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X Canadian Pacifics_Bid_for_Norfolk Southe D38 A B C fx D F G H J K L M N O P 1 Norfolk Southern Income Statements ($ millions) 3 4 2011 Years Ended December 31 2012 LTM [1] 2013 2014 Sep 2015 5 6 Operating Revenue $11,172 $11,040 $11,245 $11,624 $10,863 7 Operating Expenses 8 Compensation & benefits $2,974 $2,960 $3,002 $2,897 $2,923 9 Materials, services, and other $2,534 $2,463 $2,457 $2,627 $2,713 10 Fuel $1,589 $1,577 $1,613 $1,574 $1,087 11 Depreciation & amortization $862 $916 $916 $951 $1,007 12 Total Operating Expense $7,959 $7,916 $7,988 $8,049 $7,730 13 14 Operating Income $3,213 $3,124 $3,257 $3,575 $3,133 15 Interest expense $455 $495 $525 $545 $532 16 Unusual items $160 $129 $233 $104 $107 17 Profit before tax $2,918 $2,758 $2,965 $3,134 $2,708 18 Income tax expense $1,002 $1,009 $1,055 $1,134 $1,002 19 Net Income $1,916 $1,749 $1,910 $2,000 $1,706 20 21 Per Share Items Basic Earnings per share $5.52 $5.42 Dividends per share $1.66 $1.94 $6.1 $2.04 $6.44 $5.59 $2.22 $2.34 25 Cash Flow Items Capital Expenditures $2,160 $2,241 $1,971 $2,118 $2,516 28 Financial Ratios and Information 29 Revenue Growth Rate [2] 17.4% -1.2% 1.9% 3.4% -6.6% 30 Operating Ratio 71.2% 71.7% 71.0% 69.2% 71.2% 31 Effective Tax Rate 34.3% 36.6% 35.6% 36.2% 37.0% Return on Sales (ROS) 17.2% 15.8% 17.0% 17.2% 15.7% Number of employees 30,329 30,943 30,103 29,482 30,456 UT 38 39 40 48 49 50 51 22222222223523232742444444465262565 0 Saved to my Mac R S T U V W X Y NS INCOME STAT NS BALANCESHEET NS PROJECTIONS CP INCOME STAT CP BALANCESHEET STOCK PRICE + N Share Comments Check for Updates g AA AB AC AD AE AF AG B G + 100% AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View > Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. X Canadian Pacifics_Bid_for_Norfolk Southe K L M N Q21 A B C fx D F H 1 Norfolk Southern Balance Sheets ($ millions) 2 3 4 Years Ended December 31 Sept 2011 2012 2013 2014 2015 5 Assets 6 Cash and ST investments $301 7 Accounts receiveable $1,022 $668 $1,109 $1,561 $1,024 $973 $1,055 $433 $1,103 8 Inventory $209 $216 $223 $236 $288 9 Other current assets $219 $249 $267 $514 $178 10 Total current assets $1,751 11 Net PP&E 12 Investments 13 Other LT Assets $24,469 $2,234 $84 14 Total assets $28,538 $2,242 $25,736 $2,300 $64 $30,342 $324 $32,483 $3,075 $26,645 $27,694 $2,439 $2,679 $49 $33,200 $2,778 $2,002 $28,682 $2,740 $103 $33,527 15 16 Liabilities and stock holders' equity P 0 Saved to my Mac R S T U V W X Y 17 Accounts payable $1,092 18 Short-term debt $100 $1,362 $200 $1,265 $100 $1,233 $100 $1,160 $100 19 Current maturities of LT debt $50 $50 $445 $2 $500 20 Other current liabilities $459 $469 $495 $445 $607 21 Total current liabilities $1,701 $2,081 $2,305 $1,780 $2,367 22 Long-term debt $7,390 $8,432 $8,903 $8,883 $8,896 23 Other liabilities $2,050 $2,237 $1,444 $1,312 $1,295 24 Deferred income taxes $7,486 $7,832 $8,542 $8,817 $8,840 25 Total Liabilities 26 Sharholders equity 27 Total liabilities & equity $18,627 $9,911 $28,538 $20,582 $21,194 $20,792 $21,398 $9,760 $11,289 $12,408 $12,129 $30,342 $32,483 $33,200 $33,527 28 29 Financial Ratios & Other Information 30 Current Ratio 1.03 31 Debt-to-Total Capital 43.2% 1.08 47.1% 1.33 45.6% 1.56 42.0% 0.85 43.9% 32 S&P Long-term Debt Rating BBB+ BBB+ BBB+ BBB+ BBB+ 33 Shares outstanding 330.1 314.5 309.7 307.4 301.4 34 Stock price per share 72.86 61.84 92.83 109.61 76.40 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 NS INCOME STAT NS BALANCESHEET NS PROJECTIONS CP INCOME STAT CP BALANCESHEET STOCK PRICE + N B AA AB Share Comments Check for Updates