Stephens Inc. Fall Investment Conference November 16, 2011 Deborah - PowerPoint PPT Presentation

Stephens Inc. Fall Investment Conference November 16, 2011 Deborah H. Butler Executive Vice President Planning and Chief Information Officer

Norfolk Southern Update  Recent Results  3 rd Qtr Financial Highlights  3 rd Qtr Revenues  Current Status  4 th Qtr-to-date Volumes  4 th Qtr-to-date Service Performance  Corridors and Terminals  2012 Capital Budget Drivers

Third Quarter Financial Highlights ($ in millions, except per share) 3Q11 vs. 3Q10 Change Revenues $433 18% Income From Ops $192 26% Net Income $109 24% Earnings per Share $0.40 34%

Railway Volume Third Quarter 1,810 Automotive 8% 1,753 Intermodal 8% 3% MetCon 7% 15% Coal 1% 1,522 Paper -5% Agriculture -7% Chemicals -11% 3Q09 3Q10 3Q11 Change in Units Units (000) 3Q11 vs. 3Q10

Revenue Per Unit Third Quarter Coal * 26% $1,596 MetCon* 21% Agriculture * 16% 14% $1,401 Chemicals 16% $1,355 3% Paper* 13% Intermodal 10% Automotive* 8% 3Q09 3Q10 3Q11 Change in RPU RPU 3Q11 vs. 3Q10 * Record RPU

Total Railway Revenues Third Quarter $2,889 MetCon 29% $2,456 18% Coal 27% $2,063 Intermodal 19% 19% Automotive 17% Agriculture 7% Paper 7% Chemicals 4% 3Q09 3Q10 3Q11 Change in Revenue Revenue in $ Mill. 3Q11 vs. 3Q10

Current Railway Volume Fourth Quarter through Week 45 (November 12, 2011) 860 16% Automotive 4% 823 11% Intermodal 7% MetCon 10% 747 1% Coal -5% Paper Agriculture -11% Chemicals -12% 2009 2010 2011 Change in Units Units (000) 2011 vs. 2010 Source: AAR carloadings, which are reported weekly and may not equal NS’ reported volumes.

Fourth Quarter – Primary Volume Drivers Increase in Units Intermodal 39,176 Continued strong domestic demand Automotive 5,869 US production, VW plant Metals and Construction 5,350 Increased steel production

Train Speed Year-to-Date through November 4, 2011 NS Train Speed Better (miles per hour) 22.5 22.0 21.5 21.0 20.5 20.0 19.5 19.0 Source: As reported publicly to the AAR

Terminal Dwell Year-to-Date through November 4, 2011 NS Terminal Dwell Better (hours) 33 31 29 27 25 23 21 Source: As reported publicly to the AAR

NS Corridor Strategy Mechanicville Ayer Detroit Bethlehem Chicago NY/NJ Greencastle Philadelphia Columbus Cincinnati Lynchburg Pritchard Roanoke Norfolk Charlotte Memphis Corinth Atlanta Birmingham Shreveport Meridian New Orleans

Crescent Corridor X Crescent Corridor Terminal Under Construction 12

Intermodal Terminal Expansion Update Ground Breaking Completion Annual Volume Date Date Capability (Lifts) Mechanicville, NY July 2010 Spring 2012 70,000 Memphis, TN January 2011 Fall 2012 200,000 Greencastle, PA June 2011 Fall 2012 85,000 Birmingham, AL June 2011 Fall 2012 100,000 Charlotte, NC Summer 2011 Summer 2013 200,000

Memphis (Rossville) TN Intermodal Facility

Rossville, TN – Pad, Parking, Support Tracks

Rossville, TN – Drainage Installation, Pad Area

Rossville, TN – Drainage Installation, Pad Area

Rossville, TN – Wye at Main Line

Birmingham (McCalla) AL Intermodal Facility

McCalla, AL – Earth Moving Equipment

McCalla, AL – Earth Moving Equipment

McCalla, AL – School, Berm & Culvert

Greencastle, PA Intermodal Facility

Greencastle, PA Intermodal Facility

Greencastle, PA Intermodal Facility

2011 Capital Program ($ millions) Total Projected Spending = $2.2 billion $194 $79 $96 Roadway $763 Freight Cars $146 Facilities & Terminals Locomotives PTC $212 Technology Infrastructure Other Projects $244 $489 26

Looking Ahead to 2012  Complete construction of new Intermodal terminals  Continue initiative to replace the Coal Hopper fleet  Invest in Technology, including implementation of Positive Train Control (PTC)  Continue to maintain our current network