WelcomeWelcome Lockheed Martin Investor Conference Orlando, FL November 7, 2008 LMT Investor Conference Orlando 11_07_08 1 Forward Looking Statements Our presentation contains “forward-looking” statements or projections based on current expectations. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to: the availability of government funding and budgetary constraints; changes in customer priorities; the impact of economic recovery and stimulus plans and continued hostilities in Iraq and Afghanistan on funding for defense programs; program and contract performance; return or loss on benefit plan assets, interest and discount rates, and other changes that may impact benefit plan assumptions; the timing and availability of future government awards; the outcome of legal proceedings; the future impact of acquisitions, divestitures or joint ventures; 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 2007 Form 10-K and 2008 Form 10-Qs, contain more information on the types of risks and other factors that could adversely affect these statements. 2008 Financial Results are unaudited. LMT Investor Conference Orlando 11_07_08 2 Agenda Electronic Systems Overview Chris Kubasik Ken Possenriede Missiles & Fire Control Air & Missile Defense Mike Trotsky Fire Control & Situational Awareness Tom Simmons Maritime Systems & Sensors Littoral Combat Ship Dan Schultz Sea-Based Missile Defense Orlando Carvalho Systems Integration – Owego VH-71 Presidential Helicopter Jeff Bantle Joint Light Tactical Vehicle Steve Ramsey Simulation Training & Support Doug Greenlaw LMT Investor Conference Orlando 11_07_08 3 LMT Investor Conference Orlando 11_07_08 4 ElectronicElectronic SystemsSystems OverviewOverview Chris Kubasik Executive Vice President LMT Investor Conference Orlando 11_07_08 1 Information Aeronautics Electronic Systems & Space Systems Global Services Systems LMT Investor Conference Orlando 11_07_08 2 Electronic Systems at a Glance Atomic Weapons Canada Canada Establishment Maritime Systems & Sensors Kanata, Ontario Montreal, Quebec Aldermaston Syracuse, NY LM UK INSYS Ampthill Maritime Systems Systems Integration - Owego Missiles and Fire Control & Sensors Owego, NY Chelmsford, MA Bothell, WA Maritime Systems & Sensors Maritime Systems UK Integrated Systems Simulation, Training & Support & Sensors Havant Eagan, MN Marion, MA Missiles and Fire Control Archbald, PA Maritime Systems & Sensors Maritime Systems Mitchel Field, NY Sandia National Laboratories & Sensors Livermore, CA Maritime SystemsSimulation, Training & Maritime Systems Support & Sensors & SensorsAkron, OH Moorestown, NJ Electronic Systems HQ Advanced Technology Labs Bethesda, MD Cherry Hill, NJ SandiaMoorestown, National Laboratories NJ Maritime Systems Simulation, Training & Support & Sensors Maritime Systems Albuquerque, NM Baltimore, MD & Sensors Simulation, Training & Support Missiles and Fire Control Irvine, CA Washington, DC Camden, AR Maritime Systems Simulation, Training & Support & Sensors Huntsville, AL Manassas, VA Missiles and Fire Control Grand Prairie, TX Missiles and Fire Control Maritime Systems Ocala, FL & Sensors Missiles and Fire Control Adelaide Missiles and Fire Control Missiles and Fire Control El Paso, TX Troy , AL Simulation, Training & Support Orlando, FL Missiles and Fire Control Simulation, Training Maritime Systems Lufkin, TX Maritime Systems & Support & Sensors & Sensors Perth Sites with more than 100 employees Clearwater, FL Riviera Beach, FL Lockheed Martin Electronic Systems Maritime Missiles & Systems Simulation, Energy Systems & Fire Control Integration- Training & (Sandia, Sensors Owego Support AWE) LMT Investor Conference Orlando 11_07_08 4 Electronic Systems Priorities Growth Reputation Innovation People LMT Investor Conference Orlando 11_07_08 5 Growth Core Domestic DoE, Coast Guard, Civil, Other U.S. Air Force U.S. Army U.S. Navy, Marine Corps LMT Investor Conference Orlando 11_07_08 6 Growth International Growing to >30% of Sales LMT Investor Conference Orlando 11_07_08 7 Growth Adjacent and White Space Aligned with National Imperatives Critical Renewable Education Healthcare Infrastructure Energy Protection Port Security, Solar Training & Training & Surveillance, OTEC Simulation Simulation Critical Asset Protection LMT Investor Conference Orlando 11_07_08 8 Opportunities • PAC-3 • THAAD UAE • CSAR-X • LCS • Tactical Ground Vehicles • DDG 51 Continuation LMT Investor Conference Orlando 11_07_08 9 Reputation Program Performance Favorable Media Coverage Now 89% Now 81% • Satellite Shootdown Now 67% • YTD Mission Success at 100% Now 36% • Introducing Additional Customer Was 46% Was 46% LCS