Csx Corporation · NASDAQ:CSX

Csx — Wolfe Research Global Transportation Conference 2009

15 slides from Csx's conference presentation, May 20, 2009

  1. Slide 1: Wolfe Research Global Transportation Conference May 2009

    Wolfe Research Global Transportation Conference May 2009 11

  2. Slide 2: Forward-Looking Disclosure

    Forward-Looking Disclosure This information and other statements by the company 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, cost-savings, expenses, or other

  3. Slide 3: Core focus remains shareholder value creation

    Core focus remains shareholder value creation Top-Tier TSR Balanced Deployment of Capital Price Productivity Growth Deliver sustainable revenue Drive greater cost efficiency Focus on sustainable growth growth through focus on same through redesigning processes by leveraging our market store sales pr

  4. Slide 4: First quarter results resilient despite volume decline

    First quarter results resilient despite volume decline Comparable Operating Comparable Operating Margin and Volume Income and Volume 23.1% 23.2% $626 21.3% $522 $496 19.3% $467 1,826 1,826 1,755 1,717 1,755 1,717 1,419 1,419 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Operating M

  5. Slide 5: Recession continues to drive lower volume levels

    Recession continues to drive lower volume levels Year-Over-Year Volume Change First Quarter Second Quarter-to-date % of CSX Commodity Groups CSX Volume (36%) Industrial ƒ Chemicals 11% (31%) Segment ƒ Metals (24%) Housing ƒ Forest Products 11% (23%) Products ƒ Emerging Markets (18%) Consumer ƒ Autom

  6. Slide 6: Train network tracking with lower business activity

    Train network tracking with lower business activity Year-Over-Year Change in Volume and Crew Starts Q4 2008 Q1 2009 Q2 2009 20% 20% Year-to-date, Year-to-date, volume volume isis down down 19% 19% 10% 10% Road Crew Starts and and crew crew starts starts are are down down 16% 16% Carload Volume 0% 0%

  7. Slide 7: Resource levels continue to be rightsized

    Resource levels continue to be rightsized Active Locomotives Active T&E Employees Q4 2008 Q1 2009 Q2 2009 Q4 2008 Q1 2009 Q2 2009 4,200 13,200 3,950 12,580 3,700 11,960 3,450 11,340 3,200 10,720 Q1 Q1 down down 9% 9% year-over-year year-over-year Q1 Q1 down down 10% 10% year-over-year year-over-year

  8. Slide 8: Service performance is strong and improving

    Service performance is strong and improving Service Reliability Network Performance On-time Originations Train Velocity (mph) 86% 22.0 80% 77% 75% 20.4 20.0 19.6 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2006 Q2 2007 Q2 2008 Q2 2009 On-time Arrivals Terminal Dwell (hours) 85% 25.1 69% 23.5 23.3 65% 22.8 60

  9. Slide 9: Service levels supporting above-inflation pricing

    Service levels supporting above-inflation pricing Inflation-Adjusted Pricing Indexed: 1981 = $100 Pre-deregulation, rail pricing kept pace with inflation During the first 23 years after the passage of the Staggers Act, rail pricing declined by 60% R2 $100 $51 $40 1968 1972 1976 1980 1984 1988 1992 1

  10. Slide 10: Wrap up: Rail Resiliency during recession

    Wrap up . . . „ Volume declining at double-digit rates „ Rightsizing and cost efficiency focus has intensified „ Focus on core pricing growth remains firm R2 translates into Rail Resiliency during recession 10 10

  11. Slide 11: Wolfe Research Global Transportation Conference May 2009

    Wolfe Research Global Transportation Conference May 2009 11 11

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: GAAP Reconciliation Disclosure

    GAAP Reconciliation Disclosure CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures used to manage the company’s business that fall within the meaning of Regulation G (Disclosure

  14. Slide 14: GAAP Reconciliation

    GAAP Reconciliation First Quarter Dollars in millions, except Earnings Per Share 2006 2007 2008 2009 Operating Income $ 496 $ 485 $626 $522 Less: Gain on Insurance Recoveries - (18) - - Comparable Operating Income $ 496 $ 467 $626 $522 Operating Margin 21.3% 20.0% 23.1% 23.2% Less: Gain on Insurance

  15. Slide 15: Wolfe Research Global Transportation Conference May 2009

    Wolfe Research Global Transportation Conference May 2009 15 15

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