Union Pacific Corporation · NYSE:UNP
Union Pacific — Q1 2020 Earnings Presentation
12 slides from Union Pacific's earnings presentation, Apr 23, 2020
Slide 1: First Quarter 2020 Earnings Release
FIRST QUARTER 2020 EARNINGS RELEASE Lance Fritz – Chairman, President & CEO April 23, 2020 First Quarter 2020 Results Earnings Per Share Operating Ratio $2.15 $1.93 63.6 +11% 59.0 -4.6 pts 2019 2020 2019 2020 All-Time Quarterly Record 2
Slide 2: Operations Review: Key Performance Metrics
FIRST QUARTER 2020 OPERATIONS REVIEW Jim Vena Chief Operating Officer 3 Unified Plan 2020 Key Performance Metrics – 1Q 2020 vs. 1Q 2019 209 23.8 25.4 131 894 85 64 FREIGHT CAR FREIGHT CAR TRAIN SPEED* LOCOMOTIVE WORKFORCE INTERMODAL MANIFEST/AUTO VELOCITY * TERMINAL (Miles Per Hour) PRODUCTIVITY PRO
Slide 3: Unified Plan 2020 Update and Operating Outlook
Unified Plan 2020 Update Terminal Rationalization & Network Changes Train Length • Consolidated Mechanical shops (Max on Route, in Feet) • Santa Teresa Block Swap Facility In ~1,300 ft +19% Service 8,500 • Completed Eight 15,000 Foot Sidings 8,000 • Continued Improvement in Train Length 7,500 7,000
Slide 4: Marketing & Sales Review: Bulk
FIRST QUARTER 2020 MARKETING & SALES REVIEW Kenny Rocker Executive Vice President – Marketing & Sales 7 Bulk Revenue $1,534M (-5%) Volume 477K (-7%) ARC $3,219 (+2%) Coal & Grain & Fertilizer Food & Renewables Grain Products Beverage 256 208 169 175 -19% +4% 43 46 47 48 +7% +2% 2019 2020 2019 2020 2
Slide 5: Industrial and Premium Results
Industrial Revenue $1,894M (+3%) Volume 546K (+3%) ARC $3,469 (Flat) Energy & Forest Products Industrial Chem Metals & Specialized & Plastics Minerals 180 174 147 162 148 154 +10% -3% +4% 56 56 Flat 2019 2020 2019 2020 2019 2020 2019 2020 Quarterly Drivers Strong Crude Shipments Construction Strengt
Slide 6: Second Quarter Volume & Outlook
Second Quarter Volume & Outlook Second Quarter Volume YTD* 7-Day Weekly Carloadings (000s) Premium -30% 180 2009 Bulk -17% 160 2019 Industrial -14% 140 2020 TOTAL -22% 120 100 January October 11 * Volume through April 21 FIRST QUARTER 2020 FINANCIAL REVIEW Jennifer Hamann Executive Vice President &
Slide 7: First Quarter Operating Ratio, EPS and Income Statement
First Quarter Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS First Quarter 2019 63.6% $1.93 2019 Payroll Tax Refund (0.8) pts ($0.05) 2019 Weather Expense 0.8 pts $0.05 Fuel Impact 0.8 pts $0.04 Core Results 3.8 pts $0.18 First Quarter 2020 59.0% $2.15 13 First Quarter Income
Slide 8: First Quarter Freight Revenue and Operating Expenses
First Quarter Freight Revenue $ in Millions -2.50% $5,010 $4,880 (7.00%) 4.75% (0.25%) Volume Mix/Price Fuel Surcharge 2019 2020 15 First Quarter Operating Expenses $ in Millions -10% 3,424 $146 $97 $3,086 (12%) $55 (18%) $31 $2 $7 (10%) (12%) Flat (2%) Compensation Fuel Purchased Equipment Deprecia
Slide 9: Productivity Update and Managing Returns & Liquidity
FIRST QUARTER RESULTS Productivity Update Net Productivity of $220 Million Union Pacific is More Efficient Than During Past Recessions Car Velocity & $35 • Greater Than 100% Volume Variable in Inventory First Quarter 2020 • 1500+ Basis Points Operating Ratio Train Length $55 Improvement Since 2008/2
Slide 10: Updated 2020 Guidance
Updated 2020 Guidance Withdrawing Full Year Guidance on: Full Year 2020 • Volume • Pricing Gains in Excess of Inflation Dollars • Headcount • $400-500 Million of Productivity • Operating Ratio • Solid Free Cash Flow After Dividends Under Various Scenarios • Share Repurchases • Capital Allocation Pla
Slide 11: Looking Ahead and Cautionary Information
Looking Ahead • Committed to Employee Safety & Health • Deliver a Highly Consistent and Reliable Service Product • Strong Balance Sheet & Liquidity • Continued Unified Plan 2020 Implementation 21 Cautionary Information This presentation and related materials contain statements about the Company’s fu
Slide 12: Question & Answer Session
Question & Answer Session 23