Union Pacific Corporation · NYSE:UNP
Union Pacific — Investor Day (May 2021)
23 slides from Union Pacific's investor day presentation, May 4, 2021
Slide 1: GROW
GROW Kenny Rocker, EVP – Marketing & Sales May 4, 2021
Slide 2: Premier North American Rail Franchise
Premier North American Rail Franchise Seattle Eastport Premium Bulk Duluth 49% 25% Portland 2020 Twin Cities Volume Interchange Industrial 36% Chicago 26% 2020 Direct Omaha Traffic UP 64% Salt Lake Mix City Kansas City Oakland Denver St. Louis Memphis • Operations in 23 States Los Angeles Calexico •
Slide 3: Economic Outlook
Economic Outlook Industrial Housing Light Vehicle Consumer Production Starts Sales Spending* CAGR CAGR CAGR CAGR +2.8% (‘21-’24) -6.5% (‘21-’24) Flat (‘21-’24) +1.4% (‘21-’24) 13.8% 8.6% 6.5% 10.9% 4.4% 7.7% 2.2% 2.0% 0.2% 0.1% 4.0% 3.2% 1.9% (0.9%) (0.7%) (8.5%) (10.0%) (0.7%) (6.7%) (14.9%) 2020 2
Slide 4: Commercial Focus – It's All About Growth
Commercial Focus – It’s All About Growth Advance the Transform the Expand our Grow with PSR Customer Sales Culture Network Reach Experience 4
Slide 5: Capitalize on ESG through Renewable Diesel
Grow with PSR Capitalize on ESG through Renewable Diesel Announced Renewable Diesel Projects Feedstock Inputs to By Planned Production Gallons Biomass Diesel Industry 4,556 Tallow 5% Canola Oil 10% Corn Oil Soybean Oil 12% 61% Greases 12% 455 Q1 2021 2022 2023 2024 2025 5 Sources: California Advance
Slide 6: Bulk
Grow with PSR Bulk Potash Produce Grain Export Grain & Dairy Grain Products Coal Major Grain, Grain 39% Products, & Fertilizer Region Dairy Produce Coal 2020 Fertilizer Volume 10% Dairy, Poultry Food & Coal & Cattle, Renewables Refrigerated Poultry Cattle, 41% 10% Poultry Cattle Grain Grain Export E
Slide 7: Grain
Grow with PSR Grain U.S. Grain Stocks* 2014 (Bushels in Billions) 12.5 12.9 Volume Drivers & Outlook 12.0 11.6 10.6 • Feed demand: Global protein consumption will increase driven by a growing population and higher standards of living 2017 2018 2019 2020 2021 Corn Soybeans Wheat • Exports: Great grow
Slide 8: Industrial
Grow with PSR Industrial Petroleum, LPG Lumber, Paper Sand Soda Steel Energy & Industrial Ash Shale Specialized Chem & 27% Plastic Copper, 2020 30% Iron Ore, Salt, Lime Volume Forest and Other Shale Minerals Products 11% Shale Metals & Lumber, Minerals Pipe, Paper 32% Shale Cement, Shale Aggregates
Slide 9: Supporting Sustainability Efforts
Grow with PSR Supporting Sustainability Efforts Shipping Eco-Friendly and Recyclable Products 9
Slide 10: Finished Vehicles
Grow with PSR Finished Vehicles Eastport Seattle Duluth Portland Twin Cities Chicago Omaha Oakland Salt Lake City Denver Kansas St. Louis City U.S. Light Vehicle SAAR* Los Memphis Angeles 17.1 17.2 17.0 Dallas 16.4 16.5 New 14.4 Orleans Houston Borders & Interchange Distribution Centers/Ports (UP Ow
Slide 11: Premium
Grow with PSR Premium Intermodal 82% 2020 Agricultural Volume 13% Industrial 26% v Automotive Energy 17% 18% Automotive Distribution Centers Intermodal Terminals Ports Border Crossings, Gateways and Interchanges 11
Slide 12: Transforming the Sales Culture
People Technology Processes • More agile structure • Robust pricing tools • Pursue growth with “hunter” mentality • Engage with all • Integrated CRM players in the supply system • Targeted campaigns chain 12 Transforming the Sales Culture
Slide 13: Working Differently to Deliver for Our Customers
Advancing Customer Experience Working Differently to Deliver for Our Customers Continuous Customer Experience Delivery Loop • Driven by Voice of the Customer Customers • Delivered in Agile Manner with Speed • Reducing Friction and Improving Experience 13
Slide 14: Driving Customer Value with Data Integration
Advancing Customer Experience Driving Customer Value with Data Integration Customer API Value to Customer Improved Visibility Better Planning Reduction in Manual 14 Process
Slide 15: Technology Driving Intermodal Excellence
Advancing Customer Experience Technology Driving Intermodal Excellence • Systems integration with customers enables better planning and service priority • Greater intermodal ramp capacity through technology and processes • Gate automation improves railroad and dray carrier productivity • Real-time r
Slide 16: Growth in Emerging Beverage Markets
Expanding Network Reach Growth in Emerging Beverage Markets Food & Beverage Volume Strategic Focus • Expand Beverage Product Breadth Canned • Expand Rail Connectivity to Supply Chain &Canned Paste & Paste • Replicate Success Rice/ Brewers & Rice/ Sugar/Dry Brewers & Beverages Sugar/Dry Beverages US
Slide 17: Loup – Providing Total Supply Chain Logistics
Expanding Network Reach Loup – Providing Total Supply Chain Logistics Wholesale Retail Auto Carload Carrier Intermodal Parts Relations Traditional Rail Door-to-Door Just-In-Time Execution Service Performance Capacity EQUIPMENT INVENTORY MILITARY DRAYAGE VALUE AND CAPACITY MANAGEMENT SERVICES SOURCIN
Slide 18: Prime Pointe Industrial Park
Expanding Network Reach Prime Pointe Industrial Park Hutchins, TX (12 miles south of Dallas) • 3,000-acre site for premier rail service • Close proximity to Interstates 45, 20, 30 and 35 • Adjacent to UP’s Dallas Intermodal Terminal • Rail-served sites for manufacturing and distribution along with r
Slide 19: Strong Franchise to Support Plastics Growth
Expanding Network Reach Strong Franchise to Support Plastics Growth • $209 billion completed and planned petrochemical OKLAHOMA ARKANSAS investment in Gulf* To East for Export • Industry leader in plastics rail transportation Dallas LOUISIANA TEXAS – Comprehensive product To LA/LB for Export offerin
Slide 20: Global IV Grain Transload
Expanding Network Reach Global IV Grain Transload • Union Pacific grain facility operated by JCT, 50/50 joint venture between Consolidated Grain and Barge and Gavilon Grain • Competitive Joliet area transload with on site containerization • Converting empty containers to loaded westbound exports fro
Slide 21: Twin Cities Intermodal Terminal
Expanding Network Reach Twin Cities Intermodal Terminal Expanding Market Reach for Growth • Opened Twin Cities Intermodal Terminal in January 2021 • Located in heart of the Twin Cities metropolitan area • Service between Twin Cities and Los Angeles, and Twin Cities and Lathrop • Gives customers in t
Slide 22: Inland Empire Intermodal Terminal
Expanding Network Reach Inland Empire Intermodal Terminal Expanding Our Footprint to Capture New Markets • 2 million imports (in cargo capacity units) trucked Existing UP Inland annually to Inland Empire Intermodal Inland Empire Empire Terminals LATC Region Pop Up • Estimated ~15 million truckloads
Slide 23: VALUES
VALUES Passion for Performance High Ethical Standards Work as a Team