In early January, Disney Cruise Line’s annual report for fiscal year 2021 was made public. Within the 54-page filing, there is some a strategic report compiled by the directors which discusses the significant impact of the coronavirus pandemic on the cruise line during the industry shutdown. Additionally, there is some insight on new developments such as the fleet expansion and Lighthouse Point.
Before we get into the details, it is worth mentioning The Walt Disney Company released their FY21 earnings report back in November 2021. 2021, this is not a typo. The document was just submitted in December and published in January 2022. Disney Cruise Line is part of the Disney Parks, Experiences and Products division, More often than not, there is very little mention of the cruise line during the quarterly earnings webcast and report. Due to the company’s size, Disney Cruise Line’s financials are bundled in the Disney Parks, Experiences and Products line item leaving little insight into the cruise line’s business. Since, Disney Cruise Line is actually Magical Cruise Company, Limited registered in London, it is required to submit an annual report to the United Kingdom.
Remember, the financial information in the annual report is for FY21 (year ending October 2, 2021), we will get to this eventually. The interesting information, prepared on behalf of the Board dated December 21, 2022 from the strategic report is transcribed below.
Magical Cruise Company, Limited
Strategic report for the period from 4 October 2020 to 2 October 2021
The Directors present their strategic report of Magical Cruise Company, Limited (the ‘Company’) (trade name “The Disney Cruise Line”) for the period from 4 October 2020 to 2 October 2021 (prior financial period from 29 September 2019 to 3 October 2020).
The financial statements on pages 24 to 27 were approved by the Board of Directors on 21 October 2022 and signed on its behalf by the directors stated below.
Principal activities, business review and future developments
The principal activity of the Company is the operation of luxury cruise vessels. It is considered that the Company’s activities will remain unchanged for the foreseeable future.
The Company’s loss for the financial year is $629,475,000 (2020: $255,853,000).
Revenue and operating income decreased year over year primarily due to the COVID-19 outbreak which the World Health Organisation declared a pandemic on 11 March 2020. Cruise ships were suspended from 14 March 2020.
The Company experienced increased cancellation and booking postponement requests which led to refunds, cruise credits of 125% of the reservation amount as well as future booking payment deferrals. The Company has introduced a short term cruise date flexibility booking policy allowing guests to change their sail date up to 15 days before departure.
Disney Magic resumed sailing on 15 July 2021, Disney Dream resumed on 9 August 2021, Disney Fantasy resumed sailing on 11 September 2021 and Disney Wonder resumed sailing on 1 October 2021.
The Company had committed to purchasing three new ships and these were originally scheduled to be delivered in calendar 2021, 2022 and 2023. The impact of COVID-19 on the shipyard has resulted in a delay to the delivery of the cruise ships. The first of the three new cruise ships, the Disney Wish, was delivered in June 2022. The Company will acquire its sixth and seventh ships in 2024 and 2025, respectively.
The Directors are managing day to day working capital requirements closely with its related parent entity in order to meet the company’s liabilities as they fall due. As the impacts of COVID on the cruise industry have continued to subside in fiscal year 2022, it is anticipated that the impacts on future financial performance will not be as significant.
As a result of the COVID-19 pandemic and in preparation for resumed operations which began 15 July 2021, the Company has developed multiple lavers of health and safety measures in compliance with UK government regulations and the United States Centers for Disease Control and Prevention CDC including ship modifications and COVID-19 vaccination and testing protocols for crew and guests.
Management continues to believe the long lived assets of the company have longer term prospects relative to the uncertain duration of the effects of the pandemic as evidenced by the re-launch of the Disney Magic, Disney Dream, Disney Fantasy and Disney Wonder.
On 24 September 2021, the Company entered into a purchase agreement to acquire the Disney Wonder vessel from Disney Magic Corporation (“DMC”) for the ship’s determined fair market value of $303,950,000. Prior to acquisition date, the Company had previously taken the vessel on lease from DMC.
On 24 September 2021, the Company entered into a purchase agreement to acquire the Disney Magic vessel from Disney Magic Company Limited (“DMCL”) for the ship’s determined fair market value of $278,650,000. Prior to acquisition date, the Company had previously taken the vessel on lease from DMCL.
