Canadian Pacific Kansas City : Q1 2024 Earnings Review

Q1 2024 EARNINGS REVIEW

April 24, 2024

FORWARD-LOOKING STATEMENTS

This investor presentation may contain certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, targets, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "targets", "plan", "will", "outlook", "guidance", "should" or similar words suggesting future outcomes. This presentation contains forward-looking information relating, but not limited to statements concerning financial targets for 2024-2028 and our ability to deliver on financial guidance for 2024, including estimated growth and capital expenditures, the success of our business, the realization of anticipated benefits and synergies of the Canadian Pacific Railway Limited ("CP")-Kansas City Southern ("KCS") transaction and the timing thereof, and the opportunities arising therefrom, our operations, priorities and plans, including sustainability-related targets and plans, anticipated financial and operational performance, business prospects and demand for our services and growth opportunities. The forward-looking information that may be in this presentation is based on current expectations, estimates, projections and assumptions, having regard to Canadian Pacific Kansas City Limited's ("CPKC's" or the "Company's") experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to: changes in business strategies, North American and global economic growth and conditions; commodity demand growth; sustainable industrial and agricultural production; commodity prices and interest rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; geopolitical conditions, applicable laws, regulations and government policies; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to CPKC; and carbon markets, evolving sustainability strategies, and scientific or technological developments. Although CPKC believes the expectations, estimates, projections and assumptions reflected in the forward-looking information presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. By its nature, CPKC's forward-looking information involves inherent risks and uncertainties that could cause actual results to differ materially from the forward looking information, including, but not limited to, the following factors: changes in business strategies and strategic opportunities; general Canadian, U.S., Mexican and global social, economic, political, credit and business conditions; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and maritime shippers in Canada, the U.S. and Mexico; North American and global economic growth and conditions; industry capacity; shifts in market demand; changes in commodity prices and commodity demand; uncertainty surrounding timing and volumes of commodities being shipped via CPKC; inflation; geopolitical instability; changes in laws, regulations and government policies, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; disruption in fuel supplies; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labour disputes; changes in labour costs and labour difficulties; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; sufficiency of budgeted capital expenditures in carrying out business plans; services and infrastructure; the satisfaction by third parties of their obligations; currency and interest rate fluctuations; exchange rates; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; trade restrictions or other changes to international trade arrangements; the effects of current and future multinational trade agreements on the level of trade among Canada, the U.S. and Mexico; climate change and the market and regulatory responses to climate change; anticipated in-service dates; success of hedging activities; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de México, S.A. de C.V.'s Concession; public opinion; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; insurance coverage limitations; material adverse changes in economic and industry conditions, including the availability of short and long-term financing; the demand environment for logistics requirements and energy prices, restrictions imposed by public health authorities or governments, fiscal and monetary policy responses by governments and financial institutions, and disruptions to global supply chains; the realization of anticipated benefits and synergies of the CP-KCS transaction and the timing thereof; the satisfaction of the conditions imposed by the U.S. Surface Transportation Board in its March 15, 2023 decision; the success of integration plans for KCS; the focus of management time and attention on the CP-KCS transaction and other disruptions arising from the CP-KCS integration; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; improvement in data collection and measuring systems; industry-driven changes to methodologies; and the ability of the management of CPKC to execute key priorities, including those in connection with the CP-KCS transaction. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CPKC's annual and interim reports on Form 10-K and 10-Q. Any forward-looking information contained in this presentation is made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.

BASIS OF PRESENTATION & NON-GAAP MEASURES

BASIS OF PRESENTATION

Except where noted, all figures are in millions of Canadian dollars.

Financial information is prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), unless otherwise noted.

Financial and operating results described in this presentation, unless the context indicates otherwise, represent the financial and operating results of CP for the period from April 1, 2023, through April 13, 2023, during which time KCS was held in voting trust and accounted for as an equity investment under the equity method of accounting, and the financial and operating results of CPKC for the period beginning on April 14, 2023, and ending on December 31, 2023.

