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T H E E N T E R P R I S E T R A N S F O R M A T I O NMSC CRUISES 3.0

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Index

Introduction Page 3

Message by Giacomo Costa

Boston Consulting Group in partnership with MSC Cruises Page 5

Lamberto Biscarini, partner BCG (Boston Consulting Group)

Overview on the Enterprise Transformation Page 6

"Quick wins" First innovation examples Page 10

Video Interview - The business transformation team Page 12

Francesco Pugliese and Alfonso Piccirillo

Insights Page 14

Glossary Page 21

Cruise sector Key Performance Indicators (KPls)

A book Page 23

Cruising in Style ed. teNeues

MSC CRUISES 3 .0 - E-NEWSLETTER

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Introductionby Giacomo Costa, Chief Financial Officer MSC Cruises – Geneva

Dear colleagues, We are aware that information technology has become a crucial and strategic sector in our Company’s life. The main projects that are part of the Enterprise Transformation were carefully chosen in order to provide us with increased flexibility and higher standards, leading to enhanced results: Revenue Management, the new Unified European Contact Center and extended CRM, the IT transformation, the E-commerce platform.

The IT department has always been considered a provider of services for other departments, now it is time for it to change and become a provider of solutions to support MSC growth through higher eff iciency and, most of all, higher effectiveness upon delivering the right tools & systems.

In almost ten years MSC Cruises launched a new ship every year. I am wondering which company has ever managed a similar and spectacular increase in its business. However, today the Company needs to focus its attention on consolidation, process innovation and IT as drivers to success.

The four main projects are proceeding and there will be more coming up. Managing the transformation is a constant challenge, therefore the Business Transformation Team (Luca Pronzati, Alfonso Piccirillo and Francesco Pugliese) together with a Deloitte team, aims to guarantee f lawless startup to new initiatives and prompt business decisions.

Furthermore, another essential step in order to guarantee the success of the Enterprise Transformation is to channel all different requests for process innovation into a single entry point instead of overwhelming the IT department with a number of requests which sometimes are not even clear and detailed enough. Therefore, the Business

Transformation Team has the goal of guiding the requests of the departments concerning starting projects, assigning priorities to the initiatives and avoiding effort duplication on the same issues.

Our consultants are Deloitte and BCG (Boston Consulting Group). Deloitte is responsible for the Unified European Contact Center and extended CRM, the E-commerce, the Business Intelligence and the three streams supporting MSC Cruises: IT Transformation, Business Transformation and Program Governance. BCG is in charge of the Revenue Management activities, also working on the New Pricing Structure, a new Commissioning model, def ining the consequent actions in terms of processes and IT evolution. The two consulting f irms need to act in a coordinated manner together with MSC Cruises in order to provide the highest possible effectiveness.

MSC Cruises needs to properly address the web revolution. We cannot stay behind our competitors. Therefore we must be on the edge of technology. Often people choose the cruise and services that they judge to have the best value for money, so our prices must be dynamic, adapting to market conditions. Our commercial policies need to be increasingly centralized and coherent. While our annual brochure is our company presentation tool, our prices need to be f lexible during the whole year, adapting to contingent conditions and opportunities. We must be able to take advantage from a dynamic pricing approach.

The MSC 3.0 Enterprise Transformation Program is in the end an extremely demanding challenge for all of us and it requires a real and serious collaboration among departments, fair interaction and information sharing among off ices. Each department of our Company is part of a chain, being at the same time the client and the

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supplier of information and activities towards other departments: as a complex organism, we must remember that only if we are united we can create value.

The Company has invested important resources on this program because we consider the success of it our business priority. In this sense the MSC 3.0 Enterprise Transformation is a holistic

Introductionby Giacomo Costa, Chief Financial Officer MSC Cruises – Geneva

program for our whole organization, involving IT and business departments towards a shared target, a real turning point for our Company.

I am sure we will succeed, if we stay all together.

