Carnival Corporation Ltd. · NYSE:CCL
Carnival — Carnival Corporation & — Q2 2024 Earnings Presentation
26 slides from Carnival's earnings presentation, Aug 1, 2024
Slide 1: The page numbering is dependent on the placeholder text boxes on the page layout
The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them
Slide 2: Disclaimers, Forward Looking Statements and Responsibility
Disclaimers, Forward Looking Statements and Responsibility This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to, Adjusted EBITDA, Adjusted Net Income (loss), and certain ratios and metri
Slide 3: Record Revenues, Operating Income, Booking Levels, Customer Deposits
Record Revenues Record Operating Income Record Booking Levels Record Customer Deposits 3
Slide 4: Record Revenues
Record Revenues Net Per Diems Occupancy Net Yields +12% +6% +6% pts. 2Q'23 2Q'24 2Q'23 2Q'24 2Q'23 2Q'24 Fourth consecutive quarter of record net yields and sixth consecutive quarter of record net per diems Net Per Diems and Net Yields in Constant Currency to 2023; Reconciliation of Net Per Diems an
Slide 5: Outperformed Second Quarter Guidance On Every Measure
Outperformed Second Quarter Guidance On Every Measure… 2Q 2024 Guidance Actual Net yields vs 2023 Approx. 10.5% 12.2% Adj cruise costs exc. fuel per ALBD vs 2023 Approx. 3.0% (0.2%) Adj EBITDA Approx. $1.05B $1.20B Adj net income/(loss) Approx. ($35M) $134M Adj earnings per share - diluted Approx. (
Slide 6: Taking Up Full Year 2024 Guidance AGAIN
…Taking Up Full Year 2024 Guidance AGAIN Full Year 2024 Mar Guidance Jun Guidance Net yields vs 2023 Approx. 9.5% Approx. 10.25% Adj cruise costs exc. fuel per ALBD vs 2023 Approx. 5.0% Approx. 4.5% Adj EBITDA Approx. $5.63B Approx. $5.83B Adj net income/(loss) Approx. $1.28B Approx. $1.55B Adj earn
Slide 7: Executing on Our Yield Management Strategy – Base Loading Supports Ongoing Price Improvement
Executing on Our Yield Management Strategy – Base Loading Supports Ongoing Price Improvement Price Improvement in Booked Position vs. Prior Year = Improvement vs. Prior Quarter 3Q 2024 Sailings 4Q 2024 Sailings As of: End 4Q 2023 End 1Q 2024 End 2Q 2024 As of: End 4Q 2023 End 1Q 2024 End 2Q 2024 Boo
Slide 8: Unprecedented Level of Demand for 2025
Unprecedented Level of Demand for 2025 Volumes 2Q 2024 Booking Activity 2025 Booked Position vs. Prior Year Over half of bookings in 2Q’24 were for sailings in Ahead on Price future years Ahead on Occupancy Less inventory remaining for sale Combined 2024 Cruise2026 2025 Strong demand with flat capac
Slide 9: New-to-Cruise and Repeat Guests both up 10% vs. 2Q 2023
New-to-Cruise and Repeat Guests both up 10% vs. 2Q 2023 9
Slide 10: Actively Managing the Portfolio Towards Our Highest Returning Brands
Actively Managing the Portfolio Towards Our Highest Returning Brands Capacity Evolution as a % of Our Total Fleet 2019: 245k Total Lower Berths 2028: 283k Total Lower Berths 29% 37% 43% 48% 52% 57% Consolidating P&O Cruises (Australia) into Carnival Cruise Line in 2025 10
Slide 11: Welcomed Queen Anne
Welcomed Queen Anne Cunard’s First New Ship in 14 Years Historic Naming Celebration in Liverpool, Cunard’s Spiritual Home First Time in History an Entire City Christened a Ship 11
Slide 12: Welcomed Sun Princess
Welcomed Sun Princess Princess Cruises’ Most Innovative Ship 12
Slide 13: Welcomed Carnival Firenze
Welcomed Carnival Firenze Bringing Fun Italian Style to the West Coast 13
