bc55f40e2d5cd5954794bd10904e056119848a39b0e9464d7bd8dca762f0aa09

eb8072e49b47bccfd3f3b849bba1c729efb72c1347de6524df75bddf186e58ad

| Metric (USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------|---------|---------|---------|---------|---------|---------|---------|
| Passenger Ticket Revenue | **$1,208,841,000**  **[0001171843-23-002707_exh_991.htm:9]**  | **$1,478,474,000**  **[0001171843-23-004830_exh_991.htm:10]**  | **$1,733,594,000**  **[0001171843-23-006578_exh_991.htm:13]**  | **$1,333,057,000**  **[0001171843-24-001001_exh_991.htm:13]**  | **$1,459,814,000**  **[0001171843-24-002396_exh_991.htm:11]**  | **$1,602,076,000**  **[0001171843-24-004274_exh_991.htm:12]**  | **$1,944,921,000**  **[0001171843-24-005927_exh_991.htm:11]**  |
| Onboard and Other Revenue | **$613,098,000**  **[0001171843-23-002707_exh_991.htm:9]**  | **$727,018,000**  **[0001171843-23-004830_exh_991.htm:10]**  | **$802,443,000**  **[0001171843-23-006578_exh_991.htm:13]**  | **$653,399,000**  **[0001171843-24-001001_exh_991.htm:13]**  | **$731,401,000**  **[0001171843-24-002396_exh_991.htm:11]**  | **$770,416,000**  **[0001171843-24-004274_exh_991.htm:12]**  | **$861,657,000**  **[0001171843-24-005927_exh_991.htm:11]**  |
| Total Revenue | **$1,821,939,000**  **[0001171843-23-002707_exh_991.htm:9]**  | **$2,205,492,000**  **[0001171843-23-004830_exh_991.htm:10]**  | **$2,536,037,000**  **[0001171843-23-006578_exh_991.htm:13]**  | **$1,986,456,000**  **[0001171843-24-001001_exh_991.htm:13]**  | **$2,191,215,000**  **[0001171843-24-002396_exh_991.htm:11]**  | **$2,372,492,000**  **[0001171843-24-004274_exh_991.htm:12]**  | **$2,806,578,000**  **[0001171843-24-005927_exh_991.htm:11]**  |

