Paul A. N. Butcher - Vice President-Investor Relations Luc Jobin - President, Chief Executive Officer & Director Michael A. Cory - Chief Operating Officer & Executive Vice President Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President Ghislain Houle - Chief Financial Officer & Executive Vice President

Fadi Chamoun - BMO Capital Markets (Canada) Eric Morgan - Barclays Capital, Inc. Walter Spracklin - RBC Dominion Securities, Inc. Ravi Shanker - Morgan Stanley & Co. LLC Cherilyn Radbourne - TD Securities, Inc. Scott H. Group - Wolfe Research LLC Turan Quettawala - Scotia Capital, Inc. (Broker) Thomas Wadewitz - UBS Securities LLC Brian P. Ossenbeck - JPMorgan Securities LLC Jason H. Seidl - Cowen & Co. LLC Chris Wetherbee - Citigroup Global Markets, Inc. (Broker) Steve Hansen - Raymond James Ltd. (Broker) Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker) Justin Long - Stephens, Inc. J. David Scott Vernon - Sanford C. Bernstein & Co. LLC Kenneth Scott Hoexter - Bank of America Merrill Lynch Bascome Majors - Susquehanna Financial Group LLLP

Welcome to the CN Second Quarter 2016 Financial Results Conference Call. I'll turn the meeting over to Paul Butcher, Vice President, Investor Relations. Ladies and gentlemen, Mr. Butcher.

Thank you, John. Good afternoon, everyone, and thank you for joining us. I would like to remind you of the comments already made regarding forward-looking statements. With me today is Luc Jobin, our President and Chief Executive Officer; Mike Cory, our Executive Vice President and Chief Operating Officer; JJ Ruest, our Executive Vice President and Chief Marketing Officer and Ghislain Houle, our Executive Vice President and Chief Financial Officer. In order to be fair for all participants, I would ask you to please limit yourselves to one question. I will be available after the call for any follow-up questions. It is now my pleasure to turn the call over to CN's President and Chief Executive Officer, Mr. Luc Jobin. Luc Jobin - President, Chief Executive Officer & Director: Thanks very much, Paul, and I would like to welcome all of you to CN's second quarter call. Before I get into the detailed results, let me first express my deepest appreciation to Claude Mongeau, our former CEO. Claude's career at CN has been nothing short of exceptional as he has spent the last 22 years working with the likes of Paul Tellier, Michael Sabia and Hunter Harrison to mold this company and help CN achieve great success over the years. As CN's CEO for the last six plus years, he also has been instrumental in helping us raise our game by evolving our strategic agenda to one of operational and service excellence while positioning CN as a true supply chain enabler. That agenda still resonates today with our customers and helps us gain traction in the marketplace even in difficult economic circumstances. So rest assured we will continue with this strategic trust moving forward. I also would like to give our appreciation to Jim Vena who has led the operating team…

Thank you, sir. Our first question is from Fadi Chamoun from BMO. Please go ahead.

Good afternoon. Luc Jobin - President, Chief Executive Officer & Director: Afternoon.

So a quick question on the decremental margin and how should we think about the incremental margin when volumes start to recover. I mean historically we would think about sort of a classic rail recession that when your volumes are down, we see the operating ratio and the margin compress. And then ultimately we see the positive operating leverage on the other end of it. But you have done an excellent job, I guess, through this downturn in volume in terms of minimizing the decremental margin. Is this then a function of the type of freight that has come down? And how should we think about the incremental margin sort of on the other end of this volume story? Luc Jobin - President, Chief Executive Officer & Director: Fadi it's Luc. Listen, that's always a bit of a tricky equation to project. I mean of course it depends on what the recovery looks like. If we're continue to see a slow growth environment, then that may encourage some of the factors to remain somewhat contained. So, as an example, if the price of oil starts to climb back up and we see a very sudden and amplified recovery, then that could change the condition. So in a nutshell, it would all depend in terms of where and how progressive the economy moves, because obviously, we can have incremental margins that are quite attractive if you're looking at just slow, steady growth. If it starts to leap, then we have to get back into getting more train starts and calling back crews and all of that. So in a nutshell, we're going to have to play it out. I don't have a crystal ball, so it's pretty tough to call at this point. And we'll have to see what the contour of the recovery might look like.

