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  • 1. Citigroup Global Transportation Conference November 2006 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 and the Company’s website at 2 2
  • 2. CSX has achieved record results year-to-date Surface Transportation 3rd Quarter 2006 YTD YOY Dollars in Millions Growth 12% $ 7,170 Revenue 5,690 Expense 31% $ 1,480 Operating Income 79.4% Operating Ratio 40% $1.65 Earnings Per Share 3 3 August 2005 long-term guidance 2006-2010 CAGR Revenue Growth 4% – 6% — Yield improvement 2% – 3% — Volume growth 2% – 3% Surface Trans. Op. Inc. 10% – 12% Operating Ratio Mid-to-High 70%’s Earnings per Share 12% – 14% Core Free Cash Flow 10% – 12% ROIC Meet or Exceed COC 4 4
  • 3. Long-term environment favorable Economic Forecast Manufacturing and foreign 2006-2008 trade are driving demand Service improvements are 4.4% supporting growth 3.3% 3.3% 2.4% 2.3% 2.2% Strong pricing environment continues Intermodal demand will lead volume growth 2006 2007 2008 GDP Industrial Production Source: Global Insight 5 5 Rail transportation increasingly attractive Cost per Mile Highway congestion 24-28% Driver shortages New hours of service law 8-12% High fuel costs Emission requirements Rising insurance costs Q1 2003 Q1 2006 Trucks Rail Source: Estimate based on CSX analysis 6 6
  • 4. Rail competitiveness – highway congestion Highway Miles versus Transport Forecast Ton Miles in Trillions Miles Traveled 250% 7 200% 6 150% 5 100% 4 50% 3 0% 2 1980 1985 1990 1995 2000 2000 2004 2008 2012 2016 2020 Miles Traveled Lane Miles Source: American Association of State Source: Department of Transportation Highway and Transportation Officials 7 7 CSX capitalizing on growing demand Merchandise • Ethanol Facilities • Feed Mills • Aggregate Facilities Boston • Plastics Plants Chicago New York Philadelphia Coal Baltimore St Louis • New Projects Portsmouth Intermodal Memphis • Port Development Charleston • Logistics Centers Mobile Jacksonville Automotive New Orleans • Assembly Plant • Supplier Facility Miami Income Growth 5-5.5% LT 5% 5.6-6.0% GT 6% 8 8
  • 5. And we are focused on competitive rates Revenue Per Unit Year-Over-Year Improvement 12% 12% 12% 11% 20% of 10% contracts still to 9% Mix/ 9% be re-priced Fuel 8% 7% Carry-over price impacts Yield projected to be strong into 2007 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2005 2005 2005 2005 2006 2006 2006 Note: The second quarter of 2005 excludes a $17 million coal rate case settlement 9 9 Rail Renaissance driving improving yields Long-term demand will Value for service continue to outpace initiatives will continue transportation supply Future volume growth Strategic rail capacity profitable, favorable mix investments improve focused service and volumes 2 R =P + volume growth 10 10
  • 6. Yield, volume and operations driving results Rail environment has been Surface Transportation favorable and is projected Operating Income in Millions to continue $519 $487 $474 $415 Strong pricing for service Operational improvements $1.9B driving service and Trailing 12 months productivity gains Q4 Q1 Q2 Q3 2005 2006 2006 2006 Op Inc (millions) Note: The second and third quarters of 2006 exclude $141 million of insurance recoveries 11 11 CSX will continue its balanced use of cash Growing Cash Generation Growing Cash Generation & Improving ROIC & Improving ROIC Debt Equity Debt Equity Company Company Holders Holders Holders Holders Maintain target Focused, strategic Competitive debt levels investment for dividend yield growth Balanced share repurchase program 12 12
  • 7. Looking Forward… CSX leveraging all components of its strategy — Continued value for services — Volume growth — Operational efficiencies On track for record 2006 results Capitalizing on the Rail Renaissance — Tight transportation supply — Rail transportation increasingly attractive 13 13 Citigroup Global Transportation Conference November 2006 14 14