Csx Corporation · NASDAQ:CSX
Csx — Baird's 2012 Industrial Conference
13 slides from Csx's conference presentation, Nov 7, 2012
Slide 1: Forward-Looking Statements
1 Forward-Looking Statements This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, co
Slide 2: Leading transportation company in North America
Leading transportation company in North America Top-tier performance sustained since 2003 — Earnings growth, margin expansion, distributions to investors and stock returns Economic environment in the U.S. has moderated — CSX has proven it can deliver superior results, even in challenging environ
Slide 3: Performance is top-tier among peers and S&P 500
Performance is top-tier among peers and S&P 500 Operating Income Operating Margin Margin Expansion Earnings Per Share 2003 – 2011 CAGR 2003 – 2011 BPS 2003 – 2011 CAGR 19% 1,774 26% 11% 9% 14% 662 303 3% CSX Peers S&P CSX Peers S&P CSX Peers S&P Top 19% among S&P 500 Top 8% among S&P 500 Top 8% amon
Slide 4: Framework for capital deployment through 2015
Framework for capital deployment through 2015 Capital Capital Investment Investment Dividends Buybacks Investment is the first priority Dividends are the second Buybacks are the third priority of balanced approach priority of balanced approach of balanced approach Historical average investme
Slide 5: CSX's business base diverse across many markets
CSX’s business base diverse across many markets 2012 Year-to-Date Volume 5.4 million Units Automotive Metals Chemicals 7% 4% 7% Phosphates 5% Agriculture 6% Food & Consumer 2% Intermodal Forest 4% 38% Emerging Markets 6% Domestic Coal 14% Export Coal 7% Note: Volume data is through week 43, ending O
Slide 6: Economic environment has moderated from first half
Economic environment has moderated from first half Gross Domestic Product ISM Manufacturing Actual Forecast Purchasing Managers Index 70 2.0% 2.0% 1.6% 60 1.3% 50 40 30 Q1 '12 Q2 '12 Q3 '12 Q4 '12 2007 2008 2009 2010 2011 2012 Industrial Production Index ISM Manufacturing Actual Forecast Customer In
Slide 7: Strong service foundation for inflation-plus pricing
Strong service foundation for inflation-plus pricing On-time Originations On-time Arrivals Quarterly 6-month MA 12-month MA Quarterly 6-month MA 12-month MA 82% 89% 79% 82% 72% 79% 70% 75% Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Note: Fourth Quarter 2012 performance is based
Slide 8: Long-term trends in the U.S. are favorable for CSX
Long-term trends in the U.S. are favorable for CSX Eastern U.S. highway congestion favors rail transportation long-term Freight demand projected to grow significantly by 2040 Highways already congested, especially in the eastern U.S. Recession amplified funding challenges for highways CSX Terr
Slide 9: Rail demand also benefits from global trends
Rail demand also benefits from global trends Global Population Global GDP U.S. Import/Export in Billions in Trillions in Trillions $112 $7.9 7.8 7.4 $84 $5.7 7.0 $63 $4.2 $46 6.6 $2.6 2005 2010 2015 2020 2005 2010 2015 2020 2005 2010 2015 2020 Source: UN, Department of Economic and Social Affairs, P
Slide 10: Change in China coal demand creates opportunity
Change in China coal demand creates opportunity China Coal Trade Metric Tons in Millions Net Exports Net Imports 254 China has transitioned from being a net exporter of coal to a significant net coal importer 208 147 104 (2) (5) (25) (46) (69) 2004 2005 2006 2007 2008 2009 2010 2011 2012F Sources: E
Slide 11: Wrap-up
Wrap-up . . . Remain on-track for earnings growth in 2012 — Reflects eighth year of improvement over last nine years Economic environment in the U.S. has moderated — Company will stay focused on pricing, productivity, resource alignment CSX has strong foundation to support long-term growth — N
Slide 12: GAAP Reconciliation Disclosure
Appendix 23 GAAP Reconciliation Disclosure CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures used to manage the company’s business that fall within the meaning of Regulation G
Slide 13: GAAP Reconciliation
GAAP Reconciliation Full Year 2003 Results Dollars in millions 2003 Operating Income $ 499 Casualty Reserve Adjustments 232 Legal Settlements 108 Restructuring Charge 22 Comparable Operating Income $ 861 Operating Ratio 93.4% Casualty Reserve Adjustments (3.1%) Legal Settlements (1.4%) Restructuring