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 and Chief Executive Officer First quarter performance . . . Volume 1,635K Revenue $3,027M Operating Income $843M Operating Ratio 72.2% EPS $0.45 Earnings Per Share First quarter results — Double-digit EPS growth $0.45 Headwinds near-term $0.40 — Strong U.S
Slide 3: Financial Review: First Quarter Results
Financial Review Fredrik Eliasson Executive Vice President Chief Financial Officer First quarter earnings summary . . . First Quarter Results Dollars in millions, except EPS 2015 2014 Variance Revenue $ 3,027 $ 3,012 0% Expense 2,184 2,273 4% Operating Income $ 843 $ 739 14% Interest Expense (134) (
Slide 4: Overall outlook for second quarter is flat
Overall outlook for second quarter is flat Outlook Markets Drivers Food & Consumer Continued growth in frozen food shipments Favorable Intermodal Success with H2R conversions; growth with existing customers 49% of volume Minerals Construction market driving aggregate demand Waste & Equ
Slide 5: Increasing dividend 13%; initiating new $2 billion buyback program
Increasing dividend 13% starting in second quarter Dividends Represents 13th increase in Paid Per Share the last 10 years — CAGR of 26% over the period $0.18 $0.16 $0.15 Reflects underlying strength $0.14 in the core business — 36% payout ratio of TTM EPS Expanding payout range to 30-40% going
Slide 6: Financial wrap-up
Financial wrap-up . . . Produced double-digit EPS growth for first quarter — Top line growth less than expectations; partially offset by pricing and productivity Coal headwinds increase for the remainder of the year — 2015 expectation: domestic at least 5% down; export at 30 million tons Secon
Slide 7: Relentless pursuit of excellence
Relentless pursuit of excellence . . . 13 14