In order to fund these purchases and repay an intercompany amount of $915,000,000, the company allotted 989.248,884 ordinary shares of £1.00 (the amount payable being the USD equivalent o f 1,352,600,000) to Wedco Global Ventures LLP on 29 September 2021.
Future developments
The Company anticipates its financial performance will continue to improve and return to profitability in financial year 2023 as the industry recovers from a prolonged impact of COVID 19 and the business benefits from expanded capacity with the introduction of the Disney Wish, the Company’s fifth cruise ship. In financial year 2022, the Company has seen a continued increase in occupancy and booking levels. In financial year 2023, occupancy is anticipated to continually increase and exceed the comparable actual financial year 2022 quarterly levels, on a year over year basis. While the Company’s recovery is longer than originally anticipated, we are optimistic about the future as the Company continues to advance the development of its next two cruise ships which are in active construction and expected to be delivered in 2024 and 2025 respectively. In addition, DCL Island Development Limited (“DCLIDL” – the Company’s 100% owned subsidiary company) is advancing the development of its second private island, Lighthouse Point in Eleuthera, The Bahamas, which is planned open in late financial year 2024. As the company is in a net current liability position it has obtained a letter of support, as set out in note 2 Going concern.
Principal risks and uncertainties
From the perspective of the company, its principal risks and uncertainties and future outlook are integrated with those of The Walt Disney Company (“Group”) and are not managed separately. Accordingly, the risks and uncertainties of the Group, which include those of the Company, are discussed in the Group’s annual report which does not form part of this report. However, the Directors view the following as being the principal risks facing the Company:
- Our sales may be adversely affected by changes in economic factors, political uncertainty and changes in consumer spending patterns
Many economic and other factors outside our control, including consumer confidence, consumer spending levels political uncertainty. employment levels, consumer debt levels, inflation and deflation, as well as the availability o f consumer credit. affect consumer spending habits. A significant deterioration in the global financial markets and economic environment. recessions or an uncertain economic outlook adversely affects consumer spending habits and results in lower levels of economic activity. In addition, an increase in price levels generally, or in price levels in aparticular sector such as the energy sector, could result in a shift in consumer demand a w a y from the entertainment and consumer products we ofter, which could also adversely aftect our revenues and, at the same time, increase our costs. Any of these events and factors could cause consumers to curtail spending and could have a negative impact on our financial performance and position in future financial years. The impact of pandemics on consume confidence and ultimately occupancy levels could also affect our financial performance. W e have resumed sailing since suspension on 14 March 2020 and are seeing occupancy levels bounce back in 2021 and 2022. - Our industry is highly competitive and competitive conditions may adversely affect our revenues and overall profitability
The cruise industry is highly competitive and our results of operations are sensitive to, and may be adversely affected by, competitive pricing and other factors. - A variety of uncontrollable events may reduce demand for our products a n d services, impair our ability to provide our products and services or increase the cost of providing our products and services
Demand for and consumption of our products and services is highly dependent on the general environment for travel and tourism. The environment for travel and tourism, as well as demand for and consumption of other entertainment products, can be significantly adversely affected in the U.S., globally or in specific regions as a result of a variety of factors beyond our control, including: adverse weather conditions arising from short-term weather patterns or long-term change, catastrophic events or natural disasters such as excessive heat or rain, hurricanes, typhoons, floods, tsunamis and earthquakes); health concerns (including as it has been by COVID-19); international, political or military developments; and terrorist attacks. These events and others, such as fluctuations in travel and energy costs and computer virus attacks, intrusions or other widespread computing or telecommunications failures, may also damage our ability to provide our products and services or to obtain insurance coverage with respect to som of these events. An incident that affected our property directly would have a direct impact on our ability to provide goods and services and could have an extended effect of discouraging consumers from attending our facilities. Moreover, the costs of protecting against such incidents, including the costs of protecting against the spread of COVID-19, reduces the profitability ofour operations. - Changed in regulations to our businesses may impair the profitability of our businesses. These regulations may include, but are not limited to:
- Federal, state and foreign privacy and data protection laws and regulations
- Regulation of the safety and supply chain of consumer products and Cruise Line operations.