NON-GAAP MEASURES

CPKC presents Non-GAAP measures, including Core adjusted combined operating ratio, Core adjusted combined diluted earnings per share (EPS), Core adjusted combined operating income, Adjusted combined free cash and Adjusted combined net debt to adjusted combined Earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio, to provide an additional basis for evaluating underlying earnings and liquidity trends in CPKC's current periods' financial results that can be compared with the results of operations in prior periods and facilitate a multi-period assessment of long-term profitability.

These Non-GAAP measures have no standardized meaning and are not defined by U.S. GAAP and, therefore, may not be comparable to similar measures presented by other companies. The presentation of these Non-GAAP measures is not intended to be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with U.S. GAAP.

Although CPKC has provided forward-lookingNon-GAAP measures (Core adjusted combined diluted EPS and Adjusted combined net debt to adjusted combined EBITDA) management is unable to reconcile, without unreasonable efforts, the forward-looking Core adjusted combined diluted EPS to the most comparable U.S. GAAP measure, due to unknown variables and uncertainty related to future results. These unknown variables and uncertainty may include unpredictable transactions of significant value. In recent years, the Company has recognized acquisition-related costs, adjustments to provisions and settlements of Mexican taxes, KCS' gain on unwinding of interest rate hedges (net of CP-associated purchase accounting basis differences and tax), loss on derecognition of CPKC's previously held equity method investment in KCS, discrete tax items, changes in the outside basis tax difference between the carrying amount of the Company's equity investment in KCS and its tax basis of the investment, changes in income tax rates, and changes to an uncertain tax item. Acquisition-related costs include legal, consulting, financing fees, integration costs including third-party services and system migration, debt exchange transaction costs, community investments, fair value gain or loss on foreign exchange ("FX") forward contracts and interest rate hedges, FX gain on U.S. dollar-denominated cash on hand from the issuances of long-term debt to fund the KCS acquisition, restructuring, employee retention and synergy incentive costs, and transaction and integration costs incurred by KCS which were recognized within Equity earnings of KCS in the Company's Consolidated Statements of Income. KCS has also recognized FX gains and losses. These items may not be non-recurring, and may include items that are settled in cash. Specifically, due to the magnitude of the acquisition, its significant impact to the Company's business and complexity of integrating the acquired business and operations, the Company expects to incur the acquisition-related costs beyond the year of acquisition. These or other similar, large unforeseen transactions affect diluted EPS but may be excluded from CPKC's Core adjusted combined diluted EPS and adjusted combined EBITDA. Additionally, the Canadian-to-U.S. dollar and Mexican peso-to-U.S. dollar exchange rates are unpredictable and can have a significant impact on CPKC's reported results but

may be excluded from CPKC's Core adjusted combined diluted EPS and adjusted combined EBITDA.

For further information regarding Non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see the Non-GAAP Measures supplement to the Q1 2024 Earnings Release on our website at investor.cpkcr.com and on SEDAR+ at www.sedarplus.caunder CPKC's SEDAR+ profile, and the Q1 2024 Unaudited Combined Summary of Supplemental Data on our website at investor.cpkcr.com.

KEITH CREEL

PRESIDENT &

CHIEF EXECUTIVE OFFICER

HIGHLIGHTS

Q1 2024 vs. Q1 2023

• Celebrating one year of CPKC
  • New customer solutions driving growth
• Network performing well with year-over-year improvements in velocity and dwell
• Continued strong performance in Mexico
• • Car Miles per Car Day: +23%
  • Active Cars on Line: -15%
• Well-positionedto deliver strong year

Revenues

$3.5 billion | +55%

Combined Total Revenues(1)

$3.5 billion | +2%

Operating Ratio 67.4% | +400 bps

Core Adjusted Combined

Operating Ratio(1,2)

64.0% | +50 bps

Diluted EPS $0.83 | -3%

Core Adjusted Combined

Diluted EPS(1,2)

$0.93 | +3%

Train Speed (miles per hour)(1)

19.1| +13%

Terminal Dwell (hours)(1)

9.7 | -10%

Car Miles per Car Day(1)

130 | +12%

Active Cars on Line(1)

88,571| -11%

FRA Train Accident Frequency(1)

0.89 | +25%

FRA Train Accident Frequency(1,3)

