Global Deployment Trends

& Port Considerations

Presented by Craig Milan

Senior Vice President - Land Operations

Royal Caribbean Cruises, Ltd.

2

Industry Overview

Considerations for Global Expansion

RCL’s Deployment Trends

RCL’s International Overview

Australasia Considerations

Port Considerations

Cruise Industry Overview

4

Industry Snapshot

Over 17.8 million worldwide guests in 20091

7.2% average annual passenger growth rate since 19902

267 ships with approximately 373k berths in 20093

23 new ocean-going vessel deliveries 2010-2012

Increasing capacity allows cruise lines to expand beyond their traditional markets like never before

2008 2009

North America 10,352 10,459

UK 1,477 1,533

Continental Europe 2,945 3,409

Asia (excluding Japan) 850 890

Japan 195 195

Australasia 342 370

Latin America and others 940 984

Total 17,101 17,840

Year-on-year increases 4.1% 4.3%

1Source: Seatrade Cruise Review June 2010. 2Source: CLIA 2010 Cruise Market Overview 3Source: Royal Caribbean Cruises, Ltd. 2009 Annual Report

5

Strong Industry Fundamentals

Long-term industry growth

Great vacation product

Product innovation

Low penetration of vacation market

Favorable demographics

Consolidated industry

Ability to absorb new capacity

Proven resilience

6

North American market CAGR since 1970 8.3%; only 0.6% from 2005-2009

145 ships with approximately 228k berths in 2009

14 new ships expected to be placed in service in North America 2010-2013

Cruise Industry Largest Market

1Source: Royal Caribbean Cruises, Ltd. 2009 Annual Report

Year Global Cruise Passengers

Weighted Average Supply of Berths

Marketed Globally

North American Cruise

Passengers

Weighted-Average Supply of Berths

Marketed in North America

2005 14,818,000 288,000 9,909,000 190,000

2006 15,309,000 304,000 10,080,000 201,000

2007 16,586,000 327,000 10,330,000 212,000

2008 17,184,000 347,000 10,093,000 219,000

2009 17,340,000 363,000 10,169,000 222,000

7

Industry Trends

Ships are getting bigger, which increases the requirements on port infrastructure to adequately support calls

12 out of 23 ships scheduled for delivery through 2012 will exceed 100,000 gross tons

Cruise lines are partnering with ports to build piers and infrastructure capable of servicing larger ships (e.g. St. Thomas, Falmouth, Roatan, Cozumel, Kusadasi, etc.)

RCL partnered with Port Everglades to build a terminal capable of servicing an Oasis class vessel

Deployment of more ships beyond the Caribbean & North America

Targeting non-US source markets

Building stronger relationships with suppliers and customers

8

2010 Deliveries

Cruise Line Ship Gross Tonnage Lower Berths Price (in Millions)

AIDA AIDAblu 71,000 2,174 $525

Celebrity Celebrity Eclipse 118,000 2,850 $698

Costa Deliziosa 92,700 2,260 $500

Cunard QE 92,000 2,092 $700

HAL Nieuw Amsterdam

86,000 2,100 $567

MSC Magnifica 90,000 2,550 $400

NCL Norwegian Epic 153,000 4,200 $1,200

P & O Azura 116,000 3,076 $695

RCI Allure of the Seas 225,000 5,400 $1,500

9

2011 Deliveries

Cruise Line Ship Gross Tonnage Lower Berths Price (in Millions)

AIDA AIDAsol* 71,000 2,174 $557

Celebrity Celebrity Silhouette*

122,000 2,850 $698

Carnival Carnival Magic* 130,000 3,652 $859

Costa Cruises

Costa Favalosa* 114,200 3,012 $726

Disney Disney Dream* 128,000 2,500 $899

Seabourn Cruise Line

Seabourn Quest 32,000 450 $290

* Identical ship to be delivered in 2012

10

10 Largest Cruise Ships Afloat

Cruise Line Ship Gross Tonnage Lower Berths LOA (in Meters)

