Csx Corporation · NASDAQ:CSX

Csx — Investor Day (November 2024)

112 slides from Csx's investor day presentation, Nov 7, 2024

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-GAPP 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 5: Today's Agenda
Today’s Agenda Welcome – Joe Hinrichs Proven Executing a Proactive Growth Strategy – Kevin Boone Attracting New Development to Rail – Christina Bottomley Powerful Deepening Customer Engagement – Arthur Adams Broadening Intermodal Opportunities – Maryclare Kenney Profitable Realizing Our Potential –
Slide 9: At CSX, we are pursuing a proactive approach to growth
At CSX, we are pursuing a proactive approach to growth Treating service as foundational Being adaptive & responsive to market changes Building partnerships with customers, Class Is, and short lines Promoting an agile mindset by leveraging technology © 2024 CSX Corporation. All rights reserved. CSX I
Slide 10: Our market expansion efforts take multiple forms
Our market expansion efforts take multiple forms Growing with Industrial Emerging Expanding Existing Development Industries Our Reach Customers Long-tail growth Reliable service Expanding Investments that opportunities from expands rail partnerships in secular address customer investment activity op
Slide 11: A powerful network with expanding reach
A powerful network with expanding reach Leveraging our extensive reach across the key regions of the US industrial base Broadening our effective footprint with strategic investments Howard Street Tunnel Recent & Future Potential Incremental Additions Volume CSX Core Network Intermodal Terminals TRAN
Slide 12: Different approaches for different customers
Different approaches for 5 Year Historical Revenue Growth Rates1 different customers 5.3% Mid & Large Small Cap 1.5% Cap Top 100 Customers All Other Industrial Targeting Development Emerging Industries White Boarding Regional A diverse customer Sessions Sales portfolio requires diverse commercial Pa
Slide 14: CSX helps customers find and build rail-served facilities
CSX helps customers find and build rail-served facilities Site Selection Site Design 40 Premier CSX Select Sites ~70% new sites vs expansions ~1k other properties in inventory ~700 average carloads per project Customer Commitment Project Management ~100 projects go live each year 2-5 years to comple
Slide 16: CSX Select Sites create a competitive advantage
CSX Select Sites create a competitive advantage Create Partner with Eliminate Pipeline of Industry Uncertainty CSX-Served Pros Sites CSX Select Site CSX Network Trackage rights © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 16
Slide 17: CSX Site Design creates growth for today and the future
CSX Site Design creates growth for today and the future Project Management Customer Track Designs Needs Estimates & Savings Competitive Access Commercial Operational Future Expansion Initiatives Capabilities Operational Guidelines Construction Coordination © 2024 CSX Corporation. All rights reserved
Slide 18: Novelis and Southwestern Kentucky Economic Development
Jose Gonzalez Procurement Director Novelis Carter Hendricks Executive Director Southwestern Kentucky Economic Development Council
Slide 20: Years of development with a significant payoff
Years of development with a significant payoff Customer RFP Customer Agreement Facility Completion Q1 2022 Q3 2023 Est. Q4 2026 Site Incentives & Design & Project Search Negotiations Construction Management CSX Site Selected Track Completion Q2 2022 Est. Q1 2026 © 2024 CSX Corporation. All rights re
Slide 21: CSX's industrial development pipeline is deep and diverse
CSX’s industrial development pipeline is deep and diverse ~50% of pipeline projects located in the Southeast US More than 500 projects in various stages represent carload opportunities across multiple end markets Multiple minerals expansions driven by increasing infrastructure demand Operations conn
Slide 22: Pipeline projects could add 150-300k annual carloads by 2027
Pipeline projects could add 150-300k annual carloads by 2027 ~95% of development projects are Merchandise; remaining are Intermodal and Automotive opportunities +100k Additional Pipeline New capacity builds and expansions are key elements of +50k High our Merchandise growth strategy Potential Increm