- Domestic and international wage laws, tax laws or currency controls
- Environmental protection regulations
- Fuel prices
Our obiectives in managing exposure to commodity fluctuations are to use commodity derivatives to reduce volatility of earnings and cash flows arising from commodity price changes. The amounts hedged usingcommodity swap contracts are based on forecasted levels of consumption o fcertain commodities. such as fuel oil and gasoline With respect to the risks the Directors regularly review such matters to mitigate their respective impact on the Company. - Protection of electronically stored data and other cybersecurity is costly, and if our data or systems are materially compromised in spit of this protection, we may incur additional costs, lost opportunities, damage to our reputation, disruption of service or theft of our assets.
We maintain information necessary to conduct our business, including confidential and proprietary information as well as personal information regarding our customers and employees, in digital form. We also use computer systems to deliver our products and services and operate our business. Data maintained in digital form is subject to the risk of unauthorized access, modification, exfiltration, destruction or denial ofaccess and our computer systems are subject to cyberattacks that mav result in disruptions in service. It our information or cyber security systems or data are compromised in a material way, our ability to conduct our business may be impaired, we may lose profitable opportunities or the value of those opportunities may be diminished. It personal information of our customers or employees is misappropriated, our reputation with our customers and employees may be damaged resulting in loss of business or morale and we may incur costs to remediate possible harm to our customers and employees or damages arising from litigation and/or to pay fines or take other action with respect to judicial or regulatory actions arising out of the incident. - Damage to our reputation or brands my negatively impact our Company
Our reputation and globally recognizable brands are integral to the success of our business. Because our brands engage consumers across our businesses, damage to our reputation or brands in one business may have an impact on our other brands. - The adverse impact of COVID-19 on our business will continue for an unknown length of time and may continue to impact revenue
COVID-19 impacts that have subsided may again impact our business in the future and new impacts may emerge from COVID-19 developments or other pandemics. COVID-19 also makes it more challenging for management to estimate future performance of our business. COVID-19 has already adversely impacted our business and net cash flow, and we expect the ultimate magnitude of these disruptions on our financial and operational results will be dictated by the length of time that such disruption continue which will, in turn, depend on the currently unknowable duration and severity of the impacts of COVID-19. As of 18 July, 2022 the U.S. Centers for Disease Control and Prevention CDC ) has officially ended its COVID-19 program for cruise ships. The CDC has instead provided health and safety recommendations for the cruise industry in the same way it currently provides them for other travel sectors. Although US government regulations on the cruise industry have eased, the ultimate duration and severity of COVID-19 on the business remains uncertain.
Key performance indicators (“KPIs”)
The Company uses ship occupancy levels to help manage operations and measure performance. Occupancy levels for financial year 2020 were not meaningful due to extended shutdowns resulting from COVID-19. The Company’s fleet ship occupancy for financial year 2021 was 44% when operating. During 2021, ship occupancy levels were significantly lower than normal, resulting from restrictions on travel including reduced capacity and testing requirements. We have seen an increase in occupancy levels in FY22 to 55 % as of June 2022.
Section 172 statement
As a subsidiary within the group of companies of which The Walt Disney Company is the ultimate parent company (the “Group”), the Company is subject to organizational and management systems which enable the Board of Directors “the Board) to oversee governance of the activities of the company. As is normal for large companies, the Board delegates authority for day-to-day management of the company to the managers responsible for management of the Company. The Board ensures that when applying group policies and delegating responsibility for operational matters to the managers, it does so with due regard to its fiduciary duties and responsibilities.
The Directors of the Company are aware of their duty under section 172 of the Companies Act 2006 to act in a way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole. In doing so they have considered (amongst other matters) factors (a) to (r) listed below.
(a) the likely consequences o f any decision in the long term;
(b) the interests of the Company’s employeesknown as “Cast Members*”);
(c) the need to foster the Company’s business relationships with suppliers, customers (known as “Guests”) and others;
d ) the impact of the Company’s operations on the community and the environment;
(e) the desirability of the Company maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly between members of the Company
We have detailed below how, throughout the year, each of these factors have been considered by the Board, how stakeholder engagement has impacted its decision making and policies.
a). The likely consequences ofany decision in the long term
We are aware that our decisions and strategies can have long-term effects on our business and its stakeholders. Therefore we aim to make well informed, fair and balanced decisions. Our key stakeholders include Crew Members, Cast Members, Guests, home ports and ports of call, regulators and suppliers who are at the forefront of our minds when making decisions. We set out below some of the decisions the Board has taken during the course of the year with a view to creating long term success for the company and its stakeholders as a whole.
