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 Second quarter performance . . . Volume 1,640 Revenue $3,012M Operating Income $943M Operating Ratio 68.7% EPS $0.49 Earnings Per Share Volume and revenue — Volume and revenue essentially $0.49 flat, despite utility coa
Slide 3: Sales and Marketing Review
Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing Revenue essentially flat year-over-year Revenue $3,012M Volume 1,640K RPU $1,837 Second Quarter Revenue Dollars in Millions $3,019 $17 ($8) ($16) $3,012 Export Coal 41% Overall inflation-plus pricing gains (excep
Slide 4: Merchandise revenue increases 6%; Intermodal revenue increases 10%
Merchandise revenue increases 6% Revenue $1,711M Volume 680K RPU $2,516 Second Quarter Second Quarter Year-Over-Year Change — Industrial growth led by strong automotive demand Revenue 6% — Construction mixed with building Volume 1% products up and aggregates down RPU 6% — Agricultural sector volum
Slide 5: Coal revenue decreases 14%; Overall outlook for third quarter is favorable
Coal revenue decreases 14% Revenue $820M Volume 331K RPU $2,477 Second Quarter Second Quarter Year-Over-Year Change — High stockpiles and low natural gas prices impact utility volume Revenue (14%) — Thermal coal demand drives Volume (14%) increased export volume RPU 0% — RPU flat with favorable mi
Slide 6: Sales and Marketing wrap-up
Sales and Marketing wrap-up . . . Economic backdrop remains favorable for 2012 — Although growth is expected to be more moderate in the second half Third quarter volume and revenue outlook favorable — Volume environment stable to favorable across nearly 80% of CSX’s business Utility coal weakn
Slide 7: Delivering performance excellence
Delivering performance excellence Safety — Excellent results that are at or near all-time best levels Safety Service — Core service measures remain at or near record levels Strategy People Service Productivity — Strong operating efficiencies drive margin expansion Productivity Strategy — Ada
Slide 8: On-time performance is at high levels
On-time performance is at high levels On-time Originations On-time Arrivals Quarterly 6-month MA 12-month MA Quarterly 6-month MA 12-month MA 81% 89% 78% 83% 71% 78% 68% 56% Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2009 Q2 2010 Q2 2011 Q2 2012 15 System performance showing strong improvement Terminal Dwel
Slide 9: Service at high levels across all three networks
Service at high levels across all three networks Coal Intermodal Merchandise Velocity (mph) Velocity (mph) Velocity (mph) 30.9 29.2 29.5 27.6 21.7 21.4 18.2 20.7 19.1 16.4 16.4 15.5 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 Average train length
Slide 10: Strong service also supports resource efficiency
Strong service also supports resource efficiency Active T&E Employees Active Locomotives Full-time Furlough Retention Board 3,919 11,409 11,401 3,881 11,291 3,829 3,764 3,762 11,180 11,286 11,279 11,046 11,180 11,174 3,640 10,998 11,038 10,970 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011
Slide 11: Financial Review: Second quarter earnings summary
Financial Review Fredrik Eliasson Executive Vice President Chief Financial Officer Second quarter earnings summary . . . Second Quarter Results Dollars in millions, except EPS 2012 2011 Variance Revenue $ 3,012 $ 3,019 Expense 2,069 2,093 1% Operating Income $ 943 $ 926 2% Interest Expense (139) (13
Slide 12: Expenses down 1% overall and flat excluding fuel
Expenses down 1% overall and flat excluding fuel Second Quarter 2012 Operating Expenses and Year-Over-Year Percentage Change Labor and Fringe $ 744 (3%) Material, Supplies, and Other 550 (1%) Fuel 410 (5%) Depreciation 263 7% Equipment Rent 102 7% Total Expenses $ 2,069 (1%) 23 Labor and Fringe expe
Slide 13: MS&O expense decreases 1%; Fuel expense decreases 5%
MS&O expense decreases 1% MS&O Expense Second Quarter Dollars in Millions MS&O Analysis in Millions $551 $557 $550 2011 MS&O Expense $ 557 Variance $444 Inflation (12) Volume Related (7) SunRail Gain 20 Other 6 Subtotal 7 2012 MS&O Expense $ 550 Q2 2009 Q2 2010 Q2 2011 Q2 2012 25 Fuel expense decrea
Slide 14: CSX's credit profile supports balanced approach
CSX’s credit profile supports balanced approach Funds From Operations-to-Debt CSX is on target to invest 32% 34% $2.25 billion in 2012 31% — Forward investment to average 25% 16-17% of revenue plus PTC Dividend payout targeted at 30-35% of TTM earnings 2009 2010 2011 2012 LTM — Dividend increase
Slide 15: Concluding Remarks
Concluding Remarks Michael Ward Chairman, President and Chief Executive Officer Relentless pursuit of excellence . . . 30
Slide 16: Second Quarter Earnings Conference Call
201 SECOND QUARTER EARNINGS CONFERENCE CALL