Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Q1 2023 Earnings Presentation
18 slides from Canadian Pacific Kansas City's earnings presentation, Apr 26, 2023
Slide 1: Q1 2023 Earnings Review
aaa ee nese Q1 2023 EARNINGS REVIEW APRIL 26, 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation may contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements concerni
Slide 3: Basis of Presentation & Non-GAAP Measures
BASIS OF PRESENTATION & NON-GAAP MEASURES BASIS OF PRESENTATION 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. Fi
Slide 4: Keith Creel, President & Chief Executive Officer
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 5: Highlights
HIGHLIGHTS Continued best-in-class safety record Solid financial and operating results Strong progress with newly ratified labor agreements Celebrated first day as CPKC on April 14; quickly building momentum ; g°6 Siew onizans Excited to share further progress updates at our investor day on June 27
Slide 6: John Brooks, Chief Marketing Officer
- wa 8201 8201? JOHN BROOKS CHIEF MARKETING OFFICER
Slide 7: Volume growth by business line
37% 11% 22% 19% 13% • 13% • 23% • 32% 8% •
Slide 8: Bulk, Merchandise and Intermodal commentary
BULK: 41% MERCHANDISE: 37% INTERMODAL: 22% • Record-breaking January of 2.3 million • Significant volume growth driven by • Self-help wins with CMA CGM and metric tonnes of Canadian grain and the plastics portfolio growth at the Port of Saint John offset grain products softer demand in the base busi
Slide 9: Nadeem Velani
ak NADEEM VELANI
Slide 10: Financial Performance - Q1
FINANCIAL PERFORMANCE - Q1 First Quarter FX Adjusted (in millions, except percentages and per share data) 2023 2022 Change % Change%1) Total revenues $ 2,266 $ 1,838 23% 19% Total operating expenses 1,437 1,303 10% 7% Operating income 829 535 55% 47% Adjusted operating income 841 555 52% Net income
Slide 11: Operating Expenses - Q1
OPERATING EXPENSES - Q1 (in millions, except percentages) Compensation and benefits Fuel Materials Equipment rents Depreciation and amortization Purchased services and other?) Total operating expenses First Quarter Adjusted 2023 2022 Change %_Change%() 438 413 6% 4% 326 273 19% 13% 72 62 16% 14% 30
Slide 12: Free Cash, Returns and Leverage
For the three months ended March 31 (in millions of Canadian dollars) 2023 2022 Cash provided by operating activities $ 881 $ 613 Cash used in investing activities (401) (206) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents 4 — Less: Acquisition-related c
Slide 13: Keith Creel, President & Chief Executive Officer
KEITH CREEL PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 14: Investor Relations
INVESTOR RELATIONS CONTACTS MAEGHAN ALBISTON Vice-President CHRIS DE BRUYN Assistant Vice-President ASHLEY THORNE Managing Director 403-319-3591 investor@cpkcr.com
Slide 15: Appendix
2045" “4 42 fia APPENDIX
Slide 16: Below the Line - Q1
BELOW THE LINE - Q1 First Quarter (in millions, except percentages) 2023 2022 Change % Equity earnings of Kansas City Southern" $ (204) $ (198) 3% Other expense (income) 2 (1) (300) % Other components of net periodic benefit recovery (86) (101) (15)% Net interest expense 154 160 (4)% Income tax expe
Slide 17: KCS First Quarter Results
KCS FIRST QUARTER RESULTS Q1 2023 Q1 2022 Change % Carloads/Units (in thousands) 584.5 575.2 +2% Revenues (in millions, $ USD) $877.3 $778.2 +13% Reported Operating Ratio (percent) 65.6% 62.6% +300 bps Adjusted Operating Ratio") (percent) 64.6% 60.9% +370 bps (1) Fora full description and reconcilia
Slide 18: Flat 3% Improvement 3% Improvement
Flat 3% Improvement 3% Improvement 2% Improvement 10% Improvement 6% Improvement
Canadian Pacific Kansas City — Q1 2023 Earnings Presentation on 6ix