1 1 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, cost-savings, expenses, or other financial items; statements of management’s plans, strategies and objectives for future operation, and management’s expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company does update any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others; (i) the company’s success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic or business conditions, including those affecting the rail industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; and (vi) natural events such as severe weather conditions or pandemic health crises. Other important assumptions and factors that could cause actual results to differ materially from those in the forward- looking statements are specified in the company’s SEC reports, accessible on the SEC’s website at www.sec.gov and the company’s website at www.csx.com. 2 2
Executive Summary Executive Summary Michael Ward Chairman, President and Chief Executive Officer Fourth quarter performance . . . Fourth quarter performance . . . � Macro-economy recovering Earnings Per Share From Continuing Operations — Year-over-year comparisons stabilized post-Thanksgiving $0.92 $0.86 � Revenue declines 13% $0.77 — Lower volume and FSC more than offset core price increases 16% 16% Decline Decline � Operating ratio at 74.9% — Safety and service performance remains strong — Productivity efforts continue to support improving margins 2007 2008 2009 4 4
Full-year performance . . . Full-year performance . . . Record operating ratio . . . . . . Strong core earning power Operating Income (millions) 79.3% $2,768 $2,260 $2,285 $1,981 77.5% 75.4% 74.7% 2006 2007 2008 2009 EPS - Continuing Operations $3.66 $2.87 $2.77 $2.24 2006 2007 2008 2009 2006 2007 2008 2009 Note: Data for 2006 excludes certain items for comparison purposes. See GAAP Reconciliation 5 5 Sales and Marketing Review Sales and Marketing Review Clarence Gooden Executive Vice President Sales and Marketing
Revenue declines 13% to $2.3 billion Revenue declines 13% to $2.3 billion Revenue $2,320M Volume 1,498K RPU $1,549 Revenue in Millions $2,674 ($182) ($175) $3 $2,320 Core pricing intact, Core pricing intact, but offset by mix but offset by mix Q4 2008 Fuel Price Volume Rate/Mix Q4 2009 Note: See Fuel Surcharge Reconciliation 7 7 7 7 Economic environment drives 7% volume decline Economic environment drives 7% volume decline Revenue $2,320M Volume 1,498K RPU $1,549 Year-Over-Year Volume Change First Quarter Second Quarter Third Quarter Fourth Quarter Coal Merchandise Intermodal Automotive 5% 3% (5%) (7%) (10%) (13%) (14%) (17%) (18%) (21%) (22%) (23%) (23%) (28%) (41%) (53%) Percent of Total Volume Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 30% 24% 36% 36% 31% 35% 3% 5% Coal Merchandise Intermodal Automotive 8 8
Core pricing stable; RPU lower on fuel surcharge Core pricing stable; RPU lower on fuel surcharge Revenue $2,320M Volume 1,498K RPU $1,549 Year-Over-Year Change Same Store Sales Price Increase Total Revenue per Unit 21.2% 18.3% 14.5% 14.0% 10.5% 6.8% 6.7% 6.4% 6.5% 6.5% 6.6% 6.2% 6.3% 5.3% 0.2% (5.4%) (7.1%) (8.7%) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2008 2008 2008 2009 2009 2009 2009 Note: “Same Store Sales” price increases exclude impacts from fuel surcharge and mix 9 9 9 9 Coal revenue declines 24% Coal revenue declines 24% Revenue $641M Volume 365K RPU $1,756 Fourth Quarter � Fourth quarter summary Year-Over-Year Change — Domestic shipments down on low demand and high stockpiles Revenue (24%) — Export shipments decline on lower global demand Volume (23%) — Natural gas substitution remained RPU (3%) high during the quarter � Ongoing drivers Coal Categories 11% — Export market strengthening 15% 15% 74% — 74% Utility Natural gas substitution easing Export — Domestic demand and inventory Other levels expected to be a headwind Fourth Quarter Volume 10 10 10 10 10 10 10 10
Utility inventory levels a headwind well into 2010 Utility inventory levels a headwind well into 2010 Eastern Power Sector Tons in Millions 100 90 80 70 60 50 40 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 Coal Consumption Coal Inventory Typical Inventory Level Source: Coal consumption and inventory numbers from PIRA Energy Group 11 11 11 11 Merchandise revenue declines 10% Merchandise revenue declines 10% Revenue $1,112M Volume 531K RPU $2,094 Fourth Quarter � Fourth quarter summary Year-Over-Year Change — Housing starts and overall construction remain slow Revenue (10%) — Metals weakness continues on reduced steel production Volume (5%) — Phosphates and Agricultural RPU (5%) strength on multiple drivers � Ongoing drivers Merchandise Categories 40% 40% — Ongoing economic recovery driving moderate growth 31% Agriculture 29% 31% — All markets to see volume growth Housing led by Phosphates and Metals Industrial Fourth Quarter Volume 12 12 12 12 12 12 12 12
Automotive revenue declines 3% Automotive revenue declines 3% Revenue $176M Volume 78K RPU $2,256 Fourth Quarter � Fourth quarter summary Year-Over-Year Change — Volume strength due to inventory replenishment Revenue (3%) — Volume also improved slightly due to higher vehicle sales Volume 3% RPU (6%) � Ongoing drivers — Inventories at normal levels Automotive — Double-digit increases in light Categories vehicle production expected 41% 41% 59% 59% Detroit–3 — Adapting to continuing industry production changes New Domestics Fourth Quarter Volume 13 13 13 13 13 13 13 13 Intermodal revenue increases 2% Intermodal revenue increases 2% Revenue $340M Volume 524K RPU $649 Fourth Quarter � Fourth quarter summary Year-Over-Year Change — RPU lower due to fuel recovery and competitive truck prices Revenue 2% — International weakness eased, producing sequential gains Volume 5% — Domestic up on truck conversions RPU (3%) and new service offerings � Ongoing drivers Intermodal Categories — Better consumer demand and 40% 60% 40% 60% global trade drives international Domestic — Highly competitive truck market International remains a challenge for domestic Fourth Quarter Volume 14 14 14 14 14 14 14 14
Sales and Marketing wrap-up . . . Sales and Marketing wrap-up . . . � Macro-economic environment Economic Forecast is now recovering GDP IDP — Forecasts reflect moderate growth Linehaul revenue growth � 3.6% expected in first quarter 2.6% 2.1% 1.5% — Nine of ten markets are favorable; 0.4% coal remains a headwind (2.2%) � Maintaining reliable service (2.5%) product for our customers — Continue to sell the value of rail transportation — Core pricing expected to be (9.8%) above inflation long-term 2007 2008 2009 2010 Source: Global Insight 15 15 15 15 Operations Review Operations Review David Brown Executive Vice President Chief Operating Officer
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