11

J. M. Carreon, Assistant Vice President – Public Affairs

9TH ANNUAL SOUTHWESTERN RAIL CONFERENCE

DALLAS, TEXAS JANUARY 24-25, 2013

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Lincoln Signs Pacific Railroad Act in 1862Lincoln Signs Pacific Railroad Act in 1862

33

Portland

LA

Houston

Denver

Omaha

Chicago

New Orleans

SLC

Twin Cities

Memphis

St. Louis

KC

1996

1995

1988

1982

1982

Mergers Expand Union Pacific’s ServiceMergers Expand Union Pacific’s Service

44

Portland

Oakland

LA

Calexico

Nogales El Paso

Seattle

Eagle Pass

SLC

Eastport

Brownsville

Houston

KC

St. Louis

Omaha

Twin Cities

Duluth

Denver

Laredo

Dallas

Memphis

Chicago

New Orleans

Union Pacific System

2011 Fast Facts• Freight Revenue $19 billion

• Route Miles 32,000in 23 states

• Employees 44,800

• Annual Payroll $4.0 billion

• Community Giving $13.9 million

• Purchases Made $8.3 billion

• Capital Spending $3.2 billion 2011

• Capital Spending $10.7billion 2006-2010

• Locomotives 8,200

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Miles of Track 7,464Annual Payroll $634 million

In-State Purchases $2.5 billionCapital Spending $530 million

Employees 7,736

UNION PACIFIC IN TEXAS 2011 FAST FACTS

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Union Pacific Hauls . . . Just About Everything

77

2007 2008 2009 2010 2011

190

175

152

172 177

2011 Business LevelsFull Year

Automotive

Energy

Industrial Products

Chemicals

Agricultural

Intermodal

TOTAL

+5%

+7%

+2%

-2%

+7%

+3%

+9%

Volume Growth(Revenue Carloads)

Energy22%

Industrial17%

Intermodal20% Agricultural

18%

Autos 8%

Chemicals15%

Revenue Mix

7 Day Carloadings

88

Replacement Growth & Productivity

PTC

$1,908

$1,084

$224

$1,920

$1,345

$335

$160

20122011

2012 vs. 2011 Capital* ($ In Millions)

2012 Capital PlanReplacement, Growth & Productivity

• $3.6+ Billion in 2012

• Safe and Resilient Infrastructure

• Increased Capacity Spending

– Santa Teresa Facility

– Southern Region Projects

• 200 New Locomotives

• Increased PTC (Positive Train Control) Spend

*Includes cash capital, leases and other non-cash capital

20122011 20122011

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Delivering Value to Customers

• Excellent service drives satisfaction

• Year-over-year improvement

• New all-time record

Customer Satisfaction Index

2005 2006 2007 2008 2009 2010 2011 2012 YTD

64

72

79

83

88 8992 93

Mexico YTD is 97

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Freight Railroads Are Critical to Our Country

• 7 large railroads21 regional railroads

~540 smaller railroads

• 140,000 miles

• 1.5 million freight cars

• 175,000 employees

• Privately owned

• Taxed

• Not government subsidized

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• 1 train takes up to 300 trucks off congested highways

• Rail is almost 4 times more fuel efficient than trucks

• UP can haul 1 ton 865 miles on 1 gallon of diesel fuel

• Rail transportation is 3 times cleaner than trucks on a ton-mile basis

Armour Yellow Outside – Green Inside

UP Genset Yard Locomotive

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UNION PACIFIC CELEBRATED ITS 150TH ANNIVERSARY JULY 2, 2012 BY CEO AND

