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35	35	CN pairs the efficiency of rail with the added flexibility of trucking to better serve its local and regional customers. The company accomplish this with solid trucking partners, working together every step of the way as one team - CNTL.{{footnote}}https://www.cn.ca/en/our-services/trucking/{{/footnote}}
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37		-
38	38	One of Canada’s largest full-load trucking companies CNTL has more than 1,050 owner operators, plus a fleet of 8,000 chassis and 8,000 containers.
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40	40	The company deliver more than 1,300 loads a day, safely and on time; with a 90% on-time delivery track record. The company's Speed Gate system reduces in-gate and out-gate times, giving recognized trucking partners quick access to CN’s strategically located Intermodal Terminals.
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43		-Supply Chain Services
	42	+=== Supply Chain Services ===
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45		-As a key member of its customers’ supply chain, the company recognize that when they grow, the company grow. So the company work hard with its supply chain partners to innovate, create and implement solutions that seek to drive sustainable, long-term growth for its customers.  We've put in place ground-breaking Service Level Agreements to encourage a transparent and highly cooperative partnership environment.  These agreements allow it to put the collective experience of its managers in rail, trucking, warehousing, distribution and supply chain management to work for you and improve the competitiveness of your business.
	44	+As a key member of its customers’ supply chain, the company recognize that when they grow, the company grow. So the company work hard with its supply chain partners to innovate, create and implement solutions that seek to drive sustainable, long-term growth for its customers.  We've put in place ground-breaking Service Level Agreements to encourage a transparent and highly cooperative partnership environment.  These agreements allow it to put the collective experience of its managers in rail, trucking, warehousing, distribution and supply chain management to work for you and improve the competitiveness of your business.{{footnote}}https://www.cn.ca/en/our-services/supply-chain-services/{{/footnote}}
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47		-[[https:~~/~~/www.cn.ca/en/our-services/supply-chain-services/>>url:https://www.cn.ca/en/our-services/supply-chain-services/]]
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	47	+=== Business Development ===
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50		-Business Development
	49	+CN’s Business Development team has a stellar track record, helping hundreds of companies develop rail-served sites and expand existing ones. The company work with you by identifying sites, collaborating through the designing and construction phases of your project and coordinating with its extensive network of partners to get the job done.{{footnote}}https://www.cn.ca/en/our-services/business-development/{{/footnote}}
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52		-CN’s Business Development team has a stellar track record, helping hundreds of companies develop rail-served sites and expand existing ones. The company work with you by identifying sites, collaborating through the designing and construction phases of your project and coordinating with its extensive network of partners to get the job done.
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54		-[[https:~~/~~/www.cn.ca/en/our-services/business-development/>>url:https://www.cn.ca/en/our-services/business-development/]]
	52	+= Business Overview =
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57		-Business Overview
	55	+== 2020 Highlights ==
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	57	+While CN's results were adversely impacted by the COVID-19 pandemic, the Company continued to deliver for its customers, providing essential transportation services and demonstrating its key role in the integrated global supply chain. By the end of the year, the Company began recovering from pandemic related demand declines as demand for some commodities recovered at or above pre-pandemic levels in the fourth quarter, most notably in the grain and fertilizers and intermodal commodity groups.{{footnote}}https://epub.cn.ca/avqf/tuqc/#p=11{{/footnote}}
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60		-2020 Highlights
	59	+* Revenues decreased by $1,098 million, or 7%, to $13,819 million.
	60	+* Operating expenses decreased by $282 million, or 3%, to $9,042 million.
	61	+* Operating income decreased by $816 million, or 15%, to $4,777 million and adjusted operating income decreased by $445 million, or 8%, to $5,263 million. (1)
	62	+* Operating ratio of 65.4%, an increase of 2.9 points and adjusted operating ratio of 61.9%, an increase of 0.2 points. (1)
	63	+* Net income decreased by $654 million, or 16%, to $3,562 million and diluted earnings per share decreased by 14% to $5.00.
	64	+* Adjusted net income decreased by $405 million, or 10%, to $3,784 million and adjusted diluted earnings per share decreased by 8% to $5.31 (1)
	65	+* The Company generated record free cash flow of $3,227 million, a 62% increase. (2)
	66	+* ROIC of 12.7%, a decrease of 2.6 points and adjusted ROIC of 13.4%, a decrease of 1.7 points. (3)
	67	+* CN achieved 10 consecutive months of record Canadian grain movements, which resulted in record revenues for the year for the Grain and fertilizers commodity group.
