World-Class Shipping, Leading-Edge Expertise

Danaos by the NumbersDisclaimer

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 March 5, 2019, 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

Danaos by the Numbers

A LEADING

CONTAINERSHIP

OWNER AND

OPERATOR

• One of the largest publicly-listed owners of modern containerships with long

track record in the shipping market

• One of the most efficient operators in the industry with highly competitive breakeven

levels

• Management is the largest shareholder (~34%) and is aligned with public shareholders

• Reduced debt by ~$570M1 and extended maturities to December 2023

• Significant financial commitment by founder and largest shareholder

• Going forward financial covenants in line with conservative operating expectations

• Charter backlog of $1.4 billion through 2028 with world’s leading liner companies

provides good cash flow visibility

• Large, modern 13,000 TEU vessels are all on long-term charters through 2023

• Active chartering market with more limited capacity growth, for majority of vessels on

shorter charters, limiting market downside risk

Business Overview

STRENGTHENED

CAPITAL STRUCTURE

THROUGH RECENT

REFINANCING

MARKET DYNAMICS

LIMIT RE-CHARTERING

RISK AND CREATES

UPSIDE OPTIONALITY

(1) Net of deferred finance costs and fair value adjustments. 3

Danaos by the Numbers

$1.4bnContracted cash flow through 2028

4.9xNet debt to EBITDA

~$200mnAnnual operating cash flow

33.7%Ownership through founder / management

$2.0bnEnterprise value

2xReduction in leverage from recent refinancing

4

29%

18%15%

10%

8%

7%

13%

910

478 328

207 203 183

472 442 396 338 303 253 242 238 223 219 209 206

Sea

span

Cos

tam

are

Dan

aos

Nav

ios

Glo

bal S

hip

Leas

e

MP

C G

roup

Offe

n, C

laus

Pet

er

Sho

ei K

isen

Zod

iac

Mar

itim

e

BoC

om L

easi

ng

Pet

er D

ohle

/H

amm

onia

Fre

drik

sen

Gro

up

Zea

born

Eas

tern

Pac

ific

Shp

g

Sch

ulte

Gro

up

Nor

ddeu

tsch

e R

.H.

Sch

uldt

Min

shen

g F

inan

cial

Leas

ing

Nis

sen

Kai

un

Diverse, High-Quality Fleet Serving Blue-Chip Customers

5x13,100 TEU

9x8,500 – 9,600 TEU

3x10,100 TEU

9x6,400 – 6,500 TEU

10x4,300 – 5,500 TEU

8x3,400 TEU

11x2,200 – 2,600 TEU

Source: Clarksons Research.

(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) Global Ship Lease includes Pro Forma TEU for Poseidon / Technomar Acquisition which closed November 15, 2018

Publicly Traded Pure-Play Operators Financial / Independent Owners

Market Share1, 2 Among Top Public Containership Owners GloballyBy TEU, thousands

Balanced Counterparty ConcentrationBy TEU

Others

Fleet Overview1

5

Recent Refinancing Highly Beneficial

Key Provisions of Refinancing Agreements

• Successfully concluded $2.2bn consensual debt refinancing with

support from key lender group

• Extension of significant maturities through December 2023

• Management contributed $10mm in capital with no increase in equity

ownership

• Agreements provide for raising of additional equity within 18 months

of closing

• Go-forward financial covenants in line with conservative operating

expectations

2.0xReduction in Net Leverage

~$570mmReduction in Total Debt1

Significant Improvement of Financial Profile

Timeline of Key Recent Events

201820172016

August 2016:

Hanjin declares bankruptcy,

cancels charters for 8 Danaos vessels and

$560 mm (20%) of contracted revenue

September 2016:

3Q 2016 Revenue and EBITDA decrease of

23% and 44% respectively relative to prior

quarter trailing lost Hanjin Charters

December 2016:

Recorded impairment charge of $415mm on 25

vessels, of which $205mm was related to vessels

formerly chartered to Hanjin

August 2018:

