Mr. Keith Creel reports

CPKC TO OUTLINE UNIQUE ADVANTAGES OF COMBINED NETWORK AND GROWTH OUTLOOK AT 2023 INVESTOR DAY; PROVIDES MULTI-YEAR GUIDANCE

Canadian Pacific Kansas City Ltd. has issued a new multiyear guidance and unveiled the next chapter in its long-term growth strategy as the only single-line railway that connects a continent.

Strategy to execute on the advantages of the new combined network

At Investor Day, hosted at Union Station in Kansas City, members of CPKC's industry-leading senior executive team will share how CPKC is primed to execute on the advantages of the new combined North American network to drive multi-year, long-term profitable growth, bring increased environmental benefits and deliver superior service and financial results.

"This historic combination will transform the industry and has CPKC well-positioned to drive growth for the next half decade and beyond," said Keith Creel, CPKC President and Chief Executive Officer. "Our unrivaled single-line service connecting Canada, the United States and Mexico provides CPKC a unique advantage allowing us to deliver a differentiated growth profile. Together we expect to unlock more value for customers, employees, and shareholders while benefitting the environment."

Financial targets over the period of 2024-2028:

Revenue compound annual growth rate (CAGR) of high-single digits

Core adjusted diluted earnings per share (EPS) 1 CAGR of double-digits

Continued margin improvement through cost control and operating leverage

Capital expenditures of approximately $2.6 billion to $2.8 billion per year

Free cash1 conversion of Core adjusted income1 of approximately 90%

Return to double-digit Adjusted Return on Invested Capital (Adj. ROIC)1

"Our success will continue to be driven by our deep bench of industry-leading railroaders, a disciplined approach to capital investment, and a focus on safety and sustainable growth, all further empowered by this new network," said Creel. "We remain committed to the foundations of precision scheduled railroading across all aspects of CPKC with the rigor the operating model demands for long-term success."

Key assumptions for 2024-2028 targets

Exchange rate of 1.35 CAD/USD

On-Highway Diesel price of $4.15 USD/US gallon

Other components of net periodic benefit recovery of $330 million to $370 million

Annualized adjusted effective tax rate of approximately 25.5%1, excluding discrete items such as any effects of changes in tax rates

CPKC issues 2023 guidance

As part of its Investor Day, CPKC also issued 2023 guidance. CPKC expects core adjusted diluted EPS1 to grow mid-single digits versus 2022 core adjusted diluted EPS1 of $3.77. CPKC's reported diluted EPS was also $3.77 in 2022.

Webcast

CPKC will webcast presentations from today's Investor Day session starting with opening remarks at 7:45 a.m. CDT. We encourage you to access the webcast and presentation material at www.cpkcinvestorday.com. Presentation material will be available on the website prior to the event.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and Mexico, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of Mexico to Lazaro Cardenas, Mexico. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC.

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