JAMES D. TAICLET
Chairman, President and CEO

JAY MALAVE
Chief Financial Officer

Lockheed Martin
Corporation
1st Quarter 2023 Conference CallApril 18, 2023

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LOCKHEED MARTIN PROPRIETARY INFORMATION

Forward-Looking Statements
This presentation contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed
Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify
forward-looking statements. 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: budget uncertainty, therisk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling and the potential for government shutdowns and changing funding and acquisition priorities; the company’sreliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company’s ability to negotiate favorable contract terms; risks
related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program; planned production rates andorders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment; the timing of contract awards or delays incontract definitization as well as the timing and customer acceptance of product deliveries and performance milestones; the company’s ability to recover costs under U.S. Government contracts and the mix of
fixed-price and cost-reimbursable contracts; customer procurement policies that shift risk to contractors, including competitively bid programs with fixed-price development work or follow-on production options orother financial risks; and the impact of investments, cost overruns or other cost pressures and performance issues on fixed price contracts; changes in procurement and other regulations and policies affecting thecompany’s industry, export of its products, cost allowability or recovery, preferred contract type, and performance and progress payments policy; performance and financial viability of key suppliers, teammates,
joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers; economic, industry, business and political conditions including their effects on governmental policy; theimpact of inflation and other cost pressures; the impact of COVID-19 or future epidemics on the company’s business and financial results, including supply chain disruptions and delays, employee absences, andprogram delays; government actions that disrupt the company’s supply chain or prevent the sale or delivery of its products (such as delays in approvals for exports requiring Congressional notification); trade
policies or sanctions (including Chinese sanctions on the company or its suppliers, teammates or partners, U.S. Government sanctions on Türkish entities and persons, and potential indirect effects of sanctions on
Russia to the company’s supply chain); the company’s success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales; changes in foreign nationalpriorities and foreign government budgets and planned orders, including potential effects from fluctuations in currency exchange rates; the competitive environment for the company’s products and services,including competition from startups and non-traditional defense contractors; the company’s ability to develop and commercialize new technologies and products, including emerging digital and network technologies
and capabilities; the company’s ability to benefit fully from or adequately protect its intellectual property rights; the company’s ability to attract and retain a highly skilled workforce, the impact of work stoppages orother labor disruptions; cyber or other security threats or other disruptions faced by the company or its suppliers; the company’s ability to implement and continue, and the timing and impact of, capitalization
changes such as share repurchases, dividend payments and financing transactions; the accuracy of the company’s estimates and projections; the impact of pension risk transfers, including potential noncash
settlement charges, timing and estimates regarding pension funding and movements in interest rates and other changes that may affect pension plan assumptions, stockholders’ equity, the level of the FAS/CASadjustment, and actual returns on pension plan assets; realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market
volatility affecting the fair value of investments that are marked to market; the company’s efforts to increase the efficiency of its operations and improve the affordability of its products and services, including
through digital transformation and cost reduction initiatives; the risk of an impairment of the company’s assets, including the potential impairment of goodwill recorded at the Sikorsky line of business; the availability
and adequacy of the company’s insurance and indemnities; impacts of climate change and compliance with laws, regulations, policies, and customer requirements in response to climate change concerns; changes
in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application and changes in the amount or reevaluation of uncertain tax positions; and the outcome of legal
proceedings, bid protests, environmental remediation efforts, audits, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government
identification of deficiencies in its business systems. These are only some of the factors that may affect the forward-looking statements contained in this presentation. For a discussion identifying additional
important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including,but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2022 andsubsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by theSEC at www.sec.gov. The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not
be relied on in making investment decisions. The forward-looking statements contained in this presentation speak only as of the date of its filing. Except where required by applicable law, the company expressly
disclaims a duty to provide updates to forward-looking statements after the date of this presentation to reflect subsequent events, changed circumstances, changes in expectations, or the estimates andassumptions associated with them. The forward-looking statements in this presentation are intended to be subject to the safe harbor protection provided by the federal securities laws.

1Q Earnings Results Conference Call2

1Q 2023 Results
Solid Financial Results$15.1B$1.7B

In SalesSegment OperatingProfit*

11.1%

$6.61

0.7x

Segment Operating Margin*

Earnings Per Share

Book-to-Bill
Ratio*

$1.3B

$0.5B

$0.8B

$0.6B

Delivered in Free Cash Flow*

Of Share Repurchases

In Dividends

Of Independent
Research &Development andCapital Expenditures

Strategic Capital Deployment*See Charts 14 & 15 for Definitions of Non-GAAP Measures and Other Performance Metrics
1Q Earnings Results Conference Call3

1Q 2023 Results
Segment Operating Profit* ($M)

Sales ($M)

