Slide 1: 2022 First Quarter Earnings Conference Call
2022 FIRST QUARTER EARNINGS CONFERENCE CALL 04.20.2022
Slide 2: Forward Looking Disclosure
FORWARD LOOKING DISCLOSURE 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, cost
Slide 3: Non-GAAP Measures Disclosure
NON-GAAP MEASURES DISCLOSURE CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulati
Slide 4: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS 1,498K $3,413M $1,282M Volume Revenue Op. Income First quarter results reflect Operating Income Operating Ratio Earnings Per Share solid performance 62.4% $1,282M 60.9% $0.39 Operating income up 16% to $1.3 $1,101M $0.31 billion driven by increased revenue Operating ratio re
Slide 5: First Quarter Revenue Highlights
FIRST QUARTER REVENUE HIGHLIGHTS Revenue gains driven by strong pricing and Q1 Revenue Up 21% Year Over Year higher fuel surcharge Chemicals increased due to higher revenue per unit and more shipments of core chemical products, partially offset by lower shipments of crude oil and other Chemicals 7%
Slide 6: Accelerating Growth Through Industrial Development
ACCELERATING GROWTH THROUGH INDUSTRIAL DEVELOPMENT Industrial Development Total Customer Industrial Development CSX Select Sites Projects / Expansions Investment Pipeline ~10k 90+ $3.1 Billion 500+ ACRES ACROSS 19 SITES IN 2021 IN 2021 PROJECTS IN PIPELINE Experienced business development team helps
Slide 7: First Quarter Safety Highlights
FIRST QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.05 0.95 0.91 0.84 0.78 Safety improvement continues in both injuries and accidents sequentially and year-over-year Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Injury and accident counts near record FRA Train
Slide 8: First Quarter T&E Hiring Highlights
FIRST QUARTER T&E HIRING HIGHLIGHTS Employees in Training Conductor Promotions Active T&E Employees(a) Average Daily Employees Total Employees Average Daily Employees 561 6,629 6,593 303 6,502 6,432 6,441 6,459 436 6,397 6,218 156 223 Omicron 160 102 Peak 82 108 35 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 2
Slide 9: First Quarter Operating Highlights
FIRST QUARTER OPERATING HIGHLIGHTS Committed to returning service to pre- Intermodal Trip Plan Carload Trip Plan Performance Performance pandemic levels 87% 64% Successful hiring initiatives easing PERCENT ON TIME PERCENT ON TIME labor constraints across network ‒ COVID-related mark offs are now min
Slide 10: First Quarter Earnings Summary
FIRST QUARTER EARNINGS SUMMARY First Quarter Income Statement Dollars in Millions 2022 2021 Variance x Revenue $ 3,413 $ 2,813 21% Expense 2,131 1,712 (24%) Operating Income $ 1,282 $ 1,101 16% Interest Expense & Other Income – Net (153) (164) 7% Income Tax Expense (270) (231) (17%) Net Earnings $ 8
Slide 11: Expense Up $419M
FIRST QUARTER EXPENSE UP $419M Q1 22 Change in Expense Q1 21 Total expense increase of $419M includes ~$215M from Quality Carriers and ~$110M Labor & $692 of fuel price impact Labor & Fringe Fringe $620 Purchased Purchased $675 Inflation excluding locomotive fuel consistent Services Services&&Other
Slide 12: Free Cash Flow and Distributions
FIRST QUARTER FREE CASH FLOW AND DISTRIBUTIONS Free Cash Flow Shareholder Before Dividends* Distributions In Millions In Millions Buybacks Dividends $1,272 $1,234 $976 $934 $208 $218 $913 $764 $776 $212 $213 $206 $1,064 $1,016 $701 $551 $570 Q1 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 YTD YTD * See Ap
Slide 13: Looking Forward
LOOKING FORWARD Targeting full-year double digit revenue and operating income growth, excluding impacts from the Virginia real estate transaction Revenues to benefit from high coal prices and fuel surcharges in the near-term Continue to increase transportation headcount to capture increasing rail vo
Slide 14: Appendix
APPENDIX Non-GAAP Free Cash Flow Reconciliation
Slide 15: Non-GAAP Free Cash Flow Reconciliation
NON-GAAP FREE CASH FLOW RECONCILIATION Free Cash Flow Three Months Ended Dollars in millions Mar 31, 2022 Mar 31, 2021 Net Cash Provided by Operating Activities $ 1,299 $ 1,232 Property Additions (331) (306) Proceeds and Advances from Property Dispositions 8 - Other Investing Activities(a) n/a 8 Fre
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