Canadian Pacific Kansas City Limited · TSX:CP

Canadian Pacific Kansas City — Canadian Pacific — Q1 2016 Earnings Presentation

15 slides from Canadian Pacific Kansas City's earnings presentation, Apr 20, 2016

  1. Slide 1: Q1 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: E. Hunter Harrison, Chief Executive Officer

  5. Slide 5: Q1 Highlights

    Q1 HIGHLIGHTS OPERATING RATIO ADJUSTED DILUTED EPS(1) 58.9% $2.50 430 BP IMPROVEMENT UP 11%  Record operating ratio  Rewarding shareholders • 5% share buyback program • 43% increase in dividend  Record results in a challenging environment (1) For a full description and reconciliation of Non-GAAP

  6. Slide 6: E. Hunter Harrison, Chief Executive Officer

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  7. Slide 7: Operating Performance

    OPERATING PERFORMANCE Average network speed Average terminal dwell Fuel efficiency (mph) (hours) (US gallons per 1,000 GTMs) 23.5 8.9 1.048 0.998 6.9 19.5 21% better 22% better 5% better Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Locomotive Average train length Car miles per car day productivity (feet) (mi

  8. Slide 8: Revenue Performance

    REVENUE PERFORMANCE FREIGHT REVENUE FX-adjusted revenue variance(1) favorable/(unfavorable) -5% Canadian grain -4% U.S. grain -27% Coal -11% Potash -17% VS Q1 2015 Fertilizers & sulphur 7% Forest products 15%  RTMs -5% Chemicals & plastics -1%  Freight Revenue per RTM • FX +6% Crude -35% • Fuel -5

  9. Slide 9: E. Hunter Harrison, Chief Executive Officer

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  10. Slide 10: Financial Performance

    FINANCIAL PERFORMANCE First Quarter (In millions, except percentages and per share data) 2016 2015 Total revenues $ 1,591 $ 1,665 Total expenses 938 1,053 Compensation and benefits 329 378 Fuel 125 195 Materials 56 52 Equipment rents 45 42 Depreciation and amortization 162 146 Purchased services and

  11. Slide 11: Appendix

  12. Slide 12: Slide 12

  13. Slide 13: Adjusted Results

    ADJUSTED RESULTS First Quarter Variance (In millions, except percentages and per share data) 2016 2015 Fav/(Unfav) Operating income 653 612 7% Adjusted income(1) 384 375 2% Other (income) & charges - 9 (100%) includes: FX translation on USD-denominated debt (181) 64 Net interest expense 124 85 (46%)

  14. Slide 14: FX-Adjusted Freight Revenues

    FX-ADJUSTED FREIGHT REVENUES First Quarter Reported Variance FX Adj(1) Variance 2016 2015 Fav/(Unfav) FX Impact Fav/(Unfav) Canadian Grain $254 $256 (1%) $8 (4%) U.S. Grain 113 137 (18%) 17 (27%) Coal 145 160 (9%) 3 (11%) Potash 82 93 (12%) 6 (17%) Fertilizers and sulphur 81 71 14% 5 7% Forest produ

  15. Slide 15: FX-Adjusted Expenses

    FX-ADJUSTED EXPENSES First Quarter Reported Variance FX Adj(1) Variance 2016 2015 Fav/(Unfav) FX Impact Fav/(Unfav) Compensation and benefits $329 $378 13% $12 16% Fuel 125 195 36% 17 41% Materials 56 52 (8%) 3 (2%) Equipment rents 45 42 (7%) 3 - Depreciation and amortization 162 146 (11%) 4 (8%) Pu

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