Giacomo CostaChief Financial Off icerMSC Cruises – Geneva

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MSC CRUISES 3 .0 - E-NEWSLETTER

(“RM”) departments in the world and develop sustainable competitive advantage. To perform this two-year RM transformation we are working as a single team with Luigi De Filippo and his Revenue Management Team in Naples on several work-streams including a comprehensive understanding of MSC customers (based on a Consumer Research run on 12,000 European consumers), the development of a new pricing structure and the definition of new commission logics and schemes. The objective is to start introducing and testing most of these new concepts in 2013, with the final goal to have them fully implemented in Summer 2014.

BCG is proud to be the partner of MSC Cruises in this RM transformation process that involves all MSC Cruises core departments: Revenue Management, Sales, Marketing, Operations, HR. The challenge is to become the benchmark in the Travel and Tourism industry for Revenue Management logics, organization and IT systems.

Let's reshape MSC future, together.

Lamberto Biscarini Partner BCG

MSC Cruises is the fastest growing cruising company worldwide. Over the last ten years the company has achieved an astonishing market share position in Europe and Latin America and it has created strongholds in North America and South Africa. Time has now come to consolidate and secure its core commercial processes, and in particular its Revenue Management logics and processes in Europe, a critical lever to support the Company's profitability.

The challenge is significant: Europe owns the complexity of multiple sourcing markets and market conditions are becoming tougher because of the economic crisis, thus reshaping consumer behaviors and their willingness to pay for travel and tourism.

MSC Cruises asked The Boston Consulting Group (BCG) for support on this with two-year Revenue Management transformation. BCG is a world leading management consulting firm with 77 offices in 42 countries, with specific experience in the cruising industry and in revenue management in multiple sectors.Our objective is to help MSC Cruises create one of the leading Revenue Management

Boston Consulting Groupin partnershipwith MSC Cruises

Lamberto Biscarini, partner BCG (Boston Consulting Group)

A) E-commerce

Overview on theEnterprise Transformation

The ProjecT The new E-commerce platform aims to create a single, powerful system which allows the central management of all proprietary selling channels. This will streamline MSC’s web strategy into selling channels dedicated to consumers (B2C1), travel agencies (B2B2) and our contact center3 agents. Thus we’ll be able to deliver our offers across many channels, providing a highly personalized and comprehensive cruise product.

NewsThe new E-commerce design and planning phase is approaching completion. As it would happen for a construction, this means that the main building blocks are being defined, such as the scope4 and method of the implementation, the planning, information systems supporting the solution, the way they will relate to the overall MSC IT processes and architecture. Furthermore, responsibilities of MSC Business and IT Departments and of external vendors are defined in order to ensure good functioning of the project organization.

1B2C: Business to Consumer is the selling channel dedicated to Final Guest2B2B: Business to Business, is the selling channel dedicated to travel agencies which sell to either passengers or to groups3Contact Center: MSC directly answers over the phone and other channels (i.e. emails fax, chart, others…) to requests in local language coming either from travel agencies or passengers4Scope: is the logical area of capabilities covered by the project, i.e. what is included in the project and what is not

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B) Unified European Contact Center (UECC) with the Extended Customer RelationshipManagement (CRM)

MSC CRUISES 3 .0 - E-NEWSLETTER

The ProjecT The creation of the Unified European Contact Center (UECC)5 will make local contact centers work as one, supported by common processes, procedures and information systems. Harmonized service and customer experience will be provided to all our customers and partners in all European Countries. To support this complex interaction and in order to track service requests and corresponding answers at any point in time, power ful technical infrastructures will be implemented Computer-Telephony-Integration (CTI) and Extended Customer Relationship Management6 to allow offering “a first in class” Customer Experience cross-channels to both guest and business partners.

NewsThe Functional Design, defining the “operating model” TO BE7 has been completed, and we are now focused to bring forward the implementation phase, officially started at the end of February.