$15,126$14,964

1Q 2022

1Q 2023$1,718

1,682

11.5%

11.1%

1Q 2022

1Q 2023

1Q On Track with Full Year Expectation*See Charts 14 and 15 for Definitions of Non-GAAP Measures
1Q Earnings Results Conference Call4

1Q 2023 Earnings Per Share (EPS) Comparison
$6.61
$6.44

$0.18

$0.01

$6.43
GAAP EPS$6.43(+) Volume(-) Margin(-) FAS/CAS(-) Interest Expense(+) Reduced Share Count

Adjusted EPS*

1Q 2022

11.5%

1Q 2023

Favorable Volume and Share Count offset Margin, Pension and Interest Headwinds*See Charts 14 and 15 for Definitions of Non-GAAP Measures
1Q Earnings Results Conference Call5

1Q 2023 Cash Returned to Shareholders($M)$1,284$1,270$2,741$784
Dividends

101%$500

Free Cash Flow*

ShareRepurchases

Cash Returned

101% of Free Cash Flow Returned in 1Q 2023
*See Charts 14 and 15 for Definitions of Non-GAAP Measures
1Q Earnings Results Conference Call

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Aeronautics
Segment Operating Profit* ($M)

Sales ($M)
$6,401$6,269

$679

$675

10.6%

10.8%
F-16 Bahrain
Delivery

1Q 2022

1Q 2023

1Q 2022

1Q 2023*See Charts 14 and 15 for Definitions of Non-GAAP Measures

1Q 2023 Drivers
Sales: Decreased 2% YoY
Lower F-35 Production Volume
Higher F-16 Production Volume
Higher Classified Volume

1Q Earnings Results Conference Call

Operating Profit: Comparable YoY
Lower Net Profit Adjustments and Sales
Volume, Partially Offset by Contract Mix

7

Missiles and Fire Control
Sales ($M)

Segment Operating Profit* ($M)

$2,452$2,388

1Q 2022

1Q 2023

$385

$377

15.7%

15.8%

1Q 2022

1Q 2023*See Charts 14 and 15 for Definitions of Non-GAAP Measures

PAC-3 MSE to Poland

1Q 2023 Drivers
Sales: Decreased 3% YoY
Lower Sensors & Global
Sustainment andTactical Strike Missiles,
Partially Offset byIntegrated Air & Missile Defense
1Q Earnings Results Conference Call

Operating Profit: Decreased 2% YoY
Lower Sales Volume and Net Profit
Adjustments, Partially Offset by Favorable
Contract Mix8Rotary and Mission Systems
Segment Operating Profit* ($M)

Sales ($M)

$3,552$3,510$406

11.4%$350

10.0%
Australia Orders 40
UH-60M Black Hawks

1Q 2022

1Q 2023

1Q 2022

1Q 2023*See Charts 14 and 15 for Definitions of Non-GAAP Measures

1Q 2023 Drivers
Sales: Decreased 1% YoY
Lower Volume on Black Hawk
Production and C6ISR,
Partially Offset by Volume in
Integrated Warfare Systems &Sensors
1Q Earnings Results Conference Call

Operating Profit: Decreased 14% YoY
Lower Sales Volume and Timingof Net Profit Rate Adjustments

9Space
Segment Operating Profit* ($M)

Sales ($M)

$2,959$2,559$248

9.7%

1Q 2022

1Q 2023

1Q 2022$2809.5%

1Q 2023*See Charts 14 and 15 for Definitions of Non-GAAP Measures

1Q 2023 Drivers
Sales: Increased 16% YoYHigher Volume on NGI,Classified, and Orion, Protected
Communications and Fleet
Ballistic Missile Programs
1Q Earnings Results Conference Call

Operating Profit: Increased 13% YoYHigher Favorable Profit Adjustments,
Partially Offset by Lower ULA Equity Income

JP 9102 Down-Selected
In Early April

102023 Outlook($M), Except for EPS

April Outlook

Sales$65,000 - 66,000

Segment Operating Profit*$7,255 – 7,355

Total FAS / CAS Pension Adjustment~$2,100~$26.60 – 26.90

Diluted EPS
Cash From Operations≥ $8,150

Capital Expenditures~($1,950)

Free Cash Flow*≥ $6,200

Share Repurchases~$4,000

Reaffirm FY Outlook provided in January*Effective Jan. 1, 2023, purchased intangible asset amortization expense, which was previously included in segment operating profit, will be reported in unallocatedcorporate expense within operating income. See Charts 14 and 15 for Definitions of Non-GAAP Measures.
See the company’s first quarter earnings release for a description of the assumptions on which the 2023 Outlook is based.
1Q Earnings Results Conference Call11