Slide 24: In 2023, >60% of CSX's freight revenue came from Merchandise
In 2023, >60% of CSX’s freight revenue came from Merchandise COAL INTERMODAL CSX Merchandise volume growth has outpaced the economy – and peers – 19% from 2022-2024 YTD 16% MINERALS CAGR 5% CSX Merch US Class I Industrial Truck AUTOMOTIVE Volume Merch Vol Production Tonnage FOREST 9% 1.2% 8% PRODUCT
Slide 25: Sappi North America
Mike Segal Director, Logistics & Operations Planning Sappi North America
Slide 27: Safety & Service Reliability
Pursuing opportunities to deepen the customer relationship Resourcing Modal Connectivity / Volume for Growth Conversion Network Recovery Reach Safety & Service Reliability © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 27
Slide 28: Minerals supported by increasing construction activity
Minerals supported by increasing construction activity Demand for cement and aggregates Minerals Revenue Mix driven by infrastructure, demographic trends Municipal Construction Spend Billions Other $205 Minerals $168 33% $161 $155 Aggregates $154 44% $135 $136 $131 $139 $124 Cement 23% 2014 2015 201
Slide 29: Heidelberg Materials North America
Bill Corcoran Vice President of Logistics Heidelberg Materials North America
Slide 31: Helping our existing customers grow: Heidelberg Materials
Helping our existing customers grow Heidelberg Materials Major manufacturer of cement across several regions With growing demand, saw an opportunity to replace aging facilities on a legacy CSX line Invested in a rail-served, high-volume cement plant largely due to track infrastructure upgrades facil
Slide 32: Renewable fuels represent a key driver of CSX's Ag & Food unit
Renewable fuels represent a key driver of CSX’s Ag & Food unit Long-term demand driven by strong secular Agriculture & Food Revenue Mix trends and regulatory requirements U.S. Renewable Diesel Feedstock Requirements (Rail carload equivalents) Grain & Feed 315k Ingredients 46% 255k Ethanol 234k 14% 1
Slide 33: Saint Paul Commodities
Anthony Pellegrino Vice President, Operations Saint Paul Commodities
Slide 35: CSX facilitates fast-growing customers with transitions to rail
CSX facilitates fast-growing customers with transitions to rail St. Paul Commodities Growing player in the renewable fuels industry, specifically in feedstock sourcing Converted its supply chain from primarily truck to majority rail as shipment volumes grew Worked closely with CSX to plan and develo
Slide 36: Driving opportunities to outgrow the markets we serve
Driving opportunities to outgrow the markets we serve Sessions have been conducted ‘Art of the Possible’ with 44 customers, including Whiteboard Sessions 36 of the Top 150 Cross-functional senior decision makers These sessions have facilitated new connections, new solutions Live, real-time feedback
Slide 37: Visible pipeline for Merchandise growth potential at all-time high
Visible pipeline for Merchandise growth potential at all-time high ~$1.2 billion Merchandise Pipeline, 2025-2027 By delivering the consistent, dependable service that our customers require… Chemicals Combining it with willingness to find new Minerals creative solutions as their needs evolve… Fertili
Slide 39: Leveraging strong service and a powerful network to unlock growth
Leveraging strong service and a powerful network to unlock growth Intermodal Revenue Mix Growth through International expanded Intermodal market 40% reach Private Asset Growth 36% Domestic Partners through Intermodal conversions 60% on existing Rail Asset Partners 24% footprint © 2024 CSX Corporatio
Slide 40: Georgia Ports Authority
Griff Lynch President and CEO Georgia Ports Authority
Slide 42: Inland port strategy extends International market reach
Inland port strategy extends International market reach Through public-private partnerships that PANYNJ leverage the existing CSX rail network Wilmington Charleston We are connecting ports, and Savannah the broader global economy, to fast-growing population Mobile Ocean Terminal Current Inland Port
