Risk Factors Update Summary

• Added cybersecurity risks, including potential data breaches, cyber-attacks, and technology failures. This change could result in service interruptions or compromised information systems.
• Increased regulatory and legislative requirements for handling hazardous materials, with potential significant costs and claims. CSXT is required to transport certain hazardous materials under the common carrier mandate.
• Enhanced security and safety requirements on passenger and freight transportation involving hazardous materials. The company may face increased cybersecurity threats due to its critical infrastructure component.
• Potential expenses exceeding existing cybersecurity insurance coverage in case of a cyber-attack. Failure to acquire, develop, or implement new technology, including artificial intelligence, may lead to a competitive disadvantage.
• Changes in climate change and environmental regulations, including requirements for disclosure and emission controls, may impact the company's financial condition, operations, and liquidity. The company may face higher regulatory, compliance, and reputational risks and costs.
• Global economic conditions could negatively affect demand for coal, resulting in lower revenue for the company. Changes to trade agreements or policies may also impact the company's financial condition and liquidity.
• Network or supply chain constraints could affect service, asset utilization, and overall efficiency, potentially impacting the company's operations and financial performance.