Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q4 2020 Earnings Presentation
19 slides from Norwegian Cruise Line's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter and Full Year 2020 Earnings Conference Call
FOURTH QUARTER AND FULL YEAR 2020 EARNINGS CONFERENCE CALL FEBRUARY 25, 2021
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT Some of the statements, estimates or projections contained in this presentation are “forward-looking statements” within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation Re
Slide 3: Key Events Since Q3 2020 Earnings Call
KEY EVENTS SINCE Q3 2020 EARNINGS CALL November 17 Company launches common equity offering of 40M shares raising $824M Norwegian Cruise Line launches joint effort with its partner JUST® Goods, Inc. to support GivingTuesday by providing donations to December 1 local food banks in Miami and New York C
Slide 4: Navigating Through COVID-19
NAVIGATING THROUGH COVID-19 Addressed ▪ Announced voyage suspension through May 31 across all three brands Significant ✓ Operational Challenges ▪ Majority of ships are at or transitioning to reduced manning status ▪ Repatriating certain crew members ▪ Raised ~$6.5 billion from various sources since
Slide 5: Roadmap to Relaunch and Resumption of Cruise Voyages
ROADMAP TO RELAUNCH AND RESUMPTION OF CRUISE VOYAGES 1 2 3 4 Activate Sales Develop Address and Initiate Enhanced Global Port Marketing Gradual Health and Availability Machine and Phased Safety and Travel Stimulate Relaunch Protocols Restrictions Demand ▪ Healthy Sail Panel ▪ Industry cruising re- ▪
Slide 6: Booking Trends Update
BOOKING TRENDS UPDATE ◼ Continued strong demand for future cruise vacations, despite reduced marketing investments. ◼ Cumulative booked position for 2H 2021 remains below historical levels, driven by continued uncertainty around timing of the resumption of cruising and the shift of limited marketing
Slide 7: COVID-19 Financial Action Plan
COVID-19 FINANCIAL ACTION PLAN Q420-Q121 Initiatives 1 Transitioning all vessels to expected reduced manning status Further Reduction of ▪ ▪ Extended furloughs and temporary pay reductions for certain shoreside team members Operating Expenses & ▪ Reductions or deferrals of near-term marketing expens
Slide 8: Improved Debt Maturity Profile
Action Plan IMPROVED DEBT MATURITY PROFILE Debt Maturity Profile ($ in Billions) Facilities $5.1 typically would be refinanced prior to maturity $2.5 $1.2 $1.3 $0.9 $1.0 $0.1 2021 2022 2023 2024 2025 2026 Thereafter ECA Loans, Capital Leases & Other Norwegian Jewel Term Loan 3.625% Senior Unsecured
Slide 9: Illustrative Liquidity Profile
ILLUSTRATIVE LIQUIDITY PROFILE Illustrative Liquidity ($ in Billions) Liquidity (As of 31-Dec) ~$3.3 (-) Customer refunds payable (As of 31-Dec) ~($0.1) Total Liquidity ~$3.2B Estimated health and safety initiatives and other ~($0.3) collateral obligations Net Liquidity ~$2.9B ◼ Q4 2020 average cash
Slide 10: Fourth Quarter Sources and Uses of Cash
FOURTH QUARTER SOURCES AND USES OF CASH Cash and cash equivalents increased in Q4 as a result of capital raises *Cash burn includes operating expenses, SG&A, interest expense and capital expenditures. Working capital and other is net of cash collections and includes health and safety investments. 10
Slide 11: Medium and Long-Term Financial Recovery Plan
MEDIUM AND LONG-TERM FINANCIAL RECOVERY PLAN 1 2 3 Maximize Cash Flow Optimize Rebuild Margins Balance Sheet Generation Upon resumption of voyages, attention will shift to medium and long-term financial recovery plan 11
Slide 12: Strong Commitment to ESG Initiatives
STRONG COMMITMENT TO ESG INITIATIVES ■ Global sustainability program, Sail & Sustain, is a core focus in everyday operations ■ Dedicated ESG1 department to enhance overall ESG strategy and coordinate across the organization ■ ESG oversight by executive team and TESS2 Committee of the Board of Direct
Slide 13: Key Takeaways
KEY TAKEAWAYS ▪ Continue to develop enhanced health and safety protocols ▪ Address global port availability and travel restrictions Continued Focus on ▪ Activate sales and marketing machine and stimulate Roadmap to Relaunch demand ▪ Initiate gradual phased relaunch ▪ Booking trends continue to indic
Slide 14: Appendix
APPENDIX NORWEGIAN CRUISE LINE 14 BSS HoLpines LTD.
Slide 15: Healthy Sail Panel Members
HEALTHY SAIL PANEL MEMBERS The Healthy Sail Panel (HSP), assembled in collaboration with Royal Caribbean Group and led by co-chairs Governor Mike Leavitt and Dr. Scott Gottlieb, consists of a group of globally recognized experts in public health, infectious diseases, medical research and maritime op
Slide 16: Health and Safety
HEALTH AND SAFETY ◼ The Healthy Sail Panel (HSP), a group of globally recognized scientific and medical experts assembled in collaboration with Royal Caribbean Group, provided 74 detailed health and safety recommendations across five focus areas to reduce the risk of COVID-19 on cruise ships. ◼ Our
Slide 17: Secured Additional Capital
Action Plan SECURED ADDITIONAL CAPITAL Revolver Addition ▪ Secured new short-term $675M revolving credit facility and drew down total amount of new and existing revolving credit facilities, resulting in ~$1.55 billion of cash added to the balance (March) sheet ▪ $675M of 12.25% senior secured notes
Slide 18: Fuel Hedge Program
FUEL HEDGE PROGRAM NCLH Fuel Hedge Program as of 12/31/2020 2021 2022 2023 % of HFO Consumption 44% 15% 0% Hedged1 Average USGC Price / $46.19 $48.36 N/A Barrel % of MGO Consumption 70% 56% 25% Hedged Average Gasoil Price / $81.12 $70.00 $67.45 Barrel Total % of Consumption 59% 37% 15% Hedged 1) The
Slide 19: 2021-2023 Outlook
2021-2023 OUTLOOK $ Billions 2021 2022 2023 Depreciation & Amortization $0.7 Interest Expense, net $0.651 Newbuild-Related Capital Expenditures, $0.4 $1.6 $2.5 Pre-Financing2 Export Credit Financing for Newbuild- $0.2 $0.8 $1.8 Related Capital Expenditures Newbuild-Related Capital Expenditures, $0.2
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