Slide 43: Diageo and Schneider
Lucy Fishwick Vice President, Logistics Diageo Jim Filter EVP, Transportation & Logistics Schneider Michael Baumgardt SVP and GM, Intermodal Schneider
Slide 45: National Account engagement drives conversions
National Account engagement drives conversions Vast network reach & efficient Domestic Conversion Opportunity terminals 4-5 million units New lanes Superior Direct BCO designed to service engagement customer product1 needs 1 CSX voted as best performing railroad in the Journal of Commerce’s Intermod
Slide 46: Howard St Tunnel project will improve service and unlock potential
Howard St Tunnel project will improve service and unlock potential New lane offerings Increased capacity & fluidity Faster and more reliable service 75k-125k potential Efficient double-stack routes new units CSX Network Trackage rights © 2024 CSX Corporation. All rights reserved. CSX Investor Day 20
Slide 48: CSX has extensive access to the export coal market
CSX has extensive access to the export coal market Coal Revenue Mix by Market Coal Basins & CSX Export Terminals Domestic Utility 26% Domestic S&I 18% Export 56% CSX Network Trackage rights © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 48
Slide 49: Volume targets deliver above-market growth
Volume targets deliver above-market growth Merchandise Intermodal Coal Consistent service Consistent service Consistent service Industrial Development Adding International ‘dots’ Export strength Consultative selling Connecting Domestic ‘dots’ Emphasis on partnership Howard Street Tunnel © 2024 CSX C
Slide 50: Advancing a Proven Model
Advancing a Proven Model Mike Cory EVP and Chief Operating Office Casey Albright SVP, Network Operations & Service Design © 2024 CSX Corporation. All rights reserved.
Slide 52: An optimized rail network balances essential priorities
An optimized rail network balances essential priorities Service Customer Partnership Plan Visibility Efficiency Asset Allocation Waste Elimination Responsiveness Field Leadership Cost Control Daily Consistency Enabling excellent … with no service at low Repeatable & Reliable compromise on incrementa
Slide 53: Improving traffic density adds network capacity and reduces cost
Improving traffic density adds network capacity and reduces cost Cumberland Optimization Minor yard layout changes with modest capital spend 59k Fewer car handlings 29mm Reduced route miles ~$15M Direct savings + $Millions Network fluidity benefits © 2024 CSX Corporation. All rights reserved. CSX In
Slide 55: We can scale these optimization efforts across multiple locations
We can scale these optimization efforts across multiple locations 8 Willard Additional facility Indianapolis reconfiguration opportunities Richmond Louisville  Hamlet Efficiency Fluidity Atlanta Montgomery Waycross Capacity CSX Network Trackage rights © 2024 CSX Corporation. All rights reserved. CS
Slide 56: Real-time event-driven systems
Enhanced access Enabling data-savvy to real-time data leaders to make lifts our ability to quick, fact-based execute decisions Real-time event-driven systems Streamlined, actionable information Delivering a ‘single source of truth’ © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 5
Slide 58: CSX delivered and built upon prior targets
CSX delivered and built upon prior targets… Operating Margin 40% 40.5% 31.4% Operating Margin By 2020 2015-17 2020-23 Cumulative Free Cash Flow* $8.5B Cumulative $9.4B $10.9B Free Cash Flow $3.3B 2018-2020 2015-17 2018-20 2021-23 Dividends + Share Repurchases Cash generation $25B supports strong $9B
Slide 59: …and dramatically outperformed peers over 2016-2023
…and dramatically outperformed peers over 2016-2023 2016 - 2023 Operating Income CAGR 2016 - 2023 Earnings Per Share CAGR 7% 17% 5% 4% 11% 3% 10% 9% 2% 5% (1%) 1 2 3 4 5 Industry Class 1 Peers Industry Class 1 Peers 2016 – 2023 Operating Margin Change 2016 - 2023 Free Cash Flow CAGR* 22% 670 bps 140
Slide 60: Service and efficiency were key drivers of outperformance
Service and efficiency were key drivers of outperformance 24% 25% 22% Locomotive Efficiency Freight Car Efficiency Train Tonnage GTM per available HP Car Miles per Car Day 128 130 8,400 103 104 6,900 FY 2017 Last 12 Months FY 2017 Last 12 Months FY 2016 Last 12 Months 11% 25% 23% Fuel Efficiency T&E