Immediately after the World Health Organization declared COVID-19 a pandemic in mid-March 2020, Disney Cruise Line voluntarily suspended passenger operations and responded swiftly by implementing multiple layers of health and satetv protocols considering guidance from government and public health experts. Disney Cruise Line worked with governmental authorities and industry partners to resume passenger operations in a phased manner from July 2021. Disney Cruise Line’s fleet of ships – the Magic, Wonder, Dream and Fantasy – have all since resumed sailing and continue to operate with health and safety protocols.
As previously announced, in addition to its four current ships, Disney Cruise Line is building three additional cruise ships, each of them showcasing the immersive family entertainment, enchanting storytelling and unparalleled service that only Disney can deliver. Construction began on the fifth ship – the Disney Wish – in 2020 and was scheduled to sail its maiden voyage on 9 June 2022. Sales for its inaugural season opened in April 2021. In January 2022, the Meyer Weft shipyard notified Disney Cruise Line that due to the pandemic, construction had been delayed at a critical point in the production process. As a result. Disney cruise Line delayed the ship’s maiden
vovage until 14 July 2022. Disney Cruise Line will deliver its sixth [Disney Treasure] and seventh [UNAMED] ships in 2024 and 2025 respectively. The three new ships will be mostly powered by liquid natural gas and, at approximately 144,000 gross tons and 1,250 Guest staterooms, will be slightly larger than the Disney Dream and Disney Fantasy.
Plans also continued for DCLIDL second island destination, Lighthouse Point, in Eleuthera, The Bahamas. The Bahamas Department of Environmental Planning and Protection issued a Certificate of Environmental Clearance for the project in November 2021, and construction has commenced. We anticipate it will open in financial year 2024 The destination will create sustainable economic opportunities for Bahamians, protect and sustain the natural beauty of the site. celebrate culture, and help strengthen the community in Eleuthera. It will complement Castaway Cay, a Disney destination located in the Abaco chain of The Bahamas, giving families the opportunity to enjoy the site’s beautiful beaches and explore nature, as well as enjoy the broader tourism offerings in Eleuthera.
b). The interests of the Company’s employees (known as “Cast Members”)
Since its launch in 1998. Disney Cruise Line is a well-established name in the cruise industry, providing a setting where families can reconnect, adults can recharge and children can experience all Disney has to offer. We strive to provide exceptional service that reflects our iconic brand, enabled by the passion and hard work of our cast and Crew. We understand the importance of our employees to our long-term success and are committed to providing a safe working environment, a diverse and inclusive culture and appropriate training and development.
The health and safety of our Cast and Crew Members is a top priority. Health and Safety policies are in place and relevant health and safety training is provided. As a result of the COVID-19 pandemic, Disney Cruise Line developed multiple lavers of health and safety measures in compliance with UK government regulations, BU Healthy Gateways, and guidance from industry organizations such as Cruise Lines International Association (CLIA) and the UK Chamber of Shipping. This includes ensuring all Crew Members are vaccinated and tested routinely for COVID-19.
Disney Cruise Line also complies with, and in some cases exceeds, the requirements set forth in the International Labour Organization’s (ILO’s) Maritime Labour Convention (MLC) which governs almost all aspects of working aboard a ship. Crew Members are organized through a collective bargaining unit (union) through the Federazione Italiana Transport (FIT). The current union agreement went into effect on 1 January, 2020 and is binding for four years. It stipulates compensation, benefits, working hours, and contract lengths for the range of work positions on-board.
Disney Cruise Line Crew and Members receive a wide range of employment benefits. While on contract in service of the ship. Crew Members receive medical care by the on-board medical team. Officers are offered full health benefits year-round when signed to a contract. Crew Members have access to mental health resources through an Employer Assistance Program offered in multiple languages, as well as access to online resources and wellness content offered on-demand via Crew stateroom TVs.
