Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q1 2021 Earnings Presentation
21 slides from Norwegian Cruise Line's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
FIRST QUARTER 2021 EARNINGS CONFERENCE CALL May 6, 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 Q4 2020 Earnings Call
KEY EVENTS SINCE Q4 2020 EARNINGS CALL Launches offering of $575M of 5.875% senior unsecured notes due 2026 and $525M of 6.125% senior unsecured notes due 2028. March 1 Proceeds used in part to repay Norwegian Jewel and Pride of America credit facilities. Launches common equity offering issuing ~53M
Slide 4: Return to Service Plan
RETURN TO SERVICE PLAN ▪ Unveiled SailSAFETM health and safety program with rigorous protocols developed with guidance Develop from expert advisors and spanning the entire cruise journey. Multi-Layered ▪ Committed to 100% vaccination of all guests and crew on all initial voyages in addition to SailS
Slide 5: Two-Pronged Voyage Resumption Plan
TWO-PRONGED VOYAGE RESUMPTION PLAN Voyages Originating Outside of the U.S. Voyages Originating From U.S. Ports ■ Norwegian Cruise Line: Initial restart with sailings originating in ■ Submitted letter to CDC on April 5th outlining request to Jamaica, Dominican Republic and Greece beginning in July re
Slide 6: SailSAFE Health and Safety Program
SAILSAFE HEALTH AND SAFETY PROGRAM ◼ The Company’s multi-layered SailSAFETM program consists of a comprehensive set of new and enhanced health and safety standards in response to the current public health environment. ◼ Cornerstone of program is mandatory vaccinations for 100% of all guests and crew
Slide 7: SailSAFE Global Health and Wellness Council
SAILSAFE GLOBAL HEALTH AND WELLNESS COUNCIL ◼ Strengthened depth and breadth of expert advisors with the establishment of company-specific expert panel, the SailSAFE Global Health and Wellness Council. ◼ Comprised of six experts at the forefront of their fields and led by Dr. Scott Gottlieb, former
Slide 8: Booking Trends Update
BOOKING TRENDS UPDATE ◼ Continued strong demand for future cruise vacations, despite reduced demand-generating marketing investments. ◼ During Q1 2021, overall bookings, net of cancellations, were more than double the volumes during the prior quarter. ◼ Booking window continues to expand, nearly dou
Slide 9: Oceania Cruises Newest Ship: Vista
OCEANIA CRUISES NEWEST SHIP: VISTA ◼ Introduced Vista, the first of two new 1,200-guest Allura Class ships for Oceania Cruises. Inaugural voyages will open for sale in September 2021 and she will set sail in 2023. Vista set to debut in 2023 followed by a sister ship in 2025 99
Slide 10: COVID-19 Financial Action Plan
COVID-19 FINANCIAL ACTION PLAN Q420-Q121 Initiatives 1 Controlled Operating ▪ Continued reductions or deferrals of marketing expenses and non-essential capital expenditures Expenses & Capital ▪ Deferred additional newbuild-related payments, resulting in a total of ~€270 million of deferrals Expendit
Slide 11: March Capital Markets Transactions
Action Plan MARCH CAPITAL MARKETS TRANSACTIONS Senior Unsecured Notes Offerings Common Equity Offering & L Catterton Note Repurchase ■ Issued $1.1B of new senior unsecured notes and repaid ■ Proactively managed balanced sheet by 1) reducing debt Norwegian Jewel and Pride of America credit facilities
Slide 12: Illustrative Liquidity Profile
ILLUSTRATIVE LIQUIDITY PROFILE* Illustrative Liquidity* ($ in Billions) Liquidity (As of 31-March) ~$3.5 (-) Customer refunds payable (As of 31-March) ~($0.1) Total Liquidity ~$3.4B (-) Estimated health and safety initiatives ~($0.1) Net Liquidity* ~$3.3B * Illustrative liquidity does not reflect th
Slide 13: First Quarter Sources and Uses of Cash
FIRST QUARTER SOURCES AND USES OF CASH Cash and cash equivalents increased in Q1 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. 13
Slide 14: Medium and Long-Term Financial Recovery Plan
MEDIUM AND LONG-TERM FINANCIAL RECOVERY PLAN 1 2 3 Rebuild and Improve Maximize Cash Flow Optimize Balance Margins Generation Sheet ▪ Gradual return to pre-COVID ▪ Introduce robust growth profile ▪ Maintain sufficient liquidity to margin levels of ROIC and cash flow weather extended post-crisis ▪ Ma
Slide 15: Strong Commitment to ESG Initiatives
STRONG COMMITMENT TO ESG INITIATIVES ■ Global sustainability program, Sail & Sustain, is a core focus in everyday operations ■ Strategy led by ESG1 department with oversight by executive team and TESS2 Board Committee ■ Provided $2M+ of in-kind humanitarian relief to global community organizations t
Slide 16: Key Takeaways
KEY TAKEAWAYS ▪ Announced multi-layered SailSAFE health and safety program Health & Safety at the ▪ Committed to mandatory vaccinations for all guests and crew on all initial voyages Forefront ▪ Formed SailSAFE Global Health and Wellness Council to provide expert advice on the program ▪ Focused on t
Slide 17: Appendix
APPENDIX NORWEGIAN CRUISE LINE 17 BSS HoLpines LTD.
Slide 18: Improved Debt Maturity Profile
Action Plan IMPROVED DEBT MATURITY PROFILE Debt Maturity Profile ($ in Billions) Facilities $5.1 typically would be refinanced prior to maturity $2.7 $1.8 $0.9 $1.0 $0.8 $0.0 2021 2022 2023 2024 2025 2026 Thereafter ECA Loans, Capital Leases & Other 3.625% Senior Unsecured Notes 12.250% Senior Secur
Slide 19: 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 (March 2020) and existing revolving credit facilities, resulting in ~$1.55B of cash added to the balance sheet ▪ $675M of 12.25% senior secured notes du
Slide 20: Fuel Hedge Program
FUEL HEDGE PROGRAM NCLH Fuel Hedge Program as of 3/31/21 Remainder of 2021 2022 2023 % of HFO Consumption 30% 15% 0% Hedged1 Average USGC Price / $46.27 $48.36 N/A Barrel % of MGO Consumption 86%1 55% 25% Hedged Average Gasoil Price / $81.45 $70.00 $67.45 Barrel Total % of Consumption 61% 37% 15% He
Slide 21: 2021-2023 Outlook
2021-2023 OUTLOOK $ Billions 2021 2022 2023 Depreciation & Amortization $0.7 Run-Rate Interest Expense, net1 $0.61 Newbuild-Related Capital Expenditures, Pre- $0.3 $1.6 $2.4 Financing2 Export Credit Financing for Newbuild-Related $0.2 $0.8 $1.8 Capital Expenditures Newbuild-Related Capital Expenditu
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