Carnival Corporation Ltd. · NYSE:CCL
Carnival — Carnival Corporation & — Q4 2023 Earnings Presentation
39 slides from Carnival's earnings presentation, 2024
Slide 1: The page numbering is dependent on the placeholder text boxes on the page layout
The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them
Slide 2: Disclaimers, Forward Looking Statements and Responsibility
Disclaimers, Forward Looking Statements and Responsibility This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to, Adjusted EBITDA, Adjusted Net Income (loss), and certain ratios and metri
Slide 3: Record Ending to a Year Full of Records
Record Ending to a Year Full of Records Record Net Yields Record Revenue Record Customer Deposits In Billions In Billions $6.4 +31% $5.4 $179 +13% +8% $4.8 $4.9 $166 4Q'19 4Q'23 4Q'19 4Q'23 4Q'19 4Q'23 And the best booked position on record for both price and occupancy Net Yields in Constant Currenc
Slide 4: Strength in Demand Delivered Outperformance AGAIN
Strength in Demand Delivered Outperformance AGAIN 4Q 2023 Guidance Actual Occupancy percentage 101% or higher >101% Net per diems vs 2019 7.0 – 8.0% 10.5% Adj cruise costs exc. fuel per ALBD vs 2019 10.0 – 11.0% 11.0% Adj EBITDA $800M - $900M $946M Adj net income/(loss) ($225M) – ($125M) ($90M) Four
Slide 5: Strategic Focus to Drive Demand Delivered Sequential Yield Improvement
Strategic Focus to Drive Demand Delivered Sequential Yield Improvement and Continued Positive Trajectory 2023 Net Per Diems as % of 2019 2023 Occupancy as % of 2019 2023 Net Yields as % of 2019 = St. Petersburg 2019 impact 110% 108% ~108% FY 2023 100% 100% 100% 98% 94% 87% 85% 85% 85% 1Q 2Q 3Q 4Q 1Q
Slide 6: Underlying Unit EBITDA Surpassed Strong 2019 Levels
Underlying Unit EBITDA Surpassed Strong 2019 Levels 2023 Adjusted EBITDA per ALBD Holding Fuel Price and Currency Constant to 2019 105% Expected ~100% 90% 73% 59% 1Q 2Q 3Q 4Q 5
Slide 7: Poised for Another Step Change in Operating Improvement in 2024
Poised for Another Step Change in Operating Improvement in 2024 FY 2024 Guidance Net yields vs 2023 Approx. 8.5% Adj cruise costs exc. fuel per ALBD vs 2023 Approx. 4.5% Adj EBITDA Approx. $5.6B Adj net income Approx. $1.2B Adj EPS Approx. $0.93 Set up to deliver another year of record revenues and
Slide 8: Record of Nearly Two Thirds of Our Business on the Books at Higher Prices
With A Record of Nearly Two Thirds of Our Business on the Books at Considerably Higher Prices,TheOur Demand Generation Efforts Are Clearly Working page numbering is dependent on the placeholder text boxes on As Seen In… the page layout in the master view, so please DO NOT remove them • Recent Trends
Slide 9: Making Good Progress And Continuing To Up Our Game Across The Commercial Space
Making Good Progress And Continuing To Up Our Game Across The Commercial Space Areas of Focus ✓ Brand Positioning ✓ Creative Marketing ✓ Digital Performance Marketing ✓ Trade Relationships Strength ✓ Internal Sales Support ✓ Deployment and Itinerary Planning ✓ Revenue Management Execution ✓ Onboard
Slide 10: Demand Generation Efforts Capturing New to Cruise Guests
Demand Generation Efforts Capturing New to Cruise Guests New Guests Sailed as % of 4Q'19 Total Volume of New Guests Sailed 115% 81% +51% +26% 21% 4Q'21 4Q'22 4Q'23 4Q'22 4Q'23 4Q'22 4Q'23 New to Cruise New to Brand New to Brand New to Cruise New to cruise and new to brand guests exceeded strong 2019
Slide 11: Digital Performance Marketing Driving New Demand
Digital Performance Marketing Driving New Demand Percentage Growth in Percentage Growth in Percentage Growth in Web Visits Paid Search Clicks Natural Search Visits +~35% +~75% +~50% 2019 2023 2019 2023 2019 2023 Increased awareness and consideration for our brands building ongoing pipeline of new de
