Csx Corporation · NASDAQ:CSX

Csx — 2017 Bank of America Merrill Lynch Transportation Conference

15 slides from Csx's conference presentation, May 18, 2017

  1. Slide 1: CSX Corporation: Progressing Forward

    CSX CORPORATION 2017 BANK OF AMERICA MERRILL LYNCH CONFERENCE Progressing Forward

  2. Slide 2: Forward Looking Disclosure

    Forward Looking Disclosure 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, cost

  3. Slide 3: Non-GAAP Disclosure

    Non-GAAP Disclosure CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K It

  4. Slide 4: Presentation overview

    Presentation overview . . .  First quarter results reflect a strong start for this year ― Strong top line growth and cost performance; second quarter outlook favorable  Precision Scheduled Railroading improves 2017 outlook ― Shareholder distributions reinforce management confidence  Operational c

  5. Slide 5: First quarter results reflect a strong start for 2017

    First quarter results reflect a strong start for 2017 Operating Ratio Earnings Per Share 75.2% 73.1% $0.51 69.2% $0.37 $0.39 390 bps Improvement 38% Growth 2016 2017 2017 Adjusted 2016 2017 2017 Adjusted  First quarter driven by strong revenue growth and efficiency gains ― Revenue grew 10% and effi

  6. Slide 6: Expect second quarter volume to modestly increase

    Expect second quarter volume to modestly increase Year-Over-Year Volume Growth First Quarter Second Quarter to Date 9% 5% 4% 4% 3% 3% 1% 1% 1% 1% 0% 0% (1%) (2%) Domestic International Industrial Construction Agricultural Coal Total Intermodal Intermodal Sector Sector Sector Note: Second quarter to

  7. Slide 7: Precision Scheduled Railroading drives benefits

    Precision Scheduled Railroading drives benefits Improve Operate Control Drive Asset Develop Service Safely Costs Utilization People Operational Focus Service Improvements & Productivity Improvements Balanced Improved Better Rolling Stock People Train Plan Frequency Reliability Utilization Efficiency

  8. Slide 8: Service and efficiency improvements already evident

    Service and efficiency improvements already evident Train Velocity Terminal Dwell % On-time % On-time (mph) (hours) Originations Arrivals 22.3 26.2 91.6 87.6 19.6 79.1 23.3 57.8 14% Improvement 11% Improvement 16% Improvement 52% Improvement WK 9 WK 19 WK 9 WK 19 WK 9 WK 19 WK 9 WK 19 Train Count Do

  9. Slide 9: Driving record efficiency through operating changes

    Driving record efficiency through operating changes CSX Hump Terminals  Reducing train counts and Transitioning operations to flat-switching merchandise handlings Transitioned to flat-switching operations ― Active train count down around 15% Hump Terminals ― Velocity up 7%; dwell down 9%1 Selkirk,

  10. Slide 10: Improved 2017 outlook

    Improved 2017 outlook . . .  2017 full-year adjusted expectations (excludes impact of 2017 restructuring charges) ― Operating ratio to be in the mid-60s, supported by record efficiency gains ― Earnings per share growth to be around 25% off 2016 reported base of $1.81 ― Free Cash Flow before dividen

  11. Slide 11: CSX Corporation: Progressing Forward

    CSX CORPORATION 2017 BANK OF AMERICA MERRILL LYNCH CONFERENCE Progressing Forward

  12. Slide 12: Appendices

    APPENDICES  Non-GAAP Reconciliations  Calculations of Other Key Financial Measures

  13. Slide 13: Non-GAAP Income Statement reconciliation

    Non-GAAP Income Statement reconciliation First Quarter Income Statement Dollars in millions GAAP Adjustments Non-GAAP Revenue $ 2,869 $ 0,000 $ 2,869 Expense Labor and Fringe 789 0 789 Materials, Supplies and Other 567 0 567 Fuel 218 0 218 Depreciation 320 0 320 Equipment and Other Rents 90 0 90 Res

  14. Slide 14: Calculations of other key financial measures

    Calculations of other key financial measures Return on Invested Capital Debt-to-EBITDA Last twelve month basis through first quarter Last twelve month basis through first quarter Dollars in millions 2017 2016 Dollars in millions 2017 2016 Operating Income $ 3,397 $ 3,445 Net Earnings $ 1,720 $ 1,882

  15. Slide 15: CSX Corporation: Progressing Forward

    CSX CORPORATION 2017 BANK OF AMERICA MERRILL LYNCH CONFERENCE Progressing Forward

CSX — 2017 Bank of America Merrill Lynch Transportation Conference on 6ix