Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — Q2 2014 Earnings Presentation
16 slides from Canadian Pacific Kansas City's earnings presentation, Jul 17, 2014
Slide 1: Q2 2014 Earnings Review
Q2 2014 EARNINGS REVIEW JULY 17, 2014
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking litigation; labour disputes; risks and liabilities arising from derailments; information within the meaning of applicable securities laws relating, but not transportation of dangerous goods; timing of com
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 U.S. Financial statements are prepared in accordance with accounting p
Slide 4: E. Hunter Harrison, CEO
E. HUNTER HARRISON CEO
Slide 5: Q2 Highlights
Q2 HIGHLIGHTS OPERATING RATIO EARNINGS PER SHARE 65.1% 680 BP IMPROVEMENT $2.11 48% INCREASE Record quarter on all accounts Southern corridor remains challenged Demand environment is strong Rewarding shareholders through buyback 5
Slide 6: Keith Creel, President & COO
KEITH CREEL PRESIDENT & COO
Slide 7: Q2 Operating Performance
Q2 OPERATING PERFORMANCE Train Length Train Weight (Feet) (Tons) 6,880 8,178 7% 9% 6,444 improvement 7,471 improvement Q2'13 Q2'14 Q2'13 Q2'14 Fuel Efficiency Train accident frequency (US Gallons per 1,000 GTMs) (Accidents per million train-miles) 1.05 1.94 1.00 5% 47% improvement 1.03 improvement Q
Slide 8: Q2 Revenue Performance
Q2 REVENUE PERFORMANCE FX-adjusted variance(1) TOTAL REVENUES favorable/(unfavorable) +12% Canadian Grain 29% US Grain 17% Coal 13% Potash 3% VS Q2 2013 Fertilizers & sulphur (11%) Forest products (7%) Chemicals & plastics ▲ RTMs up 7% 5% ▲ Revenue per RTM up 5% Crude 10% Metals & Minerals 12% ▲ Car
Slide 9: Bart Demosky, EVP & CFO
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Slide 10: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Variance In millions, except percentages and per share data Fav/ (Unfav) 2014 2013 Reported FX Adj(1) Total revenues $ 1,681 $ 1,497 12% 8% Total operating expenses 1,094 1,077 (2%) 2% Operating income 587 420 40% 33% Other charges 3 8 63% Net interest expense 69 68 (1%) Inco
Slide 11: Free Cash
FREE CASH For six months in millions ended June 30th 2014 2013 Cash from operating activities $ 932 $ 787 Capital expenditures (522) (504) Proceeds from the sale of properties 16 27 Proceeds from the sale of the DM&E West 236 - Change in restricted cash & cash equivalents 9 (99) Other (1) (26) Cash
Slide 12: E. Hunter Harrison, CEO
E. HUNTER HARRISON CEO
Slide 13: Summary
SUMMARY Strong first half performance Positioned for growth Investor Day – October 1 & 2 13
Slide 14: Contacts
CONTACTS AVP, Investor Relations Nadeem_Velani@cpr.ca Director, Investor Relations Maeghan_Albiston@cpr.ca Phone: (403) 319-3591
Slide 15: Appendix: Change to Revenue & Expense Presentation
APPENDIX: CHANGE TO REVENUE & EXPENSE PRESENTATION(1) Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 2014 2013 2013 2013 2013 2013 2012 2012 2012 2012 2012 Freight Revenues (millions) Canadian Grain 221 869 263 212 191 203 767 219 186 160 202 U.S. Grain 106 431 122 107 91 111 405 136 110 73 86 Coal 148 627 157 17
Slide 16: Appendix: Foreign Exchange Impact
APPENDIX: FOREIGN EXCHANGE IMPACT Quarterly Variance Fav/(Unfav) Reported FX adjusted(1) Canadian Grain 32% 29% U.S. Grain 26% 17% Coal 15% 13% Potash 6% 3% Fertilizers & Sulphur (6%) (11%) Forest products (2%) (7%) Chemicals & Plastics 12% 5% Crude 18% 10% Metals, Minerals & Consumer Products 18% 1