CN Investor Fact Book 2005

driving change to deliver All financial information reflected herein is expressed in Canadian dollars and determined on the basis of United States generally accepted accounting principles (U.S. GAAP). Canadian National Railway Company is sometimes referred to as “the Company,” “Canadian National,” or ”CN.“

Cautionary Statement Except for historical information, certain statements contained for Purposes of in the 2005 Investor Fact Book may be forward-looking state- the “Safe Harbor” ments within the meaning of the United States Private Securities Provisions of the Litigation Reform Act of 1995. Such forward-looking statements U.S. Private Securities are not guarantees of future performance and involve known and Litigation Reform Act unknown risks, uncertainties, and other factors which may cause of 1995 the outlook, the actual results or performance of the Company or the rail industry to be materially different from any future results or performance implied by such statements. Such factors include the following: general economic and business conditions, which may impact demand for the Company’s services, changes in, or compliance with government regulations (especially environ- mental laws and regulations), and other risks detailed from time to time in reports filed by the Company with securities regulators in Canada and the U.S. including the Company’s 2004 annual information form and annual report, filed on Form 40-F with the U.S. Securities and Exchange Commission. This 2005 Investor Fact Book has been filed with the various securities commissions or similar authorities in each of the provinces of Canada and submitted on a Form 6-K with the U.S. Securities and Exchange Commission. Cautionary Statement for Purposes of the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. 2005 CN Investor Fact Book

Table of Contents

2 Letter from 47 Investor focus E. Hunter Harrison Managing energy costs Capital expenditures 4 Financial and The right people statistical highlights Regulatory environment 6 CN company profile Safety Shareholder value 7 System map Rewarding shareholders 8 Timeline 61 Financial and 9 Precision railroading statistical data

10 Premium service 76 CN’s Executive Council offering 81 Corporate information 12 Density map 82 Shareholder and 14 BC Rail investor information

16 GLT

18 Ports

20 Sales, marketing and service Intermodal Grain and fertilizers Coal Forest products Automotive Petroleum and chemicals Metals and minerals

CN Investor Fact Book

20 05 Isthe story over? driving change to deliverto change driving thanthe S&P 500. hasThis led to amore than tenfold increase inthe overall performanceof other railroads and performing outstrippingmore the than far seven times – better Exchange Stock York New the on cent per 1,000 to close and – cent per 800 than more by risen Toronto has Exchange Stock The reason, I believe, is our ability to embrace, lead and champion change.Canada has come as far – or experienced as much change successfullytenth anniversary – ofas ourCN. privatization. In the past decade present no CN’s pleased toother am company I in Dear Investor oehn t ke i mn. Ns ucs int trbtbe o t business its attributable isn’t success to CN’s mind. in keep tosomething products – all measures that have redefined railroading as weknow it. premium increases for rate and Excellence Carload (CX) Excellence (IMX), Intermodal introduced We trains. run to how about thinking steam-age 100-year-old antiquated scrapped that employees engine and train U.S. our with agreements labor landmark reached We team. executive new a cashflow. We acquired Wisconsin Central,and Rail BC GLT. We established free operatingandratiorecordpostedsuccessfulearnings,railroading. We resoundingawith no!From 2001through we2004created newamodel for operating plan. scheduled/precision launched the railroad and Southern City Kansas with Weannounced the acquisition of Illinois Central, struck a marketing alliance wrong by far exceeding those targets by 1997 – three years ahead of schedule. Critics 2000. couldn’t cashflow freesaid it by done. be provedBut we them of operating cent $1 per and operatingratio 82 income, in million an $700 were goals IPO our 1995, expectations. In exceed to continuously striven carrier, and approximately 17 points better than the industry average. this – our performance is more than 11 points better than the next most efficient maintainthe railroad –trailed the railindustry at 89 per cent at the time of the terms of market capitalization. America Northin secondnowrailroadsthein largest isIamong Class CN market capitalization of CN, to $23 billion from billion$2 in November 1995.

ic te P (nta pbi ofrn) te au o C sae o the on shares CN of value the offering), public (initial IPO the Since Indeed,we’ve hadimpressivetruly a sincerun theIPO. However, there is Companyover?storyTherespondedthe Company Is observersasked– 1998In weset newa strategic course forNorth –CN America’s Railroad. continuously conventional have people defied and wisdom our CN, At CN’soperatingpercentagetheratio –revenues of requiredoperate toand centfor the first nine months of 2005.Think about performance,postingindustry-leading an 64.4per IPO. We have steadily improved our operating ratio 2005

netr at BookInvestor Fact Ti ya mrs the marks year This .

model, or the concept of precision railroading, or any of the acquisitions we’ve made, although they’ve all been part of it. The real reason for CN’s success is its people, the women and men who’ve managed the Company through the prism of CN’s five core principles – providing good service, controlling costs, focusing on asset utilization, developing people and accomplishing the first four principles without getting anyone hurt. Season these values heavily with passion and integrity – that’s what CN is all about! We have focused relentlessly on people development, through “Hunter Camps” where I explain our management philosophy to high-potential employees, through the “Railroad MBA” program to give exceptional executives a wide-ranging railroad education, and through our continued emphasis on behavior and the consequences of good and bad decisions. We call this process ABCs – for antecedents, behavior, and consequences. Change is hard for many to accept. Change is not painless. Change is not without risk. But CN is where it is today because CN people have met the challenge of managing and adapting to change to serve the best inter- ests of shareholders, customers and employees. They know we must con- no! stantly re-examine the way we do things to ensure we do the right things and discard those that don’t have value. Are we always right? No. Do we always execute flawlessly? No. But more often than not we make the right decisions for the right reasons, in the right ways. We have a pipeline of initiatives to help keep CN at the forefront of rail industry performance: new industry partnerships with other railroads through routing protocols; maximizing the benefits of Intermodal Excellence (IMX), Carload Excellence (CX) and our Service department; and improving our dialogue with organized labor. One of the initiatives I’m most excited about is Smart Yard, a plan that will make traditional switching practices at our largest yards more flexible and productive. The next 10 years at CN will be just as exciting as the past decade. The model is working and we’re determined to stay ahead of the pack. One thing I know for sure in the years ahead – change will be ever constant, as will be our commitment to manage it the right way. And we will make our best efforts to continue to deliver the type of shareholder returns that you have come to expect and deserve from this great Company.

E. Hunter Harrison President and Chief Executive Officer

CN Investor Fact Book Financial and statistical highlights

Financial highlights

First nine months

unaudited 2000 2001(1) 2002 2003 2004(2) 2004(2) 2005 $ in millions, except per share data, or unless otherwise indicated Financial results Revenues $ 5,428 $ 5,652 $ 6,110 $ 5,884 $ 6,548 $ 4,812 $ 5,354 Adjusted operating income (3) 1,648 1,780 1,870 1,777 2,168 1,561 1,904 Adjusted net income (3) 879 978 1,052 1,045 1,258 882 1,126 Adjusted diluted earnings per share (3) 2.93 3.28 3.48 3.60 4.34 3.05 3.98 Weighted-average number of shares diluted (millions) 304.1 301.4 304.2 290.7 289.9 289.6 283.1

Financial ratios (%) Adjusted operating ratio (3) 69.6 68.5 69.4 69.8 66.9 67.6 64.4 Debt to total capitalization 41.4 45.7 40.0 35.6 35.7 36.7 35.1

Other information Dividend per share $ 0.47 $ 0.52 $ 0.57 $ 0.67 $ 0.78 $ 0.59 $ 0.75 Net capital expenditures 958 941 938 1,043 1,072 707 792 Free cash flow (4) 386 443 513 578 1,025 754 1,058

(1) 2001 includes Wisconsin Central Transportation Corporation (WC) from October 9, 2001. (2) 2004 includes Great Lakes Transportation LLC’s railroads and related holdings (GLT) and BC Rail from May 10 and July 14, respectively. (3) Adjusted to exclude items affecting the comparability of results. See Appendix C for a reconciliation of non-GAAP measures. (4) See Appendix C for a reconciliation of non-GAAP measures.

Adjusted operating income * Adjusted operating ratio * $ in millions in %

1,648 2000 69.6 2000 1,780 2001 68.5 2001 1,870 2002 69.4 2002 1,777 2003 69.8 2003 2,168 2004 66.9 2004 1,904 2005** 64.4 2005**

* Adjusted to exclude items affecting the comparability of results. See Appendix C for a reconciliation of non-GAAP measures. ** First nine months 2 0 0 5 Statistical highlights

First nine months

unaudited 2000 2001(1) 2002 2003 2004(2) 2004(2) 2005 Route miles 15,532 17,986 17,821 17,544 19,304 19,303 19,221 (includes Canada and the U.S.) Carloads (thousands) 3,754 3,685 4,075 4,100 4,578 3,333 3,633 Gross ton miles (millions) 288,150 293,857 309,102 313,593 332,807 244,171 255,066 Revenue ton miles (millions) 148,732 151,415 158,474 162,152 174,240 128,267 134,103 Employees (average during period) 22,457 22,668 23,190 22,012 22,470 22,283 22,373 Employees (end of period) 21,378 22,868 22,114 21,489 22,679 23,466 22,141 Diesel fuel consumed (U.S. gallons in millions) 341 351 369 374 391 288 302 Average price per U.S. gallon $ 1.24 $ 1.35 $ 1.20 $ 1.21 $ 1.30 $ 1.26 $ 1.66

(1) 2001 includes WC from October 9, 2001. (2) 2004 includes GLT and BC Rail from May 10, 2004 and July 14, 2004, respectively. Certain of the comparative statistical data have been restated to reflect changes to estimated statistical data previously reported.

Employees average during period

22,457 2000 22,668 2001 23,190 2002 22,012 2003 22,470 2004 22,373 2005*

* First nine months

CN Investor Fact Book % of freight revenues freight of % Portfolio Traffic Diversified 2004 % of freight revenues freight of % Mix Destination 2004 CNcompany profile 18 2 4 14 23 23 5 8 11 17 18 34 2 3

20 05

chemicals OffshoreGulf OffshoreEast OffshoreWest Canadiandomestic domestic U.S. Transborder Coal Automotive Metalsand minerals Grainand fertilizers Intermodal Petroleumand Forestproducts

(GLT) and BC Rail in 2004, CN gives gives CN 2004, in Rail BC and (GLT) holdings related and railroads LLC’s 2001, and Great Lakes Transportation Centralin 1999, Wisconsin Centralin have nations. NAFTA three all to access customers CN protocols, ing rout and arrangements marketing production co- of agreements, interline series alliances, a Mexico. of Through Gulf the and Atlantic, the Pacific, the – coasts three con nect to continent American the North on network rail only the is CN from movements of a balanced mix mix balanced a of movements from cashflow about of $1.3 billion. free 2005 targeting is and billion,$1 record free cash flow* in 2004 of over reported also in CN 2005. billion for revenue $7 exceed to track on is and 2004 in revenue in record billion $6.5 a generated Company The track. of miles route 19,200 mately approxi operates and 22,100people ongoingandnever-ending. ofprecisionits railroading concept are execution the through reliability and efficiency speed, increase to efforts CN’s capability. support customer its and them, sell to ability its products, its improve to innovate to continues anddeveloping people. The Company assetutilization, committing tosafety, on focusingcontrollingcosts, service, good providing principles: core five transactions. these of each of characteristic been common a has integration step-by-step flawless, Smooth, trade. fornorth-south market expanding the in reach greater and options more shippers Following Following the acquisitions of Illinois The The Company’s revenue is derived about employs currently CN CN’sbusiness strategy is guided by - - -

and20 34 traffic, 23 per domestic Canadian from cent traffic, domestic U.S. from came revenues of cent 23 per 2004, point, CN is equally well In diversified. stand geographic a From revenues. freight its of cent per 23 than more for accounted portion mix business CN’s one of no 2004, In tunities. oppor to revenue-growth on ability capitalize its economic as well as withstand challenges, to capacity CN’s enhances diversity geographic and product This origins destinations. and diverse between goods of * associates. with together or alone holder any by shares com mon Company’s the on limit owner ship cent per 15 a is there Act, required by the CN Commercialization As company. investor-owned an into Corporation Crown government a from CN transformed privatization nearestcompetitor’s operating ratio. 11thanCN’sthanmorebetter points other of railroads,and I ClassAmerican North average the than better points 17 approximately is this same time, the At 2004. in period same the to compared improvement point percentage 3.2 of a months represents nine 2005, first the for cent effi cientlyuseassets. to opportunities on build and advantages service on capitalize to Company the enables This network. its along moving traffic the of cent non-GAAP See

CN originates approximately 87 CN was privatized in 1995. The The 1995. in privatized was CN per 64.4 at ratio, operating CN’s e cn fo tasodr traffic, transborder from cent per Appendix

per centper from overseas traffic. measures. C for a reconciliation of

per - - - - -

CN system map

Prince Rupert

Edmonton

Kamloops Saskatoon

Vancouver Calgary

Regina Winnipeg Hearst Moncton

Thunder Bay Halifax Quebec Montreal Sault Ste. Marie Duluth

Stevens Point Minneapolis/St. Paul Green Bay Toronto Fond du Lac Sarnia Buffalo Detroit Sioux City

Omaha Chicago CN Lines Secondary Springfield Feeder and Connecting St. Louis Short Lines

Memphis

Jackson

Mobile

Baton Rouge New Orleans

CN Investor Fact Book CN–

20 05

North America’sRailroad July 1999 July alliance marketing 15-year a announce Southern City Kansas and CN 1998 April announced acquisition Central Illinois 1998 February CN of Privatization 1995 November privatization since Timeline applications rail-merger on moratorium month TransportationBoard’s (STB’s) 15- Surface U.S. the of announcement following agreement, combination proposed to relatedefforts of termination announce CN/BNSF 2000 July announced combination proposed CN/BNSF 1999 December Central Illinois of Acquisition

CN announces BC Rail transaction Rail BC announces CN 2003 November GLTof acquisition of Announcement 2003 October Central Wisconsin of Acquisition 2001 October acquisition Central Wisconsin of Announcement 2001 January CN closes BC Rail transaction Rail BC closes CN 2004 July GLTof acquisition closes CN 2004 May

Precision railroading

CN pioneered the scheduled railroad- Helping customers grow ing concept in North America, when their businesses it introduced its service plan in 1998. CN has also refined the precision Under the plan, CN runs regularly railroading process to help its cus- scheduled trains that leave at prede- tomers grow their businesses – and termined times. Each car or container to grow its own business. The best has a specific trip plan that fits into way to create shareholder value is to the design of the train schedule. create value for customers. Precision This is a highly disciplined pro- railroading has been a key contribu- cess, where CN handles individual tor to CN’s industry-low operating railcar movements according to a spe- ratio and continued earnings growth. cific plan, and where the Company CN believes that its successful traffic manages expectations to meet agreed- growth would not be possible with- upon customer commitments. out the quality of service afforded by With precision railroading – an precise execution of the trip plan. evolution of CN’s scheduled railroading – the focus is clearly on the The foundation for carload and the customer’s shipment, CN’s business model rather than on the train. That is For CN’s merchandise shippers – in what matters most to CN’s customers the forest products, petroleum and – whether a train is on time or late is chemicals, metals and minerals, and not of concern, but they do care that automotive sectors; as well as its their shipments are on time. intermodal customers – the precision CN managers – with this customer- railroad operates according to a trip Improved cost control and shipment focus – look at each and plan for every railcar. asset utilization every process that affects delivery, and This has led to reduced tran- Within CN, precision railroading has constantly fine-tune them. Because sit times. It has also improved the made the Company more competitive every aspect of train operations, consistency of CN’s transportation and more reliable, and has improved whether locomotive distribution, crew offering, enhanced the Company’s its cost control and asset utilization management, car repair or track main- productivity, and helped to improve efforts on the network and in its tenance, exists to keep customer ship- its network capacity. The year 2003 yards. ments moving, the discipline to make saw the beginning of the application things run like clockwork permeates of precision railroading principles to the entire CN organization. CN’s Intermodal business through the Company’s IMX initiative. For CN’s customers, the Company’s precision railroading adds up to better service, reduced inventory and capital requirements, reduced need for high-cost private fleets, and the economies of rail transportation compared to the truck mode.

CN Investor Fact Book 10 Premiumservice offering

20 05 * car day* day* car per miles Car % in compliance* plan trip Carload 158 148 92 88 include Measures in 2005 Q3 2005 Q3 2004 Q3 GLT Q3 2005 Q3 2004 Q3 or do 2004. or not BC

Rail

n i die b peiin railroading precision by driven is ing customers. own their with reliably deal and costs, distribution reduce levels, produc inventory and own schedules tion their plan better to it allows because them service quality we’ll say do.” we CN’svalue Shippers what do “to simple: quite is principle service CN’s accordingly. prices and customers to service transportation premium a provides CN commodity. a like sold not is offering product its commodities, transports CN While premium service product. service premium CN’s of benefits related other the of some just are capacity additional and fluidity increased utilization, asset ter bet costs, Lower higher- revenues. with quality yields improved and gains market-share through line top its grow to Company the enable offering – service enhanced driven CN’s by – opportunities new mode. These truck the fully with been competitive not had historically try in indus railroad the where areas those – customers its and CN for kets disciplined execution. of culture a within this of all and – plan the service Company’s of refinement continuous and Ns ihqaiy evc offer service high-quality CN’s Quality service opens up service Quality new mar - - - - - try-wide try-wide by placing traffic on the most serve to reduce rail-freight costs indus These partners. interlineU.S. its with agreements of series a announced CN 2005, and 2004 In industry. the and Companythe forinitiative major a been has protocoleffort routing its shippers. CN’s continued expansion of America’s North for service improve further to efficiencies of mentation continuedits identification and imple with leader industry an been has CN protocols routing – partnerships Railroadindustry the Vancouver area. This improves improves This area. Vancouver the in track of sections key on capacity devel oped an agreement to CPRjointly increase and CN Vancouver, of Pacific 2000. in (CPR) Railway Canadian with initially developed arrangements in production co- on build These agreements 2005. and 2004 new of co-production number a announced CN Co-production andOntario Northland.(NS) Southern Norfolk Fe, Santa Northern Burlington Pacific, Union CSX, with arrangements protocol routing has currently CN gateways. congested less of use the androutes, shortened trafficvelocity, reduced number increased of handlings, to thanks quickly, more marketsU.S. Canadianand key of capacity. Customers can now reach therebymaking the most efficient use both transit times and asset utilization, improve to order in locations change flows through the most efficient inter traffic rail direct to plan structured a established agreements The ership. own of regardless – routing efficient To improve service to the Port Port the to service improve To - - - - - the fluidity of rail operations over Proven operating model existing infrastructure.

