| --- | --- | --- | --- | --- | --- | |-----------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cowen Conference | | | | | | | Norfolk Southern Update | | | | | | | | | | | | | | September 7, 2022 | | | | | | | Alan Shaw President & Chief Executive Officer | | | | | | | Ed Elkins | | | | | | | EVP & Chief Marketing Officer | | | | | | | Mark George EVP & Chief Financial Officer | | | | | | Forward-Looking ...

Q2 2022 Earnings Call July 27, 2022 Forward-Looking Statements / Non-GAAP Measures This presentation contains forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future performance of Norfolk Southern Corporation (NYSE: NSC) ("Norfolk Southern," "NS," the "Company," "we," "our," or "us"), including but not limited to statements regarding future financial performance and ant ...

Financial Data and Key Metrics Changes - The company achieved record revenue of $3.3 billion, a 16% increase year-over-year, driven by a 20% increase in revenue per unit despite a 3% decline in volume [31][8] - Earnings per share (EPS) improved by 5% to $3.45, marking a second-quarter record [9][31] - Operating ratio increased by 260 basis points compared to the previous year, primarily due to higher fuel prices and the absence of a significant property sale from the prior year [9][45] Business Line Data and Key Metrics Changes - Merchandise revenue and revenue per unit reached record levels, with notable growth in grain shipments due to rising export demand, despite slight volume declines in steel and construction-related shipments [32] - Intermodal revenue, revenue per unit, and revenue per unit excluding fuel all saw double-digit increases, driven by higher fuel surcharge and storage fees [33] - Coal revenue experienced the strongest growth, with total revenue and revenue per unit increasing over 30% year-over-year, propelled by price gains in export coal markets [35] Market Data and Key Metrics Changes - International intermodal shipments declined year-over-year due to a shift in customer base away from Inland Point Intermodal (IPI) amid ongoing supply chain challenges, although domestic shipments showed modest improvement [34] - The company anticipates strong demand through the end of 2022, with GDP growth forecasted above 1% despite recession risks [36] Company Strategy and Development Direction - The company is focused on restoring service levels and implementing the new TOP|SPG operating plan, which aims to enhance service, productivity, and growth [10][21] - The strategy includes increasing crew productivity, enhancing fuel efficiency, and adjusting operations to align resources with demand [14][18] - The company aims to leverage its robust network and strong customer relationships to capitalize on growth opportunities in eCommerce and logistics [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand remaining strong, with expectations for volume strength in the second half of the year, particularly in the automotive sector [36][39] - The company is aware of macroeconomic uncertainties but sees opportunities for volume growth in various markets [43] - Management emphasized the importance of improving service levels to drive volume recovery and enhance productivity [64][78] Other Important Information - The company generated nearly $1.2 billion in free cash flow through six months, with a focus on capital expenditures trending higher due to inflation [53] - Shareholder distributions increased, with a 19% rise in dividend payments and continued strong share repurchase activity [54] Q&A Session Summary Question: What are the critical factors for improving service and volumes in the second half? - Management highlighted ramping up headcount, a robust pipeline of conductor trainees, and the implementation of the new operating plan as critical factors for service improvement [63][64] Question: Is the improvement in first/last mile compliance sufficient for volume recovery? - Management acknowledged the improvement but emphasized the need to reach higher service levels to sustainably bring back volume [67][68] Question: What is the outlook for operating ratio and volume assumptions? - Management indicated expectations for flat volume for the year, with a gradual ramp-up supported by improving service [78][80] Question: What is the expectation for coal revenue per unit (RPU)? - Management expects a sequential decline in coal RPU, which will impact overall RPU, but strong price opportunities remain in other markets [95][96] Question: How is the company addressing equipment and chassis availability? - Management reported a good supply of chassis and ongoing improvements in equipment availability, with expectations for significant improvements in the fourth quarter [110][111]