RCI Oasis of the Seas 225,000 5,400 362

RCI Freedom Class (3) 158,000 3,643 339

MSC Fantasia 138,000 3,300 333

Carnival Carnival Dream 130,000 3,650 306

Celebrity Solstice Class (3) 122,000 2,850 315

Princess Caribbean Princess 113,000 3,600 290

11

10 Largest Ships to be Launched

Cruise Line Ship Gross Tonnage Lower Berths LOA (in Meters) Launch Year

RCI Allure of the Seas 225,000 5,400 362 2010

NCL Norwegian Epic 153,000 4,200 330 2010

Princess TBD 138,000 3,600 TBD 2013

Princess TBD 138,000 3,600 TBD 2014

Carnival Carnival Magic 130,000 3,650 339 2011

Carnival TBD 130,000 3,650 339 2012

Disney Disney Dream 128,000 2,500 340 2011

Disney Disney Fantasy 128,000 2,500 340 2012

Celebrity Celebrity Silhouette

122,000 2,850 315 2011

Celebrity TBD 122,000 2,850 315 2011

12

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Year

Gu

ests

(000's

)

North America

Europe

Latin America

Asia

Industry Guest Growth by Region

12.1% CAGR

7.0% CAGR

6.0% CAGR

4.9% CAGR

13

International vs. N. America

Global Cruise Line Lower Berths

Source: Internally Calculated using Global Fleet Model and Guest Sourcing Assumptions

0

100

200

300

400

500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Lo

we

r B

ert

hs

So

urc

ing

(00

0’s

)

North

America

Berths

International

Berths

CAGR 08-12

North America 3.5%

International 10.5%

Global Cruise Line Capacity

14

Various Ships at Nassau

Oasis of

the Seas

Considerations for

Global Expansion

16

Overall itinerary fit (time, speed, distance)

Guest air and ground transportation to/from turn ports

Provisioning capacity/availability

Emergency airlift capability

Population in catchment area around the home port

Clear berthing policy

Confirmation of preferred berth 2-years in advance

Global Deployment Considerations

17

Not all guests are the same!

Sales and Marketing programs tailored to reach the local market in the local language while maintaining consistency within the company’s overall brand strategy and Web presence

Shore excursion products relevant to the local market price points and in their language

Onboard cuisine incorporating local tastes for food and beverage

Onboard entertainment offerings (shows, music, TV) available in local languages

An international network of representatives to serve guests within local markets

Compelling itineraries to meet guest preferences

Global Sourcing Considerations

18

Visa requirements for guest, crew, and corporate personnel

Regulatory requirements related to environment, manning, immigration, casino and onboard shops, etc.

Taxation issues and special payment methodologies

Security operations in foreign environments

Influencing foreign legislation as a cruise company or through regional cruise shipping associations

Global Operation Considerations

RCL’s Deployment Trends

20

Big Brands Moving East

Repeat Customers Seeking New Experiences

Lines looking for Fuel-Economy Routes

Industry Sourcing New Customers from New Source Countries

New Ship Displacement Factor

21

New Ship Displacement Evolution

Oasis 6,000 pax to Miami

Freedom 4,000 pax to UK

Voyager 3,300 pax to Civita

Brilliance 2,200 pax to Dubai

Legend 1,800 pax to Shanghai

Sovereign to Pullmantur

22

RCL Summer Deployment

2004 2010 2011

Mediterranean 6 ships 8 ships 13 ships

Caribbean 10 ships 9 ships 6 ships

Alaska 6 ships 5 ships 5 ships

Baltic 3 ships 5 ships 5 ships

Bermuda/New England 2 ships 3 ships 3 ships

Asia/Australia 1 ship 1 ship

Mexico (Pacific) 1 ship

Total 27 ships 32 ships 33 ships

23

RCL Winter Deployment

2004 2010 2011

Caribbean 22 ships 23 ships 22 ships

South America 1 ship 4 ships 4 ships

Asia/Australia 3 ships 4 ships

Mediterranean 1 ship 2 ships

Middle East 1 ship 1 ship

Mexico (Pacific) 3 ships 1 ship

Hawaii-California 1 ship

Total 27 ships 33 ships 33 ships

24

0

50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Year

Po

rts

of

Ca

ll

0

5

10

15

20

25

30

35

40

45

50

55

60

Tu

rn P

ort

s

# Ports # Turn Ports

RCL Port Trends 2000 to 2011

25

RCL International Deployment: 2004

14,000 berths

Europe (Summer)

Splendour Brilliance Jewel Galaxy Millennium Constellation

South America

Infinity

26

60,000 berths

RCL International Deployment: 2011

27

Fort Lauderdale, Florida

Miami, Florida

Port Canaveral, Florida

San Juan, Puerto Rico

Barcelona, Spain

Rome, Italy

Bayonne, New Jersey

Baltimore, Maryland

Sao Paulo, Brazil

Venice, Italy

Sydney, Australia (#21)

