#1TIT July 24, 2012 11:00 a.m. EDT Lockheed Martin 2nd Quarter 2012 Financial Results Conference Call "A LOCKHEED MARTIN TEXEEN CYBER INNOVATION + TECHNOLO Webcast login at www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. EDT July 24, 2012 at www.lockheedmartin.com/investor Audio replay available from 2:00 p.m. EDT July 24, 2012 through midnight August 7, 2012 Access audio replay at: 855-859-2056 U.S. & Canada 404-537-3406 International Confirmation code: 90095661 July 24, 2012#2Forward Looking Statements ☆ Our presentation contains "forward-looking statements" or projections based on Lockheed Martin's current expectations and assumptions. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results could differ materially due to factors such as: the availability of government funding, budgetary constraints and sequestration under the Budget Control Act of 2011; changes in customer priorities; quantity revisions to the F-35 program; return or loss on benefit plan assets, interest rates, and other changes that may affect benefit plan assumptions; the effect of capitalization changes (such as share repurchase activity, advanced pension funding, option exercises, or debt levels); 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 2011 Form 10-K and 2012 10-Qs, contain more information on the types of risks and other factors that could adversely affect these statements. 2012 Financial Results are Unaudited Chart 2 July 24, 2012#32Q Overview ● ● Grew Sales 3% Expanded Segment Operating Margin* to 12.3% in 2Q 2012 vs. 11.7% in 2Q 2011 Increased EPS From Continuing Operations By 10% Generated $845M Cash From Operations After Making $607M Pension Contribution ☆ Increased 2012 Outlook for Operating Profit, EPS, and Cash From Operations *See Charts 15-16 for Definitions of Non-GAAP Measures Chart 3 Continued Strong Performance July 24, 2012#42Q Sales Summary ($B) $4 $3 $2 $1 $0 $4 $3 $2 $1 $0 Chart 4 2Q 2011 Aeronautics 2Q 2011 IS & GS + 1% 2Q 2012 (4%) $4 $3 $2 $1 $0 $4 $3 $2 $1 $0 Electronic Systems 2Q 2011 Space + 2% 2Q 2012 2Q 2011 Total Sales Growth Of 3% ... On Track To Achieve Full Year Guidance 2Q 2012 + 18% ☆ 2Q 2012 July 24, 2012#52Q Segment Operating Margins (%) 15% 10% 5% 0% 15% 10% 5% 0% 11.7% Chart 5 Aeronautics 2Q 2011 9.0% 2Q 2011 IS & GS 13.3% 2Q 2012 9.2% 2Q 2012 15% 10% 5% 0% 15% 10% 5% 0% Electronic Systems 12.6% 2Q 2011 13.1% 2Q 2011 Space ☆ 13.6% 2Q 2012 11.8% 2Q 2012 Segment Operating Margin Increased 60 bps To 12.3% July 24, 2012#6$ EPS 2Q Earnings Per Share $3.00 $2.00 $1.00 $0.00 $2.16 Chart 6 EPS 2Q 2011 + 10% 2Q 2012 EPS-Continuing Operations *See Charts 15-16 for Definitions of Non-GAAP Measures $2.38 $ EPS $3.00 $2.00 $1.00 $0.00 Pension-Adjusted EPS* + 8% $2.57 $0.41 $2.16 2Q 2011 FAS/CAS Adjustment $2.77 $0.39 $2.38 ☆ 2Q 2012 EPS Growth Driven By Strong Operational Performance July 24, 2012#72Q Cash Flow ($M) ($M) Chart 7 $2,000 $1,500 $1,000 $500 $0 Pre-Pension Cash Flow* $1,452M $1,219M $325M Pension $894M 2Q11 Cash From Ops * See Charts 15-16 for Definitions of Non-GAAP Measures $607 M Pension $845M 2Q12 Pension Contributions Strong Cash Generation... Increased Full Year Outlook to $3.9 Billion ☆ July 24, 2012#82012 Outlook Update ($ Million, Except EPS) Sales Segment Operating Profit Unallocated Corp Inc / (Exp) FAS/CAS Adjustment Other Unallocated Expense Operating Profit EPS - Continuing Operations Cash From Operations * See Charts 15-16 for Definitions of Non-GAAP Measures Chart 8 Prior (April) $45,000 46,000 $5,075 - 5,175 ~ (835) (340) $3,900 - 4,000 $7.70 7.90 ≥ $3,800 ☆ Current (July) $45,000 - 46,000 $5,200 - 5,300 ~ (835) - (340) $4,025 - 4,125 $7.90- 8.10 ≥ $3,900 July 24, 2012#92012 EPS Outlook Reconciliation ☆ * April 2012 Outlook Segment Operating Profit Increase All Other July 2012 Outlook See Charts 15-16 for Definitions of Non-GAAP Measures Chart 