Star Cruises Annual Report 2008 SCHEDULED INTERNATIONAL PORT of CALL BY REGION 2009 ASIA Newport, Rhode Island Nassau, Bahamas Philadelphia, Pennsylvania Oranjestad, Aruba Hong Kong Orlando* (Port Canaveral), Florida Philipsburg, St. Maarten Ishigaki, Japan Portland, Maine Roatan, Bay Islands, Honduras Kaohsiung, Taiwan Prince Rupert, British Columbia Roseau, Dominica Keelung, Taiwan Quebec City, Quebec Samana, Dominican Republic Langkawi, Malaysia Saint John, Bay of Fundy, New Brunswick Santo Tomas de Castilla, Guatemala Malacca, Malaysia San Francisco, California St. George’s, Bermuda Naha, Japan Seattle, Washington St. John’s, Antigua Penang, Malaysia Sept-Isles, Quebec St. Thomas, US Virgin Islands Phuket, Thailand St. John’s, Newfoundland Tortola, British Virgin Islands Port Klang, Malaysia Sydney, Nova Scotia Willemstad, Curacao Pulau Redang, Malaysia Vancouver, British Colombia Singapore Victoria, British Colombia SOUTH AMERICA Tanjong Belungkor, Singapore Yonaguni, Japan HAWAII Arica, Chile Buenos Aires, Argentina ALASKA Hilo, Hawaii Lima* (Callao), Peru Honolulu, Oahu Coquimbo, Chile Juneau, Alaska Kahului, Maui Iquique, Chile Ketchikan, Alaska Kona, Hawaii Manta, Ecuador Skagway, Alaska Lahaina, Maui Montevideo, Uruguay Nawiliwili, Kauai Puerto Chacabuco, Chile NORTH AMERICA Puerto Madryn, Argentina CARRIBEAN/BERMUDA/ Puerto Montt, Chile Astoria, Oregon Punta Arenas, Chile Baltimore, Maryland BAHAMAS Ushuaia, Argentina Bar Harbor, Maine Basseterre, St. Kitts Santiago* (Valparaiso), Chile Boston, Massachusetts Belize City, Belize Charlestron, South Carolina Bridgetown, Barbados PANAMA CANAL & Charlottetown, Prince Edward Island Castries, St. Lucia Halifax, Nova Scotia MEXICO Grand Bahama Island, Bahamas Los Angeles, California George Town, Grand Cayman Acapulco, Mexico Miami, Florida Great Stirrup Cay, Bahamas Cabo San Lucas, Mexico New Orleans, Louisiana Hamilton, Bermuda Cartagena, Colombia New York, New York King’s Wharf, Bermuda Costa Maya, Mexico 138 Consolidated Income Statement Cozumel, Mexico Istanbul, Turkey SCANDINAVIA & RUSSIA • Star Cruises Corporate Headquarters Huatulco, Mexico Ephesus* (Izmir), Turkey La Baie, Quebec Funchal, Maderia Aalesund, Norway • Norwegian Cruise Line Headquarters Mazatlan, Mexico Olympia* (Katakolon), Greece Bergen, Norway • Worldwide Offices and Representative La Paz* (Pichilingue), Mexico Las Palmas, Gran Canaria Copenhagen, Denmark Puerto Quetzal, Guatemala Paris* (Le Havre), France Geiranger, Norway This Annual Report contains forward-looking Puerto Vallarta, Mexico Lerwick, Shetland Islands Hellesylt, Norway Helsinki, Finland statements that involve risks and uncertainties. Puntarenas, Costa Rica Lisbon, Portugal These forward-looking statements are not Honningsvaag, Norway Topolobampo, Mexico Florence/Pisa* (Livorno), Italy historical facts, but rather are based on the Trujillo* (Salaverry), Peru Grandad* (Malaga), Spain Kristiansund, Norway current beliefs, assumptions expectations, Messina, Italy Oslo, Norway estimates and projections of Star Cruises Limited ANTARCTICA Mykonos, Greece Stavanger, Norway (the “Company”) about the industry and markets Nafplion, Greece Stockholm, Sweden in which the Company and its subsidiaries (the “Group”) will operate in the future. These Stanley, Falkland Islands Naples, Italy Trondheim, Norway statements are not guarantees of future Odessa, Ukraine performance and are subject to risks, EUROPE/BLACK SEA Olbia, Italy AFRICA uncertainties and other factors, some of which Palma, Majorca, Spain are beyond the control of the Group, are difficult Ajaccio, Corsica Agadir, Morocco Athens* (Piraeus), Greece to predict and could cause actual results to differ Amsterdam, Netherlands Alexandria, Egypt Ponta Delgada, Azores materially from those expresses or forecasted in Barcelona, Spain Casablanca, Morocco the forward-looking statements. Factors that Reykjavik, Iceland Belfast, Northern Ireland could cause actual results to differ materially Rhodes, Greece Seville* (Cadiz), Spain from those reflected in the forward-looking Rotterdam, Netherlands statements include general economic, political Cagliari, Italy Santorini, Greece and business conditions, change in cruise industry Cannes, France Notes: South Queensferry, Scotland competition, weather, force majeure events and/ * Ship will berth at port in parenthesis. Constanta, Romania or other factors. Reliance should not be placed Southampton, England ** Ports of call are correct at time of Rome* (Civitavecchia), Italy on these forward-looking statements, which St. Petersburg, Russia print and are subject to change. Cobh, Ireland merely reflect the view of the Company as of the Tallinn, Estonia London* (Dover), England date of this report only. The Company is under Valletta, Malta