First Quarter 2011 Results. Norfolk Southern Corporation

First Quarter 2011 Results Norfolk Southern Corporation

First Quarter 2011 Results Donald W. Seale Executive Vice President and Chief Marketing Officer

Railway Operating Revenue First Quarter 2011 vs. 2010 1Q 2011 Revenue in $ Millions & y-o-y Percent Change Coal $816 +30% Intermodal $485 +18% Merchandise $1,319 +10% $2.6 Billion in Railway Operating Revenue Increase of $382 Million, or 17% Revenue Per Unit up 8% Volume up 8% Components of Revenue Growth In $ Millions 1Q 2010 1Q 2011 Revenue in $ Millions $2,238 $181 $201 $2,620 $2,238 $2,430 $2,456 $2,392 $2,620 1Q 2010 Volume Rev/Unit 1Q 2011 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011

Revenue Per Unit First Quarter 2011 vs. 2010 1Q 2011 RPU Abs. Vs. 1Q 2010 % Chg. Agriculture $2,257 $203 10% Chemicals $3,532 $283 9% Metals & Construction $1,810 $130 8% Paper $2,303 $153 7% Automotive $2,258 ($8) (0%) Merchandise $2,364 $151 7% Intermodal $649 $44 7% Coal $2,009 $283 16% Total $1,531 $117 8%

Railway Volume First Quarter 2011 vs. 2010 1Q 2011 Volume (000) & y-o-y Percent Change Total Volume of 1,711,200 Units Increase of 128,300 units, or 8% Merchandise 558.2 +3% 52-week high loadings for Paper, Automotive and total volume Coal 406.1 +11% Intermodal 746.9 +10% 1Q 2010 1Q 2011 Volume in (000) 1,752.6 1,719.8 1,708.8 1,711.2 1,582.9 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011

Coal Comparisons First Quarter 2011 vs. 2010 1Q 2011 Volume (000) & y-o-y Percent Change Total Coal revenue of $816 million, up $187 million, or 30% Second highest revenue quarter Industrial 17.7 +1% Metallurgical 40.8 (8%) Export 70.9 +25% Utility 276.7 +13% Total Coal volume of 406,100, up 41,800 or 11% Strong utility and export growth Metallurgical volume down due to product being drawn to export market Network investment to improve service Addition of AC locomotives to fleet Production of 1,500 new coal cars 30% Year-over-Year Change 11% 16% Revenue Volume Rev/Car

Export Coal Market Total export volume of 70,900 carloads, up 14,000 or 25% Highest volume since Conrail acquisition Lamberts Point up 16% Baltimore up 49% Tightened global supply 10% increase in global steel production April 1 contract pricing increase Export Carloads 1Q 2008-1Q 2011 55,121 59,078 59,663 45,873 40,995 45,107 59,933 56,863 61,557 50,156 49,234 70,851 22,238 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011

Utility Coal Market Total utility volume of 276,700 carloads, up 31,500 or 13% Utility North - up 2% Utility South - up 26% Stockpile replenishment Inventories remain under target New business Utility Carloads 1Q 2008-1Q 2011 315,508 317,619 314,890 324,644 294,169 267,045 275,517 275,243 276,685 254,070 237,117 245,240 257,349 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011

Intermodal Comparisons First Quarter 2011 vs. 2010 1Q 2011 Volume (000) & y-o-y Percent Change Total Intermodal revenue of $485 million, up $75 million or 18% Triple Crown 74.6 +2% Premium 64.5 +19% Domestic 346.9 +18% International 260.9 +2% Total Intermodal volume of 746,900, up 70,300, or 10% Domestic volume up 18%, led by tightening truck capacity & recovering economy Premium volume up 19%, driven by gains in parcel and LTL markets and new business International volume up 2%, driven by improving global demand 18% Year-over-Year Change 10% 7% Revenue Volume Rev/Unit

Intermodal Terminal Expansion Update GroundBreaking Date Completion Date Annual Volume Capability (Lifts) Mechanicville, NY July 2010 Spring 2012 70,000 Memphis, TN January 2011 Fall 2012 200,000 Greencastle, PA June 2011 Fall 2012 85,000 Birmingham, AL June 2011 Fall 2012 100,000 Charlotte, NC Summer 2011 Summer 2013 200,000

Merchandise Comparisons First Quarter 2011 vs. 2010 1Q 2011 Volume (000) & y-o-y Percent Change Total Merchandise revenue of $1.3 billion, up $120 million, or 10% Record Agriculture revenue Automotive 78.6 +12% Agriculture 155.6 (2%) MetCon 148.4 +7% Chemicals 95.7 (1%) Paper 79.9 +2% Total Merchandise volume of 558,200 carloads up 16,200, or 3% 3 of 5 business segments up year-over-year Strong comparisons in Agriculture and Chemicals from 1Q 2010 10% Merchandise Year-over-Year Change 3% 7% Revenue Volume Rev/Unit

Merchandise Comparisons First Quarter 2011 vs. 2010 1Q 2011 Volume (000) & y-o-y Percent Change Automotive 78.6 +12% Agriculture 155.6 (2%) MetCon 148.4 +7% Chemicals 95.7 (1%) Paper 79.9 +2% Automotive increase driven by new business, increased vehicle production & quality hold releases MetCon volume growth driven by new frac sand & metals business & 8% increase in domestic steel production Paper volume growth led by higher pulpboard demand Chemicals volume driven by new business & projects Record Agriculture revenue despite 2% volume decline 10% Merchandise Year-over-Year Change 3% 7% Revenue Volume Rev/Unit

