Annual Report 2018 Annual Report 2018 Index
Total Page：16
File Type：pdf, Size：1020Kb
ANNUAL REPORT 2018 ANNUAL REPORT 2018 INDEX AT A GLANCE: MSC CRUISES IN 2018 4 2018 DELIVERING THE GROWTH 6 2018 KEY FINANCIAL HIGHLIGHTS 8 2018: A YEAR OF STRONG FINANCIAL RESULTS 10 RECONNECTING OUR CUSTOMER BASE WITH THE OCEANS 14 POISED TO SET A COMMERCIAL GROWTH RECORD 16 CREATING NEW HOLIDAY EXPERIENCES 20 OFFERING A WIDE ARRAY OF THE WORLD’S MOST BEAUTIFUL DESTINATIONS 24 ENTERING NEW MARKET SEGMENTS 26 SIGNIFICANT GROWTH IN KEY ACCOLADES ACROSS ALL MARKETS 28 SUSTAINABLE GROWTH ACROSS THE GLOBE 30 NEW BUILDS PLAN 32 A COMPANY INSPIRED BY PEOPLE AND VALUES 34 CREATING A POSITIVE IMPACT FOR PEOPLE AND PLANET 36 NAVIGATING A SUSTAINABLE COURSE 38 MSC GROUP 42 BUSINESS REPORT 45 MANAGEMENT STRUCTURE AND CORPORATE GOVERNANCE 53 MSC CRUISES GROUP CONSOLIDATED FINANCIAL STATEMENTS 55 PARENT COMPANY MSC CRUISES SA FINANCIAL STATEMENTS 125 AT A GLANCE: MSC CRUISES IN 2018 NO. 1 CRUISE LINE OUR OUR In terms of capacity NETWORK in Europe, South America, PEOPLE OUR OUR South Africa and the Gulf. SHIPS GUESTS 30,523 employees*** on board EUR 11.4 BILLION and ashore INVESTMENT PLAN 69 15 number of MSC Cruises 6,747 16 next-generation cruise ships* to join our fleet ships sales offices around additional people hired in 2018 the world million between 2019 and 2027. 2.4 guests welcomed 130 7.9 years 81 nationalities working on board one of the youngest fleets at sea** countries in which 180 MSC Cruises holidays are sold 8 nationalities welcomed on board languages commonly spoken on board: English, Spanish, Italian, Portuguese, Chinese, 0 French, German and Dutch the number of single-use plastic straws on board 46 our fleet at the end of 2018 average age of our guests (*) including 4 option agreements. (**) average age of fleet weighted by ALB. (***) includes crew members and personnel in outsourced shared service centers. 2018 DELIVERING THE GROWTH +71% ACCOLADES +32% EBITDA +23% CAPACITY 2018 KEY FINANCIAL HIGHLIGHTS 5,189 NUMBER OF million € 2,751 OPERATING DAYS TOTAL REVENUES 27% € 348 million EBITDA MARGIN NET PROFIT 111.6% € OCCUPANCY RATE % 15.2 million 21 ALBDS* REVENUE GROWTH 20% volume 2018 vs 2017 YEAR-ON-YEAR € 741million INCREASE IN EBITDA PASSENGER BOOKINGS *ALBDs (Available Lower Berth Days) is a standard measure of passenger capacity for the period, which we use to perform rate and capacity variance analyses to determine the main non-capacity driven factors that cause cruise revenues and expenses to vary. ALBDs assumes that each cabin we offer for sale accomodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period. 2018: A YEAR OF STRONG 2018: a year of strong financial results, breakthrough innovations and new environmental commitments MSC Cruises Group In 2018 we delivered what we promised and continued to build In 2018, we made a commitment to effectively phase out an FINANCIAL RESULTS, great momentum in the cruise and travel industry. extensive number of single-use plastic items from all ship Following the deployment of three new next-generation cruise operations and ashore by April 2019. ships between May 2017 and June 2018, we successfully added an extraordinary 12,700 lower berths to our global fleet. BREAKTHROUGH INNOVATIONS MSC Seaview, which entered into service in June 2018, as well as MSC Meraviglia and MSC Seaside, delivered in May and November 2017 respectively, have all lived up to AND NEW ENVIRONMENTAL our expectations since they joined our fleet and have greatly increased our bottom line. As a result of this expanded capacity, our year-on-year revenues increased by 21% compared to the previous financial year, COMMITMENTS reaching EUR 2,751 billion. This is the highest revenue increase ever recorded in the Company’s history and significantly exceeds the market trend, which saw a steady 6% capacity increase in 2018. By the end of 2018, we had already replaced all plastic straws As interest in our product continues to soar, we welcomed an with fully compostable and biodegradable substitutes. additional 387,623 holidaymakers on board our ships in 2018, In addition, drinks are no longer automatically served with a hitting a new landmark of 2.4 million guests. Our ongoing efforts straw. to build a loyal customer base across the globe will ensure sustainable growth in the future. With a view to further diversify our fuel strategy, we laid the conceptual foundation stones for our upcoming LNG-powered Advance bookings continued to be robust across the fleet and ships by concluding contracts with the Chantiers de L’Atlantique by the end of 2018, MSC Bellissima – in the final phase of her (formerly STX France) shipyard in Saint-Nazaire, France, for the construction at the time – already had 100,000 guests lined construction of three LNG-powered vessels with delivery dates up for sailings. MSC Grandiosa enjoyed equally strong demand between 2022 to 2024. when bookings opened in March 2018 and a healthy consumer