Union Pacific Corporation · NYSE:UNP
Union Pacific — Q1 2023 Earnings Presentation
13 slides from Union Pacific's earnings presentation, Apr 20, 2023
Slide 1: First Quarter 2023 Earnings Release
FIRST QUARTER 2023 EARNINGS RELEASE Lance Fritz, Chairman, President, & CEO April 20, 2023 First Quarter 2023 Results Earnings Per Share Operating Ratio 62.1% $2.57 $2.67 59.4% 2.7 pts 4% vs 2022 vs 2022 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Key Themes Excess Service Costs and Higher Fuel Surcharges and S
Slide 2: Marketing & Sales Review: Bulk
FIRST QUARTER 2023 MARKETING & SALES REVIEW Kenny Rocker Executive Vice President – Marketing & Sales 3 FIRST QUARTER 2023 Bulk Revenue $1,897 (+4%) Volume 507K (-3%) ARC $3,743 (+7%) Major Markets Grain & Fertilizer Food & Coal & Grain Products Refrigerated Renewables 225 216 205 202 -1% -4% 45 45
Slide 3: Industrial and Premium
FIRST QUARTER 2023 Industrial Revenue $2,017 (+5%) Volume 536K (Flat) ARC $3,760 (+5%) Major Markets Industrial Chemicals Metals & Forest Energy & & Plastics Minerals Products Specialized 182 188 160 157 +3% 131 139 -2% +6% 64 52 -19% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Q
Slide 4: 2023 Volume Outlook / Operations Review
2023 Volume Outlook Bulk Industrial Premium Grain Industrial Production Domestic Intermodal Coal Forest Products International Intermodal Biofuels Metals Automotive Construction 7 FIRST QUARTER 2023 OPERATIONS REVIEW Eric Gehringer Executive Vice President – Operating 8
Slide 5: March Toward Zero Safety Incidents; Building Network Resiliency
March Toward Zero Safety Incidents • Rail is the safest way to move freight over land • Derailment prevention initiatives are fundamental to safe train operations at Union Pacific – State-of-the-art technology – Operating Practices Command Center – More than 7,000 wayside detection devices UP Derail
Slide 6: Key Performance Metrics
FIRST QUARTER 2023 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) 71 72 198 62 61 196 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 4Q 2022: 191 4Q 2022: 73 4Q 2022: 58 Q
Slide 7: 2023 Operating Success Drivers / Financial Review
2023 Operating Success Drivers World Class Safety Engagement Service Productivity • Enhance and drive • Improve quality of life for • Consistent and reliable • Recover lost productivity robust Safety craft professionals • Increase resiliency • Pursuing tech enabled Management Systems process initiat
Slide 8: First Quarter Income Statement
First Quarter Income Statement 2023 vs. 2023 2022 2022 Operating Revenues $6,056- $5,860- 3---- % Operating Expenses 3,762- 3,483- 8)--- Operating Income 2,294- 2,377- (3)--- Other Income 184- 47- F)--- Interest Expense (336) (307) 9)--- Income Taxes (512) (487) 5 )-- Net Income $1,630 $1,630 -----
Slide 9: Cost Structure; Cash Generation & Returns to Shareholders
Service Recovery, Inflation, and Weather Impact Cost Structure Operating Expenses $ in Millions 8% $3,762 $20 $20 $17 $3,483 $92 $52 $78 7% 7% 16% 9% 3% 6% Compensation Fuel Purchased Equipment Depreciation Other & Benefits Services & & Other Materials Rents 1Q 1Q 2022 2023 17 Cash Generation & Retu
Slide 10: Maintaining 2023 Full Year Guidance
Maintaining 2023 Full Year Guidance • Carloads to Exceed Industrial Production – Current Industrial Production Forecast: -0.7% • Operating Ratio Improvement • Pricing Dollars in Excess of Inflation Dollars • Capital Allocation: – Capital Spending Less than 15% of Revenue • Capital Plan of $3.6 Billi
Slide 11: 2023 Success Drivers; Cautionary Information
2023 Success Drivers Safety & Right Business, Service Right Price Reliability Rebuild & Invest Wisely; Engage Drive Efficiency 21 Cautionary Information This presentation and related materials contain statements about the Company’s future that are not statements of historical fact, including specifi
Slide 12: Appendix
23 APPENDIX First Quarter Operating Ratio and EPS
Slide 13: First Quarter Operating Ratio and EPS
First Quarter Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS First Quarter 2022 (59.4% ($2.57 Fuel Price (net) (1.9 pts (($0.25 Core Results (4.6) pts ($0.29) Real Estate Gain ((N/A ($0.14 First Quarter 2023 (62.1% ($2.67 25