Final Results

Carnival Corporation & Plc Reports Fourth Quarter Results and Record Full Year 
                                   Earnings 
 
    Carnival Corporation & plc today reports fourth quarter results and record 
full year earnings for the period ended November 30, 2007.  The earnings of 
Carnival Corporation and Carnival plc have been consolidated, and this 
statement includes consolidated results on a U.S. GAAP basis. 
   
    Q4 and Full Year Highlights  
    -- Q4 revenues increased by $315m or 11.2% to $3.1bn versus $2.8bn in the  
       prior year, driven by a 7.5%  increase in cruise capacity and higher  
       cruise revenue yields 
    -- Q4 net revenue yields increased 4.9% compared to the prior year (up  
       1.1% on a constant dollar basis)  
    -- Q4 net income (profit after tax) decreased by $58m or 13.9% to $358m  
      (Q4 2006: net income of $416m) due to significantly higher fuel costs 
    -- Q4 earnings per share (diluted) decreased by $0.07 to $0.44 (Q4 2006:  
       earnings per share (diluted) of $0.51) 
    -- Full year earnings per share (diluted) increased by $0.18 to a record  
       $2.95 (2006: earnings per share (diluted) of $2.77) 
 
 
    2008 Outlook  
    -- Net revenue yields for 2008 are expected to increase 4.5 to 5.5% (up  
       3 to 4% on a constant dollar basis), compared to last year 
    -- Net cruise costs per available lower berth day for 2008 are expected to  
       increase 5.5 to 6.5% (up 4 to 5 % on a constant dollar basis), compared  
       to 2007 
    -- Net cruise costs excluding fuel for 2008 are expected to be flat to  
       down slightly on a constant dollar basis 
    -- Based on the forward curve, higher fuel prices are expected to reduce  
       2008 earnings by $0.50 per share 
    -- Despite significant increases in fuel prices, 2008 earnings per share  
       (diluted) expected to be in the range of $3.10 to $3.30, compared to  
       $2.95 in 2007 
    -- Q1 earnings per share (diluted) expected to be in the range of $0.29 to  
       $0.31 versus $0.35 in Q1 2007  
 
    Chairman and Chief Executive Officer Micky Arison commenting on these 
results: 
    "Our brands enjoyed strong yield growth in our fourth quarter as the 
continued recovery of Caribbean business led to higher yields for our North 
American brands while our European brands were bolstered by the stronger Euro 
and Sterling. However, continually rising fuel costs and the expected higher 
dry-dock costs held back our fourth quarter performance," Arison said.  
    Commenting on the full year results Arison noted, "Our European brands 
enjoyed another record year absorbing substantial new capacity and driving 
significant improvement in unit operating profit. Although operating 
performance for our North American brands was hampered by pricing pressure in 
the Caribbean early in the year, demand for Caribbean cruises strengthened 
considerably as the year progressed and we expect this trend to continue into 
2008. Despite the continuing increases in fuel costs throughout the year, we 
still managed a six percent improvement in earnings over 2006." 
    Commenting on 2008 Arison noted, "Net revenue yields for our North 
American brands are seeing continued improvement based primarily on stronger 
pricing in the Caribbean. Our European brands are also performing well 
absorbing significant new capacity and continuing to benefit from the strong 
Euro and Sterling."  
    "While our North American brands will grow capacity at a moderate rate of 
three percent, our European brands will increase capacity by 22 percent next 
year, including the full year operation of our new Spanish cruise line, Ibero 
Cruises. As we grow our European brands, we will be able to achieve economies 
of scale which will have a favorable impact on our unit costs and 
profitability," he added.   
 