Slide 12: Lengthened Booking Curve on Improved Revenue Management Execution
Lengthened Booking Curve on Improved Revenue Management Execution Average Months Booked Before Sailing as % of 2019 North America(a) Europe(b) 106% 100% 100% 100% 100% 81% 75% 75% 1Q'23 4Q'23 1Q'23 4Q'23 Sustained strength from North American brands with European brands showing great acceleration (a
Slide 13: Driving Onboard Revenue Growth Through Multiple Wallets
Driving Onboard Revenue Growth Through Multiple Wallets Up to 24 Months Prior Until 3 Days Prior During Phase: Purchase Cruise Package ($) Pre-Cruise ($$) Onboard ($$$) Revenue Introducing More Targeted Special Offers Additional Amenities and Experiences Opportunity Bundled Offers Pre-Cruise Onboard
Slide 14: Creating Excitement Around Our New Ships and Destinations
Creating Excitement Around Our New Ships and Destinations 13
Slide 15: Benefitting From Three Fantastic New Ships in 2023
Benefitting From Three Fantastic New Ships in 2023 The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Seabourn Pursuit Carnival Celebration P&O Arvia
Slide 16: Delivering Three More Incredible New Ships in 2024
Delivering Three More Incredible New Ships in 2024 The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Carnival Jubilee Sun Princess Queen Anne
Slide 17: Instant Success of Carnival Fun Italian Style Platform
Instant Success of Carnival Fun Italian Style Platform The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Carnival Venezia Carnival Firenze Introduced in 2023 Coming in 2024
Slide 18: Leaning Into Our Unrivaled Destination Footprint
Leaning Into Leaning OurOur Into Unrivaled Destination Unrivaled Footprint Destination Footprint Unveiling Celebration Key • Largest and closest destination in our portfolio • Bringing 18 Carnival ships departing from 9 homeports beginning 2H 2025 17
Slide 19: Significant Upsize in Guest Traffic at Half Moon Cay Coming in 2H 2026
Significant Upsize in Guest Traffic at Half Moon Cay Coming in 2H 2026 18
Slide 20: Spectacular New Campaigns Keep Our Strong Momentum Through WAVE Season
Spectacular New Campaigns Keep Our Strong Momentum Through WAVE Season and Beyond Click on each photo below for sneak peek! “Experience Yourself Differently” “Wonder Can Leave You Speechless” 19
Slide 21: Maintaining Effective Level of Advertising Spend
Maintaining Effective Level of Advertising Spend… A&P SPEND PER ALBD 2019 A&P SPEND PER ALBD AMONG PEERS $21 +~1% +~12% $11 $9 2024E $1 2019 Actual $8 2019 2023 2024E CARNIVAL PEER 1 PEER 2 CORP …to continue building demand well outside of the current year 20
Slide 22: Leveraging Our Scale to Mitigate Inflation
Leveraging Our Scale to Mitigate Inflation Adj. Cruise Costs exc. Fuel per ALBD Notable Cost Optimization Initiatives 50% • Starlink ~4.5% • Essentially complete with roll-out across the fleet ~0.75% • Expected to produce a >20% reduction in cost per megabit in 2024 • Significantly increase our band
Slide 23: Continuing to Manage Fuel Costs the Best Way Possible… By Consuming Less
Continuing to Manage Fuel Costs the Best Way Possible… By Consuming Less Fuel Tons Consumed per kALBD by Year Continuing to Reduce Fuel Consumption Industry Leading Fuel Efficiency Fuel Consumption in 2023 +34% (~16%) (~19%) +9% 43 38 32 35 32 31 ACTUAL ESTIMATE ESTIMATE 2019 2023 2024E CARNIVAL PEE
Slide 24: Accelerating Our Path Back to Investment Grade
Accelerating Our Path Back to Investment Grade by Increasing EBITDA, Managing Down Our Debt, and Reducing Interest Expense
Slide 25: 2023 Deleveraging Efforts Pave the Way for Investment Grade Credit Ratings
2023 Deleveraging Efforts Pave the Way for Investment Grade Credit Ratings and Higher ROIC Called $1.2B of our highest cost debt after stretching out a 2025 maturity on favorable terms Pre-paid $2.8B of additional debt Over $1.0B of customer deposit reserves returned to us by our credit card process
