2008 corporate profile + fact book 2008 corporate profile + fact book table of contents 4 Financial summary 44 Integrated Operating Plan (IOP) 6 Key metrics 45 Interline management 10 System map (density) 46 Co-production 11 Corporate history 48 Information technology 12 Recent acquisition: DM&E 49 Safety 13 Company overview 51 Environment 14 Network 55 Community relations 17 Markets 57 Human resources i. Bulk 58 Labour relations ii. Merchandise iii. Intermodal 61 Governance 36 Canadian Pacific Logistics Solutions (CPLS) 63 Executive profiles 37 Motive power 65 Board of Directors 38 Freight car fleet 66 Financial data 40 Rail yards and intermodal terminals 70 Glossary 42 Repair facilities TSX / NYSE | CP forward-looking information This Corporate Profile and Fact Book contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (United States) and other relevant securities legislation relating but not limited to Canadian Pacific’s (CP) operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that we will not achieve predictions, forecasts, projections and other forms of forward-looking information. In addition, except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise. By its nature, our forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general global economic and business conditions; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demands; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions on the financial position of pension plans and liquidity of investments; various events that could disrupt operations, including severe weather conditions and security threats and governmental response to them and technological changes. The performance of the North American and global economies remains uncertain. Factors over which CP has no control, such as weather conditions and insect populations, affect crop production and yield in CP’s grain collection areas. Fuel prices also remain uncertain, as they are influenced by many factors, including worldwide oil demand, international politics and the ability of major oil-producing countries to comply with agreed-upon production quotas. 2 | 2008 corporate profile & fact book The sustainability of recent increases in the value of the Canadian dollar relative to the U.S. dollar is unpredictable, as the value of the Canadian dollar is affected by a number of domestic and international factors, including, among other things, economic performance and government monetary policy. There is also uncertainty with respect to security issues involving the movement of goods in populous areas of the U.S. and Canada and the protection of North America’s rail infrastructure, including the movement of goods across the Canada-U.S. border. The commercial aspects of CP’s railway operations in the U.S. are subject to regulation by the Surface Transportation Board (“STB”). The STB has published new rules for the imposition of fuel surcharges and has promulgated proposed new rules for the handling of disputes by small and medium shippers. It is too early to assess the possible impact on CP of such new rules and any rules or regulation that might be forthcoming as a result of current STB reviews. In Canada, legislation amending the Canada Transportation Act (“CTA”) was passed and is now in effect as law in Bill C-11 and Bill C-8. These amendments include, but are not limited to, amendments concerning the grain revenue cap, commuter and passenger access, final offer arbitration, charges for ancillary services, and railway noise. The grain revenue cap is a cap imposed by Canadian federal law on the amount of revenue we may earn for the transportation of certain grain from western Canada to Vancouver for export or to Thunder Bay. No assurance can be given as to the effect on CP of the provisions of Bill C-11 or C-8 ro as to the content, timing or effect on CP of any anticipated additional legislation. Other factors relevant to forward-looking statements are contained in CP’s annual and interim Management’s