AC AD AE AF AG B G I + 100% AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Q20 A B C fx D F 1 Canadian Pacific Railway Income Statements ($ millions) X Canadian Pacifics_Bid_for_Norfolk Southe Saved to my Mac G H J K L M N O P Q R S T U V W X Y N Share Comments Check for Updates g AA AB AC AD AE AF AG 3 4 2011 Years Ended December 31 2012 LTM [1] 2013 2014 Sep 2015 5 6 Operating Revenue $5,092 $5,714 $5,773 $5,716 $5,434 7 Operating Expenses 8 Compensation & benefits $1,403 $1,479 $1,297 $1,164 $1,079 9 Materials, services, and other $1,304 $1,421 $1,253 $1,151 $1,125 10 Fuel $952 $1,002 $945 $905 $643 11 Depreciation & amortization $482 12 Total Operating Expense $4,141 $541 $4,443 $532 $477 $463 $4,027 $3,697 $3,310 13 14 Operating Income $951 $1,271 $1,746 $2,020 $2,124 15 Interest expense $248 $277 16 Unusual items ($18) ($356) $262 ($426) $244 $274 ($16) ($141) 17 Profit before tax $686 $638 $1,059 $1,760 $1,708 18 Income tax expense $125 $153 $235 19 Net Income $561 $485 $824 $485 $1,274 $512 $1,196 20 21 Per Share Items 22 Basic Earnings per share $3.31 $2.83 $4.71 $7.37 $7.27 23 Dividends per share $1.15 $1.35 $1.32 $1.21 $1.12 24 25 Cash Flow Items 26 Capital Expenditures $1,086 $1,152 $1,163 $1,251 $1,210 27 28 Financial Ratios and Information 29 Revenue Growth Rate [2] 1.7% 12.2% 1.0% -1.0% -8.7% 30 Operating Ratio 81.3% 77.8% 69.8% 64.7% 60.9% 31 Effective Tax Rate 18.2% 23.9% 22.2% 27.6% 30.0% 32 Return on Sales (ROS) 11.0% 8.5% 14.3% 22.3% 22.0% 33 Number of employees 14,169 14,594 14,977 14,698 14,698 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 NS INCOME STAT NS BALANCESHEET NS PROJECTIONS CP INCOME STAT CP BALANCESHEET STOCK PRICE + B G + 100% AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View > Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. D39 A B C fx D F X Canadian Pacifics_Bid_for_Norfolk Southe G H | J K L M N O P 1 Canadian Pacific Railway Balance Sheet ($ millions) 2 3 Years Ended December 31 Sept 4 2011 2012 2013 2014 2015 5 Assets 6 Cash and ST investments $46 $334 $448 $195 $493 7 Accounts receiveable $510 $548 $546 $606 $539 8 Inventory $136 $136 $155 $153 $130 9 Other current assets $151 $315 $761 $100 $110 10 Total current assets $842 $1,333 $1,910 $1,054 $1,273 11 Net PP&E $12,544 12 Investments $164 13 Other LT Assets $330 14 Total assets $13,880 $13,055 $83 $303 $14,775 $12,545 $87 $1,483 $16,024 $12,467 $97 $673 $14,291 $11,766 $107 $612 $13,759 15 17 16 Liabilities and stock holders' equity Accounts payable 0.0% 0.0% 0.0% 0.0% 0.0% $381 $322 $337 $351 $271 18 Short-term debt $27 $0 $0 $0 $0 19 Current maturities of LT debt $49 $54 $178 $116 $22 28 48 49 222222222205233~230124444444622756 38 39 Other current liabilities $733 $858 $782 $752 $914 Total current liabilities $1,190 $1,234 $1,297 $1,218 $1,206 Long-term debt $4,618 $4,651 $4,377 $4,857 $6,456 Other liabilities $1,709 $1,677 $937 $1,025 $826 Deferred income taxes $1,789 $2,099 $2,733 $2,346 $2,291 Total Liabilities $9,307 $9,661 $9,343 $9,447 $10,779 Sharholders equity $4,573 $5,114 $6,680 $4,844 $2,980 Total liabilities & equity $13,880 $14,775 $16,024 $14,291 $13,759 29 Financial Ratios & Other Information Current Ratio 0.71 Debt-to-Total Capital 50.7% 1.08 47.9% 1.47 40.5% 0.87 50.7% 1.06 68.5% S&P Long-term Debt Rating BBB- Shares outstanding 170.4 Stock price per share 67.67 BBB- 174.2 101.62 BBB- BBB+ BBB+ 175.2 151.32 171.0 192.69 161.0 143.57 0 Saved to my Mac R S T U V W X Y N Share Comments Check for Updates g AA AB AC AD AE AF AG NS INCOME STAT NS BALANCESHEET NS PROJECTIONS CP INCOME STAT CP BALANCESHEET STOCK PRICE + B G I + 100%