Union Pacific Corporation · NYSE:UNP
Union Pacific — Deutsche Bank 5th Annual Global Industrials and Basic Materials Conference 2014
10 slides from Union Pacific's conference presentation, Jun 4, 2014
Slide 1: Deutsche Bank 5th Annual Global Industrials and Basic Materials Conference
Deutsche Bank 5th Annual Global Industrials and Basic Materials Conference Rob Knight, CFO – June 4, 2014 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 statemen
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 Angeles Memp
Slide 3: Successful Track Record / A Record Start to 2014
Successful Track Record 2004 to 2013 Operating Ratio EPS ROIC 87.5% $9.42 14.7% -21.4 +23% +9.4 points CAGR points 7 Day Volume 66.1% @ 184K 7 Day Volume @ 176K 5.3% $1.42 2004* 2013 2004* 2013 2004* 2013 #1 – Industry Improvement * 2004 adjusted for asbestos charge of $247.4 million. 5 A Record Sta
Slide 4: Network Performance / 2014 YTD Volume Drivers
Network Performance UP Velocity Agility & Resource Readiness (As reported to the AAR, in mph) 27.6 Good 26.3 26.4 • Leverage UP Franchise 24.5 24.3 24.5 23.4 • Adjust transportation plans 1Q12 1Q13 1Q14 1 8 15 22 • Leverage fluid routes 2014 Weekly Trend and terminals UP Terminal Dwell (As reported
Slide 5: Agricultural Trends / Coal Trends
Agricultural Trends 2013 Volume Mix Grain (Year-over-Year Volume Change) Domestic* 93% Grain Food & Export* 73% Products Refrigerated 35% 26% 15% Grain 1% 0% 39% -18% -20% -17% -14% -34% 1Q13 2Q13 3Q13 4Q13 1Q14 *Excludes equipment shipments. Est. U.S. Crop Acreage & Production* (vs. 2013) • 2013 Ro
Slide 6: Shale-Related Volumes / Highway Conversions
Shale-Related Volumes Shale-Related Volumes (000s) Frac Sand 1Q 2014 Vol % Inc (vs 1Q13) • Sand needed in all shale- Frac Sand* 54.8 22 related frac drilling Crude Oil 37.6 -18 • UP serves key origins and Pipe 7.7 6 destinations Total Shale 100.1 ~4.5% of Total Volumes Crude Oil Prices Spreads drive
Slide 7: New Intermodal Services / Expanding Chemical Franchise
New Intermodal Services • Expansion of Portland Premium Service into New Markets Chicago • Seamless Service Oakland between Mexico & St. Louis U.S. Charlotte Los Angeles • Santa Teresa, NM Atlanta Facility opened April 1, 2014* Santa Teresa (El Paso) New Orleans • Truck-Competitive Service New/Impro
Slide 8: Mexico Trends for Union Pacific / Strengthening the Franchise
Mexico Trends for Union Pacific Volume Growth (Carloads in Thousands) +3% +5% 882 +9% 857 817 764 776 743 750 708 600 '05 '06 '07 '08 '09 '10 '11 '12 '13 • Only Rail to serve all 6 Major Gateways to/from Mexico UP Interchange Points • 10% of Total Volumes Ports Ferromex (FXE) • No Physical Operation
Slide 9: Strong Financial Position / Delivering Value to Shareholders
Strong Financial Position Three Month Period Ending March 31 ($ In Millions) Free Cash Flow* • Solid Cash from Operations $1,767 $1,524 • Increase in Capital ($905) Investment ($800) ($323) ($363) • 32% Increase in Declared 2013 2014 2013 2014 2013 2014 Dividends to $0.91 per Cash from Investing Div
Slide 10: 2014 Outlook / Question & Answer Session
2014 Outlook • Positive Volumes Assuming Continued Economic Growth • Weather will be a Factor • Continued Core Pricing Gains • Network Efficiencies • Leverage Diverse Franchise • Record Financial Results • Increasing Shareholder Returns 19 Question & Answer Session Rob Knight, CFO – June 4, 2014 20