J.P Morgan Aviation, Transportation & Defense ConferenceMarch 24, 2011

Wick MoormanChairman, President & CEONorfolk Southern Corporation

Norfolk Southern Corporation

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Agenda

NS Business Outlook

Resource Initiatives

Financial Objectives

ChicagoJanuary 31, 2011

Railway VolumeFirst Quarter through Week 11 2011 vs. 2010

1QTD 2011 vs. 2010

Units Abs. % Chg.

Agriculture 134,522 (3,673) (3%)

Chemicals 81,309 (1,795) (2%)

MetCon 124,266 8,262 7%

Paper 68,960 1,259 2%

Automotive 66,313 5,266 9%

Merchandise 475,370 9,319 2%

Intermodal 641,750 57,019 10%

Coal 345,212 34,149 11%

Total 1,462,332 100,487 7%

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

Responding to Growth

• Employees

• Equipment:– Locomotives and Freight Cars

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

10,000

10,500

11,000

11,500

12,000

12,500

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

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Resource Initiatives - Locomotives

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Productivity ScorecardTwo Months 2011 vs. 2010

Carload Volume

Crew Starts

Railroad Employees

GTMs per Employee

GTMs per Gallon

GTMs per Train Hour

8%

5%

6%

3%

0%

2%

Railway VolumeFirst Quarter through Week 11 2011 vs. 2010

1QTD 2011 vs. 2010

Units Abs. % Chg.

Agriculture 134,522 (3,673) (3%)

Chemicals 81,309 (1,795) (2%)

MetCon 124,266 8,262 7%

Paper 68,960 1,259 2%

Automotive 66,313 5,266 9%

Merchandise 475,370 9,319 2%

Intermodal 641,750 57,019 10%

Coal 345,212 34,149 11%

Total 1,462,332 100,487 7%

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

Outlook – Business PortfolioGeneral Merchandise

• Manufacturing recoveryChemicals

• Build out of ethanol network and export grain growthAgriculture

• New business, improved auto production and salesAutomotive

• Recovery in global steel productionSteel

• Uncertainty in housing, but improving paper marketsForest Products

Outlook – Business PortfolioIntermodal

• Truckload conversionsDomestic Intermodal

• Improving imports/exportsInternational Intermodal

• New business opportunityPremium

Within our service territory: 74% of the 2009 US

population 58% of total energy

consumption in U.S. 63% of U.S. manufacturing One study suggests that at

least 30 million truck shipments over 550 miles touch our service territory

U.S. Demographics

Truck Volume in 2007

Projected Truck Volume in 2040

Chicago

Cincinnati

Columbus

Pritchard Roanoke

Norfolk

Detroit

Philadelphia

Ayer

Atlanta

Charlotte

Lynchburg

Corinth

Shreveport

Meridian

New Orleans

Memphis

NY/NJ

Bethlehem

Titusville

Jacksonville

Corridor Volume Increases

2010 vs. 2009

Premier Route 18%

PanAm Southern 32%

Crescent Corridor 31%

Meridian Speedway

36%

Titusville 146%

NS Corridor Strategy

Greencastle

Mechanicville

Birmingham

Outlook – Business PortfolioCoal

• Falling stockpiles and increased electricity generationUtility Coal

• Improving exportsExport Coal

• Recovery in global steel productionDomestic Met Coal

Northern Appalachia2009-41.3 M2010-45.3 M

Central Appalachia2009-62.3 M2010-64.8 M

Illinois2009-10.8 M2010-11.1 M

Powder River Basin2009-30.1 M2010-32.8 M

2009-2010 NS Origin Coal Volume

(Tons)

Notes: Excludes coke and iron ore volume.

Lamberts Point Coal Docks

Outlook – Business Portfolio

• Manufacturing recoveryChemicals

• Build out of ethanol network and export grain growthAgriculture

• Truckload 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

Financial Objectives

• Margin Expansion

• Operating Ratio Reductions

• Cash Flow Improvement

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Margin Expansion and Operating Ratio Improvement

• Operating Leverage

• Productivity

• Pricing

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Margin Expansion and Operating Ratio Improvement

• Continued global demand for coal

• Price to the market

• Intermodal growth

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Balanced Cash Flow Utilization2006-2010

$6.8 Billion$6.3 Billion

Share Repurchases Capital ExpendituresDividends

$2.1 Billion

$4.2 Billion

Total Shareholder DistributionsRelative to Free Cash Flow*2006-2010

*See reconciliation to GAAP posted on our website

Dividends Share Repurchases Free Cash Flow

$6.3 Billion

$5.0 Billion

•All of NS’ Free Cash Flow Returned to

Shareholders

$2.1 Billion

$4.2 Billion

One line, infinite possibilities

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