Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q2 2020 Earnings Presentation
14 slides from Canadian Pacific Kansas City's earnings presentation, Jul 22, 2020
Slide 1: 2020 Earnings Review
02 2020 EARNINGS REVIEW JULY 22, 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited to, statements concerning 2020 volume including as measured in revenue ton-miles, adjusted diluted EPS growth, capita
Slide 3: Note on Non-GAAP Measures
NOTE ON NON-GAAP MEASURES Except where noted, all figures are in millions of Canadian dollars. Financial information is prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), unless otherwise noted. CP presents Non-GAAP measures in this pr
Slide 4: Keith Creel
KEITH CREEL
Slide 5: Highlights Q2
HIGHLIGHTS Q2 Revenues • Proud of CP family for continued industry leading $1.8 billion | -9% performance • Strong operating performance drove record Q2 OR & Operating Income operating metrics $770 million | -6% • Following through on our financial commitments Operating Ratio • Increased dividend ~1
Slide 6: Operating Performance
OPERATING PERFORMANCE Average train weight Average train length Average terminal dwell (tons) (feet) (hours) 8,089 6.5 6.4 9,984 7,523 9,295 7% improvement 8% improvement 2% worse Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Locomotive Productivity Average train speed Fuel efficiency (Gross ton-miles / Opera
Slide 7: John Brooks
JOHN BROOKS
Slide 8: Revenue Highlights – Q2
REVENUE HIGHLIGHTS – Q2 FX-adjusted revenue variance(1) TOTAL REVENUE -9% Grain 3% Coal -24% Potash 5% VS Q2 2019 Fertilizers & sulphur 20% Forest products 0% Energy, chemicals & plastics -3% • RTMs: -10% Metals, minerals & consumer -37% • FX: +2% Automotive -68% • Fuel: -3% Intermodal -11% • Price
Slide 9: Lines of Business
LINES OF BUSINESS BULK: 40% MERCHANDISE: 39% INTERMODAL: 21% • Three consecutive record • Merchandise segments • International intermodal quarters for Canadian hardest hit by the exceeded expectations grain across all metrics; pandemic and key domestic outlook remains strong customers demonstrated •
Slide 10: ee
ee
Slide 11: Financial Performance – Q2
FINANCIAL PERFORMANCE – Q2 Second Quarter FX Adjusted (in millions, except percentages and per share data) 2020 2019 Change % Change%(1) Total revenues $ 1,792 $ 1,977 (9)% (11)% Compensation and benefits 347 383 (9)% (11)% Fuel 131 236 (44)% (46)% Materials 50 54 (7)% (7)% Equipment rents 33 34 (3)
Slide 12: Free Cash
FREE CASH For the six months ended June 30 (in millions) 2020 2019 Cash provided by operating activities $ 1,324 $ 1,134 Capital expenditures (857) (683) Investment in Central Maine & Quebec Railway 19 - Other property and asset sales 7 14 Other 1) (5) Cash used in investing activities (830) (674) E
Slide 13: For a full description and reconciliation of Non-GAAP Measures, see CP’s CP’s expectation for
• • • (1) For a full description and reconciliation of Non-GAAP Measures, see CP’s Q2 2020 Earnings Release on investor.cpr.ca (2) CP’s expectation for adjusted diluted EPS growth in 2020 is based on 2019’s adjusted diluted EPS of $16.44.
Slide 14: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS MAEGHAN ALBISTON Assistant Vice-President CHRIS DE BRUYN Director 403-319-3591 investor@cpr.ca investor.cpr.ca =e
Canadian Pacific Kansas City — Q2 2020 Earnings Presentation on 6ix