As in all major transformations, the go live of the solution is planned with a progressive, incremental approach. The new computer-telephony inter face (CTI) and the new CRM solution, together with the supporting processes will be rolled out progressively in the different EU countries. Our Reservation Teams will therefore start working with the new solution, allowing tracking, management and control of service requests submitted via email, phone and fax and other channels that will be deployed during this year and the next.

5UECC: Unified European Contact Center: MSC will ensure contact center response in Europe through local units acting « as one »6New CRM: The new information system supporting in a single way Customer Relationship Management across countries, which is the basis for UECC activities7AS IS and TO BE are def initions used in project management to describe the present state of the situation the project is based on (“as is”) , and the future state the project targets (“to be”)

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Overview on theEnterprise Transformation

C) Revenue ManagementThe ProjecT Our aim is to develop the highest effective r evenue management methods and infrastructure. We want to pinpoint our selling potential towards all customer segments, and correspondingly ensure a correct reward to our selling partners through the best-fitting commissioning program. This project includes an organizational change and the setup of an information system solution which will allow MSC Cruises to manage market demand forecasting and commissioning, catalogues and pricing, by influencing our selling capabilities.

NewsActivities of the Revenue Management are ongoing across three key work streams: Logics, Organization and IT.The first achievement will be a new pricing structure, based on a new logics, to be released soon. Fur ther, we are developing a competitive intelligence tool8 which will allow pricing comparison (i.e. per itinerary and sourcing market) against MSC Cruises key competitors,

to help liners9 in their daily pricing decision making process.In parallel, we are currently focused to define appropriate Travel Agencies segmentation10 to consequently develop new commission schemes11 that should go live within 2013.Revenue Department Re-Organization as well as IT systems evolutions are also part of the Revenue Management Transformation Program and are expected to be completed in the following months.

8Competitive intelligence tool: information tool which allows gathering information from the competition , using it for intelligence purposes in order to use it business decision making9Liner: Liners at MSC Cruises (also known as revenue analysts at other companies) are responsible for managing the prices and controlling the inventory of individual cruises to ensure maximum ticketing revenue given prevailing market conditions10Segmentation: strategy which allows splitting a broad target into subsets, sharing common needs, behaviors and potential11Commission scheme: strategy which allows rewarding partners (e.g. : Travel Agencies) according to a shared methodology, providing higher incentives for best results in topics with higher business importance

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While the projec t s of the MSC 3 .0 Transformation Program are starting up and will lead us to the f irst phases of the new Unified European Contact Center and the new E-commerce solutions, many other initiatives are ongoing and we can already see several results. Among them we have star ted several “Quick Wins” projects, to better serve all the people - MSC employees, business partners and customers - who daily access MSC Cruises information systems for different purposes.

1. Increased Booking Funnel experience for both Final Guests (B2c) and Travel Agencies (B2B)

“Quick wins”First innovation examples

1.1. Simplify the booking experience for our Final Guest: for consumers directly booking their cruise on our Business-to-Consumer (B2C) website we have enhanced the existing booking flow by working on the graphical aspects, supporting clearer content vision and providing higher usability. For instance, Final Guests who want to purchase a cruise with MSC directly via the website can now see the cabin position on the deck-plan and on the ship silhouette (Please refer to the screenshot below), and in the incoming weeks book the so-called “flat cabins”, available on selected vessels to accommodate up to six guests. At the end of the booking flow, they can now clearly see the recap of the purchased items.

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MSC CRUISES 3 .0 - E-NEWSLETTER

1.2. Easier life for our partners - The Travel AgenciesWe have given high attention to our partner travel agencies, providing enhancements to t he i r da i l y r epea ted and t ime -consuming actions. This has resulted in the improvement of many search, f iltering and sorting functionalities, clearer local language description for excursions and on board services. Fur thermore, they can now use their own internal reference number that is linked to the MSC booking number for each transaction, for easier-to-f ind information. In order to allow Travel Agencies addressing additional Final Guest requirements, we have streamlined the booking f low to facilitate adding items to the “basic” cruise and also allow simultaneous view of price conditions on different departures date.

