Csx Corporation · NASDAQ:CSX

Csx — J.P. Morgan Aviation, Transportation and Defense Conference 2011

17 slides from Csx's conference presentation, Mar 24, 2011

  1. Slide 1: J.P. Morgan Aviation, Transportation and Defense Conference

    > : ene ne A Mt aba [ How tomorrow moves ] ; OL J.P. MORGAN AVIATION, TRANSPORTATION AND DEFENSE CONFERENCE

  2. Slide 2: 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, volumes, rates, cost-savings,

  3. Slide 3: CSX delivers record 2010 results for shareholders

    CSX delivers record 2010 results for shareholders Operating Income Continuing Operating Margin Dollars in Billions Earnings Per Share Operating Income Volume (MM) Continuing EPS Volume (MM) Operating Margin Volume (MM) $4.06 29% $3.1 $3.64 $2.8 24% 25% $2.3 $2.75 $2.85 22% $2.2 $2.0 $2.22 21% 7.4 7.

  4. Slide 4: Performance ranks among best of S&P 500

    Performance ranks among best of S&P 500 Operating Continuing Operating Margin Income Growth EPS Growth Improvement (bps) 2006 – 2010 2006 – 2010 2006 – 2010 56% 83% 840 6% (100) (25%) CSX S&P 500 CSX S&P 500 CSX S&P 500 CSX CSX ranks ranks among among top top CSX CSX ranks ranks among among top top

  5. Slide 5: CSX expects to again produce record results in 2011

    CSX expects to again produce record results in 2011 „ Growing economy provides favorable backdrop — Volume growth expected to exceed GDP and IDP; demand for export coal strong „ Core pricing gains expected to remain above inflation — Reflects value of CSX’s service product and relative value of rail

  6. Slide 6: Price, productivity and margins drive strong results

    Price, productivity and margins drive strong results “Same Store Sales” Productivity Savings 2010 Incremental Price Increases Dollars in Millions Operating Margins 6.6% 6.7% 6.5% $264 6.2% 6.1% 61% 54% $193 46% $138 $142 $151 40% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Q1 Q2 Q3 Q4 CSX CSX

  7. Slide 7: CSX targeting high-60's operating ratio in 2011

    CSX targeting high-60’s operating ratio in 2011 Operating Ratio 87.8% Maintains Maintains strong strong momentum momentum towards towards achieving 65% achieving 65% O.R. O.R. 77.7% target target no no later later than than 2015 2015 75.6% 71.1% High-60’s 65.0% 2004 2006 2008 2010 2011 No later than

  8. Slide 8: Evolving to deliver enterprise wide changes

    Evolving to deliver enterprise wide changes Process Asset Evolution Improvement Utilization 2005-2010 Aspect 2011-2015 Drive to 75 Vision Grow to 65 Low hanging opportunities: Full Asset Management: Identification Operating Expense Operating Expense & Capital Drive common Drive action through intere

  9. Slide 9: Evolving asset utilization for improved productivity

    Evolving asset utilization for improved productivity Asset Asset „ „ Asset Asset tracking tracking in in different different systems systems Operator Operator „ „ Reactive Reactive maintenance maintenance programs programs Previous Asset Asset „ „ Historical Historical maintenance maintenance inform

  10. Slide 10: Capital investment for 2011 increases to $2 billion

    Capital investment for 2011 increases to $2 billion . . . 2011 Capital Investment „ Infrastructure and rolling $2.0 Billion stock investments continue 13% 56% „ Strategic investments support CSX’s “Grow to 65” initiative „ Regulatory capital spending 16% driven by PTC investment 15% Infrastructure R

  11. Slide 11: ... and preparing network for growth beyond

    . . . and preparing network for growth beyond „ Network capacity — Southeastern Corridor expansion — I-90 Corridor expansion Chicago — Chicago CREATE project New York „ Intermodal terminals — New terminals in key markets — Expansions support further growth „ Strategic investments — National Gateway

  12. Slide 12: Wrap-up

    Wrap-up . . . „ CSX delivers strong results for shareholders in 2010 — Performance ranks among the best S&P 500 companies „ Strong upside remains in 2011 and beyond — Near-term growth through “charted waters”; long-term organic profitable growth „ Company is targeting high-60’s operating ratio for 2

  13. Slide 13: J.P. Morgan Aviation, Transportation and Defense Conference

    > : ene ne A Mt aba [ How tomorrow moves ] ; OL J.P. MORGAN AVIATION, TRANSPORTATION AND DEFENSE CONFERENCE

  14. Slide 14: Appendix

    Appendix

  15. Slide 15: GAAP Reconciliation Disclosure

    GAAP Reconciliation Disclosure CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures used to manage the company’s business that fall within the meaning of Regulation G (Disclosure

  16. Slide 16: GAAP Reconciliation

    GAAP Reconciliation Dollars in millions 2006 2007 2008 2009 2010 Operating income $ 2,137 $ 2,246 $ 2,751 $ 2,270 $ 3,071 Gain on insurance recoveries (168) - - - - Comparable operating income $ 1,969 $ 2,246 $ 2,751 $ 2,270 $ 3,071 Operating margin 22.3% 22.4% 24.4% 25.1% 28.9% Gain on insurance re

  17. Slide 17: J.P. Morgan Aviation, Transportation and Defense Conference

    > : ene ne A Mt aba [ How tomorrow moves ] ; OL J.P. MORGAN AVIATION, TRANSPORTATION AND DEFENSE CONFERENCE

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