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1 david candib symposuim panel june 15

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  • 1. Cruise Canada New England Symposium
    Mega Trends
    June 15,2011
  • 2. Carnival Corporation & plc
    Key Operating Statistics
    • 10 Brands
    • 3. 6 Countries (8 Operating Headquarters)
    • 4. United States (Miami, Santa Clarita, Seattle)
    • 5. UK, Italy, Germany, Spain and Australia
    • 6. Shipboard employees 75,000
    • 7. Shoreside employees 14,000
    • 8. Ships 100
    • 9. Lower berths 197,000
    • 10. Passengers carried (2010) 9.1m
    2
  • 11. Key Financial Statistics – 2010
    • Revenue $14.5b
    • 12. Net Income $ 2.0b
    • 13. Cash from Operations $ 3.8b
    • 14. Conservative capital structure (30% Debt to Capital)
    • 15. Highest Credit Rating in Leisure (A3/BBB+)
    3
  • 16. Multi Brand Strategy Achieves
    Greater Penetration
    2010 Share of Guests Sourced
    United States
    Rest of World
    RCL 26%
    CCL 51%
    CCL 48%
    RCL 22%
    NCL 13%
    MSC 15%
    Other 10%
    Other 15%
    4
    Source: Carnival Corporation & plc estimates
  • 17. Attractive Growth Prospects
    Available to Multi Brand Strategy
    ……………………………………………………………………………..………………………………………………………………………………………………………………………………………
    Source: 2010 Statistics obtained from:
    G.P. Wild, U.S. Census Bureau-International Database, CIA World Fact Book and Mercer Human Resource Consulting and company estimates
    Continental Europe consists of Germany, Italy, Spain, Portugal and France.
    5
  • 18. SignificantGlobalExpansionOpportunity
    London – 112k
    Amsterdam - 29k
    Toronto – 37k
    Paris – 78K
    Berlin – 108k
    New York – 73k
    Rome – 44k
    Madrid – 59k
    Las Vegas – 132k
    L.A. – 136k
    Tokyo – 87k
    Orlando – 120k
    Hong Kong – 62k
    Cancun – 21k
    New Dehli – 28k
    Rio – 42k
    Buenos Aires – 27K
    Worldwide Hotel Rooms 18.8M
    Worldwide Cruise Cabins 0.2M
    6
    Source: MKG 2009 report and Carnival Corporation & plc estimates as of November 2010
  • 19. Disney Resort
    $1,300
    “FunShip” Vacation
    $900
    Overseas Leisure
    $2,900
    Las Vegas Resort
    $1,100
    7
    Source: ITA, various visitors bureaus & CCL estimates
    Cruising’s Value Proposition
  • 20. Slowing Industry Supply Growth
    7%
    5%
    5%
    4%
    2%
    7
    8
    10
    4
    3
    Industry Ships
    6
    4
    3
    Carnival Ships
    2
    1
    8
    Source: Carnival Corporation & plc estimates
  • 21. Key Port Selection Criteria
    • Marketing Potential
    • 22. Maximizing Ticket Price – Still the vast majority of Cruise Lines’ Revenue
    • 23. Destination Offerings- Shore Excursions, Guest Experience
    • 24. Onboard Revenue Potential, Port Leisure Activities, Shopping
    • 25. Port Infrastructure- Berthing alongside, transportation hub
    • 26. Logistics set for what class of ships?
    • 27. Safety (“Perceived”) of Passengers and Crew
    • 28. Proximity to Other Ports of Call
    • 29. Personnel (Often unspoken but highly critical)
    9
  • 30. Carnival and New York
    • One of our largest Port Commitments Worldwide
    • 31. 7 Brands Calling
    • 32. Carnival Cruise Lines, Princess Cruises, Holland America, Costa, Aida, Costa, Seabourn
    • 33. 18 Different Ships – Queen Mary 2 to Seabourn Spirit
    • 34. 630,000 Passengers
    10
  • 35. Carnival and New York
    • Operating from both Manhattan and Brooklyn
    • 36. Brooklyn was developed with the EDC
    • 37. Not an easy sell initially!
    • 38. Variety of Deployments
    • 39. Canada/New England (4,5 & 7 + days)
    • 40. Bermuda
    • 41. Caribbean
    • 42. Transatlantic
    • 43. Bahamas
    • 44. Multi-Overnight Stays
    • 45. Year-round (CCL just announced!)
