Norwegian Cruise Line Holdings Reports Financial Results for the First Quarter 2015

Company Reports Stronger Than Expected Earnings in its First Full Quarter Following Acquisition of Prestige Cruise Holdings

Wiesbaden, May 7, 2015 – Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH)  (NCL Corporation Ltd., “Norwegian Cruise Line Holdings”, “Norwegian” or “the  Company”), today reported financial results for the quarter ended March 31, 2015 and provided guidance for the second quarter and full year 2015.

First Quarter 2015 Highlights

• Improvement in Adjusted EPS of 17,4% to $0,27 on Adjusted Net Income of $62,6 million
• Adjusted Net Yield increase of 18,9% (19,9% on a Constant Currency basis) driven by the addition of the upper premium Oceania Cruises and luxury Regent  Seven Seas Cruises brands
• Integration of Norwegian and Prestige Cruise Holdings (Prestige) operations largely complete. Continued synergy identification efforts lead to $75 million  in synergies for 2015, $115 million for 2016.

First Quarter 2015 Results
“I am pleased to report  strong earnings out of the gate for our first full quarter of operations  following the combination of Norwegian and Prestige late last year,” said Frank  Del Rio, President and Chief Executive Officer of Norwegian Cruise Line Holdings  Ltd. “These results are even more impressive as they come against strong  comparables in the prior year, particularly for the Norwegian brand, and  headwinds from foreign currency exchange rates,” continued Del Rio.

For the first quarter of 2015, the Company generated stronger than expected adjusted earnings per share of $0,27 on Adjusted Net Income of $62,6 million. Earnings exceeded the Company’s guidance of $0,20 to $0,24 per share and  benefited from lower than expected interest expense and better than anticipated  Net Yield performance. On a GAAP basis, diluted loss per share and net loss were  $0,10 and $21,5 million, respectively, primarily due to transaction and integration related costs.

Adjusted Net Yield improved 18,9% (or 19,9% on a Constant Currency basis) mainly due to the acquisition of the Oceania Cruises and Regent Seven Seas  Cruises brands in the fourth quarter of 2014. On a Combined Company basis, which compares current results against the combined results of Norwegian and Prestige  in the prior year, Adjusted Net Yield was down 0,7% and essentially flat on a Constant Currency basis against a strong first quarter of 2014 that included the  benefit of a one month charter of Norwegian Jade for the 2014 Winter Olympics. Adjusted Net Revenue for the period increased 46,0% to $728,9 million as a result of the acquisition of the Oceania Cruises and Regent brands as well as approximately one month of incremental sailings from Norwegian Getaway which  debuted in early 2014. Revenue in the period increased to $938,2 million from $664,0 million in 2014.

Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 28,7%  (29,3% on a Constant Currency basis), primarily as a result of the Prestige acquisition, while on a Combined Company basis increased 5,6% (6,1% on a Constant Currency basis). The Company’s fuel price per metric ton decreased 18,2% to $526 from $643 in 2014.

The incremental debt from the acquisition drove an increase in interest expense, net to $51,0 million from $31,2 million; however, lower than  anticipated interest rates resulted in expense that was lower than the Company’s  guidance. Expense of $30,1 million in other income (expense) in 2015 was  primarily attributable to a fair value adjustment on a foreign exchange collar for one of the Company’s newbuilds.

Integration Update
As a result of continued  integration and synergy identification efforts, the Company has now identified  $75 million in synergies for full year 2015, comprised of $30 million in revenue and $45 million in cost synergies. The Company had previously communicated the  identification of $15 million in revenue and $25 million in cost synergies for a  total of $40 million for 2015. Of the incremental synergies, the Company is  earmarking $20 million for reinvestment directed to business initiatives to further drive demand to the Company’s three brands, resulting in net synergies  of $55 million for 2015.

“The identification of additional synergies has come as the result of a truly collaborative effort between our dedicated integration team and all areas of the  organization,” said Del Rio. “Tasked with a mandate that synergies have a  neutral or positive impact on the guest experience, the organization has come  together to identify meaningful incremental synergies. The net synergies will  have an immediate impact on the bottom line in 2015, while amounts reinvested in  our business initiatives will benefit our strategies for earnings growth in 2016 and beyond,” continued Del Rio.

For the full year 2016, the Company has identified synergies of $115 million which includes the annualization of initiatives introduced in 2015 coupled with  new initiatives. Of these, the Company plans to reinvest $40 million, resulting  in net synergies for the year of $75 million.

2015 Guidance and Sensitivities
In addition to the  results for first quarter 2015, the Company also provided guidance for the  second quarter and full year 2015, along with accompanying sensitivities. Guidance for Adjusted Net Yield and Adjusted Net Cruise Cost Excluding Fuel per  Capacity Day are provided on an as reported basis as well as a Combined Company  basis, which compares expectations to 2014 results that include the results of Prestige assuming the acquisition had occurred at the beginning of 2014.

The Company’s guidance includes the impacts of expected continued  fluctuations in foreign exchange rates and an unscheduled Dry-dock for Norwegian  Star in the second quarter for warranty-related repairs on its propeller system  which malfunctioned post the ship’s scheduled Dry-dock in the first quarter.

“We are raising the midpoint of our guidance to take into account the better  than anticipated interest expense and net yield performance in the first quarter,” said Wendy Beck, executive vice president and chief financial officer  of Norwegian Cruise Line Holdings Ltd. “We are maintaining our net yield and net  cruise cost guidance for the year as benefits from our incremental revenue synergies offset the anticipated foreign currency headwinds and the revenue impact from the unscheduled dry-dock of Norwegian Star. Further, the  reinvestment of $20 million into demand-driving initiatives is offset by  incremental cost synergies identified in the quarter,” continued Beck.

(1) Combined Company compares 2015 estimates with the combined results of Norwegian and  Prestige for the second quarter and full year 2014.
(2) Adjusted to  exclude amortization of intangibles from purchase accounting.
(3) Based on midpoint of guidanceThe following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.

As of March 31, 2015, the Company had hedged approximately 74%, 53%, 37% and 11% of its 2015, 2016, 2017 and 2018 projected metric tons of fuel purchases, respectively. The average fuel price per metric ton of the hedge portfolio for  the same periods is $493, $468, $416 and $386, respectively.

Future capital commitments consist of contracted commitments, including ship construction contracts, and future expected capital expenditures necessary for operations. As of March 31, 2015, anticipated capital expenditures were $1,1 billion for the remainder of 2015, and $0,9 billion and $1,0 billion for each of  the years ending December 31, 2016 and 2017, respectively, of which we have  export credit financing in place for the expenditures related to ship construction contracts of $0,7 billion for the remainder of 2015, $0,5 billion for 2016 and $0,6 billion for 2017.