Closing of comprehensive debt refinancing; Reduced

debt by ~$570mm, extended maturities to December

2023 and issued new shares (47.5% of market cap) to

debtholders. Danaos also committed to sell 2 vessels

September 2017:

No remaining borrowing ability under the current credit

facilities. Company obtained temporary waivers on

breach of financial covenants

(1) Based on total adjusted debt, net of deferred finance costs and fair value adjustments, as of September 30th 2018. Includes repayment of Kexim-ABN Amro facility on the Closing Date. 6

3,165 3,042

2,892 2,703

2,454 2,274

1,615 1,530

7.3x 7.0x

7.2x 6.5x

7.0x 7.3x

5.1x 4.9x

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2012 2013 2014 2015 2016 2017 2018 3Q 2019 LTM

Net Debt Adj. EBITDA Multiple

Recent Refinancing Highly Beneficial

(1) Based on total adjusted debt, net of deferred finance costs and fair value adjustments, as of September 30th 2019. Includes repayment of Kexim-ABN Amro facility on the Closing Date.

Significant reduction in leverage

Net Debt and Adjusted EBITDA Multiple(1)

7

Strong Charter Coverage through 2023

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.

Shorter charter durations limited to vessels in more liquid chartering markets

97% 83% 73%

59%

42%

5%

2019 2020 2021 2022 2023 2024+

$99

$377 $340

$270

$184 $119

2019 2020 2021 2022 2023 2024+

13,000 10,000 8,500-9,500 6,400-6,500 4,300-5,500 3,500 2,200-2,600

Contracted Revenue by Year mm $ by Asset Class

Revenue-Weighted Charter Coverage(1)

8

Experienced Senior Management

Dr. John Coustas, President & CEO

Dimitris Vastarouchas, Technical Director & Deputy COO

• CEO since 1987

• Over 30 years of experience in the

shipping industry

• Vice Chairman of the board of directors of

The Swedish Club; member of the board

of directors of the Union of Greek

Shipowners and the DNV Council

Evangelos Chatzis, Chief Financial Officer

• Joined Danaos in 2005

• Over 20 years of experience in corporate

finance and the shipping industry

• Formerly CFO of Globe Group of

Companies

• Danaos Technical Manager since 2005

• Has over 20 years of experience in the

shipping industry

• Formerly New Buildings Projects and Site

Manager supervising the construction of

4,250, 5,500 and 8,500 TEU containerships

Iraklis Prokopakis, Senior Vice President, Treasurer & COO

• Joined Danaos in 1998

• Over 40 years of experience in the shipping

industry

• Member of the Board of the Hellenic Chamber

of Shipping and the Owners’ Committee of the

Korean Register of Shipping

9

Industry Overview

Seaborne Containerized Trade Growth Remains Consistent

Global Container Port Throughput

Global Seaborne Container Trade

Source: Clarksons Research, IMF World Economic Outlook

(20%)

(10%)

0%

10%

20%

0

200

400

600

800

1,000

TE

U li

fts, m

m

TEU % y-o-y

(20%)

(10%)

0%

10%

20%

0

50

100

150

200

250

TE

U m

m

TEU % y-o-y

11

Containership Trade Routes

Source: Clarksons Research, CTS.

(1) Basis trades with Far East & Europe.

(2) Basis full year estimate / forecast.

