Danaos Corporation (NYSE:DAC) Q2 2022 Earnings Conference Call August 2, 2022 9:00 AM ET Company Participants John Coustas - Chief Executive Officer Evangelos Chatzis - Chief Financial Officer Conference Call Participants Omar Nokta - Jefferies Chris Wetherbee - Citigroup Climent Molins - Value Investor's Edge Operator Good day, and welcome to the Danaos Corporation Conference Call to discuss the financial results for the three months ended June 30, 2022. As a reminder, today's call is being recorded. Hosti ...

Table of Contents EXHIBIT 99.1 DANAOS CORPORATION OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report. Results of Operations Three months ended June 30, 2022 compared to three months ended June 30, 2021 During the three months ended June 30, 2022, Danaos had an average of 71.0 containerships compared to 60.0 containershi ...

Investor Presentation 0 P May 2022 U Disclaimer This presentation contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the outlook for fleet utilization and shipping rates, general industry con ...

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $11.36 per share or adjusted net income of $235.3 million for Q1 2022, compared to adjusted EPS of $2.83 per share or $58 million for Q1 2021, reflecting a significant increase of $177.3 million in adjusted net income [13] - Operating revenues increased by $97.8 million to $229.9 million in Q1 2022 from $132.1 million in Q1 2021, driven by higher charter rates and vessel additions [14] - Adjusted EBITDA rose by almost 180% or $173.2 million to $269.5 million in Q1 2022 from $96.3 million in Q1 2021 [18] Business Line Data and Key Metrics Changes - The increase in operating revenues was attributed to a $48.9 million rise from higher charter rates and an additional $20.8 million from vessel additions [14] - Vessel operating expenses increased by $8.1 million to $39.2 million due to the larger fleet size, while average daily vessel operating costs rose to $6,300 from $5,954 [15] Market Data and Key Metrics Changes - The broader market has been impacted by geopolitical events, high energy prices, inflation, and China's zero COVID policy, leading to a more conservative short-term attitude among market participants [8] - Despite these challenges, box freight rates and charter rates have not significantly declined, although there is a noted reluctance from charterers to engage in long-term discussions [24] Company Strategy and Development Direction - The company is focused on fleet growth, returning value to shareholders, and enhancing its balance sheet, with a recent acceleration in deleveraging to mitigate rising interest rates [10] - The company has ordered six vessels to be delivered between March and September 2024, which will be converted to run on green methanol when available [7] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain inefficiencies are expected to persist, contributing to record profits for liner companies and higher contract levels [9] - The company is well-positioned to execute its strategy amid an uncertain backdrop, with a strong balance sheet and significant liquidity of $708 million in cash and marketable securities at the end of Q1 2022 [12] Other Important Information - The company has reduced leverage significantly, repaying $437 million in debt and lease obligations, resulting in 13 unencumbered vessels by the end of Q2 2022 [19] - The contracted revenue backlog stood at $2.7 billion, with nearly 100% contract coverage for 2022 and 78% for 2023 [21] Q&A Session Summary Question: What does the conservative short-term attitude mean for charter renewals? - Management indicated that charterers are hesitant to engage in long-term discussions due to current global uncertainties, with discussions expected to pick up in the next quarter [24][27] Question: What is the right leverage level going forward? - Management stated that leverage is context-dependent and typically aims for a ratio of 3 to 4 at the bottom of the cycle, with current leverage expected to be close to 1 [28][29] Question: What is the outlook for drydocking in Q3 and Q4? - Management mentioned that only three or four ships are scheduled for drydocking this year, with more significant capital expenditures related to new builds [31] Question: What are the current charter rates for upcoming contracts? - Management noted that while short-term extensions have high rates, liner companies generally prefer longer contracts at lower rates [35] Question: What is the strategy regarding share repurchases? - Management emphasized that the priority is on securing growth and deleveraging, with share buybacks remaining a consideration but not a current focus [41][42] Question: What is the strategy for ZIM shares? - Management indicated that while ZIM shares are not a long-term holding, there is no immediate intention to divest, as they expect strong results and dividends from ZIM in 2022 [45]

EXHIBIT 99.1 DANAOS CORPORATION OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report. Results of Operations Three months ended March 31, 2022 compared to three months ended March 31, 2021 During the three months ended March 31, 2022, Danaos had an average of 71.0 containerships compared to 60.0 containerships during the t ...