Top 10 RCCL Home Ports for 2011

Port of Barcelona, Spain

RCL’s International

Overview

29

International Market: Overview

Half of RCL’s fleet to be positioned in international markets in 2011

Making calls in over 200 international ports

In 2004: carried 70,000 non-U.S. guests

2011 projection: carrying 1,800,000 non-U.S. guests

30

International Market: Deployment Highlights

Independence – the largest ship targeting the UK market

Celebrity Eclipse – sailing out of Southampton, England started July 2009 targeting UK guests

Rhapsody, Radiance, Century – summer Australasia sailings targeting local and international markets

Legend – year round in the Asian market targeting mostly mainland Chinese

Brilliance – Middle East sailings from Dubai targeting Russian, UK, and Italian guests

Galaxy / Mein Schiff – catering entirely to the German market

CDF Croisieres de France – catering entirely to the French market

31

International vs. USA: RCL Stats

Calendar year

Include all brands, Royal Caribbean International, Celebrity Cruises , Azamara Cruises, Pullmantur ,

Assumes Island Cruises until 2010 @50%, 500% of TUI

RCL Sourcing Mix Summary

International

51%

18%

USA

04A 05A 06A 07A 08A 09A 10F 11E 12E

PC

D's

32

RCL’s 2011 International Guest Market Mix

UK

30%

Brazil

10%

Nordic

7%Spain

6%

Germany

6%

Mexico

4%

Australia

4%

Puerto Rico

4%

China

4%

Italy

3%

Singapore

2%

LACAR Irs

8%

EMEA Irs

7%

APAC Irs

5%

33

International Offices

2008 Singapore, Singapore Shanghai, China Stockholm, Sweden Barcelona, Spain Madrid, Spain

2009

Gosford, Australia

Sydney, Australia

Beijing, China

Guangzhou, China

Sao Paulo, Brazil Manchester, U.K.

2010

Mexico City, Mexico 2004 London, UK Oslo, Norway Frankfurt, Germany Genoa, Italy Paris, France

34

48 unique International Representatives (IR’s) worldwide

Act as our representatives for Sales & Marketing activities

Partners with RCL to develop ideas and strategies to manage our international guests (some have been partners for 30 years)

Instrumental in creating brand awareness & creating global coverage for our global brands

Sell our products locally to increase RCL’s market share

penetration

RCL’s International Representatives Network

35 35

Royalcaribbean.es

Royalcaribbean.co.uk

Royalcaribbean.com.br

Royalcaribbean.com.espanol

Web Globalization

Considerations in

Australasia

37

Region Overview

All cruise lines servicing the region are increasing berths and/or length of season through 2012

Increasing demand for capacity in Australasia from foreign source and local markets

Double digit growth of Australian cruisers each year for 5 consecutive years through 20091

Australian cruisers increasingly choosing regional itineraries vs. North America, South America, and Europe1

South Pacific cruises 38% sourced from Australia in 20091

1Source: International Cruise Council Australia April 16, 2010 media release “Record Number of Australians Run Away to Sea in 2009”

38

Radiance and Century join Rhapsody in Australia for 2011-12 season!

Rhapsody will be targeted towards the local market

3-14 night itineraries including New Zealand, South Pacific and Queensland

Radiance & Century will offer a combination of local and global sourced products

2-18 night itineraries including New Zealand, South Pacific, Tasmania and Circumnavigation

RCL Triples Capacity in Australia

39

Many strong itineraries & destinations exist in the region (Trans-Tasman, Pacific Island, Circumnavigation, Indonesia, etc.)

Develop additional turn ports

• As Sydney becomes saturated, Melbourne, Brisbane, Cairns could be beneficiaries.

Develop infrastructure for larger vessels at ports of call

• Maritime considerations

• Shoreside considerations

Additional berth options in Sydney

• We need another large ship berth east of the Harbour Bridge!!!!

