April 22, 2008

First Quarter 2009 Earnings Review

April 23, 2009

1 TSX/NYSE: CP

Forward Looking StatementsForward Looking Statements

The following investor presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (United States) and relevant Canadian legislation relating but not limited to CP’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes.

Readers are cautioned not to place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CP. CP undertakes no obligation to update publicly or otherwise revise any forward-looking information (other than as required by law), whether as a result of new information, future events or otherwise.

By its nature, CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general global economic and business conditions; risks in agricultural production such as weather conditions and insect populations; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demands; changes in laws and regulations including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; timing of completion of capital and maintenance projects; interest rate fluctuations; effects of changes in market conditions on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, technological changes, and other risks detailed from time to time in reports filed by CP with securities regulators in Canada and the United States. Reference is made more specifically to the “Management’s Discussion and Analysis” in CP’s annual and quarterly reports filed with Canadian and United States securities regulators.

Except where noted, all figures are in millions of Canadian dollars.

T denotes Target, E denotes Estimate.

Financial statements prepared in accordance with Canadian Generally Accepted Accounting Principles, unless otherwise noted.

2 TSX/NYSE: CP

Note on Non-GAAP Earnings Measures

CP presents non-GAAP earnings in this presentation to provide a basis for evaluating underlying earnings trends that

can be compared with the prior period's results.

These non-GAAP earnings exclude foreign currency translation effects on long-term debt, which can be volatile and

short term, and/or other specified items, which are not among CP's normal ongoing revenues and operating expenses.

The impact of volatile short-term rate fluctuations on foreign-denominated debt is only realized when long-term debt

matures or is settled.

A reconciliation of income, excluding foreign exchange (gains) losses on long-term debt and other specified items, to

net income as presented in the financial statements is detailed in the Summary of Rail Data issued with the quarterly

earnings news release.

During the first quarter 2009, there were foreign exchange losses on long-term debt.

It should be noted that CP’s earnings that exclude foreign exchange currency translation effects on long-term debt

and/or other specified items, as described in this presentation, have no standardized meanings and are not defined by

Canadian Generally Accepted Accounting Principles and, therefore, are unlikely to be comparable to similar measures

presented by other companies.

3 TSX/NYSE: CP

Fred GreenPresident and Chief Executive Officer

4 TSX/NYSE: CP

Overview Q1 2009

Redefining key processes to lower structural costs

4%Difference

Q1 traffic mix

-18.6%

-22.4%

Good operational cost control offset by large volume decline and negative mix

Price improvements continue

Accelerating efficiency opportunities

Preserving cash and strengthening balance sheet

Carloads

RTMs

5 TSX/NYSE: CP

Financial overview

Kathryn McQuadeExecutive Vice President and Chief Financial Officer

6 TSX/NYSE: CP

Income statement Q1 2009

Strong cost control gains offset by negative mix

Dollars in millions except where noted 2009 2008 (1)(2) $ % FX adj. %

Total revenues 1,070.7$ 1,225.2$ (154.5)$ (13%) (24%) Operating expenses 931.3 1,009.3 78.0 8% 18%

Operating income 139.4$ 215.9$ (76.5)$ (35%) (50%)

Interest expense and other 79.9 66.0 (13.9) (21%) (2%) Income tax expense 5.4 33.6 28.2 84% 96%

Adjusted income(3) 54.1$ 116.3$ (62.2)$ (53%) (66%)

Adjusted diluted EPS (dollars)(3) 0.34$ 0.75$ (0.41)$ (55%)

Favourable / (Unfavourable)Variance

(1) Pro forma data including the DM&E as if it was consolidated for the full year in 2008.(2) Certain 2008 figures have been restated for the adoption of CICA accounting standard 3064.(3) Adjusted amounts exclude foreign exchange (gains) losses on long-term debt and other specified items.

See slide 2 for a note on Non-GAAP earnings measures.

7 TSX/NYSE: CP

Compensation & benefits Q1 2009

Employee layoffs help offset inflation and foreign exchange

Monthly expense head count (Average)

2009 v. 2008 pro forma ($ Millions)

Fav/(Unfav)

Volume & efficiency gains 24

Incentive compensation 10

Total Return Swap (TRS)

Pension expense

Inflation & other

Foreign exchange

Total12,000

13,000

14,000

15,000

16,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

9

7

(21)

(10)

(5)

20092008 (incl. DM&E) April estimate

8 TSX/NYSE: CP

Fuel Q1 2009

Price per gallon impacted by winter planning and hedges

Average fuel price (1)

(U.S.$ / U.S. gallon)2009 v. 2008 pro forma ($ Millions)

Fav/(Unfav)

Price

Consumption

Hedge (9)

Winter fuel program (11)

Other (7)

Foreign exchange (53)

Total

104

49

73

$1.94 $2.02 $2.04

$3.02

Q1 2006 Q1 2007 Q1 2008* Q1 2009

$1.86

Hedge & Winter fuel program

(1) Pro forma data including the DM&E as if it was consolidated for the full year in 2008.