 
 
Carnival Corporation & Plc Reports Fourth Quarter Results and Record Full Year 
                                   Earnings 
 
    MIAMI, Dec. 20 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) 
reported net income for its fourth quarter ended November 30, 2007 of $358 
million, or $0 .44 diluted EPS, compared to net income of $416 million, or $0.51 
diluted EPS, for the fourth quarter 2006. Revenues for the fourth quarter 2007 
increased to $3.1 billion from $2.8 billion for the fourth quarter 2006. 
    The company reported record net income for the full year ended November 
30, 2007 of $2.4 billion, or $2.95 diluted EPS, compared to net income of $2.3 
billion, or $2.77 diluted EPS, for the prior year. Revenues for the full year 
2007 increased to $13.0 billion from $11.8 billion for the prior year.   
    Carnival Corporation & plc Chairman and CEO Micky Arison said that fourth 
quarter results came in at the high end of the company's guidance as stronger 
pricing on close-in bookings was partially offset by higher than expected fuel 
costs. 
    "Our brands enjoyed strong yield growth in our fourth quarter as the 
continued recovery of Caribbean business led to higher yields for our North 
American brands while our European brands were bolstered by the stronger Euro 
and Sterling. However, continually rising fuel costs and the expected higher 
dry-dock costs held back our fourth quarter performance," Arison said.  
    Commenting on the full year results Arison noted, "Our European brands 
enjoyed another record year absorbing substantial new capacity and driving 
significant improvement in unit operating profit. Although operating 
performance for our North American brands was hampered by pricing pressure in 
the Caribbean early in the year, demand for Caribbean cruises strengthened 
considerably as the year progressed and we expect this trend to continue into 
2008. Despite the continuing increases in fuel costs throughout the year, we 
still managed a six percent improvement in earnings over 2006." 
 
    Key metrics for the fourth quarter of 2007 were as follows: 
 
    -- Net revenue yields (net revenue per available lower berth day) for Q4  
       2007 increased 4.9 percent (1.1 percent on a constant dollar basis)  
       compared to the prior year. Gross revenue yields increased 4.4 percent  
       compared to the prior year. 
 
    -- Excluding fuel, net cruise cost per available lower berth day ("ALBD")  
       for Q4 2007 increased 4.2 percent on a constant dollar basis compared  
       to the prior year primarily due to the timing of dry-dock expenses and  
       certain other expenses. 
 
    -- Including fuel, net cruise costs per ALBD increased 12.4 percent (up  
       8.4 percent on a constant dollar basis) compared to the prior year.  
       Gross cruise costs per ALBD increased 9.7 percent compared to the prior  
       year. 
 
    -- Fuel price increased 37 percent to $433 per metric ton for Q4 2007  
       compared to $315 per metric ton in the prior year, and was $9 million  
       higher than the company's previous guidance of $421 per metric ton.  
 
 
    New Initiatives  
    During the fourth quarter, the company took delivery of one new ship, the 
90,000-ton Queen Victoria marking the first time ever that Cunard has had 
three Queens in service.  Last week, Cunard held a spectacular naming ceremony 
in Southampton, England to welcome Queen Victoria before setting off on her 
maiden voyage to Northern Europe. All three Queens will unite for the first 
and only time in a historic event to take place in New York Harbor on January 
13, 2008.  
    Since the fourth quarter began, the company has ordered six new ships, 
five for its European brands and one for its North American brands. The 
company placed orders for two 114,200-ton cruise ships for Costa Cruises to be 
delivered in 2011 and 2012, and two 71,000-ton cruise ships for its AIDA 
Cruises brand scheduled to enter service in 2011 and 2012. The company 
announced the construction of Queen Elizabeth, a 92,000-ton vessel for its 
Cunard brand to enter service in 2010. It also exercised the option for a 
32,000-ton ship for The Yachts of Seabourn to enter service in 2011. 
    The company also recently announced a significant increase in its presence 
in Asia. Encouraged by recent favorable trends, Costa will redeploy a second 
larger vessel to Asia beginning March 2009, more than doubling its capacity in 
the region. 
 
