Canadian National Railway Company · TSX:CNR

Canadian National Railway — FY2024 Earnings Presentation

18 slides from Canadian National Railway's earnings presentation, Jan 30, 2025

1. Slide 1: Fourth Quarter and Full Year 2024 Financial and Operating Results

   Fourth Quarter and Full Year 2024 Financial and Operating Results January 30, 2025 TSX: CNR NYSE: CNI

2. 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

3. Slide 3: On the call today

   On the call today Tracy Robinson President and CEO Derek Taylor Chief Field Operating Officer Pat Whitehead Chief Network Operating Officer Remi G. Lalonde Chief Commercial Officer Ghislain Houle Chief Financial Officer 3

4. Slide 4: Tracy Robinson

   Tracy Robinson President and Chief Executive Officer

5. Slide 5: Proven operating resiliency

   Proven operating resiliency  Disciplined execution and adherence to the Plan underpinned efficient network recoveries to multiple supply chain shocks, and swift return to fluid operations  CN-specific initiatives delivered volume growth despite the weaker-than-expected macro, and various supply ch

6. Slide 6: Derek Taylor

   Derek Taylor Chief Field Operating Officer

7. Slide 7: Winter operating conditions came early

   Winter operating conditions came early  Fluid operations to start the fourth quarter – prolonged cold weather in the Western Region starting late November had a meaningful impact on the network  Car velocity, the best all-in measure of network health, averaged ~210 miles/day for the full year  De

8. Slide 8: Pat Whitehead

   Pat Whitehead Chief Network Operating Officer

9. Slide 9: Key initiatives to deliver value in 2025

   Key initiatives to deliver value in 2025 Plan Discipline Right-sized Resources Driving Efficiencies  Adherence to the Plan allows for  Resource alignment enabling the right  Improving locomotive reliability and swift recovery of operations following tension between volumes and engineering product

10. Slide 10: Remi G. Lalonde

    Remi G. Lalonde Chief Commercial Officer

11. Slide 11: Demand momentum following port outages

    Demand momentum following port outages  Solid underlying demand in key markets – frac sand, refined fuels, propane exports, Canadian and US grain  Two-week West Coast and Montreal port labor disruptions in November, followed by operating restrictions due to temperatures below -25°C/-13°F, hampered

12. Slide 12: 2025 outlook

    2025 outlook Merchandise Petroleum Products Metals and Minerals • Continued strength in frac sand to • CN-specific initiatives in natural gas liquids and Northern British Columbia refined fuels • Cautious outlook for metals Chemicals and Plastics Forest Products • Growth in industrial production • C

13. Slide 13: Ghislain Houle

    Ghislain Houle Chief Financial Officer

14. Slide 14: External supply chain shocks continued in the fourth quarter

    External supply chain shocks continued in the fourth quarter  West Coast and Montreal port labor outages followed by prolonged cold weather in the Western Region impacted volumes and increased costs  Early onset of winter drove lower capital credits from less capital work, higher unproductive labo

15. Slide 15: Full year 2024 results

    Full year 2024 results  Material impact from protracted rail and port labor uncertainty starting in May  Weaker-than-expected macro environment, particularly forest products and construction-related commodities  Fuel price fluctuations drove a negative impact of ~35¢ on EPS and ~100 bps on Operat

16. Slide 16: 2025 financial outlook

    2025 financial outlook (1)  Expect to deliver 10%-15% adjusted diluted EPS (2) growth over 2024  Volume assumption of low to mid single-digit RTM growth, including modest economic growth  Same-store price ahead of rail inflation, as well as incremental margin improvement  Capital envelope reduce

17. Slide 17: Tracy Robinson

    Tracy Robinson President and Chief Executive Officer

18. Slide 18: Driving growth and operating leverage in 2025

    Driving growth and operating leverage in 2025  Took some ‘body blows’ in 2024, came out stronger – looking forward to a solid 2025  Enhanced resiliency and agility  CN-specific initiatives expected to drive about half of our growth  Managing tension between volumes and resources to enable growth

Canadian National Railway Company — FY2024 Earnings Presentation on 6ix