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Tops Guidance Achieving Highest-Ever Second Quarter Operating Results Exceeding 2026 SEA Change Financial Targets 18 Months Early Second Quarter 2025 Earnings Presentation
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2 Disclaimers, Forward Looking Statements And Responsibility This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to, cruise costs without fuel, Adjusted EBITDA, Adjusted Net Income (loss), ROIC, and certain ratios and metrics derived therefrom. These non-GAAP measures are supplemental measures that are not required by, and are not presented in accordance with, GAAP and we have presented these measures because we believe they are useful to investors in evaluating a company's performance and/or ability to service and/or incur indebtedness. The items excluded from these measures are significant in assessing Carnival Corporation & plc’s operating results and liquidity and should not be construed as an inference that its future results will be unaffected by any such adjustments. Certain adjustments that are made in calculating these measures are based on assumptions and estimates that may prove to have been inaccurate. Therefore, these measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Carnival’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. Some of the statements, estimates or projections contained in this document are “forward-looking statements” that involve risks, uncertainties and assumptions with respect to us, including statements concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, liquidity, our fleet and exclusive destinations, 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, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,” “depends,” “expect,” “goal,” “aspiration,” “anticipate,” “forecast,” “project,” “future,” “intend,” “plan,” “estimate,” “target,” “indicate,” “outlook,” and similar expressions of future intent or the negative of such terms. Forward-looking statements include, but are not limited to, statements that relate to our outlook and financial position, as well as, statements regarding: • Pricing • Adjusted EBITDA • Booking levels • Adjusted EBITDA per ALBD • Occupancy • Adjusted EBITDA margin • Interest, tax and fuel expenses • Adjusted earnings per share • Currency exchange rates • Net debt to adjusted EBITDA • Goodwill, ship and trademark fair values • Net yields • Liquidity and credit ratings • Adjusted cruise costs per ALBD • Investment grade leverage metrics • Adjusted cruise costs excluding fuel per ALBD • Estimates of ship depreciable lives and residual values • Adjusted ROIC • Adjusted net income (loss) Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. These factors include, but are not limited to, the following: The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. Additionally, many of these risks and uncertainties are currently, and in the future may continue to be, amplified by our substantial debt balance incurred during the pause of our guest cruise operations. There may be additional risks that we consider immaterial or which are unknown. 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, we expressly disclaim any obligation to disseminate, after the date of this document, 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. Forward-looking and other statements in this document may also address our sustainability progress, plans, and goals (including climate change- and environmental-related matters). In addition, historical, current, and forward-looking sustainability- and climate-related statements may be based on standards and tools for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions and predictions that are subject to change in the future and may not be generally shared. • Events and conditions around the world, including geopolitical uncertainty, war and other military actions, pandemics, inflation, higher fuel prices, higher interest rates and other general concerns impacting the ability or desire of people to travel could lead to a decline in demand for cruises as well as have significant negative impacts on our financial condition and operations. • Incidents concerning our ships, guests or the cruise industry may negatively impact the satisfaction of our guests and crew and lead to reputational damage. • Changes in and non-compliance with laws and regulations under which we operate, such as those relating to health, environment, safety and security, data privacy and protection, anti-money laundering, anti-corruption, economic sanctions, trade protection, labor and employment, and tax may be costly and lead to litigation, enforcement actions, fines, penalties and reputational damage. • Factors associated with climate change, including evolving and increasing regulations, increasing concerns about climate change and the shift in climate conscious consumerism and stakeholder scrutiny, and increasing frequency and/or severity of adverse weather conditions could have a material impact on our business. • Inability to meet or achieve our targets, goals, aspirations, initiatives, and our public statements and disclosures regarding them, including those related to sustainability matters, may expose us to risks that may adversely impact our business. • Cybersecurity incidents and data privacy breaches, as well as disruptions and other damages to our principal offices, information technology operations and system networks and failure to keep pace with developments in technology have adversely impacted and may in the future materially adversely impact our business operations, the satisfaction of our guests and crew and may lead to fines, penalties and reputational damage. • The loss of key team members, our inability to recruit or retain qualified shoreside and shipboard team members and increased labor costs could have an adverse effect on our business and results of operations. • Increases in fuel prices, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs. • We rely on suppliers who are integral to the operations of our businesses. These suppliers and service providers may be unable to deliver on their commitments, which could negatively impact our business. • Fluctuations in foreign currency exchange rates may adversely impact our financial results. • Overcapacity and competition in the cruise and land-based vacation industry may negatively impact our cruise sales, pricing and destination options. • Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments may adversely impact our business operations and the satisfaction of our guests. • We require a significant amount of cash to service our debt and sustain our operations. Our ability to generate cash depends on many factors, including those beyond our control, and we may not be able to generate cash required to service our debt and sustain our operations. • Our substantial debt could adversely affect our financial health and operating flexibility.
