Canadian National Railway Company · TSX:CNR

Canadian National Railway — Q3 2023 Earnings Presentation

15 slides from Canadian National Railway's earnings presentation, Oct 24, 2023

  1. Slide 1: Third Quarter 2023 Financial and Operating Results

    Third Quarter 2023 Financial and Operating Results October 24, 2023 TSX: CNR NYSE: CNI

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management’s assessment and a

  3. Slide 3: On the call today

    On the call today Tracy Robinson President and CEO Ed Harris Chief Operating Officer Doug MacDonald Chief Marketing Officer Ghislain Houle Chief Financial Officer 3

  4. Slide 4: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  5. Slide 5: Fluid network is well-positioned for volume lift

    Fluid network is well-positioned for volume lift  Evolution of operating structure creates winning conditions to safely and sustainably grow at low incremental cost  Third quarter results impacted by continued weakness in consumer demand, external disruptions and unfavorable fuel surcharge lag  C

  6. Slide 6: Ed Harris

    Ed Harris Chief Operating Officer

  7. Slide 7: Resilient operations in a challenging external environment

    Resilient operations in a challenging external environment  Maintained operational fluidity in the face of West Coast port strike, fires, and floods  Multiple network disruptions stress-tested the Plan – significant improvement in network recoverability  Committed to building and reinforcing safe

  8. Slide 8: Doug MacDonald

    Doug MacDonald Chief Marketing Officer

  9. Slide 9: Strengthening in key markets during the quarter

    Strengthening in key markets during the quarter  Solid customer service enabled supportive environment for rail inflation-plus pricing  Bulk segments continued to outperform, merchandise franchise showing positive momentum, while underlying demand for consumer products remained sluggish  CN-speci

  10. Slide 10: Forecasting sequential improvements across most business lines

    Forecasting sequential improvements across most business lines Merchandise Bulk Consumer Products ↔ Forest Products ↑ Western Canadian Coal ↔ International Intermodal ↑ Metals and Minerals ↔ U.S. Coal ↑ Domestic Intermodal ↑ Petroleum Products ↑ Grain ↑ Automotive ↑ Chemicals and Plastics ↑ Fertiliz

  11. Slide 11: Ghislain Houle

    Ghislain Houle Chief Financial Officer

  12. Slide 12: Transitory headwinds weighed on financial results

    Transitory headwinds weighed on financial results  Q3 EPS impacted by lower consumer-related volumes; external disruptions (-10¢); and unfavorable fuel lag (-10¢ in the quarter, or -20¢ on a year-over-year basis)  Investing in rolling stock, and investing in track infrastructure steadily with a vi

  13. Slide 13: Re-affirming our 2023 financial outlook

    Re-affirming our 2023 financial outlook (1)  Expecting to deliver flat to slightly negative adjusted diluted EPS (1)(2) growth over 2022  Continuing to reward long-term shareholders with 8% growth in dividend for 2023 and executing on our 2023-2024 share repurchase program, with an increased budge

  14. Slide 14: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  15. Slide 15: Primed for the rebound

    Primed for the rebound  The core engine is performing  The Team is in place  Right conditions for margin expansion as volumes lift 15

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