Okay. Just sort of a follow-up. So if we were to see the volume recovery being led by some of the consumer. And it looks like you have some nice pieces of that intermodal business that could begin to work going into next year. So if it's intermodal and sort of merchandise industrial kind of carloads that leads us into the recovery say into 2017, is it reasonable that we should sort of expect that incremental margin we saw in the prior cycle? Or is there anything different about what we've seen this time because you're running at a mid 50%-ish sort of operating ratio right now, and so the question is, this sort of the cost curve came down permanently at this point? Luc Jobin - President, Chief Executive Officer & Director: Fadi, I mean, the two factors just to talk a little bit about or generally. One is as you know the impact of the lower fuel prices has contributed to some of the reduction, so that's a factor which we don't control and if and when that starts to climb back up it will have an impact on everybody's OR. The second comment is really with respect to the way we think about operating ratio. For us it's all about growing the business, growing the franchise and in profitable way over time. So we are not focused single handedly on the operating ratio. We are always looking to drive the business, drive the top line in a way that's sensible for the long-term. And so again it depends what the competitive conditions are like and what the mix of the recovery entails. So again we're pragmatic. So we look at the business that's out there and we make decisions for the longer haul which is to say that we wouldn't turn away from business that might be slightly higher, if it makes sense. We look at more factors than just the OR in driving our future successes. So not exactly the quantitative number that you're looking for but directionally I think it gives you a sense for how we think about it and then we look at how the game moves on and we make the right decisions, at least for us for this franchise. Thanks very much, Fadi.

Thank you.

Thank you. The next question is from Brandon Oglenski from Barclays. Please go ahead.

Good afternoon. This is Eric Morgan on for Brandon. Thanks for taking my question and congrats to everyone on the team. Luc Jobin - President, Chief Executive Officer & Director: Thanks, Eric.

I just wanted to ask a quick one on the outlook. You kept your guidance unchanged but it sounds like you're now expecting some incremental tailwinds from pension and depreciation assuming that depreciation benefits carry forward. I guess is the delta there just kind of incrementally softer demand in a tougher environment or would you say your outlook is potentially conservative with the new tailwind? Ghislain Houle - Chief Financial Officer & Executive Vice President: Yeah. Eric, this is Ghislain. Listen, I think our outlook is our best foot forward. As you know, the markets are pretty volatile. The visibility that we have on some of the markets out there and commodities is not all that clear. And you know when we look at it, I wouldn't say that our outlook is conservative. I would say that this is our best foot forward and this is the best outlook that we've put out there. Luc Jobin - President, Chief Executive Officer & Director: Eric, I think just to add a little bit to what Ghislain said, keep in mind that we will be facing some fuel surcharge significant headwind in the second quarter. So, there's puts and takes in terms of where and how the cost pressures will be. We do expect slightly easier comps versus last year's second half. But on the cost side, we really were pushing hard last year so it'll be a little bit tougher on top of the elements that Ghislain outlined. So all in all, as we typically do, we try to put the guidance in a reasonable place, and as far as we can call it right now, that is where that's where we are. Thanks very much, Eric.

Thank you.

Thank you the next question is from Walter Spracklin for RBC. Please go ahead.

Thanks very much. Good morning or good afternoon, everyone. Luc Jobin - President, Chief Executive Officer & Director: Good afternoon.

I guess my question comes back to Fadi's question on incremental margin but perhaps on the labor front. And, Mike, perhaps for you here as you look at the volume guidance that or the volume levels that you're guiding toward, your staffing level right now, I mean, it's down substantially down to this trough around 22,000 at the end of the period. Are you looking at re-staffing up from this point forward to the end of the year given the upward shift in volume? And after that, would you really be staffing on a one for one in terms of percentage increase of staffing with volume as you go from there or should we be looking at it a little differently? Michael A. Cory - Chief Operating Officer & Executive Vice President: I think you're – I wouldn't say a one to one, Walter. I think as volume comes, we put it in the mix and we take a look at first of all what we can extract from obviously minimizing train starts and/or any operational activity we have to do. So we're going to see a requirement. I wouldn't say it's going to be a big requirement. We have a requirement for the grain haul that's going to take place. We plan for that every year. And we have winter coming, so we're going to do something, but they'll all be in line with what we spoke about in how we do achieve our operating ratio, and it's more than just the volume that comes. We look for innovation, opportunity, and at the end of the day, we look to make sure we maintain the service level that our customers need.

