Csx Corporation · NASDAQ:CSX

Csx — J.P. Morgan Aviation, Transportation & Defense Conference 2012

13 slides from Csx's conference presentation, Mar 15, 2012

  1. Slide 1: Forward-Looking Statements

    This presentation contains confidential non-public information 1 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 a

  2. Slide 2: Current state of the business

    Current state of the business . . .  Delivered record results again in 2011 — Performance continues to rank among the best in the S&P 500  Economic backdrop constructive for growth in 2012 — Key indicators are strengthening and point to sustained growth  Over 70% of CSX’s markets poised for growt

  3. Slide 3: Performance ranks among the best of S&P 500

    Performance ranks among the best of S&P 500 Operating Income Growth Margin Expansion Continuing EPS Growth 2006 – 2011 2006 – 2011 2006 – 2011 126% 74% 860 35% 45% 70 CSX S&P 500 CSX S&P 500 CSX S&P 500 CSX ranks among the top CSX ranks among the top CSX ranks among the top 26% of S&P 500 companies

  4. Slide 4: Economy provides broad strength for 2012 growth

    Economy provides broad strength for 2012 growth Key U.S.  Macro economy continues to Indicator 2011 2012 exhibit solid growth GDP 1.7% 2.1%  Auto production growing IDP 4.1% 4.1% towards pre-recession levels NALVP 13.1M 14.4M  International trade growing on stronger consumer sentiment Imports 5.8

  5. Slide 5: Volume growth up 1% overall year-to-date

    Volume growth up 1% overall year-to-date 2012 Year-to-date  Strong growth seen in Volume Growth Merchandise and Intermodal 8% — Auto and Domestic Intermodal growing double-digits 3%  Export coal remains on track for volumes similar to 2011 — Business mix continues to shift more towards thermal coa

  6. Slide 6: Domestic coal remains challenged near-term

    As such, coal-fired plants are being dispatched less Capacity Utilization of CSX-Served Plants Percent of Total Tonnage 2007 2011 61% 52% 37% 30% 11% 8% 1% 0% 0%-40% 40%-60% 60%-80% 80%-100% Source: Energy Ventures Analysis, Incorporated; 2011 data is through November 11 Domestic coal remains challe

  7. Slide 7: Long-term, coal still integral to electricity production

    Long-term, coal still integral to electricity production U.S. Electricity Generation KWH’s in Trillions Petroleum and Other Nuclear Coal Renewable Natural Gas 6 5 27% 4 24% 16% 3 10% 2 39% 45% 1 20% 18% 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 Source: EIA Annual Energy Outlook - January 2

  8. Slide 8: Merchandise and Intermodal volume growing first quarter-to-date

    Merchandise volume growing 3% first quarter-to-date Increases 8%  Significant increase in demand for Industrial automobiles is the primary driver 2012 223 Sector  Metals also strong with higher steel mill 2011 206 utilization driven by auto, industrial growth Decreases 2%  Temporary decline in fe

  9. Slide 9: Strong service supports profitable growth

    Strong service supports profitable growth On-time Originations 82% 88%  Coal velocity and productivity 68% 72% 66% improvements drive efficiency — Scaling resources to volume Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 On-time Arrivals  Merchandise velocity up with 72% 77% solid growth 59% 63% 56% — Suppor

  10. Slide 10: Strong service is foundation for operating leverage

    Strong service is foundation for operating leverage Incremental Margins  Majority of resources already in place to support growth — Expect overall growth to exceed 50% the rate of the general economy 31%  Excess capacity exists in Merchandise and Intermodal — 15% – 20% in Intermodal — 10% – 15% in

  11. Slide 11: Appendix

    This presentation contains confidential non-public information 21 Appendix

  12. Slide 12: GAAP Reconciliation Disclosure

    GAAP Reconciliation Disclosure CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures used to manage the company’s business that fall within the meaning of Regulation G (Disclosure

  13. Slide 13: This presentation contains confidential non-public information

    This presentation contains confidential non-public information 25

CSX — J.P. Morgan Aviation, Transportation & Defense Conference 2012 on 6ix