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A Record Year

Norfolk Southern achieved a record year for revenue and income, had its lowest-ever operating ratio, and worked through service challenges resulting from severe winter weather and an unexpected surge in rail traffic volumes.

The company’s record-setting year came as declines in the coal business were offset by volume and revenue growth across an increasingly diverse range of business markets. The year’s operating results point to Norfolk Southern’s ability to adapt to changing market conditions and to develop and grow new business opportunities. The railroad continued to make strategic investments in network improvements and resources to expand freight capacity, enhance operating efficiencies, and better serve customers.

For a detailed accounting of Norfolk Southern’s 2014 financial performance, see the company’s annual report and 10K “Behind Every Train…” on the corporate website.

$11.6B RAILWAY OPERATING REVENUES: A Record and the 4th Consecutive Year Above $11B$3.6B INCOME FROM RAILWAY OPERATIONS: A Record, Up 10% from 2013$2BNET INCOME: A Record, 1st Time Achieving $2B69.2% OPERATING RATIO: A Record, First-Ever Below 70%, Representing the Percentage of Each Dollar Spent on Operating Expenses$6.44 (Basic) & $6.39 (Diluted) EARNINGS PER SHARE: A Record 5% INCREASE IN TRAFFIC VOLUME: 7.6M CARLOADS AND INTERMODAL UNITS • Intermodal: 3.8M Units, Up 8% • General Merchandise: 2.5M Carloads, Up 5% • Coal: 1.3M Carloads, Down 5%3%INCREASE IN RAILWAY OPERATING REVENUES • Intermodal: $2.56B, Up 7% • General Merchandise: $6.68B, Up 6% • Coal: $2.38B, Down 6%$2.1B ON CAPITAL PROJECTS AND ASSETS42.1%DEBT-TO-TOTAL CAPITALIZATION RATIO$2.22 DIVIDENDS PER SHARE$734M FREE CASH FLOW$318MIN SHARE REPURCHASES BY THENUMBERS 2014RAILWAY OPERATING REVENUES BY MARKET GROUPTotal: $11.6B 22% Intermodal 21% Coal 16% Chemicals 13% Metals, Construction 13% Agriculture, Consumer Products, Gov-ernment 8% Automotive 7% Paper, Clay, Forest Products

Paying Dividends

In keeping with Norfolk Southern’s priority to return long-term value to shareholders, the company increased stock dividend payouts by 10 percent in 2014. The dividend was raised in January and again in July, rising to 57 cents per share from 52 cents. The company closed 2014 with a record 130 consecutive quarters of paying dividends on our common stock.

Engaging with Investors and Analysts

About 50 investors and financial analysts attended Norfolk Southern’s 2014 Investor and Financial Analyst Conference in Cleveland and Bellevue, Ohio. The “Connections for Growth” conference highlighted the Bellevue Yard expansion and the primary drivers of our business strategy: great service, the right infrastructure, and a relentless focus on efficiency and productivity.

Senior executives and department vice presidents presented to some of our largest institutional and mutual fund investors, analysts, and shareholders, including The Vanguard Group, Capital World Investors, Bank of America, Merrill Lynch, Barclays, BB&T, Goldman Sachs, and Morgan Stanley.

Visit Norfolk Southern’s corporate website to view presentations and transcripts.