But a degree of upward staffing from this level to the end of the year is what you're expecting? Michael A. Cory - Chief Operating Officer & Executive Vice President: I would say so, Walter. Yes.

Okay. Great. Michael A. Cory - Chief Operating Officer & Executive Vice President: Keep in mind, Walter, we do face winter, so we typically like to staff up a little bit because the demands are much higher. Ghislain Houle - Chief Financial Officer & Executive Vice President: Especially compared to last winter, which wasn't that tough.

Okay. Luc Jobin - President, Chief Executive Officer & Director: Thank you, Walter.

Thank you.

Thank you. The next question is from Ravi Shanker from Morgan Stanley. Please go ahead. Ravi Shanker - Morgan Stanley & Co. LLC: Thanks. Good evening, everyone. Luc, congratulations to you and the rest of the team on the new responsibilities. Just wanted to get a sense of what your top three priorities might be, and if there's any changes versus your kind of previous direction or any new focus areas? Luc Jobin - President, Chief Executive Officer & Director: Yeah, thanks, Ravi. I mean, the – as I mentioned earlier, I mean, the strategy is not changing, so we're staying true to the course we set out under Claude's leadership. So we continue to focus on, again, striking a balance between operational and service excellence. Our focus on safety is relentless, so that's – those things are pretty well set. What we don't always have is the luxury of calling what the market's going to be like. And clearly, the recent times have been more challenging, and we do expect that we're going to probably see some moderate growth, moderate to sluggish growth going forward. So we're taking a slightly more defensive posture. So issues of cost management, productivity, are being played up and have been played up over the last 12 months to 18 months. Other than that, we'll continue to leverage innovation. I think that's a big part of what differentiates CN, a lot of teamwork going on. We're also looking at where and how we can leverage technology in a constructive way, whether that's on safety, whether that's actually looking at things like big data and leveraging that in terms of getting better outcomes in terms of safety, in terms of mechanical maintenance and engineering, maintenance projects. So I think, again, same general broad themes, but…

Thank you. The next question is from Cherilyn Radbourne from TD Securities. Please go ahead.

Thanks very much, and good afternoon. I wanted to ask you about Canadian grain. It sounds like you're ready to handle a very large crop. I just wonder if you could comment on the readiness of the other participants in the supply chain, and just what implications you think that another very large crop might have on the regulatory environment as it relates to volume minimums and the extended interswitching radius, et cetera. Luc Jobin - President, Chief Executive Officer & Director: Yeah, I think – Cherilyn, this is Luc speaking. We are well prepared to address the challenges. Now, again, a lot of what we've said over the last several years, especially since we had the last big crop, was that there are a number of factors which lead to the success of the entire supply chain. So we're an important player. But there are – it's critical that the elevators in the country as well as the grain terminals at Tidewater work hand in hand with us. So having 24/7 operation, that's critical. Making sure that we're in sync and we're understanding where the bottlenecks may come up, that's critical. I hate to say that, but winter does occur, and it does create challenges for all of us in the supply chain. So what we're trying to do is to reach out to our customers and all of the supply chain partners, to try to, adjust as much as we can our operating plans to maximize the throughput. So that's what Mike and his team as well as JJ and his group are trying to achieve. And it takes really – it takes everybody at the table, as opposed to pointing fingers to actually open up and share what the operating plans are and to do certain things. I think we're trying as well to get folks to perform certain activities so that they can better withstand winter and they can better achieve higher throughputs. So Mike, I don't know if you want to add... Michael A. Cory - Chief Operating Officer & Executive Vice President: Just to echo – Cherilyn it's Mike here. Just to echo Luc's comments, we've been working extremely close with both the operating team and JJ's team in not just reaching out to the customers but sitting down and having a strong process plan in terms of everything from communication to how we're going to actually set up our switching plans at the port, how we're going to deliver to the country. We've got a good mix in how we're going to go about it in terms of sets and our scheduled grain plan, so we're not only excited, but we see with the grain customers, that what the supply chain's coming tighter together all the time. So we're looking forward to it.