Please refer to the screenshot below:

12 OBS: on board service such as beverage package, anniversary services, wellness treatments, newspapers, Wi-Fi, etc.13 Bundling: offering a set of different products as a single product14 Booking funnel: booking process, i.e. series of choices made on our website by the person or agent who books a cruise product 15 Pre-payment: payment of booking occurs at the time of payment of booking16 Mandatory item: in a cruise package, an item included in the fixed cruise price, which cannot be changed17 Substitutable item: in a cruise package, an item included in the fixed cruise price, which can be substituted with other items

2. customize the cruise experience. why not investing on Flexibility? Our market is maturing and an increasing number of consumers consider their cruise choice not as an instant, off-the-shelf purchase. More and more customers expect to be able to personalize their experience in order to take the most advantage out of their leisure time. Traveling is an investment to live, and it is a must for us to remember that each moment is precious to our client. Passengers may want to decide about the cruise itinerary first and then come back to us and select “add-ons” such as parking, excursion or other OBS12, from MSC information systems have been enhanced to provide higher flexibility

to our counterparts through the implementat ion of bundling13 functionalities during the different steps of the booking funnel14. This improvement also allows to book and prepay15 extra services, thus increasing book ing management flexibility. Finally, the system will allow to get a clearer view on pricing for mandatory16 items and substitutable items17 to both final guests and travel agencies.

VIdEO

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Francesco Pugliese (Corporate Internal Audit) and Alfonso Piccirillo (Corporate Group Controller) are part of the Business Transformation (“BT”), the Team coordinated by Luca Pronzati in charge of driving the Change within the MSC 3.0 Enterprise Transformation Program.

Francesco Pugliese and Alfonso Piccirillo

They present us the key role of the Business Transformation Team which is focused on filtering, analysing, prioritizing and harmonizing the new initiatives of the different projects of the MSC 3.0. program. They will also share with us their vision and expectations for the future of our Company.

Interviewto Francesco Pugliese and Alfonso Piccirillo

The BusINess TrANsFormATIoN TeAm

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MSC CRUISES 3 .0 - E-NEWSLETTER

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1) Ms. Tarricone, would you like to introduce yourself? Your background, your arrival at MSC Cruises… I joined MSC Cruises in November 2012 as a Communication, Knowledge Management and Process Standardization Manager after about 6 years’ experiences in Accenture, a multinational consulting company. In Accenture I worked on a number of projects for different market leaders’ clients in a various industries such as Products, Communication and High Tech and Public Services. The f il rouge between all the projects I worked on is certainly their core on CRM (Customer Relationship Management), with par ticular focus on integration with Contact Center platforms.

Why MSC? Firstly because I like challenges and I like to test myself. MSC has an international prof ile, is experiencing a period of deep and radical changes and it’s a tremendous opportunity to contribute and be an active part of it, moreover my new role allows me to actively take part in this startup phase and to design and improve constantly our company after the project go live.

2) What is The Unified European Contact Center (UECC)? Why are we implementing it? The UECC is one of the streams of the global transformation program MSC 3.0 star ted in July 2012. The goal of this ambitious and challenging project is the unif ication of all eleven contact center MSC throughout Europe in a single virtual and multi-channel Contact Center (during the 2013 we will able to manage phone mail and fax and in the 2014 we will launch chat and co-browsing channels). In this way we will significantly increase both the eff iciency of our Reservation Agents’18 practices and the effectiveness of the clients management procedures (Travel Agency and Final Guest). The creation of the Unified European Contact Center is characterized by two main challenges, technological and organizational. The technological change will be provided through the implementation of a CTI (Computer Telephony Integration)

InsightsThe uNIFIed euroPeAN coNTAcT ceNTer (uecc).INTervIew wITh sIlvIA TArrIcoNe - commuNIcATIoN, KNowledGe mANAGemeNT & Process sTANdArdIzATIoN mANAGer

18 Reservation Agents (also Res Agents or RAs): operators working on our contact centers, offering front off ice response to individual passengers as well as to travel agencies

19 Contact Reason: identifies the reason why the customer is getting in touch with MSC (i.e. to book a cruise, to manage an existing booking, to collect information, etc.

