Norfolk Southern : Second-Quarter 2024 Presentation

Published: 2024-07-25 16:32:31 ET NSC

Q2 2024

EARNINGS CALL

July 25, 2024

01 OPENING REMARKS

Alan Shaw

President

& Chief Executive Officer

02 OPERATIONS OVERVIEW

John Orr

Executive Vice President

& Chief Operating Officer

SAFETY UPDATE

FRA Personal Injury Index

1.28

1.20

1.10

1.04

Better

2021

2022

2023

2024

YTD

FRA Personal Injury Index calculates the number of reportable injuries/illnesses per year per 200,000 hours worked.

FRA Accident Rate

4.50

4.05

3.73

3.66

Better

2021 2022 2023 2024 YTD

FRA Train Accident Rate calculates the total number of reportable accidents per million train miles.

FRA Mainline Accident Rate

0.92

0.83

0.58

Better

0.31

2021

2022

2023

2024

YTD

FRA Mainline Accident Rate calculates the total number of reportable events occurring on that portion of the track that connects stations (other than auxiliary track) on which trains operate (a "Mainline") per one million Mainline miles.

The amounts above are reported through June 30, 2024, and remain subject to future adjustment due to updated medical reports (with respect to the FRA Personal Injury Index) or cost information (with

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respect to the FRA Accident Rate and the FRA Mainline Accident Rate) or other FRA review. The amounts provided for 2024 are preliminary and include data not yet reported to the FRA.

NETWORK UPDATE

Car Miles per Day

Terminal Dwell (hours)

28.1

108

101

102

Better

24.6

23.9

23.2

2023

2024

2023

2024

Train Speed (mph)

GTMs / Avail HP

21.3 21.6

20.5 20.5

18.7

18.1

18.8

19.0

Better

15.5

2023

2024

2023

2024

Better

23.0

2024

105

Better

2024

Intermodal Svc Composite

91%

86%

84%

Better

82%

78%

2023

2024

Merch. Trip Plan Compliance

78%

80%

76%

73%

Better

62%

2023

2024

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UPDATE: CLOSING THE MARGIN GAP

DRIVING URGENT, SUSTAINABLE COST CONTROL

Q1 NOW

Annualized Productivity

~$550M

~$400M

~$250M

Track

First 6

12-24

24-36

Months

Months Out Months Out

NEXT 12-24 MONTHS

(1) The operating ratio improvements discussed and presented on this page represent adjusted operating ratio. See reconciliation to GAAP operating ratio on our

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website on the Investors page under Events and Presentations for this event.

VELOCITY DRIVING MERCHANDISE GAINS

1.15

Automotive Car

Miles per Day +16%

1.10

Automotive

Shipments +7%

1.05

1.00

0.95

0.90

0.85

2023

2024

Capturing growth and providing enhanced service on a more efficient train plan

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INTERMODAL FLYWHEEL DRIVING PRODUCTIVITY AND GROWTH

1.15

Intermodal

1.10

Shipments +8%

Intermodal

1.05

Service

Composite +8%

1.00

Intermodal Crew

Starts

0.95

0.90

0.85

0.80

2023

2024

Capturing growth and providing enhanced service on a more efficient train plan

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03 MARKET OVERVIEW

Ed Elkins

Executive Vice President

& Chief Marketing Officer

Disclaimer

NS - Norfolk Southern Corporation published this content on 25 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2024 20:31:31 UTC.