Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific Railway — Q3 2018 Earnings Presentation
12 slides from Canadian Pacific Kansas City's earnings presentation, Oct 18, 2018
Slide 1: Q3 2018 Earnings Review
Q3 2018 EARNINGS REVIEW OCTOBER 18, 2018
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The following investor presentation contains certain forward-looking the effects of competition and pricing pressures; industry capacity; shifts information within the meaning of applicable securities laws relating, but in market demand; inflation; changes in laws and regu
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 Q3 2018 VS. Q3 2017 Record results by nearly every measure Revenues $1.9 billion +19% Demand environment continues to be strong Operating Ratio Applied for new 4% NCIB program 58.3% - 270 bps ‒ Taking an opportunistic approach to rewarding shareholders Diluted EPS $4.35 24% Adjusted
Slide 6: John Brooks
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Slide 7: Revenue Performance
REVENUE PERFORMANCE TOTAL REVENUE FX-adjusted revenue variance(1) +19% VS Q3 2017 Grain Coal Potash 4% 7% 24% Fertilizers & sulphur 2% Forest products 12% • RTMs: +13% Energy, chemicals & plastics 58% -71% • FX: +2% Metals, minerals, consumer 5% • Fuel: +4% Automotive 20% • Price/mix: flat Intermoda
Slide 8: Q3 Revenue Performance
Q3 REVENUE PERFORMANCE BULK MERCHANDISE INTERMODAL Freight Revenue Freight Revenue Freight Revenue (FX-adj.)* 8% (FX-adj.)* 28% (FX-adj.)* 18% RTMs 5% RTMs 27% RTMs 14% Freight Revenue 3% Freight Revenue 1% Freight Revenue 3% per RTM (FX-adj.)* per RTM (FX-adj.)* per RTM (FX-adj.)* • Remainder of ye
Slide 9: Nadeem Velani, Chief Financial Officer
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Slide 10: Financial Performance
FINANCIAL PERFORMANCE (In millions, except percentages and Third Quarter FX adjusted per share data) 2018 2017 Change % Change % (1) Total revenues $ 1,898 1,595 19% 17 % Compensation and benefits 365 324 13% 11 % Fuel 226 150 51% 46 % Materials 47 45 4% 4% Equipment rents 33 35 (6%) (11%) Depreciat
Slide 11: Free Cash Flow
FREE CASH For the nine months ended September 30 (in millions) 2018 2017 Cash provided by operating activities $1,781 $1,449 Capital expenditures (1,084) (895) Other property and asset sales 16 29 Other (1) 5 Cash used in investing activities (1,069) (861) Effect of FX on USD-denominated cash & cash
Slide 12: 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 Railway — Q3 2018 Earnings Presentation on 6ix