Carnival Corporation Ltd. · NYSE:CCL
Carnival — Q3 2024 Earnings Presentation
23 slides from Carnival's earnings presentation, Sep 30, 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: 3
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Slide 4: Outperformed Third Quarter June Guidance On Every Measure
Outperformed Third Quarter June Guidance On Every Measure 3Q 2024 Guidance Actual Net yields vs 2023 Approx. 8.0% 8.7% Adj. cruise costs excl. fuel per ALBD vs 2023 Approx. 4.5% (0.3%) Adj. EBITDA Approx. $2.66B $2.82B Adj. net income/(loss) Approx. $1.58B $1.75B Adj. earnings per share - diluted Ap
Slide 5: Unit Operating Performance Achieving Highest Levels in 15 Years
Unit Operating Performance Achieving Highest Levels in 15 Years Adj. EBITDA per ALBD Operating Income per ALBD $112 $86 +20% +26% $94 $68 3Q'23 3Q'24 3Q'23 3Q'24 Record Adj. EBITDA of $2.8B, up $600M vs. Q3 2023 and $160M vs. June Guidance 5
Slide 6: Positive Trends from Third Quarter Expected to Continue into Fourth Quarter
Positive Trends from Third Quarter Expected to Continue into Fourth Quarter Net Yield Growth ~5.0% 8.7% 7.8% 1.2% 3Q 4Q 2024 vs. 2023 2023 vs. 2019 4Q 2024 Net Yields expected to be up 5% on particularly strong 2023 levels Note: 4Q 2024 Net Yield expected to be up ~5.0% per 2024 September Guidance 6
Slide 7: Timing of Costs Varies Between Quarters
Timing of Costs Varies Between Quarters 2024 Adjusted Cruise Costs excl. Fuel per ALBD – YoY Change 1Q and 4Q driven by higher drydock days and higher advertising investment ~8.0% 7.3% 2024 June Guidance ~4.5% ~3.5% 1Q 2Q (0.2%) 3Q (0.3%) 4Q FY 1Q 2Q 3Q 4QE FYE Full year 2024 cost guidance improved
Slide 8: Taking Up Full Year 2024 Guidance For the Third Time This Year
Taking Up Full Year 2024 Guidance FOR THE THIRD TIME THIS YEAR Full Year 2024 Dec Guidance Mar Guidance Jun Guidance Sep Guidance Net yields vs 2023 Approx. 8.5% Approx. 9.5% Approx. 10.25% Approx. 10.4% Adj. cruise costs excl. fuel per ALBD vs Approx. 4.5% Approx. 5.0% Approx. 4.5% Approx. 3.5% 202
Slide 9: 2025 Bookings Hitting New Historical Highs
2025 Bookings Hitting New Historical Highs Price Improvement in 2025 Booked Position vs. Prior Year = Improvement vs. Prior Quarter 2025 Sailings Full Year 2025 Booked Position Historical high on price Historical high on occupancy Nearly half of 2025 already on the books All core deployments at high
Slide 10: Strong Bookings Activity Continuing to Drive Growth in Customer Deposits
Strong Bookings Activity Continuing to Drive Growth in Customer Deposits Record Customer Deposits In Billions +$1.9B Structural growth in customer deposits driven by: Strong demand at higher prices 5.5 $6.8 Lengthening the booking curve $6.3 Increasing bundled fares with onboard amenities $4.9 Incre
Slide 11: Onboard Revenue Growth Accelerating
Onboard Revenue Growth Accelerating Onboard Revenue Per Diem YoY Growth(a) Pre-Cruise Sales Growth(b) 42% 6% +3 ppts. +5 ppts. 3% 37% 2Q 2024 3Q 2024 2Q 2024 3Q 2024 Pulling forward onboard spend supports continued onboard revenue growth (a) Onboard & Other Revenue Per Diem Growth in current dollars
Slide 12: Sun Princess Upcoming North American Premiere (October 2024)
Sun Princess Upcoming North American Premiere (October 2024) Princess Cruises’ Most Innovative Ship Sister Ship Star Princess to Come in October 2025 12
Slide 13: Proactively Managing Our Debt Profile
Proactively Managing Our Debt Profile >$7B Prepayments of Above Average Interest Rate Debt Financing Activity Highlights Since Beginning of 2023 (In Billions) $7.3 Prepaid another $625M of debt since June 2024 $1.6 Other Loans Increased borrowing capacity under revolving credit $1.0 Debt Holiday fac
Slide 14: All SEA Change Metrics for FYE 2024 Improved in Last Three Months
All SEA Change Metrics for FYE 2024 Improved in Last Three Months Sustainability: >20% Carbon Intensity 50% Increase in Adj. BITDA E 12% Adj. ROIC Reduction per ALBD vs. 2023 In Tons Per Berth Day vs. 2019 (20%) $69 12% +~38% ~$63 ~10.5% (~17.5%) (15%) $46 5% 2 2023 0 2 3 JJune UNE 2 0 22024 4 SEP 2
Slide 15: Creating Value for Our Stakeholders and Delivering Unforgettable Vacations
Creating Value for Our Stakeholders and Delivering Unforgettable Vacations to Our Guests Refinancing higher coupon 2026 debt and reducing interest expense Achieving our SEA Change 2025+ Targets Taking delivery of one new More than two-thirds of ship: Star Princess, sister to the Expansion of Celebra
Slide 16: 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 17: Projected Capacity by Market – 2025
Projected Capacity by Market – 2025 1Q 2Q 3Q 4Q Full Year Caribbean 48% 33% 25% 29% 34% Northern Europe 10% 17% 24% 17% 17% Mediterranean 3% 13% 21% 19% 14% Australia/New Zealand 10% 6% 3% 5% 6% Alaska 0% 4% 16% 4% 6% Other Programs 29% 27% 11% 26% 23% Total 100% 100% 100% 100% 100% Note: The above
Slide 18: Sustainability Focus Areas
Climate Good Health Action & Well-Being Investing in low- and zero-carbon emission technologies, and SUSTAINABILITY Expanding well-being programs to support employees’ physical & advanced air quality solutions; partnering with others to advance FOCUS AREAS mental health, encourage social connectivit
Slide 19: Guidance
Guidance CARNIVAL OO ———— CORPORATION&PLC. 4Qz0n4 Full Year 2024 ‘Current Constant ‘Current Constant “Yous over year change Dellaes Currency Dolls Currency Net yields Appice. 70% Approx 50% Approx LOW Agprox 10.4% “Adjueed crite cote exeladiag fol per ALi ApPIOE 9.5% Approx 0% Approx 40% Approx 3.5%
Slide 20: 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 21: 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 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 22
Slide 23: Reconciliation of Net Yields and Net Per Diems
Reconciliation of Net Yields and Net Per Diems 23
Carnival Corporation Ltd. Common Shares — Q3 2024 Earnings Presentation on 6ix