Summary• Solid Start to the Year• 2023 Financial Expectations Reaffirmed• Return to Growth Expected in 2024 and beyond• Commitment to Free Cash Flow Per Share Growth• Initial 2024 Defense Budget Request Signals Strong Support• 21st Century Security Solutions Complement
Defense Outlook

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Definitions of Non-GAAP Measures
Non-GAAP Financial Measures DisclosureThis presentation, and today’s conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as defined by SEC Regulation G). While management
believes that these non-GAAP financial measures may be useful in evaluating the financial performance of Lockheed Martin, this information should be considered supplemental and is not a substitute forfinancial information prepared in accordance with GAAP. In addition, the company’s definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies oranalysts.
Free Cash Flow (non-GAAP)Free cash flow is cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs
for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in
the company's annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after
reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or otherinvestments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repaymentof maturing debt and pension contributions.

$M
Cash from Operations (GAAP)
Capital Expenditures

1Q 2023
1,564(294)2023 Outlook≥8,150~(1,950)

Free Cash Flow (non-GAAP)

1,270≥6,200

Segment Operating Profit Margin (non-GAAP)
Segment Operating Profit represents operating profit from the company’s business segments before unallocated income and expense. This measure is used by the company’s senior management inevaluating the performance of the company’s business segments and is a performance goal in the company’s annual incentive plan. The table below reconciles Business Segment Operating Profit toConsolidated Operating Profit. Business Segment Operating Margin is calculated by dividing Segment Operating Profit by Sales. For 2023 forward, intangible amortization expense will be reclassified
from segment operating profit into unallocated items. Results below for 2022 reflect this amortization expense in segment operating profit.

$M
Business segment operating profit (non-GAAP)FAS/CAS operating adjustment
Purchased intangibles amortization
Other, net
Total Unallocated Items
Consolidated operating profit (GAAP)
1Q Earnings Results Conference Call

1Q 2023
Profit
1,682415(62)2355
15,126
2,037

Sales
15,126

Margin
11.1%

13.5%

1Q 2022
ProfitMargin1,718
11.5%
426(62)(149)
215
14,964
1,933
12.9%

Sales
14,9642023 Outlook
Profit~$7,255 - $7,355~1,660~(245)~(325)
1,090~$65,000 - $66,000 ~$8,345 - $8,445

Sales~$65,000 - $66,000

Margin~11.2%~12.8%
14

.

Definitions of Non-GAAP Measures

Adjusted Earnings Per Share (non-GAAP)
Diluted earnings per share (EPS) was impacted by certain non-operational charges for all periods. Management believes the presentation of this measure adjusted for the impacts of these non-operational
items is useful to investors in understanding the company’s underlying business performance and comparing performance from period to period. The tax effects related to each adjustment that impacted
earnings before income taxes are based on a blended tax rate that combines the federal statutory rate of 21% plus an estimated state tax rate.

Diluted EPS
As Reported (GAAP)
Mark-to-market investments gains
As Adjusted (Non-GAAP)$$1Q 2023
6.61(0.18)
6.43

$
$

1Q 2022
6.44(0.01)
6.43

Book-to-Bill Ratio
The ratio of orders received to sales recorded for a specified period.

1Q Earnings Results Conference Call15

Appendix I
2023 Outlook ($M)
Sales~$65,000 – 66,000

Segment Operating Profit*~$7,255 – 7,355

Segment Margin*~11.2%

FAS/CAS Operating Adjustment**~$1,660

Other, net~($570)

Consolidated Operating Profit
Non-Operating FAS Pension Income**~$8,345 – 8,445~440Interest Expense~($840)

Effective Tax Rate

~15.2%

Diluted EPS~$26.60 – 26.90

Pension Contribution$0

Share Repurchases~$4,000*See Charts 14 and 15 for Definitions of Non-GAAP Measures.
**See Chart 18 for Pension Detail
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Appendix II
2023 Outlook ($M)
Sales

Segment
Operating Profit *Aeronautics$26,500 – 26,800$2,775 – 2,805

MFC

11,150 – 11,350

1,510 – 1,530

RMS

15,800 – 16,100

1,880 – 1,910

SPACE

11,550 – 11,750

1,090 – 1,110

LM Total$65,000 – 66,000$7,255 – 7,355*See Charts 14 and 15 for Definitions of Non-GAAP Measures.

Segment Outlook Consistent with Expectations provided in January
1Q Earnings Results Conference Call17Appendix III
2023
Outlook
Total FAS income (expense) and CAS costs
FAS pension income
Less: CAS pension cost
Total FAS/CAS pension adjustment~ $ 375~
1,725~ $ 2,100

Service and non-service cost reconciliation
FAS pension service costLess: CAS pension cost
FAS/CAS operating adjustment
Non-operating FAS pension income
Total FAS/CAS pension adjustment~ $ (65)~1,725
~
1,660
~
440
~ $ 2,100

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