Csx Corporation · NASDAQ:CSX
Csx — Citi Investment Research Industrial Manufacturing and Transportation Conference 2009
17 slides from Csx's conference presentation, Nov 12, 2009
Slide 1: Citi Investment Research Industrial Manufacturing and Transportation Conference
Citi Investment Research Industrial Manufacturing and Transportation Conference November 2009 11
Slide 2: Forward-Looking Disclosure
Forward-Looking Disclosure This information and other statements by the company 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, cost-savings, expenses, or other
Slide 3: Current CSX environment
Current CSX environment . . . Company emerging from recession stronger — Earnings and margins have been resilient in current environment Operating team driving greater productivity — New technology and best practices are producing greater resource efficiency CSX network provides long-term stra
Slide 4: Earnings and margins resilient in current economy
Earnings and margins resilient in current economy Year-to-Date Through Third Quarter Dollars in millions, except EPS 2009 2008 Change Volume (000) 4,295 5,224 (18%) Revenue $ 6,721 $ 8,581 (22%) Expense 5,019 6,505 (23%) Operating Income $ 1,702 $ 2,076 (18%) Operating Ratio 74.7% 75.8% 110 bps Earn
Slide 5: Productivity and rightsizing driving costs lower
Productivity and rightsizing driving costs lower Year-to-Date through Third Quarter % 2009 2008 Improvement Fuel Short-term Car Hire $ 1,289 $ 2,216 42% Variable Costs Unit Train Crews Third Party Services Terminal Operations Long-term Scheduled Network Crews 1,416 1,659 15% Variable Cos
Slide 6: Culture of leadership, discipline and execution
Culture of leadership, discipline and execution Leadership Leadership Excellence Excellence Points Points ““Plan Plan Long, Long, Execute Execute Short Short”” applied applied to to leadership leadership competency competency Be Where the Work Is Live Our Core Values Display Integrity and Be E
Slide 7: Economic environment continues to moderate
Economic environment continues to moderate Year-Over-Year Volume Change (12%) (15%) (17%) (21%) First Quarter Second Quarter Third Quarter Fourth Quarter To Date Note: Fourth quarter to date volume reflects data through week 44 77
Slide 8: CSX is well prepared as volume builds
CSX is well prepared as volume builds . . . Furloughed employees Resources Available — Generally available within a few weeks T&E Employees furloughed 1,562 Newly-hired employees Percent of total 14% — Training of new employees takes four to six months Locomotives stored 613 Percent of total 17%
Slide 9: ...and productivity will remain the focus
. . . and productivity will remain the focus ONE Plan optimization continues to be the foundation — Process continues to consolidate trains and increase overall train length Deploying capital and best practices to drive train length — New and expanded sidings, plus distributed-power increases tr
Slide 10: ONE Plan driving an increase in train length
ONE Plan driving an increase in train length Merchandise Train Length Average Freight Cars Per Train by Week 95 90 85 13% 13% 80 Improvement Improvement 75 70 WK1 WK6 WK11 WK16 WK21 WK26 WK31 WK36 WK41 WK46 WK51 10 10
Slide 11: Increasing train length ... deploying capital
Increasing train length . . . deploying capital Example: Train Length Capacity Mainline Subdivision 9,000-foot 9,000-foot 6,500-foot Cincinnati 6,435 5,832 Louisville 5,372 Deploying Deploying capital capital Nashville to to accommodate accommodate 9,000 9,000 foot foot trains trains Birmingham Birm
Slide 12: Increasing train length ... distributed power
Increasing train length . . . distributed power Example: Train Tonnage Capacity New Orleans – Hamlet Greatest impact for distributed power New Orleans 12,000 to Mobile 9,956 Mobile to 13,500 Montgomery 9,981 Montgomery 11,000 to Atlanta 9,952 Hamlet Greenwood Atlanta to 10,500 Atlanta Greenwood 9,88
Slide 13: Increasing train length ... Total Service Integration
Increasing train length . . . Total Service Integration Coal Grain Aggregates Cars Per Train Cars Per Train Cars Per Train 103 66 51 97 62 44 2005 2009YTD 2005 2009YTD 2005 2009YTD Tons Per Car Tons Per Car Tons Per Car 111 103 103 107 101 91 2005 2009YTD 2005 2009YTD 2005 2009YTD Tons Tons per per
Slide 14: Increasing train length ... research & development
Increasing train length . . . research & development Example: Dynamic Trip Planning Increases train size as measured by cars, length or tons Requires fewer train starts and improves resource efficiency Reduces cost on a per unit basis and drives margin expansion 14 14
Slide 15: CSX network is key long-term strategic advantage
CSX network is key long-term strategic advantage Mega-regions Serves all major markets in the eastern United States Served by CSX — Markets account for over 65% of Midwest population and 75% of consumption Links all major industry and Northeast natural resource centers — Strong presence in coal,
Slide 16: Strengthening position for long-term value creation
Strengthening position for long-term value creation CSX emerging from recession as a stronger company — Earnings and margins have been resilient in current environment Operating team driving greater productivity — New technology and best practices are producing greater resource efficiency CSX
Slide 17: Citi Investment Research Industrial Manufacturing and Transportation Conference
Citi Investment Research Industrial Manufacturing and Transportation Conference November 2009 17 17
CSX — Citi Investment Research Industrial Manufacturing and Transportation Conference 2009 on 6ix