Canadian National Railway Company · TSX:CNR

Canadian National Railway — Q1 2023 Earnings Presentation

15 slides from Canadian National Railway's earnings presentation, Apr 24, 2023

  1. Slide 1: First Quarter 2023 Financial and Operating Results

    First Quarter 2023 Financial and Operating Results April 24, 2023 TSX: CNR NYSE: CNI

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management’s assessment and a

  3. Slide 3: On the call today

    On the call today Tracy Robinson President and CEO Ed Harris Chief Operating Officer Doug MacDonald Chief Marketing Officer Ghislain Houle Chief Financial Officer 3

  4. Slide 4: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  5. Slide 5: Strong start to the year – Updating our financial outlook

    Strong start to the year – Updating our financial outlook (1)  Diluted EPS of $1.82, an increase of 38% on an adjusted basis (2), driven by disciplined scheduled operations against Canadian winter conditions  Operating ratio of 61.5%, an improvement of 510bps on an adjusted basis (2), the outcome

  6. Slide 6: Ed Harris

    Ed Harris Chief Operating Officer

  7. Slide 7: Q1 Operating highlights – Continuing to advance our scheduled operations

    Q1 Operating highlights – Continuing to advance our scheduled operations Driving operational efficiencies and building resiliency  Solid safety improvement – safety at the heart of everything we do  Running to the plan – Origin Train Performance of 86% in Q1, up 39% from Q1 2022 (1)  Approaching

  8. Slide 8: Doug MacDonald

    Doug MacDonald Chief Marketing Officer

  9. Slide 9: Q1 Top-line performance driven by bulk segment

    Q1 Top-line performance driven by bulk segment  Strong bulk shipments (Canadian grain and coal) partly offset by weakness in consumer-driven markets (intermodal, lumber, chemicals and plastics)  Pricing on contract renewals remains above rail inflation  Movement of top-5 Canadian Grain crop suppo

  10. Slide 10: Demand signaling a mild recession

    Demand signaling a mild recession Merchandise Bulk Consumer Products ↔ Forest Products ↑ Western Canadian Coal ↓ International Intermodal ↓ Metals and Minerals ↑ U.S. Coal ↓ Domestic Intermodal ↔ Petroleum Products ↑ Grain ↔ Automotive ↓ Chemicals and Plastics ↔ Fertilizers 10

  11. Slide 11: Ghislain Houle

    Ghislain Houle Chief Financial Officer

  12. Slide 12: Q1 financial results - driving top-line to the bottom line

    Q1 financial results - driving top-line to the bottom line  Operating income up 34% on an adjusted basis, demonstrating strength and resiliency of the network  Earnings growth of 38% on an adjusted basis, with 16% revenue growth and solid operating execution  Free cash flow of nearly $600M in the

  13. Slide 13: Updating our 2023 financial outlook

    Updating our 2023 financial outlook (1)  Now expecting to deliver mid-single digit adjusted diluted EPS (1)(2) growth over 2022, versus low single- digit previously  North American industrial production still assumed to be negative in 2023  Continue to reward long-term shareholders: o 8% growth i

  14. Slide 14: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

  15. Slide 15: May 2-3 Investor Day

    May 2-3 Investor Day ACCELERATING SUSTAINABLE PROFITABLE GROWTH www.cn.ca/investors 15

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