Corporate Citizenship

Kansas City Southern has limited annual political action that focuses on responsible corporate citizenship in the states and communities where it operates. Proposals to change existing laws, enact new laws or other policy initiatives can impact KCS' business, affect its employees, customers, and the communities where KCS operates. KCS believes it is important to participate in this process.

In jurisdictions where the use of corporate funds is allowed by law, KCS contributes limited corporate funds through its KCS State Rail PAC and through local political action committees related to local community service organizations where KCS has membership, and to party committees. On occasion, the company makes direct contributions to local ballot issue campaigns.

In all cases, these contributions and any subsequent disbursements by these PACs are required to be publicly reported by the PACs to the relevant public disclosure authorities as required by state law and retained by them for public disclosure. In addition, KCS retains annual political action reports, which are also posted on the KCS website.

KCS policy does not allow corporate funds to be used for, or provide corporate contributions to support:

• 527 independent expenditure groups or in support of federal candidates;
• 501(c)(4) organizations for political contributions;
• Federal campaigns regulated by the Federal Election Commission.

Year-End Corporate Contributions Public Report
Annually, the company reports on its website its year-end corporate contributions to all registered political action committees, including the KCS State Rail PAC, other political action committees, party committees, issue advocacy committees, or any other campaign committees. This report and the company's policy regarding corporate political action is reviewed by the Company's CEO and General Counsel and presented annually to the Executive Committee of the KCS Board of Directors, which is comprised of a majority of independent directors.

The KCS State Rail PAC
Contributions by the KCS State Rail PAC are made only to a candidate or party committees in state or local elections where corporate contributions are allowed under law. It files public contribution and disbursement reports in compliance with state law. KCS Internal Audit reviews these receipts and disbursement reports quarterly to coincide with each reporting period and provides a report of its review to KCS management.

The KCS State Rail PAC receipts and disbursements annual budget is administered by the Administration and Corporate Affairs Department of the Company with input from a committee of its local company representatives in states where KCS operates. All KCS State Rail PAC contributions must be approved by the EVP – Administration and Corporate Affairs and are subject to public disclosure reporting and quarterly review by KCS Internal Audit. Corporate contributions to the KCS State Rail PAC by the company are reported annually on its website. This report is reviewed by the Company's CEO and General Counsel and presented annually to the Executive Committee of the KCS Board of Directors..

Other Related Community Service Organization PACs and Issue Campaigns
KCS provides limited support to political action committees related to community service organizations where KCS has membership including, The Greater Kansas City Chamber of Commerce "Biz PAC", The Kansas City, Missouri Downtown Council "Downtown PAC", and The Missouri Chamber of Commerce and Industry "Missouri Chamber PAC". These PACs are required to file publically their own receipts and disbursement disclosure reports.

KCS has contributed to local ballot issue campaigns in Kansas City and in Missouri. These campaigns too have reporting obligations under state law.

Contributions of KCS corporate funds to political action committees related to community service organizations where KCS has membership and contributions to any local ballot issue campaigns are overseen by the Administration and Corporate Affairs Department of the Company and reported to the Company's CEO. Contributions are made strictly to promote the best interests of the Company and communities in which it operates without regard to any personal political views or interests of Company management.

Trade Associations
As a U.S. Class I railroad, KCS is a member of the Association of American Railroads (AAR), the primary trade organization representing railroads in the United States. The AAR has established a political action committee, RailPac that advocates on behalf of the rail industry. Neither KCS nor the KCS Rail PAC contribute to the AAR's RailPac. KCS makes specific notice to AAR that KCS' membership dues should not be used for political action purposes or to support or oppose candidates for elective office.

KCS belongs to other state railroad associations, chambers of commerce, and associations in states where it operates. It is KCS' policy that any membership dues that it pays to such associations not be used for political action.

2020 Year-End Corporate Contributions Report