO of Globe Group of                                • Formerly New Buildings Projects and Site
                     Companies                                                       Manager supervising the construction of
                                                                                     4,250, 5,500 and 8,500 TEU containerships

                                                                                                                                    11
Longstanding Champion of ESG
 Principles
 Danaos Management is keenly focused on maintaining a strong ESG framework for company operations

         Environmental                                   Social                                Governance

✓ Advanced solutions to                   ✓    Code of ethics and                    ✓ Independent Board
    reduce emissions through                   compliance policies
    fuel efficiency optimization               published for Directors /                 Clear reporting of
                                                                                     ✓   transactions with Danaos
                                               Officers
✓ Scrubber installation on                                                               Shipping (Manager)
    select vessels                                                                       − Amounts approved by
                                                                                             independent board
    Low-sulfur fuel oil                        Accredited by Global                          members
✓ to be procured                          ✓
                                               Reporting Initiative (GRI)
    Ballast water
                                               for sustainability best               ✓ Arms length cost
✓                                              practices and socially                    arrangements, which
    system compliance                                                                    are amongst lowest
                                               responsible management
                                                                                         in industry and fixed
    Partnership with founders
✓ of Poseidon Principles                                                                 through 2024

                                                                                                                    12
Pioneers in Digitalization

 Waves Fleet Performance
 … Riding the Wave of Innovation!

                  Data Analytics/Algorithmic Analysis (Operator-defined) of Fused Data across Monitoring Systems

HINDSIGHT:
• ‘Reflect and learn from past data’ through statistical processing and trend analysis
• Detection of hidden correlations among seemingly un-related data
INSIGHT: ‘Interpret data and respond efficiently to the present’
• KPls real-time monitoring (operational efficiency, safety performance, etc.)
• Vessel’s benchmarking against: theoretical curves, specifications, tests and trials, sister and competitor vessel monitoring
• Timely anomaly detection and alerting for abnormal behavior or deviation from predefined thresholds
FORESIGHT: ‘Predict and get ready for the future’ through scenario testing, system risk assessments and observational
maintenance
As well as Routines System Data monitoring …
• BCS, pMatrix, Power Mgmt, Steam Mgmt, ODA …
• Tanks Mgmt. Bunker Analysis, Bunker Surveys, Bunkering Monitoring ...
• Performance, Propulsion, Emissions ...

                                                                       Workflow Management

Operator-defined workflows for timely and effective response to alarm events: what actions must take place, who from the
crew should be involved, and what actions must be logged / other systems triggered

                                                                                                                                 13
Industry Overview
Seaborne Containerized Trade
 Forecast to Rebound Quickly

       Global Seaborne Container Trade
                 250                                                                                                                         15%

                                                                                                                                             10%
                 200

                                                                                                                                             5%
                 150
        TEU mm

                                                                                                                                             0%

                 100
                                                                                                                                             -5%

                  50
                                                                                                                                             -10%

                   0                                                                                                                         -15%
                             2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

                                                       World Seaborne Container Trade             Y-o-Y Growth

Source: Clarksons Research
                                                                                                                                                    15
Containership Trade Routes

      Largest vessels primarily deployed on long trade routes

                                                                             •   Units of 15,000+ TEU are almost exclusively deployed on
                           Container Trade by Trade Lane 2020f                   the Far East-Europe trade
                                                                             •   Deployment of boxships sized 12-14,999 TEU continues
                                                                Mainlane,        to broaden notably onto the Transpacific route and also
                                                                 28.7%           onto some non-mainlane trades
              Intra-
             Regional,                                                       •   Boxships sized 6,000-11,999 TEU offer flexible
              44.5%                                                              deployment opportunities, with further reductions in
                                               201mm                             reliance on the mainlanes over the years, although
                                                TEU                              demand can be sensitive to short-term shifts
                                                                             •   Approximately 39% of capacity deployed on intra-regional
                                                                   Non-          trade routes is accounted for by units of 3,000+ TEU; this
                                                                 Mainlane        share has been fairly steady for the last 18 months
                                                                East-West,
                                                                  10.4%      •   Intra-regional routes, and deployment of sub-3,000 TEU
                                                 North-South,                    units thereon, appear ‘protected’ against significant vessel
                                                   16.5%                         upsizing to some degree, by infrastructure, volume and
                                                                                 other operational constraints
Source: Clarksons Research
(1)     Basis trades with Far East & Europe.
(2)     Basis full year estimate / forecast.
                                                                                                                                                16
Geographic Deployment
Favoring Certain Size Vessels
Largest vessels primarily deployed on long trade routes

