BB&T Capital Markets Transportation Conference

Marta R. Stewart Executive Vice President Chief Financial Officer February 12, 2014

1

Norfolk Southern Update

2013 Overview

First Quarter Update

Business Outlook

Long Term Productivity Opportunities

Capital Allocation

2

2011 2012 2013

Coal GM Intermodal

$11,172

3

Railway Operating Revenues 2011 – 2013 ($ in millions)

$11,040 $11,245

23% 20%

18%

32% 33% 33%

45% 47%

49%

2011 2012 2013

Coal GM Intermodal

Traffic Volume Changes Percentage of Total Volumes

4

7,114.7 7,107.2 7,340.9

2011 2012 2013

Volumes

Total Volumes 2011 – 2013 (Units in thousands)

5

$7,959 $7,916 $7,988

2011 2012 2013

Operating Expenses

Railway Operating Expenses 2011 – 2013 ($ in millions)

6

75.9%

83.1% 83.3%

2011 2012 2013

Composite Service Metric

Composite Service Performance 2011 – 2013

7

8

Volume and Crew Start Variances 2013 vs. 2012

0%

4%

Coal

-9%

-5%

Merchandise

Intermodal

0%

6%

-3%

3%

Shipments

Crew Starts

Shipments

Crew Starts

Shipments

Crew Starts

Total

Shipments

Crew Starts

9

-10%

-9%

5%

1%

Train and Engine Service Overtime

Re-Crews

Carloads/Units per Locomotive

Gross Ton Miles per Gallon

Year-Over-Year Percent Improvement

Operating Efficiencies 2013 vs. 2012

Norfolk Southern Update

2013 Overview

First Quarter Update

Business Outlook

Long Term Productivity Opportunities

Capital Allocation

10

801.1 764.7

2013 2014

Units (000)

Current Railway Volume First Quarter through Week 6 (February 8, 2014)

11

2014 Volume: 764,700 units, down (5%)

13%

(1%)

(5%)

(7%)

(8%)

(10%)

(15%)

Change in Units

1QTD14 vs. 2013

Chemicals

Intermodal

Agriculture

MetCon

Paper

Automotive

Coal

Current Railway Operating Expenses First Quarter through January

Increased labor hours

Increased overtime

Increased locomotives in service

Increased fuel consumption

12

Severe Weather Effects

Train Speed 1Q11 – 1QTD14

20.9

23.4

24.2

22.7

19.0

20.0

21.0

22.0

23.0

24.0

25.0

Mile

s p

er

Ho

ur

13

Better

Terminal Dwell 1Q11 – 1QTD14

20.0

21.0

22.0

23.0

24.0

25.0

26.0

27.0

Ho

urs

14

Better

Norfolk Southern Update

2013 Overview

First Quarter Update

Business Outlook

Long Term Productivity Opportunities

Capital Allocation

15

Business Outlook for 2014

COAL • Utility coal impacted by

reduced demand for electricity

and natural gas competition

• Strong competition in the

Atlantic metallurgical market

• Soft demand and oversupply of

thermal coal

• Flat domestic met coal

16

Business Outlook for 2014

COAL • Utility coal impacted by

reduced demand for electricity

and natural gas competition

• Strong competition in the

Atlantic metallurgical market

• Soft demand and oversupply of

thermal coal

• Flat domestic met coal

INTERMODAL • Continued opportunities for

highway conversion

• Continued growth in Crescent

Corridor services

• Growth with International

shipping partners

• Continued growth – opened

Charlotte Terminal December 9

17

Business Outlook for 2014

COAL • Utility coal impacted by

reduced demand for electricity

and natural gas competition

• Strong competition in the

Atlantic metallurgical market

• Soft demand and oversupply of

thermal coal

• Flat domestic met coal

INTERMODAL • Continued opportunities for

highway conversion

• Continued growth in Crescent

Corridor services

• Growth with International

shipping partners

• Continued growth – opened

Charlotte Terminal December 9

MERCHANDISE • Project growth in crude oil,

increased volume for shale

related liquid petroleum gases

and asphalt

• Gains in steel, frac sand

• Continued automotive growth

• Favorable corn and soybean

crop for 2013 – puts and takes

• Improved housing & related

construction materials market

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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

Source: WardsAuto Forecast, Polk 19

6

8

10

12

14

16

18

20

6

7

8

9

10

11

12

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US Vehicle Sales (M)

Vehicle Age (yrs.)