e7ae8f4c1b4304906f8e3e8ec103a9a380f95e426739bc35d68aec87f4f3c8f0

| Metric (Unit) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Berths | **62,000**  **[0001558370-23-002361_nclh-20221231x10k.htm:126]**  | **61,000**  **[0001558370-23-008225_nclh-20230331x10q.htm:6]**  | **62,000**  **[0001558370-23-013825_nclh-20230630x10q.htm:7]**  | **65,000+**  **[0001171843-23-006578_exh_991.htm:7]**  | **66,500**  **[0001171843-24-001001_exh_991.htm:6]** **[0001558370-24-001935_nclh-20231231x10k.htm:6]**  | **66,500**  **[0001171843-24-004274_exh_991.htm:6]** **[0001171843-24-001001_exh_991.htm:6]**  | **66,500**  **[0001171843-24-004274_exh_991.htm:6]**  | **66,500**  **[0001171843-24-004274_exh_991.htm:6]**  |
| Passengers Carried | **551,344**  **[0001171843-23-001224_exh_991.htm:13]**  | **633,910**  **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **693,085**  **[0001171843-23-004830_exh_991.htm:13]** **[0001558370-23-013825_nclh-20230630x10q.htm:37]**  | **740,658**  **[0001558370-23-018153_nclh-20230930x10q.htm:37]**  | **648,893**  **[0001171843-24-001001_exh_991.htm:17]**  | **736,559**  **[0001171843-24-002396_exh_991.htm:14]** **[0001558370-24-007014_nclh-20240331x10q.htm:29]**  | **711,918**  **[0001558370-24-011514_nclh-20240630x10q.htm:30]** **[0001171843-24-004274_exh_991.htm:14]**  | **812,529**  **[0001558370-24-014784_nclh-20240930x10q.htm:33]** **[0001171843-24-005927_exh_991.htm:13]**  |
| Passenger Cruise Days | **4,380,465**  **[0001171843-23-001224_exh_991.htm:13]**  | **5,497,106**  **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **5,781,750**  **[0001171843-23-004830_exh_991.htm:13]** **[0001558370-23-013825_nclh-20230630x10q.htm:37]**  | **6,176,403**  **[0001558370-23-018153_nclh-20230930x10q.htm:37]**  | **5,856,413**  **[0001171843-24-001001_exh_991.htm:17]**  | **6,112,370**  **[0001171843-24-002396_exh_991.htm:14]** **[0001558370-24-007014_nclh-20240331x10q.htm:29]**  | **6,077,574**  **[0001558370-24-011514_nclh-20240630x10q.htm:30]** **[0001171843-24-004274_exh_991.htm:15]**  | **6,521,610**  **[0001558370-24-014784_nclh-20240930x10q.htm:33]** **[0001171843-24-005927_exh_991.htm:13]**  |
| Capacity Days | **5,060,866**  **[0001171843-23-001224_exh_991.htm:14]** **[0001171843-23-001224_exh_991.htm:13]**  | **5,415,547**  **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **5,513,288**  **[0001558370-23-013825_nclh-20230630x10q.htm:38]** **[0001558370-23-013825_nclh-20230630x10q.htm:37]**  | **5,820,448**  **[0001558370-23-018153_nclh-20230930x10q.htm:38]** **[0001558370-23-018153_nclh-20230930x10q.htm:37]**  | **5,903,305**  **[0001171843-24-001001_exh_991.htm:17]**  | **5,841,015**  **[0001558370-24-007014_nclh-20240331x10q.htm:29]** **[0001171843-24-002396_exh_991.htm:14]**  | **5,736,385**  **[0001558370-24-011514_nclh-20240630x10q.htm:31]**  | **6,033,707**  **[0001558370-24-014784_nclh-20240930x10q.htm:34]**  |
| Occupancy Percentage | **86.6%**  **[0001171843-23-001224_exh_991.htm:13]**  | **101.5%**  **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **104.9%**  **[0001558370-23-013825_nclh-20230630x10q.htm:37]**  | **106.1%**  **[0001558370-23-018153_nclh-20230930x10q.htm:37]** **[0001171843-23-006578_exh_991.htm:15]**  | **99.2%**  **[0001171843-24-001001_exh_991.htm:17]**  | **104.6%**  **[0001171843-24-002396_exh_991.htm:14]** **[0001558370-24-007014_nclh-20240331x10q.htm:29]**  | **105.9%**  **[0001558370-24-011514_nclh-20240630x10q.htm:30]**  | **108.1%**  **[0001558370-24-014784_nclh-20240930x10q.htm:33]** **[0001171843-24-005927_exh_991.htm:13]**  |
| Gross Margin per Capacity Day ($) | **25.22**  **[0001171843-23-001224_exh_991.htm:13]**  | **66.47**  **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **115.79**  **[0001171843-23-004830_exh_991.htm:13]**  | **148.23**  **[0001171843-23-006578_exh_991.htm:16]**  | **79**  **[0001171843-24-001001_exh_991.htm:1]**  | **101.99**  **[0001171843-24-002396_exh_991.htm:14]**  | **124.01**  **[0001171843-24-004274_exh_991.htm:15]**  | **176.45**  **[0001171843-24-005927_exh_991.htm:14]**  |
| Net Yield ($) | **239.70**  **[0001171843-23-001224_exh_991.htm:13]**  | **238.68**  **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **278.74**  **[0001558370-23-013825_nclh-20230630x10q.htm:38]**  | **309.48**  **[0001558370-23-018153_nclh-20230930x10q.htm:38]**  | **243.27**  **[0001171843-24-001001_exh_991.htm:17]**  | **277.86**  **[0001558370-24-007014_nclh-20240331x10q.htm:29]** **[0001171843-24-002396_exh_991.htm:14]**  | **296.31**  **[0001558370-24-011514_nclh-20240630x10q.htm:31]** **[0001171843-24-004274_exh_991.htm:15]**  | **336.48**  **[0001558370-24-014784_nclh-20240930x10q.htm:34]** **[0001171843-24-005927_exh_991.htm:14]**  |
| Gross Cruise Cost per Capacity Day ($) | **315.75**  **[0001171843-23-001224_exh_991.htm:14]**  | **298**  **[0001171843-23-002707_exh_991.htm:2]** **[0001171843-23-002707_exh_991.htm:0]**  | **315**  **[0001171843-23-004830_exh_991.htm:1]** **[0001171843-23-004830_exh_991.htm:2]**  | **311**  **[0001558370-23-018153_nclh-20230930x10q.htm:38]** **[0001171843-23-006578_exh_991.htm:18]** **[0001171843-23-006578_exh_991.htm:16]**  | **280**  **[0001171843-24-001001_exh_991.htm:3]** **[0001171843-24-001001_exh_991.htm:1]**  | **300**  **[0001171843-24-002396_exh_991.htm:14]** **[0001171843-24-002396_exh_991.htm:1]** **[0001171843-24-002396_exh_991.htm:0]**  | **315.27**  **[0001171843-24-004274_exh_991.htm:16]** **[0001558370-24-011514_nclh-20240630x10q.htm:31]**  | **314.39**  **[0001558370-24-014784_nclh-20240930x10q.htm:34]**  |
| Net Cruise Cost per Capacity Day ($) | **228.78**  **[0001171843-23-001224_exh_991.htm:14]**  | **200.73**  **[0001171843-23-002707_exh_991.htm:12]** **[0001558370-23-008225_nclh-20230331x10q.htm:33]**  | **193.55**  **[0001558370-23-013825_nclh-20230630x10q.htm:38]**  | **184.42**  **[0001171843-23-006578_exh_991.htm:16]**  | **186.29**  **[0001171843-24-001001_exh_991.htm:18]**  | **202.30**  **[0001171843-24-002396_exh_991.htm:14]** **[0001558370-24-007014_nclh-20240331x10q.htm:29]**  | **198.00**  **[0001171843-24-004274_exh_991.htm:16]** **[0001558370-24-011514_nclh-20240630x10q.htm:31]**  | **185.72**  **[0001171843-24-005927_exh_991.htm:15]** **[0001558370-24-014784_nclh-20240930x10q.htm:34]**  |
| Net Cruise Cost Excluding Fuel per Capacity Day ($) | **192.59**  **[0001171843-23-001224_exh_991.htm:14]**  | **164.74**  **[0001171843-23-002707_exh_991.htm:12]**  | **163.76**  **[0001558370-23-013825_nclh-20230630x10q.htm:38]**  | **155.06**  **[0001171843-23-006578_exh_991.htm:16]**  | **154.64**  **[0001171843-24-001001_exh_991.htm:18]**  | **168.45**  **[0001171843-24-002396_exh_991.htm:14]**  | **167.50**  **[0001171843-24-004274_exh_991.htm:16]** **[0001558370-24-011514_nclh-20240630x10q.htm:31]**  | **158.38**  **[0001171843-24-005927_exh_991.htm:15]** **[0001558370-24-014784_nclh-20240930x10q.htm:34]**  |
| Adjusted Net Cruise Cost Excluding Fuel per Capacity Day ($) | **185.18**  **[0001171843-23-001224_exh_991.htm:14]**  | **159**  **[0001171843-23-002707_exh_991.htm:12]** **[NCLH_3248462_5]** **[0001171843-23-002707_exh_991.htm:1]**  | **155.58**  **[0001558370-23-013825_nclh-20230630x10q.htm:38]**  | **152**  **[NCLH_3363261_5]** **[0001171843-23-006578_exh_991.htm:0]**  | **151**  **[0001171843-24-001001_exh_991.htm:3]**  | **165**  **[0001558370-24-007014_nclh-20240331x10q.htm:29]** **[0001171843-24-002396_exh_991.htm:14]** **[0001171843-24-002396_exh_991.htm:2]** **[0001171843-24-002396_exh_991.htm:0]**  | **163**  **[0001171843-24-004274_exh_991.htm:16]** **[0001558370-24-011514_nclh-20240630x10q.htm:31]** **[0001171843-24-004274_exh_991.htm:0]**  | **154.84**  **[0001171843-24-005927_exh_991.htm:15]** **[0001558370-24-014784_nclh-20240930x10q.htm:34]**  |

