Csx Corporation · NASDAQ:CSX
Csx — Citi Global Industrials Conference 2013
9 slides from Csx's conference presentation, Sep 17, 2013
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: Presentation overview / Performance strong since freight recession
Presentation overview . . . CSX has a long-term proven track record of success — Performance has been sustained even through challenging business conditions Company’s network reaches all major eastern markets — Connects population centers, ports, manufacturing and natural resources Business po
Slide 3: Despite significant volume decline and mix shift / Strong first half, but challenging remainder
. . . despite significant volume decline and mix shift Volume Merchandise decline Units in Thousands — Industrial and housing economies Merchandise Intermodal Domestic Coal Export Coal have suppressed recovery 7,358 6,409 Intermodal growth 24% 6% — Driven by highway conversions 14% and new custo
Slide 4: Going forward, earning power supports distributions
Going forward, earning power supports distributions EPS Project 10-15% CAGR through 2015 off 2013 base Growth — Expect 2013 EPS to be roughly flat to 2012 levels Operating Targeting a high-60’s operating ratio by 2015 Ratio — Operating ratio in the mid-60’s remains focus longer-term Remains un
Slide 5: Business diversified across broad market base
Business diversified across broad market base 2012 Volume by Market 6.4 Million Units International Intermodal Chemicals 7% 18% Automotive 7% Metals 4% Agriculture 6% Domestic Intermodal Phosphates 5% 20% Food & Consumer 2% Forest Products 5% Minerals 4% Waste & Equipment 2% Domestic Coal Export Coa
Slide 6: Domestic run-rate stable despite lower natural gas
Domestic run-rate stable despite lower natural gas Domestic Coal Henry Hub Price CSX Weekly Domestic (per mmbtu) Volume in Thousands Nat Gas PRB ILB NAPP CAPP Q3 2013 Q3 2012 Avg H1 2013 Avg $6.00 20 18 $4.00 16 14 $2.00 12 $0.00 10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 27 28 29 30 31 32 33 34 35 36 So
Slide 7: Merchandise/intermodal has grown $2.2 billion
Merchandise/intermodal has grown $2.2 billion Merchandise/Intermodal Strong service is foundation Revenue in Millions for price and profitable growth — Operating at record levels $1,030 $8,250 Core pricing drives over $1,161 $1 billion rate/mix increase $6,059 — Reflects inflation plus pricing
Slide 8: CSX has successful H2R conversion platform
CSX has successful H2R conversion platform Intermodal Domestic Intermodal Volume versus ATA Truck Tonnage Indexed: January 2006 = 100 ATA Truck Tonnage CSX Average Weekly Domestic Intermodal Volume 200 180 160 140 120 100 80 2006 2007 2008 2009 2010 2011 2012 2013 Source: CSX Corporation and ATA 15
Slide 9: Wrap-up
Wrap-up . . . CSX has a long-term proven track record of success — Guidance through 2015 extends performance; delivers value for shareholders Merchandise/intermodal revenue up $2.2 billion — Three-year revenue growth sustained financial success despite coal headwinds Network well positioned fo