WHERE IS THE DOMESTIC CRUISING MARKET GOING? CDU Conference (19 September 2013)

PETER LITTLE – VICE PRESIDENT FLEET OPERATIONS

• A 22 year veteran with the organization

• Held various technical positions onboard up to Chief Engineer

• Moved from ship to shore in 2003 covering roles in Compliance, Assurance and Operations

• Joined the Carnival Australia leadership team in 2008 heading up the Fleet Operations division

2

GREAT DOMESTIC POTENTIAL

DYNAMICS OF A SUCCESSFUL MARKET

• Australia’s economic performance = strong consumer balance sheet

• Conditions have remained robust over the past 5 years

• Unemployment approx 5.5% for last 3 years

• Interest rates slowly declining

• A$ retreated slightly

4

DYNAMICS OF A SUCCESSFUL MARKET

5

Infrastructure

Fuel Costs

Port Fees

UNPRECEDENTED CAPACITY GROWTH

• Market size has almost doubled in 4 years

6 Source: 2011 ICCA Annual Cruise Market Report & internal estimates

0

1

2

3

4

5

6

7

8

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ALB

D (

Mill

ion

s)

Australia & New Zealand Home Port Deployed Capacity ALB

P&O Cruises Princess Carnival Holland America Costa

Cunard Royal Caribbean Celebrity Other

YoY (%) Growth

21 6 15 77 28 4 17 23 22 2

PASSENGER NUMBERS FORECAST TO EXCEED 700K BY END OF 2013: AN INCREASE OF +200% SINCE 2008

125 116 122 140 160 207

255 329

456 498

31 42 64 82

91 97

86

109

133

160

+1% +18%

+18% +14%

+21% +12%

+28%

+34%

+12%

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Australian Passenger Cruise Growth 2003-12

Fly-Cruise Homeport

• Passenger numbers grew to 660k in 2012, a two fold increase since 2008 and expected to reach +1 million by 2016

• The economic contribution of the cruise sector was A$830m in 2010-11 and expected to grow to over A$3.2b by 2020 NOTE 1

7

200% increase in pax numbers since 2008

Source: ICCA Annual Market Report 2012 (excludes river cruising passenger numbers)

NOTE 1: Deloitte Access Economic Report March 2012

MARKET PENETRATION RATES APPROACHING US LEVELS: DOUBLING IN UNDER 5 YEARS

0.5%

1.5%

2.5%

3.5%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pe

net

rati

on

Rat

e

Germany United Kingdom USA Australia & New Zealand

• Penetration rate at 2.8% in 2012 and forecast to reach 2.9% in 2013 • Australia second most penetrated market globally remaining ahead of Germany and

now surpassing the UK

Source: PSA and CLIA Australia annual reports & internal estimates

COASTAL POPULATION WITH EASY ACCESS TO HOMEPORTS: POTENTIAL FOR THE PENETRATION RATE TO GROW WELL BEYOND THE US

9

4.5m (17%) 3.3%

7.3m (27%) 4.1%

5.6m (21%) 2.0%

0.5m (2%) 2.0%

1.6m (6%) 2.1%

2.3m (9%) 2.6%

0.2m (1%) 0.9%

4.4m (15%) 1.1%

Australia/New Zealand population

Brisbane

Auckland

Homeports

Sydney

Melbourne

Fremantle

2012 penetration by State

Source: ABS & CLIA 2012 annual report

HOME PORTED SHIPS REGIONAL CALLS

P&O Cruises Princess

Carnival HAL

Pacific Jewel

Pacific Dawn

Pacific Pearl

Sun Princess

Dawn Princess

Sea Princess

Spirit

Legend Oosterdam

Volendam

Diamond Princess

^Seasonal deployment from Oct-14

Queen Mary 2

Queen Victoria

Queen Elizabeth

Cunard

Princess

Ocean Princess

Pacific Princess

HAL

Amsterdam

Costa P&O Cruises UK

Seabourn

Soujourn

Odessey

Aurora

Arcadia

Costa Deliziosa

Cost Neo Romantica

CRUISE BRANDS SHORTENING ITINERARIES: HOLIDAY TRENDS SUGGEST MORE FREQUENT SHORTER TRIPS AND FEWER LARGER HOLIDAYS

5

7

9

11

13

15

17

19

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Ave

rage

Du

rati

on

Financial Year

Average Cruise Duration Over Time

Carnival P&O Cruises Princess

18 domestic sailings in

2010 rising to 39 in

2014

Annual average

growth rate of 22% over the

past 5 years

THE GROWTH OF P&O’S DOMESTIC CRUISING MARKET

13

Only cruise line

with one-stop short

cruises

Food & wine,

comedy and

lifestyle themed

cruises

2-5 night cruises

Meet Luke Mangan

Over 30 cruises

14

Only Australian

Open Tennis

cruises

3 ships in

Sydney Harbour for

Australia Day 2014

Still the best

way to experience

the Melbourne Cup

Christmas cruises

Mothers Day

cruises

New Year cruises

MORETON ISLAND

16

Visit Kangaroo

islands, Australia’s

Galapagos

Cruise from every

Australian mainland

state

18 cruises on

5 unique itineraries

EDEN – A REGIONAL OPPORTUNITY

17

Australia Day

cruises

NZ Natural

ice cream

onboard

Kids stop-motion film

classes

Moreton island

one-stop short cruise

Celebrity chef restaurant

Salt grill by Luke Mangan

Live NRL & AFL

on the Big Screen

Dedicated

Papua New Guinea

cruises

F1 and V8 car simulators

onboard

Australian Open

Tennis cruises

FUEL PRICE ON UPWARD TREND AGAIN

19

400.00

500.00

600.00

700.00

800.00

900.00

1,000.00M

ay

Jun

e

July

Au

g

Sep

t

Oct

No

v

De

c

Jan

Feb

Mar

Ap

r

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

De

c

Jan

Feb

Mar

Ap

r

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

De

c

Jan

Feb

Mar

Ap

r

May

Jun

e

July

Au

g

2010 2011 2012 2013

US$

Fu

el P

rice

pe

r M

T

Sydney

Singapore

Source:

Sydney prices from CAU actual lifting’s

Singapore prices from Corporate forecast

CRUISING HUBS KEY TO SHORT CRUISE SUCCESS

P&OSEAASIA

21

12 nt cruises

rndtrip Fremantle

to Indonesia

12-16 night

cruises visiting up to 5

countries in one

holiday

AUSTRALIA VS ASIA

Australia Day

cruises

CRUISE V CONTAINER

THANK YOU