To México & Beyond...shipped by rail; loss of the rail concession of KCS’ subsidiary, Kansas City Southern de México, S.A. de C.V.; the termination of, or failure to renew, agreements

© Kansas City Southern

To México & BeyondGreg Walling

VP Network Design

February 2015

© Kansas City Southern 2

Safe Harbor Statement

This presentation contains “forward-looking statements” within the meaning of the securities laws concerning potential future

events involving KCS and its subsidiaries, which could materially differ from the events that actually occur. Words such as

“projects,” “estimates,” “forecasts,” “believes,” “intends,” “expects,” “anticipates,” and similar expressions are intended to

identify many of these forward-looking statements. Such forward-looking statements are based upon information currently

available to management and management’s perception thereof as of the date of this news release. Differences that actually

occur could be caused by a number of external factors over which management has little or no control, including: competition

and consolidation within the transportation industry; the business environment in industries that produce and use items

shipped by rail; loss of the rail concession of KCS’ subsidiary, Kansas City Southern de México, S.A. de C.V.; the termination

of, or failure to renew, agreements with customers, other railroads and third parties; interest rates; access to capital;

disruptions to KCS’ technology infrastructure, including its computer systems; natural events such as severe weather,

hurricanes and floods; market and regulatory responses to climate change; credit risk of customers and counterparties and

their failure to meet their financial obligations; legislative and regulatory developments and disputes; rail accidents or other

incidents or accidents on KCS’ rail network or at KCS’ facilities or customer facilities involving the release of hazardous

materials, including toxic inhalation hazards; fluctuation in prices or availability of key materials, in particular diesel fuel;

dependency on certain key suppliers of core rail equipment; changes in securities and capital markets; availability of qualified

personnel; labor difficulties, including strikes and work stoppages; insufficiency of insurance to cover lost revenue, profits or

other damages; acts of terrorism or risk of terrorist activities; war or risk of war; domestic and international economic

conditions; political and economic conditions in Mexico and the level of trade between the United States and Mexico;

increased demand and traffic congestion; the outcome of claims and litigation involving KCS or its subsidiaries; and other

factors affecting the operation of the business. More detailed information about factors that could affect future events may be

found in filings by KCS with the Securities and Exchange Commission, including KCS’ Annual Report on Form 10-K for the

year ended December 31, 2014 (File No. 1-4717) and subsequent reports. Forward-looking statements are not, and should

not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications

of the times at or by which any such performance or results will be achieved. As a result, actual outcomes and results may

differ materially from those expressed in forward-looking statements. KCS is not obligated to update any forward-looking

statements in this news release to reflect future events or developments. All reconciliations to GAAP can be found on the

KCS website, kcsouthern.com/investors.


Initiation of Railway Age in México at Veracruz

1837

1873

1881 1908 1937

Veracruz route to México City is complete

US & México connected at N. Laredo/Laredo

1898

N. Laredo to México City is complete

FerrocarrilesNacional de México (FNM) is Created

1926

FNM returns rail lines to original owners

Rail lines are officially expropriated

1987

Divisions created and path to modern network laid

3

Railroading is no New Rodeo in México

1996

Concessions awarded privatizing the operations of most rail lines


Capital Has Flowed into México

Since 2008, KCS has invested over to $275

million on the Houston to Lazaro

Cardenas cross border corridor alone.

100 mile new mainline addition at Victoria

-Rosenberg

Significant expansion and upgrade at the

Salinas Victoria (Monterrey), and Puerta

Mexico terminals

Investment and expansion of the

intermodal facility at Interpuerto in San

Luis Potosi

Track and parking expansion at the Toluca

Auto Terminal

Upgrades and expansion at the Port of

Lazaro Cardenas

Continued investment in lift equipment and

technology at all locations

4

$2.3 Billion USD since 1997


The Importance of Laredo

Source: KCS Market Research derived from BTS Data

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Laredo, TX El Paso, TX Eagle Pass, TX Nogales, AZ Otay Mesa, CA Hidalgo, TX Brownsville, TX

Pe

rce

nt

of

Sh

are

of

Sh

ipm

en

ts

2012 U.S. Surface Trade by Border CrossingImports and Exports Volume


Where do we Grow to Support the Border?

6

UP

UPKCSR

KCSMKCSM


Where do we Grow to Support the Border?

7


UP’s predecessor reaches Brownsville

1904

1905

1908 2004

KCSM’s predecessor reaches Matamoros

Original US permit issued for a rail bridge across the Rio Grande

1910

Original rail bridge built (owned by the FNM and StLB&MRailway)

Presidential Permit issued to Cameron County on Oct 1st

8

Brownsville/Matamoros Historical Overview

2015

New rail bridge nearing completion


Current Operation

KCSM and UP Operate to and from

the International Bridge


New Brownsville/Matamoros Bridge

Courtesy of Cameron County


LINE “F”

Existing

Rail Bridge

Rail Bypass Project in MATAMOROS, TAMPS.