9 EPS from Continuing Operations $7.70 $7.90 0.25 (0.05) $7.90- $8.10 July 24, 2012#102012 Sales Outlook ($ Million) Sales (Prior) Chart 10 Aeronautics $14,300 14,550 Electronic Systems $14,550 14,800 Space $7,550 - 7,800 B IS & GS $8,600 8,850 $45,000 46,000M Sales (Current) Aeronautics $14,100 14,350 - Electronic Systems $14,550 14,800 ☆ Space $7,750 - 8,000 IS & GS $8,600 8,850 Consolidated Sales Range Unchanged - $45,000 46,000M July 24, 2012#112012 Segment Operating Profit Outlook ☆ ($ Million) Segment Op Profit (Prior) Aeronautics $1,575 - 1,600 Electronic Systems $1,825 - 1,850 Chart 11 Space $900 - 925 IS & GS $775-800 * Segment Op Profit (Current) See Charts 15-16 for Definitions of Non-GAAP Measures Aeronautics $1,625 - 1,650 Electronic Systems $1,875 - 1,900 Space $925950 IS & GS $775-800 $5,075 - 5,175M Consolidated Operating Profit Range Increased $5,2005,300M July 24, 2012#12● ● ● Summary Strong First Half...On-Track for Solid Year Results Reflect Proactive Measures Well Positioned In Challenging Environment Third Quarter Expectations Chart 12 On-Track for Full Year Goals Achievement ☆ July 24, 2012#13Chart 13 Financial Appendix July 24, 2012#14Forward 紅咖咖咖咖咖咖咖咖咖咖咖 Chart 14 F-35 Production Status Wing Structures Wing Systems Mate Final Pre-Flight Finishes PAX NAS Dev Test EDW AFB Dev Test Eglin AFB Int Tng Ctr Total by Variant F-35A 6 9 As of 20 July 2012 15 LRIP 4 5 SDD F-35B 10 15 Flying Total Aircraft Fielded F-35C 3 LIGHTNING II F-35 3 Pre- Delivery LRIP 3 LRIP 5 Site Total 8 6 19 33 © Copyright 2012, Lockheed Martin Corporation#15Definitions of Non-GAAP Measures # Non-GAAP Financial Measures Disclosure This presentation, and today's conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While we believe that these non-GAAP financial measures may be useful in evaluating Lockheed Martin, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. In addition, our definitions for non-GAAP measures may differ from similarly titled measures used by other companies or analysts. Segment Operating Profit / Margin Segment Operating Profit represents the total earnings from our business segments before unallocated corporate income and expense, interest expense, other non-operating income and expense, and income tax expense. This measure is used by our senior management in evaluating the performance of our business segments. The caption "Unallocated Corp Inc / (Exp)" reconciles Segment Operating Profit to consolidated Operating Profit. Segment Margin is calculated by dividing Segment Operating Profit by Sales. Mid-point Segment Margin represents the mid-point of the outlook range for Segment Operating Profit divided by the mid-point of the outlook range for Sales. 2012 Outlook (April) $45,000 46,000 $5,075 - 5,175 11.3% $3,900 - 4,000 Sales Segment Operating Profit Mid-Point Segment Margin Consolidated Operating Profit Operating Profit Unallocated/Other expenses, net Segment Operating Profit Chart 15 Sales $ 11,921 $ 11,921 2Q 2012 Profit $1,200 270 $1,470 Margin 10.1% 12.3% 2012 Outlook (July) $45,000 46,000 $5,2005,300 11.5% $4,025 - 4,125 Sales $ 11,543 $ 11,543 2Q 2011 Profit Margin 8.6% 993 358 $ 1,351 $ 11.7% July 24, 2012#16ţ Pension-Adjusted Earnings Per Share Lockheed Martin defines adjusted earnings per share as GAAP earnings per share excluding the effect of the FAS AS pension adjustment. Management uses these measures as an additional means to compare and forecast the company's operating performance before the effect of the FAS/CAS pension adjustment between periods and in comparison to that of other companies within our industry as an alternative to GAAP. Definitions of Non-GAAP Measures Pre-Pension Cash Flow Lockheed Martin defines pre-pension cash flow as GAAP cash from operations plus the cash amount contributed to pension trusts. Chart 16 July 24, 2012#17Chart 17 July 24, 2012