Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q2 2020 Earnings Presentation
15 slides from Norwegian Cruise Line's earnings presentation, Aug 6, 2020
Slide 1: Second Quarter 2020 Earnings Conference Call
SECOND QUARTER 2020 EARNINGS CONFERENCE CALL AUGUST 6, 2020
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 Q1 Earnings Call
KEY EVENTS SINCE Q1 EARNINGS CALL May 20 NCLH announces voyage suspension through July 31, 2020 June 3 NCLH extends shoreside salary reduction and reduced workweek through September June 4 NCLH finalizes deferral of debt amortization through March 2021 related to SACE, the export credit agency in It
Slide 4: Navigating Through COVID-19
NAVIGATING THROUGH COVID-19 Addressed ▪ Announced voyage suspension through October 31 across all three Significant ✓ brands ▪ Repatriated the majority of crew members Operational ▪ Transitioning majority of ships into layup Challenges ▪ Completed highly successful ~$1.5 billion triple-tranche capit
Slide 5: Booking Trends Update
BOOKING TRENDS UPDATE ◼ There continues to be demand for cruise vacations particularly for 2021, despite reduced marketing efforts ◼ While booking volumes since the emergence of COVID-19 remain below historical levels, the Company’s overall cumulative booked position and pricing for 2021 are within
Slide 6: COVID-19 Action Plan
COVID-19 ACTION PLAN 1 ▪ Extended temporary 20% pay reduction for shoreside team members Further Reduction of through September Operating Expenses & ▪ Extended furlough of ~20% of shoreside workforce through October Capital Expenditures ▪ Completed deferral of ~$170M of newbuild related capex1 ▪ Foc
Slide 7: Improved Debt Maturity Profile
Action Plan IMPROVED DEBT MATURITY PROFILE Pro-Forma1 Debt Maturity Profile ($ in Billions) Facilities $4.9 typically would be refinanced prior to maturity $2.8 $1.1 $0.8 $0.8 $0.9 $0.0 2020 2021 2022 2023 2024 2025 Thereafter ECA Loans, Capital Leases & Other Norwegian Jewel Term Loan 3.625% Senior
Slide 8: 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 (March) ~$1.55 billion of cash added to the balance sheet. ▪ $675M of 12.25% senior secured notes
Slide 9: Illustrative Liquidity Runway
ILLUSTRATIVE LIQUIDITY RUNWAY Summary of Targeted Layup Costs Illustrative Liquidity Runway ($ in Millions) Average ($ in Billions) Monthly ongoing ship and Liquidity (As of 30-June) ~$2.3 ~$ 95 administrative operating costs (+) July capital infusion (net proceeds) ~$1.5 Interest Expense & Taxes ~$
Slide 10: Second Quarter Sources and Uses of Cash
SECOND QUARTER SOURCES AND USES OF CASH Cash and cash equivalents increased in Q2 driven by May capital raise Note: Cash burn includes operating expenses, SG&A, interest expense and capital expenditures. 10 10
Slide 11: Roadmap to Relaunch and Resumption of Cruise Voyages
ROADMAP TO RELAUNCH AND RESUMPTION OF CRUISE VOYAGES 1 2 3 4 Develop Address Activate Sales Initiate Enhanced Global Port and Marketing Gradual Health and Availability Machine and Phased Safety and Travel Stimulate Relaunch Protocols Restrictions Demand ▪ Formation of Healthy ▪ Movable assets allow
Slide 12: Health and Safety Is Our Number One Priority
Develop Enhanced Health and Safety Protocols HEALTH AND SAFETY IS OUR NUMBER ONE PRIORITY ◼ The Company has formed the “Healthy Sail Panel” in collaboration with Royal Caribbean Group which is tasked with developing recommendations for cruise lines to advance their public health response to COVID-19
Slide 13: Key Takeaways
KEY TAKEAWAYS Continued progress on significant cost reduction and Further Strengthened cash conservation measures, coupled with highly Financial Position successful execution of approximately $4 billion of capital raises strengthens financial position. Booking trends continue to indicate demand for
Slide 14: Appendix
APPENDIX NORWEGIAN CRUISE LINE 14 BES HoLpinGs LTD.
Slide 15: Fuel Hedge Program
FUEL HEDGE PROGRAM NCLH Fuel Hedge Program as of 6/30/2020 Remainder 2021 2022 2023 of 2020 % of HFO Consumption 67% 53% 19% 0% Hedged Average USGC Price / $41.23 $46.09 $48.36 N/A Barrel % of MGO Consumption 88% 51% 46% 20% Hedged Average Gasoil Price / $84.57(1) $80.61 $70.00 $67.45 Barrel Total %
Norwegian Cruise Line Holdings — Q2 2020 Earnings Presentation on 6ix