671b29cbff5296c526fb38e8436a2414f624a7b188b8acbde0875f43dcdde7cb

| Metric (in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|
| North America         | $1,361,053  **[0001558370-23-008225_nclh-20230331x10q.htm:9]**  | $1,221,177  **[0001558370-23-013825_nclh-20230630x10q.htm:11]**  | $1,234,852  **[0001558370-23-018153_nclh-20230930x10q.htm:9]**  | N/A     | $1,560,772  **[0001558370-24-007014_nclh-20240331x10q.htm:8]**  | $1,176,098  **[0001558370-24-011514_nclh-20240630x10q.htm:9]**  | $1,315,224  **[0001558370-24-014784_nclh-20240930x10q.htm:11]**  |
| Europe                | $81,318  **[0001558370-23-008225_nclh-20230331x10q.htm:9]**     | $880,129  **[0001558370-23-013825_nclh-20230630x10q.htm:11]**    | $1,284,421  **[0001558370-23-018153_nclh-20230930x10q.htm:9]**  | N/A     | $25,236  **[0001558370-24-007014_nclh-20240331x10q.htm:8]**     | $1,055,061  **[0001558370-24-011514_nclh-20240630x10q.htm:9]**  | $1,439,473  **[0001558370-24-014784_nclh-20240930x10q.htm:11]**  |
| Asia-Pacific          | $205,662  **[0001558370-23-008225_nclh-20230331x10q.htm:9]**    | $89,890  **[0001558370-23-013825_nclh-20230630x10q.htm:11]**     | $15,972  **[0001558370-23-018153_nclh-20230930x10q.htm:9]**     | N/A     | $397,002  **[0001558370-24-007014_nclh-20240331x10q.htm:8]**    | $118,527  **[0001558370-24-011514_nclh-20240630x10q.htm:9]**    | $50,294  **[0001558370-24-014784_nclh-20240930x10q.htm:11]**     |
| Other                 | $173,906  **[0001558370-23-008225_nclh-20230331x10q.htm:9]**    | $14,296  **[0001558370-23-013825_nclh-20230630x10q.htm:11]**     | $792  **[0001558370-23-018153_nclh-20230930x10q.htm:9]**        | N/A     | $208,205  **[0001558370-24-007014_nclh-20240331x10q.htm:8]**    | $22,806  **[0001558370-24-011514_nclh-20240630x10q.htm:9]**     | $1,587  **[0001558370-24-014784_nclh-20240930x10q.htm:11]**      |
| Total Revenue         | $1,821,939  **[0001558370-23-008225_nclh-20230331x10q.htm:9]**  | $2,205,492  **[0001558370-23-013825_nclh-20230630x10q.htm:11]**  | $2,536,037  **[0001558370-23-018153_nclh-20230930x10q.htm:9]**  | N/A     | $2,191,215  **[0001558370-24-007014_nclh-20240331x10q.htm:8]**  | $2,372,492  **[0001558370-24-011514_nclh-20240630x10q.htm:9]**  | $2,806,578  **[0001558370-24-014784_nclh-20240930x10q.htm:11]**  |

d55d3258121a6fe4967580cd6f502392d4724820cb580823938ae8658f5177a1

Norwegian Cruise Line Holdings Ltd. (NCLH) is a leading global cruise company that operates three distinct brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company offers a wide array of cruise itineraries to destinations across the globe, including Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, the Caribbean, Alaska, and Hawaii. NCLH provides a variety of features and amenities on its ships, such as multiple dining venues, bars, lounges, spas, casinos, retail shopping areas, and numerous entertainment options, along with shore excursions and hotel packages for pre- or post-voyage stays **[0001558370-24-001935_nclh-20231231x10k.htm:6]**. The company's revenue is categorized into "passenger ticket" revenue, which includes accommodations, meals, and certain onboard entertainment, and "onboard and other" revenue, which encompasses casino operations, beverage sales, shore excursions, specialty dining, retail sales, spa services, and Wi-Fi services **[0001558370-24-001935_nclh-20231231x10k.htm:64]** **[0001558370-24-011514_nclh-20240630x10q.htm:27]**.

1. **Passenger Ticket Revenue** - Generates income from accommodations, meals, certain onboard entertainment, government taxes, fees, and port expenses.
2. **Onboard and Other Revenue** - Includes casino operations, beverage sales, shore excursions, specialty dining, retail sales, spa services, and Wi-Fi services. Also earns from onboard activities performed by independent concessionaires, sharing in their revenue.

7114db5e966e42e2bad2522b26e35652918a55629241c40a6904627772bce607

1. Given the cancellation of itineraries in the Middle East resulting in a very short resell cycle and the geopolitical uncertainties in that region  **[NCLH_3395299_4]** , how do you plan to mitigate similar risks in the future, and what impact might this have on your capacity planning and financial targets?

2. While you achieved your net leverage goal six months ahead of schedule, reducing leverage by approximately 1.5x turns to 5.9x  **[NCLH_3395299_7]** , what specific strategies are in place to reach your 2026 target of mid-4x, and what risks could impede progress toward this goal?

3. With plans to add larger and more efficient vessels leading to capacity growth  **[NCLH_3395299_1]** , how confident are you that demand will continue to outpace supply, especially considering potential economic headwinds and the necessity to maintain strong pricing to achieve your yield targets?

4. You've increased your net yield growth guidance to 8.2% for the full year, driven entirely by stronger pricing since occupancy is at full capacity  **[NCLH_3395299_4]** ; are you observing any signs of consumer price resistance, and how sustainable is this pricing strategy in the current market environment?

5. The 2.5% cost spread target for 2025 and 2026 was described as a baseline  **[NCLH_3395299_15]** ; given potential cost pressures such as fuel and labor, how achievable is this target, and what measures are you implementing to ensure you can meet or exceed it?

e6a146aa8c4a751d355a14fd42ed6c2a9544fe15c4a83658d703f008ea0b7916

North America

Europe

Asia-Pacific

South America

Other

- U.S.-sourced guests

Total Revenue

de37d6512ccea6534812aae1c2ec80fb16eaf3aaf591b09f723a378eb4cb7099

Berths

Passengers Carried

Passenger Cruise Days

Capacity Days

Occupancy Percentage

Gross Margin per Capacity Day ($)

Net Yield ($)

Gross Cruise Cost per Capacity Day ($)

Net Cruise Cost per Capacity Day ($)

Net Cruise Cost Excluding Fuel per Capacity Day ($)

Adjusted Net Cruise Cost Excluding Fuel per Capacity Day ($)

c75296e251cd63bac93c137b6beb87097ce8cf1747acc09a11b7dfb22be02dc0

Passenger Ticket Revenue

Onboard and Other Revenue

cbd787e3821c460c7c57334a5fcf835bb03324d61229311305be903866660287

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024

#### Guidance:
1. **FY 2024**:
   - **Adjusted EBITDA**: Approximately **$2.2 billion**, an **18% improvement** versus 2023, with margins improving by almost **250 basis points**  **[NCLH_3375209_4]** .
   - **Adjusted Net Income**: Approximately **$635 million**  **[NCLH_3375209_4]** .
   - **Adjusted EPS**: Approximately **$1.23**, a **76% increase** versus 2023  **[NCLH_3375209_4]** .
   - **Occupancy**: Approximately **105%**  **[NCLH_3375209_4]** .
   - **Net Yield**: Increase of approximately **5.5%**  **[NCLH_3375209_4]** .
   - **Adjusted Net Cruise Cost Excluding Fuel per Capacity Day**: Average of approximately **$159**, a **3.4% increase** versus 2023  **[NCLH_3375209_5]** .

2. **Q1 2024**:
   - **Net Yield**: Increase of approximately **15.5%**  **[NCLH_3375209_5]** .
   - **Adjusted Net Cruise Cost Excluding Fuel per Capacity Day**: **$165**, a **3% increase** versus the same quarter last year  **[NCLH_3375209_5]** .
   - **Adjusted EBITDA**: Approximately **$450 million**  **[NCLH_3375209_6]** .
   - **Adjusted Net Income**: Approximately **$50 million**  **[NCLH_3375209_6]** .
   - **Adjusted EPS**: Approximately **$0.12**  **[NCLH_3375209_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024

#### Guidance:
1. **FY 2024**:
   - **Net Yield Growth**: Raised to approximately **6.5%**  **[NCLH_3381822_5]** .
   - **Adjusted EBITDA**: Increased to **$2.5 billion**  **[NCLH_3381822_5]** .
   - **Adjusted EPS**: Increased to **$1.32**  **[NCLH_3381822_5]** .
   - **Net Leverage**: Reduction by approximately **1.5 turns** from year-end 2023  **[NCLH_3381822_7]** .
   - **Adjusted Operational EBITDA Margin**: Expected to end 2024 at approximately **33.5%**  **[NCLH_3381822_6]** .

