Union Pacific Corporation · NYSE:UNP
Union Pacific — Q2 2021 Earnings Presentation
12 slides from Union Pacific's earnings presentation, Jul 22, 2021
Slide 1: Second Quarter 2021 Earnings Release
SECOND QUARTER 2021 EARNINGS RELEASE Lance Fritz – Chairman, President & CEO July 22, 2021 Second Quarter 2021 Results Earnings Per Share Operating Ratio $2.72 61.0% 59.6% $2.22 63% $1.67 vs 2020 55.1% (5.9 pts) vs 2020 23% vs 2019 (4.5 pts) vs 2019 2Q 2019 2Q 2020 2Q 2021 2Q 2019 2Q 2020 2Q 2021 Ke
Slide 2: Operations Review: Key Performance Metrics
SECOND QUARTER 2021 OPERATIONS REVIEW Eric Gehringer Executive Vice President – Operating 3 Second Quarter 2021 Key Performance Metrics FREIGHT CAR VELOCITY* INTERMODAL TRIP PLAN MANIFEST/AUTO (Daily Miles per Car) COMPLIANCE TRIP PLAN COMPLIANCE (% of Boxes On Time) (% of Cars On Time) 227 82 213 7
Slide 3: Key Performance Metrics and Network Update
Second Quarter 2021 Key Performance Metrics LOCOMOTIVE WORKFORCE TRAIN LENGTH PRODUCTIVITY PRODUCTIVITY (Max on Route, in Feet) (GTMs Per HP Day) (Daily Miles per FTE) 1,060 9,410 140 136 8,664 121 866 868 2Q 2019 2Q 2020 2Q 2021 2Q 2019 2Q 2020 2Q 2021 2Q 3Q 4Q 1Q 2Q 2020 2020 2020 2021 2021 Quarte
Slide 4: Operating Outlook
Operating Outlook • Safety First • Deliver a Highly Consistent and Reliable Service Product • Recover from Bridge Outage • Drive Productivity Initiatives • Focus on Asset Utilization and Terminal Efficiency 7 SECOND QUARTER 2021 MARKETING & SALES REVIEW Kenny Rocker Executive Vice President – Market
Slide 5: Bulk and Industrial
Bulk Revenue $1,648 (+19%) Volume 504K (+13%) ARC $3,266 (+5%) Major Markets Coal & Renewables Grain & Fertilizer Food & Grain Products Refrigerated 186 198 204 167 +6% +22% 53 54 41 48 +2% +17% 2Q 2020 2Q 2021 2Q 2020 2Q 2021 2Q 2020 2Q 2021 2Q 2020 2Q 2021 vs 1Q 2021 +14% vs 1Q 2021 Flat vs 1Q 202
Slide 6: Premium and 2021 Volume Outlook
Premium Revenue $1,625 (+50%) Volume 1,051K (+31%) ARC $1,547 (+14%) Major Markets Automotive Intermodal 878 724 +21% 173 79 119% 2Q 2020 2Q 2021 2Q 2020 2Q 2021 vs 1Q 2021 -4% vs 1Q 2021 +10% Quarterly Drivers Automotive Strong Retail Spending E-Commerce Strength Semi-Conductor Shortage 11 Volume i
Slide 7: Second Quarter Operating Ratio and EPS
SECOND QUARTER 2021 FINANCIAL REVIEW Jennifer Hamann Executive Vice President & Chief Financial Officer 13 Second Quarter Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Second Quarter 2020 61.0% $1.67 Fuel Price (2.1) pts ($0.04) Core Results 8.0 pts $1.04 2021 Real Estate Gai
Slide 8: Second Quarter Income Statement and Freight Revenue
Second Quarter Income Statement 2021 vs. 2021 vs. 2021 2020 2019 2020 2019 Operating Revenues $5,504- $4,244- 30---- % $5,596- (2)- % Operating Expenses 3,031- 2,590- 17---- 3,336- (9)- Operating Income 2,473- 1,654- 50---- 2,260- 9-- Other Income 125- 131- (5)--- 57- F-- - Interest Expense (282) (2
Slide 9: Second Quarter Operating Expenses and Efficiency Driving Results
Second Quarter Operating Expenses $ in Millions 17% $3,031 $11 $1 $49 $37 $2,590 $250 $117 13% 101% 8% (5%) Flat 21% Compensation Fuel Purchased Equipment Depreciation Other & Benefits Services & & Other Materials Rents 2020 2021 17 Efficiency Driving Results • Net Productivity of $235 Million in Fi
Slide 10: Cash Generation & Shareholder Returns; Stronger 2021 Guidance
Cash Generation & Shareholder Returns First Half Results Cash From Operations vs. • 96% Cash Flow Conversion Rate* Cash Conversion* ($ in millions) • Returned $5.4 Billion in Cash to Shareholders – Increased Dividend by 10% $4,392 $4,219 – $2.0 Billion Accelerated Share Repurchase Program 107% 96% •
Slide 11: Looking Ahead
SECOND QUARTER 2021 Lance Fritz Chairman, President & CEO 21 Looking Ahead • Commitment to Safety • Operational Excellence • Deliver a Highly Consistent and Reliable Service Product • Win with Customers • Provide Value to All Stakeholders 22
Slide 12: Question & Answer Session; Cautionary Information
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 Company’s expectations with respect to economic conditions and demand levels, its ability to im