Carnival Corporations 4Q16 Earnings Call Notes

Arnold Donald – President & CEO

A lot of change happening in Cuba already, but slowly

“No, not that I’m aware but at this point in time obviously there are number of ships going for the first time, including Paradise which we’re excited about as I mentioned in my opening comments. So we are sending larger ships, Paradise probably the largest ship from the U.S. to Cuba going. And so you know, it will happen overtime, they’ve got pace and take their time but again there is a lot of change already occurring there, additional cruise companies are not going to Cuba after RE initial foray with the [indiscernible] Fathom brand and so things are increasing and we’ll just have to continue to work with them and go at the pace they want to go.”

New ships give higher ROIC

“Yes, sure. First of all, the new ships inherently give you a higher return on invested capital in general because of the mix, the scale, the density, the efficiency, just a combination of everything. So you know you’re going to build new ships because they are inherently more efficient and position for stronger return on invested capital in all kinds of environments. So new ships are coming.”