norfolk southern investor and financial analyst...
TRANSCRIPT
Norfolk Southern Investor and Financial Analyst Conference September 23, 2014
James A. Squires President
Norfolk Southern - Our Culture Our Core
Our World Our People Safety
Fundamentals of Long-Term Profit Growth
Profit Growth
Volume
Price
Productivity
Strategies for Success
Service
Infrastructure
Efficiency
Success
$9.4
$11.2 $1,882
$1,912
$2,600
$2,625
$1,511
317.6
676.6
$661
$662
$1,513
Measures of Success 2013 versus 2006 ($ in billions except EPS and Dividend)
Revenue 3% CAGR
$1.5
$1.9
Net Income 4% CAGR
$0.68
$2.04
$3.57
$6.04
EPS 8% CAGR
Dividend 17% CAGR
7-Day Avg. Carloads 2006
11,000.0
13,000.0
15,000.0
17,000.0
19,000.0
21,000.0
23,000.0
25,000.0
2006
7-Day Avg. Carloads 2006 and 2009
11,000.0
13,000.0
15,000.0
17,000.0
19,000.0
21,000.0
23,000.0
25,000.0
2006 2009
7-Day Avg. Carloads 2006, 2009 and 2014
11
13
15
17
19
21
23
25
Tho
usa
nd
s
2006 2009 2014
Strategies for Success
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37
Weekly Carloads
Performance Metrics 1Q11 – 3QTD14
20.9
24.6
21.0
19.0
20.0
21.0
22.0
23.0
24.0
25.0
26.0
27.0
Mile
s p
er
Ho
ur
Train Speed Terminal Dwell
Hiring, and
Relocating Current T&E Employees
Service Execution
Adding Locomotives and
Infrastructure in 4Q
Designing for Service
Where
How
What
Network Design
Infrastructure Planning
Efficiency
Right Assets
Right Place
Right Time
Efficiency
Bellevue Yard