Following this, CN and CPR Increased reached an agreement on three net- velocity work initiatives to improve railway transit times and asset utilization Lower Precision Faster costs railroading asset turns in British Columbia, Alberta and Ontario. The efforts included slot- Improved sharing arrangements which com- service bine CPR locomotives with CN crews, directional running, and a haulage arrangement allowing CN to rationalize a portion of under-utilized track. Continuous improvement Diesel locomotives Finally, CN signed an agreement Trip Plan Compliance and Car Velocity (Owned and leased) at end of year with CPR and NS in late 2004. Under are just two of the key statistics used the three-railroad agreement, CN’s at CN. These are important measures existing merchandise carload custom- of service performance and network ers in Quebec and the Maritimes now velocity. have quicker access to important For the third quarter of 2005, destination markets in the eastern CN’s Trip Plan Compliance (exclud- United States. The agreement also ing BC Rail and GLT) score improved 1,876 2000 1,987 2001 lets the railroads improve the utili- by four percentage points to 92 per 1,912 2002 zation of their locomotive and car cent – up from 88 per cent for the 1,898 2003 2,100 2004 fleets, as well as their networks. same period in 2004. CN continues to strive to consistently exceed 90 per Higher-quality assets cent in this measure. Freight cars (Owned and leased) Over the past five years, CN has Car Velocity is an average-speed at end of year invested heavily in new, more reliable calculation – expressed in car miles locomotives. The reliability of these per car day – of the car movements new units helps to strengthen the from time of release at one location Company’s ability to provide improved to time of arrival at destination or service with reduced failures and bad interchange location. The third-quar- orders. Additionally, the new units ter 2005 velocity on the former CN 84,478 2000 are almost 20 per cent more fuel- territory (excluding BC Rail and 95,688 2001 93,699 2002 efficient than their predecessors and GLT) improved by seven per cent to 93,690 2003 comply fully with the latest regulatory 158 car miles per car day over the 106,958 2004 requirements for reduced locomotive comparable figure for the same exhaust emissions. period in 2004.

11 CN Investor Fact Book 14.8 Prince Rupert - Taverna

69.8 Vancouver - Edmonton

8.4 Edmonton - Calgary

5.5 Saskatoon - Calgary 56.9 Edmonton - Winnipeg

CN average traffic density map

41.0 Winnipeg - Chicago 2 0 0 5 12 44.3 18.6 Winnipeg - Ft. Francis 37.8 Halifax - Quebec Winnipeg - Toronto 9.4 Ft. Francis - Thunder Bay 3.5 Thunder Bay - Longlac 42.4 Montreal - Quebec 32.4 Ft. Francis - Superior

71.2 Toronto - Montreal 42.1 Superior - Chicago

55.8 Port Huron - Toronto 16.5 Toronto - Niagara Falls

17.8 1.9 57.0 Port Huron - Detroit Omaha - Tara Chicago - Port Huron Millions of GTMs per route mile (based on 2004 results)

Over 50 million GTMs per route mile

30.5 30-50 million GTMs per route mile East St. Louis - Fulton 36.7 10-30 million GTMs per route mile Chicago - Memphis Less than 10 million GTMs per route mile 46.2 Memphis - Jackson

22.4 Jackson - New Orleans 11.5 Jackson - Mobile

11.8 Baton Rouge - New Orleans

13 CN Investor Fact Book 14 Aperfect fit – CN and BC Rail

1 21 72 revenues of % revenues Rail BC 2004 3 3

20 05 chemicals Other Coal Grainand fertilizers Petroleumand Forestproducts

a, tpb-tp prah o systems to approach step-by-stepcal, methodi The deal. the completion of companies’ operations withthe began earlier that month. Phased integration of CompetitionBureau regulatory approval Canadian following shortly 2004, July completed mid- was deal inlease. The over BC Rail’s roadbed under a long-term Rail partnership, and the right to operate BCRail Ltd., thepartnership units ofBC of shares outstanding and issued the governmentofbillionall$1 forcashin British Columbia theagreement pay to announced November an CN 2003, In n Nrh acue. s result, CN Vancouver. a North As and George Prince at Rail BC withdirectly American carriers operating in with the western U.S. relationships strong has Additionally, Chicago. CN to less miles 650 and Memphis, Toronto and to shorter miles 700 is CN byrouting markets.Compared thecompetition,to American Free Trade Agreement (NAFTA) shortestfastestandkeyNorthroute to 1,400 CN –with Rail, its 1,400 route BC miles of track usedand who shippers For mentsin B.C. – and beyond Significant service improve all its customers in British Columbia. allowingCN tooffer seamless service to customers.Thisperfectisa network fit, its Companyopportunities and the for Canada and is expected to open up new extended CN’s business reach in western acquisition, already delivering results, has forestproducts transporter. largest America’sThisRailBC North already was Wisconsin Central. integrations Illinois both Central of and Company’s seamless the in done was similar what beginning to is very the – integration – CN’s strategic decision from CN is the only railroad that connected CN transaction, the before Even

mlye i BC – fes the offers – B.C. in employees - -

end of 2005,endofplanningandis acquireto acquired500new Plate boxcarsF bythe theend of 2005. The Company will have centerbeamacquiring new by cars 400 fleet earlier this year, the Company centerbeams the 350 to will added totion be working to improve beenfleet hascapacity. competition, CN truck In from addi gains share market industry products forest products customers. new 92-hour Chicago Express service for Prince a mass at fic Georgestart up to developcriticalablebeentohasa traf earnings per share by the end in of 2007. cents 35 approximately contribute to expected is beginning and very the earnings and flow cash freebothfrom sitiondifferent.nois wasaccretiveIt to expandsits franchise. The BC Rail acqui Company the and value obtain full ers operationsmooth,are while sharehold comes it to mergers. when record Implementation track solid and a has CN Soundbusiness decision railways at the Vancouver other gateway. to traffic routing of option the example, customers have Formarkets. CN’stagesofsingle-line serviceskeyto to choose the able efficiencies and route are advan Shippers Commitment. Service and Rate Gateway OpenCN’s through competitive have options –to continue they that assured been Customers have shippers. with synergies merger has of sharing CN the to beginning,committed very the From bothworlds B.C.shippers getthe best of place, at the right time. ucts shippers get the right car, at the rightOrder Program ensures thatforest prod sametime, CN’s unique Guaranteed Car boxcars400 fordelivery 2006.inAt the

ih n y o anticipated forest on eye an With ------

Linking B.C. to NAFTA and export markets

Positioned to develop northern B.C. corridor

Shortest and fastest routes to NAFTA markets

Solid access to West Coast

15 TheGLT acquisition – a twofold strategy 16 3 54 revenues of % revenues GLT 2004 7 9

20 05 Coal Other Metalsand minerals

and The Pittsburgh & Conneaut Dock Conneaut & Pittsburgh The and mills; steel Pittsburgh-area and Lake Erie on Ohio Conneaut, between limestone and ore pri iron coal, carries marily which (BLE), Erie and Lake Bessemer the Wisconsin; and Minnesota in ore iron pelletized of and Iron Railway (DM&IR), a Class II carrier Missabe Duluth, 212-mile the include acquired assets GLT TransportationBoard. Surface U.S. the by approvals regulatory following lion, mil US$380 for GLT acquire to deal a closed formally CN 2004, May In ut ot o tee Tee r two CN’sin fast- developments important are These there. of north just track of miles area,64 and Wisconsin Minnesota/Superior, Duluth, the in segment track 17-mile key a owns industry. steel U.S. the for hauler bulk- commodity a as position Company’s the of strengthening the and corridor, NAFTA important an in network rail CN’s of important enhancement the purposes: two this serves standpoint, transaction strategic a From customers all for and industry, steel the for links transportation stronger Forging ships. the of operator the industry. steel Keystone Shipping Co. was chosen as U.S. the for mainly commodities, bulk transporting sels non-railroad a ves Lakes Great eight with company – Inc. Great Fleet, acquired Lakes also CN network, docks. Conneaut three at BLE the for operations transfer bulk ship rail-to- and ship-to-rail performs that railroad switching a (PCD), Company With the purchase, CN now now CN purchase, the With track 382-mile this to addition In

- - - making facilities that were U.S. Steel U.S. were that facilities carriers making water steel- serve to and years the over evolved rail GLT The tradition service longstanding A economy.world the in changes dramatic reflecting – ore ironfor from demand growingglobal benefit to customers steel-industry its and CN enables This Pennsylvania. in assets rail and port with network CN the extends further also action trans The corridor. western growing 15 cents of EPS by 2007. by EPS of cents 15 approximatelyadd to expected is and beginning, the since earnings to tive accre been has acquisition GLT The investment solid A 2005. into and 2004 in smoothly by-step integration model, proceeded step- proven its following operations, companies’ the of integration phased work efficiency for all customers. CN’s net and service improved have and lines network, new existing CN’s the complement time, same the At products. finished of transportation as well as – limestone and coke coal, raw materials such as taconite pellets, of from movement cost-effective efficient, benefit to continue shippers Steel-industry customers. for changes operational few in results transaction 1988. to prior Steel U.S. of subsidiaries wholly-owned been had these century; 19th the to back date companies forerunner GLT the of Many predecessors. Corporation From a service standpoint, this this standpoint, service a From

- - - Great Lakes Transportation

Prince Rupert

Edmonton

Kamloops Saskatoon Hearst

Vancouver Calgary Winnipeg Regina Winnipeg Hearst Moncton

Thunder Bay Hearst Halifax Quebec Thunder Bay Montreal Winnipeg Sault Ste. Marie Duluth

MINORCA Thunder Bay Stevens Point Toronto Minneapolis/St. Paul Green Bay SHELTON JCT MINNTAC Two MINORCA Fond du Lac Sarnia Buffalo Harbors SHELTON JCT Trains run MINNTAC Two Detroit northbound SiouxHarbors City on CN Trains run northbound Sault Trains run on CN Omaha Chicago Sault CN Lines southbound Trains run Ste. Marie Duluth southbound Ste. Marie on DM&IR Duluth Secondary on DM&IR Springfield Feeder and NOPEMING JCT Superior NOPEMING JCT Superior POKEGAMA Connecting POKEGAMA SOUTH ITASCA St. Louis Short Lines SOUTH ITASCA

DM&IR interchange Green MemphisBay Minneapolis/St. Paul Stevens Toronto Iron ore pellet plants Point

Green Fond Buffalo Bay du Lac Sarnia Toronto Minneapolis/St. Paul Stevens Jackson Point Mobile Detroit Fond Buffalo du Lac Baton Rouge Sarnia P&C DOCK New Orleans Conneaut Chicago Detroit North Bessemer Pittsburgh P&C DOCK

Springfield Conneaut Chicago Cincinnati North Bessemer Pittsburgh

Springfield

Cincinnati

17 CN’sports – global trade gateways China 18

20 05 Brunswick;QuebecCity andMontreal, (Halifax,Scotia;NovaSaintJohn,New Atlantic the Louisiana), Orleans, New and Mississippi; Gulfport, Alabama; (Mobile, Mexico of Gulf the on ports relationships working with customs officials. excellent and technology, from expertise, Company’s experience, the benefit customers CN global trade. in interested customers for resourcekey a alsoare markets. They American North vast to points entry effective provide facilities port CN’s Prince Rupert and Kitimat, British British Columbia). Kitimat, and Rupert Prince (Vancouver, Pacific the and Quebec), Ns rcatl ewr includes network tricoastal CN’s Pacific Ocean Prince Rupert Kitimat Vancouver Prince George

United States An ice-free harbor, well protected protected well harbor, ice-free An year. per voyage round-trip extra one approximately shippers allows port. This Coast West American North other any to compared savings time 30-hour least at provides it voyages, America’s trans-Pacific For North Asia. to port closest is CN, by solely served Rupert, Prince shippers. news for welcome is Rupert Prince of Port the a for plan development America, new North port across for capacity need increasing an With PrinceRupert, B.C. ot o prt 1 mnh a year. a months 12 operate the to allows port waves, and wind from Calgary terminals Cities withCNIntermodal with Intermodalservice Ports servedbyCN, Ports servedbyCN Edmonton Saskatoon Mexico Canada Minneapoli Winnipeg Sioux City Omaha Gulf ofMexico s / Superior St. Paul Baton Rouge East St.Loui Memphis New Orleans Thunder Bay Arcadia Duluth s Escabana Jackson Gulfport Neenah Green Bay Pascagoula Cincinnati Chicago Mobile Detroit Panama Canal Sault Ste. M Sarnia

Pittsburgh Conneaut

Toronto Buffalo arie

Quebec Montreal Moncton Saint John Halifax depart daily, with comparativelydaily,withdepartshort grades. erate mod and areas urban major of ance avoid routing, direct its with Coast Pacific the to line rail best America’s North be to considered is This nent. conti American North entire the to Rupert Prince connecting port, the at costs. reduces and time pilotage which minimizes ocean, open to port closest the is and factors risk navigational of terms in port Coast West safest the also is It superships. container unit) equivalent (twenty-foot 12,000-TEU the tomorrow’s with accommodate to America, ability North deepest in the port also is Rupert Prince Atlantic Ocean ntal oe ri i epce to expected is train one Initially CN’sright begins main line system Europe - - - million-TEU capacity by 2010.bymillion-TEU capacity Phase with capacity 500,000-TEU for calls ter the make to plans announced Authority Port Rupert Corporation Prince the and Canada of Terminals Maher operator terminal container ultramodern CN,terminal. container Rupert Prince new, a for gov ernments Columbia British and federal Canadian the by secured been has grain. specialty and products handle grain,will facilities coal, forest dedicated with terminals modern six including Additionally, Memphis. and Chicago destinations U.S. many and Montreal, Toronto, Winnipeg, Saskatoon, Calgary, Edmonton, Rupert and Prince between service rail Intermodal provide will CN tinations. des American North to times transit ia a elt i ery 07 Phase 2007. early in reality a minal ttl f 6 mlin n funding in million $60 of total A

I rjce t icue two- a include to projected II

- - - I

developments. North of resource-sector Alaskan on capitalize rest Rupert Prince and CN helps the America and Alaska than more 40 for Alaska Rupert Whittier, Prince to from service barge capabilities. and location strategic Memphis markets Prince complements Rupert’s and Chicago Montreal, and service fast access to key Toronto, cars. container stack double- accommodate to line North B.C. CN’s to infraimprovements structure for million $5 and trackage, terminal for million $10 yard, modal includ million, Rupert $30 to development Prince the to contribution ilo fr h pr’ inter port’s the for $15 million ing years. This vital link between between link vital This years. CN has increased its financial financial its increased has CN CN has also provided its AquaTrain capacity, of combination CN’s 19 - - -

Prince Rupert is also the deepest transit times to North American des- CN has increased its financial port in North America, with the tinations. CN will provide Intermodal contribution to the Prince Rupert ability to accommodate tomorrow’s rail service between Prince Rupert development to $30 million, includ- 12,000-TEU (twenty-foot equivalent and Edmonton, Calgary, Saskatoon, ing $15 million for the port’s inter- unit) container superships. It is also Winnipeg, Toronto, Montreal, and modal yard, $10 million for terminal the safest West Coast port in terms many U.S. destinations including trackage, and $5 million for infra- of navigational risk factors and is the Chicago and Memphis. Additionally, structure improvements to CN’s B.C. closest port to open ocean, which six modern terminals with dedicated North line to accommodate double- minimizes pilotage time and reduces facilities will handle grain, coal, forest stack container cars. costs. products and specialty grain. CN’s combination of capacity, CN’s main line system begins right A total of $60 million in funding service and fast access to key Toronto, at the port, connecting Prince Rupert has been secured by the Canadian Montreal, Chicago and Memphis to the entire North American conti- federal and British Columbia gov- markets complements Prince Rupert’s nent. This is considered to be North ernments for a new, ultramodern strategic location and capabilities. America’s best rail line to the Pacific Prince Rupert container terminal. CN, CN has also provided its AquaTrain Coast with its direct routing, avoid- container terminal operator Maher barge service from Prince Rupert ance of major urban areas and mod- Terminals of Canada Corporation to Whittier, Alaska for more than erate grades. and the Prince Rupert Port Authority 40 years. This vital link between Initially one train is expected to announced plans to make the ter- Alaska and the rest of North depart daily, with comparatively short minal a reality in early 2007. Phase I America helps CN and Prince Rupert calls for 500,000-TEU capacity with capitalize on Alaskan resource-sector Phase II projected to include a two- developments. million-TEU capacity by 2010.

Prince Rupert

Kitimat Prince George Canada Edmonton

Saskatoon Vancouver Calgary

Winnipeg Thunder Bay Duluth Quebec Moncton Atlantic Ocean Superior Escabana Sault Ste. Marie Halifax Montreal Saint John Europe Minneapolis/St. Paul Green Bay Toronto United States Neenah Sarnia Sioux City Arcadia Detroit Buffalo Omaha Chicago Ports served by CN Conneaut Pittsburgh Ports served by CN, East St. Louis Cincinnati with Intermodal service

Cities with CN Intermodal Memphis terminals Jackson

Baton Rouge Mobile China Pascagoula New Orleans Gulfport Gulf of Mexico Pacific Ocean Mexico

Panama Canal 19 Sales, marketing – and service

2004 Freight revenues CN’s Sales and Marketing department is structured to best deliver $ in millions CN’s product to its customers. To ensure that CN and its products deliver the highest levels of customer satisfaction in the most efficient manner, the Company recently created a new Service department. The Service department draws from all disciplines throughout the railroad to: • make it easier for customers to interact with the Company in the 1,452 Forest products order-taking process; 1,123 Petroleum and chemicals 1,117 Intermodal • quickly respond to those customer issues that have not been 1,053 Grain and fertilizers 713 Metals and minerals resolved through normal business channels; 510 Automotive 284 Coal • identify systemic issues through its Quality Control group. This helps CN to deliver the highest quality product. With an eye on processes throughout the organization, the Quality Control group identifies those in need of modification, and works with all departments to correct them. CN’s Service department is improving customer satisfaction, and is driving down costs associated with repetitive service issues. The Service department is also freeing up time for account managers, enabling them to devote more effort to selling and customer-service activities. Traditional sales and marketing activities are organized into three groups, Merchandise, Bulk and Intermodal. Marketing activities are focused on ensuring the provision of the right product offering for customers. These activities include administration of pricing policy, simplification of business processes, leveraging of routing protocols, optimization of asset 20 05 20 utilization and leveraging of market and competitive Revenue ton miles Intermodal knowledge. In CN’s Intermodal commodity group, in billions the traditional marketing activities are also supported Grain and fertilizers by IMX principles which focus on capacity management for profitable growth by smoothing traffic flows, Coal increasing speed and reliability, and improving asset utilization. Sales activities, now more than ever, are focused 149 2000 Forest products 151 2001 on selling CN’s product through a multitude of sales 158 2002 channels. CN’s existing and potential customer base is 162 2003 Automotive 174 2004 broadly supported by National and Regional account managers, an Account Development office focused on Petroleum and chemicals telephone sales, and integrated eCommerce systems and tools. Metals and minerals

And it’s working…. With its transportation-solution approach to customers and its industry-leading Service Plan, CN is helping its customers lower their overall transportation costs by reducing their inventory and fleet requirements, and their reliance on higher-cost truck transport. At the same time, CN is profitably increasing market share and improving yields through its premium service offering. Since the IPO in 1995, CN’s revenues have increased from $3.9 billion to $5.65 billion in 2001, and are on track to exceed $7 billion in 2005.