• Units of 15,000+ TEU remain exclusively deployed on the

Far East-Europe trade

• Deployment of boxships sized 12-14,999 TEU continues

to broaden notably onto the Transpacific route and also

onto some non-mainlane trades

• Boxships sized 6,000-11,999 TEU offer flexible

deployment opportunities, with further reductions in

reliance on the mainlanes seen in 2018, although demand

can be sensitive to short-term shifts

• Over 35% of capacity deployed on intra-regional trade

routes is accounted for by units of 3,000+ TEU; this share

has been fairly steady for a number of years now

• Intra-regional routes, and deployment of sub-3,000 TEU

units thereon, appear ‘protected’ against significant vessel

upsizing to some degree, by infrastructure, volume and

other operational constraints

Mainlane, 30%

Non-Mainlane

East-West, 11%North-

South, 16%

Intra-Regional,

43%

201mm

TEU

Largest vessels primarily deployed on long trade routes

Container Trade by Trade Lane 2018

12

Geographic Deployment Favoring Certain Size Vessels

Largest vessels primarily deployed on long trade routes

Capacity Deployment By Routemm $ by Asset Class


0%

20%

40%

60%

80%

100%

<3k TEU 3-6k TEU 6-8k TEU 8-12k TEU 12-15k TEU 15k+ TEU

Mainlane E-W Non-Mainlane E-W North-South Intra-Regional

13

0.00

0.25

0.50

0.75

1.00

1.25

2019 2020 2021 2022

12,000+ TEU 8,000–11,999 TEU 3,000–7,999 TEU 100–2,999 TEU

10%

14%

1%

12%

0%

5%

10%

15%

Containership Orderbook %Fleet

Containership 8,000+ TEUOrderbook % Fleet

Containership 3-7,999 TEUOrderbook % Fleet

Containership <3,000 TEUOrderbook % Fleet

Supply Growth Primary in Largest Vessel Segments

Orderbook is concentrated in 8,000+ TEU vessels where Danaos has the greatest charter coverage

Containership Orderbook, as % of Fleet by SegmentTEU, mm


Containership Orderbook, By Scheduled Delivery YearTEU, mm

14

Containership Charter Rate Improving from Recent Lows

4,400 TEU gls ‘Old Panamax’ Containership

6-12 Month TC Rate$/day, thousands

9,000 TEU gls Containership 3-yr TC Rate1

$/day, thousands


Note: Limited activity on longer TCs with wide spread on rate ideas.

(1) Based on ‘Neo-Panamax’ ships.

6,800 TEU Containership 3-yr TC Rate$/day, thousands

2,500 TEU grd Containership 6-12 month TC Rate$/day, thousands

0

10

20

30

40

50

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

0

5

10

15

20

25

30


0

10

20

30

40


0

10

20

30

40


15

Containership Asset Values Improving from Recent Lows

4,500 TEU ‘Old Panamax’ Containership 10 Year Old

Secondhand Pricemm $

8,800 TEU Containership 5 Year Old Secondhand Pricemm $


Note: Limited activity on longer TCs with wide spread on rate ideas.

(1) Based on ‘Neo-Panamax’ ships.

6,600 TEU Containership 5 Year Old Secondhand Pricemm $

2,500 TEU grd Containership 10-Year-Old

Secondhand Pricemm $

0

20

40

60

80

100

120

140


20

40

60

80

100

120


0

10

20

30

40

50


0

10

20


16

Financial Overview

Historical Financials

Net Leverage Adjusted Net Income

Operating Revenuesmm $

Adjusted EBITDAmm $

$589 $588 $552 $568

$498 $452 $459 $453

2012 2013 2014 2015 2016 2017 2018 3Q 2019LTM

$432 $434 $404 $418

$351 $310 $318 $313

2012 2013 2014 2015 2016 2017 2018 3Q 2019LTM

7.3x 7.0x 7.2x 6.5x

7.0x 7.3x

5.1x 4.9x

2012 2013 2014 2015 2016 2017 2018 3Q 2019LTM

Source: Company filings. LTM ended September 30, 2019.

Note: 4Q 2018, 1Q 2019 and 2Q 2019 Adjusted Net Income was $36.6mm, $38.6mm and $34.2mm, respectively, giving September 30, 2019 LTM Adjusted Net Income of $147.3mm.

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.

$60 $54 $60

$159 $141

$115 $131

$147

2012 2013 2014 2015 2016 2017 2018 3Q 2019LTM

18

Summary Results

Third Quarter 2019 Earnings

Nine months ended September 30 L 12

2019 2018 % yoy Months

Operating Revenue $337,040 $343,101 -1.8% $452,671

Adjusted EBITDA1 $232,447 $237,677 -2.2% $312,618

Adjusted Net Income $110,706 $94,581 17.0% $147,311

Adjusted Earnings per Share, diluted2 $7.23 $10.30 -29.8% $9.63

Summary of Resultsthousands $, expect per share figures

Third Quarter Highlights

• Fleet utilization for three months ended September 30, 2019 was 98.7%, an increase of ~130 bps versus the prior year

• $0.4 million increase in adjusted net income in the three months ended September 30, 2019 compared to prior year

due to decrease in total operating expenses and net finance expenses, partially offset by decrease in operating revenues

• Charter contract coverage of 89% in terms of operating revenues and 75% 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

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.

