Business Communication and Fast Food: Its All About the Basics

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Business Communication and Fast FoodIts All
About the Basics

• Leanne D. Marilley
• Director Investor Relations
• Norfolk Southern Corporation
• Norfolk, Virginia

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Business Communication Essentials
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Business Communication A Closer Look

• About Me
• An Overview of Norfolk Southern
• Corporate Communication
• Investor Relations
• Accuracy and Consistency
• Professional Development
• Questions

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Who Am I?

• Education
• University of Virginia B.A. in English
• Northwestern University M.S.J.
• The College of William Mary M.B.A.
• Experience
• The Virginian-Pilot
• Non-profit organization
• Norfolk Southern Corporation
• Affiliations
• Cultural Alliance of Hampton Roads
• National Investor Relations Institute
• Public Relations Society of America
• Business Committee for the Arts
• Leadership Council at NS

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Whats Norfolk Southern?

• Norfolk Southern Corporation (NYSE NSC) is one
  of the nation's premier transportation companies.
  Its Norfolk Southern Railway subsidiary operates
  21,500 route miles in 22 states, the District of
  Columbia and Ontario, serving every major
  container port in the eastern United States and
  providing superior connections to western rail
  carriers. NS operates the most extensive
  intermodal network in the East and is the
  nation's largest rail carrier of automotive parts
  and finished vehicles.

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Norfolk Southern Vision
be the safest, most customer-focused and
successful transportation company in the world
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Just The Facts!

• Fortune 500 Company
• Headquarters in Norfolk, Va.
• Service territory extends over 21,500 miles
• Serves 22 states, Canada and Washington, D.C.
• International presence
• 28,000 employees
• More than 100,000 freight cars
• 3,400 locomotives
• Some 52,000 shareholders
• Publicly traded on the New York Stock Exchange
• Roots wind back some 150 years

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Financial Snapshot2004

• Market capital 14.8 billion
• Stock price 37.07 (as of 3/16/05)
• 400 million shares outstanding
• Beta 0.83
• 20 billion in assets
• 7.3 billion in revenues
• Net income 870 million
• Earnings per share 2.18
• Debt-to-capitalization 48.5
• Annual dividend 0.44

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Norfolk Southern Corporation
Norfolk Southern Railway Company
Triple Crown Services
Pocahontas Land Corporation
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The Corporate Communication Umbrella

• Internal Communications
• Employees
• Labor Relations
• Management
• External Communications
• Media Relations
• Investor Relations
• Public Affairs
• Public Relations
• Customer Relations
• Advertising

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Getting It Right All The Time

• Memos internal or external
• Emails
• Press Releases
• Speeches
• Publications
• Letters
• Advertising
• SEC Filings
• Brochures
• Newsletters

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The Corporate Communication Umbrella

• Internal Communications
• Employees
• Labor Relations
• Management
• External Communications
• Media Relations
• Investor Relations
• Public Affairs
• Public Relations
• Customer Relations
• Advertising

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What does a Director of Investor Relations Do
Anyway?

• Develops and directs a strategic communication
  program that effectively conveys financial
  information about the corporation and its goals
  and influences the investment community's
  perceptions. Provides corporate officers with
  useful feedback from the investment community
  that can help structure financial strategies so
  as to maximize standing in the investment
  community as an attractive, prudent investment
  with short- and long-term growth potential.
  Prepares materials and presentations to assist
  corporate officers to convey the corporation's
  activities, financial results and corporate
  strategy.

