1 Forward-Looking Statements 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-savings, expenses, taxes, liquidity, capital expenditures, share repurchases, dividends or other financial items, statements of management’s plans, strategies and objectives for future operations, and management’s expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new 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 updates 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, political or business conditions, including those affecting the transportation 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; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions. 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
Current environment moderating; long-term intact Current environment moderating; long-term intact Domestic and global economy growing at a slower pace — Near-term growth still expected, but likely at lower rate than originally expected Most CSX markets are holding up well quarter-to-date — Year-over-year growth in Merchandise in-line with second quarter and declines in Coal are moderating; Intermodal growth softer on international trade Long-term environment still remains favorable — Opportunities provide strong upside for shareholders CSX financial performance and guidance top-tier — Outperformed in recession and recovery, with strong guidance through 2015 3 U.S. economic growth projections have moderated U.S. economic growth projections have moderated Macro and industrial economy is still exhibiting growth Jul Current Key U.S. Indicators Fcst Fcst Automotive is recovering from Japanese supply disruptions GDP 2.5% 1.6% IDP 4.1% 3.6% While import growth is strong, NALV Production 13.0M 12.9M consumer sentiment is weak Imports 4.2% 5.0% Manufacturing has slowed, PMI – Manufacturing 50.9 50.6 but inventories remain low Customer Inventories 44.0 46.5 Trends for coal-fired power Electricity Generation (0.3%) 0.5% generation are favorable Source: Global Insight, Institute of Supply Management, EIA 4
Impact of global economic trends mixed for CSX Impact of global economic trends mixed for CSX European GDP forecast is now 1.7% for 2011 — Eurozone debt issues persist Global oil demand has declined — Although crude oil price remains steady above $80 Emerging economies continue to show solid growth — However, expectations have moderated Exports remain strong year-over-year — Export of coal and phosphates show significant growth over 2010 levels 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 stockpiles are improving 1% Intermodal growth softer on international trade (1%) — Expecting a later, more contracted fall peak (3%) — New customers coming online Merchandise Coal Intermodal 6
Still expecting overall coal growth in second half Still expecting overall coal growth in second half Utility inventories have declined — Currently at 55 days in the east Domestic — Down over 40% from 2009 peak and 50-55 Days down 8% from last year Coal 50 Days Industrial energy demand is likely to remain flat 65-70 Days Asian demand up significantly — Growth moderating on higher base Export Australia coming back on-line Coal — Minimal U.S. impact anticipated U.S. resources coming on-line Sources: PIRA Energy August 2011 estimates and Energy Information Administration 7 Merchandise markets are generally holding strong Merchandise markets are generally holding strong Housing & Construction Agricultural Industrial Year-Over-Year Year-Over-Year Year-Over-Year Change in Volume Change in Volume Change in Volume 5% 5% 5% 2% 2% (1%) Q2 Q3-to-Date Q2 Q3-to-Date Q2 Q3-to-Date Agricultural products and Japanese tsunami impact Increased pulp board phosphates slowed by is reversing; auto showing and paper shipments Midwest flooding signs of strength for packaging products High corn prices have Increased export and Improved shipments impacted feed grain domestic demand for of cement, aggregates scrap and sheet steel and waste Recent strength in short-haul phosphates 8
Intermodal long-term growth story still intact Intermodal long-term growth story still intact Domestic Market International Market Year-Over-Year Change in Volumes Year-Over-Year Change in Volumes 24% 4% 14% 3% 0% (3%) Q1 2011 Q2 2011 Q3 2011 TD Q1 2011 Q2 2011 Q3 2011 TD Steady, profitable growth driven by Cycling 2010 customer gains and over-the-road freight conversions impacts of current environment Customer focus and service Expecting later and more contracted reliability drive strong value fall peak shipping season Expanding/opening new markets to Capitalizing on terminal network leverage Northwest Ohio facility expansions and service product — Maersk comes online in Jan 2012 9 Long-term opportunities remain favorable for rails Long-term opportunities remain favorable for rails BRIC economies drive energy and infrastructure demand — Expect long-term favorable trends for imports and exports Over-the-road trucking challenges continue — Rail-truckload partnerships will drive sustained growth Auto demand picking up — Supply chain disruptions from Japan have eased 10 10 10 10
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% (20) (11%) (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 among top CSX ranks among top CSX ranks among top CSX ranks among top CSX ranks among top 42% of S&P companies 42% of S&P companies 31% of S&P companies 31% of S&P companies 18% of S&P companies 18% of S&P companies Note: See GAAP Reconciliation for 2006. Data source is Morgan Stanley 11 11 11 11 . . . and continues to outperform during expansion . . . and continues to outperform during expansion Operating Margin Operating Continuing Income Growth EPS Growth Improvement (bps) 2009 – LTM 2009 – LTM 2009 – LTM 63% 48% 470 41% 46% 37% 350 30% 200 CSX Peers S&P CSX Peers S&P CSX Peers S&P 500 500 500 CSX ranks among top CSX ranks among top CSX ranks among top CSX ranks among top CSX ranks among top CSX ranks among top 25% of S&P companies 25% of S&P companies 25% of S&P companies 25% of S&P companies 27% of S&P companies 27% of S&P companies Source: Morgan Stanley 12 12 12 12
CSX is achieving results with financial discipline CSX is achieving results with financial discipline Incremental Margins Margin Improvement First Half 2011 First Half 2011 44% 190 20% (90) CSX Peer Average CSX Peer Average Source: Thomson One 13 13 13 13 Performance through 2015 reflects strong growth Performance through 2015 reflects strong 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 14 14 14 14
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