      Capacity Deployment By Route
      mm $ by Asset Class

          100%

             80%

             60%

             40%

             20%

               0%
Supply Growth Primary in
Largest Vessel Segments
 Orderbook is concentrated in 8,000+ TEU vessels where Danaos has the greatest charter coverage

      Containership Orderbook, By Scheduled Delivery Year
      TEU, mm

       1.25
       1.00
       0.75
       0.50
       0.25
       0.00
                                      2020                                    2021                                 2022
                                12,000+ TEU           8,000–11,999 TEU               3,000–7,999 TEU         100–2,999 TEU

      Containership Orderbook, as % of Fleet by Segment
      TEU, mm

       15%
                                                           11.7%
       10%                      8.0%                                                                                  8.3%

         5%
                                                                                           0.5%
         0%
                       Containership Orderbook %   Containership 8,000+ TEU      Containership 3-7,999 TEU   Containership
Charter Rates Near Multi-Year
  Highs

        9,000 TEU gls Containership 3-yr TC Rate1                      6,800 TEU Containership 3-yr TC Rate
        $/day, thousands                                               $/day, thousands
         50
                                                                       40
         40
                                                                       30
         30
         20                                                            20

         10                                                            10

           0                                                            0
           Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20      Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20

        4,400 TEU gls ‘Old Panamax’ Containership
        6-12 Month TC Rate                                             2,500 TEU grd Containership 6-12 month TC Rate
        $/day, thousands                                               $/day, thousands
         40                                                            30
                                                                       25
         30
                                                                       20
         20                                                            15
                                                                       10
         10
                                                                        5
           0                                                            0
           Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20      Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Source: Clarksons Research
Note: Limited activity on longer TCs with wide spread on rate ideas.
(1) Based on ‘Neo-Panamax’ ships.
                                                                                                                                  19
Asset Values Steady, and
 Transactions have Increased

       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
       Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20           Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20

       4,500 TEU ‘Old Panamax’ Containership 10 Year Old               2,500 TEU grd Containership 10-Year-Old
       Secondhand Price                                                Secondhand Price
       mm $                                                            mm $

       50                                                               20
       40
       30
                                                                        10
       20
       10
          0                                                              0
          Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20        Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Source: Clarksons Research
Note: Limited activity on longer TCs with wide spread on rate ideas.
(1) Based on ‘Neo-Panamax’ ships.
                                                                                                                                   20
Financial Overview
Historical Financials

Summary Results
  Operating Revenues                                                                                                               Adjusted EBITDA
  mm $                                                                                                                             mm $
     $589         $588                       $568
                                $552
                                                           $498
                                                                        $452          $459         $447          $452                 $432         $434                       $418
                                                                                                                                                                 $404
                                                                                                                                                                                            $351
                                                                                                                                                                                                   $310   $318   $311    $313

    2012          2013         2014          2015         2016          2017         2018          2019         LTM                  2012          2013         2014         2015          2016    2017   2018   2019    LTM
                                                                                                               3Q '20                                                                                                   3Q '20

  Net Leverage                                                                                                                     Adjusted Net Income
                                                                                                                                   mm $
      7.3x         7.0x          7.2x                       7.0x         7.3x
                                              6.5x                                                                                                                             $159                                      $161
                                                                                                                                                                                            $141                 $149
                                                                                       5.1x
                                                                                                                                                                                                          $131
                                                                                                    4.6x          4.5x
                                                                                                                                                                                                   $115

