1 A Union Pacific Company Auction Academy – October 10, Grapevine, TX Introduction to ShipCarsNow & Rail Transportation

2 A Union Pacific Company Agenda  Union Pacific Overview  ShipCarsNow Value Proposition  How Does Rail Work?  Ramp/Auction Locations  Rail and the Environment  Summary  Next Steps/Action Items

3 A Union Pacific Company Union Pacific Overview  Celebrated 150 Year Anniversary in 2012  Largest United States Railroad  32,000 miles of track in 23 states  46,500 Employees  FORTUNE 200 Company (#138)  Transported over 5 Million vehicles in 2013  2013 FORTUNE Most Admired Transportation Provider  Ford – “Go Further Award”  GM – Supplier of the Year  Toyota – Logistics Excellence Awards  Nissan – Success Story / WWL – Rail Carrier of the Year  Chrysler – Service Excellence

4 A Union Pacific Company To/From Asia Industrial 16% Agricultural 19% Chemicals 15% 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 Fastest Growing States Ports Borders & Interchange To/From Asia To Europe, South America and Africa Eagle Pass Laredo Dallas Eastport Intermodal 20% Coal 19% Autos 10% Industrial 18% Agricultural 16% Chemicals 17% Freight Revenue $20.7B in 2013 Diverse Business Mix Fastest Growing States Broad Port Access Interchange Traffic & Border Crossings

5 A Union Pacific Company Vehicle Lifecycle and Supply Chain Agility JIT Cross Dock Customs Expertise Network Extension Boxcars Containers Multilevel Availability Visibility Technology Quality Handling Distribution Facilities Dealer Delivery Steel Plastics Soda Ash … Reduce time and cost to market Move up the supply chain Innovative products Serve non-traditional rail customers Subsidiaries add value Tier Suppliers ~3,000 Tier Suppliers ~3,000 Vehicle Assembly 14-16M SAAR Vehicle Assembly 14-16M SAAR Dealers Wholesalers Consumers ~3x SAAR Transactions Dealers Wholesalers Consumers ~3x SAAR Transactions Raw Materials Scrap Production Auto Parts Delivery Finished Vehicle Delivery Used Vehicle Delivery Aftermarket Auto Parts Delivery Door-to-Door Online Market Unique Product Offering Aging Vehicle Repairs OTR Conversions

6 A Union Pacific Company ShipCarsNow Value Proposition  Only multi-modal used vehicle transportation broker  Subsidiary of Union Pacific Railroad, the largest vehicle transportation provider  Relationships with all Class I Railroads in US  Exclusive capability to rail co-load new and used autos  History and experience coordinating used automotive shipping via rail  Other Service Offerings (We’re Not Just Rail)  Work with 1,800+ Trucking Companies Nationwide  Drive-away  Flatbed  Drop Lots  Robust Operations Platform and Online eStore  24x7 Bilingual Operations Center in Omaha, NE  Outsourced Call Center – Accurate Communications

7 A Union Pacific Company 1.We pick up the vehicle from the dealership, auction, or other location – with an auto hauler 2.We deliver it to the nearest rail ramp 3.We inspect, park then load the vehicle on a fully-enclosed rail car –8-10 trucks/SUVs/minivans are loaded on a bi-level rail car –14-15 passenger cars are loaded on a tri-level rail car 4.We “rail” the vehicles from that rail ramp to the rail ramp nearest the requested destination 5.We deliver the vehicle from the rail ramp to the requested location 6.Or, we can customize our services to meet your needs How Does Rail Work?

8 A Union Pacific Company Rail Car Specifications Tri-Level Rail Car Dimensions Bi-Level Rail Car Dimensions passenger cars 8-10 SUVs, Minivans, Trucks, or Cars 61” 58” 59” 89’ 19’ 3” 5” 90” 84” 89’ 19’ 3” 5”

9 A Union Pacific Company ShipCarsNow – Multi-Modal Provider Direct Truck – We are a truck broker, so depending on geography or number of vehicles, we can offer this to meet any and every need; generally mile per day transit. Door to Door – full-service multi-modal option, easy for the customer. Most comparable to truck from a customer service standpoint. Rail can take slightly longer in transit, but provides cost savings. Ramp to Ramp – customers who prefer to drop off their vehicle can take advantage of this option to save money on the origin shuttle to the rail ramp and the destination shuttle from the rail ramp. Door to Ramp / Ramp to Door – offers flexibility based on the customer’s needs. Drive-away – short hauls or unique moves

10 A Union Pacific Company Automotive Rail Ramps  Access to key U.S. growth markets  Vehicle consolidation centers  Marshalling Services  Inspections  Fully lighted  Fenced  24 hour security  Paved surfaces  Independent quality audits by American Association of Railroads (AAR)

11 A Union Pacific Company

12 A Union Pacific Company Rail and the Environment  Rail transportation 4 TIMES more fuel efficient than truck  A single train can carry as much freight as 800-1,200 VINs, equal to truck loads  Union Pacific saved more than 27 million gallons of diesel fuel in 2010 compared to 2009  Since 2000, fuel efficiency has improved by 19 percent  US EPA – all freight railroads contribute less than 1 percent of the greenhouse gas emissions; this compares to 5.8 percent for trucking.  If just 10 percent of the long distance freight that currently moves by highway switched to rail, annual greenhouse gas emissions would fall by approximately 12 million tons.  Union Pacific and ShipCarsNow are SmartWay Transport Partners

13 A Union Pacific Company Summary: Why Team With Us?  Rail provides economies of scale and convenience  Extensive auto terminal network to complement auction network and properties  A strong brand that our customers trust  Recognized industry leader in quality auto transportation by auto manufacturers and industry professionals  Treating people right, ethical business conduct, reputation and integrity matter to us - - its part of our Union Pacific DNA  Customer satisfaction is the foundation for our business  Robust IT capabilities, capital, and resources to support advanced and ongoing integration needs

14 A Union Pacific Company QUESTIONS OR COMMENTS ???