Union Pacific Corporation · NYSE:UNP
Union Pacific — RailTrends 2014
9 slides from Union Pacific's conference presentation, Nov 21, 2014
Slide 1: RailTrends / UP Volume
RailTrends November 21, 2014 Brad Thrasher, VP & General Manager Industrial Products 1 UP Volume 2014 thru October 2014 vs. 2013 YTD Carloadings 7-Day Carloadings Agricultural 13% 210 200 Industrial 11% 2006 190 2014 Intermodal 9% 2007 180 2011 2013 2012 Autos 4% 170 2010 Coal 4% 160 2009 2008 150 C
Slide 2: Strengthening U.S. Economy Adds Potential
Strengthening U.S. Economy y Adds Potential* Key Insights • Economy expected to continue to strengthen • Improving unemployment and consumer sentiment encouraging • Economy and population create strong growth foundation *Source: IHS Global Insight: October 2014 Forecast 3 North American Manufacturer
Slide 3: Industrial Production Growing Share of GDP / Shale Market Impacts
Industrial Production Growing share of GDP* 8.0 6.0 4.0 2.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -2.0 -4.0 -6.0 -8.0 -10.0 IP Lagged GDP IP Leads GDP -12.0 Growth Growth -14.0 IP vs. GDP IP GDP *Source: IHS Global Insight: November 2014 F
Slide 4: Global Competitiveness
Supporting Rebirth of Manufacturing in North America Shale Revolution Low Low Energy Demand for Feedstock Costs Costs Durable Goods Steel, Pipe, Rock, Trucks Industrial Expansion 7 Global Competitiveness Low Feedstocks Low Energy Costs *Source: Waterborne Energy, Inc. Data in $US/MM Btu Includes inf
Slide 5: Fertilizer Demand
Fertilizer Demand Global Fertilizer Demand* (Million Tons) • Phosphates / Nitrogen 200 • Strong Domestic Access 150 Potash • Low Natural Gas Prices 100 Phosphates Nitrogen • Displacement of Imports 50 0 North American Nitrogen Expansions* *Source: IFA, June 2014 Spiritwood, ND E Dubuque, IL Rock Spr
Slide 6: North American Expansions
North American Expansions Steel Seattle Eastport Portland Duluth Twin Cities Chicago Oakland SLC Denver KC St. Louis LA Memphis Calexico Dallas New Nogales El Paso Orleans Eagle Pass Houston Laredo Brownsville 11 Foreign Direct Investment in Mexico Important FDI Announcements *Source: Company public
Slide 7: Rail is Critical to America's Supply Chain
Rail is Critical to America’s Supply pp y Chain FACILITY F Iron OreACILITY Scrap 13 Increasing g Demand for Rail Seattle Bulk Eastport Portland Potential New YTD YTD Var Inter Duluth and Expanded Nov Nov modal Facilities 2014 2013 Twin Cities Frac Construction 505 423 82 Sand Shale New Facility Chic
Slide 8: Growing Opportunity of a Unique Franchise
Growing Opportunity of a Unique Franchise • Excellent Network • Strategic Terminal Locations • Broad Port Access • Border and Interchange Coverage Automotive Distribution Centers Intermodal Terminals Manifest Terminals Ports Border Crossings, Gateways and Interchanges 15 Value Proposition Pulls It A
Slide 9: RailTrends
RailTrends November 21, 2014 Brad Thrasher, VP & General Manager Industrial Products 17