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FOUNDATION. TRANSFORMATION. VALUE.Jefferies 2015 Industrials Conference
August 12, 2015
New York, New York
www.martinmarietta.com
Disclaimer
Statement Regarding Safe Harbor for Forward-Looking StatementsThis presentation may contain forward-looking statements – that is, information related to future, not
past, events. Like other businesses, Martin Marietta is subject to risks and uncertainties which could
cause its actual results to differ materially from its projections or that could cause forward-looking
statements to prove incorrect, including the risks and uncertainties discussed in Martin Marietta’s most
recent Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K,
which have been filed with the Securities and Exchange Commission and are readily available on the
Internet at www.sec.gov. Except as legally required, Martin Marietta undertakes no obligation to publicly
update or revise any forward-looking statements, whether resulting from new information, future
developments or otherwise.
Non-GAAP Financial TermsThese slides contain certain “non-GAAP financial terms” which are defined in the Appendix.
Reconciliations of non-GAAP terms to the closest GAAP term are also provided in the Appendix.
MARTIN MARIETTA
MARTIN MARIETTA
The right people
with the right assets;
The right people
with the right assets;
driving operational
excellence against the
right strategic plan;
MARTIN MARIETTA
The right people
with the right assets;
driving operational
excellence against the
right strategic plan;
with a relentless focus on
driving shareholder value.
MARTIN MARIETTA
FOUNDATION
TRANSFORMATION
VALUE
Option 1
FOUNDATION
SHAREHOLDERVALUE
OUR BEDROCK. RIGHT PEOPLE. RIGHT VALUES. RIGHT STRATEGY.
Pillars of Shareholder Value
A C O N S I S T E N T C O M M I T M E N T
ETHICAL
CONDUCTSUSTAINABILITY
OPERATIONAL
EXCELLENCE
COST
DISCIPLINE
CUSTOMER
SATISFACTION
WORLD-CLASS
SAFETY
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2010 2011 2012 2013 2014
TOTAL INCIDENT INJURY RATE¹
¹ Total Incident Injury Rate per 200,000 man hours worked² Reported as of 9.30.14 by MSHA and 12.31.13 by BLS. Year end data unavailable.
World-Class Safety
Well-being of all we come in contact with
Reduced workers compensation
claims and related costs
WORLD-CLASS SAFETY DRIVES. . .
FOUNDATION
“DOING GOOD,
WHILE DOING GOOD.”
Martin Marietta
Aggregates Industry
General Industry
World Class
Sustainability
FOUNDATION
ENVIRONMENTAL
STEWARDSHIP
CORPORATE
CITIZENSHIP
Martin Marietta supplies the resources needed to build the infrastructure of the world – the foundation on which we live. A steward of the Earth’s resources, Martin Marietta incorporates sustainability
as a core principle within its business agenda.
SAFETY &
WELL-BEING
FOUNDATION
TRANSFORMATION
VALUE
Where is Martin Marietta Today?
HAWAII
TRANSFORMATION
2009
65%
2014
85%
2011 2014
• 3.6x greater EBITDA
• 820 bps higher return on assets
Trading the River for the Rockies
TRANSFORMATION
1 2014 Rocky Mountain Division results versus the River District Results in 2007
Results vs. the River at Peak 1
• 4x greater sales
• 4x greater gross profit
ATLANTA METRO FOOTPRINT
MLM Heritage Site
MLM 2013 Acquired Site
2010
2013
2014
Atlanta area disproportionately affected by the Great Recession2008-10
Identified for expansion in strategic assessment due to long-term outlook and fit
Purchased three complementary quarries for $62mm from Lafarge at cyclical trough
Enjoy a leading positionPerformance exceeding expectations
STRATEGIC ALIGNMENT
Transition to leading position
+800 million tons of reserves
Complementary fit / synergy upside
Attractive long-term market drivers
Southeast Group
Peak¹ Trough¹ 2014
Shipments 47.6m (‘06) 17.3m (‘13) 18.3m
ASP $9.05 (‘06) $13.03 (‘13) $13.87
¹ Peak and Trough years indicated parenthetically.
Solidifying a Southern Champion
TRANSFORMATION
Expanding the Foundation for Growth
Source: Company filings1 Martin Marietta as of 9/30/2013. Texas Industries as of 11/30/2013. Excludes intersegment sales.2 Martin Marietta as of 12/31/2012. Texas Industries as of 5/31/2013.
