6-K
CANADIAN NATIONAL RAILWAY CO (CNI)
6-K
2022-09-09
For: 2022-09-08
View Original
Added on
April 11, 2026
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of September 2022
Commission File Number: 001-02413
Canadian National RailwayCompany
(Translation of registrant’s name into English)
935 de la Gauchetiere Street West
Montreal, Quebec
Canada H3B 2M9
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form<br> 20-F | ¨ | Form<br> 40-F | x |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | ¨ | No | x |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | ¨ | No | x |
|---|
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
| Yes | ¨ | No | x |
|---|
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
CANADIAN NATIONAL RAILWAY COMPANY
Table of Contents
| Items | Description |
|---|---|
| 1 | 2022<br> Investor Fact Book Update |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Canadian National Railway Company | ||||
|---|---|---|---|---|
| Date: | September 9, 2022 | By: | /s/ Cristina Circelli | |
| Name: | Cristina Circelli | |||
| Title: | Vice-President, Deputy Corporate Secretary and General Counsel | |||
| POWERING<br>SUSTAINABLE<br>GROWTH<br>2022 INVESTOR FACT BOOK UPDATE | ||||
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| FORWARD-LOOKING STATEMENTS<br>Certain statements included in the CN 2022 Investor Fact Book Update constitute “forward-looking statements” within the meaning of the United States Private<br>Securities Litigation Reform Act of 1995 and under Canadian securities laws, including statements based on management’s assessment and assumptions and publicly<br>available information with respect to CN. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions<br>may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater<br>uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,”<br> “targets”, or other similar words.<br>Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results,<br>performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements.<br>Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking<br>statements include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and<br>geopolitical conflicts and tensions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory<br>developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats;<br>reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous<br>materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires,<br>floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings or other types of<br>claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; and other risks detailed from time to time in reports<br>filed by CN with securities regulators in Canada and the United States. Reference should be made to Management’s Discussion and Analysis in CN’s annual and<br>interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN’s website, for a description of<br>major risk factors relating to CN.<br>Forward-looking statements reflect information as at the date on which they are made. CN assumes no obligation to update or revise forward-looking statements<br>to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-<br>looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-<br>looking statement.<br>As used herein, “Company” or “CN” refers to Canadian National Railway Company and, as the context requires, its wholly owned subsidiaries.<br>PICTURED ABOVE: Nathalie Bergeron, Locomotive Engineer, Montreal, QC ON THE COVER: Henry House, AB (photo by CN employee Tim Stevens) | ||||
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| Contents<br>Except where otherwise indicated, all financial<br>information reflected in this document is<br>expressed in Canadian dollars and determined<br>on the basis of United States generally<br>accepted accounting principles (GAAP).<br>OVERVIEW<br>02 Delivering Value<br> For Our Shareholders<br>04 Key Advantages and<br>Core Strengths<br>06 Message from the<br> President and CEO<br>08 Financial and<br> Operating Measures<br>MARKETS<br>10 Market Overview<br>12 Petroleum and Chemicals<br>14 Metals and Minerals<br>16 Forest Products<br>18 Coal<br>20 Grain and Fertilizers<br>22 Intermodal<br>24 Automotive<br>FINANCIALS<br>26 Quarterly Consolidated<br>Statements of Income<br>27 Quarterly Consolidated<br>Balance Sheets<br>28 Quarterly Consolidated<br>Statements of Cash Flows<br>30 Quarterly Financial and<br>Statistical Data<br>32 Non-GAAP Measures<br>40 Shareholder and<br> Investor Information<br>(1) 18,600 route miles reflects the Q1 2022 sale of non-core lines in Wisconsin,<br>Michigan, and Ontario.<br>CN is a world‑class transportation leader and<br>trade enabler. Essential to the economy, to the<br>customers, and to the communities it serves,<br>CN safely transports about 300 million tonnes<br>of natural resources, manufactured products,<br>and finished goods throughout North America<br>every year. CN’s advantaged 18,600‑mile(1) rail<br>network, which connects Canada’s eastern and<br>western coasts with the southern coast of the<br>U.S., efficiently meets customers’ needs and drives<br>enduring profitable growth. CN is committed to<br>programs supporting social responsibility and<br>environmental stewardship.<br>POWERING<br>SUSTAINABLE<br>GROWTH<br>POWERING<br>SUSTAINABLE<br>GROWTH<br>01 01 | ||||
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| 2021 highlights<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a<br>retrospective approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be<br>found online on SEDAR at www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors<br>section, for additional information.<br>(2) These non-GAAP measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented<br>by other companies. See section entitled Non-GAAP Measures for an explanation of these non-GAAP measures.<br>(3) Operating ratio is defined as operating expenses as a percentage of revenues.<br>TOTAL REVENUES<br>$14.5B<br>FREE CASH FLOW (2)<br><br>$3.3B<br>DILUTED EARNINGS<br>PER SHARE (1)<br>$6.90<br>OPERATING RATIO (3)<br><br>61.2 %<br>ADJUSTED DILUTED EARNINGS<br>PER SHARE (1) (2)<br>$5.95<br>ADJUSTED ROIC (2)<br><br>14.1%<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>p Share repurchases p Dividends<br>SHAREHOLDER DISTRIBUTION<br>($ millions)<br><br>) See section entitled Non-GAAP Measures for an explanation of these non-GAAP measures.<br>$15B<br>RETURNED TO SHAREHOLDERS OVER THE<br>LAST FIVE YEARS<br>26 consecutive years of dividend growth (15% CAGR<br>in dividend rate), with a 19% increase approved for 2022.<br>CN suspended its share buyback program in 2020<br>(pandemic) and part of 2021 (proposed combination with<br>Kansas City Southern – KCS); CN’s current normal course<br>issuer bid is in the range of $5B for up to 42M shares.<br>88%<br>TOTAL SHAREHOLDER RETURN<br>SINCE JANUARY 2017<br>CN’s share price on the TSX (CNR)<br>has increased at a compound annual<br>growth rate (CAGR) of 18.2% since our<br>initial public offering (IPO) in 1995.<br>DELIVERING VALUE<br>FOR OUR SHAREHOLDERS<br>CNR (TSX)<br>CNI (NYSE)<br>S&P 500<br>TSX<br>CN’S STOCK PERFORMANCE<br><br>(Index: Closing price on December 3, 206 = 00)<br> €<br> €€<br> ‚<br> €<br> ƒ<br> ‚<br> ƒ€€<br> ƒƒ<br> ƒ€‚ ƒ€„ ƒ€… ƒ€ƒ€ ƒ€ƒ<br>Source: FactSet<br>Overview Overview<br>CN | 2022 INVESTOR FACT BOOK UPDATE 02 | |||
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| Ferland, ON<br>Photo by CN employee Chris Wilson<br>CN | 2022 INVESTOR FACT BOOK UPDATE 03 | |||
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| Kamloops<br>Fort Nelson<br>Hay River<br>Fort McMurray<br>Matane<br>Baie-Comeau<br>Sept-Îles<br>Springfield<br>East St. Louis<br>East Peoria<br>Conneaut<br>Pittsburgh<br>New London<br>Duluth<br>Stevens<br> Point<br>Omaha<br>Sioux City<br>Sault<br>Ste. Marie<br>Fond<br>du Lac<br>Sarnia Buffalo<br>Baton Rouge<br>Minneapolis/St. Paul<br>Regina<br>Toledo<br>Decatur<br>Calgary<br>Jackson<br>Prince George<br>Worcester<br>Arcadia<br>Chippewa Falls<br>Auburn<br>Indianapolis<br>Joliet<br>Pascagoula<br>Green<br>Bay<br>Gulfport<br>Moncton<br>Syracuse<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg Strong balance sheet<br>that provides financial flexibility<br>CN is committed to long-term<br>sustainable value for our shareholders.<br>Our first use of cash is investing in<br>our business to sustain and strengthen<br>our network, ensure safety and fluidity,<br>and enable growth. CN also returns<br>value to shareholders through dividend<br>payments and share repurchases.<br>Building for a<br>sustainable future<br>Delivering Responsibly is at the heart<br>of how CN operates. It means moving<br>customer goods safely and efficiently,<br>being environmentally responsible,<br>attracting and developing the best<br>railroaders, helping build safer, stronger<br>communities, while adhering to the<br>highest ethical standards.<br>Advantaged network<br>with three-coast access<br>CN spans the continent, reaching from<br>coast to coast to coast. The network<br>was built through key acquisitions across<br>Canada and in the U.S., including our<br>fluidity advantage around Chicago.<br>CN’s unique footprint provides optionality<br>that is of increasing importance to our<br>customers in a world of emerging and<br>shifting trade patterns.<br>Scheduled railroad<br>with a focus on velocity<br>As the industry pioneers in scheduled<br>railroading, CN’s focus on car velocity<br>benefits customers and shareholders<br>alike. Running a scheduled railroad<br>allows us to unlock additional capacity,<br>while identifying key corridors for<br>further capacity investment.<br>CN main lines<br>Secondary and feeder lines<br>Shortline partners<br>Ports served by CN<br>LEGEND<br>OPERATIONAL EXCELLENCE EVERY DAY<br>CN is an operational and sustainability leader and an engine of<br>North American economic growth and prosperity. We deliver reliable,<br>efficient and cost-effective transportation services with a continuous<br>focus on service, productivity and safety. CN facilitates end-to-end<br>supply chains to unlock long-term, profitable growth and deliver<br>sustainable transportation services for our customers.