Carnival Corporation Ltd. · NYSE:CCL
Carnival — Carnival Corporation & — Q3 2023 Earnings Presentation
33 slides from Carnival's earnings presentation, 2023
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 Third Quarter Across Key Metrics
Record Third Quarter Across Key Metrics Revenue Booking Volumes Customer Deposits In Billions Booked OLBDs for All Future Sailings In Billions $6.9 +5% $6.5 +18% $6.3 +29% $4.9 3Q'19 3Q'23 3Q'19 3Q'23 3Q'19 3Q'23 2
Slide 4: Strength in Demand Delivered Outperformance Again…
Strength in Demand Delivered Outperformance Again… 3Q 2023 Guidance Actual Occupancy percentage 107% or higher 109% Net per diems vs 2019 3.5 – 4.5% 4.9% Adj cruise costs exc. fuel per ALBD vs 2019 14.5 - 15.5% 15.1% Adj EBITDA $2,050M - $2,150M $2,221M Adj net income/(loss) $950M - $1,050M $1,176M
Slide 5: …And Raised Expectations for Full Year 2023 Revenue and Net Income Guidance
…And Raised Expectations for Full Year 2023 Revenue and Net Income Guidance Overcoming $130M Drag from Fuel Price & Currency Full Year 2023 June Guidance September Guidance Occupancy percentage 100% or higher 100% or higher Net per diems vs 2019 5.5% - 6.5% Approx. 7.0% Adj cruise costs exc. fuel pe
Slide 6: Continuing to Manage Fuel Costs the Best Way Possible… By Consuming Less
Continuing to Manage Fuel Costs the Best Way Possible… By Consuming Less Fuel Tons Consumed per kALBD by Year Continuing to Reduce Fuel Consumption Industry Leading Fuel Efficiency Fuel Consumption in 2023E +35% (~16%) +10% 43 38 35 32 32 2019 2023E CARNIVAL PEER 1 PEER 2 CORPORATION Reduction in fu
Slide 7: Continued Progress in Underlying Unit EBITDA
Continued Progress in Underlying Unit EBITDA 2023 Adjusted EBITDA per ALBD Holding Fuel Price and Currency Constant to 2019 ~100% 90% Expected ~85% 73% 59% 1Q 2Q 3Q 4QE 6
Slide 8: Our Demand Generation Efforts Are Clearly Working Across All Regions
Our Demand Generation Efforts Are Clearly Working Across All Regions As You Can See in Our… The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them • Actual Results • Forward Guidance • Booked Position • Recent Trends
Slide 9: Optimizing Revenue and Demand Generation
Optimizing Revenue and Demand Generation Areas of Focus ✓ Brand Positioning ✓ Creative Marketing ✓ Digital Performance Marketing ✓ Trade Relationships Strength ✓ Internal Sales Support ✓ Deployment and Itinerary Planning ✓ Revenue Management Execution ✓ Onboard Revenue Maximization ✓ Onboard Guest E
Slide 10: Strategic Focus to Drive Demand Delivers Sequential Yield Improvement
Strategic Focus to Drive Demand Delivers Sequential Yield Improvement and Continued Positive Trajectory 2023 Net Per Diems as % of 2019 2023 Occupancy as % of 2019 2023 Net Yields as % of 2019 = St. Petersburg 2019 impact ~107% 105% 100% 100% 100% 98% 94% 87% 85% 85% 85% 1Q 2Q 3Q 4QE 1Q 2Q 3Q 4QE 1Q
Slide 11: Booking Volumes Running at Multiples of Capacity Growth Across Both Regions
Booking Volumes Running at Multiples of Capacity Growth Across Both Regions Booking Volumes vs. Comparable 2019 Levels All Future Sailings North America(a) Europe(b) Combined Cruise 120% 118% 115% 104% 100% 100% 100% 93% 76% 75% 75% 75% 4Q'22 1Q'23 2Q'23 3Q'23 4Q'22 1Q'23 2Q'23 3Q'23 4Q'22 1Q'23 2Q'
Slide 12: Lengthened Booking Curve on Improved Revenue Management Execution
Lengthened Booking Curve on Improved Revenue Management Execution Average Months Booked Before Sailing as % of 2019 North America(a) Europe(b) Combined Cruise 104% 103% 100% 100% 100% 98% 94% 87% 76% 75% 75% 75% 4Q'22 1Q'23 2Q'23 3Q'23 4Q'22 1Q'23 2Q'23 3Q'23 4Q'22 1Q'23 2Q'23 3Q'23 Less inventory r
Slide 13: Continuing to Invest to Build Future Demand
Continuing to Invest to Build Future Demand ADJ CRUISE COSTS EXC. FUEL PER A&P SPEND PER ALBD 2019 A&P SPEND PER ALBD ALBD VS. 2019 AMONG PEERS $21 ~11.0% +~17% $11 ~1.5% $9 2023E $1 A&P ~9.5% 2019 Actual $8 Adj Cruise Costs ex. A&P 2023E 2019 2023E CARNIVAL PEER 1 PEER 2 CORP Strategic advertising
Slide 14: Driving Demand Through Digital Performance Marketing
Driving Demand Through Digital Performance Marketing Percentage Growth in Percentage Growth in Percentage Growth in Web Visits Paid Search Clicks Natural Search Visits +~85% +~50% +~35% 3Q'19 3Q'23 3Q'19 3Q'23 3Q'19 3Q'23 Building ongoing pipeline of new demand 13
Slide 15: Demand Generation Efforts Delivering New to Cruise Guests