                                                                                                                                       $60           $54          $60

     2012         2013          2014         2015          2016         2017          2018         2019         LTM                   2012          2013         2014          2015         2016   2017   2018   2019    LTM
                                                                                                               3Q '20                                                                                                   3Q '20

Source: Company filings.
Note: Adjusted Net Income reflects add-backs of various income statement items, most notably impairment charges, amortization of deferred financing costs and other one-off extraordinary items.
Note: LTM reflects twelve months period ending September 30, 2020
                                                                                                                                                                                                                                 22
Third Quarter 2020 Earnings

  Summary of Results
  thousands $, expect per share figures

                                                                                     Three Months ended Sept. 30                                            Nine Months ended Sept. 30                                     Last Twelve
                                                                                      2020      2019     % yoy                                               2020     2019     % yoy                                         Months
  Operating Revenue                                                                  $118,932 $111,830      6.4%                                            $341,952 $337,040      1.5%                                       $452,156
  Adjusted EBITDA1                                                                      $83,331                $79,328                     5.0%             $235,322 $232,447                                     1.2%        $313,440
  Adjusted Net Income                                                                   $47,303                $37,882                   24.9%              $123,078 $110,706                                   11.2%         $161,047
  Adjusted Earnings per Share, diluted2                                                      $1.91                  $2.46              -22.6%                       $4.97                 $7.23               -31.3%             $6.91

      Third Quarter Highlights
      • Adjusted EBITDA increased by 5.0% when compared to Q3 2019 as operating revenues improved by 6.4% compared to
               the same period due contractual increases in charter rates for vessels on long-term charters and revenues from newly-
               acquired vessels

      • Fleet utilization for the three months ended September 30, 2020 was 98.7% compared to 97.1% in the prior quarter
      • Charter contract coverage of 87% in terms of operating revenues and 64% in terms of operating days over the next 12
               months

(1)    Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs

(2)
       and deferred finance costs, amortization of deferred realized losses on interest rate swaps, loss on sale of securities, gain on debt extinguishment, stock based compensation and refinancing professional fees.
       Based on weighted average diluted shares outstanding.
                                                                                                                                                                                                                                         23
Charter Adjusted Net Asset Value

(in US$ millions)

                        $1,795                                         ($1,415)
                                                                                                                                                                                                                   (Pro-forma)
                                                                                                                                                            NAV / Share: $18.3(3)                               NAV / Share: $20.6(4)
                                                                                                                            $72                                      As of September 30, 2020                            As of September 30, 2020

                                                                                                                                                                            $452                                            $421
        Charter-Adjusted Total Asset                                     Net Debt                         Net Working Capital & Other (1)                            Net Asset Value (2)                              Net Asset Value
                   Value                                                                                                                                                                                                (Pro-forma)

        •      As calculated in accordance with the financial covenants contained in the Company’s credit facilities as of September 30, 2020, market value
               of the Company’s existing fleet of 58 containerships on a charter-inclusive basis was approximately $1.8 billion.

                      −        Broker appraisals for charter-free asset value and charter-adjustments are as of June 30, 2020
        •      Adjustments to calculate net asset value include:

                      −        Net debt, which is adjusted to include non-cash fair value adjustments and deferred finance costs
                      −        Net working capital & other, which includes DAC’s equity stake in the Gemini joint venture at carrying value

