norfolk southern investor and financial analyst conference€¦ · norfolk southern investor and...
TRANSCRIPT
Norfolk Southern Investor and Financial Analyst Conference September 23, 2014
Marta R. Stewart Executive Vice President Finance
and Chief Financial Officer
2006 2007 2008 2009 2010 2011 2012 2013
$2.21 $2.33
$2.72
$1.86
$2.71
$3.23 $3.07 $3.08
Cash From Operations ($ billions)
21
Capital Deployment
Cash from Operations
Reinvest in Existing Asset
Base
Invest for Growth
Pay Dividend Repurchase
Shares
2006 2007 2008 2009 2010 2011 2012 2013
Reinvested and PTC Growth Dividends Shares
Uses of Cash Flow ($ millions)
21
Balanced Cash Flow Utilization 2006 through 2013
Capital Expenditures Share Repurchases Dividends
$13.2 Billion $12.1 Billion*
$8.1 Billion
$4.0 Billion
* See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
Dividend and Share Repurchases 2006 through 2013
Dividends
ShareRepurchases $8.1 Billion
$4.0 Billion
* See reconciliation of Total Shareholder Distributions to GAAP posted on our website, www.nscorp.com.
17% CAGR
137M shares avg. $59.37/share
Bellevue: Generating Value
Tom Werner Vice President & Treasurer
Returning Shareholder Value
Shareholder
Value
Customer
Needs
Service
Infrastructure
Efficiency
2014 Capital Improvement Budget Core vs. Growth vs. PTC
66%
24%
10%
Core/Replacement Investments
Rail, Tie, Ballast programs
Locomotive rebuild program
Coal car replacements
Growth/Productivity Investments
New locomotives
Yard expansions
Technology
Infrastructure improvements
Positive Train Control
Maintain the franchise, invest in business growth.
Capital Plan Outlook
• Maintenance of Way • Continued Freight Car Investments • Renewal of Locomotive Fleet
Locomotive Rebuild Programs
Return on Investment
ROI
Define Benefits
Define
Costs
Model and Analyze
Audit
Overall: $500+ million investment
Chicago Elkhart Butler Cleveland
Bellevue
18 line of road projects between Chicago and Cleveland
Toledo
Ft. Wayne
Overall: $500+ million investment
Chicago Elkhart Butler Cleveland
Bellevue
18 line of road projects between Chicago and Cleveland
Toledo
Ft. Wayne
Overall: $500+ million investment
Chicago Elkhart Butler Cleveland
Bellevue
18 line of road projects between Chicago and Cleveland
Toledo
Ft. Wayne
NS Project Evaluation Process
Forecast Business Develop
Operating Plan Improve
Infrastructure Analyze Return
• Design & Construction Adjust for New State
NS Project Evaluation Process
Forecast Business Develop
Operating Plan Improve
Infrastructure Analyze Return
Adjust for New State
Manage Risk