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Financial Community

• Sell-side Analysts
• Buy-side Analysts
• Portfolio Managers
• Institutional Stockholders
• Individual Stockholders
• Rating Agencies
• Bond Holders
• Employees

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Investor Information

• Quarterly Financial Review

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Investor Information

• Quarterly Financial Review
• Annual Report for Stockholders

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Investor Information

• Quarterly Financial Review
• Annual Report for Stockholders
• Form 10-K

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2003 Form 10-K

• 10-K 1 nscf10ks.htm
• UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C.   20549
•  
• FORM 10-K     (X) ANNUAL REPORT PURSUANT TO
  SECTION 13 OR 15(d) OF THE SECURITIES   EXCHANGE
  ACT OF 1934      For the fiscal year ended
  DECEMBER 31, 2003     ( ) TRANSITION REPORT
  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934      For the transition
  period from _________ to _________ Commission
  file number 1-8339
• NORFOLK SOUTHERN CORPORATION (Exact name of
  registrant as specified in its charter)  
• Virginia
• 52-1188014 (State or other jurisdiction of
  incorporation) (IRS Employer Identification No.)
      Three Commercial Place   Norfolk, Virginia
  23510-2191 (Address of principal executive
  offices) Zip Code     Registrant's telephone
  number, including area code [phone]     No
  Change
• (Former name, former address and former fiscal
  year, if changed since last report.)   Securities
  registered pursuant to Section 12(b) of the Act
    Title of each Class Name of each exchange
  Norfolk Southern Corporation on which registered
  Common Stock (Par Value 1.00) New York Stock
  Exchange     Securities registered pursuant to
  Section 12(g) of the Act NONE   Indicate by
  check mark whether the registrant (1) has filed
  all reports required to be filed by Section 13 or
  15(d) of the Securities Exchange Act of 1934
  during the preceding 12 months (or for such
  shorter period that the registrant was required
  to file such reports) and (2) has been subject to
  such filing requirements for the past 90 days.
  Yes (X)   No (  )   Indicate by check mark if
  disclosure of delinquent filers pursuant to Item
  405 of Regulation S-K is not contained herein and
  will not be contained, to the best of
  registrant's knowledge, in definitive proxy or
  information statements incorporated by reference
  in Part III of this Form 10-K or any amendment to
  this Form 10-K.            (   )   The number of
  shares outstanding of each of the registrant's
  classes of common stock, as of January 31, 2004
  391,852,750 (excluding 21,016,125 shares held by
  registrant's consolidated subsidiaries).  
  Indicate by check mark whether the registrant is
  an accelerated filer (as defined in Rule 12b-2 of
  the Act). Yes ( X ) No ( )   The aggregate market
  value of the voting common equity held by
  nonaffiliates as of June 30, 2003 was
  7,491,970,330 (based on the closing price as
  quoted on the New York Stock Exchange on that
  date).

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Investor Information

• Quarterly Financial Review
• Annual Report for Stockholders
• Form 10-K
• Form 10-Q

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Form 10-Q Second Quarter 2004

• 10-Q 1 nsc10q2qs.htm
• UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  Washington , D.C.   20549
•  
• FORM 10-Q     (X) QUARTERLY REPORT PURSUANT TO
  SECTION 13 OR 15(d) OF THE SECURITIES   EXCHANGE
  ACT OF 1934   For the quarterly period ended JUNE
  30, 2004     ( ) TRANSITION REPORT PURSUANT TO
  SECTION 13 OR 15(d) OF THE SECURITIES   EXCHANGE
  ACT OF 1934   For the transition period from
  __________ to __________   Commission file number
  1-8339

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Investor Information

• Quarterly Financial Review
• Annual Report for Stockholders
• Form 10-K
• Form 10-Q
• Quarterly Dividend Declarations

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Dividend News Release

• January 25, 2005
• Norfolk Southern Increases Quarterly Dividend
• NORFOLK, VA -- Norfolk Southern Corporation
  (NYSE NSC) today announced an increase in the
  quarterly dividend to 11 cents per share on its
  common stock, payable on March 10 to stockholders
  of record on Feb. 4.
• For further information contact
• (Media) Bob Fort, 757-629-2710
• (Investors) Leanne Marilley, 757-629-2861

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Investor Information

• Quarterly Financial Review
• Annual Report for Stockholders
• Form 10-K
• Form 10-Q
• Quarterly Dividend Declarations
• News Releases

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News Announcement

• September 28, 2004
• Norfolk Southern Names Moorman President
• NORFOLK , VA Norfolk Southern Corporation
  (NYSE NSC) today announced changes to its senior
  management team, including the election of a new
  president and the promotion of six senior
  executives. The changes will be effective Oct. 1.
  
