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Goldman Sachs Global Industrials Conference
November 2, 2011
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Cautionary Information
This presentation and related materials contain statements about the Corporation’s future that are not
statements of historical fact, including specifically the Corporation’s outlook regarding: economic conditions and growth
opportunities; future safety and operating performance; future capital investments; and its ability to generate volume
leverage, increase returns to shareholders, and attract new business. These statements are, or will be, forward-looking
statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements
also generally include, without limitation, information or statements regarding: projections, predictions, expectations,
estimates or forecasts as to the Corporation’s and its subsidiaries’ business, financial, and operational results, and future
economic performance; and management’s beliefs, expectations, goals, and objectives and other similar expressions
concerning matters that are not historical facts.
Forward-looking statements should not be read as a guarantee of future performance or results, and will not
necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-
looking information, including expectations regarding operational and financial improvements and the Corporation’s future
performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially
from those expressed in the statement. Important factors, including risk factors, could affect the Corporation’s and its
subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or
implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in
the Corporation’s Annual Report on Form 10-K for 2010, which was filed with the SEC on February 4, 2011. The Corporation
updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its
subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).
Forward-looking statements speak only as of, and are based only upon information available on, the date the
statements were made. The Corporation assumes no obligation to update forward-looking information to reflect actual results,
changes in assumptions or changes in other factors affecting forward-looking information. If the Corporation does update one
or more forward-looking statements, no inference should be drawn that the Corporation will make additional updates with
respect thereto or with respect to other forward-looking statements. References to our website are provided for convenience
and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by
reference herein.
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2006 2007 2008 2009 2010 2011
$2.05
$3.98
$4.74
Record Setting 2011 September YTD
• Volumes up 3%
• EPS = $4.74, +19%
• Operating Income up 12%
• Operating Ratio = 71.6%
– Negative Fuel Price Impact of (2.0) points versus 2010
• Free Cash Flow = $1.5B*
• Solid Service
• Strong Employee Safety
7-Day
Volume (000s)
192
175
Earnings Per Share
* See Union Pacific website under Investors for a reconciliation to GAAP.
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2008 2009 2010 2011
22.9
25.6
2008 2009 2010 2011
48,697
44,841
Continued Operating Efficiency September YTD
AAR Velocity (MPH)
Good
Manifest Grain Coal Intermdl
81 92
125
155
2008 2011
Train Size (Units)
94
167
128 +2%
88 +2%
+8%
+9%
SDI + Early
Deliveries
82
87
Total Employees (Average full-time-equivalent)
2008 2009 2010 2011
15.95
14.24
16.19 16.18
GTMs per Employee (In Millions)
Workforce down 8%
Volume down 4%
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Chemicals
2011 Business Levels
*As of 10/24/2011
Automotive
Energy
Industrial Products
Agricultural
Intermodal
TOTAL
+4%
+7%
+3%
-2%
+6%
+3%
+9%
Year-to-Date Growth*
140
150
160
170
180
190
200
210
7-Day Monthly Carloadings (000s)
2006
2010
January December
2011*
2009
October MTD 7-Day Volume*
Q1 Vol
Growth = 5%
Q2 Vol
Growth = 3%
Units (excl Intermodal) +6%
Q3 Vol
Growth = 1%
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Portland
Los Angeles
Calexico
Seattle
Brownsville
Houston New Orleans
Twin Cities
Nogales El Paso
Duluth
Oakland Omaha
Denver Salt Lake City
Kansas City
Chicago
Memphis
St. Louis
The Strength of a Unique Franchise
Fastest Growing States
Ports
Borders & Interchange
To/From
Asia
To/From
Asia
To Europe,
South America
and Africa
Industrial
16%
Agricultural
19%
Chemicals
15%
Eagle Pass
Laredo
Dallas
Eastport
Intermodal
20%
Energy
22% Autos 8%
Industrial
17%
Agricultural
18%
Chemicals
15%
Freight Revenue $13.7B Sept YTD 2011
• Diverse Business Mix
• Fastest Growing States
• Broad Port Access
• Interchange Traffic & Border Crossings
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Ferromex (FXE)
KCSM
Ferrosur (FSRR)
Short Lines
Brownsville
Nogales
Laredo
Eagle Pass
Calexico
El Paso
Hermosillo
Torreón Saltillo Monterrey
Culiacán
San Luis
Potosí
Tampico
Querétaro
Veracruz
Coatzacoalcos
Puebla
Salina Cruz
Aguascalientes
Guadalajara
Manzanillo Mexico
City
Chihuahua
