Canadian National Railway Company · TSX:CNR
Canadian National Railway — Q4 2009 Earnings Presentation
19 slides from Canadian National Railway's earnings presentation, Jan 26, 2010
Slide 1: Fourth Quarter & Year End 2009 Financial Results
Fourth Quarter & Year End 2009 Financial Results January 26, 2010
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The financial results in this presentation were determined on With these assumptions, CN is targeting carload growth in the the basis of U.S. GAAP. Please refer to the website high-single-digit range, along with pricing improvement of www.cn.ca for the reconciliation of ce
Slide 3: Claude Mongeau
Claude Mongeau PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 4: Q4 Highlights
Q4 Highlights Reported diluted EPS of C$1.23 - Adjusted diluted EPS of C$0.901 Revenues down 14% Operating ratio 65.3% YTD Free cash flow C$790M - Dividend increase of 7% - Share buyback program of up to 15M shares Solid finish in a difficult environment 1 Please see website, www.cn.ca/nonGAAP, for
Slide 5: CN Leadership Team
CN Leadership Team Claude Mongeau President and Chief Executive Officer Keith Creel Executive Vice-President and Chief Operating Officer Luc Jobin Executive Vice-President and Chief Financial Officer Jean-Jacques Ruest Executive Vice-President and Chief Marketing Officer Sean Finn Executive Vice-Pre
Slide 6: Keith Creel
Keith Creel EXECUTIVE VICE-PRESIDENT AND CHIEF OPERATING OFFICER
Slide 7: Q4 Operational Highlights
Q4 Operational Highlights GTM’s per train mile Cars per yard switching hour Terminal Dwell 7805 (entire railroad, hours) 37.5 7297 7196 8.6 8.4 8.0 31.0 29.2 8% 21% better better 5% worse Q4-07 Q4-08 Q4-09 Q4-07 Q4-08 Q4-09 Q4-07 Q4-08 Q4-09 Mainline GTM’s per Car miles per day Train Velocity (mph)
Slide 8: Operational Overview
Operational Overview Making productivity gains permanent Continue the integration of the EJ&E Remain focused on safety Well positioned for the economic recovery 8
Slide 9: Jean-Jacques Ruest
Jean-Jacques Ruest EXECUTIVE VICE-PRESIDENT AND CHIEF MARKETING OFFICER
Slide 10: Q4 Revenues
Q4 Revenues millions of Canadian dollars, unless otherwise indicated EXCHANGE AS REPORTED ADJUSTED % % Change Change Favorable Favorable 2009 2008 (Unfavorable) (Unfavorable) Petroleum and chemicals $ 302 $ 359 (16%) (8%) Metals and minerals 189 237 (20%) (12%) Forest products 271 366 (26%) (18%) Co
Slide 11: 2010 Revenue Outlook
2010 Revenue Outlook Merchandise Bulk Intermodal - Increase in North American - Improvements in Canadian - Sequential improvements in industrial production grain export program and international volumes at record U.S. corn and soybean Vancouver and continued - Improvements in housing crops growth at
Slide 12: Luc Jobin
Luc Jobin EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER
Slide 13: Q4 Results
Q4 Results millions of Canadian dollars, except EPS data, unless otherwise indicated Change Favorable 2009 2008 (Unfavorable) Revenues $ 1,882 $ 2,200 (14%) Expenses 1,229 1,380 Operating income 653 820 (20%) Interest expense (95) (110) Other income 76 19 Income before income taxes 634 729 Income ta
Slide 14: Q4 Expenses
Q4 Expenses millions of Canadian dollars, unless otherwise indicated EXCHANGE AS REPORTED ADJUSTED % % Change Change Favorable Favorable 2009 2008 (Unfavorable) (Unfavorable) Labor and fringe benefits $ 413 $ 397 (4%) (9%) Purchased services and material 256 301 15% 9% Fuel 221 304 27% 18% Depreciat
Slide 15: Full-Year Free Cash Flow
Full-Year Free Cash Flow millions of Canadian dollars, unless otherwise indicated Net income $ 1,854 Non-cash adjustments 702 Payments for income taxes (245) Other working capital items (1) 36 Capital expenditures (net) (1,402) Proceeds on rail-line sales 231 Other investing (excluding major acquisi
Slide 16: 2010 Financial Outlook
2010 Financial Outlook Gradual economic recovery - High single-digit carload growth - Pricing around 4% year-over-year Still facing headwinds - Canadian dollar - Depreciation and casualty expenses Aiming for double-digit growth in adjusted EPS Free cash flow – C$700M range Strong shareholder value f
Slide 17: Claude Mongeau
Claude Mongeau PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 18: Build on a Strong Legacy
Build on a Strong Legacy Continue to drive operational excellence Reach out for new opportunities to grow Aligned with our customers and key stakeholders Bring our game to the next level 18
Slide 19: i DN
i DN www.cn.ca/investors
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