Canadian National Railway Company · TSX:CNR

Canadian National Railway — Q2 2023 Earnings Presentation

15 slides from Canadian National Railway's earnings presentation, Jul 25, 2023

1. Slide 1: Second Quarter 2023 Financial and Operating Results

   Second Quarter 2023 Financial and Operating Results July 25, 2023 TSX: CNR NYSE: CNI

2. Slide 2: Forward-looking statements

   Forward-looking statements Certain statements included in this news release 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 Ed Harris 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: Strong execution, weak economic backdrop – Revising full-year outlook

   Strong execution, weak economic backdrop – Revising full-year outlook (1)  The power of the Plan – swift operational recovery and continued focus on velocity delivering industry-leading customer service  Unprecedented Canadian wildfires and extreme heat exacerbated the impact of softer than expect

6. Slide 6: Ed Harris, Chief Operating Officer

   Ed Harris Chief Operating Officer

7. Slide 7: Committed to The Plan through all economic cycles

   Committed to The Plan through all economic cycles  Solid operating metrics despite an 8x increase in weather-related delays in Western Canada versus last year  Delivering consistent customer service – adhering to the plan, departing trains on time, and maintaining car velocity underpins first and

8. Slide 8: Doug MacDonald, Chief Marketing Officer

   Doug MacDonald Chief Marketing Officer

9. Slide 9: Near-term demand weakness does not alter our growth agenda

   Near-term demand weakness does not alter our growth agenda  Q2 impacted by softer than expected intermodal and forest products demand, and customer outages related to Canadian wildfires  Strong demand for bulk products – Canadian grain, potash, metallurgical coal  Achieving above rail inflation p

10. Slide 10: Expecting recovery to be pushed to 2024

    Expecting recovery to be pushed to 2024 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 10

11. Slide 11: Ghislain Houle, Chief Financial Officer

    Ghislain Houle Chief Financial Officer

12. Slide 12: Financial results reflect challenging external environment

    Financial results reflect challenging external environment  Lower customer demand and the impact of weather-related disruptions resulted in 10% lower operating income  Tight cost management – consolidating train starts, laying up equipment, moderating pace of hiring  Free cash flow remained solid

13. Slide 13: Updating our 2023 financial outlook

    Updating our 2023 financial outlook (1)  Expecting to deliver flat to slightly negative adjusted diluted EPS (1)(2) growth over 2022, versus mid single-digit previously  Volumes in terms of RTMs expected to outpace North American industrial production which is still assumed to be negative in 2023,

14. Slide 14: Tracy Robinson, President and Chief Executive Officer

    Tracy Robinson President and Chief Executive Officer

15. Slide 15: Right plan in place to accelerate sustainable, profitable growth

    Right plan in place to accelerate sustainable, profitable growth  CN’s disciplined approach to running the Plan continues to focus on driving operational efficiency and delivering consistent and reliable service for our customers  Although demand remains challenged through back half of 2023, our g

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