Deutsche Bank 5 th Annual Global Industrials and Basic Materials Conference

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1 Deutsche Bank 5 th Annual Global Industrials and Basic Materials Conference Marta R. Stewart Executive Vice President Finance & Chief Financial Officer June 05,

2 Norfolk Southern Update First Quarter Summary Second Quarter Update Business Outlook Long Term Productivity Opportunities Capital Allocation 2

3 1Q Railway Operating Revenues ($ in millions) $2,620 $2,789 $2,738 $2, Coal GM Intermodal 3

4 Volumes by Major Group 1Q vs and Full Year vs Q 24% 32% 17% 33% 44% 50% Year 23% 32% 18% 33% 45% 49% General Merchandise Intermodal Coal 4

5 Volume and Crew Start Variances Full Year 2013 vs Coal Shipments -17% Crew Starts Intermodal Shipments -21% 11% Total Shipments 3% Crew Starts 0% Merchandise Shipments 6% Crew Starts -3% Crew Starts 4% 5

6 1Q Operating Results 2014 vs ($ millions) Revenue decline partly offset by lower expense. (Unfavorable) Favorable $ % Railway operating revenues $ 2,689 $ 2,738 $ (49) (2%) Railway operating expenses 2,022 2, % Income from railway operations $ 667 $ 691 $ (24) (3%) Railway operating ratio (0.4) (1%) 6

$40 $10 $3 $3 $1 $2,047 $2,022 2013 Compensation

7 1Q Railway Operating Expenses 2014 vs ($ millions) Net decrease of $25 / 1%. $40 $10 $3 $3 $1 $2,047 $2, Compensation Purchased Depreciation Fuel Materials & Benefits Services & Rents & Other

Net Income Change vs. Prior Period: - 18% $450 Diluted Earnings per Share Change vs.

8 Net Income and Diluted Earnings per Share First Quarter 2014 vs ($ millions except per share) Lower NI and EPS largely due to absence of land sale gain. Net Income Change vs. Prior Period: - 18% $450 Diluted Earnings per Share Change vs. Prior Period: - 17% - 6% * - 4% * $1.41 $390 * $368 $1.22 * $ *Excluding land sale gain - please see reconciliation to GAAP posted on our web site. 8

9 Norfolk Southern Update 2014 First Quarter Overview Second Quarter Update Business Outlook Long Term Productivity Opportunities Capital Allocation 9

10 Current Railway Volume 2Q Quarter-to-Date units through Week 22 (May 31, 2014) 2014 QTD Volume: 1,366K units, up 8% Units (000) 1, Increase 1,

11 Increased Volume by Major Group 2Q Quarter-to-Date through Week 22 (May 31, 2014) Change in Units (000)/% 2QTD14 vs Intermodal 65.0/11% Met/Con Agriculture Coal Chemicals -0.2/0% -0.9/-2% 15.3/13% 7.5/7% 5.7/2% 5.3/7% Automotive Paper 11

12 Miles per Hour Train Speed 1Q11 2QTD14 Better

13 Hours Terminal Dwell 1Q11 2QTD14 Better

14 April-May Volumes and Crew Starts 2014 vs % Variances Total Variances Shipments 8% Crew Starts -1% 14

15 Norfolk Southern Update 2013 Overview First Quarter Update Business Outlook Long Term Productivity Opportunities Capital Allocation 15

16 Business Outlook for 2014 COAL Improved demand for utility coal due to weather; stockpiles reduced from 67 to 44 days supply Strong competition in the Atlantic metallurgical and thermal markets Contract loss in utility coal Reduced domestic met volumes related to plant closures and sourcing shifts 16

17 Business Outlook for 2014 COAL Improved demand for utility coal due to weather; stockpiles reduced from 67 to 44 days supply Strong competition in the Atlantic metallurgical and thermal markets Contract loss in utility coal Reduced domestic met volumes related to plant closures and sourcing shifts INTERMODAL Continued opportunities for highway conversion Continued growth in Crescent Corridor services Growth with International shipping partners Continued growth from new facilities South Carolina Inland Port and Charlotte Terminal 17