• David R. Goode, chairman and chief executive
  officer, said that Charles W. Moorman, currently
  senior vice president corporate planning and
  services, has been elected president. L.I.
  Prillaman, vice chairman and chief marketing
  officer Stephen C. Tobias, vice chairman and
  chief operating officer and Henry C. Wolf, vice
  chairman and chief financial officer, will report
  to Moorman.
• Moorman, a native of Hattiesburg , Miss., and a
  graduate of Georgia Tech and Harvard Business
  School, joined Norfolk Southern in 1970. He has
  served in senior positions in the corporations
  transportation, personnel, labor relations,
  information technology and strategic planning
  areas. He was named president of NS Thoroughbred
  Technology and Telecommunications subsidiary in
  1999 and to his current position in 2003.

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Investor Information

• Quarterly Financial Review
• Annual Report for Stockholders
• Form 10-K
• Form 10-Q
• Quarterly Dividend Declarations
• News Releases
• Quarterly Earnings Presentations

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Railway Operating Revenues ( Millions)
Second Quarter
Six Months
3,506
3,194
1,813
1,633
2003 2004 2003
2004

Change vs. Prior Period 11
10
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Railway Operating RevenueVariance Analysis2004
vs. 2003
Second Quarter
Six Months
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9.8
8.0
7.3
2.8
2.2
Carloads Revenue Revenues
Carloads Revenue
Revenues per Unit
/ Mix
per Unit / Mix
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Railway Operating Expenses ( Millions)
Second Quarter
Six Months
2,735
2,665
1,388
1,335
2003 2004
2003
2004
Change vs. Prior Period 4 3
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What happens when

• XYZ Inc. Increases Quarterly Dividend
• NORFOLK, VA XYZ Incorporated (NYSE XYZ) today
  announced an increase in the quarterly dividend
  to 0.08 per share on its common stock, payable
  on Sept. 10 to stockholders of record on Aug. 6.

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Soits a few decimal places!

• XYZ Inc. Increases Quarterly Dividend
• NORFOLK, VA XYZ Incorporated (NYSE XYZ) today
  announced an increase in the quarterly dividend
  to 8.00 per share on its common stock, payable
  on Sept. 10 to stockholders of record on Aug. 6.

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The Impact

• Instead of paying quarterly dividends totaling
• 32 million
• you announced quarterly dividends totaling
  320 million
• Annualized, thats a 1.2 billion typo!

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Another Example
Its the Norfolk Southern Way
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Another Example
Its the Norfolk Southern Way
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Effective CommunicationWhats In It For Me?
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Effective Communication

• Enables you to motivate action
• Showcases your strengths and ideas
• Helps your organization meet strategic objectives
• Helps you meet your personal career objectives
• Allows you to survive individual and corporate
  crises
• Gets you noticed
• Distinguishes you as a leader and a management
  candidate
• Establishes a network of support as you climb the
  corporate ladder

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Common Questions

• How are business volumes?
• Has the weather significantly impacted
  operations?
• What is your primary use of free cash flow (FCF)?
• What is your target debt-to-total capital ratio?
  When do you plan to get there?
• What distinguishes NS franchise from its peers?
• What are your forecasted revenues for the
  quarter/year?
• What are your largest cost pressures?

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Effective CommunicationGets You Where You Want
To Be
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Recommendations

• Think first.
• Never assume.
• Know your grammar.
• Always proofread.
• Remember that nothing is ever off the record.
• Be honest.
• Never give your personal opinion in a public
  forum.
• Always proofread
• Clear heads prevail.
• Be accurate.
• Be consistent.
• Always proofread.
• Remember that you ARE the entity you represent.

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Communication and Fast FoodIts All About the
Basics
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