2. **Q2 2024**:
   - **Net Yield Growth**: Expected to increase by approximately **4.3%**  **[NCLH_3381822_6]** .
   - **Adjusted Net Cruise Costs, Excluding Fuel per Capacity Day**: Approximately **$165**, with a $9 impact due to increased dry dock days  **[NCLH_3381822_6]** .
   - **Adjusted EBITDA**: Approximately **$555 million**  **[NCLH_3381822_6]** .
   - **Adjusted Net Income**: Approximately **$160 million**  **[NCLH_3381822_6]** .
   - **Adjusted EPS**: Approximately **$0.32**  **[NCLH_3381822_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024

#### Guidance:
1. **FY 2024**:
   - **Adjusted Operational EBITDA Margin**: Expected to end the year at **34.5%**  **[NCLH_3395299_1]** .
   - **Adjusted EPS**: Increased to **$1.53**  **[NCLH_3395299_1]** .
   - **Net Yield Growth**: Expected to increase by **8.2%**  **[NCLH_3395299_5]** .
   - **Adjusted Net Cruise Cost Excluding Fuel Per Capacity Day**: Expected to remain flat  **[NCLH_3395299_5]** .
   - **Adjusted EBITDA**: Increased to **$2.35 billion**  **[NCLH_3395299_5]** .
   - **Adjusted ROIC**: On track for double-digit by year-end  **[NCLH_3395299_1]** .

2. **Q3 2024**:
   - **Net Yield Growth**: Anticipated to be almost **6.5%**  **[NCLH_3395299_5]** .
   - **Adjusted Net Cruise Cost Excluding Fuel PCD**: Expected to increase by **3.3%** to $156  **[NCLH_3395299_6]** .
   - **Adjusted EBITDA**: Expected to be **$870 million**  **[NCLH_3395299_6]** .
   - **Adjusted EPS**: Expected to be **$0.92**  **[NCLH_3395299_6]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A

#### Guidance:
- The documents do not contain information about the Q3 2024 earnings call for Norwegian Cruise Line Holdings (NCLH). Therefore, I cannot provide the guidance metrics from that specific earnings call.

adb3a73a8bd325628d398859d9aa0211e84475c60659479a223f446addba54a2

| Name               | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Harry Sommer       | Director, President and Chief Executive Officer                          | July 1, 2023     | Harry Sommer has served as the President and CEO of NCLH since July 1, 2023. He was previously the President and CEO of Norwegian Cruise Line from January 2020 to March 2023. Sommer has extensive experience in the cruise industry, holding various executive positions within the company  **[0001558370-24-001935_nclh-20231231x10k.htm:33]** **[0001104659-24-053547_tm242856d2_def14a.htm:22]** .                                      |
| Mark A. Kempa      | Executive Vice President and Chief Financial Officer                     | August 2018      | Mark A. Kempa has been the Executive Vice President and CFO of NCLH since August 2018. He was Interim CFO from March 2018 to August 2018 and has been with the company in various roles since 1998, including Senior Vice President, Finance  **[0001558370-24-001935_nclh-20231231x10k.htm:34]** **[0001558370-23-002361_nclh-20221231x10k.htm:34]** .                                                                                     |
| David Herrera      | President, Norwegian brand                                               | April 2023       | David Herrera has been President of Norwegian Cruise Line since April 2023. He was previously the Chief Consumer Sales and Marketing Officer from October 2021 to March 2023 and has held various senior positions within the company  **[0001558370-24-001935_nclh-20231231x10k.htm:34]** **[0001558370-24-001935_nclh-20231231x10k.htm:33]** .                                                                                           |
| Andrea DeMarco     | President, Regent brand                                                  | January 2023     | Andrea DeMarco has served as President of the Regent brand since January 2023. She has over 20 years of experience in the cruise industry, previously serving as Chief Sales and Marketing Officer for Regent Seven Seas Cruises  **[0001558370-24-001935_nclh-20231231x10k.htm:34]** **[0001558370-23-002361_nclh-20221231x10k.htm:35]** .                                                                                                   |
| Frank A. Del Rio   | President, Oceania Cruises brand                                         | January 2023     | Frank A. Del Rio has been President of the Oceania Cruises brand since January 2023. He started his career in the cruise industry in 2003 and has held various positions within the company  **[0001558370-24-001935_nclh-20231231x10k.htm:35]** **[0001558370-23-002361_nclh-20221231x10k.htm:35]** .                                                                                                                                      |
| Patrik Dahlgren    | Executive Vice President, Vessel Operations                              | June 12, 2023    | Patrik Dahlgren has been the Executive Vice President, Vessel Operations for NCLH since June 12, 2023. He previously held various positions at Royal Caribbean Group, including Senior Vice President, Global Marine Operations  **[0001558370-24-001935_nclh-20231231x10k.htm:35]** **[0001558370-24-001935_nclh-20231231x10k.htm:33]** **[0001104659-24-053547_tm242856d2_def14a.htm:72]** .                                                                                               |
| Daniel S. Farkas   | Executive Vice President, General Counsel, Chief Development Officer     | January 2019     | Daniel S. Farkas has been Executive Vice President and General Counsel since January 2019 and became Chief Development Officer in April 2023. He joined the company in January 2004 and has held various roles, including Secretary and Senior Vice President  **[0001558370-24-001935_nclh-20231231x10k.htm:35]** **[0001104659-24-053547_tm242856d2_def14a.htm:73]** .                                                                    |
| Faye L. Ashby      | Senior Vice President and Chief Accounting Officer                       | February 2016    | Faye L. Ashby has been the Senior Vice President and Chief Accounting Officer since February 2016. She joined NCLH as Controller in November 2014 after the acquisition of Prestige and has held various financial roles  **[0001558370-24-001935_nclh-20231231x10k.htm:35]** **[0001558370-23-002361_nclh-20221231x10k.htm:36]** .                                                                                                          |
| Stella David       | Chairperson of the Board                                                 | August 12, 2024  | Stella David has been a director at NCLH since January 2017. She has extensive experience in running multinational corporations and significant expertise in marketing and branding. She previously served as CEO of William Grant & Sons Limited  **[0001104659-24-053547_tm242856d2_def14a.htm:17]** **[0001104659-23-052195_tm232119-2_def14a.htm:23]** .                                                                                 |