    2008 Outlook  
    Capacity for 2008 will increase by nine percent, primarily driven by five 
new ship deliveries to five of the company's brands during the year.  
    Advance bookings for the first half of 2008 are well ahead of last year in 
terms of both occupancy and pricing, on a cumulative basis.  Advance bookings 
for the second half of 2008 are also shaping up in a similar fashion to the 
first half of the year, although it is still early in the booking process.  
    "Net revenue yields for our North American brands are seeing continued 
improvement based primarily on stronger pricing in the Caribbean. Our European 
brands are also performing well absorbing significant new capacity and 
continuing to benefit from the strong Euro and Sterling," Arison noted.  
    "While our North American brands will grow capacity at a moderate rate of 
three percent, our European brands will increase capacity by 22 percent next 
year, including the full year operation of our new Spanish cruise line, Ibero 
Cruises. As we grow our European brands, we will be able to achieve economies 
of scale which will have a favorable impact on our unit costs and 
profitability," he added.   
    For the full year 2008, the company expects a 4.5 to 5.5 percent 
improvement in net revenue yields assuming current Euro and Sterling exchange 
rates. On a constant dollar basis, net revenue yields are expected to increase 
3 to 4 percent. Net cruise costs excluding fuel for the full year 2008 are 
expected to be flat to down slightly on a constant dollar basis. However, 
based on the forward curve higher fuel prices for full year 2008 are 
forecasted to increase fuel expense by $409 million compared to 2007 which 
will reduce earnings by $0.50 per share. Despite the significant increase in 
fuel prices the company expects full year 2008 earnings per share to be in the 
range of $3.10 to $3.30 versus the $2.95 recorded in full year 2007.    
 
    First Quarter 2008 
    For the first quarter of 2008, net revenue yields are expected to increase 
6.5 to 7.5 percent (4 to 5 percent on a constant dollar basis) driven by the 
improvement in Caribbean pricing and the company's high seasonal exposure to 
Caribbean deployment. Net cruise costs excluding fuel for the first quarter 
2008 are expected to increase approximately 2 percent on a constant dollar 
basis due to the timing of dry-dock and other expenses. Based on the forward 
curve, higher fuel prices for the first quarter 2008 are expected to increase 
fuel expense by $146 million compared to 2007 which will reduce earnings by 
$0.18 per share. As a result, the company expects earnings for the first 
quarter of 2008 to be in the range of $0.29 to $0.31 per share, down from 
$0.35 per share in 2007. 
  
 
 
    Selected Key Forecast Metrics:  
    ------------------------------ 
 
  
                                Full Year 2008           First Quarter 2008    
                                               
                           Current       Constant      Current       Constant      
                           Dollars       Dollars       Dollars       Dollars  
    Change in:                      
    Net revenue yields  4.5 to 5.5%   3.0 to 4.0%    6.5 to 7.5%   4.0 to 5.0%  
    Net cruise cost   
     per ALBD           5.5 to 6.5%   4.0 to 5.0%  12.5 to 13.5% 10.0 to 11.0%  
                                          
  
                                Full Year 2008           First Quarter 2008  
                 
    Fuel price per metric ton        $486                       $484  
    Fuel consumption (metric  
     tons in thousands)             3,270                        798  
    Currency                               
      Euro                     $1.44 to 1 euro            $1.44 to 1 euro  
      Sterling                 $2.02 to 1 pound           $2.02 to 1 pound 
 
 
    The company has scheduled a conference call with analysts at 10:00 a.m. 
EST (15.00 London time) today to discuss its 2007 fourth quarter and full year 
earnings.  This call can be listened to live, and additional information can 
be obtained, via Carnival Corporation & plc's Web site at www.carnivalcorp.com 
and www.carnivalplc.com. 
 
    Carnival Corporation & plc is the largest cruise vacation group in the 
world, with a portfolio of cruise brands in North America, Europe and 
Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess 
Cruises, The Yachts of Seabourn, AIDA Cruises, Costa Cruises, Cunard Line, 
Ibero Cruises, Ocean Village, P&O Cruises and P&O Cruises Australia. 
    Together, these brands operate 85 ships totaling more than 158,000 lower 
berths with 22 new ships scheduled to enter service between April 2008 and May 
2012. Carnival Corporation & plc also operates Holland America Tours and 
Princess Tours, the leading tour companies in Alaska and the Canadian Yukon. 
Traded on both the New York and London Stock Exchanges, Carnival Corporation & 
plc is the only group in the world to be included in both the S&P 500 and the 
FTSE 100 indices. 
 
