Wells Fargo Securities Industrial ConferenceJune 15, 2010

James A. SquiresExecutive Vice President Finance and CFONorfolk Southern Corporation

The Thoroughbred of Transportation

First Quarter Highlights2010 vs. 20092010 vs. 2009

       Favorable       (Unfavorable)

     % Chg.

Income From Railway Operations $555 Mill.           45%

Net Income $257 Mill. 45%

Diluted Earnings Per Share $0.68 45%

Operating Ratio                                 75.2%              6%

Productivity ScorecardFirst Quarter 2010 vs 2009First Quarter 2010 vs. 2009

• Carload Volume 9%

• Crew Starts -1%

• Railroad Employees -7%p y

• GTMs per Employee 17%

GTMs per Gallon 4%• GTMs per Gallon 4%

• GTMs per Train Hour 2%

2010 Year-Over-Year Volumes

19%

25% 26%

19%

2%5%

January February March April May

Source: AAR

NS VolumeQuarter-to-Date Volume 2010 vs 2009Quarter to Date Volume 2010 vs. 2009

April 2010 May 2010 Q-T-D 2010vs. 2009 vs. 2009vs. 2009

Units Abs. % Chg. Units Abs. % Chg. Units Abs. % Chg.

Agriculture 48,433 8,485 21% 47,949 6,002 14% 96,382 14,487 18%

MetCon 55,372 18,640 51% 54,048 17,451 48% 109,420 36,091 49%

Paper 26,429 4,525 21% 26,318 4,144 19% 52,747 8,669 20%

Chemicals 31,910 8,833 38% 32,988 9,198 39% 64,898 18,031 38%Chemicals 31,910 8,833 38% 32,988 9,198 39% 64,898 18,031 38%

Automotive 21,748 1,347 7% 22,512 5,363 31% 44,260 6,710 18%

Merchandise 183,892 41,830 29% 183,815 42,158 30% 367,707 83,988 30%

Intermodal 225,136 38,831 21% 230,868 45,477 25% 456,004 84,308 23%

Coal 128,290 25,950 25% 119,268 20,937 21% 247,558 46,887 23%

Total 537,318 106,611 25% 533,951 108,572 26% 1,071,269 215,183 25%

Productivity ScorecardSecond Quarter Through May 2010 vs. 2009

Crew Starts

Carload Volume +25%

+10%

Railroad Employees

Crew Starts

-1%

GTMs per Gallon

GTMs per Employee +29%

+8%

GTMs per Train Hour

GTMs per Gallon

+5%

8%

Business Outlook

ChemicalsAgriculture

Domestic IntermodalInternational Intermodal

Manufacturing recovery & project growthBuild out of ethanol networkTruckload conversions i i /International  Intermodal

Export CoalDomestic Met Coal

SteelUtility Coal

Improving imports/exports

Recovery in  global steel production

Utility CoalAutomotive

Falling stockpiles and increased electricity generation

Forest Products Uncertainty in housing ,  but improving paper markets

Strengthening the Franchise

S f t P f• Safety Performance• Service Consistency and Reliability• Operating Efficiency• Corridor StrategyCorridor Strategy• Innovative Technology

C h Fl• Cash Flow

Strengthening the Franchise

C id St t• Corridor Strategy• Innovative Technology• Cash Flow

Patriot Corridor

HeartlandCorridor

Mid AmericaCorridor

Crescent Corridor

Meridian Speedway

Crescent Corridor

Central Florida

Strengthening the Franchise

C id St t• Corridor Strategy• Innovative Technology• Cash Flow

Train Monitoring Systems

OPD UTCSOPDOperating

Plan Developer

UTCSUnified Train

Control Systemp

LEADERLocomotive EngineerLocomotive Engineer

Assist Display and Event Recorder®

Operating Plan Developer

Traffic

Pl

Metrics

ReportsPlan

History

ABCGIS

MapsScenario

Mgmt

ABC

Editors Interfaces

Operating Plan TrendsSeptember 2008 – March 2010September 2008 – March 2010

73003.5

6700

7000

2.5

3.0

's M

iles/Day

6100

6400

1.5

2.0

y Train Starts

lings/Car  ‐

100

5500

5800

0.5

1.0

Weekly

ays/Ca

r  ‐Han

d

52000.0

Da

Days/Car Handlings/Car 100's Miles/Day Train Starts

UTCS – Two Components

Base Dispatching System

RailEdge® Movement Planner

UTCS – RailEdge® Movement Planner

RailEdge® Movement PlannerAn optimized Network Solution An optimized Network SolutionOperational Objectives Constraints

Early

Late

Movement Plan Real-time Status

UTCS – Features

LEADER

NS

NS

Work Together

Conserve Energy

Eliminate unnecessary braking

and throttle use

AchieveGolden

Runand throttle use Run

LEADER Display Screen

Strengthening the Franchise

C id St t• Corridor Strategy• Innovative Technology• Cash Flow

Free Cash Flow Generation*($ Millions)($ Millions)

$1,080 $1,028 $992$1,157

$561

2005 2006 2007 2008 2009

* Free Cash Flow as used here is defined as cash provided by operating activities minus property additions. Please see reconciliation to GAAP posted on our web site.

Annual Dividend Per Share

$0 96

$1.22$1.36 $1.36

$0.68

$0.96

$0.24 $0.26 $0.30$0.36

$0.48

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Indicated

Dividend Yields*

2 0%2.4%

1.7% 1.8% 1.8% 1.8% 2.0%

CN UP CP CSX S&P 500 NS

* As of June 11, 2010

Share Repurchases*($ Millions)($ Millions)

$1,196 $1,128$964

$ ,

$0$87

2006 2007 2008 2009 2010** As of June 11, 2010

Debt MaturitiesDecember 31, 2009($ illi )($ millions)

$717

$550

$600$580

$407

$345

$494 $500

$367

$440

$350

$500

$350$$314 $300

$32 $44$14

$84

$138

'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '25 '27 '29 '31 '37 '43 '97 2105

Engine of the Future