The Burlington Northern and Santa Fe Railway Company

David Deaton September 18, 2000

The Burlington Northern and Santa Fe Railway Company

David Deaton September 18, 2000

BNSF VisionBNSF Vision

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

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

BNSF Trackage Rights

Los Angeles SanBernardino

KansasCity

San Francisco

Bieber

Keddie

Portland

Helena

Billings

SpokaneTacoma

Seattle Winnipeg

Duluth

Vancouver

Harve

Glendive

San DiegoPhoenix

El Paso

Eagle Pass

Brownsville

IowaJunction

Denver

Dallas/Ft. Worth

Birmingham

East St. Louis

Memphis

Omaha

Sioux City

Lincoln

Chicago

Galesburg

PaducahSpringfield

Houston

Galveston Avondale(New Orleans)

OklahomaCity

Gillette

Fargo

Minneapolis/St. Paul

Tulsa

Albuquerque

Mobile

BNSF Rail NetworkBNSF Rail Network

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

BNSF Trackage Rights

Los Angeles SanBernardino

KansasCity

San Francisco

Bieber

Keddie

Portland

Helena

Billings

SpokaneTacoma

Seattle Winnipeg

Duluth

Vancouver

Harve

Glendive

San DiegoPhoenix

El Paso

Eagle Pass

Brownsville

IowaJunction

Denver

Dallas/Ft. Worth

Birmingham

East St. Louis

Memphis

Omaha

Sioux City

Lincoln

Chicago

Galesburg

PaducahSpringfield

Houston

Galveston Avondale(New Orleans)

OklahomaCity

Gillette

Fargo

Minneapolis/St. Paul

Tulsa

Albuquerque

Mobile

Commodity SummaryCommodity Summary

Coal

Chemicals

I n

t e r

m o d a l

Forest Products

Grain

Automotive

CoalCoal

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: Detroit Edison Enron Commonwealth Edison

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: Detroit Edison Enron Commonwealth Edison

Agricultural ProductsAgricultural Products

Dedicated unit train service from Midwestern grain belt to PNW and Gulf ports and Mexico

$1 billion annual revenue

Transportation traded on secondary markets

Key customers: ConAgra Archer Daniels Midland Co. Cargill

Dedicated unit train service from Midwestern grain belt to PNW and Gulf ports and Mexico

$1 billion annual revenue

Transportation traded on secondary markets

Key customers: ConAgra Archer Daniels Midland Co. Cargill

Industrial ProductsIndustrial ProductsFour primary segments:

Forest Products Chemicals Metals Minerals/Machinery

$2.5 billion annual revenue Key customers:

Weyerhauser, Boise Cascade Shell, Texaco, Occidental Petroleum Alcoa, US Steel, Bethlehem Steel Boeing

Four primary segments: Forest Products Chemicals Metals Minerals/Machinery

$2.5 billion annual revenue Key customers:

Weyerhauser, Boise Cascade Shell, Texaco, Occidental Petroleum Alcoa, US Steel, Bethlehem Steel Boeing

IntermodalIntermodal

High speed truck competitive train network

Four segments Direct/Parcel (UPS, USPS, Roadway, Yellow Freight) Truckload (JB Hunt, Schneider National) International (Evergreen, Maersk, Hanjin) IMC (Hub Group, Alliance Shippers, Railvan)

Retail customers include WalMart, Target, Home Depot

$2.7 billion annual revenue, fastest growing business

High speed truck competitive train network

Four segments Direct/Parcel (UPS, USPS, Roadway, Yellow Freight) Truckload (JB Hunt, Schneider National) International (Evergreen, Maersk, Hanjin) IMC (Hub Group, Alliance Shippers, Railvan)

Retail customers include WalMart, Target, Home Depot

$2.7 billion annual revenue, fastest growing business

AutomotiveAutomotive

Service from Midwestern plants and West Coast ports to major population centers

$500 million annual revenue

Key customers: Ford Motor American Honda DaimlerChrysler Corporation

Service from Midwestern plants and West Coast ports to major population centers

$500 million annual revenue

Key customers: Ford Motor American Honda DaimlerChrysler Corporation

My WorkMy Work

Price creationPrice implementationMarket research$160 annual revenue responsibility

Scrap metalPulpboard/wrapping paperKaolin Clay

Price creationPrice implementationMarket research$160 annual revenue responsibility

Scrap metalPulpboard/wrapping paperKaolin Clay

Pricing Research ExamplePricing Research Example

SupplySupply

DemandDemand

PNW Lumber MarketPNW Lumber Market

SupplySupply

DemandDemand

Chicago Lumber MarketChicago Lumber Market

The $57/mbf Spread is available for TransportationThe Spread IS Transportation = $5,700 per railcar

The $57/mbf Spread is available for TransportationThe Spread IS Transportation = $5,700 per railcar

$345/mbf$345/mbf

$402/mbf$402/mbf

Confidential Information

Management Trainee Sponsoring Departments

Management Trainee Sponsoring Departments

MarketingOperationsAccounting and

FinanceISHuman Resources

MarketingOperationsAccounting and

FinanceISHuman Resources

BNSF Management Trainee ProgramBNSF Management Trainee Program

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

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 DevelopmentCareer Development

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

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

Compensation/BenefitsCompensation/Benefits

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

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

Questions?Questions?