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MSC CRUISES 3 .0 - E-NEWSLETTER

platform that, thanks to a routing model, will guide our customers during the selection of the service more fitting to their requests. It will also allow routing the client request to the best available agent selected on the basis of the language preferred by the client and the skill of the RAs, according to a single overflow logic within MSC European Contact Centers. The effectiveness of the CTI platform will be amplif ied by its integration with the CRM platform. Through this platform, our RAs will be able to track the caller’s contact reasons19 responding to the question: why the customer contacts MSC?. At the same time we will also be able to build a detailed customer profile thanks to all the useful information gathered during the interaction with our customers; we can structure this information improving and deepening the insights of our customer. The technological and organizational changes will be the input for the review and the standardization of processes of the new Unif ied European Contact Center, that will ensure high operational standards for all the countries involved, raising the quality of the service we provide. To get an overall feeling about the new integration between CTI and CRM platforms, please find below an illustrative mockup representing the visualization of Res Agents’ screen for any given incoming call:

3) When will it be operational? The Unified European Contact Center will go live country by country starting this Summer; the rollout plan in all European countries will be completed by the end of this year.

4) How is the Enterprise Transformation Program contributing to this project? The Enterprise Transformation Program plays a key role for the UECC project, because it has opened the way for a revolution and evolution of MSC business model, through a technological evolution of the platforms which allow the company to move on the same level of our main competitors and improving the quality of

the service we offer to the cus tomer s and agencies which contact us. MSC 3.0 is contributing to change the corporate mindset: we are establishing new techniques for acquisition and retention of our customers, we are planning to work all in the same way, to ensure the same cus tomer experience regardless from the channel chosen by the customer and the country of origin, and we are more than ever focused to make this customer experience unique and unforgettable.

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The Number of Incoming Calls is one of the parameters used for the Contact Center organization management. Based on this parameters the Contact Center Managers can efficently organize the Reservation Agents workshifts in order to improve the Contact Center performance reducing the AB Rate20.

InsightscoNTrol uNIT - msc dAIlY INcomING cAll curve

The two graphs below illustrate the daily trend of the Contact Center Incoming calls split per hour; this trend is signif icantly different if we compare the B2B21 and B2C22 channels this mainly due to the different behavior between Travel Agents and Final Guests.

The first graph illustrates the incoming calls for the B2B channel.

The second graph illustrates the incoming calls for the B2C channel

20 AB Rate: stands for the percentage of the abandoned, not answered calls, calculated on the total incoming calls received21 B2B: stands for Business to Business: channel dedicated to our Travel Agency22 B2C: stands for Business to Consumer: channel dedicated to our Final Guests

MSC CRUISES 3 .0 - E-NEWSLETTER

The Activity Tracking Tool resultsThe Activity Tracking is the tool that will be used by our Reservation Agents in order to track all the customer requests managed by the ContactCenter (via phone, mail and fax). During the customer interaction the ResAgent will be able

The two graphs below provide a drill down of the contact reasons split per customer type B2C (Final Guests) and B2B (Travel Agency).

to fill in the info related to the Customer type (Travel Agency or Final Guest) and the contact reason (i.e. booking; MSC Online support; MSC Club; etc).This tool is very useful to understand the quality interaction and it will be totally automated with the new CRM platform.

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On december 14th 2012, the Contract Management Tool has been delivered. All contracts between MSC Cruises and travel agents are now electronically archived covering the previous gap, when most agreements were not formalized, thus increasing the risk of legal claims, credit collection issues, etc. Fur ther, such an implementation has achieved another crucial goal: having a consistent legal control of general terms and conditions which are in place on the different EU markets, also thanks to a centralized storage.

