2. Forward-Looking Disclosure
This information and other statements by the company 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” 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 these forward-looking statements. Factors that may cause actual results to
differ materially from those contemplated by these 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; and (v) the outcome of claims and litigation involving or affecting the company.
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.investors.csx.com
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2
3. Current CSX environment . . .
Financial momentum remains strong
— Momentum has been sustained in declining volume environment
Economic environment is weakening
— Housing and auto sectors remain weak, industrial sector softening
Fundamentals of the Rail Renaissance remain intact
— Line-of-sight maintained on key drivers
3
3
4. Core focus is driving shareholder value creation
Top-Tier TSR
Balanced Deployment of Capital
Price Productivity Growth
Deliver sustainable revenue Drive greater cost efficiency Focus on sustainable growth
growth through focus on same through redesigning processes by leveraging our market
store sales price increases and deploying technology presence in all eastern markets
Incorporate escalators to offset Use ONE Plan and Total Drive industrial development to
the cost of inflation during the Service Integration to right-size locate new shippers on CSX’s
period of the contract resources to business levels transportation network
Recover the higher cost of Deliver total savings that offset Leverage rail-truck interfaces to
diesel fuel through fuel a significant portion of annual expand market/customer reach
surcharge program cost of non-fuel inflation beyond traditional rail business
Operating Income EPS Free Cash Flow ROIC
Operating Income EPS Free Cash Flow ROIC
4
4
5. CSX’s financial momentum remains strong
Operating Income Earnings Return on
Dollars in Billions Per Share Invested Capital
$2.7 10.6%
$3.48
9.2%
$2.2 8.8%
$2.70
$2.0
7.3%
$2.22
$1.6
$1.70
2005 2006 2007 LTM 2005 2006 2007 LTM 2005 2006 2007 LTM
Note: Operating Income, EPS and ROIC are stated on comparable continuing basis; LTM through third quarter 2008
5
5
6. Economic environment continues to weaken
Real Gross Domestic Product
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
(2.0%)
(4.0%)
(6.0%)
(8.0%)
(10.0%)
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Note: Recessionary periods as defined by Bureau of Economic Analysis
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6
7. Line-of-sight maintained on key drivers
Volume environment remains soft
— Diversity of business portfolio moderates economic impact
Pricing momentum to continue long-term
— Increases to be broadly similar in 2009 and above inflation longer-term
Productivity initiatives continue to help offset inflation
— Results ahead of target in 2008 with strong momentum through 2010
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7
8. Largest recent cumulative volume decline was 6%
Annual Volume Growth
Current
Recession Recession Environment
15%
6% 3% 6%
11%
Cumulative Cumulative Cumulative
Decline Decline Decline
3% 3%
2% 2%
2%
1%
0% 0%
(0%) (0%)
(1%) (1%) (1%)
(3%) (3%) (3%)
(5%)
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
Note: 1990-93 data includes Sea-Land volumes and all data is on 52-week comparable basis; 2008 data is through week 46
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8
9. Diversity of business moderates economic impact
Primary Macro Driver CSX Business Units % of Revenue
Energy and Agriculture Coal, Agricultural Products, and 43%
Phosphates & Fertilizers
Housing Starts Forest Products, Emerging Markets, 17%
and Food & Consumer
Industrial Production Chemicals and Metals 20%
Personal Consumption Intermodal and Automotive 20%
Note: Year-to-date data through third quarter 2008
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9
10. Energy and agriculture products more stable
Limited downside for utility demand
2008 Revenue Base
Export coal downside sensitivity exists
Automotive
Intermodal
Growth in ethanol continues
Metals
Chemicals
Potential phosphate rebound in spring
Food/Consumer
Emerging Mkts
Forest
4% Phosphates
9% Agriculture
Energy
and Food
43% Coal
30%
Percent of Revenue
Note: Reflects year-to-date data through third quarter 2008
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10
11. Softness in housing-related markets continues
Housing rebound expected after 2009
2008 Revenue Base
Further decline in forest and paper
Automotive
Intermodal
Related consumer products remain soft
Metals
Chemicals
Infrastructure spending potential upside
4% Food/Consumer
Housing Starts 6% Emerging Mkts
17%
7% Housing Starts in Millions
Forest
Phosphates
2.07
Agriculture 1.81
1.34
0.93
Coal
0.71
Percent of Revenue 2005 2006 2007 2008 2009
Note: Reflects year-to-date data through third quarter 2008; economic data is sourced from Global Insight
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11
12. Weaker industrial sector impacts chemicals/metals
Industrial production weak through 2009
2008 Revenue Base
Global steel demand is declining
Automotive
Intermodal
Chemicals demand is also declining
Metals
7%
Industrial
Production
13% Chemicals
20%
Food/Consumer
Emerging Mkts
Industrial Production
Forest
Phosphates
3.3%
Agriculture 2.2% 1.7%
Coal
(0.9%)
(3.5%)
Percent of Revenue 2005 2006 2007 2008 2009
Note: Reflects year-to-date data through third quarter 2008; economic data is sourced from Global Insight
12
12
13. Lower consumer spending impacts auto/intermodal
Vehicle production continues to decline
2008 Revenue Base
International intermodal remains soft
7% Automotive
Personal
Consumption