Lázaro Cárdenas
Mexico Opportunities
Monclova
• Growing Population
• Faster Economic Recovery
• Favorable Macro Drivers
– Growing Near-Shoring
– Skilled Labor Base
– Rising Transpacific and Chinese Labor Costs
Business Mix ($1.3B Sept YTD 2011)
Agricultural 27%
Automotive 34%
Intermodal 10%
Industrial 19%
Energy 1%
Chemicals 9%
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7 Day Volume Trends Through October 24, 2011
14,000
16,000
18,000
20,000
22,000
Agricultural
2010
Jan Dec
2011
2009
42,000
50,000
58,000
66,000
74,000 Intermodal
2010
Jan Dec
2011
2009
34,000
36,000
38,000
40,000
42,000
44,000
46,000
Energy
2010
Jan Dec
2011
2009
– Improved World
Grain Supply Softens
U.S. Export Demand
– 4th Qtr Ag Volumes
down 5 – 6%
Going Forward
– International
Volumes Lagging
– Strong Domestic
Volumes & Highway
Conversions
– Low Stockpiles
– New Plant On-line
– CO/UT Increased
Production
October MTD 7-Day Volume
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7 Day Volume Trends (cont) Through October 24, 2011
– Continued Growth in
U.S. Auto Sales
– Recovery from
Disaster in Japan
Going Forward
– Continued Growth in
Crude Oil
– Fertilizer Rebounding
with Seasonal
Demand
– Drilling Demand
Drives Non-Metallic
Minerals and Steel
– Iron Ore Exports to
China
5,000
7,000
9,000
11,000
13,000
15,000 Automotive
2010
Jan Dec
2011
2009
10,000
12,000
14,000
16,000
18,000
20,000 Chemicals
2010
Jan Dec
2011
2009
15,000
17,000
19,000
21,000
23,000
25,000 Industrial Products
2010
Jan Dec
2011
2009
October MTD 7-Day Volume
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Global Demand for Energy Diverse Opportunities for UP
Energy Sources
• Coal
• Ethanol
• Wind
• Petroleum/LPG
• Oil Sands, Shale
Related Markets
• Frac Sand
• Pipe
• Other Materials
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Global Demand for Energy
Canadian
Oil Sands
Eagle Ford
Shale
Haynesville
Shale
Bakken
Shale
Permian
Shale
Shale Formations
Drilling Sand (Proppants)
Niobrara
Shale
To Marcellus
Shale
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UP Route (Crude) Integrated Strategy
• Frac Sand
• Minerals
• Steel
• Pipe
• Crude Oil
0.0
0.5
1.0
1.5
2.0
2.5
2010 2011 2012 2013 2014 2015
Projected Volume Growth*
* Indexed to 2010 Volumes
UP Route (Sand)
Originating Railroads
Industrial
Sand
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2011 $750M
2012 $300M
2013 $350M
2014 $100M
2015+ $500M
Pricing Gains and Opportunities
*Based on freight revenue for 12-months ended December 31, 2010
Legacy Contracts ($2 Billion Remaining)*
Remaining Legacy*
Energy ~65%
Intermodal ~25%
All Other ~10% 2007 2008 2009 2010 1Q
2011 2Q
2011 3Q
2011
6.0% 6.0%
4.5%
5.0%
4.5% 4.5% 4.5%
Core Pricing Gains
Energy
International Intermodal
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2006 2007 2008 2009 2010 2015E
81.6
79.3 77.4
76.1
70.6
192 190
180
152
172
Operating Ratio Trend
Operating Ratio (Percent)
7-Day Volume (000s)
65 - 67
Targeting a 65% to 67%
Full Year Operating
Ratio by 2015
11 point improvement from
2006 to 2010
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Infrastructure
• In 2010, rails spent a record
$10.7 billion on capital
expenditures
• UP’s 2011 capital investment
plan = record $3.3 billion
Jobs
• Freight Rails spend over $18
billion annually in wages and
benefits
• Since 2005, UP has hired
nearly 25,000 new employees
Investing in America
*AAR statistics
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Solid Financial Position September YTD ($ In Millions)
• Record Cash from Operations and Free Cash Flow
• 39% Cash Dividend Increase YTD
• Targeted Dividend Payout Ratio of 30%
• Maintain Solid Investment Grade Rating
$1,009
$1,486 $438
$607
Free Cash Flow*
Total Debt* (Adjusted)
42.5% 41.4%
* See Union Pacific website under Investors for a reconciliation to GAAP.
Adjusted Debt to Capital
$1,447
$2,093 Before Dividends
After Dividends
9/30/2010 9/30/2011
YE 2010 9/30/2011
Dividends
$13,139 $13,095
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Delivering Value to Shareholders
2007 2008 2009 2010 2011*
$1.7
$3.8
$4.4
$6.2
$7.9
Cash To Shareholders (Cumulative) (Dividends + Share Repurchases, in Billions)
• Performance Drives Dividend Increases
‒ YTD 2011* = $607 Million
– Moving Toward Target Payout Ratio
• Share Repurchases
‒ 3Q 2011 = $428 Million
‒ YTD 2011* = $1.04 Billion
‒ 31 .7 Million Shares
Remaining in Current
Authorization*
* 2011 Activity through September 30.
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Total Shareholder Return
Average Annual Total Return*
Time Frame** UP S&P 500
15 Yrs 10.9% 6.0%
10 Yrs 16.8% 3.5%
5 Yrs 19.7% 0.8%
3 Yrs 25.0% 17.4%
1 Yr 22.3% 10.9%
* Assumes dividends are reinvested in company stock
** Periods ending October 27, 2011
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Union Pacific Prospects Remain Positive
Continued
Volume
Growth
“Real”
Pricing
Gains
Ongoing
Productivity
Focus
Record
Earnings
Improved
Shareholder
Returns
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Question & Answer Session