BENEFITS TO AMERICA

• Removes ~2.1 million trucks from U.S. highways annually
• Shifting freight from higher-cost trucks to lower-cost rail will save shippers an estimated $3.5 billion annually – savings expected to flow through to consumer prices
• Rail produces up to 75% less carbon emissions than trucks
• Reduces nearly 3.8 million metric tons of carbon dioxide emissions annually

BENEFITS TO CUSTOMERS

• Transforms 10,000 existing lanes from interline to single-line service
• Creates 88,000 new county to county lanes where shippers will have access to single-line rail service for the first time
• Six new manifest trains and other transportation plan changes eliminate car handlings and route miles – Adds 404,000 annual manifest, bulk and auto carloads
• Seven new intermodal lanes with seven day a week service, with a new lane connecting Northern California and the Southeast – Adds 1.6 million annual intermodal container loads
• Only five customer locations out of more than 20,000 will go from 2 rail carriers to 1; all locations, including any later identified, will be provided a second rail option
• Keeps open all existing gateways for eligible traffic on commercially reasonable terms
• Committed Gateway Pricing extends merger benefits to solely-served BNSF and CSX customers

BENEFITS TO EMPLOYEES

• Unprecedented jobs-for-life guarantee – every employee with a union job at the time of the merger will continue to have one
• Merger creates 1,200 net new union jobs by Year 3 to handle new business, up from 900 in the original application
• Average annual compensation and benefit package for rail workers of $160,000; 40% above the national industrial average

BENEFITS TO SHAREHOLDERS

• Revenue growth of ~$4.1 billion annually by Year 3
• Up to $1.8 billion annual net revenue EBITDA synergies by Year 3
• Annual cost synergies of nearly $1 billion by Year 3
• One time integration capital of ~$2 billion

• Annual capital savings of ~$133 million by Year 3
• Annual free cash flow* grows to $11.8+ billion by Year 3
• Long-term Debt / EBITDA target of ~2.8x achieved by Year 2
• Resume share repurchases in Year 2, growing to $10B+ annually by Year 3