consumer vacation decisions and onboard enjoyment, which bodes well for attracting first-time cruisers and powerfully differentiating our brands relative to others. We are ardently focused on delivering a customer experience that surpasses even the high levels we achieve today and, most importantly, driving greater advocacy from our satisfied guests. Carnival Corporation & plc enjoys an enviable position in today’s competitive landscape. Our leadership position is firmly rooted in our portfolio of distinct iconic brands. It is fueled by the efforts of our dedicated employees around the world and countless travel agent partners. Most importantly, it is anchored in a consistent strategy of exceeding guest expectations. I have great confidence in our ability to execute and deliver on the expectations we have set for ourselves, and thereby realize our company’s true earnings power, driving significant free cash flow and returning to double-digit returns on invested capital over time. I am honored and privileged to be leading the next stage of growth for Carnival Corporation & plc. I thank Micky and our board of directors for entrusting me with this great enterprise and its rich legacy. I thank our employees for their dedication to delivering great joyful vacation experiences each day and our travel agent partners who have helped us grow to the point where almost half of all guests that cruise anywhere in the world cruise aboard one of our ships. And, of course, I especially thank our shareholders and our more than 10 million annual guests for their continued support. Arnold Donald President and Chief Executive Officer February 20, 2014 2. Business. A. Overview I. Summary Carnival Corporation was incorporated in Panama in 1972 and Carnival plc was incorporated in England and Wales in 2000. Carnival Corporation and Carnival plc operate a dual listed company (“DLC”), whereby the businesses of Carnival Corporation and Carnival plc are combined through a number of contracts and through provisions in Carnival Corporation’s Articles of Incorporation and By-Laws and Carnival plc’s Articles of Association. The two companies operate as if they are a single economic enterprise with a single senior executive management team and identical Boards of Directors, but each has retained its separate legal identity. Carnival Corporation and Carnival plc are both public companies with separate stock exchange listings and their own shareholders. Together with their consolidated subsidiaries, Carnival Corporation and Carnival plc are referred to collectively in this Strategic Report as “Carnival Corporation & plc,” “our,” “us” and “we.” We are the largest cruise company with a global market share of 46% and are among the most profitable and financially strong leisure travel companies in the world with a market capitalization of $30 billion at February 20, 2014. We operate 101 cruise ships within a portfolio of ten leading cruise brands that sell cruise products and services in all the world’s major vacation markets. We are also a leading provider of vacations to all major cruise destinations throughout the world.
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