11

Fourth Quarter 2007Earnings Conference Call

Fourth Quarter 2007Earnings Conference Call

2222

Proxy Statement DisclosureProxy Statement Disclosure

IMPORTANT INFORMATION

CSX Corporation plans to file with the SEC and furnish to its shareholders a Proxy Statement in connection with its 2008 Annual Meeting, and advises its security holders to read the Proxy Statement relating to the 2008 Annual Meeting when it becomes available, because it will contain important information. Security holders may obtain a free copy of the Proxy Statement and other documents (when available) that CSX files with the SEC at the SEC’s website at www.sec.gov. The Proxy Statement and these other documents may also be obtained for free from CSX by directing a request to CSX Corporation, Attn: Investor Relations, David Baggs, 500 Water Street C110, Jacksonville, FL 32202.

CERTAIN INFORMATION CONCERNING PARTICIPANTS

CSX, its directors and named executive officers may be deemed to be participants in the solicitation of CSX’s security holders in connection with its 2008 Annual Meeting. Security holders may obtain information regarding the names, affiliations and interests of such individuals in CSX’s Annual Report on Form 10-K for the year ended December 29, 2006 and its proxy statement dated March 30, 2007, each of which is on file with the SEC. To the extent holdings of CSX securities have changed since the amounts printed in the proxy statement, dated March 30, 2007, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 or Form 5 filed with the SEC.

3333

Forward-Looking DisclosureForward-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,” “estimate,” 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.

Executive SummaryExecutive Summary

Michael WardChairman, President andChief Executive Officer

55

Fourth quarter overview . . .Fourth quarter overview . . .

$0.75

$0.57

$0.86 $0.85

Reported Comparable

2006 2007

Strong earnings growth, despite fuel headwind

Safety and service at all-time best levels and improving

Revenues increase on strong service levels

Operating ratio improves on continued price/productivity

Note: Comparable EPS exclude gains on insurance recoveries and Conrail property, and income tax benefits

Fourth QuarterEarnings Per Share

66

Full year highlights . . .Full year highlights . . .

Strong double-digit growth drives record results

Surface Transportation:

— Revenues exceed $10 billion for first time ever

— Record operating income of over $2.2 billion

— Operating ratio below 78% for first time in a decade

EPS from Continuing Operations

2006 2007

Note: Comparable EPS exclude gains on insurance recoveries and Conrail property, and income tax benefits

Operating Income in Millions

$2,126$1,958

$2,251 $2,224

Reported Comparable

$2.82$2.22

$2.74 $2.70

Reported Comparable

22%Increase

14%Increase

Operations ReviewOperations Review

Tony IngramExecutive Vice PresidentChief Operating Officer

88

Leadership, discipline and executionLeadership, discipline and execution

Safety results at historical best and improving

Productivity gains driving the operating ratio lower

Network performance and service at all-time highs

SafetySafety

ProductivityProductivity

ServiceService

LeadershipLeadership

DisciplineDiscipline

ExecutionExecution

PerformanceExcellence

99

Helping lead one of the nation’s safest industriesHelping lead one of the nation’s safest industries

Rolling 12-Month Averages

FRA Personal Injury

1.461.42

1.311.24 1.21

Q42006

Q12007

Q22007

Q32007

Q42007

FRA Train Accidents

3.543.34

3.11 3.012.83

Q42006

Q12007

Q22007

Q32007

Q42007

13 WeekAverage

1.26

13 WeekAverage

2.85

1010

On-time performance at all-time highsOn-time performance at all-time highs

Rolling 12-Month Averages

On-Time Originations

76% 76%77%

78%79%

Q42006

Q12007

Q22007

Q32007

Q42007

On-Time Arrivals

63% 63%66%

69% 70%

Q42006

Q12007

Q22007

Q32007

Q42007

13 WeekAverage

81%

13 WeekAverage

73%

1111

Network efficiency provides strong service productNetwork efficiency provides strong service product

Rolling 12-Month Averages

Velocity (mph)

19.9 19.9 20.120.4

20.8

Q42006

Q12007

Q22007

Q32007

Q42007

13 WeekAverage21.2 mph

Dwell Time (hours)

25.124.7

24.323.7

23.2

Q42006

Q12007

Q22007

Q32007

Q42007

13 WeekAverage22.2 hrs

1212

Customer satisfaction levels remain at high levelsCustomer satisfaction levels remain at high levels

100

109 111

118

Q4 2004 Q4 2005 Q4 2006 Q4 2007

Best results since inception of third-party survey

Correlates to internal operating measure gains

Strong service supports pricing initiatives

Customer SatisfactionIndexed: 2004 = 100

1313

Operations wrap-up . . .Operations wrap-up . . .