PART I [Key Information](index=5&type=section&id=Item%203.%20Key%20Information) This section details Danaos Corporation's consolidated capitalization as of December 31, 2021, and outlines various business, financing, environmental, management, and tax risks [Risk Factors](index=7&type=section&id=RISK%20FACTORS) This section identifies significant business, financing, environmental, management, and tax risks, including dependency on containership demand and substantial debt levels - Key business risks include dependency on containership demand and global economic conditions, the impact of the COVID-19 pandemic, counterparty default risk, reliance on a limited number of customers, and fluctuations in vessel values[24](index=24&type=chunk) - Financing risks are significant due to substantial debt levels, which could limit flexibility, and the need to comply with restrictive financial and collateral covenants in credit facilities[25](index=25&type=chunk) - The company is subject to extensive environmental regulations (such as MARPOL Annex VI sulfur cap and ballast water management rules) and other industry risks, including geopolitical instability, piracy, and potential for government requisition of vessels[28](index=28&type=chunk)[29](index=29&type=chunk)[143](index=143&type=chunk) - The business depends on its Manager, a privately held company, and key employees, including CEO Dr. John Coustas. The loss of these personnel or the Manager could adversely affect operations[31](index=31&type=chunk) - Tax risks include the potential to pay a **4%** U.S. federal income tax on U.S.-source shipping income if the company fails to qualify for the Section 883 exemption, and the risk of being classified as a Passive Foreign Investment Company (PFIC), which would result in adverse tax consequences for U.S. stockholders[34](index=34&type=chunk)[226](index=226&type=chunk)[231](index=231&type=chunk) Consolidated Capitalization as of December 31, 2021 | Category | Actual (in thousands USD) | As Adjusted (in thousands USD) | | :--- | :--- | :--- | | **Debt** | | | | Total debt | $1,378,496 | $1,346,133 | | **Stockholders' equity** | | | | Preferred stock | — | — | | Common stock | $207 | $207 | | Additional paid-in capital | $770,676 | $770,676 | | Accumulated other comprehensive loss | ($71,455) | ($71,455) | | Retained earnings | $1,388,595 | $1,388,595 | | **Total stockholders' equity** | **$2,088,023** | **$2,088,023** | | **Total capitalization** | **$3,466,519** | **$3,434,156** | [Information on the Company](index=32&type=section&id=Item%204.%20Information%20on%20the%20Company) Danaos Corporation, a leading containership owner, charters its 71-vessel fleet on multi-year, fixed-rate agreements, managed by Danaos Shipping Co. Ltd Fleet Overview as of February 28, 2022 | Metric | Value | | :--- | :--- | | Number of Containerships | 71 | | Aggregate Capacity (TEU) | 436,589 | | Average Fleet Age (weighted by TEU) | 13.4 years | | Average Remaining Charter Duration (as of Dec 31, 2021) | 4.0 years | - The company's strategy is to charter its vessels on multi-year, fixed-rate period charters to a diverse group of major liner companies, providing stable cash flows. As of December 31, 2021, contracted revenues totaled approximately **$2.85 billion** through 2028[239](index=239&type=chunk)[240](index=240&type=chunk) - Operations are managed by Danaos Shipping Co. Ltd., an entity affiliated with the CEO, under a management agreement that expires on December 31, 2024. The manager provides technical, administrative, and commercial services for fixed daily fees plus a percentage of charter hire[263](index=263&type=chunk)[269](index=269&type=chunk) - The company is subject to extensive environmental regulations from the IMO, EU, and U.S., including rules on air emissions (MARPOL Annex VI), ballast water management (BWM Convention), and oil spills (OPA). Compliance requires significant expenditure and affects vessel operations[295](index=295&type=chunk)[298](index=298&type=chunk)[303](index=303&type=chunk) [Operating and Financial Review and Prospects](index=48&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) Operating revenues increased by **49.4%** to **$689.5 million** in 2021, with net income surging to **$1.05 billion** due to a **$578.0 million** gain on ZIM investment and fleet expansion Financial Performance Summary (2021 vs. 2020) | Metric | 2021 (in millions USD) | 2020 (in millions USD) | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $689.5 | $461.6 | +49.4% | | Net Income | $1,052.8 | $153.5 | +586% | | Adjusted EBITDA | $508.8 | $318.3 | +59.8% | | Net Cash from Operating Activities | $428.1 | $265.7 | +61.1% | - The significant increase in net income for 2021 was primarily due to a **$578.0 million** gain on the company's investment in ZIM, which included a **$543.7 million** change in fair value and **$34.3 million** in dividends[385](index=385&type=chunk)[409](index=409&type=chunk) - In April 2021, the company completed a **$1.25 billion** debt refinancing using proceeds from a