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