Wells Fargo Securities 2012 Industrial and Construction Conference

May 8, 2012

Deb ButlerExecutive Vice President

Planning and CIO

Agenda

First Quarter Recap

Improvements in Operating Metrics

Looking Ahead

Revenue$2.8 Billion, up 6%

RPU$1,611, up 5%

Volume1,730,800 units, up 1%

1Q 2011 RPU Volume 1Q 2012

$2,620$2,789$139 $30

1Q 2012 Revenue $ in Millions & y-o-y Percent Change

Components of Revenue Growth $ in Millions

First Quarter Results: Operating RevenueFirst Quarter 2012 vs. 2011

Merchandise$1,496+13%

Coal$766(6%)

Intermodal$527+9%

Current Railway VolumeSecond Quarter through Week 18 (May 5, 2012)

670

688

698

2010 2011 2012

Units (000) Quarter-to-date

Change in UnitsQTD12 vs. QTD11

3%

1%

12%

7%

5%

5%

1%

-2%

-11%

Automotive

Intermodal

Agriculture

Chemicals

Paper

Coal

MetCon

First Quarter Results: Operating Expenses First Quarter 2012 vs. 2011 ($ Millions)

Net Increase $24 Million / 1%

- $42

+ $21+ $24

Depreciation

+ $8+ $13

Materials and other

Purchased services and rents

Compensation and benefits

Fuel

First Quarter Results($ Millions except per share)

Net Income Diluted Earnings per Share

$325

$410

$1.23

$0.90

Change vs. Prior Period: + 26% Change vs. Prior Period: + 37%

2011 2012 2011 2012

Agenda

First Quarter Recap

Improvements in Operating Metrics

Looking Ahead

Improving Overall ServiceComposite Service Performance By Quarters 2011 - 2012

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

72.2

%

76.6

%

78.2

%

76.3

%

82.8

%

20112012

Increasing VelocityBy Quarter 2011 - 2012

16

17

18

19

20

21

22

23

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

20.9

21.1

21.4

21.4

23.4

Mile

s pe

r Hou

r

20112012

Better

Train Speed2011 through April 27, 2012

18.0

19.0

20.0

21.0

22.0

23.0

24.0

25.0

NS Train Speed (miles per hour) Better

Source: As reported publicly to the AAR

20

21

22

23

24

25

26

27

28

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

26.2

23.9

23.6

24.5

21.8

Aver

age

Hou

rs

20112012

Keeping Cars MovingTerminal Dwell By Quarter 2011 - 2012

Better

Terminal Dwell2011 through April 27, 2012

17.019.021.023.025.027.029.031.033.0

NS Terminal Dwell (hours) Better

Source: As reported publicly to the AAR

Improving Productivity 1st Quarter - 2012 vs. 2011

Train & Engine Service Overtime Reduced 15%

Re-Crews Reduced 35%

Equipment Rents (Velocity Driven) Reduced 9%

Locomotives In Service Reduced 3%

Fuel Consumption Reduced 2%

Gross Ton Miles per Gallon Improved 1%

Gross Ton Miles per Train Hour Improved 4%

UTCS – Movement PlannerUnified Train Control System

Improved locomotive utilization

Improved schedule adherence

Increased capacity

Disaster recovery capability

Improved Network Velocity; 2-4 MPH

Estimate completion by end of 2013

Remote Intelligent Terminal (RIT)

Real Time Inventory Reporting

Improved Workforce Productivity

Improved Asset Utilization

Estimate completion by end of 2012

LEADER

• Next Phases • In Service

Agenda

First Quarter Recap

Improvements in Operating Metrics

Looking Ahead

CoalImpact of mild temperatures and competition from natural gasContinued strength within the domestic metallurgical market due to robust domestic demand for steel Weaker demand in European market, partially offset by new steam coal opportunities Improving world met coal prices and tighter supply

IntermodalIncreasing opportunities for highway conversion amidst tightening truck capacity Favorable international trade patternsGrowth in premium

MerchandiseProject growth in crude oil and waste products

Growth in ethanol to terminals

Increasing demand for materials in natural gas drilling operations

Stronger steel/automotive production and new business gains

Business Outlook

Future Track Drivers

Safety

Service Improvement

Revenue Growth

Fuel Efficiency

Workforce Productivity

Asset Utilization

Thank you