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• A floating Marriott resort
• Disney World on the ocean

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Major Products & Services of Norwegian Cruise Line (NCLH)

• Contemporary Cruise Vacations: Offers a wide range of mainstream cruise itineraries with diverse dining, entertainment, and activities primarily through the Norwegian Cruise Line brand.
• Premium Cruise Vacations: Provides upscale cruise experiences with a focus on culinary arts, immersive itineraries, and a sophisticated atmosphere via the Oceania Cruises brand.
• Luxury Cruise Vacations: Delivers all-inclusive, high-end cruise experiences featuring butler service, gourmet dining, and complimentary excursions through the Regent Seven Seas Cruises brand.
• Onboard Services & Experiences: Encompasses various amenities available during a cruise, such as specialty dining, spa treatments, retail, and entertainment options.
• Shore Excursions: Organizes and sells land-based tours and activities for passengers to enjoy at destinations during port calls.

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Norwegian Cruise Line Holdings Ltd. (NCLH) primarily sells its cruise vacations directly to individual consumers. While travel agencies and other intermediaries play a significant role in booking and distribution, the end customers who purchase and experience the cruises are individuals.

NCLH serves a diverse range of individual customers, which can be broadly categorized into the following segments:

• Families and Mainstream Cruise Enthusiasts: This large segment comprises individuals, couples, and families seeking a contemporary and dynamic cruise experience. They are often attracted to a wide variety of onboard activities, diverse dining options, and entertainment for all ages. They typically look for a fun, value-driven vacation that offers multiple destination options, characteristic of the Norwegian Cruise Line brand's "Freestyle Cruising" concept.

• Affluent and Experiential Travelers: This category includes discerning travelers, often couples or seasoned cruisers, who prioritize sophisticated culinary experiences, destination immersion, and a more refined onboard atmosphere. They are typically interested in itineraries that offer deeper cultural engagement and gourmet dining, often aligning with the offerings of Oceania Cruises.

• Ultra-Luxury Seekers: These are high-net-worth individuals who demand the highest level of personalized service, all-inclusive luxury, and exclusive experiences. They seek an exceptionally pampering and stress-free vacation with spacious suites, butler service, gourmet dining, and often unique, bespoke excursions, epitomized by the Regent Seven Seas Cruises brand.

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Fincantieri S.p.A. (Symbol: FCT)

Meyer Werft GmbH & Co. KG (Private Company)

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Harry Sommer, President & Chief Executive Officer

Harry Sommer has over 30 years of experience in the cruise industry. He assumed the role of President and Chief Executive Officer of Norwegian Cruise Line Holdings Ltd. on July 1, 2023. Prior to this, he served as President & CEO of Norwegian Cruise Line, the largest brand within NCLH, leading it through the COVID-19 pandemic and its successful resurgence. Sommer also held the position of President, International for NCLH, where he oversaw all international sales, marketing, and business development functions. His career includes various executive and senior management roles at major cruise companies such as Prestige Cruise Holdings, Renaissance Cruises, and Viking River Cruises. He also co-founded Luxury Cruise Center, a high-end travel agency specializing in premium and luxury cruise experiences.

Mark Kempa, Executive Vice President and Chief Financial Officer

Mark Kempa is the Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd., a role he was appointed to in August 2018. He brings over 20 years of financial experience to the company, having held various positions within Norwegian's finance division for more than two decades. Kempa played a crucial role in significant company milestones, including the initial public offering in 2013 and the acquisition of Prestige Cruises International, Inc. in 2014. Before his tenure at Norwegian, he served as Assistant Controller for International Voyager Media, a travel portfolio company.

Daniel S. Farkas, Executive Vice President, General Counsel & Secretary

Daniel S. Farkas serves as the Executive Vice President, General Counsel & Secretary of Norwegian Cruise Line Holdings Ltd., bringing over 25 years of legal experience. He is responsible for overseeing all aspects of the Legal division, including Risk Management, Corporate Governance and Compliance, Passenger and Crew Claims, and Governmental Affairs. Additionally, Farkas acts as the company's Corporate Ethics Officer. He joined Norwegian in January 2004, and prior to that, he was an Assistant State Attorney for the Eleventh Judicial Circuit in Miami-Dade County. He also worked as a partner at a boutique law firm specializing in maritime litigation. Farkas was instrumental in guiding the company through its initial public offering in 2013 and the acquisition of Prestige Cruise Holdings in 2014.

Patrik Dahlgren, Executive Vice President, Chief Vessel Operations and Newbuild Officer

Patrik Dahlgren is the Executive Vice President, Chief Vessel Operations and Newbuild Officer for Norwegian Cruise Line Holdings Ltd. In this capacity, he is responsible for overseeing marine and technical operations, hotel operations, entertainment, cruise programs, and security across all three of NCLH's brands.

Lynn White, Executive Vice President, Chief People Excellence Officer

Lynn White holds the position of Executive Vice President, Chief People Excellence Officer for Norwegian Cruise Line Holdings Ltd., bringing over 30 years of experience to the industry. She is responsible for the entire People Excellence division, which includes business partnerships, benefits, compensation, and talent management/succession planning for the company's global workforce of more than 41,000 team members.

