Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q2 2021 Earnings Presentation
24 slides from Norwegian Cruise Line's earnings presentation, Aug 6, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
SECOND QUARTER 2021 EARNINGS CONFERENCE CALL August 6, 2021
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 2021 Earnings Call
KEY EVENTS SINCE Q1 2021 EARNINGS CALL Norwegian Cruise Line unveiled Norwegian Prima, the first of six ships within its highly anticipated next class of vessels, Prima Class. May 12 Debuted as the most in-demand ship in the line’s history, with record bookings on the first day and week of sales. Oc
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 Norwegian Norwegian Oceania Jade Encore Epic Bliss Escape Pearl Star Spirit Jewel Nautica (Athens) (Seattle) (Barce
Slide 6: 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 7: Booking Trends Update
BOOKING TRENDS UPDATE ◼ Continued strong demand for future cruise vacations, despite reduced demand-generating marketing investments. Booking window remains at the high end of the historical range as guests book further into the future. ◼ 2022 booking trends are very positive driven by strong pent-u
Slide 8: Norwegian Cruise Line's Newest Ship: Norwegian Prima
NORWEGIAN CRUISE LINE’S NEWEST SHIP: NORWEGIAN PRIMA ◼ Introduced Norwegian Prima, the first of six Prima class ships for Norwegian Cruise Line, which accommodates 3,215 guests at double occupancy. ◼ Most outdoor deck space of any new cruise ship including more total pool deck space than any other s
Slide 9: Regent Seven Seas Cruises' Newest Ship: Seven Seas Grandeur
REGENT SEVEN SEAS CRUISES’ NEWEST SHIP: SEVEN SEAS GRANDEURTM ◼ Unveiled name of Regent Seven Seas Cruises’ new ship, Seven Seas Grandeur, the 6th ship in its fleet which debuts in Q4 2023. ◼ Will host 750 guests and is a sister ship to Seven Seas Explorer®, the most luxurious ship ever built and Se
Slide 10: 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 Under Construction 6 2 1 2022 1) Norwegian Prima: ~3,215 Berths 2023 2) Prima Class: ~3,215 Berths 1
Slide 11: Strong Track Record of Financial Results Pre-Pandemic
STRONG TRACK RECORD OF FINANCIAL RESULTS PRE-PANDEMIC Capacity Days (M) Gross Revenue ($B) ’15-’19 CAGR: 10.7% $6.1 $6.5 CAGR: 7% 23.2 21 $5.4 18.8 19.2 $4.9 16.4 17.4 $4.3 14.7 2015 2016 2017 2018 2019 2022E 2023E 2015 2016 2017 2018 2019 Adjusted EBITDA ($B) Net Cash Provided by Operating Activiti
Slide 12: COVID-19 Financial Action Plan
COVID-19 FINANCIAL ACTION PLAN Q2 21- Q3 21 Initiatives ◼ Continued efforts to control operating costs and capital expenditures ◼ Amended nine credit facilities for newbuild agreements and increased the combined commitments under such facilities by approximately $770 million to cover owners supply a
Slide 13: Liquidity & Cash Burn
LIQUIDITY & CASH BURN ◼ Cash & cash equivalents of $2.8B as of June 30. ◼ Q2 2021 average cash burn was slightly higher than prior guidance at ~$200M/month, driven by additional voyage resumptions. ◼ In Q3 2021, the Company expects the average cash burn rate to increase to approximately $285M/month
Slide 14: Second Quarter Sources and Uses of Cash
SECOND QUARTER SOURCES AND USES OF CASH Cash and cash equivalents decreased in Q2 in line with expectations *Cash burn includes operating expenses, SG&A, interest expense and capital expenditures. Working capital and other is net of cash collections and includes health and safety investments. 14 14
Slide 15: Medium and Long-Term Financial Recovery Plan
MEDIUM AND LONG-TERM FINANCIAL RECOVERY PLAN 1 2 3 Rebuild and Improve Maximize Cash Flow Optimize Balance Margins Generation Sheet ▪ Gradual return to pre-COVID ▪ Introduce robust growth profile ▪ Maintain sufficient liquidity to margin levels of ROIC and cash flow weather extended post-crisis ▪ Ma
Slide 16: Sail & Sustain Global Sustainability Program
■ Global sustainability program, Sail & Sustain, is a core focus in everyday operations ■ Strategy led by ESG1 department with oversight by executive team and TESS2 Board Committee ■ In June 2021, released inaugural 2020 ESG report including first SASB Index and redesigned Sail & Sustain strategy ce
Slide 17: Key Takeaways
KEY TAKEAWAYS •Going to great lengths to resume cruising in the safest way possible amidst the pandemic Health & Safety at the •Committed to consistent 100% vaccination policy for all guests and crew on all initial Forefront voyages •Following robust, multi-layered SailSAFE health and safety program
Slide 18: Appendix
APPENDIX fF] NORWEGIAN CRUISE LINE HOLDINGS LTD.
Slide 19: Debt Maturity Profile – June 30, 2021
DEBT MATURITY PROFILE – JUNE 30, 2021 Debt Maturity Profile ($ 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 Secured No
Slide 20: 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 (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 du
Slide 21: Fuel Hedge Program
FUEL HEDGE PROGRAM NCLH Fuel Hedge Program as of 6/30/21 Remainder of 2021 2022 2023 % of HFO Consumption 14% 15% 0% Hedged1 Average USGC Price / $45.82 $48.36 N/A Barrel % of MGO Consumption 69%1 56% 30% Hedged Average Gasoil Price / $81.38 $70.06 $67.45 Barrel Total % of Consumption 43% 37% 14% He
Slide 22: 2021-2023 Outlook
2021-2023 OUTLOOK $ Millions 2021 2022 2023 Depreciation & Amortization $700M Run-Rate Interest Expense, net1 $620M1 Non-Newbuild Capital Expenditures $425M Remainder $ Billions of 2021 2022 2023 Newbuild-Related Capital Expenditures, Pre- $0.3 $1.6 $2.5 Financing2 Export Credit Financing for Newbui
Slide 23: 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 six experts at the forefront of their fields and led by Dr. Scott Gottlieb, former
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 — Q2 2021 Earnings Presentation on 6ix