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1 david candib symposuim panel june 15


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1 david candib symposuim panel june 15

  1. 1. Cruise Canada New England Symposium<br />Mega Trends<br />June 15,2011<br />
  2. 2. Carnival Corporation & plc<br />Key Operating Statistics <br /><ul><li> 10 Brands
  3. 3. 6 Countries (8 Operating Headquarters)
  4. 4. United States (Miami, Santa Clarita, Seattle)
  5. 5. UK, Italy, Germany, Spain and Australia
  6. 6. Shipboard employees 75,000
  7. 7. Shoreside employees 14,000
  8. 8. Ships 100
  9. 9. Lower berths 197,000
  10. 10. Passengers carried (2010) 9.1m </li></ul>2<br />
  11. 11. Key Financial Statistics – 2010<br /><ul><li> Revenue $14.5b
  12. 12. Net Income $ 2.0b
  13. 13. Cash from Operations $ 3.8b
  14. 14. Conservative capital structure (30% Debt to Capital)
  15. 15. Highest Credit Rating in Leisure (A3/BBB+)</li></ul>3<br />
  16. 16. Multi Brand Strategy Achieves <br />Greater Penetration<br />2010 Share of Guests Sourced<br />United States<br />Rest of World<br />RCL 26%<br />CCL 51%<br />CCL 48%<br />RCL 22%<br />NCL 13%<br />MSC 15%<br />Other 10%<br />Other 15%<br />4<br />Source: Carnival Corporation & plc estimates<br />
  17. 17. Attractive Growth Prospects <br />Available to Multi Brand Strategy<br />……………………………………………………………………………..………………………………………………………………………………………………………………………………………<br />Source: 2010 Statistics obtained from: <br />G.P. Wild, U.S. Census Bureau-International Database, CIA World Fact Book and Mercer Human Resource Consulting and company estimates <br />Continental Europe consists of Germany, Italy, Spain, Portugal and France.<br />5<br />
  18. 18. SignificantGlobalExpansionOpportunity<br /> London – 112k <br />Amsterdam - 29k <br />Toronto – 37k<br />Paris – 78K<br />Berlin – 108k<br />New York – 73k<br />Rome – 44k<br />Madrid – 59k<br />Las Vegas – 132k<br />L.A. – 136k<br />Tokyo – 87k<br />Orlando – 120k<br />Hong Kong – 62k<br />Cancun – 21k<br />New Dehli – 28k<br />Rio – 42k<br />Buenos Aires – 27K<br />Worldwide Hotel Rooms 18.8M<br />Worldwide Cruise Cabins 0.2M<br />6<br />Source: MKG 2009 report and Carnival Corporation & plc estimates as of November 2010<br />
  19. 19. Disney Resort<br />$1,300<br />“FunShip” Vacation<br />$900<br />Overseas Leisure<br />$2,900<br />Las Vegas Resort<br />$1,100<br />7<br />Source: ITA, various visitors bureaus & CCL estimates<br />Cruising’s Value Proposition<br />
  20. 20. Slowing Industry Supply Growth<br /> 7%<br /> 5%<br /> 5%<br /> 4%<br /> 2%<br /> 7<br /> 8<br /> 10<br /> 4<br /> 3<br />Industry Ships<br /> 6<br /> 4<br /> 3<br />Carnival Ships<br /> 2<br /> 1<br />8<br />Source: Carnival Corporation & plc estimates<br />
  21. 21. Key Port Selection Criteria<br /><ul><li> Marketing Potential
  22. 22. Maximizing Ticket Price – Still the vast majority of Cruise Lines’ Revenue
  23. 23. Destination Offerings- Shore Excursions, Guest Experience
  24. 24. Onboard Revenue Potential, Port Leisure Activities, Shopping
  25. 25. Port Infrastructure- Berthing alongside, transportation hub
  26. 26. Logistics set for what class of ships?
  27. 27. Safety (“Perceived”) of Passengers and Crew
  28. 28. Proximity to Other Ports of Call
  29. 29. Personnel (Often unspoken but highly critical)</li></ul>9<br />
  30. 30. Carnival and New York<br /><ul><li> One of our largest Port Commitments Worldwide
  31. 31. 7 Brands Calling
  32. 32. Carnival Cruise Lines, Princess Cruises, Holland America, Costa, Aida, Costa, Seabourn
  33. 33. 18 Different Ships – Queen Mary 2 to Seabourn Spirit
  34. 34. 630,000 Passengers </li></ul>10<br />
  35. 35. Carnival and New York<br /><ul><li>Operating from both Manhattan and Brooklyn
  36. 36. Brooklyn was developed with the EDC
  37. 37. Not an easy sell initially!
