© 2

017

Kans

as C

ity S

outh

ern

Automotive Overview

© 2

017

Kans

as C

ity S

outh

ern

U.S. Vehicle Sales to Remain Flat

2Source: Autocast Jan 2019 version

17.517.2 17.2

16.917.3 17.5 17.6 17.7

10

11

12

13

14

15

16

17

18

19

2016 2017 2018 2019 2020 2021 2022 2023

U.S. Light Vehicle Sales in Millions of Vehicles(2016-2018 Actuals, Forecast Thereafter)

-1.6% projected drop in sales from

2018 to 2019

0.8% increase is expected from

2016 to 2023

© 2

017

Kans

as C

ity S

outh

ern

U.S. Truck Sales Maintain Lead Over Car Sales

3

10.6911.14

11.78 11.9212.35 12.64 12.81 12.90

6.846.08

5.27 5.11 4.98 4.86 4.79 4.75

0

2

4

6

8

10

12

14

2016 2017 2018 2019 2020 2021 2022 2023

U.S. Light Vehicle Sales in Millions of Vehicles(2016 & 2017 Actuals, Forecast Thereafter)

Trucks Cars Linear (Trucks) Linear (Cars)

© 2

017

Kans

as C

ity S

outh

ern

1

2

3

4

5

6

7

8

9

10

Global Rank in Auto Manufacturing

Source: OICA

21China

Japan

Germany

S Korea

Brazil

India

Spain

France

Mexico

Canada

Thailand

2010 2011 2012 2013 2014 2015(MM units)

12.1

8.5

5.7

3.9

3.39

3.37

2.7

2.4

2.3 4

© 2

017

Kans

as C

ity S

outh

ern

2.0

2.0

2.1

1.5

2.32.6

2.92.9

3.2

3.4

3.9

3.9

4.2

4.4

4.5

0.1

0.3

0.4

0.7

0.8

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

MILLIONS OF VEHICLES

ORGANIC (EXISTING PLANTS) INORGANIC (NEW PLANTS)

4.0

4.2

4.65.1

5.3

Mexico’s Auto Production Growth

5

© 2

017

Kans

as C

ity S

outh

ern

Demand for Finished Vehicles from MexicoExports to US and Canada

20% Move via the ports of Veracruz, Lazaro and Altamira to US/CAN

Source: 2017 Estimated from Autocast, AMIA & SCT Data

Mexico Auto Production100%

Mexico Export Market

79%

Mexico Domestic Market

21%

US/Canada Bound84%

Rest of the World16%

80% Move viacross-Border to US & Canada

6

© 2

017

Kans

as C

ity S

outh

ern

7

KCS is Well-Positioned for Mexico Automotive Growth

© 2

017

Kans

as C

ity S

outh

ern

Auto Production Styles & End-Destinations Are Shifting

8*Source: Autocast**Source: Bloomberg Article, dated January 4, 2017

Passenger Car65%

Light Truck/SUV

35%

2011

Passenger Car57%

Light Truck/SUV

43%

2016

U.S.82%

Non-U.S.18%

2015

U.S.72%

Non-U.S.28%

2018 Projection

+8% Light Truck/SUV

+10% Non-U.S. Exports

Mexico’s manufacturing has shifted to better align with sales trends*

Exports to non-U.S. countries growing**

© 2

017

Kans

as C

ity S

outh

ern

Future Auto Plant Openings

Source: (1) Autocast(2) Manufacturer’s Press Releases

BMWSan Luis Potosi, MX

Opens 2019(2)

ToyotaGuanajuato, MX

Estimated Opening: 2020

9

© 2

017

Kans

as C

ity S

outh

ern

Automotive Equipment Today

10

Auto-Max: 24+ Vehicles

Tri-Level: 12-15 Vehicles

Bi-Level: 8-10 Vehicles Asset

Utilization

© 2

017

Kans

as C

ity S

outh

ern

Railcar Loading Process

11

Ramp In/Out

Tie Down – Chocks

Automotive Operations

© 2

017

Kans

as C

ity S

outh

ern

X-ray scanning system running in Lázaro, Nuevo Laredo and Laredo- X-ray pictures of the cargo.- Radiation scanning.

The National Dispatch Center in Monterrey, NL. allows a real

tracking of trains along the line.

CCTV

High-speed digital images system on the B-line in Saltillo and San Luis Potosi

DUOS System

Scanning of High Security SealsMCS System

Data Base Integration

12