EFTA01371127.pdf

31 October 2017 Railroads Canadian Rails I Figure 1 19: FCF and FCF as a % of Net Income (2005-20 WE) 4,000 120% 3,500 C 100% 0 E 3,000 80% w — 2,500 71.2% 7 C 0 to 72.1% W 2,000 60% L' .c >- 5 1,500 40% 11: 1.000 20% 500 0 ti8ytipc) &en , „e„O.cv„e„ e 4)1/4'a „4.- Free Cash Flow —•—% of NI San* Deismhe ant CenPanVAIIV* CNI has done a good job of returning cash to shareholders through both dividends and share repurchases. Cumulatively, CNI has paid out over $8bn in dividends and repurchased C$17bn worth of shares. Moreover, CNI has grown its dividend payouts at a 13% CAGR over the past ten years. We expect the company to return 80-85% of net income to shareholders over the next several years. Figure 120: CM returned nearly 90% of net income to shareholders in 2016 3,000 N -41 • zsoo 0 .c 2 2,000 C 1.500 0 • Imo 500 0 co „ , „ „ , tito,ti tip 4 19 onc '1*, Repurchase of common stock Dividends paid t% of NI Sown Dna:ft an amain, MAT, Page 64 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064334 CONFIDENTIAL SDNY_GM_00210518 EFTA01371127