Great. Thank you. That's my one. Luc Jobin - President, Chief Executive Officer & Director: Thank you, Cherilyn. Michael A. Cory - Chief Operating Officer & Executive Vice President: Thank you, Cherilyn. Ghislain Houle - Chief Financial Officer & Executive Vice President: Thank you.

Thank you. The next question is from Scott Group from Wolfe Research. Please go ahead.

Hey. Thanks. Afternoon, guys. So JJ, I think you made a comment that you've made some inroads into the volumes for 2017 in China. I presume you're talking about some of the international intermodal contracts coming up. I was wondering if you can give any more color about what you mean. Are you saying that you've started to re-sign some of the contracts? Or just making progress to that point? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: So we always re-sign some contracts, Scott, and we did sign another contract in the last few weeks. And we also signed another contract that will start with us in January 2017.

So would you expect your international intermodal share to be a net gain in 2017? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: That would likely be the case.

Sorry, I missed that, JJ. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: That would likely be the case.

Okay. Great. And then – can I just clarify just two quick things. What was the depreciation benefit in the quarter? I don't know if I got the number. And then, JJ, can you just share your third quarter and fourth quarter volume expectations to get to down mid single? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Without getting into quarterly numbers, sequentially the second quarter was our bottom in terms of volume. And in July, we're not sinking anymore. We're flat and slightly kind of going up slowly. And between now and year end, hopefully from month to month, quarter to quarter, we're going to improve sequentially but year-over-year, we're going to be down versus last year. And I don't know exactly at what point the sequential improvement will actually lap. All in the guidance is basically reflective of that.

Okay. Ghislain Houle - Chief Financial Officer & Executive Vice President: And, Scott, on the depreciation, the benefit that came from depreciation – this is Ghislain – from the benefit that came from depreciation studies in the quarter was CAD 10 million.

Okay. Great. Thank you, guys. Appreciate it.

Thank you. The next question is from Turan Quettawala from Scotiabank. Please go ahead.

Yes. Good evening, everyone, and congratulations all around on the promotion as well as on the good quarter here. I guess my question's on CapEx. A few of the rails have now suggested that CapEx should trend down here a little bit over the next few years. I know you are working with some specific projects. But can you give us a sense, maybe, of how CapEx will trend here over the next few years? Ghislain Houle - Chief Financial Officer & Executive Vice President: Yeah, I mean we're – this is Ghislain. So we're always looking at CapEx, obviously. As you know, this year we're keeping our CapEx at the CAD 2.750 billion. We're taking the opportunity to invest in our rail and in what we call our basic infrastructure. And Mike mentioned the fact that if volumes are down, the fact that volumes are down a bit, then it allows us to deploy that capital much more productive, mostly related and driven by better work blocks for our gang. This year, as you know, we have about CAD 300 million to CAD 400 million slated for new locomotives, the 90 new GE locomotives that we will receive which obviously we are not going to have any CapEx on this next year. So, stay tuned we will look at this, and again on our investments we're always looking for good projects. So if we've got good projects that bring a good return to the company, then obviously we will look at them closely and we will put CapEx to those. But stay tuned, just to let you know the CAD 300 million to CAD 400 million of locomotives are not going to be required next year, and we'll see where we're going to be next year on the CapEx front. Luc Jobin - President, Chief Executive Officer & Director: Thanks, Turan.

Thank you.

Thank you. The next question is from Tom Wadewitz from UBS. Please go ahead.

