Union Pacific Corporation · NYSE:UNP
Union Pacific — 2016 Citi Industrials Conference
9 slides from Union Pacific's conference presentation, Jun 14, 2016
Slide 1: 2016 Citi Industrials Conference
June 14, 2016 2016 Citi Industrials Conference Rob Knight CFO 1 Cautionary Information This presentation and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the Company’s expectations with res
Slide 2: The Strength of a Unique Franchise
The Strength of a Unique Franchise Excellent Network Strategic Terminal Locations Broad Port Access Border and Interchange Coverage Business Mix 2015 Freight Revenue: $20.4B Intermodal Agricultural 20% Products 17% Automotive Distribution Centers Automotive Industrial 11% Intermodal Terminals Produc
Slide 3: First Quarter 2016 Results
Resources & Network Performance Total TE&Y* Active Locomotive Fleet 18,090 -22% 7,778 -15% • ~ 4,000 TE&Y Employees in 14,141 6,590 Furlough / AWTS** • ~ 1,700 Locomotives in 1Q15 1Q16 1Q15 1Q16 Storage** *Full-time equivalent **As of June 10, 2016 UP Velocity UP Terminal Dwell (As reported to AAR,
Slide 4: Resources & Network Performance
Coal Trends Powder River Basin Coal Stockpiles* Volume Impact (Days of Burn) 2013 -16 Inventory 5-Year Average (Weekly Carloadings) 120 111 50,000 41 80 40,000 2014 70 40 30,000 20,000 2015 0 PRB Jan Jul Jan Jul Jan Jul Apr 10,000 2016* Flooding (2015) 2013 2013 2014 2014 2015 2015 2016 *Energy Vent
Slide 5: 2016 Volumes
Industrial Products 2015 Volume Mix 2015 Revenue: $3.8 Billion Lumber, Other 10% Frac Sand* Paper 15% Metals Other Minerals & Frac Sand 15% Consumer 6% Paper 9% Construction Lumber Products 10% 35% *Includes barites Key End-Use Markets Copper, Iron (% of 2015 Volumes) Ore, Lime, & Other Other 13% Mi
Slide 6: Coal Trends
U.S. Vehicle Sales and Drivers 2015 Volume Mix Eastport Seattle Auto Parts 43% Duluth Portland Twin Cities Finished Vehicles Chicago 57% Omaha Oakland Salt Lake Denver City Kansas City St. Louis U.S. Light Vehicle SAAR* Los Memphis 18.1 18.1 Angeles 17.5 17.7 17.7 16 5 16.5 16 4 16.4 Dallas New Orle
Slide 7: Intermodal
UP Positioned for Mexico Growth Strong Investments – Foreign & Domestic Volume Growth (Carloads in Thousands) Flat +8% +3% 956 956 +5% +9% 857 882 817 764 776 743 750 600 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 2015 Volume Mix (In Carloads) Coal 1% IIntermodal t d l Industrial Chemicals 22% 9% 6% Ag
Slide 8: Industrial Products and Chemicals
Leverage & Shareholder Returns ($ In Millions) Adjusted Debt / Adjusted EBITDA* 1.7 1.8 • Strong Balance Sheet 1.4 • Investment Grade Credit Rating 12/31/2014** 12/31/2015 3/31/2016 • 2016 YTD Debt Issuance: Cumulative Share Repurchases ~ $1.5 Billion (In Millions) 279.8 289 1 289.1 • Repurchased 27
Slide 9: U.S. Vehicle Sales and Drivers; Grain Volumes
Realizing Potential of the Franchise 87.5 Operating Ratio (Percent) 63.1 60 +/- 184 55 177 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2019 Realizing Target 55 7-Day Volume (000s) 17