Taking safety performance to the next level

Service reliability delivering value for customers

Driving productivity to lower the operating ratio

Sales and Marketing ReviewSales and Marketing Review

Clarence GoodenExecutive Vice PresidentSales and Marketing

1515151515151515

Revenues increased 8% to nearly $2.6 billionRevenues increased 8% to nearly $2.6 billion

Fourth QuarterRevenue in Millions

$2,396

$2,577$181

2006 Growth 2007

Record quarterly Surface Transportation revenues

Improved service enabling revenue growth

Yield management continues to offset softer volumes

Uninterrupted revenue growth for nearly 6 years

1616161616161616

Price continues to drive RPU growthPrice continues to drive RPU growth

Year-Over-Year Change

6.7%6.5%6.5%7.1%6.6%6.7%6.8%6.2%6.3%

11.0% 11.7% 12.6% 11.8%

8.4% 8.1%6.9%

8.0%

10.5%

Q42005

Q12006

Q22006

Q32006

Q42006

Q12007

Q22007

Q32007

Q42007

Price Increase on 'Same Store Sales' Total Revenue per Unit

Note: ‘Same Store Sales’ price increases exclude impacts from fuel and mix

1717171717171717

Merchandise revenue increases 7%Merchandise revenue increases 7%

Fourth Quarter2007 versus 2006

7%

(4%)

11%

Revenue

Volume

RPU

Yield management continues to offset softer volumes

Continued softness in housing/auto related markets

Strength in agriculture, phosphates, and chemicals

2006 Change 2007

RPU $ 1,736 $ 195 $ 1,931

Volume(thousands)

675 (25) 650

Revenue(millions)

$ 1,172 $ 83 $ 1,255

1818181818181818

Coal revenue increases 13%Coal revenue increases 13%

Fourth Quarter2007 versus 2006

13%

14%

(0%)

Revenue

Volume

RPU

Export strength offsets decline in utility market

Tons shipped up nearly 1% on flat carload volume

Overall pricing environment remains favorable

2006 Change 2007

RPU $ 1,282 $ 174 $ 1,456

Volume(thousands)

471 (2) 469

Revenue(millions)

$ 604 $ 79 $ 683

1919191919191919

Automotive revenue increases over 2%Automotive revenue increases over 2%

Fourth Quarter2007 versus 2006

2%

(3%)

5%

Revenue

Volume

RPU

Softer economy and tight credit impacting auto sales

Big-3 production decline drove CSX volumes

2006 Change 2007

RPU $ 1,875 $ 97 $ 1,972

Volume(thousands)

112 (3) 109

Revenue(millions)

$ 210 $ 5 $ 215

202020202020

Intermodal revenue is flat on lower volumesIntermodal revenue is flat on lower volumes

Fourth Quarter2007 versus 2006

0%

(3%)

4%

Revenue

Volume

RPU

Revenue was flat as yields and mix offset volume losses

International down on slowing imports/customer losses

Domestic traffic improved on new services/new terminal

2006 Change 2007

RPU $ 649 $ 23 $ 672

Volume(thousands)

552 (19) 533

Revenue(millions)

$ 358 $ 0 $ 358

2121

Intermodal reports record fourth quarter profitIntermodal reports record fourth quarter profit

Intermodal Operating Income in Millions

$68

$77$9

2006 Growth 2007

Bottom line focus drove record fourth quarter results

Cost control driven by greater efficiency and productivity

Operating ratio improved 2.5 points to 78.5%

222222222222

First quarter revenue outlook is positiveFirst quarter revenue outlook is positive

Favorable Neutral Unfavorable

Agricultural Products

Chemicals

Coal, Coke & Iron Ore

Metals

Phosphate & Fertilizer

Automotive

Emerging Markets

Intermodal

Food & Consumer

Forest Products

Financial ResultsFinancial Results

Oscar MunozExecutive Vice PresidentChief Financial Officer

2424

Strong fourth quarter results . . .Strong fourth quarter results . . .

$ 0.11$ 0.75$ 0.86Earnings Per Share

$ 18$ 347$ 365Net Income

))

10214

(16(82

5076299

123

60976

115205

Consolidated Operating IncomeOther Income (net)Interest ExpenseIncome Taxes

)104

(2505

2609

-Surface Transportation Operating IncomeOther Operating Income

)$ 181

(77$ 2,396

1,891$ 2,577

1,968RevenueExpense

Variance20062007Dollars in Millions, Except EPSFourth Quarter Results

2525

Comparable operating income increases 26%Comparable operating income increases 26%

$ 123$ 478$ 601Comparable Operating Income

$ 10419)

$ 505(27)

$ 609 (8

Surface Transportation Operating IncomeLess Gain on Insurance Recoveries

$ 0.28$ 0.57$ 0.85Comparable Earnings Per Share

$ 0.110.030.060.08

)))

$ 0.75(0.04(0.06(0.08

)$ 0.86(0.01

--

Earnings Per ShareLess Gain on Insurance RecoveriesLess Gain on Conrail Property After-taxLess Income Tax Benefits

Variance20062007Dollars in Millions, Except EPSFourth Quarter Results

2626

Key fourth quarter operating income drivers . . .Key fourth quarter operating income drivers . . .

