#1TIT July 22, 2014 11:00 a.m. EDT Lockheed Martin 2nd Quarter 2014 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 22, 2014 at www.lockheedmartin.com/investor Audio replay available from 2:00 p.m. EDT July 22, 2014 through midnight July 23, 2014 Access audio replay at: 855-859-2056 U.S. & Canada or 800-585-8367 404-537-3406 International Confirmation code: 54130569 July 22, 2014#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 may differ materially due to factors such as: the availability of funding for the Corporation's products and services; changes in customer priorities and requirements including declining budgets resulting from affordability initiatives, our dependence upon U.S. Government contracts, (e.g., the F-35 program), the deferral or termination of awards, budget uncertainty arising from sequestration or Congressional actions intended to replace sequestration, U.S. Government operations under a future continuing resolution, any future shutdown of U.S. Government operations, and the success of our strategy to mitigate some of these risks by focusing on expanding into adjacent markets and growing international sales; the accuracy of the Corporation's estimates and assumptions; the effect of capitalization changes; difficulties in developing and producing operationally advanced technology systems, cyber security or other security threats, information technology failures, natural disasters, public health crises or other disruptions; the timing and customer acceptance of product deliveries; materials availability and the performance of key suppliers, teammates, joint venture partners, subcontractors, and customers; charges from any future impairment reviews that may result in the recognition of losses and a reduction in the book value of goodwill or other long-term assets; the future effect of legislation, rulemaking, and changes in accounting, tax, defense procurement, changes in policy, interpretations, or challenges to the allow ability and recovery of costs incurred under government cost accounting standards, export policy, changes in contracting policy and contract mix; the future impact of acquisitions or divestitures, joint ventures, teaming arrangements, or internal reorganizations; compliance with laws and regulations, the outcome of legal proceedings and other contingencies, and U.S. Government identification of deficiencies in the Corporation's business systems; the competitive environment for the Corporation's products and services, and potential for delays in procurement due to bid protests; the Corporation's efforts to increase the efficiency of its operations and improve the affordability of its products and services including difficulties associated with: moving or consolidating operations; reducing the size of the workforce; providing for the orderly transition of management; attracting and retaining key personnel; and supply chain management; and economic, business, and political conditions domestically and internationally (Including potential impacts resulting from tension between the international community and Russia over Ukraine) and the Corporation's increased reliance on securing international and adjacent business. Except where required by applicable law, we disclaim any duty to update these forward-looking statements. Our SEC filings (found at www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov), including, our Annual Report on Form 10-K for the year ended Dec. 31, 2013, contain more information on the types of risks and other factors that could adversely affect these statements. Chart 2 July 22, 2014#3● ● ● 2Q 2014 Overview Achieved $11.3 Billion in Sales Achieved Segment Operating Profit* of $1.4 Billion Increased Net Earnings by 3% to $889 M Increased Earnings Per Share to $2.76 Generated $977 Million in Cash From Operations Increased 2014 Outlook for Operating Profit, EPS, and Cash From Operations Chart 3 * Strong Quarter Results 4 See Chart 14 for Definitions of Non-GAAP Measures