3d1bdc20560cc1cc3f38c8b1a0adfe85b6ac51d1d5d4b1e73ef3b85af61207b5

**Quarterly guidance for Q4 2024:**
- **Net Yield Growth**: 6.9%  **[NCLH_3405158_5]**  (no prior guidance)  
- **Adjusted Net Cruise Cost Excluding Fuel Per Capacity Day**: 2.7% to $155  **[NCLH_3405158_5]**  (no prior guidance)  
- **Adjusted EBITDA**: $445 million  **[NCLH_3405158_5]**  (no prior guidance)  
- **Adjusted Net Income**: $40 million  **[NCLH_3405158_5]**  (no prior guidance)  
- **Adjusted EPS**: $0.09  **[NCLH_3405158_5]**  (no prior guidance)  

**Annual guidance for FY 2024:**
- **Net Yield Growth**: 9.4%  **[NCLH_3405158_6]** **[NCLH_3405158_1]**  (raised from 8.2%  **[NCLH_3395299_5]** )  
- **Adjusted Net Cruise Cost Excluding Fuel**: remain flat  **[NCLH_3405158_6]** **[NCLH_3405158_1]**  (no change from prior guidance  **[NCLH_3395299_5]** )  
- **Adjusted EBITDA**: $2.425 billion  **[NCLH_3405158_6]** **[NCLH_3405158_1]**  (raised from $2.35 billion  **[NCLH_3395299_5]** )  
- **Adjusted EPS**: $1.65  **[NCLH_3405158_6]** **[NCLH_3405158_1]**  (raised from $1.53  **[NCLH_3395299_1]** )  
- **Adjusted Operational EBITDA Margin**: 35.3%  **[NCLH_3405158_2]**  (raised from 34.5%  **[NCLH_3395299_1]** )  
- **Adjusted ROIC**: double digits  **[NCLH_3405158_2]**  (no change from prior guidance  **[NCLH_3395299_1]** )  
- **Net Leverage**: 5.4x  **[NCLH_3405158_2]**  (no prior guidance)  

c8750601ef994ade45d1f0fcd099f6b0029bb5aecdce0038609e86f47e04507c

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | At least 1988  **[0001558370-24-001935_nclh-20231231x10k.htm:118]**  | Present  | Current auditor   |

2bbe7e936ae5dbd8aa1d41465e0979c1f2389d1236d27a5760ed3091c765026d

d01196b581fcbe488463e9f49e844aa239266ca2e2f019f0b1ed7bf72612e803

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2.81 billion (+11% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:3]**   
- Passenger Ticket Revenue: $1.94 billion (+12% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]**   
- Onboard and Other Revenue: $862 million (+7% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]**   
- North America: $1.32 billion (+6% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:9]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:11]**   
- Europe: $1.44 billion (+12% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:9]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:11]**   
- Asia-Pacific: $50 million (**+214%** YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:9]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:11]**   
- Net Income: $475 million (+37% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:3]**   
- Diluted EPS: $0.96 (+22% YoY)  **[0001558370-23-018153_nclh-20230930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:2]** **[0001558370-24-014784_nclh-20240930x10q.htm:3]**   

ccee3d0c1c02499ebdc94ee8b724aeff10fbead78caaafc533ba5a58f40e3d76

495d1333bfb2debc25160d0903890eaafba46c998031c2e14d4ef020f14f3229

Passengers carried (count of passengers)

Passenger Cruise Days (count of passenger-cruise-days)

Capacity Days (count of capacity-days)

Occupancy Percentage (percentage)

Gross margin per Capacity Day (USD per Capacity Day)

Net Yield (USD per Capacity Day)

Gross Cruise Cost per Capacity Day (USD per Capacity Day)

Net Cruise Cost per Capacity Day (USD per Capacity Day)

Net Cruise Cost Excluding Fuel per Capacity Day (USD per Capacity Day)

Adjusted Net Cruise Cost Excluding Fuel per Capacity Day (USD per Capacity Day)

e7b923a4c545369eaba05054ce53130b820065e8e06b778b96526bb7caba49bf

| Year | Amount Due (in billions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|---------------------------------|------------------------|-------------------------------------------------------------------------------------|
| 2024     | 0.58                         | Current Portion of Long-Term Debt | N/A                    | 4.2% = (0.58 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |
| 2025     | 1.32                         | Exchangeable Notes & Other Long-Term Debt | 5.97 (Exchangeable Notes) **[0001558370-24-014784_nclh-20240930x10q.htm:16]** | 9.6% = (1.32 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |
| 2026     | 2.24                         | Other Long-Term Debt            | N/A                    | 16.4% = (2.24 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |
| 2027     | 3.31                         | 1.125% & 2.5% Exchangeable Notes, Other Long-Term Debt | 1.125 (effective 1.64), 2.5 (effective 3.06) **[0001558370-24-014784_nclh-20240930x10q.htm:16]** | 24.1% = (3.31 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |
| 2028     | 1.72                         | Other Long-Term Debt            | N/A                    | 12.6% = (1.72 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |
| 2029     | 1.93                         | Other Long-Term Debt            | N/A                    | 14.1% = (1.93 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |
| Thereafter | 2.60                       | Other Long-Term Debt            | N/A                    | 19.0% = (2.60 / 13.71) * 100 **[0001558370-24-014784_nclh-20240930x10q.htm:16]**                                               |

c6223b1bd34a0c138acf02a0d877b9839cbe1c2c314f35b971d174f0d672965b

- Potential revenue impact due to geopolitical tensions: **Approximately 4%** of NCLH's capacity for 2024 included visits to the Middle East, with **10% in Q4**. The ongoing conflict in Israel may lead to cancellations and itinerary changes, affecting bookings and revenue.  **[NCLH_3363261_19]**
- Cost pressures and inflationary headwinds: Despite achieving three consecutive quarters of cost reductions, NCLH acknowledges that **inflation continues** and there are **headwinds related to dry docks for next year**, which could impact margins and cost management efforts.  **[NCLH_3363261_12]**
- Limited capacity growth in 2024: With **no new ship deliveries until spring 2025**, NCLH may face challenges in expanding capacity and revenue opportunities compared to peers with new ships in 2024. Marketing expenses may not significantly reduce, as they need to promote upcoming 2025 deliveries.  **[NCLH_3363261_20]**

3b100bc893a493479ab7d8f39d0c8718a2eabaeb6f052c9b98a907e97f0a80ca

1. **Yield Growth Expectations**  
   **Q:** Could yield growth exceed historical low single-digit rates?  
   **A:** While aiming to grow yields rapidly, we're sticking to our algorithm of **low to mid-single-digit yield growth** with **below inflationary cost growth**. 2024 was an unusually positive year, but we expect to continue with moderate capacity growth and low to mid-single-digit yield growth in the longer term.  **[NCLH_3405158_13]** 

2. **Cost Savings Target**  
   **Q:** Could the $300 million cost-saving target be exceeded?  
   **A:** We wouldn't want to get ahead of ourselves, but we've done a very good job identifying our goals and are increasingly confident. This is a **multi-year journey**, and we're focused on every process in the business. We're feeling good with where we are today.  **[NCLH_3405158_14]** 

