Slide 1: Forward-Looking Statements
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 and estimates of earnings, revenues, margins, volumes, rates, co
Slide 2: Executive Summary
Executive Summary Michael Ward Chairman, President and Chief Executive Officer Fourth quarter performance . . . Volume 1,567 Revenue $2,884M Operating Income $804M Operating Ratio 72.1% EPS $0.43 Earnings Per Share Revenue — Coal headwinds more than offset merchandise and intermodal gains $0.43 $0
Slide 3: Full-year results continue steady improvement
Full-year results continue steady improvement Volume 6,409K Revenue $11,756M Operating Income $3,457M Operating Ratio 70.6% EPS $1.79 Operating Income Operating Ratio Earnings Per Share Dollars in Billions $3.42 $3.46 74.9% $1.79 $1.67 $3.07 71.1% 70.9% 70.6% $1.35 $2.27 $0.95 2009 2010 2011 2012 20
Slide 4: Macro-environment slowed in the fourth quarter
Macro-environment slowed in the fourth quarter Gross Domestic Product 2012 ISM Manufacturing Purchasing Managers Index 3.1% 60 2.0% 55 1.3% 50 1.0% 45 40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 2012 Q2 2012 Q3 2012 Q4 2012 Industrial Production 2012 ISM Manufacturing Customer Inventories
Slide 5: Pricing solid across nearly all markets
Pricing solid across nearly all markets Revenue $2,884M Volume 1,567K RPU $1,840 Same Store Sales Softening global coal market Pricing Gains conditions drive export pricing Overall Excluding Export Coal 5.9% Inflation-plus pricing achieved 4.9% on remaining business 4.0% 4.0% 3.7% Remain focus
Slide 6: Coal revenue decreases 18%
Coal revenue decreases 18% Revenue $747M Volume 305K RPU $2,449 Fourth Quarter Fourth Quarter Year-Over-Year Change — Domestic volume impacted by low gas prices, lower electrical demand Revenue (18%) — Export coal volume impacted by Volume (19%) softer metallurgical demand RPU 0% — Stronger domest
Slide 7: Intermodal revenue increases 6%
Intermodal revenue increases 6% Revenue $398M Volume 600K RPU $663 Fourth Quarter Fourth Quarter Year-Over-Year Change — Domestic volume increases despite impact of Hurricane Sandy Revenue 6% — Maersk business was the primary Volume 4% driver of international volume RPU 2% — Revenue per unit incre
Slide 8: Sales and Marketing wrap-up
Sales and Marketing wrap-up . . . Economic backdrop moderated in the fourth quarter — Excluding coal, volume up 1% in fourth quarter, reflecting moderate economy Overall first quarter 2013 volume outlook is neutral — While 71% of markets are favorable or neutral, overall volume likely to be flat
Slide 9: Delivering performance excellence
Delivering performance excellence Safety Driving results that continue to be at or near all-time best levels Service Customer satisfaction now at record levels Efficiency Resource adjustments and asset utilization drive nearly $200 million in savings Solutions Solving problems for customers
Slide 10: On-time performance at record levels
On-time performance at record levels On-time Originations On-time Arrivals 90% 82% 84% 79% 79% 75% 72% 70% Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2009 Q4 2010 Q4 2011 Q4 2012 19 Fluidity drives value for customers and shareholders Terminal Dwell (hours) Velocity (mph) 25.5 23.3 25.4 24.3 24.3 22.0 21.7
Slide 11: Service at high levels across all three networks
Service at high levels across all three networks Coal Intermodal Merchandise Velocity (mph) Velocity (mph) Velocity (mph) 30.4 30.5 29.2 29.4 21.7 21.9 19.3 20.8 20.9 17.3 16.8 17.4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 Efficiency improving
Slide 12: Headcount reductions help drive productivity
Headcount reductions help drive productivity Active T&E Operating more efficiently Employees in Thousands with fewer employees Reflects Quarterly Average — Active T&E headcount down Full-time Furlough Retention Board 1% year-over-year 11.4 11.4 11.4 11.3 11.2 Over 900 furloughed or on furlough r
Slide 13: Customer satisfaction at all-time high levels
Customer satisfaction at all-time high levels CSX Customer Satisfaction CSX customer satisfaction at Indexed: 2008 = 100 all-time high levels 110 — Internal and third party shipper surveys confirm results 106 105 102 Local service improvements 100 were primary driver — First and last mile signif
Slide 14: Financial Review: Fourth quarter earnings summary
Financial Review Fredrik Eliasson Executive Vice President Chief Financial Officer Fourth quarter earnings summary . . . Fourth Quarter Results Dollars in millions, except EPS 2012 2011 Variance Revenue $ 2,884 $ 2,951 (2%) Expense 2,080 2,110 1% Operating Income $ 804 $ 841 (4%) Interest Expense (1
Slide 15: Fuel lag benefit is $14 million year-over-year
Fuel lag benefit is $14 million year-over-year Fuel Surcharge Lag Impact Positive Impact Negative Impact $14 million year-over-year positive lag impact ($9) Million ($15) Million $17 Million ($16) Million $5 Million Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Weekly Highway Diesel Fuel Monthly Highway D
Slide 16: Labor and Fringe expense decreases 3%
Labor and Fringe expense decreases 3% Employee Headcount Fourth Quarter 32,393 32,422 Labor Analysis in Millions 32,139 32,204 31,463 2011 Labor Expense $ 779 Variance Efficiency and Volume 35 Inflation (9) Other 1 Subtotal 27 Q4 Q1 Q2 Q3 Q4 2012 Labor Expense $ 752 2011 2012 2012 2012 2012 31 MS&O
Slide 17: Fuel expense decreases slightly
Fuel expense decreases slightly Locomotive Fuel Price Fourth Quarter Dollars Per Gallon Fuel Analysis in Millions $3.28 $3.16 2011 Fuel Expense $ 423 $3.15 $3.14 $3.05 Variance Efficiency 15 Volume 15 Price (28) Subtotal 2 Q4 Q1 Q2 Q3 Q4 2012 Fuel Expense $ 421 2011 2012 2012 2012 2012 33 Full-year
Slide 18: Earnings growth achieved despite coal headwinds
Earnings growth achieved despite coal headwinds Revenue factors — Excluding export coal, pricing remained above inflation — Coal revenue declined $519 million from 2011 levels, with volume down 16% — Superior service product drove Merchandise and Intermodal revenue growth of $514 million, helping
Slide 19: Targeting $2.3 billion of capital investment in 2013
Targeting $2.3 billion of capital investment in 2013 Capital Investment Core investment remains at $2.3 billion 16% – 17% of revenue for 2013 — Infrastructure investments support Infrastructure Equipment sustaining high service levels Strategic PTC — Recapitalizing locomotive and car fleets also e
Slide 20: Concluding Remarks
Concluding Remarks Michael Ward Chairman, President and Chief Executive Officer Relentless pursuit of excellence . . . 40
Slide 21: Fourth Quarter Earnings Conference Call
es ,: {5 > ok #e OE) ~ D 201 FOURTH QUARTER EARNINGS CONFERENCE CALL