Union Pacific Corporation · NYSE:UNP
Union Pacific — Credit Suisse First Boston conference 2003
18 slides from Union Pacific's conference presentation, Mar 12, 2003
Slide 1: Credit Suisse First Boston
Credit Suisse First Boston March 12, 2003
Slide 2: Disclosure Statement
Disclosure Statement This This presentation presentation andand related related materials materials may may contain contain statements statements about about thethe Corporation's Corporation's future future that that are are not not statements statements of of historical historical fact. fact. These
Slide 3: Economic View
Economic View Carload Growth 2003 2003 Vs Vs 2002 2002 -- Through Through March March 7th 7th Automotive Automotive +8% +8% Industrial Industrial +6% +6% Challenges Intermodal Intermodal +2% +2% • Uncertainties of War Chemicals Chemicals +2% +2% • Fuel Prices Agricultural Agricultural 0% 0% Energy E
Slide 4: Slide 4
Slide 5: Total Quality Management System
Total Quality Management System Tools: Customer Requirements • Six Sigma • Workout Planning • PDCA Improve & Adjust & Control • QSP Employee Business • Customer Satisfaction Development Processes Surveys • Ideaworks Customer Satisfaction Improved Business Results
Slide 6: Railroad Productivity
Railroad Productivity GTMs (Millions)/ Employee 22 22 G R CA 18 7% 18 14 14 10 10 66 84 84 86 86 88 88 90 90 92 92 94 94 96 96 98 98 00 00 02 02
Slide 7: Five Critical Resources
Five Critical Resources Employees Locomotives Freight Cars Technology / Quality Main Track Capacity Processes Terminal Capacity
Slide 8: Locomotive Productivity
Locomotive Productivity Fuel Efficiency C C Rate Rate (Gallons (Gallons // 000 000 GTMs) GTMs) 1.385 1.388 Fleet Modernization: • Streamlined Fleet 1.343 • Maintenance Simplification 1.323 • Fuel Efficiency • Horsepower Per Trailing Ton • Reliability 1999 1999 2000 2000 2001 2001 2002 2002
Slide 9: Locomotive Partners
Locomotive Partners AC Units with Distributed Power = • Improved Tractive Effort • Asset Utilization –– Fewer Fewer Locomotives Locomotives (3 (3 Units Units Vs. Vs. 4) 4) –– Longer Longer Trains Trains
Slide 10: Freight Car Productivity
Freight Car Productivity 7-Day Carloadings Online Car Inventory In In 000’s 000’s In In 000’s 000’s +7% +7% 178.5 178.5 311.4 311.4 +1% 313.2 +1% 313.2 167.1 167.1 518.7 518.7 ss a ssee a llioonn i rree B Biill cc -- InIn s s %% e ille 1100 MMi nn TToo uuee n een v v 473.1 473.1 RRee 1999 1999 2002
Slide 11: Track Productivity
Track Productivity • Reduced Installation & Maintenance Costs • Extended Wear Life • Minimize Terminal Connections & Dwell Times • Manage Train Operations
Slide 12: Terminal Productivity
Terminal Productivity Freight Car Terminal Dwell Locomotive Terminal Dwell Hours Hours Hours Hours 28.2 28.2 -9% -9% 14.9 14.9 -5% -5% 14.2 14.2 25.7 25.7 1999 1999 2002 2002 1999 1999 2002 2002
Slide 13: Leveraging Technology
Leveraging Technology GPS Locomotive Tracking ATCS Work Order
Slide 14: Main Track Productivity
Main Track Productivity Million Gross Ton-Miles per Mile of Road 32.4 32.4 31.1 31.1 31.3 31.3 • Dispatching Effectiveness 29.9 29.9 • Alternate Routes • Maintenance Practices 1999 1999 2000 2000 2001 2001 2002 2002
Slide 15: Quality Service Costs Less
Quality Service Costs Less Reduced Failure Costs Improved Service Cost Cost of of Quality Quality -- % % of of Revenue Revenue AAllll--T Tiim mee 15.3 ““B e Bessttss”” 15.3 13.9 13.9 Customer Satisfaction 78% 78% 12.5 12.5 73% 73% 11.3 11.3 Service Delivery Index 1999 1999 2000 2000 2001 2001 2002 2
Slide 16: Operating Margin
Operating Margin Rail & Other Operations 20.2% 18.6% 18.3% 17.5% 1999 2000 2001 2002
Slide 17: Union Pacific is Committed To Be A Company Where....
Union Pacific is Committed To Be A Company Where…. Customers Want to Do Business Employees Are Proud to Work Shareholder Value is Created
Slide 18: Union Pacific Corporation
Union Pacific Corporation = _ etme eae <BUILDING AMERICA®
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