Slide 1: 2021 Second Quarter Earnings Conference Call
2021 SECOND QUARTER EARNINGS CONFERENCE CALL 07.21.2021
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: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS 1,591K $2,990M $1,691M Volume Revenue Op. Income Q2 results reflect strong rebound Operating Income Operating Ratio Earnings Per Share from prior year COVID-19 impacts $1,691M 63.3% $0.52 Results include benefits from sale of certain property rights to Virginia 43.4% for pa
Slide 6: Second Quarter Revenue Highlights
SECOND QUARTER REVENUE HIGHLIGHTS Volume and Revenue Increased Across All Segments Q2 Revenue Up 33% Year Over Year Chemicals increased due to higher shipments of plastics, waste and other core chemicals, partially offset by lower shipments of crude oil Chemicals 14% Agricultural & Food Products inc
Slide 7: Second Quarter Safety Highlights
SECOND QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.15 0.95 1.00 Record low number of train accidents for Q2 0.76 0.76 0.63 Safety Summits and face-to-face interaction reinforcing frontline engagement Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Maintai
Slide 8: Second Quarter Operating Highlights
SECOND QUARTER OPERATING HIGHLIGHTS Q2 2021 Operating Metrics Strong intermodal trip plan performance in Intermodal Trip Terminal Car rising demand environment Plan Performance Dwell Driving carload trip plan performance 89% 10.5 momentum PERCENT ON TIME HOURS PER CAR Expect additional improvements
Slide 9: Resourcing Network for Growth
RESOURCING NETWORK FOR GROWTH Hiring & Availability Rolling Stock Continue to Invest in Initiatives Reserves Core Infrastructure Ongoing T&E additions in Staging assets in locations Committed to investments second half of the year with expected growth that enhance the safety, reliability and fluidit
Slide 10: Expanding Technology Usage
EXPANDING TECHNOLOGY USAGE Increased Utilization vs. Q2 2020 Technology is foundational to growth Distributed Power Trains 39% Expanding key initiatives based on successful results to date Autonomous Track Ongoing investments to drive additional Inspection Miles 27% operational and customer experi
Slide 11: Financial Review
FINANCIAL REVIEW Sean R. Pelkey VP and Acting Chief Financial Officer
Slide 12: Second Quarter Earnings Summary
SECOND QUARTER EARNINGS SUMMARY Second Quarter Income Statement Dollars in millions 2021 2020 Variance Revenue $ 2,990 $ 2,255 33% Expense Labor and Fringe 596 507 (18%) Materials, Supplies and Other 441 418 (6%) Depreciation 348 344 (1%) Fuel 194 91 (113%) Equipment and Other Rents 87 78 (12%) Gain
Slide 13: Second Quarter Financial Measures
SECOND QUARTER FINANCIAL MEASURES Free Cash Flow Cash and Short-term Shareholder Before Dividends* Investments Balance Distributions In Millions In Millions In Millions Buybacks Dividends $1,871 $3,131 $2,990 $913 $764 $212 $1,386 $213 $401 $701 $238 $247 $198 $551 $199 $199 $203 $39 $48 Q2 20 Q2 21
Slide 14: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 15: Looking Forward
LOOKING FORWARD Maintaining full year revenue outlook ‒ Forecasting double-digit full year revenue growth excluding Quality Carriers ‒ Quality Carriers acquisition adds ~6% annualized revenue Focused on delivering high quality service product to customers Capital expenditure outlook remains in the $
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 Six Months Ended Dollars in millions Jun 30, 2021 Jun 30, 2020 Net Cash Provided by Operating Activities $ 2,399 $ 2,184 Property Additions (754) (801) Other Investing Activities 226 3 Free Cash Flow Before Dividends (non-GAAP) $ 1,871 $ 1,386 Op
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