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First Quarter 2007 Earnings Presentation First Quarter 2007 Earnings Presentation 2 2 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 .

csx Q1_2007

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Page 1: csx  Q1_2007

11

First Quarter 2007Earnings Presentation

First Quarter 2007Earnings Presentation

22

Forward Looking DisclosureThis 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.

Page 2: csx  Q1_2007

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Executive Summary

Michael WardChairman, President andChief Executive Officer

44

First quarter overview . . .

Core earnings power reflects secular strength

Strong pricing momentum continues

Sustained operational performance

First Quarter Earnings Per Share

$0.53 $0.53$0.52$0.50

Reported Comparable

2006 2007

Note: Comparable 2007 earnings per share excludes insurance recoveries

Page 3: csx  Q1_2007

55

Sales and Marketing Review

Clarence GoodenExecutive Vice PresidentSales and Marketing

66

Total revenue increased 4% to $2.4 billion

First QuarterRevenue in Millions

$2,331

$2,422($90)$181

2006 RPU Volume 2007

Record quarterly revenues

20th consecutive quarter of revenue growth

Strong yield environment offsetting lower volumes

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Price continues to drive RPU growth

Year-Over-Year Change

7.1%6.6%6.7%6.8%6.2%6.3%5.6%6.0%4.8%

8.6%9.6% 9.0%

11.0% 11.7%12.6%

11.8%

8.4% 8.1%

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

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

88

Surface Transportation VolumeYear-Over-Year Percentage Change

(7.9%)

(3.8%)(4.9%)

(0.6%)

(5.5%)

(10.3%)

(6.1%)(4.5%)

(1.8%) (1.7%)(0.6%)

(1.5%) (1.6%)

1 2 3 4 5 6 7 8 9 10 11 12 13

Volumes reflect a combination of factors

Week

Construction softnessAutomotive softness

(4.2%)

Construction softnessAutomotive softnessWeather impact

Construction softnessAutomotive softnessWeather impact

(6.6%)(6.6%)

Construction/Auto softnessNew intermodal serviceGrowth in MT, CH, PF

Construction/Auto softnessNew intermodal serviceGrowth in MT, CH, PF

(1.4%)(1.4%)

Page 5: csx  Q1_2007

99

Merchandise revenue increased 5%

First Quarter2007 versus 2006

5%

(5%)

10%

Revenue

Volume

RPU

$ 1,209$ 60$ 1,149Revenue

(millions)

675(32)707Volume

(thousands)

$ 1,791$ 166$ 1,625RPU

2007Change2006

20th consecutive quarter of revenue growth

Continued favorable pricing environment

Volume challenges in construction-related markets

Strength in ethanoland fertilizers

1010

Coal revenue increased 9%

First Quarter2007 versus 2006

9%

(3%)

13%

Revenue

Volume

RPU

$ 633$ 54$ 579Revenue

(millions)

462(14)476Volume

(thousands)

$ 1,370$ 154$ 1,216RPU

2007Change2006

Record quarterly revenue and revenue per unit

Utility volumes declined as inventories have reached target levels

Strong demand continues in export coal

Pricing environment remains strong

Page 6: csx  Q1_2007

1111

Intermodal revenue decreased 5%

First Quarter2007 versus 2006

(5%)

(1%)

(3%)

Revenue

Volume

RPU

$ 318($ 16)$ 334Revenue

(millions)

509(7)516Volume

(thousands)

$ 625($ 22)$ 647RPU

2007Change2006

Reduction in ‘other’revenue impacted profits

Price gains offset by mix

Domestic volume grew on new services

1212

Automotive revenue decreased 12%

First Quarter2007 versus 2006

(12%)

(14%)

2%

Revenue

Volume

RPU

$ 203($ 28)$ 231Revenue

(millions)

109(18)127Volume

(thousands)

$ 1,862$ 43$ 1,819RPU

2007Change2006

Volume down on production declines

New Domestics continue to gain market share

Pricing opportunities continue

Page 7: csx  Q1_2007

1313

Second quarter revenue outlook positive

AutomotiveEmerging Markets

Forest Products

Agricultural Products

Chemicals

Coal, Coke & Iron Ore

Food & Consumer

Intermodal

Metals

Phosphate & Fertilizer

UnfavorableNeutralFavorable

1414

Sales and Marketing wrap-up . . .

GDP and IDP forecasted to trend upward

Continued strong pricing environment

Overall volume outlook improving

Service and capacity improvements will support growth

Economic Forecast2007-2008

2.2%

2.8%

1.8%

2.3%

2007 2008

GDP Industrial Production

Source: Global Insight

Page 8: csx  Q1_2007

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Operations Review

Tony IngramExecutive Vice PresidentChief Operating Officer

1616

Leadership, discipline and execution

Safety performance continues to improve

Service levels sustained in challenging conditions

Productivity and asset utilization improving

SafetySafety

ProductivityProductivity

ServiceService

LeadershipLeadership

DisciplineDiscipline

ExecutionExecution

ReliablePerformance

Page 9: csx  Q1_2007

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Safety performance remains strong

