The Burlington Northern and Santa Fe Railway Company

The Burlington Northern and Santa Fe Railway Company David Deaton September 18, 2000

BNSF Vision “Our vision is to realize the tremendous potential of BNSF by providing transportation services that consistently meet our customer’s expectations. ”

BNSF Rail Network Covers western 2/3 US l 34, 000 route miles l 28 states l 2 Canadian Provinces l West coast and Gulf ports l

Commodity Summary Forest Products Grain Automotive Coal I n t e r m o d a l Chemicals

Coal l Dedicated unit train service from Wyoming coal fields to Midwest and Southeastern energy plants $2. 5 billion annual revenue or 18% total BNSF Key customers: l Detroit Edison l Enron l Commonwealth Edison

Agricultural Products l Dedicated unit train service from Midwestern grain belt to PNW and Gulf ports and Mexico l $1 billion annual revenue l Transportation traded on secondary markets l Key customers: l Con. Agra l Archer Daniels Midland Co. l Cargill

Industrial Products Four primary segments: l Forest Products l Chemicals l Metals l Minerals/Machinery l $2. 5 billion annual revenue l Key customers: l Weyerhauser, Boise Cascade l Shell, Texaco, Occidental Petroleum l Alcoa, US Steel, Bethlehem Steel l Boeing l

Intermodal l l High speed truck competitive train network Four segments l Direct/Parcel (UPS, USPS, Roadway, Yellow Freight) l Truckload (JB Hunt, Schneider National) l International (Evergreen, Maersk, Hanjin) l IMC (Hub Group, Alliance Shippers, Railvan) l Retail customers include Wal. Mart, Target, Home Depot l $2. 7 billion annual revenue, fastest growing business

Automotive l l l Service from Midwestern plants and West Coast ports to major population centers $500 million annual revenue Key customers: l Ford Motor l American Honda l Daimler. Chrysler Corporation

My Work Price creation l Price implementation l Market research l $160 annual revenue responsibility l Scrap metal l Pulpboard/wrapping paper l Kaolin Clay l

Pricing Research Example PNW Lumber Market Chicago Lumber Market Supply $345/mbf Demand $402/mbf The $57/mbf Spread is available for Transportation l. The Spread IS Transportation = $5, 700 per railcar l Confidential Information

Management Trainee Sponsoring Departments Marketing l Operations l Accounting and Finance l IS l Human Resources l

BNSF Management Trainee Program l l l Purpose - to provide a source for organizational renewal, support diversity initiatives, and infuse BNSF with new business processes and technologies Start with 1 month orientation program After 6 months of training in two functional areas management trainees transition into full time jobs

Career Development l l l Mentoring circles Internal job posting system Cross functional opportunities Competency based development and selection Performance evaluations

Compensation/Benefits l l l l Incentive compensation plan Stock options Medical, dental and life insurance 401 K plan, pension plan Tuition reimbursement Short term and long term disability Railroad retirement

Questions?