Slide 14: Completion of Starlink Rollout is a Win-Win-Win
Completion of Starlink Rollout is a Win-Win-Win Quadruples our fleetwide bandwidth rivalling on-land connectivity ✓ Provides our guests with more flexibility to stay as connected as they’d like on vacation ✓ Allows our crew to stay in touch with friends and loved ones ✓ Enhances our onboard operatio
Slide 15: Made Cumulative Debt Payments of ~$10B Incl. ~$7B of Prepayments
Made Cumulative Debt Payments of ~$10B Incl. ~$7B of Prepayments Scheduled Maturities and Prepayments In Billions $9.6 $3.0 $6.1 $1.0 Other Loans $2.1 $1.0 Debt Holiday $3.6 $0.9 Senior Notes 5.8% - 7.6% $0.9 $6.6 $2.1 Second Lien 9.9% - 10.5% $4.0 $2.6 $1.6 First Lien 7.6% 2023 2024 YTD Cumulative
Slide 16: Manageable Near-Term Debt Maturity Profile
Manageable Near-Term Debt Maturity Profile Maturity Schedule(a) Total Principal Repayments (In Billions) $2.8 $0.1 $1.7 $1.4 $0.4 $1.2 $0.1 $0.4 $1.3 $1.3 $0.7 2024 2025 2026 Export Credits Convertible Maturity Notes Other Substantial free cash flow and lowest newbuild orderbook in decades to improv
Slide 17: Ahead of Schedule On Achieving Our 2026 SEA Change Targets
Ahead of Schedule On Achieving Our 2026 SEA Change Targets Adj EBITDA per ALBD Adj ROIC Greenhouse Gas Intensity (Reduction) In Tons Per Berth Day vs. 2019 +50% 12% (20%) $69 +~33% ~10% (~17%) ~$61 (15%) $46 5% 2 02023 2 3 JJune UNE Y E 2024 2024E 2 02026 2 6 TTarget ARGET 2023 20 2 3 JJune UNE Y E
Slide 18: Turning Our Attention to Delivering an Even Stronger 2025
Turning Our Attention to Delivering an Even Stronger 2025, Building on a Strong 2024 2024+ Averaging two-thirds of the way to achieving our 2026 SEA Change targets 2024+ Increasing margins, Adj EBITDA per ALBD, and Adj Vast majority of the year on the Improved fleet providing ROIC books at considera
Slide 19: Appendix
The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Appendix
Slide 20: Capacity by Market – 2024
Capacity by Market – 2024 As of 2024 June Guid 1Q 2Q 3Q 4Q Full Year Caribbean 46% 34% 26% 30% 34% Northern Europe 10% 15% 24% 17% 17% Mediterranean 4% 12% 20% 18% 14% Australia/New Zealand 11% 7% 3% 7% 7% Alaska 0% 4% 16% 5% 6% Other Programs 30% 28% 11% 24% 23% Total 100% 100% 100% 100% 100% 20
Slide 21: Our Sustainability Strategy
Our Sustainability Strategy Sustainable From Ship to Shore Climate Action Circular Economy Good Health & Well-Being Improving ship energy efficiency and Minimizing waste and maximizing Expanding and encouraging investing in low and zero carbon reuse employee well-being programs emission technologies
Slide 22: Guidance
‘o Guidance CARNIVAL CORPORATION&PLC. 3Q2024 Full Year 2024 ‘Current Constant ‘Current ‘Constant ‘Year over year change Dollars Currency: Dollars Carreney. Net yields ‘Approx $0% Aprox 8.0% Approx. 105% Approx 10.25% Adjusted cruise costs excluding fuel perALBD —Approx.4.59% Approx. 4.5% Approx 75%
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use non-GAAP financial measures and they are provided along with their most comparative U.S. GAAP financial measure: The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the finan
Slide 24: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non- GAAP measures prov
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 25
Slide 26: Reconciliation of Net Yields and Net Per Diems
Reconciliation of Net Yields and Net Per Diems 26
Carnival Corporation & — Q2 2024 Earnings Presentation on 6ix