<br>KEY ADVANTAGES<br>AND CORE STRENGTHS<br> REVENUES BY COMMODITY GROUP<br>(% of total revenues)<br>p<br> % Intermodal p % Petroleum and chemicals p % Grain and fertilizers p % Forest products p % Metals and minerals p % Automotive p% Coal p % Other revenues<br> REVENUES BY GEOGRAPHIC FLOW<br>(% of freight revenues)<br>p % Overseas p % Transborder p 8% Canadian domestic p % U.S. domestic<br>Balanced and diverse portfolio Broad geographic exposure<br>Overview Overview<br>04 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Kamloops<br>Fort Nelson<br>Hay River<br>Fort McMurray<br>Matane<br>Baie-Comeau<br>Sept-Îles<br>Springfield<br>East St. Louis<br>East Peoria<br>Conneaut<br>Pittsburgh<br>New London<br>Duluth<br>Stevens<br> Point<br>Omaha<br>Sioux City<br>Sault<br>Ste. Marie<br>Fond<br>du Lac<br>Sarnia Buffalo<br>Baton Rouge<br>Minneapolis/St. Paul<br>Regina<br>Toledo<br>Decatur<br>Calgary<br>Jackson<br>Prince George<br>Worcester<br>Arcadia<br>Chippewa Falls<br>Auburn<br>Indianapolis<br>Joliet<br>Pascagoula<br>Green<br>Bay<br>Gulfport<br>Moncton<br>Syracuse<br>Mobile<br>Quebec<br>Montreal<br> New Orleans<br>Prince Rupert<br>Vancouver<br>Halifax<br>Saint John<br>Saskatoon<br>Chicago<br>Memphis<br>Edmonton<br>Toronto<br>Detroit<br>Thunder Bay<br>Winnipeg<br>Gary<br>Leithton<br>Munger<br>West Chicago<br>Joliet<br>Matteson<br>Chicago<br>Heights<br>Griffith<br>Goose Lake<br>Markam<br>Waukegan<br>South Chicago<br>Chicago<br>Outer Belt<br>(CN)<br>Chicago<br>INDIANA<br>ILLINOIS<br>LAKE<br>MICHIGAN<br>FASTEST<br>RAIL ROUTE IN<br>AND AROUND<br>CHICAGO<br>$14.5B<br>REVENUES<br>19,500<br>ROUTE MILES<br>22,600<br>EMPLOYEES (end of period)<br>$2.9B<br>CAPITAL INVESTMENTS<br>(1) As at or for the year ending December 31, 2021<br>2021 key statistics(1)<br>05 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| MESSAGE FROM<br>THE PRESIDENT AND CEO<br>This is an exciting time for CN, and I am honoured to step into<br>the role of President and CEO. I am delighted to be back in the<br>industry. It truly feels like coming home.<br>Leading CN, one of North America’s iconic companies,<br>comes with both the privilege and responsibility of ensuring<br>the continent’s supply chains deliver consistently, safely and<br>responsibly. CN’s focus on our employees, customers, the<br>communities in which we operate, our partners and our<br>shareholders will remain our priority over the long term.<br>We succeed together.<br>This is a transformational period at CN. Our goal – to build<br>the railway of the future – is an expression of our intent<br>to continuously innovate – in safety, in efficiency, in<br>sustainability, in engagement. This is how we will deliver<br>for the future.<br>Powering sustainable growth<br>The past two years have presented some significant<br>challenges in North America and around the globe.<br>The impact of the pandemic, the effects of climate change,<br>and the uncertainty of global security have challenged<br>our sense of safety and order and impacted the reliability<br>of our supply chains.<br>As an important enabler of domestic freight movement<br>and global trade links, it has never been more important<br>for CN to deliver. We are uniquely positioned to power<br>sustainable growth. We have North America’s best network,<br>spanning Canada from the Atlantic to the Pacific and<br>through the American heartland to the Gulf of Mexico.<br>We also have a team of experienced and motivated<br>railroaders to propel operational excellence, every day.<br>Overview<br>06 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| ‘‘ North America’s economy relies on our ability to safely<br>deliver the essential products our customers need. More than<br>ever, our continent’s resources, agricultural products and<br>manufactured goods are needed around the world. CN has<br>the connections and know‑how to drive the continued<br>growth of our customers and success of our team. And we<br>can do it in a manner that continues to advance the efficiency<br>of our operations.<br>Delivering responsibly<br>CN believes in Delivering Responsibly. This means moving<br>our customers’ goods safely and efficiently, and ensuring we<br>deliver in an environmentally responsible manner; attracting,<br>developing, and retaining top diverse talent; helping to make<br>the communities we serve safer and stronger; and adhering<br>to the highest ethical standards. This is what we believe, and<br>it is the way we approach our work every day.<br>The heart of CN is the more than 22,000 skilled and dedicated<br>railroaders who come to work to deliver for our customers.<br>I am proud of the perseverance and resilience of our team,<br>who power our performance and growth, and who increasingly<br>represent the diversity of the communities we serve. We are<br>welcoming the next generation of railroaders to our Company.<br>They are helping us in our efforts to innovate, to continuously<br>improve the safety of our employees and communities, to<br>lighten our environmental footprint, to further engage with<br>our Indigenous and community partners, and to develop<br>the capabilities of our team. The future of railroading at CN<br>is very bright.<br>Let’s go!<br>This team, operating on the best rail network in North America<br>and powered by innovation, collaboration and diversity of<br>thought, is positioned to deliver strong and sustainable value<br>for our customers, our partners, our communities and our<br>shareholders, now and over the long term. We will make CN<br>the safest and the best railroad in North America, and we<br>will continue to build the railway of the future.<br>Tracy Robinson<br>President and Chief Executive Officer<br>This team, operating on the best rail network in North America and powered<br>by innovation, collaboration and diversity of thought, is positioned to deliver<br>strong and sustainable value... now and over the long term.<br>07 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| TOTAL REVENUES<br>($ millions)<br><br><br><br>OPERATING RATIO<br>(%)<br><br>Adjusted Operating Ratio()<br><br><br><br><br>DILUTED EARNINGS PER SHARE<br>($)<br><br>Adjusted Diluted Earnings Per Share()<br>Financial measures<br>2017 2018 2019 2020 2021<br>KEY FINANCIAL PERFORMANCE INDICATORS<br>Total revenues ($ millions) 13,041 14,321 14,917 13,819 14,477<br>Freight revenues ($ millions) 12,293 13,548 14,198 13,218 13,888<br>Operating income ($ millions) 5,243 5,493 5,593 4,777 5,616<br>Adjusted operating income ($ millions) (1) 5,243 5,520 5,708 5,263 5,622<br>Net income ($ millions) (2) 5,470 4,312 4,198 3,545 4,899<br>Adjusted net income ($ millions) (1) (2) 3,764 4,040 4,171 3,767 4,225<br>Diluted earnings per share ($) (2) 7.22 5.85 5.81 4.97 6.90<br>Adjusted diluted earnings per share ($) (1) (2) 4.97 5.48 5.78 5.28 5.95<br>Free cash flow ($ millions) (1) 2,778 2,514 1,992 3,227 3,296<br>Gross property additions ($ millions) 2,703 3,531 4,079 2,863 2,897<br>Share repurchases ($ millions) 2,000 2,000 1,700 379 1,582<br>Dividends per share ($) 1.65 1.82 2.15 2.30 2.46<br>FINANCIAL POSITION<br>Total assets ($ millions) 37,629 41,214 43,784 44,804 48,538<br>Total liabilities ($ millions) 20,973 23,573 25,743 25,153 25,794<br>Shareholders’ equity ($ millions) 16,656 17,641 18,041 19,651 22,744<br>FINANCIAL RATIOS<br>Operating ratio (%) 59.8 61.6 62.5 65.4 61.2<br>Adjusted operating ratio (%) 59.8 61.5 61.7 61.9 61.2<br>Adjusted debt-to-adjusted EBITDA multiple (times) (1) 1.75 1.93 2.01 1.98 1.82<br>Return on invested capital (ROIC) (%) (1) (2) 22.4 16.6 15.2 12.7 16.4<br>Adjusted ROIC (%) (1) (2) 15.8 15.6 15.1 13.3 14.1<br>FINANCIAL AND<br>OPERATING MEASURES<br>(1) These non-GAAP measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other<br>companies. See section entitled Non-GAAP Measures for an explanation of these non-GAAP measures.<br>(2) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>Financial highlights<br>Overview<br>08 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| GROSS TON MILES GTMs<br>(billions)<br><br><br><br><br>CAR VELOCITY<br>(car miles per day)<br><br><br><br><br>THROUGH NETWORK TRAIN SPEED<br>(miles per hour)<br><br><br>Operating measures(3)<br>2017 2018 2019 2020 2021<br>STATISTICAL OPERATING DATA<br>Gross ton miles (GTMs) (billions) 469.2 490.4 482.9 455.4 458.4<br>Revenue ton miles (RTMs) (billions) 237.1 248.4 242.0 230.4 233.1<br>Carloads (thousands) 5,737 5,976 5,912 5,595 5,701<br>Route miles (includes Canada and the U.S.) 19,500 19,500 19,500 19,500 19,500<br>Employees (end of period) 23,945 25,720 25,975 24,381 22,604<br>Employees (average for the period) 23,074 25,423 26,733 23,786 24,084<br>KEY OPERATING MEASURES<br>Freight revenue per RTM (cents) 5.18 5.45 5.87 5.74 5.96<br>Freight revenue per carload ($) 2,143 2,267 2,402 2,362 2,436<br>GTMs per average number of employees (thousands) 20,335 19,290 18,063 19,144 19,033<br>Operating expenses per GTM (cents) 1.66 1.80 1.93 1.99 1.93<br>Labor and fringe benefits expense per GTM (cents) 0.54 0.58 0.61 0.60 0.63<br>Diesel fuel consumed (US gallons in millions) 441.4 462.7 451.4 407.2 402.8<br>Average fuel price ($/US gallon) 2.74 3.32 3.17 2.42 3.28<br>Fuel efficiency (US gallons of locomotive fuel consumed per 1,000 GTMs) 0.941 0.943 0.935 0.894 0.879<br>OPERATING METRICS<br>Car velocity (car miles per day) 200 184 194 185 195<br>Yard productivity (cars per yard switching hour) 51 49 47 46 47<br>Locomotive utilization (trailing GTMs per total horsepower) 225 208 198 196 198<br>Train weight (tons) 9,424 9,163 9,125 9,501 9,658<br>Through dwell (hours) (4) 7.7 8.3 7.9 8.6 7.9<br>Through network train speed (miles per hour) (4) 20.3 18.0 18.5 18.5 19.2<br>CN ROLLING STOCK<br>Diesel locomotives (end of period) 2,285 2,412 2,398 2,382 2,302<br>Freight cars (end of period) 65,019 66,978 64,607 62,857 56,730<br>(3) Statistical operating data, key operating measures, operating metrics and rolling stock information are unaudited and based on estimated data available at such time and are<br>subject to change as more complete information becomes available. Definitions of these indicators are provided on our website, www.cn.ca/glossary.<br>(4) The Company no longer reports Terminal dwell and Train velocity and has replaced these measures with Through dwell and Through network train speed, respectively.<br>Comparative figures have been adjusted to conform to the current presentation.<br>Operational highlights<br>09 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| REVENUES BY COMMODITY GROUP<br>(% of total revenues)<br>p<br> % Intermodal p % Petroleum and chemicals p % Grain and fertilizers p % Forest products p % Metals and minerals p % Automotive p% Coal p % Other revenues<br>4%<br>OTHER REVENUES 4%<br>COAL<br>11%<br>METALS AND<br>MINERALS<br>4%<br>AUTOMOTIVE<br>17%<br>GRAIN AND<br>FERTILIZERS<br>20%<br>PETROLEUM AND<br>CHEMICALS<br>28%<br>INTERMODAL<br>12%<br>FOREST<br>PRODUCTS<br>Well-diversified portfolio supported by<br>a solid base of customers and supply chain partners<br>STRONG CUSTOMER PARTNERSHIPS<br>CN is committed to being a customer-centric organization. We work with all our supply chain<br>partners to deliver sustainable top‑tier transportation services for our customers by anticipating<br>their needs, understanding their growth plans, earning their trust, and being agile.<br>Our business model is anchored on end‑to‑end collaboration with our customers and supply<br>chain partners from true origin to ultimate destination. We add value to this model by leveraging<br>our expertise and technological innovation to advise our customers and help them win in their<br>markets, because when our customers grow, CN grows along with them.<br>MARKET<br>OVERVIEW<br>300M tons<br>ANNUAL CARGO CARRIED<br>9 ports<br>SERVED ACROSS NORTH AMERICA<br>65%<br>OF TRAFFIC ORIGINATING AND<br>TERMINATING ON CN’S NETWORK<br> REVENUES BY COMMODITY GROUP<br>(% of total revenues)<br>p<br> % Intermodal p % Petroleum and chemicals p % Grain and fertilizers p % Forest products p % Metals and minerals p % Automotive p% Coal p % Other revenues<br>$14.5B<br>TOTAL<br>REVENUES<br>Markets<br>CN | 2022 INVESTOR FACT BOOK UPDATE 10 | |||
