Csx Corporation · NASDAQ:CSX
Csx — Bank of America Merrill Lynch Global Transportation Conference 2012
10 slides from Csx's conference presentation, May 18, 2012
Slide 1: Forward-Looking Statements
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, cost
Slide 2: Executive summary / Record first quarter performance despite headwinds
Executive summary . . . Record first quarter results despite headwinds — Operating income, operating ratio and continuing EPS all first quarter records Service platform operating at high levels — Merchandise, Intermodal and Coal networks operating at strong levels Merchandise and Intermodal co
Slide 3: Cost control and productivity help expand margin; service remains high
Cost control and productivity help expand margin Operating Ratio Adjusting resources for coal demand and peak service 76.9% — Over 350 T&E employees on furlough and retention boards 74.6% — Over 170 locomotives stored 72.5% after smooth start to spring peak 71.1% Productivity contributes to firs
Slide 4: On-time performance at record levels; intermodal growth remains high single-digit
On-time performance is at or near record levels On-time Originations On-time Arrivals 79% 89% 77% 83% 67% 69% 59% 66% Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2009 Q1 2010 Q1 2011 Q1 2012 7 Intermodal growth remains at high single-digit levels Year-Over-Year Domestic volume up 8% Volume Growth second qu
Slide 5: Merchandise continues to show solid growth; coal decline more significant in Q2
Merchandise continues to show solid growth Year-Over-Year Industrial sector experiencing Volume Growth double-digit growth — Automotive leading the way and driving Chemical and Metals 3% 3% Agricultural sector impacted by feed grain and ethanol — Rebounding fertilizer demand partially offsetting
Slide 6: Current dispatch rate of CSX-served utility plants
Current dispatch rate of CSX-served utility plants Capacity Utilization of CSX-Served Plants Percent of Total Tonnage 2010 YTD 2011 YTD 2012 YTD 74% 50% 51% 33% 34% 17% 11% 11% 6% 3% 1% 0% 4% 3% 4% 0%-15% 15%-40% 40%-60% 60%-80% 80%-100% Percent of Megawatt Capacity in each Category (2012) 15% 35% 3
Slide 7: Low gas prices putting pressure on Appalachian coal
Low gas prices putting pressure on Appalachian coal Competitive Price Ranges by Coal Regions Current Spot Price May 2011 Price Forward 12-month Price Natural Gas Price Per Million BTU $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Central Northern Illinois Basin Powder River Appalachia Appalachia B
Slide 8: Still expect strong incremental margins for 2012; confident in long-term prospects
Still expect strong incremental margins for 2012 Incremental Operating Margins 53% 50% Cycling second half 2011 resource investments and utility coal headwinds moderate 31% Pressured by greater coal headwinds 2010 2011 Q1 2012 Q2 2012 H2 2012 15 CSX confident in long-term business prospects Quarterl
Slide 9: Improving credit profile supports balanced approach; Wrap-up
Improving credit profile supports balanced approach Funds from Debt-to-EBITDA Operations-to-Debt 34% 3.0X 32% 31% 2.6X 2.5X 2.5X 25% 2009 2010 2011 2012 2009 2010 2011 2012 LTM LTM Note: Calculations of FFO-to-Debt and Debt-to-EBITDA are based on S&P’s and Moody’s methodologies respectively 17 Wrap-
Slide 10: Bank of America Merrill Lynch Global Transportation Conference
201 BANK OF AMERICA MERRILL LYNCH GLOBAL TRANSPORTATION CONFERENCE
CSX — Bank of America Merrill Lynch Global Transportation Conference 2012 on 6ix