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

Stephens Inc. Fall Investment Conference

Deborah H. Butler Executive Vice President Planning and Chief Information Officer

November 16, 2011

Norfolk Southern Update

• Recent Results
• 3rd Qtr Financial Highlights
• 3rd Qtr Revenues
• Current Status
• 4th Qtr-to-date Volumes
• 4th 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

8% 8% 7% 1%

• 5%
• 7%
• 11%

Automotive Intermodal MetCon Coal Paper Agriculture Chemicals 1,522 1,753 1,810 3Q09 3Q10 3Q11

Units (000) Change in Units 3Q11 vs. 3Q10

15% 3%

Revenue Per Unit

Third Quarter

26% 21% 16% 16% 13% 10% 8% Coal * MetCon* Agriculture * Chemicals Paper* Intermodal Automotive* $1,355 $1,401 $1,596 3Q09 3Q10 3Q11

RPU Change in RPU 3Q11 vs. 3Q10

3% 14%

* Record RPU

Total Railway Revenues

Third Quarter

29% 27% 19% 17% 7% 7% 4% MetCon Coal Intermodal Automotive Agriculture Paper Chemicals $2,063 $2,456 $2,889 3Q09 3Q10 3Q11

Revenue in $ Mill. Change in Revenue 3Q11 vs. 3Q10

19% 18%

Current Railway Volume

Fourth Quarter through Week 45 (November 12, 2011)

16% 11% 7% 1%

• 5%
• 11%
• 12%

Automotive Intermodal MetCon Coal Paper Agriculture Chemicals 747 823 860 2009 2010 2011

Units (000) Change in Units 2011 vs. 2010

10% 4%

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 Metals and Construction 5,869 5,350 US production, VW plant Increased steel production

Train Speed

Year-to-Date through November 4, 2011

19.0 19.5 20.0 20.5 21.0 21.5 22.0 22.5

NS Train Speed (miles per hour) Better

Source: As reported publicly to the AAR

Terminal Dwell

Year-to-Date through November 4, 2011

Source: As reported publicly to the AAR

21 23 25 27 29 31 33

NS Terminal Dwell (hours) Better

Chicago Cincinnati Columbus Pritchard Roanoke Norfolk Detroit Philadelphia Ayer Atlanta

Charlotte

Lynchburg Corinth Shreveport Meridian New Orleans

Memphis

NY/NJ Bethlehem

NS Corridor Strategy

Greencastle Mechanicville Birmingham

X Crescent Corridor

Crescent Corridor

Terminal Under Construction

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Intermodal Terminal Expansion Update

Ground Breaking Date Completion Date Annual Volume 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)

$763 $489 $244 $212 $146 $96 $79 $194

Roadway Freight Cars Facilities & Terminals Locomotives PTC Technology Infrastructure Other Projects

Total Projected Spending = $2.2 billion

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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