Union Pacific Corporation · NYSE:UNP
Union Pacific — Union Pacific Analyst Conference 2003
14 slides from Union Pacific's conference presentation, 2003
Slide 1: Agricultural Products
Agricultural Products Diane Knutson
Slide 2: Agricultural Products Key Drivers
Agricultural Products Key Drivers 2002 Revenue - $1.5 Billion • Ethanol • Alliances • North American Market Growth • Export Grain Markets • Crop Production Business Mix Food/ Refrig. 21% Whole Grains 43% Grain Products 36%
Slide 3: Growth Drivers
Growth Drivers • Arkansas Initiative • Ethanol • Express Lane
Slide 4: Business Development: Arkansas Initiative
Business Development Arkansas Initiative August August Year-to-Date Year-to-Date • Market Opportunity Carloads Carloads Up Up 5% 5% Revenue Revenue Increased Increased 11% 11% To/From To/From Industry Industry Improved Improved 13% 13% • Regional Service Redesign • Improved Car Supply
Slide 5: Ethanol Infrastructure on UP
Ethanol Infrastructure on UP
Slide 6: Ethanol Infrastructure on UP
Ethanol Infrastructure on UP Existing Existing Ethanol Ethanol Production Production Facilities Facilities Potential Potential Ethanol Ethanol Production Production Facilities Facilities Destination Destination Unloading Unloading Facilities Facilities Railroad Railroad Support Support Facilities Fa
Slide 7: Express Lane: Wine Connection
Express Lane Wine Connection Pacific Pacific Northwest Northwest Albany Albany 88 days days Detroit Detroit 7-8 7-8 Pittsburgh Boston Boston Eastern Eastern Pittsburgh days days 88 days 88 days days Idaho Idaho Chicago days Chicago New New York York 55 days days 77 days days Philadelphia Philadelphi
Slide 8: Express Lane Strategy
Express Lane Strategy • Lane Density • Influence Customer Site Location • Reefer Car Investment – Return on investment – New cars – Rehabbed cars – Efficiencies
Slide 9: Reefer Utilization Example
Reefer Utilization Example Loaded Loaded Empty Empty
Slide 10: Reefer Utilization Example
Reefer Utilization Example Profitability Improvement = 19% Loaded Loaded Empty Empty
Slide 11: Truckload Conversions
Truckload Conversions Ag Products 30,000 30,000 20,000 20,000 Trucks Trucks 10,000 10,000 00 2001 2002 2003 Est
Slide 12: Emerging Issues
Emerging Issues • Ethanol – Legislation – Infrastructure Development – By-Products (DDGs) • US Grain Exports • Mexico
Slide 13: Agricultural Products Key Drivers
Agricultural Products Key Drivers • Ethanol ++ • Alliances ++ • North American Market Growth + • Export Grain Markets + • Crop Production +/- Long Term Growth 3-6%
Slide 14: Union Pacific Railroad
Union Pacific Railroad
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