Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q4 2021 Earnings Presentation
24 slides from Norwegian Cruise Line's earnings presentation, Feb 24, 2022
Slide 1: Fourth Quarter 2021 Earnings Conference Call
FOURTH QUARTER 2021 EARNINGS CONFERENCE CALL February 24, 2022
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 Q3 2021 Earnings Call
KEY EVENTS SINCE Q3 2021 EARNINGS CALL Company announces industry veteran Howard Sherman to succeed Bob Binder as President and Chief Executive Officer at Nov 8 Oceania Cruises with Bob Binder transitioning to an advisory role as Vice Chairman Nov 10 Oceania Cruises reveals next phase of OceaniaNEXT
Slide 4: Return to Service Plan
RETURN TO SERVICE PLAN Unveiled SailSAFETM health and safety program with rigorous protocols developed with guidance from expert advisors Develop Multi- Committed to 100% vaccination of all guests and crew1 on all initial voyages in addition to SailSAFE protocols, including Layered Health univer
Slide 5: NCLH COVID-19 Protocols
NCLH COVID-19 PROTOCOLS Current Protocols Effective March 1 (based on CDC’s COVID-19 Program for Cruise Ships Operating in U.S. Waters) Crew and Guests ages 12 and over 100% Vaccination Crew and Guests 100% vaccinated vaccinated Unvaccinated Ages 5 and under not allowed Ages under 12 allowed1 Childr
Slide 6: Voyage Resumption Plan
VOYAGE RESUMPTION PLAN Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Mar 2022 Apr 2022 May 2022 Norwegian Norwegian Norwegian Norwegian Bliss Norwegian Norwegian Norwegian Sky Oceania Norwegian Sun Jade (Athens) Encore Epic (Los Angeles) Escape Pearl (Miami) Nautica (Rome) (Seattle) (Seattle
Slide 7: Booking Trends Update
BOOKING TRENDS UPDATE Company experienced a temporary impact from the effects of the Delta and Omicron variants, consistent with the broader travel and leisure sector, which resulted in both lower gross bookings and higher cancellations primarily for sailings scheduled during the first half of 202
Slide 8: Fourth Quarter Sources and Uses of Cash
FOURTH QUARTER SOURCES AND USES OF CASH (in $ Millions) 1 1 Slight decrease in Q4 in line with expectations *Cash burn includes operating expenses, SG&A, interest expense and capital expenditures. 1Cash includes cash and cash equivalents and short-term investments 88
Slide 9: Liquidity & Cash Burn
LIQUIDITY & CASH BURN Liquidity of ~$2.7B as of December 31st, including the undrawn $1 billion commitment through August 2022 The fleet in service in Q4 2021 generated positive contribution despite self-imposed reduced occupancy levels and impact of Omicron During Q4 2021, gross advance ticke
Slide 10: Balance Sheet Optimization Transactions
BALANCE SHEET OPTIMIZATION TRANSACTIONS Issued $1.15B of 1.125% exchangeable senior notes due 2027 Repurchased $715.9M of 6.00% exchangeable senior notes due 2024 November 2021 Issued common equity of ~$1.1B, with net proceeds used to redeem a portion of 12.25% and 10.25% senior secured notes
Slide 11: 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) Norwegian Viva: ~3,215 Be
Slide 12: 2019-2027E Disciplined Growth
2019-2027E DISCIPLINED GROWTH (M) Capacity Growth: ~50% 29.0 27.5 25.9 24.0 23.2 19.2 19.3 2019 2022E 2023E 2024E 2025E 2026E 2027E # Ships 27 29 32 33 35 36 37 Norwegian Norwegian Norwegian Norwegian Norwegian Norwegian Norwegian Encore Prima Viva Prima Plus Class Prima Plus Class Prima Plus Class
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: Sail & Sustain Global Sustainability Program
• Global sustainability program, Sail & Sustain, is a core focus in everyday operations, centered around 5 key pillars • Strategy led by ESG1 department with oversight by executive team and TESS2 Board Committee • Released inaugural 2020 ESG report including first SASB Index • Published new sustaina
Slide 15: Key Takeaways
KEY TAKEAWAYS •Great Cruise Comeback successfully moving forward with ~70% of berth capacity Focus on Phased operating across our three brands. Voyage Resumption •Expect to have ~85% berth capacity operating by the end of the first quarter of 2022 •Full fleet expected back in operation by the early
Slide 16: Appendix
APPENDIX fr] NORWEGIAN CRUISE LINE HOLDINGS LTD.
Slide 17: 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 2027E 2019 2027E Current 2027E NCL OCI RSSC Growth pipeline presents additional opportunities for diversification into unserved and unders
Slide 18: Historic Financial Outperformance
HISTORIC FINANCIAL OUTPERFORMANCE 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.
Slide 19: 2022 Deployment by Market
2022 DEPLOYMENT BY MARKET 2022 2019 Q1 Q2 Q3 Q4 FY FY Alaska 0% 16% 26% 5% 13% 9% Asia/Africa/Pacific 1% 0% 0% 8% 2% 3% Bermuda 0% 10% 7% 5% 6% 7% Caribbean 81% 18% 7% 24% 27% 38% China 0% 0% 0% 0% 0% 2% Cuba 0% 0% 0% 0% 0% 1% Europe 0% 37% 49% 25% 31% 21% Canary 0% 0% 0% 0% 0% 1% Baltic 0% 11% 22%
Slide 20: Fuel Hedge Program
FUEL HEDGE PROGRAM NCLH Fuel Hedge Program as of 12/31/21 2022 2023 2024 % of HFO Consumption 32% 15% - Hedged1 Average USGC Price / Barrel $48.36 N/A - Average Brent Price / Barrel $66.50 $64.72 - % of MGO Consumption 51% 33% - Hedged Average Gasoil Price / Barrel $70.06 $69.91 - Total % of Consump
Slide 21: 2022-2024 Outlook
2022-2024 OUTLOOK $ Millions 2022 $ Billions 2022 2023 2024 Depreciation & Amortization $750M Newbuild-Related Capital $1.6B $2.5B $1.4B Expenditures, Pre-Financing2 Run-Rate Interest Expense, net1 $595M Export Credit Financing for Non-Newbuild Capital Expenditures $500M Newbuild-Related Capital $1.
Slide 22: Pro Forma Debt Maturity Profile
PRO FORMA DEBT MATURITY PROFILE As of December 31, 2021 ($ Billions) 1 Notes Repaid New Notes Issued Facilities typically refinanced prior $3.7 to maturity $3.0 $2.2 $2.0 $0.9 $1.1 $0.9 2022 2023 2024 2025 2026 2027 Thereafter ECA Loans, Capital Leases & Other 3.625% Senior Unsecured Notes 6.000% Ex
Slide 23: Secured Additional Capital Through October 2021
SECURED ADDITIONAL CAPITAL THROUGH OCTOBER 2021 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
Slide 24: 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 — Q4 2021 Earnings Presentation on 6ix