Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — Q2 2017 Earnings Presentation
14 slides from Canadian Pacific Kansas City's earnings presentation, Jul 19, 2017
Slide 1: Q2 2017 Earnings Review
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
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
Slide 4: Keith Creel, President & CEO
KEITH CREEL PRESIDENT & CEO
Slide 5: Q2 Highlights
Q2 HIGHLIGHTS RECORD EARNINGS DRIVEN BY REVENUE GROWTH AND COST CONTROL $1.64 Revenues $1.45 ($ billions) Impressive quarter with record financial performance +13% 2Q17 2Q16 Continued margin $679 improvements through Operating Income $551 ($ millions) disciplined cost control +23% 2Q17 2Q16 St
Slide 6: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER cP
Slide 7: Revenue Performance
REVENUE PERFORMANCE TOTAL REVENUE FX-adjusted revenue variance(1) +13% Grain 18% Coal 10% Potash 35% VS Q2 2016 Fertilizers & sulphur -7% Forest products -7% RTMs: +12% Energy, chemicals & plastics 12% Freight Revenue per RTM: +1% -71% • FX: +2% Metals, minerals, consumer 31% • Fuel: +2% Automot
Slide 8: Nadeem Velani, Chief Financial Officer
Slide 9: Financial Performance
FINANCIAL PERFORMANCE Second Quarter FX-Adjusted (In millions, except percentages and per share data) 2017 2016 Change % Change % (1) Total revenues $ 1,643 $ 1,450 13 11 Operating expenses Compensation and benefits 277 284 (2) (4) Fuel 160 131 22 19 Materials 48 38 26 23 Equipment rents 37 44 (16)
Slide 10: Free Cash
FREE CASH For six months ended June 30 (in millions) 2017 2016 Cash provided by operating activities $922 $730 Capital expenditures (576) (608) Proceeds from sale of properties & other assets 16 71 Other 5 (2) Cash used in investing activities (555) (539) Effect of FX on USD-denominated cash & cash
Slide 11: Keith Creel, President & CEO
KEITH CREEL PRESIDENT & CEO
Slide 12: Appendix
APPENDIX
Slide 13: Key Modeling Sensitivities
KEY MODELING SENSITIVITIES Key sensitivities Foreign exchange rate* For every $0.01 decline in the Canadian dollar: • Revenues increase by approximately $26 million • Expenses increase by approximately $13 million • Interest expense increases by approximately $3 million *Sensitivities are quoted on
Slide 14: Investor Relations Contacts
MAEGHAN ALBISTON ASSISTANT VICE PRESIDENT INVESTOR RELATIONS ANDREW ELFORD DIRECTOR INVESTOR RELATIONS 403-319-3591 [email protected]