3. **2025 Bookings Strength**  
   **Q:** Any signs of softening as you look into 2025?  
   **A:** We're happy with all brands, geographies, and guest sourcing markets. It's hard to see any cracks, and we're absolutely happy with what we're seeing today.  **[NCLH_3405158_15]** 

4. **Yield vs Cost Spread**  
   **Q:** Will yield growth exceed cost growth by 2.5 points yearly?  
   **A:** We're focused on our long-term targets for **2026**, not on specific annual spreads. While this year was better than expected, future spreads may vary as we work towards our 2026 goals.  **[NCLH_3405158_21]** 

5. **Occupancy Trends**  
   **Q:** Will occupancy boost yield growth in coming years?  
   **A:** Our ships are essentially full, so occupancy isn't expected to be a tailwind or headwind for yield growth. We expect occupancy to remain relatively stable through **2025**.  **[NCLH_3405158_19]** 

6. **Great Stirrup Cay Expansion**  
   **Q:** Update on the Great Stirrup Cay project?  
   **A:** We're on schedule to open the new pier in **Q4**. This will allow us to **double** the guests visiting the island starting in **2026** compared to today, generating higher guest satisfaction and revenue.  **[NCLH_3405158_23]** 

300a17a03708a31a2233b3ddbb7e3ddb5722b0ea201f4134238aaf0b270f04d3

- **Strong demand with no signs of slowing down**, especially from the North American consumer, leading to **robust pricing and booking volumes**.  **[NCLH_3395299_15]** ,  **[NCLH_3395299_17]**
- **Onboard spending remains strong**, with **no decrease in ancillary revenue**, indicating customers are willing to spend more on cruises.  **[NCLH_3395299_17]**
- The company is **ahead of its leverage reduction targets**, reaching its year-end target 6 months early and making significant progress towards its **2026 net leverage target of mid-4x**.  **[NCLH_3395299_24]**

91fabb60ebd28d3a19aba91678f5fce293cbdbe908790c84cd5e2123e7c5fa7b

- **Costs expected to remain flat** excluding dry dock expenses in the back half of the year, due to a **laser focus on rightsizing and leveraging scale**, with ongoing cost-saving initiatives that **do not impact the guest experience**.  **[NCLH_3381822_29]**
- **Strong forward booking position** with consumers willing to **book further out and pay higher prices**, particularly noting **more Americans on European deployments**, which tend to **elongate the booking curve and deliver higher yields**.  **[NCLH_3381822_19]** ,  **[NCLH_3381822_18]**
- Anticipated **highest yield growth in Q3**, with executives confirming that the **third quarter will be the highest yield growth quarter**, despite any impacts from the Middle East and Red Sea itinerary changes.  **[NCLH_3381822_11]**

31988292b38849904f144cdda6dddc058dfde2652ffcf10fd6d2eb61f2e74d3d

- The company acknowledges that the European and Asian consumer is **"only on the margin important"**, suggesting limited growth potential outside the North American market.  **[NCLH_3395299_15]**
- Executives describe their financial targets as **"ambitious"**, which may raise concerns about the achievability of their **2026 financial targets**.  **[NCLH_3395299_8]** **[NCLH_3395299_10]**
- Maintaining cost savings could be challenging, as management mentions it's **"a bit early to comment on what 2025 is going to look like"** regarding cost management amid inflation pressures.  **[NCLH_3395299_20]**

66a62848edecc7451251654f2add4beb06e608054054ef48ac1ecac87ba124f2

1. **Cost Savings and Margin Outlook**  
   **Q:** Can you elaborate on cost savings and their impact?  
   **A:** Management is confident in achieving their cost reduction goals, aiming for **$300 million in savings over three years through 2026**.  **[NCLH_3395299_20]**  They are already ahead of their **$100 million goal for this year**.  **[NCLH_3395299_11]**  They expect to deliver **sub-inflationary unit cost growth** and see no material headwinds in 2025 other than normal inflation  **[NCLH_3395299_13]** ,.  **[NCLH_3395299_20]**  They are focusing on eliminating waste while preserving the guest experience.  **[NCLH_3395299_20]** 

2. **Booking Trends and Pricing Power**  
   **Q:** How are booking trends and pricing power shaping up?  
   **A:** Demand is strong across all itineraries, with particular strength in **Alaska and Europe for next summer**.  **[NCLH_3395299_9]**  Pricing for 2025 is robust, with prices **"up significantly compared to this time last year for '24"**  **[NCLH_3395299_9]** ,.  **[NCLH_3395299_18]**  They focus on maximizing yield rather than occupancy, aiming for optimal booked positions to enhance pricing.  **[NCLH_3395299_9]** 

3. **Capital Expenditures and Investment Plans**  
   **Q:** Will new investments impact costs next year?  
   **A:** Management does not anticipate any material increase in capital expenditures over the next year or two.  **[NCLH_3395299_12]**  Investments in the private island will be made over time in a measured way, with additions in **2025 alongside the pier and more in 2026 and 2027**.  **[NCLH_3395299_12]**  They have **no material investment in Jacksonville or Philadelphia**, as these are led by local communities.  **[NCLH_3395299_13]** 

4. **Fourth Quarter Yield Guidance and Middle East Impact**  
   **Q:** How does Middle East exposure affect Q4 guidance?  
   **A:** The Middle East Red Sea accounts for a **1 to 2-point impact for the year**, disproportionately weighted to Q4, with about **10% of capacity** in that region.  **[NCLH_3395299_16]**  Despite this, they are guiding to a **5-point yield increase year-over-year for Q4**.  **[NCLH_3395299_16]**  They see this as part of normal business ebbs and flows.  **[NCLH_3395299_16]** 

5. **Onboard Spending Trends**  
   **Q:** Are there any declines in onboard spending?  
   **A:** There are absolutely **no decreases in onboard spend**; in fact, preselling of onboard services is **up considerably**.  **[NCLH_3395299_17]**  The company benefits from a significant **value gap between hotel ADRs and cruise line yields**, providing long-term tailwinds.  **[NCLH_3395299_17]** 

6. **Below-the-Line Items for 2025**  
   **Q:** What are expectations for interest, share count, and D&A in 2025?  
   **A:** Share count is expected to be around **515–516 million fully diluted shares**, similar to this year.  **[NCLH_3395299_21]**  Depreciation and amortization runs about **9.5% of gross revenue**.  **[NCLH_3395299_21]**  Interest expense is expected to improve as they pay down debt, with guidance of about **$760 million for this year**.  **[NCLH_3395299_21]** 

7. **Leverage Targets and Balance Sheet**  
   **Q:** How are you progressing towards leverage targets?  
   **A:** The company has reached their year-end leverage target ahead of schedule and expects to see **significant improvements quarter after quarter**.  **[NCLH_3395299_24]**  They are making progress toward their **2026 target of mid-4s net leverage**.  **[NCLH_3395299_24]** 