  38. 38. Variety of Deployments
  39. 39. Canada/New England (4,5 & 7 + days)
  40. 40. Bermuda
  41. 41. Caribbean
  42. 42. Transatlantic
  43. 43. Bahamas
  44. 44. Multi-Overnight Stays
  45. 45. Year-round (CCL just announced!)
  46. 46. Cruises to Nowhere</li></ul>11<br />
  47. 47. What is Working in the Region<br /><ul><li> Proactive Port Authority and Governmental Agencies
  48. 48. Cities embracing cruise tourism
  49. 49. Saint Lawrence region (CSLA), Portland, Maine
  50. 50. Direct marketing efforts (NE/CA Symposium)
  51. 51. Source Market Potential
  52. 52. Repeat and First Time Cruises
  53. 53. Carnival - Boston 2012
  54. 54. Highly Rated Shore Excursion and Recreational Options
  55. 55. Excellent relations with tour operators
  56. 56. New and unique tours are continuously offered</li></ul>12<br />
  57. 57. Region Challenges<br /><ul><li> Very high operating costs (Idle Staff charges)
  58. 58. Bermuda
  59. 59. One port destination
  60. 60. “Open-Jaw” itineraries (NYC/BOS - Quebec/Montreal)
  61. 61. Air cost and complexity present obstacles for demand
  62. 62. Port of Call Options still limited
  63. 63. New Developments needed to entice repeat cruisers and generate interest from cruise rookies
  64. 64. Weather dependent and Seasonality </li></ul>13<br />
  65. 65. Emissions Control Areas (“ECA”)<br /><ul><li> Carnival Cruise Lines may be impacted more than other cruise lines given its year-round North American homeport presence
  66. 66. All cruise lines will need to find ways to mitigate ECA impact
  67. 67. NE/CA itineraries require extended times within ECA zone
  68. 68. Significant impact on fuel costs, escalating 30%+ by 2015
  69. 69. Availability of Low Sulfur Fuel </li></ul>14<br />
  70. 70. Forward Looking Statements and Responsibility<br />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 <br />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 <br />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 <br />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 <br />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, <br />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, <br />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 <br />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:<br /><ul><li>general economic and business conditions;
  71. 71. fluctuations in foreign currency exchange rates;
  72. 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. 73. competition from and overcapacity in the cruise ship or land-based vacation industries;
  74. 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 </li></ul> and crew;<br /><ul><li>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. 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 </li></ul> Carnival Corporation & plc operate; <br /><ul><li>economic, market and political factors that are beyond Carnival Corporation & plc’s control, which could increase its operating, financing and other costs;
  76. 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. 77. increases to Carnival Corporation & plc’s repairs and maintenance expenses and refurbishment costs as its fleet ages;
  78. 78. Carnival Corporation & plc’s continued strength of its cruise brands and Carnival Corporation & plc’s ability to implement its brand strategies;
  79. 79. Carnival Corporation & plc’s international operations are subject to additional risks not generally applicable to its U.S. operations;
  80. 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. 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 </li></ul> terms that are favorable or consistent with its expectations; <br /><ul><li>Carnival Corporation & plc’s counterparties’ abilities to perform;
  82. 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 </li></ul> increases in the pricing for, the services and products provided by these vendors; <br /><ul><li>Carnival Corporation & plc’s decisions to self-insure against various risks or its inability to obtain insurance for certain risks at reasonable rates;
  83. 83. disruptions and other damages to Carnival Corporation & plc’s information technology and other networks and operations and breaches in data security;
  84. 84. loss of key personnel or Carnival Corporation & plc’s ability to recruit or retain qualified personnel;
  85. 85. union disputes and other employee relation issues;
  86. 86. lack of continuing availability of attractive, convenient and safe port destinations; and
  87. 87. risks associated with the dual listed company arrangement.</li></ul>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 <br />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 & <br />plc’s businesses, results of operations and financial positions.<br />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 <br />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 <br />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 <br />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<br />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 <br />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.<br />15<br />
  88. 88. Thank You!<br />