FINANCIAL MANAGEMENT AT AIDA CRUISES -...

© 2018 AIDA Cruises. All rights reserved.

Marcel Gnoth, Head of Financial Planning & Analysis

ICCC Zagreb, November 2018

FINANCIAL MANAGEMENT AT AIDA CRUISES


▪ Company presentation

▪ Cruise Market development

▪ Financial Management at AIDA Cruises

▪ Driver-based mid- and long-term planning

2

Agenda


Success Through Innovation


Part of the World’s Most Successful Cruise Corporation


5

▪ > 25.000 lower berths

▪ Around 8.6 mil. overnight stays in 2017

▪ 92% Guest satisfaction

▪ Nearly 800 cruise offers

▪ > 210 different ports world wide

▪ > 3.800 shore excursions

▪ 100 mil. € investments in environmental

technologies

▪ 70% European, 50% German Vendors

▪ 11.400 employees from 50 countries

▪ 10.400 aboard, 1.000 ashore in Rostock

and Hamburg

Our Guests Our Offer

Our Employees Our Responsibility

AIDA Cruises at a glance






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Agenda


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In 2017 the German Cruise Market exceeded the number of 2 Million

passengers

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

763 907 1,027 1,219 1,388 1,544 1,687 1,771 1,813 2,018 2,188

8.2% 18.9% 13.2% 18.7% 13.9% 11.2% 9.3% 5.0% 2.4% 11.3% 8.4%

Passenger

in `000

YoY in %

0

800

200

600

400

1,400

1,000

1,200

1,600

1,800

2,000

2,200

20152007 2008 20122009 2010 2011 2013 2014 2016 2017

+11.1%

Source:CLIA report “2016 Statistics & Markets Europe“, CLIA press release March 2018


▪ 130 port calls with AIDAaura and AIDAblu

▪ Dubrovnik & Zadar most frequented ports, other ports of call Rijeka & Split

▪ April to October once a week

▪ Circa 310,000 passengers

AIDA in Croatia – season 2018/2019

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Agenda


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Business models of a cruise company

On-Board & On-Shore DestinationPre-

CruisePost-

CruisePre-

Booking

Pre-

Booking

Hotel Operations & Guest Experience

Marine Operations

Ma

rketing &

Sa

les

1

Custo

me

r E

xp

erie

nce

& A

fte

r S

ale

s

2

3


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Main processes and performance indicators of our business model

► Itinerary planning

► Bookable cruises, incl.

Flights

► Ship capacities

► Available sales

channels

► Prize-sales curves

► Strategic goals

from Corporation

► Deployment- and

price range

► Customer

requirements

► Embarking

guests

► On-board

revenue offers

► MyAIDA

communication

► Booking status/

Customer deposits

► Pre cruise on-board

revenue

► Ship’s manifest

► Ready to travel guests

Strategy – to – Product (S2P)

Fleet development & product developmentto exploit market potential

Output

Product offer

Input

Strategy

Buying – to – Customer Satisfaction (B2C)

Fulfilment of product promise &exceeding guest expectation on-board

Output

Customer satisfaction

Input

Decision

to buy

Product – to – Buying (P2B)

Generation of customer demand &sale of lower berth capacities

Output

Decision

to Buy

Input

Product

offer

► Itinerary planning

► Bookable cruises,

incl. Flights

► Tariffs

► Price-volume

strategies

► Finished cruises

► Realized post-cruise

services

► NPS, claims &

complaints

► Increased customer

loyalty


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BrandBrand

Until 2014

Shareholder

Brand

BrandBrand

since 2015

Shareholder

Brand

Shared Services

Procurement

IT

HR

Marine Operations

Strategic Development

Digital

…

…

▪ “Full-profile Organization”

▪ Vertical value chain

▪ Bottom-line responsibility at brand level including direct cost ownership

▪ Shared Services Organization

▪ Increased number of interfaces

▪ More complex value chain

▪ Bottom-line responsibility remains at brand level including indirect cost ownership

VERTRIEB

MARKETING

& eCOM

M.

CUSTOMEREXPE

RIENCE

HOTEL

OPERATION

S

CFO

PRESIDENT

HR / PR

VERTRIEB

MARKETING

& eCOM

M.

CUSTOMEREXPE

RIENCE

HOTEL

OPERATION

S

CFO

PRESIDENT

HR / PR

∑ Operating Income ∑ Operating Income

A matrix organization as basis of financial management


13

Business

Business

Commercial

Analytics

(CA)

So far

Today

CA

▪ (1) Interface between Controlling

and Manager remains untouched

▪ (2) There will be another

interface between the business

and Commercial Analytics

▪ (3) Controlling and Commercial

Analytics stay connected, but

have clear separated roles and

responsibilities

▪ (4) CA will be part of the

planning-, reporting- and

forecasting-Processes to improve

the overall performance

▪ Commercial Analytics are to be

engaged by the business

(1)

(3)(2)(4)

(1)

(3)(2/4)