    Cautionary note concerning factors that may affect future results  
Some of the statements contained in this earnings release are "forward-looking 
statements" that involve risks, uncertainties and assumptions with respect to 
Carnival Corporation & plc, including some statements concerning future 
results, outlook, plans, goals and other events which have not yet occurred.  
These statements are intended to qualify for the safe harbors from liability 
provided by Section 27A of the Securities Act of 1933 and Section 21E of the 
Securities Exchange Act of 1934.  We have tried, whenever possible, to 
identify these statements by using words like "will," "may," "believe," 
"expect," "anticipate," "forecast," "future," "intend," "plan," and "estimate" 
and similar expressions.  Because forward-looking statements involve risks and 
uncertainties, there are many factors that could cause Carnival Corporation & 
plc's actual results, performance or achievements to differ materially from 
those expressed or implied in this earnings release.  Forward-looking 
statements include those statements which may impact the forecasting of 
earnings per share, net revenue yields, booking levels, pricing, occupancy, 
operating, financing and/or tax costs, fuel costs, costs per available lower 
berth day, estimates of ship depreciable lives and residual values, outlook or 
business prospects. These factors include, but are not limited to, the 
following: general economic and business conditions that may adversely impact 
the levels of Carnival Corporation & plc's potential vacationers' 
discretionary income and this group's confidence in the U.S. and other 
economies and, consequently reduce Carnival Corporation & plc's cruise brands' 
net revenue yields; the international political climate, armed conflicts, 
terrorist attacks and threats thereof, availability and pricing of air service 
and other world events, and their impact on the demand for cruises; conditions 
in the cruise and land-based vacation industries, including competition from 
other cruise ship operators and providers of other vacation alternatives and 
over capacity offered by cruise ship and land-based vacation alternatives;  
accidents, adverse weather conditions or natural disasters, such as hurricanes 
and earthquakes and other incidents (including machinery and equipment 
failures or improper operation thereof) which could cause the alteration of 
itineraries or cancellation of a cruise or series of cruises, and the impact 
of the spread of contagious diseases, affecting the health, safety, security 
and/or vacation satisfaction of passengers; adverse publicity concerning the 
cruise industry in general, or Carnival Corporation & plc in particular, could 
impact the demand for Carnival Corporation & plc's cruises; lack of acceptance 
of new itineraries, products and services by Carnival Corporation & plc's 
guests; changing consumer preferences, which may, among other things, 
adversely impact the demand for cruises; the impact of changes in and 
compliance with laws and regulations relating to environmental, health, 
safety, security, tax and other regulatory regimes under which Carnival 
Corporation & plc operate, including the implementation of U.S. regulations 
requiring U.S. citizens to obtain passports for sea travel to or from 
additional foreign destinations; the impact of changes in operating and 
financing costs, including changes in foreign currency exchange rates and 
interest rates and fuel, food, insurance, payroll and security costs; the 
ability of Carnival Corporation & plc to implement its shipbuilding programs, 
including purchasing ships for our North American cruise brands from European 
shipyards on terms that are favorable or consistent with Carnival Corporation 
& plc's expectations; Carnival Corporation & plc's ability to implement its 
brand strategies and to continue to operate and expand its business 
internationally; Carnival Corporation & plc's future operating cash flow may 
not be sufficient to fund future obligations and Carnival Corporation & plc 
may not be able to obtain financing, if necessary, on terms that are favorable 
or consistent with its expectations;  Carnival Corporation & plc's ability to 
attract and retain qualified shipboard crew and maintain good relations with 
employee unions; continuing financial viability of Carnival Corporation & 
plc's travel agent distribution system and air service providers; the impact 
of Carnival Corporation & plc self-insuring against various risks and its 
inability to obtain insurance for certain risks at reasonable rates; 
disruptions and other impairments to Carnival Corporation & plc's information 
technology networks; lack of continued availability of attractive port 
destinations; risks associated with the DLC structure, including the 
uncertainty of its tax status; the impact of pending or threatened litigation; 
and Carnival Corporation & plc's ability to successfully implement cost 
reduction plans. Forward-looking statements should not be relied upon as a 
prediction of actual results.  Subject to any continuing obligations under 
applicable law or any relevant listing rules, Carnival Corporation & plc 
expressly disclaim any obligation to disseminate, after the date of this 
release, any updates or revisions to any such forward-looking statements to 
reflect any change in expectations or events, conditions or circumstances on 
which any such statements are based. 
 
