BB&T Annual Transportation ConferenceFebruary 16, 2011

Deborah H. ButlerExecutive Vice Presidentand Chief Information Officer

Overview

• Safety• Service Performance• Moving Forward in 2011

Overview

• Safety• Service Performance• Moving Forward in 2011

Quarterly Safety Performance2010 Preliminary (Injury Ratio per 200,000 Employee-Hours)

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

1.10

0.89 0.85

0.68

Overview

• Safety• Service Performance• Moving Forward in 2011

T&E Employment CountNet of Furloughs, Trainees, and Projected Attrition

10,500

10,750

11,000

11,250

11,500

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Productivity Scorecard2010 vs. 2009

GTMs per Gallon

GTMs per Employee

Total Employees

Crew Starts

Carload Volume

1%

14%

(1%)

5%

14%

Propelling the Franchise

Propelling the Franchise

0.8

0.9

1

1.1

1.2

1.3

1.4

64

69

74

79

84

89

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Operating Ratio Injury Ratio per 200,000 Employee Hours

Operating Ratio Injury Ratio

Improved Safety Process Improvements Lower Operating Ratio

Six Sigma

LEAN

LEADER

UTCS

TYES OPD

RailEdge

ECPTOR

Overview

• Safety• Service Performance• Moving Forward in 2011

Outlook – Business Portfolio

• Manufacturing recoveryChemicals

• Build out of ethanol network and export grain growthAgriculture

• Highway conversionsDomestic Intermodal

• Improving imports/exportsInternational Intermodal & Export Coal

• Recovery in global steel productionDomestic Met Coal & Steel

• Falling stockpiles and increased electricity generationUtility Coal

• New business, improved auto production and salesAutomotive

• Uncertainty in housing, but improving paper marketsForest Products

Chicago

Cincinnati

Columbus

Pritchard Roanoke

Norfolk

Detroit

Harrisburg Philadelphia

NY/NJ

Titusville

Jacksonville

Atlanta

Charlotte

Lynchburg

ShreveportMeridian

Birmingham

New Orleans

Memphis

Bethlehem

MechanicvilleAyer

Corridor Volume Increases

2010 vs. 2009

Premier Route 18%

PanAm Southern 32%

Crescent Corridor 31%

Meridian Speedway 36%

Titusville 146%

NSCorridor Strategy

Long-Term Business Focus & Strategy

Long Term Revenue &

Volume Growth

New Business

Development

Corridor Strategy

Yield Management

Profitability Improvement

Improve Customer

Satisfaction

Lamberts Point Coal Docks - 2/12/11Cape Henry, Chesapeake Bay – 2/12/11

21

Railway VolumeFirst Quarter through Week 6 2011 vs. 2010

1QTD 2011 vs. 2010

Units Abs. % Chg.

Agriculture 72,187 (1,571) (2%)

Chemicals 44,029 (997) (2%)

MetCon 62,598 4,109 7%

Paper 37,504 1,122 3%

Automotive 32,464 2,650 9%

Merchandise 248,782 5,223 2%

Intermodal 338,427 29,228 9%

Coal 187,622 26,531 16%

Total 774,831 60,982 9%

Source: AAR carloadings, which are reported weekly and may not equal NS' reported volumes.

Total Capital Program($ Millions)

2007 2008 2009 2010 2011 budget

$1,341 $1,558

$1,299 $1,470

$1,743

$334$146

Baseline Lease Replacements PTC

$2,223

23

$763

$244

$212

$155

$96

$79

$194

RoadwayFacilities & TerminalsLocomotivesFreight CarsTechnologyInfrastructureOther Projects

* Please see reconciliation to GAAP posted on our website

2011 Baseline Capital Program*($ Millions)

Total Spending = $1.7 billion

24

$763

$244

$212

$155

$96

$79

$194

RoadwayFacilities & TerminalsLocomotivesFreight CarsTechnologyInfrastructureOther Projects

2011 Baseline Capital Program($ Millions)

Total Spending = $1.7 billion

25

$763

$244

$212

$155

$96

$79

$194

RoadwayFacilities & TerminalsLocomotivesFreight CarsTechnologyInfrastructureOther Projects

2011 Baseline Capital Program($ Millions)

Total Spending = $1.7 billion

26

$763

$244

$212

$155

$96 $79

$194

RoadwayFacilities & TerminalsLocomotivesFreight CarsTechnologyInfrastructureOther Projects

2011 Baseline Capital Program($ Millions)

Total Spending = $1.7 billion

27

Freight Cars - Purchase vs. Lease

28

• Financing decision produces a positive PV

• 2011 bonus depreciation

• Accretive to earnings

2011 Capital Program Objectives

• Maintain the franchise

• Strengthen the coal fleet

• Invest in business growth

• Optimize capital efficiency (purchase versus lease)

29

• Will get picture from Frank Brown

Thank You