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: Executive Summary: Fourth quarter performance
Executive Summary Michael Ward Chairman, President and Chief Executive Officer Fourth quarter performance . . . Volume 1,619 Revenue $2,951M Operating Income $841M Operating Ratio 71.5% EPS $0.43 Earnings Per Share Revenue growth — Driven by core pricing gains and fuel recovery $0.43 $0.38 13% O
Slide 3: Full-year performance
Full-year performance . . . Volume 6,476K Revenue $11,743M Operating Income $3,418M Operating Ratio 70.9% EPS $1.67 Operating Operating Earnings Income in Billions Ratio Per Share $3.4 71.1% 70.9% $1.67 $3.1 $1.35 Improves 11% Improves 20 bps Improves 24% 2010 2011 2010 2011 2010 2011 On track for a
Slide 4: Revenue increases 12%
2010 revenue, volume, RPU include extra week Revenue in Millions Volume (000) $2,951 1,691 (93) 1,598 1,619 $2,816 ($171) 12% 1% $2,645 Q4 Extra Comparable Q4 2010 Week Q4 2010 2011 Revenue Per Unit $1,823 $1,665 ($10) $1,655 10% Q4 Extra Comparable Q4 Q4 Extra Comparable Q4 2010 Week Q4 2010 2011 2
Slide 5: Total volume increases 1%; RPU increases 10%
Total volume increases 1% Revenue $2,951M Volume 1,619K RPU $1,823 Year-Over-Year Change in Volume Volume % of (000) Total Merchandise 666 41% 5% Intermodal 579 36% 0% Coal 374 23% (3%) Total 1,619 100% 1% Note: All data expressed on a comparable 13-week basis; see reconciliation to GAAP in appendix
Slide 6: Coal revenue increases 13%; Intermodal revenue increases 13%
Coal revenue increases 13% Revenue $915M Volume 374K RPU $2,447 Fourth Quarter Fourth Quarter Year-Over-Year Change — Lower demand and low natural gas prices impact domestic volume Revenue 13% — Europe, Asia and South America drive increased export volume Volume (3%) RPU 17% Ongoing Drivers — De
Slide 7: Merchandise revenue increases 11%; 2012 volume outlook
Merchandise revenue increases 11% Revenue $1,599M Volume 666K RPU $2,401 Fourth Quarter Fourth Quarter Year-Over-Year Change — Fertilizer growth offset feed declines in Agriculture Revenue 11% — Industrial growth led by metals and automotive markets Volume 5% — Construction growth led by an RPU 5%
Slide 8: Operations Review
Operations Review Cindy Sanborn Vice President Chief Transportation Officer Delivering performance excellence Safety — Performance measures remain strong in the quarter Productivity — Resources staged for restoring operating leverage in 2012 Operations reliability — Fluidity strong across all
Slide 9: Safety leader; fourth quarter operations driving strong results
CSX is a leader in one of nation’s safest industries FRA Personal Injury Rate FRA Train Accident Rate Fourth Quarter Fourth Quarter 1.22 2.85 2.84 0.99 1.03 2.40 0.93 2.27 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Full Year Full Year 1.23 1.20 3.01 2.95 1.01 2.69 0.91 2.32 2008
Slide 10: Coal and intermodal networks performance
Coal network is running efficiently Velocity (mph) Cars Per Train 17.3 17.4 105 16.8 104 103 Q4 Q4 Q4 Q4 Q4 Q4 2009 2010 2011 2009 2010 2011 Strong velocity and productivity improvements driving efficiency Utilities With domestic coal down, resources Export Piers re-deployed across other network
Slide 11: Merchandise network; resource investments staged for 2012
Merchandise network running fluidly Velocity (mph) Dwell (hours) 21.7 24.3 25.5 25.4 20.8 20.9 Q4 Q4 Q4 Q4 Q4 Q4 2009 2010 2011 2009 2010 2011 Service measures improving, even with volume up 5% in fourth quarter Major Terminals Service levels are expected to remain stable at these high levels 20
