#1FIXT January 24, 2013 3:00 p.m. EST Lockheed Martin 4th Quarter 2012 Financial Results Conference Call NEXE CYBER INNOVATION TEC Webcast login at www.lockheedmartin.com/investor Webcast replay & podcast available by 6:00 p.m. EST January 24, 2013 at www.lockheedmartin.com/investor Audio replay available from 6:00 p.m. EST January 24, 2013 through midnight January 27, 2013 Access audio replay at: 855-859-2056 U.S. & Canada 404-537-3406 International Confirmation code: 84084412 100 YEARS OF ACCELERATING TOMORROW#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 funding due to general economic conditions, performance, cost or other factors; changes in customer priorities and requirements, including sequestration under the Budget Control Act of 2011 or actions intended to avoid sequestration; quantity revisions to the F-35 program; accuracy of the Corporation's estimates and assumptions, including 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, accelerated pension funding, option exercises, or debt levels); charges from any future impairment reviews resulting in losses and a reduction in book value of goodwill or other long-term assets; 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 January 24, 2013 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#32012 Overview Grew Sales to $47.2 Billion ● ● ● * Expanded Segment Operating Margin* to 11.8% in 2012 vs. 11.4% in 2011 Increased Earnings Per Share From Continuing Operations in 2012 to $8.36 Generated $1.6 Billion in Cash From Operations After $3.6 Billion of Pension Contributions Achieved Backlog of $82.3 Billion Strong Performance... Strong Year See Charts 17-18 for Definitions of Non-GAAP Measures Chart 3 January 24, 2013 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#4Full Year Sales ($B) Chart 4 $50 $40 $30 $20 $10 $43.9B 2009 $45.7B 2010 $46.5B 2011 January 24, 2013 $47.2B 2012 Record Sales in Challenging Environment LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#5Full Year Sales Summary ($B) $15.0 $12.0 $9.0 $6.0 $3.0 $0.0 Chart 5 +4% Aero (6%) IS & GS +0% MFC 2011 2012 +6% January 24, 2013 MST Sales Growth From Portfolio Alignment With Customer Priorities +2% Space LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#62012 Segment Operating Results $5.5 $5.0 Segment Profit ($B) $4.5 $4.0 * Segment Operating Profit* $5.6B $5.3B $0.3B Improvement 2011 13% 11% 9% Segment See Charts 17-18 for Definitions of Non-GAAP Measures Chart 6 Margin (%) 7% 5% 3% Segment Operating Margin* 2012 2011 Program Execution and Cost Reduction Actions Driving Record Results January 24, 2013 11.4% 11.8% 40 BPS Improvement 2012 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#72012 Segment Operating Margins' (%) 20% 15% 10% 5% 0% 11.3% 11.4% Aero 9.3% 9.1% IS&GS 14.3% 16.8% MFC 2011 2012 * See Charts 17-18 for Definitions of Non-GAAP Measures Chart 7 9.0% Increased or Maintained Margins in 4 of 5 Business Areas January 24, 2013 9.7% MST 13.0% 13.0% Space LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#8$ EPS 2012 Earnings Per Share $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 $7.85 2011 EPS $8.36 2012 EPS-Continuing Operations. $ EPS * See Charts 17-18 for Definitions of Non-GAAP Measures Chart 8 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Pension-Adjusted EPS* $9.92 January 24, 2013 $9.53 $1.68 $7.85 2011 Record EPS Driven By Strong Operational Performance $1.56 $8.36 2012 FAS/CAS Adjustment LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#92012 EPS Reconciliation October 2012 EPS Outlook Range Mid-Point of Outlook Range Achieved $5,583M Segment Operating vs. $5,425M Mid-Point Reduced Manufacturing Deduction Benefit Aeronautics Severance Charge All Other (net) 2012 EPS Actual Chart 9 January 24, 2013 ☆ $8.20 8.40 $8.30 0.31 (0.18) (0.05) (0.02) $8.36 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#102012 Cash Flow ($B) Chart 10 October 2012 Guidance Actuals Before Discretionary Pension Contribution Discretionary Pension Contribution 2012 Actual Cash From Operations January 24, 2013 > $4.0B $4.1 (2.5) $1.6B LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#11Full Year Backlog ($B) Chart 11 $85 $80 $75 $70 $65 $60 $77.3B Book to Bill Ratio 0.93 $78.4B 2009 Book to Bill Ratio 1.02 $80.7B January 24, 2013 Book to Bill Ratio 1.05 $82.3B 2010 2011 2012 Achieved 2012 Book-to-Bill Ratio of 1.03... Grew Backlog to Highest Level Ever Book to Bill Ratio 1.03 4 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#122013 Guidance Assumptions Includes Continuing Resolution... Excludes Sequestration FAS/CAS Pension Adjustment Expense of ~ $(485M) Discount Rate at 4% ● ● ● - Long Term Asset Return at 8% - 2013 Contributions of $1.5B (2013 Recovery = $1.5B) Research & Development Tax Credit Included at ~ $75M Reflects 2012 + 2013 Benefit - Will Recognize ~ $45M (5/8) of Total Benefit in 1Q13 Share Count Remains Flat - Share Repurchases = Option Exercise + Issuances Chart 12 January 24, 2013 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#13* 2013 Outlook ($M, Except EPS) Sales Segment Operating Profit* Unallocated Corp Inc / (Exp) FAS/CAS Adjustment Other Unallocated Items Operating Profit EPS - Continuing Operations Cash From Operations See Charts 17-18 for Definitions of Non-GAAP Measures Chart 13 January 24, 2013 ☆ Current (Jan) $44,500 46,000 $5,175 - 5,325 ~ (485) ~ (340) $4,350 - 4,500 $8.80 - 9.10 ≥ $4,000 LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW#142013 Outlook ($M) Sales Aeronautics $14,000 14,300 Space $7,700 - 8,000 IS & GS $8,200 -8,500 MFC MST $7,400 - 7,700 $7,200 - 7,500 $44,500 46,000M * See Charts 17-18 for Definitions of Non-GAAP Measures Chart 14 January 24, 2013 Segment Op Profit* Aeronautics $1,540 - 1,570 MFC $1,250 1,280 ☐ 4 Space $930-960 IS & GS $735-765 MST $720-750 $5,175 - 5,325M LOCKHEED MARTIN 100 YEARS OF ACCELERATING TOMORROW