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| REVENUES CARLOADS<br>$ millions thousands<br>2017 2018 2019 2020 2021<br>%<br>Change(1) 2017 2018 2019 2020 2021<br>%<br>Change(1)<br>Petroleum and chemicals 2,208 2,660 3,052 2,631 2,816 7% 614 653 688 597 596 0%<br>Metals and minerals 1,523 1,689 1,643 1,409 1,548 10% 995 1,030 1,008 935 969 4%<br>Forest products 1,788 1,886 1,808 1,700 1,740 2% 424 418 375 342 339 (1%)<br>Coal 535 661 658 527 618 17% 303 346 335 289 379 31%<br>Grain and fertilizers 2,214 2,357 2,392 2,609 2,475 (5%) 619 632 619 663 628 (5%)<br>Intermodal 3,200 3,465 3,787 3,751 4,115 10% 2,514 2,634 2,618 2,582 2,611 1%<br>Automotive 825 830 858 591 576 (3%) 268 263 269 187 179 (4%)<br>Total rail freight 12,293 13,548 14,198 13,218 13,888 5% 5,737 5,976 5,912 5,595 5,701 2%<br>Other 748 773 719 601 589 (2%)<br>Total 13,041 14,321 14,917 13,819 14,477 5%<br>RTMS AVERAGE LENGTH OF HAUL<br>millions miles<br>2017 2018 2019 2020 2021<br>%<br>Change(1) 2017 2018 2019 2020 2021<br>%<br>Change(1)<br>Petroleum and chemicals 44,375 50,722 53,989 43,556 42,436 (3%) 819 874 885 828 814 (2%)<br>Metals and minerals 27,938 27,993 25,449 21,561 26,743 24% 339 336 315 287 336 17%<br>Forest products 30,510 29,918 27,187 25,602 25,948 1% 840 839 841 859 875 2%<br>Coal 14,539 17,927 17,653 16,173 18,471 14% 435 464 470 497 421 (15%)<br>Grain and fertilizers 56,123 57,819 55,597 61,736 58,733 (5%) 905 905 887 913 909 0%<br>Intermodal 59,356 60,120 58,344 59,165 58,412 (1%) 1,848 1,826 1,816 1,812 1,825 1%<br>Automotive 4,257 3,884 3,735 2,597 2,395 (8%) 802 762 741 738 685 (7%)<br>Total 237,098 248,383 241,954 230,390 233,138 1% 775 782 777 784 763 (3%)<br>(1) % change from 2020 to 2021.<br>Performance summary<br>11 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| High River<br>Ashcroft<br>Scotford<br>Joliet<br>Flat Rock<br>Windsor<br>Hamilton<br>Fort McMurray<br>Ferndale, WA<br>Mont Belvieu, TX<br>Regina<br>Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Baton Rouge<br>Sarnia<br>Halifax Thunder Bay<br> Petroleum<br> Chemicals<br> and plastics<br> Sulfur<br> Natural gas liquids<br> Ports served by CN<br> 1 CargoFlo®<br> 1 Propane export facility<br> 1 Petrochemical facility<br> 1 Petrochemical hub<br> Shale play<br>CN’S PETROLEUM AND CHEMICALS<br>SUPPLY CHAIN<br>For more information please visit<br>www.cn.ca/petroleum<br>PETROLEUM<br>AND CHEMICALS<br>RELIABLE AND INTEGRAL PART OF MOVING ENERGY<br>Natural gas and oil are the building blocks of the petrochemical industry. CN’s geographical footprint<br>allows our customers access to all three major petrochemical hubs in North America – the U.S. Gulf Coast,<br>Alberta Heartland and Southwestern Ontario. Additionally, our access to state-of-the-art export terminals<br>on the Pacific and Gulf of Mexico position our customers’ products to compete on a global scale. This unique<br>and robust supply chain positions CN to support North America’s New Green Energy evolution.<br>Markets<br>12 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| High River<br>Ashcroft<br>Scotford<br>Joliet<br>Flat Rock<br>Windsor<br>Hamilton<br>Fort McMurray<br>Ferndale, WA<br>Mont Belvieu, TX<br>Regina<br>Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Baton Rouge<br>Sarnia<br>Halifax Thunder Bay<br><br><br><br><br><br><br>REVENUES<br>($ millions)<br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br><br><br><br><br><br><br><br><br><br>RTMs<br>(millions)<br><br><br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>KEY FACTS<br> • CN is the only rail carrier servicing<br>three petrochemical hubs in<br>North America<br> • CN handles over 50% of all Canadian<br>chemicals production<br> • Petroleum and chemicals shipments<br>move in customer-supplied private cars<br> • Prince Rupert propane exports expand<br>CN’s scope to international markets<br>COMMODITIES<br>PETROLEUM PRODUCTS<br> • Propane, butane, crude oil, gasoline,<br>diesel, jet fuel, fuel oil, lubricants,<br>asphalt, condensate<br>CHEMICALS AND PLASTICS<br> • Polyethylene, polyvinyl chloride (PVC),<br>caustic soda, sulfuric acid,<br>pulp mill chemicals<br>SULFUR<br> • Molten and dry sulfur<br>MARKET DRIVERS<br> • North American automotive, housing<br>and medical production<br> • Chemical and plastics feedstock prices<br> • North American liquefied natural gas<br>(LNG) production<br> • North American hydrogen production<br> • New investment interest in North<br>American green energy production<br> • Renewable diesel and sustainable<br>aviation fuel production<br>2021 VS. 2017 CAGR<br>$2,816M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % Refined Petroleum Products p % Chemicals and Plastics p % Crude and Condensate p% Sulfur<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>+6.3% - 0.7% - 0.2 % - 1.1%<br>13 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Scotford<br>Bienfait<br>Joliet<br>Flat Rock<br>Hamilton<br>Fort McMurray<br>Jackson<br>Decatur Indianapolis<br>Conneaut<br>Pittsburgh<br>Sault<br>Ste. Marie<br>Escanaba<br>Arcadia<br>Duluth<br>Two Harbors<br>Prince George<br>Surrey<br>North<br>Vancouver<br>Regina<br>Toledo<br>Minneapolis/St. Paul<br>Chippewa Falls New Richmond<br>Saguenay<br>Baie-Comeau<br>Sept-Îles<br>Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Halifax Thunder Bay<br>CN’S METALS AND MINERALS<br>SUPPLY CHAIN<br> Metals<br> Minerals<br> Energy materials<br> Iron ore<br> Ports served by CN<br> s Aluminum smelters<br> 1 CN metals distribution centres<br> 1 CN iron ore docks<br> 1 Intermodal terminals<br>For more information please visit<br>www.cn.ca/metals<br>METALS<br>AND MINERALS<br>SUPPLY CHAIN COLLABORATION DRIVES GROWTH<br>Demand for cyclical commodities like metals and minerals follows drivers such as manufacturing,<br>construction and energy sector activity. CN works closely with our customers to understand and anticipate<br>their market cycles and help reach new markets. We plan our capacity and service to align with the future<br>needs of our customers while looking for opportunities to create new supply chain options.<br>Markets<br>14 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| REVENUES<br>($ millions)<br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br><br><br><br><br><br><br><br><br><br>RTMs<br>(millions)<br><br><br><br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>KEY FACTS<br> • CN serves 10 aluminum smelters,<br>more than any other railroad in<br>North America<br> • CN is the top mover of aluminum,<br>iron ore and base metal ore in<br>North America<br> • CN directly serves all the top shale<br>plays in Canada, including the<br>Western Canada Sedimentary Basin<br>COMMODITIES<br>METALS AND MINERALS<br> • Steel, non-ferrous ores and base<br>metals, construction materials,<br>machinery, railway equipment and<br>large loads<br>ENERGY MATERIALS<br> • Frac sand and pipe<br>IRON ORE<br>MARKET DRIVERS<br> • Manufacturing production<br>(e.g., automobiles, railcars, heavy<br>equipment, aerospace)<br> • Non-residential construction activity<br> • Government spending on<br>infrastructure projects<br> • World demand for ores and metals<br> • Oil and gas production<br> • Consumer goods production<br>+0.4% - 0.7% - 0.2% - 1.1%<br>$1,548M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % Metals p % Minerals p % Energy Materials p % Iron Ore<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>2021 VS. 2017 CAGR<br>15 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Edson<br>Prince George<br>Surrey<br>North Battleford<br>Atikokan<br>Brockville<br>Saint John<br>Chicago<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Halifax Quebec Thunder Bay<br>CN’S FOREST PRODUCTS<br>SUPPLY CHAIN<br> Lumber and panels<br> Pulp and paper<br> Ports served by CN<br> 1 CN forest products<br> distribution centres<br>For more information please visit<br>www.cn.ca/forestproducts<br>FOREST<br>PRODUCTS<br>REACHING FARTHER WITH OUR CUSTOMERS<br>Forest products have long been part of CN’s core business, utilizing multiple and often complex supply<br>chains. CN is a critical trade enabler and transportation partner, helping to move our customers’<br>products throughout North America and around the world. Reflecting strong demand for lumber and<br>panels used in home repair, renovation and new construction, CN continues to support its customers<br>with a dedicated fleet.<br>Markets<br>16 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Edson<br>Prince George<br>Surrey<br>North Battleford<br>Atikokan<br>Brockville<br>Saint John<br>Chicago<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Halifax Quebec Thunder Bay<br><br>REVENUES<br>($ millions)<br><br><br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br><br><br><br><br><br><br>RTMs<br>(millions)<br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>KEY FACTS<br> • Largest rail carrier of forest products<br>in North America<br> • Nearly 10% of total CN revenue tied<br>to the housing market<br> • Upgraded fleet of over 20,000<br>premium cars<br>COMMODITIES<br>LUMBER & PANELS<br> • Lumber, oriented strand board (OSB)<br>panels, plywood, siding, engineered<br>wood products, timber mats<br>PULP & PAPER<br> • Woodpulp, newsprint, printing paper,<br>paperboard, containerboard, logs,<br>wood chips, wood pellets<br>MARKET DRIVERS<br>LUMBER & PANELS<br> • Residential construction,<br>repair and remodeling activity,<br>industrial activity<br>PULP & PAPER<br> • Global consumption of pulp,<br>paper, tissue and packaging<br>- 0.7% - 5.4% +1.0 % -4.0 %<br>2021 VS. 2017 CAGR<br>$1,740M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % Lumber and Panels p % Pulp and Paper<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>17 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Joliet<br>East<br>Dubuque<br>East St. Louis<br>Grand Rivers<br>Calvert City<br>Metropolis<br>Mound City<br>Prince<br>George<br>Kamloops Saskatoon<br>Halifax<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br> New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Thunder Bay<br>Saint John<br>Sarnia<br>Regina<br>Fort McMurray<br>Lloydminster<br>Baton Rouge<br>CN’S COAL SUPPLY CHAIN<br> Canadian coal<br> U.S. coal<br> Petroleum coke<br> Ports served by CN<br> 1 Coal mines<br> 1 Petroleum coke sourcing<br> 1 Barge transload terminals<br> s Export terminals<br>For more information please visit<br>www.cn.ca/coal<br>COAL<br>COAL SUPPLY CHAIN COLLABORATION<br>CN collaborates with all stakeholders to maximize the efficiency of getting our customers’ product<br>to market. To provide optimal service, CN works closely with the end-to-end components of the coal<br>supply chain, from mine to export terminal, to understand every detail of our customers’ shipments,<br>adapting services to focus on the entire movement through the complete supply chain.