Fourth Quarter 2012 Results Mark Manion Executive Vice President - PowerPoint PPT Presentation

Fourth Quarter 2012 Results Mark Manion Executive Vice President and Chief Operating Officer

Safety Performance By Quarters 2011 - 2012 (Injury Ratio per 200,000 Employee-Hours) 2011 1.50 2012 1.00 0.50 0.87 0.62 0.79 0.72 0.82 0.79 0.78 0.80 * 0.00 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr * Preliminary 4th Quarter 2012

Composite Service Performance By Quarters 2011 - 2012 2011 85% 2012 80% 75% 70% 83.3% 83.4% 82.8% 76.3% 72.2% 76.6% 82.9% 78.2% 65% 60% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Train Speed Better By Quarter 2011 - 2012 2011 25 2012 23 Miles per Hour 21 19 20.9 21.4 23.4 21.1 23.7 21.4 24.1 24.6 17 15 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Terminal Dwell Better By Quarter 2011 - 2012 2011 28 2012 26 Average Hours 24 22 26.2 21.8 23.9 21.6 23.6 21.3 24.5 21.7 20 * 18 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Operating Efficiencies Fourth Quarter 2012 vs. 2011 Train & Engine Service Overtime Improved 25% Crew Starts Improved 3% Re-Crews Improved 42% Equipment Rents (Velocity Driven) Improved 14% Carloads/Units per Locomotive Improved 5% Gross Ton Miles per Gallon Improved 4%

Asset Storage & Furloughs  Locomotives stored 258  Freight cars stored 9,044  Total Employees Furloughed 590

Productivity Initiatives  Network Velocity  Workforce Productivity  Better Coordination of Production Gangs and Associated Work  Asset Utilization  More Flexible Investment Strategy for our Track Structure  Engine Overhaul Reduction  Network Yard, Road, and Employee Rightsizing

Productivity Initiatives  Network Velocity  Workforce Productivity  Better Coordination of Production Gangs and Associated Work  Asset Utilization  More Flexible Investment Strategy for our Track Structure  Engine Overhaul Reduction  Network Yard, Road, and Employee Rightsizing

Productivity Initiatives  Network Velocity  Workforce Productivity  Better Coordination of Production Gangs and Associated Work  Asset Utilization  More Flexible Investment Strategy for our Track Structure  Engine Overhaul Reduction  Network Yard, Road, and Employee Rightsizing

Productivity Initiatives  Network Velocity  Workforce Productivity  Better Coordination of Production Gangs and Associated Work  Asset Utilization  More Flexible Investment Strategy for our Track Structure  Engine Overhaul Reduction  Network Yard, Road, and Employee Rightsizing