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csx Citigroup11.06.07
1. Citigroup Transportation Conference
November 2007
Forward-Looking Disclosure
This presentation 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.csx.com.
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2. Fourth quarter revenue outlook is positive
Favorable Neutral Unfavorable
Agricultural Products Automotive Food & Consumer
Chemicals Forest Products
Coal, Coke & Iron Ore Intermodal
Emerging Markets
Metals
Phosphate & Fertilizer
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CSX continues to deliver strong financial results
Comparable Rolling 12-Month
Operating Income in Millions
$2,101
$1,958
$1,549
$1,064
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007
Note: 2004 excludes restructuring charges, and 2006 and 2007 exclude insurance recoveries
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3. Earning power improving in softer environment
Pricing/productivity more than
Comparable Operating
offsetting volume softness
Income Growth in Millions
$84
Q1 impacted by derailments
$77
and difficult comparisons
$63
Core 15-16% improvement in
15% (4%) 16% 16%
15% (4%) 16% 16%
challenging environment
($18)
Q4 2006 Q1 2007 Q2 2007 Q3 2007
Note: Results exclude insurance gains
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Double-digit growth targeted on higher 2007 base
2007-2010
Guidance
Operating Income 10% – 12%
CAGR
Earnings Per Share 15% – 17%
CAGR
Free Cash Flow $800M – $1B
Before Dividends in 2010
Operating Ratio Mid-low 70’s
in 2010
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4. Key strategies driving margins and earnings growth
Comparable Operating Ratio
86.7%
82.0%
79.5%
78.2%
Mid-low
70’s
2004 2005 2006 2007 YTD 2010 Target
Note: 2004 excludes restructuring charges, and 2006 and 2007 exclude insurance recoveries
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Key strategies driving margins and earnings growth
Comparable Operating Ratio
86.7%
Management
Restructuring
82.0%
79.5%
ONE Plan ONE Plan Refinement ONE Plan Execution with
78.2%
Rollout and Execution Total Service Integration
Mid-low
Performance Improvement
Performance Improvement Process
Process with Long-term Focus
Long- 70’s
Value Pricing with
Value Pricing
Strong Service Product
2004 2005 2006 2007 YTD 2010 Target
Note: 2004 excludes restructuring charges, and 2006 and 2007 exclude insurance recoveries
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5. Restructuring and productivity early catalyst
Restructuring Productivity
Nearly 20% of management Savings targeted across
positions eliminated functional areas
Decisions streamlined by Nearly $400 million of total
reducing management layers savings produced since 2004
Accountability established Pipeline of opportunities
across all functional areas support long-term targets
Nearly $100 million of annual
savings produced
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Cost efficiency examples from process improvement
Fuel Expense Car Hire Expense
Gallons Per GTM Dollars Per Unit
Improved
Improved
$52.32
1.31
15%
5%
$44.52
1.25
2004 2007 LTM 2004 2007 LTM
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6. Value pricing remains a key driver at CSX
Year-Over-Year Change
12.6%
11.8%
11.7%
11.0%
9.0%
8.4% 8.1% 8.0%
6.9%
7.1%
6.8% 6.7% 6.6% 6.5% 6.5%
6.3% 6.2%
5.6%
Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007
Price Increase on 'Same Store Sales' Total Revenue per Unit
Note: ‘Same Store Sales’ price increases exclude impacts from fuel and mix
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ONE Plan execution producing high service levels
On-Time Originations On-Time Arrivals
90% 80%
80% 70%
70% 60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0% 0%
Q1 Q4 Q3 Q2 Q1 Q1 Q4 Q3 Q2 Q1
2004 2004 2005 2006 2007 2004 2004 2005 2006 2007
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7. Moving to next level with Total Service Integration
Aligns customer needs with
operating capabilities
Utilizes capacity and
efficiency to support growth
Drives strong operations for
all service types
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Grain business demonstrates opportunity
CSX Grain
Ideal Current 2010
Business
Design Compliance Target
Unit Train Service (%) 100% 65% 95%
Train Length 90 Cars Less Than 1% 65%
Loading/Unloading Time 15 Hours 20% 75%
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8. Drives higher service, efficiency and margins
Reduces service complexity
Reliability
Increases predictability of customer deliveries
Increases tons per train
Productivity
Decreases dwell time in terminals
Drives margin expansion
Profitability
Creates capacity for growth
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Wrap-up . . .
Momentum across safety, service and productivity
driving strong financial performance
Double-digit operating income and earnings per share
growth builds off a higher 2007 base
Targeting mid-low 70’s operating ratio by 2010, with
strong focus on productivity and value pricing
Driving towards long-term vision – Industry Leadership
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