Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — Q3 2014 Earnings Presentation
15 slides from Canadian Pacific Kansas City's earnings presentation, Oct 21, 2014
Slide 1: Q3 2014 Earnings Review
Q3 2014 EARNINGS REVIEW OCTOBER 21, 2014
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking litigation; labour disputes; risks and liabilities arising from derailments; information within the meaning of applicable securities laws relating, but not transportation of dangerous goods; timing of com
Slide 3: Note on Non-GAAP Measures
NOTE ON NON-GAAP MEASURES Except where noted, all figures are in millions of Canadian dollars. It should be noted that CP’s non-GAAP earnings as described in this presentation, have no standardized meanings and are not defined by U.S. Financial statements are prepared in accordance with accounting p
Slide 4: E. Hunter Harrison, CEO
E. HUNTER HARRISON CEO
Slide 5: Q3 Highlights
Q3 HIGHLIGHTS OPERATING RATIO EARNINGS PER SHARE 62.8% 310 BP IMPROVEMENT $2.3126% INCREASE Record quarter on all accounts Rewarding shareholders through increased buyback 5
Slide 6: Keith Creel, President & COO
KEITH CREEL PRESIDENT & COO
Slide 7: Q3 Operating Performance
Q3 OPERATING PERFORMANCE Train Length Train Weight (Feet) (Tons) 8,264 6,912 2% 7,817 6% 6,746 improvement improvement Q3'13 Q3'14 Q3'13 Q3'14 Fuel Efficiency Train Accident Frequency (US Gallons per 1,000 GTMs) (Accidents per million train-miles) 1.83 1.02 3% 11% 0.99 improvement improvement 1.62 Q
Slide 8: Q3 Revenue Performance
Q3 REVENUE PERFORMANCE FX-adjusted variance(1) TOTAL REVENUES favorable/(unfavorable) +9% Canadian Grain 16% US Grain 14% Coal (16%) Potash 4% VS Q3 2013 Fertilizers & sulphur (14%) Forest products 0% Chemicals & plastics ▲ RTMs up 8% 10% ▲ Revenue per RTM up 1% Crude 68% Metals & Minerals 12% ▲ Car
Slide 9: Bart Demosky, EVP & CFO
BART DEMOSKY EVP & CFO
Slide 10: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Variance In millions, except percentages and per share data Fav/ (Unfav) 2014 2013 Reported FX Adj(1) Total revenues $ 1,670 $ 1,534 9% 7% Total operating expenses 1,049 1,010 (4%) (2%) Operating income 621 524 19% 16% Other charges 1 - - Net interest expense 70 70 - Income t
Slide 11: Free Cash
FREE CASH For nine months in millions ended September 30th 2014 2013 Cash from operating activities $ 1,466 $ 1,291 Capital expenditures (936) (802) Proceeds from the sale of properties 26 38 Proceeds from the sale of the DM&E West 236 - Change in restricted cash & cash equivalents 327 (346) Other -
Slide 12: E. Hunter Harrison, CEO
E. HUNTER HARRISON CEO
Slide 13: Summary
SUMMARY Demand environment is strong On track to finish the year with CP’s strongest quarter to date Ready to deliver recently announced long-term plan
Slide 14: Contacts
CONTACTS AVP, Investor Relations [email protected] Director, Investor Relations [email protected] Phone: (403) 319-3591
Slide 15: Appendix: Foreign Exchange Impact
APPENDIX: FOREIGN EXCHANGE IMPACT Quarterly Variance Fav/(Unfav) Reported FX adjusted(1) Canadian Grain 17% 16% U.S. Grain 19% 14% Coal (15%) (16%) Potash 6% 4% Fertilizers & Sulphur (13%) (14%) Forest products 2% - Chemicals & Plastics 13% 10% Crude 74% 68% Metals, Minerals & Consumer Products 16%