Yeah. Good afternoon, Luc, Mike, Ghislain. Congratulations on the new positions and the promotions. The – let's see, wanted to ask you a little bit more on the intermodal. I know you've commented that some – where I might have missed this, where do you think the inventories are? Have they kind of started to come back, maybe retail inventories, and then I guess on the comment JJ that you mentioned about some share gain. Is that in Canada? Or is that the U.S. business? Or how might we think about that? So some thoughts on intermodal. Thank you. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Thank you, Tom. It's JJ speaking. So, on the retail inventory it might also help on the manufacturing sector, I think we look at the same stats as you're looking – same statistics as you're looking, they're not really improving a whole lot. There's still a lot of product out there in terms of the supply chain of either retailer or manufacturing sector. As it relate to some of the gain we gave for 2017 I'm not going to get into the detail of where the product is going at this point. We'll talk about that sometime early next year. It's on the West Coast.

Okay. So do you think intermodal kind of improves, like gets less worse through the year as you look third quarter and fourth quarter? Or how would you look at – kind of how intermodal fits into your broader guidance comment? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: We have a bit of a special situation at CN with we're a major player at the Deltaport in Vancouver. And in construction, the construction is going ahead. We don't have the same capacity that we had last year at the same time to pull product out of Deltaport, we are working with the terminal operator in our supply chain mindset to truck every day containers from their port to our domestic yard to supplement the lost capacity during the construction phase. So you've got to keep that in mind. Rupert should grow. Montreal is flat. Halifax a good story, and Mobile is a new story so it can only go up. But – the fact Deltaport is going through construction is creating some challenge for us over the next six months. But broadly, you would think the market would slowly improve. But it's not going to be gang-busters for anybody on the West Coast.

Okay. Thank you. Luc Jobin - President, Chief Executive Officer & Director: Thank you, Tom.

Thank you. The next question is from Brian Ossenbeck from JPMorgan. Please go ahead.

Hi. Good afternoon. Thanks for taking the call. So, JJ, you mentioned 2Q is probably going to be the bottom for crude by rail. I was looking at the spreads it's moving back now close to $10 a barrel. Is that sufficient to move Western Canada to the Gulf Coast? And how do you see pipeline versus rail capacity when you look out into 2017? Do you think that growth can start to pick up again around that time? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Regarding the crude by rail today, the volume is still weak, so maybe the spread is widening, but we're not getting the phone call about moving the train. So that's so far it doesn't mean anything. Everything we move, is from Western Canada. We don't really move anything from the back end, whether Saskatchewan back end or the U.S. And for 2017, frankly it's too early. Right now you know crude by rail is not the horse you want to ride very hard. If the demand is there, the demand is there. I was looking at my stats during the second quarter and third quarter. We're getting our fair share of what's available to Canadian railroad, and slightly more. So it's a question of how big will the market be. But this is not something that our guidance for example, is depending on.

Okay. And if you can just give us a quick update on the competitive dynamics that you mentioned last quarter, specifically in some of the energy markets? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: So I think what we said last quarter needs to be said but we're not going to say anymore. And regarding crude by rail the biggest competition we have is the pipeline. Pipeline is really is the king. That's who dominate the marketplace and that's the reason why our carload is down to the level it is right now. Luc Jobin - President, Chief Executive Officer & Director: All right. Thanks, Brian.

Okay. Thank you.

Thank you. The next question is from Jason Seidl from Cowen. Please go ahead. Jason H. Seidl - Cowen & Co. LLC: Thank you, operator. Mike, JJ, Ghislain, how are you guys today? Michael A. Cory - Chief Operating Officer & Executive Vice President: Very good. Thank you. Ghislain Houle - Chief Financial Officer & Executive Vice President: Very good. Thank you, Jason. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Very good. Thank you. Jason H. Seidl - Cowen & Co. LLC: Just quick question going back on the crude side. I saw today that there was a new ruling taking out the DOT 111 cars a couple of months early. I know there's under probably 30,000 of these cars out there. What's that going to do to at least third quarter? Are you guys going to be able to shift some of those around or how many are running on CN's network at the time? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: None of them are moving crude at CN network at this time and we don't need that fleet there. The fleet of crude right now and for North America is long. We've got cars parked and it's very good cars (50:41). They're all being parked. So this is good news for society and I think it's good news for the railroad, from a safety point.... Jason H. Seidl - Cowen & Co. LLC: Fantastic. In terms of when you mentioned that obviously there's a little more competitive environment across the board for the rails and for all forms of transport here it seems like that's across North America. What have you seen in terms of trucking competition towards the end of the quarter and here into July? Has that lessened a bit? Because we're getting some sense from some of the people that have reported on the truck load side that capacity is starting to tighten back up a little bit again. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: I think for the average, such a short period of time I'm not able to see whether or not the last four weeks there have been a bit of a shift so I wouldn't be able to really give you a sense whether there was any turning point in the last month, necessarily. Luc Jobin - President, Chief Executive Officer & Director: Okay. Thanks... Jason H. Seidl - Cowen & Co. LLC: Okay. That's all I had, gentlemen. Thank you. Luc Jobin - President, Chief Executive Officer & Director: Thanks, Jason.