	68	+* An all-time record fuel efficiency of 0.89 US gallons of locomotive fuel consumed per 1,000 gross ton miles.
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62		-While CN's results were adversely impacted by the COVID-19 pandemic, the Company continued to deliver for its customers, providing essential transportation services and demonstrating its key role in the integrated global supply chain. By the end of the year, the Company began recovering from pandemic related demand declines as demand for some commodities recovered at or above pre-pandemic levels in the fourth quarter, most notably in the grain and fertilizers and intermodal commodity groups.
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64		-[[https:~~/~~/epub.cn.ca/avqf/tuqc/#p=11>>url:https://epub.cn.ca/avqf/tuqc/#p=11]]
	71	+== Assets held for sale ==
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66		-.
67		-
68		-Revenues decreased by $1,098 million, or 7%, to $13,819 million.
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70		-Operating expenses decreased by $282 million, or 3%, to $9,042 million.
71		-
72		-Operating income decreased by $816 million, or 15%, to $4,777 million and adjusted operating income decreased by $445 million, or 8%, to $5,263 million. (1)
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74		-Operating ratio of 65.4%, an increase of 2.9 points and adjusted operating ratio of 61.9%, an increase of 0.2 points. (1)
75		-
76		-Net income decreased by $654 million, or 16%, to $3,562 million and diluted earnings per share decreased by 14% to $5.00.
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78		-Adjusted net income decreased by $405 million, or 10%, to $3,784 million and adjusted diluted earnings per share decreased by 8% to $5.31 (1)
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80		-The Company generated record free cash flow of $3,227 million, a 62% increase. (2)
81		-
82		-ROIC of 12.7%, a decrease of 2.6 points and adjusted ROIC of 13.4%, a decrease of 1.7 points. (3)
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84		-CN achieved 10 consecutive months of record Canadian grain movements, which resulted in record revenues for the year for the Grain and fertilizers commodity group.
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86		-An all-time record fuel efficiency of 0.89 US gallons of locomotive fuel consumed per 1,000 gross ton miles.
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88		-
89		-Assets held for sale
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91	91	In the second quarter of 2020, the Company committed to a plan and is actively marketing for sale for on-going rail operations, certain non-core lines in Wisconsin, Michigan and Ontario representing approximately 850 miles and has met the criteria for classification of the related assets as assets held for sale. Accordingly, a $486 million loss ($363 million after-tax) was recorded to adjust the carrying amount of these track and roadway assets to their estimated selling price. The carrying amount of assets held for sale of $90 million is included in Other current assets in the Consolidated Balance Sheet as at December 31, 2020.
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93		-Reinvestment in the business
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	76	+== Reinvestment in the business ==
	77	+
95	95	In 2020, CN spent approximately $2.9 billion in its capital program, with $1.6 billion invested to maintain the safety and integrity of the network, particularly track infrastructure. CN's capital spending also included $0.8 billion on strategic initiatives to increase capacity, enable growth and improve network resiliency, including line capacity upgrades and information technology initiatives, $.4 billion on equipment capital expenditures, including the acquisition of 41 new high-horsepower locomotives and 1,449 new grain hopper cars, and $0.1 billion on implementation of Positive Train Control (PTC), the safety technology system mandated by the U.S. Congress.
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98		-Acquisitions
	81	+== Acquisitions ==
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100	100	On April 6, 2020, the Surface Transportation Board (STB) issued its decision conditionally approving the acquisition of the Massena rail line from CSX Corporation ("CSX"), which the Company announced its agreement to purchase on August 29, 2019. On June 6, 2020, CN and CSX sought reconsideration asking the STB to remove its condition which requires the parties to propose a change to the line sale agreement for the STB's review. The petitions for reconsideration remain pending for the STB's decision. The acquisition represents more than 220 miles of track between Valleyfield, Quebec, and Woodard, New York, and will allow CN to continue to expand its network and foster additional supply chain solutions.
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102	102	In the first quarter of 2020, the Company completed the purchase price allocation of the Manitoba based TransX Group of Companies ("TransX") which was acquired on March 20, 2019. In the fourth quarter of 2019, the fair value of net assets acquired was adjusted to reflect the settlement of working capital as well as changes to current and deferred income tax balances. The acquisition positions CN to strengthen its intermodal business, and allows the Company to expand capacity and foster additional supply chain solutions.