    • 46. Cruises to Nowhere
    11
  • 47. What is Working in the Region
    • Proactive Port Authority and Governmental Agencies
    • 48. Cities embracing cruise tourism
    • 49. Saint Lawrence region (CSLA), Portland, Maine
    • 50. Direct marketing efforts (NE/CA Symposium)
    • 51. Source Market Potential
    • 52. Repeat and First Time Cruises
    • 53. Carnival - Boston 2012
    • 54. Highly Rated Shore Excursion and Recreational Options
    • 55. Excellent relations with tour operators
    • 56. New and unique tours are continuously offered
    12
  • 57. Region Challenges
    • Very high operating costs (Idle Staff charges)
    • 58. Bermuda
    • 59. One port destination
    • 60. “Open-Jaw” itineraries (NYC/BOS - Quebec/Montreal)
    • 61. Air cost and complexity present obstacles for demand
    • 62. Port of Call Options still limited
    • 63. New Developments needed to entice repeat cruisers and generate interest from cruise rookies
    • 64. Weather dependent and Seasonality
    13
  • 65. Emissions Control Areas (“ECA”)
    • Carnival Cruise Lines may be impacted more than other cruise lines given its year-round North American homeport presence
    • 66. All cruise lines will need to find ways to mitigate ECA impact
    • 67. NE/CA itineraries require extended times within ECA zone
    • 68. Significant impact on fuel costs, escalating 30%+ by 2015
    • 69. Availability of Low Sulfur Fuel
    14
  • 70. Forward Looking Statements and Responsibility
    Some of the statements, estimates or projections contained in this presentation are “forward-looking statements” that involve risks, uncertainties and assumptions with respect to Carnival
    Corporation & plc, including some statements concerning future results, outlooks, plans, goals and other events which have not yet occurred. These statements are intended to qualify for the safe
    harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Carnival Corporation & plc has tried, whenever possible, to
    identify these statements by using words like “will,” “may,” “believe,” “expect,” “could,” “should,” “would,” “anticipate,” “forecast,” “future,” “intend,” “plan,” “estimate” and similar expressions of future
    intent or the negative of such terms. Because forward-looking statements involve risks and uncertainties, there are many factors that could cause Carnival Corporation & plc’s actual results,
    performance or achievements to differ materially from those expressed or implied in this presentation. Forward-looking statements include those statements which may impact, among other things,
    the forecasting of Carnival Corporation & plc’s earnings per share, net revenue yields, booking levels, pricing, occupancy, operating, financing and tax costs, fuel expenses, costs per available lower
    berth day, estimates of ship depreciable lives and residual values, liquidity, goodwill and trademark fair values and outlook. These factors include, but are not limited to, the following:
    • general economic and business conditions;
    • 71. fluctuations in foreign currency exchange rates;
    • 72. the international political climate, armed conflicts, terrorist and pirate attacks, vessel seizures, and threats thereof, and other world events affecting the safety and security of travel;
    • 73. competition from and overcapacity in the cruise ship or land-based vacation industries;
    • 74. accidents, the spread of contagious diseases and threats thereof, adverse weather conditions or natural disasters and other incidents affecting the health, safety, security and satisfaction of guests
    and crew;
    • adverse publicity concerning the cruise industry in general, or Carnival Corporation & plc in particular, including any adverse impact that cruising may have on the marine environment;
    • 75. changes in and compliance with laws and regulations relating to the protection of persons with disabilities, employment, environment, health, safety, security, tax and other regulations under which
    Carnival Corporation & plc operate;
    • economic, market and political factors that are beyond Carnival Corporation & plc’s control, which could increase its operating, financing and other costs;
    • 76. the ability of Carnival Corporation & plc to implement its shipbuilding programs and ship repairs, maintenance and refurbishments on terms that are favorable or consistent with its expectations;
    • 77. increases to Carnival Corporation & plc’s repairs and maintenance expenses and refurbishment costs as its fleet ages;
    • 78. Carnival Corporation & plc’s continued strength of its cruise brands and Carnival Corporation & plc’s ability to implement its brand strategies;
    • 79. Carnival Corporation & plc’s international operations are subject to additional risks not generally applicable to its U.S. operations;
    • 80. geographic regions in which Carnival Corporation & plc tries to expand its business may be slow to develop and ultimately not develop how it expects;
    • 81. whether Carnival Corporation & plc’s future operating cash flow will be sufficient to fund future obligations and whether it will be able to obtain financing, if necessary, in sufficient amounts and on
    terms that are favorable or consistent with its expectations;
    • Carnival Corporation & plc’s counterparties’ abilities to perform;
    • 82. continuing financial viability of Carnival Corporation & plc’s travel agent distribution system, air service providers and other key vendors in its supply chain and reductions in the availability of, and
    increases in the pricing for, the services and products provided by these vendors;
    • Carnival Corporation & plc’s decisions to self-insure against various risks or its inability to obtain insurance for certain risks at reasonable rates;
    • 83. disruptions and other damages to Carnival Corporation & plc’s information technology and other networks and operations and breaches in data security;
    • 84. loss of key personnel or Carnival Corporation & plc’s ability to recruit or retain qualified personnel;
    • 85. union disputes and other employee relation issues;
    • 86. lack of continuing availability of attractive, convenient and safe port destinations; and
    • 87. risks associated with the dual listed company arrangement.
    These risks and other risks are detailed in reports of Carnival Corporation and Carnival plc filed with the U.S. Securities and Exchange Commission. Those reports contain important cautionary
    statements and a discussion of many of the factors that could materially affect the accuracy of Carnival Corporation & plc’s forward-looking statements and/or adversely affect Carnival Corporation &
    plc’s businesses, results of operations and financial positions.
    Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, Carnival
    Corporation and Carnival plc expressly disclaim any obligation to disseminate, after the date of this presentation, any updates or revisions to any such forward-looking statements to reflect any change
    in expectations or events, conditions or circumstances on which any such statements are based. This presentation is for distribution only to persons who (i) are outside the United Kingdom or (ii) have
    professional experience in matters relating to investments or (iii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations, etc”) of The Financial Services
    and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) (all such persons together being referred to as “relevant persons”). This presentation must not be acted on or relied on by
    persons who are not relevant persons. Any investment or investment activity to which this presentation relates is available only to relevant persons and will be engaged in only with relevant persons.
    15
  • 88. Thank You!

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