Bernstein Strategic Decisions

Conference

Jim Squires, President

May 27, 2015 | www.nscorp.com

We Connect Markets to the World

Major connections, serving 75% of US population and all major Eastern Seaports

A Diverse, Wide-Reaching Franchise

Networks reach 65% of US manufacturing and 55% of US energy consumption

Coal

17%

Industrial and

Other 33%

Intermodal

50%

2014 Volume Composition

Our Vision

Safest, most customer-focused and successful transportation company in world

Deliver safe, reliable, efficient service

Maximize incremental margin

Reinvest in the core franchise

Return funds to shareholders

Advance shareholder interests

Five Guiding Principles

*NI and EPS exclude 2013 Michigan land sale gain - please see reconciliation to GAAP posted on our web site.

Revenue $11,624 3%

Income From Ops $3,575 10%

Operating Ratio 69.2 3%

Net Income* $2,000 8%

Earnings per Share* $6.39 9%

Record Financial Results

2014 vs. 2013 % ($ in millions, except per share)

Record Results

Double Digit EPS CAGR over Five- and Ten-years

34%

42%

24% 33%

50%

17%

2009 Volume 2014 Volume

Coal Intermodal Merchandise

6

Managing shifting mix

Volume

Cash Flow Utilization

Reinvested in franchise and returned funds to shareholders

0

0.5

1

1.5

2

2.5

2004 20140

0.5

1

1.5

2

2.5

2004 20140

1

2

3

4

5

6

7

8

9

2006 2014

Capital Expenditures

$ in billions

Dividends per Share Repurchases

cumulative $ in billions

Added Crews, Locomotives, Capacity

People | Equipment | Rail Capacity

We invested throughout 2014 to meet high demand and improve service

2015 Outlook

Moderated revenue with lower expenses

REVENUE

Volume growth in most markets

Increased core pricing in most markets

Coal volume down

Softer steel volumes

Further declines in fuel surcharge revenue

EXPENSES

Fuel costs down

Service-related costs decline in second half

Front-end loaded hiring

Front-end loaded wage rate increases

Roanoke relocation costs in 2Q and 3Q

Energy

Coal continues in the mix

Oil production – new and projected

Natural gas production and expansion

Manufacturing

Cost of US manufacturing

FDI in the United States

Highway Conversions

$700B in US trucking revenues

Trucking industry is challenged

Highway congestion

Driver availability

Intermodal and carload growth ahead

10

Broad Opportunities for Growth

Cash Deployment 2015

Capital Budget

$2.4 Billion

Reinvesting in franchise, returning funds to shareholders, strategic investment

71%

20%

9%

} Renewal

Growth

PTC

Quarterly Dividend/Share

$0.59 4%

Share Repurchases

$1.2-$1.3 Billion

D&H Strategic Investment

$0.2 Billion

Bernstein Strategic Decisions

Conference

Jim Squires, President

Norfolk Southern Corp. | www.nscorp.com