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1. High Debt Load and Financial Leverage: Norwegian Cruise Line Holdings carries a significant debt burden, totaling approximately $14.5 billion as of the third quarter of 2025. This high leverage is reflected in a projected Net Leverage (Net Debt to Adjusted EBITDA) ratio of around 5.2x-5.3x by the end of 2025. This substantial debt leads to considerable interest expenses, estimated at around $700 million for the full fiscal year 2025, and makes the company vulnerable to increases in interest rates. The high debt also limits the company's financial flexibility, with cash flow primarily dedicated to debt reduction and growth rather than shareholder returns.
2. Macroeconomic Volatility and Softening Consumer Demand: The cruise industry is highly sensitive to broader economic conditions and consumer discretionary spending. NCLH faces risks from adverse macroeconomic factors such as fluctuating interest rates, inflation, unemployment, and volatility in fuel prices, which can reduce consumers' disposable income and confidence. While occupancy has been strong, there are indications of slowing demand increases in the sector, and NCLH has shown vulnerability, having missed analyst revenue estimates in previous quarters.
3. Intense Industry Competition and Capacity Growth: The cruise industry is highly competitive, which presents a risk of pricing deterioration. The introduction of new capacity, such as an anticipated 40% growth in Caribbean capacity, could further pressure yields, particularly in early 2026.

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The addressable market for Norwegian Cruise Line (NCLH) primarily encompasses the global ocean cruise market, which can be segmented into major regions such as North America and Europe.

For its main products and services, the addressable market sizes are:

• Global: The worldwide ocean cruise line revenue from ticket and onboard spending is estimated at approximately $72.5 billion for 2025. The global cruise market size was valued at USD 7.67 billion in 2022 and is projected to reach USD 18.30 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.5% from 2023 to 2030. Another estimate places the global cruise tourism market size at USD 5.47 billion in 2025, with a projection to reach approximately USD 8.99 billion by 2034.
• North America: The North America Cruise Tourism Market size was valued at USD 58.22 billion in 2024 and is projected to reach USD 89.79 billion by 2033, with a CAGR of 4.94% during the forecast period (2025-2033). In 2024, the North America cruise market generated a revenue of approximately USD 4.44 billion and is expected to grow at a CAGR of 13% from 2025 to 2030, reaching a projected revenue of approximately USD 9.23 billion by 2030. North America accounted for 50.1% of the global cruise market in 2024.
• Europe: The European cruise market size is projected to exceed USD 18 billion in 2024. While another estimate values the Europe Cruise Market at USD 2.1 billion in 2025, expected to reach USD 6.5 billion by the end of 2034 with a CAGR of 13.4%. The Europe cruise market generated a revenue of approximately USD 2.29 billion in 2024 and is expected to grow at a CAGR of 12.6% from 2025 to 2030.

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• Sustained Strong Consumer Demand and High Occupancy: Norwegian Cruise Line is experiencing robust consumer demand, leading to record booking volumes and high occupancy levels across all its brands. This broad-based appetite for travel, particularly for short Caribbean sailings and luxury offerings, is a primary driver of increased passenger ticket sales and overall revenue.
• Capacity Expansion from New Ship Deliveries: The introduction of new vessels, such as the Norwegian Aqua in March 2025 and other newbuilds slated through 2027, will significantly increase the company's available passenger cruise days (capacity). This expansion directly translates to more potential revenue opportunities through a larger inventory of cruises.
• Growth in Onboard Revenue and Enhanced Guest Experience: Revenue is further boosted by increased guest expenditures on a wide array of onboard services, including beverages, dining, retail, and shore excursions. Investments in private island destinations, like the enhancements at Great Stirrup Cay, and strategic itinerary adjustments are designed to enrich the guest experience, attract repeat customers, and support premium pricing over time.
• Optimized Pricing and Net Yield Growth: Norwegian Cruise Line is focused on optimizing pricing strategies to achieve net yield growth, which represents adjusted revenue per capacity day. The company aims to balance load factor and price, with management guiding for continued pricing strength. This disciplined approach to revenue management is expected to contribute to overall revenue expansion.

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Share Repurchases

• In Q3 2025, Norwegian Cruise Line Holdings Ltd. reduced its fully diluted shares by approximately 38.1 million, or about 7.5%, through strategic capital market transactions. This included repurchasing a significant portion of its subsidiary's 1.125% and 2.50% Exchangeable Senior Notes due 2027.
• As of recent periods, direct share buybacks for NCLH have been reported as $0.00.

Share Issuance

• In September 2025, NCLH commenced a registered direct offering of approximately 3.3 million ordinary shares at $24.53 per share, with proceeds intended to repurchase a portion of the 2027 Exchangeable Senior Notes.
• The number of ordinary shares outstanding increased from 425,657,468 as of February 16, 2024, to 451,937,084 as of July 31, 2025.
• In May 2020, NCLH secured $400 million through an issuance of common stock at $11 per share to increase liquidity during the COVID-19 pandemic.

Inbound Investments

• During Q1 2025, Ariel Investments LLC significantly increased its position in NCLH by 126.8%, acquiring over 5 million additional shares, bringing its total holding to approximately 9.08 million shares valued at about $172 million.
• Invesco Ltd. also increased its holdings in Q1 2025 by 22.7%, purchasing over 2 million additional shares, making their total investment worth around $217 million.
• In May 2020, a global private equity firm made a $400 million private investment in NCLH as part of measures to secure additional liquidity.

Capital Expenditures

• Capital expenditures for Norwegian Cruise Line peaked in December 2023 at $2.75 billion, and averaged $1.489 billion from fiscal years ending December 2020 to 2024.
• Anticipated non-newbuild capital expenditures for full year 2025 are expected to be approximately $590 million, primarily focused on maintenance, dry-dock renovations, and technology.
• Newbuild-related capital expenditures, net of export credit financing, are expected to be approximately $0.6 billion for each of the full years ending December 31, 2025, and 2026. The company has 13 additional ships on order through 2036, which will add over 38,400 berths to its fleet, with strategic investments in private island destinations such as Great Stirrup Cay, including a new multi-ship pier.