Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — Q1 2019 Earnings Presentation
15 slides from Canadian Pacific Kansas City's earnings presentation, Apr 23, 2019
Slide 1: Q1 2019 Earnings Review
Q1 2019 EARNINGS REVIEW APRIL 23, 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking the effects of competition and pricing pressures; industry capacity; shifts information within the meaning of applicable securities laws relating, but in market demand; inflation; changes in laws and regu
Slide 3: Note on Non-GAAP Measures and Lease Accounting
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 Financial information is prepared in accordance with accounting U.S. G
Slide 4: Keith Creel, President & Chief Executive Officer
» KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER cP
Slide 5: First Quarter Overview
FIRST QUARTER OVERVIEW Q1 PERFORMANCE • Difficult quarter – harsh winter conditions and a number of Revenues outages challenged the network ($ billions) $1.8 | +6% • Network is recovering quickly and Operating Income momentum is building; operating ($ millions) $543 | +1% metrics and volume trends h
Slide 6: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER
Slide 7: Revenue Highlights
REVENUE HIGHLIGHTS FREIGHT REVENUE FX-adjusted revenue variance(1) +6% VS Q1 2018 Grain Coal Potash -2% 4% 3% Fertilizers & sulphur -8% Forest products 7% • RTMs: -1% Energy, chemicals & plastics 18% • FX: +3% • Fuel: flat Metals, minerals, consumer -9% • Price/mix: +4% Automotive 3% Intermodal 2% (
Slide 8: Bulk
BULK Q1’19 VS. Q1’18 MARKET DRIVERS • Strong export potash demand; K+S continues to ramp, Canpotex sold out through end of June Freight Revenue (FX-adj.) (1) 2% • 650 new high capacity covered hoppers now in service; 1900 in service by end of year RTMs -2% • Grain volumes expected to remain solid in
Slide 9: Merchandise
MERCHANDISE Q1’19 VS. Q1’18 MARKET DRIVERS • Growth in ECP driven by record volumes of LPG, Freight Revenue plastics and refined products as well as success of 6% CP energy train (FX-adj.) (1) RTMs -2% • Strong automotive growth in spite of cyclical weakness; trend expected to continue with recent o
Slide 10: Intermodal
INTERMODAL Q1’19 VS. Q1’18 MARKET DRIVERS • Rapid recovery from challenging conditions; record Freight Revenue March for Domestic Intermodal 2% (FX-adj.) (1) • Successful onboarding of Dollarama RTMs 3% • Continued growth anticipated as we leverage demand management tools, over the road Freight Reve
Slide 11: Nadeem Velani
NADEEM VELANI
Slide 12: Financial Performance – Q1
FINANCIAL PERFORMANCE – Q1 (In millions, except percentages and First Quarter FX adjusted per share data) 2019 2018 Change % Change % (1) Total revenues $ 1,767 $ 1,662 6% 4% Compensation and benefits 406 374 9% 7% Fuel 209 215 (3%) (7%) Materials 57 55 4% 4% Equipment rents 35 33 6% —% Depreciation
Slide 13: Free Cash Flow
FREE CASH For the three months ended March 31 (in millions) 2019 2018 Cash provided by operating activities $413 $397 Capital expenditures (224) (241) Other property and asset sales 6 4 Other (1) (1) Cash used in investing activities (219) (238) Effect of FX on USD-denominated cash & cash equivalent
Slide 14: Confident in Our Full Year Guidance
CONFIDENT IN OUR FULL YEAR GUIDANCE (1) (1) For a full description and reconciliation of Non-GAAP Measures, see CP’s Q1 2019 Earnings Release on investor.cpr.ca
Slide 15: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS MAEGHAN ALBISTON Assistant Vice President CHRIS DE BRUYN Director 403-319-3591 [email protected] investor.cpr.ca cP