new **$815 million** senior secured credit facility, a **$135 million** sale-leaseback arrangement, and **$300 million** in **8.50%** Senior Notes due 2028. This extended debt maturities and improved financial flexibility[348](index=348&type=chunk)[431](index=431&type=chunk) - The company's fleet grew to **71 vessels** by year-end 2021 from **60** in 2020, through the acquisition of **six secondhand vessels** and the consolidation of the **five-vessel Gemini fleet** after acquiring the remaining **51%** equity interest[346](index=346&type=chunk)[348](index=348&type=chunk) [Directors, Senior Management and Employees](index=75&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section outlines the company's leadership, including CEO Dr. John Coustas, executive compensation, board structure, and equity compensation plan - The company is led by President and CEO Dr. John Coustas, who has over **30 years** of experience in the shipping industry and has managed the company since 1987[556](index=556&type=chunk) - Executive officers received aggregate cash compensation of **€1.8 million** (**$2.1 million**) in 2021. Non-executive directors receive an annual fee of **$70,000**, with the audit committee chairman receiving an additional **$15,000**[567](index=567&type=chunk)[568](index=568&type=chunk) - The Board of Directors is classified with staggered three-year terms. As of February 28, 2022, the board consisted of **six members**, with **four** determined to be independent under NYSE rules[555](index=555&type=chunk)[573](index=573&type=chunk)[574](index=574&type=chunk) - The company has an equity compensation plan allowing for the grant of stock awards. In 2021, the company granted a total of **270,000 shares** to executive officers, directors, and employees of the Manager, some of which were fully vested upon grant[586](index=586&type=chunk)[591](index=591&type=chunk)[593](index=593&type=chunk) [Major Shareholders and Related Party Transactions](index=81&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details major shareholders and related party transactions, highlighting DIL's **39.0%** ownership and the **$19.9 million** in 2021 management fees to Danaos Shipping Major Shareholders as of February 28, 2022 | Shareholder | Number of Shares | Percentage of Common Stock | | :--- | :--- | :--- | | Danaos Investment Limited as Trustee of the 883 Trust (DIL) | 8,081,651 | 39.0% | | RBF Capital LLC | 1,435,161 | 6.9% | | All executive officers and directors as a group (8 persons) | 8,497,565 | 41.0% | - The company's manager, Danaos Shipping Co. Ltd., is controlled by DIL, a trust for the benefit of CEO Dr. John Coustas and his family. This creates a significant related party relationship[595](index=595&type=chunk) Fees Paid to Manager (Danaos Shipping) | Year | Management Fees (in millions USD) | | :--- | :--- | | 2021 | $19.9 | | 2020 | $17.7 | | 2019 | $16.8 | - On July 1, 2021, the company exercised its option to acquire the remaining **51%** equity interest in Gemini Shipholdings Corporation from Virage International Ltd., a company controlled by DIL, for **$86.7 million** in cash[612](index=612&type=chunk) [Financial Information](index=87&type=section&id=Item%208.%20Financial%20Information) This section details legal proceedings, including a **$597.9 million** claim against Hanjin Shipping, and the reinstatement of the quarterly cash dividend policy - The company is involved in legal proceedings related to the 2016 bankruptcy of Hanjin Shipping. It has a total unsecured claim of **$597.9 million** and received a partial payment of **$3.9 million** in January 2021[633](index=633&type=chunk)[635](index=635&type=chunk)[636](index=636&type=chunk) - The company reinstated its quarterly cash dividend policy in 2021. It paid three dividends of **$0.50 per share** each during 2021, totaling **$30.9 million**. A dividend of **$0.75 per share** was declared on February 7, 2022, and paid on February 28, 2022[638](index=638&type=chunk) [Additional Information](index=90&type=section&id=Item%2010.%20Additional%20Information) This section covers corporate structure, anti-takeover provisions, and tax considerations, including the Section 883 exemption and PFIC status - As of December 31, 2021, the company had **20,716,738 shares** of common stock outstanding. A **1-for-14** reverse stock split was effected on May 2, 2019[641](index=641&type=chunk)[642](index=642&type=chunk) - The company's articles of incorporation include several anti-takeover provisions, such as a classified board of directors with staggered three-year terms, authorization to issue 'blank check' preferred stock, and prohibitions on certain business combinations with 'interested stockholders' who own **15%** or more of voting stock[652](index=652&type=chunk)[653](index=653&type=chunk)[660](index=660&type=chunk) - The company is a Marshall Islands corporation and is not subject to income or capital gains tax there. It believes it qualifies for the Section 883 exemption from U.S. federal income tax on its U.S.