Additional revenue streams from development to recover cost

Regional Opportunities & Challenges

40

Can be a large burden

Australia Passenger Movement Tax of $47 per guest has highest impact

Taxes and Port Costs

Turn Port Cost Comparison

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Syd

ney, A

ustra

lia

Sao

Pau

lo (S

anto

s), B

razil

Sea

ttle,

Was

hing

ton

Baltim

ore,

Mar

ylan

d

Cop

enha

gen,

Den

mar

k

Bar

celona

, Spa

in

Oslo,

Nor

way

Ven

ice,

Italy

Hon

g Kon

g, C

hina

Sha

ngha

i, China

Hon

olulu,

Oah

u, H

awaii

Fort L

aude

rdale,

Florid

a

Tampa

, Florid

a

Nor

folk, V

irginia

Per

th (F

rem

antle

), Aus

tralia

Lisb

on, P

ortu

gal

Tokyo

(Yok

oham

a), J

apan

Sto

ckho

lm, S

wed

en

Singa

pore

BEIJIN

G (T

IANJIN),

CHIN

A

Kao

hsiung

, Taiwan

, China

*Port costs based on Vision Class ship: GRT 78,000 Berths 2,000

41

Australia & New Zealand (Trans-Tasman)

42

Australia (Circumnavigation)

43

South Pacific Islands

44

Southeast Asia

Maritime Feasibility

Considerations

Voyager Class

46

Voyager Class Ship – minimum requirements

Turning basin diameter: 460 meters

Basin depth: 11 meters

Channel width: 122 meters

Channel depth: 12 meters

Alongside depth: 10 meters

Air draft: 65 meters

Navigational Considerations

Rome (Civitavecchia), Italy

47

18 meter wide finger pier

Pier length: 325 meters

SWL 100 tons per bollard

6 bow, 6 stern, and 4 spring lines

12 to 18 foam filled fenders (8’ x 13’) 30 meters apart

2 to 3 gangways

Dockside Considerations

Bayonne, New Jersey

Voyager Class Ship – minimum requirements

Turn Port

Development Considerations

Voyager Class

49

Wide apron for provisioning logistics

Twenty 20-foot equivalent (TEU) container storage/staging

High volume fresh water hook-ups

Adequate employee and passenger parking spaces

Staging area for 20 buses, 20 taxis and 20 private pick-ups simultaneously

Crane availability

Trash disposal

Pier Servicing Considerations

Port of Baltimore, Maryland

50

Security

X-ray scanners and metal detectors (6 each)

Adequate spacing for queuing of guests, machines, and personnel (10,000 ft2)

Embarkation Area

Space for check-in and waiting areas (40,000 ft2)

Counter space for 50 multilingual check-in agents

Ethernet/wireless network capability

Ability to connect with ship

Luggage Handling

Ability to conduct simultaneous handling

of embark and debark luggage

60,000 square feet of air-conditioned

laydown area with 6 scanners

Avoid use of airport-style carousels

Security, Check-in & Luggage Considerations

Port Canaveral, Florida

51

Terminal Facility

Multi-function facility to generate revenue year-round

Separate facilities for embarking and debarking guests

2 to 3 entry and exit points

Additional seating capacity (1,500 guests)

Arrival Experience

High volume airlift of airlines to nearby airports

Hotel and pier proximity to local airport

Signage in English and local language

Separate staging areas for cars, taxis,

and buses for loading and unloading

Sufficient space for guest dropoff

with adequate traffic flow

Terminal & Arrival Experience Considerations

Galveston, Texas

Modern Turn Port Terminal

Design

Port Everglades

Florida

53

Guiding Principles

Keep it simple!

Zero lines – no waiting

Large space that feels intimate

Flexibility of terminal for any class of ship

Multi-use facility

Signage!

54

PEV Terminal 18

55

PEV Terminal 18 – Bus & Provision Route

56

PEV Terminal 18 – Guest Drop-off/Pick-up

57

PEV Terminal 18 – Loading Area

58

Terminal Main Entrance

59

Atrium View of Check-in Area

60

Mobile Gangways

61

Debark Area

Port of Call

Development Considerations

63

Interesting destination ports with culture, history, adventure, shopping, relaxing, and cuisine

Tours tailored for local and international guests

Hire and train enthusiastic guides

Staging area for shore excursions

Quality shore excursion buses

Visitor information center near dock

Free shuttle service to city center

Guest Experience Considerations

Alaska Seaplane Excursion

Modern Port of Call Design

Port of Roatan

Honduras

65

Port of Roatan

66

Town Center – 32,000 sq ft commercial space

67

Transportation Area – 3 acres

68

Waterfront Area – Pedestrian-friendly

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Global Deployment Trends

& Port Considerations

Presented by Craig Milan

Senior Vice President - Land Operations

Royal Caribbean Cruises, Ltd.