CN (CNI) Outlines Three-year Financial Perspective

Today, CN’s (TSX: CNR) (NYSE: CNI) executive team will meet with the investment community in Chicago to present the Company’s strategic agenda focused on accelerating sustainable, profitable growth.

“We are confident in what the future holds for CN. The path to sustainable and profitable growth is clear. We have the proven record of our operating model combined with our integrated approach and the right people to see it through. The future of railroading is here, and it starts now.”

— Tracy Robinson, President and Chief Executive Officer, CN

Key CN executives will present at the event. Their presentations will focus on safety, how they will maintain discipline in executing CN’s scheduled operating plan, how they plan to capture emerging opportunities by selling into the plan, as well as how they intend to use technology to drive incremental efficiencies and make it easier for customers to do business with CN.

2023 financial outlook (1)CN still aims to deliver adjusted diluted earnings per share (EPS) growth in the mid single digits over 2022 (2).

2024-2026 financial perspective (1) CN is targeting to deliver 10%-15% diluted EPS growth over the next 3 years by growing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency.

(1) Forward-looking statementsCertain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, relating, but not limited to, statements with respect to CN’s 2023 financial outlook and three-year financial perspective and the related key assumptions. This forward-looking information also includes but is not limited to statements based on management’s assessment and assumptions and publicly available information with respect to CN. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes”, “expects”, “anticipates”, “assumes”, “outlook”, “plans”, “targets” or other similar words.

2023 key assumptionsCN has made a number of economic and market assumptions in preparing its 2023 outlook. The Company continues to assume negative North American industrial production in 2023. For the 2022/2023 crop year, the grain crop in Canada was above its three-year average (or in line when excluding the significantly lower 2021/2022 crop year) and the U.S. grain crop was in line with its three-year average. The Company continues to assume that the 2023/2024 grain crops in Canada and the U.S. will be in line with their respective three-year averages (excluding the significantly lower 2021/2022 crop year in Canada). CN assumes continued pricing above rail inflation upon contract renewals. CN assumes that in 2023, the value of the Canadian dollar in U.S. currency will be approximately $0.75, and now assumes the average price of crude oil (West Texas Intermediate) will be approximately US$80 per barrel (compared to its January 24, 2023 assumption of being in the approximately US$75 - US$80 range per barrel).

2024-2026 key assumptionsCN has made a number of economic and market assumptions in preparing its three-year financial perspective. CN assumes that the North American industrial production will increase by approximately two percent annually over the next three years. CN assumes continued pricing above rail inflation. CN assumes that the value of the Canadian dollar in U.S. currency will be approximately $0.75 and that the average price of crude oil (West Texas Intermediate) will be approximately US$80 per barrel during this period.

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