EFTA01371129

31 October 2017 Railroads Canadian Rails irreversible structural advantage over CP. We do not think this is the case. and expect CNI's multiple to revert closer to its historical 10-year average of 15.5x. i-Figure 122: CNI trades well above its historical fwd. PIE 11x rs 1:12 03 TM OS 06 91 OS 99 10 '11 '11 13 'Le IS 16 17 Pr. P/C Sas. tearer Figure 123: CNI trades inline with its U.S. peers but nearly 10% above CP 24x 22x 20x 18x 16x 14x 12x 10x '14 '15 '16 '17 U.S. Class l's '12 '13 --CP Sewc• Dram.* Sent haSsig On an EV/EBITDA basis, CNI currently trades at 12.2x our NTM EBITDA estimate. This represents a significant premium to the company's five year historical average. I Figure 124: CNI's historical EV/EBITDA trends 13.5x 1 13.0x 1 12.5x 4 12.0x 11.5x / 11.0x 4 to.sx 10.0x 9.5x 9.0x 8.5x 8.0x 3 3 3 3 In la b 10 P re ea .6 a. no a .6 4. is 4. 6 a. A 4 Z ..- 2 .1 0 41 ele 0 s' 0 ee 0 . i cy 4 2 ,6 2 42 u- 2 < EV/EBITDA — — —5-Yr. Avg. San DeurscAt &int former r - - t - I - . - V - - T . - - - . , - " V . Page 66 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064336 CONFIDENTIAL SDNY_GM_00210520 EFTA01371129