ith Creel was largely responsible for overseeing sales and marketing at CP. At the same time, however, Creel was acting COO and being groomed to be Hunter Harrison's replacement. Combined with the major task of turning around North America's least profitable railroad, its easy to see how marketing/sales efforts

ngth of haul needs and # of touch points need to be considered, which we discuss later), higher yields do translate to higher fixed cost leverage. Hunter Harrison's Precision Railroading model has helped CP and CN1 achieve beau in-class operating ratios. Deutsche Bank Securities Inc Page 15 CONFIDENTIAL - PU

mpany expanded its network through a number of acquisitions, generated best-in-class volume growth, and removed costs through the implementation of Hunter Harrison's Precision Railroading model. { Figure 73: The rails solidly outperformed the S&P 500 from 2000-2008 with CNI leading the way 700 600 SOO OX 30

GR on just 3.1% revenue CAGR as the company was able to reduce its operating ratio by nearly 1,700bps. The majority of this improvement came during Hunter Harrison's tenure as CEO (see figure below) when the operating ratio improved 1,600bps from 2012-2016. Harrison's Precision Railroading model helped transform