Presented by:Presented by: Craig MilanCraig Milan

President, Royal Celebrity ToursPresident, Royal Celebrity Tours

Royal Caribbean InternationalRoyal Caribbean International

CCanada / anada / NNew ew EEngland ngland MMega ega TTrendsrends

CContentsontents

1. RCCL’s future plans for Canada / New England

2. Canada / New England highlights and challenges

3. Region’s past performance

4. E.C.A.

RRCCL’s CCL’s FFuture uture PPlans lans fforor CCanadaanada / N / Newew E Englandngland

FFallall 2 2012 012 CCanada anada / N/ Newew EEngland ngland SSeason eason PProgramrogram

New guest sourcing from local Quebec City market on open jaw cruises

Addition of two (2) new ports-of-call in the regionGaspe – visited by Celebrity Summit and Brilliance of the SeasSt. Pierre and Miquelon – visited by Brilliance of the Seas

First time, ten (10) and eleven (11) night round-trip itineraries from Quebec City

Increase in number of calls from 103 to 120 between 2011 and 2012, and addition of home port in Quebec City

22012012 R RCCL’s CCL’s SShips hips iin n CCanada anada / N/ New ew EEngland ngland RRegionegion

Jewel of the Seas Offering seven (7) night sailings from Boston; visiting Bar Harbor, Halifax, Portland and Saint John, New Brunswick

Enchantment of the Seas

Sailings of eight (8) nights starting from Baltimore; stopping by Bar

Harbor, Boston, Halifax, Newport, Portland, and Saint John, New

Brunswick

Brilliance of the Seas

Never before offered, two (2) round-trip cruises of eleven (11) and ten

(10) nights starting from Quebec City, going to Charlottetown, Corner

Brook, Halifax, Saguenay, St. Pierre Miquelon and Sydney

New Open Jaw cruises leaving from Bayonne to Quebec City

Celebrity Summit

Sails from Bayonne, offering three (3) fourteen (14) night cruises in

the Fall making calls in Portland, Bar Harbor, Halifax, Charlottetown,

two (2) days in Quebec City and a new stop in Gaspe

RRCCLCCL C Callsalls i innCCanadaanada / N / Newew E Englandngland

Port NameNumber of Calls2011 2012

Bar Harbor, Maine 19 15 Boston, Massachusetts 20 17 Charlottetown, Prince Edward Island  3 7 Corner Brook, Newfoundland   2 Gaspe, Canada *** NEW ***   5 Halifax, Nova Scotia 19 18 Newport, Rhode Island  1 10 Portland, Maine 19 15 Quebec City, Quebec  3 6 Saguenay, Quebec, Canada   2 Saint John, New Brunswick (Bay of Fundy) 16 12 St. Pierre and Miquelon *** NEW ***   2 St. John's, Newfoundland  1 2 Sydney, Nova Scotia 2 7

Total 103 120

CCanadaanada / N / Newew E Englandngland HHighlightsighlights a andnd C Challengeshallenges

RRegion’s egion’s HHighlightsighlightsInteresting ports offering a wide variety of cultural, historical, adventure, relaxation, shopping, and delicious regional cuisine

Tours are mostly tailored to the more mature cruise guests, hence offering less adventurous activities than in other ports

New port infrastructure in the Canada / New England region

Portland – Approval of $6.5M bond for new mega-berth for docking

cruise industry’s largest ships

Boston – Opening of $11M new terminal upgrade

Quebec - $1.9M terminal upgrade

Saint John- $4.5M funding to expand cruise berth and passenger

handling capacity

Sept-Iles – Inaugurated new $20M-plus cruise wharf

RRegion’s egion’s CChallengeshallenges

High volume of senior guests as cruises often occur during the fall. Spend can not be as great as in other itineraries.

Region’s weakness in appealing to the family market (Disney’s offer of first 2012 Summer cruise program for Canada will help this)

Overcrowded marquee ports such as Bar Harbor and Halifax; limiting berths and tour activities for larger ships

High port related costs in certain ports

Inconsistency of port infrastructures and guest experiences

Making Summer season as popular as the Fall sailings

CCanadaanada / N / New ew EEnglandnglandRRecentecent P Performanceerformance

RRegion’s egion’s OOverall Appealverall Appeal

High guest satisfaction across all ports

Best guest rated cruise region

Great tour partners and outstanding guest services

Very stable cruise destination

RRCCLCCL C Canadaanada / N / Newew E Englandngland PPortort A Appealppeal

Port Name 

2009 2010 Bar Harbor, Maine 8.3 8.3 Boston, Massachusetts 7.6 7.9 Charlottetown, Prince Edward Island 8.6 8.6 Halifax, Nova Scotia 8.5 8.4 Newport, Rhode Island 7.7 7.9 Portland, Maine 7.7 7.8 Quebec City, Quebec * 8.8 8.7 Rockland, Maine 7.5 7.5 Saint John, New Brunswick (Bay of Fundy) 8.1 8.0 St. John's, Newfoundland 8.5 8.2 Sydney, Nova Scotia 8.3 8.2

Total 8.1 8.1

RRCCLCCL C Canadaanada / N / Newew E EnglandnglandPPortort S Satisfactionatisfaction

Port Name 

2009 2010 Bar Harbor, Maine 8.5 8.5 Boston, Massachusetts 8.2 8.6 Charlottetown, Prince Edward Island 8.6 8.7 Halifax, Nova Scotia 8.4 8.8 Newport, Rhode Island 8.3 8.5 Portland, Maine 8.0 8.4 Quebec City, Quebec * 9.4 9.6 Rockland, Maine 8.3 8.0 Saint John, New Brunswick (Bay of Fundy) 7.8 8.0 St. John's, Newfoundland 7.6 7.7 Sydney, Nova Scotia 8.0 8.3

Total 8.3 8.5

NNewew E. E.CC.A. R.A. Regulationsegulations

E.E.CC.A..A.

E.C.A. regulations affect ships sailing within 200 nautical miles off the coast of the US and Canada

2012 - E.C.A. in effect: Requires ships to burn low sulfur fuel oil or LSFO at a maximum of 1.0% sulfur

Represents increase in fuel costs of 10% over current costs

Compliant fuel not available in many ports

2015 – E.C.A. changes: Sulfur limits increase, requiring ships to burn fuel (Marine Gas Oil – MGO) at a maximum of 0.1% sulfur

New 2015 limits represent 50% increase in fuel costs

CCruiseruise L Lines ines aarere AAddressingddressing E. E.CC.A..A.

Invest in exhaust gas scrubbers: Burn less expensive fuel and clean the exhaust to the equivalent of higher cost fuels set out in the regulations

Technology is currently expensive and not commercially ready for ships

Modify deploymentMinimize number of ships in E.C.A. areasReduce time spent in E.C.A. regions

MMercierci!...T!...Thank hank YYouou!!