Controlling

Controlling

Commercial Analytics will enhance the responsibility of the finance function


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Commercial

Analytics

▪ Strong

forecasting and

scenario planning

▪ Creates business

cases and reports

▪ => Fin.

consolidation on

Brand/Group

level, scenario

planning

Accounting ReportingControlling

(FP&A)

▪ Focus is on

standard

reporting

▪ Displays and

analyses actuals

vs. budget

▪ Addresses Brand,

Costa Group and

ABG customers

▪ => Timely &

accurate

reporting,

comments

▪ Focus on

bookkeeping and

process

transactions

▪ Produce and

reconcile

balances

▪ => Timely &

accurate

month/Qtr/Y-E

closing

▪ Data driven

analytics and

decision

support

▪ Operations

focus

▪ Continuous

improvements

▪ Business

partnering

Allocation of tasks between the finance functions


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▪ Forecast- and plan scenarios are created by flexibly combining assumptions about

drivers and effects of measures

▪ Assumptions will be done „middle up“ on BU-level and driver models will be

improved constantly

▪ Main KPIs are derived through simulations using driver models based on actual

data

▪ Focus on objectives and measures to increase quality of planning

Source:Valsight

The financial Management is faced with significant changes – „Leading in

real-time”


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Further development of the financial management at AIDA Cruises

▪ Set up reporting factory (standard reporting)

▪ Qualification program “Commercial Competence”

▪ „1Finance“ (integration Accounting, integration Group, integration Markets)

▪ Intensifying of business partnering / embedded controller

Organization

Tasks

▪ “Reporting is Forecasting” (variance analysis)

▪ 4Q rolling forecasting

▪ Enhance Commercial Analytics (exception reporting)

▪ Driver-based business simulation

Concepts & Tools

▪ Reporting by ship classes

▪ Roll-out BI as business tool

▪ Zero base budgeting

▪ Robotic process automation (RPA) in finance

▪ Hyperion Planning, Hyperion Financial Management, Valsight






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Agenda


Status Quo – the strong business development needs a driver-based long-

term planning

Restructuring

of the

Finance function

Strong business growth

Dynamic environment

Complex business model

Increasing product

differentiation

Excel-based

long-term planning

Historical grown

and complex

models

Time-consuming

and error-prone

adjustments

Limited reporting

capabilities

Influencing factor Planning process

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Forward-looking planning and scenario-based

thinking through creating and comparing of different

combinations of assumptions and measures

Goals Requirements

Improved data quality to enable driver-based

simulations and derivation of relevant key

performance indicators

Increased efficiency through focus on measures

and activities to supporting strategy execution

More agility and transparent reporting of results

and presentation of reconciliations

▪ Driver-based models

▪ Simulations

▪ Integration of data source

▪ Verified data model without manual inputs („stop

using excel“)

▪ State-of-the-art software-solution

▪ Multi-user-capabilitiy

▪ Better reporting functionalities

▪ Visualization and real-time adjustments

2. Mid- & long-term

planning1. Strategy 3. Target Setting

4. Operational

Planning

Goal & Requirements – a driver-based mid- and long-term planning

supports the strategy process


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2017

Jan Feb Mar Apr May JunActivities

Month End Closing

Design & Development

Strategy Meeting

01/27Handover LTP Model (XLS)

02/28

Presentation & Training

Finalization & Rollout

Prototype ready

04/07

Update Long Term Plan

Pil

ot

LT

P

Va

lsig

ht

Str

ate

gic

Pla

n

The AIDA long-term plan prototype was ready within 4 weeks


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Szenario Manager

▪ Flexible and transparent

scenario modeling

Dashboards

▪ Better visualization and

reporting

Value Trees

▪ Transparent and clear

relationships

Source:Valsight

State-of-the-art software-solution for more efficient planning process


22Source:Valsight

Transparent and combinable scenarios

Assumption: fuel price increase

Bundling of different assumptions to scenarios

Flexible simulations and transparent scenarios show cause-effect-

relationships


23Source:Valsight

Visual analyses and dashboards to enable quick comparisons of different

scenarios


Visual value driver trees to enable a focussed discussion and

decision making

24Source:Valsight


Through realization of project goals the mid- and longterm planning is

faster and more efficient

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Benefits

Forward-looking

planning

Goals

Improved data

quality

Increased

efficiency

More

Agility

Requirements

▪ Fast and transparant

presentation of root

cause and impact

▪ High Comparability of

scenarios

▪ Less time-consuming

planning

▪ More efficient planning

discussions

▪ Focus on measures to

support strategy

execution

▪ Driver models

▪ Simulations

▪ Integration of data sources

▪ Verified data model

▪ State-of-the-art software-

solution

▪ Multi-user-capability

▪ Better reportings

▪ Visualization and „Real-

time“


All relevant and legal figures are available in the Annual Report of Carnival Corporation:

www.carnivalcorp.com → Investor Relations → Financial Information: Annual Reporting

Or direct link:

http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-reportsannual

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Closing information

FINANCIAL MANAGEMENT AT AIDA CRUISES -...

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