CSX : Presentation

2020 BAIRD

GLOBAL INDUSTRIALS CONFERENCE

11 . 1 2 . 2 0 2 0

FORWARD LOOKING DISCLOSURE

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);

1. 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	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

NON-GAAP MEASURES DISCLOSURE

CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results.

Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX's non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP measures to corresponding GAAP measures are attached hereto in the Appendix of this presentation.

	3	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

FAR-REACHING NETWORK AND DIVERSE REVENUE BASE

CSX network reaches nearly

two-thirds of the U.S. Population

2019 Revenue Totals ~$12B

% Revenue by Market*

Merchandise 64%

Coal 17%

Intermodal 15%

*Excludes Other Revenue

Chemicals 20%

Ag & Food 12%

Automotive 10%

Forest Products 7%

Metal & Equip. 6%

Minerals 5%

Fertilizers 4%

	4	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

LEADER IN BOTH OPERATING RATIO & CASH CONVERSION

Q3 Operating Ratio

					62.5%
				59.9%
	58.2%	58.7%	58.8%
56.9%
CSX	CP	UNP	KSU	CNI	NSC

FCF Conversion % of Net Income

			97%	104%
				95%
		81%
50%	49%
2015	2016	2017*	2018*	2019	2020
					LTM

*Non-GAAP results exclude restructuring charges and tax reform benefit.

	5	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

Q3 RESULTS REFLECT CONTINUED OPERATING EFFICIENCY

Revenue

Millions $

$2,978
	$2,648
11% Decline
2019	2020

Earnings Per Share

$1.08
	$0.96
11% Decline
2019	2020

Operating Ratio

56.8%	56.9%
10 bps Increase
2019	2020

	6	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

PERFORMING WELL IN VOLATILE ECONOMIC ENVIRONMENT

• 2020 has been year of historic volatility across all end markets
• • Entered year with positive merchandise and intermodal volume growth
  • Rapid decline and recovery in Q2 / Q3
  • Beginning Q4 with positive volume growth
• Strong relative volume performance trends throughout the year
• Focused on driving absolute volume growth

		YoY % Volume Change
		% Change vs 2019	3%	5%
1%		1%
(1%)		(3%)
					Total
		(20%)(17%)			Total, ex. Coal
	Q1 20	Q2 20	Q3 20		Q4 QTD

YoY % Volume Change

Weekly AAR Volumes

Coal Intermodal Merchandise

30%

20%

10%

0%

(10%)

(20%)

(30%)

(40%)

(50%)

(60%)

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45

	7	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

TARGETING LARGE TRUCK CONVERSION OPPORTUNITY

• Enhanced marketing capabilities, a leading service product, and an improved customer experience are winning share in challenging environment
• Working closely with customers to identify truck conversion opportunities
• Expanding CSX's reach through customers' supply chains to win additional wallet share

U.S. Freight Revenue: ~$980B

Water	Air	Pipeline
1%	4%
5%
			Rail

8%

Truck

82%

CSX currently ~1% of U.S. Freight Spend

	8	2 0 2 0 B A I R D G L O B A L I N D U S T R I A L S C O N F E R E N C E

I N V E S TO R S . C S X . C O M