21 CN Investor Fact Book Breakdown Commodity 2004 22 Intermodal

20 05 in thousands in Carloads 1,276 1,202 1,2 52 48 % of revenues of % 37 International Domestic 2004 2003 2002

retail and wholesale. For the retail retail the For wholesale. and retail segment includes two main products: domestic The traffic. U.S. and domestic Mexico transborder, Canada, domestic includes 2004, in revenues 52 per cent of the commodity group’s international. and domestic segments: market main two of sists con 1999.Intermodal CN,inAt cent CN’s freight revenues, up from 16 per of cent18 for accountedper it 2004, For group. commodity growing est CN’s be fast to continues Intermodal Midwest. Connections with other other with Connections the Midwest. in locations and Montreal and been the between of Ports Vancouver have segment international the for markets NY. Buffalo, and growth Key Memphis, Chicago, at connections the U.S. east and through west coasts rail both on ports to and Orleans; New of Port the CN to and U.S., from ships the In Halifax. and John Saint Montreal, Vancouver, of Ports the to and from ships CN Canada, Within companies. ocean-carrier of behalf on import- business container transports export 2004, reve in Intermodal’s nues of cent per 48 service. cost-effective competitive, truck- on focuses segment The try. indus trucking the with competitive very is service market-driven my.This market econo the to tied with generally growth segment, domestic intermediaries. transportation other and companies, logistics party third- companies, marketing modal inter carriers, motor to service train ramp-to-ramp provides CN product, wholesale the For and service. rail trucking with transportation door-to- door full provides CN product,

Domestic, which represented represented which Domestic, International, which represented represented which International, Consumer markets drive the the drive markets Consumer ------nrae pe ad eiblt, and utilizationmargins.improveassetand reliability, and speed increase (IMX) program to smooth traffic flows, Excellence Intermodal its of benefits the reap to continued CN 2004, In Excellence Intermodal – IMX shifting countries. between patterns trade and conditions economic American North by mainly driven is segment international The southeast. U.S. CN’s the into of business reach international the extended ther fur have Chicago in railways I Class terminal-handling capabilities. terminal-handling in track or investments new for costly strong markets the – need without domestic and imports Asian bysurging driven – services intermodal for demand rising accommodate to CN position benefits IMX these capacity, Coupled with CN’s ample rail network capacity Increased transcontinentalCanadian corridor. the in intermodalfastest times transit andservicereliability. Thisincludes the speed in improvements from efiting ben are customers CN’s time, same the capital.At onreturn profit marginsand its improved has CN IMX, of speedandassetutilization. resulta As ment and gate capacity and to improve enablesCNtoalign terminals, traffic with equip largest CN’s at ervations incombination withrequired gate res This, days. off-peak to shift to traffic the encourages pricing of-the-week day- while trains, on spots for tions shippersarerequired tomake reserva IMX, transportation. Withintermodal torailroading scheduled of precision and discipline the applies IMX - - - - - In August 2005, CN announced an Outlook expansion of its transcontinental train Conditions are favorable to convert service in response to rising customer volumes from truck to Intermodal demand. The Company increased train in all domestic segments, because capacity for overseas containers mov- of significant driver shortages and ing between the Port of Vancouver rising fuel costs in the trucking and Montreal and Toronto by more industry. The international segment than 20 per cent, while boosting continues to flourish as global trade capacity for domestic container moves increases. The opening of the Prince between Toronto and Montreal and Rupert container terminal in 2007 major western Canada centers by is a solid opportunity for growth in more than 10 per cent. the international portion of the business. All segments are expected to Review grow, thanks to CN’s superior transit Revenues for this commodity group times, available network capacity and increased by $114 million, or 14 per service focus. IMX results in a highly cent, for the first nine months of CN has applied IMX principles to 2005 when compared to the same the train starts and other major costs, scheduled, predictable period in 2004. The increase was and is also currently applying these mainly due to strong imports into to the terminals and their assets. and reliable product the Port of Vancouver, freight rate The International Export Reservation increases, which include a higher system is expected to be in place at unsurpassed value. fuel surcharge, and an improvement by the end of 2005. This should in traffic mix. Also contributing to yield better smoothing of inter- the increase was the return to nor- national traffic by day of week, mal traffic levels following the first and has the potential to improve quarter 2004 CAW strike. Partially service consistency. In 2005, the offsetting these gains were the Company introduced Integrated Gate translation impact of the stronger Reservation systems (by hour) to Canadian dollar and a change in two major CN terminals to further port of call for an overseas shipper. smooth this traffic on an hour-of-day as well day-of-week basis. Together, these improvements yield better asset utilization, lower costs and improved service consistency.

Intermodal containers Overseas 20' North America 40', 48', 53', 48' heated

23 24

20 05 New Orleans, Mobile and Saint John, NB. John, Saint and Mobile Orleans, New Montreal, Vancouver,Halifax, of Ports the through customers to reach international provides also CN America. North across destinations to shipments customers’ deliver to Company the allowing areas, urban major serve to positioned strategically terminals Intermodal CN’s Winnipeg, Vancouver, Saskatoon, Moncton, Memphis, Montreal, New Jackson, Halifax, Edmonton, Detroit, Chicago, Calgary, Brampton Orleans, Nova Michigan Alberta Mississippi Illinois New Tennessee Quebec (Toronto), Manitoba Saskatchewan British Alberta Louisiana Scotia Brunswick Columbia across Canada and in the U.S. are are U.S. the in and Canada across Ontario

CN hub centers

Edmonton

Saskatoon Vancouver Calgary

Winnipeg Moncton

Halifax CN’s Intermodal terminals Montreal

Toronto

Detroit

Chicago

Memphis

Jackson

New Orleans

25 CN Investor Fact Book Grainand fertilizers Traffic Originated Grain 2004 Breakdown* Commodity 2004 26 * grouping. Reclassified 20 05 with in thousands in Carloads the 65 3 552 577 539 28 12 13 23 24 % of revenues of % % of revenues of % 5 2005 U.S. Canada to

be commodity Potash Fertilizers Oilseeds grain Feed grain Food 2004 2003 2002 consistent

commodity group in 2004, are well well are 2004, in group commodity 75 cent for oftotal about per the this for accounted which products, grain the in States. United originated cent per 35 and Canada, in originated 2004 in CN by moved traffic Grain of cent per 65 Canada and About the U.S. Midwest. western in primarily products, tural agricul other and grain,fertilizers, of movement the with involved is group commodity fertilizers and Grain The Grain include include the PacificRim and the Middle offshore grain Canadian western for Key markets conditions. market export- and produced, crop the of the sizestocks, of and quality carry-in Grain yields. also exports vary, affected by the level crop and produced, grains of mix the acreage, harvested and seeded year on depending varies year, to production Crop rail. by predominantly exported, is produc tion grain of majority the that rela mean market a domestic small and tively Canada; western crops in specialty and oilseeds grain, of cultivation to devoted base land soybeans). and meal, and oil seed, canola products (primarily oilseed and oilseeds and corn) and wheat, barley, (including grains feed barley), malting and oats wheat, (mainly grains seg food ments: main three among balanced High-cube and Jumbo covered hopper covered Jumbo and High-cube – equipment Grain Revenues Revenues from grain and processed In Canada, a large agricultural agricultural large a Canada, In CANADIA NA CN TIONAL 20310 A 59900 0 385386 N 475 0 - - -

- - - -

domestic receivers in Canada, the the Canada, in receivers domestic of variety a to and export, for ports Gulf U.S. and Canadian eastern to products grain western and grain moves Canadian also CN ON. Bay, Thunder or BC; Rupert, Prince and Vancouver at vessels eleva load that terminal tors port to Manitoba Columbia,Alberta, Saskatchewan, and British of areas grain-growing the in lines CN’s on high- elevators throughput of system from well-positioned moved a is offshore exported grain Canadian western Most East. a result, CN also participates in the the in participates also CN result, As a U.S. the and Canada in system CN the on located oilseed plants processing and grain have businesses Riverand the Gulf of Mexico. major export facilities on the Mississippi alsomoves grain and grain products to States,which rely oncorn Unitedfor feed. CN southeastern the in markets poultry-feeder the to aremovements grain domestic Mississippi. Other and Illinois, Tennessee,processors Iowa, in largebeansgrainstatesfromtheseto grain movements include corn and soy beansgrown in the U.S. CN’s domestic soycornandthecentof per age, 40 Wisconsin – normally produce, on aver and Michigan, Iowa, Illinois, – traffic originates CN where states grain Four territory. grain-producing an of important heart the in positioned well Mexico. and U.S. oe f h laig lbl agri global leading the of Some is system rail CN the U.S., the In - - - - -

Canadian Grain Supply Grain includes wheat and durum, barley, canola, oats, flax and rye in million tonnes

2001/2002 2002/2003 2003/2004 2004/2005 (1) 2005/2006 (1) 10-year average Beginning stocks 14.3 10.4 8.8 9.7 14.3 11.8 Production 40.1 31.9 47.4 51.4 50.6 48.0 Total supply (2) 54.6 42.3 56.2 61.1 64.9 59.8 Exports 22.6 14.4 24.3 22.3 25.7 24.1 Harvested Acres (million hectares) 20.6 17.5 22.1 20.9 21.3 21.8

(1) Estimates Source: Agriculture Canada, Grain and Oilseeds Supply and Disposition, September 20, 2005 (2) Excluding imports

U.S. Grain Supply Corn in million bushels

2001/2002 2002/2003 2003/2004 2004/2005 (1) 2005/2006 (1) Five year average (2) Beginning Stocks 1,899 1,596 1,087 958 2,122 1,452 Production 9,507 9.008 10,089 11,807 10,857 10,065 Total supply (3) 11,406 10,604 11,176 12,765 12,969 11,517 Exports 1,905 1,592 1,897 1,815 2,000 1,828 Harvested Acres (million acres) 68.8 69.3 70.9 73.6 74.3 71.0

(1) Estimates Source: US Department of Agriculture, October 12, 2005 (2) Estimates based on 2000/2001 – 2004/2005 (3) Excluding imports

U.S. Grain Supply Soybeans in million bushels

2001/2002 2002/2003 2003/2004 2004/2005 (1) 2005/2006 (1) Five year average (2) Beginning Stocks 248 208 178 112 295 207 Production 2,891 2,749 2,454 ,141 2,856 2,799 Total supply (3) 3,139 2,957 2,632 3,253 3,151 3,006 Exports 1,045 1,045 885 1,095 1,115 1,014 Harvested Acres (million acres) 73.0 72.4 72.5 74.0 72.2 72.9

(1) Estimates Source: US Department of Agriculture, October 12, 2005 (2) Estimates based on 2000/2001 – 2004/2005 (3) Excluding imports

27 CN Investor Fact Book Grain Breakdown Canadian 2004 28

2 0 0 5 60 40 % of revenues of % Non-regulated Regulated

legislation has regulated certain certain regulated grain of from movements rail defined has legislation government Canadian Historically, grain regulated Canadian moved products CN. by the of some are starches and syrups, corn oils, etable veg malt, barley feed, gluten corn meal, canola and Soybean markets. receiver other to shipped products grain semi-processed of movement revenues. revenues. rev freight its of cent per grain five and enues Canadian CN’s of cent per 60 approximately for accounted cap’ ‘revenue the to subject grain traffic 2004, In efficiency. promote that rates freight competitive set to CN greater with commercial flexibility regulation, the ‘revenue cap’ provides rate maximum of process former the to Compared haul. of length average and volume inflation, for figure enue rev base-year railway’s each adjusts Agency Transportation Canadian year, the crop Every year. crop given a in movements grain regulated from earn may railways that entitlement 2000. revenue maximum a established August This in effect into came which cap’ ‘revenue a to subject are shipments These excluded. are tion consump for U.S. the to export for ports Coast West to Bay.Movements Vancouver, Prince Rupert and Thunder at terminals to CPR or CN by ments ship includes This Canada. western - - - - -

all Canadian potash moves by rail to rail by moves potash Canadian all Virtually production. Canadian ern west for center the Saskatchewan, in mines potash major all to access has or serves CN Canada. western in primarily centered production with fertilizers, nitrogen-based for market rail Canadian sig the in a player is nificant CN fertilizers. and Grain from revenues CN’s of cent per 25 about generate potash and Fertilizers Fertilizers tion within the U.S. and Canada. and U.S. the within tion distribu for railcars to vessels ocean from fertilizers of transfer direct the facilitates terminal This LA. Convent, at terminal RailMarine IC its through is to positioned handle fertilizer imports CN America. North those in produced with compete can offshore produced Fertilizers production. izer fertil most for material raw main a is that gas natural of price the by ed affect heavily is production fertilizer Canadian and U.S. fertilizers. phate phos and urea nitrate, ammonium solutions, nitrogen including izers, fertil of types various of producers markets. for overseas to export ports to or U.S. the in markets In the United States, CN serves serves CN States, United the In ------Review tals remain strong, as factors such as Revenues for this commodity group high quality, a diverse commodity increased by $45 million, or six per mix, and niche markets are expected cent, for the first nine months of to enable Canada to sustain its share 2005 when compared to the same of world grain markets. period in 2004. The increase was In the U.S., despite record dry mainly due to higher export ship- conditions and extreme heat in Illinois ments of Canadian peas, barley and and Iowa during the 2005 growing canola, freight rate increases and an season, production of corn and soy- improved traffic mix, particularly in beans was near the five-year average the U.S. These gains were partially for both states. Supply-and-demand offset by the decreased availability fundamentals remain strong, and of high quality Canadian grain for movements to CN-served domestic export markets via West Coast ports processing facilities, feed markets, and the translation impact of the as well as Gulf exports, are also stronger Canadian dollar. expected to remain strong.

Outlook In Canada, the level of grain production in 2005 is about the same as that of 2004 although crop quality is better (but still below average). The outlook remains favorable due to increased “carry-in” stocks leading to above-average total supply. With increased supply combined with improved grain quality, traffic from western Canada is expected to increase in 2006 over 2005 levels. In addition, a greater amount of this traffic is expected to move to ports for export markets. In the medium term, supply-and-demand fundamen-

29 CN Investor Fact Book

2004 Commodity Breakdown Breakdown Commodity 2004 Traffic Originated Coal 2004 Carloads* forma Pro Coal 406 429 435 82 31 18 69 30 in thousands in Carloads 20 05 coke Petroleum Coal U.S. Canada 2004 2003 2002 thousands in % of revenues of % revenues of %

States, shipments of U.S. thermal coal United the In Canada. eastern in ily primar utilities power to delivered is coal thermal Canadian coal. nous bitumi of grades thermal of marily cent. 18 per provided coke rev petroleum and of enues cent per 82 provided Coal States. United the in originated cent per cent in Canada originated 69 and per 31 2004, Coal in the group by commodity moved traffic the Of Overview ed to open in the next several years. several next the in open to ed a expect mines ofnumber additional with 2004, in network CN the along facilitated the opening of three mines coal metallurgical for market strong the production, Canadian declining of trend recent the Vancouver Reversing the area. and in Rupert terminals Prince coal three from mar kets Asian other and Japan in ers mak steel to exported generally is which coal, metallurgical Canadian States. United southeast and Midwest the in utilities major to railroads, other with interchange through mines U.S. western from or Illinois, southern in served mines from transported are Rotary gondola Rotary Ns ol uies osss pri consists business Coal CN’s The Coal business also includes includes also business Coal The CANADIAN NA CN 196760 TIONA 227400 58600 4000 L 52- 9-10 8- 4 5 ------the stronger Canadian dollar.Canadian stronger the of impact translation the was gains the offsetting Partially coal. allurgical ofU.S.met shipments increased and revenues, Rail BC GLT and of months nine full a of inclusion the increases, mines in Canada,western freight rate was coal metallurgical new to increase due mainly The 2004. in period same the to of compared months when 2005 nine first the for cent, per 21 or million, $44 by increased group commodity this for Revenues Review Open hopper Open CANADIA NA CN 330138 TIONAL 198100 6490 0 N 4341 - - - - Outlook CN’s outlook for coal volumes remains positive. Increasing steel consump- tion in China has created worldwide strength in the metallurgical coal market. The strong demand and resulting higher metallurgical coal prices have created improved production opportunities from CN-served mines as well as new mine openings on CN lines in Canada. For example, in early 2005, Luscar, Ltd. announced plans to expand the CN-served Coal Valley mine to four million tonnes of coal per year. This would double thermal coal production capacity at the mine. It is scheduled to be at full capacity by the second quarter of 2006. Volume growth has led CN to increase its Coal fleet by 220 cars during the fourth quarter of 2005. With industry-leading service and additional capacity in place, CN is well positioned to handle the increasing demand for Canadian coal. CN’s focus in servicing this market is driven by asset utilization, which creates car capacity in a cost-effective manner. This basic premise enables CN to continue to provide its customers with cost-effective, reliable service – which has the ability to create long-term growth.

31 CN Investor Fact Book 32

20 05 Coal mines Coal

16. 15. 14. 13. 12. 11. 10. 9. 8. 7. 6. 5. Terminals 11. Ramp 10. 9. 8. mines Coal facilities U.S. U.S. central the in terminals and mines coal following the from and to service provides CN 4. 3. 2. 1. Terminals 7. 6. 5. 4. 3. 2. 1. facilities Canadian Canada. western in mines coal following the from and to service provides CN

Williams Bulk Williams Dock P&C McDuffie KCBX IEI RailMarine IC GRT Wharf Duquesne Cook CG&B City Calvert Cahokia Carbondale Liberty Galatia III Crown Westshore Bay Thunder Ridley Neptune NEMI Creek Willow Cache Grande Valley Coal Cheviot River Burnt Bienfait

GLT Freeman Luscar, Alliant Grande

Union Operator

Kinder Alabama KCBX IEI IC Cook Consolidated Southern Cahokia Operator Coal Hawk Knight Operator Liberty American Operator Terminals Westshore Ltd. Terminals, Bay Thunder Inc. Terminals, Ridley Terminals Bulk Neptune Operator Northern Falls Corporation Elk Western Luscar, Terminal Barge Valley Mountain Coal Terminals Railroad Ltd. Ltd. Morgan Energy Coal Cache Marine Canadian United Services State Coal Energy Coal Coal Terminal odns Convent, Holdings opn Harco, Company Grain Coal adig Madisonville, Handling opn Galatia, Company oprto Near Corporation ok Mobile, Docks Coal nry Grand Energy evc Sauget, Service

Mining ol Tumbler Coal

& n. Falls, Inc.

ag Mound Barge

n. Trend, Inc.