Note: Asset value does not include vessels acquired after September 30, 2020. Refer to appendix for additional details regarding calculation of Net Asset Value.
 (1) Net debt includes (1) $1,391.9 million of long-term debt, including current portion, which adds back deferred finance costs of $26.9 million and debt fair value adjustment of $15.7 million, and (2) $129.4 million of long-term leaseback obligations,
including current portion which adds back deferred finance costs of $3.7 million, less (3) cash and cash equivalents of $106.4 million. Please refer to Appendix. Does not include accumulated accrued interest of $162.0 million as of September 30, 2020.
(2) Includes carrying value of investments in Gemini JV of $13.7 million and ZIM and HMM notes of $39 million, as well as net working capital and other assets and liabilities. Excludes assets and liabilities relating to accruals for certain non-cash items
relating to straight-line revenue recognition, unearned revenue with respect to ZIM and HMM notes and deferred Handling Fees. Please refer to Appendix for further details.
(3) Based on 24.789 mm shares outstanding as of September 30, 2020.
(4) Based on the current NAV of $452.43 mil. reduced by $31.13 mil. (cash required for the share buy back) divided by the new number of shares which is 20,450,041
                                                                                                                                                                                                                                                                  24
Summary
Financial Strategy Positioning
      Danaos for Success                                                                                                                       k
                                                                                                                                                                                                                                   38.4% reduction in leverage
                                                                                                                                                                                                                                    between 2017 and today(2)

                                                                                                                                                                                                                    7.3x
                                                                                                                                                                                                                           5.1x
                      Continued de-levering from strong contracted cash flows                                                                                                                                                     4.6x          4.5x
      ✓
                      - Minimum debt amortization of $317mm(1) in 2020 and 2021
                                                                                                                                                                                                                    2017   2018   2019         2020 Q3

                      Balanced chartering strategy to ensure cash flow visibility with 99% and 81% of 2020 and 2021
      ✓
                      revenues contracted(3)

                      Opportunistic vessel acquisition strategy
      ✓               - Acquired three vessels in last nine months, two of which have been fixed on multi-year charters
                      - Two additional 9,000 TEU vessels acquired and expected to be delivered at the end of 2020

                      The Company repurchased 17.5% of its outstanding shares in October 2020 for an aggregate
      ✓               purchase price of $31.1 million

                      Following consummation of recent equity offering the Company is permitted, under its loan
      ✓
                      agreements, to re-instate dividends

(1)   Calculated as the sum of contractual principal debt repayment and lease repayments under sale leaseback structure.
(2)   Net leverage is a non-GAAP measure. Calculated as Net Adjusted Debt / Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. See appendix for definitions and reconciliations to the nearest GAAP measure.
(3)   Assumes contracted vessels operate on gross daily charter rate, accounts for revenue exclusively derived from long-term charter contracts.                                                                                                                 26
Appendix
Substantial Fleet Employment
     and Coverage                                                                                                            Total Charter
                                                                                                                                 Revenue
                                     Charterer   Age1            Vessel                                                      Contribution
                                                  8.6        Hyundai Honour
                                                            Hyundai Respect                                                                 38.5%
                                                  8.6
                                                  8.4         Hyundai Smart
                                                              Hyundai Speed
5x                                                8.3
                                                           Hyundai Ambition
13,100 TEU                                        8.3
                                                 14.1               Pusan C
                                                                                                                                           7.8%
                                                 13.9               Le Havre
                                                  9.6          Express Berlin
                                                  9.5         Express Rome
5x                                                9.4        Express Athens
9,600 – 10,100 TEU                               16.1                 Europe
                                                 15.9                America
                                       ONE       15.3                Phoebe
                                                 14.8         SM Charleston                                                                27.1%
                                                 12.3          Niledutch Lion
                                                  9.2       CMA CGM Attila
10x                                               9.1    CMA CGM Tancredi
8,500 – 9,000 TEU                                 8.9     CMA CGM Bianca
                                                  8.8    CMA CGM Samson
                                                  8.6   CMA CGM Melisande
                                                 18.6           Performance
                                                 18.3               Dimitra C                                                              23.2%
                                                 11.0     CMA CGM Moliere
                                                 10.6     CMA CGM Musset
                                                 10.4      CMA CGM Nerval
9x                                               10.4           YM Mandate
6,400 – 6,500 TEU                                10.3    CMA CGM Rabelais
                                                 10.1     CMA CGM Racine
                                                 10.1            YM Maturity
                                                                            2018   2019   2020   2021   2022   2023   2024   2025   2028      28
  (1) Age as of September 30, 2020
Substantial Fleet Employment
   and Coverage                                                                                                     Total Charter
                                                                                                                        Revenue
                                    Charterer   Age1           Vessel                                               Contribution
                                                 16.6        ANL Tongala
                                                 16.4             Derby D                                                      1.0%
                                                 13.1            Seattle C
                                                 12.9      YM Vancouver
                                                 12.2          Rio Grande
                                                           Zim Sao Paolo
10x                                              12.0
                                                 11.9        Zim Kingston
4,300 – 5,500 TEU
                                                 11.8         Zim Monaco
                                                 11.5           Zim Dalian
                                                 11.3         Zim Luanda
                                                 19.6            Dimitris C
                                                 16.6             Colombo                                                      1.8%
                                                 16.1           Singapore
                                                 10.4   Express Argentina
                                                 10.2       Express Brazil
8x                                               10.0     Express France
3,500 TEU                                                   Express Spain
                                                  9.7
                                                  9.5   Express Black Sea
                                                 23.5               Future
                                                 23.3              Sprinter
                                                 23.2          Vladivostok                                                 0.7%
                                                 23.1             Advance
                                                 23.1                Stride
                                                 22.6          Progress C
11x                                              22.6            Amalia C
2,200 – 2,600 TEU                                22.6             Highway
                                                 22.5               Bridge
                                                 19.3             Danae C
                                                 18.8                Zebra

