The company is expanding its fleet with 13 additional ships scheduled for delivery from 2025 through 2036, including Prima Class, Allura Class, and new classes of ships for Oceania and Regent brands. This demonstrates a commitment to long-term growth.

In response to OECD's BEPS 2.0 Pillar 2, the company restructured its organization by realigning operations into Bermuda, aiming to optimize tax efficiency. This involves redomiciling certain subsidiaries to Bermuda.

The company continues to invest in ports and facilities, including a new terminal in Galveston, Texas, expected to be operational in 2025, and agreements for berthing facilities in Juneau, Alaska, expected to be operational in 2027. These investments support itinerary diversification and enhance guest experiences.

The company announced its 'Charting the Course' strategy, emphasizing People Excellence to foster a culture of innovation, collaboration, and transparency. This commitment is expected to drive significant value to the company and its shareholders.

The company continues to prioritize identifying and evaluating initiatives to improve its cost structure and margin profile while maintaining brand equity and guest satisfaction. This indicates a focus on operational efficiency.

Management concluded that internal control over financial reporting was effective as of December 31, 2024, based on COSO Framework. This is supported by an audit from PricewaterhouseCoopers LLP.

The company acknowledges that if results of operations and financial performance do not recover as planned, it may not be in compliance with maintenance covenants in certain debt facilities, potentially leading to default and acceleration of debt.

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

The company acknowledges that regulations addressing climate change may have significant adverse impacts to profitability and operations, including significant expenses for ship modifications, alternative fuels, and higher-cost compliant newbuilds.

The company operates three award-winning brands with ships ranging in size from 500 to over 4,000 Berths and offers diverse itineraries to over 700 ports around the world. The clearly defined brands cater to different segments of the cruise market.

The company's target demographic consists primarily of high-net-worth travelers who appreciate upscale experiences. This customer base has proven to be resilient during economic downturns and demonstrates strong repeat booking patterns.

The company believes its strategic fleet expansion program, including new ship orders and the modernization of existing vessels, positions it for sustained growth. They maintain a disciplined approach to capacity growth while focusing on yield optimization and cost control.

The company is focused on pricing optimization, cost excellence and operating responsibly to generate enhanced returns. They are currently undergoing a broad and ongoing effort to improve operating efficiencies, including cost minimization initiatives, allowing them to progress towards achieving lower leverage.

The company's climate action strategy consists of Efficiency, Innovation and Collaboration. Each ship in our 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 developed a Safety Management System (“SMS”), which establishes policies, procedures, training, qualification, quality, compliance, audit and self-improvement standards. SMS also provides real-time reports and information to support the fleet and risk management decisions.

The company is investing in shore power technology, which with the appropriate port infrastructure would allow them to connect to onshore electrical power grids to supply much of the power needed while docked. A total of 19 ships in the fleet, or approximately 59%, are currently equipped with shore power technology.

The company successfully surpassed its 2024 goal of testing the use of biofuel blends on 40% of its fleet by testing biofuel blends on approximately 47% of its fleet. They are also lengthening and reconfiguring the designs for the final two Prima Class ships to accommodate the use of green methanol as a future fuel source.

The company seeks to deliver vacations that their guests value, providing digital and other tools to make it easier for them to curate their experience throughout the customer journey. They are focused on delivering exceptional onboard experiences, focusing on capturing more pre-cruise spend.

In 2024 and 2025, the company continued to take actions to improve its capital structure, including issuing $315.0 million in senior unsecured notes and redeeming existing notes. This demonstrates a proactive approach to managing debt.

The company has a disciplined fleet expansion program with new ship orders and has obtained export credit financing which is expected to fund approximately 80% of the contract price of each ship as well as related financing premiums.

The company's capital allocation priorities are focused on returning to profitability, reducing debt, and investing in growth opportunities. This indicates a balanced approach to managing capital.

The company is pursuing net zero greenhouse gas (“GHG”) emissions by 2050 across its operations (Scopes 1 and 2) and value chain (Scope 3). They have set interim targets to guide them on their path to net zero.

The Company's Board of Directors is actively engaged in overseeing the Sail & Sustain program, strategy and its implementation through its Technology, Environmental, Safety & Security Committee.

The company continues to offer the NCLH Wellness at Sea program to all shipboard team members, creating a wellness-conscious work environment on the vessels. They are committed to providing crew members with guidelines, resources, and activities for educational purposes and to guide them to achieve optimal wellness.

The company is subject to various international, national, state and local laws and regulations, including those that govern air emissions, waste discharge, wastewater management and disposal, and use and disposal of hazardous substances. They also must comply with economic substance requirements in certain jurisdictions.

Compliance with such laws and regulations has resulted in increased costs to the Company and is expected to entail significant expenses for a combination of: ship modifications, purchases of emissions allowances, alternative fuels and higher-cost compliant newbuilds.

The company acknowledges that global events and conditions, including the threat or possibility of future terrorist acts, outbreaks of hostilities or armed conflict, political unrest and instability, the issuance of government travel advisories or elevated threat warnings, increases in the activity of pirates, and other geo-political uncertainties, or the possibility or fear of such events, have had in the past and may again in the future have an adverse impact on our business.