Canadian National Railway Company · TSX:CNR

Canadian National Railway — Q3 2022 Earnings Presentation

17 slides from Canadian National Railway's earnings presentation, Oct 25, 2022

  1. Slide 1: Third Quarter 2022 Financial and Operating Results

    Third Quarter 2022 Financial and Operating Results October 25, 2022 TSX: CNR NYSE: CNI

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements included in this presentation 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 Rob Reilly Chief Operating Officer Doug MacDonald Chief Marketing Officer Ghislain Houle Chief Financial Officer 3

  4. Slide 4: Tracy Robinson, President and Chief Executive Officer

    Tracy Robinson President and Chief Executive Officer

  5. Slide 5: Solid execution driving increased financial outlook

    Solid execution driving increased financial outlook (1)  Diluted EPS of $2.13, an increase of 40% on an adjusted basis (2), represents a quarterly record supported by our integrated operating plan and solid top-line growth  Operating Ratio of 57.2%, an improvement of 180 bps over Q3 2021 Adjusted

  6. Slide 6: Rob Reilly, Chief Operating Officer

    Rob Reilly Chief Operating Officer

  7. Slide 7: Q3 operating results – leaning into the Plan

    Q3 operating results – leaning into the Plan Consistent and sustained network fluidity  Origin Train Performance improvements drive better asset utilization  Car velocity of 212 miles per day – up 5% and highest level since Q3-2016  Operating safely – leveraging our investments in training, leade

  8. Slide 8: Resourced for disciplined execution of our integrated operating plan

    Resourced for disciplined execution of our integrated operating plan  Velocity supporting consistent car supply and service to our customers  Strong start to deliver on our grain plan – second best ever September for shipments of Western Canadian grain People Locomotives Cars ~400 conductors quali

  9. Slide 9: Doug MacDonald, Chief Marketing Officer

    Doug MacDonald Chief Marketing Officer

  10. Slide 10: Record revenues in Q3

    Record revenues in Q3  Strong demand throughout the quarter, with record quarter in terms of RTMs for iron ore, Canadian coal, natural gas liquids and Port of Halifax (containers)  Rapid late-quarter ramp up in Canadian Grain, ending the quarter at nearly 8,000 weekly shipments  Favorable pricing

  11. Slide 11: Canadian Grain harvest underpins strong Fourth Quarter

    Canadian Grain harvest underpins strong Fourth Quarter 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

  12. Slide 12: Strategic partnership to expand our Intermodal network

    Strategic partnership to expand our Intermodal network Broadening our participation in the Equipment Management Program (EMP) • Solid partnership with UP and NS to expand and broaden our reach across North America • Based on our reliable service and our extensive Canadian network • Offers seamless d

  13. Slide 13: Ghislain Houle, Chief Financial Officer

    Ghislain Houle Chief Financial Officer

  14. Slide 14: Q3 outstanding financial results

    Q3 outstanding financial results  Record operating income up over $450M or 31% on an adjusted basis (1), includes a $47M wage accrual for the tentative agreement reached with U.S. unions  Driving top-line growth to the bottom line with diluted EPS up 40% on an adjusted basis (1) when compared to Q

  15. Slide 15: New 2022 financial outlook

    New 2022 financial outlook (1)  Now expect to deliver approximately 25% adjusted diluted EPS growth and FCF of approximately $4.2B  Continuing to target a full-year operating ratio below 60% and ROIC at 15%  Assuming full-year low single-digit volume growth (RTMs) Adjusted Diluted EPS (2) Growth

  16. Slide 16: Tracy Robinson, President and Chief Executive Officer

    Tracy Robinson President and Chief Executive Officer

  17. Slide 17: Delivering on our Plan

    Delivering on our Plan  The Railroad is running well – supported by our integrated operating plan  Unlocking value through tighter integration at every level of the organization  Leveraging the strength of our network to drive continued growth in our top line and our bottom line Delivering value

Canadian National Railway Company — Q3 2022 Earnings Presentation on 6ix