 (1) Age as of September 30, 2020                                         2018   2019   2020   2021   2022   2023       2024          29
Adjusted EBITDA

Reconciliation of Net Income / (Loss) to EBITDA and Adjusted EBITDA
September 30, 2020
                                                         Three Months Three Months        Nine Months Nine Months        Twelve Months
                                                            ended          ended             ended         ended             ended
($ In thousands)                                         Sept. 30, 2020 Sept. 30, 2019    Sept 30, 2020 Sept 30, 2019     Sept 30, 2020
Net income / (Loss) from Continuing Operations
                                                               $42,786         $33,855         $110,371       $97,436         $144,188
(unadjusted)
Adjustments:
 Depreciation                                                   25,765          24,336           75,604        72,141           99,968
 Amortization of deferred drydocking & special survey
                                                                  3,174          2,271            8,425         6,525           10,633
 costs
 Amortization of deferred realized losses of cash flow
                                                                   913             913            2,719         2,709             3,632
 interest rate swaps
 Amortization of deferred finance costs                           4,517           4,027          12,707        13,270           16,859
 Interest income                                                (1,650)         (1,586)          (4,952)       (4,751)          (6,615)
 Interest expense                                                 7,525         14,317           29,551        42,057           42,697
EBITDA                                                         $83,030         $78,133         $234,425      $229,387         $311,362
 Stock based compensation                                           301           1,195              897         3,060            2,078
ADJUSTED EBITDA                                                $83,331         $79,328         $235,322      $232,447         $313,440

 Source: Company filings.                                                                                                                 30
Historical Adjusted EBITDA

Historical Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Years ended 2012 – LTM 3Q 2020

                                                                                                                                                                                                          Twelve months
                                                                                                                                                                                                              ended
      ($ in thousands)                                                            2012           2013           2014           2015           2016           2017           2018           2019            Sept. 30, 2020
      Net Income                                                                  $(105,204)       $37,523        $(3,920)      $117,016      $(366,195)       $83,905       $(32,936)      $131,252            $144,188
          Adjustments
      Depreciation                                                                  143,938        137,414        137,061        131,783        129,045        115,228        107,757         96,505               99,968
      Amortization of deferred drydocking & special survey costs                         6,070          5,482          4,387          3,845          5,528          6,748          9,237          8,733            10,633

