The company took delivery of Oceania Cruises' Vista, Norwegian Viva, and Seven Seas Grandeur in 2023, adding to its capacity and enhancing its product offering. This demonstrates a commitment to growth and fleet modernization.

Norwegian has orders for five additional ships, including four Prima Class ships and one Allura Class ship, scheduled for delivery between 2025 and 2028. These additions are expected to increase the company's total berth capacity to approximately 82,500.

Due to the ongoing conflict in Israel and the Red Sea, the Company cancelled and redirected all calls to Israel and the Red Sea for the entirety of 2024. Prior to the conflict, approximately 7% of the capacity in the fourth quarter of 2023 and 4% of capacity for the full year 2024 expected to visit the Middle East.

During the fourth quarter of 2023, the Company restructured its organizational structure by realigning many of its operations across its three different brands into a single jurisdiction, Bermuda, in response to the OECD's BEPS 2.0 Pillar 2 global tax reform.

Management is prioritizing identifying and evaluating a variety of initiatives to improve its cost structure and margin profile, while preserving its brand equity and optimal guest satisfaction levels. This indicates a proactive approach to managing profitability in a dynamic environment.

For the full year of 2023, the Company experienced its highest shoreside voluntary retention rate as compared to the prior four years. This shows that the management is doing a good job to retain employees.

The company's debt facilities include maintenance covenants, and failure to comply could lead to cross-defaults and the need to refinance or divest assets. There is no assurance that waivers can be obtained.

The company anticipates needing additional financing in the future, which may not be available on favorable terms or at all, and future financing may be dilutive to existing shareholders.

Compliance with environmental laws and regulations has resulted in increased costs and is expected to entail significant expenses for ship modifications, alternative fuels, and higher-cost compliant newbuilds.

The company's business depends on maintaining and strengthening its brand to attract new customers and maintain ongoing demand for its offerings. A significant reduction in such demand could harm results of operations.

The company faces competition from operators such as Carnival and Royal Caribbean, as well as land-based vacation alternatives like hotels, resorts, and casinos. This highlights the need for continuous differentiation and innovation.

The company's international efforts are aimed at strengthening its global footprint by increasing brand awareness across the globe, which allows it to diversify its guest sourcing.

The company is undergoing a broad and ongoing effort to improve operating efficiencies, including cost minimization initiatives, to strengthen the foundation for sustained, profitable growth and mitigate the impact of inflation and supply chain disruptions.

The seasonality of the company's results is increased due to ships being taken out of service for regularly scheduled Dry-docks, which are typically scheduled during non-peak demand periods to minimize revenue impact.

The company relies on external third parties to provide hotel management services for certain ships and other services, such as technology and payment processing services, that are vital to the business. If these service providers suffer financial hardship or disruptions, the company cannot guarantee it will be able to replace them in a timely manner.

In 2023, the company announced that it would improve the connectivity for guests and crew at sea by offering Space X's Starlink high-speed internet on its ships, which is expected to be completed for the entire fleet in 2024.

Continued investments in our websites and applications will be key not only to driving interest and bookings, but also to ensuring the optimal pre-cruise planning experience offering guests the ability to shop, reserve and purchase a breadth of onboard products and services.

We continue to test, enhance and expand our use of digital marketing, data and analytics and emerging marketing technology to drive cost efficiencies and maximize return.

In 2023, the company refinanced the Term Loan A Facility and issued senior secured notes to manage debt maturities and interest rates. These actions aim to bolster the company's financial condition as part of its long-term post-pandemic financial recovery strategy.

The company believes new ships will allow it to continue expanding the reach of its brands, position it for accelerated growth, and provide an optimized return on invested capital. Fixed-rate export-credit backed financing is expected to fund approximately 80% of the contract price of each ship.

Anticipated expenditures related to ship construction contracts are $0.4 billion, $2.1 billion and $1.4 billion for the years ending December 31, 2024, 2025 and 2026, respectively.

The company is pursuing net zero greenhouse gas (GHG) emissions by 2050 across its operations (Scopes 1 and 2) and value chain (Scope 3). Interim targets have been set to guide this path and will be detailed in the annual ESG Report.

Each ship in the fleet has a Shipboard Energy Efficiency Management Plan with the objective to improve the overall operating efficiency of the ship by implementing methods for energy and fuel savings.

The company has successfully tested the use of biofuel blends on over 20% of its fleet as a potential “drop-in” solution that does not require modifications to existing engines.

The Company continues to experience healthy consumer demand and is at an all-time high booked position and with pricing reflective of some of the best booking weeks in the Company's history beginning with Black Friday and Cyber Monday.

As a result of the ongoing conflict in Israel and the Red Sea, the Company cancelled and redirected all calls to Israel during the fourth quarter of 2023. Additionally, all calls to Israel and the Red Sea have been cancelled and redirected for the entirety of 2024.

As a result of conditions associated with global macroeconomic events, the global economy, including the financial and credit markets, has experienced volatility and disruptions, including impacts to inflation rates, fuel prices, foreign currencies and interest rates.