EFTA Document EFTA01371133

31 October 2017 Railroads Canadian Rails Model updated: 2$ & 4r 07 2017 Punning !Or numbing Nodh America Canada Railroads Canadian National Reuters: CNI.N Bloomberg: CNI US Sell Price (30 Oct 17) USD 81.21 Target Price USD 73.00 52 Week range USD 61.95 -83 85 Market cap (m) USDm 61.215 EURm 52.649 Cortg011Y Canadian National. hoollguarloord Sr Montreal. Canada. woo*a ma and rdermolal travoportabon worm gar a 20,06) wale netmarkaartneding as lour repo Fob in Canada (Prose Rupert Vanccovet. Helga & Montreal) M the Cad Mernco. In 2018, CNI gerravatol C5121an ot mama and S5 .38n lobe Poo) Pcif ow:tont* ea 80 70 60 so 40 I An'16 orr - Ceram Naha TIE ean••••••• Margin Trend." ea es eo 45 40 35 eas'e Is 16 17E ,, , EINTDAiktri • EMT 18E 19E thcorth L ProRtibrity 20 15 10 5 0 -5 10 I zoo - IIIIIIR wwwww 26 it. - Pr 25 5 25 245 wwwww „or l per 235 4 IS 16 17E 2.6E ISE 99 sod root OHM • Rea II•44 Solvency 125 100 - 75 - 50 - lea —IIIIIII—.—IIIIII j_.. IllirlIIIIII1 — I4 16 16 17E HIE 13 125 12 11 5 11 105 19E Fli • 4•01•• (WM 0 NA 'MIN carer CMS Siticlon Cbtko, CFA 41 212 250.5050 Sek101104154100) COM Page 70 Feat year end 31.Dec Finon.xtl SunVeary OE EPS (CAD) RapOrled EPS (CAD) 005 (CAD) GYPS (CAD) Val:ado Meflx Pnco/Salft (a) PIE (O€) PIE (Rollortad) fa) P/BV Cd FCF yeld (%) Darclend odd DI) EV/Ssen EVIEDITDA EVIEDIT Iti0fAm STAIncoent (CAD9) Sates EEG TOA EMT Pro.tax prdt No rococo Cala. FLOW (CAM r) Cash SOW horn operations No Cana Fro* cad) flow Eqaty rattozOtought bock) Owdends pad No inc/(d•C) 5•0 440414 Oewy 1/4•1444141•41e5 pall Saws Net cash lbw crepe sr, waking colder 8919900 Sheet (C-AD0) Dash and cash ocoralents Properly, plant 8 equipment GoodvAl Odor mats Tclal assets Oeht Other retain Total Stages Total sharattoklog WAY NO SDI Key Coinp9ny Alutm.3 Sales groper (%) DE EP5 growth (%) Payout ratio (%) EBITDA Itorgon 1%) EDIT Margin (%) ROE (5) Net debVegte(y (%) Not interest ono (a) DriPool driaNtro EDIT margin rib) a Asset turnover CO a Fronded oast ratio 60 a Tax and olhateffecls (a) WA (cost tax) (%) a Protocol rootage 0) c ROE (%) wort gronlh (%) a NTAttrian (avg) (a) Reported EPS *mute grown (14) 2014 2015 2016 2017E 2018E 2019E 3 76 4.45 460 507 534 5.90 385 4.39 4 67 506 534 5.90 100 1.24 1 49 1 64 1031 1.99 1644 18.67 1913 2027 2220 24 12 47 50 5.2 60 5.9 55 le 6 177 177 206 19 5 177 18 1 179 17 4 208 19 5 177 49 42 47 51 7 43 36 39 4.0 35 39 43 1A e e 16 17 19 54 58 6.1 69 87 64 II 5 11 3 11.2 128 125 118 14.1 138 13.8 158 154 14 4 12,134 12,811 12,037 13,037 18403 14,171 5,874 8.424 6.537 8.975 7218 7.706 4,624 5.266 5.312 5.882 5.865 6,274 4.260 4,874 4.851 5.205 5.366 5,778 3,167 3.538 3.040 3.832 3.944 4,245 4,381 5,140 8202 5.435 5.658 6,073 .2.297 .2706 .2.805 .2.700 .Z614 -2.634 2.064 2.434 2.507 2,735 2.974 3.239 .1.475 -1,853 .1.031 -1,935 .Z135 -2.335 318 995 .1.159 .1,240 .1331 AA"), -n 540 001 350 500 500 124 .214 -55 0 0 0 462 101 23 -90 8 -33 -106 .156 -76 .24 .18 52 153 178 se es 62 28,514 32.824 33,756 35.429 37.374 39.429 0 0 0 0 0 0 3,226 3,625 3,126 3,232 82841 3,345 31,792 36.402 37,057 38.747 40,737 fleas 8.462 10.427 10.937 11,567 12.067 12,587 9,913 11,025 11,279 11,878 12.354 12,975 18.322 21.452 22218 23.465 24.441 25.582 13,470 14,950 14.891 15,282 18298 17,274 8.357 10,274 10.761 11,501 11.902 '2.525 14 7 39 .4,6 88 2.7 58 232 18.3 3.4 103 54 10.3 25 8 282 31.8 324 338 337 80 6 509 543 53 4 538 544 381 418 44.1 435 437 443 24 0 249 244 254 250 25 3 62 0 66.7 72.5 753 738 725 12 5 120 11.1 11 7 11.8 126 04 981 41 8 04 441 0.3 43 5 03 43 7 03 44 3 0.3 09 09 0.9 09 09 09 0.7 07 0.8 07 0.7 07 10 2 104 9,9 101 99 10 2 23 24 2.5 25 25 25 240 249 24.4 254 250 253 10 0 39 4,9 41 48 13 16 0 176 191 109 21 4 233 385 4.39 487 506 534 5.90 246 143 63 83 57 10 3 Soule* Compoodda Poach* Saantos *amain Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064340 CONFIDENTIAL SDNY_GM_00210524 EFTA01371133