Slide 61: Built a strong foundation for top-line growth
Built a strong foundation for top-line growth Merchandise (YoY Growth) Intermodal (Quarterly Results) *Indexed to FY 2019 Volume Revenue Ex. Fuel IDP CSX Intermodal Volume Non-CSX US Intermodal Volume 8% 120% Truck Tonnage 6% 115% 4% 110% 2% 105% 0% 100% (2%) 95% (4%) 90% (6%) 85% (8%) 80% 2019 2020
Slide 62: Business has demonstrated sustained pricing above inflation
Business has demonstrated sustained pricing above inflation Merchandise and Intermodal Price Dollars vs. CSX Inflation Dollars Price (Ex-Coal) Inflation 2018 2019 2020 2021 2022 2023 2024 Estimate © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 62
Slide 63: Momentum continues despite challenging macro 2023-24
Momentum continues despite challenging macro 2023-24 Operating Income ~$5.95B Since 2022, there have been sizeable variances in intermodal ~$5.45B storage revenue, export coal pricing, real estate gains, and net fuel These variances have impacted operating income by over $900M vs. 2022, relative to
Slide 65: Key variables support steady revenue growth
Key variables support steady revenue growth Projections assume stable fuel and export coal prices © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 65
Slide 66: Significant opportunities to deliver efficiency gains
Significant opportunities to deliver efficiency gains Discretionary Asset Fuel SAFE Inefficient Non-Labor Utilization Efficiency CSX Labor Costs Expense $1.5B 400M $200M $500M $1.4B Annual rolling Gallons of diesel Annual direct cost Spend on Targeted cost stock spend fuel consumed of derailments ov
Slide 67: Leveraging fixed costs further supports strong incremental margins
Leveraging fixed costs further supports strong incremental margins Total CSX Cost Base Trains, terminals, other assets Variable and crews have capacity to Fuel & Trucking Fixed 90-100% Variable largely absorb expected growth Depreciation, G&A, Other 0-20% Significant opportunities to Variable delive
Slide 68: Proven model, powerful momentum, profitable growth
Proven model, powerful momentum, profitable growth 3-Year Forward Compounded Annual Growth Rates Earnings Per Share Operating High-Single to Income Low-Double Digit Revenue Mid to High-Single Digit Volume Mid-Single Digit Low to Mid-Single Digit Projections assume stable fuel and export coal prices
Slide 69: CSX capital allocation priorities
CSX capital allocation priorities Network Safety & Shareholder Growth Reliability Returns Efficiently invest in rail Expand into existing Differentiated cash flow assets for the long-term capacity and supplement and financial flexibility benefit of our employees, with targeted, return- support conti
Slide 70: CSX will continue to invest in infrastructure and future growth
CSX will continue to invest in infrastructure and future growth Rolling Stock Continued locomotive rebuild program and freight car replacement Maintenance 3 Year Highest priority on safety Capital and reliability Investment* Increased used of data and Strategic advanced analytics to $7.5-8.0B extend
Slide 71: Existing asset base is positioned to absorb growth
Existing asset base is positioned to absorb growth Post-2016 actions have unlocked substantial room to grow… $52 Billion of Gross Assets Hardened Infrastructure: Rolling Stock 48% Reduction in track caused derailments & Equipment Transformed Operating Model: 18% Reduction in train miles Land & Other
Slide 72: CSX's financial flexibility is differentiated
CSX’s financial flexibility is differentiated (Retained Cash Flow – CapEx) / Debt *Retained Cash Flow = Funds From Operations - Dividends 16% 14% 12% 10% 10% 8% 6% 6% 4% 2% Class I Peers 0% (2%) (4%) (4%) (6%) 2018 2019 2020 2021 2022 2023 Q2 '24 (LTM) Source: Data points based on proprietary calcul
Slide 73: Growth and flexibility will continue to reward shareholders
Growth and flexibility will continue to reward shareholders CSX Annual Dividend per Share Payout Share Repurchase History ($B) 20 Consecutive Years of Dividend Increases Avg. Price: Avg. Discount: Buyback ROI $25.66 5.2% 44% Cumulative $ Amount % of YE '16 Shares O/S $0.48 $0.44 $23.2 $22.0 $0.40 $0