Rolling 12-month Averages

FRA Personal Injury

1.691.55 1.44 1.41 1.38

Q12006

Q22006

Q32006

Q42006

Q12007

FRA Train Accidents

4.03 3.913.57 3.40 3.17

Q12006

Q22006

Q32006

Q42006

Q12007

13 WeekAverage

1.35

13 WeekAverage

2.84

1818

On-time performance consistent

Rolling 12-month Averages

On-Time Originations

57%65%

71% 76% 76%

Q12006

Q22006

Q32006

Q42006

Q12007

On-Time Arrivals

46%52%

57%63% 63%

Q12006

Q22006

Q32006

Q42006

Q12007

13 WeekAverage

74%

13 WeekAverage

64%

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Asset utilization improving

Rolling 12-month Averages

Cars-On-Line (000)

231228 226 225 225

Q12006

Q22006

Q32006

Q42006

Q12007

Dwell Time (hours)

28.927.7 26.8

25.6 25.2

Q12006

Q22006

Q32006

Q42006

Q12007

13 WeekAverage24.9 hrs

13 WeekAverage

225K

2020

Train velocity remains stable

Velocity (mph)

19.4 19.5 19.519.8 19.7

Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007

13 WeekAverage

19.9 mph

Rolling 12-month Averages

Page 11: csx  Q1_2007

2121

Looking forward . . .

Safety performance momentum continues

Continuous improvement in service reliability

Productivity and asset utilization gains

2222

Financial Results

Oscar MunozExecutive Vice PresidentChief Financial Officer

Page 12: csx  Q1_2007

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CSX reports strong first quarter results

)$ (5$ 245$ 240Net Earnings

)($ 0.01$ 0.53$ 0.52Earnings Per Share

))

(8(112

)))

(3(98

(150

)))

(11(99

(138

Other Income (net)Interest ExpenseIncome Taxes

)$ (8$ 496$ 488Consolidated Operating Income

)(891Other Operating Income

$ 0$ 487$ 487Surface Transportation Operating Income

Variance20062007Dollars in millions, except EPS

First Quarter Results

2424

Comparable EPS is $0.50

)(18-)(18Less Gain on Insurance Recoveries

)($ 18$ 487$ 469Comparable Operating Income

$ 0$ 487$ 487Surface Transportation Operating Income

)($ 0.03$ 0.53$ 0.50Comparable Earnings Per Share

)(0.02-)(0.02Less Gain on Insurance Recoveries

)($ 0.01$ 0.53$ 0.52Earnings Per Share

Variance20062007Dollars in millions, except EPS

First Quarter Results

Page 13: csx  Q1_2007

2525

First-quarter results near all-time high

First Quarter Surface TransportationOperating Income in Millions

$169$204

$351

$469

2003 2004 2005 2006 2007

Note: 2004 excludes management restructuring charges

$487

2626

Core earnings momentum remains strong

Surface TransportationOperating Income in Millions

$469$487

$45($28)

($35)

Q1 2006

2006 FuelHedge

Brooks, KYDerailment

EarningsMomentum

Q1 2007

Page 14: csx  Q1_2007

2727

Operating Income of $469 million

)(4%$ 487 $ 469Operating Income

)(1.5 pts79.1%80.6%Operating Ratio

)(6%1,8441,953Operating Expenses

))))

)

4%

(2%(17%(2%(5%2%

(2%

$ 2,331

71848225321112456

$ 2,422

73256325922112157

RevenueExpenses

Labor and FringeMaterials, Supplies and OtherFuelDepreciationEquipment and Other RentsInland Transportation

Variance20062007Surface Transportation ($’s in millions)

First Quarter Results

Note: 2006 results exclude insurance recoveries

2828

Labor and fringe increased 2%

First QuarterDollars in Millions

$732$718 $14

2006 Variance 2007

Primarily due to wage and benefit inflation

Partially offset by productivity gains

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MS&O increased 17%

First QuarterDollars in Millions

$563

$482

$81

2006 Variance 2007

Primarily driven by an increase in derailment related expenses

Continued higher than historical inflation levels

3030

Fuel increased 2%

First QuarterDollars in Millions

$259$253 $6

2006 Variance 2007

Consumed 150 million gallons at average gross price of $1.73

Comparison impacted by $35 million in lower hedge

Page 16: csx  Q1_2007

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Rents decreased 2%

First QuarterDollars in Millions

$121$124 ($3)

2006 Variance 2007

Primarily due to lower volumes

Improved productivity offset inflation

3232

All other expenses increased 4%

First QuarterDollars in Millions

$211 $221

$56$57

$11

2006 Variance 2007

$267 $278

Depreciation Inland Transportation

Page 17: csx  Q1_2007

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Dividend and share buyback update . . .

Annual Dividend Rate

$0.20

$0.26

$0.40

$0.48

Q32005

Q42005

Q22006

Q12007

Share RepurchaseDollars in Millions

$465

$1,000$1,050

2006 2007E 2008E

3434

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

Page 18: csx  Q1_2007

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Concluding Remarks

Michael WardChairman, President andChief Executive Officer

3636

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

Page 19: csx  Q1_2007

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First Quarter 2007Earnings Presentation

First Quarter 2007Earnings Presentation