Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q3 2021 Earnings Presentation
25 slides from Norwegian Cruise Line's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Earnings Conference Call
THIRD QUARTER 2021 EARNINGS CONFERENCE CALL November 3, 2021
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT Some of the statements, estimates or projections contained in this release 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 Reform
Slide 3: Key Events Since Q2 2021 Earnings Call
KEY EVENTS SINCE Q2 2021 EARNINGS CALL August 7 Norwegian Encore makes its debut in Alaska as the first U.S. sailing since the voyage suspension. Company was successful in receiving a preliminary injunction allowing the requirement for official documentation to confirm a August 8 guest’s vaccination
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 crew1 on all initial voyages in addition to SailS
Slide 5: Voyage Resumption Plan
VOYAGE RESUMPTION PLAN July 2021 Aug 2021 Sept 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 Norwegian Norwegian Norwegian Norwegian Norwegian Norwegian Norwegian Oceania Norwegian Oceania Jade Encore Epic Bliss Escape Pearl Star Regatta Jewel Nautica (Athens) (Seattle) (Barcel
Slide 6: Booking Trends Update
BOOKING TRENDS UPDATE ◼ Company experienced a temporary impact from the effects of the Delta variant, consistent with the broader travel and leisure sector, which resulted in both lower gross bookings and higher cancellations during Q3. The impact has since stabilized and net bookings in the past si
Slide 7: Norwegian Prima
NORWEGIAN PRIMA ◼ Norwegian Prima is the first of six newbuilds on order for Norwegian Cruise Line. Norwegian Prima and sister ship Prima Class #2 will accommodate ~3,215 guests at double occupancy. Prima Plus Class vessels (#3-#6) will be larger and accommodate ~3,550 guests at double occupancy. ◼
Slide 8: Disciplined and Attractive Newbuild Program
DISCIPLINED AND ATTRACTIVE NEWBUILD PROGRAM NORWEGIAN CRUISE LINE OCEANIA CRUISES REGENT SEVEN SEAS CRUISES Ships / Berths 17 ships / 50,520 berths 6 ships / 5,240 berths 5 ships / 3,390 berths Ships Ordered 6 2 1 2022 1) Norwegian Prima: ~3,215 Berths (3rd quarter) 2023 2) Prima Class: ~3,215 Berth
Slide 9: Meaningful Growth Potential for Top and Bottom-Line Results
MEANINGFUL GROWTH POTENTIAL FOR TOP AND BOTTOM-LINE RESULTS Number of Ships Capacity Days (M)1 Premium Cabin Mix2 37 ~65% 29.0 6 ~60% 28 8 5 19.2 6 23 17 Current 2027 2019 2027E Current 2027 NCL OCI RSSC Growth pipeline presents additional opportunities for diversification into unserved and underser
Slide 10: Historic Capacity Growth
HISTORIC CAPACITY GROWTH… Capacity Days (M) Gross Revenue ($B) CAGR: 7% CAGR: 10.7% $6.1 $6.5 18.8 19.2 $4.9 $5.4 14.7 16.4 17.4 $4.3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Adjusted EBITDA ($B) Net Cash Provided by Operating Activities ($B) CAGR: 12.7% CAGR: 15% $1.9 $1.9 $2.1 $1.7 $1.6 $
Slide 11: Liquidity & Cash Burn
LIQUIDITY & CASH BURN ◼ Cash & cash equivalents of $1.9B as of September 30th. ◼ Liquidity profile is further enhanced with new undrawn $1 billion commitment through August 2022. ◼ Q3 2021 average cash burn was lower than prior guidance at ~$275M/month. ◼ The fleet in service in Q3 2021 was cash flo
Slide 12: Third Quarter Sources and Uses of Cash
THIRD QUARTER SOURCES AND USES OF CASH Cash and cash equivalents decreased in Q3 in line with expectations *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. 12 12
Slide 13: 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 accr
Slide 14: Global sustainability program, Sail & Sustain
■ 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 ■ In June 2021, released inaugural 2020 ESG report including first SASB Index and redesigned Sail & Sustain strategy ce
Slide 15: Key Takeaways
KEY TAKEAWAYS •Great Cruise Comeback successfully moving forward with 11 ships currently operating Focus on Phased across the three brands. Voyage Resumption •Focused on execution of voyage resumption plan with full fleet phased in through April 1, 2022. •Temporary impact from the Delta variant resu
Slide 16: Appendix
APPENDIX NORWEGIAN CRUISE LINE 16 BES HoLpinGs LTD.
Slide 17: 2021-2023 Outlook
2021-2023 OUTLOOK $ Millions 2021 2022 2023 Depreciation & Amortization $695M $775M Run-Rate Interest Expense, net1 $620M1 $630M Non-Newbuild Capital Expenditures $430M $500M Fuel Consumption (metric tons) 435,000 930,000 Fuel Price Per Metric Ton (net of hedges) $680 $610 Remainder $ Billions of 20
Slide 18: 2022-2027E Capacity Days (M)
2022-2027E CAPACITY DAYS (M) 29.0 27.5 25.9 24.0 23.2 20.5 19.2 2019 2022E 2023E 2024E 2025E 2026E 2027E 18
Slide 19: 2022 Deployment by Market
2022 DEPLOYMENT BY MARKET 2022 NCLH Expected Deployment by Market Q1 Q2 Q3 Q4 FY Alaska 0% 16% 26% 4% 12% Asia/Africa/Pacific 3% 2% 0% 8% 3% Bermuda 0% 10% 7% 5% 6% Caribbean 69% 18% 7% 24% 27% Europe 2% 36% 49% 24% 29% Baltic 0% 10% 22% 4% 10% Mediterranean 2% 26% 27% 20% 20% Hawaii 3% 5% 4% 5% 4%
Slide 20: Fuel Hedge Program
FUEL HEDGE PROGRAM NCLH Fuel Hedge Program as of 9/30/21 Remainder of 2021 2022 2023 % of HFO Consumption 23% 15% 0% Hedged1 Average USGC Price / $45.82 $48.36 N/A Barrel % of MGO Consumption 71%1 52% 30% Hedged Average Gasoil Price / $80.97 $70.06 $67.45 Barrel Total % of Consumption 47% 35% 14% He
Slide 21: Debt Maturity Profile – September 30, 2021
DEBT MATURITY PROFILE – SEPTEMBER 30, 2021 Debt Maturity Profile ($ in Billions) Facilities $5.1 typically would be refinanced prior to maturity $2.7 $1.9 $0.9 $1.1 $0.9 $0.0 2021 2022 2023 2024 2025 2026 Thereafter ECA Loans, Capital Leases & Other 3.625% Senior Unsecured Notes 12.250% Senior Secur
Slide 22: Secured Additional Capital
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 due 2024 Quad-
Slide 23: 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 24: 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 four experts at the forefront of their fields and led by Dr. Scott Gottlieb, former
Slide 25: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Year Ended December 31 Adjusted EBITDA1 is Calculated as Follows (in thousands): 2015 2016 2017 2018 2019 Net income attributable to Norwegian Cruise Line Holdings Ltd. $427,137 $633,085 $759,872 $954,843 $930,228 Interest expense, net 221,909 276,859 267
Norwegian Cruise Line Holdings — Q3 2021 Earnings Presentation on 6ix