8. **Commissions Leverage and Net Yields**  
   **Q:** Is commissions leverage sustainable, and what's driving it?  
   **A:** The improvement in commissions was due to **buying air more effectively**, resulting in lower gross revenue and air costs.  **[NCLH_3395299_22]**  This enhances net revenue and helps drive demand.  **[NCLH_3395299_22]**  They believe there is still room for further improvements in air purchasing.  **[NCLH_3395299_22]** 

9. **Occupancy Levels and Yield Maximization**  
   **Q:** Will occupancy be a tailwind into 2025?  
   **A:** The company focuses on maximizing yield rather than occupancy. Their core driver of revenue is the **first and second guests in a cabin**, not the third guest, who contributes less.  **[NCLH_3395299_14]**  Therefore, they prioritize cabin occupancy over passenger occupancy.  **[NCLH_3395299_14]** 

10. **Profit Targets and Ambitious Goals**  
    **Q:** Are the 'Charting the Course' targets overly ambitious?  
    **A:** Management believes the targets are ambitious but achievable. They are committed to hitting them by 2026 and view them as driving the company forward to achieve great results.  **[NCLH_3395299_10]** 

11. **Loyalty Program Plans**  
    **Q:** Any updates on loyalty programs across the brand portfolio?  
    **A:** Management is aware of the importance of loyalty programs but is **not prepared to discuss details at this time**.  **[NCLH_3395299_19]** 

12. **Cost Impact of Dry-Docks in 2025**  
    **Q:** Are dry-dock headwinds expected next year?  
    **A:** There is **no substantial step-up in dry-dock days or capacity** next year; thus, no material cost headwinds are anticipated from dry-docks.  **[NCLH_3395299_13]** 

13. **Investment in Pier and Private Island**  
    **Q:** Will investments parallel the opening of the pier in 2025?  
    **A:** There will be some parallel investments, but development is a long-term plan with additions in **2025 and beyond**.  **[NCLH_3395299_12]**  Investments will be made in a measured and disciplined way.  **[NCLH_3395299_12]** 

14. **Ancillary Spend Compared to Hotels**  
    **Q:** How does ancillary spend compare to hotels?  
    **A:** The cruise industry benefits from guests being on the ship for the entire duration, allowing for better ancillary revenue opportunities. Fundamental factors make their business more **resilient in onboard spend than hotels**.  **[NCLH_3395299_17]** 

15. **Airfare Costs and Net Yields**  
    **Q:** Should we expect airfare costs to continue decreasing?  
    **A:** The company will continue to improve on airfare costs to the extent possible, aiming for further improvements.  **[NCLH_3395299_23]**  They are focused on leveraging better air purchasing to enhance net yields.  **[NCLH_3395299_23]** 

9fcaffae5164447a0235754bfa0570048c8f66cfe920e1ebc73b98db81c7fffd

- **Strong demand and record bookings** provide visibility into future revenue growth. The company reports being in **record booked positions** for 2024, especially on the **Norwegian Cruise Line (NCL) brand**. Demand is strong across all markets and brands.  **[NCLH_3375209_10]**
- **Margin expansion initiatives and cost management efforts** are expected to improve **adjusted EBITDA margins by almost 250 basis points** in 2024. The company is focusing on improving pricing, leveraging its cost base, and implementing fuel consumption and bunkering strategies projected to drive **double-digit million-dollar savings**.  **[NCLH_3375209_19]** **[NCLH_3375209_18]**
- **Deleveraging the balance sheet** is a priority, with plans to **reduce net leverage by almost 1.5 turns over 2024**. This focus on strengthening the balance sheet should enhance the company's financial position and flexibility.  **[NCLH_3375209_20]**

09a26cdb1e91debd030ed9358db876277af93bc675d0604b0d1d9c282df2db1a

- **Management is uncertain about achieving further cost savings beyond 2024**, acknowledging that future cost reductions will be more challenging. Harry Sommer stated they are "not really prepared to comment on '25 and beyond at this point," and Mark Kempa added that while they continue to seek efficiencies, "it gets harder further down the stream you go."  **[NCLH_3381822_29]**
- **Cancellations and redeployments of Middle East and Red Sea itineraries are impacting Q2 and Q4 results**, highlighting geopolitical risks affecting operations and earnings. Mark Kempa mentioned that "the moving parts in Q2 are really the Mid East and Red Sea for the most part, and that also impacts Q4."  **[NCLH_3381822_21]**
- **Higher fuel costs and increased interest expenses are eroding the benefits of raised yield guidance**, potentially limiting profitability improvements. Mark Kempa noted that the yield increase is "partially offset by higher fuel and then higher interest expense" due to variable-rate debt and "commitment fees related to some of our newbuild announcements."  **[NCLH_3381822_27]**

5fdb2f852f5e308fec9de222315a16b0d76ba54b18f5e8c1727fc0a8c4cd54df

- **Record Bookings and Higher Pricing for 2024:** NCLH is in a **record booked position for 2024**, with bookings at **higher prices**, indicating strong demand and future revenue growth.  **[NCLH_3363261_22]**
- **Commitment to Pricing Discipline:** The company is a **firm believer in maintaining pricing discipline** and **avoiding discounting**, even with additional capacity, which supports long-term yield growth and profitability.  **[NCLH_3363261_22]**
- **Ongoing Cost Reductions and Margin Improvement:** NCLH has achieved **three consecutive quarters of cost reductions** and is implementing a **permanent culture change** to continuously improve margins while enhancing the customer experience.  **[NCLH_3363261_22]**

257a10be2e529224c058ca8abe2f0063584f1be65a1cb1996772439e8027efa7

- **NCLH remains highly leveraged**, with net debt to EBITDA ratios of approximately **7.3x** at year-end 2023, and the company does not expect to return to pre-COVID leverage levels of **3x to 4x** until after 2024, indicating ongoing balance sheet risks.  **[NCLH_3375209_20]**
- **Geopolitical tensions in the Middle East** have led to the cancellation of all sailings to Israel and rerouting of cruises in the Red Sea, impacting NCLH's Oceania and Regent brands and posing a **1 to 2 percentage point headwind** on net yield growth for 2024.  **[NCLH_3375209_15]** ,  **[NCLH_3375209_9]**
- **Fuel costs remain a significant expense**, amounting to approximately **$700 million per year**, and despite initiatives to reduce consumption, fuel costs and new environmental regulations are **dragging on margins compared to pre-COVID levels**.  **[NCLH_3375209_18]** ,  **[NCLH_3375209_6]**

49a72a36397c51df7d6cf1ca3b119b6f14f3925db68dfc9c5e6e292e0ca31c0b

1. **Middle East Impact on Yield**  
   **Q:** What's the impact of Middle East disruptions on yield guidance?  
   **A:** The Middle East situation, specifically in the Red Sea and Suez Canal, is impacting our Oceania and Regent brands, affecting **8% and 12%** of their capacities respectively.  **[NCLH_3375209_8]**  We expect about a **1 to 2 point impact on yield** in the last three quarters of the year.  **[NCLH_3375209_8]**  This is factored into our guidance, and we anticipate a modest tailwind in **2025** as these issues resolve.  **[NCLH_3375209_8]** 

