Union Pacific Corporation · NYSE:UNP
Union Pacific — Q1 2022 Earnings Presentation
11 slides from Union Pacific's earnings presentation, Apr 21, 2022
Slide 1: First Quarter 2022 Earnings Release
FIRST QUARTER 2022 EARNINGS RELEASE Lance Fritz, Chairman, President, & CEO April 21, 2022 First Quarter 2022 Results Earnings Per Share Operating Ratio $2.57 60.1% 59.4% $2.00 29% (0.7) pts vs 2021 vs 2021 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Key Themes Positive Volume, Price and Mix Operational Ineffic
Slide 2: Marketing & Sales Review: Bulk
FIRST QUARTER 2022 MARKETING & SALES REVIEW Kenny Rocker Executive Vice President – Marketing & Sales 3 FIRST QUARTER 2022 Bulk Revenue $1,832 (+21%) Volume 522K (+12%) ARC $3,508 (+8%) Major Markets Coal & Renewables Grain & Fertilizer Food & Grain Products Refrigerated 225 203 205 174 +29% +1% 44
Slide 3: Industrial and Premium
FIRST QUARTER 2022 Industrial Revenue $1,921 (+16%) Volume 537K (+11%) ARC $3,574 (+5%) Major Markets Energy & Specialized Forest Products Industrial Chemicals Metals & Minerals & Plastics 182 160 146 139 140 131 +25% +14% -6% 60 64 +7% 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022
Slide 4: 2022 Volume Outlook
2022 Volume Outlook Bulk Industrial Premium Fertilizer Industrial Production Domestic Intermodal Coal Chemicals and Plastics ? International Intermodal Grain and Grain Products Petroleum ? Auto Sales 7 FIRST QUARTER 2022 OPERATIONS REVIEW Eric Gehringer Executive Vice President – Operating 8
Slide 5: Key Performance Metrics
FIRST QUARTER 2022 Key Performance Metrics FREIGHT CAR VELOCITY INTERMODAL TRIP PLAN MANIFEST/AUTO (Daily Miles per Car) COMPLIANCE TRIP PLAN COMPLIANCE (% of Boxes On Time) (% of Cars On Time) 209 77 71 68 198 62 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Quarterly Drivers Increasing Operating
Slide 6: Building Network Resiliency and Consistency
Building Network Resiliency and Consistency • Steps to Strengthen the Network: Operating Inventory, Volume, and Freight Car Velocity* – Reduce Operating Car Inventory 195,636 Operating Car Inventory – Maintain Terminal Fluidity 174,996 – Improve Crew Availability and 7-Day Continue Hiring Efforts 15
Slide 7: First Quarter Operating Ratio and EPS; Income Statement
First Quarter Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS First Quarter 2021 60.1% $2.00 Weather (1.6 pts $0.16 Fuel Price (0.8) pts $0.12 Core Results (0.1) pts $0.29 First Quarter 2022 59.4% $2.57 13 First Quarter Income Statement 2022 vs. 2022 2021 2021 Operating Revenue
Slide 8: Broad Based Freight Revenue Growth; Operating Expenses
Broad Based Freight Revenue Growth $ in Millions 17% $5,440 $4,649 158 Volume Fuel Surcharge Price/Mix 152 4.25% 8.00% 4.75% 1Q 1Q 2021 2022 15 7 Day Volume (000s) Rising Fuel Prices and Network Inefficiencies Impact Quarterly Operating Expenses $ in Millions 16% $3,483 $3 $6 $17 $71 $3,008 $303 $75
Slide 9: Solid Cash Generation and Shareholder Returns; 2022 Guidance
Solid Cash Generation and Shareholder Returns First Quarter Results Cash From Operations vs. • $2.2 Billion Cash From Operations, an increase of 14% Cash Conversion* ($ in millions) • Cash Capital Spending of $848 Million, an increase of 58% $2,236 • 85% Cash Flow Conversion Rate* $1,958 106% • Retu
Slide 10: 2022 Success Drivers
FIRST QUARTER 2022 Lance Fritz Chairman, President & CEO 19 2022 Success Drivers Enhance Safety Programs Advance Customer Experience Operational Excellence Expand Reach to Service New Markets and Industries Provide Value to All Win with Customers Stakeholders Industry Leading Cash ESG Leader Returns
Slide 11: Cautionary Information
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 respect to economic conditions and demand levels, its ability to im