Intermodal
13%
20%
Domestic intermodal source of strength
Metals
Chemicals
Food/Consumer
Emerging Mkts
Personal Consumption
Forest
Phosphates
3.9%
3.8% 3.3%
Agriculture
Coal
(1.3%)
(1.5%)
Percent of Revenue 2005 2006 2007 2008 2009
Note: Reflects year-to-date data through third quarter 2008; economic data is sourced from Global Insight
13
13
14. Line-of-sight maintained on key drivers
Volume environment remains soft
— Diversity of business portfolio moderates economic impact
Pricing momentum to continue long-term
— Increases to be broadly similar in 2009 and above inflation longer-term
Productivity initiatives continue to help offset inflation
— Results ahead of target in 2008 with strong momentum through 2010
14
14
15. Pricing has remained strong despite lower volumes
Volume Versus Same Store Sales Pricing
7.1%
6.8% 6.8%
6.7% 6.7%
6.6% 6.5% 6.5% 6.4%
6.2% 6.2%
1.8%
0.1% (0.4%)
(1.0%)
(2.7%) (2.2%) (2.8%) (2.3%)
(2.3%)
(3.9%) (4.3%)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008
Price Increase on 'Same Store Sales' Change in Volume
Note: ‘Same Store Sales’ price increases exclude impacts from fuel and mix; reflects year over year change
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15
16. Majority of pricing plan is already in place for 2009
Same Store Sales Price Increase
6.6% 6.7% 6.5%
~ 6.0%
5.7%
Contracts
Still To Be 45%
Negotiated
Signed
55%
Contracts
2005 2006 2007 2008 2009
Note: Annual same store sales price increases reflect the quarterly average for each respective year
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16
17. Pricing above inflation will continue long-term
Rail pricing is still in the early
Inflation-Adjusted Pricing
stages of recovery
Indexed: 1981 = 100
Significant contracts are up
100
for renewal annually
Trucking industry challenges
will continue long-term
51
40
Rail reinvestment requires
earning the cost of capital
1981 2004 2008
Source: Association of American Railroads
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17
18. Line-of-sight maintained on key drivers
Volume environment remains soft
— Diversity of business portfolio moderates economic impact
Pricing momentum to continue long-term
— Increases to be broadly similar in 2009 and above inflation longer-term
Productivity initiatives continue to help offset inflation
— Results ahead of target in 2008 with strong momentum through 2010
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18
19. Over $400M of productivity targeted through 2010
Initiatives are exceeding
Operations Productivity
initial targets for 2008
Dollars in Millions
$413 million
Plans already in place for
85% of 2009-2010 targets
$153
$130 $130
Productivity focus is driving
$40
greater labor/asset efficiency
$90
2008 2009 2010
Plans in Place Developing Plans
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19
20. Productivity driven by accountability across areas
Operations Productivity Savings in Millions
2008 2009 2010 Total
Locomotive $ 57 $ 45 $ 37 $ 139
Car and Terminal 33 23 14 70
Line of Road and Infrastructure 31 34 23 88
Train and Engine Employees 25 15 10 50
Customer Operations 4 3 3 10
Risk Mitigation and Other 3 11 42 56
Total Savings $ 153 $ 130 $ 130 $ 413
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20
21. ONE Plan being updated to drive greater efficiency
Traffic patterns have shifted
since ONE Plan inception
Volume declines allow for
further train consolidation
Focus remains maximizing
service and efficiency
— Rightsize resources
—
Traffic Reduce terminal handlings
Increase
— Reduce route miles
Traffic
Decrease
21
21
22. Other productivity initiatives are underway
Total Service Integration is
Pipeline Service
improving train utilization
Tons Per Train
Broader cost initiatives will
drive further margin expansion
9,584
11%
—
9,223
Improvement Leverage GPS technology to
further improve asset utilization
8,800
— Expand use of terminal
8,638
automation technology
Enterprise Asset Management
takes productivity to next level
2005 2006 2007 2008
YTD
22
22
23. G&A effort designed to keep 2009 costs flat to 2007
Controllable G&A Expenses
Dollars in Millions
$39
$45
$39
$45
2007 Pro Forma Cycle Proxy Productivity 2009
Costs
Controllable G&A Inflation Proxy Costs Productivity
23
23
24. Line-of-sight maintained on key drivers
Volume environment remains soft
— Diversity of business portfolio moderates economic impact
Pricing momentum to continue long-term
— Increases to be broadly similar in 2009 and above inflation longer-term
Productivity initiatives continue to help offset inflation
— Results ahead of target in 2008 with strong momentum through 2010
Supports strong Free Cash Flow and liquidity
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24
25. Free Cash Flow and liquidity will remain strong
Core earnings growth and
Free Cash Flow Before
Free Cash Flow sustainable
Dividends in Millions
— Supports continued investment
and competitive dividend yield
Approximately
$1,000
Balance sheet remains strong
with significant liquidity
— Only $400 million of outstanding
debt matures through 2010
$376
Drive towards high-60’s
operating ratio continues
— Earnings guidance challenged
2007 2008F by current environment
25
25
26. Wrap-up . . .
Financial momentum to continue through the cycle
— Line-of-sight maintained on volume, pricing and productivity
Current economic weakness is transitory
— Past periods sustained for three to five quarters before recovery takes hold
Plans in place position CSX for strong recovery
— Stronger service, productivity and investments will drive future growth
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26
27. Citi 23rd Annual
rd
Transportation Conference
November 2008
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