First Quarter 2022 Financial Presentation
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First Quarter 2022 Financial Presentation
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of
1995. In addition, management may make forward-looking statements orally or in other writing, including, but not limited to, in
press releases, executive presentations, in the annual report to stockholders and in other filings with the Securities and Exchange
Commission. Readers can usually identify these forward-looking statements by the use of such words as "may," "will," "should,"
"likely," "plans," "projects," "expects," "anticipates," "believes" or similar words. These statements involve a number of risks and
uncertainties. Actual results could materially differ from those anticipated by such forward-looking statements as a result of a
number of factors or combination of factors including, but not limited to: public health threats or outbreaks of communicable
diseases, such as the ongoing COVID-19 pandemic (including its variants) and its impact on KCS’s business, suppliers,
consumers, customers, employees and supply chains; rail accidents or other incidents or accidents on KCS’s rail network or at
KCS’s facilities or customer facilities involving the release of hazardous materials, including toxic inhalation hazards; legislative
and regulatory developments and disputes, including environmental regulations; changes in legislation and regulations or
revisions of controlling authority; loss of the rail concession of Kansas City Southern’s subsidiary, Kansas City Southern de México,
S.A. de C.V.; North American and global economic, political and social conditions; disruptions to the Company’s technology
infrastructure, including its computer systems; increased demand and traffic congestion; the level of trade between the United
States and Asia or Mexico; fluctuations in the peso-dollar exchange rate; natural events such as severe weather, hurricanes and
floods; the outcome of claims and litigation involving the Company or its subsidiaries; changes in business strategy and strategic
opportunities; competition and consolidation within the transportation industry; the business environment in industries that
produce and use items shipped by rail; the termination of, or failure to renew, agreements with customers, other railroads and
third parties; the satisfaction of by third parties of their obligations; fluctuation in prices or availability of key materials, fluctuations
in commodity demand; in particular diesel fuel; insurance coverage limitations; access to capital; sufficiency of budgeted
capital expenditures in carrying out business plans; services infrastructure; climate change and the market and regulatory
responses to climate change; dependency on certain key suppliers of core rail equipment; changes in securities and capital
markets; unavailability of qualified personnel; difficulty attracting, motivating, and retaining executives and other key
employees due to the uncertainty of the merger transaction with Canadian Pacific Railway Limited (“CP”); significant demands
placed on the Company as a result of the merger of the Company with CP; labor difficulties, including strikes and work
stoppages; acts of terrorism or risk of terrorist activities, war or other acts of violence; and other factors affecting the operation of
the business; and other risks identified in this presentation, in KCS's Annual Report on Form 10-K for the year ended December 31,
2021, and in other reports filed by KCS with the Securities and Exchange Commission.
© KANSAS CITY SOUTHERN
2First Quarter Results
Improvement /
Q1 2022 Q1 2021 (Deterioration)
Carloads/Units (in thousands) 575.2 555.4 4%
Revenues (in millions) $778.2 $706.0 10%
Operating Ratio 62.6% 64.2% 1.6 points
Adjusted Operating Ratio * 60.9% 61.4% 0.5 points
© KANSAS CITY SOUTHERN
*Non-GAAP financial measure; all reconciliations to GAAP can be found on the KCS website in the
