Forward-Looking Statements This information and other statements by - PDF document

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, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases 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 “will,” “should,” “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 1

Presentation overview . . .  CSX is a Fortune 250 company with a record of success — Leading North American transportation company with strong eastern network  Company’s business portfolio is well diversified — Positioned to drive long term shareholder value creation  Coal markets will continue to transition in 2016 — Company taking steps to address variable and structural costs of coal network  Still targeting mid-single digit EPS growth this year — Meaningful margin expansion expected; targeting mid-60s longer-term 3 Performance strong coming out of 2009 recession Operating Income Earnings Per Share Operating Ratio Dollars in Billions $2.02 74.9% $3.7 69.8% $2.3 $0.95 2009 LTM 2009 LTM 2009 LTM 8% CAGR 13% CAGR 510 bps Improvement 4 2

. . . despite significant transition in coal business Volume  Intermodal growth Units in Thousands — Driven by highway conversions Merchandise Intermodal and new customers and services Domestic Coal Export Coal 6,869  Merchandise up slightly 4% — 5,793 13% Industrial and housing economies 4% have suppressed recovery 23% 41%  Domestic coal decline 33% — Driven by natural gas substitution  40% 42% Export coal more variable — Driven by commodity prices for metallurgical and thermal coal 2009 LTM 5 Network well positioned for eastern U.S. growth  Connects all five eastern Montreal mega-regions Northeast Midwest Boston  Serves nearly two-thirds of Chicago the nation’s population New York Philadelphia  Baltimore Access to over 60% of U.S. St Louis industrial production Norfolk Piedmont  Superior market reach into Atlantic Memphis Wilmington Northeast and Florida Charleston Savannah  Network reach is foundation Gulf Coast Jacksonville for business diversity Mobile CSX-served Ports Florida New Orleans Tampa Population Density Miami GT 6M 1-3M 3-6M LT 1M 6 3

Business diversified across broad market base LTM Volume by Market: 6.9 Million Units Domestic coal Export Coal Domestic Intermodal International Intermodal Chemicals Automotive Metals Agriculture Phosphates Food & Consumer Forest Products Minerals Waste & Equipment Consumer Goods: 41% 18% Energy Sector: 17% 4% 23% 13% 2% 9% 5% Construction Sector: 12% Industrial Sector: 20% 5% 7% 1% 4% 4% 6% Agricultural Sector: 11% 7 Industrial sector will be led by automotive in 2016 Industrial Sector  North American Light NALVP expected to further Vehicle Production in Millions increase 3% in 2016 — Will begin serving additional 18.0 facilities next year 17.5 17.0 16.2 15.4  Expect chemical market to be 13.1 11.9 impacted by shale next year — Crude prices and spreads 8.6 pressure eastern rail opportunities  Metals to continue to be impacted by dollar’s strength — Headwinds expected to continue until foreign exchange normalizes 2009 2016 Source: IHS Global Inc. 8 4

Agriculture outlook challenged by multiple indicators Agricultural Sector U.S. Corn Production  Strong domestic harvest offset Index: 1975=100 by challenging global market — U.S. dollar and large Brazilian Acres Planted Yield per Acre crop pressure export grain 207  Ethanol markets face continued challenges — Oversupply and import sourcing 114 create market headwinds 100  Corn prices drive demand for phosphates and fertilizers Projection — Farmers delaying fertilizer 1975 2020 purchases until netback improves Source: USDA and ProExporter 9 Expect steady housing market recovery to continue Construction Sector  U.S. Housing Housing starts drive about Starts in Thousands 5% of CSX business — Decade/Annual Average Historical Average Lumber and building products — Aggregates and waste 1,768 — Metals and plastics 1,536 1,492 1,371 — 1,406 Intermodal 1,297 — Appliances 1,112 1,001 928 784  Housing market growth 586 612 concentrated in multi-family — Multi-family starts require about 1/3 the material as single family starts 60’s 00’s 2010 2016 Source: IHS Global Inc. & U.S. Census Bureau 10 10 5

Intermodal network leveraging long-term growth Intermodal Montreal Montreal Intermodal Volume in Millions Northeast 2.8 2.7 2.6 2.5 2.3 2.2 Midwest 2 Boston 1.9 3 NY/NJ Chicago 3 2 Philadelphia Baltimore St Louis 3 Hampton Roads 2009 2010 2011 2012 2013 2014 LTM Piedmont Atlantic  Intermodal traffic operating in double-stack Memphis Wilmington lanes accounts for 90% of volume today 2 Charleston  With National Gateway completion in 2017, 2 Savannah mid-90% of traffic will be double-stacked Gulf Coast 2 Jacksonville Mobile Northwest Ohio Terminal Double Stack Cleared New Orleans Tampa Existing Terminals Served Double Stack in Process Florida Terminals being Expanded New Terminal Development Note: Multiple terminals in a location are designated with a number 11 11 NW Ohio hub enhances network connectivity Intermodal Montreal Montreal  Hub and spoke coupled with Northeast corridor lanes key differentiator Midwest — 25% of growth since 2011 is a Boston direct result of NW Ohio hub NY/NJ Chicago Philadelphia  Baltimore Approach combined with St Louis superior service drives growth Norfolk Piedmont — Over 200 new NW Ohio lanes Atlantic driving significant volume growth Memphis Wilmington Charleston  NW Ohio recently expanded Savannah Gulf Coast 50% to drive further growth Jacksonville — Supports new investments in Mobile New Orleans Tampa Montreal and Florida markets 12 12 6

CSX has successful H2R conversion platform . . . Intermodal Domestic Intermodal Volume versus ATA Truck Tonnage Indexed: January 2006 = 100 ATA Truck Tonnage CSX Average Weekly Domestic Intermodal Volume 225 Up ~120% 200 175 150 125 Up ~15% 100 75 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: CSX Corporation and ATA 13 13 . . . a nd future opportunity aligns with CSX’s network Intermodal Montreal  Total eastern opportunity is about 9 million truck loads Boston — Reflects truckload moves Chicago NY/NJ greater than 550 miles Philadelphia Baltimore St Louis  Significant majority overlays Hampton Roads CSX’s intermodal network Memphis — Wilmington H2R initiative designed to capture growth opportunity Charleston Savannah Jacksonville  Capital investment will be Mobile Traffic Density New Orleans required over time Tampa Originations — Investment is scalable as Terminations volume increases 14 14 7