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 First quarter performance . . . Volume 1,602 Revenue $2,966M Operating Income $856M Operating Ratio 71.1% EPS $0.43 Earnings Per Share Revenue growth — Record first quarter revenue despite utility coal weakness $0.43
Slide 3: Sales and Marketing Review
Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing Overall outlook for second quarter is favorable Outlook Markets Drivers Intermodal Truck conversions and new customer gains Automotive Growth in automobile production Favorable Metals Steel for auto,
Slide 4: Revenue increases 6%; Coal revenue decreases 5%
Revenue increases 6% Revenue $2,966M Volume 1,602K RPU $1,851 Revenue in Millions $66 $2,966 $64 $26 $2,810 Q1 2011 Volume Rate/Mix Fuel Price Q1 2012 7 Coal revenue decreases 5% Revenue $832M Volume 331K RPU $2,514 First Quarter First Quarter Year-Over-Year Change — Lower demand and low natural g
Slide 5: Intermodal revenue increases 19%; Merchandise revenue increases 10%
Intermodal revenue increases 19% Revenue $389M Volume 600K RPU $648 First Quarter First Quarter Year-Over-Year Change — Record domestic volume on continued truck conversions Revenue 19% — Strong international growth driven by onboarding new Maersk traffic Volume 9% RPU 10% — RPU higher on positive
Slide 6: Sales and Marketing wrap-up
Sales and Marketing wrap-up . . . Economic backdrop favorable for 2012 — Most major economic indicators signal continued growth Second quarter volume and revenue outlook favorable — Volume outlook stable to favorable for 90% of the traffic base Utility coal weakness expected to continue — Head
Slide 7: Delivering performance excellence; CSX is a leader in one of nation's safest industries
Delivering performance excellence Safety — Performance measures remain strong, with improving trend Safety Service — Key service measures are at or near record levels Strategy People Service Productivity — Cost controls and productivity savings drive margin expansion Productivity Strategy —
Slide 8: First quarter on-time performance is at high levels; System performance improvement
First quarter 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 79% 89% 77% 83% 67% 69% 59% 66% Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2009 Q1 2010 Q1 2011 Q1 2012 15 System performance showing strong improvement
Slide 9: Service at high levels across all three networks; Cost control expands margin
Service at high levels across all three networks Coal Intermodal Merchandise Velocity (mph) Velocity (mph) Velocity (mph) 18.4 30.9 21.8 30.1 20.7 21.0 29.8 19.7 16.4 16.4 16.6 28.3 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 Average train length
Slide 10: Operational strategy positions company long-term
Operational strategy positions company long-term Ensuring safety as first priority — CSX continues to be a leader in one of the nation’s safest industries Emphasizing service excellence across network — Maintaining high levels of reliability and customer service Deploying asset utilization to
Slide 11: First quarter earnings summary; Expenses up 4%
First quarter earnings summary . . . First Quarter Results Dollars in millions, except EPS 2012 2011 Variance Revenue $ 2,966 $ 2,810 6% Expense 2,110 2,037 (4%) Operating Income $ 856 $ 773 11% Interest Expense (144) (140) Other Income (net) 4 5 Income Taxes (267) (243) Net Earnings $ 449 $ 395 14%
Slide 12: Labor and Fringe expense increases 1%; MS&O expense increases 2%
Labor and Fringe expense increases 1% Employee Headcount First Quarter Labor Analysis in Millions 32,393 31,175 30,444 2011 Labor Expense $ 765 29,310 Variance Hiring and Training (12) Volume and Other (9) Inflation (8) Incentive Compensation 24 Subtotal (5) 2012 Labor Expense $ 770 Q1 2009 Q1 2010
Slide 13: Fuel expense increases 10%; Strong incremental margins for 2012
Fuel expense increases 10% Locomotive Fuel Price First Quarter Dollars per Gallon Fuel Analysis in Millions $3.15 $2.86 2011 Fuel Expense $ 402 Variance $2.11 Price (37) $1.39 Efficiency (4) Volume (2) Non-locomotive fuel 1 Subtotal (42) 2012 Fuel Expense $ 444 Q1 2009 Q1 2010 Q1 2011 Q1 2012 25 Sti
Slide 14: Earnings growth supports balanced cash deployment; Improving credit profile
Earnings growth supports balanced cash deployment Capital investment plan remains $2.25 billion for 2012 Capital Total PTC investment increasing $500 million to $1.7 billion Investment Core investment in infrastructure, rolling stock and strategic capital remains the same at 16% – 17% of reven
Slide 15: Financial wrap-up
Financial wrap-up . . . Delivered record results despite utility coal headwind — Strong growth in Merchandise and Intermodal offset utility coal weakness — Strong safety, service, productivity and cost performance help drive results Still expecting full-year record financial performance — Offset
Slide 16: Relentless pursuit of excellence
Relentless pursuit of excellence . . . 31 32