Thank you. The next question is from Chris Wetherbee from Citi. Please go ahead.

Hey, great. Thanks. Good afternoon. Wanted to ask a question just coming back to CapEx for a moment. So, Luc, I think you had mentioned that you're looking forward to kind of a moderate to sluggish growth environment and just thinking about sort of capital intensity maybe beyond 2017 but a little bit further than that. You think about the locomotives maybe coming out next year. But bigger picture, should we be thinking about CapEx as a percent of revenue kind of easing down from the levels we've been at? And just kind of given the sense of with the volume outlook and with the resource that you now have, how do you think about it a little longer term? Luc Jobin - President, Chief Executive Officer & Director: I think, Chris, longer term it's – we would expect to see capital coming down. We do have obviously a very large and substantial project which is the implementation of Positive Train Control in the U.S. which will for probably the next couple of years be significant. But I figure it's going to run for the next couple of years about at the level where it is currently this year. And so less mode of power requirement and then it's really going to be dependent upon what happens in terms of the business. We do have a good car supply, so it's this is not an area that we're going to be again very stressed on. But we're also looking at the future and as was pointed out by Ghislain, we do look at opportunities and as I talked a little bit about the application of technology within our space, the leveraging of big data, those kinds of things are part of our future. And so if we may continue to invest a little bit more in that area, it's obviously not of the same magnitude but we do see opportunities out there and we've been known over the last several years not necessarily to be following everybody just because that's the way the story goes. So clearly we'll be at a lower level in terms of percentage or revenue but we constantly look for opportunities to deploy the capital smartly in order to gain a long term advantage and so that's kind of how we think about it longer term.

Just one quick follow-up to that, when you think about sort of the capacity you have, I know this is a very difficult question to answer but I'm going to ask it anyway. When you think about what type of volume you can take with sort of the horse power, the locomotive fleet that you have now, the car fleet that you have now, any sense, rough sense of maybe how we can think about the incremental volumes the network can handle? Michael A. Cory - Chief Operating Officer & Executive Vice President: It's all about – this is Mike here. It's all about speed, and the size of train. And so it's kind of hard in terms of – and I think Luc mentioned earlier having a crystal ball as to what the volumes are. But to answer your question, yes, there is more capacity out there. At what rate does that capacity get swallowed up? I mean, it's relative to the amount of volume that comes. So it's a little difficult at this time, but there is capacity. Luc Jobin - President, Chief Executive Officer & Director: Let's just say that we're not worried about that as being a constraint for quite some time. And again, if we sense that things are really picking up, we've been known to, have a pretty good eye for anticipating and deploying the capital five minutes before midnight, as opposed to five after midnight. So, we keep at it – we obviously are always mindful of that, and – but in the short to mid-term, that's not going to be a problem. Michael A. Cory - Chief Operating Officer & Executive Vice President: And just to add one more thing, Luc. We've simulated our entire network by corridor in terms of the capacity that it has by train starts. So it's not difficult to add volume as we see it coming. We have a pretty solid process on how we call P3X and how we determine what we're going to need for assets and where the volume's coming from. So we'll be ready when the time comes.

Great. Thanks for the time, guys. Appreciate it. Luc Jobin - President, Chief Executive Officer & Director: Thanks, Chris. Michael A. Cory - Chief Operating Officer & Executive Vice President: Thank you.

