Canadian National Railway Company · TSX:CNR
Canadian National Railway — Bernstein's 37th Annual Strategic Decisions Conference 2021
10 slides from Canadian National Railway's conference presentation, Jun 3, 2021
Slide 1: Bernstein's 37th Annual Strategic Decisions Conference
Bernstein’s 37th Annual Strategic Decisions Conference JJ Ruest President & CEO, CN Patrick J. Ottensmeyer President & CEO, KCS June 3, 2021
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
Slide 3: Additional Information
Additional Information No Offer or Solicitation This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or s
Slide 4: CN-KCS: An "End-to-End" Merger That Will Enhance Choice and Competition
CN-KCS: An “End-to-End” Merger That Will Enhance Choice and Competition CUSTOMER CHOICE − Wide variety of transportation options in the center of the U.S. including rails, highways and barges on the Mississippi River system − The CN-KCS combination will create and add new direct rail routes that wil
Slide 5: High Confidence in Our Original Estimate of $1B in EBITDA Synergies
High Confidence in Our Original Estimate of $1B in EBITDA Synergies Intermodal Opportunity Breakdown (1) ✓ The revenue opportunities are based on two major routes: ‒ Kansas City Speedway – connecting CN’s Midwest Truck Rail foothold and the KC region $2B A ~$6B truck ‒ CN Greenway – connecting Mexic
Slide 6: CN's Advanced Technology Applied to a Larger Rail Network
CN’s Advanced Technology Applied to a Larger Rail Network ✓ Autonomous Track Inspection Program (for Safety and Capacity) • Latest sensors and AI technology for accurate preventative maintenance, enabling up to 20x more inspections • Proven rail safety improvements (reduce incidents, reduce incident
Slide 7: Mexico Provides Unparalleled Growth Opportunities
Mexico Provides Unparalleled Growth Opportunities Mexico Near-Sourcing Benefits and Positive Drivers KCS Customer / Partner Investments and Projects ✓ Multiple factors (including the ratification of USMCA, the COVID-19 Steel Billets Paper / Cardboard pandemic, and other macro geo-political trends) h
Slide 8: Creating A Seamless, Same-System U.S.–Mexico Connection via Laredo, TX
Creating A Seamless, Same-System U.S.–Mexico Connection via Laredo, TX 2020 U.S. & Mexico Surface Trade by Border Crossing Import and Export Value (US$ billions) & % Share Commentary • Laredo, TX is the leading U.S.-Mexico border crossing 48% • KCS has exclusive access to the Northeast Line linking
Slide 9: Committed to Maintaining a Strong Balance Sheet and Investment Grade Rating
Committed to Maintaining a Strong Balance Sheet and Investment Grade Rating – During and After the Voting Trust CN’s Strong Financial Profile Projected Rapid Deleveraging Profile (1) • Strongest balance sheet among Class I rail carriers Trust period Post-trust period • S&P and Moody’s expect CN to r
Slide 10: KCS Management and Governance While in Voting Trust
KCS Management and Governance While in Voting Trust 1. Continuity of KCS’ existing governance and executive management − KCS management will remain in control of KCS (CN will have no governance rights nor exercise any control over KCS) − Pat Ottensmeyer will continue to lead KCS as CEO, reporting to