<br>Markets<br>18 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Joliet<br>East<br>Dubuque<br>East St. Louis<br>Grand Rivers<br>Calvert City<br>Metropolis<br>Mound City<br>Prince<br>George<br>Kamloops Saskatoon<br>Halifax<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br> New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Thunder Bay<br>Saint John<br>Sarnia<br>Regina<br>Fort McMurray<br>Lloydminster<br>Baton Rouge<br><br><br><br><br>REVENUES<br>($ millions)<br><br><br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br><br><br>RTMs<br>(millions)<br><br><br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>KEY FACTS<br> • Canadian coal consists of both<br>thermal and metallurgical coal<br> • Opportunities to grow and<br>facilitate metallurgical coal exports<br>through Convent Marine Terminals<br>in Louisiana<br> • CN moves an average of 38 million<br>tons of coal every year<br> • Overall, coal represents 4% of<br>CN revenues<br>COMMODITIES<br> • Grades of bituminous coal from<br>thermal to metallurgical<br> • Metallurgical coke<br> • Petroleum coke<br>MARKET DRIVERS<br> • Price of natural gas<br> • Weather<br> • Environmental regulations<br> • Global supply/demand conditions<br> • Steel production<br> • Power consumption<br>+3.7% +5.8% -0.8 % +6.2%<br>2021 VS. 2017 CAGR<br>$618M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % Canadian Coal – Export p % Petroleum Coke p % U.S. Coal – Export p % U.S. Coal – Domestic<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>19 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Halifax Thunder Bay<br>CN’S GRAIN AND FERTILIZERS<br>SUPPLY CHAIN<br> Canadian grain<br> U.S. grain<br> Fertilizers – potash<br> Fertilizers – other<br> Ports served by CN<br>For more information<br>please visit www.cn.ca/grain<br>and www.cn.ca/fertilizer<br>GRAIN AND<br>FERTILIZERS<br>EVOLUTION AND INNOVATION IN THE GRAIN SUPPLY CHAIN<br>CN’s network investments and hopper car fleet renewal have been complimented by grain companies’<br>and producers’ capacity investments over the past decade. Technology supports the long-term trend of<br>increased grain production, and the supply chain’s efficiency has evolved to deliver more efficient grain<br>movement, especially during times of peak demand. CN’s grain franchise is growing in Canada and the U.S.,<br>and is well positioned as renewable fuel production evolves in North America.<br>Markets<br>20 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Halifax Thunder Bay<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br><br><br><br>REVENUES<br>($ millions)<br><br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br>RTMs<br>(millions)<br><br><br><br><br><br><br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>COMMODITIES<br>GRAIN<br> • Wheat, canola, peas, oats, barley,<br>peas, corn, soybeans, ethanol,<br>distillers dried grains, canola and<br>soybean meal and oil, other oils<br>and fats, malt<br>FERTILIZER<br> • Potash, ammonia nitrate, urea,<br>phosphate fertilizers, anhydrous<br>ammonia, ammonium sulphate,<br>liquid fertilizers<br>MARKET DRIVERS<br>GRAIN<br> • Weather conditions, seeded and<br>harvested acreage, mix of grain<br>crops and crop yield, size and quality<br>of individual crops, inter national<br>market conditions<br>FERTILIZER<br> • Input prices, demand, government<br>policies, international competition<br>$2,475M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % Canadian Grain – Regulated p % Canadian Grain – Commercial p % U.S. Grain – Domestic p % U.S. Grain – Exports p% Fertilizers – Potash p% Fertilizers – Other<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>2021 VS. 2017 CAGR<br>+2.8% +0.4% +0.1% +1.1%<br>KEY FACTS<br> • Canadian grain accounts for roughly<br>two-thirds of CN’s grain-related revenue<br> • Of the 42 new high-throughput<br>elevators on the Prairies, 30 have been<br>or are being built on CN lines<br> • CN’s U.S. grain footprint stretches from<br>the Midwest to the Gulf Coast<br> • CN transports fertilizer throughout<br>North America as well as exports through<br>the Canadian West and East Coasts<br>21 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Joliet<br>Jackson<br>MEXICO<br>Arcadia<br>Chippewa Falls<br>New Richmond<br>Indianapolis<br>Prince George<br>Duluth<br>Regina<br>Saskatoon<br>Halifax<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Thunder Bay<br>Saint John<br>INTERMODAL<br>CN’S INTERMODAL SUPPLY CHAIN<br> International<br> Domestic<br> Ports served by CN<br> 1 Intermodal terminals<br> 1 Logistics parks<br>OFFERING THE BEST OF BOTH WORLDS TO OUR CUSTOMERS<br>Our close and collaborative partnerships with customers and supply chain stakeholders enable<br>the sustainable growth of our intermodal business and allow our customers to reach new markets.<br>CN has been resilient in delivering for our customers as we meet the challenges brought about<br>by global supply chain disruptions, and we continue to work with our customers to utilize our<br>capacity more efficiently, which produces greater returns for our shareholders.<br>Markets<br>22 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Joliet<br>Jackson<br>MEXICO<br>Arcadia<br>Chippewa Falls<br>New Richmond<br>Indianapolis<br>Prince George<br>Duluth<br>Regina<br>Saskatoon<br>Halifax<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Thunder Bay<br>Saint John<br><br><br><br><br>REVENUES<br>($ millions)<br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br>RTMs<br>(millions)<br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>KEY FACTS<br> • Supply chain collaboration<br>agreements with key ports<br> • CargoCool® has one of Canada’s<br>largest reefer fleets<br> • CNTL is one of Canada’s largest<br>trucking companies<br> • Full membership in Equipment<br>Management Pool (EMP)<br> • Dedicated customer service desk<br>COMMODITIES<br>INTERNATIONAL<br> • Import and export containerized traffic<br>DOMESTIC<br> • Consumer products for large retailers<br> • Raw materials, manufactured goods<br>and consumer products for wholesale<br>trucking and logistics clients<br> • International to domestic container<br>transload conversion options<br>for shippers<br>MARKET DRIVERS<br> • North American economy and<br>consumer spending<br> • Global trade patterns<br> • North American industrial<br>production<br>+6.5 % +1.0 % -0.3% -0.4 %<br>2021 VS. 2017 CAGR<br>$4,115M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % International p % Domestic<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>23 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Windsor<br>Milton<br>London<br>Markham<br>Charny<br>St. John’s<br>Jackson<br>Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Sarnia<br>Halifax<br>Thunder Bay<br>New Richmond<br>AUTOMOTIVE<br>CN’S AUTOMOTIVE SUPPLY CHAIN<br> Finished vehicles<br> Auto parts<br> Ports served by CN<br> 1 CN automotive facilities<br>For more information please visit<br>www.cn.ca/automotive<br>WORKING WITH CUSTOMERS TO MITIGATE TURBULENT TIMES<br>CN’s automotive business maximizes our network advantage by providing consistent and reliable<br>service, proactive communication, and continued investment in infrastructure and equipment. While<br>CN continues to work closely with customers to mitigate the impact of global automotive supply chain<br>disruptions and vehicle chip shortages, we are ready to handle future customer demand in an efficient<br>and cost-effective manner.<br>Markets<br>24 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Windsor<br>Milton<br>London<br>Markham<br>Charny<br>St. John’s<br>Jackson<br>Saskatoon<br>Saint John<br>Chicago<br>Quebec<br>Detroit<br>Mobile<br>Toronto<br>Montreal<br>Memphis<br>Moncton<br>New Orleans<br>Edmonton<br>Calgary<br>Winnipeg<br>Prince Rupert<br>Vancouver<br>Sarnia<br>Halifax<br>Thunder Bay<br>New Richmond<br><br><br>REVENUES<br>($ millions)<br><br><br><br>CARLOADS<br>(thousands)<br><br><br><br><br>RTMs<br>(millions)<br><br><br><br><br><br><br><br>AVERAGE LENGTH<br>OF HAUL<br>(miles)<br><br>METRICS<br>KEY FACTS<br> • 2.3 million finished vehicles<br>handled annually<br> • 18 automotive facilities<br> • Originating 16 North American<br>vehicle assembly plants and ports<br> • 5,000 multi-level railcars in<br>CN’s fleet<br>COMMODITIES<br> • Finished vehicles<br> • Auto parts<br>MARKET DRIVERS<br> • Global and North American<br>automotive production and sales<br> • Consumer confidence and<br>disposable income<br> • Average age of vehicles in<br>North America<br> • Price of fuel<br>-8.6% - 9.6 % -3.9% -13.4 %<br>2021 VS. 2017 CAGR<br>$576M<br>2021 REVENUES<br>BUSINESS UNIT OVERVIEW AND MARKET DRIVERS<br>p % Finished Vehicles p % Auto Parts<br>202 COMMODITY BREAKDOWN<br>(% of revenues)<br>25 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions, unless otherwise indicated)<br>2020 2021<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>REVENUES 3,545 3,209 3,409 3,656 13,819 3,535 3,598 3,591 3,753 14,477<br>OPERATING EXPENSES<br>Labor and fringe benefits 743 563 662 755 2,723 785 692 728 674 2,879<br>Purchased services and material 578 518 491 565 2,152 549 527 502 504 2,082<br>Fuel 360 227 262 303 1,152 364 380 350 419 1,513<br>Depreciation and amortization 392 404 391 402 1,589 404 406 405 383 1,598<br>Equipment rents 105 107 123 97 432 89 83 82 82 336<br>Casualty and other 152 119 114 123 508 154 128 99 125 506<br>Loss (recovery) on assets held for sale - 486 - - 486 (137) - - - (137)<br>Transaction-related