Slide 1: 2021 First Quarter Earnings Conference Call
2021 FIRST QUARTER EARNINGS CONFERENCE CALL 04.20.2021
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: Executive Summary
EXECUTIVE SUMMARY James M. Foote President and Chief Executive Officer
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS 1,529K $2,813M $1,101M Volume Revenue Op. Income Operating Ratio Earnings Per Share 60.9% $1.00 $0.93 58.7% 220 bps Increase 7% Decrease Q1 20 Q1 21 Q1 20 Q1 21 2021 FIRST QUARTER EARNINGS CONFERENCE CALL 5
Slide 6: First Quarter Revenue Highlights
FIRST QUARTER REVENUE HIGHLIGHTS Intermodal Volume and Revenue Growth First Quarter Revenue Offset by Declines in Carload Traffic Down 1% Year Over Year Chemicals decreased primarily due to lower shipments within the energy- related markets, partially offset by higher shipments of plastics Chemicals
Slide 7: First Quarter Safety Highlights
FIRST QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.15 1.02 Expanded safety summits reinforcing safety 0.76 0.78 0.61 culture and frontline engagement New hire and manager training focused on Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 enhancing rules complia
Slide 8: First Quarter Operating Highlights
FIRST QUARTER OPERATING HIGHLIGHTS Train Velocity Distributed Power Miles per Hour Trains per Day 21.2 21.2 19.6 18.9 18.9 94 93 101 84 75 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Terminal Car Dwell Labor Productivity Average Hours per Car GTMs per Active T&E Employee 9.7 10.2 10.
Slide 9: Transformation Update: Key Metric Review
TRANSFORMATION UPDATE: KEY METRIC REVIEW Network Fluidity Asset Utilization Crew Productivity Train Velocity* (MPH) Active Locomotives Deadheads (000’s) 33% 41% 59% Q1 21 18.9 Q1 21 2,223 Q1 21 33.4 Q1 17 14.2 Q1 17 3,763 Q1 17 81.0 Car Dwell* (Hours) GTMs per Available HP Cars Handled per Hour**
Slide 10: Preparing the Network for Growth
PREPARING THE NETWORK FOR GROWTH Trip Plan Performance Network rebounding from challenging first Carload Intermodal quarter weather conditions 67% 85% Sustaining operating efficiencies Operating Efficiency vs. Q1 20 Taking necessary steps to prepare network for incremental volumes Train Starts Train
Slide 11: Financial Review
FINANCIAL REVIEW Kevin S. Boone EVP and Chief Financial Officer
Slide 12: First Quarter Earnings Summary
FIRST QUARTER EARNINGS SUMMARY First Quarter Income Statement Dollars in millions 2021 2020 Variance Revenue $ 2,813 $ 2,855 (1%) Expense Labor and Fringe 620 606 (2%) Materials, Supplies and Other 469 454 (3%) Depreciation 345 344 - Fuel 190 192 1% Equipment and Other Rents 88 81 (9%) Total Expense
Slide 13: First Quarter Financial Measures
FIRST QUARTER FINANCIAL MEASURES Free Cash Flow Free Cash Flow Shareholder Before Dividends* Conversion* Distributions In Millions FCF Percent of Net Income In Millions Buybacks Dividends $934 132% $778 $764 $812 105% $201 $213 $401 $577 $238 $247 $198 $551 $199 $199 $203 $39 $48 Q1 20 Q1 21 Q1 20 Q
Slide 14: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 15: Looking Forward
LOOKING FORWARD Expect to achieve double-digit full year revenue growth ‒ Continue to project full year volume growth in excess of GDP ‒ Increased visibility into positive economic momentum Driving operating leverage on volume growth Continue to target capital expenditures in the $1.7 – $1.8 billion
Slide 16: Appendix
APPENDIX Non-GAAP Free Cash Flow Reconciliation
Slide 17: Non-GAAP Free Cash Flow Reconciliation
NON-GAAP FREE CASH FLOW RECONCILIATION Free Cash Flow Three Months Ended Dollars in millions Mar 31, 2021 Mar 31, 2020 Net Cash Provided by Operating Activities $ 1,232 $ 1,178 Property Additions (306) (381) Other Investing Activities 8 15 Free Cash Flow Before Dividends (non-GAAP) $ 934 $ 812 Opera
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