Union Pacific Corporation · NYSE:UNP
Union Pacific — Q1 2021 Earnings Presentation
12 slides from Union Pacific's earnings presentation, Apr 22, 2021
Slide 1: First Quarter 2021 Earnings Release
FIRST QUARTER 2021 EARNINGS RELEASE Lance Fritz – Chairman, President & CEO April 22, 2021 First Quarter 2021 Results Earnings Per Share Operating Ratio $2.15 60.1% 59.0% $2.00 1.1 pts (7%) 2020 2021 2020 2021 Key Themes Strong Core Results Negative Weather & Fuel Affirm 2021 Guidance 2
Slide 2: Operations Review: Key Performance Metrics
FIRST QUARTER 2021 OPERATIONS REVIEW Eric Gehringer Executive Vice President – Operating 3 Key Performance Metrics First Quarter 2021 vs. First Quarter 2020 209 23.5 25.2 138 1,002 77 68 FREIGHT CAR FREIGHT CAR TRAIN SPEED LOCOMOTIVE WORKFORCE INTERMODAL MANIFEST/AUTO VELOCITY TERMINAL (Miles Per Ho
Slide 3: Network Changes and Operating Outlook
Network Changes Train Length • Driving Record Train Length (Max on Route, in Feet) – Completed Two 15,000 Foot Sidings with 9,500 ~850 ft 18 More Underway +10% • Network Changes 9,000 – Houston Consolidation – Switching Curtailed at North Council Bluffs Yard 8,500 8,000 5 Operating Outlook • Safety
Slide 4: Marketing & Sales Review: Bulk
FIRST QUARTER 2021 MARKETING & SALES REVIEW Kenny Rocker Executive Vice President – Marketing & Sales 7 Bulk Revenue $1,512M (-1%) Volume 466K (-2%) ARC $3,246 (+1%) Major Markets Coal & Grain & Fertilizer Food & Renewables Grain Products Refrigerated 208 203 174 175 16% (16%) 46 44 48 45 (4%) (6%)
Slide 5: Industrial and Premium Results
Industrial Revenue $1,656M (-13%) Volume 485K (-11%) ARC $3,417 (-1%) Major Markets Energy & Forest Products Industrial Metals & Specialized Chemicals & Minerals Plastics 162 174 154 146 139 140 (14%) (9%) (16%) 56 60 7% 2020 2021 2020 2021 2020 2021 2020 2021 Quarterly Drivers Production Impacted b
Slide 6: 2021 Volume Outlook; Financial Review
2021 Volume Outlook Bulk Industrial Premium Coal ? Energy Markets ? Auto Production Grain Industrial Production Tight Truck Capacity Biofuels Plastics Inventory Restocking 11 FIRST QUARTER 2021 FINANCIAL REVIEW Jennifer Hamann Executive Vice President & Chief Financial Officer 12
Slide 7: First Quarter Operating Ratio, EPS and Income Statement
First Quarter Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS First Quarter 2020 59.0% $2.15 Weather (1.6) pts ($0.16) Fuel ue Price ce ((1.0) 0) pts ($0.11)) ($0 Core Results 1.5 pts $0.12 First Quarter 2021 60.1% $2.00 13 First Quarter Income Statement $ in Millions (except E
Slide 8: First Quarter Freight Revenue and Operating Expenses
First Quarter Freight Revenue $ in Millions (5%) $4,880 $4,649 Volume Fuel Surcharge Mix/Price (0.75%) (2.00%) (2.25%) 2020 2021 15 First Quarter Operating Expenses $ in Millions (3%) $3,086 $33 $3,008 $23 $31 $15 $22 $2 (3%) (5%) (6%) (7%) Flat 7% Compensation Fuel Purchased Equipment Depreciation
Slide 9: Productivity Results; Cash Generation & Shareholder Returns
Productivity Results Net Productivity ($ in millions) • Net Productivity of $105 Million Car Velocity & Inventory $15 • Weather Resulted in a $35 Million Headwind Train Length $45 • Maintain Full-Year Productivity Outlook of at Least $500 Million Locomotive Efficiency $35 Workforce & Other Productiv
Slide 10: Affirm 2021 Guidance
Affirm 2021 Guidance • Full Year Volume Growth of ~6% • Business Mix Headwinds Continue • Pricing Gains in Excess of Inflation Dollars • $500 Million of Productivity • 150-200 Basis Points of Operating Ratio Improvement • Capital Allocation – Capital Spending < 15% of Revenue – Dividend Target Payou
Slide 11: Looking Ahead; Cautionary Information
Looking Ahead • Commitment to Safety • Operational Excellence • Deliver a Highly Consistent and Reliable Service Product • Win with Customers • Provide Value to All Stakeholders 21 Cautionary Information This presentation and related materials contain statements about the Company’s future that are n
Slide 12: Question & Answer Session
Question & Answer Session 23