Union Pacific Corporation · NYSE:UNP
Union Pacific — 2012 Citi Global Industrials Conference
13 slides from Union Pacific's conference presentation, Sep 19, 2012
Slide 1: 2012 Citi Global Industrials Conference
2012 Citi Global Industrials Conference Rob Knight, CFO – September 19, 2012 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 Corporation’s outlook regarding: econ
Slide 2: The Strength of a Unique Franchise
The Strength of a Unique Franchise • Diverse Business Mix Seattle Eastport • Fastest Growing States Duluth • Broad Port Access Portland Portla To/From Twin Cities Asia Chicago • Interchange Traffic & Oakland Oakla la Salt Omaha Border Crossings Lake Denver St. Louis City Kansas City Los Freight Reve
Slide 3: First Half 2012 Record Results
First Half 2012 Record Results Positives Earnings Per Share +35% $3.89 • First Half Records Best-Ever $2.89 First – Operating Revenue Half $2.42 – Operating Income – Operating Ratio – Earnings 2010 2011 2012 – Employee Safety Operating Ratio (%) – Customer Satisfaction 72.2 72.9 (4.2) pts • Franchis
Slide 4: 2012 Revenue Drivers
2012 Revenue Drivers 7-Day Monthly Carloadings YTD Volume Growth (vs 2011) (000s) 210 Automotive +15% 200 2006 @192 s Chemicals +13% 190 2012 YTD* 2011 Industrial up 1% @177 +6% 180 Products 170 2010 Intermodal +2% @172 160 Agricultural -2% 2009 150 @152 Sub Total (excl Coal) +5% 140 Coal -12% Janua
Slide 5: Current/Potential Export Coal Flows
Current/Potential Export Coal Flows Global Market for Western U.S. Coal Ridley Westshores Growing International Bellingham Longview Market for Electricity Port of Morrow Merc Dock Westward Coos Bay Asia Consuming More KCBX South African and Stockton Australian Coal S. Illinois Long Beach U.S. Coal E
Slide 6: Intermodal Trends
Intermodal Trends UP Intermodal Volumes Domestic & International (7 Day) (Year-over-Year Volume Growth) 73,000 6% 6% 2012 YTD* up 2% 3% 3% 3% 2% 1% 0% 69,000 2010 -2% 65,000 -3% Domestic 2011 -7% International 61,000 2009 -12% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 57,000 • Growing Domestic 53,000 Volumes &
Slide 7: 2012 YTD Volume Drivers
2012 YTD Volume Drivers Vs. 2011 (Carloadings in 000s) Carload Growth vs. 2011* 99 YTD Volumes (000s): +25% Nonmetallic 67 2012 6,422 Minerals 53 2011 6,374 Int’l 37 Variance 48 +84% Petroleum Domestic 21 -19% -49% -12% +50% +15% +2% +12% +7% (17) (3) (26) (183) Shale Vehicles Intermodal Cement, Ind
Slide 8: Shale-Related Opportunity
Shale-Related Opportunity Integrated Strategy • Crude Oil • Frac Sand • Minerals • Steel • Pipe Potential Volume Growth (Carloads In Thousands) 400 300 Pipe 200 Sand / Minerals Crude Oil 100 0 2010 2011 2012 2013 2014 2015 15 Leveraging the Franchise Louisiana – Growth Livonia Plant Expansions / New
Slide 9: Expanding Chemical Franchise
Expanding Chemical Franchise Texas/Louisiana Investments Dallas Chevron Phillips Chemical Co. • $5 Billion investment in cracker & Shreveport additional capacity projects. Ft. Worth • Total capacity: 1.5 million mt/year • Estimated completion in 2017 Formosa Plastics Corp. • >$1.7 Billion investment
Slide 10: Housing Trends
Housing Trends Lumber, Stone & Glass UP Wkly Housing Housing Carloadings Starts (mils) 12,000 2.5 • Housing represents 7% to 8% of current UP 10,000 volumes 2.0 8,000 • Lumber, Stone & Glass 1.5 down 3,000 carloads a 6,000 week, a 2% total volume 1.0 growth opportunity 4,000 0.5 • Including Chemical
Slide 11: Current & Proposed Capital Investments
Current & Proposed Capital Investments Corridor Seattle Eastport Blair Double Terminal Track Duluth Portland Powder River Basin Twin Cities CREATE Sidings/Extensions I-5 Central al C Corridor Omaha Chicago CTC/Tunnels Salt Mississippi Lake Denver North River Bridge City Platte Oakland Kansas City St
Slide 12: Leveraging the Strength of the UP Franchise
Total Shareholder Return Average Annual Total Return* Time Frame** UP S&P 500 15 Yrs 11.5% 5.0% 10 Yrs 17.8% 7.3% 5 Yrs 20.3% 2.0% 3 Yrs 29.3% 14.1% 1 Yr 47.7% 26.0% * Assumes dividends are reinvested in company stock ** Periods ending September 14, 2012 23 Leveraging the Strength of the UP Franchis
Slide 13: Question & Answer Session
Question & Answer Session 25
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