Alessandra Rossi de Rubeis, member of the Corporate Commercial Team who has been in charge of the project, summarizes the project objectives as follows: We needed to have a written contract with each travel agent signed by MSC Geneva SA in order to reduce the number of legal arguments and claims and create a clear commercial framework and credit policy with each travel agent. We have redesigned the entire f low of the retail agreement to ensure that all the agreed conditions were shared and agreed by each travel agent. Over 50’000 active travel agents across twelve EU countries are involved in this project. Now, thanks to Andrea Pappalardo, the Corporate Lawyer in Geneva, the standardization process of the contracts has been completed.

How is the new retail agreement flow? We have created a standard corporate template for the Retail Agreement, in two different languages. The agreement consists of three par ts: the body, which will be automatically renewed, general terms and conditions and, f inally, the web policy. The commercial annex includes the commission

policy related to each specific canvas and the related payment conditions, both of them discussed and agreed with each Country Manager.

Which are the pros MSC will achieve by implementing this innovative tool? We want to opt imize processes and reduce costs. Thanks to the new Contract Management Tool the Company will save printing and delivery costs, reduce litigation risks and complexity in multiple-location and multiple-responsibility contract handling. No manual work is now required to store the contracts. We are now able to monitor the status of the acceptance of the contract by the travel agencies (viewed/par tially agreed/signed). Last but not least, we have a centralized contract repository that gives us an efficient search capability.

Which are the next steps to complete the project? The tool is live since December 14th as planned, starting with Germany as the pilot market. All countries are informed and working on the localization of the tool, which means providing translations and complete the list of agencies to be loaded into the system. Germany, Switzerland, the Netherlands, Italy, Ireland, Spain already completed all operations to use the tool and they are monitoring the acceptance by travel agents. All other offices are currently f inalizing the “localization process”.

mArKeTING AuTomATIoN

Marketing Automation introduces a new tool supporting our business goals. Following a pilot period in Germany, MSC Cruises has finally launched the Marketing Automation roll-out.

InsightscoNTrAcT mANAGemeNT Tool

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MSC CRUISES 3 .0 - E-NEWSLETTER

23direct Marketing: Marketing strategy allowing a company to directly communicate with f inal consumers providing specific, dedicated contents to selected targets. This allows to increase the redemption of marketing actions.

Our strategy is to increase the capability of the Company to manage direct Marketing23 mechanics based on engagement rules instead of contact lists. MSC Cruises enhances its capability to monitor Direct Marketing activities planning and results, to segment the customer base and define specific messages to specific targets. Now the Company can build a contact history of our customers and introduce the usage of predictive models to reach selected contacts.

After Germany and France, we are now releasing the Marketing Automation tool in Italy, Spain and UK. All other markets will follow in the next months.

Marketing Automation applies to all Direct Marketing activities addressed to identif ied individuals who belong to our Customers and Prospects base. All markets worldwide will have access to Marketing Automation with no limits.

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Insightse-TIcKeTING Now lIve worldwIde!

At the beginning of February we completed the implementation of the new in-house e-ticketing solution worldwide.The goal of the project was to reduce the considerable amount of costs (around €2 million yearly cost for both Rotomail and DHL) charged for the paper booklets by streamlining the ticketing process, also considering the consumer’s increased orientation towards new communication web-based tools and paperless documents, along with the common practice chosen by our main competitors. The new e-ticket, directly issued by our reservation system has replaced all existing PDF paperless templates as well as the paper booklets produced by our printing vendor Rotomail and sent to travel agencies and to embarkation ports. Besides the clear cost optimization, the new e-ticket has the following main strengths:

¡ it is faster since it can be processed in a few seconds

¡ it is easy as it can be emailed quickly to travel agents or passengers

¡ it is more flexible since, in case of modifications, add-on packages, cancellations and other last minute changes, MSC Cruises can more easily track down consumers to inform them and re-issue the e-ticket if needed

¡ it is safer as all tickets are held electronically; paper booklets will no longer get lost anymore

¡ it is smart and convenient as it includes printable paper luggage labels easy to use (with 2 simple steps, consumers can fold and staple/tape securely the label to their luggage)

¡ i t is green : using e-tickets is a more environmental friendly approach.

