Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q1 2022 Earnings Presentation
16 slides from Canadian Pacific Kansas City's earnings presentation, Apr 27, 2022
Slide 1: Q1 2022 Earnings Review
Q1 2022 EARNINGS REVIEW APRIL 27, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of other relevant securities legislation, including a
Slide 3: Basis of Presentation & Non-GAAP Measures
BASIS OF PRESENTATION & NON-GAAP MEASURES BASIS OF PRESENTATION Except where noted, all figures are in millions of Canadian dollars. Financial information is prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), unless otherwise noted. As
Slide 4: Keith Creel, President & Chief Executive Officer
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 5: Highlights
HIGHLIGHTS FRA train accident Average terminal dwell • Challenging Q1 from extreme cold in January and frequency (hours) (per million train-miles) 1.39 labour disruption in March 8.7 1.04 7.4 • Core EPS down 26% reflective of operating 25% Favourable 18% Unfavourable environment and Canadian grain h
Slide 6: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 7: Revenue Highlights Q1
REVENUE HIGHLIGHTS Q1 FX-adjusted revenue variance(1) TOTAL REVENUE Grain -20% -6% Coal Potash -15% 3% VS Q1 2021 Fertilizers & sulphur 0% Forest products 8% • RTMs: -14% Energy, chemicals & plastics -20% • FX: Flat Metals, minerals & consumer 14% Automotive -16% • Fuel: +6% Intermodal 13% • Price /
Slide 8: Revenue Update
REVENUE UPDATE BULK: 40% MERCHANDISE: 38% INTERMODAL: 22% • Expect normal Canadian grain in • Increased drilling activity driving • East Coast Advantage: Hapag the back half of 2022 frac sand volume growth Lloyd adding a second call to Port Saint John • Record US grain volumes as we • New refined pr
Slide 9: Nadeem Velani, Chief Financial Officer
NADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 10: Financial Performance – Q1
FINANCIAL PERFORMANCE – Q1 First Quarter FX Adjusted (in millions, except percentages and per share data) 2022 2021 Change % Change%(1) Total revenues $ 1,838 $ 1,959 (6)% (6)% Compensation and benefits 413 405 2% 2% Fuel 273 206 33% 33% Materials 62 59 5% 5% Equipment rents 35 33 6% 6% Depreciation
Slide 11: Free Cash
FREE CASH For the three months ended March 31 (in millions of Canadian dollars) 2022 2021 Cash provided by operating activities $ 613 $ 582 Cash used in investing activities (206) (286) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (3) Less: Acquisiti
Slide 12: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS MAEGHAN ALBISTON Vice President CHRIS DE BRUYN Managing Director REBECCA STEPHEN Director 403-319-3591 [email protected] investor.cpr.ca
Slide 13: Appendix
APPENDIX
Slide 14: KCS First Quarter Results
KCS FIRST QUARTER RESULTS(1) Q1 2022 Q1 2021 Improvement/ (Deterioration) Carloads/Units 575.2 555.4 4% (in thousands) Revenues $778.2 $706.0 10% (in millions, $ USD) Reported Operating Ratio 62.6% 64.2% 1.6 points (percent) Adjusted Operating Ratio(2) 60.9% 61.4% 0.5 points (percent) (1) KCS will c
Slide 15: Sustainability Leadership
SUSTAINABILITY LEADERSHIP • Strong history of ESG disclosures and leading sustainability practices • Published our first TCFD Index in 2021 • Published our first Climate Strategy, including emissions reduction targets covering 100% of scope 1 & 2 emissions: • Set locomotive GHG emissions intensity r
Slide 16: Q1 Operating Performance
Q1 OPERATING PERFORMANCE Average train speed Average train length FRA train accident frequency (miles per hour) (feet) (per million train-miles) 1.39 21.2 20.9 1.04 8,050 7,972 1% Favourable 1% Favourable 25% Favourable Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Fuel efficiency Average train weight FRA per
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