(2) Based on weighted average diluted shares outstanding, except LTM. LTM diluted EPS is based on average shares diluted outstanding for the twelve months ended September 30, 2019.19

Charter-Adjusted Total Asset Value Net Debt Net Working Capital & Other Net Asset Value

Charter Adjusted Net Asset Value

Note: Asset value does not include vessels acquired after September 30, 2019, including Conti Champion. Refer to appendix for additional details regarding calculation of Net Asset Value.

(1) Net debt includes (1) $1,471.4 million of long-term debt, including current portion, which adds back deferred finance costs of $36.1 million and debt fair value adjustment of $21.4 million, and (2) $141.4 million of long-term leaseback obligations,

including current portion, less (3) cash and cash equivalents of $82.8 million. Please refer to Appendix. Does not include accumulated accrued interest of $201.8 million as of September 30, 2019.

(2) Includes carrying value of investments in Gemini JV of $7.8 million and ZIM and HMM notes of $29.85 million, as well as net working capital and other assets and liabilities. Excludes assets and liabili ties relating to accruals for certain non-cash

items relating to straight-line revenue recognition and unearned revenue with respect to ZIM and HMM notes. Please refer to Appendix for further details.

(3) Based on 15.371mm shares outstanding as of September 30, 2019.

(in US$ millions)

(2)(1)

NAV / Share: $23.57(3)

As of September 30, 2019

• As calculated in accordance with the financial covenants contained in the Company’s credit facilities as of September 30, 2019, market value

of the Company’s existing fleet of 55 containerships on a charter-inclusive basis was approximately $1.84 billion. Including $16 million carrying

value in advances for installation of vessel scrubbers, which are not yet fully installed, this charter-inclusive value increases to $1.86 billion

− Broker appraisals for charter-free asset value are as of June 30, 2019; charter-adjustments are as of September 30, 2019

• 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

$1,855 ($1,530)

$37

$362

20

Danaos Capital Structure as of September 30, 2019

Note: Danaos refinanced $2.2bn of debt due December 31, 2018 to reduce its total debt and extend maturities to December 2023.

LTM Adj. EBITDA of $313mm. Please refer to Adjusted EBITDA disclosure .

Commentary

• 7.1 mm new shares

(47.5%) issued to certain

lenders in the refinancing,

0.3 mm new RSUs issued

to management

21

Actual June 30,

2018

Refinancing

Adjustments

Pro-forma for

refinancing

Actual Sept. 30,

2019Cash $75 $10 $85 $83

Bank Debt:

Royal Bank of Scotland $655 (179) $476 $462

Promontoria, Davidson Kempner, Aegean Baltic Bank 634 (251) 383 376

Citi $120 mil. facility (ex ABN Amro Club facility) 204 (84) 120 103

Club Facility 214 (7) 206 146

Credit Suisse Facility 172 - 172 119

Citi $114.1 mil. facility 114 - 114 77

Citi $123.9 mil. facility (ex Deutsche Bank facility) 153 (29) 124 90

Citi - Eurobank facility 38 - 38 29

Sinosure facility (China Exim, Citi, ABN Amro) 71 - 71 47

Korea Exim Bank, ABN Amro facility 17 (17) - -

Long-term Leaseback Obligation - - - 141

Exit Fee 23 (1) 21 22

Deferred Finance Costs (6) (45) (51) (36)

Debt Fair Value Adjustment - (29) (29) (21)