      Amortization of deferred realized losses on cash flow interest rate swaps          3,524          4,017          4,016          4,017          4,028          3,694          3,694          3,622             3,632

      Amortization of finance costs and debt discount                                14,314         15,431         15,070         14,038         12,652         11,153         14,957         16,866               16,336
      Finance costs accrued (Exit Fees under our Bank Agreements)                        2,762          3,763          3,745          3,639          3,447          3,169          2,059           556                523
      Interest Income                                                                (1,642)        (2,210)        (1,703)        (3,419)        (4,682)        (5,576)        (5,781)        (6,414)              (6,615)
      Interest Expense                                                               87,340         91,185         79,980         70,397         70,314         75,403         70,749         55,203               42,697
      EBITDA                                                                        151,102        292,605        238,636        341,316       (145,863)       293,724        169,736        306,323              311,362
          Adjusted for:
      Impairment loss                                                               129,630         19,004         75,776         41,080        415,118                 -     210,715                 -                  -
      Gain on debt extinguishment                                                            -              -              -              -              -              -    (116,365)                -                  -
      Re-financing professional fees                                                         -              -              -              -              -      14,297         51,314                 -                  -
      Accelerated amortization of accumulated other comprehensive loss                       -              -              -              -          7,705              -          1,443              -                  -
      Realized (Gain) / Loss on derivatives                                         150,910        144,254        119,612         52,125             5,397              -              -              -                  -
      Unrealized (Gain) / Loss on fair value of derivatives                               739      (22,121)       (24,915)       (16,285)        (4,648)                -              -              -                  -
      Stock based compensation                                                            139             75            638             88             76               -          1,005          4,241             2,078
      Bad debt expense                                                                       -              -              -              -      15,834                 -              -              -                  -
      Impairment loss component of equity loss on investments                                -              -              -              -      14,642                 -              -              -                  -
      Loss on sale of HMM securities                                                         -              -              -              -      12,906             2,357              -              -                  -
      Impairment loss on securities                                                          -              -              -              -      29,384                 -              -              -                  -
      (Gain) / Loss on sale of vessels                                                   (830)           449       (5,709)                -            36               -              -              -                  -
      Adjusted EBITDA                                                               431,690        434,266        404,038        418,324        350,587        310,378        317,849        310,564              313,440

 Source: Company filings.                                                                                                                                                                                                    31
Adjusted Net Income

Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share
September 30, 2020
                                                 Three Months Three Months       Nine Months Nine Months         Twelve Months
                                                    ended          ended            ended          ended             ended
($ In thousands, except per share items)         Sept. 30, 2020 Sept. 30, 2019   Sept. 30, 2020 Sept. 30, 2019   Sept. 30, 2020
Net income / (Loss) from Continuing Operations          $42,786        $33,855         $110,371        $97,436         $144,188
Adjustments:
 Amortization of deferred finance costs                  4,517          4,027           12,707         13,270           16,859
ADJUSTED NET INCOME                                    $47,303        $37,882         $123,078       $110,706         $161,047
ADJUSTED EARNINGS PER SHARE
Diluted net income per share                             $1.91          $2.46            $4.97          $7.23            $6.91
Diluted weighted average number of shares               24,789         15,373           24,789         15,309           23,316

 Source: Company filings.                                                                                                         32
Historical Adjusted Net Income

      Reconciliation of Adjusted Net Income
      Years ended December 2012 – LTM 3Q 2020

                                                                                                                                                                                              Twelve months
                                                                                                                                                                                                  ended
                                                                      2012           2013           2014           2015           2016           2017           2018           2019            Sept. 30, 2020
   Net Income                                                         $(105,204)       $37,523        $(3,920)      $117,016      $(366,195)       $83,905       $(32,936)      $131,252            $144,188
       Adjust for:
   Impairment loss                                                      129,630         19,004         75,776         41,080        415,118                 -     210,715                 -                 -
   Gain on debt extinguishment                                                   -              -              -              -              -              -    (116,365)                -                 -
   Amortization of finance costs                                         14,314         15,431         15,070         14,038         12,652         11,153         11,771         10,795               10,591
   Debt discount amortization                                                    -              -              -              -              -              -          3,186          6,071             5,745
   Finance costs accrued (Exit Fees under our Bank Agreements)               2,762          3,763          3,745          3,639          3,447          3,169          2,059           556                523
   Re-financing professional fees                                                -              -              -              -              -      14,297         51,314                 -                 -

