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Los Angeles Transportation Club
Eric Butler - April 3, 2012
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Building America… for 150 Years!Lincoln signs Pacific Rail Act in 1862Building America… for 150 Years!Lincoln signs Pacific Rail Act in 1862gg
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Positioned for GrowthA Wide Range of Opportunities
CONSUMERCONSUMER• Consumer goods• Construction materials• Industrial materials• Autos
Pl ti
FOODENERGY• Coal
• Plastics
• Food/RefrigeratedCoal• Ethanol• Wind Turbines• Shale Oil
Food/Refrigerated• Whole grains• Grain products
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The UP Value PropositionBest Franchise Seattle Eastport
Portland
Omaha
Twin Cities
Duluth/Superior
Oakland
Los Angeles
Calexico
Memphis
Denver
Dallas
St. LouisSalt Lake City
Kansas City
Calexico
NogalesEl Paso
Eagle Pass
LaredoBrownsville
Houston
New Orleans
Dallas
• Diverse Business Mix• Fastest Growing States
The BestFranchise inthe Industry
The BestFranchise inthe Industry
• Port Access• Border Crossings
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The UP Value PropositionStrategic Investment : ~17% to 18% of Revenue Annually
$15 Billion in 5 Years$37 Billion Since 1999
$3.1
$
$3.2$3.6
$2.5 $2.6
StrategicInvestmentsStrategicInvestments
The BestFranchise inthe Industry
The BestFranchise inthe Industry 2008 2009 2010 2011 2012 E
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2012 Capital PlanReplacement, Growth & Productivity
$1 908 $1 920
2012 vs. 2011 Capital* ($ In Millions)
• $3 6+ Billion in 2012 $1,908 $1,920
$1,345
• $3.6+ Billion in 2012• Safe and Resilient
Infrastructure$1,084
$160
Infrastructure• Increased Capacity
Spending
$224$335
$160
20122011
• 200 New Locomotives• Increased PTC Spend 20122011 20122011
Replacement Growth & Productivity
PTC
20122011p 20122011 20122011
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*Includes cash capital, leases and other non-cash capital
Sunset Corridor Investment
Sunset CorridorSunset Corridor Investment
• Continue Double TrackKansas City
St. Louis
ChicagoOmaha
SLC DenverJoliet
– Over 70% completion in 2012
• Build Santa Teresa LA
El Paso Ft. Worth
San AntonioTucson
Yuma
Memphis
Shreveport
Terminal– Fueling facility and new
intermodal ramp
Eagle PassHouston
San AntonioNew
Orleans
p
• Expand LA BasinYumaTucson
El Paso
PhoenixWest
Colton
LA
Santa Teresa, NMGraded Ahead
Basin
Double Track
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Union Pacific Does Not Provide Earnings Guidance. Information is Part of a Range of Planning Scenarios
LA Basin Investment
LA BasinLA Basin Investment
• Colton FlyoverState Federal UP & BNSF
To Lathrop / PortlandTo Yermovia BNSF
– State, Federal, UP & BNSF participation
• Alhambra Sub Double TrackBurbank Jct
BNSF / UP
SCRRA
ToCoast Line
Alhambra Sub
Saugus Line
Cit fLATC
Yuma Sub
Alhambra Sub DT
Colton Flyover
LATC Intermodal Expansion
UP / BNSF
Alhambra Sub Double Track– Working towards full double track
between Pomona and West ColtonRiverside
Alameda Corridor
Los Angeles Sub
To El Paso City ofIndustry
BNSFHobart
East LA
West Colton Terminal
• LATC Intermodal Expansion
• West Colton Terminal
ICTFDolores
Port of Long Beach
Port of Los Angeles
Enhancements
Enhancements
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Union Pacific Does Not Provide Earnings Guidance. Information is Part of a Range of Planning Scenarios
The UP Value PropositionExcellent Service AAR VelocityExcellent Service
26.2 26.425.7
26.5 26.2 26.124.6
25.626.4
AAR Velocity(MPH) Midwest Flooding/
Texas Drought
ExcellentServiceExcellentService
2010Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1*
2011 2012
StrategicInvestmentsStrategicInvestments
• Recovered from 2011’s Weather Challenges
The BestFranchise inthe Industry
The BestFranchise inthe Industry
• Positioned for Growth
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* Through 3/23
The UP Value PropositionInnovative Products
• Produce Railexpress
InnovativeProductsInnovativeProducts
• Plant to Port
• Vehicle co loadingExcellentServiceExcellentService
• Vehicle co-loading
• Crude Oil Trains
StrategicInvestmentsStrategicInvestments
• Wind distribution centers
C C tiThe BestFranchise inthe Industry
The BestFranchise inthe Industry
• Copper Connection
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The UP Value PropositionNorth America’s Leading Intermodal Network
• Largest Intermodal Network inLargest Intermodal Network in North America
• Most Truck-Competitive Services
• Intermodal Auto Parts Network
• Capacity for GrowthCapacity for Growth
• Flexible, Innovative Solutions– Mutual Commitment ProgramMutual Commitment Program– Streamline
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The UP Value PropositionStrong Relationship
StrongRelationshipsStrongRelationships
InnovativeProductsInnovativeProducts
ExcellentServiceExcellentService
StrategicInvestmentsStrategicInvestments
The BestFranchise inthe Industry
The BestFranchise inthe Industry
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Focusing On Creating Value for CustomersUnion Pacific’s Value PropositionUnion Pacific s Value Proposition
StrongRelationshipsStrongRelationships 92 92
Overall Customer Satisfaction
InnovativeProductsInnovativeProducts 79
8388 89
92 92
GOOD
ExcellentServiceExcellentService 64
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StrategicInvestmentsStrategicInvestments
The BestFranchise inthe Industry
The BestFranchise inthe Industry
2005 2006 2007 2008 2009 2010 2011 2012 J/F
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Focusing on Creating Value for Customers
Supplier
Customer Service On-Time Service
President’s Award forRail CarrierRail CarrierSupplierof the Year
President s Award forLogistics Excellence
Rail Carrierof the Year
Rail Carrierof the Year
Rail Carrier of the Year Rail Carrier of the YearNorth America
Supplier of the Year
Intermodal Carrier of the YearCarrier of the Year Supplier of the Year
Sf
Intermodal Carrier of the YearCarrier of the Year Supplier of the Year
C f
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Supplier Excellence AwardVendor of the Year Carrier of the Year
Working Together to Grow
• Effective communication t thsupports growth – yours
and ours!Workforce(6-9 months)
• Resourcing today for future growth
Main Lines(18-36 months)
– Long lead times for resource additions
Freight Cars(12 months)
– Permitting challenges
Terminals
Locomotives(12 months)
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Terminals(18-36 months)
Union Pacific . . .
• Focusing on creating customer value
• Providing excellent customer service
• Investing for growthOffering a wide range• Offering a wide-range of options and supportWorking together to• Working together to grow
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