Dublin, Ireland no obligation to revise or update publicly these Varna, Bulgaria forward-looking statements or any part thereof Dubrovnik, Croatia Venice, Italy to reflect events or circumstances resulting from Falmouth, England Vigo, Spain any new information, future events or otherwise Gibraltar, United Kingdom Nice* (Villefranche), France on which any such statement was based. Greenock, Scotland Berlin* (Warnemunde), Germany Guernsey, Channel Islands Yalta, Ukraine Invergordon, Scotland Brussels/Brugge* (Zeebrugge), Belgium Iraklion, Greece 139 CONTENTS 03 28 74 Corporate Information Report of the Directors Notes to the Consolidated Financial Statements 04 44 Chairman’s Statement Corporate Governance Report 132 Independent 08 Auditor’s Report Fleet Profile 63 Consolidated Income Statement 133 10 Audited Five Years Financial Summary Global Highlights 64 16 Balance Sheets 134 Properties Summary Management’s Discussion and 66 Analysis of Financial Consolidated Condition and Results Cash Flow Statement 136 of Operations Star Cruises Worldwide Offices 71 and Representatives 23 Statements of Changes Directors and Senior in Equity Management Profiles 02 Corporate Information CORPORATE INFORMATION Board of Directors Hong Kong Branch Registrar Tan Sri LIM Kok Thay Computershare Hong Kong Investor Chairman and Chief Executive Officer Services Limited 46th Floor, Hopewell Centre, Mr. Alan Howard SMITH Deputy Chairman and 183 Queen’s Road East, Independent Non-executive Director Hong Kong SAR Tel: (852) 28628628 Mr. CHONG Chee Tut Fax: (852) 28650990/25296087 Executive Director and Chief Operating Officer Mr. William NG Ko Seng Transfer Agent Executive Director M & C Services Private Limited 138 Robinson Road #17-00, Mr. TAN Boon Seng The Corporate Office, Independent Non-executive Director Singapore 068906 Mr. LIM Lay Leng Tel: (65) 62280507 Independent Non-executive Director Fax: (65) 62251452 Mr. HEAH Sieu Lay Independent Non-executive Director Auditors PricewaterhouseCoopers President Certified Public Accountants Mr. David CHUA Ming Huat 22nd Floor, Prince’s Building, Central, Hong Kong SAR Secretary Ms. Louisa TAM Suet Lin Internet Homepage www.starcruises.com Assistant Secretary Appleby Services (Bermuda) Ltd. Investor Relations Enquiries may be directed to: Registered Office Canon’s Court, 22 Victoria Street, Ms. Sandy SI Hop Yee Hamilton HM 12, Bermuda Senior Vice President - Finance Hong Kong SAR Tel: (852) 23782000 Corporate Headquarters Fax: (852) 23143809 Suite 1501, Ocean Centre, 5 Canton Road, E-mail: [email protected] Tsimshatsui, Kowloon, Hong Kong SAR Tel: (852) 23782000 Ms. Louisa TAM Suet Lin Fax: (852) 23143809 Company Secretary Hong Kong SAR Bermuda Principal Registrar Tel: (852) 23782000 Butterfield Fulcrum Group (Bermuda) Limited Fax: (852) 23143809 Rosebank Centre, 11 Bermudiana Road, E-mail: [email protected] Pembroke HM08, Bermuda Tel: (441) 2951111 Fax: (441) 2956759 03 Star Cruises Annual Report 2008 CHAIRMAN’s STATEMENT Dear Valued Shareholders, The redeployment of SuperStar Virgo to Hong Kong was part of a shift which saw SuperStar Aquarius On behalf of the Board of Directors, I would like to leaving Hong Kong for Singapore, while SuperStar present the Annual Report for the Star Cruises Group Libra was deployed to Taiwan, and then to Singapore, of Companies (the “Group”) for the year ended 31 in November 2008. December 2008. This seasonal repositioning helps to bring new elements to our customers in different regions, and A BRIEF REVIEW further advancing the appeal of cruising. Itineraries are arranged in direct correlation to the splendor and CRUISE OPERATIONS flavor of each of the different ships, which aim to bring continuous exhilaration and surprise to our Anyone who watched the stock market knows 2008 repeat and new guests. was a year of highs and lows. From the overwhelming global financial crisis to American presidential In our US operations, a fleet-wide initiative called election, the unprecedented Beijing Olympics to Freestyle 2.0 featuring significant product and heartbreaking Sichuan earthquake and much more hardware upgrades has been in place since the middle makes for one eventful year. of May. The Freestyle 2.0 program further enhanced the onboard experience like dining, accommodation, In such a challenging economic situation, we reacted wide range of activities for guests of all ages and by a number of tactical redeployments that will see additional recognition, service and amenities for our vessels call on different ports and destinations in balcony, suite and villa guests. Asia. Moreover, we are also excited to launch the A significant highlight was the introduction of construction of NCL’s third generation of Freestyle SuperStar Virgo, the largest and most extravagant