Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — CIBC Industrials Conference 2017
22 slides from Canadian Pacific Kansas City's conference presentation, Mar 8, 2017
Slide 1: Investor Presentation March 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward- By its nature, CP’s forward-looking information involves floating rate notes; and various events that could disrupt looking information within the meaning of applicable securities numerous assumptions, inherent
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 Financial statements are prepared in accordance with accounting meanings and are not defined by U.S. G
Slide 4: A Strong Franchise with a Diversified Book of Business
A STRONG FRANCHISE WITH A DIVERSIFIED BOOK OF BUSINESS
Slide 5: Platform for Growth
_ PLATFORM FOR cROWTH = SOLE! xr SERVICE IN PLACE TEAMINPLACE | . Service reliability io Introduction of Trip Plans Leveraging network strengths
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Adjusted Operation Ratio(1) Adjusted Diluted Earnings (percentage) Per Share(1) ($) 10.10 10.29 77.0 8.50 69.9 64.7 6.42 61.0 58.6 4.34 1,840 bps improvement 24% CAGR 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Free Cash(1) Adjusted Return on Invested Capital(1) ($ millio
Slide 7: Non-GAAP measures footnote
(1) For a full description and reconciliation of Non-GAAP measures see CP’s Form 10-K on www.cpr.ca
Slide 8: Operating Model Performance
OPERATING MODEL PERFORMANCE Network Speed Terminal Dwell 8.7 23.5 (miles per hour) (hours) 21.4 18.0 18.4 18.0 7.5 7.1 7.2 6.7 31% improvement 11% improvement Greater efficiency 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Better asset Gallons of Locomotive Fuel Train Length (feet) utilizat
Slide 9: Capital Investment $1.25B
CAPITAL INVESTMENT 2017E Capital Investment Breakdown Capital Expenditures ($ millions) 1,522 4% 4% 1,449 3% Basic Replacement 1,236 1,250 1,182 Network Enhancements 13% Rolling Stock $1.25B 66% 10% Information Technology PTC Other 2013 2014 2015 2016 2017E
Slide 10: Industry Leading Safety Performance
SAFETY INDUSTRY LEADING SAFETY PERFORMANCE Personal injuries Train accident frequency (Injuries per 200,000 employee-hours) (Accidents per million train-miles) 1.84 1.69 1.80 1.71 1.67 1.33 1.64 1.26 1.56 0.97 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 5 FRA Train Accident Rate 2001- YTD 2016
Slide 11: Appendix
Slide 12: Grain
GRAIN Canadian Grain 65% Regulated 45% Non-regulated 20% U.S. Grain 35% Domestic 21% Export 14% Canadian grain traffic is predominantly destined to export markets through the key gateways of Vancouver, Thunder Bay and Montreal or moved domestically for consumption in Eastern Canada or the U.S Midwes
Slide 13: Coal
COAL Canadian Coal 89% Export 84% Domestic 6% U.S. Coal 11% Export 0% Domestic 11% Canadian coal traffic consists primarily of metallurgical coal originating at Teck Resources’ five mines and moves for export out of the Port of Vancouver. U.S. coal traffic consists primarily of thermal coal originat
Slide 14: Potash & Fertilizers
POTASH & FERTILIZERS Potash 55% Export 30% Domestic 25% Fertilizers 36% Cross-border 28% Canada 6% U.S.2% Sulphur 9% Export potash moves in unit trains to port facilities in Vancouver and Portland. Domestic potash moves by both unit train and manifest service to the U.S. Midwest. Fertilizers – which
Slide 15: Metals, Minerals & Consumer Products
METALS, MINERALS & CONSUMER PRODUCTS Sand & Stone 25% Other Aggregates 25% Steel 30% Consumer Products 15% Mines & Metals 5% CP’s metals, minerals and consumer products portfolio includes a diverse mix of input materials such as frac sand, cement, clay, gravel, salt, and gypsum, as well as steel and
Slide 16: Chemicals & Plastics
CHEMICALS & PLASTICS Energy 36% Biofuels 26% Chemicals 27% Plastics 11% The chemicals and plastics business includes a wide range of commodities including petroleum products, which originate predominantly in Alberta, Saskatchewan and North Dakota; chemicals which originate in Eastern Canada, Alberta
Slide 17: Crude
CRUDE Western Canada 50% Bakken 50% CP’s crude traffic originates at crude-by-rail terminals in Alberta, Saskatchewan and North Dakota, and moves to key refining markets in Eastern Canada, the Northeast U.S., the Gulf Coast and the West Coast.
Slide 18: Automotive
AUTOMOTIVE Finished Vehicles 94% Origin Canada 55% Origin U.S. 23% Imports 10% Origin Mexico 6% Machinery 3% Parts & Other 3% CP’s automotive portfolio consists of four finished vehicle traffic segments: Canadian-produced vehicles that ship to the U.S. from Ontario production facilities; U.S.-produc
Slide 19: Forest Products
FOREST PRODUCTS Pulp 35% Lumber 36% Paper 18% Panel 8% Other 3% Forest products include lumber, wood pulp, paper products and panel transported from key producing areas in Western Canada, Ontario and Quebec to various destinations in North America.
Slide 20: Intermodal
INTERMODAL Domestic Intermodal 55% Canada 47% Cross-border 7% U.S. 1% International Intermodal 45% Port of Vancouver 26% Port of Montreal 10% Other 3% Our international intermodal segment moves container volumes between the ports of Vancouver, Montreal and New York to inland destinations across Cana
Slide 21: Class 1 Rail Network
CLASS 1 RAIL NETWORK
Slide 22: _
_
Canadian Pacific Kansas City — CIBC Industrials Conference 2017 on 6ix