Location (via (via (Delta), (via Carbondale, S.E. Williams, Conneaut, Chicago, Metropolis, Location Location Farmersville, Location Greater Prince Vancouver, Location Grande Near Estevan, East Thunder Pittsburgh, PAL) GWWR) PAL) Dubuque, Hinton, Hinton, BC Rupert, Rivers, BC IL City, BC Cache, IL AL Vancouver L 7.2 IL Ridge, K 2.8 SK Bay, IL LA IA 5 OH C 8 BC 10 4.5 0.3-0.4 IL L 1,000 IL 3 L 3 IL IL B 2.8 AB B 4 AB N 11 ON KY KY C 12-24 BC 15 20 B 2 AB IL PA C 1 BC 1.7 6 12 8.5 2.5 Estimated annual production annual Estimated 0.8 Estimated annual production annual Estimated capacity Loading production annual Estimated production annual Estimated 2 0.7 million million million million million million million million million million million million million million million million million million million million million million million tons million million tonnes tons tons tons tonnes tons tonnes tonnes tons tons tons tons tons tons per net tons tons tons tonnes tonnes tons tons tonnes

tons

tons hour tons

Mines and transload facilities

6 2 2

7 5

4 3

4 1

1 3 Coal mines

Transload facilities

16 12 15 13 9

5 11 9 10 9 10 6 7 8

14 11

33 Production Columbia British of Market End 2004 Breakdown* Commodity 2004 34 Forestproducts * Source: grouping. Reclassified 20 05 with the in thousands in Carloads Statistics 618 678 626 12 16 32 69 40 1 4 10 17 % of revenues of % revenues of % 2005 to be commodity Europe Other Japan Canada U.S. Canada consistent

2004 2003 2002 Panels Paper Lumber Fibers

group’s major segments were distrib were group’ssegments major commodity Products Forest CN’s for revenues 2004, In production. paper in used is which clay as well as print, news and linerboard paper, printing pulp, wood chips, wood logs, panels, lumber, include products varied and diverse These America. North in ucts CN is the largest carrier of forest prod Overview fluctuations. fluctuations. market of impact the reduce to tend diversity product and advantages cal geographi its that believes CN cal, cycli be to tends products forest for traffic demand Although rail. to truck from convert to opportunity the CN gives service reliable consistent, provide to ability The traffic. panels key the and lumber are the for drivers economic U.S. the in activities renovation and starts the Housing U.S. in primarily conditions, nomic eco overall and lineage advertising railroads. I Class other to nections con interline with corridors U.S. ern to both serve the and Midwest south located strategically is Company the States, United the In sector. products forest the of areas all in leaders are that customers serves CN new markets. to reach their extend and ing offer rail the of advantage full take to customers CN’s allows facilities, transload CN with coupled position, geographic This America. North in areas source fiber largest the among are which regions, fiber-producing Canadian eastern and western the to 12cent. panels, per and cent; 16 per paper, cent; 32 per lumber, cent; 40 per fibers, – follows as uted h ky rvr fr esrn are newsprint for drivers key The CN provides superior rail access access rail superior provides CN ------forests. of B.C.’shectares million 60 of acres) seven million (17 hectares million estimated an covering tion to infesta with threat stocks, pine lodgepole significant a posed has This history. recorded province’s the in infestation beetle pine mountain extensive most the to subject been has Interior Columbia’s British trees, pine lodgepole mature of quantity large a and summers; dry hot, ters; win mild of result a as 1994, Since infestation beetle pine Columbia British a b hretd o a ubr of number a for harvested be can products most for wood high-quality stain the wood blue or gray. However, may which spores, fungus carry tles bee the addition, In bark. the under eggs laying by summer the in trees Columbia British in infestation beetle pine Mountain The beetles attack lodgepole pine pine lodgepole attack beetles The Williams Lake Prince George Smithers Vancouver Major outbreak Major area Affected Kamloops Nelson

- - - Customerlocations Pulp Lumber and and paper panels k o o B t c a F r o t s e v n I N C 35 Customer locations

Lumber and panels

Pulp and paper

35 CN Investor Fact Book Newsprint boxcar Newsprint 36 CANADIAN NA 2 0 0 5 CN TIONAL A 21 7470 1300 0 40639 6241 50-6 9- 7 13 6 oenet a sralnd regula streamlined B.C. has government the trees, damaged the from infestation. of severity the on depending to five for years 15 marketable remain will timber killed beetle- that expected is it result, a As finished. be to ability its or teristics charac gluing strength, wood’s the affect not does stain The stain. its of spite in products wood other as rity integ structural and properties same the has wood beetles This tree. a killed have pine mountain after years Woodchip gondola Woodchip andPaperPlatform. Guaranteed Car Order Program, Clean the These Car Program include growth. programs traffic CN to tors contribu significant also are These both satisfaction. customer of and reliability terms in offering its improveservice to helped have grams pro customer innovative of number board (OSB),logs and wood pellets. strand oriented woodchips, lumber, additional move strong to position a in it places fleet Products Forest growing its investment in ued Company’s contin The growth. ume tremendoushas opportunities vol for CN area, beetle-affected pine the of meters. cubic million 23.4 was 27increased affected per cent to most areas supply B.C. fortimber cut annualallowable total timber. ed The infest of harvesting increase to tions In In order to salvage economic value Ns ceue srie n a and service scheduled CN’s heart the in network track a With CANADIA NA CN 878007 TIONAL 163600 56400 11 N 6700 61-7 -03 9-8 ------

tomer on an agreed-upon date and and date agreed-upon an on tomer cus the to delivery car guarantees CN program, the Under costs. chain supply- and inventory their effectively manage more to them enabling provides program customers with an assured car supply, This Order Program. Car Guaranteed innovative commodity CN’sof Products beneficiary main the is group Forest The time right place, right car, Right Program Order Car Guaranteed CN’s Log car Log The facilities. inspection operated Company- through without go to – need the loading for next customers the to directly distributed Unloaders are Certified from released cars empty Defect-free customers. its and CN for utilization railcar-asset enhance to and shippers, for ability avail and quality railcar improve to designed is Program Car Clean CN’s Program Car Clean The service. predictable reliable, with customers, its to ment of CN’s extension commit is a logical Program Order Car Guaranteed The CN. and receivers shippers, benefits cars empty of delivery Guaranteed improvements. asset-utilization drama tic in results It cycles. car and demand forecast better to CN allows program The dates. specified by ping ship for cars the prepare to and load agrees customer The schedule. CN 6090 11

- - - -

CN-developed Clean Car Program has been adopted by the industry. Under this initiative, railcar Unloaders undertake to release railcars in clean condition and report any damages to a central CN location. CN then repairs any damaged railcars before they are sent to customers for the next loads.

CN Paper Platform The CN Paper Platform promotes proactive shipment management, including: estimated times of arrival for all shipments, explanations for significant transit-time changes, full intervention capabilities for off- schedule shipment management, and on-line service-performance reports for CN and its rail-partner custom- Canadian dollar partially offset the new market opportunities for beetle- ers. CN’s Paper Platform reduces gains. affected wood. Forest Products customers’ need for The CN Forest Products commod- last-minute, higher-cost emergency Outlook ity group will focus on continuing shipments. With historically low interest rates, to broaden its reach into new mar- high consumer confidence, and favor- kets through its expanding transload Review able demographics, demand funda- network. CN is also preparing to Revenues for this commodity group mentals remain strong in the U.S. do its part in reconstruction in the increased by $196 million – an This has fuelled continued strength Gulf Coast area. The Company has increase of 18 per cent for the first in housing starts, home renova- identified locations close to those nine months of 2005 compared tion and the construction of bigger, major centers where repairs are most to the same period in 2004. The more energy-efficient homes. Repair needed – in order to efficiently dis- increase was mainly due to freight and replacement following natural tribute building materials. rate increases, the inclusion of a full disasters is also spurring demand nine months of BC Rail revenues, for forest products. CN is prepared continued solid demand for Canadian for this increased demand with new lumber and panels, improvements higher-capacity boxcars and center- in traffic mix and an improved - mar beams. Western Canadian producers ket position in pulp and paper. The will continue to serve as key suppli- translation impact of the stronger ers as customers take advantage of

Centerbeam car Bulkhead flatcar Double-door boxcar

CANADIAN NATIONAL CNA 555020 151800 50-7 68200 9-6 10-11 5258

CN 624114 CN 622552

37 CN Investor Fact Book Automotive

2004 Commodity Breakdown Overview of other interchange locations for % of revenues CN is a leading carrier of automo- automotive traffic including Salem, IL tive products originating in Ontario, and Memphis, TN. Michigan and Mississippi. The CN More than one-half of CN’s auto- Automotive commodity group moves motive traffic is transborder. With finished vehicles and parts in North access to a large number of plants America with access to traffic from in Ontario and Michigan, CN origi-

82 Finished all Canadian vehicle-assembly plants, nates approximately 90 per cent of vehicles nine assembly plants in Michigan, its moves. In 2004, finished vehicles 18 Auto parts and one in Mississippi. CN also serves accounted for 82 per cent of the import-vehicle shippers through commodity group’s revenues, while Carloads in thousands the ports of Halifax and Vancouver. automotive parts accounted for the In addition, CN serves more than remaining 18 per cent. 20 vehicle-distribution facilities in Canada and the U.S., as well as Review parts-production facilities in both For the first nine months of 2005, countries. revenues for this commodity group CN delivers finished vehicles and decreased by $10 million, or three per 307 2002 parts within Canada and the United cent, when compared to the same 288 2003 States. Through alliances with other period in 2004. The decrease was 295 2004 railroads, CN provides single-line mainly due to the translation impact service between Canada and Mexico. of the stronger Canadian dollar and The Company has the most direct a reduction in automotive production rail link from southern Ontario to the at CN-served facilities in southern Chicago gateway, providing efficient Ontario and Michigan. The decline service in this time-sensitive sector. was partially offset by freight rate CN’s north-south positioning – with increases, an increase in import vehi- connections at various locations with cles via the Ports of Vancouver and all other major U.S. railroads – offers Halifax, and the benefit of new fin- automotive customers a number of ished vehicle traffic in the southern efficient routing options from points U.S. that began in the second half of in Canada, the United States and 2004. Mexico. CN’s broad coverage enables In the third quarter, Toyota Canada it to consolidate full trainloads of awarded its Silver Performance Award automotive traffic for delivery to to CN. This is in recognition of CN’s connecting railroads at key inter- superior performance in the on-time change points such as Chicago, IL, and damage-free delivery of Toyota and Buffalo, NY. CN offers single-line vehicles. CN transports thousands of service through Chicago to a variety Toyota vehicles across Canada.

Autoparts boxcar Bi-level auto carrier Tri-level auto carrier

CANADIAN NATIONAL CNA 795008

CN 710158 CN 704124

38 2 0 0 5 Automobile distribution centers

Edmonton St. John's Corner Brook

Vancouver Saskatoon

Calgary Regina Winnipeg Moncton Quebec

Halifax Montreal

Toronto

Woodhaven, MI

Flat Rock, MI Windsor

Centers accessible by CN

Jackson, MS

39 automotive-part transportation. automotive-part and vehicle for network rail CN’s use to opportunities new develop to custom ers automotive its with to work continues Company The parts. production inbound of some re-sourcing as well at as plants, forecasts CN-served production reduced full-year by driven largely 2006, in slightly decline to expected is ume vol Automotive CN vehicle Overall, lineup. new a and manufacturing flexible implement to plant assembly ON Oakville, its retooling be will Ford MI. CN’scentto Lansing, in line main adja located plant vehicle-assembly Motors new a from shipping commence will General 2006, of quarter fourth the In Ontario. and Michigan in plants CN-served in invest to ue contin manufacturers Automotive Outlook 40

20 05 - - - - plants 3

Orion (Hamtramck)

plants 3

Oshawa Oshawa Ontario Canada Location plants assembly CN-accessed at models truck and Car Canton Mississippi Rock Flat (Dearborn) Flint Michigan States United

Oakville Pontiac Alliston Ingersoll Cambridge Thomas St. Rouge Lansing Lansing Detroit

Nissan

Manufacturer

Ford

GM GM

Mazda Ford GM Honda (Cami) GM Toyota Ford Ford

Buick Lucerne Buick Model Nissan Altima Nissan Ford Mustang Ford Armada Armada Cadillac SRX Cadillac Pontiac Torrent Pontiac ToyotaMatrix Nissan Armada Armada Nissan Pontiac G6 Pontiac Honda Civic Honda Acura MDX Acura Cadillac STS Cadillac Mercury Grand Marquis Grand Mercury Chevrolet Monte Carlo Monte Chevrolet Lexus RX330 Lexus Pontiac Grand Prix Grand Pontiac Chevrolet Impala Chevrolet Chevrolet Silverado Chevrolet Chevrolet Silverado Chevrolet Honda Ridgeline Honda Honda Pilot Honda Sierra GMC Mercury Monterey Mercury Chevrolet SSR Chevrolet Cadillac CTS Cadillac Sierra GMC DTS Cadillac Sierra GMC Buick LaCrosse Buick Armada Armada Infiniti QX56 Infiniti Mazda6 Ford Freestar Ford Chevrolet Silverado Chevrolet Acura EL Acura Chevrolet Equinox Chevrolet ToyotaCorolla Ford Crown Victoria Crown Ford Ford F-150 Ford Titan Quest

Assembly and parts plants

Alliston Honda Oshawa GM Kitchener Budd Cambridge Toyota Toronto Hayes Dana St. Mary's Oakville Ford Parts plants Ingersoll Cami Port London Huron Flint GM Dana Thorold Assembly plants Sarnia Orion GM St. Thomas Ford Pontiac GM Lansing GM Rouge Ford Hamtramck Windsor Engine Ford GM Flat Rock Ford/Mazda Woodhaven Chicago Stamping Lima Ford Ford

Cincinnati

Canton Nissan

41 CN Investor Fact Book Petroleum and chemicals

Alberta oil sands map Natural gas 2004 Commodity Breakdown* Overview Review % of revenues CN’s Petroleum and chemicals com- Revenues for this commodity group Crude oil modity group handles a wide range of increased by $22 million, or three Oil sands commodities, including chemicals, sul- per cent, for the first nine months of fur, plastics, petroleum and liquid gas 2005 compared to the same period Heavy oil products. Overall, chemicals represented in 2004. The increase was mainly Fort McMurray 40 per cent of the commodity group’s due to freight rate increases, the PEACE RIVER revenues in 2004, while plastics, inclusion of a full nine months of Kitimat ATHABASCA 40 Chemicals 21 Plastics liquefied gas products (LPG), petroleum BC Rail revenues, increased mar- Grande Prairie 14 Liquefied gas and sulfur, represented the remaining ket share and a longer length of COLD LAKE products 60 per cent. Although offshore markets haul for petroleum products. These 13 Petroleum Edmonton 12 Sulfur have been growing strongly, the primary gains were partly offset by the

* Reclassified to be consistent markets for these commodities are still translation impact of the stronger Red Deer Lloydminster with the 2005 commodity within North America. As such, the Canadian dollar, continued weakness grouping. performance of this commodity group in the U.S. molten sulfur market, Calgary Carloads is closely correlated with the North soft market conditions for olefins and in thousands Medicine Hat American economy. plastics and reduced petrochemical Most of the Company’s Petroleum production in the hurricane-stricken and chemicals shipments originate in Gulf Coast area. three key areas: northern Alberta, the Gulf of Mexico and eastern Canada. Outlook CN’s network is uniquely positioned to take advantage of oil-and-gas Northern Alberta is Canada’s major The Alberta oil sands development industry growth. Higher crude oil prices have led to significant invest- center for natural gas, feedstock and will be an encouraging opportunity for 543 2002 ments in the Alberta oil sands. These investments and additional 564 2003 world-scale petrochemicals and plastics CN’s Petroleum and chemicals seg- planned expansions are creating rail-volume growth opportunities 596 2004 complex derivatives, as well as the oil ment for 2006 and beyond. Companies for CN, especially within its Metals and minerals and Petroleum and sands development. The second area, have already announced projects for chemicals commodity groups. Metal and mineral products such as the Gulf of Mexico, allows CN to benefit movements of diluent which will enable drilling pipe and frac sand are required to support gas exploration. In from access to the low-cost Louisiana producers to move the heavy-oil product addition, heavy equipment, machinery, dimensional (large) loads and petrochemical corridor between New from the oil sands to U.S. markets. construction materials are needed for infrastructure development. Orleans and Baton Rouge. From the For the last few years, the move- Once facilities are constructed and gas is discovered, petroleum third area, eastern Canada, CN trans- ments of Canadian dry sulfur, plastics and chemical products such as liquefied petroleum gases, sulfur and ports from various regional plants for and other chemicals to overseas markets diesel can be shipped to end markets on CN’s rail network. The switch customers in Canada and the U.S., and have risen. CN, driven by its sales offices to heavier crude refining will also open new business opportunities to overseas markets. in China and Europe, is working closely for the transportation of refinery byproducts to new markets over The consolidation and rationalization with importers of these products. the next several years. Diluent is necessary for the transportation of of industrial production facilities have Last but not least, CN is observ- heavy oil through pipelines. With the Alberta oil sands’ increasing resulted in increased rail-based business ing some North American market production of heavy oil, diluent has been in tight supply in Canada. opportunities in both the Canadian and segment shifts. As production declines, EnCana Corporation recently announced plans to import diluent from U.S. markets. CN is the leader in the and offshore imports fill the void, CN the CN-served Kitimat terminal in northwestern British Columbia to transportation of petroleum products is well positioned on North America’s supply their growing oil sands programs in northeastern Alberta. within Canada, competing with rail in three coasts to transport these imported EnCana expects to start importing up to 25,000 barrels of diluent per western Canada and with Great Lakes products. day through Kitimat in early 2006. tankers in eastern Canada. CN is well prepared to capitalize on these opportunities, with its Alberta rail network located relatively further north in relation to the competition’s. 20 05 42 43 Alberta oil sands map Natural gas

Crude oil

Oil sands

Heavy oil

Fort McMurray

Kitimat PEACE RIVER ATHABASCA Grande Prairie COLD LAKE

Edmonton

Red Deer Lloydminster

Calgary

Medicine Hat

CN’s network is uniquely positioned to take advantage of oil-and-gas industry growth. Higher crude oil prices have led to significant investments in the Alberta oil sands. These investments and additional planned expansions are creating rail-volume growth opportunities for CN, especially within its Metals and minerals and Petroleum and chemicals commodity groups. Metal and mineral products such as drilling pipe and frac sand are required to support gas exploration. In addition, heavy equipment, machinery, dimensional (large) loads and construction materials are needed for infrastructure development. Once facilities are constructed and gas is discovered, petroleum and chemical products such as liquefied petroleum gases, sulfur and diesel can be shipped to end markets on CN’s rail network. The switch to heavier crude refining will also open new business opportunities for the transportation of refinery byproducts to new markets over the next several years. Diluent is necessary for the transportation of heavy oil through pipelines. With the Alberta oil sands’ increasing production of heavy oil, diluent has been in tight supply in Canada. EnCana Corporation recently announced plans to import diluent from the CN-served Kitimat terminal in northwestern British Columbia to supply their growing oil sands programs in northeastern Alberta. EnCana expects to start importing up to 25,000 barrels of diluent per day through Kitimat in early 2006. CN is well prepared to capitalize on these opportunities, with its Alberta rail network located relatively further north in relation to the competition’s.

