Carnival Cruises 2014 Annual Report Download - page 6

Sustainable Operations
We recognize our reputation and success depend on sustainable and transparent operations. We are committed to
ensuring cruising is the most enjoyable vacation experience possible for our guests. We maintain this
commitment by keeping our guests and crewmembers safe, by protecting the environment, by developing our
workforce, by strengthening our stakeholder relations, enhancing the port communities that our ships visit and
maintaining our fiscal strength.
Increasing our fuel efficiency remains at the cornerstone of our sustainability efforts. It is gratifying to say we
have reduced our unit fuel consumption by 25 percent since 2007, meeting our stated goal of delivering a 20
percent reduction (per unit) in carbon emissions ahead of schedule. Over that time, our effort has saved over 1
billion gallons of fuel and $2.5 billion in fuel costs. This efficiency improvement is a testament to the breadth of
efforts undertaken to reduce consumption.
Moreover, we have taken the lead on developing technology to mitigate the impact of new low-sulfur fuel usage
requirements which came into effect in January while maintaining our commitment to the pristine environments
in which we have the great pleasure to sail. We are aggressively installing new air emissions technology on
approximately 70 percent of our fleet by 2017 while at the same time rolling out other energy efficient
technology. These advancements are an important investment in the environment and lay a solid foundation for
sustainable earnings improvement.
EXECUTING ALONG THE PATH
We believe we are executing along a clear path toward double-digit ROIC. We improved ROIC by nearly one
percentage point in 2014 and expect another percentage point of improvement in 2015. We continue to manage
the total capital plan with a keen eye toward exceeding guest expectations, while at the same time maintaining
fiscal discipline.
Our collective efforts created significant value for shareholders in fiscal 2014, with our share price advancing
over 22 percent as well as returning nearly $800 million in dividends.
Importantly, the ground work for continued progress is laid and we are firmly on a path to deliver double-digit
ROIC in the next three to four years.
In closing, I thank our Board for their counsel and support throughout the past year and I thank our management
for their strong leadership in moving our company forward. For his contribution, I especially thank Gerry Cahill,
an invaluable leader who retired after more than 20 years, and most recently served as President and CEO of the
Carnival Cruise Line brand. We welcome Christine Duffy, the new head of Carnival Cruise Line, Orlando
Ashford, the new head of Holland America Line and Neil Palombo, the new head of Costa Cruises — three
strong additions to our very capable leadership team.
Our business, or any business, is all about the people. One out of every two guests who cruise anywhere in the
world cruise on one of our nine brands and 100 ships. That is only possible because of the extraordinary efforts
of our employees worldwide who passionately and consistently deliver joyful and memorable vacation
experiences for our guests, as well as our travel agent partners around the globe who support our brands. I thank
them all. My sincerest appreciation to our shareholders and, of course, our more than 10.5 million valued guests
for choosing to spend their vacation with us. I look forward to welcoming you aboard again soon.
Arnold W. Donald
President and Chief Executive Officer
February 20, 2015
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