Slide 12: Targeting $130 million productivity savings in 2012
Targeting $130 million productivity savings in 2012 Productivity Savings $264 $193 $151 $138 $142 $130 $103 $86 $79 2004 2005 2006 2007 2008 2009 2010 2011 2012 Target 23 Operations wrap-up . . . Safety performance remains strong — CSX continues to be a leader in one of the nation’s safest industr
Slide 13: Financial Review: Fourth quarter earnings summary
Financial Review Oscar Munoz Executive Vice President Chief Operating Officer Fourth quarter earnings summary . . . Fourth Quarter Results Dollars in millions, except EPS 2011 2010 Variance Revenue $ 2,951 $ 2,816 5% Expense 2,110 1,970 (7%) Operating Income $ 841 $ 846 (1%) Interest Expense (140) (
Slide 14: Labor and Fringe flat; MS&O expense increased 17%
Labor and Fringe expense is flat Employee Headcount Fourth Quarter Labor Analysis in Millions 33,363 32,139 29,417 30,231 2010 Labor Expense $ 776 Variance Inflation (28) Training (9) Incentive Compensation 22 Volume and Other 12 Subtotal (3) 2011 Labor Expense $ 779 Q4 2008 Q4 2009 Q4 2010 Q4 2011
Slide 15: Fuel expense increased 22%; depreciation decreased 8%
Fuel expense increased 22% Locomotive Fuel Price Fourth Quarter Dollars per Gallon Fuel Analysis in Millions $3.05 2010 Fuel Expense $ 346 $2.42 Variance $2.22 $2.03 Price (81) Efficiency (6) Volume 16 Non-locomotive fuel (6) Subtotal (77) 2011 Fuel Expense $ 423 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Note
Slide 16: Full-year earnings summary; non-fuel costs
Full-year earnings summary . . . Full-year Results Dollars in millions, except EPS 2011 2010 Variance Revenue $ 11,743 $ 10,636 10% Expense 8,325 7,565 (10%) Operating Income $ 3,418 $ 3,071 11% Operating Ratio 70.9% 71.1% Net Earnings $ 1,822 $ 1,563 17% Fully Diluted Shares in Millions 1,089 1,154
Slide 17: 2012 capital investment; dividend and buyback trends
Capital investment totals $2.25 billion in 2012 Infrastructure 2012 Capital Investment — Expected to be flat to 2011 level Regulatory Infrastructure Equipment Strategic Equipment — Freight car and locomotive purchases for replacement, growth 12% 12% Strategic 24% — Supports “Grow to 65” initia
Slide 18: Financial wrap-up
Financial wrap-up . . . Fourth quarter results reflect resource investments — Costs up marginally versus third quarter, but service now above 2010 levels Full year earnings per share up 24% — Delivered price above inflation and growth ahead of the economy, with resource investments translating t
Slide 19: Relentless pursuit of excellence . . .
Relentless pursuit of excellence . . . 37 38
Slide 20: Appendix: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation 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 21: Non-GAAP Reconciliation – Fourth Quarter 2010 Revenue and Volume
Non-GAAP Reconciliation – Fourth Quarter 2010 Revenue Less Comparable Dollars in millions As Reported Extra Week 13-week Basis Chemicals $ 383 $ 26 $ 357 Phosphates and Fertilizers 126 10 116 Automotive 230 10 220 Emerging Markets 155 6 149 Agricultural Products 288 19 269 Forest Products 160 12 148
Slide 22: Non-GAAP Reconciliation – Fourth Quarter 2010 RPU
Non-GAAP Reconciliation – Fourth Quarter 2010 RPU Less Comparable As Reported Extra Week 13-week Basis Chemicals $ 3,274 $ (1) $ 3,275 Phosphates and Fertilizers 1,658 24 1,634 Automotive 2,396 5 2,391 Emerging Markets 1,449 2 1,447 Agricultural Products 2,380 (1) 2,381 Forest Products 2,286 9 2,277