Carnival Cruises 2015 Annual Report Download - page 51

In 2015, we reinforced our leadership position in China with the successful introduction of our fourth ship
homeported in China. We believe that we have significant opportunities to continue to grow our presence in
China due to its large and growing middle-class population and expansion of their international tourism. We also
intend to expand our brand portfolio in China in the future. As we execute our strategy to accelerate growth in
China, we have the benefit of nine years of local experience to help guide our expansion and enhance our cruise
products and services to make them even more attractive to our Chinese guests.
With 99 ships and more than 10.8 million guests in 2015, we have the scale to optimize our structure by utilizing
our combined purchasing volumes and common technologies as well as implementing cross-brand initiatives
aimed at cost containment. We have also established global leadership positions for communications, guest
experience, maritime, procurement, revenue management and strategy to increase collaboration and
communication across our brands and help coordinate our global efforts and initiatives.
We consider health, environment, safety, security and sustainability matters to be core guiding principles. Our
uncompromising commitment to the safety and comfort of our guests and crew is paramount to the success of our
business. We are committed to operating a safe and reliable fleet and protecting the health, safety and security of
our guests, employees and all others working on our behalf, thereby promoting an organization that is free of
injuries, illness and loss. We continue to focus on further enhancing the safety measures onboard all of our ships.
We are also devoted to protecting the environment in which our vessels sail and the communities in which we
operate. We are dedicated to fully complying with, or exceeding, all relevant legal and statutory requirements
related to health, environment, safety, security and sustainability throughout our business.
We employ an average of 82,200 crew members, including officers, onboard the ships we currently operate,
which excludes employees who are on a leave. We also have an average of 10,000 full-time and 2,400 part-time/
seasonal shoreside employees. Our goal is to recruit, develop and retain the finest shipboard and shoreside
employees. A team of highly motivated and engaged employees is key to delivering vacation experiences that
exceed our guests’ expectations. We are a diverse organization and value and support our talented and diverse
employee base. We also are committed to employing people from around the world and hiring them based on the
quality of their experience, skills, education and character, without regard for their identification with any group
or classification of people.
In 2015, we introduced P&O Cruises (UK)’s 3,647-passenger Britannia, the largest ship ever built specifically
for British guests and named by Her Majesty, Queen Elizabeth II. In addition, we signed eight new ship orders
this year. As of January 22, 2016, we have a total of 17 cruise ships scheduled to be delivered between 2016 and
2020. Some of these ships will replace existing capacity as less efficient ships exit our fleet. Since 2006, we have
removed 17 ships from our fleet and will remove one more ship in March 2016. We have a disciplined, measured
approach to capacity growth so that we achieve an optimal balance of supply and demand to maximize our
profitability.
Outlook for the 2016 First Quarter and Full Year
On December 18, 2015, we said that we expected our adjusted diluted earnings per share for the 2016 first
quarter to be in the range of $0.28 to $0.32 and 2016 full year to be in the range of $3.10 to $3.40 (see “Key
Performance Non-GAAP Financial Indicators”). Our guidance was based on the assumptions in the table below.
On January 26, 2016, updated only for the current assumptions in the table below, our adjusted diluted earnings
per share for the 2016 full year would decrease by $0.08. This decrease was caused by foreign currency exchange
rates, including both foreign currency translational and transactional impacts of $0.11 per share, partially offset
by a $0.03 per share increase due to lower fuel prices, net of forecasted realized losses on fuel derivatives. In
addition, our adjusted diluted earnings per share for the 2016 first quarter would decrease by $0.02.
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