Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q4 2024 Earnings Presentation
37 slides from Norwegian Cruise Line's earnings presentation, Feb 27, 2025
Slide 1: Q4 and Full Year 2024 Earnings Conference Call
Q4 and Full Year 2024 Earnings Conference Call - February 27, 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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 R
Slide 3: NCLH at a Glance
NCLH AT A GLANCE 19 Ships | ~56,000 Berths 7 Ships | ~6,300 Berths 6 Ships | ~4,100 Berths 8 Ships on order 3 Ships on order1 2 Ships on order ~85% of annual bed days ~10% of annual bed days ~5% of annual bed days $10B+ 3M 32 13 2025 EXPECTED 2025 EXPECTED CURRENT SHIPS CURRENT SHIPS REVENUE GUESTS
Slide 4: People Excellence
PEOPLE EXCELLENCE INTRODUCED VALUE ANCHORS ROLLED OUT NEW CHARTING THE COURSE STRATEGY PEOPLE GUEST-CENTRIC LONG-TERM EXCEPTIONAL EXCELLENCE PRODUCT GROWTH PERFORMANCE OFFERING PLATFORM INNOVATION COLLABORATION Creating value and impact. We win as a TEAM. to drive positive impact on society EXTERNAL
Slide 5: Guest-Centric Product Offering
GUEST-CENTRIC PRODUCT OFFERING EXECUTED STRATEGIC REPOSITIONING OF LARGEST BRAND ENHANCED PRODUCT OFFERINGS ESTABLISHED STRATEGIC PARTNERSHIPS 5
Slide 6: Long-Term Growth Platform
LONG-TERM GROWTH PLATFORM BEGAN PIER CONSTRUCTION AT GREAT STIRRUP CAY 8 NEW SHIP ORDER ANNOUNCED NORWEGIAN AQUA FLOAT OUT IN APRIL 2024 & SET TO SAIL IN APRIL 2025 SEVEN SEAS PRESTIGE ALLURA TO DEBUT IN JULY 2025 TO LAUNCH IN 2026 6
Slide 7: Exceptional Performance: 2024 Highlights
EXCEPTIONAL PERFORMANCE: 2024 HIGHLIGHTS NET YIELD1 10% COMPARED TO 2023 ADJ. OPERATIONAL ADJUSTED EBITDA EBITDA MARGIN ADJUSTED NCC EX FUEL PER CAPACITY DAY 1 $2.45B 35.5% Reduced Net +32% vs 2023 +480 bps vs 2023 $160 Leverage by ~2x from 2023 year-end, +1% vs 2023 ending quarter at 5.3x excluding
Slide 8: Sustainability and Community Impact
SUSTAINABILITY DISCLOSURE SAILING SAFELY EMPOWERING PEOPLE NCLH received a 100% of ships received rating of “A” (on a score of 92 or higher. a scale of AAA-CCC) when inspected by the in the MSCI ESG Centers for Disease Control Ratings assessment and Prevention (CDC). within the Hotels & Developing t
Slide 9: Booking & Net Yield Update
BOOKING & NET YIELD UPDATE Booking Trends Net Yield Growth1 • Company at optimal booked position with strong demand for summer sailings in Europe and Alaska 3.5% Net Yield Update1 3.0% • Beat Q4 2024 Net Yield guidance by 210 bps, growing 9.0% • FY 2024 Net Yield up a record 9.9%1 • FY 2025 Net Yiel
Slide 10: Q4 2024 Results Overview
Q4 2024 RESULTS OVERVIEW Q4 2024 ACTUALS VS GUIDANCE GUIDANCE Occupancy ~101.0% 100.8% ✓ Net Yield1 Growth ~6.9% 9.0% ✓ ~2.7% 4.4% Adjusted Net Cruise Cost ~(1.1%) excluding Dry-dock 0.7% excluding Dry-dock ex. Fuel per Capacity Day1 ~$155 $157 Including ~$6 Dry-dock Including $6 Dry-dock Adjusted E
Slide 11: Full Year 2024 Results Overview
FULL YEAR 2024 RESULTS OVERVIEW 2024 GUIDANCE ACTUALS VS GUIDANCE FROM Q3 ‘24 CALL Occupancy ~105.0% 104.9% ✓ Net Yield1 Growth ~9.4% 9.9% ✓ ~3.4% 3.8% Adjusted Net Cruise Cost ~0.5% excluding Dry-dock 0.9% excluding Dry-dock ex. Fuel per Capacity Day1 ~$159 $160 Including ~$5 Dry-dock Including $5
Slide 12: Q1 & FY 2025 Guidance Overview
Q1 & FY 2025 GUIDANCE OVERVIEW Q1 2025 Q2-Q4 2025 FULL YEAR 2025 GUIDANCE IMPLIED GUIDANCE GUIDANCE Occupancy ~101.5% ~104.0% ~103.4% Net Yield1 Growth ~0.5% ~3.5% ~3.0% ~3.9% Adjusted Net Cruise Cost ~2.1% excluding Dry-dock ~0.5% ~1.25% ex. Fuel per Capacity Day1,2 ~$171 ~$159 ~$162 Including ~$8
Slide 13: Adj. Operational EBITDA Margin Improvement