   Accelerated amortization of accumulated other comprehensive loss              -              -              -              -          7,705              -          1,443              -                 -

   Unrealized (Gain) / Loss on fair value of derivatives                      739      (22,121)       (24,915)       (16,285)        (4,648)                -              -              -                 -
   Realized loss on over-hedging portion of derivatives                  19,042                 -              -              -              -              -              -              -                 -
   Bad debt expense                                                              -              -              -              -      15,834                 -              -              -                 -
   Impairment loss component of equity loss on investments                       -              -              -              -      14,642                 -              -              -                 -
   Loss on sale of HMM securities                                                -              -              -              -      12,906             2,357              -              -                 -

   Impairment loss on securities                                                 -              -              -              -      29,384                 -              -              -                 -

   (Gain) / Loss on sale of vessels                                          (830)           449       (5,709)                -            36               -              -              -                 -
                                                                        $60,453        $54,049        $60,047       $159,488       $140,881       $114,881       $131,188       $148,674            $161,047

Source: Company filings.                                                                                                                                                                                        33
Sept. 30, 2020 Free Cash Flow

      Reconciliation of Free Cash Flow
                                                                                         Twelve months ended     Three months ended       Twelve months ended
              ($ in thousands)
                                                                                            Dec. 31, 2019          Sept. 30, 2020            Sept. 30, 2020
             Net Income                                                                             $131,252                  $42,786                  $144,188
                   Adjustments
             Depreciation                                                                              96,505                   25,765                    99,968
             Amortization of deferred drydocking & special survey costs                                  8,733                   3,174                    10,633
             Amortization of deferred realized losses on cash flow interest rate swaps                   3,622                     913                      3,632
             Amortization of finance costs and debt discount                                           16,866                    4,383                    16,336
             Finance costs accrued (Exit Fees under our Bank Agreements)                                   556                     134                        523
             Interest Income                                                                           (6,414)                 (1,650)                    (6,615)
             Interest Expense                                                                          55,203                    7,525                    42,697
             EBITDA                                                                                   306,323                   83,030                   311,362
             Stock based compensation                                                                    4,241                     301                      2,078
             Adjusted EBITDA                                                                        $310,564                  $83,331                  $313,440
             Net cash interest                                                                       (80,772)                 (10,472)                  (62,312)
             Equity income / (loss) on investments                                                     (1,601)                 (1,464)                    (5,823)
             Revenue recognition (non-cash)                                                          (27,682)                  (1,190)                  (11,883)
             Other working capital                                                                     (8,831)                 (6,307)                    (9,113)
             Payments for dry-docking & special survey costs deferred                                  (7,157)                     (17)                 (15,340)
             Operating cash flow                                                                      184,520                   63,881                   208,969
             Debt Amortization                                                                      (124,358)                 (40,450)                 (142,954)
             Free Cash Flow                                                                            60,162                   23,431                    66,015
             Debt drawdowns                                                                                  -                  13,300                    36,700
             Vessels additions & advances for vessels additions                                      (18,853)                  (7,403)                  (35,267)
             Vessel acquisitions & advances for vessel acquisitions                                    (2,507)                        -                 (77,557)
             Finance costs                                                                           (30,474)                  (7,914)                  (19,913)
             Share issuance costs                                                                        (873)                        -                     (873)
             Paid-in capital                                                                           54,440                         -                   54,440
             Net Increase / (Decrease) in Cash and Cash Equivalents                                   $61,895                 $21,414                    $23,545

