1. First Quarter 2007
Earnings Presentation
1
1
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,” 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.
2
2
2. Executive Summary
Michael Ward
Chairman, President and
Chief Executive Officer
3
3
First quarter overview . . .
First Quarter Core earnings power
Earnings Per Share reflects secular strength
Strong pricing momentum
continues
$0.53 $0.53
$0.52
$0.50
Sustained operational
performance
Reported Comparable
2006 2007
Note: Comparable 2007 earnings per share excludes insurance recoveries
4
4
3. Sales and Marketing Review
Clarence Gooden
Executive Vice President
Sales and Marketing
5
5
Total revenue increased 4% to $2.4 billion
Record quarterly revenues
First Quarter
Revenue in Millions
20th consecutive quarter
($90)
$181
of revenue growth
$2,422
$2,331
Strong yield environment
offsetting lower volumes
2006 RPU Volume 2007
6
6
4. Price continues to drive RPU growth
Year-Over-Year Change
12.6%
11.8%
11.7%
11.0%
9.6% 9.0%
8.6% 8.4% 8.1%
7.1%
6.8% 6.7% 6.6%
6.3% 6.2%
6.0% 5.6%
4.8%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2005 2005 2005 2005 2006 2006 2006 2006 2007
Price Increase on 'Same Store Sales' Total Revenue per Unit
Note: Price increases on a ‘Same Store Sales’ basis excludes fuel surcharge and mix impacts
7
7
Volumes reflect a combination of factors
Surface Transportation Volume
Year-Over-Year Percentage Change
(4.2%) (6.6%) (1.4%)
Construction softness Construction softness Construction/Auto softness
Automotive softness Automotive softness New intermodal service
Weather impact Growth in MT, CH, PF
(0.6%) (0.6%)
(1.5%) (1.6%)
(1.8%) (1.7%)
(3.8%)
(4.5%)
(4.9%) (5.5%) (6.1%)
(7.9%)
(10.3%)
1 2 3 4 5 6 7 8 9 10 11 12 13
Week
8
8
5. Merchandise revenue increased 5%
20th consecutive quarter
First Quarter
of revenue growth
2007 versus 2006
Continued favorable
RPU 10%
pricing environment
Volume (5%)
Revenue 5%
Volume challenges in
construction-related
2006 Change 2007
markets
RPU $ 1,625 $ 166 $ 1,791
Strength in ethanol
Volume 707 (32) 675
and fertilizers
(thousands)
Revenue $ 1,149 $ 60 $ 1,209
(millions)
9
9
Coal revenue increased 9%
Record quarterly revenue
First Quarter
and revenue per unit
2007 versus 2006
Utility volumes declined
RPU 13%
as inventories have
Volume (3%)
reached target levels
Revenue 9%
Strong demand continues
2006 Change 2007
in export coal
RPU $ 1,216 $ 154 $ 1,370
Pricing environment
Volume 476 (14) 462
remains strong
(thousands)
Revenue $ 579 $ 54 $ 633
(millions)
10
10
6. Intermodal revenue decreased 5%
Reduction in ‘other’
First Quarter
revenue impacted profits
2007 versus 2006
Price gains offset by mix
RPU (3%)
Volume (1%)
Domestic volume grew on
Revenue (5%)
new services
2006 Change 2007
RPU $ 647 ($ 22) $ 625
Volume 516 (7) 509
(thousands)
Revenue $ 334 ($ 16) $ 318
(millions)
11
11
Automotive revenue decreased 12%
Volume down on
First Quarter
production declines
2007 versus 2006
New Domestics continue
RPU 2%
to gain market share
Volume (14%)
Revenue (12%)
Pricing opportunities
continue
2006 Change 2007
RPU $ 1,819 $ 43 $ 1,862
Volume 127 (18) 109
(thousands)
Revenue $ 231 ($ 28) $ 203
(millions)
12
12
7. Second quarter revenue outlook positive
Favorable Neutral Unfavorable
Agricultural Products Emerging Markets Automotive
Chemicals Forest Products
Coal, Coke & Iron Ore
Food & Consumer
Intermodal
Metals
Phosphate & Fertilizer
13
13
Sales and Marketing wrap-up . . .