Slide 77: CSX takes great pride in our recent accomplishments
CSX takes great pride in our recent accomplishments Established safety, customer service, and employee engagement (ONE CSX) as key priorities Strengthened our proven, efficient, and flexible operating model Delivered reliable, industry-leading service performance, creating powerful commercial moment
Slide 78: Our powerful momentum is carrying us forward
Our powerful momentum is carrying us forward Driving greater operational productivity, improved service, and ample capacity Executing on diverse growth opportunities through expanded network reach, closer customer partnerships, and active industrial development efforts Maintaining key emphasis on pr
Slide 80: Appendix
Appendix
Slide 81: Non-GAAP Free Cash Flow Reconciliation
Non-GAAP Free Cash Flow Reconciliation Free Cash Flow Dollars in millions 2015 2016 2017 2018 2019 2020(a) 2021(a) 2022(a) 2023(a) Net Cash Provided by $ 3,370 $ 3,041 $ 3,472 $ 4,641 $ 4,850 $ 4,238 $ 5,022 $ 5,526 $ 5,514 Operating Activities Property Additions (2,562) (2,398) (2,040) (1,745) (1,6
Slide 84: Enabling Growth Through Technology
Enabling Growth Through Technology Steve Fortune EVP and Chief Digital and Technology Officer Dave Rich VP, IT Strategy, Infrastructure, and Governance © 2024 CSX Corporation. All rights reserved.
Slide 85: 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 86: Technology Value Drivers
Technology Value Drivers Safety at the Customer Consistent Empowered An Energy Forefront Centricity Dependable Service Employees Transition Digital eyes to maintain a An engaging, connected An optimized, automated The right person with the A suite of eco-friendly safer railroad & and highly visible
Slide 87: Digital Transformation Enables Business Agility
AI-Powered Real-Time Partner with Exit Datacenter Data Analysis Providers & Enter Cloud TRANSFORMATION Shifting to the cloud empowers IT and the Railroad Digital Transformation Partnership with strategic providers changes the game Enables Business Real-time information drives operations / customer e
Slide 88: Safety is at the forefront of everything we do at CSX
Safety is at the forefront of everything we do at CSX Innovating for employee and community safety is paramount Reducing risks by leveraging the power of machine learning Utilizing edge computing for unparalleled speed and automation Driving efficiency by transforming problem spotters into problem s
Slide 89: Customer Centricity: The Key to Growth
Customer Centricity: The Key to Growth Customer Focus Driver Experience Joint IT engagements lead Streamlined driver to improved integrations experience leveraging AI featuring Web, Mobile, and to speed up terminal Generative AI interactions operations © 2024 CSX Corporation. All rights reserved. CS
Slide 90: Consistent Dependable Service
Consistent Dependable Service Real-time data powers insights that drive operational efficiencies Informed employees lead to higher productivity and compliance Cloud platforms and data convergence will unlock efficiencies Advances in AI and vision systems enable innovation © 2024 CSX Corporation. All
Slide 91: Empowered Employees
Empowered Employees Enhanced tools aimed at driving excitement, improving retention Tailored experiences leading to workflow improvements Applications garnering interest of partner railroads Built-in feedback feature to allow field to share innovative ideas © 2024 CSX Corporation. All rights reserve
Slide 92: Art of the Possible with the Power of the Cloud
Art of the Possible with the Power Data Insights Speed of Business of the Cloud Layers of improvements AI and continuously combine to create large optimized operations allow advances, and now IT is for growth. This modern delivering at a pace approach prepares CSX for previously not possible the dem
Slide 94: 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 95: Unit Train Design