Financial Performance - Norfolk Southern Corporation reported a 16% increase in total railway operating revenues, reaching $3,250 million in the second quarter of 2022 compared to $2,799 million in the same period of 2021[73]. - Income from railway operations rose by 9% to $1,271 million in the second quarter of 2022, up from $1,167 million in the second quarter of 2021[69]. - The diluted earnings per share increased by 5% to $3.45 in the second quarter of 2022, compared to $3.28 in the same quarter of 2021[69]. - The railway operating ratio worsened to 60.9% in the second quarter of 2022 from 58.3% in the same quarter of 2021, indicating higher operating expenses relative to revenues[69]. Revenue Breakdown - Coal revenues increased by 34% in the second quarter of 2022, driven by higher average revenue per unit despite a 4% decline in coal tonnage[73][85]. - Intermodal revenues grew by 21% in the second quarter of 2022, reaching $972 million, supported by higher average revenue per unit[73]. - Merchandise revenues increased by 10% in the second quarter of 2022, totaling $1,853 million, primarily due to higher fuel surcharge revenues and pricing gains[73]. - Approximately 95% of Norfolk Southern's revenue base is covered by contracts that include negotiated fuel surcharges, which totaled $421 million in the second quarter of 2022[75]. - The company expects continued revenue growth for the remainder of the year, driven by higher average revenue per unit and volume growth in merchandise and intermodal segments[80][83]. Operating Expenses - Total railway operating expenses increased by 21% to $1,979 million in Q2 2022 compared to $1,632 million in Q2 2021, and by 17% to $3,809 million for the first six months of 2022 compared to $3,256 million in the same period of 2021[87]. - Fuel expenses surged by 117% to $408 million in Q2 2022 and by 94% to $709 million for the first six months of 2022, driven by a 124% increase in locomotive fuel prices[89]. - Materials and other expenses rose by 77% to $172 million in Q2 2022 and by 38% to $343 million for the first six months of 2022, attributed to higher track and freight car materials costs[90]. Cash Flow and Financing - Cash provided by operating activities was $2.0 billion for the first six months of 2022, a slight decrease from $2.1 billion in the same period of 2021[94]. - Cash used in investing activities increased to $714 million for the first six months of 2022 from $529 million in the same period last year, primarily due to higher property additions[95]. - Cash used in financing activities was $877 million for the first six months of 2022, down from $1.0 billion in the same period last year, reflecting increased proceeds from borrowing[96]. - The debt-to-total capitalization ratio increased to 53.4% at June 30, 2022, compared to 50.4% at December 31, 2021[98]. Tax and Shareholder Returns - The effective tax rates for Q2 2022 and the first six months of 2022 were 24.7% and 23.9%, respectively, compared to 21.3% and 21.8% for the same periods in 2021[92]. - The company repurchased $1.5 billion of common stock in the first six months of both 2022 and 2021, with a new program authorized for an additional $10.0 billion beginning April 1, 2022[97]. Operational Management - Norfolk Southern is actively working on service restoration by recruiting and training transportation crews to improve network fluidity[67]. - The company expects cash on hand combined with cash provided by operating activities to be sufficient to meet ongoing obligations, while monitoring the impacts of the COVID-19 pandemic[101]. - As of June 30, 2022, the company's disclosure controls and procedures were effective in alerting management to material information required for periodic filings under the Exchange Act[109]. - No changes in internal control over financial reporting were identified during the second quarter of 2022 that materially affected the company's internal control[110].

Wolfe Research Conference Norfolk Southern Update May 24, 2022 Alan Shaw President & Chief Executive Officer Mark George Executive Vice President & Chief Financial Officer Forward-Looking Statements / Non-GAAP Measures This presentation contains forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future performance of Norfolk Southern Corporation's (NYSE: NSC) ("Norfolk Sou ...

Q1 2022 Earnings Call April 27, 2022 Forward-Looking Statements / Non-GAAP Measures This presentation contains forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future performance of Norfolk Southern Corporation's (NYSE: NSC) ("Norfolk Southern," "NS" or the "Company"), including but not limited to statements regarding future financial performance and anticipated results, ...

Norfolk Southern Corporation (NYSE:NSC) Q1 2022 Earnings Conference Call April 27, 2022 8:45 AM ET Company Participants Meghan Achimasi - Senior Director of Investor Relations Alan Shaw - President Cindy Sanborn - Chief Operating Officer Ed Elkins - Chief Marketing Officer Mark George - Chief Financial Officer Conference Call Participants Chris Wetherbee - Citi Brandon Oglenski - Barclays Jon Chappell - Evercore ISI Scott Group - Wolfe Research Jason Seidl - Cowen Brian Ossenbeck - JPMorgan Jordan Alliger - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Virginia 52-1188014 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 650 West Peachtree Street NW ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to_________ ...

Financial Performance & Shareholder Value - Norfolk Southern achieved a 60.1% operating ratio in 2021[4] - The company delivered a 110% total shareholder return over three years[5] - Norfolk Southern distributed approximately $10 billion to shareholders cumulatively over three years[5] - The company experienced a 27% growth in earnings per share over three years[5] Productivity & Operational Improvements - The company has made significant progress since the launch of the TOP21 operating plan[8] - Train weight has improved by 20% since Q3 2019[9, 10] - Train length has improved by 21% since Q3 2019[9, 10] - The company anticipates a 50-100 bps improvement in operating ratio for 2022[25] 2022 Outlook & Capital Allocation - Norfolk Southern expects upper single-digit year-over-year revenue growth[25] - The company plans capital expenditures of approximately $1.8-1.9 billion[25] - Dividends are projected to be 35-40% of net income[25]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended DECEMBER 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ___________ to___________ Commission File Number 1-8339 NORFOLK SOUTHERN CORPORATION (Exact name of registrant as specified in its charter) Virginia 52-1188014 (State or other j ...