ADJ. OPERATIONAL EBITDA MARGIN IMPROVEMENT Adj. Operational EBITDA Margin1 • Full year 2024 Adj. Operational EBITDA Margin improved 480 bps to 35.5% • Full year 2025 Adj. Operational EBITDA ~39% Margin expected to improve ~150bps to ~37% versus prior year ~37% +480 35.5% • Continued margin improveme
Slide 14: Pro Forma Debt Maturity Profile
PRO FORMA DEBT MATURITY PROFILE1 As of 12/31/2024 ($ billions) $3.3 $1.9 $1.2 $1.1 $1.0 2025 2026 2027 2028 2029 ECA Loans, Capital Leases & Other Senior Secured Notes Exchangeable Notes Senior Unsecured Notes Debt portfolio is 94% fixed rate, at a weighted average interest rate of ~4.7% (1) All amo
Slide 15: Focused on De-Risking and Reducing Leverage
FOCUSED ON DE-RISKING AND REDUCING LEVERAGE Net Leverage Reduction1 Continuing our path of de-risking balance sheet - reduced Net Leverage by ~2x from year end 2023 7.3x Delivery of Norwegian Aqua Expect Net Leverage to 6.3x end 2025 at ~5x or better 5.9x 5.6x ~5.7x Expect significant organic 5.3x r
Slide 16: Clear Path to Charting the Course Targets
CLEAR PATH TO CHARTING THE COURSE TARGETS ADJUSTED EBITDA ADJUSTED EPS 1 NET LEVERAGE ADJUSTED ROIC OPERATING MARGIN +~830 ~52% >2.5x +~430 bps CAGR 7.3x decline bps ~12% ~39% ~$2.45 ~$2.05 10.9% ~37% 5.3x 2 $1.82 ≤ 5x Mid 4x 35.5% $0.70 7.7% 30.7% 2023 2024 2025E 2026E 2023 2024 2025E 2026E 2023 20
Slide 17: Appendix
APPENDIX 17
Slide 18: Executing on Our Strategy
EXECUTING ON OUR STRATEGY PEOPLE GUEST-CENTRIC LONG-TERM EXCEPTIONAL EXCELLENCE PRODUCT OFFERING GROWTH PLATFORM PERFORMANCE STRONG 2026 FINANCIAL TARGETS Adj. Operational Adj. EPS Net Leverage Adj. ROIC EBITDA Margin ~39% ~$2.45 Mid 4x 12% Approaching >30% CAGR Strengthening the Record levels histo
Slide 19: Outlook
OUTLOOK $ Millions unless otherwise noted Q1 2025 FY 2025 Depreciation & Amortization ~$230M ~$985M Interest Expense, net1 ~$170M ~$700M Other Capital Expenditures ~$130M ~$590M Fuel Consumption (metric tons) ~255,000 ~990,000 Fuel Price Per Metric Ton (net of hedges) ~$690 ~$722 Fuel - Hedge progra
Slide 20: Illustrative Diluted Share Count Modeling
ILLUSTRATIVE DILUTED SHARE COUNT MODELING Q1 2025 FULL YEAR 2025 Shares (m)1 Interest Shares (m)1 Interest GAAP Net GAAP Net Expense Expense Income (Loss) Income (Loss) Reduction2 Reduction2 ($m) Basic Diluted ($m) Basic Diluted ($m) ($m) Net Loss ~441 ~441 $0 Net Loss ~453 ~453 $0 Up to $59 ~441 ~4
Slide 21: Meaningful Growth to Top & Bottom-Line Results Expected
MEANINGFUL GROWTH TO TOP & BOTTOM-LINE RESULTS EXPECTED Gross Capacity Growth (M)1 8 New Ships1 ~35,400 Berths 4% CAGR 6% CAGR 29.8 28.1 26.4 3 New Ships1 24.6 ~4,100 Berths 23.4 22.7 2 New Ships ~1,700 Berths 2 2023 2024 2025E 2026E 2027E 2028E 2036E 1. We have the option to cancel an additional, e
Slide 22: Cash Generation Engine Fueled by Advance Ticket Sales
CASH GENERATION ENGINE FUELED BY ADVANCE TICKET SALES Total Advance Ticket Sales ($B) Q4 24 ATS up ~60% versus 2019 $4.0 • Capacity declining 2.2% in Q1 $3.5 $3.2B 2025 due to increased Dry-Dock $3.0 capacity days $2.5 • Foreign exchange headwinds $2.0 • A ~71% increase in Q1 2025 repositioning days
Slide 23: Fleet Expansion Details
FLEET EXPANSION DETAILS YEAR BRAND DETAIL GROSS TONS 1 BERTHS 1 Q1 2025 Norwegian Cruise Line Norwegian Aqua ~156,000 ~3,550 Q3 2025 Oceania Cruises Allura ~68,000 ~1,200 2026 Norwegian Cruise Line Norwegian Luna ~156,000 ~3,550 2026 Regent Seven Seas Seven Seas Prestige2 ~77,000 ~850 2027 Norwegian
Slide 24: NCLH Deployment Mix - 2025
NCLH DEPLOYMENT MIX - 2025 2025 Variance vs 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Alaska 0% 19% 23% 3% 11% Alaska 0% 2% 2% (1%) 1% Asia/Africa/Pacific 18% 11% 6% 9% 11% Asia/Africa/Pacific 2% 6% 3% (3%) 2% Bermuda 0% 8% 8% 0% 4% Bermuda (1%) (1%) 2% (3%) (1%) Caribbean1 53% 18% 9% 40% 30% Caribbean (5%