9 TSX/NYSE: CP

Equipment rents Q1 2009

Quick removal of assets supporting fluidity

Active cars on-line (1) 2009 v. 2008 pro forma ($ Millions)

Fav/(Unfav)

1 2 3 4 5 6 7 8 9

10

11

12

13

14

15

Week

Fleet size adjustments

Car hire receipts (6)

Other

Foreign exchange (10)

Total (4)

0

12

(1) CP only. Data does not include the DM&E

10 TSX/NYSE: CP

Other operating expenses Q1 2009

Foreign exchange offsetting strong expense control

2009 v. 2008 pro forma ($ Millions) Fav/(Unfav)

Materials

Usage / volumes 3 – 7

Casualty – – 7

Other (net) 5 4 0

Foreign exchange

Total 1 3

Depreciation Purchased services

(11)(6)(7)

(2)

11 TSX/NYSE: CP

Expense control Q1 2009

Cost management activities creating savings

Expense review($ Millions) Fav/(Unfav)

2008 pro forma expenses

Non-fuel inflation

Fuel price (net of hedges) 84M

Winter operating conditions (v. 2008) 22M

Variable cost management & other 96M

Subtotal

Foreign exchange

2009 reported expenses

823

931

1,009

(108M)

(16M)

Cost management

12 TSX/NYSE: CP

Balance sheet strength 2009

Cash from operations stable with strong cash position

Capital program (1)(2)(3)

($ Millions) Cash from operations flat with 2008

Equity issue raised $489 million

Reduced capital program further

Monetized a portion of our ownership interest in Detroit River Tunnel Partnership

Will change from consolidated to equity interest

1,001 893

794

884

720 - 740

2005 2006 2007 2008 2009T

Core CP Full year DM&E

(1) See slide 2 for a note on Non-GAAP earnings measures.(2) Capital program refers to “Additions to properties”.(3) 2009 capital program based on foreign exchange of C$1.25 / U.S.$.

13 TSX/NYSE: CP

Dakota, Minnesota & Eastern

Integration plans on track

Business process integration on target

IT system conversions on target for Q4 completion

Safety improvement results exceed targetsFRA personal injury frequency improved by 43%FRA train accident frequency improved by 7%

Business opportunities progressing

14 TSX/NYSE: CP

Summary

CP is becoming a more efficient company

Successfully managing short-term variable costs

Focused on removing structural costs through sustained process improvements

Strategies in place to drive sustainable improvements

15 TSX/NYSE: CP

Marketing overview

Marcella SzelSenior Vice President Sales and Marketing

16 TSX/NYSE: CP

Volumes and revenue Q1 2009

Volumes down 19% with steady pricing improvement

Canadian coal carloads down 30%

Automotive carloads down 43%

Potash carloads down 70%

Volume reductions occurred unevenly

Revenue ton miles down 22%

Disciplined price delivers steady result

17 TSX/NYSE: CP

Market review Grain

Excellent Canadian crops moved well in Q1

Canadian grain revenues up 17%

U.S. grain shipments down

Expect remaining volumes to move well

RTMs

Fx adj. revenues

Carloads-3%

-5%

2%

18 TSX/NYSE: CP

Market review Coal

Lower volumes impacting results

Lower steel demand slowing met coal shipments

Full year volume expected to be significantly lower than 2008

U.S. thermal coal moving well

Variance between RTMs and carloads driven by reductions in export shipments and growth in U.S. shorthaul business

-6%

-23%

-26% RTMs

Fx adj. revenues

Carloads

19 TSX/NYSE: CP

Market review Sulphur & fertilizers

Potash volumes down significantly

Reduced sales lowering demand

Long-term industry fundamentals remain strong

-53%

-55%

-60% RTMs

Fx adj. revenues

Carloads

20 TSX/NYSE: CP

Market review Merchandise

North American economy decline impacting volumes and revenues

Recession continuing to pressure all Merchandise sectors

U.S. auto sales now expected to be below 10 million

Positive trends in emerging markets

Government stimulus packages could drive volumes

-25%

-32%

-22% RTMs

Fx adj. revenues

Carloads

21 TSX/NYSE: CP

Market review Intermodal

Weak import / export demand impacting volumes

High retail inventories and declining consumer demand lowering traffic volumes

Long-haul import / export down

Retail outlook and recovery unclear

-18%

-19%

-20% RTMs

Fx adj. revenues

Carloads

22 TSX/NYSE: CP

Summary

Capturing new opportunities

Disciplined price

23 TSX/NYSE: CP

Operations overview

Brock WinterSenior Vice President Operations

24 TSX/NYSE: CP

Safety 2009

Committed to being the safest railway in North America

Train incident frequency (1)(2)(3) Personal injury frequency (1)(2)(3)

20%Decline

1.71

2.37

Q1 2008 Q1 2009

28%Improvement

1.38 1.65

Q1 2008 Q1 2009

(1) FRA reportable incidents only.(2) Prior period figures have been updated to reflect new information.(3) CP only. Does not include DM&E.

