Union Pacific Corporation · NYSE:UNP
Union Pacific — Credit Suisse 3rd Annual Industrials Conference 2015
10 slides from Union Pacific's conference presentation, Dec 3, 2015
Slide 1: Credit Suisse 3rd Annual Industrials Conference 2015
December 3, 2015 Credit Suisse 3rd Annual Industrials Conference 2015 Rob Knight CFO 1 Cautionary Information This presentation and related materials contain statements about the Corporation’s future that are not statements of historical fact, including specifically the statements regarding the Corp
Slide 2: The Strength of a Unique Franchise; Third Quarter 2015 Results
The Strength of a Unique Franchise Excellent Network Strategic Terminal Locations Broad Port Access Border and Interchange Coverage Business Mix Sep 2015 YTD Freight Revenue: $15.5B Intermodal Agricultural 20% Products 17% Automotive Distribution Centers Autos Industrial 11% Intermodal Terminals Pro
Slide 3: 2015 Volumes; Resourcing to Demand
2015 Volumes 4QTD 2015 Volumes* 7-Day Monthly Carloadings (vs 2014) (000s) 200 Automotive +7% 2006 @192 Agricultural Products -2% 190 2014 2015 YTD @188 Down 5%* Chemicals -4% 2011 180 @176 Dom: -1% -7% Intermodal Int’l: -14% 2013 @ 176 2012 Industrial Products -15% 170 @176 Coal -18% 160 January De
Slide 4: Network Performance; Coal Trends
Network Performance UP Velocity (As reported to the AAR, in mph) Good 26.7 25.8 25.6 26.5 26.5 • Solid Improvement 24.6 24.6 23.8 • Dynamic Environment 4Q13 4Q14 1Q15 2Q15 3Q15 Week Week Week 44 45 46 • Leverage Franchise Weekly Trend UP Terminal Dwell Strengths Good (As reported to the AAR, in hour
Slide 5: Shale-Related Volumes; Grain Volumes
Shale-Related Volumes 3.3% of 2015 YTD Total Volume YTD 2015 Volume % Incr % of Total • Frac Sand Drivers Through September (000s) (vs 2014) UP Volume • Lower Energy Prices / Lower Rig Counts Frac Sand* 144 -22% 2.1% • Enhanced Fracking Technology Crude Oil 70 -36% 1.0% • Crude Oil By Rail Market Dr
Slide 6: Intermodal; Anticipated North American Expansions
Intermodal 2015 Volume Mix YTD Through September Seattle Tacoma International Portland 49% Twin Cities Chicago Domestic D ti Sparks 51% Council Bluffs Salt Lake City Lathrop Kansas City St. Denver Louis Oakland Retail Inventory-to-Sales Ratio Memphis Source: U.S. Bureau of Economic Analysis Las Vega
Slide 7: U.S. Vehicle Sales; UP Positioned for Mexico Growth
U.S. Vehicle Sales 2015 Volume Mix YTD Through September 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 18.2 18.1 Angeles 17.4 17.8 17.7 16 5 16.5 16 4 16.4 Dalla
Slide 8: International Trade; Strengthening the Franchise
2014 Freight Volumes International Trade • Diverse Franchise Creates Domestic 61% Opportunity Other Imports • Off-shoring g / Near-shoring g 17% Mexico of U.S. Manufacturing Other Imports Exports 5% 12% • Demand for Grain and Food Mexico Exports • Low Natural Gas Prices Favor 5% International U.S. P
Slide 9: Debt & Leverage; Driving Strong Shareholder Value
Debt & Leverage ($ In Millions) Total Debt* (Adjusted) • Strong Balance $14,905 $16,493 Sheet 44.5% 41.3% • Investment Grade 12/31/2014 9/30/2015 Credit Rating Adjusted Debt to Capital Adjusted Debt / Adjusted EBITDA EBITDA* • $3 $3.35 35 Billion o YTD 1.4 1.6 Debt Issuance • Includes $1.1 Billion I
Slide 10: Closing Out 2015; Growing Shareholder Value
Closing Out 2015 Will Fall Short of Fourth Quarter & Full Year 2014 EPS Records • Lower Year-over-Year Volumes • Business Mix Challenges • Focus on Core Pricing • Continued Productivity & Cost Improvement 19 Growing Shareholder Value KEY DRIVERS 2015 2019 Moderate Economy Positive Volume Growth Dive
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