Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific — Q1 2016 Earnings Presentation
15 slides from Canadian Pacific Kansas City's earnings presentation, Apr 20, 2016
Slide 1: Q1 2016 Earnings Review
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
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: E. Hunter Harrison, Chief Executive Officer
Slide 5: Q1 Highlights
Q1 HIGHLIGHTS OPERATING RATIO ADJUSTED DILUTED EPS(1) 58.9% $2.50 430 BP IMPROVEMENT UP 11% Record operating ratio Rewarding shareholders • 5% share buyback program • 43% increase in dividend Record results in a challenging environment (1) For a full description and reconciliation of Non-GAAP
Slide 6: E. Hunter Harrison, Chief Executive Officer
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Slide 7: Operating Performance
OPERATING PERFORMANCE Average network speed Average terminal dwell Fuel efficiency (mph) (hours) (US gallons per 1,000 GTMs) 23.5 8.9 1.048 0.998 6.9 19.5 21% better 22% better 5% better Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Locomotive Average train length Car miles per car day productivity (feet) (mi
Slide 8: Revenue Performance
REVENUE PERFORMANCE FREIGHT REVENUE FX-adjusted revenue variance(1) favorable/(unfavorable) -5% Canadian grain -4% U.S. grain -27% Coal -11% Potash -17% VS Q1 2015 Fertilizers & sulphur 7% Forest products 15% RTMs -5% Chemicals & plastics -1% Freight Revenue per RTM • FX +6% Crude -35% • Fuel -5
Slide 9: E. Hunter Harrison, Chief Executive Officer
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Slide 10: Financial Performance
FINANCIAL PERFORMANCE First Quarter (In millions, except percentages and per share data) 2016 2015 Total revenues $ 1,591 $ 1,665 Total expenses 938 1,053 Compensation and benefits 329 378 Fuel 125 195 Materials 56 52 Equipment rents 45 42 Depreciation and amortization 162 146 Purchased services and
Slide 11: Appendix
Slide 12: Slide 12
Slide 13: Adjusted Results
ADJUSTED RESULTS First Quarter Variance (In millions, except percentages and per share data) 2016 2015 Fav/(Unfav) Operating income 653 612 7% Adjusted income(1) 384 375 2% Other (income) & charges - 9 (100%) includes: FX translation on USD-denominated debt (181) 64 Net interest expense 124 85 (46%)
Slide 14: FX-Adjusted Freight Revenues
FX-ADJUSTED FREIGHT REVENUES First Quarter Reported Variance FX Adj(1) Variance 2016 2015 Fav/(Unfav) FX Impact Fav/(Unfav) Canadian Grain $254 $256 (1%) $8 (4%) U.S. Grain 113 137 (18%) 17 (27%) Coal 145 160 (9%) 3 (11%) Potash 82 93 (12%) 6 (17%) Fertilizers and sulphur 81 71 14% 5 7% Forest produ
Slide 15: FX-Adjusted Expenses
FX-ADJUSTED EXPENSES First Quarter Reported Variance FX Adj(1) Variance 2016 2015 Fav/(Unfav) FX Impact Fav/(Unfav) Compensation and benefits $329 $378 13% $12 16% Fuel 125 195 36% 17 41% Materials 56 52 (8%) 3 (2%) Equipment rents 45 42 (7%) 3 - Depreciation and amortization 162 146 (11%) 4 (8%) Pu