Canadian Pacific Kansas City Limited · TSX:CP
Canadian Pacific Kansas City — Canadian Pacific Railway — Merger or Acquisition (September 2021)
9 slides from Canadian Pacific Kansas City's merger presentation, Sep 16, 2021
Slide 1: Canadian Pacific Railway & Kansas City Southern to Combine
Canadian Pacific Railway & Kansas City Southern to Combine September 16, 2021
Slide 2: Forward Looking Statements and Additional Information
FORWARD LOOKING STATEMENTS AND ADDITIONAL INFORMATION FORWARD-LOOKING STATEMENTS AND INFORMATION This presentation includes certain forward looking statements and forward looking information (collectively, FLI) to provide CP and KCS shareholders and potential investors with information about CP, KCS
Slide 3: Forward Looking Statements and Additional Information
FORWARD LOOKING STATEMENTS AND ADDITIONAL INFORMATION ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT CP will file with the U.S. Securities and Exchange Commission (SEC) a registration statement on Form F-4, which will include a proxy statement of KCS that also constitutes a prospe
Slide 4: Creating the First U.S.-Mexico-Canada Rail Network
CREATING THE FIRST U.S.-MEXICO-CANADA RAIL NETWORK New direct link between Midwest U.S. / Canada to Gulf ENHANCES Coast / Mexico COMPETITION BY CREATING NEW SINGLE- LINE HAUL ROUTES UNLOCKS ANNUALIZED EBITDA SYNERGIES OF $1 BILLION New third single-line DIVERSIFIES connection between the US CURRENT
Slide 5: Transaction Summary
TRANSACTION SUMMARY US$, unless otherwise noted KCS shareholders will receive 2.884 CP shares and $90 in cash for each KCS common share held • Based on closing price of August 9th, CP’s proposal is valued at $300 / share1 FINANCIAL • Represents 34% premium to KCS’ unaffected price2 TERMS • CP and KC
Slide 6: Combination Unlocks $1BN in EBITDA Growth Opportunities
COMBINATION UNLOCKS $1BN IN EBITDA GROWTH OPPORTUNITIES Increased from previous $820 MILLION estimate of $600 million based EBITDA GROWTH FROM MARKET OPPORTUNITIES on customer feedback and • Unique combination enables significant growth for our customers additional market insight, throughout North A
Slide 7: Enhances Competitive Options for Customers and Enables North American Growth
ENHANCES COMPETITIVE OPTIONS FOR CUSTOMERS AND ENABLES NORTH AMERICAN GROWTH BULK ECP & MERCHANDISE New single-line New single-line competition for shipments for grain shipments of energy, from Canada and the chemicals & plastics Upper Midwest to and merchandise domestic and export moving between ma
Slide 8: Expected Transaction Timing
EXPECTED TRANSACTION TIMING APPROVAL OF CP VOTING TRUST CIRCUMSTANCES UNCHANGED FROM STB MAY 6 TH APPROVAL SHAREHOLDER VOTES EXPECTED DECEMBER 2021 (CP & KCS) RECEIVE MEXICAN IFT AND COFECE APPROVALS1 EXPECTED Q1 2022 KCS SHAREHOLDERS RECEIVE CONSIDERATION AND TRANSACTION CLOSES INTO VOTING TRUST EX
Slide 9: CP-KCS Delivers Significant Benefits to All Stakeholders
CP-KCS DELIVERS SIGNIFICANT BENEFITS TO ALL STAKEHOLDERS CREATE THE FIRST U.S.-MEXICO-CANADA RAIL NETWORK –TRULY END-TO-END AND PRO-COMPETITIVE WITH NO OVERLAP WELL POSITIONED FOR GROWTH, BRINGING COMBINATION OFFERS TOGETHER TWO RAILROADS WITH HIGHEST 3-YEAR REVENUE CAGR SIGNIFICANT BENEFITS TO RA
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