Csx Corporation · NASDAQ:CSX
Csx — UBS Best of Americas Conference 2014
11 slides from Csx's conference presentation, Sep 11, 2014
Slide 1: Forward-Looking Statements
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, cost
Slide 2: Executive summary
Executive summary . . . Leading North American transportation company — Broad network reach with most diverse portfolio in company’s history Proven track record of success for shareholders — Strong financial performance has driven superior shareholder value Macro trends favor North American ra
Slide 3: Network/diverse portfolio drive sustainable growth
Network/diverse portfolio drive sustainable growth 2013 Volume by Market CSX Volume and Portfolio Mix 6.5 Million Units Merchandise Intermodal Coal Intermodal Chemicals Automotive Metals Agriculture Phosphates Food & Consumer 7.4M Forest Products Minerals Waste & Equipment 6.5M Domestic coal Export
Slide 4: Cash deployment remains significant and balanced
Cash deployment remains significant and balanced Capital Investment Dividends per Share Share Buybacks Dollars in Billions Cumulative Dollars in Billions $2.3 $2.2 $2.2 $8.2 $0.59 $7.9 $1.8 $0.54 $7.2 $1.8 $1.7 $1.6 $0.45 $5.6 $1.4 $0.33 $4.2 $4.2 $0.29 $0.26 $2.6 $0.18 $0.11 $0.5 2006 2013 2006 201
Slide 5: 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 Highway system already congested, favors rail transportation long-term especially in eastern United States Freight demand in the U.S. projected to grow more than 60% by 2040 Trucking challenges generates growth
Slide 6: Service levels stable; gradual recovery expected
Service levels stable; gradual recovery expected 2014 Weekly Service levels have fallen below Velocity versus Volume expectations Velocity (mph) Carloads (in 000s) — Severe winter trailed by strong volume 30 160 growth has strained resources 28 150 26 Resources being added as fast as 140 24 poss
Slide 7: Domestic utility coal inventories within normal range
Domestic utility coal inventories within normal range Domestic Coal Henry Hub Price Utility Coal Stockpiles Per Million BTU Tonnage in Millions August-2013 August-2014 Nat Gas PRB ILB NAPP CAPP 42.2 39.9 31.3 20.2 $8.00 North South $6.00 Days of Burn $4.00 Aug-2013 Aug-2014 2006-2010 Average 104 $2.
Slide 8: Agriculture outlook strong with record crop in 2014
Agriculture outlook strong with record crop in 2014 Agricultural Sector Corn and Soybean Production Record harvest in 2013 Billions of Bushels helped grain markets recover Corn Soybean — Refilled grain supply pipeline constrained during 2012 drought 2.5% CAGR 18.2 17.5 15.8 15.1 Current 2014 cro
Slide 9: Industrial growth driven by energy renaissance
Industrial growth driven by energy renaissance Industrial Sector Williston Basin Chemicals driven by surging oil Daily Oil Production and gas industry (Million bbl/day) Actual Estimate — Crude growth expected to be 150% in 2014; further growth longer-term Projection — Frac sand expected to rise 25
Slide 10: ... and future opportunity aligns with CSX's network
. . . and future opportunity aligns with CSX’s network Intermodal Truckload Opportunity Total eastern opportunity is Montreal about 9 million truck loads — Reflects truckload moves Boston greater than 550 miles Chicago NY/NJ Philadelphia Significant majority overlays St Louis Baltimore CSX’s int
Slide 11: UBS Best of Americas Conference
201 UBS INVESTMENT RESEARCH BEST OF AMERICAS CONFERENCE / Pig = 11