Union Pacific Corporation · NYSE:UNP
Union Pacific — Raymond James 34th Annual Institutional Investors Conference (March 2013)
9 slides from Union Pacific's conference presentation, Mar 5, 2013
Slide 1: Raymond James 34th Annual Institutional Investors Conference
Raymond James 34th Annual Institutional Investors Conference Rob Knight, CFO – March 5, 2013 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 statements regarding
Slide 2: The Strength of a Unique Franchise
The Strength of a Unique Franchise • Diverse Business Mix Seattle Eastport • Fastest Growing States Portland Portla Duluth To/From • Broad Port Access 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: 2012 Volume Drivers
2012 Volume Drivers Vs. 2011 (Carloadings in 000s) Carload Growth vs. 2011 FY Volumes (000s): 133 2012 9,048 +28% Frac Sand 85 2011 9,072 58 Variance (24) +3x Crude Oil Parts Int’l 51 31 Vehicles Domestic -49% -14% -14% +84% +13% +2% +12% +7% (33) (10) (46) (293) Shale Vehicles Intermodal Cement, In
Slide 4: Coal Trends
Coal Trends Volume Impact (Weekly Carloadings) Longer Term Drivers 47,000 Other 13% + New Domestic Business 43,000 + Growing Exports from 39,000 2011 Southern Powder ~8M tons in 2012 to 16M 35,000 River Basin 2013* 74% tons by 2017 31,000 2012 + Potential Backfill to 27,000 1Q 2Q 3Q 4Q Eastern Marke
Slide 5: UP Positioned for Mexico Growth Opportunities
UP Positioned for Mexico Growth Opportunities Strong Investments – Foreign and Domestic Volume Growth (Carloads in Thousands) +5% +9% 857 817 764 776 743 750 708 600 '05 '06 '07 '08 '09 '10 '11 '12 2012 Business Mix (In Carloads) Autos 45% Chemicals UP Interchange Points Agricultural 6% 14% Ports Co
Slide 6: Expanding Chemical Franchise
Expanding Chemical Franchise Texas/Louisiana Investments Dallas Chevron Phillips Chemical Co. • $5 Billion investment in cracker & Shreveport additional capacity projects. Ft. Worth • Total capacity: 1.5 million mt/year • Estimated completion in 2017 Formosa Plastics Corp. • >$1.7 Billion investment
Slide 7: Pricing Opportunity
Pricing Opportunity Strong Fundamentals Continue Core Pricing Gains 6% 6% • Value is the Key to Future 4.5% 5% 4.5% 4.5% Price Improvement • Value/Service Gains Support Narrowing Discount to Truck 2007 2008 2009 2010 2011 2012 Balanced Revenue Portfolio • New Business Supports 2 16 20 2016 Margin Im
Slide 8: Capital Investments Supported by Returns
Capital Investments Supported by Returns Investments* & Returns** (Capital in Billions) • Improved Profitability $3.7 ~$3.6 Drives Strong Cash Flow ROIC* $3.1 $3.2 • … Supports Investments $3.15 that must meet high return (excl hurdles $2.5 $2.5 14.0% PTC) • … Supports Core Pricing 12.4% that Drives
Slide 9: Union Pacific – A Promising Future
Union Pacific – A Promising Future • Market-Based Pricing at Reinvestible Levels • Focus on Productivity, Efficiency, and Innovation • Leverage Strengths of Diverse Franchise • Invest to Strengthen and Enhance Network • Drive Increased Profitability & Shareholder Returns 17 Raymond James 34th Annual
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