Slide 26: Made Debt Payments of ~$6B Including ~$4B of Prepayments
Made Debt Payments of ~$6B Including ~$4B of Prepayments 2023 Scheduled Maturities and Prepayments In Billions $6.1 $4.0 $2.7 $1.8 $2.3 $1.2 $0.8 $2.1 $0.4 $0.7 $0.6 $0.4 $0.4 1Q 2Q 3Q 4Q FY Scheduled Maturities Prepayments And drew down ~$1.2B of favorable export credits Prepayments in 2Q include p
Slide 27: Accelerating Deleveraging Efforts
Accelerating Deleveraging Efforts 2023 Total Debt In Billions 13% decrease since our peak $35.1 $33.7 $31.3 $30.6 1Q 2Q 3Q 4Q Ended the year ~$5B below the peak and ~$3B less than March Guidance 26
Slide 28: Manageable Near-Term Maturities Plus Other Levers
Manageable Near-Term Maturities Plus Other Levers Maturity Schedule(a) Levers Export Credits Available Total Principal Repayments (In Billions) In Billions In Billions $5.4B liquidity as of 4Q’23 $3.2 $0.1 $3.0 $2.2 $2.2 $2.1 $0.2 $1.9 $0.4 $0.4 $0.9 $0.4 $1.0 $1.2 $1.2 $1.2 $0.8 2024 2025 2026 Conv
Slide 29: Entered 2024 Ahead of Plan To Achieve Our 2026 SEA Change Targets
Entered 2024 Ahead of Plan To Achieve Our 2026 SEA Change Targets Based on The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Strong 2H 2023 Outperformance SEA Change Targets • Highest Adjusted EBITDA per ALBD in nearly t
Slide 30: 2024 Guidance Places Us More Than Halfway to Achieving Our SEA Change Targets
2024 Guidance Places Us More Than Halfway to Achieving All of Our SEA Change Targets Adj. EBITDA per ALBD Adj. ROIC Greenhouse Gas Intensity (Reduction) vs. 2023 June Guidance In Tons Per Berth Day vs. 2019 50% 12% (20%) (18%) 9% 27% 2024 EST. 2026 TARGET 2024 EST. 2026 TARGET 2024 EST. 2026 TARGET
Slide 31: Strong Momentum in 2024 and Beyond
Strong Momentum in 2024 and Beyond Actively managing down debt and aggressively reducing interest expense 2024+ Three new flagships to be delivered: (Carnival Jubilee, Set up to deliver record 2024+ Increasing margins, Adjusted Sun Princess, and Queen revenues and record EBITDA EBITDA per ALBD, and
Slide 32: Appendix
The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Appendix
Slide 33: Guidance
Guidance 12024 ull Year 2024 Current Constant Current ‘Constant ‘Year over yeer change Dollar: Currency Dallars Currency Netyielés Approx 165% Appx 165% Approx 855 Approx 85% Adjusted cruise costsexchuding fuel per ALBD Approx. 10.0% Approx. 5% Approx 4.5% Approx. 5 2024 19 20 3g 4Q__ FalllYear ALBD
Slide 34: Capacity by Market – 2024
Capacity by Market – 2024 1Q 2Q 3Q 4Q Full Year Caribbean 46% 33% 26% 30% 33% Northern Europe 10% 15% 24% 17% 17% Mediterranean 4% 13% 20% 18% 14% Australia/New Zealand 11% 7% 3% 7% 7% Alaska 0% 4% 16% 5% 6% Other Programs 29% 27% 10% 23% 22% Total 100% 100% 100% 100% 100% 33
Slide 35: Our Sustainability Strategy Sustainable From Ship to Shore
Our Sustainability Strategy Sustainable From Ship to Shore Climate Action Circular Economy Good Health & Well-Being Improving ship energy efficiency, and Minimizing the waste generated by our Expanding well-being programs to testing and investing in new low and operations and activities, and support
Slide 36: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use non-GAAP financial measures and they are provided along with their most comparative U.S. GAAP financial measure: The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the finan
Slide 37: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non- GAAP measures prov
Slide 38: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 37
Slide 39: Reconciliation of Net Yields and Net Per Diems
Reconciliation of Net Yields and Net Per Diems 38
Carnival Corporation & — Q4 2023 Earnings Presentation on 6ix