Demand Generation Efforts Delivering New to Cruise Guests New Guests Sailed as % of 3Q'19 Total Volume of Guests Sailed 101% 64% 7% 3Q'21 3Q'22 3Q'23 4Q'22 1Q'23 2Q'23 3Q'23 New to Cruise New to Brand Brand Repeaters New to Cruise New to Brand Well over 2.5M new to cruise guests sailed so far this y
Slide 16: Our Revenue Base is Recurring, Visible, and Predictable…
Our Revenue Base is Recurring, Visible, and Predictable… Recurring Visible Predictable ~55% >50% ~40% Of onboard revenues Of our guests are Of next-twelve-months are pulled forward by repeat cruisers demand booked pre-cruise sales …with significant room for improvement 15
Slide 17: Driving Onboard Revenue Growth Through Multiple Wallets
Driving Onboard Revenue Growth Through Multiple Wallets Up to 24 Months Prior Until 3 Days Prior During Phase: Purchase Cruise Package ($) Pre-Cruise ($$) Onboard ($$$) Revenue Introducing More Targeted Special Offers Additional Amenities and Experiences Opportunity Bundled Offers Pre-Cruise Onboard
Slide 18: Creating Excitement Around Our New Ships and Destinations
Creating Excitement [Carnival Around Our New Ships and Destinations Venezia Placeholder] The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Seabourn Pursuit [Carnival Venezia]
Slide 19: Welcomed Our Newest Zodiacs
Welcomed Our Newest 24 Zodiacs [Carnival Venezia Placeholder] Ultra-Luxury Expedition Ship The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Pursuit Seabourn Pursuit [Carnival Venezia] 2 Custom-Built Submarines
Slide 20: Leaning Into Our Unrivaled Destination Footprint
Leaning Into Leaning OurOur Into Unrivaled Destination Unrivaled Footprint Destination Footprint Unveiling Celebration Key 19
Slide 21: Actively Managing Down Our Debt and Reducing Interest Expense
Actively Managing Down Our Debt and Reducing Interest Expense 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 22: $3.4B of Opportunistic Prepayments in Addition to Scheduled Maturities
$3.4B of Opportunistic Prepayments in Addition to Scheduled Maturities 2023 Scheduled Maturities and Prepayments Total Principal Repayments (In Billions) $2.7 $1.6 $2.3 $1.1 $0.7 $0.6 $0.4 $0.5 1Q 2Q 3Q 4Q Scheduled Maturities Prepayments 21
Slide 23: Accelerating Deleveraging Efforts
Accelerating Deleveraging Efforts 2023 Total Debt In Billions >10% decrease since our peak $35 $34 $31 1Q 2Q 3Q Expect year-end debt to be just under $31B, less than previous expectation of $33B 22
Slide 24: Manageable Near-Term Maturities Plus Other Levers
Manageable Near-Term Maturities Plus Other Levers Maturity Schedule(a) Levers Export Credits Available Total Principal Repayments (In Billions) In Billions In Billions $5.7B liquidity as of 3Q’23 $3.0 $2.6 $2.2 $0.4 $2.0 $0.2 $0.4 $0.9 $0.9 $0.4 $0.0 $1.2 $1.2 $1.3 2024 2025 Convertible Maturity Exp
Slide 25: Strong Momentum Heading into 2024 and Beyond
Strong Momentum Heading into 2024 and Beyond Booking volumes running at multiples of our capacity growth and significantly ahead of STLY 2024+ Improved fleet with Increasing margins, Adjusted 2024 nearly a quarter of EBITDA per ALBD, and capacity new, providing Occupancy returning to Adjusted ROIC b
Slide 26: 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 27: Guidance
‘o Guidance CARNIVAL Eee CORPORATION&PLC. 4Q 2023 Full Year 2023 ‘Current Constant Curent Constant CChaage compared 102018 Dollars Carrency Dollars Currency Repco 5596165 70% SOE Approx 55% Approx 70% Adjusted cruise costs excluding fuel per ALBD 8.5% to 9.5% 10.0% to 11.0% Approx. 9.5% Approx. 11.0
Slide 28: Capacity by Market – 2023
Capacity by Market – 2023 1Q 2Q 3Q 4Q Full Year Caribbean 44% 32% 24% 27% 31% Northern Europe 9% 15% 27% 17% 17% Mediterranean 5% 12% 19% 20% 14% Australia/New Zealand 10% 8% 4% 8% 8% Alaska 0% 5% 17% 5% 7% Other Programs 32% 28% 9% 23% 23% Total 100% 100% 100% 100% 100% 27
Slide 29: Our Sustainability Strategy: Sustainable From Ship to Shore
Our Sustainability Strategy Sustainable From Ship to Shore Climate Action Circular Economy Good Health & Well-Being Improving ship energy efficiency, and Minimizing the waste generated by our Expanding well-being programs to testing and investing in new low and operations and activities, and support
Slide 30: 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 31: 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 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 31
Slide 33: Reconciliation of Net Yields and Net Per Diems
Reconciliation of Net Yields and Net Per Diems 32
Carnival Corporation & — Q3 2023 Earnings Presentation on 6ix