Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — BB&T Capital Markets 2015 Transportation Services Conference
10 slides from Canadian Pacific Kansas City's conference presentation, Feb 11, 2015
Slide 1: Keith Creel, President & COO
A Kéith Creel President& COO = February 11, 2015
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: Driving Asset Velocity
DRIVING ASSET VELOCITY Train Length Train Weight Q4: 2% better Q4: 6% better (feet) FY: 2% better (tons) FY: 6% better 6819 8281 8046 6668 6683 7844 6530 7573 Q4'13 Q4'14 FY 13 FY 14 Q4'13 Q4'14 FY 13 FY 14 Train Speed Q4: 10% better Fuel Efficiency Q4: 3% better (miles per hour) FY: 2% decline (US
Slide 5: Reinvesting in the Network
REINVESTING IN THE NETWORK Capital Breakdown 2015E (percent of revenues) Basic Replacement 11% 2% Siding & Yards 5% Rolling Stock 6% Information $1.5 48% Technology Regulatory 14% CTC 14% Other
Slide 6: Diversified Book of Business
DIVERSIFIED BOOK OF BUSINESS • Targeting 7 to 8% revenue growth in 2015(1) 3 to 4% RTM growth 3 to 4% price • Benefiting from a weaker Canadian dollar (1) Assumes a CAD/USD exchange rate of 1.20
Slide 7: A Service Driven Organization
A SERVICE DRIVEN ORGANIZATION • Tim Marsh - new SVP Marketing & Sales • Sales-focused team • Timely decision making • Increased face-to-face customer interaction • Accountability
Slide 8: Financial Improvements
FINANCIAL IMPROVEMENTS Adjusted Operating 2014 vs 2013: 2014 vs 2013: 520 bp improvement Free Cash Flow 37% improvement Ratio (percent) ($ millions) 77.0 69.9 725 64.7 530 93 2012 2013 2014 2012 2013 2014 2014 vs 2013: Targeted range: Adjusted Earnings Adjusted Debt to EBITDA 32% improvement 2x to 2
Slide 9: Continued Earnings Momentum
CONTINUED EARNINGS MOMENTUM 2015E Earnings Growth (based on adjusted EPS) 30% Guidance: 25%+ 20% 10% CN UP NS CSX CP 0% Source: Bloomberg consensus CP guidance of 25%+ does not assume additional share buybacks beyond current NCIB program expiring in March 2015
Slide 10: foo
foo en m Velani gs one: (403) 319-3591 AVP Investor Relations _~ email: [email protected] Maeghan Albiston Director, Investor Relations
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