Cautionary Information

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1 Stephens Fall Investment Conference Rob Knight, CFO November 11, 1 Cautionary Information This presentation and related materials contain statements about the Corporation s future that are not statements of historical fact, including specifically the statements regarding the Corporation s expectations with respect to economic conditions; the potential impact of weather on its operations; and its ability to generate record financial returns, improve network performance and fluidity, provide quality customer service, and provide returns to its shareholders. These statements are, or will be, forward-looking statements as defined by the Securities ct of 1933 and the Securities Exchange ct of 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 nnual Report on Form 10-K for, which was filed with the SEC on February 7,. The Corporation updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent nnual 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. 2

2 Unique Franchise Excellent Network Strategic Terminal Locations Broad Port ccess Border and Interchange Coverage Business ix Sep Revenue Intmdl 20% g 17% utos 9% utomotive Distribution Centers Intermodal Terminals anifest Terminals Ports IP 20% Coal 18% Chem 16% Border Crossings, Gateways and Interchanges 3 Strengthening g Our Franchise Seattle Bulk Eastport Portland Trans load Bulk / Crude Bulk Inter modal Oakland Crude Shale SLC Shale Rock Denver Twin Cities Omaha Duluth Frac Sand KC St. Louis Chicago Frac Sand New and Expanded Facilities Broad Geographic Coverage L Inter modal Trans load Calexico Nogales Inter modal El Paso Pipe Frac Sand Frac Sand Dallas Inter modal Bio- ass emphis New Orleans Diverse Commodities and arkets Eagle Pass Laredo Steel Coils Plastics Pipe Brownsville Houston 4

3 The Last ade 2004 to Operating Ratio EPS ROIC** 87.5% $ % points +23% CGR +9.4 points 7 Day 184K 66.1% 7 Day 176K 5.3% $ * 2004* 2004* * 2004 adjusted for asbestos pre-tax charge of $247.4 million. ** See Union Pacific website under Investors for a reconciliation to GP. 5 YTD Record Results Positives Best-Ever Records Operating Revenue Earnings Per Share* (September YTD) $3.04 $ % $4.14 Best-Ever YTD Operating Income Operating Ratio Earnings Franchise Diversity Challenges Network Performance 2012 Operating Ratio (%) (September YTD) pts 64.2 Best-Ever YTD 2012 *djusted for une 6, Stock Split 6

4 Network Performance UP Velocity (s reported to the R, in mph) Key Drivers for Improvement Good 23.7 Leverage UP Franchise Workforce dditions 4Q13 1Q14 2Q14 3Q Weekly Trend 44 New Locomotive cquisitions UP Terminal Dwell (s reported to the R, in hours) Infrastructure Investments Good 29.4 Positioned for Improvement 4Q13 1Q14 2Q14 3Q Weekly Trend Day Volume Trends Through November 4, 22,000 20,000 18,000 gricultural (+13%) * 32,000 28,000 Industrial Products (+11%) * 75,000 70,000 65,000 Intermodal (+9%) * 16,000 24,000 60,000 14,000 20,000 55,000 18,000 utomotive (+4%) * 38,000 Coal (+4%) * 24,000 Chemicals (+1%) * 16,000 34,000 22,000 14,000 30,000 WY Blizzard 20,000 12,000 26,000 18,000 * YTD vs 8

5 gricultural Trends Volume ix* Produce Exports Dairy ajor & Products Region 42% Food & Refrigerated 24% Products 34% Produce Dairy *Based on YTD Volume Through September 30, Dairy, Poultry Cattle Origination Domestic arkets Export arkets exico Cattle exico Cattle, Poultry Exports 0% (Year-over-Year Volume Change) Domestic* Export* 93% 15% 73% 8% 133% 39% 31% 4Q13 1Q14 2Q14 3Q14 *Excludes equipment shipments. 9 Shale Related Volumes Frac Sand Opportunity Potential, Continued Shale Energy Growth Potential for dditional Production Sources Opportunity to Grow with Industry Crude Oil By Rail arket Drivers Price Spreads Production Growth 72 Sand Volume by Shale (000s) CGR >30% E Eagle Ford Permian CO/WY arcellus/utica Bakken Haynesville Other Crude Oil Volume by Shale (000s) E Bakken Eagle Ford Permian Niobrara Canadian Other 10

6 Intermodal Growth Opportunities Comprehensive Network Significant Domestic Truck-Load Conversion Opportunity Truckload Opportunity Originating from exico Strong Value Proposition Competitive Service at an ffordable Price Environmental Friendliness Truck s Traditional dvantage is Eroding Regulations & Rising Costs Highway Congestion & Infrastructure 1,159 Domestic Volumes (Units in 000 s) 1, % 1,452 1,475 1,526 1, New Domestic Intermodal Services Expansion of Premium Service into New arkets Seamless Service between exico & U.S. Santa Teresa, N Facility opened pril 1, Truck-Competitive Service ccess to the largest Rail-owned Container Fleet Oakland Portland L New/Improved Service New U.S./exico Rail Service Santa Teresa (El Paso) Laredo onterrey Chicago St. Louis emphis New Orleans Houston 12