Investors section 3Key Operating Metrics YoY Performance
Q1 2022 vs. Q1 2021
Gross Ton Train Terminal Train Fuel
Miles Velocity Dwell Length Efficiency
25.9 Billion 15.6 mph 19.7 hours 6,467 feet 1.24
3% Higher 21% Better 26% Better 5% Shorter 2% Better
Active Line of Road Transportation Mechanical Engineering
Loco Fleet Crew Starts Headcount Headcount Headcount
841 24,691 3,532 795* 1,334*
8% Lower 7% Higher 8% Higher 1% Higher 4% Lower
© KANSAS CITY SOUTHERN
*Excludes in-sourced headcount; 48 in Mechanical and 9 in Engineering 4First Quarter Revenue Summary
Q1 2022 vs. Q1 2021
Q1 2022 Q1 2021 Variance RPU Reconciliation
Q1 2021 RPU $1,211
Reported Revenues (in millions) $778.2 $706.0 10%
Fuel Price 69
Carloads (in thousands) 575.2 555.4 4% Mix / Pricing / Other (2)
Foreign Exchange (3)
Excluding the impact of fuel price and F/X, Q1 2022 revenues increased 5% YoY *
Q1 2022 RPU $1,275
31%
25%
23%
20% 20%
18% 17%
14%
12%
11%
8% 8% 9% 9%
5% 5% 5%
2% 3% Carloads
RPU
Revenue
-19%
© KANSAS CITY SOUTHERN
-21%
Chemical & Chemical & Industrial & Agriculture & Energy Intermodal Automotive
Petroleum Petroleum ex. Consumer Minerals
Refined Products
*Non-GAAP financial measure; all reconciliations to GAAP can be found on the KCS website in the
Investors section 5Total Cross-Border† Volumes and Revenues
† †
Total Cross-Border Volumes Total Cross-Border Revenues
($ in millions)
—% 4%
174,200 $261.3 $271.8
173,400
Q1 21 Q1 22 Q1 21 Q1 22
Mexico Energy Reform Volumes and Revenues
††
†† Energy Reform Revenues
Energy Reform Volumes
($ in millions)
(68)% (69)%
39,200 $91.5
© KANSAS CITY SOUTHERN
12,600 $28.2
Q1 21 Q1 22 Q1 21 Q1 22
†
Cross border is defined as traffic that moves on Kansas City Southern both north and south of the U.S. / Mexico
border. Traffic interchanged with a competing railroad at the border is not considered cross border.
††
Cross-Border Franchise and Non-Franchise movements related to Mexico Energy Reform,
as reported within Petroleum minor business unit. 6†
Cross-Border Intermodal and Lázaro Cárdenas
Intermodal Volumes and Revenues †
† Cross-Border
Cross-Border
Intermodal Revenues
Intermodal Volumes
($ in millions)
9% 17%
$28.6
39,300 $24.5
36,000
Q1 21 Q1 22 Q1 21 Q1 22
Lázaro Cárdenas
Lázaro Cárdenas
Intermodal Revenues
Intermodal Volumes
($ in millions)
(12)% 5%
21,000 18,400 $9.8
© KANSAS CITY SOUTHERN
$9.3
Q1 21 Q1 22
Q1 21 Q1 22
†
Cross-border is defined as traffic that moves on Kansas City Southern both north and south of the U.S. / Mexico
border. Traffic interchanged with a competing railroad at the border is not considered cross border. 7Adjusted Operating Expenses* Increased 9%
$ in millions
$133.0 $ in
Comp & Benefits Total Adjusted Operating Expenses
$129.5 millions
†
Q1 2021 Expense $434
$97.1
Fuel Fuel Price:
$70.9 U.S. 18
Mexico 7
$18.6
Equipment Wage & Benefit Inflation 6
$21.1
VAT Law Change 5
$96.2 Headcount/Work hours 4
D&A
$92.0 Materials and Supplies 4
Depreciation 4
$51.3
Purchased Svcs Incentive Compensation (8)
$53.8
†
Q1 2022 Expense $474
$78.1
Materials & Other
$66.4
Q1 22 Q1 21
© KANSAS CITY SOUTHERN
†
Adjusted for merger costs
* Non-GAAP financial measure; all reconciliations to GAAP can be found on the KCS website in the Investors section 8Compensation & Benefits Expense Increased 2%;
Fuel Expense Increased 37%
$ in
Quarterly Average Compensation & Benefits millions
Employee Headcount Q1 2021 Expense $130
Excluding in-sourcing due Wage & Benefit Inflation 6
to Mexico outsourcing Headcount / Work Hours 4
reform (268 FTE heads),
headcount is up 2% 6,943 Mexico Outsourcing Reform 2
Incentive Compensation (8)
6,675 Other (1)
6,514
Q1 2022 Expense $133
Q1 21 Q1 22
Locomotive Fuel Price
($ per gallon) $3.01 $ in
Fuel Expense millions
$2.25 Q1 2021 Expense $71
US $2.80 Fuel Price:
U.S. 18
MX $3.25 Mexico 7
US $1.75 MX $3.28* Consumption 1
MX $2.78
© KANSAS CITY SOUTHERN
Q1 2022 Expense $97
Q1 21 Q1 22
* Assumes constant F/X. 910
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