Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — Q2 2018 Earnings Presentation
13 slides from Canadian Pacific Kansas City's earnings presentation, Jul 18, 2018
Slide 1: Q2 2018 Earnings Review
Q2 2018 EARNINGS REVIEW JULY 18, 2018 cP
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking market demand; inflation; changes in laws and regulations, including information within the meaning of applicable securities laws relating, but regulation of rates; changes in taxes and tax rates; potenti
Slide 3: Note on Non-GAAP Measures and Restated Financials
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 Financial information is prepared in accordance with accounting U.S. G
Slide 4: Keith Creel, President & Chief Executive Officer
Slide 5: Highlights
HIGHLIGHTS Q2 2018 VS. Q2 2017 Delivered solid results in spite of labour Revenues disruptions $1.75 billion +7% New labour agreements with TCRC and Operating Ratio IBEW provide win-win solutions 64.2% + 140 bps Changes to Canadian Transportation Act Diluted EPS (Bill C-49) enable hopper inves
Slide 6: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER cP
Slide 7: Revenue Performance
REVENUE PERFORMANCE TOTAL REVENUE FX-adjusted revenue variance(1) +7% VS Q2 2017 Grain Coal Potash -1% 4% 8% Fertilizers & sulphur -18% Forest products 5% • RTMs: +4% Energy, chemicals & plastics 33% -71% • FX: -2% Metals, minerals, consumer 10% • Fuel: +3% Automotive 21% • Price/mix: +2% Intermodal
Slide 8: Q2 Revenue Performance
Q2 REVENUE PERFORMANCE BULK MERCHANDISE INTERMODAL Freight Revenue Freight Revenue Freight Revenue 2% 20% 8% (FX-adj.)* (FX-adj.)* (FX-adj.)* RTMs -3% RTMs 19% RTMs 6% Freight Revenue Freight Revenue Freight Revenue 5% 1% 2% per RTM (FX-adj.)* per RTM (FX-adj.)* per RTM (FX-adj.)* • Canadian grain d
Slide 9: Nadeem Velani, Chief Financial Officer
Paacipig\ i). a2 iherey NADEEM VELANI CHIEF FINANCIAL OFFICER cP
Slide 10: Financial Performance
FINANCIAL PERFORMANCE (In millions, except percentages and Second Quarter FX adjusted per share data) 2018 2017 Change % Change % (1) Total revenues $ 1,750 $ 1,643 7% 9% Operating expenses: Compensation and benefits 351 345 2% 3% Fuel 230 160 44 % 48 % Materials 53 48 10 % 10 % Equipment rents 33 3
Slide 11: Free Cash Flow
FREE CASH For the six months ended June 30 (in millions) 2018 2017 Cash provided by operating activities $1,108 $922 Capital expenditures (654) (576) Other property and asset sales 9 16 Other (1) 5 Cash used in investing activities (646) (555) Effect of FX on USD-denominated cash & cash equivalents
Slide 12: Built to drive sustainable, profitable growth
Built to drive sustainable, profitable growth. Contact CP’s IR team for more details investor@cpr.ca
Slide 13: Investor Relations contacts
MAEGHAN ALBISTON ASSISTANT VICE PRESIDENT INVESTOR RELATIONS ANDREW ELFORD DIRECTOR INVESTOR RELATIONS 403-319-3591 investor@cpr.ca investor.cpr.ca cP