Thank you. The next question is from Steve Hansen from Raymond James. Please go ahead.

Hey, guys. Just a quick one for me on frac sand. I think you suggested in your commentary that it's now bottomed out as well. I'm just curious here whether you think the visibility or recovery in frac sand carloads is any better than it is in crude, given that, I think, if I'm not mistaken, the fracking intensity has pretty much maintained an upward trajectory through the downturn, and we're also starting to see some early evidence that the rig count is on the rise, at least in some basins. So just trying to get a broader context whether you think the recovery in sand is going to come before crude, and if so, to what magnitude? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Yeah. There is an increase in rig count. Some of it is in crude, some of it is in natural gas. As natural gas price goes up, people will drill and they will find gas, and they will put the gas in the network and the price of gas will start to come down, which is back to whether or not gas will be displaced by coal, which mean that gas would have to be expensive. So I think in the case of CN, as I said in my comments, we're very exposed to gas, gas drilling, that's where we – that's our story in both Western Canada and as well as interchanging in Chicago with the Eastern Railroad. And in that market, we are facing some competition from local sand. People are using more sand than they used to. But they also, in the area of cost saving they are using some cheaper sand, which tends to be trucked locally from local sand pits. So that's kind of the environment that we're in. Sand seems to have reached its bottom. I would be cautious to how fast things climb back up from where we are here. In the case of crude, you're back to really a bigger competitor. I'm not talking in that case, the local, the sand pits, we're talking the pipeline industry and how much capacity they have, and back to the spread and crude prices come back down with the Canadian dollars. So I think this is kind of an old card at this point for the crude.

Okay. Very helpful. Thanks. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Thank you. Luc Jobin - President, Chief Executive Officer & Director: Thanks, Steve.

Thank you. The next question is from Allison Landry from Credit Suisse. Please go ahead. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): Thanks. So, you talked about carloads for the full year down in the mid-single digits. Is that the right way to think about RTMs for the full year or should we be looking for something a little better than that? Just in the last few weeks as the spread between RTMs and carloads look like it's widened a bit. So, any color on your expectations for mix in the second half would be helpful. Thanks. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Okay, Allison, it's JJ. So at CN, one of the issues that drives that spread between RTM and carload is whether or not UTac will restart in late August, because that's a lot of carload and have very little RTM. The story about crude, that was a lot of carload, but driving long RTM. Because when we go with crude, typically we go all the way to the East Coast or the Gulf of Mexico. So you're going to see some noise in our result coming up because of restart of the iron ore mine. And some of our – the Canadian grain should be long haul. You're talking Saskatchewan, Manitoba, to typically Vancouver. But I think right now, they might be – your best bet would be to track our RTM. If you want to have a sense of our volume you'd have a better sense of our volume performance by tracking RTM than tracking our carloads. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): Okay. Thank you. Luc Jobin - President, Chief Executive Officer & Director: Thank you, Allison.

Thank you. The next question is from Justin Long from Stephens, Inc. Please go ahead.

Thanks, and good afternoon. I was wondering if you could provide an update on how many of your current contracts are one-year deals versus multi-year deals. And I was just curious if that mix has been changing at all in this environment? Are you making a push for longer-term deals to secure more revenue visibility? Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: It's JJ, Justin. No, not really. First of all, we don't provide too specific detail to our commercial strategy in that regard, but we have tariff, we have one-year contract, we have three-year contract, we have some longer-term contract, and it's really about the situation itself. And also when we talk about contract, we talk basically yield, yield that lead to operating ratio. Operating ratio means you also get paid fairly for your work, not just cutting costs. And when the business is more attractive, then we're more inclined. When the business is less attractive, then we're less inclined to lock in for a period of time.

Okay. Great. Thank you. Luc Jobin - President, Chief Executive Officer & Director: Thanks, Justin. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: Thank you.

