Carnival Cruises 2003 Annual Report Download - page 6

governance framework that effectively addresses the key areas of corporate governance in both the
United States and the United Kingdom.
The boards of Carnival Corporation & plc now include eight non-executive independent directors and
six executive directors. We created the position of presiding director to act as the senior non-executive
director serving as the principal liaison between management and the independent directors. We have
also developed procedures to facilitate communications between shareholders and our directors.
In 2003 we broadened the responsibilities of our three standing committees of the Boards—Nominating
& Governance, Audit and Compensation—all composed exclusively of independent directors. Our Audit
Committee saw its workload increase as it oversaw the melding of the financial reporting systems of our
two public companies while discharging its enhanced responsibilities to monitor our financial processes.
The Nominating & Governance Committee developed our comprehensive Corporate Governance Guidelines.
Following the DLC transaction, the Compensation Committee commenced a comprehensive review of
our compensation policies and is working to develop an executive compensation program that meets, to
the extent possible, best practices in both the United States and the United Kingdom.
I believe the foregoing changes, although time-consuming and at substantial cost, have made Carnival
Corporation & plc a better company. Our talented group of directors is more involved than ever in our
business; our already strong financial reporting and internal control systems have become even tighter; and
there is greater awareness and sensitivity to ethical issues company-wide. Rest assured that in 2004 and
beyond we will continue our substantial efforts to refine and enhance our corporate governance policies.
Charting a New Course
The peak of our multibillion-dollar newbuilding program will occur this year and will see the launch of
seven new ships over a nine-month period resulting in an average annual capacity increase of 17.5 percent.
Included in 2004’s historic order book is a new “Spirit-class” vessel for Carnival Cruise Lines, Carnival
Miracle; three new “Love Boats” for Princess Cruises, the Diamond, Caribbean, and Sapphire Princesses;
a second 2,702-passenger Costa Cruises ship, Costa Magica; a 1,848-passenger Vista-class ship, the
Westerdam, for Holland America Line; and, of course, the internationally heralded debut of the Queen
Mary 2—the largest passenger vessel ever constructed—which celebrates the bygone era of classic cruis-
ing while setting new standards in transatlantic luxury travel.
The reception for Queen Mary 2 has been nothing short of extraordinary, capturing more worldwide
acclaim than we ever imagined and creating an emotional response from consumers, the likes of which
has never before been seen. The Queen Mary 2 is already the most famous ship in the world. Her launch
truly reinforces Cunard’s unique position as the operator of the most famous ocean liners in the world.
Beyond 2004, capacity growth will moderate, and we expect that our company will produce substan-
tial free cash flow which we plan to use to reduce debt, increase dividends, and, if considered appropri-
ate, repurchase shares.
Looking Forward
We at Carnival Corporation & plc look forward to 2004 with great enthusiasm. After three extremely
difficult years, we anticipate a rebound in leisure travel sales and a return to earnings growth.
By any measure, 2003 was a year with great challenges but even greater achievements which we
believe have laid the foundation for the future success of our company.
With new ships, a strong and talented management team, dedicated employees, innovative ideas and,
most of all, exceptional cruise vacations, I have never, in my 35 years in this business, been more excited
and enthusiastic about the future of our company.
I would like to take this opportunity to thank our employees, both shipboard and shoreside, and our
management teams for their hard work and our boards of directors and shareholders throughout the
world for their unflagging confidence in our vision for the future. It is a testament to the financial
strength of our company, the vision of our management, the dedication of employees and the resiliency
of our industry that Carnival Corporation & plc was able to weather the perfect storm that was 2003.
We emerged from 2003 as a very different company than when we began the year. Today’s Carnival
Corporation & plc is a larger, more powerful, more global organization, well-positioned to take advan-
tage of emerging cruise markets wherever they may occur, anywhere in the world.
Micky Arison
Chairman and Chief Executive Officer
February 24, 2004