Source: Company filings.                                                                                                                                            34
Appendix: Danaos Net Asset
 Value(1)
(in US$ thousands)
                                                                            (1) Net Asset Value (NAV) is used to assess compliance with our credit facility covenants, and management
                                                                            believes that many investors use NAV as a reference point in assessing valuation of fleets of ships and
Charter Adjusted Asset Value                                                similar assets.
Charter Adjusted Fleet Value(2)                                $1,795,434
Total Charter Adjusted Asset Value                             $1,795,434   (2) As calculated in accordance with the financial covenants contained in the Company’s credit facilities as of
                                                                            September 30, 2020, on a charter-inclusive basis, as follows (1) for any vessel having a charter with more
Less:                                                                       than 12 months remaining duration, the present value of the “bareboat-equivalent” time charter income from
                                                                            such charter (contracted revenue thereunder less forecasted operating expenses, insurances and dry-
Net Debt                                                                    docking costs), plus (2) the present value of the residual charter-free value of any vessel (estimated based on
Bank debt(3)                                                   $1,391,921   June 30, 2020 broker valuations using vessel age as of the end of applicable charter, if any), each discounted
                                                         (4)
Long-term leaseback obligation (including current portion)       129,352
                                                                            to present value using a discount rate 7.0%. See “Item 5. Operating and Financial Review and Prospects” in
                                                                            the Company’s Annual Report on Form 20-F filed with the SEC on February 27, 2020. These calculations of
 Less:                                                                      vessel value may not be comparable to other methods of determining vessel values or reported book value
Cash and cash equivalents                                       (106,368)   ($2.4 billion as of September 30, 2020). Vessel values are highly volatile and contracted charter revenue is
Total Net Debt                                                 $1,414,905   subject to counterparty performance and may not be transferable upon sale of a vessel. As such, the
                                                                            Company’s estimates of market value may not be indicative of the current or future value of its vessels, or
Plus:                                                                       prices that the Company could achieve if it were to sell the vessels.

Net Working Capital & Other(5)                                              (3) Consists of (i) Current portion of long term debt, net of $126.326 million and (ii) Long-term debt, net of
Accounts receivable, net                                         $10,846    current portion of $1,222.971 million plus deferred finance costs, net, of $26.93 million and debt fair value
Inventories                                                        9,021    adjustment of $15.694 million. Does not include accumulated accrued interest of $162.0 million.
Prepaid Expenses                                                   1,653
Due from related parties                                          20,851    (4) Consists of (i) Current portion of leaseback obligation, net of $24.166 million and (ii) Long-term leaseback
Other current assets & non-current assets                          4,485    obligation, net of current portion of $101.522 million plus deferred finance costs of $3.664 million.
Investments in affiliates(6)                                      13,694
Zim notes(7)                                                      26,742    (5) Excludes the following non-cash items included on the Company’s balance sheet, as of September 30,
HMM notes(7)                                                      12,304    2020: (i) unearned revenue liabilities totaling $30.916 million relating to an accounting charge recognized
 Less:                                                                      upon the Company’s receipt of the ZIM and HMM notes in respect of charter amendments ($20.934 million
Accounts payable                                                 (11,628)   Unearned revenue, net of current portion and $9.982 million included in Unearned revenue, current portion),
Accrued liabilities                                               (8,770)   (ii) Other current assets ($9.472 million) and Other non-current assets ($22.344 million) related to straight-line
Unearned revenue                                                  (7,301)   revenue recognition totaling $31.816 million, and (iii) liabilities related to straight-line revenue recognition
Total Net Working Capital & Other                                $71,896    totaling $0.710 million (Other current liabilities of $0.423 million and $0.287 million included in Other long-term
                                                                            liabilities).
Net Asset Value:                                                $452,425
                                                                            (6) Represents investment in Gemini JV.

                                                                            (7) Included in Other non-current assets on the Company’s balance sheet.

                                                                                                                                                                                                  35
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