Kansas City Southern — Merger or Acquisition (August 2021)
12 slides from Kansas City Southern's merger presentation, Aug 27, 2021
Slide 1: Benefits for TEGMA Members of the CN-KCS Combination
1 Benefits for TEGMA Members of the CN -KCS Combination Patrick Ottensmeyer President and CEO, KCS James Cairns Senior Vice President, Rail Centric Supply Chain, CN TEGMA | Augus t 27, 2021 Filed by Kansas City Southern Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements included in this presentation 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
Slide 3: Additional Information
Additional Information 3 No Offer or Solicitation This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitatio n of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation o
Slide 4: CN & KCS: Safer. Faster. Cleaner. Stronger.
4 CN & KCS: Safer. Faster. Cleaner. Stronger. Creating the Premier USMCA Rail Network with Unique Benefits Preserve all major existing gateways & create new single-line routes Specific supply chain benefits Significant environmental benefits Support across broad stakeholder network We are
Slide 5: CN & KCS: Creating the Premier Railway for the 21st Century
5 CN & KCS: Creating the Premier Railway for the 21st Century The CN-KCS combination will create significant value and enhance competition The KCS Board unanimously determined that the CN-KCS combination remains superior to CP’s latest bid and recommends shareholders to vote “FOR” the proposed tra
Slide 6: Transaction timeline and regulatory milestones
6 MAY 21st MAY 26th JULY 6th JULY 7th SEPTEMBER 3RD EXPECTED H2 2021 EXPECTED H2 2022 AFTER FULL STB APPROVAL With 1,750+ statements of support received, customers across all industries will benefit from the end-to-end CN-KCS combination that will expand North American trade and power economic prosp
Slide 7: Combination is Pro-Competitive and Aligned with Biden Executive Order
7 Combination is Pro -Competitive and Aligned with Biden Executive Order CN-KCS will create a more competitive marketplace, provide new options for customers and deliver compelling benefits for ports, employees and communities Pro-competitive deal will deliver more choices to cus tomers through th
Slide 8: Speed, Choice, Reach, Cost: customer benefits
1. Speed: New direct service means fewer handoffs and faster transit. Less equipment costs and more capacity. 2. Choice: Our combination will provide customers with more routing options. All existing major gateways stay open – we want to encourage growth. 3. Reach: Many customers will have new direc
Slide 9: Connected Continent: Increased Optionality and Reach for Customers
9 Connected Continent Increased Optionality and Reach for Customers • More diversified product origination options over a larger geography for cus tomers buying and s elling grain and proces s ed grain products for domes tic and export markets • New direct access for customers in MO, KS, NEto grain
Slide 10: Real world examples: CN-KCS is a pro-competitive combination
10 Customer Type Origin Destination Bottleneck Segment Example R11 Pricing Gateway DDGS Mona, IA (CN/ CP) Morton, MS (KCS) KC - Morton Kans as City Soymeal Cedar Rapids , IA (various including UP) Lake, MS (KCS) Shreveport - Lake Shreveport Ethanol Mona, IA (CN/ CP) Port Arthur, TX (KCS) KC – Port A
Slide 11: CN-KCS is Good For Customers
CN-KCS is Good For Customers 11More Service, More Options, More Choice, Lower Price Open gateways Rule 11 Pricing Bottleneck Dispute Resolution End to end merger with clear pro- competitive enhancements and explicit commitments New Rules = EnhancedCompetition Commercial & Phys ical Price Trans paren
Slide 12: Thank you
| Thank you
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