Unit Train Design One origin, one destination, one commodity Unit trains are ‘unscheduled’ traffic that do not operate on a consistent schedule Align power and crews into existing capacity CSX Network Trackage rights © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 95
Slide 96: Network Based Classing supports Auto and Merchandise Design
Network Based Classing supports Auto and Merchandise Design Lowest cost route based on mileage and handlings Considers shipment and network attributes for routing Adaptive & responsive to network changes Translates a node-based network with costing impedances into our GIS infrastructure © 2024 CSX C
Slide 97: Merchandise Trip Plan Example
Car is waybilled to CSX from Customer Merchandise Trip Plan Example Thursday @ 2000 Immediate Trip Plan Created Car is pulled by L725 and arrives in WAX Friday @ 1730 21 h 30 m Car finishes processing at WAX and departs Saturday @ 1030 17 h Car travels on M542 from WAX and arrives CIN Monday @ 1215
Slide 98: CSX Operating Plan
NETWORK CAPABILITY Planned Outages Weather Curfews / Maintenance Velocity Customer Service Requested CSX Service OPERATING Execution & Compliance PLAN Demand Locomotive & Fuel Cars Analytics Infrastructure Crews ASSET AVAILABILITY © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 98
Slide 100: 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 101: CSX Intermodal Terminals
CSX Intermodal Terminals A robust network reaches more than two- thirds of the U.S. population Strategic investments in our terminals have CSX positioned well for future growth Intermodal Terminals CSX Network Trackage rights © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 101
Slide 102: Atlanta Fairburn
Atlanta Fairburn 2nd largest terminal in the CSX network with large footprint and room for growth Historically beset with inconsistent service and long drayage driver wait times Positive Impact YTD Wait times down Yard throughput up © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024
Slide 103: Equipment Optimization
Equipment Optimization Homogenized equipment with fewer suppliers Aligned equipment to improve inventory, maintenance, and operations In the past few months, we’ve reduced the fleet size by nearly 20% © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 103
Slide 104: Investing in Our People
Investing in Our People Safety is more than a checkbox – it’s a core value Meaningful, respectful relationships with our unionized colleagues Developing the next generation through our Terminal Operations Supervisor Program Integrated working groups to identify opportunities © 2024 CSX Corporation.
Slide 106: 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 107: Operating Infrastructure
Operating Infrastructure 12 receiving tracks (1500 car capacity) Two Hump Leads (North/South) 8 Groups in the bowl / 64 bowl tracks 14 Departure Tracks 10 Track Local Yard Largest Locomotive repair facility & Freight Car shop on the network © 2024 CSX Corporation. All rights reserved. CSX Investor D
Slide 108: Productivity
Productivity Transportation Personnel 10 Transportation employees/shift Two Yardmasters (A/B Tower) assignments/shift Eight first line supervisors on a shift rotation Engineering & Mechanical Personnel Engineering: 3-8 Signal employees/shift + 21 Track employees on roster Mechanical: 35 Locomotive a
Slide 109: Hump Performance
Hump Performance Train Yard Tech (TYT) software system Currently operate with a fixed hump speed of 2.5 MPH (15% speed increase YoY) Time between cuts – 8 minutes (continuously monitored) Since 2021, misroutes have decreased from 4/1000 cars to 2/1000 car (one misroute = 15 min of incremental handli
Slide 110: Waycross Operating Plan
Waycross Operating Plan Train Depart Time Class Name L744 0145 BRUNSWICK, GA M453 0200 MIAMI, FL M400 0300 FLORENCE, SC M648 0700 CHICAGO, IL L725 0730 JESUP, GA M605 0800 NEW ORLEANS, LA (UP) M650 0900 MOBILE, AL M492 1000 HAMLET, NC M542 1030 CINCINNATI, OH L738 1145 FITZGERALD, GA L795 1200 JACKS
Slide 111: Future State
Future State Getting More Out of Rice Yard Targeting 3,300 cars / day Continuous improvement in hump speeds Departure yard and bowl pull out speeds from 10 MPH to 15 MPH Surge Switching Plan © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024 111

