Canadian National Railway Company · TSX:CNR

Canadian National Railway — Q2 2024 Earnings Presentation

17 slides from Canadian National Railway's earnings presentation, Jul 23, 2024

  1. Slide 1: Second Quarter 2024 Financial and Operating Results

    Second Quarter 2024 Financial and Operating Results July 23, 2024 TSX: CNR NYSE: CNI

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements included in this presentation 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 Derek Taylor Chief Field Operating Officer Pat Whitehead Chief Network Operating Officer Remi G. Lalonde Chief Commercial Officer Ghislain Houle Chief Financial Officer 3

  4. Slide 4: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  5. Slide 5: Long-term fundamentals remain intact – challenging Q2

    Long-term fundaments remain intact – challenging Q2  Strong volumes driven by CN-specific growth initiatives and Canadian grain upside  Key Vancouver corridor (shared track directional running zone) experienced record volumes coupled with planned and unplanned maintenance that persisted throughout

  6. Slide 6: Derek Taylor

    Derek Taylor Chief Field Operating Officer

  7. Slide 7: Team continues to deliver industry-leading customer service

    Team continues to deliver industry-leading customer service  Southern and Eastern Regions car velocity exceeded last year; challenges in Western Region had an outsized impact on overall performance  Continued yard efficiency supported mainline operation and near-record local service performance fo

  8. Slide 8: Pat Whitehead

    Pat Whitehead Chief Network Operating Officer

  9. Slide 9: Leaning into the plan

    Leaning into the plan  Journey to zero serious injuries and fatalities continues – increasing field presence, behavior- based training, human factor root cause analysis and real-time near miss reporting with Enablon Go tool  Origin train performance remained strong – the Plan is working  Continue

  10. Slide 10: Remi G. Lalonde

    Remi G. Lalonde Chief Commercial Officer

  11. Slide 11: Strong pricing and volume – late quarter impact from labour uncertainty

    Strong pricing and volume – late quarter impact from labour uncertainty  Strong volumes up to mid-May; customer diversions related to a potential labour disruption, and a pronounced decline of lumber shipments in June  Volume gains focused on Canadian grain and international intermodal due to high

  12. Slide 12: CN initiatives are key drivers for balance of year growth

    CN initiatives are key drivers for balance of year growth Merchandise Petroleum Products Metals and Minerals • Propane exports, Toronto Fuel Distribution facility • Frac sand to Northern BC Chemicals and Plastics Forest Products • Strong market positioning • Lumber demand remaining weak Bulk Grain C

  13. Slide 13: Ghislain Houle

    Ghislain Houle Chief Financial Officer

  14. Slide 14: Earnings growth moderated by temporary cost headwinds and impact of labour uncertainty

    Earnings growth moderated by temporary cost headwinds and impact of labour uncertainty  Q2 adjusted diluted EPS of $1.84, up 5% versus 2023, which excludes the loss on the transfer of the Quebec Bridge to the Federal Government  Operating leverage hindered by additional labour costs and 130 bps ne

  15. Slide 15: Revising 2024 financial outlook

    Revising 2024 financial outlook (1)  Revising outlook: targeting to deliver adjusted diluted EPS (2) growth in the mid to high single- digit range versus 2023  Assumes no rail or port labour disruption and RTM growth in the range of 3%-5%  CAPEX on track with guidance; adjusted ROIC revised to ~1

  16. Slide 16: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  17. Slide 17: Long term game plan unchanged

    Long term game plan unchanged  Run a safe, scheduled railroad  Provide the service our customers need to win in their marketplace  Grow faster than the economy and price ahead of rail inflation  Drive incremental efficiency  Consistent approach to capital allocation Deliver sustainable value fo

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