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105		-Financial Highlights
	88	+= Financial Highlights =
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107		-CN Reports Strong Second Quarter Results
	90	+**CN Reports Strong Second Quarter Results**{{footnote}}https://www.cn.ca/-/media/Files/Investors/Investor-Financial-Quarterly/Investor-Financial-Quarterly-2021/Q2/Q2-2021-Quarterly-Review-en.pdf?la=en&hash=4240671DC2A22A718E48BD6576ACB17D97A3D59A{{/footnote}}
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109		-[[https:~~/~~/www.cn.ca/-/media/Files/Investors/Investor-Financial-Quarterly/Investor-Financial-Quarterly-2021/Q2/Q2-2021-Quarterly-Review-en.pdf?la=en&hash=4240671DC2A22A718E48BD6576ACB17D97A3D59A>>url:https://www.cn.ca/-/media/Files/Investors/Investor-Financial-Quarterly/Investor-Financial-Quarterly-2021/Q2/Q2-2021-Quarterly-Review-en.pdf?la=en&hash=4240671DC2A22A718E48BD6576ACB17D97A3D59A]]
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112	112	July 20, 2021; Canadian National Railway reported its financial and operating results for the second quarter ended June 30, 2021, highlighting a 13 per cent increase in revenue ton miles (RTMs) year-over-year and volume growth in virtually every business unit, with notable strength in industrial products, international and domestic intermodal, and propane.
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115	115	President and Chief Executive Officer of CN JJ Ruest said "CN continued to deliver strong operating and financial performance in the second quarter, driven in large part by the dedication of its people and the ongoing long-term investments Canadian National Railway is making in its network, equipment, technology and talent. The company enter the second half of 2021 focused on executing for its customers and leveraging its strong network performance to safely and sustainably drive long-term value creation for all of its stakeholders. The company's proposed combination with Kansas City Southern has received overwhelming support from a broad base of stakeholders because it will enhance competition and drive economic growth in North America. Canadian National Railway is confident in its ability to obtain the necessary approvals and successfully close this pro-competitive combination and look forward to delivering the many compelling benefits to customers, employees, labor partners and the communities in which the company operate.”
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117		-Second-quarter 2021 revenues, traffic volumes and expenses
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	98	+**Second-quarter 2021 revenues, traffic volumes and expenses**
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119	119	Revenues for the second quarter of 2021 were C$3,598 million, an increase of C$389 million, or 12 per cent, when compared to the same period in 2020. The increase was mainly due to higher volumes across most commodity groups due to the continued economic recovery and freight rate increases; partly offset by the negative translation impact of a stronger Canadian dollar and lower export volumes of Canadian grain.
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121	121	RTMs, measuring the weight and distance of freight transported by CN, increased by 13 per cent from the year-earlier period. Freight revenue per RTM increased by one per cent over the year-earlier period, mainly driven by freight rate increases; partly offset by the negative translation impact of a stronger Canadian dollar.
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123	123	Operating expenses for the second quarter decreased by nine per cent to C$2,216 million, mainly driven by the C$486 million loss on assets held for sale recorded in the second quarter of 2020, as well as the positive translation impact of a stronger Canadian dollar; partly offset by higher fuel costs and higher incentive compensation.
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125		-CN Proposal to Combine with KCS
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	107	+**CN Proposal to Combine with KCS**
	108	+
127	127	On May 21, 2021, CN and KCS (NYSE: KSU) announced that they have entered into a definitive merger agreement to combine in a transaction valued at US$325 per KCS share, or approximately US$33.6 billion.
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129	129	CN is proposing to use a voting trust structure, which requires the approval of the Surface Transportation Board (“STB”). Under the terms of the merger agreement, KCS shareholders will receive US$200 in cash and 1.129 CN common shares for each share of KCS common stock upon closing of the transaction into a voting trust, if approved by the STB. In its May 26, 2021 joint filing, CN and KCS outlined the compelling case for the pro-competitive combination and the use of a voting trust. CN is confident that its use of a voting trust meets the STB’s standards and believes that, after a fair and thorough review by the STB, it should be approved.
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131	131	The proposed combination will establish seamless, single-line service from Canada, through the United States and into Mexico. The end-to-end CN-KCS combination will expand North American trade and power economic prosperity, provide numerous new connections and service options for customers, enhance competition, and deliver many compelling and innovative benefits for ports, employees, communities and the environment.
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134		-References
	116	+= References =
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136	136	{{putFootnotes/}}