-source shipping income, but this is subject to satisfying either the **50%** Ownership Test or the Publicly-Traded Test, which includes avoiding the '5 Percent Override Rule'[671](index=671&type=chunk)[681](index=681&type=chunk)[687](index=687&type=chunk) - The company believes it should not be treated as a Passive Foreign Investment Company (PFIC) for the 2021 taxable year, but notes legal uncertainties exist, particularly regarding the characterization of time charter income as services versus rental income[709](index=709&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=104&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details market risks, including interest rate risk on floating-rate debt and foreign currency exposure, with **24.0%** of 2021 operating expenses in non-USD currencies - The company is exposed to interest rate risk from its floating-rate debt. A hypothetical **10 basis point** increase in interest rates would result in an estimated **$0.6 million** decrease in earnings for 2022[741](index=741&type=chunk) - The company has foreign currency exchange risk because it generates all revenues in U.S. dollars but incurs a portion of its operating expenses in other currencies. In 2021, approximately **24.0%** of operating expenses were denominated in non-U.S. dollar currencies, primarily the Euro[742](index=742&type=chunk) - As of the report date, the company had no outstanding interest rate swap agreements. Previously used swaps were de-designated from hedge accounting on July 1, 2012, but deferred losses from that period are still being amortized into earnings[732](index=732&type=chunk)[739](index=739&type=chunk) PART II [Controls and Procedures](index=106&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, confirmed by an unqualified auditor opinion - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[749](index=749&type=chunk) - Based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), management concluded that the company's internal control over financial reporting was effective as of December 31, 2021[753](index=753&type=chunk)[754](index=754&type=chunk) - The independent auditor, PricewaterhouseCoopers S.A., provided an attestation report confirming the effectiveness of the company's internal control over financial reporting as of December 31, 2021[756](index=756&type=chunk) [Corporate Governance and Other Matters](index=107&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This section details corporate governance, including the audit committee financial expert, accountant fees, and differences from NYSE standards as a foreign private issuer - The Board of Directors has identified Myles R. Itkin as the audit committee financial expert[758](index=758&type=chunk) Principal Accountant Fees (PricewaterhouseCoopers S.A.) | Service Category | 2021 (in thousands USD) | 2020 (in thousands USD) | | :--- | :--- | :--- | | Audit fees | $497.1 | $456.4 | | Audit-related fees | — | — | | **Total fees** | **$497.1** | **$456.4** | - As a foreign private issuer, the company's corporate governance practices differ from NYSE standards for U.S. domestic companies. Key differences include having a non-independent director on the Nominating and Corporate Governance Committee and not requiring shareholder approval for certain equity issuances, as permitted by Marshall Islands law[769](index=769&type=chunk)[770](index=770&type=chunk)[771](index=771&type=chunk) PART III [Financial Statements](index=109&type=section&id=Item%2018.%20Financial%20Statements) This section presents the audited consolidated financial statements for 2019-2021, prepared under U.S. GAAP, with an unqualified opinion from PricewaterhouseCoopers S.A - The report includes the audited consolidated financial statements for the three years ended December 31, 2021, prepared in conformity with U.S. GAAP[777](index=777&type=chunk)[784](index=784&type=chunk) - The independent registered public accounting firm, PricewaterhouseCoopers S.A., provided an unqualified opinion on both the consolidated financial statements and the company's internal control over financial reporting as of December 31, 2021[785](index=785&type=chunk)[786](index=786&type=chunk) - A critical audit matter identified was the valuation of time charters assumed on the acquisition of vessels, which involved significant management judgment regarding assumptions like prevailing market charter rates[793](index=793&type=chunk)[794](index=794&type=chunk) [Exhibits](index=109&type=section&id=Item%2019.%20Exhibits) This section lists all exhibits filed with the annual report, including corporate documents, major financing agreements, and management agreements - Key exhibits filed with the report include foundational corporate documents, major financing agreements, and related party agreements[778](index=778&type=chunk) - Significant contracts listed as exhibits are the Indenture for the Senior Notes, the Amended and Restated Management Agreement with Danaos Shipping, and the **$815 million** Senior Secured Credit Facility agreement[778](index=778&type=chunk)