Discussion and Analysis and other documents and press releases filed with or provided by CP to securities regulatory authorities in Canada and the U.S. from time to time. 2008 corporate profile & fact book | 3 financial - five-year summary 2003 2004 2005 2006 2007 ($ millions) Total revenues 3,660.7 3,902.9 4,391.6 4,583.2 4,707.6 Total operating expenses 2,933.6 3,116.3 3,390.1 3,454.6 3,543.4 Operating income (excl other specified items) (1) 727.1 786.6 1,001.5 1,128.6 1,164.2 Adjusted income (excl FX on LTD and other specified 327.9 359.5 528.4 627.5 672.8 items) (1) Net income 399.1 411.1 543.0 796.3 946.2 (dollars) EPS (excl FX on LTD and other specified items) (1) Basic 2.07 2.27 3.34 3.99 4.37 Diluted 2.06 2.26 3.30 3.95 4.32 EPS Basic 2.52 2.59 3.43 5.06 6.14 Diluted 2.51 2.58 3.39 5.02 6.08 Weighted average number of diluted shares 159.0 159.3 160.1 158.8 155.6 (millions) Operating ratio (percentage) 80.1 79.8 77.2 75.4 75.3 ROCE (after tax) (percentage) 7.2 7.3 9.4 10.2 9.5 Net debt to net debt + equity ratio (percentage) 46.9 43.0 39.6 37.2 42.5 EBIT ($ millions) 693.6 750.5 983.4 1,100.8 1,146.9 EBITDA ($ millions) 1,065.9 1,157.6 1,428.5 1,564.9 1,618.9 Average foreign exchange rate (Canadian$/US$) 1.413 1.304 1.212 1.130 1.081 Average foreign exchange rate (US$/Canadian$) 0.708 0.767 0.825 0.885 0.925 (1) These earnings measures have no standardized meanings prescribed by GAAP and may not be comparable to similar measures of other companies. 4 | 2008 corporate profile & fact book key graphs FREE CASH FLOW ($ millions) 303.4 244.9 92.0 38.2 -475.4 2003 2004 2005 2006 2007 CAPITAL EXPENDITURES ($ millions) 884.4 893.2 793.7 686.6 673.8 2003 2004 2005 2006 2007 DIVIDENDS / SHARE (dollars) 0.90 0.75 0.58 0.51 0.52 2003 2004 2005 2006 2007 2008 corporate profile & fact book | 5 key metrics - five-year summary 2003 2004 2005 2006 2007 Gross ton-miles (GTM) (millions) 221,884 236,451 242,100 236,405 246,322 Revenue ton-miles (RTM) (millions) 114,599 123,627 125,303 122,874 129,352 Freight revenue per RTM (cents) 3.08 3.06 3.40 3.60 3.52 Number of active employees at end of year 15,645 15,637 16,295 15,327 15,382 Average number of active employees 16,126 16,056 16,448 15,947 15,675 Miles of road operated at end of year (1) 13,848 13,817 13,693 13,260 13,199 GTMs per average active employee (thousands) 13,759 14,727 14,719 14,824 15,714 GTMs per mile of road operated (1) (thousands) 16,023 17,113 17,681 17,828 18,662 U.S. gallons of locomotive fuel per 1,000 GTMs 1.24 1.20 1.18 1.20 1.21 Average fuel price (U.S.$ per U.S. gallon) 1.01 1.20 1.70 2.03 2.32 WTI (U.S. $/bbl - average lagged 1 month, unhedged) 30.81 40.48 55.21 66.00 69.87 U.S. gallons of locomotive fuel consumed - total (2) 275.4 282.8 285.4 283.4 296.7 (1) Excludes track on which CP has haulage rights. (2) Includes gallons of fuel from freight, yard and commuter service but excludes fuel used in capital projects and other non-freight activities. 6 | 2008 corporate profile & fact book key graphs AVERAGE TRAIN SPEED (mph) - AAR(1) definintion 24.8 23.2 22.7 22.7 22.0 2003 2004 2005 2006 2007 AVERAGE TERMINAL DWELL (hours) - AAR definition 24.9 25.8 22.2 20.8 N/A 2003 2004 2005 2006 2007 CAR MILES / CAR DAY 142.3 137.3 119.0 124.0 N/A 2003 2004 2005 2006 2007 (1) AAR = Association of American Railroads 2008 corporate profile & fact book | 7 8 | 2008 corporate profile & fact book our vision is to be the safest, most fluid railway in north america our company Canadian Pacific Railway Limited, through its subsidiaries, operates a transcontinental railway in Canada and the United States and provides logistics and supply chain expertise. CP provides rail and intermodal transportation services over a network of approximately 13,200 miles, serving the principal business centres of Canada from Montreal, Quebec to Vancouver, British Columbia and the U.S. Northeast and Midwest regions. CP’s railway feeds directly into the U.S. heartland from the east and west coasts.