GDP and IDP forecasted Economic Forecast
to trend upward 2007-2008
2.8%
Continued strong pricing
2.3%
environment 2.2%
1.8%
Overall volume outlook
improving
Service and capacity
2007 2008
improvements will
support growth
GDP Industrial Production
Source: Global Insight
14
14
8. Operations Review
Tony Ingram
Executive Vice President
Chief Operating Officer
15
15
Leadership, discipline and execution
Safety performance
continues to improve
Reliable
Service levels sustained Performance
in challenging conditions
Service Execution
Service Execution
Productivity and asset Productivity Discipline
Productivity Discipline
utilization improving
Safety Leadership
Safety Leadership
16
16
11. Looking forward . . .
Safety performance momentum continues
Continuous improvement in service reliability
Productivity and asset utilization gains
21
21
Financial Results
Oscar Munoz
Executive Vice President
Chief Financial Officer
22
22
12. CSX reports strong first quarter results
First Quarter Results
Dollars in millions, except EPS 2007 2006 Variance
Surface Transportation Operating Income $ 487 $ 487 $ 0
Other Operating Income 1 9 (8)
Consolidated Operating Income $ 488 $ 496 $ (8)
Other Income (net) (11) (3) (8)
Interest Expense (99) (98) (1)
Income Taxes (138) (150) 12
Net Earnings $ 240 $ 245 $ (5)
Earnings Per Share $ 0.52 $ 0.53 ($ 0.01)
23
23
Comparable EPS is $0.50
First Quarter Results
Dollars in millions, except EPS 2007 2006 Variance
Earnings Per Share $ 0.52 $ 0.53 ($ 0.01)
Less Gain on Insurance Recoveries (0.02) - (0.02)
Comparable Earnings Per Share $ 0.50 $ 0.53 ($ 0.03)
Surface Transportation Operating Income $ 487 $ 487 $ 0
Less Gain on Insurance Recoveries (18) - (18)
Comparable Operating Income $ 469 $ 487 ($ 18)
24
24
13. First-quarter results near all-time high
First Quarter Surface Transportation
Operating Income in Millions
$487 $469
$351
$204
$169
2003 2004 2005 2006 2007
Note: 2004 excludes management restructuring charges
25
25
Core earnings momentum remains strong
Surface Transportation
Operating Income in Millions
$487 ($35)
$45 $469
($28)
Q1 2006 Fuel Brooks, KY Earnings Q1
2006 Hedge Derailment Momentum 2007
26
26
14. Operating Income of $469 million
First Quarter Results
Surface Transportation ($’s in millions) 2007 2006 Variance
Revenue $ 2,422 $ 2,331 4%
Expenses
Labor and Fringe 732 718 (2%)
Materials, Supplies and Other 563 482 (17%)
Fuel 259 253 (2%)
Depreciation 221 211 (5%)
Equipment and Other Rents 121 124 2%
Inland Transportation 57 56 (2%)
Operating Expenses 1,953 1,844 (6%)
Operating Income $ 469 $ 487 (4%)
Operating Ratio 80.6% 79.1% (1.5 pts)
Note: 2006 results exclude insurance recoveries
27
27
Labor and fringe increased 2%
Primarily due to wage and
First Quarter
benefit inflation
Dollars in Millions
Partially offset by
$732
$14
$718
productivity gains
2006 Variance 2007
28
28
15. MS&O increased 17%
Primarily driven by an
First Quarter
increase in derailment
Dollars in Millions
related expenses
$563
$81
Continued higher than
$482
historical inflation levels
2006 Variance 2007
29
29
Fuel increased 2%
Consumed 150 million
First Quarter
gallons at average gross
Dollars in Millions
price of $1.73
$6 $259
$253
Comparison impacted by
$35 million in lower
hedge
2006 Variance 2007
30
30
16. Rents decreased 2%
Primarily due to lower
First Quarter
volumes
Dollars in Millions
Improved productivity
$124 ($3) $121
offset inflation
2006 Variance 2007
31
31
All other expenses increased 4%
First Quarter
Dollars in Millions
$278
$11
$267
$57
$56
$221
$211
2006 Variance 2007
Depreciation Inland Transportation
32
32
17. Dividend and share buyback update . . .
Annual Dividend Rate Share Repurchase
Dollars in Millions
$0.48 $1,050
$1,000
$0.40
$0.26
$465
$0.20
Q3 Q4 Q2 Q1 2006 2007E 2008E
2005 2005 2006 2007
33
33
Financial Wrap-up . . .
Earnings power continues to improve despite
softer economy
Dynamic environment propelling long-term
financials above 2006-2010 targets
— Maintaining double-digit growth on higher base
— Stronger results creating new investing opportunities
— Continue balanced use of cash with higher returns
34
34
18. Concluding Remarks
Michael Ward
Chairman, President and
Chief Executive Officer
35
35
Looking forward . . .
Producing strong results for shareholders
Industry positioned to continue its renaissance
Leveraging better service for long-term growth
Targeting greatest success in our 180th year
36
36