Norfolk Southern Corporation · NYSE:NSC
Norfolk Southern — Investor Presentation (February 2004)
18 slides from Norfolk Southern's investor presentation, Feb 12, 2004
Slide 1: Pocahontas Land Corporation
Pocahontas Land Corporation Pocahontas Land Corporation (PLC) is Norfolk Southern's natural resource subsidiary and a vital contributor to its core rail business. PLC owns and/or manages a million acres of land containing coal in Alabama, Illinois, Kentucky, Tennessee, Virginia and West Virginia. Co
Slide 2: By Volatile Matter / Triple Crown Services
By Volatile Matter* (tons) Low-volatile 309 million Mid-volatile 101 million High-volatile 1,408 million Total 1,818 million * Volatile matter is a key coal characteristic that coke producers consider in determining coal blends for their coke that goes into blast furnaces. By Sulfur Content** (tons)
Slide 3: Markets — An Overview
Markets — An Overview Market Mix Norfolk Southern's balanced traffic portfolio reduces dependence on any one sector of the economy. In 2003, general merchandise traffic accounted for 58% of total Norfolk Southern revenues, while coal accounted for 23% and intermodal 19%. Norfolk Southern continues t
Slide 4: Sources of 2003 Railway Operating Revenues
Sources of 2003 Railway Operating Revenues Agriculture 1% Metals ang Construction: 1% PaperiForest 10%
Slide 5: Agriculture, Consumer Products and Government
Agriculture, Consumer Products and Government Business Description The Agriculture, Consumer Products and Government team has marketing and sales responsibility for the transportation of corn, wheat, soybeans, fertilizer, sweeteners, animal and poultry feeds, beverages, canned goods, and consumer pr
Slide 6: Percent of 2003 Total Revenues
Percent of 2003 Total Revenues Agriculture, Consumer Products and Govemment 11%
Slide 7: Automotive Assembly Plants Located on Norfolk Southern Since 1988
Automotive Assembly Plants Located on Norfolk Southern Since 1988 Manufacturer Location Production Date Toyota Georgetown, Ky. May, 1988 Mitsubishi Bloomington, Ill. Sept., 1988 Subaru-Isuzu Lafayette, Ind. Sept., 1989 Ford-Nissan Avon Lake, Ohio April, 1992 Toyota (2nd plant) Georgetown, Ky. March,
Slide 8: Metals and Construction
Metals and Construction Business Description The Metals and Construction Team serves producers, suppliers, and distributors of metals products, metallic ores, scrap metal, machinery, cement, brick, sand and gravel, and miscellaneous construction materials. Norfolk Southern is the nation's largest tr
Slide 9: Paper, Clay and Forest Products
Paper, Clay and Forest Products Business Description Norfolk Southern's Paper, Clay and Forest Products group is responsible for the marketing of all commodities involved with the paper and forest products transportation supply chain from raw materials, such as kaolin, woodchips, pulp and recycled p
Slide 10: MODALGISTICS
MODALGISTICS® Business Description MODALGISTICS® is a supply chain services group that provides comprehensive logistical solutions by integrating management resources and supply chain technology. MODALGISTICS plans, develops and implements supply chain solutions for rail- and non-rail served custome
Slide 11: Estimated Dollar Damage for Derailment
Estimated Dollar Damage for Derailment MINS B Rail Indus ty - excusing NS 2009 ES 9 $1 oe a or 1999 019 Cents perCar-Mile
Slide 12: Ratio of Cars Derailed per Billion Car-Miles
Ratio of Cars Derailed per Billion Car-Miles MINS = Rail Industy- excluding NS 8 ST 25° ST” = ws —_— a —— oo SS s00 ce EE ~ 1989
Slide 13: Service Initiatives
Service Initiatives NS Refines Operations, Improves Service Norfolk Southern is achieving new levels of service. New performance measurement tools are helping the company target more consistent, higher-value customer service. New and enhanced tools added to the company's abilities to measure service
Slide 14: Railroad Employees (average)
Railroad Employees (average) (by quarter) 28.147 codes co-unr ove zg zodes 6-000 sodas seunr
Slide 15: Operating Revenue per Employee
Operating Revenue per Employee (S thousands) 2001 82002 —=2003 $65.00 $55.00 $45.00 10 200 3Qs 4k
Slide 16: Carloads per Employee
Carloads per Employee 2001 82002 2003 65.00 60.00 55.00 50.00 SSS 10 20—C3Q 4
Slide 17: Diesel Fuel Expense Analysis - Year over Year
Diesel Fuel Expense Analysis - Year over Year (Expense variance - millions) Consumption m Price $250 3200 1988 1999 ©2000-2001 19988. 2000 ve. 2001vs. 2002 ve 2002 6 2002
Slide 18: Stock Price
Stock Price High Low - Close $36.44 62 $20.50 | $22.75 $23.65 $19.68 317.20 | s17.35 $13.31 $14.94 1999 2000 2001 += 2002.-—S-- 2003 $13.41
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