July 22, 2014#42Q Sales and Segment Operating Profit* $12.0 $9.0 $6.0 ($B) $3.0 $0.0 Chart 4 * $11.4B 2Q 2013 Sales $11.3B $2.0 $1.5 $1.0 Segment Profit *($B) $0.5 $0.0 See Chart 14 for Definitions of Non-GAAP Measures Segment Operating Profit* $1.5B 2Q 2014 2Q Results Better Than Expected 2Q 2013 4 $1.4B 2Q 2014 July 22, 2014#52Q Earnings Per Share Chart 5 $3.00 $2.00 $ EPS $1.00 $0.00 $2.64 2Q 2013 EPS 5% Increase $2.76 2Q 2014 Continued EPS Growth ☆ July 22, 2014#62Q Cash Flow ($M) Chart 6 ($M) $1,000 $500 $0 Cash From Operations $623M 2Q 2013 57% Increase $977M 2Q 2014 Strong Cash Generation... Leading to Increase in Outlook * July 22, 2014#72014 Outlook Update ($M, Except EPS) Orders Sales Segment Operating Profit* Unallocated Corp Inc / (Exp) FAS/CAS Pension Income Other, Net Operating Profit EPS Cash From Operations Chart 7 * Prior (April) $41,500 43,000 $44,000 45,500 $5,250 - 5,400 ~ 345 ~ (345) $5,250 - 5,400 $10.50 10.80 ≥ $4,700 See Chart 14 for Definitions of Non-GAAP Measures ☆ Current (July) $41,500 - 43,000 $44,000 - 45,500 $5,375 - 5,525 445 ~ (345) $5,475 - 5,625 $10.85- 11.15 ≥ $4,800 July 22, 2014#82014 Sales Outlook ($M) Sales (Prior) Aeronautics $14,600 - 14,900 Chart 8 MFC $7,500 - 7,800 Space $7,350 - 7,650 - IS & GS $7,550 - 7,850 MST $7,000 - 7,300 $44,000 45,500M Sales (Current) Aeronautics $14,600 - 14,900 MFC $7,500 - 7,800 No Change to Sales Outlook ☆ Space $7,350 - 7,650 IS & GS $7,550 - 7,850 $44,000 45,500M MST $7,000 - 7,300 July 22, 2014#92014 Segment Operating Profit* Outlook ($M) Segment Op Profit (Prior) Aeronautics $1,610 - 1,640 MFC $1,330 - 1,360 Chart 9 Space $840 - 870 IS & GS $675-705 MST $795-825 $5,250 5,400M Segment Op Profit (Current) Aeronautics $1,630- 1,660 MFC $1,330 1,360 * See Chart 14 for Definitions of Non-GAAP Measures Space & Aero Outlooks Increased ☆ Space $945-975 IS & GS $675-705 MST $795-825 $5,375 - 5,525M July 22, 2014#102014 EPS Outlook Reconciliation ☆ April 2014 Outlook Increase in Segment Operating Profit* Increase in FAS/CAS Pension Income Tax Reserve Adjustments July 2014 Outlook * See Chart 14 for Definitions of Non-GAAP Measures Chart 10 EPS $10.50 $10.80 — 0.25 ~0.20 - (0.10) $10.85 $11.15 July 22, 2014#11● Pension Trends* FAS/CAS Income Project Lower Net FAS Expense in Future Expect FAS/CAS Income in 2015 at ~2x the 2014 Level... Out Year FAS/CAS Income Significantly Above 2015 Level ● Pension Funding / Recovery Operating Cash Flow Benefit From Prefund (~$10B) Maintained 2015 & 2016 Recoveries Expected to be Sequentially Higher Than 2014 ☆ * All Subject to Assumptions Which Can Materially Change Chart 11 July 22, 2014#12Summary ● Strong Quarter and Year-to-Date Performance Results Reflect Program Execution, Proactive Measures, and Broad Business Portfolio Plan to Resume Discretionary Share Repurchases in 3rd Quarter ☆ Well Positioned For Achievement of Full Year Goals Chart 12 Continued Strong Performance... Increased Full Year Outlook July 22, 2014#13Chart 13 Financial Appendix July 22, 2014#14☆ 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. Definitions of Non-GAAP Measures Free Cash Flow Lockheed Martin defines Free Cash Flow (FCF) as Cash from Operations, less Capital Expenditures. Segment Operating Profit / Margin Segment Operating Profit represents the total earnings from our business segments before unallocated 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 "Total unallocated, net" 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. 2014 Outlook (April) $44,000 45,500 $5,250 - 5,400 11.9% $5,250 - 5,400 ($ Millions) Sales Segment Operating Profit Mid-Point Segment Margin Consolidated Operating Profit Segment Operating Profit Total unallocated, net Consolidated Operating Profit (GAAP) Chart 14 Sales $ 11,306 $ 11,306 2Q 2014 $ Profit 1,406 20 1,426 Margin 12.4% 12.6% 2014 Outlook (July) No Change $5,375 - 5,525 12.2% $5,475-5,625 Sales $ 11,408 $ 11,408 2Q 2013 $ $ Profit 1,533 (235) 1,298 Margin 13.4% 11.4% July 22, 2014#15Chart 15 July 22, 2014