CSX — Investor Day (November 2024) on 6ix

Csx — Investor Day (November 2024)

Slide 1: CSX Investor Day 2024

Slide 2: Forward Looking Disclosure

Slide 3: Non-GAAP Measures Disclosure

Slide 4: Welcome

Slide 5: Today's Agenda

Slide 6: Proven Model, Powerful Momentum, Profitable Growth

Slide 7: © 2024 CSX Corporation. All rights reserved.

Slide 8: Executing a Proactive Growth Strategy

Slide 9: At CSX, we are pursuing a proactive approach to growth

Slide 10: Our market expansion efforts take multiple forms

Slide 11: A powerful network with expanding reach

Slide 12: Different approaches for different customers

Slide 13: Attracting New Development to Rail

Slide 14: CSX helps customers find and build rail-served facilities

Slide 15: >500 new customer sites or expansions in pipeline

Slide 16: CSX Select Sites create a competitive advantage

Slide 17: CSX Site Design creates growth for today and the future

Slide 18: Novelis and Southwestern Kentucky Economic Development

Slide 19: © 2024 CSX Corporation. All rights reserved. CSX Investor Day 2024

Slide 20: Years of development with a significant payoff

Slide 21: CSX's industrial development pipeline is deep and diverse

Slide 22: Pipeline projects could add 150-300k annual carloads by 2027

Slide 23: Deepening Customer Engagement

Slide 24: In 2023, >60% of CSX's freight revenue came from Merchandise

Slide 25: Sappi North America

Slide 26: © 2024 CSX Corporation. All rights reserved.

Slide 27: Safety & Service Reliability

Slide 28: Minerals supported by increasing construction activity

Slide 29: Heidelberg Materials North America

Slide 30: © 2024 CSX Corporation. All rights reserved.

Slide 31: Helping our existing customers grow: Heidelberg Materials

Slide 32: Renewable fuels represent a key driver of CSX's Ag & Food unit

Slide 33: Saint Paul Commodities

Slide 34: © 2024 CSX Corporation. All rights reserved.

Slide 35: CSX facilitates fast-growing customers with transitions to rail

Slide 36: Driving opportunities to outgrow the markets we serve

Slide 37: Visible pipeline for Merchandise growth potential at all-time high

Slide 38: Broadening Intermodal Opportunities

Slide 39: Leveraging strong service and a powerful network to unlock growth

Slide 40: Georgia Ports Authority

Slide 41: © 2024 CSX Corporation. All rights reserved.

Slide 42: Inland port strategy extends International market reach

Slide 43: Diageo and Schneider

Slide 44: © 2024 CSX Corporation. All rights reserved.

Slide 45: National Account engagement drives conversions

Slide 46: Howard St Tunnel project will improve service and unlock potential

Slide 47: Realizing our Potential

Slide 48: CSX has extensive access to the export coal market

Slide 49: Volume targets deliver above-market growth

Slide 50: Advancing a Proven Model

Slide 51: The CSX network is complex and opportunity-rich

Slide 52: An optimized rail network balances essential priorities

Slide 53: Improving traffic density adds network capacity and reduces cost

Slide 54: Cumberland Optimization

Slide 55: We can scale these optimization efforts across multiple locations

Slide 56: Real-time event-driven systems

Slide 57: Enhancing CSX Value Creation

Slide 58: CSX delivered and built upon prior targets

Slide 59: …and dramatically outperformed peers over 2016-2023

Slide 60: Service and efficiency were key drivers of outperformance

Slide 61: Built a strong foundation for top-line growth

Slide 62: Business has demonstrated sustained pricing above inflation

Slide 63: Momentum continues despite challenging macro 2023-24

Slide 64: Our Growth Opportunity

Slide 65: Key variables support steady revenue growth

Slide 66: Significant opportunities to deliver efficiency gains

Slide 67: Leveraging fixed costs further supports strong incremental margins

Slide 68: Proven model, powerful momentum, profitable growth

Slide 69: CSX capital allocation priorities

Slide 70: CSX will continue to invest in infrastructure and future growth

Slide 71: Existing asset base is positioned to absorb growth

Slide 72: CSX's financial flexibility is differentiated

Slide 73: Growth and flexibility will continue to reward shareholders

Slide 74: Proven Model, Powerful Momentum, Profitable Growth

Slide 75: Q&A

Slide 76: Continuing Our Energy and Momentum

Slide 77: CSX takes great pride in our recent accomplishments

Slide 78: Our powerful momentum is carrying us forward

Slide 79: Proven Model, Powerful Momentum, Profitable Growth