Union Pacific Corporation · NYSE:UNP
Union Pacific — Raymond James 37th Annual Institutional Investors Conference (March 2016)
10 slides from Union Pacific's conference presentation, Mar 9, 2016
Slide 1: Raymond James 37th Annual Institutional Investors Conference
March 9, 2016 Raymond James 37th Annual Institutional Investors Conference Rob Knight CFO 1 Cautionary Information This presentation and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the Com
Slide 2: The Strength of a Unique Franchise
The Strength of a Unique Franchise Excellent Network Strategic Terminal Locations Broad Port Access Border and Interchange Coverage Business Mix 2015 Freight Revenue: $20.4B Intermodal Agricultural 20% Products 17% Automotive Distribution Centers Automotive Industrial 11% Intermodal Terminals Produc
Slide 3: 2016 Volumes; Resources & Network Performance
2016 Volumes 2016 YTD Volumes* 7-Day Monthly Carloadings (vs 2015) (000s) 200 Automotive +14% 2006 @192 Int’l: +12% 190 Intermodal +6% 2014 Dom: Flat @188 Chemicals +1% 180 2013 @ 176 2012 @176 Agricultural Products -4% 170 2015 2016 YTD @177 Down 5% 5%* Industrial Products -10% 160 Coal -32% 150 Ja
Slide 4: Coal Trends; Shale-Related Volumes
Coal Trends Powder River Basin Coal Stockpiles* Volume Impact (Days of Burn) 2013 -16 Inventory 5-Year Average (Weekly Carloadings) 120 102 50,000 35 80 67 2014 40 30,000 2015 0 Jan Jul Jan Jul Jan Jul Jan 2016* PRB 2013 2013 2014 2014 2015 2015 2016 Flooding *Energy Ventures Analysis 10,000 1Q 2Q 3
Slide 5: Grain Volumes; Intermodal
Grain Volumes U.S. Grain Exports* (Bushels in Millions) Export Grain Flows 2013/14 2014/15 2015/16 Est. 1,920 1,864 1,843 1,650 1,638 1,690 1,176 , 854 775 Major UP-Served Grain Producing Region Corn Soybeans Wheat *Source: USDA February 2016 UNP Weekly Grain Carloads (As reported to the AAR) 9,000
Slide 6: Chemicals; U.S. Vehicle Sales and Drivers
Chemicals 2015 Volume Mix 2015 Revenue: $3.5 Billion Crude Oil Canadian Oil Sands Petroleum Potash 8% Fertilizer / LPG 15% 17% Soda Ash Bakken 11% Plastics Pl ti Industrial 23% Chemicals Soda Ash / 26% Trona Ore Niobrara Key End-Use Markets (% of 2015 Volume) Crop Production Automotive 15% 6% Consum
Slide 7: UP Positioned for Mexico Growth; Strengthening the Franchise
UP Positioned for Mexico Growth Strong Investments – Foreign & Domestic Volume Growth (Carloads in Thousands) Flat +8% +3% 956 956 +5% +9% 857 882 817 764 776 743 750 600 '06 '07 '08 '09 '10 '11 '12 '13 '14 15 2015 Volume Mix (In Carloads) Coal 1% IIntermodal t d l Industrial Chemicals 22% 9% 6% Ag
Slide 8: Leverage & Shareholder Returns; Summary of 2016 Key Guidance
Leverage & Shareholder Returns ($ In Millions) Adjusted Debt / Adjusted EBITDA* 1.7 • Strong Balance Sheet 1.4 1.4 • Investment Grade Credit Rating 12/31/2013** 12/31/2014** 12/31/2015 • $1.3 Billion Debt Dividends & Share Repurchases Issuance in 2016 YTD ($ In Millions) Share Repurchases Dividends
Slide 9: Aspiring to New Levels: "G55 + 0"
Aspiring to New Levels: “G55 + 0” Kicked off Fall 2015 • 15 Focused Teams • Turbocharge Productivity – All Areas • New Capital Efficiency Approaches • Improve the Customer Experience • New Business Development p • Continue Pricing to Service & Value • $ Billions of Ideas – Launch in 2016 17 “G55 + 0
Slide 10: Realizing Potential of the Franchise
Realizing Potential of the Franchise 87.5 Operating Ratio (Percent) 63.1 60 +/- 184 55 177 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2019 Realizing Target 55 7-Day Volume (000s) 19
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