Disney has an ongoing commitment to diversity and inclusion (D&I). In June 2020 TWDC CEO Bob Chapek launched a new Company-wide initiative comprised of six pillars focused on increasing D&l: Transparency. Representation, Accountability, Community, Content, and Culture.
c). The need to foster the Company’s business relationships with suppliers, customers (“Guests”) and others
We pride ourselves on delivering exceptional service and world-class family holidays. We have strong relationships with our suppliers and work closely with them to provide our Guests with high quality experiences and products.
Guests
Creating unforgettable holiday experiences for our Guests is the primary motivation of our dedicated Disney Cruise Line Crew Members and Cast. Disney Cruise Line is considered a leader in the cruise industry by travel professionals, hospitality industry groups, and most importantly – by our Guests. Families sailing with Disney Cruise Line expect a unique holiday experience that only Disney can deliver. At the heart of all we do is the Guest experience and satisfaction with the Disney Cruise Line product. Multiple touch points provide us the opportunity to hear directly from our Guests about what we’re doing right and areas for improvement. Our Call Center and Guest Communications team resolves issues brought to our attention in a timely manner, corresponding directly with any guest who reaches out to us for assistance before, during and after their cruise. Our team is specifically trained to assist our Guests with their holiday needs and consistently receives some of the highest Guest Service satisfaction ratings within our company. In response to the pandemic, Disney Cruise Line has implemented temporary booking and cancelations policies allowing Guests to adjust their sail date or receive a full refund should they choose.
Suppliers
Disney Cruise Line has high standards for suppliers and has a thorough process for sourcing products and services of the best quality and value. Suppliers are held to TWDC’s International Labour Standards and Code of Conduct for Suppliers. Our supply chains follow Disney policies and comply with UK government regulations. Food and
beverage suppliers must follow a uniform set of TWDC guidelines that meet both Company and local standards, including conducting periodic sanitation and safety audits and maintaining liability insurance.
Disney Cruise Line also partners with travel agents for a significant source of cruise bookings. Travel agents must be a registered Member supplier in good standing with CLIA or the International Air Transport Association (IATA), and supply proof of all qualifying tax and other documentation required to do business as a travel agent/agency in its domestic and international markets. Travel agents and agencies must operate ethically, representing the Disney Cruise Line brand in good faith and providing accurate marketing and information about Disney Cruise Line’s products.
Disney Cruise Line is committed to conducting business and providing products and services in an ethical manner. We also believe that including diverse suppliers in our sourcing process provides us the greatest opportunity to develop the most innovative, highest quality, and most cost-effective business solutions. We know this strengthens our Company as well as supporting our communities.
Port Communities
Disney Cruise Line is very mindful of our impact on local communities. We engage in an ongoing basis with all our relevant stakeholders whether port authorities, minsters of tourism. shore excursion operators, and other in-destination partners to best understand how we can best collaborate with them to maximize the positive impacts of our business on their communities. Today, 75 percent of the cruises offered by Disney Cruise Line have at least one stop in The Bahamas. Disney Cruise Line has made signiticant economic contributions to The Bahamas while demonstrating a strong commitment to the environment and the community. It is estimated that Disney Cruise Line operations contribute more than $70 million toward the Bahamas gross domestic product annually.
Disney Cruise Line takes careful steps to ensure it respects the communities, environment and culture of each of its destinations through collaboration with stakeholders and relevant partners in ports of call. This includes understanding how to introduce our brand most appropriately to those communities, as well as introduce the unique character and culture of each destination to Disney Cruise Line Guests. We source products in our ports of call when it meets our quality standards. and we work with a variety of tour providers in each destination to diversify our products.
d). The impact of the Company’s operations on the community and the environment
Community
Disney’s global Social Responsibility Framework clarifies its mission as: “to be an honorable Company that provides comfort to those in need and creates inspiration and opportunity for those who want to improve their world”.
For more than 20 years. Disney has made significant contributions to support communities in The Bahamas. Recent key initiatives focus on supporting entrepreneurs and small businesses, workforce development starting at a young age, conservation and timely community needs. Disney Cruise Line is a founding sponsor of the Eleuthera Business Hub, in partnership with the Eleuthera Chamber of Commerce and the Small Business Development Center, and is providing financial support to small and medium-sized businesses.
