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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
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
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
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
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
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
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
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
Safety performance remains strong

    FRA Personal Injury                   FRA Train Accidents
                             13 Week                               13 Week
                             Average                               Average
                               1.35                                  2.84

                                       4.03   3.91
 1.69
                                                     3.57
        1.55                                                3.40
               1.44   1.41    1.38                                  3.17




  Q1   Q2   Q3   Q4   Q1                Q1   Q2   Q3   Q4   Q1
 2006 2006 2006 2006 2007              2006 2006 2006 2006 2007

                      Rolling 12-month Averages


                                                                             17
                                                                             17




On-time performance consistent

   On-Time Originations                       On-Time Arrivals
                             13 Week                               13 Week
                             Average                               Average
                               74%                                   64%

                                                                    63%
                                                            63%
                      76%     76%
               71%                                   57%
        65%                                   52%
                                       46%
 57%




  Q1   Q2   Q3   Q4   Q1                Q1   Q2   Q3   Q4   Q1
 2006 2006 2006 2006 2007              2006 2006 2006 2006 2007

                      Rolling 12-month Averages


                                                                             18
                                                                             18
Asset utilization improving

        Dwell Time (hours)                              Cars-On-Line (000)
                                13 Week                                       13 Week
                                Average                                       Average
                                24.9 hrs                                       225K
 28.9
          27.7                                    231
                 26.8                                    228
                         25.6                                     226
                                 25.2                                          225
                                                                        225




  Q1   Q2   Q3   Q4   Q1                           Q1   Q2   Q3   Q4   Q1
 2006 2006 2006 2006 2007                         2006 2006 2006 2006 2007

                         Rolling 12-month Averages


                                                                                        19
                                                                                        19




Train velocity remains stable

                                Velocity (mph)                           13 Week
                                                                          Average
                                                                         19.9 mph

                                                           19.8           19.7
                        19.5               19.5
        19.4




  Q1 2006          Q2 2006           Q3 2006             Q4 2006        Q1 2007


                         Rolling 12-month Averages


                                                                                        20
                                                                                        20
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
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
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
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
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
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
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
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
First Quarter 2007
Earnings Presentation

                    37
                    37

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csx Q1_2007

  • 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
  • 9. Safety performance remains strong FRA Personal Injury FRA Train Accidents 13 Week 13 Week Average Average 1.35 2.84 4.03 3.91 1.69 3.57 1.55 3.40 1.44 1.41 1.38 3.17 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2006 2006 2006 2006 2007 2006 2006 2006 2006 2007 Rolling 12-month Averages 17 17 On-time performance consistent On-Time Originations On-Time Arrivals 13 Week 13 Week Average Average 74% 64% 63% 63% 76% 76% 71% 57% 65% 52% 46% 57% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2006 2006 2006 2006 2007 2006 2006 2006 2006 2007 Rolling 12-month Averages 18 18
  • 10. Asset utilization improving Dwell Time (hours) Cars-On-Line (000) 13 Week 13 Week Average Average 24.9 hrs 225K 28.9 27.7 231 26.8 228 25.6 226 25.2 225 225 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2006 2006 2006 2006 2007 2006 2006 2006 2006 2007 Rolling 12-month Averages 19 19 Train velocity remains stable Velocity (mph) 13 Week Average 19.9 mph 19.8 19.7 19.5 19.5 19.4 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Rolling 12-month Averages 20 20
  • 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
  • 19. First Quarter 2007 Earnings Presentation 37 37