 
 
                          CARNIVAL CORPORATION & PLC 
                    CONSOLIDATED STATEMENTS OF OPERATIONS 
                                          
                                   Three Months Ended,  Twelve Months Ended,  
                                      November 30,           November 30,  
                                   -------------------  -------------------- 
                                   2007       2006       2007       2006  
                                  ------     ------     ------     ------  
                                     (in millions, except per share data)      
   
    Revenues                        
      Cruise                        
        Passenger tickets         $2,355     $2,079     $9,792     $8,903  
        Onboard and other            726        666      2,846      2,514  
      Other                           43         64        395        422  
                                  ------     ------     ------     ------  
                                   3,124      2,809     13,033     11,839  
                                  ------     ------     ------     ------  
  
    Costs and Expenses                    
      Operating                           
        Cruise Commissions,   
         transportation and   
         other                       448        398      1,941      1,749  
          Onboard and other          129        127        495        453  
          Payroll and related        360        304      1,336 (1)  1,158  
          Fuel                       334        228      1,096        935  
          Food                       191        165        747        644  
          Other ship operating       488        403      1,717      1,538 
                                          
        Other                         35         55        296        314  
                                  ------     ------     ------     ------  
        Total                      1,985      1,680      7,628      6,791  
      Selling and   
       administrative                426        392      1,579      1,447 
                                          
      Depreciation and   
       amortization                  290        261      1,101        988  
                                  ------     ------     ------     ------  
                                   2,701      2,333     10,308      9,226  
                                  ------     ------     ------     ------  
      
    Operating Income                 423        476      2,725      2,613  
                                  ------     ------     ------     ------  
      
    Nonoperating (Expense) Income         
      Interest income                 20          8         67         25  
      Interest expense, net of   
       capitalized interest          (94)       (80)      (367)      (312)  
      Other (expense) income, net     (1)         9         (1)        (8)  
                                  ------     ------     ------     ------  
                                          
                                     (75)       (63)      (301)      (295)  
                                  ------     ------     ------     ------       
    Income Before Income Taxes       348        413      2,424      2,318  
      
    Income Tax Benefit   
     (Expense), Net                   10          3        (16)       (39)  
                                  ------     ------     ------     ------       
    Net Income                      $358       $416     $2,408     $2,279  
                                  ======     ======     ======     ======  
      
    Earnings Per Share                    
      Basic                        $0.45      $0.53      $3.04      $2.85  
                                  ======     ======     ======     ======  
      Diluted                      $0.44      $0.51      $2.95      $2.77  
                                  ======     ======     ======     ======  
      
    Dividends Per Share            $0.40     $0.275     $1.375     $1.025  
                                  ======     ======     ======     ======       
    Weighted-Average Shares   
     Outstanding - Basic             790        793        793        801  
                                  ======     ======     ======     ======  
    Weighted-Average Shares   
     Outstanding - Diluted           825        828        828        836  
                                  ======     ======     ======     ======  
  
    (1) Includes a $20 million expense related to the British Merchant Navy   
        Officers Pension Fund contribution.  
  
  
  
                          CARNIVAL CORPORATION & PLC  
                         CONSOLIDATED BALANCE SHEETS  
  
                                                                              
                                                       November 30,    
                                                 -----------------------       
                                                   2007           2006    
                                                 --------       --------  
                                              (in millions, except par values)  
                           
  
    ASSETS                                                    
    Current Assets                                            
      Cash and cash equivalents                      $943         $1,163  
      Trade and other receivables, net                436            280  
      Inventories                                     331            263  
      Prepaid expenses and other                      266            289  
                                                 --------       --------  
        Total current assets                        1,976          1,995  
                                                 --------       --------  
      
    Property and Equipment, Net                    26,639         23,458  
      
    Goodwill                                        3,610          3,313  
      
    Trademarks                                      1,393          1,321  
      
    Other Assets                                      563            465  
                                                 --------       --------  
                                                  $34,181        $30,552  
                                                 ========       ========  
      