Slide 25: Definitions and Non-GAAP Information and Reconciliation
DEFINITIONS AND NON-GAAP INFORMATION AND RECONCILIATION 25
Slide 26: Non-GAAP Financial Measures Notice
Non-GAAP financial measures should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing operating performance, financial position or cash flows. The Company does not provide certain estimated future results on a GAAP basis because the Comp
Slide 27: Definitions
DEFINITIONS Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other Constant Currency. A calculation whereby foreign currency-denominated revenues supplemental adjustments. and expenses in a period are converted at the U.S. dollar exchange rate of a comparable period in order to e
Slide 28: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted EPS was calculated as follows Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended (in thousands, except share and per share data): December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income (loss)
Slide 29: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted EBITDA is calculated as follows Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended (in thousands): December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income (loss) $254,536 ($106,485) $910,257 $
Slide 30: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as Three Months Ended Constant Currency Three Months Ended follows December 31, 2024 compared to 2023 December 31, 2023 (in thousands, except Passenger Cruise Days and Net Per Diem Data):
Slide 31: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as Twelve Months Ended Constant Currency Twelve Months Ended follows December 31, 2024 compared to 2023 December 31, 2023 (in thousands, except Passenger Cruise Days and Net Per Diem Data)
Slide 32: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as Three Months Ended Constant Currency Three Months Ended follows September 30, 2024 compared to 2023 September 30, 2023 (in thousands, except Passenger Cruise Days and Net Per Diem Data)
Slide 33: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows Three Months Ended Constant Currency Three Months Ended (in thousands, except Passenger Cruise Days and Net Per Diem Data): June 30, 2024 compared to 2023 June 30, 2023 Total re
Slide 34: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as Three Months Ended Constant Currency Three Months Ended follows Mar. 31, 2024 compared to 2023 Mar. 31, 2023 (in thousands, except Passenger Cruise Days and Net Per Diem Data): Total re
Slide 35: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Gross Cruise Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted Three Months Ended Constant Currency Three Months Ended Net Cruise Cost Excluding Fuel were calculated as follows December 31, 2024 compared to 2023 December 31, 2023 (in thou
Slide 36: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Gross Cruise Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted Twelve Months Ended Constant Currency Twelve Months Ended Net Cruise Cost Excluding Fuel were calculated as follows December 31, 2024 compared to 2023 December 31, 2023 (in th
Slide 37: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Twelve Months Ended, Net Debt and Net Leverage were calculated as December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 follows Long-term debt $12,314,147 $12,005,296 $11,913,073 $11,751,743 $11,776,721 Current portion of lon
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