VH-71 Feedback Mechanisms Was 33% Was 12% JASSM Deepwater Integrity and Accountability Corporate Responsibility Lockheed Martin “pulled this • 220,000 Volunteer Hours kick-ass missile out of the fire.” (October 7, 2008) • Focus on STEM Education, Secretary Sue Payton Mentoring “One of our best programs at Eglin.” • $6.6M in Employee, Maj. Gen. David Eidsaune Company Contributions Solid Reputation a Pillar for Growth LMT Investor Conference Orlando 11_07_08 10 Innovation Technology Unmanned Vehicles • $250M in 2008 IRAD K-MAX • CRAD Exceeds IRAD • Nanotechnology Partnership with Rice University Remote Squad Mission Minehunting Support System System Energy DDG-51 • Utility-Scale Solar • Aegis Modernization Under Way • Ocean-Thermal Energy • Open Architecture Implementation Conversion • FY09 Appropriation for • Portable Power DDG-51 Continuation Innovation as an Enabler LMT Investor Conference Orlando 11_07_08 11 People Christopher E. Kubasik Executive Vice President Company Presidents Dale P. Bennett James F. Berry Thomas O. Hunter Marillyn A. Hewson Fred P. Moosally Simulation, Training Missiles & Fire Sandia National Systems Integration - Maritime Systems & Support Control Laboratories Owego & Sensors Kenneth R. Possenriede Russ E. Frew Yvonne O. Hodge Patrick M. Dewar Michael O. Gordon VP, Finance & VP, Technology CIO & VP, Quality VP, Business VP, Operations and Functional Business Operations & Mission Success Development Supply Chain Management Staff Joseph A. Petrone Peter A. Harrigan Stephen M. Piper Srinivas Dixit VP, Human VP, Communications VP, General Counsel Director, Ethics and Resources Business Conduct LMT Investor Conference Orlando 11_07_08 12 Today’s Presentations Missiles and Fire Maritime Systems & Systems Integration- Simulation, Training Control Sensors Owego & Support Air & Missile Defense Littoral Combat Ship VH-71 Simulation, Training, Mike Trotsky Dan Schultz Jeff Bantle Logistics and Sustainment Doug Greenlaw Sensors Sea-Based Missile Defense Joint Light Tactical Vehicle Tom Simmons Orlando Carvalho Steve Ramsey Key Growth Areas in 1,500-Program Portfolio LMT Investor Conference Orlando 11_07_08 13 Summary • Executing Growth Strategy • Reputation Has Improved • Cultivating Innovative Solutions • Growing Our People Positioning for Sustained, Long-Term Growth LMT Investor Conference Orlando 11_07_08 14 LMT Investor Conference Orlando 11_07_08 15 ElectronicElectronic SystemsSystems OverviewOverview Ken Possenriede Vice President, Finance & Business Operations LMT Investor Conference Orlando 11_07_08 1 ES Annuity Programs ($B) TD → SDD → LRIP → Production (U.S.) → Production (Int’l) Sustainment ‘70 ‘75 ‘80 ’85 ’90 ’95 ’00 ’05 ‘10 Aegis/SBMD MLRS Apache FC LANTIRN/Sniper PAC-3 THAAD MH-60 AGMS ~$64B Sales To Date LMT Investor Conference Orlando 11_07_08 2 ES Future Programs Initial Potential Value Value JLTV $50M $20B FASI-G ID/IQ $5.6B Ceiling HCM TBD $1.3B CSAR-X TBD $8B LCS $500M TBD UK MFTS $100M $1.0B Poised For Future Success LMT Investor Conference Orlando 11_07_08 3 GWOT Support Army Tactical Missile System … 500+ Launched Guided Multiple Launch Rocket System … 900+ Launched Hellfire® … 6,800+ Missiles Fired Javelin™ … 480+ Launched Symphony™ … 800+ Devices Fielded Desert Hawk™ … 500 Operational Flights Per Month Persistent Threat Detection System … 8 Sites 24/7 Wind-Corrected Munitions Dispensers … 900+ Expended Longbow® Apache … 1,000+ Targets Destroyed HIMARS, M270A1 … Readiness Exceeds 99% Sniper® … Combat Proven on U.S., U.K., Norwegian Aircraft Convoy Trainers … Over 150,000 Users Infantry Immersion Trainer … Over 4,000 Marines Trained Prior to Deployment LMT Investor Conference Orlando 11_07_08 4 LMT Investor Conference Orlando 11_07_08 5 Air & Missile Defense Mike Trotsky Vice President, M&FC LMT Investor Conference Orlando 11_07_08 1 Ballistic Missile Defense System DSP (Acquisition Sensor) Midcourse Aegis BMD STSS GMD Aegis BMD Aegis BMD Boost Terminal Altitude Aegis BMD ABL KE Aegis BMD Boost THAAD THAAD ABL Arrow Arrow ABL KE ABL PAC-3 PAC-3 Boost THAAD 0 0 600 0 1,300 0 5,500 ~10,000 Range (km) Short Range Medium Range Intermediate Range Ballistic Missile Ballistic Missile Ballistic Missile (SRBM) (MRBM) (IRBM) ICBM LMT Investor Conference Orlando 11_07_08 2 Air and Missile Defense Portfolio • • SoS- PAC-3, MSE, EAPS/LEAPP/ Mini-HTK Outer Tier MEADS THAAD Multiple Kill Product IBCS Interceptor System Interceptor SBT, ALHTK THAAD Growth Missile Vehicle Domestic: Domestic/ C-RAM, Protection Protection, Air Defense, Terminal Terminal, Mid-Course Customers International International Terminal Defense Mid-Course Integration International: SHORAD