costs - - - - – - - 84 - 84<br>Total operating expenses 2,330 2,424 2,043 2,245 9,042 2,208 2,216 2,250 2,187 8,861<br>Operating income 1,215 785 1,366 1,411 4,777 1,327 1,382 1,341 1,566 5,616<br>Interest expense (139) (144) (137) (134) (554) (130) (158) (197) (125) (610)<br>Other components of net periodic<br> benefit income (1) 72 74 74 72 292 99 98 98 112 407<br>Merger termination fee - - - - - - - 886 - 886<br>Other income (expense) 11 (4) (1) - 6 (2) 51 (27) 21 43<br>Income before income taxes (1) 1,159 711 1,302 1,349 4,521 1,294 1,373 2,101 1,574 6,342<br>Income tax expense (1) (152) (171) (320) (333) (976) (318) (337) (415) (373) (1,443)<br>Net income (1) 1,007 540 982 1,016 3,545 976 1,036 1,686 1,201 4,899<br>Operating ratio 65.7% 75.5% 59.9% 61.4% 65.4% 62.5% 61.6% 62.7% 58.3% 61.2%<br>EARNINGS PER SHARE ($)(1)<br>Basic 1.41 0.76 1.38 1.43 4.98 1.37 1.46 2.38 1.70 6.91<br>Diluted 1.41 0.76 1.38 1.42 4.97 1.37 1.46 2.37 1.70 6.90<br>WEIGHTED AVERAGE NUMBER<br>OF SHARES (millions)<br>Basic 712.3 710.7 711.0 711.2 711.3 711.0 709.0 708.7 705.3 708.5<br>Diluted 713.9 712.2 712.8 713.2 713.0 712.8 710.6 710.4 707.4 710.3<br>Dividends declared per share ($) 0.575 0.575 0.575 0.575 2.300 0.615 0.615 0.615 0.615 2.300<br>QUARTERLY CONSOLIDATED<br>STATEMENTS OF INCOME<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>Financials<br>26 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions)<br>2020 2021<br>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4<br>ASSETS<br>Current assets<br>Cash and cash equivalents 488 375 285 569 518 569 2,194 838<br>Restricted cash and cash equivalents 525 529 531 531 529 525 493 503<br>Accounts receivable 1,269 1,063 1,149 1,054 1,177 1,219 1,210 1,074<br>Material and supplies 679 649 616 583 633 638 622 589<br>Income taxes receivable 371 345 332 - - - - -<br>Other current assets 284 282 243 365 517 535 418 422<br>Total current assets 3,616 3,243 3,156 3,102 3,374 3,486 4,937 3,426<br>Properties 41,393 40,478 40,445 40,069 39,816 39,918 40,753 41,178<br>Operating lease right-of-use assets 503 466 447 435 403 395 444 445<br>Pension asset (1) 488 594 696 777 959 1,085 1,209 3,050<br>Intangible assets, goodwill and other 435 418 414 421 416 459 431 439<br>Advance to KCS and other transaction costs - - - - - 921 - -<br>Total assets (1) 46,435 45,199 45,158 44,804 44,968 46,264 47,774 48,538<br>LIABILITIES AND SHAREHOLDERS’ EQUITY<br>Current liabilities<br>Accounts payable and other 2,146 2,300 2,125 2,364 2,162 2,171 2,328 2,612<br>Current portion of long-term debt 2,592 1,055 871 910 676 1,579 1,224 508<br>Total current liabilities 4,738 3,355 2,996 3,274 2,838 3,750 3,552 3,120<br>Deferred income taxes (1) 8,383 8,267 8,320 8,271 8,407 8,486 8,698 9,303<br>Other liabilities and deferred credits 674 625 563 534 529 508 451 427<br>Pension and other postretirement benefits 742 734 729 767 759 752 751 645<br>Long-term debt 12,695 13,107 12,915 11,996 12,252 12,140 12,332 11,977<br>Operating lease liabilities 369 336 322 311 289 284 321 322<br>SHAREHOLDERS’ EQUITY<br>Common shares 3,658 3,667 3,692 3,698 3,710 3,709 3,727 3,704<br>Common shares in Share Trusts (126) (124) (115) (115) (96) (97) (104) (103)<br>Additional paid-in capital 363 357 367 379 368 379 381 397<br>Accumulated other comprehensive loss (1) (3,153) (3,348) (3,424) (3,711) (3,728) (3,766) (3,581) (2,241)<br>Retained earnings (1) 18,092 18,223 18,793 19,400 19,640 20,119 21,246 20,987<br>Total shareholders’ equity (1) 18,834 18,775 19,313 19,651 19,894 20,344 21,669 22,744<br>Total liabilities and shareholders' equity (1) 46,435 45,199 45,158 44,804 44,968 46,264 47,774 48,538<br>QUARTERLY CONSOLIDATED<br>BALANCE SHEETS<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>27 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions)<br>2020 2021<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>OPERATING ACTIVITIES<br>Net income (1) 1,007 540 982 1,016 3,545 976 1,036 1,686 1,201 4,899<br>Adjustments to reconcile net income<br> to net cash provided by<br> operating activities:<br> Depreciation and amortization 392 404 391 402 1,589 404 406 405 383 1,598<br> Pension income and funding (1) (86) (40) (35) (50) (211) (112) (52) (51) (99) (314)<br> Amortization of bridge financing<br> and other fees - - - - - - 32 65 - 97<br> Deferred income taxes (1) 292 (16) 91 114 481 152 98 109 154 513<br> Loss (recovery) on assets<br> held for sale<br> - 486 - - 486 (137) - - - (137)<br>Changes in operating assets<br> and liabilities:<br> Accounts receivable (1) 187 (96) 68 158 (129) (49) 21 135 (22)<br> Material and supplies (52) 24 28 20 20 (49) (5) 17 30 (7)<br> Accounts payable and other (406) 114 (208) 451 (49) (212) (10) 82 281 141<br> Other current assets 7 (1) 19 (25) - 1 18 40 (24) 35<br>Other operating activities, net 27 59 48 12 146 58 1 84 25 168<br>Net cash provided by operating activities 1,180 1,757 1,220 2,008 6,165 952 1,475 2,458 2,086 6,971<br>INVESTING ACTIVITIES<br>Property additions (603) (714) (691) (855) (2,863) (412) (729) (836) (914) (2,891)<br>Advance for acquisition and<br> other transaction-related costs - - - - - - (908) - - (908)<br>Refund of advance for acquisition - - - - - - - 886 - 886<br>Acquisitions, net of cash acquired - - (8) - (8) - - - - -<br>Other investing activities, net (4) (35) (23) (13) (75) (1) (5) (8) 54 40<br>Net cash used in investing activities (607) (749) (722) (868) (2,946) (413) (1,642) 42 (860) (2,873)<br>QUARTERLY CONSOLIDATED<br>STATEMENTS OF CASH FLOWS<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>Financials<br>28 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions)<br>2020 2021<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>FINANCING ACTIVITIES<br>Issuance of debt 947 810 - 32 1,789 389 14 - - 403<br>Repayment of debt (606) (574) (11) (30) (1,221) (258) (16) (568) (19) (861)<br>Change in commercial paper, net 304 (983) (160) (434) (1,273) 13 903 164 (1,014) 66<br>Bridge financing and other fees - - - - - - (93) (4) - (97)<br>Settlement of foreign exchange<br> forward contracts on debt 21 40 (22) (13) 26 (9) (15) 25 (9) (8)<br>Issuance of common shares for<br> stock options exercised 22 7 22 5 56 20 2 19 11 52<br>Withholding taxes remitted on the net<br> settlement of equity settled awards (43) (1) (4) - (48) (27) - (5) (5) (37)<br>Repurchase of common shares (379) - - - (379) (277) (137) (72) (1,096) (1,582)<br>Purchase of common shares for<br> settlement of equity settled awards (2) (1) (6) - (9) - - (25) (2) (27)<br>Purchase of common shares by<br> Share Trusts (6) (5) 3 (6) (14) (7) (7) (7) (5) (26)<br>Dividends paid (409) (408) (408) (409) (1,634) (436) (436) (435) (433) (1,740)<br>Net cash used in financing activities (151) (1,115) (586) (855) (2,707) (592) 215 (908) (2,572) (3,857)<br>Effect of foreign exchange fluctuations<br> on cash, cash equivalents, restricted<br> cash, and restricted cash equivalents 3 (2) - (1) - - (1) 1 - -<br>Net increase (decrease) in cash,<br> cash equivalents, restricted cash,<br> and restricted cash equivalents 425 (109) (88) 284 512 (53) 47 1,593 (1,346) 241<br>Cash, cash equivalents, restricted cash,<br> and restricted cash equivalents,<br> beginning of period 588 1,013 904 816 588 1,100 1,047 1,094 2,687 1,100<br>Cash, cash equivalents, restricted cash,<br> and restricted cash equivalents,<br> end of period 1,013 904 816 1,100 1,100 1,047 1,094 2,687 1,341 1,341<br>Cash and cash equivalents,<br> end of period 488 375 285 569 569 518 569 2,194 838 838<br>Restricted cash and cash equivalents,<br> end of period 525 529 531 531 531 529 525 493 503 503<br>Cash, cash equivalents, restricted cash,<br> and restricted cash equivalents,<br> end of period 1,013 904 816 1,100 1,100 1,047 1,094 2,687 1,341 1,341<br>SUPPLEMENTAL<br>CASH FLOW INFORMATION<br>Interest paid (183) (92) (186) (90) (551) (174) (85) (174) (79) (512)<br>Income taxes refunded (paid) 9 2 (371) 7 (353) (188) (193) (201) (177) (759)<br>29 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>2020 2021<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>REVENUES ($ millions)<br>Petroleum and chemicals 791 585 591 664 2,631 661 685 715 755 2,816<br>Metals and minerals 405 308 342 354 1,409 368 377 410 393 1,548<br>Forest products 433 413 421 433 1,700 429 451 425 435 1,740<br>Coal 143 140 118 126 527 126 158 169 165 618<br>Grain and fertilizers 610 649 608 742 2,609 713 609 510 643 2,475<br>Intermodal 849 874 992 1,036 3,751 968 1,037 1,061 1,049 4,115<br>Automotive 193 69 177 152 591 158 135 137 146 576<br>Total freight revenues 3,424 3,038 3,249 3,507 13,218 3,423 3,452 3,427 3,586 13,888<br>Other revenues 121 171 160 149 601 112 146 164 167 589<br>Total revenues 3,545 3,209 3,409 3,656 13,819 3,535 3,598 3,591 3,753 14,477<br>STATISTICAL OPERATING DATA<br>Gross ton miles (GTMs) (millions) 113,979 102,386 113,693 125,310 455,368 120,780 116,735 110,690 110,196 458,401<br>Revenue ton miles (RTMs) (millions) 58,370 52,517 56,296 63,207 230,390 61,454 59,246 55,875 56,563 233,138<br>Carloads (thousands) 1,335 1,294 1,440 1,526 5,595 1,431 1,469 1,427 1,374 5,701<br>Route miles (includes Canada<br> and the U.S.) 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500 19,500<br>Employees (end of period) 23,975 22,112 24,008 24,381 24,381 24,577 24,376 23,765 22,604 22,604<br>Employees (average for the period) 25,264 22,431 23,177 24,272 23,786 24,508 24,410 24,312 23,107 24,084<br>QUARTERLY FINANCIAL AND<br>STATISTICAL DATA<br>Financials<br>30 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| (1) Based on Federal Railroad Administration (FRA) reporting criteria.<br>Statistical operating data, key operating measures and safety indicators are unaudited and based on estimated data available at<br>such time and are subject to change as more complete information becomes available. Definitions of these indicators are provided<br>on our website, www.cn.ca/glossary.