    LIABILITIES AND SHAREHOLDERS' EQUITY                      
    Current Liabilities                                       
      Short-term borrowings                          $115           $438  
      Current portion of long-term debt             1,028          1,054  
      Convertible debt subject to current put   
       options                                      1,396                 
      Accounts payable                                561            438  
      Accrued liabilities and other                 1,353          1,149  
      Customer deposits                             2,807          2,336  
                                                 --------       --------  
        Total current liabilities                   7,260          5,415  
                                                  -------        -------  
      
    Long-Term Debt                                  6,313          6,355  
      
    Other Long-Term Liabilities and  
     Deferred Income                                  645            572  
      
    Shareholders' Equity                                      
      Common stock of Carnival Corporation;   
       $0.01 par value; 1,960 shares authorized;   
       643 shares at 2007 and 641 shares at 2006   
       issued                                           6              6  
      Ordinary shares of Carnival plc;   
       $1.66 par value; 226 shares authorized;   
       213 shares at 2007 and 2006 issued             354            354  
      Additional paid-in capital                    7,599          7,479  
      Retained earnings                            12,921         11,600  
      Accumulated other comprehensive income        1,296            661  
      Treasury stock; 19 shares at 2007 and   
       18 shares at 2006 of Carnival Corporation   
       and 50 shares at 2007 and 42 shares at  
       2006 of Carnival plc, at cost               (2,213)        (1,890)  
                                                 --------       --------  
        Total shareholders' equity                 19,963         18,210  
                                                 --------       --------  
                                                  $34,181        $30,552  
                                                 ========       ========  
            
  
  
                          CARNIVAL CORPORATION & PLC  
                             SELECTED INFORMATION  
  
                                   Three Months Ended,  Twelve Months Ended,  
                                      November 30,           November 30,  
                                   -------------------  -------------------- 
                                   2007       2006       2007       2006  
                                  ------     ------     ------     ------  
                               (in millions, except statistical information)   
  
    STATISTICAL INFORMATION         
      Passengers carried   
       (in thousands)              1,888      1,748      7,672      7,008 (1)  
 
      Occupancy percentage         103.2%     103.4%     105.6%     106.0% (2)  
      Fuel cost per metric ton (3)  $433       $315       $361       $334  
      
    CASH FLOW INFORMATION                 
      Cash from operations          $857       $805     $4,069     $3,633  
      Capital expenditures          $936       $298     $3,312     $2,480  
      Dividends paid                $277       $198      $ 990       $803  
      
    SEGMENT INFORMATION                   
      Revenues                            
        Cruise                    $3,081     $2,745    $12,638    $11,417  
        Other                         85         83        553        533  
        Intersegment elimination     (42)       (19)      (158)      (111)  
                                  ------     ------     ------     ------  
                                  $3,124     $2,809    $13,033    $11,839  
                                  ======     ======     ======     ======  
      
      Operating expenses                  
        Cruise                    $1,950     $1,625     $7,332     $6,477  
        Other                         77         74        454        425  
        Intersegment elimination     (42)       (19)      (158)      (111)  
                                  ------     ------     ------     ------  
                                  $1,985     $1,680     $7,628     $6,791  
                                  ======     ======     ======     ======  
      
      Selling and administrative   
       expenses                           
        Cruise                      $418       $383     $1,547     $1,405  
        Other                          8          9         32         42  
                                  ------     ------     ------     ------  
                                    $426       $392     $1,579     $1,447  
                                  ======     ======     ======     ======  
      
      Depreciation and  
       amortization       
        Cruise                      $280       $252     $1,065       $954  
        Other                         10          9         36         34  
                                  ------     ------     ------     ------  
                                    $290       $261     $1,101       $988  
                                  ======     ======     ======     ======  
      
      Operating income (loss)             
        Cruise                      $433       $485     $2,694     $2,581   
        Other                        (10)        (9)        31         32  
                                  ------     ------     ------     ------  
                                    $423       $476     $2,725     $2,613  
                                  ======     ======     ======     ======  
  
    (1) Passengers carried in first quarter of 2006 does not include any  
        passengers for the three ships chartered to the Military Sealift  
        Command in connection with the Hurricane Katrina relief efforts.    
    (2) Occupancy percentage in first quarter of 2006 includes the three  
        ships chartered to the Military Sealift Command at 100% occupancy.  
    (3) Fuel cost per metric ton is calculated by dividing the cost of our  
        fuel by the number of metric tons consumed.  
  
