Canadian National Railway Company · TSX:CNR
Canadian National Railway — Q1 2015 Earnings Presentation
17 slides from Canadian National Railway's earnings presentation, Apr 20, 2015
Slide 1: First Quarter 2015 Financial Results
First Quarter 2015 Financial Results April 20, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements The financial results in this presentation were determined on the basis of U.S. GAAP. Important risk factors that could affect the forward-looking statements include, but Please refer to the website www.cn.ca/nonGAAP for the reconciliation of certain non- are not limited t
Slide 3: Claude Mongeau, President & Chief Executive Officer
Claude Mongeau President & Chief Executive Officer
Slide 4: Q1 Highlights
Q1 Highlights Driving top line growth • End-to-end supply chain mindset • Disciplined inflation-plus pricing Balancing Operational and Service Excellence • Fluid, resilient network • Enabling growth at low incremental cost Strong financial results • Diluted EPS up 30% on adjusted basis • C$521M of f
Slide 5: Jim Vena, Executive VP & Chief Operating Officer
Jim Vena Executive VP & Chief Operating Officer
Slide 6: Q1 Operating Highlights
Q1 Operating Highlights Train Productivity Yard Productivity Terminal Dwell (GTMs per train mile) (Cars per yard switching hour) (Entire railroad, hours) 8,464 19.8 8,355 44 16.9 39 1% 13% 15% Q1-14 Q1-15 Q1-14 Q1-15 Q1-14 Q1-15 Locomotive Utilization Car Velocity Train Velocity (Trailing GTMs per t
Slide 7: Keys to Operational and Service Excellence
Keys to Operational and Service Excellence Keeping safety the top priority Focusing on customer needs Lining up the capacity to grow Pursuing productivity initiatives Supporting profitable, sustainable growth 7
Slide 8: JJ Ruest, Executive VP & Chief Marketing Officer
JJ Ruest Executive VP & Chief Marketing Officer
Slide 9: Solid Top Line Performance
Solid Top Line Performance Volumes Revenues +15% % change – favorable (unfavorable) Bulk 10% RTMs +7% Grain & Fertilizers 14% (8%) ¢ / RTMs +8% Coal (20%) Carloads RTMs Merchandise Petroleum & Chemicals 2% 6% 9% Forest Products 10% 14% Metals & Minerals 14% Carloads +9% 6% Automotive 30% $ / Carload
Slide 10: Outlook
Outlook Bulk Merchandise Intermodal • Canadian grain supply chain • Reducing energy carload • Growth in both domestic and fully back in sync -- expect growth this year to 40,000 from international segments negative comps in Q2 and 75,000 (crude and frac sand) Q3 • Providing competitive service • Pos
Slide 11: Luc Jobin, Executive VP and Chief Financial Officer
Luc Jobin Executive VP and Chief Financial Officer
Slide 12: Q1 Results
Q1 Results Change Favorable In millions of Canadian dollars, except EPS data, unless otherwise indicated 2015 2014 (Unfavorable) Revenues $ 3,098 $ 2,693 15% Operating expenses 2,035 1,873 Operating income 1,063 820 30% Interest expense (104) (92) Other income 4 94 Income before income taxes 963 822
Slide 13: Q1 Operating Expenses
Q1 Operating Expenses % Change at % constant Change currency (1) In millions of Canadian dollars, unless otherwise indicated 2015 2014 Favorable Favorable (Unfavorable) (Unfavorable) Labor and fringe benefits $ 668 $ 587 (14%) (9%) Purchased services and material 457 388 (18%) (12%) Fuel 361 468 23%
Slide 14: YTD Free Cash Flow
YTD Free Cash Flow In millions of Canadian dollars, unless otherwise indicated 2015 Net income $ 704 Non-cash adjustments 366 Payments for income taxes (228) Other working capital items 150 Net cash provided by operating activities 992 Capital expenditures (net) (468) Major asset sales - Other inves
Slide 15: Affirming 2015 Financial Outlook
Affirming 2015 Financial Outlook Double-digit earnings growth over 2014 adjusted diluted EPS of C$3.76 (1) • Aiming for carload growth of approximately 3% • Pricing above inflation Reinvesting in the business for safety, growth and productivity • Increasing our 2015 capital envelope by C$100M to C$2
Slide 16: Claude Mongeau, President & Chief Executive Officer
Claude Mongeau President & Chief Executive Officer
Slide 17: Delivering on Our Strategic Agenda
Delivering on Our Strategic Agenda Continued shareholder value creation 17
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