<br>Unaudited<br>2020 2021<br>Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year<br>KEY OPERATING MEASURES<br>Freight revenue per RTM (cents) 5.87 5.78 5.77 5.55 5.74 5.57 5.83 6.13 6.34 5.96<br>Freight revenue per carload ($) 2,565 2,348 2,256 2,298 2,362 2,392 2,350 2,402 2,610 2,436<br>GTMs per average number of<br> employees (thousands) 4,512 4,564 4,905 5,163 19,144 4,928 4,782 4,553 4,769 19,033<br>Operating expenses per GTM (cents) 2.04 2.37 1.80 1.79 1.99 1.83 1.90 2.03 1.98 1.93<br>Labor and fringe benefits expense<br> per GTM (cents) 0.65 0.55 0.58 0.60 0.60 0.65 0.59 0.66 0.61 0.63<br>Diesel fuel consumed<br> (US gallons in millions) 108.9 90.2 97.2 110.9 407.2 110.4 101.4 93.7 97.3 402.8<br>Average fuel price ($/US gallon) 2.90 2.08 2.27 2.37 2.42 2.90 3.24 3.33 3.70 3.28<br>Fuel efficiency (US gallons of locomotive<br> fuel consumed per 1,000 GTMs) 0.955 0.881 0.855 0.885 0.894 0.914 0.869 0.847 0.883 0.879<br>SAFETY INDICATORS(1)<br>Injury frequency rate<br> (per 200,000 person hours) 2.27 1.39 1.54 1.31 1.64 1.60 0.97 1.42 1.29 1.33<br>Accident rate (per million train miles) 1.98 2.13 1.70 1.69 1.87 1.33 1.99 2.05 2.06 1.82<br>31 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| CN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN may use non-GAAP<br>measures that do not have any standardized meaning prescribed by GAAP, including adjusted performance measures, free cash flow,<br>constant currency, adjusted debt-to-adjusted EBITDA multiple and return on invested capital (ROIC) and adjusted ROIC. These non-GAAP<br>measures may not be comparable to similar measures presented by other companies. From management’s perspective, these non-GAAP<br>measures are useful measures of performance and provide investors with supplementary information to assess the Company’s results of<br>operations and liquidity. These non-GAAP measures should not be considered in isolation or as a substitute for financial measures prepared<br>in accordance with GAAP.<br>Adjusted performance measures<br>Adjusted net income, adjusted earnings per share, adjusted<br>operating income, adjusted operating expenses and adjusted<br>operating ratio are non-GAAP measures that are used to<br>set performance goals and to measure CN’s performance.<br>Management believes that these adjusted performance<br>measures provide additional insight to management and<br>investors into the Company’s operations and underlying<br>business trends as well as facilitate period-to-period<br>comparisons, as they exclude certain significant items that<br>are not reflective of CN’s underlying business operations and<br>could distort the analysis of trends in business performance.<br>NON-GAAP MEASURES<br>These items may include:<br>i. operating expense adjustments: workforce reduction<br>program, depreciation expense on the deployment of<br>replacement system, advisory fees related to shareholder<br>matters, losses and recoveries from assets held for sale,<br>business acquisition-related costs;<br>ii. non-operating expense adjustments: business acquisition-<br>related financing fees, merger termination income, gains<br>and losses on disposal of property; and<br>iii. the effect of tax law changes and rate enactments.<br>These non-GAAP measures do not have any standardized<br>meaning prescribed by GAAP and, therefore, may not be<br>comparable to similar measures presented by other companies.<br>Adjusted net income is defined as Net income in accordance<br>with GAAP adjusted for certain significant items. Adjusted<br>diluted earnings per share is defined as adjusted net income<br>divided by the weighted-average diluted shares outstanding.<br>Financials<br>32 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions, except per share data)<br>Year ended December 31 2017 2018 2019 2020 2021<br>Net income (1) 5,470 4,312 4,198 3,545 4,899<br>Adjustments:<br> Operating expense adjustments:<br> Workforce reduction program – 27 31 – 39<br> Depreciation expense on the deployment of replacement system – – 84 – –<br> Advisory fees related to shareholder matters – – – – 20<br> Loss (recovery) on assets held for sale – – – 486 (137)<br> Transaction-related costs – – – – 84<br> Non-operating expense adjustments:<br> Amortization of bridge financing and other fees – – – – 97<br> Merger termination fee – – – – (886)<br> Gains on disposal of property – (338) – – –<br> Tax adjustments:<br> Tax effect of adjustments (2) – 39 (30) (123) 109<br> Tax law changes and rate enactments (1,706) – (112) (141) –<br>Total adjustments (1,706) (272) (27) 222 (674)<br>Adjusted net income (1) 3,764 4,040 4,171 3,767 4,225<br>Diluted earnings per share (1) 7.22 5.85 5.81 4.97 6.90<br>Impact of adjustments, per share (2.25) (0.37) (0.03) 0.31 (0.95)<br>Adjusted diluted earnings per share (1) 4.97 5.48 5.78 5.28 5.95<br>The following table provides a reconciliation of Net income and Earnings per share in accordance with GAAP, as reported for the<br>periods specified, to the non-GAAP adjusted performance measures presented herein:<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>(2) The tax impact of adjustments is based on the nature of the item for tax purposes and related tax rates in the applicable jurisdiction.<br><br>33 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions, except percentages)<br>Year ended December 31 2017 2018 2019 2020 2021<br>Operating income 5,243 5,493 5,593 4,777 5,616<br>Operating expense adjustments:<br> Workforce reduction program – 27 31 – 39<br> Depreciation expense on the deployment of replacement system – – 84 – –<br> Advisory fees related to shareholder matters – – – – 20<br> Loss (recovery) on assets held for sale – – – 486 (137)<br> Transaction-related costs – – – – 84<br>Total operating expense adjustments – 27 115 486 6<br>Adjusted operating income 5,243 5,520 5,708 5,263 5,622<br>Operating expenses 7,798 8,828 9,324 9,042 8,861<br>Total operating expense adjustments – (27) (115) (486) (6)<br>Adjusted operating expenses 7,798 8,801 9,209 8,556 8,855<br>Operating ratio (1) 59.8% 61.6% 62.5% 65.4% 61.2%<br>Impact of adjustments –% (0.1)% (0.8)% (3.5)% –%<br>Adjusted operating ratio 59.8% 61.5% 61.7% 61.9% 61.2%<br>Adjusted performance measures (cont.)<br>Adjusted operating income is defined as Operating income<br>in accordance with GAAP adjusted for certain significant<br>operating expense items. Adjusted operating expenses is<br>defined as Operating expenses in accordance with GAAP<br>adjusted for certain significant operating expense items.<br>Adjusted operating ratio is defined as adjusted operating<br>expenses as a percentage of revenues.<br>For the year ended December 31, 2017, the Company reported<br>adjusted net income of $3,764 million (2), or $4.97 per diluted<br>share (2), which excludes a net deferred income tax recovery of<br>$1,706 million ($2.25 per diluted share) consisting of the<br>following:<br> • in the fourth quarter, a deferred income tax recovery of<br>$1,764 million ($2.33 per diluted share) resulting from the<br>enactment of a lower U.S. federal corporate income tax rate<br>due to the Tax Cuts and Jobs Act (“U.S. Tax Reform”) and a<br>deferred income tax expense of $50 million ($0.07 per diluted<br>share) resulting from the enactment of higher provincial<br>corporate income tax rates;<br>The following table provides a reconciliation of Operating<br>income, Operating expenses and operating ratio, as reported<br>for the periods specified, to the non-GAAP adjusted<br>performance measures presented herein:<br>(1) Operating ratio is defined as operating expenses as a percentage of revenues.<br>(2) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br> • in the third quarter, a deferred income tax expense of<br>$31 million ($0.04 per diluted share) resulting from the<br>enactment of a higher state corporate income tax rate;<br> • in the second quarter, a deferred income tax recovery<br>of $18 million ($0.02 per diluted share) resulting from<br>the enactment of a lower provincial corporate income tax<br>rate; and<br> • in the first quarter, a deferred income tax recovery of<br>$5 million ($0.01 per diluted share) resulting from the<br>enactment of a lower provincial corporate income<br>tax rate.<br>NON-GAAP MEASURES (CONT.)<br>Financials<br>34 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| For the year ended December 31, 2018, the Company reported<br>adjusted net income of $4,040 million (2), or $5.48 per diluted<br>share (2), which excludes employee termination benefits and<br>severance costs related to a workforce reduction program of<br>$27 million, or $20 million after-tax ($0.03 per diluted share)<br>in the fourth quarter and gains on disposal of property of<br>$338 million, or $292 million after-tax ($0.40 per diluted share),<br>consisting of the following:<br> • in the fourth quarter, a gain previously deferred on the 2014<br>disposal of a segment of the Guelph subdivision located<br>between Georgetown and Kitchener, Ontario, together with<br>the rail fixtures and certain passenger agreements (the<br> “Guelph”), of $79 million, or $70 million after-tax ($0.10 per<br>diluted share);<br> • in the third quarter, a gain on disposal of property located<br>in Montreal, Quebec (the “Doney and St-Francois Spurs”)<br>of $36 million, or $32 million after-tax ($0.04 per diluted<br>share); and<br> • in the second quarter, a gain on transfer of the Company’s<br>finance lease in the passenger rail facilities in Montreal,<br>Quebec, together with its interests in related railway<br>operating agreements (the “Central Station Railway Lease”),<br>of $184 million, or $156 million after-tax ($0.21 per diluted<br>share), and a gain on disposal of land located in Calgary,<br>Alberta, excluding the rail fixtures (the “Calgary Industrial<br>Lead”), of $39 million, or $34 million after-tax ($0.05 per<br>diluted share).<br>For the year ended December 31, 2019, the Company reported<br>adjusted net income of $4,171 million (2), or $5.78 per diluted<br>share (2), which excludes employee termination benefits and<br>severance costs related to a workforce reduction program of<br>$31 million, or $23 million after-tax ($0.03 per diluted share)<br>in the fourth quarter; a deferred income tax recovery of<br>$112 million ($0.15 per diluted share) in the second quarter,<br>resulting from the enactment of a lower provincial corporate<br>income tax rate; and a depreciation expense of $84 million,<br>or $62 million after-tax ($0.09 per diluted share) in the first<br>quarter, related to costs previously capitalized for a Positive<br>Train Control (PTC) back office system following the deployment<br>of a replacement system.<br>For the year ended December 31, 2020, the Company reported<br>adjusted net income of $3,767 million (2), or $5.28 per diluted<br>share (2), which excludes a loss of $486 million, or $363 million<br>after-tax ($0.51 per diluted share) in the second quarter,<br>resulting from the Company’s decision to market for sale for<br>on-going rail operations, certain non-core lines in Wisconsin,<br>Michigan and Ontario, and a current income tax recovery<br>of $141 million ($0.20 per diluted share) in the first quarter<br>resulting from the enactment of the Coronavirus Aid, Relief,<br>and Economic Security (CARES) Act, a U.S. tax-and-spending<br>package aimed at providing additional stimulus to address<br>the economic impact of the COVID-19 pandemic.