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 Third quarter performance . . . Volume 1,643K Revenue $2,999M Operating Income $854M Operating Ratio 71.5% EPS $0.46 Earnings Per Share Revenue growth — Volume and overall pricing strength drive top-line results $0.46 $
Slide 3: Sales and Marketing Review
Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing Sales and Marketing summary . . . Volume (000) Revenue (millions) Revenue per Unit All-in Core Pricing 1,643 $2,999 $1,825 1.5% $2,894 $1,809 1,600 1.0% Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3
Slide 4: Coal revenue decreases 9%; Merchandise revenue increases 7%
Coal revenue decreases 9% Revenue $720M Volume 299K RPU $2,408 Third Quarter Third Quarter Summary Year-Over-Year Change Domestic impacted by lower Revenue (9%) electrical demand; high stockpiles Volume (7%) (2%) Export volume impacted by RPU global oversupply of coal Coal Lower export rates m
Slide 5: Intermodal revenue increases 8%; Fourth quarter outlook is favorable
Intermodal revenue increases 8% Revenue $431M Volume 657K RPU $656 Third Quarter Third Quarter Summary Year-Over-Year Change Domestic volume driven by H2R Revenue 8% conversions and organic growth Volume 6% International volume up as new RPU 2% services offset carrier port shifts Intermodal Re
Slide 6: Sales and Marketing wrap-up
Sales and Marketing wrap-up . . . Macro-economic environment conducive for growth — Fourth quarter GDP expected to be 1.7%; ISM indexes also support growth Merchandise growth driven by solid macro-environment — Support is broad-based across industrial, agricultural and construction sectors Dem
Slide 7: Operations summary
Operations summary . . . Safety Service Network Efficiency Annual Savings FRA Personal Injury On-time Originations Train Velocity (mph) (millions) 0.76 0.78 89.6% 90.3% 23.3 22.6 2013 $150+ 2012 $197 2011 $79 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 2010 $151 2009 $264 FRA Train On-time Termi
Slide 8: Driving efficiency by adding to existing train starts; Operations wrap-up
Driving efficiency by adding to existing train starts GTM per Road Crew Start GTM per crew start is a In Thousands measure of train density — CSX is driving longer trains, Up 6% 840 absorbing growth 792 Crew costs are almost directly variable with starts — Greater crew efficiency helps drive low
Slide 9: Financial Review
Financial Review Fredrik Eliasson Executive Vice President Chief Financial Officer Financial summary . . . Revenue Op Income Op Ratio EPS Dollars in billions Dollars in millions $3.0 $854 $854 71.5% $0.46 $2.9 70.5% $0.44 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 18
Slide 10: Fuel lag benefit is $10 million year-over-year; Total expense increases 5%
Fuel lag benefit is $10 million year-over-year Fuel Surcharge Lag Impact Weekly Highway Diesel Monthly Highway Diesel (two-month lag) Negative Impact Positive Impact $10 million year-over-year positive lag impact ($16) Million $5 Million ($5) Million $13 Million ($6) Million Q3 2012 Q4 2012 Q1 2013
Slide 11: Third quarter expense analysis; Financial wrap-up
Third quarter expense analysis . . . Labor Analysis in Millions MS&O Analysis in Millions Fuel Analysis in Millions 2012 Labor Expense $ 754 2012 MS&O Expense $ 525 2012 Fuel Expense $ 397 Efficiency 15 Efficiency and Volume 17 Sunrail gain (30) Price 3 Incentive Compensation (36) Inflation (10) Vol
Slide 12: Concluding Remarks
Concluding Remarks Michael Ward Chairman, President and Chief Executive Officer Relentless pursuit of excellence . . . 24
Slide 13: 2013 Third Quarter Earnings Conference Call
2013 THIRD QUARTER EARNINGS CONFERENCE CALL