Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q1 2020 Earnings Presentation
14 slides from Canadian Pacific Kansas City's earnings presentation, Apr 21, 2020
Slide 1: Q1 2020 Earnings Review
: CANADIAN - ~~ PACs IF Its Q1 2020 EARNINGS REVIEW *) APRIL 21, 2020 cP
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 Canadian Pacific’s operations, priorities and plans, anticipated financial and operational performance, including
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, President & Chief Executive Officer
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 5: Highlights
HIGHLIGHTS • Thank you to the CP family for delivering record results and providing a vital essential service • PSR performs in any economic cycle • Ability to adapt resources and costs rapidly • Proven team of railroaders • Strong balance sheet and liquidity • Team focused on turning challenges int
Slide 6: Operating Performance
OPERATING PERFORMANCE Average train speed Average train length Average terminal dwell (miles per hour) (feet) (hours) 7,409 7,165 21.6 21.1 7.9 6.2 2% improvement 3% improvement 22% improvement Q1'20 Q1'19 Q1'20 Q1'19 Q1'20 Q1'19 Average train weight FRA train accident frequency FRA personal injurie
Slide 7: John Brooks, Chief Marketing Officer
JOHN BROOKS CHIEF MARKETING OFFICER cP
Slide 8: Revenue Highlights – Q1
REVENUE HIGHLIGHTS – Q1 FX-adjusted revenue variance(1) TOTAL REVENUE +16% Grain 10% Coal -5% Potash -2% VS Q1 2019 Fertilizers & sulphur 21% Forest products 7% Energy, chemicals & plastics 55% • RTMs: +9% Metals, minerals & consumer 9% • $ per Revenue Ton Mile (“RTM”): +6% Automotive 13% • Carloads
Slide 9: Lines of Business
LINES OF BUSINESS BULK: 40% MERCHANDISE: 39% INTERMODAL: 21% • Record quarter for • Crude volumes expected • Record quarter for Canadian grain across all to decline due to low domestic intermodal; near metrics; outlook remains energy prices and the term volume weakness strong global slowdown anticip
Slide 10: Adeem Velani, Chief Financial Officer
<a / ADEEM VELANI CHIEF FINANCIAL OFFICER
Slide 11: Financial Performance – Q1
FINANCIAL PERFORMANCE – Q1 First Quarter FX Adjusted (in millions, except percentages and per share data) 2020 2019 Change % Change(1) % Total revenues $ 2,043 $ 1,767 16% 15% Compensation and benefits 398 406 (2)% (2)% Fuel 212 209 1% —% Materials 59 57 4% 4% Equipment rents 36 35 3% 3% Depreciatio
Slide 12: Free Cash
FREE CASH For the three months ended March 31 (in millions) 2020 2019 Cash provided by operating activities $ 489 $ 413 Capital expenditures (355) (224) Other property and asset sales 2 6 Other (9) (1) Cash used in investing activities (362) (219) Effect of FX on USD-denominated cash & cash equivale
Slide 13: Financial Flexibility
FINANCIAL FLEXIBILITY • Upsized our credit facility in 2019 and have capacity to Liquidity further increase it, if required • $1.9 billion available liquidity • Recent debt issuances had the lowest ever coupon Debt rates for 10-year USD and 30-year CAD BBB issuances • Paid down virtually all short t
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
Canadian Pacific Kansas City — Q1 2020 Earnings Presentation on 6ix