#1ER T "A LOCKHEED MARTIN TEXBEL Lockheed Martin 1st Quarter 2012 Financial Results Conference Call April 26, 2012 3:00 p.m. EDT CYBER INNOVATION TECHNOL Webcast login at www.lockheedmartin.com/investor Webcast replay & podcast available by 6:00 p.m. EDT April 26, 2012 at www.lockheedmartin.com/investor Audio replay available from 6:00 p.m. EDT April 26, 2012 through midnight May 3, 2012 Access audio replay at: 855-859-2056 U.S. & Canada 404-537-3406 International Confirmation code: 60657726 April 26, 2012#2Forward Looking Statements 4 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 and budgetary constraints; 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 allow ability 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, contain more information on the types of risks and other factors that could adversely affect these statements. 2012 Financial Results are Unaudited Chart 2 April 26, 2012#31Q Overview ● ● ● Increased Sales 6% Expanded Segment Operating Margin* to 11.9% in 1Q 2012 vs. 11.0% in 1Q 2011 Increased EPS From Continuing Operations By 29% Generated $458M Cash From Operations After Making $505M Pension Contribution Increased 2012 Segment Operating Profit Outlook *See Chart 13 for Definitions of Non-GAAP Measures Chart 3 4 Strong Start To 2012 April 26, 2012#41Q Sales Summary ($B) $4 $3 $2 $1 $0 $4 $3 $2 $1 $0 Chart 4 1Q 2011 1Q 2011 Aeronautics IS & GS + 18% 1Q 2012 (3%) $4 $3 $2 $1 $0 $4 $3 $2 $1 $0 Electronic Systems 1Q 2011 Space 1Q 2012 1Q 2011 Total Sales Growth Of 6% ... On Track To Meet Full Year Guidance + 4% 1Q 2012 + 2% 4 1Q 2012 April 26, 2012#51Q Segment Margin Summary (%) 15% 10% 5% 0% 15% 10% 5% 0% 10.4% Chart 5 Aeronautics 1Q 2011 9.0% IS & GS 10.4% 1Q 2012 9.0% 15% 10% 5% 0% 15% 10% 5% 0% Electronic Systems 12.4% 1Q 2011 11.8% Space 15.0% 4 1Q 2012 12.0% 1Q 2011 1Q 2012 1Q 2011 1Q 2012 Margins Stable or Expanding Across all Business Areas... Improvement Driven by Electronic Systems Risk Retirement Timing April 26, 2012#6$ EPS 1Q Earnings Per Share $3.00 $2.00 $1.00 $0.00 $1.57 Chart 6 EPS 1Q 2011 + 29% 1Q 2012 EPS-Continuing Operations. *See Chart 13 for Definitions of Non-GAAP Measures $2.02 $ EPS $3.00 $2.00 $1.00 $0.00 Pension-Adjusted EPS* $1.97 $0.40 $1.57 + 22% 1Q 2011 FAS/CAS Adjustment $2.41 $0.39 $2.02 4 1Q 2012 EPS Growth Driven By Strong Operational Performance April 26, 2012#72012 Outlook Update ($ 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 Chart 13 for Definitions of Non-GAAP Measures Chart 7 Prior (Jan) $45,000 46,000 $5,025 - 5,125 - (835) (290) $3,900 - 4,000 ~ $7.70 7.90 $3,800 4 Current (April) $45,000 - 46,000 $5,075 - 5,175 ~ (835) - (340) $3,900 - 4,000 $7.70 - 7.90 ≥ $3,800 April 26, 2012#82012 EPS Outlook Reconciliation 4 EPS from Continuing Operations $7.70 - $7.90 January 2012 Outlook Increase in Segment Operating Profit Increase in Unallocated Expense Increase in Non-Operating Income Increase in Share Count April 2012 Outlook * See Chart 13 for Definitions of Non-GAAP Measures Chart 8 0.10 (0.10) 0.07 (0.07) (0.10) $7.70 $7.90 April 26, 2012#92012 Sales Outlook ($ Million) Sales (Prior) Chart 9 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 $14,300 -14,550 Electronic Systems $14,550 14,800 4 No Change to Sales Outlook Space $7,550 - 7,800 IS & GS $8,600 8,850 $45,000 46,000M April 26, 2012#102012 Segment Operating Profit Outlook ($ Million) Segment Op Profit (Prior) Segment Op Profit (Current) Aeronautics $1,575 - 1,600 Electronic Systems $1,775 - 1,800 Chart 10 Space $900 - 925 IS & GS $775-800 * See Chart 13 for Definitions of Non-GAAP Measures Aeronautics $1,575 - 1,600 Electronic Systems $1,825 - 1,850 Space $900 - 925 IS & GS $775-800 $5,025 - 5,125 M $5,075 - 5,175M Electronic Systems / Consolidated Outlook Increased April 26, 2012#11● Summary ● Strong Start to Year • Well Positioned for Full Year Goals Achievement Actions Returning Value to Shareholders and Customers Chart 11 4 Positioned for High Performance in 2012 April 26, 2012#12Chart 12 Financial Appendix April 26, 2012#13Definitions of Non-GAAP Measures 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 (Jan) $45,000 46,000 $5,025 - 5,125 11.2% $3,900 - 4,000 Sales Segment Operating Profit Mid-Point Segment Margin Consolidated Operating Profit Operating Profit Unallocated/Other expenses, net Segment Operating Profit Sales $11,293 Chart 13 $11,293 1Q 2012 Profit $ 1,009 331 $1,340 Margin 8.9% 11.9% 2012 Outlook (April) $45,000 46,000 $5,075 - 5,175 11.3% $3,900 - 4,000 Sales Profit $ 864 307 $ 10,626 $ 1,171 1Q 2011 $ 10,626 Margin 8.1% 11.0% Pension-Adjusted Earnings Per Share Lockheed Martin defines adjusted earnings per share as GAAP earnings per share excluding the effect of the FAS/CAS 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. April 26, 2012#14Chart 14 April 26, 2012