2. **Cost Control and Future Outlook**  
   **Q:** How do you view cost growth beyond 2024?  
   **A:** We're proud of our cost control, achieving over **$100 million improvement** versus core inflation.  **[NCLH_3375209_12]**  While not providing specific guidance for 2025 and 2026, we aim to grow costs at **less than the rate of inflation** in the long term.  **[NCLH_3375209_12]** 

3. **Booking Trends and Record Positions**  
   **Q:** How have booking trends evolved, and what's your current booking position?  
   **A:** With the exception of Middle East cruises, we are at **record booked positions** for the remaining three quarters, especially for the NCL brand.  **[NCLH_3375209_10]**  Our booking curve has extended, particularly for Europe sailings, and we're pleased with the demand.  **[NCLH_3375209_9]** 

4. **Balance Sheet Improvement and Deleveraging**  
   **Q:** What are your plans for balance sheet improvement and reducing leverage?  
   **A:** We're actively addressing the balance sheet and expect to decrease leverage by at least **1.5 turns** this year.  **[NCLH_3375209_20]**  While we won't reach pre-COVID leverage levels of **3x to 4x** in 2024, we are on a solid path toward that over the coming years.  **[NCLH_3375209_20]** 

5. **Yield Growth Expectations**  
   **Q:** Why is there a deceleration in yield growth after Q1?  
   **A:** Q1 yield growth is strong due to a weak comparison from last year and a **16% year-over-year increase**.  **[NCLH_3375209_16]**  For Q2 to Q4, we expect normalized consistent yield growth, with the Middle East impact causing about **1 to 2 points headwind**.  **[NCLH_3375209_14]**  There is minimal mix issue as deployment is similar to last year.  **[NCLH_3375209_16]** 

6. **Margin Improvement Path**  
   **Q:** How do you plan to return to pre-COVID margins?  
   **A:** We need to improve pricing and leverage our cost base.  **[NCLH_3375209_18]**  We have mitigated over **$100 million** of expected inflation in 2024, keeping our cost base flat.  **[NCLH_3375209_18]**  Continuous cost optimization offers significant margin expansion opportunities over time.  **[NCLH_3375209_18]** 

7. **Pricing Actions and Luxury Brands Impact**  
   **Q:** What pricing actions are you taking, and how are luxury brands affected?  
   **A:** For the NCL brand, we leverage robust revenue management to optimize pricing amid strong demand.  **[NCLH_3375209_13]**  The luxury brands, Oceania and Regent, are impacted by the Middle East disruptions, taking **60 to 70 days** out of service on two ships, affecting yield growth.  **[NCLH_3375209_13]**  This is expected to be a one-time issue.  **[NCLH_3375209_13]** 

8. **Onboard vs Ticket Revenue Contributions**  
   **Q:** How do onboard and ticket revenues contribute to yield growth?  
   **A:** Onboard revenue is a significant part of our revenue profile.  **[NCLH_3375209_19]**  In Q2 to Q4, we expect about **1.5 points of occupancy benefit**, with the rest of the yield growth coming from pricing.  **[NCLH_3375209_19]**  We're focused on increasing pre-cruise onboard revenue purchases.  **[NCLH_3375209_19]** 

9a736f618444675f066d12358d91b2a1cdf53b0f1a15f887c8e1a8895e9ddf59

1. **Yield Guidance Conservatism**  
   **Q:** Is yield guidance somewhat conservative?  
   **A:** Management believes the yield guidance is appropriate, expecting strong consumer spending, with upside mainly from onboard revenue due to the extended booking curve. They are confident in raising yield guidance by a full point for the year.  **[NCLH_3381822_13]** 

2. **Cost Control and Margins**  
   **Q:** How are you managing costs and margins?  
   **A:** They are enhancing efficiency across the organization without cutting guest experience, achieving savings in fuel, logistics, and purchasing, and maintain cost guidance. Costs excluding dry dock are expected to be essentially flat for the back half of the year, and they remain focused on improving margins.  **[NCLH_3381822_10]** **[NCLH_3381822_29]** 

3. **Booking Trends into 2025**  
   **Q:** How are 2025 bookings shaping up?  
   **A:** The company is at a record book position over the next 12 months, including **Q1 2025**, which is the best-booked quarter so far. While not giving specifics, this indicates positive trends for 2025 bookings.  **[NCLH_3381822_15]** **[NCLH_3381822_19]** 

4. **Red Sea Impact on Yields**  
   **Q:** Will Red Sea cancellations affect yields?  
   **A:** The impact is minimal; they have canceled all affected itineraries for 2025 to mitigate the effect. Replacement itineraries are selling well, and while Middle East voyages are a premium, they don't expect a significant drag on yields.  **[NCLH_3381822_25]** **[NCLH_3381822_23]** 

5. **Potential Yield Upside**  
   **Q:** Is there room for further yield growth?  
   **A:** Management continues to seek pricing opportunities; while **Q2 and most of Q3** are largely booked, there is potential to optimize yields in **Q4** as they monitor booking curves and consumer demand.  **[NCLH_3381822_26]** 

6. **Investment in Private Islands**  
   **Q:** Why invest in private islands now?  
   **A:** Their private islands are top-rated destinations; investing in infrastructure like a pier at Great Stirrup Cay will enhance guest experience and ROI by ensuring consistent access. The pier is scheduled for completion in a year, supporting further improvements.  **[NCLH_3381822_12]** **[NCLH_3381822_22]** 

7. **Commissions and Booking Mix**  
   **Q:** Why are commissions lagging ticket revenue growth?  
   **A:** The divergence is due to lower air participation rates and more efficient air purchasing, reducing air costs. The direct vs. trade booking mix and new-to-cruise passenger mix remain substantially the same year-over-year.  **[NCLH_3381822_17]** 

8. **Newbuild Cost Inflation**  
   **Q:** How is shipbuilding cost inflation impacting you?  
   **A:** Newbuild inflation aligns with general inflation, but efficiencies are offsetting part of the impact. They focus on managing costs while delivering high-quality ships.  **[NCLH_3381822_28]** **[NCLH_3381822_27]** 

9. **Dry Dock Impact**  
   **Q:** Will dry dock headwinds continue?  
   **A:** Dry dock activity normalizes in **2024**, with similar levels expected in following years due to fleet size. The impact should stabilize as they have leveraged the shutdown to complete many dry docks.  **[NCLH_3381822_16]** 

10. **Competition in Luxury Segment**  
    **Q:** How will you handle new luxury competitors?  
    **A:** Management welcomes new entrants and views increased focus on the market as positive. They have measured growth plans for their **Oceania** and **Regent** brands and remain confident in their position.  **[NCLH_3381822_24]** 

73857dfd8bfd607af8c7c37cf424484ecf34d0c297cc3b208572fb151043b30d

Norwegian Cruise Line Holdings Ltd (NCLH)

Financials