Canadian Pacific Kansas City Limited · TSX:CP

Canadian Pacific Kansas City — Canadian Pacific — Q3 2016 Earnings Presentation

14 slides from Canadian Pacific Kansas City's earnings presentation, Oct 19, 2016

  1. Slide 1: Q3 2016 Earnings Review

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking market demand; inflation; changes in laws and regulations, including information within the meaning of applicable securities laws relating, but regulation of rates; changes in taxes and tax rates; potenti

  3. 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 Financial information is prepared in accordance with accounting U.S. G

  4. Slide 4: f - ef

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  5. Slide 5: Q3 Highlights

    Q3 HIGHLIGHTS OPERATING RATIO ADJUSTED DILUTED EPS(1) 57.7% $2.73  Strong margin performance in spite of delayed grain harvest and continued crude decline  Guidance updated to reflect economic challenges  Well positioned heading into Q4 and 2017 (1) For a full description and reconciliation of No

  6. Slide 6: EY WwW

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  7. Slide 7: Operating Performance

    OPERATING PERFORMANCE Average network speed Average train length Average train weight (mph) (feet) (tons) 7,418 23.9 8,915 6,944 8,322 22.2 8% better 7% better 7% better Q3'15 Q3'16 Q3'15 Q3'16 Q3'15 Q3'16 Car miles per car day Locomotive productivity Fuel Efficiency (miles) (GTMs per Available HP)

  8. Slide 8: Revenue Performance

    REVENUE PERFORMANCE FREIGHT REVENUE FX-adjusted revenue variance(1) favourable/(unfavourable) -9% Canadian grain -15% U.S. grain 1% Coal -2% Potash -1% VS Q3 2015 Fertilizers & sulphur 5% Forest products 8%  RTMs -6% Chemicals & plastics 1%  Freight Revenue per RTM -3% Crude -88% • FX: flat • Fuel

  9. Slide 9: Yt. Ut

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  10. Slide 10: Financial Performance

    FINANCIAL PERFORMANCE Q3 Q3 Reported Variance (In millions, except percentages and per share data) 2016 2015 Fav/(unfav) % Total revenues $ 1,554 $ 1,709 -9 % Total operating expenses 897 956 6% Compensation and benefits 294 352 16 % Fuel 138 162 15 % Materials 39 47 17 % Equipment rents 43 42 -2 %

  11. Slide 11: Slide 11

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  13. Slide 13: Key Modeling Sensitivities

    KEY MODELING SENSITIVITIES Key sensitivities Exchange rate* For every $0.01 decline in the Canadian dollar: • Revenues increase by approximately $25 million • Expenses increase by approximately $13 million • Interest expense increases by approximately $3 million *Sensitivities are quoted on a full y

  14. Slide 14: Investor Relations Contacts

Canadian Pacific — Q3 2016 Earnings Presentation on 6ix