FOTOS 18 OCT 2012 1/1 CONEXION SUR.pptxFOTOS 14 DIC 2012/9VIA EN PUENTE 10+600.pptx


Celaya Rail Hub


Lázaro CárdenasGrowth Plans

Bulk

Facility

New Container

Terminal

New Auto

Terminal

Expanded

Container Terminal


Expansion started in

2013 and will be

completed in 2030

Total Investment - $4.6B

New railroad bypass will

significantly improve

both railroad’s ability to

serve the port

14

Veracruz gets its Mojo Back

Source: Mexican PNI (Plan Nacional de Infraestructura)

Port of Veracruz Modernization PlansCurrent and Future Rail Access


42%

48%

6%4%

Maintenance Growth / Locomotives

Regulatory IT / Other

15

KCS Investing for Growth, Asset Utilization, Safety, and Service

2015 Capital Expenditures Investing in Growth - Equipment• All 85 locomotives ordered in 2014 have been delivered.• 50 additional locomotives ordered for 2015 with the first

deliveries scheduled for February.• Secured options for 2016 and 2017 locomotive orders.• Expansion of grain and automotive fleets.

Investing in Growth - Capacity

• Crude oil network mainline and capacity improvements.• Kansas City IFG Terminal expansion to facilitate interchange. • Jackson, Mississippi in year two of a three year expansion

project to nearly double capacity.• Wylie, Texas intermodal facility to open mid-year.• Sanchez Yard three year, $60M+ expansion project.• Seven new or expanded sidings to improve line of road fluidity.

Investing in Maintenance – Velocity Benefits

• Track programs between Shreveport and Baton Rouge to provide increased speeds from (40 to 49MPH), benefitting crude shipments.

• CTC implementation on the Laredo subdivision and in Mexico to improve fluidity and increase maximum allowable speed.

• Continued mainline improvements between Monterrey and Nuevo Laredo, MX, allowing for speed increase to 68MPH.


Efficiency of the Mexican Railways

Source: IDB (2013) Observatorio de Carga y Logística, “Información Estadística sobre los Sistemas Ferroviarios Latinoamericanos”.

Locomotive productivity of Latin American Railways

(million t-km per fleet locomotive)


So, why do we spend so

much time debating

México’s capabilities?

17


Courtesy of Pro México


México is too economically

important for you to ignore

19


2013 Foreign Direct Investment (FDI) reached $39.2 Billion (120% increase vs 2012)

Manufacturing sector was key in 2013 with 72.3% investments

85% of FDI was registered on states where KCS has access

2014 FDI trough June reached $9.7 Billion.

– 71.8% manufacturing .

From 2000 to 2014 FDI accounts $354.3 Billion

20

Foreign Direct Investment (FDI) in México

Source: KCS Market Research based on Secretaría de Economía de México.

Data includes all economic sectors. (2013 & 2014 FDI)


México’s free trade agreements foster a strong business growth environment

21

Guatemala

El Salvador

Honduras

Nicaragua

Costa Rica

Colombia

Bolivia

Chile

Uruguay

Peru

Venezuela

Japan

European Union

Iceland

Liechtenstein

Norway

Switzerland

Israel

Canada

United States

SOURCE: DOC, Bloomberg Businessweek, World Bank, Mexico Today, J.P. Morgan, U.S. Bureau of Labor Statistics, SICE, Goldman Sachs, Boston Consulting Group, Reuters

21


México Automotive Plants


México Energy Reform is a Reality

23

Reform could drive an increase

in rail shipments in the following

ways:

Increased LPG and refined products could be the first growth market

Movement of steel tubing for new pipelines

Importation of frac sand from the United States

Crude by rail from new producing regions to refineries

Increased intra-México moves of diesel, LPG, gasoline and fuel oil

Reform could reduce power generation cost, further

improving Méxican competitiveness and strengthen near shoring thesis


Private Investment in Transload Terminals

2424

70 +

14 New Transload Facilities

added in the past 5 years:• Sodisa, NL• Industrias Kam, NL• Puerta del Norte; NL• Regiomontana de Acero, NL• Bulkmatic García, NL• FR Terminales García, NL• Bulkmatic, QA• Rehrig Pacific, QA• LITION, QA• LIT, Chichimequillas QA• Transilmex, SLP• KTN Tlaltepoxco, HG• LC Logistics, MH• TPP, MH


Questions?

25

Documents

To México & Beyond...shipped by rail; loss of the rail concession of KCS’ subsidiary, Kansas City Southern de México, S.A. de C.V.; the termination of, or failure to renew, agreements