Slide 1: Forward-Looking Statements
11 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, volumes, rates, cost-savin
Slide 2: Executive Summary
Executive Summary Michael Ward Chairman, President and Chief Executive Officer First quarter performance . . . Volume 1,592K Revenue $2,810M Operating Income $773M Operating Ratio 72.5% EPS $1.06 Earnings Per Share Revenue growth — Driven by volume growth, core pricing and fuel recovery $1.06 Op
Slide 3: Sales and Marketing Review: Revenue increases 13% to $2.8 billion
Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing Revenue increases 13% to $2.8 billion Revenue $2,810M Volume 1,592K RPU $1,765 Revenue in Millions $60 $2,810 $86 $173 $2,491 Q1 2010 Volume Price/Mix Fuel Price Q1 2011 Impact 66
Slide 4: Volume increases 7%; Revenue per unit increases 5%
Volume increases 7%; strength across all markets Revenue $2,810M Volume 1,592K RPU $1,765 Year-Over-Year Change in Volume Volume % of (000) Total Merchandise 654 41% 7% Intermodal 553 35% 11% Coal 385 24% 3% Total 1,592 100% 7% 77 Revenue per unit increases 5% Revenue $2,810M Volume 1,592K RPU $1,76
Slide 5: Coal revenue increases 19%; Intermodal revenue increases 4%
Coal revenue increases 19% Revenue $879M Volume 385K RPU $2,283 First Quarter First quarter summary Year-Over-Year Change — Lower demand and low natural gas prices drive utility volume Revenue 19% — Europe, Asia and South America Volume 3% drive increased exports RPU 16% Ongoing drivers — Export
Slide 6: Merchandise markets show broad-based growth
Merchandise markets show broad-based growth Revenue $1,526M Volume 654K RPU $2,333 Housing and Agriculture Sector Industrial Sector Construction Sector Revenue 2% Revenue 17% Revenue 13% Volume 0% Volume 11% Volume 11% RPU 3% RPU 6% RPU 2% 12% 38% 43% 42% 50% 33% 24% 58% Agricultural Products Automo
Slide 7: Sales and Marketing wrap-up
Sales and Marketing wrap-up . . . Economic backdrop favorable for 2011 and beyond — Major economic indicators point to sustainable growth CSX volume growth expected to exceed GDP and IDP — Intermodal, Merchandise and Coal markets all expected to register growth Core pricing expected to exceed
Slide 8: Building operating performance excellence
Building operating performance excellence Culture of commitment driving enhanced performance — Safety Continuing to deliver strong performance Safety — Productivity Contributing to record 1st quarter operating ratio Customer Mutual Operations Service Accountability Reliability — Operations Reliabi
Slide 9: Productivity contributes to record first quarter
Productivity contributes to record first quarter Operating Ratio Terminal automation increases crew efficiency 77.0% 76.9% Train length increasing across multiple markets 74.6% 72.5% Productivity partially offset by higher overtime and hiring Q1 2008 Q1 2009 Q1 2010 Q1 2011 17 17 Operations pe
Slide 10: Coal network is running efficiently; Intermodal network remains consistent
Coal network is running efficiently Velocity (mph) Cars Per Train 16.5 16.4 16.6 103 105 103 Q1 Q1 Q1 Q1 Q1 Q1 2009 2010 2011 2009 2010 2011 Velocity and productivity measures improving Export capacity and throughput remain fluid; export tons up 47% Acquiring additional high-capacity Utilities
Slide 11: Merchandise network challenged this quarter
Merchandise network challenged this quarter Velocity (mph) Terminal Dwell 21.9 (hours) 20.6 19.7 26.6 25.8 24.1 Q1 Q1 Q1 Q1 Q1 Q1 2009 2010 2011 2009 2010 2011 Merchandise network was most impacted by weather Despite challenges, volume up 7% year-over-year Actions in place to advance overall M
Slide 12: Operations wrap-up
Operations wrap-up . . . Building on record safety results Continuing to focus on productivity initiatives Networks remain resilient and fluid Advancing service to promote long-term growth 23 23 Financial Review Oscar Munoz Executive Vice President Chief Financial Officer
Slide 13: First quarter earnings summary
First quarter earnings summary . . . First Quarter Results Dollars in millions, except EPS 2011 2010 Variance Revenue $ 2,810 $ 2,491 13% Expense 2,037 1,859 (10%) Operating Income $ 773 $ 632 22% Interest Expense (140) (142) Other Income (net) 5 11 Income Taxes (243) (196) Net Earnings $ 395 $ 305
Slide 14: Expenses up 10% overall; Labor and Fringe expense increased 5%
Expenses up 10% overall; up 4% excluding fuel First Quarter 2011 Operating Expenses and Year-Over-Year Percentage Change Labor and Fringe $ 765 5% Material, Supplies, and Other 530 2% Fuel 402 42% Depreciation 243 7% Equipment Rent 97 (3%) Total Expenses $ 2,037 10% 27 27 Labor and Fringe expense in
Slide 15: MS&O expense increased 2%; Fuel expense increased 42%
MS&O expense increased 2% MS&O Expense First Quarter Dollars in Millions MS&O Analysis in Millions $571 $538 $530 2010 MS&O Expense $ 519 $519 Variance Purchased Transportation 37 Volume and Other (22) Prior Year Recoveries (17) Inflation (9) Subtotal (11) 2011 MS&O Expense $ 530 Q1 2008 Q1 2009 Q1
Slide 16: Fuel lag headwind; Financial wrap-up
Fuel lag created $35 million first quarter headwind Fuel Surcharge Lag Impact Positive Impact Negative Impact ($5) ($4) $2 ($20) ($35) Million Million Million Million Million Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Weekly Highway Diesel Fuel Monthly Highway Diesel Fuel (two-month lag) 31 31 Financia
Slide 17: Concluding Remarks
Concluding Remarks Michael Ward Chairman, President and Chief Executive Officer Relentless pursuit of excellence . . . 34 34
Slide 18: 2011 First Quarter Earnings Conference Call
2011 FIRST QUARTER | 2 ‘ 4 EARNINGS CONFERENCE CALL 2&6.