norfolk southern investor and financial analyst conference€¦ · norfolk southern investor and...
TRANSCRIPT
![Page 1: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/1.jpg)
Norfolk Southern Investor and Financial Analyst Conference September 23, 2014
Marta R. Stewart Executive Vice President Finance
and Chief Financial Officer
![Page 2: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/2.jpg)
2006 2007 2008 2009 2010 2011 2012 2013
$2.21 $2.33
$2.72
$1.86
$2.71
$3.23 $3.07 $3.08
Cash From Operations ($ billions)
21
![Page 3: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/3.jpg)
Capital Deployment
Cash from Operations
Reinvest in Existing Asset
Base
Invest for Growth
Pay Dividend Repurchase
Shares
![Page 4: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/4.jpg)
2006 2007 2008 2009 2010 2011 2012 2013
Reinvested and PTC Growth Dividends Shares
Uses of Cash Flow ($ millions)
21
![Page 5: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/5.jpg)
Balanced Cash Flow Utilization 2006 through 2013
Capital Expenditures Share Repurchases Dividends
$13.2 Billion $12.1 Billion*
$8.1 Billion
$4.0 Billion
* See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
![Page 6: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/6.jpg)
Dividend and Share Repurchases 2006 through 2013
Dividends
ShareRepurchases $8.1 Billion
$4.0 Billion
* See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
17% CAGR
137M shares avg. $59.37/share
![Page 7: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/7.jpg)
Bellevue: Generating Value
Tom Werner Vice President & Treasurer
![Page 8: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/8.jpg)
Returning Shareholder Value
Shareholder
Value
Customer
Needs
Service
Infrastructure
Efficiency
![Page 9: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/9.jpg)
2014 Capital Improvement Budget Core vs. Growth vs. PTC
66%
24%
10%
Core/Replacement Investments
Rail, Tie, Ballast programs
Locomotive rebuild program
Coal car replacements
Growth/Productivity Investments
New locomotives
Yard expansions
Technology
Infrastructure improvements
Positive Train Control
Maintain the franchise, invest in business growth.
![Page 10: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/10.jpg)
Capital Plan Outlook
• Maintenance of Way • Continued Freight Car Investments • Renewal of Locomotive Fleet
![Page 11: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/11.jpg)
Locomotive Rebuild Programs
![Page 12: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/12.jpg)
Return on Investment
ROI
Define Benefits
Define
Costs
Model and Analyze
Audit
![Page 13: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/13.jpg)
Overall: $500+ million investment
Chicago Elkhart Butler Cleveland
Bellevue
18 line of road projects between Chicago and Cleveland
Toledo
Ft. Wayne
![Page 14: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/14.jpg)
Overall: $500+ million investment
Chicago Elkhart Butler Cleveland
Bellevue
18 line of road projects between Chicago and Cleveland
Toledo
Ft. Wayne
![Page 15: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/15.jpg)
Overall: $500+ million investment
Chicago Elkhart Butler Cleveland
Bellevue
18 line of road projects between Chicago and Cleveland
Toledo
Ft. Wayne
![Page 16: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/16.jpg)
NS Project Evaluation Process
Forecast Business Develop
Operating Plan Improve
Infrastructure Analyze Return
• Design & Construction Adjust for New State
![Page 17: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/17.jpg)
NS Project Evaluation Process
Forecast Business Develop
Operating Plan Improve
Infrastructure Analyze Return
Adjust for New State
Manage Risk
![Page 18: Norfolk Southern Investor and Financial Analyst Conference€¦ · Norfolk Southern Investor and Financial Analyst Conference September 23, 2014 Marta R. Stewart Executive Vice President](https://reader034.vdocuments.us/reader034/viewer/2022051322/602d204947446a3ca4380fb4/html5/thumbnails/18.jpg)