43 Metalsand minerals

Breakdown* Commodity Forma Pro 2004 Metals boxcar Metals 44 CANADIAN NA CNIS 417203 * TIONA 215900 7010 0 tively. GLT the and January 2004 28 4

20 05 20 23 25 10- 5300 L 52- 9- 11 2 8 acquisitions and consolidated and Pro in thousands in Carloads

88 % of revenues of % 1, materials loads dimensional Machinery and Machinery Construction oreIron Non-ferrous Steel BC 396 801 forma July 2004. Rail 14, took were assumes on 2004 2003 2002

2004, May place acquired

respec that 10,

- remaining four the up making loads al dimensionand machinery with cent; 20 materials, construction cent; 25 metals, group’snon-ferrousrevenues;modity com the of cent per 28 represented loads. (large) dimensional and ery machin and materials, construction ore, iron steel, metals, non-ferrous of mix diversified a transports group commodity minerals and CN’sMetals Overview Bulkhead flat car flat Bulkhead railroads. I Class other to tions connec interline with corridors U.S. both serve the and Midwest southern to the located U.S., strategically is the Company In markets. new to reach their extend and offering rail the of advantage full take to tomers cus CN’s allows facilities, port and transload CN with This coupled America. access, North in important most the among are which regions producing ore iron and steel mining, vides superior rail access to aluminum, pro Company and The metals sector. the minerals of areas all in ers ore. iron of carrier rail ber-one num America’s North become has CN 2004, May in GLT of acquisition the Following America. trate in North concen ore metal base and minum N s h lret are o alu of carrier largest the is CN CN customers that serves are lead In 2004, on a pro forma basis,steel

CNIS 621296 per cent.per

e cn; rn r, 23 ore, iron cent; per

per per ------

granules, machinery, gypsum, alumi gypsum, machinery, granules, roofing cement, sand, aggregates, of shipments drive will growth sector Construction- sand. frac and steels ship structural pipes, machinery, of ments drive will developments gas Oil-and- metals. and concentrate machinery, ore of shipments drive will and Metals minerals. Mining activities for drivers key the are construc activities tion and oil-and-gas Mining, truck tofrom rail. traffic to convert ty it gives the opportuni reliable service Standard gondola Standard dollar.Canadian stronger the of impact translation the was gains the ment in traffic mix. Partially offsetting improve an and products, steel of number a and materials construction of shipments strong increases, rate freight revenues, Rail BC and GLT of months nine full a of inclusion the to increase was The in mainly due 2004. period same the to compared when of months 2005 nine first the for lion $101 or cent19 by per increased mil group commodity this for Revenues Review steel. and num CN’s ability to provide consistent, consistent, provide to ability CN’s CANADIAN NA CN 137919 TIONAL 201000 6200 0 2245 52-6 4-5 9-7 ------

Principal plant facilities

45 Covered coil gondola coil Covered 46

20 05 CN 187048 group is exceptionally well positioned well positioned isgroup exceptionally commodity minerals and CN’sMetals Outlook Open hopper car hopper Open mines. closed of recommissioning the spurred also has demand Chinese This closing. for life of mines that had scheduled been pushed has prices higher, which has the extended China from Constant demand years. of couple last the over turnaround significant has a seen industry nickel) zinc, metals (copper, base The over decade. minerals next the and Metals for tial poten volume-growth huge creating develop is time exciting sands This Alberta. in ment oil and drilling in activities of level unprecedented an U.S. spurred have prices the oil crude Higher in projects highway construction upcoming major the mining, and metal base in turnaround the performance, oil- sector’s booming and-gas the from benefit to CANADIA NA IC 388880 TIONAL 197500 6550 0 N 3614 - - - - -

modity group also stands to to in stands demand stronger also from benefit group modity Low-cube covered hopper covered Low-cube growth. future for opportunity an offer U.S. also area the Gulf in expansion. efforts Reconstruction Airport International and US$15 the legislation funding trans portation surface U.S. billion US$290 nearly recently-enacted the of result a construction-materialsas the sector h Mtl ad ieas com minerals and Metals The CANADIA NA CN 369498 TIONAL 22540 60600 0 N 380 0 - - - billion Chicago O’Hare O’Hare Chicago billion - -

Investor focus

Managing energy costs

Capital expenditures

The right people

Regulatory environment

Safety

Shareholder value

Rewarding shareholders

47 CN Investor Fact Book Managingenergy costs 48

20 05 nine months of 2005, the Company’s the 2005, of months nine first the For 2004. September since positions swap any into entered not has Company the factors, other and revenues on surcharges fuel of tion advance. applica in increased an with years However, two to up tion target consump fuel a future of cover percentage to oil heating and crude on positions swap into entry help to for called This expenses. fuel smooth hedges fuel used prices, has fuel CN of volatility the Given Hedging of its third-quarter requirements requirements US$38.00. over just at hedged third-quarter its of cent per 10 and US$36.00 about at hedged requirements second-quarter cent 22 per of its US$34.00, at about hedged requirements first-quarter its of cent per 35 approximately has CN 2006, For (WTI)). Intermediate Texas gallon West of barrel U.S. per US$32.50 (about per US$0.82 of price average an at gallons U.S. 49 million sumption, representing approximately con the fuel 2005 remaining of estimated cent per 47 approximately hedged had Company the 2005, 30, September At $133 million. of gains realized in resulted activities hedging - - - more timely response to fluctuations fluctuations to a response timely more for allow to and prices, crude in quarter. following calendar the to applies surcharge The traffic. certain on surcharge fuel a apply calendar to right the a has CN quarter, for barrel per more or US$24.00 averages oil crude WTI of price the that rising event the In costs. of fuel impact the offset help to 7400, CN fuel- tariff program, a surcharge implemented CN 2001, In surcharges Fuel tariffs and contracts. and tariffs Intermodal all converted have to is goal CN’s 2008, By 7401. CN tariff fuel-surcharge standard the to tracts con and tariffs carload all converted freight. all on 7401 tariff apply will dis CN counting, without equitable be and to simple order In increments. dollar one- with changes and quarterly, of instead monthly calculated is tariff 7401 CN the in contained fuel surcharge The 7401. CN introduced has CN and oil, 7400, CN out crude phasing been has WTI of price the in oee, ie te eet spikes recent the given However, By mid-2007, CN’s goal is to have to is mid-2007, goal CN’s By - -

Managingenergy costs 48

20 05 of its third-quarter requirements requirements US$38.00. over just at hedged third-quarter its of cent per 10 and US$36.00 about at hedged requirements second-quarter cent 22 per of its US$34.00, at about hedged requirements first-quarter its of cent per 35 approximately has CN 2006, For (WTI)). Intermediate Texas gallon West of barrel U.S. per US$32.50 (about per US$0.82 of price average an at gallons U.S. 49 million sumption, representing approximately con the fuel 2005 remaining of estimated cent per 47 approximately hedged had Company the 2005, 30, September At $133 million. of gains realized in resulted activities hedging Company’s the 2005, of months nine first the For 2004. September since positions swap any into entered not has Company the factors, other and revenues on surcharges fuel of tion advance. applica in increased an with years However, two to up tion target consump fuel a future of cover percentage to oil heating and crude on positions swap into entry help to for called This expenses. fuel smooth hedges fuel used prices, has fuel CN of volatility the Given Hedging - - - tariffs and contracts. and tariffs Intermodal all converted have to is goal CN’s 2008, By 7401. CN tariff fuel-surcharge standard the to tracts con and tariffs carload all converted freight. all on 7401 tariff apply will dis CN counting, without equitable be and to simple order In increments. dollar one- with changes and quarterly, of instead monthly calculated is tariff 7401 CN the in contained fuel surcharge The 7401. CN introduced has CN and oil, 7400, CN out crude phasing been has WTI of price the in fluctuations to a response timely more for allow to and prices, crude in quarter. following calendar the to applies surcharge The traffic. certain on surcharge fuel a apply calendar to right the a has CN quarter, for barrel per more or US$24.00 averages oil crude WTI of price the that rising event the In costs. of fuel impact the offset help to 7400, CN fuel- tariff program, a surcharge implemented CN 2001, In surcharges Fuel By mid-2007, CN’s goal is to have to is mid-2007, goal CN’s By spikes recent the given However, - -

61 60 59 58 57 56 55 54 53 52 51 50 63 62 49 48 47 66 65 64 46 32 80 79 78 77 68 67 45 44 43 42 41 40 3 34 33 31 76 39 38 37 36 71 70 69 3 29 28 27 26 25 24 barrel per dollars U.S. WTI 75 74 73 72 5 0

7400 tariff surcharge Fuel 20% 24% 10% 22% 18% 16% 12% 14% 20% 20% 20% 20% 22% 22% 22% 22% 10% 10% 10% 10% 24% 24% 24% 18% 18% 18% 18% 16% 16% 16% 16% 14% 14% 14% 14% 12% 12% 12% 12% 8% 2% 6% 4% 8% 8% 8% 8% 4% 4% 4% 4% 6% 6% 6% 6% 2% 2% tariff 7401 tariff New fuel surcharge fuel New 14.00% 10.25% 15.25% 11.50% 12.75% 10.00% 10.50% 14.50% 15.00% 12.00% 13.00% 13.50% 12.50% 14.25% 12.25% 13.25% 11.00% 10.75% 14.75% 13.75% 11.25% 11.75% 4.00% 6.50% 9.00% 5.25% 1.50% 2.75% 7.75% 8.00% 6.00% 8.50% 5.00% 3.00% 2.00% 4.50% 5.50% 3.50% 2.50% 9.50% 8.25% 6.25% 4.25% 3.25% 2.25% 9.25% 8.75% 7.00% 6.75% 4.75% 5.75% 7.50% 3.75% 9.75% 7.25% 1.75% 30% 10% 15% 20% 25% 5% 0% Fuel surcharge tariffsurcharge Fuel

WTI WTI 25 U.S. dollars per barrel per dollars U.S. 30 k o o B t c a F r o t s e v n I N C 35 40 45 50 55 49 Fuel surcharge tariff 7400 tariffsurcharge Fuel 60 New fuel surcharge tariff 7401 tariffsurcharge fuel New 65 70 75 80 50 Capitalexpenditures (incl. (incl. % of total of % Expenditures Capital 2004 total of % Expenditures Capital Estimated 2005 in millions in Expenditures Capital (incl. 7 10 21 6 13 25 62 56 capital 20 05 capital capital IT and Systems and IT Other stock Rolling infrastructure Rail Systems and IT Other stock Rolling infrastructure Rail leases) leases) leases)

1,090 1,232 1,052

2004 2003 2002

U.S. the and service to its customers across Canada plant, and to provide safe and reliable pre the of integrity and to quality the serve infrastructure rail for was million) ($769 expenditures capital CN’s of portion largest GLT. The and Rail BC for million $45 includes and 2003, to compared increase million $142 an of was This revenues. cent per of 18.8 or billion $1.232 to amounted leases, capital including expenditures, capital CN’s 2004, In otne is oooie le mod fleet locomotive its continued also Company strong The demand. to market respond to CN allowed leases, through multi-levels) and cars box (centerbeams, cars new of tions programs – as well as significantaddi refurbishment The fleets. car hopper icant refurbishment of the Metals and $253 million in 2004, including signif cost. incremental low at grow to ity capac the providing signals, and ings sid in million $250 invested has CN 1999, since total, In alone. corridor in spent in 2004 the western Canada/Chicago million $30 to close with improvements, signalling and sions exten siding in invest to continued CN fluidity, and efficiency network In the ongoing pursuit of greater of pursuit ongoing the In Investment in rolling stock was was stock rolling in Investment ------

art Intermodal terminal in Memphis. Memphis. in terminal Intermodal art state-of-the- million $30 new a of construction facilities the including upgrades, in invested Company the Finally, Enterprise ofsystems. the SAP tives as well as the continued upgrade initia eCommerce drive to and tems, sys GLT smooth and Rail a BC of ensure integration to 2004 in ogy technol and communications mation high-horsepower, units. fuel-efficient new 60 of tion acquisi the with program ernization eoe n motn gtwy for gateway important an become to expected at is which Rupert, terminal Prince container intermodal Fairview the of development the in Terminals Maher and Rupert Prince trains. of Port the with longer partner also will CN run to and network velocity improve to volumes, ing grow accommodate to Edmonton of line west its on extensions siding ther fur in invest to particularly intends CN network. fluid and reliable safe, a toward to capital infrastructure drive continues Company The tions. addi capital on billion $1.4 to close location. strategic this at industry the in best the are services and facilities CN’s that ensures This

For 2005, CN plans to spend spend to plans CN 2005, For CN spent over $80 million on infor ------trade between North America and Asia. CN is also planning to spend in excess of $300 million on rolling stock in 2005. The Company envi- sions a movement toward a more homogeneous fleet of high-capacity cars, driving both customer-service quality and significant distribution efficiencies. CN has already taken delivery of 350 new centerbeams in the first quarter of 2005, with 400 additional centerbeams to come by the end of 2005. The Company will have acquired 500 new Plate F boxcars by the end of 2005, and is planning to acquire 400 boxcars for delivery in 2006. Modernization of the locomotive fleet has continued in 2005 – CN value obtained from its SAP Enterprise negotiated purchase agreements system. with both ElectroMotive Diesel, Inc. All in all, CN’s 2005 capital spend- and GE for the acquisition of 75 high- ing will represent about 19 per cent horsepower locomotives in 2005- of revenues. This is a significant com- 2006 with an option for another mitment on the part of the Company 75 units prior to year-end 2008. toward service quality, network fluid- CN’s information- and commu- ity and velocity, and business-growth nication-technology investment in capacity – and a commitment to 2005 will be in line with 2004 spend- the creation of value for CN’s share- ing. The primary focus will be on holders and customers across North base computing and communication America. infrastructure, integration of BC Rail and GLT, and the maximization of

51 CN Investor Fact Book employees of number average per GTMs 52 Theright people

20 05 14,811 14,246 13,29 12,964 22,679 21,489 22,114 22,868 12,831 * 22,141 21,378 period of end Employees thousands As at September

2004 2003 2002 2001 2000 2005* 2004 2003 2002 2001 2000 30,

2005

futureleaders of the Company. rightthing, and training them tobe the the do to motivating skills, right them the with employees these developing recruitingrightpeople,focusedonthe be able to fully execute. The Company is modela company may have – it will not terhow good aservice plan or business thatwithout the right people –no mat Company’s recognizesthe success. CN roaders in the rail industry best has been the a key develop to to ability CN’s railroaders of culture a Developing tremendousvalue to their capabilities. add that perspective and knowledge developing railroadingnetwork – skills, the manage and trains run engines, the business, learning to lay track, repair Participantsrotate through keyareas of operations. Company’s the of aspect every in experience hands-on gain to absenceregulartheirfromofpositions gramwheremanagersCN leave takea MBA,” is a tailored 12- to 18-month pro business. railroad the in years 40-plus his from knowledge the employees, on passing threedays with agroup of 20 to 25 CN Ineach session, Hunter Harrison spends across the Company as “Hunter Camps.” become2003thathasknowngramin NP Special CNRPA CC Locomotive Signals TCRC TCRC IBEW SA Track USWA A Clerical CAW UTU Union as of September 30,September 2005 of as breakdown union Canadian With this in mind,prothisWithinbeganCNa nte porm te “Railroad the program, Another RT) Rail (RCTC)

Conductors Function traffic forces agents & & omnctos 7 Dec 679 communications hprf 400 Dec 4,010 shopcraft otolr 11 Dec 191 controllers nier 167 Dec 1,657 engineers

- - - - em ad odtos n lc remain place conditions in and terms January on expired (112)ees althoughtheiragreements– theremaining one per cent of employ Railway, Central representingAlgoma the employees of workforce. ized For 99 approximately covering agreements laborplace inCompany hadThe ees. of which 12,339 are unionized employ a total of 15,318 employees in Canada, As of September 30, 2005, CN employed Canada Relations Labor thatmight remain incontention. issue any on jurisdictionretained but the integration of the bargaining units regarding requests CN’s to acceded existing bargaining units at CN. integrate employees the those intoto current bargaining certificates at the BC amend Rail to (CIRB)Relations Board Industrial Canada the with request a filed Company the 2005, March In tion of the various collective agreements.senting all unions, regarding the integra members, repre itsTrade Unions and RailemployeesBC forCouncil withthe of 2004 December in agreements implementing reached Company the iscompleted. bargaining process the until effect in

n coe 1, 05 te CIRB the 2005, 13, October On Followingthe acquisition of BC Rail, e cn o te Company’s union the of cent per 12,227 Members ,4 Dec 2,841 ,8 Dec 2,780 9 Dec 69 Contractexpires

1 20 – the – 2005 31, 31, 31, 31, 31, 31, 31, 31, 2007 2008 2008 2008 2007 2006 2006 - - - - -

United States GLT (DMIR, BLE and PCD) have As of September 30, 2005, CN bargained on a local basis rather than employed a total of 6,823 employ- holding national, industry-wide nego- ees in the United States, of which tiations because they believe it results 5,934 are unionized employees. As in agreements that better address of October 2005, the Company had both the employees’ concerns and in place agreements with bargain- preferences, and the railways’ actual ing units representing the entire operating environment. However, unionized workforce at Grand Trunk local negotiations may not generate Western Railroad Incorporated federal intervention in a strike or (GTW); Duluth, Winnipeg and Pacific lockout situation, since a dispute may (DWP); ICRR; CCP Holdings, Inc. be localized. The Company believes (CCP); GLT (DMIR, BLE, and PCD), and the potential mutual benefits of local 93 per cent of the unionized work- bargaining outweigh the risks. force at WC. Agreements in place Negotiations are ongoing with have various moratorium provisions, the bargaining units with which the ranging from the end of 2002 to Company does not have agreements the end of 2009, which preserve the or settlements. Until new agree- status quo in respect of given areas ments are reached or the processes during the terms of such moratori- of the Railway Labor Act have been ums. Several of these agreements are exhausted, the terms and conditions currently under renegotiation. of existing agreements or policies The general approach to labor continue to apply. negotiations by U.S. Class I railroads is to bargain on a collective national basis. GTW, DWP, ICRR, CCP, WC,

U.S. union breakdown by company as of September 30, 2005

Members IC 2,786 GTW 1,340 WC 1,329 GLT 479 5,934

U.S. union breakdown as of September 30, 2005 Union Members BMWE 1,738 UTU 1,266 Shopcraft 1,130 BLE 957 TCU clerks 575 Others 268 5,934