<br>For the year ended December 31, 2021, the Company reported<br>adjusted net income of $4,225 million (2), or $5.95 per diluted<br>share (2), which excludes:<br> • employee termination benefits and severance costs related to<br>a workforce reduction program of $39 million, or $29 million<br>after-tax ($0.04 per diluted share) recorded in the third<br>quarter in Labor and fringe benefits within the Consolidated<br>Statements of Income;<br> • advisory fees related to shareholder matters of $20 million,<br>or $15 million after-tax ($0.02 per diluted share) of which<br>$13 million, or $10 million after-tax ($0.02 per diluted share)<br>was recorded in the fourth quarter and $7 million, or $5 million<br>after-tax ($0.01 per diluted share) was recorded in the third<br>quarter in Casualty and other within the Consolidated<br>Statements of Income;<br> • the recovery of $137 million, or $102 million after-tax ($0.14 per<br>diluted share) recorded in the first quarter related to the loss<br>on assets held for sale in the second quarter of 2020, to reflect<br>an agreement for the sale for on-going rail operations, certain<br>non-core rail lines in Wisconsin, Michigan and Ontario to a<br>short line operator;<br> • transaction-related costs, consisting of an advance to Kansas<br>City Southern (KCS) and a related refund, net of transaction<br>costs, of $84 million, or $70 million after-tax ($0.10 per diluted<br>share), recorded in the third quarter resulting from the<br>terminated CN Merger Agreement with KCS;<br> • amortization of bridge financing and other fees of $65 million,<br>or $60 million after-tax ($0.08 per diluted share) recorded in<br>the third quarter and $32 million, or $24 million after-tax<br>($0.03 per diluted share) recorded in the second quarter,<br>resulting from the KCS transaction, recorded in Interest<br>expense within the Consolidated Statements of Income; and<br> • merger termination fee paid by KCS to CN of $886 million, or<br>$770 million after-tax ($1.08 per diluted share), recorded in the<br>third quarter resulting from KCS’ notice of termination of the<br>CN Merger Agreement with KCS.<br>(2) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>35 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| (1) Relates to the terminated CN KCS merger agreement. See Note 3 – Acquisitions, Terminated CN KCS merger agreement, to the Company’s 2021 Annual Consolidated Financial<br>Statements and the section entitled Adjusted performance measures to the Company’s 2021 Annual MD&A filed on February 1, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>(2) Relates to the acquisitions of H&R Transport Limited (“H&R”) and the TransX Group of Companies (“TransX”). See the section entitled Liquidity and capital resources – Investing<br>activities to the Company’s 2021 Annual MD&A filed on February 1, 2022, which may be found online on SEDAR at www.sedar.com, on the SEC’s website at www.sec.gov<br>through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br>Unaudited<br>($ millions)<br>Year ended December 31 2017 2018 2019 2020 2021<br>Net cash provided by operating activities 5,516 5,918 5,923 6,165 6,971<br>Net cash used in investing activities (2,738) (3,404) (4,190) (2,946) (2,873)<br>Net cash provided before financing activities 2,778 2,514 1,733 3,219 4,098<br>Adjustments:<br> Transaction-related costs (1) – – – – 125<br> Advance for acquisition (1) – – – – 845<br> Refund of advance for acquisition (1) – – – – (886)<br> Merger termination fee (1) – – – – (886)<br> Acquisition, net of cash acquired (2) – – 259 8 –<br>Total adjustments – – 259 8 (802)<br>Free cash flow 2,778 2,514 1,992 3,227 3,296<br>Free cash flow<br>Free cash flow is a useful measure of liquidity as it demonstrates<br>the Company’s ability to generate cash for debt obligations and<br>for discretionary uses such as payment of dividends, share<br>repurchases and strategic opportunities. The Company defines<br>its free cash flow measure as the difference between net cash<br>provided by operating activities and net cash used in investing<br>activities, adjusted for the impact of (i) business acquisitions and<br>(ii) merger transaction-related payments, cash receipts and<br>cash income taxes, which are items that are not indicative of<br>Constant currency<br>Financial results at constant currency allow results to be viewed<br>without the impact of fluctuations in foreign currency exchange<br>rates, thereby facilitating period-to-period comparisons in<br>the analysis of trends in business performance. Measures<br>at constant currency are considered non-GAAP measures and<br>do not have any standardized meaning prescribed by GAAP<br>and, therefore, may not be comparable to similar measures<br>presented by other companies. Financial results at constant<br>currency are obtained by translating the current period results<br>operating trends. Free cash flow does not have any<br>standardized meaning prescribed by GAAP and, therefore,<br>may not be comparable to similar measures presented<br>by other companies.<br>The following table provides a reconciliation of Net cash<br>provided by operating activities in accordance with GAAP,<br>as reported for the periods specified, to the non-GAAP<br>free cash flow presented herein:<br>denominated in US dollars at the weighted average foreign<br>exchange rates used to translate transactions denominated in<br>US dollars of the comparable period of the prior year.<br>The average foreign exchange rates were $1.25 and $1.34 per<br>US$1.00, for the years ended December 31, 2021 and 2020,<br>respectively.<br>On a constant currency basis, the Company’s Net Income for<br>the year ended December 31, 2021 would have been higher by<br>$166 million ($0.23 per diluted share).<br>NON-GAAP MEASURES (CONT.)<br>Financials<br>36 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Unaudited<br>($ millions, except per share data)<br><br>Year ended December 31 2021<br>Constant<br>currency<br>impact 2020<br>% Change<br>at constant<br>currency<br>Fav (Unfav)<br>Revenues<br>Petroleum and chemicals 2,816 128 2,631 12%<br>Metals and minerals 1,548 83 1,409 16%<br>Forest products 1,740 93 1,700 8%<br>Coal 618 17 527 20%<br>Grain and fertilizers 2,475 80 2,609 (2%)<br>Intermodal 4,115 95 3,751 12%<br>Automotive 576 32 591 3%<br>Total freight revenues 13,888 528 13,218 9%<br>Other revenues 589 29 601 3%<br>Total revenues 14,477 557 13,819 9%<br>Operating expenses<br>Labor and fringe benefits 2,879 65 2,723 (8%)<br>Purchased services and material 2,082 60 2,152 –%<br>Fuel 1,513 94 1,152 (39%)<br>Depreciation and amortization 1,598 44 1,589 (3%)<br>Equipment rents 336 19 432 18%<br>Casualty and other 506 27 508 (5%)<br>Loss (recovery) on assets held for sale (137) (12) 486 131%<br>Transaction-related costs 84 47 – N/A<br>Total operating expenses 8,861 344 9,042 (2%)<br>Operating income 5,616 213 4,777 22%<br>Interest expense (610) (35) (554) (16%)<br>Other components of net periodic benefit income (1) 407 – 292 39%<br>Merger termination fee 886 39 – N/A<br>Other income 43 4 6 683%<br>Income before income taxes (1) 6,342 221 4,521 45%<br>Income tax expense (1) (1,443) (55) (976) (53%)<br>Net income (1) 4,899 166 3,545 43%<br>Diluted earnings per share (1) 6.90 0.23 4.97 43%<br>(1) In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective<br>approach. See the Company’s selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at<br>www.sedar.com, on the SEC’s website at www.sec.gov through EDGAR, and on the Company’s website at www.cn.ca in the Investors section, for additional information.<br><br>The following table provides a reconciliation of the impact of constant currency and related percentage change at constant<br>currency on the financial results, as reported for the year ended December 31, 2021:<br>37 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| Adjusted debt-to-adjusted EBITDA multiple<br>Management believes that the adjusted debt-to-adjusted<br>EBITDA multiple is a useful credit measure because it reflects<br>the Company’s ability to service its debt and other long-term<br>obligations. The Company calculates the adjusted debt-to-<br>adjusted EBITDA multiple as adjusted debt divided by the last<br>twelve months of adjusted EBITDA. Adjusted debt is defined as<br>the sum of Long-term debt and Current portion of long-term<br>debt as reported on the Company’s Consolidated Balance<br>Sheets as well as Operating lease liabilities, including current<br>portion and pension plans in deficiency recognized on the<br>Company’s Consolidated Balance Sheets due to the debt-like<br>nature of their contractual and financial obligations. Adjusted<br>EBITDA is calculated as Net income excluding Interest expense,<br>Income tax expense, Depreciation and amortization, operating<br>lease cost, Other components of net periodic benefit income,<br>Other income (loss), and other significant items that are not<br>reflective of CN’s underlying business operations and which<br>could distort the analysis of trends in business performance.<br>Adjusted debt and adjusted EBITDA are non-GAAP measures<br>used to compute the Adjusted debt-to-adjusted EBITDA<br>multiple. These measures do not have any standardized<br>meaning prescribed by GAAP and, therefore, may not be<br>comparable to similar measures presented by other companies.<br>The following table provides a reconciliation of debt and Net<br>income in accordance with GAAP, as reported for the periods<br>specified, to the adjusted measures presented herein, which<br>have been used to calculate the non-GAAP adjusted debt-to-<br>adjusted EBITDA multiple:<br>(1) Represents the present value of operating lease payments.<br>(2) Represents the total funded deficit of all defined benefit pension plans with a<br>projected benefit obligation in excess of plan assets.<br>(3) In the first quarter of 2022, the Company changed its method of calculating<br>market-related values of pension assets for its defined benefit plans using a<br>retrospective approach. See the Company’s selected financial information restated<br>for change in accounting policy filed on September 9, 2022, which may be found<br>online on SEDAR at www.sedar.com, on the SEC’s website at www.sec.gov through<br>EDGAR, and on the Company’s website at www.cn.ca in the Investors section, or<br>additional information.<br>(4) Represents the operating lease costs recorded in Purchased services and material<br>and Equipment rents within the Consolidated Statements of Income.