Canadian National Railway : Investor Fact Book - 2022

POWERING

SUSTAINABLE GROWTH

2022 INVESTOR FACT BOOK UPDATE

FORWARD-LOOKING STATEMENTS

Certain statements included in the CN 2022 Investor Fact Book Update constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including 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.

Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and geopolitical conflicts and tensions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings or other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to Management's Discussion and Analysis in CN's annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN's website, for a description of major risk factors relating to CN.

POWERING

SUSTAINABLE GROWTH

CN is a world-class transportation leader and trade enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports about 300 million tonnes of natural resources, manufactured products, and finished goods throughout North America every year. CN's advantaged 18,600-mile(1) rail network, which connects Canada's eastern and western coasts with the southern coast of the

U.S., efficiently meets customers' needs and drives enduring profitable growth. CN is committed to programs supporting social responsibility and

environmental stewardship.

Contents

OVERVIEW

02 Delivering Value

For Our Shareholders

04 Key Advantages and Core Strengths

06 Message from the President and CEO

08 Financial and Operating Measures

MARKETS

10 Market Overview

1. Petroleum and Chemicals

1. Metals and Minerals

1. Forest Products

1. Coal

1. Grain and Fertilizers

1. Intermodal

1. Automotive

FINANCIALS

1. Quarterly Consolidated Statements of Income
2. Quarterly Consolidated Balance Sheets
3. Quarterly Consolidated Statements of Cash Flows

30 Quarterly Financial and Statistical Data

32 Non-GAAP Measures

40 Shareholder and Investor Information

Forward-looking statements reflect information as at the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward- looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward- looking statement.

As used herein, "Company" or "CN" refers to Canadian National Railway Company and, as the context requires, its wholly owned subsidiaries.

PICTURED ABOVE: Nathalie Bergeron, Locomotive Engineer, Montreal, QC ON THE COVER: Henry House, AB (photo by CN employee Tim Stevens)

1. 18,600 route miles reflects the Q1 2022 sale of non-core lines in Wisconsin, Michigan, and Ontario.

Except where otherwise indicated, all financial information reflected in this document is expressed in Canadian dollars and determined on the basis of United States generally accepted accounting principles (GAAP).

01

Overview

DELIVERING VALUE

FOR OUR SHAREHOLDERS

2021 highlights

TOTAL REVENUES	DILUTED EARNINGS	ADJUSTED DILUTED EARNINGS
	PER SHARE (1)	PER SHARE (1)(2)
$14.5B	$6.90	$5.95
FREE CASH FLOW  (2)	OPERATING RATIO (3)	ADJUSTED ROIC  (2)
$3.3B	61.2%	14.1%

88%

TOTAL SHAREHOLDER RETURN SINCE JANUARY 2017

CN's share price on the TSX (CNR) has increased at a compound annual growth rate (CAGR) of 18.2% since our initial public offering (IPO) in 1995.

CN'S STOCK PERFORMANCE

(Index: Closing price on December 3•, 20•6 = •00)

ƒƒ-	CNR (TSX)
ƒ€€	CNI (NYSE)
S&P 500
•'-
TSX
•-€
•ƒ-
•€€
'-					Source: FactSet
-€
	ƒ€•'	ƒ€•"	ƒ€•…	ƒ€ƒ€	ƒ€ƒ•

SHAREHOLDER DISTRIBUTION

($ millions)
pShare repurchases	pDividends

$15B

RETURNED TO SHAREHOLDERS OVER THE LAST FIVE YEARS

26 consecutive years of dividend growth (15% CAGR

in dividend rate), with a 19% increase approved for 2022. CN suspended its share buyback program in 2020 (pandemic) and part of 2021 (proposed combination with Kansas City Southern - KCS); CN's current normal course issuer bid is in the range of $5B for up to 42M shares.

1. In the first quarter of 2022, the Company changed its method of calculating market-related values of pension assets for its defined benefit plans using a retrospective approach. See the Company's selected financial information restated for change in accounting policy filed on September 9, 2022, which may be found online on SEDAR at www.sedar.com, on the SEC's website at www.sec.gov through EDGAR, and on the Company's website at www.cn.ca in the Investors section, for additional information.
2. These non-GAAP measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other companies. See section entitled Non-GAAP Measures for an explanation of these non-GAAP measures.
3. Operating ratio is defined as operating expenses as a percentage of revenues.

02 CN  |2022 INVESTOR FACT BOOK UPDATE

Ferland, ON

Photo by CN employee Chris Wilson

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Overview

2021 key statistics(1)

KEY ADVANTAGES

AND CORE STRENGTHS

OPERATIONAL EXCELLENCE EVERY DAY

CN is an operational and sustainability leader and an engine of North American economic growth and prosperity. We deliver reliable, efficient and cost-effective transportation services with a continuous

focus on service, productivity and safety. CN facilitates end-to-end

supply chains to unlock long-term, profitable growth and deliver

sustainable transportation services for our customers.

Hay River

Fort Nelson

Prince Rupert

Fort McMurray

Prince George

Edmonton

Kamloops

19,500 $14.5B

ROUTE MILESREVENUES

$2.9B	22,600
CAPITAL INVESTMENTS	EMPLOYEES (end of period)

(1) As at or for the year ending December 31, 2021

Saskatoon

Sept-Îles

Baie-Comeau

Matane

Advantaged network	Strong balance sheet
with three-coast access	that provides financial flexibility

Vancouver

Calgary

Regina	Winnipeg	Moncton
	Thunder Bay

CN spans the continent, reaching from coast to coast to coast. The network was built through key acquisitions across Canada and in the U.S., including our fluidity advantage around Chicago.

