UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

For purposes of this report, unless the context otherwise requires, all references herein to "UPC", "Corporation", "Company", "we", "us", and "our" shall mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which we separately refer to as "UPRR" or the "Railroad".

The Railroad, along with its subsidiaries and rail affiliates, is our one reportable business segment. Although we provide and analyze revenues by commodity group, we treat the financial results of the Railroad as one segment due to the integrated nature of our rail network.

The following tables summarize the year-over-year changes in freight revenues, revenue carloads, and ARC by commodity type:

[a] For intermodal shipments each container or trailer equals one carload.

OTHER OPERATING/PERFORMANCE AND FINANCIAL STATISTICS

We report a number of key performance measures weekly to the Surface Transportation Board (STB). We provide this data on our website at www.up.com/investor/aar-stb_reports/index.htm.

Management continuously measures these key operating metrics to evaluate our operational efficiency and asset utilization in striving to provide a consistent, reliable service product to our customers.

Railroad performance measures are included in the table below:

Train Length - Train length is the average maximum train length on a route measured in feet. Our train length was flat in the second quarter and six-month periods of 2022 compared to same periods in 2021 primarily driven by train length improvement initiatives, offset by lower international intermodal shipments.

Unfunded/(funded) pension and OPEB, net of tax cost/(benefit) of ($33) and ($21) [c]

[a] The trailing twelve months income statement information ended June 30, 2022,

is recalculated by taking the twelve months ended December 31, 2021,

subtracting the six months ended June 30, 2021, and adding the six months

incremental borrowing rate) if the property under our operating leases were

(3,807 ) Net change in cash, cash equivalents and restricted cash $ (169 ) $ (659 )

Cash used in investing activities increased in the first six months of 2022 compared to the same period of 2021 driven by increased capital investment.

The table below details cash capital investments:

Millions, for the Six Months Ended June 30, 2022 2021 Rail and other track material

Line expansion and other capacity projects 159 110 Commercial facilities

Total capacity and commercial facilities 248 172 Locomotives and freight cars [b]

[a] Other includes bridges and tunnels, signals, other road assets, and road work

[b] Locomotives and freight cars include lease buyouts of $46 million in 2022 and

$23 million in 2021. [c] Weather-related damages for the six months ended June 30, 2022 and 2021, are

Cash used in financing activities decreased in the first six months of 2022 compared to the same period of 2021 driven by an increase in debt issued and less share repurchases, partially offset by more debt repaid and higher dividends.

Free Cash Flow - Free cash flow is defined as cash provided by operating activities less cash used in investing activities and dividends paid. Cash flow conversion rate is cash provided by operating activities less cash used for capital investments as a ratio of net income.

The following table reconciles cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):

Millions, for the Six Months Ended June 30, 2022 2021 Cash provided by operating activities $ 4,167 $ 4,219 Cash used in investing activities

The following table reconciles cash provided by operating activities (GAAP measure) to cash flow conversion rate (non-GAAP measure):

Millions, for the Six Months Ended June 30, 2022 2021 Cash provided by operating activities $ 4,167 $ 4,219 Cash used in capital investments

The following table identifies material obligations as of June 30, 2022:

[a] Excludes finance lease obligations of $260 million as well as unamortized

discount and deferred issuance costs of ($1,771) million. Includes an

commitments for fuel purchases, ties, ballast, and rail; and agreements to

purchase other goods and services. [c] Includes leases for locomotives, freight cars, other equipment, and real

estate. Includes an interest component of $185 million. [d] Includes estimated other post retirement, medical, and life insurance

payments and payments made under the unfunded pension plans for the next ten

[e] Represents total obligations, including interest component of $30 million.

Accounting Pronouncements - See Note 2 to the Condensed Consolidated Financial Statements.

Asserted and Unasserted Claims - See Note 15 to the Condensed Consolidated Financial Statements.

Indemnities - See Note 15 to the Condensed Consolidated Financial Statements.

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