Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President Finance and Chief Financial Officer
Cash From Operations ($ billions) $3.23 $3.07 $3.08 $2.72 $2.71 $2.33 $2.21 $1.86 2006 2007 2008 2009 2010 2011 2012 2013 21
Capital Deployment Cash from Operations Reinvest in Invest for Repurchase Existing Asset Pay Dividend Growth Shares Base
Uses of Cash Flow ($ millions) Reinvested and PTC Growth Dividends Shares 2006 2007 2008 2009 2010 2011 2012 2013 21
Balanced Cash Flow Utilization 2006 through 2013 $13.2 Billion $12.1 Billion* $4.0 Billion $8.1 Billion Capital Expenditures Share Repurchases Dividends * See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
Dividend and Share Repurchases 2006 through 2013 $4.0 Billion 17% CAGR Dividends Share 137M shares Repurchases $8.1 Billion avg. $59.37/share * See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
Bellevue: Generating Value Tom Werner Vice President & Treasurer
Returning Shareholder Value Customer Needs Shareholder Efficiency Service Value Infrastructure
2014 Capital Improvement Budget Core vs. Growth vs. PTC Maintain the franchise, invest in business growth. Core/Replacement Investments Rail, Tie, Ballast programs 10% Locomotive rebuild program 24% Coal car replacements Growth/Productivity Investments New locomotives Yard expansions 66% Technology Infrastructure improvements Positive Train Control
Capital Plan Outlook • Maintenance of Way • Continued Freight Car Investments • Renewal of Locomotive Fleet
Locomotive Rebuild Programs
Return on Investment Define Benefits ROI Define Audit Costs Model and Analyze
Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 line of road projects between Chicago and Cleveland
Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 line of road projects between Chicago and Cleveland
Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 line of road projects between Chicago and Cleveland
NS Project Evaluation Process Improve Develop Analyze Forecast Business Infrastructure Operating Plan Return • Design & Construction Adjust for New State
NS Project Evaluation Process Manage Risk Improve Develop Analyze Forecast Business Infrastructure Operating Plan Return Adjust for New State
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