<br>(5) Relates to employee termination benefits and severance costs for a workforce<br>reduction program, recorded in Labor and fringe benefits within the Consolidated<br>Statements of Income.<br>(6) Relates to advisory fees related to shareholder matters recorded in Casualty<br>and other within the Consolidated Statements of Income.<br>(7) Relates to the loss (recovery) on assets held for sale resulting from the Company<br>entering into an agreement for the sale of non-core lines.<br>(8) Relates to the terminated CN KCS merger agreement.<br>(9) Adjusted EBITDA for 2019 and 2018 has been restated to include the workforce<br>reduction program adjustment in order to conform with the current definition<br>and be comparable with adjustments made in 2021.<br>Unaudited<br>($ millions, unless otherwise indicated)<br>As at and for the year ended December 31 2017 2018 2019 2020 2021<br>Debt 10,828 12,569 13,796 12,906 12,485<br>Adjustments:<br> Operating lease liabilities, including current portion (1) 478 579 501 418 430<br> Pension plans in deficiency (2) 455 477 521 553 447<br>Adjusted debt 11,761 13,625 14,818 13,877 13,362<br>Net income (3) 5,470 4,312 4,198 3,545 4,899<br>Interest expense 481 489 538 554 610<br>Income tax expense (recovery) (3) (400) 1,348 1,207 976 1,443<br>Depreciation and amortization 1,281 1,329 1,562 1,589 1,598<br>Operating lease cost (4) 191 218 171 143 131<br>Other components of net periodic benefit income (3) (296) (280) (297) (292) (407)<br>Other income (12) (376) (53) (6) (43)<br>Adjustments:<br> Workforce reduction program (5) – 27 31 – 39<br> Advisory fees related to shareholder matters (6) – – – – 20<br> Loss (recovery) on assets held for sale (7) – – – 486 (137)<br> Transaction-related costs (8) – – – – 84<br> Merger termination fee (8) – – – – (886)<br>Adjusted EBITDA (9) 6,715 7,067 7,357 6,995 7,351<br>Adjusted debt-to-adjusted EBITDA multiple (times) 1.75 1.93 2.01 1.98 1.82<br>NON-GAAP MEASURES (CONT.)<br>Financials<br>38 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| (1) In the first quarter of 2022, the Company changed its method of calculating<br>market-related values of pension assets for its defined benefit plans using a<br>retrospective approach. See the Company’s selected financial information restated<br>for change in accounting policy filed on September 9, 2022, which may be found<br>online on SEDAR at www.sedar.com, on the SEC’s website at www.sec.gov through<br>EDGAR, and on the Company’s website at www.cn.ca in the Investors section, or<br>additional information.<br>(2) The effective tax rate, defined as Income tax expense as a percentage of Income<br>before income taxes, used to calculate the tax on Interest expense for 2021 was<br>22.8% (2020 - 21.6%, 2019 - 22.3%, 2018 - 23.8%, 2017 - 25.8%). Due to the negative<br>effective tax rate reported by the Company in 2017, tax on interest expense for 2017<br>was calculated using an adjusted effective tax rate.<br>(3) This non-GAAP measure does not have any standardized meaning prescribed by<br>GAAP and, therefore, may not be comparable to similar measures presented by<br>other companies. See the section entitled Adjusted performance measures for an<br>explanation of this non-GAAP measure.<br>(4) Relates to amortization of bridge financing and other fees resulting from the<br>KCS transaction, recorded in Interest expense within the Consolidated Statements<br>of Income.<br>(5) The adjusted effective tax rate is a non-GAAP measure, defined as Income tax<br>expense, net of tax adjustments as presented in Adjusted performance measures as<br>a percentage of Income before taxes, net of pre-tax adjustments as presented in<br>Adjusted performance measures. This measure does not have any standardized<br>meaning prescribed by GAAP and, therefore, may not be comparable to a similar<br>measure presented by other companies. The adjusted effective tax rate used to<br>calculate the adjusted tax on interest expense less amortization of bridge financing<br>and other fees for 2021 was 24.0% (2020 - 24.8%, 2019 - 24.4%, 2018 - 24.5%,<br>2017 - 25.8%).<br>Unaudited<br>($ millions, except percentage)<br>As at and for the year ended December 31 2017 2018 2019 2020 2021<br>Net income (1) 5,470 4,312 4,198 3,545 4,899<br>Interest expense 481 489 538 554 610<br>Tax on interest expense (2) (124) (116) (120) (120) (139)<br>Return (1) 5,827 4,685 4,616 3,979 5,370<br>Average total shareholders' equity 15,749 17,149 17,841 18,846 21,198<br>Average long-term debt 9,098 10,067 11,626 11,931 11,987<br>Average current portion of long-term debt 1,785 1,632 1,557 1,420 709<br>Less: Average cash, cash equivalents, restricted cash and<br> restricted cash equivalents (613) (656) (674) (844) (1,221)<br>Average invested capital 26,019 28,192 30,350 31,353 32,673<br>ROIC (1) 22.4% 16.6% 15.2% 12.7% 16.4%<br>Adjusted net income (1) (3) 3,764 4,040 4,171 3,767 4,225<br>Interest expense 481 489 538 554 610<br>Less: Amortization of bridge financing and other fees (4) – – – – (97)<br>Tax on interest expense less amortization of bridge financing<br> and other fees (5) (124) (120) (131) (137) (123)<br>Adjusted return (1) 4,121 4,409 4,578 4,184 4,615<br>Average invested capital 26,019 28,192 30,350 31,353 32,673<br>Adjusted ROIC (1) 15.8% 15.6% 15.1% 13.3% 14.1%<br>ROIC and adjusted ROIC<br>ROIC and adjusted ROIC are useful measures for management<br>and investors to evaluate the efficiency of the Company’s use of<br>capital funds and allow investors to assess the operating and<br>investment decisions made by management. The Company<br>calculates ROIC as return divided by average invested capital,<br>both of which are non-GAAP measures. Return is defined as Net<br>income plus interest expense after-tax, calculated using the<br>Company’s effective tax rate. Average invested capital is<br>defined as the sum of Total shareholders’ equity, Long-term<br>debt and Current portion of long-term debt less Cash and cash<br>equivalents, and Restricted cash and cash equivalents,<br>averaged between the beginning and ending balance over the<br>last twelve-month period. The Company calculates adjusted<br>ROIC as adjusted return divided by average invested capital,<br>both of which are non-GAAP measures. Adjusted return is<br>defined as adjusted net income plus interest expense after-tax,<br>calculated using the Company’s adjusted effective tax rate.<br>Return, average invested capital, ROIC, adjusted return and<br>adjusted ROIC do not have any standardized meaning<br>prescribed by GAAP and, therefore, may not be comparable to<br>similar measures presented by other companies.<br>The following table provides a reconciliation of Net income and<br>adjusted net income to return and adjusted return, respectively,<br>as well as the calculation of average invested capital, which<br>have been used to calculate ROIC and adjusted ROIC:<br>39 CN | 2022 INVESTOR FACT BOOK UPDATE | |||
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| DESIGN: CAPSULE CREATIVE WWW.CAPSULECREATIVE.CA<br>Transfer agent and registrar Computershare<br><br>Trust Company of Canada Offices in:<br><br>Montreal, QC; Toronto, ON;<br><br>Calgary, AB; Vancouver, BC Telephone: 1-800-564-6253<br><br>www.investorcentre.com/service Co-transfer agent<br><br>and co-registrar Computershare Trust Company, N.A.<br><br>Attn: Stock Transfer Department Overnight mail delivery:<br><br>250 Royall Street<br><br>Canton, MA 02021 Regular mail delivery:<br><br>P.O. Box 43078<br><br>Providence, RI 02940-3078 Telephone: 303-262-0600<br><br>or 1-800-962-4284 Shareholder services Shareholders with questions<br><br>concerning their shares<br><br>should contact: Computershare<br><br>Trust Company of Canada<br><br>Shareholder Services<br><br>100 University Avenue, 8<br>th<br> Floor<br><br>Toronto, ON M5J 2Y1 Telephone: 1-800-564-6253<br><br>www.computershare.com<br>Investor relations Paul Butcher<br><br>Vice-President, Investor Relations<br><br>Telephone: 514-399-0052 Greg Hamilton<br><br>Senior Manager, Investor Relations<br><br>Telephone: 514-399-4654 Mariusz Chojnacki<br><br>Senior Manager, Investor Relations<br><br>Telephone: 514-399-6464 Fax: 514-399-5985 Email:<br>investor.relations@cn.ca<br>Mailing address CN Investor Relations<br><br>935 de La Gauchetière St. W.<br><br>16<br>th<br> Floor<br><br>Montreal, QC H3B 2M9 www.cn.ca/investors<br>SHAREHOLDER AND INVESTOR INFORMATION 40<br>CN <br> | <br> <br>2022<br> INVESTOR FACT BOOK UPDATE | |||
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| www.cn.ca/investors<br>CN Investor Relations understands the importance of communicating the CN story<br>and the most current and timely information to our shareholders, the financial<br>community and other stakeholders. The Investors section of our website holds a wealth<br>of information to keep investors and potential investors informed and up-to-date.<br>Key<br>weekly metrics<br>CN reports our performance measures weekly.<br>These measures represent some of the key indicators<br>of railroad performance. We report key weekly volume<br>data for RTMs and carloads, and key weekly operating<br>metrics such as car velocity, average train speed and<br>through dwell.<br>www.cn.ca/investors/key-weekly-metrics<br>Latest financial<br>results and reports<br>We understand the importance of accessing the latest<br>and historical financial and other company reports,<br>including the Investor Fact Book, Annual Report and<br>Sustainability Report. Each quarter, we update our<br>Investor Presentation to showcase our commitment<br>to share our great CN story.<br>www.cn.ca/investors/reports-and-archives<br>Current<br>stock information<br>We have a host of tools that provide helpful data<br>about CN’s common shares on the Toronto Stock<br>Exchange (TSX: CNR) and the New York Stock<br>Exchange (NYSE: CNI). These tools include: stock<br>information, interactive charts, stock price history<br>and splits, an investment calculator and dividends.<br>www.cn.ca/investors/stock-information<br>Upcoming<br>webcasts and events<br>Our executive team regularly interacts with the<br>investment community through our quarterly<br>investor call and industry conferences. We provide<br>a comprehensive schedule of upcoming investor<br>events on our website, including webcast information.<br>Don’t miss out on the latest news and events from CN.<br>www.cn.ca/investors/events<br>KEEPING INVESTORS UP-TO-DATE<br>41 CN | 2022 INVESTOR FACT BOOK UPDATE 41 CN | 2022 INVESTOR FACT BOOK UPDATE | ||
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| www.cn.ca facebook.com/CNrail twitter.com/CNRailway linkedin.com/company/cn<br>STAY CONNECTED WITH CN: | ||||
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