Union Pacific (UNP) Morgan Stanley’s 13th Annual Laguna Conference summary

Strategic vision and merger rationale

• Emphasized the importance of safety, service, and operational excellence as the foundation for growth and merger readiness.

• Highlighted the planned merger with Norfolk Southern to create a transcontinental railroad, aiming to improve service, enhance competition, and provide access to ports on both coasts and the Gulf.

• Stressed the merger is positioned as a growth play, not a cost-cutting exercise, with job guarantees for unionized employees and opportunities for labor.

• Projected the merger will benefit customers, employees, and the broader U.S. economy by increasing efficiency and competitiveness.

Operational and financial performance

• Reported best-ever freight car velocity, averaging 224 miles per day in Q3, and sub-21 hour terminal dwell times.

• Achieved high service performance indices, with manifest SPI at 100%, and strong safety improvements.

• Bulk business led growth, with coal and renewables up 15% and grain up 4%, while international intermodal volumes declined.

• Third quarter AAR volumes showed year-over-year growth in bulk and industrial segments.

• Merger-related fees and expenses totaled $50 million, and share repurchases have been paused per the merger agreement.

Merger process and regulatory outlook

• Application to the Surface Transportation Board (STB) expected within the 3–6 month window, with a collaborative, iterative approach.

• Anticipates up to a year for regulatory review post-application, aiming for approval by mid-2025.

• Confident the merger serves public interest by shifting freight from trucks to rail, reducing transit times, and maintaining customer choice.

• Addressed industry skepticism, emphasizing that consolidation offers greater synergies than partnerships or cooperation agreements.

• Forward-looking statements are subject to significant risks and uncertainties, including regulatory approvals, integration challenges, and market conditions.