Slide 1: 2021 Fourth Quarter Earnings Conference Call
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL 01.20.2022
Slide 2: Forward Looking Disclosure
FORWARD LOOKING DISCLOSURE 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 3: Non-GAAP Measures Disclosure
NON-GAAP MEASURES DISCLOSURE CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulati
Slide 4: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS 1,570K $3,427M $1,366M Volume Revenue Op. Income Operating Income Operating Ratio Earnings Per Share $0.42 $1,366M 60.1% $1,215M $0.33 57.0% 12% Increase 310 bps Increase 27% Increase Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 2021 FOURTH QUARTER EARNINGS CONFERENCE CALL 4
Slide 5: Fourth Quarter Revenue Highlights
FOURTH QUARTER REVENUE HIGHLIGHTS Revenue gains across all major lines of business led by Q4 Revenue Up 21% Year Over Year coal and intermodal growth Chemicals increased due to core chemicals and waste growth, partially offset by Chemicals 4% lower shipments of crude oil and other energy-related com
Slide 6: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY CSX helped our customers avoid CO2 CSX is helping customers meaningfully emissions equivalent to: reduce emissions ‒ Avoided 11 million tons of CO2 emissions in 2021 1.9M 2.3M Homes’ Passenger ‒ Working to further expand the sustainability Electricity Vehicles benefits o
Slide 7: Operating Initiatives Overview
OPERATING INITIATIVES OVERVIEW Intermodal Trip Plan Carload Trip Plan Terminal Car Dwell Train Velocity Performance Performance 88% 71% 11.0 17.4 PERCENT ON TIME PERCENT ON TIME HOURS PER CAR MILES PER HOUR Hiring pipeline remains strong and increased each month in Q4 Successfully Consistently filli
Slide 8: Fourth Quarter Safety Highlights
FOURTH QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX Quarterly Annual 0.95 1.02 0.89 0.80 0.82 0.92 Employee engagement initiatives driving 0.76 positive safety momentum Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 20 FY 21 Improved full year train accident r
Slide 9: Fourth Quarter Earnings Summary
FOURTH QUARTER EARNINGS SUMMARY Fourth Quarter Income Statement Dollars in Millions 2021 2020 Variance Revenue $ 3,427 $ 2,825 21% Expense 2,061 1,610 (28%) Operating Income $ 1,366 $ 1,215 12% Interest Expense & Other Income – Net (161) (221) 27% Income Tax Expense (271) (234) (16%) Net Earnings $
Slide 10: Fourth Quarter Expense Up $451M
FOURTH QUARTER EXPENSE UP $451M Q4 21 Change in Expense Q4 20 Impacted by (~$200M) related to Quality Carriers and ($115M) higher fuel price Labor & $703 Labor & Fringe Fringe $588 Inflation excluding locomotive fuel consistent Purchased Purchased $645 with prior quarters Services Services&&Other Ot
Slide 11: Full Year Free Cash Flow and Cash
FULL YEAR FREE CASH FLOW AND CASH Free Cash Flow Cash and Short Term Shareholder Before Dividends* Investments Balance Distributions In Millions In Millions In Millions Buybacks Dividends $3,833 $3,131 $3,478 $4,136 $3,725 $2,316 $763 $2,646 $839 $1,954 $1,664 $3,373 $2,886 $797 $867 FY 19 FY 20 FY
Slide 12: Initial Look Forward
INITIAL LOOK FORWARD Project volume growth driven by economic expansion and supply chain recovery ‒ Targeting full-year volume growth in excess of GDP ‒ Volume momentum to build sequentially throughout the year Contract renewals reflecting strong demand Resourcing initiatives to increase fluidity an
Slide 13: Appendix
APPENDIX Non-GAAP Free Cash Flow Reconciliation
Slide 14: Non-GAAP Free Cash Flow Reconciliation
NON-GAAP FREE CASH FLOW RECONCILIATION Free Cash Flow Twelve Months Ended Dollars in millions Dec 31, 2021 Dec 31, 2020 Net Cash Provided by Operating Activities $ 5,099 $ 4,263 Property Additions (1,791) (1,626) Other Investing Activities 525 9 Free Cash Flow Before Dividends (non-GAAP) $ 3,833 $ 2
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