7 U.S. utos Sales Growth and Drivers Expect 16.4 illion in Sales in U.S. Light Vehicle SR* *Source: R.L. Polk *Source: IHS Global Insight October Cyclical Growth Tapering Replacement Demand vailable Credit Customer Interest in New odels Population Growth 13 Current Coal Demand Drivers Colder than Normal Winter Low Coal Stockpiles Gas bove Conversion Range Eastern Conversion $5.00 '12 76 F Powder River Basin Coal Stocks* (Days of Burn) Days of Burn 80 * Energy Ventures nalysis Normal Days of Burn S O N D '13 F 52 S O N D '14 Natural Gas Prices* (NYEX) $4.54 F 45 S 5-Year verage PRB Inventory Shortfall at 25 mm Tons $4.00 $3.00 $2.00 $1.00 $3.35 $3.92 $2.71 SPRB Conversion Range * EI F S O N D F S O N D F S

8 North merican Chemical Expansions* Plastic Resin offre, B Badlands NGL LLC North Dakota Sarnia, ON ontreal, PQ onaca, P Baytown, TX Freeport, TX Lake Charles, L Lake Charles, L Parkersburg, WV Sweeny, TX La Porte, TX Odessa, TX atur, L Plaquemine, L Expansions under construction *Publicly announced expansions La Porte, TX La Porte, TX Coatzacoalcos, VL Plaquemine, L Point Comfort, TX Corpus Christi, TX 15 exico Trends for Union Pacific 708 Volume Growth (Carloads in Thousands) % +5% % '05 '06 '07 '08 '09 '10 '11 '12 '13 UP Interchange Points Ports Ferromex (FXE) KCS Ferrosur (FSRR) New Industrial Investment Only Rail to serve all 6 ajor Gateways to/from exico 10% of Total Volumes No Physical Operations in exico 26% Ownership of FXE 16

9 Strengthening the Franchise Replacement, Growth & Productivity, and PTC Safe and Resilient Infrastructure Continued Capacity Spending Southern Region Network Strategies Equipment Purchases 261 New Locomotives ore than 400 Freight Cars 5,000 Domestic Containers Capital Spend of 16% - 17% of Revenue for * Includes cash capital, leases and other non-cash capital. Investments* & Returns** (Capital in Billions) $ % $3.2 ROIC** $3.7 $ E Infrastructure Replacement Locomotives / Equipment Capacity / Commercial Facilities Technology / Other Positive Train Control 14.7% ~$4.0 ** See Union Pacific website under Investors for a reconciliation to GP. 17 Strong Financial Position Nine onth Period Ending September 30 ($ In Billions) $4.9 $5.4 Cash from Ops Free Cash Flow* ($2.6) ($3.3) Investing ($1.0) ($1.2) $ % Total Debt* (djusted) $ % 12/31/ 9/30/ djusted Debt to Capital Dividends Solid Cash from Operations Cash Headwind from Prior Years Bonus Depreciation Increase in Capital Investment & Dividends Strong Balance Sheet Investment Grade Credit Rating djusted Debt Balance Increase of $1.7 Billion Long Term Capital Structure Targets Low to id 40 s dj. Debt-to-Cap 1.5x + dj. Debt / dj. EBITD * See Union Pacific website under Investors for a reconciliation to GP. 18

10 Delivering Value to Shareholders Q Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Cumulative Share Repurchases $1.5 lared Dividend Per Share* $3.0 $3.0 (cents) +5.7x ($ In Billions) $4.2 $5.7 $7.1 $ $11.7 Dividends: lared Dividend increase of 15% in 1Q14 and 10% in 3Q14 Dividend Payout Target of 35% Share Repurchases: Continue Opportunistic pproach Share Repurchase Program Expires. 31, Shares Remain* *s of September 30, Future llocation * *Through September 19 Growing Shareholder Value KEY DRIVERS oderate Economy Diverse Franchise Opportunities Positive Volume Growth Strong Value Proposition - Reinvestability Real Core Price Gains Volume + Pricing + Productivity Operating Ratio 60% +/- Replacement & Productivity Growth with High Returns CapEx of 16% - 17% of Revenue Increasing Cash Generation Low to id 40 s dj. Debt / Cap 1.5x + dj. Debt / dj. EBITD Strong Investment Grade Dividend Payout Target: 35% Opportunistic Share Repurchases 20

11 Question & nswer Session Rob Knight, CFO November 11, 21