Aggregates Plants
Aggregates Terminals
Midlothian Cement Plant
Hunter Cement Plant
Ready-Mix Locations
Cement Terminals
Oro Grande Cement Plant
Crestmore Grinding Plant
Dallas
HoustonSan Antonio
San Jose
Los Angeles
San Diego
San Francisco
WA
NV
UT
WY
CO
NE
KS
OK
MN
IA
MO
AR
ND
INOH
WV MDVA
NC
SCTN
MS AL GA
FL
Bahamas
LA
KY
Nova Scotia
MD
TX
PA
NY
AZNM
Magnesia Specialties facilityAggregates salesAggregates production and sales
NJ
#2 U.S. aggregates producer
MARTIN MARIETTA
#1 cement producer in Texas
#3 in California by cement capacity
TEXAS INDUSTRIES
LTM Net Sales1
Employees2
Key Products
$2.1bn $0.8bn
4,948 2,040
Aggregates, ready-mix, asphalt / road paving,
dolomitic lime and magnesia chemicalsAggregates, cement and ready-mix
OperationsApproximately 300 operating facilities
12.6bn tons of aggregates reserves
800 million tons of aggregates reserves
7.4mm tons of cement capacity;106 ready-mix plants
TRANSFORMATION
AGGREGATES
CEMENT
DOWNSTREAM
PRODUCTS
Aligning Key Value Drivers
Key Value Drivers
AGGREGATES-LED
STRATEGIC CEMENT
TARGETED
DOWNSTREAM
PRODUCTS
EXPANDED
PLATFORM
FOR
GROWTH
TRANSFORMATION
Acquired operations
contribute $40 million
gross profit
Net earnings
up 38%
Weather defers
gross profit by ≈ $40 million
Heritage aggregates
incremental margin of
214%
CAPITAL
EXPENDITURES &
ACQUISITIONS
$72 million
Second Quarter 2015: Consistent Commitment Yields Results
Gross profit up 48%,
quarterly record
VALUE
Aggregates pricing
up 8.5%
Aggregates volume
nearly 8%
Sales up 41%,
sets quarterly record
Operating cash
flow up nearly $30
million
NOTE: See Appendix for definition and calculation of incremental margin, a non-GAAP measure.
RETURN OF CASH TO
SHAREHOLDERS
$126 million
North Carolina
Ten Questions Through the Cycle
PRICING
Cy
cl
e d
yn
am
ic
s
Synergy realization
TXI
VolumeM
AP
-21
State Departments of Transportation
Cement
Cap
ital Allo
cation
M&A
Recovery Dynamics
Costs
Southeastern United States
Q1: What are Martin Marietta’s expectations
for aggregates price and volume?
NOTE: 2015P assumes midpoint of guidance range
Cycle Dynamics - Pricing
AG
GR
EG
AT
ES
VO
LU
ME
(a
dd
00
0)
AG
GR
EG
AT
ES
PR
ICIN
G
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
0
50,000
100,000
150,000
200,000
250,000
4% CAGR
FOUNDATION
Pricing expected to accelerate
above trend line in relation to
volume
NOTE: 2015P assumes midpoint of guidance range
Cycle Dynamics – Heritage Aggregates VolumeA
GG
RE
GA
TE
S V
OL
UM
E (
ad
d 0
00
)
0
50,000
100,000
150,000
200,000
250,000
3.6% CAGR
FOUNDATION
Early-to-mid stage
construction-centric recovery
Cycle Dynamics: Price and Volume Relationship
VOLUME PRICEPRODUCT LINE
Ready Mix (yds³)Heritage: Flat
Acquired: Double + 8% to +12%
Cement (Tons) Double$10 enacted 10.1.14
$10 announced 4.1.15
Aggregates
(Tons)
Magnesia
Specialties$240M - $250M of net sales
+7% to +9%Heritage: +3% to +5%
Acquired: Double
Aggregates Pricing Cycle Premise:
Long-term average pricing CAGR serves as a floor
Pricing follows volume with a lag
If volume < 5%, then pricing ≤ long-term average CAGR
If volume ≥ 5%, then pricing begins to track volume, with a lag
2015 OUTLOOK
Q2: What do end market demand
drivers look like?