1.15 | +3%

1. Represents combined operating information to illustrate the estimated effects of the acquisition for the first quarter ended March 31, 2023, as if the acquisition closed on January 1, 2022. For the three months ended March 31, 2024, KCS was consolidated. For a full description and reconciliation see Q1 2024 Unaudited Combined Summary of Supplemental Data on investor.cpkcr.com
2. For a full description and reconciliation of Non-GAAP Measures, see CPKC's Q1 2024 Earnings Release on investor.cpkcr.com and CPKC's 2024 Q1 MD&A available on SEDAR+ at www.sedarplus.caunder CPKC's SEDAR+ profile
3. FRA personal injuries per 200,000 employee-hours for the first quarter ended March 31, 2023, previously reported as 1.15, was restated to 1.12

MARK REDD

CHIEF OPERATING OFFICER

OPERATING PERFORMANCE

VS. CPKC COMBINED(1) Q1 2023

• Strong operational performance, despite challenging weather in January
• Focus on building an aligned safety culture across the network
• Advancing productivity and capacity initiatives in Mexico
• Key capital investments in safety and capacity to support growth

Average Train Speed

(miles per hour)

19.1

16.9

13% Improvement

Q1'24Q1'23

Locomotive Productivity (GTMs / operating horsepower)

158146

8% Improvement

Average Terminal Dwell (hours)

10.8

9.7

10% Improvement

Q1'24Q1'23

Fuel Efficiency

(U.S. gallons of loco fuel / 1,000 GTMs)

1.0651.048

2% Decline

Q1'24Q1'23

Q1'24Q1'23

1. Represents combined operating information to illustrate the estimated effects of the acquisition for the first quarter ended March 31, 2023, as if the acquisition closed on January 1, 2022. For the three months ended March 31, 2024, KCS was consolidated. For a full description and reconciliation see Q1 2024 Unaudited Combined Summary of Supplemental Data on investor.cpkcr.com

JOHN BROOKS

CHIEF MARKETING OFFICER

REVENUE HIGHLIGHTS

TOTAL REVENUETOTAL REVENUE

+55%	+2%
VS CP Q1 2023	VS CPKC COMBINED(1) Q1 2023

RTMs: +38%

RTMs: +1%

$/RTM: +12%

$/RTM: -%

Carloads: +58%

Carloads: -3%

$/Carload: -2%

$/Carload: +5%

1. Represents combined operating information to illustrate the estimated effects of the acquisition for the first quarter ended March 31, 2023, as if the acquisition closed on January 1, 2022. For the three months ended March 31, 2024, KCS was consolidated. For a full description and reconciliation see Q1 2024 Unaudited Combined Summary of Supplemental Data on investor.cpkcr.com

BULK

• Strong U.S. grain partially offset by lower Canadian grain due to weaker harvest for the '23/'24 crop year
• • U.S. grain strength driven by exports, and shipments to Canada and Mexico
  • Combined network delivering customer options and business resiliency
• Higher domestic and export potash volumes, bouncing back after slow start from weather impacts
• • Well-positionedfor strong 2024
• Lower coal volumes due to weather impacts and lower natural gas prices

REVENUE UPDATE - Q1( 1 )

MERCHANDISE

• Diversified growth in ECP from fuel oil, Diluent Recovery Unit (DRU) volumes, and plastics
• Forest products synergy gains offset by softer demand in base pulp and paper business
• Strong growth in metals driven by industrial growth and nearshoring, offset by weaker frac sand demand
• Strong automotive performance despite production holds
• • New Dallas auto compound opening in June

INTERMODAL

• Strong international intermodal through the Ports of Vancouver and Lázaro Cárdenas
• • Rebound at the Port of Vancouver driven by shipments returning after the work stoppage last summer
  • Strong TEU growth at the Port of Lázaro Cárdenas
• Flat domestic intermodal volumes
• • MMX180/181 growth accelerating, with strong uptake from IMC and retail partners
  • Offset by loss of short haul volume

1. Represents combined operating information to illustrate the estimated effects of the acquisition for the first quarter ended March 31, 2023, as if the acquisition closed on January 1, 2022. For the three months ended March 31, 2024, KCS was consolidated. For a full description and reconciliation see Q1 2024 Unaudited Combined Summary of Supplemental Data on investor.cpkcr.com