appetite for MSC Virtuosa – due to enter service in 2020 – The shipyards in France and Italy were buzzing with activity also gives us confidence that we will be able to sustain this during 2018. For the first time in history, three cruise ships momentum through 2020 and beyond. belonging to a single cruise brand were under construction, at the same time, at Chantiers de L’Atlantique in Saint-Nazaire, Delivering an unparalleled holiday and cruise experience has France. been our mission since day one and we continue to raise the bar Thousands of staff worked – and continue to work – hard to put and whet appetites for our product year on year. In this vein, the finishing touches to MSC Bellissima, delivered in February MSC Cruises made further progress across the board, in terms of 2019, and MSC Grandiosa which is scheduled for delivery in both guest experiences and marine operations. October 2019. Concurrently, in June 2018, we cut first steel of our 4th Meraviglia Class ship which will sail under the name of We continued to invest in the latest marine technology to MSC Virtuosa. further strengthen our environmental credentials. Protecting the environment is a key area of focus for MSC Cruises and we are Meanwhile, in Italy, Fincantieri shipyard in Monfalcone delivered committed to reducing the impact of our ships and ensuring our the highlight of 2018 with the completion of MSC Seaview, our business grows in a sustainable manner. second Seaside Class ship. After a short break, construction activities resumed in November 2018 with the steel cutting of In 2018, our environmental efforts received global recognition MSC Seashore, the first of two Seaside EVO ships. when the international classification society Bureau Veritas MSC Seashore will be the first of its kind, further enriching our awarded MSC Meraviglia ‘8 Golden Pearls’, one of the highest Seaside Class with new cutting-edge features, 200 additional notations any cruise ship can attain for sustainable environmental cabins and even more spacious public areas. stewardship. Furthermore, MSC Seaside and MSC Seaview Our diversified geographic focus yielded strong commercial received the ‘Green Star 3 Design’ award from RINA in results in established and emerging markets. While we recognition of their outstanding environmental credentials. consolidated our position as the brand market leader in Europe, ANNUAL REPORT 2018 | 11 MSC Cruises Group 2018: a year of strong financial results, breakthrough innovation and new environmental commitments MSC Cruises Group board our ships is the launch of artificial intelligence in the form In addition to investing in our hardware and product offering, of ZOE, a digital personal assistant, already implemented on we announced further strategic investments in terminal MSC Bellissima. We also initiated new global partnerships, development in key areas including Barcelona, Durban and including another strategic collaboration with the two-Michelin- Miami, to offer guests even richer itineraries and a seamless starred chef, Ramón Freixa, to further enrich our fine dining end-to-end cruise experience. offering. In addition, new shows created with our strategic entertainment partner, Cirque du Soleil, were announced as well. With a view to further diversifying our product offering and strengthening our position within the luxury segment, an Moreover, we commenced the one-year countdown to announcement was made in October 2018 with regard to the completing Ocean Cay MSC Marine Reserve, our private island signing of a memorandum of agreement with the Fincantieri and exclusive beach destination in the Bahamas. shipyard for the construction of four dedicated luxury cruise ships. Pursuant to the memorandum of agreement, in March 2019, we signed the shipbuilding contracts with Fincantieri for the construction of four luxury cruise ships with expected yearly deliveries starting from spring 2023. The combined contract price of the four ships is approximately EUR 1,961 million. On the same date, we signed for an option agreement for two additional luxury cruise ships with targeted delivery date December 2026 and June 2027 for approximately EUR 494 million each. 2018 saw the MSC Group introduce the MSC Company Values. These values are the beating heart of our business and the cornerstone of our Company. They support our vision, shape South America, South Africa and the Gulf, we also successfully After her inaugural season in the Mediterranean, MSC Seaview our culture and set our future course, providing a guiding path tapped into the market potential of North America and Asia. moved on to South America, elevating the cruise experience in for all employees and ensuring the Company continues to move the 2018-2019 winter season. This strategic deployment served forward in the right direction. We further enriched our guests’ experiences with new exciting to consolidate our superior product and market leadership in the itineraries and new ships.