HERITAGE MARTIN MARIETTA AGGREGATES PRODUCT LINE
Infrastructure49%
Non-residential26%
Residential25%
Source: Company sources average for the five year period ending 12/31/14. 2014 PCA Yearbook.
U.S. PORTLAND CEMENT
Construction End Markets
Infrastructure47%
Non-residential29%
Residential12%
ChemRock/Rail - 12%
TRANSFORMATION
End Market Dynamics Drive Growth
• Renewal of federal highway
bill at current funding levels
• Growth largely from state-level programs
• Continued energy-related industrial activity
• Increased light commercial activity
• Subdivision development in 2015
• Build-out in 2016 and 2017
• Ballast construction dependent
Relatively flat
High-single digits
Double-digits
Relatively flat
Infrastructure
Nonresidential
Residential
ChemRock/Rail
GROWTH RATE
2015 OUTLOOK
Q3: Can we expect more TXI-related
synergies?
Original Synergy Projections
$28
$57$66 $70
$0
$20
$40
$60
$80
$100
CY 2014E CY 2015E CY 2016E CY 2017E
$ in millions
$34 million
Corporate SG&A$24
Operational SG&A$10
$ in mm
% of Total
40% ~80% ~95% 100%
$36 million
Incremental aggregates volume
Incremental cement volume
Ready-mix improvement
Purchasing
$70 million
of annual
synergies
Source: FactSet; Wall Street research; Company filings1 Actual CY 2014E synergy projected at $18 mm; $28 mm reflects expected run-rate at year-end. Subsequent years reflect annual estimates.2 Does not include material real estate sales or NOL usage.
PROJECTED ANNUAL SYNERGIES1,2 ($ IN MM)
SYNERGY OVERVIEW BY AREA
SG&A OPERATIONAL EFFICIENCIES
2015 OUTLOOK
– TOO LOW. TOO SLOW.
Synergy Realization Exceeds Original Projections
*Actual and Projected synergies exclude financing synergies, surplus land sales, net operating loss utilization and other commercial synergies.
Internal
Product Sourcing
Location
Consolidation
Combined
Insurance Programs
Employee
Benefit Costs
Transportation
Efficiencies
Reduced Energy
and MRO Spend
Duplicative
Service Providers
ORIGINAL REVISED VARIANCE
+53%
$57 $75 +32%
$66 $120 +81%
$70 Ongoing
$28
2015
2016
2017
2014 $18
2015 OUTLOOK
SAMPLE SYNERGY PROJECTS
Redundancy
Elimination
Dollars in millions
Realizing Synergistic Value: Bridgeport, Texas
MLM Chico
TXI Bridgeport
SELECT SYNERGY OPPORTUNITIES
Operating efficiencies
Expanded reserve base
Reduced headcount
Higher equipment utilization
Transportation consolidation
Note: Property boundary is approximate.
2015 OUTLOOK
+400 million tons of combined
aggregates reserves serving
DFW metroplex
Realizing Synergistic Value: SG&A Synergies Delivered
9.6%
8.8%8.2%
7.6% 7.7%
6.3% < 6.0%
2009 2010 2011 2012 2013 2014 2015F
Synergies Delivered
2015 Projected SG&A Savings: $37M
Legacy TXI SG&A: $75M
SG&A as % of net sales
2015 OUTLOOK
Realizing Synergistic Value: Incremental Opportunities
2015 OUTLOOK
LOWER COST
OF CAPITAL
NOL
UTILIZATION
SURPLUS
LAND SALES
CALIFORNIA
CEMENT PLANT
SALE
Q4: What is the state of the State of Texas?
Texas Construction Activity
OUTLOOK
Texas Construction Activity
OUTLOOK
4.1%
4.2%
4.2%
4.3%
4.3%
4.4%
4.4%
4.5%
4.5%
4.6%
4.6%
4.7%
12,000
12,200
12,400
12,600
12,800
13,000
13,200
13,400
13,600
2015 2016 2017 2018 2019
Employment¹
Employment Non-Agricultural (000) - Unemployment Rate, %
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2015 216 2017 2018 2019
Single Family Permits¹
Single Family Permits
$8,400
$8,600
$8,800
$9,000
$9,200
$9,400
$9,600
$9,800
$10,000
$10,200
$10,400
2015 2016 2017 2018 2019
Total State Highway Expenditures¹
Total State Highway Expenditures ($ Million)
¹ PCA June 1, 2015 Forecast
Nonbuilding minus Streets (Millions)
Rank State
TTM June
2015 TTM Change 3 Yr. Change
% TTM
Change
% 3 Yr.
