Csx Corporation · NASDAQ:CSX
Csx — UBS Sixth Annual Best of Americas Conference 2011
12 slides from Csx's conference presentation, Sep 7, 2011
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, volumes, rates, cost-saving
Slide 2: CSX is UBS's top pick three years running
CSX is UBS’s top pick three years running Top-tier performance sustained since 2003 — Earnings growth, margin expansion, distributions to investors and stock returns Strong financial results targeted through 2015 — Earnings CAGR of 18% – 20% supports further shareholder distributions Economic
Slide 3: Solid foundation supports strong future growth
Solid foundation supports strong future growth 2010 2011 – 2015 Base Guidance Operating $3.1 12% – 14% Income billion CAGR Operating 65% by 71.1% Ratio 2015 Earnings 18% – 20% $1.35 Per Share CAGR 5 Performance supports strong cash deployment CSX has pursued balanced . . . and recent actions approac
Slide 4: Framework for capital deployment through 2015
Framework for capital deployment through 2015 Capital Share Dividends Investment Repurchase Investment is the first priority Dividends are the second Buybacks are the third priority of balanced approach priority of balanced approach of balanced approach Historical average investment Quarte
Slide 5: Quarter-to-date, CSX's volume is up 1% overall
Quarter-to-date, CSX’s volume is up 1% overall Merchandise continues to Year-Over-Year Growth grow at solid rates Second Quarter Third Quarter-to-Date — Reflects solid industrial growth 8% Coal declines are moderating on continued export strength — Domestic electricity generation 3% 3% and stock
Slide 6: CSX proved it can outperform in a downturn
CSX proved it can outperform in a downturn . . . Operating Continuing Operating Margin Income Growth EPS Growth Improvement (bps) 2006 – 2009 2006 – 2009 2006 – 2009 15% 450 28% (11%) (20) (180) (8%) (10%) (31%) CSX Peers S&P CSX Peers S&P CSX Peers S&P 500 500 500 CSX ranks among top CSX ranks amon
Slide 7: U.S. trends are favorable for CSX long-term
U.S. trends are favorable for CSX long-term Eastern U.S. highway congestion favors rail transportation long-term CSX serves over two thirds of U.S. population Significant majority of U.S. consumption in the east Connects all mega-regions in the eastern U.S. CSX Territory Network positioned t
Slide 8: Global growth will be led by developing nations
Global growth will be led by developing nations Europe Russia $21 $12 $4 $2 United States China $23 $25 2010 2020 $15 2010 2020 $6 Japan $8 2010 2020 2010 2020 $6 2010 2020 Brazil India $7 $5 $2 $2 2010 2020 2010 2020 Source: Global Insight GDP forecast (trillions of dollars); Europe includes German
Slide 9: Intermodal growth opportunity is also substantial
Intermodal growth opportunity is also substantial Domestic Opportunity International Opportunity Total Market: 14 Million Units U.S. Container TEU’s in Millions CSX NS Opportunity 45 41 37 2.9 33 9.3 29 24 2.2 Freight volume for lengths of haul over 550 miles 2009 2011 2013 2015 2017 2019 Sources: G
Slide 10: Appendix
201 UBS SIXTH ANNUAL BEST OF AMERICAS CONFERENCE Appendix
Slide 11: 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
Slide 12: GAAP Reconciliation
GAAP Reconciliation Full Year 2006 Results Dollars in millions 2006 Operating Income $ 2,137 Insurance Recoveries (168) Comparable Operating Income $ 1,969 Operating Margin 22.3% Insurance Recoveries (1.7%) Comparable Operating Margin 20.6% EPS from Continuing Operations $0.94 Insurance Recoveries (
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