53 CN Investor Fact Book 54 Regulatoryenvironment

20 05 in Canada, CN is subject to statutes statutes to subject is CN Canada, in safety to respect With matters. regula tory economic has over STB jurisdiction the States, United the In Bureau. Competition the of sibility respon the transactions merger rail of review Transport with Canada), of (Transport Minister federal and the (CTA) Agency Canadian Transportation the of responsibility is the Canada in regulation States. United Economic the regulation and Canada safety in and to economic subject are operations rail CN’s provisions protecting shippers provisions against protecting shippers certain to subject forces, market to according prices negotiate to dom free the Canada in railroads gives industry. other anylike treated sector, rail the including try, was indus to have the transportation legislation the of intent the line. Overall, the of status demonstrate uneconomic the to need the without lines of operation the discontinue to railway a allow to modernized were provisions operations. rationalization railway Network of oversight of detailed and minutiae regulatory deal the good a removed ernment gov the deregulation, this of result a As 1996. and 1987 in legislation successive by deregulated nificantly sig was Canada in sector portation Regulation: Economic Canada in Regulation of Department Transportation. U.S. the of (FRA) Administration Railroad Federal the by administered statutes to subject is Company the States, United the In Canada. Transport by administered The Canada Transportation Act Act Transportation Canada The The trans The ------hl nmru aes ee identi were areas numerous While out in 2000-2001. was review carried This legislation. the of of operation the review five-year a a for included provision 1996 of amendments offer. service and rate carrier’s the or shipper’s the either of arbitrator an by selection the involves and per arbitration can be triggered by a ship offer Final rates. line competitive and interswitching arbitration, include offer final protections shipper power. These market of abuse potential Bureau review of merger transactions transactions Bureauof merger review Competition existing the to in parallel run would which undertakings, transportation regulated federally ing involv acquisitions and mergers for process review interest public new a facilities. The bill also would introduce and companies equipment of use the regarding railway and service providers passenger public between disputes of resolution the for nisms mecha establish also would It lines. railway of operation of continuance dis and transfer the of and goods, of transportation the for rate-setting regarding provisions some of fication modi the and railways, of operation or construction from resulting noise concerning mechanism complaint a of creation the things, other among Act. These Transportation amendments would Canada include, the amend to Parliament Canadian the in duced needed. the not was of overhaul major a most and time users most for well worked system the that was panel review the of conclusion overall the adjustment, or improvement for fied The Canada Transportation Act Act Transportation Canada The n ac 20, bl ws intro was bill a 2005, March In ------to determine if they may result in a Regulation in the Safety Regulation: Rail safety substantial reduction or prevention of United States regulation in the U.S. is the respon- competition in the marketplace. Economic Regulation: The rail- sibility of the FRA, which administers The bill does not, however, include road industry in the U.S. was par- the Federal Rail Safety Act, as well any changes in the area of running tially deregulated through enactment as the rail portions of other safety- rights or forced access of a railroad of the Staggers Rail Act of 1980, related statutes. Among its functions, to the lines of a competitor. which provided greater flexibility to the FRA promulgates and enforces With respect to the Canadian the railroads to rationalize their route rail safety regulations and conducts Transportation Agency, the CTA has networks and establish appropri- research and development in support the responsibility to implement and ate prices for their services based of improved railroad safety. The FRA interpret transport policy but not on market conditions. The legisla- works closely with the railroad indus- to make it. The agency’s mandate tion, however, retained government try on various safety issues through includes the power to license all rail authority to set maximum rail rates its Rail Safety Advisory Committee, carriers that cross provincial bound- or take other actions if a railroad was and also initiates regulatory proceed- aries; the resolution of complaints found to have market dominance or ings when needed to address critical between shippers and railways con- to have engaged in anticompetitive issues. cerning rail rates, service and other behavior. In addition, safety matters relat- matters; and the approval of pro- Interstate freight rail operations ed to security are overseen by the posed construction of rail lines. The are subject to economic regula- Transportation Security Administration, CTA also administers the railway rev- tion administered by the STB, the which is part of the U.S. Department enue cap regime, which is a legislated successor agency to the Interstate of Homeland Security. ceiling on railroad revenues for the Commerce Commission (ICC). Under shipping of western Canadian grain. the authority of the ICC Termination Act of 1995, the STB is responsible Safety Regulation: Rail safety for the resolution of railroad rate and regulation in Canada is the respon- service issues and the review of pro- sibility of Transport Canada, which posed rail restructuring transactions, administers the Canadian Railway including mergers, line sales, con- Safety Act, as well as the rail por- structions, and line abandonments. tions of other safety-related stat- The STB also initiates regulatory pro- utes. Among its functions, Transport ceedings, as appropriate, to deal with Canada promulgates and enforces key issues. rail safety regulations and conducts Legislation is pending in the U.S. research and development in support Congress to increase certain aspects of improved railroad safety. Transport of rail economic regulation. CN will Canada works closely with the rail- play an active role in the deliberations road industry on various safety issues, on these bills should they progress including track standards, equipment through the legislative process. standards, and transportation of hazardous materials.

55 56 per 200,000 person hours person 200,000 per Injuries Reportable FRA miles train million per Accidents Train Reportable FRA Safety

20 05

2.6 2.9 1.6 2.0 * 2.5 3.0 * 1.4 2.0 First First nine nine 2005* 2004 2003 2002 2005* 2004 2003 2002 months months

improvement in safety with proactive proactive with safety in improvement Plan. Safety CN’s Integrated through basis dynamic a on injuries and accidents of causes top target which initiatives coordinated of result the is improvement This years. past five the in consistently decreased have ratios injury FRA and accident Administration) Railroad Federal (U.S. FRA the tosafety, both approach atic activities. railroad all into grated inteis It CN. at value core a is Safety s el s ossec o recogni of consistency as well as expectations,communications andof clarityinitiative ronment.stressesThis envi work the and safetyimprove to designedprocess, new constructive a is initiative behavioral consequences) public. general the and customers employees, low fel their themselves, to risks stitute con which necessary issues address to actions the taking while safety champion to employees encourages CN plan, communication and Policy Management Risk its Through tees. commit safety and health through personnel involving by improvement of level next the toward drives and $10 than million annually in safety training, more invests CN recognition. involve and coaching communication, ment, training, through culture safety its CNstrengthens Plan, Safety accident. or injury without merchandise of delivery secure the ensure and safe, employees all risks, keep minimize to designed is plan Technology.This and Process People, initiatives structured in three key areas: This plan drives continuous continuous drives plan This system CN’s of strength the On For the ‘People’ component of its its of component ‘People’ the For Ns B (neeet, behavior, (antecedents, ABC CN’s ------operational activities. Best Safety Safety Best activities. critical operational of risk the minimize procedures which work safe and process safety contractor a analysis, trend to approach dynamic and decentralized a includes This activities. railroad all into safety systematize to designed five principles. CN’s on focused directly is that lence excelcultureof acreate toskills tion communica and leadership develop acrossthe systemare being trained to tion and corrective action. Supervisors inspection data. inspection CN’sof wayside power predictive the – levels reach enhances condemnable they before symptoms multiple with cars identify to used – database tral cen A detectors. wheel-specification and the wheel-impact new of acquisition and detector bearing acoustic new a of use the with improvements ongoing from benefiting is America, North in advanced most the of one already system, inspection wayside its infrastructure and equipment. CN’s in hazards potential of identification the through prevention of derailment objective the with technologies levels. Corporate and audit teams atand supervisors the Regional involving field processes multiple auditing with driven is actively procedures work safe and rules with compliance well, As railroads. other with benchmarking and ence experi on based initiatives proven practice in of putting by risk minimizing means effective an are CN’s Regions of all by developed Practices Process safety initiatives are are initiatives safety Process CN invests heavily in innovative innovative in heavily invests CN - - - - On the Engineering side, CN con- Transportation of Dangerous tinues to augment its basic capi- Goods and Responsible Care® tal expenditures to improve track CN is a leader in Responsible Care®, and infrastructure, bridges, and signals this initiative will continue to be actively and communications. In 2005, track promoted system-wide. The objective inspections have been increased to is continuous improvement in the areas minimize the risk of derailments. In of health and safety, security, environ- 2006, rail flaw detection and track ment, and community outreach along geometry testing will once again be transportation corridors. In 2005, CN increased to minimize the risk of sustained its Responsible Care® com- derailments. Using track inspection mitment by undergoing an impartial data, combined with trend analysis, audit conducted by the ACC (American CN focuses strategic capital on key Chemistry Council) and CCPA (Canadian areas where the greatest benefits can Chemical Producers’ Association) in be achieved. October. Preliminary results are very Despite some unfortunate inci- positive. dents this year, for the first nine Every year, CN presents Safe Handling months of 2005, CN has been an Awards to customers who demonstrate industry leader with an FRA accident an excellent safety record in loading and ratio of 1.4 FRA accidents per million shipping dangerous goods. In 2005, CN train miles. CN has also improved presented awards to 86 customers. its FRA injury ratio for the first nine Strict government regulations sup- months to 2.5 FRA injuries per ported by Company policies and proce- 200,000 person-hours, from 2.7 for dures are in place to ensure dangerous the comparable period in 2004. goods/hazardous materials are transported safely. Customers and employees work together to meet the daily challenges of running a safe operation. CN 911, a tank car specially designed and equipped for training emergency responders, is used along the entire CN network.

57 Shareholdervalue Share per Earnings Diluted Adjusted Flow Cash Free 58 (1)

20 05 in $ in millions in 2 Adjusted (2) See (1) First * * 1,058 1,025 86 3.98 4.34 3.60 3.48 3.28 2.93 First 578 513 443 measures. non-GAAP reconciliation affecting of for nine results. a Appendix nine reconciliation months the to months See measures. exclude 2005* 2004 2003 2002 2001 2000 2005* 2004 2003 2002 2001 2000 comparability of C Appendix (2) for non-GAAP

a items

C against the U.S. dollar negatively negatively dollar U.S. the C$) per against US$ $0.85 to $0.84 from example (for dollar Canadian the of appreciation annual one-cent a age, aver On fluctuations. exchange-rate the Company’s results are by affected Thus, dollars. U.S. in denominated is cent) per 90 (about debt and cent), per cent), 55-60 (approximately per expenses 50-55 (approximately revenues of portion large a dollars, Canadian in earnings its reports and business its conducts CN Although sensitivity dollar U.S. leases with floating-rate rentals. floating-rate with leases and securitization paper, commercial through rates interest floating at ings financ its centof 20 per about keeps CN rates, interest short-term lower declines. Canadian expense interest dollar CN’s appreciates, dollar revenues the and As Canadianassets. to hedge its increasing a U.S. dollar-denominated as dollars U.S. in debt CN instance, issues For management. financial-risk to approach structural a applies also Company The ments. tives on a limited basis as hedge instru CN deriva financial uses movements, interest-rate extent lesser a to and – volatility fuel-price dollar, the Canadian of affected value the in fluctuations profitability by CN’s With risks financial Managing year. per million $9 to lion mil $8 about by income net affects To take advantage of generally generally of advantage take To - - - - -

US$1 billion committed revolving revolving committed billion US$1 five-year a include: These funds. of sources various to access ready with flexibility financial ample maintains Company the capacity, generation acquisitions. past debt-financed of the spite in – years few for industry the in balance sheet strongest the is result The affairs. financial its of management in the approach a prudent CN adopts flexibility financial Maintaining at lower costs. lower at CNratings enable financing to obtain Baa1.higher from These upgrade ble possi a for review under CN placing is Moody’s while July, in BBB+ from A-, to upgrade S&P an by followed BBB(high), from A(low), to CN raised Service Rating Bond Dominion 2005, strength with rating upgrades. In June financial CN’s acknowledged cretely able. receiv accounts of sales by backed a program securitization million C$500 and facility), credit revolving the by (backed program paper mercial com million C$800 a facility, credit n o o is osdrbe cash- considerable its of top On rdt aig gnis ae con have agencies rating Credit

- - - - Debt to Total Capitalization Corporate governance in % CN adheres to the highest standards in its governance practices. These practices are designed to assist the company in the achievement of its principal stated corporate objective, which is the enhancement of shareholder value on a long-term basis. On 41.4 2000 March 8 and September 21, 2005, 45.7 2001 40.0 2002 the Board of Directors revised CN’s 35.6 2003 Corporate Governance Manual with 35.7 2004 35.1 2005* a view to continuously improve the

* As at September 30, 2005 Company’s Board and Committee practices. In addition, the Board adopted Management incentives a code of business conduct for all Through the Company’s Annual directors, officers and employees in Incentive Bonus Plan (AIBP), a sub- 2003. CN is committed to the promo- stantial portion of an executive’s tion of best practices in all aspects annual compensation is linked to the of its activities. CN’s vast presence achievement of key financial, busi- in Canada and the U.S. subjects ness and personal objectives set by the Company to complex laws and the Board of Directors at the begin- regulations in many jurisdictions. The ning of the year. The bulk of the Company also deals with thousands bonus is linked to the achievement of customers, suppliers, contractors of goals that contribute to the orga- and partners around the world that nization’s long-term financial growth are helping CN to become the best and profitability. These goals include transportation company in North the Company’s performance against America. With thousands of transac- revenues, operating income, earnings tions over thousands of miles, CN’s per share, free cash flow and return high standards of ethical business on invested capital. conduct remain a constant.

1996 0.27 1997 0.31 1998 0.35 Rewardingshareholders 1999 0.40 2000 0.47 Split-adjusted History Payout Dividend Annual 2001 0.52 60

2002 0.57 20 05 2003 0.67 in $ in 2004 0.78

2005 1.00 tionand astrong balance sheet, on July for$748 million. 10.0 with $72.94), of share per price age $1.021 (aver billion was program the of cost total share. The $74.30 per of price average an at million, $401 for shares common million 5.4 remaining the repurchasing 2004, 1, November share repurchase millionprogram, which 14.0 began its completed the Company 2005, of quarter second the In Sharerepurchases bidsat an average price of $48.29. issuer course normal through shares January 2000,CN in has repurchased began 57.75 program million first the Since program. repurchase share new the under share) per $79.98 of price (average million $380 for shares mon Company repurchased 4.75 million com prices. prevailing market at bid, issuer course andJuly 24, 2006 pursuant to anormal commonshares between July25, 2005 fortherepurchase ofupto16.0 million allows program This program. chase Company approved its fifth share repur 20,2005, theBoard ofDirectors ofthe 1,000 200 400 600 800 With superior free cash flow genera s f etme 3, 05 the 2005, 30, September of As

0 millionshares repurchased in2005 % return % November Performance Stock CN 17, 1995 to September

30, 2005 - - - -

1995IPO. November its since sions occa two on stock its split has CN and to increase the liquidity of shares, investors, individual to shares CN of In order to ensure greater accessibility splits Stock consecutive dividend. CN’scash in increases nine been have 1995, there in IPO Company’s share. the Since common per ($0.25) cents twenty-five of dividend pays quarterly a policy dividend current CN’s Dividends been adjusted accordingly. adjusted been 2004. 23, February on ness ofof busi record at close the holders share to 27, 2004, February on paid was dividend stock The held). shares two each for share additional (one held share common each share for CN of common additional an half a received Shareholders stock dividend. of form the in also split, for-two 1999.23, September business of close the at record of shareholders two-for- to 199927, September a on paid one was dividend stock of The first stock split paid by way by paid split stock first The l sae n pr hr dt has data share per and share All The second stock split was a three- S&P Rail S&P 500 TSX CNR CNI - - -

Financial and statistical data u.s. gaap Appendix A

61 CN Investor Fact Book Appendix A

C a n a d i a n N a t i o n a l R a i l w a y C o m p a n y QUARTERLY CONSOLIDATED STATEMENT OF INCOME 2003 – 2005 (1) unaudited

$ in millions, unless otherwise indicated 2003 2004 2005

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3

Revenues Petroleum and chemicals $ 281 $ 243 $ 244 $ 245 $ 1,013 $ 250 $ 259 $ 282 $ 268 $ 1,059 $ 275 $ 271 $ 267 Metals and minerals 126 131 130 140 527 134 184 203 193 714 199 214 209

62 Forest products 324 334 331 331 1,320 320 369 417 399 1,505 404 450 448 Coal 74 70 57 60 261 67 74 71 72 284 79 97 80 2 0 0 5 Grain and fertilizers 236 204 222 285 947 256 274 234 299 1,063 276 260 273 Intermodal 265 289 280 267 1,101 228 287 302 300 1,117 287 313 331 Automotive 143 143 103 136 525 130 143 112 125 510 122 139 114 Other items 47 49 46 48 190 53 75 88 80 296 64 94 88 Total revenues 1,496 1,463 1,413 1,512 5,884 1,438 1,665 1,709 1,736 6,548 1,706 1,838 1,810

Operating expenses Labor and fringe benefits 454 415 414 415 1,698 419 466 465 469 1,819 499 436 453 Purchased services and material 200 178 151 174 703 190 181 190 185 746 206 196 188 Depreciation and amortization 143 139 136 136 554 142 150 153 153 598 156 158 156 Fuel 127 125 100 117 469 122 123 132 151 528 166 179 181 Equipment rents 77 82 69 65 293 63 68 64 49 244 47 53 46 Casualty and other 121 87 89 93 390 107 102 114 122 445 106 103 121 Total operating expenses 1,122 1,026 959 1,000 4,107 1,043 1,090 1,118 1,129 4,380 1,180 1,125 1,145

Operating income 374 437 454 512 1,777 395 575 591 607 2,168 526 713 665

Interest expense (85) (83) (76) (71) (315) (72) (68) (79) (75) (294) (75) (78) (72) Other income (loss) 4 (4) 13 8 21 (13) (23) (9) 25 (20) (4) (5) 11

Income before income taxes and cumulative effect of change in accounting policy 293 350 391 449 1,483 310 484 503 557 1,854 447 630 604 Income tax expense (89) (106) (97) (225) (517) (100) (158) (157) (181) (596) (148) (214) (193)

Income before cumulative effect of change in accounting policy 204 244 294 224 966 210 326 346 376 1,258 299 416 411 Cumulative effect of change in accounting policy (net of applicable taxes) 48 – – – 48 – – – – – – – – Net income $ 252 $ 244 $ 294 $ 224 $ 1,014 $ 210 $ 326 $ 346 $ 376 $ 1,258 $ 299 $ 416 $ 411

Operating ratio 75.0% 70.1% 67.9% 66.1% 69.8% 72.5% 65.5% 65.4% 65.0% 66.9% 69.2% 61.2% 63.3%

(1) 2004 includes Great Lakes Transportation LLC’s railroads and related holdings (GLT) and BC Rail from May 10 and July 14, respectively.

Certain of the 2003 and 2004 comparative figures have been reclassified in order to be consistent with the 2005 presentation.