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3 Record Breaking Second Quarter Record Revenues Record Net Yields Record Adj. EBITDA Record Adj. EBITDA per ALBD Record Operating Income All-Time High Customer Deposits
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4 Outperformed Second Quarter March Guidance On Every Measure 2Q 2025 Guidance Actual Net yields vs 2024 Approx. 4.4% 6.4% Adj. cruise costs excl. fuel per ALBD vs 2024 Approx. 5.5% 3.5% Adj. EBITDA Approx. $1.32B $1.51B Adj. net income Approx. $285M $470M Adj. earnings per share - diluted Approx. $0.22 $0.35 Record 2Q net yields on top of last year’s record 2Q levels which were up 12% Net Yields and Adj. Cruise Costs excl. Fuel per ALBD in Constant Currency; Adj. EBITDA, Adj. Net Income, and Adj. Earnings Per Share - Diluted in Current Dollars Adj. Net Income more than tripled compared to 2Q 2024
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5 Strength In Demand And Cost Discipline Improving Margins Highest 2Q margins achieved in nearly 20 years and well above 2019 levels Note: Both Adj. EBITDA and Operating Income margins are calculated based on total revenues 2Q Margins Adj. EBITDA Margin Operating Income Margin 2019 2024 2025 2019 2024 2025
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6 2 0 2 3 JUN E G UI D 2 0 2 6 T A R G E T 2 Q 2 0 2 5 A C T U A L In Tons Per Berth Day vs. 2019 2023 June Guidance 2026 Target 2 0 2 3 JUN E G UI D 2 0 2 6 T A R G E T 2 Q 2 0 2 5 A C T UA L 2 0 2 3 JUN E G UI D 2 0 2 6 T A R G E T 2 Q 2 0 2 5 A C T UA L 2Q 2025 Actual (15%) (20%) $46 $70$69 5.3% 12.6% 12.0% Topped 2026 SEA Change Financial Targets And Met Sustainability Target 18 Months Early 50% Increase in Adj. EBITDA per ALBD vs. 2023 Sustainability: >20% Carbon Intensity Reduction 12% Adj. ROIC Adj. EBITDA per ALBD and Adj. ROIC in 2Q were the highest levels seen in nearly 20 years (20%) 2023 June Guidance 2026 Target 2Q 2025 Actual 2023 June Guidance 2026 Target 2Q 2025 Actual (1) +50% +52% (1) Trailing 12 months (1)(1)
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7 Taking Up Full Year 2025 Guidance For The Second Time This Year Outperformance in 1H enabled us to raise Adj. Net Income expectations for the full year by nearly $400M since December Full Year 2025 Dec Guidance Mar Guidance Jun Guidance Net yields vs 2024 Approx 4.2% Approx. 4.7% Approx. 5.0% Adj. cruise costs excl. fuel per ALBD vs 2024 Approx 3.7% Approx. 3.8% Approx. 3.6% Adj. EBITDA Approx. $6.6B Approx. $6.7B Approx. $6.9B Adj. net income Approx. $2,305M Approx. $2,490M Approx. $2,690M Adj. earnings per share - diluted Approx. $1.70 Approx. $1.83 Approx. $1.97 Net Yields and Adj. Cruise Costs excl. Fuel per ALBD in Constant Currency; Adj. EBITDA, Adj. Net Income, and Adj. Earnings Per Share - Diluted in Current Dollars
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8 Continuing To Deliver On Our Strategy To Generate Sustained Demand Booked Position 93% of 2025 on the books Occupancy for remainder of 2025 second-highest on record at historical high prices Occupancy for 2026 in line with 2025 at historical high prices Elongated advance booking window and limited capacity growth give us the flexibility to patiently take price
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9 All-Time High Customer Deposits $6.0 $7.2 $8.3 $8.5 2Q'19 2Q'23 2Q'24 PRIOR QTR RECORD 2Q'25 QTR RECORD Customer Deposits +$2.5B In Billions 5.5 Structural growth in customer deposits driven by: Booked position at higher prices Optimizing the booking curve Increasing bundled fares with onboard amenities Increasing pre-cruise onboard sales Customer deposits in 2Q 2025 up ~40% vs. 2Q 2019 on only ~10% capacity growth
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C a r n i v a l ’ s 7 C a r i b b e a n G e m s F e a t u r i n g P a r a d i s e C o l l e c t i o n Amber Cove D o m i n i c a n R e p u b l i c Puerto Maya C o z u m e l, M e x i c o Grand Turk T u r k s a n d C a i c o s Princess Cay T h e B a h a m a s
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The page numbering is dependent on the placeholder text boxes on the page layout in the master view, so please DO NOT remove them Coming July 2025
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14 Cabin facelifts for modern appearance. Renewed of all Suite cabins and added new spacious suites by converting balcony cabins. Enhanced offer for suite guests by adding an outdoor sun deck for more exclusive service. Upgraded Theatrium to living room concept with more harmonized colors and comfortable seating. Enhanced family experience on Sphinx class ships. Generate more onboard revenue opportunities. Upgraded the spa and casino areas. Continuing To Invest In Our Highest Returning Brands Recently ordered two newbuilds for AIDA Cruises for delivery in fiscal 2030 and 2032 AIDAdiva recently completed the AIDA Evolution program with upgrades shown below – the first of seven ships Improved F&B experience by adding and converting existing concepts.
