Norfolk Southern customers: we support the company and its strategy

Norfolk Southern Corporation Monday shared recent support from multiple key customers, including Lincoln Energy Solutions and Centennial Energy, which underscore that the company's balanced strategy under the decisive leadership of CEO Alan Shaw is taking hold and delivering a safer, more efficient railroad:

• Lincoln Energy Solutions CEO Larry Burgamy, Jr. stated: "As a growing partner, investor and shipper, Lincoln emphatically supports without question Alan Shaw, the Norfolk Southern management team and its strategies. Recent activist statements are disturbing and hold no merit to a disruptive suggestion of management change."
• Centennial Energy President, Elise Maskell, stated: "Centennial Energy wants to reiterate our full support of Alan Shaw and the entire management team at Norfolk Southern. Your balanced strategy is what not only Centennial needs, but what all rail customers, shareholders and the US economy needs…Norfolk Southern needs to stay the course and have time to execute on your long-term vision to produce balanced results which will drive the company and their customers forward."
• Associated Asphalt Partners Director of Sales and Logistics, Daniel Moran, stated: "We at Associated Asphalt are in support of [Alan], your current management at Norfolk Southern and your strategy."
• Smart Sand CEO and founder, Charles Young, stated: "Smart Sand is 100% behind the NS management team…we feel the NS management team has been excellent in building a sustainable large volume sand business to the Northeast and are looking forward to growing together in the future."

These reactions from multiple key customers underscore a recent rail shipper survey conducted by Wall Street research firm Stephens Inc., which found customers overwhelmingly support Norfolk Southern's strategy and are concerned about the negative effects of Ancora's plan. Customer quotes from the survey include:²

• "We have seen solid improvement with NS service over the past two years, for both carload and intermodal. After reviewing the plan by the activist, I am convinced it is a short-term attempt to squeeze cash out of the NS network."
• "NS has been doing a really nice job of balancing cost and service. If the activist moves forward, it will be bad for everyone except for a few profiteers."
• "Short term cost cutting by the activists will result in a lower level of service."

The strong support from customers reinforces that Norfolk Southern has the right team, the right strategy, and the right approach to safety and service, all of which is overseen by the right board of directors. Norfolk Southern's board has been an agent of change and has guided transformational initiatives that are improving safety and operational performance. With positive momentum, Norfolk Southern is executing at full force to drive productivity across its network, close the margin gap with its peers, and deliver sustainable value to shareholders.

In contrast, Ancora's demands for a wholesale overhaul of management and the board would impede this momentum, unnecessarily put Norfolk Southern and its stakeholders at risk, and ultimately destroy long-term value.