18 Business Outlook for 2014 COAL Improved demand for utility coal due to weather; stockpiles reduced from 67 to 44 days supply Strong competition in the Atlantic metallurgical and thermal markets Contract loss in utility coal Reduced domestic met volumes related to plant closures and sourcing shifts INTERMODAL Continued opportunities for highway conversion Continued growth in Crescent Corridor services Growth with International shipping partners Continued growth from new facilities South Carolina Inland Port and Charlotte Terminal MERCHANDISE Projected growth in crude oil, increased volume for shalerelated liquid petroleum gases and asphalt Gains in steel, frac sand Continued automotive growth Favorable corn and soybean crop for 2013/2014 puts and takes Improved housing & related construction materials market 18

Continued Strength in Automotive NSC Automotive volume up 7% in 2013 North American light vehicle production forecasted at 17.1 million units for 2014, up 3.6% vs.

19 Continued Strength in Automotive NSC Automotive volume up 7% in 2013 North American light vehicle production forecasted at 17.1 million units for 2014, up 3.6% vs. last year Average vehicle age at all-time high Vehicle Age (yrs.) U.S. Vehicle Age vs. Sales US Vehicle Sales (M) Source: WardsAuto Forecast, Polk

Merchandise Network Automotive Facilities

Baltimore Kansas City St Louis Cincinnati

Chattanooga Charlotte Dallas Birmingham Atlanta

Network New Orleans Jacksonville NS Automotive

20 Merchandise Network Automotive Facilities Detroit Buffalo Albany Ayer Chicago Toledo Cleveland Harrisburg Ft. Wayne Pittsburgh Columbus NY/NJ Philadelphia Baltimore Kansas City St Louis Cincinnati Louisville Lexington Norfolk Memphis Chattanooga Charlotte Dallas Birmingham Atlanta Charleston Meridian Savannah NS Automotive Network New Orleans Jacksonville NS Automotive Network and Haulage 27 Assembly Plants Titusville Assembly Plant on Short Line connecting with NS 20 Miami

21 21 NS Chicago to the East Coast Crude Corridor

22 Norfolk Southern Update 2013 Overview First Quarter Update Business Outlook Long Term Productivity Opportunities Capital Allocation 22

23 Bellevue Yard Expansion Elkhart, IN Conway, PA Bellevue, OH Allentown, PA Enola, PA Chattanooga, TN Sheffield, AL Birmingham, AL Knoxville, TN Linwood, NC Macon, GA 23

24 24 Bellevue Yard Expansion

25 UTCS - Movement Planner All 11 Divisions on Base System 7 of 11 Divisions on Movement Planner with remaining in 2014 Realizing benefits in velocity, productivity, and schedule adherence 25

26 Juniata Locomotive Shop 26 26

27 27 Locomotive Rebuild Programs

28 Norfolk Southern Update 2013 Overview First Quarter Update Business Outlook Long Term Productivity Opportunities Capital Allocation 28

29 Capital Expenditures ($ millions) Robust Capital Plan - $2.2 billion. $2,160 $2,241 $1,971 $2, B Positive Train Control 29

30 Cash From Ops and Capital Expenditures ($ millions) $3,227 $3,065 $3,078 $2,160 $2,241 $1, Cash from Operations Capital Expenditures 21 30

31 Annual Dividend Per Share Compound annual growth rate of 20% for 2004 through 2014 $1.22 $1.36 $1.40 $1.66 $1.94 $2.04 $2.16 $0.96 $0.36 $0.48 $ % +42% +41% +27% +11% +3% +19% +17% +4% +4% 31

32 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, 32

33 33 Thank You

Stifel Transportation and Logistics Conference. Marta R. Stewart Executive Vice President Chief Financial Officer February 11, 2014

Stifel Transportation and Logistics Conference Marta R. Stewart Executive Vice President Chief Financial Officer February 11, 2014 1 Norfolk Southern Update 2013 Overview First Quarter Update Business