#1WA WITT Lockheed Martin 2nd Quarter 2011 Financial Results Conference Call July 26, 2011 11:00 a.m. EDT "A LOCKHEED MARTIN W Webcast login at www.lockheedmartin.com/investor Webcast replay & podcast available by 3:00 p.m. EDT July 26, 2011 at www.lockheedmartin.com/investor Audio replay available from 2:00 p.m. EDT July 26, 2011 through midnight August 2, 2011. Access audio replay at: 800-642-1687 U.S. & Canada 706-645-9291 International Confirmation code: 73143516 July 26, 2011#2Forward Looking Statements 4 Our presentation contains "forward-looking" statements or projections based on current expectations. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to: the availability of government funding due to budgetary or debt ceiling constraints; changes in customer priorities; additional costs or schedule revisions to the F-35 program that may result from re-planning of the restructured program; return or loss on benefit plan assets, interest and discount rates, and other changes that may affect benefit plan assumptions; the effect of capitalization changes (such as share repurchase activity, advance pension funding, option exercises, or debt levels) on earnings per share; the allowability of costs under government cost accounting standards; the outcome of legal proceedings; the future impact of acquisitions, divestitures or joint ventures; the timing and availability of future government awards; economic, business and regulatory conditions and other factors. We disclaim any duty to update forward-looking statements to reflect new developments. Our SEC filings (found at www.lockheedmartin.com or at www.sec.gov), including our 2010 Form 10-K and 2011 Form 10-Q, contain more information on the types of risks and other factors that could adversely affect these statements. 2011 Financial Results are Unaudited. Chart 2 July 26, 2011#32Q Overview • Grew Sales 2% • Increased EPS From Continuing Operations By 11% Generated Nearly $850 Million in Cash From Operations Repurchased 13 Million Shares Chart 3 Strong Execution ... Strong Quarter July 26, 2011#42Q Sales Summary ($Billion) $4.0 $3.0 $2.0 $1.0 $0.0 $4.0 $3.0 $2.0 $1.0 $0.0 Chart 4 Aeronautics 2Q 2010 2Q 2010 IS&GS + 9% 2Q 2011 (6%) 2Q 2011 $4.0 $3.0 $2.0 $1.0 $0.0 $4.0 $3.0 $2.0 $1.0 $0.0 Electronic Systems 2Q 2010 2Q 2010 Space +6% 2Q 2011 (3%) 4 2Q 2011 Total Sales Growth of +2%... On Track For Full Year July 26, 2011#5$ EPS 2Q Earnings Per Share $3.00 $2.00 $1.00 $0.00 Chart 5 $1.92 EPS + 11% 2Q 2010 $2.14 2Q 2011 EPS-Continuing Operations $ EPS *See Charts 16-17 for Definitions of Non-GAAP Measures $3.00 $2.00 $1.00 $0.00 Pension-Adjusted EPS + 21% $2.10 $0.18 $1.92 2Q 2010 FAS/CAS Adjustment $2.55 $0.41 Operational Performance Driving EPS Growth 4 $2.14 2Q 2011 July 26, 2011#6Share Repurchase Activity 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 (M) Chart 6 Share Repurchases 3.5M Shares $0.3B 13.0M Shares 1Q 2011 $1.0B (M) 500 400 300 200 100 0 Share Count 344.9M (3%) 2Q 2011 1Q 2011 2Q 2011 Share Repurchases (M) Balance Sheet Shares (M) Strong Share Repurchase Activity Continued Reduction in Outstanding Share Count 333.2M III 4 July 26, 2011#7(M) 2Q Share Repurchases (Million) 20.0 15.0 10.0 5.0 0.0 Chart 7 9.7 M 2Q 2010 13.0 M 2Q 2011 (M) 20.0 15.0 10.0 5.0 0.0 16.2 M 16.5 M 2Q YTD 2010 2Q YTD 2011 Share Repurchases (M) Strong 2Q Share Repurchases ... Ahead of 2010 YTD Pace July 26, 2011#82Q YTD Cash From Operations ($Billion) $3.5 ($B) Chart 8 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Free Cash Flow Cash Flow From Operations $2.5B $0.2B $2.3B Free Cash Flow 2Q YTD 2011 Capital Expenditures $1.8B $1.3B Share Repurchases $0.5B Dividends Free Cash Flow Returned = 80% 2Q YTD 2011 Dividends Share Repurchases. *See Charts 16-17 for Definitions of Non-GAAP Measures Robust Cash Returned to Shareholders July 26, 2011