Union Pacific Corporation · NYSE:UNP
Union Pacific — Goldman Sachs Industrials Conference 2015
10 slides from Union Pacific's conference presentation, Nov 4, 2015
Slide 1: Goldman Sachs Industrials Conference 2015
November 4, 2015 Goldman Sachs 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 Corporation’s e
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 -1% 190 2014 2015 YTD @188 Down 5%* Chemicals -4% 2011 180 @176 Dom: Flat -8% Intermodal Int’l: -16% 2013 @ 176 2012 Industrial Products -15% 170 @176 Coal -17% 160 January D
Slide 4: Network Performance; Coal Trends
Network Performance UP Velocity (As reported to the AAR, in mph) Good 26.8 25.8 25.6 26.2 26.5 • Solid Improvement 24.5 24.6 24.6 23.9 23.8 23.8 • Dynamic Environment 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Week Week Week 40 41 4Q15 Trend 42 • Leverage Franchise UP Terminal Dwell Strengths (As repor
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: Anticipated North American Expansions; Intermodal
Anticipated North American Expansions Plastic Resins 2016 Overall New U.S. 2017 Sarnia, ON Chemical Industry Investment: $100+ Joffre, AB Billion* 2016 2018 La Porte, TX Lake Charles, LA La Porte, TX 2016 Plaquemine, LA 2017 2017 Baytown, TX Plaquemine, LA Freeport, TX 2018 Sweeny, TX 2015 2016 Poin
Slide 7: U.S. Vehicle Sales; Mexican Automotive Production Growth
U.S. Vehicle Sales 2015 Volume Mix YTD Through September Eastport Seattle Auto Parts 43% Duluth Portland Twin Cities Finished Vehicles Chicago 57% Omaha Oakland Salt Lake Denver City Kansas City St. Louis U.S. Light Vehicle SAAR* Los Memphis 18.2 18.1 Angeles 17.8 17.7 17.3 16 5 16.5 16 4 16.4 Dalla
Slide 8: UP Positioned for Mexico Growth; Capital Program Supported by Returns
UP Positioned for Mexico Growth Strong Investments – Foreign & Domestic Volume Growth (Carloads in Thousands) +8% +3% 956 +5% 882 +9% 857 764 776 743 817 750 708 600 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 2015 Volume Mix YTD Through September Autos 47% Ag Products 14% Chemicals 7% Industrial Interm
Slide 9: Debt & Leverage; Driving Strong Shareholder Value
Debt & Leverage ($ 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
Union Pacific — Goldman Sachs Industrials Conference 2015 on 6ix