Csx Corporation · NASDAQ:CSX
Csx — Bernstein 34th Annual Strategic Decisions Conference 2018
10 slides from Csx's conference presentation, May 30, 2018
Slide 1: Bernstein 34th Annual Strategic Decisions Conference
BERNSTEIN 34TH ANNUAL STRATEGIC DECISIONS CONFERENCE James M. Foote President and Chief Executive Officer
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: CSX: Far-Reaching and Diverse Revenue Base
CSX: FAR-REACHING AND DIVERSE REVENUE BASE CSX network reaches nearly two-thirds of the U.S. Population LTM Revenue by Market: ~$11 Billion* 20% 11% Automotive Chemicals 6% Detroit Chicago NY/NJ Pittsburgh Philadelphia Indianapolis Baltimore Cincinnati Agriculture & East St. Louis Intermodal 11% Lou
Slide 5: Transforming CSX into the Best Run Railroad in North America
TRANSFORMING CSX INTO THE BEST RUN RAILROAD IN NORTH AMERICA TRANSITIONING TO NEW SCHEDULED RAILROAD BUSINESS MODEL SAFEST CONSISTENT, RELIABLE SERVICE BEST OPERATING MARGINS BERNSTEIN STRATEGIC DECISIONS CONFERENCE 5
Slide 6: Streamlining Network and Asset Base
STREAMLINING NETWORK AND ASSET BASE Removing large Hump Yards 12 4 fixed cost centers Operating Regions 9 4 Streamlining operations Reducing footprint Major Locomotive Shops 10 5 While improving locomotive failure rate by 26% Consolidating to Dispatching Offices 9 1 improve communication Improving l
Slide 7: CSX Has Made Step Function Margin Improvements
CSX HAS MADE STEP FUNCTION MARGIN IMPROVEMENTS Trailing Twelve-Month Adjusted Operating Ratio 69.4% 68.0% 67.9% 66.5% 65.1% 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 Note: Non-GAAP results exclude restructuring charges and tax reform benefit on equity earnings from affiliates, and further adjusted for
Slide 8: First Quarter Financial Highlights
FIRST QUARTER FINANCIAL HIGHLIGHTS Earnings per Share Shareholder Distributions ($M) 1st Quarter Record Expect Full Year Record $0.78 $1,030 $0.51 $424 53% Growth 143% Growth Q1 2017 Adjusted Q1 2018 Q1 2017 Q1 2018 Note: Q1 2017 results adjusted for restructuring charges BERNSTEIN STRATEGIC DECISIO
Slide 9: CSX Posted Best Margins in the Industry
CSX POSTED BEST MARGINS IN THE INDUSTRY Q1 2018 Operating Ratio 69.3% 68.9% 67.5% 67.8% Industry Leader 65.8% 64.6% 63.7% CSX UNP KSU CP CNI BNSF NSC BERNSTEIN STRATEGIC DECISIONS CONFERENCE 9
Slide 10: Becoming the Best Railroad in North America
BECOMING THE BEST RAILROAD IN NORTH AMERICA 3-Year Cumulative Operating Ratio Free Cash Flow $8.5B 69.4% 60.0% $3.4B 940 bps Improvement > $5B Increase 2016 2020 2015-2017 2018-2020 Improving margins with significant Generating substantial cash to support efficiency gains shareholder distributions B
CSX — Bernstein 34th Annual Strategic Decisions Conference 2018 on 6ix