Comparable Surface TransporationOperating Income in Millions

$601

$478

$67$56

Q4 2006 Net ReserveAdjustments

Earnings Momentum

Q4 2007

Improving safety performance lowers reserve requirements

Revenue strength and cost control overcome impact of fuel headwind

Note: Exclude gains from insurance recoveries in 2006 and 2007

2727

Expenses up 3% overall; down 2% excluding fuelExpenses up 3% overall; down 2% excluding fuel

Fourth Quarter Operating ExpensesYear-Over-Year Change

3%

2%

(9%)

32%

(6%)

1%

Inland Transportation

Depreciation

Equipment Rent

Fuel

Materials, Supplies, and Other

Labor and Fringe

Note: Results exclude gains from insurance recoveries

2828

Fuel price more than offsets efficiency and volumeFuel price more than offsets efficiency and volume

Gallons Per GTM

1.32

1.291.28

1.23

Q4 2004 Q4 2005 Q4 2006 Q4 2007

$ 3572007 Fuel Expense

))

104(9(9

Increase in PriceChange in Volume/MixFuel Efficiency

$ 2712006 Fuel Expense

Fourth QuarterFuel Analysis in Millions

2929

Labor and Fringe increased 1%Labor and Fringe increased 1%

Employee Headcount

33,591

34,153

34,668

33,469

Q4 2004 Q4 2005 Q4 2006 Q4 2007

Fourth QuarterLabor and Fringe in Millions

2006 Labor and Fringe $ 753Year-over-year change 6

2007 Labor and Fringe $ 759

Wage and benefit inflation totaled $22 million

Rightsizing resources drove 3% lower headcount

Note: Headcount reflects the company’s Surface Transportation businesses

3030

MS&O declines on lower personal injuriesMS&O declines on lower personal injuries

Fourth QuarterMS&O in Millions

2006 MS&O $ 496Year-over-year change (29)

2007 MS&O $ 467

Sustained improvements in safety lower net reserves

Partially offset by inflation and derailment costs

FRA Personal Injury

2.32

1.79

1.46

1.21

2004 2005 2006 2007

48%Improvement

3131

Rents decline on volume and productivityRents decline on volume and productivity

Payable Days Per Load

15.1 15.0

13.7

13.0

Q4 2004 Q4 2005 Q4 2006 Q4 2007

$ 1102007 Rent Expense

))

3(10

(4

InflationVolume/Mix/OtherEquipment Utilization

$ 1212006 Rent Expense

Fourth QuarterRents Analysis in Millions

Note: Reflects equipment utilization in the carload network on freight cars where CSX incurs rent

3232

Other expenses increase 2%Other expenses increase 2%

Fourth QuarterExpense in Millions

$216 $220

$61 $63

Q4 2006 Q4 2007

Depreciation Inland Transportation

Higher capital base increased depreciation expense

Partially offset by lower rates from asset life studies

Increased trucking expenses driving inland transportation

3333

Price and productivity driving operating ratio lowerPrice and productivity driving operating ratio lower

Surface Transportation Comparable Operating Ratio

85.6%

81.3%80.1%

76.7%

Q4 2004 Q4 2005 Q4 2006 Q4 2007

Note: Exclude gains from insurance recoveries in 2006 and 2007

3434

Full-year results reflect strong double-digit growthFull-year results reflect strong double-digit growth

Comparable Operating Income in Millions

$1,064

$1,549

$1,958

$2,224

2004 2005 2006 2007

Comparable EPS From Continuing Operations

$1.00

$1.70

$2.22

$2.70

2004 2005 2006 2007

14%Increase

22%Increase

Note: Exclude management restructuring, gains on insurance recoveries and Conrail property, and income tax benefits

3535

Full-year Free Cash Flow . . .Full-year Free Cash Flow . . .

Generated $145 million in 2007

— Consistent with $100+ million target outlined at September Investor Conference

Stronger earnings and cash flows supported:

— Locomotive capital investment

— Pension contribution

— Dividend increases

3636

Cash flows and capital structure support buyback Cash flows and capital structure support buyback

Cumulative Shares RepurchasedDollars in Millions

$565$2,074

$1,192

$644$465

2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007

Note: Approximately $2.1 billion of the $2.6 billion has been repurchased under the current $3.0 billion program

$2,639

3737

Double-digit growth targeted off record 2007 baseDouble-digit growth targeted off record 2007 base

$800M – $1B in 2010

Free Cash Flow Before Dividends

Mid-low 70’s by 2010

Operating Ratio

15% – 17%CAGR

Earnings Per Share

10% – 12%CAGR

Operating Income

2008 – 2010Guidance

Concluding RemarksConcluding Remarks

Michael WardChairman, President andChief Executive Officer

3939

Looking forward . . .Looking forward . . .

Delivering superior long-term value for shareholders

Leveraging the growing secular strength of the industry

Driving greater cost efficiency through productivity

Capitalizing on growth potential with key investments

Building on momentum to produce record 2008 results

Relentless Pursuit of Excellence

4040

Fourth Quarter 2007Earnings Conference Call

Fourth Quarter 2007Earnings Conference Call