Danaos Corporation (NYSE:DAC) Q4 2021 Earnings Conference Call February 8, 2022 9:00 AM ET Company Participants Evangelos Chatzis – Chief Financial Officer John Coustas – Chief Executive Officer Conference Call Participants Randy Giveans – Jefferies Omar Nokta – Clarksons Chris Wetherbee – Citigroup Jay Mintzmyer – Value Investor’s Edge Operator Good day, and welcome to the Danaos Corporation conference call to discuss the financial results for the three months ended December 31, 2021. As a remainder, toda ...

Investor Presentation ill 5 November 2021 Disclaimer This presentation contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the outlook for fleet utilization and shipping rates, general industr ...

Business Overview - Danaos has a charter backlog of $2.1 billion through 2028 with world leading liner companies[12] - The company has strong operating days contract coverage of 100% for the remainder of 2021 and 90% for 2022[15] - Danaos met the IMO 2030 carbon intensity targets 11 years ahead of requirements in 2019 and continues to meet the target with a 45% reduction in CO2 emissions per ton miles for year 2020 compared with base year 2008[20] Financial Performance - Danaos' LTM Adjusted EBITDA is $433 million[30] - The company's Net Debt / LTM Adjusted EBITDA ratio is 3.1x[30] - Operating Revenue increased by $77 million in Q3 2021 due to higher charter rates and vessel acquisitions[42] - Adjusted Net Income increased by $77 million in Q3 2021[42] Fleet and Market Dynamics - The current industry order-book is about 23.5% involving deliveries through 2025[29] - Trade yoy Growth is 8.2% in 2021(E) and 4.3% in 2022(F)[80, 79] - The volume of idle capacity remains at historical lows, with 0.6% Idle Fleet at End-Oct 21 vs a peak of 12% in Jun 20[85]

Danaos Corporation (NYSE:DAC) Q3 2021 Earnings Conference Call November 9, 2021 9:00 AM ET Company Participants John Coustas – Chief Executive Officer Evangelos Chatzis – Chief Financial Officer Conference Call Participants Randy Giveans – Jefferies Eli Winski – Citi J Mintzmyer – Value Investor's Edge Omar Nokta – Clarkson Securities Operator Good day and welcome to the Danaos Corporation Conference Call to discuss the financial results for the 3 months ended September 30th, 2021. As a reminder, today's ca ...