Change
1 Texas 26,964 18,522 19,218 69% 248%
2 Louisiana 10,936 8,680 8,369 79% 326%
3 DC 7,630 5,911 4,908 77% 180%
4 California 13,277 3,096 (3,778) 23% -22%
5 Massachusetts 2,849 1,338 1,238 47% 77%
6 Ohio 3,744 1,106 1,558 30% 71%
7 Indiana 1,450 690 400 48% 38%
8 Illinois 3,285 573 (26) 17% -1%
9 Alabama 958 468 512 49% 115%
10 Georgia 1,732 412 (9,086) 24% -84%
U.S. Metro Total 113,094 33,431 14,971 30% 15%
Top Four Combined 36,210
Top Four % of total 108%
Dodge Data TTM June 30, 2015
Q5: Why cement?
ME
RI
MA
VTNH
AL GA
SC
TN
FL
MS
LA
TX
OKNM
KS
MN
IA
MO
AR
WY
CO
ND
SD
NE
WA
ID
MT
OR
NVUT
AZ
CA
WI
ILIN
MI
OH
KY
WVVA
NC
MD
DE
PA
NY
CT
NJ
HI
Lightest Cement Consuming States
Moderate Cement Consuming States
Largest Cement Consuming StatesNote: Data as of 12/31/12
Source: PCA
Targeted Investment in
High Cement Consuming States
TRANSFORMATION
Source: 2014 PCA Yearbook; annual shipments as a % of domestic Portland cement consumed .
108.8 million metric tons 79.5 million metric tons
2003 20131993
California12%
Texas 12%
Florida8%
Illinois 4%
Ohio3%
All Other61%
Texas 16%
California10%
Florida6%
Ohio3%Illinois
3%
All Other62%
California10%
Texas 10%
Florida7%
Illinois 4%
Ohio4%
All Other65%
76.6 million metric tons
Strategic Cement Expansion in Trough Environment
Texas and California are perennial leaders in cement consumption
TRANSFORMATION
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
22,000,000
Sho
rt T
on
s
Total Texas Historical Tons (ST) PCA 2015 Summer Frcst Tons (ST)
Cement Indicators | Texas Consumption
Data Source: PCA Summer 2015 Forecast & Texas Comptroller Report
Domestic capacity of 14M tons
Cement Indicators | California Consumption
Data Source: PCA Summer 2015 Forecast & USGS Report
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
Sho
rt T
on
s
Total California Historical Tons (ST) PCA 2015 Summer Frcst Tons (ST)
Current estimated
capacity is 13.1M st
CEMEX – Davenport, CA plant closed
Q6: What does recovery look like in
the Southeast U.S.?
Where You are Matters
Source: January 2015 Moody’s Economy.com Inc.# - Employment growth ranking (seasonally adjusted as of November 30, 2014)
#1
#10
#2
#3
#5
#6
#11#1
#8
#42
TRANSFORMATION
Expanding
Recovering
Moderating
Recession
2009
#39
#45
Uneven Recovery Affects Margin Expansion
NovaScotia
TheBahamas
> 90% Peak Profitability
< 60% Peak Profitability
Aggregates Product Line Profitability
TRANSFORMATION
Southeast Group Performance
50%
23%
66%
110%
50%
136%
112%
Q1'14 Q2'14 Q3'14 Q4'14 2014 YTD Q1'15 Q2'15
Incremental Margin (%) Expon. (Incremental Margin (%))
Accelerating incremental margin with volume
recovery
VALUE
NOTE: See Appendix for definition and calculation of incremental margin, a non-GAAP measure.
Q7: What are Martin Marietta’s
capital allocation priorities?
Established Capital Allocation Priorities-
Opportunistic Execution
PRIORITIES FORWARD VIEW
Organic Capital Investment
Return of Cash to Shareholders
Dividends
Acquisitions
Share Repurchases
Above maintenance level of capital spending expected in 2015
Earnings payout practiceof 25% to 30% over a 10-year cycle
Execution of strategic plan
Repurchase authorization of 20 million shares ≈ 30% of outstanding
CAPITAL ALLOCATION
Counter-Cyclical Organic Capital Investment
$50
$100
$150
$200
$250
$300
$350
$400
CAPEX DDA
Dollars in Millions
$150
$160
$20
Maintenance Growth Land
CAPITAL ALLOCATION
NOTE: 2015P reflects amounts included in the Company’s current plan. 2016F, 2017F, 2018F and 2019F are forecast amounts subject to significant change in future periods.
