Exhibit 99.6
North American
Railways, Inc.
CN
[CN logo appears here]
BNSF
[BNSF logo appears here]
1
CN BNSF
[CN logo appears here] [BNSF logo appears here]
Forward-looking Statement
This presentation may contain forward-looking statements within the meaning of
the United States Private Securities Reform Act of 1995 and other applicable
legislation, regarding future events and the future performance of CN that
involve risks and uncertainties that could cause actual results to differ
materially. This presentation may also contain forward-looking statements
regarding future events and the future performance of BNSF that involve risks
and uncertainties that could cause actual results to differ materially. Such
forward-looking statements may include, without limitation, statements that the
Company does not expect that claims, lawsuits, environmental costs, commitments,
contingent liabilities, labor negotiations or other matters will have a material
adverse effect on its consolidated financial condition, results of operations or
liquidity and other similar statements concerning matters that are not
historical facts, and projections or predictions as to the Company's financial
or operational results. Such forward-looking statements are or will be based on
information available at that time, are not guarantees of future performance and
involve known and unknown risks and uncertainties, and other factors which may
cause the outlook, the actual results or performance of the Company or the rail
industry to be materially different from any future results or performance
implied by such statements. Important factors that could cause such differences
include, but are not limited to, industry competition and legislative and/or
regulatory developments, changes in or compliance with environmental laws and
regulations, natural events such as severe weather, floods and earthquakes, the
effects of adverse general economic and business conditions, changes in fuel
prices, labor strikes, the impact of year 2000 systems problems, environmental
investigations or proceedings and other types of claims and litigation and other
risks detailed from time to time in reports filed by the Company with securities
regulators in Canada and the United States. Reference is made more specifically
to "Management Discussion and Analysis" in the Company's annual and quarterly
reports filed with Canadian securities regulators and in the Company's Form 40-F
filed with U.S. securities regulators. Reference is also made to the documents
BNSF files from time to time with the Securities and Exchange Commission
including BNSF's Form 10-K, Form 10-Q and Form 8-K reports, which contain
additional important factors that could cause the results of BNSF to differ from
its current expectations and the forward-looking statements contained in this
presentation.
CN BNSF
[CN logo appears here] [BNSF logo appears here]
Overview
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Feature Description
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The Business . North American Railways, Inc. is formed by
Combination the combination of BNSF and CN
. Both BNSF and CN will maintain their current
regional operating and marketing focus
. IT, Purchasing, and selected marketing
functions will be shared
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Structure . 100% equity
. 1.05 BNSF share = 1.00 CN share
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Regulatory . Subject to STB approval
. Complies with both the CN Commercialization
Act and CBCA
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Tax Implications . Tax efficient transaction for U.S. and Canadian
shareholders
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Corporate Backgrounds
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- ------------------------ ------------------------- -------------------------
CN BNSF Combined BNSF-CN
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. Market cap*: U.S.$6.0B . Market cap*: U.S.$12.9B . Market cap*: U.S.$18.9B
. Route Miles: 16,000 . Route Miles: 34,000 . Route Miles: 50,000
. Employees: 23,500 . Employees: 43,500 . Employees: 67,000
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Combination creates largest North American railroad
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Note: *As of the closing market on December 17, 1999
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
North American Railways, Inc.
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[MAP OF UNITED STATES SHOWING ROUTES OF NORTH AMERICAN RAILWAYS, INC.]
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Complementary networks with
superior reach and strong franchise
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Traffic Mix
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CN
--
1998 Revenue -- U.S.$3.5B (Cdn $5.2B)
Merchandise 50%
Grain 16%
Intermodal 16%
Coal 10%
Automotive 8%
BNSF
----
1998 Revenue -- U.S.$8.9B (Cdn $13.2B)
Intermodal 27%
Merchandise 29%
Coal 25%
Grain 14%
Automotive 5%
BNSF-CN
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1998 Pro Forma Revenue
U.S.$12.5B (Cdn $18.5B)
Bulk 36%
Coal 21%
Grain 15%
Merchandise 35%
Intermodal/Auto 29%
Intermodal 24%
Automotive 5%
Well-balanced portfolio
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Strategic Rationale
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North American Economies
Integrating
Shippers Demanding Integrated
North American Service
Seamless Service Best Way To Address
Interchange Issues
Trucking Industry Already Fully
Integrated
BNSF-CN Low Risk
End-To-End Combination
Complementary Strengths -- CN
Originations Align Well With BNSF
Terminations
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Customer Benefits
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. New network efficiencies
. More direct routes
. Faster transit times
. By-pass bottlenecks
. Easier to do business with
. Greater port access
. Increased equipment availability
. Commercial benefits
. Links production and consumption regions
. Access to new markets
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Revenue Synergies
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Automotive
. Single-line service between plants in
Michigan and Southern Ontario to U.S.
Southwest, West Coast and Mexico
Chemicals
. Connects Alberta, Gulf Coast and
Sarnia production regions
. Single-line service to U.S. Midwest and
West Coast
Intermodal
. Single-line service between Eastern
Canada, U.S. Midwest and U.S.
Southwest, West Coast
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Cost Synergies
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Locomotive and ------ . Asset efficiencies
Car Fleet . Best Practices
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Purchasing ------ . Joint procurement
. Pricing leverage
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G&A ------ . Information technology and back shop
consolidation
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Transportation ------ . Complementary network
. Best Practices
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Shareholder Value
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EBIT Impact
(U.S.$M)
Year 1.....$150-200
Year 2.....$350-400
Year 3.....$500-600
Approximately Half from Revenue and Half from Efficiencies
Accretion
. Accretive from year one, even with purchase accounting
. Comfortably double-digit by third year of operations
. Scope for further accretion possible through share buyback
. Significant free cash-flow generation
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Management Team
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. Rob Krebs - Chairman
. Paul Tellier - President and CEO
. Hunter Harrison - COO
. Tom Hund - CFO
. Matt Rose - BNSF President and CEO
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Implementation Team
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Key Implementation Initiatives
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Information ------ . Integrate operating systems and IT function
Systems . Develop joint e-commerce initiative
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Purchasing ------ . Establish joint procurement system
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Operations ------ . Adopt precision scheduling
. Utilize total car and locomotive fleets
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Growth, scale and best practices
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Low Risks
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. Key Factors
. End-to-end combination
. Same operating systems
. Best merger records
. Strong management team
. Comprehensive integration planning
. Structure preserves each company's culture
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A different kind of combination
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
Roadmap To Completion
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Key Activities Timeframe
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Execution And Announcement . December 20
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STB Pre-Notification . December 20
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STB Filing Application . Spring 2000
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Shareholder Votes . Spring 2000
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STB Approval Process . Prior mergers suggest up to
sixteen months from date of
announcement
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Closing . Mid 2001
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CN BNSF
[CN logo appears here] [BNSF logo appears here]
BNSF-CN Combination
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. Meets shippers' North American service needs
. Has limited integration risk
. End-to-end combination
. Common operating systems
. Maintains local customer and national account focus
. Generates significant revenue and efficiency synergies
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Strong earnings and cash flow
will drive shareholder value
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