KANSAS CITY SOUTHERN INDUSTRIES, INC. AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in Millions) Years Ended December 31, 1997 1996 1995(a) 1994 1993 Earnings: Pretax Income(Loss), excluding equity in earnings of unconsolidated affiliates $ 64.0 $167.2 $484.5 $148.9 $160.9 Interest Expense on Indebtedness 63.7 59.6 77.0 53.6 51.2 Portion of Rents Representative of an Appropriate Interest Factor 26.4 13.9 17.2 17.7 11.0 Equity in Undistributed Earnings of 50% Owned Affiliates 2.8 0.8 5.7 15.6 9.0 Distributed Earnings of Less Than 50% Owned Affiliates 3.7 0.9 0.1 0.5 Fixed Charges of 50% Owned Affiliates 6.0 1.3 1.3 0.9 1.4 Income (Loss) as Adjusted $162.9 $246.5 $586.6 $236.8 $234.0 Fixed Charges: Interest Expense on Indebtedness $ 63.7 $ 59.6 $ 77.0 $ 53.6 $ 51.2 Capitalized Interest 7.4 - - - - Portion of Rents Representative of an Appropriate Interest Factor 26.4 13.9 17.2 17.7 11.0 Fixed Charges of 50% Owned Affiliates 6.0 1.3 1.3 0.9 1.4 Total Fixed Charges $103.5 $ 74.8 $ 95.5 $ 72.2 $ 63.6 Ratio of Earnings to Fixed Charges 1.57* 3.30 6.14 3.28 3.68 * Includes one-time restructuring, asset impairment and other charges. Excluding these one-time items, the ratio for 1997 is 3.47. Note: Exclude amortization expense on intangible debt discount due to immateriality