Carnival Cruises 2015 Annual Report Download - page 4

CHIEF EXECUTIVE OFFICER’S LETTER TO SHAREHOLDERS
Dear Shareholders,
2015 was a very strong year for our company. We accelerated progress toward our goal of delivering a double-
digit return on our investment with earnings that were over 40 percent higher than 2014 — and that was on top of
nearly 25 percent growth in 2013. We achieved over 4 percent higher revenue yields while our ongoing efforts to
leverage our industry-leading scale helped to contain costs. Our adjusted earnings exceeded $2 billion
(U.S. GAAP earnings of $1.8 billion). Record cash from operations topped $4 billion which was more than
enough to fund our capital commitments and still return in excess of $1 billion to shareholders through a 20
percent increase in the annual dividend and the ongoing repurchase of Carnival stock.
These strong results were a tribute to the outstanding efforts of our 120,000 shipboard and shoreside team
members who create exceptional vacation experiences for nearly 11 million guests annually, along with the vital
support of our travel agent partners around the globe. Their combined efforts enabled us to overcome a variety of
obstacles in 2015 and to exceed the high-end of the full-year guidance we provided at the beginning of the year.
These obstacles included macroeconomic and geopolitical challenges, and the usual weather and other one-off
events as well as a $0.10 per share drag from fuel prices and currency fluctuations compared to our earlier
guidance.
We enjoyed strong performance on both sides of the Atlantic, particularly in North America. In fact, some of our
brands have reached the double-digit return threshold already, including our flagship brand Carnival Cruise Line.
We are very proud of the Carnival Cruise Line team, which has worked so hard and so effectively to accelerate
the brand’s return to double-digits.
THE PATH TO DOUBLE-DIGIT RETURNS
Looking ahead, we are working hard to deliver double-digit return on our investment across the entire
corporation through our ongoing efforts to drive demand in excess of measured capacity growth and to capture
the inherent value of our industry-leading scale.
Measured Capacity Growth
We remain focused on maintaining measured capacity growth by delivering innovative, more efficient ships,
while at the same time removing less efficient vessels from our fleet.
During the year, progress continued on our fleet-enhancement program as we finalized agreements for eight new
cruise ships for delivery between 2018 and 2020 as part of our strategic partnership with Fincantieri in Italy and
Meyer Werft in Germany and Finland.
These new ships will be among the most efficient we have ever built and will significantly enhance the return
profile of our entire fleet. Several of these next-generation ships will pioneer a new era in the use of sustainable
fuels through our “green cruising” design represented by the first cruise ships to be powered at sea and in port by
liquefied natural gas, considered the world’s cleanest burning fossil fuel. These ships will also introduce a host of
innovative guest experiences that we will announce in the coming months.
We are especially excited about our new ship deliveries in 2016, including AIDAprima,Carnival Vista, Holland
America Koningsdam and Seabourn Encore. Among the innovative features designed to further complement the
guest experience unique to each brand, these new additions bring to the fleet an outdoor ice rink, a lazy river ride,
the first ship-top open-air cycling skyride, the first IMAX theatre at sea and Blend, the first purpose-built
personalized shipboard wine-blending venue. We expect each ship delivery to help drive demand well in excess
of our planned capacity growth.
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