25 TSX/NYSE: CP

Fluidity & productivity Q1 2009

Fluidity driving cost reductions

Train speedImprovement

6%

10%

Q1 Apr MTD

Yard dwellImprovement

Active cars on-lineImprovement

7%

16%

Q1 Apr MTD

15%

23%

Q1 Apr MTD

4%

20%

Q1 Apr MTD

19%

29%

Q1 Apr MTD

Train startsImprovement

5%4%

Q1 Apr MTD

Train weightsHolding

Crew utilizationImprovement

26 TSX/NYSE: CP

Productivity Q1 2009

Variable cost management remains a top priority

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

Active road locomotives

Week

~350Stored

Locomotives

~16,000Stored

Freight cars

~2,400Laid off

Employees

27 TSX/NYSE: CP

Fixed cost review

Early action will add to $100 Million E3 expense savings

Evaluating opportunities to consolidate locomotive shops and yards

Restructuring mechanical operations in Southern Ontario and Vancouver

Have closed several satellite yard operations

Reducing cycle times in key pipelines

28 TSX/NYSE: CP

Fred GreenPresident and Chief Executive Officer

April 22, 2008

Questions and Answers

30 TSX/NYSE: CP

Appendix Income statement – Q1

GAAP earnings

Dollars in millions except where noted 2009 2008 (1)

Freight revenue 1,050.2$ 1,124.4$ (74)$ (7%)Other revenue 20.5 22.5 (2) (9%)Total revenues 1,070.7 1,146.9 (76) (7%)

Operating expenses 931.3 948.9 18 2%

Operating income 139.4$ 198.0$ (59)$ (30%)

Equity income in DM&E - 11.0 (11) (100%)Interest expense and other charges 79.9 66.6 (13) (20%)Loss in fair value of ABCP - 21.3 21 100%Foreign exchange losses on LTD 0.2 16.3 16 99%Income before income tax expense 59.3 104.8 (46) (43%)

Income tax (recovery) expense (3.2) 14.1 17 123%

Net income 62.5$ 90.7$ (28)$ (31%)

Diluted EPS (dollars) 0.39$ 0.59$ (0.20)$ (34%)

Favourable / (Unfavourable)

Variance

(1) Certain 2008 figures have been restated for the adoption of CICA accounting standard 3064.

31 TSX/NYSE: CP

Appendix Revenue - expense breakdown

Q1 2009 Freight revenues$1,050 Million

Q1 2009 Operating expenses$931 Million

Sulphur and fertilizers

$757%

Coal $11611%

Grain $28627%

Automotive $525%

Industrial and

consumer products

$20019%

Forest products $45

4%

Intermodal $27826%

Fuel $17118%

Comp. and benefits

$34137%

Purchased services and other $165

18%

Depn and amort. $132

14%

Equipment rents $54

6%Materials

$697%

Note: Numbers may not add due to rounding.

32 TSX/NYSE: CP

Appendix Foreign exchange

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

2003 2004 2005 2006 2007 2008 2009

Foreign exchange rates(US$ per CAD$)

33 TSX/NYSE: CP

Appendix Fuel price - WTI

$0

$20

$40

$60

$80

$100

$120

$140

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

2003 2004 2005 2006 2007 2008 2009

Quarterly average WTI price(US$ per barrel)

34 TSX/NYSE: CP

Appendix Fuel hedging

Planned quarterly ULSD (1) hedges (Illustrative)

3%

9%10%

6%

Q2 2009 Q3 2009 Q4 2009 2010

(1) ULSD: Ultra Low Sulphur Diesel

35 TSX/NYSE: CP

Merchandise Fx impacts

Fx adjusted revenues

Forest products -45%

Industrial products -23%

Automotive -43%

April 22, 2008

Contacts

Canadian PacificSuite 500, 401 – 9th Avenue SWCalgary AlbertaCanada T2P 4Z4

www.cpr.ca

Investor Relations:

Janet Weiss, Assistant Vice PresidentJeff Edwards, Manager

investor@cpr.ca403-319-3591