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15 Star Princess Sister To The Award-Winning Sun Princess Coming 4Q 2025
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16 Carnival Cruise Line Announces “Sunsation Point” A New Outdoor Zone Featuring The Most Family Friendly Water Park At Sea First Nighttime Water Park Experience
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17 Industry first tying loyalty benefits and status to (1) spend on/with Carnival and (2) everyday purchases on Carnival credit card Designed to improve customer engagement, increase customer lifetime value, and allow guests to tailor their point usage to their preferences! Multi-year opportunity that is expected to be cash flow accretive in 2026 “Carnival Rewards” Launching In June 2026 Carnival Cruise Line’s New And Improved Loyalty Program
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18 (1) Since February 28, 2025 Successful Refinancing And Deleveraging Efforts Enhanced liquidity, well managed near-term maturity towers, and business outperformance enable us to opportunistically accelerate our debt reduction efforts Recent Financing Activity Highlights(1) Prepaid $350M of $1.4B 7.625% notes due 2026 and refinanced the remainder with $1.0B of 5.875% senior unsecured notes due 2031; results in >$20M net interest expense reduction through early 2026 Upsized euro denominated floating rate loan by >$100M, extending maturity from 2025 to 2029 and favorably amended margin, results in all-in rate of <4% at 5/31/2025 Extended and upsized revolver capacity by 50% on more favorable terms, meaningfully enhancing liquidity 4.1x 3.7x 1Q 2025 2Q 2025 Improved Net Debt to Adj. EBITDA
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19 Recent Upgrades Leave Us With Only One Notch To Go To Reach Investment Grade Rating With Both S&P And Fitch Fitch S&P Moody’s 2Q 20251Q 20254Q 20243Q 20242Q 20241Q 2024 2-Notch Upgrade BB- (Stable) Outlook Upgrade B2 (Positive) Rated for 1st time BB (Positive) Upgrade BB (Stable) Upgrade B1 (Positive) Outlook Upgrade BB (Positive) Upgrade Ba3 (Positive) Upgrade BB+ (Positive) Upgrade BB+ (Stable)
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20 Creating Value For Our Stakeholders And Delivering Unforgettable Vacations To Our Guests 2025 2026+ 2025+ Expansions of RelaxAway, Half Moon Cay and Celebration Key Expansion, enhancement, and renaming of Mahogany Bay to Isla Tropicale Future enhancements to our seven Caribbean gems 2025 2025+ Increasing net yields through revenue optimization initiatives Continued opportunity in the commercial space Improving margins, cash flows, profits, and ROIC Opportunity to further deleverage Exceeded both 2026 SEA Change Financial targets 18 months early Met 2026 SEA Change Sustainability target 18 months early 93% of 2025 on the books at higher prices than prior year Opening of Celebration Key, our game changing exclusive destination in the Caribbean Continuation of successful AIDA Evolution fleetwide modernization initiative Taking delivery of one new ship: Star Princess, sister to the award-winning Sun Princess
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22 Per Dec Guidance 1Q 2Q 3Q 4Q Full Year Caribbean 48% 33% 24% 29% 34% Northern Europe 9% 16% 24% 16% 16% Mediterranean 3% 13% 21% 19% 14% Australia/New Zealand 10% 6% 3% 4% 6% Alaska 0% 4% 16% 4% 6% Other Programs 30% 28% 12% 28% 24% Total 100% 100% 100% 100% 100% Capacity By Program – 2025
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23 Guidance
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24 Reconciliation Of Net Yields
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25 Reconciliation Of Non-GAAP Financial Measures
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26 Non-GAAP Financial Measures We use non-GAAP financial measures and they are provided along with their most comparative U.S. GAAP financial measure: The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared in accordance with U.S. GAAP. It is possible that our non-GAAP financial measures may not be exactly comparable to the like-kind information presented by other companies, which is a potential risk associated with using these measures to compare us to other companies. Adjusted net income (loss) and adjusted earnings per share provide additional information to us and investors about our future earnings performance by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance. We believe that gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other gains and losses are not part of our core operating business and are not an indication of our future earnings performance. Adjusted EBITDA, adjusted EBITDA per ALBD and adjusted EBITDA margin provide additional information to us and investors about our core operating profitability, including on a per ALBD basis, by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance as well as excluding interest, taxes and depreciation and amortization. In addition, we believe that the presentation of adjusted EBITDA provides additional information to us and investors about our ability to operate our business in compliance with the covenants set forth in our debt agreements. We define adjusted EBITDA as adjusted net income (loss) adjusted for (i) interest, (ii) taxes and (iii) depreciation and amortization. There are material limitations to using adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items that directly affect our net income (loss). These limitations are best addressed by considering the economic effects of the excluded items independently and by considering adjusted EBITDA in conjunction with net income (loss) as calculated in accordance with U.S. GAAP. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenues. Net debt to adjusted EBITDA provides additional information to us and investors about our overall leverage. We define net debt to adjusted EBITDA as total debt less cash and cash equivalents excluding a minimum cash balance divided by twelve-month adjusted EBITDA. Net yields enable us and investors to measure the performance of our cruise segments on a per ALBD basis. We use adjusted gross margin rather than gross margin to calculate net yields. We believe that adjusted gross margin is a more meaningful measure in determining net yields than gross margin because it reflects the cruise revenues earned net of only our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees.
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27 Non-GAAP Financial Measures (Cont’d) Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non- GAAP measures provide useful information to us and investors and expanded insight to measure our cost performance. Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD are the measures we use to monitor our ability to control our cruise segments’ costs rather than cruise costs per ALBD. We exclude gains and losses on ship sales, impairment charges, restructuring costs and certain other gains and losses that we believe are not part of our core operating business as well as excluding our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees. We exclude fuel expense to calculate adjusted cruise costs excluding fuel. The price of fuel, over which we have no control, impacts the comparability of period-to-period cost performance. The adjustment to exclude fuel provides us and investors with supplemental information to understand and assess the company’s non-fuel adjusted cruise cost performance. Substantially all of our adjusted cruise costs excluding fuel are largely fixed, except for the impact of changing prices once the number of ALBDs has been determined. Adjusted ROIC provides additional information to us and investors about our operating performance relative to the capital we have invested in the company. We define adjusted ROIC as the twelve-month adjusted net income (loss) before interest expense and interest income divided by the monthly average of debt plus equity minus construction-in-progress, excess cash, goodwill and intangibles. Reconciliation of Forecasted Data We have not provided a reconciliation of forecasted non-GAAP financial measures to the most comparable U.S. GAAP financial measures because preparation of meaningful U.S. GAAP forecasts would require unreasonable effort. We are unable to predict, without unreasonable effort, the future movement of foreign exchange rates and fuel prices. We are unable to determine the future impact of gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other non-core gains and losses. Constant Currency Our operations primarily utilize the U.S. dollar, Australian dollar, euro and sterling as functional currencies to measure results and financial condition. Functional currencies other than the U.S. dollar subject us to foreign currency translational risk. Our operations also have revenues and expenses that are in currencies other than their functional currency, which subject us to foreign currency transactional risk. Constant currency reporting removes the impact of changes in exchange rates on the translation of our operations plus the transactional impact of changes in exchange rates from revenues and expenses that are denominated in a currency other than the functional currency. We report adjusted gross margin, net yields, adjusted cruise costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a “constant currency” basis assuming the current periods’ currency exchange rates have remained constant with the prior periods’ rates. These metrics facilitate a comparative view for the changes in our business in an environment with fluctuating exchange rates. Examples: • The translation of our operations with functional currencies other than U.S. dollar to our U.S. dollar reporting currency results in decreases in reported U.S. dollar revenues and expenses if the U.S. dollar strengthens against these foreign currencies and increases in reported U.S. dollar revenues and expenses if the U.S. dollar weakens against these foreign currencies. • Our operations have revenue and expense transactions in currencies other than their functional currency. If their functional currency strengthens against these other currencies, it reduces the functional currency revenues and expenses. If the functional currency weakens against these other currencies, it increases the functional currency revenues and expenses.