2015 CAPITAL INVESTMENTDollars in Millions
Q8: How will Martin Marietta
execute its share repurchase
objectives?
Share Repurchase Drives Value Creation
Liquidity
Leverage• Target 2.0x to 2.5x EBITDA through cycle• Preserve financial flexibility
Financial Impact
Capital Allocation Priority
• Excess free cash flow (after organic capital and dividends)
• Net proceeds from TXI-related asset sales
• Immediately accretive¹
• Strategic opportunities
1 Assumes current interest rates.
CAPITAL ALLOCATION
Q9: Who are Martin Marietta’s
competitors?
Competitive Landscape
TRANSFORMATION
Q10: What’s most
underappreciated about Martin
Marietta?
Where is Martin Marietta Today?
HAWAII
TRANSFORMATION
2009
65%
2014
85%
Uneven Recovery Affects Margin Expansion
NovaScotia
TheBahamas
> 90% Peak Profitability
< 60% Peak Profitability
Aggregates Product Line Profitability
TRANSFORMATION
Q&A
FOUNDATION. TRANSFORMATION. VALUE.Jefferies 2015 Industrials Conference
August 12, 2015
New York, New York
www.martinmarietta.com
APPENDIX
Incremental gross margin (excluding freight and delivery revenues), expressed as a percentage (%), is a non-GAAP measure and isused internally to evaluate financial performance. Management believes this measure is indicative of operating leverage, efficiency andeconomic conditions. Due to the significant amount of fixed costs, gross margin (excluding freight and delivery revenues) typicallyincreases at a disproportionate rate in periods of increased shipment activity. Incremental gross margin (excluding freight and deliveryrevenues) is not defined by GAAP and, as such, should not be construed as alternatives to gross profit or net gross margin.
The following table presents the calculation of incremental gross margin (excluding freight and delivery revenues) for theSoutheast Group as presented in the financial results for the 2014 quarterly and annual periods, as well as, the quarterly period endedMarch 31, 2015.
Non-GAAP Measure
Southeast Group Performance
Incremental MarginQ1'14 through Q2 '15
($ in 000s) Q1'14 Q2'14 Q3'14 Q4'14 YTD '14 Q1'15 Q2'15Net Sales (Current period) $ 55,381 $ 70,725 $ 68,042 $ 60,838 $ 254,986 $ 59,770 $ 76,483
Net Sales (Prior-year comparable period) $ 51,324 $ 55,261 $ 64,871 $ 54,981 $ 226,437 $ 55,381 $ 70,725
Net Sales Increase $ 4,057 $ 15,464 $ 3,171 $ 5,857 $ 28,549 $ 4,389 $ 5,758
Gross Profit (Current period) $ (2,867) $ 3,053 $ 4,650 $ 5,817 $ 10,653 $ 3,099 $ 9,493
Gross Profit (Prior-year comparable period) $ (4,905) $ (551) $ 2,545 $ (604) $ (3,515) $ (2,867) $ 3,053
Gross Profit Increase $ 2,038 $ 3,604 $ 2,105 $ 6,421 $ 14,168 $ 5,966 $ 6,492
Incremental Gross Margin % (excluding freight and delivery revenues) 50% 23% 66% 110% 50% 136% 112%
APPENDIX
The following table presents the calculation of incremental gross margin (excluding freight and delivery revenues) for theAggregates business as presented in the financial results for the quarter ended June 30, 2015.
Non-GAAP Measure (continued)
Heritage Aggregates Business Performance
Incremental Margin
Q2 '15
($ in 000s) Q2'15
Net Sales (Current period) $ 555,314
Net Sales (Prior year comparable period) $ 540,017
Net Sales Increase $ 15,297
Gross Profit (Current period) $ 144,479
Gross Profit (Prior year comparable period) $ 111,744
Gross Profit Increase $ 32,735
Incremental Gross Margin % (excluding freight and delivery revenues) 214%