FELLOW EMPLOYEES RINGING CLOSING BELL AT NYSE

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2012 UNION PACIFIC CELEBRATES ITS 150TH ANNIVERSARY

• All 46,000 employees were part of the 150th celebration

• 40 company hosted events

• UP hired 4,000 employees in 2012

• UP officials traveled to hundreds of towns across the country

• They celebrated with about 2 million people

• UP held more than 150 public events in various communities

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UNION PACIFIC IN MEXICO

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Portland

Los Angeles

Calexico

Seattle

Brownsville

HoustonNew Orleans

Twin Cities

NogalesEl Paso

Eagle Pass

Laredo

Eastport

Duluth

OaklandOmaha

DenverSalt Lake City

Kansas City

Chicago

Dallas

Memphis

St. Louis

The Strength of a Unique Franchise

Ports

Borders & Interchange

• Diverse Business Mix

• Fastest Growing States

• Port Access

• Mexico connectivity

Business Mix

Agricultural 19%

Autos 8%

Chemicals15%

Coal22%

Industrial16%

Intermodal20%

Coal22%

Fastest Growing States

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HermosilloChihuahua

Monclova

Torreón

SaltilloMonterrey

Culiacán

SanLuis

Potosí

Tampico

Querétaro

VeracruzCoatzacoalcos

Puebla

Salina Cruz

Aguascalientes

Guadalajara

Manzanillo

Lázaro Cárdenas

Mexico City

Mérida

Brownsville

Nogales

Laredo

Eagle Pass

Calexico

El PasoMexico Commodity Mix

Mexico … A Key Link Access to All Six Border Crossings

• Mexico connectivity

• Growing Population

• Macro Drivers Favor Mexico Production– Close proximity to U.S.

– Skilled labor pool

Agriculture27%

Autos34%

Energy1%

Industrial18%

Intermodal11%

Chemicals9%

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UP’s presence in MexicoStronger than ever

NogalesEl Paso

Eagle Pass

Laredo

Brownsville

Calexico

Ferromex

Ferrosur

Mexico City

KCSM

UP MX Access and Offices

$178 MillionInvested to Support Cross-Border Flows During Past 7

Years

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Ternium - $1,100mGM - $500m

Chrysler - $570m

GM - $300m

Nestle - $486m

Goldcorp - $1,500m

Bombardier - $147m

Tenaris-Tamsa - $850m

Intel - $177m

Ford - $1,500m

Mitsui - $480m

GM $540m OHL - $600m

Foreign Direct Investment in a Growing Economy

Holcim Apasco - $400m

Braskem/Idesa - $2,000m

P&G - $250m

Deacero - $500m

Bajio FDINissan $600mVW $550mMazda $500mEurocopter $550mIberdrola $320mPirelli $210mJatco $200mBajio

FDI

Mexico’s competitive advantagesGrowing near-shoring vs. off-shoring

1919

2020

Supporting Growth in Cross-Border Flows

• Laredo International Customer Service Center

• Through-Billing

• S/B and N/B Clearance

• Shippers/Customs Brokers

• Work with government agencies to reduce border delays

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UP SANTA TERESA FACILITY

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UP SANTA TERESA FACILITY

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UP SANTA TERESA FACILITY

• $400 million state-of-the-art rail facility on the busy Sunset Route

• 2,200 acres

• 11.5 miles long by 1 mile wide

• Intermodal ramp

• Fueling facility

• Crew change building

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UP SANTA TERESA FACILITY

• Overall impact of $500 million to NM economy

• Will create 3,000 jobs during the construction phase from 2011 to 2015

• Eventually be headquarters for more than 600 permanent jobs

• Excavated 5.94 million cubic yards of excavation

• 260 mile long double stack train

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U.S.-Mexico: One of the World’s Most Dynamic Borders – 2011 Border Crossings

• 8,366 Trains

• 61.2 Million Personal Vehicles

• 40 Million Pedestrians

• 4.8 Million Tractor-Trailers

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TRUCKS TO MEXICO AT LAREDO, TX

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MEXICO MARKETS – NATURAL FIT WITH UP FRANCHISE

• Unparalleled access to all 6 Border Interchanges

• UP Capital Investment in Border Infrastructure focused on growth and efficient and safe service

• Preferred routes

• UP Auto Network

• Border Transload Network

• Flexibility to work with either Mexican Carrier

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OUTLOOK

• Mexico will continue to be an important trading partner with the U.S.

• $460 billion in 2011

• Strong automotive sector growth

• Stable economy

• Mexico GDP in 2012 estimated at 3.5%

• Stable government - President Enrique Pena Nieto

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QUESTION AND ANSWER SESSION