Disney is committed to supporting education in The Bahamas and continues to work with the Ministry of Education to inspire and educate the next generation of professionals. As part of Disney Cruise Line’s initiative to support women who aspire to be shipboard leaders, Disney awarded scholarships to four female cadets to attend the LJM Maritime Academy in Nassau. Disney Cruise Line has also worked with Urban Renewal in Eleuthera to provide computers and other needs for after school programs, as well as donated tablets to students in need throughout South Abaco and South Eleuthera to enable virtual learning and enhance classroom learning in the future. As part of Disney’s commitment to support youth development across Eleuthera, Disney has contributed to Junior Achievement Bahamas to support programs focused on financial literacy, entrepreneurship, college preparedness and work readiness for grades K-12.
Disney Cruise Line strives to make a positive impact in the many places around the world it calls home. The Cast and Crew of Disney Cruise Line support many charitable organizations that nurture the lives of children and enrich the environment. Crew Members lead reading education programs in schools, give to local animal shelters and bring Disney characters to entertain children in port communities around the globe. Disney VoluntEARS also donate their time to paint murals for hospitals and care facilities, raise funds for worldwide disaster reliefefforts, and host annual shore clean-ups to remove litter and debris from fragile coastlines. Each year, Cast and Crew Members donate thousands of hours of their personal time to benefit worthwhile causes in port communities around the world.
In December 2020, Disney Cruise Line joined Bahamian community leaders to help spread magic during the holiday season. In Eleuthera, Disney Cruise Line contributed to The South and Central Eleuthera Community Christmas Dinner-in-a-Bag outreach program, which went toward the assembly ot dinner bags for tamilies in need throughout settlements in South and Central Eleuthera over the holiday week. Additionally, Disney Cruise Line recently supported the Bahamas Feeding Network to provide meals to families in New Providence and Abaco.
Disney also continues to engage in efforts to support unforeseen needs. For example, Disney Cruise Line made significant contributions to Hurricane Dorian relief and recovery efforts, including making donations to non-profit organizations, and providing supplies for impacted communities delivered by Disney ships.
Environmental
The Group has made a net zero pledge and aims to establish and sustain a positive environmental legacy tor Disney and for future generations. The Company has ambitious environmental goals for 2030 focused on key areas of our business where we believe we can have a significant, lasting impact and make a positive difference in protecting our planet. Goals include:
- collaborating with industry groups and investing in low carbon fuel innovation;
- investing in natural climate solutions;
- implementing site-specific, watershed stewardship strategies at high-impact sites;
- working to achieve zero waste to landfill for Disney’s wholly owned and operated parks and resorts;
- new construction projects to be designed to near net zero, minimize water consumption and support zero waste operations; and
- reduce the Company’s plastics footprint across all businesses.
At Disney Cruise Line. we are dedicated to minimizing our impact on the environment through efforts focused on utilizing new technologies, increasing fuel efficiency, minimizing waste and promoting conservation worldwide. We strive to instill positive environmental stewardship in our cast and Crew Members and seek to inspire others through programs that engage our Guests and the communities in our ports of call.
Disney Cruise Line is consistently recognized as an industry leader. All four Disney Cruise Line ships [Magic, Wonder, Dream, and Fantasy] have the U.S. Coast Guard’s QUALSHIP 21 with Zero-E designation. which recognizes exemplary vessels that have consistently adhered to environmental compliance, while also demonstrating a commitment to environmental stewardship. Disney Cruise Line also regularly wins awards such as the Blue Circle Award from Port of Vancouver for voluntary efforts to conserve energy and reduce emissions.
As of 1 January, 2020, the International Maritime Organization instituted a regulation that requires all ships to use 0.5% sulfur fuel compared to 3.5% previously. Disney Cruise Line has taken this a step further by using 0.1% low sulfur fuel fleetwide at all times. As previously mentioned, the three additional cruise ships will be mostly powered by liquefied natural gas, or LNG, one of the cleanest-burning fuels available. Currently, three Disney Cruise Line ships have the equipment necessary to plug into shore power if the option is available at the port. Disney Cruise Line coordinates itineraries to be sure shore power-capable ships sail to ports of call that offer this technology.