CN's unique footprint provides optionality that is of increasing importance to our customers in a world of emerging and shifting trade patterns.

Scheduled railroad with a focus on velocity

As the industry pioneers in scheduled railroading, CN's focus on car velocity benefits customers and shareholders alike. Running a scheduled railroad allows us to unlock additional capacity, while identifying key corridors for further capacity investment.

CN is committed to long-term sustainable value for our shareholders. Our first use of cash is investing in our business to sustain and strengthen our network, ensure safety and fluidity, and enable growth. CN also returns value to shareholders through dividend payments and share repurchases.

Building for a sustainable future

Delivering Responsibly is at the heart of how CN operates. It means moving customer goods safely and efficiently, being environmentally responsible, attracting and developing the best railroaders, helping build safer, stronger communities, while adhering to the highest ethical standards.

LEGEND

CN main lines

Secondary and feeder lines Shortline partners

Ports served by CN

					Quebec	Halifax
			Sault		Montreal	Saint John
			Ste. Marie
	Duluth					Auburn
		Stevens
	Chippewa Falls	Point	Green	Toronto
Minneapolis/St. Paul
	Bay		Syracuse	Worcester
	Arcadia	Fond
	Sarnia	Buffalo
		du Lac			New London
		Detroit
				Conneaut
Sioux City
		Joliet	Toledo
				Pittsburgh
Omaha	East Peoria
	Springfield
	East St. Louis

		Waukegan
	Leithton	FASTEST
Memphis
ILLINOIS	RAIL ROUTE IN
	AND AROUND
		CHICAGO

Broad geographic exposure	Balanced and diverse portfolio
REVENUES BY GEOGRAPHIC FLOW	REVENUES BY COMMODITY GROUP
(% of freight revenues)	(% of total revenues)
p % Overseas	p% Intermodal
p % Transborder	p% Petroleum and chemicals
p8% Canadian domestic	p% Grain and fertilizers
p % U.S. domestic	p% Forest products
	p% Metals and minerals
	p % Automotive
	p% Coal
	p % Other revenues

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		Munger
Jackson	West Chicago	Chicago

Mobile				South Chicago
Baton Rouge
Pascagoula				Gary
Gulfport	Chicago		Markam
New Orleans	Outer Belt		Matteson
		Griffith
	(CN)	Joliet
			Chicago
				Heights

Goose Lake

INDIANA

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Overview

MESSAGE FROM

THE PRESIDENT AND CEO

''This team, operating on the best rail network in North America and powered by innovation, collaboration and diversity of thought, is positioned to deliver strong and sustainable value... now and over the long term.

This is an exciting time for CN, and I am honoured to step into the role of President and CEO. I am delighted to be back in the industry. It truly feels like coming home.

Leading CN, one of North America's iconic companies, comes with both the privilege and responsibility of ensuring the continent's supply chains deliver consistently, safely and responsibly. CN's focus on our employees, customers, the communities in which we operate, our partners and our shareholders will remain our priority over the long term. We succeed together.

This is a transformational period at CN. Our goal - to build the railway of the future - is an expression of our intent to continuously innovate - in safety, in efficiency, in sustainability, in engagement. This is how we will deliver for the future.

Powering sustainable growth

The past two years have presented some significant challenges in North America and around the globe.

The impact of the pandemic, the effects of climate change, and the uncertainty of global security have challenged our sense of safety and order and impacted the reliability of our supply chains.

As an important enabler of domestic freight movement and global trade links, it has never been more important for CN to deliver. We are uniquely positioned to power sustainable growth. We have North America's best network, spanning Canada from the Atlantic to the Pacific and through the American heartland to the Gulf of Mexico.

We also have a team of experienced and motivated railroaders to propel operational excellence, every day.

North America's economy relies on our ability to safely deliver the essential products our customers need. More than ever, our continent's resources, agricultural products and manufactured goods are needed around the world. CN has the connections and know-how to drive the continued growth of our customers and success of our team. And we can do it in a manner that continues to advance the efficiency of our operations.

Delivering responsibly

CN believes in Delivering Responsibly. This means moving our customers' goods safely and efficiently, and ensuring we deliver in an environmentally responsible manner; attracting, developing, and retaining top diverse talent; helping to make the communities we serve safer and stronger; and adhering to the highest ethical standards. This is what we believe, and it is the way we approach our work every day.

The heart of CN is the more than 22,000 skilled and dedicated railroaders who come to work to deliver for our customers.

I am proud of the perseverance and resilience of our team, who power our performance and growth, and who increasingly represent the diversity of the communities we serve. We are welcoming the next generation of railroaders to our Company.

They are helping us in our efforts to innovate, to continuously improve the safety of our employees and communities, to lighten our environmental footprint, to further engage with our Indigenous and community partners, and to develop the capabilities of our team. The future of railroading at CN is very bright.

Let's go!

This team, operating on the best rail network in North America and powered by innovation, collaboration and diversity of thought, is positioned to deliver strong and sustainable value for our customers, our partners, our communities and our shareholders, now and over the long term. We will make CN the safest and the best railroad in North America, and we will continue to build the railway of the future.

Tracy Robinson

President and Chief Executive Officer

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