Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — JP Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum 2021
23 slides from Norwegian Cruise Line's conference presentation, Mar 11, 2021
Slide 1: JP Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum
JP MORGAN GAMING, LODGING, RESTAURANT, AND LEISURE MANAGEMENT ACCESS FORUM MARCH 11, 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 Some of the statements, estimates or projections contained in this presentation are “forward - looking statements” within the mean ing of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigat
Slide 3: Agenda
AGENDA Company Overview Financial Update Appendix
Slide 4: NCLH Overview: Three brands spanning all major market categories
Three brands spanning major all market categories Ships in Fleet 28 Berths ~59,150 Ships on Order 9* Berths on Order ~23,850 Ports Visited in 2019 490+ Passengers Carried in 2019 ~2.7 million Company Employees ~34,000 NCLH OVERVIEW 4 * Next newbuild delivery not until Q3 2022
Slide 5: ships / 50,520 berths Six ships on order for delivery in Q3
17 ships / 50,520 berths Six ships on order for delivery in Q3 2022 – 2027 Youngest fleet of major North American cruise brands Offerings for the entire gamut of potential cruisers with unparalleled entertainment, dining and accommodations, including The Haven private keycard access luxury e
Slide 6: Strong operator with compelling competitive advantages
STRONG OPERATOR WITH COMPELLING COMPETITIVE ADVANTAGES A leading operator in upscale experiences Three award - winning brands Go - to - market strategy Sizable yet nimble fleet Differentiated pricing drivers Strong financial track record Fastest growing cruise operator 1 Highly experienced managemen
Slide 7: Navigating through COVID-19
NAVIGATING THROUGH COVID - 19 ▪ Announced voyage suspension through May 31 across all three brands ▪ Majority of ships are at or transitioning to reduced manning status ▪ Repatriating certain crew members Addressed Significant Operational Challenges ▪ Raised ~$7.5 billion 1 from various sources sinc
Slide 8: Roadmap to relaunch and resumption of cruise voyages
ROADMAP TO RELAUNCH AND RESUMPTION OF CRUISE VOYAGES Develop Enhanced Health and Safety Protocols 1 Address Global Port Availability and Travel Restrictions 2 Activate Sales and Marketing Machine and Stimulate Demand 3 Initiate Gradual Phased Relaunch 4 ▪ Healthy Sail Panel provides 74 detailed reco
Slide 9: Health and Safety
HEALTH AND SAFETY The Healthy Sail Panel (HSP), a group of globally recognized scientific and medical experts assembled in collaboration with Royal Caribbean Group, has provided 74 detailed health and safety recommendations across five focus areas to reduce the risk of COVID - 19 on cruise ships.
Slide 10: Agenda
AGENDA Company Overview Financial Update Appendix
Slide 11: Booking Trends Update
BOOKING TRENDS UPDATE Continued strong demand for future cruise vacations, despite reduced marketing investments. Cumulative booked position for 2H 2021 remains below historical levels, driven by continued uncertainty around timing of the resumption of cruising and the shift of limited marketing
Slide 12: COVID Financial Action Plan
COVID - 19 FINANCIAL ACTION PLAN Q420 - Q121 Initiatives 12 ▪ Transitioning all vessels to reduced manning status ▪ Extended furloughs and temporary pay reductions for certain shoreside team members ▪ Reductions or deferrals of near - term marketing expenses and non - essential capital expenditures
Slide 13: Strategic capital raises in March add ~$1B of incremental liquidity
13 13 Strategic capital raises in March add ~$1B of incremental liquidity Action Plan MARCH CAPITAL MARKETS TRANSACTIONS Senior Unsecured Notes Offerings ■ Issued $1.1B of new senior unsecured notes and repaid Norwegian Jewel and Pride of America credit facilities which matured in 2022 – $575M of 5.
Slide 14: Debt Maturity Profile
Debt Maturity Profile ($ in Billions) Note: Based on debt outstanding as of 12/31/2020, pro - forma for debt modifications, deferrals and issuance transactions through 3/9/2021. Action Plan IMPROVED DEBT MATURITY PROFILE Significantly extended debt maturity profile 14 2021 2022 2023 2024 2025 2026 T
Slide 15: Illustrative Liquidity
Illustrative Liquidity* ILLUSTRATIVE LIQUIDITY PROFILE* ($ in Billions ) Liquidity (As of 31 - Dec) ~$3.3 ( - ) Customer refunds payable (As of 31 - Dec) ~($0.1) (+) March senior unsecured notes offering ~$1.1 ( - ) Repayment of Pride of America & Norwegian Jewel credit facilities ~($0.45) (+) March
Slide 16: Medium and Long-Term Financial Recovery Plan
MEDIUM AND LONG - TERM FINANCIAL RECOVERY PLAN Upon resumption of voyages, attention will shift to medium and long - term financial recovery plan 16 Rebuild Margins 1 Maximize Cash Flow Generation 2 Optimize Balance Sheet 3
Slide 17: Key Takeaways
KEY TAKEAWAYS 17 Continued Focus on Roadmap to Relaunch ▪ Booking trends continue to indicate strong future demand for cruising ▪ While still early, 1H 2022 booked position is significantly ahead of 2019 levels with pricing in line when excluding FCCs Strong Demand for Cruising Continues Medium and
Slide 18: Appendix
APPENDIX 18
Slide 19: Agenda
AGENDA Company Overview Financial Update Appendix
Slide 20: Healthy Sail Panel Members
The Healthy Sail Panel (HSP), assembled in collaboration with Royal Caribbean Group and led by co - chairs Governor Mike Leavitt and Dr. Scott Gottlieb, consists of a group of globally recognized experts in public health, infectious diseases, medical research and maritime operations. HEALTHY SAIL PA
Slide 21: Raised ~$7.5 billion through various capital initiatives
21 21 Raised ~$7.5 billion through various capital initiatives Action Plan SECURED ADDITIONAL CAPITAL 1. Does not include the over - allotment of up to 5M shares, which the underwriter may still exercise. Note: Figures based on gross offering proceeds before fees, repayments and use of proceeds unle
Slide 22: 2021-2023 Outlook
2021 - 2023 OUTLOOK 22 $ Billions 2021 2022 2023 Depreciation & Amortization $0.7 Interest Expense, net 1 $0.65 1 Newbuild - Related Capital Expenditures, Pre - Financing 2 $0.4 $1.6 $2.5 Export Credit Financing for Newbuild - Related Capital Expenditures $0.2 $0.8 $1.8 Newbuild - Related Capital Ex
Slide 23: Global sustainability program, Sail & Sustain
■ Global sustainability program, Sail & Sustain, is a core focus in everyday operations ■ Dedicated ESG 1 department to enhance overall ESG strategy and coordinate across the organization ■ ESG oversight by executive team and TESS 2 Committee of the Board of Directors ■ In Q4 2020, released 2019 Ste