Csx Corporation · NASDAQ:CSX
Csx — Baird's 2017 Global Industrial Conference
16 slides from Csx's conference presentation, Nov 8, 2017
Slide 1: CSX Corporation: Progressing Forward
CSX CORPORATION BAIRD’S 2017 GLOBAL INDUSTRIAL CONFERENCE Progressing Forward
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: Presentation Overview
PRESENTATION OVERVIEW . . . CSX is a leading North American transportation company ─ Network serves two-thirds of U.S. population and over 60% of U.S. manufacturing Business diversified across broad spectrum of markets ─ Serve consumer products, industrial, agricultural, construction and energy
Slide 5: Network Supports Diverse Portfolio
NETWORK SUPPORTS DIVERSE PORTFOLIO Montreal Network connects all five Northeast eastern mega-regions Midwest Boston Chicago Serves nearly two-thirds of New York Philadelphia the nation’s population Baltimore St Louis Norfolk Access to over 60% of U.S. Piedmont industrial production Memphis Atl
Slide 6: Business Diversified Across Multiple Markets
BUSINESS DIVERSIFIED ACROSS MULTIPLE MARKETS LTM Revenue by Market: $11.2 Billion Domestic Coal Export Coal Domestic Intermodal International Intermodal Chemicals Automotive Metals and Equipment Agriculture and Food Phosphates Forest Products Minerals Energy Sector: 19% Construction Sector: 12% 13%
Slide 7: Conventional Railroad Wisdom Transformed
CONVENTIONAL RAILROAD WISDOM TRANSFORMED CSX Historically Range Bound Redefining What is Possible CSX Operating Ratio Operating Ratio 80% Best-in-Class Old Paradigm New Paradigm 75% 90.0% 70% Precision Railroading 85.0% has redefined 65% conventional 80.0% wisdom 60% 2011 2012 2013 2014 2015 2016 75
Slide 8: Precision Railroading Driving Transformation
PRECISION RAILROADING DRIVING TRANSFORMATION Improve Operate Control Drive Asset Develop Service Safely Costs Utilization People Operational Focus Service Improvements & Productivity Improvements Balanced Improved Better Rolling Stock People Train Plan Frequency Reliability Utilization Efficiency Te
Slide 9: Changes Profound, Swift and Purposeful
CHANGES PROFOUND, SWIFT AND PURPOSEFUL Transit Time and Transformation Timeline Transit Time Train Plan Changes Hump Yard Conversions Train Consolidations Other Changes 9.0 Implemented Full Balanced Plan Transit Time (Seven-day Rolling Average) Track Curfew Changes Florida Intermodal Consolidated Fi
Slide 10: Aligning Intermodal with Precision Railroading
ALIGNING INTERMODAL WITH PRECISION RAILROADING Intermodal Terminals Underutilized terminals and lanes under strategic review Detroit Chicago NY/NJ Leveraging merchandise trains Pittsburgh Philadelphia Kansas Baltimore City Cincinnati to improve network efficiency VA Ports Nashville Charlotte Atl
Slide 11: Delivering Results Through Implementation
DELIVERING RESULTS THROUGH IMPLEMENTATION YTD Operating Results Early gains from Precision as of Third Quarter Railroading drive: Operating Income Operating Ratio ─ Operating ratio improvement of 360 bps year-over-year ─ Operating income growth of nearly 2,842 20% year-over-year 2,385 Financials
Slide 12: Financial Outlook
FINANCIAL OUTLOOK . . . Shareholders Distributions Continue to be Strong ― Dividend increase of 11% announced earlier this year ― Repurchased $1.5 billion, or 29 million shares ― New $1.5 billion share repurchase program recently authorized Reaffirm 2017 expectations (excludes restructuring char
Slide 13: CSX Corporation: Progressing Forward
CSX CORPORATION BAIRD’S 2017 GLOBAL INDUSTRIAL CONFERENCE Progressing Forward
Slide 14: Appendices: Non-GAAP Reconciliations
APPENDICES Non-GAAP Reconciliations
Slide 15: Non-GAAP Income Statement Reconciliation
NON-GAAP INCOME STATEMENT RECONCILIATION Year-to-Date Income Statement Dollars in millions GAAP Adjustments Non-GAAP Revenue $ 8,545 $ - $ 8,545 Expense Labor and Fringe 2,249 - 2,249 Materials, Supplies and Other 1,573 - 1,573 Fuel 621 - 621 Depreciation 978 - 978 Equipment and Other Rents 282 - 28
Slide 16: CSX Corporation: Progressing Forward
CSX CORPORATION BAIRD’S 2017 GLOBAL INDUSTRIAL CONFERENCE Progressing Forward