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 First quarter performance . . . Volume 1,578K Revenue $2,958M Operating Income $875M Operating Ratio 70.4% EPS $0.45 Earnings Per Share Revenue stability — Merchandise, intermodal and $0.45 other revenue offset coal dec
Slide 3: Sales and Marketing Review: Macro-environment remains conducive for growth
Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing Macro-environment remains conducive for growth ISM Manufacturing Gross Domestic Product Purchasing Managers Index 2.2% 2.3% 60 2.1% 1.9% 55 1.6% 50 45 40 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2012 Q1 20
Slide 4: Revenue remains stable year-over-year; Pricing solid across nearly all markets
Revenue remains stable year-over-year Revenue $2,958M Volume 1,578K RPU $1,875 First Quarter Revenue Dollars in Millions $28 ($39) $2,966 $3 $2,958 Pricing gains, Growth in and contractual chemicals and commitment intermodal more payments more than offset by than offset the declines in coal impact o
Slide 5: Volume declines 2% for the first quarter; Coal revenue decreases 13%
Volume declines 2% for the first quarter Revenue $2,958M Volume 1,578K RPU $1,875 Year-Over-Year Change in Volume 3% 2% (1%) (3%) (5%) (14%) Intermodal Industrial Construction Export Agricultural Domestic Sector Sector Coal Sector Coal 9 Coal revenue decreases 13% Revenue $726M Volume 297K RPU $2,44
Slide 6: Merchandise revenue increases 2%; Intermodal revenue increases 4%
Merchandise revenue increases 2% Revenue $1,717M Volume 666K RPU $2,578 First Quarter First Quarter Year-Over-Year Change — Increased shipments of crude oil drives industrial growth Revenue 2% — Low inventories from last year’s Volume (1%) drought impact agriculture volume RPU 3% — Construction re
Slide 7: Overall outlook for second quarter is neutral
Overall outlook for second quarter is neutral Outlook Markets Drivers Chemicals Continued growth in energy-related markets Food & Consumer Higher food and beverage shipments Favorable Intermodal H2R conversions and growth with existing customers 63% of volume Forest Products Recovery
Slide 8: Operations Review
Operations Review Oscar Munoz Executive Vice President Chief Operating Officer Delivering performance excellence Safety Driving results that continue to be at or near all- time best levels Service Continuing to drive high service levels through all operating conditions Efficiency Well on pace
Slide 9: CSX is a leader in one of nation's safest industries
CSX is a leader in one of nation’s safest industries FRA Personal Injury Rate FRA Train Accident Rate 0.84 3.32 0.81 0.80 0.66 2.64 2.24 1.54 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2010 Q1 2011 Q1 2012 Q1 2013 17 First quarter on-time performance at record levels On-time Originations On-time Arrivals 85
Slide 10: System performance continues strong momentum
System performance continues strong momentum Terminal Dwell (hours) Velocity (mph) 26.6 23.4 25.8 22.3 24.0 20.9 20.5 22.2 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2010 Q1 2011 Q1 2012 Q1 2013 19 Leveraging and aligning resources across network Merchandise and Intermodal Year-over-year Growth Reduced cr
Slide 11: Employment levels are slightly down sequentially
Employment levels are slightly down sequentially Active T&E Operating more efficiently Employees in Thousands — Active T&E employment down Full Time Furlough Retention Board 4% year-over-year 11.4 11.4 11.4 — Overtime hours are down 11% 0.1 with 9% fewer relief crews 0.2 0.2 11.2 0.3 11.0 — Overal
Slide 12: Operations wrap-up; Financial Review
Operations wrap-up . . . CSX is a leader in one of the nation’s safest industries — FRA personal injury and train accident rates near all-time best Continuing to drive record service levels — Adjusting resources to drive improved efficiency and high service Expecting to exceed $150 million in
Slide 13: First quarter earnings summary
First quarter earnings summary . . . First Quarter Results Dollars in millions, except EPS 2013 2012 Variance Revenue $ 2,958 $ 2,966 (0%) Expense 2,083 2,110 1% Operating Income $ 875 $ 856 2% Interest Expense (147) (144) Other Income (net) (3) 4 Income Taxes (266) (267) Net Earnings $ 459 $ 449 2%
Slide 14: Total expense decreases 1% overall
Total expense decreases 1% overall First Quarter 2013 Operating Expenses and Year-Over-Year Percentage Change Labor and Fringe $ 767 0% Material, Supplies, and Other 507 (6%) Fuel 444 0% Depreciation 270 5% Equipment Rent 95 (2%) Total Expenses $ 2,083 (1%) 27 Labor and Fringe expense down slightly
Slide 15: MS&O expense decreases 6%; Fuel expense flat
MS&O expense decreases 6% MS&O Expense First Quarter Dollars in Millions MS&O Analysis in Millions $550 2012 MS&O Expense $ 542 $542 $539 $525 $507 Variance Deferred Gains 30 Efficiency and Volume 22 Inflation (11) Other (6) Subtotal 35 Q1 Q2 Q3 Q4 Q1 2013 MS&O Expense $ 507 2012 2012 2012 2012 2013
Slide 16: Long-term earning power supports distributions
Long-term earning power supports distributions EPS Project 10-15% CAGR through 2015 off 2013 base Growth — Expect 2013 EPS to be flat to slightly down from 2012 Operating Targeting a high-60’s operating ratio by 2015 Ratio — Operating ratio in the mid-60’s remains focus longer-term Remains unc
Slide 17: Relentless pursuit of excellence . . .
Relentless pursuit of excellence . . . 33 34