  
  
                          CARNIVAL CORPORATION & PLC  
                         NON-GAAP FINANCIAL MEASURES  
  
    Gross and net revenue yields were computed by dividing the gross or net  
revenues, without rounding, by ALBDs as follows:  
 
  
                                   Three Months Ended,  Twelve Months Ended,  
                                      November 30,           November 30,  
                                  -------------------  -------------------- 
                                   2007       2006       2007       2006  
                                  ------     ------     ------     ------  
                                     (in millions, except ALBDs and yields)  
  
    Cruise revenues                        
      Passenger tickets            $2,355     $2,079     $9,792     $8,903  
      Onboard and other               726        666      2,846      2,514  
                               ---------- ---------- ---------- ----------  
    Gross cruise revenues           3,081      2,745     12,638     11,417  
    Less cruise costs                      
      Commissions, transportation   
       and other                     (448)      (398)    (1,941)    (1,749)  
      Onboard and other              (129)      (127)      (495)      (453)  
                               ---------- ---------- ---------- ----------  
    Net cruise revenues (1)        $2,504     $2,220    $10,202     $9,215  
                               ========== ========== ========== ==========  
      
    ALBDs (2)                  13,794,846 12,828,609 54,132,927 49,945,184  
                               ========== ========== ========== ==========  
      
    Gross revenue yields (1)      $223.42    $213.96    $233.47    $228.58  
                               ========== ========== ========== ==========       
    Net revenue yields (1)        $181.61    $173.09    $188.48    $184.50  
                               ========== ========== ========== ==========  
            
            
  
    Gross and net cruise costs per ALBD were computed by dividing the gross or 
net cruise costs, without rounding, by ALBDs as follows:  
  
 
                                   Three Months Ended,  Twelve Months Ended,  
                                      November 30,           November 30,  
                                  -------------------  -------------------- 
                                   2007       2006       2007       2006  
                                  ------     ------     ------     ------  
                              (in millions, except ALBDs and costs per ALBD)  
  
    Cruise operating expenses      $1,950     $1,625     $7,332     $6,477  
    Cruise selling and   
     administrative expenses          418        383      1,547      1,405  
                               ---------- ---------- ---------- ----------  
    Gross cruise costs              2,368      2,008      8,879      7,882  
    Less cruise costs included   
     in net cruise revenues                 
      Commissions,  
       transportation and other      (448)      (398)    (1,941)    (1,749)  
      Onboard and other              (129)      (127)      (495)      (453)  
                               ---------- ---------- ---------- ----------  
    Net cruise costs (1)           $1,791     $1,483     $6,443     $5,680  
                               ========== ========== ========== ==========  
      
    ALBDs (2)                  13,794,846 12,828,609 54,132,927 49,945,184  
                               ========== ========== ========== ==========  
      
    Gross cruise costs   
     per ALBD (1)                 $171.69    $156.44    $164.02    $157.81  
                               ========== ========== ========== ==========  
      
    Net cruise costs   
     per ALBD (1)                 $129.88    $115.57    $119.03    $113.73  
                               ========== ========== ========== ==========  
       
  
    NOTES TO NON-GAAP FINANCIAL MEASURES 
    (1) We use net cruise revenues per ALBD ("net revenue yields") and net  
        cruise costs per ALBD as significant non-GAAP financial measures of  
        our cruise segment financial performance.  We believe that net revenue  
        yields are commonly used in the cruise industry to measure a company's  
        cruise segment revenue performance. This measure is also used for  
        revenue management purposes.  In calculating net revenue yields, we  
        use "net cruise revenues" rather than "gross cruise revenues."  We  
        believe that net cruise revenues is a more meaningful measure in  
        determining revenue yield than gross cruise revenues because it  
        reflects the cruise revenues earned by us net of our most significant  
        variable costs, which are travel agent commissions, cost of air  
        transportation and certain other variable direct costs associated with  
        onboard and other revenues.  Substantially all of our remaining cruise  
        costs are largely fixed once our ship capacity levels have been  
        determined, except for the impact of changing prices. 
 
