Union Pacific (UNP) UBS Global Industrials and Transportation Conference summary

Operational performance and service excellence

• Achieved significant improvements in freight car dwell and velocity, focusing on process enhancements and terminal efficiency.

• Reduced car touches and increased workforce productivity through automation and operational changes.

• Maintained high service levels and outperformed industry trends despite increased volume.

• Investments in technology, such as GPS-enabled containers and RailPulse, enhance customer transparency and experience.

• Sustained a 99% car order fulfillment rate, improving customer reliability.

Strategic investments and growth initiatives

• Ongoing and planned capital investments in mainline and terminal capacity, including siding extensions and new terminals, support business development and future growth.

• Expanded intermodal capacity by one million lifts over five years, with new facilities in Kansas City and Lathrop.

• Focused on network reach through partnerships, industrial park developments, and targeting high-growth markets like San Antonio.

• Enhanced service offerings, such as reducing LA-Chicago transit by two days and launching Falcon and Eagle Premium services to and from Mexico.

• Growth in intermodal and transload facilities, as well as supply chain solutions, supports a diverse product suite.

Financial performance and outlook

• Achieved 6% volume growth in Q3 and 4% in Q4 to date, overcoming coal headwinds.

• Operating revenue, income, and net income for 2024 YTD outpace rail peers, with an industry-leading operating ratio.

• Consistently delivered price increases above inflation, with 75% of multi-year contracts repriced since 2022.

• Targeting high single-digit to low double-digit EPS growth and maintaining a dividend above 2%.

• Year-over-year volume growth is positive, with multi-year contracts comprising half of the revenue portfolio.