Union Pacific (UNP) NYSE/Bank of America London Investor Conference summary

Strategic Vision and Operational Excellence

• Emphasis on safety, service, and operational excellence, with a 15%+ improvement in safety metrics and a 28% decline in track-related derailments over the past decade.

• Technology investments such as wayside detectors, machine vision, automation, and real-time monitoring of 50-60 key metrics enhance safety and efficiency.

• Resilience shown in recovering from major weather disruptions and launching new high-speed services, including L.A.-Chicago and cross-border Z-train offerings.

• Customer experience improvements through API solutions, container GPS, and RailPulse pilot for real-time visibility.

• Workforce and locomotive productivity increased by 1% and 10% respectively in Q1 2024.

Financial and Volume Performance

• Q1 2024 operating revenue reached $6.0B with an operating ratio of 60.7%, outperforming key competitors and showing sequential improvement for three quarters.

• Earnings per share for 2023 were $10.45, with a return on invested capital of 15.5%.

• Second quarter volumes are flat overall, with coal down nearly 25% year-over-year but offset by 17% growth in international intermodal and gains in chemicals and finished vehicles.

• $38.1B returned to shareholders from 2019-2023 through dividends and share repurchases; $1.3B in long-term debt repaid in Q1 2024, maintaining a sub-4% average interest rate.

• 2024 capital plan set at $3.4B, focusing on infrastructure, equipment, capacity, and technology.

Growth, Market Outlook, and Sustainability

• 2024 volume outlook is muted due to international intermodal softness, lower coal demand, and soft economic conditions.

• Growth opportunities in biofuels, petrochemicals, population-driven markets, and cross-border trade with Mexico, leveraging network advantages and partnerships.

• Investments in intermodal terminals, key corridors, and technology aim to capture greater truck share and support cross-border growth, especially with Mexico.

• Committed to reducing Scope 1 and 2 GHG emissions by 50.4% by 2030, with ongoing locomotive modernization and low-carbon fuel initiatives.

• Recognized for diversity, equity, and sustainability leadership with multiple industry awards.