        Net cruise costs per ALBD is the most significant measure we use to  
        monitor our ability to control our cruise segment costs rather than  
        gross cruise costs per ALBD.  In calculating net cruise costs, we  
        exclude the same variable costs that are included in the calculation  
        of net cruise revenues. This is done to avoid duplicating these  
        variable costs in these two non-GAAP financial measures.   
 
        We have not provided estimates of future gross revenue yields or  
        future gross cruise costs per ALBD because the reconciliations of  
        forecasted net cruise revenues to forecasted gross cruise revenues or  
        forecasted net cruise costs to forecasted cruise operating expenses  
        would require us to forecast, with reasonable accuracy, the amount of  
        air and other transportation costs that our forecasted cruise  
        passengers would elect to purchase from us (the "air/sea mix").  Since  
        the forecasting of future air/sea mix involves several significant  
        variables that are relatively difficult to forecast and the revenues  
        from the sale of air and other transportation approximate the costs of  
        providing that transportation, management focuses primarily on  
        forecasts of net cruise revenues and costs rather than gross cruise  
        revenues and costs.  This does not impact, in any material respect,  
        our ability to forecast our future results, as any variation in the  
        air/sea mix has no material impact on our forecasted net cruise  
        revenues or forecasted net cruise costs. As such, management does not  
        believe that this reconciling information would be meaningful.  
 
        In addition, because a significant portion of Carnival Corporation &  
        plc's operations utilize the Euro or Sterling to measure their results  
        and financial condition, the translation of those operations to our  
        U.S. dollar reporting currency results in increases in reported U.S.  
        dollar revenues and expenses if the U.S. dollar weakens against these  
        foreign currencies, and decreases in reported U.S. dollar revenues and  
        expenses if the U.S. dollar strengthens against these foreign  
        currencies.  Accordingly, we also monitor these two non-GAAP financial  
        measures assuming the current period currency exchange rates have  
        remained constant with the prior year's comparable period rates, or on  
        a "constant dollar basis," in order to remove the impact of changes in  
        exchange rates on our non-U.S. dollar cruise operations. We believe  
        that this is a useful measure indicating the actual growth of our  
        operations in a fluctuating currency exchange rate environment.  On a  
        constant dollar basis, net cruise revenues and net cruise costs would  
        be $2.41 billion and $1.73 billion for the three months ended November  
        30, 2007 and $9.92 billion and $6.26 billion for the twelve months  
        ended November 30, 2007, respectively.  On a constant dollar basis,  
        gross cruise revenues and gross cruise costs would be $2.97 billion  
        and $2.28 billion for the three months ended November 30, 2007 and  
        $12.27 billion and $8.62 billion for the twelve months ended November  
        30, 2007, respectively. In addition, our non-U.S. dollar cruise  
        operations' depreciation and net interest expense were impacted by the  
        changes in exchange rates for the three and twelve months ended  
        November 30, 2007, compared to the prior year's comparable periods.  
 
    (2) Available lower berth days ("ALBDs") is a standard measure of  
        passenger capacity for the period.  It assumes that each cabin we  
        offer for sale accommodates two passengers.  ALBDs are computed by  
        multiplying passenger capacity by revenue-producing ship operating  
        days in the period.    
 
SOURCE  Carnival Plc 
    -0-                             12/20/2007 
    /CONTACT:  Media, US, Tim Gallagher of Carnival Corporation & plc,  
+001-305-599-2600, ext. 16000; or UK, Sophie Fitton or Sophie Brand, both of 
Brunswick Group, 44 (0) 20 7404 5959; or Investor Relations, US and UK, Beth 
Roberts of Carnival Corporation & plc, +001-305-406-4832/ 
    /Web site:  http://www.carnivalcorp.com 
                http://www.carnivalplc.com / 
    (CCL CUK)