As part of Group’s overall efforts to reduce the amount of single-use plastics, Disney Cruise Line has taken great measures to eliminate single-use plastics on-board and on Disney Castaway Cay, Disney’s island in The Bahamas. This effort has resulted in removing an annual volume of more than 14.7 million plastic straws and 2.2 million plastic amenity containers. Disney Cruise Line has also gone from annually distributing nearly 1 million plastic merchandise bags fleetwide annually to nearly zero. Other measures include the removal of plastic cutlery, stirrers and condiment packets. Disney cruise Line is committed to diverting waste from traditional waste streams. Shipboard recycling processes have helped to eliminate on average more than 2,500 tons of metals, glass, plastic and paper from traditional waste streams each year.
Disney Cruise Line has invested in technology to ensure water purity and taken steps to select earth-friendly cleaners. All Disney Cruise Line ships feature Advanced Wastewater Purification Systems (AWPS) that utilize natural processes to treat and purity on-board wastewater to levels far exceeding international shipping standards. and in some cases shore side potable water standards.
Disney also is committed to ensuring a world where wildlife thrives and nature is treasured and protected by saving wildlife, inspiring action and protecting the planet. For more than 60 years, animals have been a part of Disney storytelling, and these stories continue today alongside immersive experiences that connect children and families around the world with the magic ofnature. Since 1995, the Disney Conservation Fund (DCF) hasdirected more than $100 million to protect 1,000 species through community-led conservation efforts spanning half the countries in the world. This includes more than Sl8M invested in ocean conservation programs aimed at protecting marine ecosystems and wildlife. In addition, the D e r has supported programs that have provided more than 18 million nature experiences ot kids and familiesacross the globe.
‘The Disney Conservation Fund is focused on saving wildlife for future generations through grants to leading conservation organizations working together to stabilize and increase the populations of at-risk animals including sea turtles, coral reefs, sharks and rays, apes, cranes, buttertlies, elephants, monkeys, rhinos and tigers. A Disney conservationist works with each organization to identify where Disney expertise can also play a role in reversing the decline of these animals and their habitats.
Disney has long been committed to protecting the environment in The Bahamas. For more than a decade, several experts from Disney’s Animals, Science and Environment team have been engaged in significant conservation work there in partnership with local organizations and scientists. Their work includes an initiative that has been underway since 2007 to rehabilitate coral reefs. DCL also supports summer eco camps and community engagement efforts in Abaco, and helps provide conservation curriculum support for Bahamian school children.
More details on Disney Cruise Line’s dedication to minimizing its impact on the environment is available at: https://dclnews.com/fact-sheets/2018/10/03/environmental-fact-sheet/
More details on TWDC’s environmental goals can be found at: https://thewaltdisneycompany.com/environmental-sustainability
e). The desirability of the company maintaining a reputation for high standards of business conduct
We are committed to operating our businesses with integrity and adopting governance policies that promote the thoughtful and independent representation of our stakeholders’ interests. The Board of Directors has adopted Corporate Governance Guidelines which address, among other things, the composition and functions of the Board of Directors. Our Board or Directors is also expected to uphold our Code ot Business conduct. Similarly. the Group Company’s Standards of Business Conduct are applicable to all Cast Members of the Company including board Members.
We regularly engage our leaders and Cast Members on these Standards through training and other forms of communication. It is compulsory that all office based Cast Members complete the mandatory online courses, examples include: Standards of Business Conduct, Bribery and Avoiding Corrupt Business Practices. Acting responsibly and conducting our business ethically is an integral part of our brand.
f) The need to act fairly as between members of the Company
We are a wholy owned subsidiary of Wedco Global Ventures LLP, whose ultimate parent Company is The Walt Disney Company (TWDC). Magical Cruise Company is consolidated within TWDC results as part of the Disney Parks, Experiences, and Products Segment. Our parent company as well as TWDC are aware of key decisions and financial performance of the Company and take a keen interest in the strategies and future outlook of the Company.
The Strategic report is authorized by the Board of Directors and signed on its behalf on 21 December 2022 by:
TL Wilson
Director
For FY21, Disney Cruise Line reported a loss of $629,475,000 primarliy attributed to the impact of the COVID-19 pandemic which shutdown cruise operations.
Furthermore, the Company’s principal activity is the operation of luxury cruise vessels. It is considered that the Company’s activities will remain unchanged for the foreseeable future.