Canadian National Railway Company · TSX:CNR
Canadian National Railway — Q4 2022 Earnings Presentation
16 slides from Canadian National Railway's earnings presentation, Jan 24, 2023
Slide 1: Fourth Quarter and Full Year 2022 Financial and Operating Results
Fourth Quarter and Full Year 2022 Financial and Operating Results January 24, 2023 TSX: CNR NYSE: CNI
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
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
Slide 4: Tracy Robinson
Tracy Robinson President and Chief Executive Officer
Slide 5: Delivered on our Plan in 2022
Delivered on our Plan in 2022 Achieved 2022 full year financial guidance, driven by renewed focus on running an integrated scheduled plan Continuing to leverage full alignment and commitment across the organization Expecting EPS to grow in 2023 Q4 2022 Full year 2022 Full year 2023 (2)(3) Adj.
Slide 6: Ed Harris
Ed Harris Chief Operating Officer
Slide 7: Scheduled operation delivered performance and resilience
Scheduled operation delivered performance and resilience Rapid recovery following operating challenges in December The focus on Origin Train Performance drove fluidity across the network Running the plan resulted in a 10% improvement in car velocity Our unwavering commitment to safety reduced
Slide 8: Doug MacDonald
Doug MacDonald Chief Marketing Officer
Slide 9: Solid top line performance in Q4
Solid top line performance in Q4 Solid bulk volumes offset weakness in Merchandise and Consumer Products segments Disciplined approach to pricing led to rail-inflation-plus pricing on renewals Softness from economic slowdown deepened in some markets: intermodal, lumber, chemicals, plastics Q4
Slide 10: Softening demand outlook into 2023
Softening demand outlook into 2023 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 ↔ Fertilizers 10
Slide 11: Ghislain Houle
Ghislain Houle Chief Financial Officer
Slide 12: Drove top line growth to the bottom line in the fourth quarter
Drove top line growth to the bottom line in the fourth quarter Financial results highlighted the strength and resiliency of our franchise Operating income increased nearly $335M, or 21%, on an adjusted basis (1) Solid operating ratio resulted from top line growth and an efficient operation D
Slide 13: Achieved our 2022 full year guidance
Achieved our 2022 full year guidance Full year adjusted diluted EPS (1) growth of 25% was aligned with our guidance, and the output of running a scheduled railroad with a focus on velocity Full year Free Cash Flow (1) of nearly $4.3B exceeded our guidance 2022 adjusted ROIC (1) of 15.9% also e
Slide 14: 2023 financial outlook
2023 financial outlook (1) We expect to deliver low single-digit adjusted diluted EPS growth by focusing on growing with our customers, driving further operating efficiencies and pricing above rail-inflation North American industrial production assumed to be negative in 2023 CN continues to re
Slide 15: Tracy Robinson
Tracy Robinson President and Chief Executive Officer
Slide 16: Looking to 2023 and beyond
Looking to 2023 and beyond Rebuilding the organization to drive profitable growth into the future • Deepen the commitment to our plan • Work with our customers to drive long-term profitable growth • Remain committed to our safety objective of achieving zero fatalities and serious injuries • Drive in
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