31 October 2017 Railroads Canadian Rails irreversible structural advantage over CP. We do not think this is the case. and expect CNI's multiple to revert closer to its historical 10-year average of 15.5x. i -Figure 122: CNI trades well above its historical fwd. PIE 11x rs 1:12 03 TM OS 06 91 OS 99 10 '11 '11 13 'Le IS 16 17 Pr. P/C Sas. tearer Figure 123: CNI trades inline with its U.S. peers but nearly 10% above CP 24x 22x 20x 18x 16x 14x 12x 10x '14 '15 '16 '17 U.S. Class l's '12 '13 --CP Sewc• Dram.* Sent haSsig On an EV/EBITDA basis, CNI currently trades at 12.2x our NTM EBITDA estimate. This represents a significant premium to the company's five year historical average. I Figure 124: CNI's historical EV/EBITDA trends 13.5x 1 13.0x 1 12.5x 4 12.0x 11.5x / 11.0x 4 to.sx 10.0x 9.5x 9.0x 8.5x 8.0x 3 3 3 3 re In la b 10 P ea .6 a. no a .6 4. is 4. 6 a. A 4 Z ..- 2 .1 0 41 ele 0 s' 0 ee 0 . i 4 2 ,6 2 42 u- 2 < cy EV/EBITDA — — —5-Yr. Avg. San DeurscAt &int former Page 66 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0064336 CONFIDENTIAL SDNY_GM_00210520 EFTA01371129