CSX CORPORATIONBAIRD’S 2017 GLOBAL INDUSTRIAL CONFERENCE

Progressing Forward

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);

(iii) 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

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.

Forward Looking Non-GAAP Measures

CSX presents non-GAAP or adjusted operating ratio and adjusted net earnings per share, assuming dilution on a forward-looking

basis. The most directly comparable forward-looking GAAP measure is operating ratio and net earnings per share, assuming

dilution. CSX is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly

comparable forward-looking GAAP measure, because CSX cannot reliably forecast the timing and amount of future restructuring

charges and other charges related to the change of leadership and strategy which are difficult to predict and estimate. Please

note that the unavailable reconciling items could significantly impact CSX’s future financial GAAP results.

3

PRESENTATION OVERVIEW . . .

CSX is a leading North American transportation company─ Network serves two-thirds of U.S. population and over 60% of U.S. manufacturing

Business diversified across broad spectrum of markets─ Serve consumer products, industrial, agricultural, construction and energy sectors

Corporation is undergoing significant transformation─ New team with Precision Scheduled Railroading drives superior performance

Expect strong financial results for 2017 and beyond─ Targeting record financial results this year; strong trajectory going forward

4

NETWORK SUPPORTS DIVERSE PORTFOLIO

Network connects all five eastern mega-regions

Serves nearly two-thirds of the nation’s population

Access to over 60% of U.S. industrial production

Superior market reach into Northeast and Florida

Well positioned to serve major East Coast & Gulf portsNew Orleans

Memphis

Florida

Piedmont

Atlantic

Gulf Coast

Midwest

St Louis

Chicago

New York

Boston

Norfolk

Jacksonville

Miami

Northeast

Savannah

Wilmington

Tampa

Mobile

Baltimore

Philadelphia

Charleston

Montreal

CSX-served Ports

Population Density

GT 6M3-6M

1-3MLT 1M

5

BUSINESS DIVERSIFIED ACROSS MULTIPLE MARKETS

20%

11%

6%

12%

4%

7%

5%13%

6%

5%

11%

LTM Revenue by Market: $11.2 Billion

Metals and Equipment Agriculture and Food Phosphates Forest Products Minerals

Chemicals AutomotiveExport CoalDomestic Coal Domestic Intermodal International Intermodal

Consumer Products: 16%

Industrial Sector: 37%

Agricultural Sector: 16%

Construction Sector: 12%

Energy Sector: 19%

6

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

1980 1989 1998 2007 2016

Operating Ratio

Best-in-Class Old Paradigm New Paradigm

60%

65%

70%

75%

80%

2011 2012 2013 2014 2015 2016

CSX Operating Ratio

CONVENTIONAL RAILROAD WISDOM TRANSFORMED

7

Precision

Railroading

has redefined

conventional

wisdom

CSX Historically Range Bound Redefining What is Possible

$2,800

$3,150

$3,500

$3,850

$4,200

2011 2012 2013 2014 2015 2016

CSX Operating IncomeDollars in Millions

PRECISION RAILROADING DRIVING TRANSFORMATION

8

Improve

Service

Operate

Safely

Control

Costs

Drive Asset

Utilization

Develop

People

Operational Focus

Terminal

Fluidity

Balanced

Train Plan

Service Improvements

Rolling Stock

UtilizationPeople

Efficiency

Fuel

OptimizationTrain

Density

Sustainable volume and revenue growth

Improving operating ratio

Strong FCF generation & less capital intensity

Superior shareholder distributions and returns

Financial

Focus

Superior

Financial

Results

Improved

FrequencyBetter

Reliability

Faster

TransitQuicker

Turnaround

Productivity Improvements&

CHANGES PROFOUND, SWIFT AND PURPOSEFUL

9

5.0

6.0

7.0

8.0

9.0

Mar-1 Apr-1 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1

Tra

nsit T

ime

(S

eve

n-d

ay R

olli

ng A

ve

rage

)

Transit Time and Transformation TimelineTransit Time Train Plan Changes Hump Yard Conversions Train Consolidations Other Changes

Nashville

Rock Unit Trains

Implemented Full Balanced Plan

Metals Unit Trains

Atlanta, Toledo,

Louisville, Hamlet

Florida IntermodalTrack Curfew Changes

Willard

Cumberland,

Birmingham

Restructured Local

Plans; 7-day/week

Intermodal Service

Consolidated Field Operating Regions;

Consolidated Dispatch Operations

Reverse Avon

Avon

Underutilized terminals and

lanes under strategic review

Leveraging merchandise trains

to improve network efficiency

Utilizing Intermodal trains to

serve high density lanes

Focus is to improve profitability

of intermodal business

ALIGNING INTERMODAL WITH PRECISION RAILROADING

10

Intermodal Terminals

Kansas

City

Detroit

Chicago

Jacksonville

Atlanta

Tampa

NY/NJ

CharlotteNashville

Baltimore

PittsburghPhiladelphia

Cincinnati

Savanah

Charleston

VA Ports

Wilmington

DELIVERING RESULTS THROUGH IMPLEMENTATION

Early gains from Precision

Railroading drive:

─ Operating ratio improvement of

360 bps year-over-year

─ Operating income growth of nearly

20% year-over-year

Financials resilient through

recent service changes

Significant opportunity ahead─ Anticipate a first quarter 2018 Investor

Conference

11

2,385

2,842

70.3%

66.7%

Q3 2016 Q3 2017

YTD Operating Results as of Third Quarter

Operating Income Operating Ratio

Note: Results for 2017 excluding restructuring charges; see Non-GAAP reconciliation on slide 15

FINANCIAL OUTLOOK . . .

Shareholders Distributions Continue to be Strong― Dividend increase of 11% announced earlier this year

― Repurchased $1.5 billion, or 29 million shares

― New $1.5 billion share repurchase program recently authorized

Reaffirm 2017 expectations (excludes restructuring charges)

― Operating ratio to be around high end of mid-60s, supported by record efficiency

― Earnings per share growth to be 20% – 25% off 2016 reported base of $1.81

― Free Cash Flow before dividends to be around $1.5 billion

― Expectations presume coal markets and overall economy remain stable

New team excited about the long term opportunity

12

Note: Please see Forward Looking Non-GAAP Measures Disclosure on Slide 3

CSX CORPORATIONBAIRD’S 2017 GLOBAL INDUSTRIAL CONFERENCE

Progressing Forward

APPENDICES

Non-GAAP Reconciliations

NON-GAAP INCOME STATEMENT RECONCILIATION

Year-to-Date Income StatementDollars in millions GAAP Adjustments Non-GAAP

Revenue

Expense

Labor and Fringe

Materials, Supplies and Other

Fuel

Depreciation

Equipment and Other Rents

Restructuring Charge

$ 8,545

2,249

1,573

621

978

282

296

$ -

-

-

-

-

-

(296)

$ 8,545

2,249

1,573

621

978

282

-

Total Expense

Operating Income

Interest Expense

Other Income – Net

Income Taxes

5,999

2,546

(406

19

(828

)

)

(296

296

-

-

(103

)

)

5,703

2,842

(406

19

(931

)

)

Net Earnings

Earnings Per Share

Operating Ratio

$ 1,331

$ 1.45

70.2%

$ 193

$ 0.21

(350 bps)

$ 1,524

$ 1.66

66.7%

15

Note: Non-GAAP excludes a $296 million restructuring charge and adjusts taxes for nondeductible executive compensation

CSX CORPORATIONBAIRD’S 2017 GLOBAL INDUSTRIAL CONFERENCE

Progressing Forward