47 643 175 252 930 370 115 (169) Q3 4,763 9,199 1,236 1,914 4,743 1,463 4,608 4,605 19,761 $ 1,429 $ 21,927 $ 21,927 $ 119 2003 – 2005 2003

83 82 662 187 181 279 918 Q2 (106) 2005 4,720 9,254 1,464 1,742 4,910 1,499 5,034 4,640 20,057 $ 1,577 $ 155 $ 22,439 $ 22,439

77 727 178 250 399 (91) 873 225 Q1 4,684 9,308 1,756 1,888 4,802 1,474 4,956 4,715 19,799 $ 1,586 $ 202 $ 22,428 $ 22,428

B alance eet Sh C onsolidated 76 793 127 364 279 940 578 Q4 (148) 4,726 9,284 1,710 2,259 4,723 1,513 4,586 4,706 19,715 $ 1,605 $ 147 $ 22,365 $ 22,365

QUARTERLY QUARTERLY

69 743 155 106 279 (57) Q3 947 257 4,612 9,297 1,415 1,657 4,673 1,616 5,141 4,742

20,022 $ 1,331 $ 132 $ 22,384 $ 22,384 2004

70 617 169 102 260 (35) 898 256 Q2 4,322 8,991 1,283 1,811 5,129 1,471 4,568 4,704 19,789 $ 1,485 $ 135 $ 21,970 $ 21,970

Appendix

82 519 155 126 252 149 781 Q1 (111) 8,623 4,682 4,052 1,227 1,597 4,642 1,200 4,367 18,421 $ 1,366 $ 20,429 $ 175 $ 20,429

73 529 120 125 223 905 483 Q4 (129) 3,897 8,432 1,127 1,977 4,550 1,203 4,175 4,664 18,305 $ 1,421 $ 130 $ 20,337 $ 20,337

62 567 145 123 174 844 537 Q3 (116) 3,720 8,246 1,131 2,048 4,489 1,197 4,473 4,642

18,478 $ 1,449 $ 122 $ 20,453 $ 20,453 2003

64 605 152 123 186 828 559 Q2 (119) 3,532 8,044 1,196 2,069 4,411 1,209 4,552 4,631 18,261 $ 130 $ 1,446 $ 20,285 $ 20,285

79 706 160 126 206 (13) 837 949 Q1 3,469 8,124 1,282 2,539 4,651 1,279 4,544 4,668 19,018 a n y p $ 1,511 $ 21,137 $ 21,137 $ 84 m o C a i l w a y R

n a l o a t i N

a n a d i a n Retained earnings Cash and cash equivalents Accounts receivable Material and supplies Deferred income taxes Other Accounts and payable accrued charges Current portion of long-term debt Other Common shares Accumulated other comprehensive loss liabilities and shareholders’ equity Total C unaudited millions in ASSETS Current assets: Properties Intangible and other assets assets Total Current liabilities: Deferred income taxes Other liabilities and deferred credits Long-term debt Shareholders’ equity: presentation. 2005 the with consistent be to order in reclassified been have figures comparative 2004 and 2003 the of Certain LIABILITIES AND S H ARE OLDERS’ EQUITY

63 CN Investor Fact Book Appendix A

C a n a d i a n N a t i o n a l R a i l w a y C o m p a n y QUARTERLY Consolidated Statement of Cash Flows 2003 – 2005 (1) unaudited

in millions 2003 2004 2005 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 OPERATING ACTIVITIES Net income $ 252 $ 244 $ 294 $ 224 $ 1,014 $ 210 $ 326 $ 346 $ 376 $ 1,258 $ 299 $ 416 $ 411

Adjustments to reconcile net income to net cash

64 provided from operating activities: Depreciation and amortization 145 140 137 138 560 143 152 153 154 602 157 159 157 2 0 0 5 Deferred income taxes 72 85 65 189 411 55 87 158 66 366 136 162 146 Equity in earnings of English Welsh and Scottish Railway (14) (4) (2) 3 (17) 5 3 (1) (3) 4 (5) (1) – Cumulative effect of change in accounting policy (48) – – – (48) – – – – – – – – Other changes in: Accounts receivable 1 79 39 34 153 8 (68) (80) (93) (233) 64 70 (10) Material and supplies (37) 3 7 24 (3) (35) (3) 30 18 10 (51) (8) 9 Accounts payable and accrued charges (30) (45) (30) 9 (96) (66) 37 (81) 115 5 (21) (60) (103) Other net current assets and liabilities (9) 4 3 (27) (29) (29) 48 26 (24) 21 (10) 53 40 Other 29 (5) 13 (6) 31 14 8 5 79 106 14 (6) (7)

Cash provided from operating activities 361 501 526 588 1,976 305 590 556 688 2,139 583 785 643 INVESTING ACTIVITIES Net additions to properties (121) (266) (309) (347) (1,043) (125) (259) (323) (365) (1,072) (153) (318) (321) Acquisition of BC Rail – – – – – – – (984) – (984) – – – Acquisition of GLT – – – – – – (553) 6 – (547) – – – Other, net (10) 3 2 (27) (32) 141 31 (3) 23 192 4 69 17

Cash provided from (used by) investing activities (131) (263) (307) (374) (1,075) 16 (781) (1,304) (342) (2,411) (149) (249) (304)

Dividends paid (49) (47) (48) (47) (191) (55) (56) (56) (55) (222) (71) (69) (68) FINANCING ACTIVITIES Issuance of long-term debt 1,316 708 705 1,380 4,109 491 3,530 2,903 1,353 8,277 620 473 648 Reduction of long-term debt (1,087) (676) (825) (1,553) (4,141) (726) (3,340) (2,132) (1,381) (7,579) (651) (596) (599) Issuance of common shares 11 30 28 14 83 14 17 30 25 86 70 10 24 Repurchase of common shares (362) (207) (87) – (656) – – – (273) (273) (347) (401) (380)

Cash provided from (used by) financing activities (122) (145) (179) (159) (605) (221) 207 801 (276) 511 (308) (514) (307) Net increase (decrease) in cash and cash equivalents 59 46 (8) 8 105 45 (40) (3) 15 17 55 (47) (36)

Cash and cash equivalents, beginning of period 25 84 130 122 25 130 175 135 132 130 147 202 155 Cash and cash equivalents, end of period $ 84 $ 130 $ 122 $ 130 $ 130 $ 175 $ 135 $ 132 $ 147 $ 147 $ 202 $ 155 $ 119

Supplemental cash flow information Net cash receipts from customers and other $ 1,556 $ 1,489 $ 1,602 $ 1,375 $ 6,022 $ 1,404 $ 1,619 $ 1,738 $ 1,740 $ 6,501 $ 1,886 $ 1,834 $ 1,825 Net cash recoveries (payments) for: Employee services, suppliers and other expenses (965) (832) (891) (574) (3,262) (931) (841) (974) (882) (3,628) (1,113) (892) (946) Interest (82) (81) (80) (82) (325) (74) (54) (71) (83) (282) (91) (52) (93) Workforce reductions (48) (41) (32) (34) (155) (32) (24) (25) (12) (93) (31) (21) (20) Personal injury and other claims (38) (17) (36) (35) (126) (36) (19) (23) (28) (106) (27) (21) (23) Pensions (4) (21) (21) (46) (92) (6) (60) (61) (34) (161) (2) (52) (19) Income taxes (58) 4 (16) (16) (86) (20) (31) (28) (13) (92) (39) (11) (81) Cash provided from operating activities $ 361 $ 501 $ 526 $ 588 $ 1,976 $ 305 $ 590 $ 556 $ 688 $ 2,139 $ 583 $ 785 $ 643

(1) 2004 includes GLT and BC Rail from May 10 and July 14, respectively.

(1) 96 2.8 1.8 879 Q3 1.79 0.54 3.88 1.36 3,795 1,216 1,416 22,141 22,233 19,221 84,384 44,425

2.1 1.4 2003 – 2005 – 2005 2003 845 102 Q2

1.66 0.51 3.90 1.31 2005

3,828 1,225 1,424 22,462 22,519 19,221 86,206 44,757

812 2.5 1.1 Q1 0.59 1.40 104 3,776 1,378 1.53 3.66 1,192 22,390 19,221 84,476 44,921 22,371

2.6 1.6 851 391 1.30 0.55 3.59 1.32 Year 4,578 1,366 D ata S tatistical Q uarterly 22,679 22,470 14,811 19,304 332,807 174,240

2.3 1.7 861 103 Q4 1.43 0.53 3.60 1.27 3,847 1,245 1,330 22,679 23,043 19,304 88,636 45,973

95 2.8 2.0 874 Q3 1.31 0.56 3.70 1.35 2004 3,559 1,210 1,340 23,466 23,332 19,303 83,039 43,798

A 98 2.5 1.2 849 Q2 1.27 0.56 3.68 1.31 3,748 1,146 1,387 22,514 22,192 17,898 83,179 43,175

95 2.6 1.4 Appendix 821 1.20 0.54 3.35 977 Q1 1.34 3,674 1,418 21,424 21,219 17,544 77,953 41,294

2.9 2.0 838 374 1.21 0.54 3.51 1.31 Year 4,100 1,389 14,246 21,489 22,012 17,544 313,593 162,152

99 2.4 2.1 844 Q4 1.12 0.50 3.35 1.20 3,814 1,044 1,402 21,489 21,918 17,544 83,600 43,649

88 3.5 1.9 866 Q3 2003 1.13 0.54 3.46 1.26 3,407 1,010 1,353 22,293 22,357 17,539 76,169 39,499

94 2.6 2.3 827 Q2 1.26 0.53 3.59 1.32 3,496 1,030 1,373 22,431 22,229 17,539 77,715 39,436

93 2.9 1.7 818 Q1 1.30 0.60 3.66 1.47 3,535 1,016 1,426 21,528 21,578 17,618 76,109 39,568 a n y p m o

a i l w a y

(cents) ($) (cents) (millions)

n a l

(millions) o (U.S. gallons in (U.S. millions)

($/U.S. gallon) ($/U.S.

a t i

(thousands) (includes Canada and the U.S.) (cents) (end of period) (average during period) (thousands)

2004 includes GLT and 2004 BC includes Rail GLT from May 10 and respectively. July 14, a n a d i a n employees employees per GTM

C unaudited Statistical operating data Gross ton miles (GTM) Revenue ton miles (RTM) Carloads Route miles Employees Employees Productivity Freight revenue per RTM Freight revenue per carload Operating expenses per GTM Labor and fringe benefits expense GTMs per number average of Diesel fuel consumed fuel Average price GTMs gallon per of U.S. fuel consumed Safety indicators Injury frequency rate per 200,000 person hours Accident rate per million train miles (1) Certain of the comparative statistical data and related productivity measures have been restated to reflect changes to estimated statistical data previouslyreported.

65 CN Investor Fact Book Financial and statistical data pro forma Appendix B 20 05 66

– (19) 773 510 291 322 788 618 550 234 460 (600) (337) Year 1,606 1,068 1,117 1,895 1,872 1,272 4,545 6,773 2,228 67.1% $ 1,086 $ 4.39 $ 4.39 $ 1,272

2003 – 2004 2003

–

(1) 72 72 80 49 25 (75) 193 193 399 299 300 125 185 153 151 122 469 557 376 Q4 607 (181) 1,129 1,736 65.0% $ 268 $ 1.29 $ 1.29 $ 376

PRO FORMA FORMA PRO –

(9) 71 71 89 63 (82) 203 203 424 235 301 112 191 153 133 114 469 505 347 Q3 596 (158) 2004 1,123 1,719 65.3% $ 284 $ 1.19 $ 1.19 $ 347

–

77 77 89 62 (23) (87) 205 205 414 275 288 143 196 158 132 108 494 501 338 Q2 611 (163) 1,150 1,761 65.3% $ 270 $ 1.17 $ 1.17 $ 338

–

71 71 64 60 (12) (93) 172 172 369 259 228 130 216 154 134 116 463 309 211 (98) 414 Q1 1,143 1,557 $ $ 264 $ 0.73 $ 211 73.4% $ 0.73 B

20 51 287 287 300 689 689 525 955 955 792 610 522 281 419 (543) (378) Year 1,507 1,507 1,102 1,877 1,569 1,026 4,501 6,428 1,927 QUARTERLY CONSOLIDATED STATEMENT OF INCOME – INCOME OF STATEMENT CONSOLIDATED QUARTERLY 70.0% $ 1,063 $ 1,063 $ 3.70 $ 3.80 $ 1,077 Appendix

–

8 65 65 80 62 (86) 173 173 377 268 136 289 289 192 151 131 104 457 472 240 Q4 550 (232) 1,097 1,647 66.6% $ 259 $ 0.83 $ 1.11 $ 240

–

65 65 82 65 94 12 (92) 171 171 379 280 103 223 223 171 151 114 458 427 318 Q3 507 (109) 2003 1,053 1,560 67.5% $ 257 $ 1.10 $ 1.10 $ 318

–

(4) 76 76 85 79 94 (99) 261 178 178 378 289 143 205 205 205 152 139 462 374 261 Q2 477 (113)

0.90 0.90 $ $ $ 1,131 1,608 70.3% $ 254

81 81 53 51 75 (89) 167 167 373 265 143 224 138 127 500 207 393 238 238 156 296 (101) Q1 $ $ 293 $ 0.70 1,220 1,613 $ 0.87 $ 258 75.6%

a n y p

m o

(2)

a i l w a y

n a l

a t i

Petroleum and chemicals chemicals and Petroleum Metals and minerals minerals and Metals products Forest Coal fertilizers and Grain Intermodal Automotive items Other Great Lakes Transportation LLC’s railroads and and BC LLC’s related holdings Rail (GLT) were acquired and Pro Transportation consolidated forma Great on assumes Lakes 2004 respectively. May that and 10, 2004, the July acquisitions 14, took place on Purchased Purchased services and material Depreciation and amortization Fuel Equipment rents Casualty and other operating expenses Total Other income (loss) Total revenues Total See Appendix 2003. January C 1, for a reconciliation of non-GAAP measures. Based on adjusted pro forma See net Appendix income. C for a reconciliation of non-GAAP measures. Interest Interest expense Labor and fringe benefits effect of change in accounting policy in accounting policy (net of applicable taxes) a n a d i a n (1) Income tax expense C unaudited indicated otherwise unless or data, share per except $ millions, in Revenues Operating expenses Income before income taxes and cumulative Income before cumulative effect of change Cumulative effect of change in accounting policy Adjusted diluted earnings per share (2) Certain of the 2003 and 2004 figures have beenreclassified inorder to be consistent with the 2005presentation. Operating income Operating ratio Diluted earnings per share

Net income

67 CN Investor Fact Book Appendix B

C a n a d i a n N a t i o n a l R a i l w a y C o m p a n y Quarterly SUPPLEMENTARY INFORMATION – PRO FORMA (1) 2003 – 2004 unaudited

2003 2004

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year 68 Revenue ton miles 2 0 0 5 millions Petroleum and chemicals 8,051 7,159 7,383 7,913 30,506 7,934 7,792 8,085 8,057 31,868 Metals and minerals 3,898 4,014 3,999 4,354 16,265 4,401 4,469 4,321 4,066 17,257 Forest products 9,177 9,795 9,895 9,883 38,750 9,656 10,429 10,843 10,191 41,119 Coal 3,381 3,734 3,191 3,193 13,499 3,252 3,161 3,036 3,342 12,791 Grain and fertilizers 8,704 7,392 8,361 11,466 35,923 10,075 10,040 8,843 11,290 40,248 Intermodal 7,309 8,225 7,802 7,832 31,168 6,990 7,737 8,090 8,185 31,002 Automotive 847 913 620 845 3,225 834 905 740 842 3,321

41,367 41,232 41,251 45,486 169,336 43,142 44,533 43,958 45,973 177,606

Carloads thousands Petroleum and chemicals 149 138 140 148 575 151 149 152 151 603 Metals and minerals 212 213 180 177 782 223 261 253 254 991 Forest products 178 179 178 178 713 178 183 187 181 729 Coal 117 120 108 106 451 114 110 109 113 446 Grain and fertilizers 135 122 137 162 556 144 144 134 157 579 Intermodal 308 332 323 313 1,276 261 313 314 314 1,202 Automotive 73 76 60 79 288 76 80 64 75 295

1,172 1,180 1,126 1,163 4,641 1,147 1,240 1,213 1,245 4,845

(1) GLT and BC Rail were acquired and consolidated on May 10, 2004 and July 14, 2004, respectively. Pro forma assumes that the acquisitions occurred on January 1, 2003.

780 652 929 3.63 3.91 2.28 4.48 2.65 3.60 3.41 Year 15.36 2,203 1,845 1,729 1,331 1,801 2003 – 2004 2003

(1) 760 637 955 Q4 3.60 3.60 3.92 3.92 2.15 4.75 4.75 2.65 3.67 3.33 3.33 14.85 14.85 2,204 1,904 1,667 1,330 1,775

PRO FORMA FORMA PRO

– – 802 651 959 Q3 3.71 3.71 3.91 3.91 2.34 4.70 4.70 2.66 3.72 3.51 3.51 2004 15.14 15.14 2,267 1,754 1,750 1,344 1,868

785 700 920 Q2 3.75 3.75 3.97 3.97 2.44 4.59 4.59 2.74 3.72 3.47 3.47 15.80 15.80 2,262 1,910 1,788 1,348 1,812

771 623 874 3.46 3.46 3.91 3.91 2.57 3.26 3.33 3.33 Q1 3.82 3.82 2.18 15.59 15.59 2,073 1,799 1,711 1,302 1,748 B

SUPPLEMENTARY INFORMATION INFORMATION SUPPLEMENTARY Q uarterly

881 636 864 3.62 3.62 4.24 4.24 3.89 2.13 2.66 3.54 3.48 3.48 Year 16.28 16.28 2,114 1,718 1,823 1,320 1,849 Appendix

977 613 856 Q4 3.45 3.45 3.97 3.97 3.81 2.04 2.52 3.42 3.27 3.27 16.09 16.09 2,118 1,784 1,722 1,347 1,750

950 602 867 Q3 3.58 3.58 4.28 4.28 3.83 2.04 2.67 3.59 3.48 3.48 2003 16.61 16.61 2,129 1,628 1,717 1,313 1,836

836 633 870 Q2 3.69 3.69 4.43 4.43 3.86 2.04 2.77 3.51 3.55 3.55 15.66 15.66 2,112 1,680 1,882 1,291 1,841

788 692 860 3.77 3.77 4.28 4.28 4.06 2.40 2.73 3.63 3.64 3.64 Q1 16.88 16.88 2,096 1,763 1,959 1,331 1,966

a n y p m o C

a i l w a y R

n a l

a t i N

Petroleum and chemicals and Petroleum Metals and minerals and Metals products Forest Coal fertilizers and Grain Intermodal Automotive Metals and minerals Forest products Coal Grain and fertilizers Intermodal Automotive and BC Rail GLT were acquired and Pro consolidated forma on assumes 2004 respectively. May that and 10, 2004, the July acquisitions 14, occurred on 2003. January 1, Petroleum and chemicals Petroleum a n a d i a n

C unaudited Freight (cents) revenue/RTM Freight revenue/carload (dollars) (1)

69 CN Investor Fact Book Appendix B

C a n a d i a n N a t i o n a l R a i l w a y C o m p a n y Quarterly Statistical Data – PRO FORMA (1) 2003 – 2004 unaudited