The project was launched back in April 2012 via the pilot country (Switzerland), and the roll out in all countries has been completed last month, within the established deadlines, thanks to the great effort of the IT and Ticketing Teams in Naples, and to the active cooperation of all Countries

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MSC CRUISES 3 .0 - E-NEWSLETTER

GlossarycruIse secTor KeY PerFormANce INdIcATors (KPIs)

Useful terminology and metrics used in Cruise sector to measure performances.

ALBs (Available Lower Berths) defines ship capacity assuming that each cabin we offer for sale accommodates two passengers. It is computed by multiplying ship number of cabin by two.

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 our cruise revenues and expenses to vary. ALBDs assume that each cabin we offer for sale accommodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period.A synonym is APCD (Available Passenger Cruise Days)

LPC (Lower Passenger Cruise) counts carried cruise passengers in double occupancy (two passengers per cabin)A synonym is: LB Pax or LB Carried

TPC (Total Passenger Cruise) counts carried cruise passengers including the ones in excess of two per cabin.A synonym is TB Pax or TB Carried

LPCd (Lower Passenger Cruise days) represent the number of lower passengers carried for the period multiplied by the number of days of their respective cruises.A synonym is LB Paxdays

TPCd (Total Passenger Cruise days) represent the number of total passengers carried for the period multiplied by the number of days of their respective cruises.

A synonym is TB Paxdays

Occupancy LB expresses the loading factor of a cruise ship and it is computed by dividing LPCDs by ALBDs. By def inition it is a percentage between 0% and 100%.A synonym is Load Factor LB

Occupancy TB expresses the loading factor of a cruise ship and it is computed by dividing LPCDs by ALBDs. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.A synonym is Load Factor TB

Net Ticket Revenues represent total ticket revenues less commissions, transportation and other tour operating expenses.

Net Ticket Yields (NTY) represent Net Ticket Revenues per ALBDs.

Net on Board Revenues represent total revenues realized for on board activities less related costs. It includes revenues for on board services realized by selling packages together with the cruise tickets.

Net On Board Yield (NOBY) represents Net on Board Revenues per ALBDs

Net Revenues represent total revenues less commissions, transportation and other expenses and on board and other expenses; in other words it is the combination of Net ticket revenues plus Net on board revenues.

Net Yield represents Net Revenues per ALBDs. We utilize Net Revenues and Net Yields to manage our business on a day-to-day basis as we believe that it is the most relevant way of measuring our pricing performance

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because it reflects the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses and on board and other expenses.

Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing,

selling and administrative expenses.Gross Cruise Costs Yield represent Gross Cruise Costs per ALBDs.

Net per diem (NPd) represent Net Ticket Revenues per LPCD. It is a pure sales oriented KPI which assumes lower berths as typically paying passengers.

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MSC CRUISES 3 .0 - E-NEWSLETTER

CRUISING IN STYLE (ed. teNeues, 2009)In 2009 MSC Cruises, in partnership with the German publishing group teNeues, published an outstanding coffee book about our entire fleet. This attractive volume highlights the amenities enjoyed by our guests aboard our ships. The

A book

sophistication of the photographic shootings of the interiors contributes to the high quality of the publication. “Cruising in Style” is part of a series of coffee books on luxury, among them: “Luxury Hotels Beach Resorts”, “Luxury Hotels Spa & Wellness” and “Luxury Hotels Top of the World”.

cruIsING IN sTYle ed. TeNeues