Gurpreet Khaira Assistant Vice President, Sales & Marketing ECP

v

Rail is the Backbone of the Economy

Safety is Paramount

Global 38%

• Asia 33%

• Europe 5%

Cross-Border 31%

• Canada to U.S. 22%

• U.S. to Canada 8%

• Mexico 1%

Domestic 31%

• Intra-Canada 16%

• Intra-U.S. 15%

Since 2000

Train accident rate is down 44%

Derailment rate is down 44%

Track-caused accident rate is down 53%

Equipment-cased accident rate is down 34%

Source: Class 1 Railway Industry Stats: AAR, Calculated per million train miles using March 2017 FRA data

Class 1 Rail Carloads Demonstrate the Trend

Source: Class 1 Railway Industry Stats: AAR Carload data 2013-2016

However, the Trend is Turning

Global 38%

• Asia 33%

• Europe 5%

Cross-Border 31%

• Canada to U.S. 22%

• U.S. to Canada 8%

• Mexico 1%

Domestic 31%

• Intra-Canada 16%

• Intra-U.S. 15%

In 2017

Q1, carloads totaled 9.6 million

In the last 6 weeks, 4.4 million

At the current run rate, there will be a strong growth over

2016

Source: Class 1 Railway Industry Stats: AAR Carload data 2013-2016

v

Carload Trend

Energy Petroleum

Products Fac Sand

Drilling

Chemicals

Construction

Infrastructure

Cement &

Aggregates Steel & Rebar Lumber & Panel

Manufacturing

Economy Steel & Metals

Industrial

Chemicals

Packaging

Materials

Commodities Coal Fertilizers Concentrates

Strong Franchise with a Diversified Book

Bulk

Merchandise

Intermodal

% OF 2016

FREIGHT

REVENUE

Financial Performance

4.34

6.42

8.50

10.10 10.29

2012 2013 2014 2015 2016

Adjusted Diluted Earnings Per Share(1) ($)

77.0 69.9

64.7 61.0 58.6

2012 2013 2014 2015 2016

Adjusted Operation Ratio(1)

(percentage)

5,695

6,133

6,620 6,712

6,232

2012 2013 2014 2015 2016

Revenues ($ millions)

316

774 969

1,381

1,007

2012 2013 2014 2015 2016

Free Cash(1) ($ millions)

9% growth 1,840 bps improvement

137% improvement ~$700M improvement

(1) For a full description and reconciliation of Non-GAAP measures see CP’s Form 10-K on www.cpr.ca

18.0 18.4 18.0

21.4

23.5

2012 2013 2014 2015 2016

Network Speed (miles per hour)

1.150

1.060 1.035

0.999 0.980

2012 2013 2014 2015 2016

Gallons of Locomotive Fuel

Consumed (gallons/1000 GTMs)

15% improvement

Operating Model Performance

31% improvement

5,981

6,530 6,682

6,935

7,217

2012 2013 2014 2015 2016

Train Length (feet)

21% improvement

Greater efficiency

Better asset

utilization

Sustainable model

7.5

7.1

8.7

7.2

6.7

2012 2013 2014 2015 2016

Terminal Dwell (hours)

11% improvement

Capital Investment

1,236

1,449 1,522

1,182 1,250

2013 2014 2015 2016 2017E

Capital Expenditures ($ millions)

$1.25B 66%

10%

13%

3% 4% 4%

2017E Capital Investment Breakdown

Basic Replacement

NetworkEnhancementsRolling Stock

InformationTechnologyPTC

Other

v

CP Commitment

Scheduled Precision Railroad

Operating Excellence

Growth at Low

Incremental Cost

Minimal Dwell

Safety

Continuous

investment

Reliable Delivery

Customer

Satisfaction

Fewer Handling

Points

Low Cost

Next…

• Investing in the network

• Improving throughput and capacity

• Continued productivity gains, lower cost

• Better service offering

• Accelerated growth

Velocity

Growth

Capacity

Productivity

Service

Thank you