Slide 1: Investor Presentation April 29, 2016
Investor Presentation April 29, 2016 1
Slide 2: Forward-Looking Statements
Certain statements in this presentation are forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or Norfolk Southern Corporation’s (NYSE: NSC) (“Norfolk Southern,” “NS”
Slide 3: Overview of Norfolk Southern
Overview of Norfolk Southern 3 Norfolk Southern’s network interfaces with: 74% of U.S. population 66% of U.S. manufacturing 55% of total energy consumption in the U.S. Estimated 50M+ long-haul (1) truck shipments in our service area Extensive port access Note: (1) Over 550 miles Strong Net
Slide 4: Norfolk Southern's Strategic Plan
Norfolk Southern’s Strategic Plan 4 Since Jim Squires was named CEO in June 2015, Norfolk Southern’s Board has worked closely with management to develop the strategic plan − Robust review of customer expectations, plant-level forecasts and market expectations − Extensive evaluation by highly quali
Slide 5: Driving Increased Shareholder Value
Driving Increased Shareholder Value Increase asset utilization Optimize revenue – both pricing and volume Double-digit compound annual EPS growth Improve productivity to deliver efficient and superior service Reward shareholders with significant return of capital Operating Ratio < 70 Focus capital i
Slide 6: Norfolk Southern Actions and Strategic Plan Already Showing Results
Norfolk Southern Actions and Strategic Plan Already Showing Results 6 Norfolk Southern continues to demonstrate its ability to deliver shareholder value Record first quarter operating ratio Double digit earnings per share growth Service improvements provided a solid foundation Norfolk Southe
Slide 7: Capital Deployment Strategy Balances Investment with Shareholder Returns
Capital Deployment Strategy Balances Investment with Shareholder Returns 0 2,000 4,000 6,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Balanced Cash Flow (2006 through 2015) Use of Cash Flow ($ in Millions) $17.7 Billion $14.9 Billion Cash from Operations Reinvest in Existing Asset Base Inve
Slide 8: Norfolk Southern's New Leadership Team
Norfolk Southern’s New Leadership Team 8 23 years of experience at Norfolk Southern Previously served as Chief Financial Officer, Executive Vice President Administration and Senior Vice President Law Jim Squires Chairman, President & CEO Appointed CEO in June 2015 30 years of experience at Nor
Slide 9: Highly Engaged & Effective Board of Directors
James A. Squires President & CEO Chairman of the Board Steven F. Leer Lead Independent Director Former CEO and Chairman, Arch Coal 5 11 6 4 5 7 11 8 5 11 Transportation Strategic Planning Marketing Information Technology HR and Compensation Government Relations Governance/Board Finance and Accountin
Slide 10: Norfolk Southern's Board Is Focused on Driving Value for All Shareholders
Norfolk Southern’s Board Is Focused on Driving Value for All Shareholders 10 Norfolk Southern’s Board is open to all alternatives to create shareholder value − The Board oversaw the development of Norfolk Southern’s new strategic plan that is driving significant improvement in operational and fina
Slide 11: Compensation Program Aligned to Performance
Compensation Program Aligned to Performance 11 Long-Term Incentive Awards Fixed Cash Performance Based Cash Performance Share Units (50%) • Reviewed annually and periodically adjusted based on market data, individual performance and experience, changes in position or duties or other circumstances El
Slide 12: Compensation Mix & Challenging 2015 Targets Align Executive Goals with Performance Goals
80.0% 79.6% 2014 Target 2015 Target 69.9% 68.8% 2014 Target 2015 Target $3.44 $3.64 2014 Target 2015 Target Compensation Mix & Challenging 2015 Targets Align Executive Goals with Performance Goals 12 To align executive goals with the company’s performance goals, the Board set more challenging 2015 o
Slide 13: Commitment to Strong Compensation Governance Practices
Commitment to Strong Compensation Governance Practices 13 WE DO WE DON’T DO Stock Ownership Guidelines CEO – 5 times annual salary EVPs – 3 times annual salary Pledging or hedging of Norfolk Southern securities Clawback provisions in both annual and long-term incentives Stock option repricing,