Slide 1: Forward-Looking Statements
11 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, volumes, rates, cost-savin
Slide 2: Executive Summary
Executive Summary Michael Ward Chairman, President and Chief Executive Officer Second quarter performance . . . Volume 1,646K Revenue $3,019M Operating Income $926M Operating Ratio 69.3% EPS $0.46 Earnings Per Share Revenue growth — Driven by volume growth, core pricing and fuel recovery $0.46 $0.
Slide 3: Sales and Marketing Review
Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing Economy completing second year of expansion Industrial economy expanding . . . . . . and inventories remain low ISM Manufacturing ISM Manufacturing Purchasing Managers Index Customer Inventories Index 70 70 60 60
Slide 4: Revenue increases 13%; Total volume increases 3%
Revenue increases 13% Revenue $3,019M Volume 1,646K RPU $1,834 Revenue in Millions $120 $3,019 $150 $86 $2,663 Q2 2010 Volume Rate/Mix Fuel Price Q2 2011 Impact 77 Total volume increases 3% Revenue $3,019M Volume 1,646K RPU $1,834 Year-Over-Year Change in Volume Volume % of (000) Total Merchandise 6
Slide 5: Revenue per unit increases 10%; Coal revenue increases 15%
Revenue per unit increases 10% Revenue $3,019M Volume 1,646K RPU $1,834 Revenue Per Unit Second quarter summary $1,834 Same store sales pricing up $1,666 7.2% year-over-year $1,638 $1,549 — Full-year rail inflation is forecasted by Global Insight to be 4.6% Increased fuel recovery contributed to
Slide 6: Intermodal revenue increases 24%; Merchandise markets show solid revenue growth
Intermodal revenue increases 24% Revenue $376M Volume 581K RPU $647 Second Quarter Second quarter summary Year-Over-Year Change — International growth on solid economy and customer gains Revenue 24% — Domestic volume grew in a Volume 8% tightening truck market RPU 15% — RPU increases on core prici
Slide 7: Merchandise revenue increases 11%; Sales and Marketing wrap-up
Merchandise revenue increases 11% Revenue $1,612M Volume 677K RPU $2,381 Second Quarter Second quarter summary Year-Over-Year Change — Volume led by Forest Products, Emerging Markets and Metals Revenue 11% — RPU increases on higher yields Volume 3% and fuel recovery RPU 8% Ongoing drivers — Auto
Slide 8: Operations Review
Operations Review David Brown Executive Vice President Chief Operating Officer Building operating performance excellence Culture of commitment focused on driving performance — Safety Safety measures remain strong OPERATIONS SAFETY — Productivity RELIABILITY Additional resources brought on-line Mut
Slide 9: CSX is a leader in one of Nation's safest industries; Expense growth slightly exceeds volume growth
CSX is a leader in one of Nation’s safest industries FRA Personal Injury Rate FRA Train Accident Rate 1.38 2.81 2.83 1.32 2.59 1.14 2.37 0.89 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2008 Q2 2009 Q2 2010 Q2 2011 17 17 Expense growth slightly exceeds volume growth Non-Fuel Operating Expense Versus Volume V
Slide 10: Operations summary; All measures improve from March levels
Operations summary . . . Train Performance System Performance On-time Originations Train Velocity (mph) 83% 78% 21.7 75% 20.9 68% 20.0 19.8 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2008 Q2 2009 Q2 2010 Q2 2011 On-time Arrivals Terminal Dwell (hours) 81% 26.0 65% 71% 23.3 24.1 23.7 56% Q2 2008 Q2 2009 Q2 2
Slide 11: Committed to further service improvements; Operations wrap-up
Committed to further service improvements Crew hiring will accelerate in second half — T&E personnel will come online at a rate of 30-40 per week Locomotive additions will increase recoverability — Up to 250 locomotives will be added in the second half Car acquisitions will accommodate growth
Slide 12: Financial Review: Second quarter summary
Financial Review Oscar Munoz Executive Vice President Chief Financial Officer Second quarter summary . . . Driving profitable growth with a solid economic backdrop Top Line Pricing remains above rail inflation Results Volume growing at rates above the general economy Resource increase suppor
Slide 13: Record second quarter financial results; Labor and Fringe expense increases 6%
Record second quarter financial results Second Quarter Results Dollars in millions, except EPS 2011 2010 Variance Revenue $ 3,019 $ 2,663 13% Expense 2,093 1,895 (10%) Operating Income $ 926 $ 768 21% Interest Expense (134) (135) Other Income (net) - 9 Income Taxes (286) (228) Net Earnings $ 506 $ 4
Slide 14: MS&O expense increases 1%; Fuel expense increases 42%
MS&O expense increases 1% MS&O Expense Second Quarter Dollars in Millions MS&O Analysis in Millions $588 $551 $557 2010 MS&O Expense $ 551 $444 Variance Inflation (16) Piers and Terminals (8) Volume (8) Other (4) Prior Year Property Sale 30 Subtotal (6) 2011 MS&O Expense $ 557 Q2 2008 Q2 2009 Q2 201
Slide 15: Depreciation and rents each increase 7%; Full-year outlook remains favorable
Depreciation and rents each increase 7% Depreciation Rent Expense Dollars in Millions Dollars in Millions $246 $112 $226 $227 $230 $98 $95 $89 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2008 Q2 2009 Q2 2010 Q2 2011 29 29 Full-year outlook remains favorable Volume growth expected to exceed GDP and IDP Co
Slide 16: Long-term earnings guidance through 2015; supports strong capital deployment
Long-term earnings guidance through 2015 . . . 2010 2011 – 2015 Base Guidance Operating 65% by 71.1% Ratio 2015 Operating $3.1 12% – 14% Income billion CAGR Earnings 18% – 20% $1.35 Per Share CAGR 31 31 . . . supports strong capital deployment Business investment is the first priority of balanced
Slide 17: Concluding Remarks
Concluding Remarks Michael Ward Chairman, President and Chief Executive Officer Relentless pursuit of excellence . . . 34 34
Slide 18: 2011 Second Quarter Earnings Conference Call
2011 SECOND QUARTER EARNINGS CONFERENCE CALL