U.S. Vehicle Age vs. Sales

Merchandise Network Automotive Facilities

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Atlanta

Charlotte

Chicago

Columbus

Detroit

Savannah

Miami

Cincinnati

Harrisburg

Norfolk

New Orleans

Memphis

Dallas

Jacksonville

Charleston

Lexington

Kansas City St Louis

Louisville

Baltimore

Toledo Cleveland

Pittsburgh

Ayer Albany Buffalo

Titusville

NY/NJ

Philadelphia

Birmingham

Meridian

Chattanooga

NS Automotive Network NS Automotive Network and Haulage

27 Assembly Plants

Assembly Plant on Short Line

connecting with NS

Ft. Wayne

Supply Chain Routing An East Coast Refinery Illustration

Most direct route to East Coast

refineries

Resiliency in yard and routing

infrastructure

Demonstrated service performance

(36-40 hr. transit from Chicago)

21

Permian Current: 1.3M

Projected: 1.9M-2.3M

Crude Oil Market Dynamics North American Production, Pricing, and Specs

Sources: EIA, Bentek, Bloomberg

Williston $77

WTI $98

WCS $71

Brent $111

Prices represent December 2013 averages ($/bbl)

Projected 2020 daily production levels (bbl)

Oil Sands Current: 1.8M

Projected: 3.2M-4.8M Williston Basin

Current: 780K

Projected: 1.3M-2.1M

Niobrara Current: 120K

Projected: 330K-765K

Eagle Ford Current: 750K

Projected: 1.4M-1.8M

Utica Current: 5K

Projected: 100K-118K

LLS $103

ANS $111

22

NS Chicago to the East Coast Crude Corridor

23

Norfolk Southern Update

2013 Overview

First Quarter Update

Business Outlook

Long Term Productivity Opportunities

Capital Allocation

24

Roanoke Hump Closure

Roanoke

Atlanta

Norfolk

Charleston

Philadelphia Columbus

25

Sheffield, AL

Bellevue Yard Expansion

Bellevue, OH

Allentown, PA

Macon, GA

Birmingham, AL

Enola, PA

Elkhart, IN

Conway, PA

Linwood, NC Chattanooga, TN Knoxville, TN

26

Bellevue Yard Expansion

27

UTCS - Movement Planner

All 11 Divisions on Base System

5 of 11 Divisions on

Movement Planner with remaining in 2014

Realizing benefits in

velocity, productivity, and schedule adherence

28

Norfolk Southern Update

2013 Overview

First Quarter Update

Business Outlook

Long Term Productivity Opportunities

Capital Allocation

29

2011 2012 2013 2014 Budget

$2,160 $2,241

$1,971

$2,200

Capital Expenditures ($ millions)

21

30

Intermodal Corridors

31

Harrisburg

X Crescent Corridor

Crescent Corridor

Crescent Terminal

32

2014 Capital Improvement Budget Core vs. Growth vs. PTC

66%

24%

10%

Core/Replacement Investments

Rail, Tie, Ballast programs

Locomotive rebuild program

Coal car replacements

Growth/Productivity Investments

New locomotives

Yard expansions

Technology

Infrastructure improvements

Positive Train Control

Maintain the franchise, invest in business growth.

33

2011 2012 2013

$3,227 $3,065 $3,078

$2,160 $2,241 $1,971

Cash from Operations Capital Expenditures

Cash From Ops and Capital Expenditures ($ millions)

21

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Weighted Avg Interest Rate & Maturities

2008 – 2013

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

6.75% 6.69% 6.57%

6.14%

5.51% 5.44%

Weighted Avg Interest Rate

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

20.5 19.4 22.0

26.3

23.6 22.9

Weighted Avg Maturities (yrs)

35

Balanced Cash Flow Utilization 2006 through 2013

Capital Expenditures Share Repurchases Dividends

$13.2 Billion $12.1 Billion*

$8.1 Billion

$4.0 Billion

* See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.

36

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$0.36 $0.48

$0.68

$0.96

$1.22 $1.36 $1.40

$1.66

$1.94 $2.04 $2.16

Annual Dividend Per Share

Compound annual

growth rate of 20% for

2004 through 2014

+33% +42% +41% +27% +11% +3% +19% +17% +4% +4%

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Thank You

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