2003 2004

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year 70 Statistical operating data

2 0 0 5 Gross ton miles (GTM) (millions) 79,181 80,751 79,108 86,537 325,577 81,042 85,782 83,758 88,636 339,218 Revenue ton miles (RTM) (millions) 41,367 41,232 41,251 45,486 169,336 43,142 44,533 43,958 45,973 177,606 Carloads (thousands) 1,172 1,180 1,126 1,163 4,641 1,147 1,240 1,213 1,245 4,845 Route miles (includes Canada and the U.S.) 19,382 19,303 19,303 19,308 19,308 19,313 19,309 19,303 19,304 19,304 Employees (end of period) 23,870 24,858 24,640 23,746 23,746 23,642 23,828 23,466 22,679 22,679 Employees (average during period) 23,781 24,611 24,750 24,207 24,337 23,342 23,839 23,621 23,043 23,461

Productivity

Freight revenue per RTM (cents) 3.77 3.69 3.58 3.45 3.62 3.46 3.75 3.71 3.60 3.63 Freight revenue per carload ($) 1,331 1,291 1,313 1,347 1,320 1,302 1,348 1,344 1,330 1,331 Operating expenses per GTM (cents) 1.54 1.40 1.33 1.27 1.38 1.41 1.34 1.34 1.27 1.34 Labor and fringe benefits expense per GTM (cents) 0.63 0.57 0.58 0.53 0.58 0.57 0.58 0.56 0.53 0.56 GTMs per average number of employees (thousands) 3,330 3,281 3,196 3,575 13,378 3,472 3,598 3,546 3,847 14,459 Diesel fuel consumed (U.S. gallons in millions) 99 99 93 104 395 101 101 96 103 401 Average fuel price ($/U.S. gallon) 1.29 1.25 1.13 1.12 1.20 1.22 1.29 1.31 1.43 1.31 GTMs per U.S. gallon of fuel consumed 800 816 851 832 824 802 849 872 861 846

Safety indicators

Injury frequency rate per 200,000 person hours 3.2 3.0 3.0 4.1 3.2 2.9 2.7 3.2 2.3 2.8 Accident rate per million train miles 2.0 2.5 2.5 2.3 2.3 1.7 1.5 1.9 1.7 1.7

(1) GLT and BC Rail were acquired and consolidated on May 10, 2004 and July 14, 2004, respectively. Pro forma assumes that the acquisitions occurred on January 1, 2003. Financial and statistical data reconciliation of non-gaap measures Appendix C

The Company makes reference to non-GAAP measures that do not have any standardized meaning prescribed by U.S. GAAP and are, therefore, not necessarily comparable to similar measures presented by other companies and, as such, should not be considered in isolation. Management believes that non-GAAP measures such as adjusted and adjusted pro forma net income and the resulting adjusted and adjusted pro forma performance measures for such items as operating income, operating ratio and per share data are useful measures of performance that can facilitate period-to-period comparisons as they exclude items that do not arise as part of the normal day-to-day operations or that could potentially distort the analysis of trends in business performance. The exclusion of specified items in the adjusted measures herein does not imply that they are necessarily non-recurring. The Company also believes free cash flow to be a useful measure of performance as it demonstrates the Company's ability to generate cash after the payment of capital expenditures and dividends. A reconciliation of the various non-GAAP measures to their comparable U.S. GAAP measures is provided in the section that follows.

71 CN Investor Fact Book Appendix C

C a n a d i a n N a t i o n a l R a i l w a y C o m p a n y Reconciliation of Non-GAAP Measures 2000– 2001 unaudited

$ in millions, except per share data, or unless otherwise indicated

2000 2001

Reported Adjustments (1) Adjusted Reported Adjustments (2) Adjusted Pro forma Adjusted 72 adjustments (3) pro forma

2 0 0 5 Revenues $ 5,428 $ – $ 5,428 $ 5,652 $ – $ 5,652 $ 438 $ 6,090 Operating expenses 3,780 – 3,780 3,970 (98) 3,872 303 4,175 Operating income 1,648 – 1,648 1,682 98 1,780 135 1,915

Interest expense (311) – (311) (327) – (327) (80) (407) Other income 136 (84) 52 65 (2) 63 24 87

Income before income taxes 1,473 (84) 1,389 1,420 96 1,516 79 1,595 Income tax expense (536) 26 (510) (380) (158) (538) (29) (567) Net income $ . 937 $ (58) $ 879 $ 1,040 $ (62) $ . 978 $ 50 $ 1,028

Operating ratio 69.6% 69.6% 70.2% 68.5% 68.6%

Basic earnings per share $ 3.20 $ 3.01 $ 3.61 $ 3.39 $ 3.57 Diluted earnings per share $ 3.12 $ 2.93 $ 3.49 $ 3.28 $ 3.45

(1) Includes a gain of $84 million ($58 million after tax) related to the exchange of the Company’s minority equity investments in certain joint venture companies for 11.4 million shares of 360networks Inc. (2) Operating expenses include a second-quarter charge of $98 million ($62 million after tax) for workforce reductions. Other income includes a first-quarter gain of $101 million ($73 million after tax) from the sale of the Company’s 50 per cent interest in the Detroit River Tunnel Company and a second-quarter charge of $99 million ($71 million after tax) to write down the Company’s net investment in 360networks Inc. 2001 also includes a second-quarter deferred income tax recovery of $122 million. (3) Wisconsin Central Transportation Corporation (WC) was acquired and consolidated on October 9, 2001. Pro forma assumes that the acquisition took place on January 1, 2001.

– 20 (378) (464)

1,105 4,501 1,569 1,927 Adjusted 70.0% pro pro forma 2002– 2003 2002–

$ 6,428 $ 1,105 $ 3.80 $ 3.85

(3)

– (1) 60 86 (63) (26) 394 150 $ 544 $ 60 Pro Pro forma adjustments of N on -GAAP easures M

– 21

(438) (315) 1,045 4,107 1,777 1,483 2003 69.8% $ 5,884 $ 1,045 Adjusted $ 3.60 $ 3.65 R econciliation

(2)

– – – – – 79 79 (48)

$ 31 $ – C Adjustments

Appendix 21 48

966 (315) (517) 4,107 1,483 1,777 69.8% $ 1,014 Reported $ 5,884 $ 3.49 $ 3.54 – 76

(361) (533) 1,052 4,240 1,585 1,870 69.4% Adjusted $ 6,110 $ 1,052 $ 3.48 $ 3.57

(1)

– – –

2002 252 401 401 (401) (149) $ – $ 252 Adjustments

– 76

800 a n y (361) (384) 4,641 1,184 p 1,469 2.65 800 2.71 76.0%

m Reported $ $ $ $ 6,110 o C

a i l w a y R

n a l o a t i N cumulative effect of

Includes a fourth-quarter charge of $281 million ($173 million after tax) to personal increase injury U.S. the and Company’s other claims liability and a workforce reduction charge of $120 million ($79 million after tax). Includes a cumulative $48 effect million of after-tax change in accounting policy for removal costs accrued in accumulated depreciation on certain track structure assets at 2003 January and 1, a fourth-quarter deferred income tax expense of $79 million resulting from the enactment of higher corporate tax rates in the province of Ontario. railroads and and BC LLC’s related holdings Rail (GLT) were acquired and Pro Transportation consolidated forma Great on assumes Lakes 2004 respectively. May that and 10, 2004, the July acquisitions 14, took place on 2003. January 1, a n a d i a n change in accounting policy accounting policy (net of applicable taxes) accounting policy and cumulative effect of change in (1) (2)

C unaudited indicated otherwise unless or data, share per except millions, in $ Operating Operating expenses Operating income Interest expense Income tax expense Income before income taxes Income before Cumulative effect of change in (3) Other income

Operating ratio Basic earnings per share Net income

Diluted earnings per share Revenues

73 CN Investor Fact Book Appendix C

C a n a d i a n N a t i o n a l R a i l w a y C o m p a n y Reconciliation of Non-GAAP Measures 2004 unaudited

$ in millions, except per share data, or unless otherwise indicated

2004

Reported Adjustments Adjusted Pro forma Adjusted 74 adjustments (1) pro forma

2 0 0 5 Revenues $ 6,548 $ – $ 6,548 $ 225 $ 6,773 Operating expenses 4,380 – 4,380 165 4,545 Operating income 2,168 – 2,168 60 2,228

Interest expense (294) – (294) (43) (337) Other loss (20) – (20) 1 (19)

Income before income taxes 1,854 – 1,854 18 1,872 Income tax expense (596) – (596) (4) (600) Net income $ 1,258 $ – $ 1,258 $ 14 $ 1,272 Operating ratio 66.9% 66.9% 67.1% Basic earnings per share $ 4.41 $ 4.41 $ 4.46 Diluted earnings per share $ 4.34 $ 4.34 $ 4.39

(1) GLT and BC Rail were acquired and consolidated on May 10, 2004 and July 14, 2004, respectively. Pro forma assumes that the acquisitions took place on January 1, 2003. There were no adjustments for the first nine months of 2004 and 2005.

– (43) (702) (208) 2005 1,101 $2,011 $1,058 2000 – 2005 2000

flow 8 First nine months (167) (785) 2004 1,531 cas h (2,069) $1,451 $ 754 F ree

(12) (222) (494) 2004 1,531 (2,411) $2,139 $1,025

– 710 (191) (132) 2003 (1,075) $1,976 $ 578 C

– (5) (924) 518 (170) 2002 $1,612 $ 513 Appendix

(133) (702) (150) 1,278 2001 (2,173) $ 443 $1,621

– (3) 389 (981) (136) 2000 $1,506 $ 386 a n y p m (1) o C a i l w a y R n a l o a t i (2) N

Investing Investing activities Dividends paid Change in level of accounts receivable sold Acquisitions Changes in the level of accounts receivable sold under accounts the receivable Company’s securitization program are considered a financing activity. and WC BC and in RailSignificant are GLT 2001, in excluded acquisitions, May asrespectively, and they July are 2004, not indicative of normal day-to-day investments in asset the base. Company’s a n a d i a n

Cash provided from operating activities

C unaudited millions in Less: Cash provided (used) before financing activities Adjustments:

Free Free cash flow (1) (2)

75 CN Investor Fact Book CN’s Executive Council

E. Hunter Harrison

James M. Foote

Ed L. Harris

Claude Mongeau 20 05 76 E. Hunter Harrison President and Chief Executive Officer

E. Hunter Harrison became President With IC and ICRR, Mr. Harrison and Chief Executive Officer of CN on first held the position of Vice-President January 1, 2003. Before assuming and Chief Operating Officer, becoming that position, he had served as CN’s Senior Vice-President – Transportation Executive Vice-President and Chief in 1991, Senior Vice-President – Operating Officer during the previ- Operations in 1992, and President and ous five years. He was appointed to Chief Executive Officer the following the Company’s Board of Directors on year. During his career with Illinois December 6, 1999. Prior to joining Central, he initiated the concept of CN, Mr. Harrison had been President scheduled service for freight shipments, and Chief Executive Officer of the maintaining a sharp focus on opera- Illinois Central Corporation and the tional efficiency and asset utilization. By Illinois Central Railroad Company, as 1996, he had succeeded in driving the well as a director of both IC and railroad’s operating ratio down by some ICRR, from 1993 to 1998. 30 points to the low 60s – the best in Mr. Harrison’s railroad career began the entire North American rail industry. in 1963 when he joined the Frisco As CN’s Executive Vice-President (St. Louis-San Francisco) Railroad as and Chief Operating Officer, he a carman-oiler in Memphis while applied the same philosophy and still attending school. He advanced methods, implementing an aggres- through positions of increasing respon- sive operating plan and refining the sibility in the operations function, first railroad’s scheduled service to pro- with the Frisco, then with Burlington duce industry-leading operating ratio Northern (BN) after BN acquired the and on-time performance results. Frisco in 1980. Before moving to IC Mr. Harrison was named North and ICRR in 1989, he served as BN’s America’s Railroader of the Year by Vice-President – Transportation and Railway Age magazine in 2002. Vice-President – Service Design.

77 CN Investor Fact Book James M. Foote Executive Vice-President Sales and Marketing

James M. Foote was appointed Executive Vice-President, Sales and Marketing in October 2000. He is responsible for the strategic leadership and direction of CN’s Sales and Marketing groups. Mr. Foote joined CN in August 1995 as Vice-President, Investor Relations, to assist the Company’s privatization. He also served as CN’s Vice-President of Merchandise and more recently Senior Vice-President, Sales and Marketing. Prior to joining CN he was Vice-President, Corporate Development, Investor Relations and Tax with the Chicago and North Western Railroad, where he held suc- cessively senior management positions in finance, law, labor relations, corporate communications, and operations. He is a graduate of the University of Wisconsin – Superior, the John Marshall Law School in Chicago, and has a master’s degree in law from the Chicago Kent College of Law. 20 05 78 Ed L. Harris Executive Vice-President Operations

Ed Harris was appointed Executive Vice- President, Operations, in March 2005. He is responsible for the Company’s rail operations in Canada and the United States, and for CN’s network operations center in Edmonton, Alberta. CN’s senior vice-presidents for Eastern Canada, Western Canada and the United States also report to him. Mr. Harris was previously Senior Vice-President, Operations since 2003. Prior to that, he had been Chief Transportation Officer; Vice- President, Midwest Division; and Vice-President, Operations, for Illinois Central, a position he assumed in 1998 after a year’s service as General Manager, Northern Region. From 1994 to 1997, Harris held the same position on IC’s Southern Region. Mr. Harris joined IC in 1968 and held positions of increasing responsibility in communications, materials control, and transportation, and also served as Acting Executive Director, Labor Relations, in 1992. His IC service was interrupted by a four-year tour of duty in the U.S. Marine Corps. Mr. Harris holds a Bachelor of Science degree in management from the University of Illinois at Champaign.

79 CN Investor Fact Book Claude Mongeau Executive Vice-President and Chief Financial Officer

Claude Mongeau became Executive Vice-President and Chief Financial Officer in October 2000. He leads CN’s strategic planning process and is responsible for the overall financial management of the Company. He joined CN in May 1994 and has held the positions of Vice-President, Strategic and Financial Planning, and Assistant Vice-President Corporate Development. He was appointed Senior Vice-President and Chief Financial Officer in October 1999. Prior to joining CN, Mr. Mongeau was a partner with Groupe Secor, a Montreal-based management consulting firm providing strategic advice to large Canadian corporations such as Bombardier and Bell Canada. He also worked in the business development unit of Imasco Inc., a diversified holding company with subsidiaries operating in the manufacturing, retail, and financial services sectors. His career started in Europe with Bain & Company, a leading American consulting firm. In 1997, Claude Mongeau was named one of Canada’s top 40 executives under 40 years of age by the Financial Post Magazine. In 2005, he was selected Canada’s CFO of the Year by an independent committee of prominent Canadian business leaders. 20 05 80 Corporate information

Board of Directors

David G. A. McLean, O.B.C., LL.D. Purdy Crawford, O.C., Q.C., LL.D. V. Maureen Kempston Darkes, Chairman of the Board Counsel O.C., D. Comm., LL.D. Canadian National Railway Company Osler, Hoskin & Harcourt Group Vice-President Chairman and Chief Executive Officer Toronto, ON General Motors Corporation The McLean Group Committees: 1, 3, 6(C), 7, 8 and President Vancouver, BC GM Latin America, J. V. Raymond Cyr, O.C., LL.D. Committees: 3(C), 4, 5, 6, 7, 8 Africa and Middle East Chairman of the Board Miramar, FL E. Hunter Harrison PolyValor Inc. Committees: 2, 5, 7, 8 President and Chief Executive Officer Montreal, QC Canadian National Railway Company Committees: 2, 5(C), 7, 8 Denis Losier Burr Ridge, IL President and Chief Executive Officer Ambassador Gordon D. Giffin Committees: 4(C), 7 Assumption Life Senior Partner Moncton, NB Michael Ralph Armellino McKenna Long & Aldridge Committees: 1, 2(C), 7, 8 Retired Partner Atlanta, GA The Goldman Sachs Group Committees: 2, 5, 6, 7 The Honourable Edward C. Lumley, Fort Lee, NJ P.C., LL.D. James K. Gray, O.C., A.O.E., LL.D. Committees: 1, 2, 7(C), 8 Vice-Chairman Corporate Director and Former BMO Nesbitt Burns A. Charles Baillie LL.D. Chairman and Chief Executive Officer South Lancaster, ON Former Chairman and CEO Canadian Hunter Exploration Ltd. Committees: 2, 5, 6, 7, 8(C) The Toronto-Dominion Bank Calgary, AB Toronto, ON Committees: 3, 5, 6, 7 Robert Pace Committees: 1, 3, 6, 7 President and Chief Executive Officer Edith E. Holiday The Pace Group Hugh J. Bolton, F.C.A. Corporate Director and Trustee Halifax, NS Chairman Former General Counsel Committees: 1(C), 3, 6, 7, 8 EPCOR Utilities Inc. United States Treasury Department Edmonton, AB and Secretary of the Cabinet Committees: 1, 3, 6, 7 The White House Washington, DC Committees: 3, 5, 6, 7, 8

Committees 1. Audit 2. Finance 3. Corporate governance and nominating 4. Donations 5. Environment, safety and security 6. Human resources and compensation 7. Strategic planning 8. Investment (C) Denotes chairman of the committee

81 CN Investor Fact Book Shareholder and investor information

Transfer Agent and Registrar Stock exchanges Computershare Trust Company of CN common shares are listed on Canada the Toronto and New York stock exchanges. Offices in: Montreal, QC; Toronto, ON; Ticker symbols: Calgary, AB; Vancouver, BC CNR (Toronto Stock Exchange) Telephone: 1-800-332-0095 CNI (New York Stock Exchange) Fax: 1-888-453-0330 Investor relations www.computershare.com Robert Noorigian Co-transfer agent and Vice-President, Investor Relations co-registrar Nadeem Velani Computershare Trust Company Manager, Investor Relations of New York 88 Pine Street, 19th Floor Telephone: (514) 399-6175 or Wall Street Plaza 1-800-319-9929 New York, NY 10005 Shareholder services Telephone: (212) 701-7600 or Shareholders having inquiries 1-800-245-7630 concerning their shares or wishing Dividend payment options to obtain information about CN Shareholders wishing to receive should contact: Computershare dividends by Direct Deposit or in Trust Company of Canada U.S. dollars may obtain detailed Shareholder services information by communicating with: 100 University Avenue, 9th Floor Computershare Trust Company Toronto, Ontario M5J 2Y1 of Canada Telephone: 1-800-332-0095 Telephone: 1-800-332-0095 Fax: 1-888-453-0330 Email: [email protected]

Head office Canadian National Railway Company 935 de La Gauchetière Street West Montreal, Quebec H3B 2M9 P.O. Box 8100 Montreal, Quebec H3C 3N4 20 05 82 www.cn.ca design communication

kanaal www.cn.ca