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Analyst Conference September 23, 2014 Marta R. Stewart Executive - PowerPoint PPT Presentation

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. Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President Finance and Chief Financial Officer

  2. 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

  3. Capital Deployment Cash from Operations Reinvest in Invest for Repurchase Existing Asset Pay Dividend Growth Shares Base

  4. Uses of Cash Flow ($ millions) Reinvested and PTC Growth Dividends Shares 2006 2007 2008 2009 2010 2011 2012 2013 21

  5. 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.

  6. 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.

  7. Bellevue: Generating Value Tom Werner Vice President & Treasurer

  8. Returning Shareholder Value Customer Needs Shareholder Efficiency Service Value Infrastructure

  9. 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

  10. Capital Plan Outlook • Maintenance of Way • Continued Freight Car Investments • Renewal of Locomotive Fleet

  11. Locomotive Rebuild Programs

  12. Return on Investment Define Benefits ROI Define Audit Costs Model and Analyze

  13. Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 line of road projects between Chicago and Cleveland

  14. Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 line of road projects between Chicago and Cleveland

  15. Overall: $500+ million investment Elkhart Butler Chicago Toledo Cleveland Bellevue Ft. Wayne 18 line of road projects between Chicago and Cleveland

  16. NS Project Evaluation Process Improve Develop Analyze Forecast Business Infrastructure Operating Plan Return • Design & Construction Adjust for New State

  17. NS Project Evaluation Process Manage Risk Improve Develop Analyze Forecast Business Infrastructure Operating Plan Return Adjust for New State

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