Outlook Business Portfolio Automotive Metals & Construction Agriculture Chemicals Utility Coal Export Coal Domestic Metallurgical Coal International Intermodal Domestic & Premium Intermodal New business, improved auto production and sales Increased domestic steel production, increased highway spending & new business Continued build-out of Agribusiness network Improving manufacturing economy Falling stockpiles & increased electricity generation Rising European and Asian demand Increased domestic steel production Increasing imports/exports Highway conversions Paper & Forest Products Continued uncertainty in housing & paper markets

First Quarter 2011 Results Mark Manion Executive Vice President And Chief Operating Officer

Quarterly Safety Performance By Quarters 2010-2011 (Injury Ratio per 200,000 Employee-Hours) 2010 2011-30% 1.10 0.77 0.89 0.85 0.68 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Composite Service Performance By Quarters 2010-2011 2010 2011-5% 75.84% 72.04% 76.57% 77.95% 76.39% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Train Speed By Month 2010-2011 23 2010 2011 Miles per Hour 22 21 20 Jan Feb Mar Apr* May Jun Jul Aug Sep Oct Nov Dec * April 2011 data through April 22

Terminal Dwell By Month 2010-2011 28 2010 2011 27 Average Hours 26 25 24 23 22 Jan Feb Mar Apr* May Jun Jul Aug Sep Oct Nov Dec * April 2011 data through April 22

T&E Employment Count Total Qualified T&E Employees plus Trainees 13,000 12,500 12,000 11,500 11,000 10,500 10,000 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 Mar-11 Feb-11 Jan-11 Dec-10 Nov-10 Oct-10 Sep-10 Aug-10 Jul-10 Jun-10 May-10 Apr-10 Mar-10 Feb-10 Jan-10 Qualified Employees Trainees

Productivity Scorecard 1 st Quarter - 2011 vs. 2010 Carload Volume +8% Crew Starts +5% Railroad Employees +7% GTMs per Employee +2% GTMs per Gallon -2% GTMs per Train Hour +3%

First Quarter 2011 Results James A. Squires Executive Vice President Finance and Chief Financial Officer

Operating Results First Quarter 2011 vs. 2010 ($ Millions) First Qtr First Qtr Favorable (Unfavorable) 2011 2010 $ % Railway operating revenues $ 2,620 $ 2,238 $ 382 17%

Operating Results First Quarter 2011 vs. 2010 ($ Millions) First Qtr First Qtr Favorable (Unfavorable) 2011 2010 $ % Railway operating revenues $ 2,620 $ 2,238 $ 382 17% Railway operating expenses 2,020 1,683 (337) (20%) Income from railway operations $ 600 $ 555 $ 45 8% Railway operating ratio (OR) 77.1 75.2 (1.9) (3%) *OR excl. arbitration 74.9 75.2 0.3 --% *OR excl. arbitration and fuel lag 73.8 75.0 1.2 2% *Please see reconciliation to GAAP posted on our web site.

Railway Operating Expense Analysis First Quarter 2011 vs. 2010 ($ Millions) + $135 + $81 + $66 + $48 + $7 Fuel Materials and other Compensation and benefits Purchased services and rents Depreciation Total Increase $337 Million / 20%

Fuel Expense Analysis First Quarter 2011 vs. 2010 ($ Millions) + $104 + $31 $389 $254 First Qtr 2010 Higher Prices Increased Consumption First Qtr 2011

Locomotive Diesel Fuel Average Prices 2009-2011 $3.00 $2.00 $1.39 $1.55 $1.85 $1.98 $2.13 $2.24 $2.19 $2.46 $2.88 $1.00 $0.00 6

Diesel Fuel Price Analysis First Quarter 2011 vs. 2010 ($ per gallon) $2.88 $0.64 $2.13 $0.26 WTI $2.24 WTI $1.87 Other WTI First Qtr 2011 First Qtr 2010

Compensation and Benefits Analysis First Quarter 2011 vs. 2010 ($ Millions) (Increase) Volume-related payroll $ (20) Payroll taxes (12) Medical benefits (11) Incentive and stock-based compensation (5) Pensions (4) Wage rates (3) Other (11) Total increase $ (66)

Other Income - Net First Quarter 2011 vs. 2010 ($ Millions) First Qtr First Qtr Favorable 2011 2010 $ % Coal royalties $ 19 $ 15 $ 4 27% Interest on uncertain tax positions 2 (1) 3 --% All other 6 6 -- --% Other income - net $ 27 $ 20 $ 7 35% Interest expense on debt $ 112 $ 119 $ 7 6%

Income Before Income Taxes First Quarter ($ Millions) Change vs. Prior Period: + 13% $456 $515 2010 2011

Income Taxes First Quarter ($ Millions) Change vs. Prior Period: -5% $199 $190 2010 2011

Net Income and Diluted Earnings per Share First Quarter ($ Millions except per share) Net Income Diluted Earnings per Share Change vs. Prior Period: + 26% Change vs. Prior Period: + 32% $325 $257 $0.68 $0.90 2010 2011 2010 2011

Cash Flows First Quarter 2011 vs. 2010 ($ Millions) 2011 2010 Increase (Decrease) Cash from operating activities $ 652 $ 758 $ (106) Capital expenditures (423) (256) 167 *Free cash flow $ 229 $ 502 $ (273) Share repurchases $ 343 $ -- $ 343 Dividends $ 142 $ 126 $ 16 Cash and cash equivalents at March 31 $ 236 $ 1,161 $ (925) *Please see reconciliation to GAAP posted on our web site.