Total Debt $2,288 ($644) $1,644 $1,555

adjusted for

Deferred Finance Costs $6 $45 $51 $36

Debt Fair Value Adjustment - $29 $29 $21

Total Debt $2,294 ($570) $1,724 $1,613

Net Debt 2,219 (580) 1,639 1,530

Book Value of Equity 574 273 847 792

Total Capitalization $2,868 ($296) $2,571 $2,405

Diluted shares outstanding 7,843 7,395 15,237 15,373

Credit Statistics:

LTM Adj. EBITDA $315 $315 $313

Debt / Adj. EBITDA 7.3x 5.5x 5.2x

Net Debt / Adj. EBITDA 7.0x 5.2x 4.9x

Net Debt / Book Equity 3.9x 1.9x 1.9x

Capitalization

mm $

Summary

Summary

Danaos is a market leader in the container shipping industry

Strong financial support from founder and largest shareholder

Refinancing significantly increases financial flexibility and reduces

interest expense

Strong cash flow visibility from large, modern vessels employed on

longest charters in backlog

Improving market conditions in mid-sized and smaller vessel

segments creates optionality as shorter duration charters roll off

23

Appendix

Substantial Fleet Employment and Coverage

(1) Age as of September 30, 2019

5x13,100 TEU

3x10,100 TEU

9x8,500 – 9,600 TEU

9x6,400 – 6,500 TEU

2018 2019 2020 2021 2022 2023 2024 2025

Hyundai Honour

Hyundai Respect

Maersk Enping

Maersk Exeter

MSC Ambition

Express Berlin

Express Rome

Express Athens

Europe

America

Pusan C

Le Havre

CMA CGM Attila

CMA CGM Tancredi

CMA CGM Bianca

CMA CGM Samson

CMA CGM Melisande

Performance

Dimitra C

CMA CGM Moliere

CMA CGM Musset

CMA CGM Nerval

YM Mandate

CMA CGM Rabelais

CMA CGM Racine

YM Maturity

2028

Charterer Age1 Vessel

7.6

7.6

7.4

7.3

7.3

8.6

8.5

8.4

15.1

14.9

13.1

12.9

8.2

8.1

7.9

7.8

7.6

17.6

17.3

10.0

9.6

9.4

9.4

9.3

9.1

9.1

Total Charter

Revenue

Contribution

38%

5%

29%

23%

25

Substantial Fleet Employment and Coverage

Charterer Age1 Vessel

Total Charter

Revenue

Contribution

10x4,300 – 5,500 TEU

8x3,400 TEU

11x2,200 – 2,600 TEU

2018 2019 2020 2021 2022 2023 2024

ANL Tongala

Derby D

YM Seattle

YM Vancouver

Zim Rio Grande

Zim Sao Paolo

Zim Kingston

Zim Monaco

Zim Dalian

Zim Luanda

Dimitris C

Colombo

Singapore

Express Argentina

Express Brazil

Express France

Express Spain

Express Black Sea

Future

Sprinter

Vladivostok

Advance

Stride

Progress C

Amalia C

Highway

Bridge

Danae C

MSC Zebra

15.6

15.4

12.1

11.8

11.2

11.0

10.9

10.7

10.5

10.3

18.8

15.6

15.0

9.4

9.2

9.0

8.7

8.5

22.5

22.3

22.2

22.1

22.1

21.6

21.6

21.6

21.5

18.3

17.8

(1) Age as of September 30, 2019

3%

1%

1%

26

Adjusted EBITDA

Source: Company filings.

Three Months Three MonthsLast Twelve

Months

ended ended ended

($ In thousands) Sept. 30, 2019 Sept. 30, 2018 Sept. 30, 2019

Net income / (Loss) from Continuing Operations (unadjusted) $33,855 $127,217 ($83,547)

Adjustments:

Depreciation 24,336 26,995 99,146

Amortization of deferred drydocking & special survey costs 2,271 2,636 8,874

Amortization of defered realized losses of cash flow interest rate swaps 913 931 3,640

Amortization of deferred finance costs 4,027 4,834 18,854

Interest income (1,586) (1,505) (6,234)

Interest expense 14,317 16,079 55,972

EBITDA $78,133 $177,187 $96,705

Impairment loss - - 210,715

Gain on debt extinguishment - (116,365) 0

Refinancing professional fees - 21,766 (154)

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

Stock based compensation 1,195 157 3,909

ADJUSTED EBITDA $79,328 $82,745 $312,618

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

September 30, 2019

27

Adjusted Net Income

Source: Company filings.

Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share

September 30, 2019

Three Months Three MonthsLast Twelve

Months

ended ended ended

($ In thousands, except per share items) Sept. 30, 2019 Sept. 30, 2018 Sept. 30, 2019

Net income / (Loss) from Continuing Operations $33,855 $127,217 ($83,547)

Adjustments:

Impairment loss - - 210,715

Refinancing professional fees - 21,766 (154)

Amortization of deferred finance costs 4,027 4,834 18,854

Gain on debt extinguishment - (116,365) 0

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

ADJUSTED NET INCOME $37,882 $37,452 $147,311

ADJUSTED EARNINGS PER SHARE

Diluted net income per share $2.46 $3.17 $9.63

Diluted weighted average number of shares 15,373 11,828 15,291

28

Appendix: Danaos Net Asset Value(1)

(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

similar assets.

(2) As calculated in accordance with the financial covenants contained in the Company’s credit facilities as of

September 30, 2019, on a charter-inclusive basis, as follows (1) for any vessel having a charter with more

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-

docking costs), plus (2) the present value of the residual charter-free value of any vessel (estimated based on

June 30, 2019 broker valuations using vessel age as of the end of applicable charter, if any), each discounted

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 March 5, 2019. These calculations of

vessel value may not be comparable to other methods of determining vessel values or reported book value

($2.4 billion as of September 30, 2019). Vessel values are highly volatile and contracted charter revenue is

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

prices that the Company could achieve if it were to sell the vessels.

(3) Represents advances for scrubber installations. Included in Other non-current assets on the Company’s

balance sheet.

(4) Consists of (i) Current portion of long term debt, net of $115.551 million and (ii) Long-term debt, net of

$1,298.271 million plus deferred finance costs, net, of $36.1 million and debt fair value adjustment of $21.4

million. Does not include accumulated accrued interest of $201.8 million.

(5) Excludes the following non-cash items included on the Company’s balance sheet, as of September 30,

2019: (i) unearned revenue liabilities totaling $45.277 million relating to an accounting charge recognized

upon the Company’s receipt of the ZIM and HMM notes in respect of charter amendments ($31.235 million

Unearned revenue, net of current portion and $14.042 million included in Unearned revenue, current portion),

(ii) Other current assets ($2.851 million) and Other non-current assets ($31.910 million) related to straight-line

revenue recognition totaling $34.761 million and (iii) liabilities related to straight-line revenue recognition

totaling $1.178 million (Other current liabilities of $0.468 million and $0.710 million included in Other long-term

liabilities).

(6) Represents investment in Gemini JV.

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

29

Charter Adjusted Asset Value

Charter Adjusted Fleet Value(2) $ 1,838,468

Advances for vessels additions(3) 16,466

Total Charter Adjusted Asset Value $ 1,854,934

Less:

Net Debt

Bank debt(4) $ 1,471,412

Long-term leaseback obligation

(including current portion)141,374

Less:

Cash and cash equivalents (82,823)

Total Net Debt $ 1,529,963

Plus:

Net Working Capital & Other(5)

Accounts receivable, net $ 7,637

Inventories 8,966

Prepaid Expenses 899

Due from related parties 20,409

Other current assets 4,003

Investments in affiliates(6) 7,871

Zim notes(7) 20,706

HMM notes(7) 9,149

Less:

Accounts payable (12,414)

Accrued liabilities (9,692)

Unearned revenue (5,375)

Other current liabilities (14,849)

Total Net Working Capital & Other $ 37,310

Net Asset Value: $ 362,281

(in US$ thousands)

World-Class Shipping, Leading-Edge Expertise · 2019-11-06 · Danaos by the Numbers $1.4bn...

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Transcript of World-Class Shipping, Leading-Edge Expertise · 2019-11-06 · Danaos by the Numbers $1.4bn...