Thank you. The next question is from David Vernon from Bernstein. Please go ahead. J. David Scott Vernon - Sanford C. Bernstein & Co. LLC: Hey, guys, and thanks for taking the question. JJ, I just wanted to talk a little bit about international intermodal and how you get comfortable that the volumes through Rupert are in fact stabilizing? We're just hearing a lot from various steamship lines that they're changing a lot of their vessel strings, whether it's through the Suez or the Panama, and I'm sort of getting a sense that those guys are still trying to figure out how they're going to adapt their networks to some of the larger vessel sizes. I'm just wondering if there's some risk that Rupert might lose some share in the medium-term, not necessarily next week, but over the next couple years. Jean-Jacques Ruest - Chief Marketing Officer & Executive Vice President: So when you look at Rupert – this is – Vernon it's JJ speaking again – the expansion, we don't have it yet. The expansion is really coming on stream in July, roughly July 2017. So as much as we work hard right now to get some business, we wouldn't be able to serve it. We can't take another vessel call. All of the alliance in the world are changing, and the new alliance will come in place July – May 1 of next year. So as you do that, either good things or bad things happen. You could work it for your favor or it could work against you, and obviously in our case of CN, we are trying hard to bring all of the alliance into Rupert, which Rupert could accommodate when it has a second berth in the expansion by July. So our game plan is…

Thank you. The next question is from Ken Hoexter from Bank of America Merrill Lynch. Please go ahead.

Great. Good afternoon. Luc, Ghislain, Mike and Paul, congrats on your new roles, and JJ, good afternoon. Mike, can you just – you talked a bit about the productivity expansion or detraction before. Can you talk – are you at peak on train lengths or how much can you improve from here? And anything on the labor contracts you're still working with? Just want to understand your potential for continued expansion on the margins. Michael A. Cory - Chief Operating Officer & Executive Vice President: Sure, Ken. I'm not going to really give you a specific number on how big trains can get or how many less we need. But there's always room. Just our approach every day in – and we do it every day from 5:00 in the morning on, we're looking at every opportunity we can to increase both length and both the train weight. With our capital purchase of new locomotives, it just makes it all the easier. I hope my team's listening to this, because really, that's what we go after. In terms of contract negotiations, we're – our conductors' contract is up. We're in conciliation with them right now. We're meeting weekly to make sure that we move the process along. We're comfortable that we're – our conversations are going well. And we'll see how it turns out. Luc Jobin - President, Chief Executive Officer & Director: Okay. Thanks very much, Ken.

Great. Thank you Michael A. Cory - Chief Operating Officer & Executive Vice President: Thank you.

The next question is from Bascome Majors from Susquehanna. Please go ahead.

Yeah. Thanks for taking my questions here. Just a housekeeping item. On the expense studies that you did on the pension and the D&A, was that something that was brought on kind of off-cycle by the reduction in volumes and head count or is this part of just a normal kind of update that you guys do periodically in the quarter? Ghislain Houle - Chief Financial Officer & Executive Vice President: Bascome, this is Ghislain. The pension was – is part of our actuarial valuation that we have to do every year which we file with the regulator at the end of June. So this was just a betterment coming from the average service life of our employees to be a tad longer than what we had before and basically that gave us the CAD 16 million of pension credit or pension income in the quarter.

Okay. And on the D&A study, was that something that you guys did? Ghislain Houle - Chief Financial Officer & Executive Vice President: Well we always – we do, Bascome, these studies on a regular basis. And we tackle different classes of assets and sometimes they turn out to be negative. Sometimes they turn out to be positive, and the ones that I referred to happen to be positive in the tune of CAD 10 million in the quarter. But we do these on a regular basis obviously and we have some other scheduled for the end of this year and then next year.

Thank you for the time. Ghislain Houle - Chief Financial Officer & Executive Vice President: Thank you. Luc Jobin - President, Chief Executive Officer & Director: All right. Thanks very much. And this will bring our call to a close. I would like to thank everybody for joining us today. I'll just reiterate that we're very pleased with our second quarter results. I think they demonstrate again the strength of our franchise and the strength of our operating model as well as the power of the team. So we look forward to sharing with you our third quarter results and that call will be scheduled sometime in October. And in the meantime, just we encourage everybody to be safe out there. So thank you very much. And, John, I will turn it back to you to close the call.

Thank you, sir. The conference has now ended. Please disconnect your line at this time and we thank you for your participation.