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Lockheed Martin Corporation II
OUTSTANDING FINANCIAL PERFORMANCE
KƵƌƉĞƌĨŽƌŵĂŶĐĞĂŶĚŵĂƌŬĞƚƉŽƐŝƚŝŽŶLJŝĞůĚĞĚ
ƐƚƌŽŶŐƌĞƚƵƌŶƐĨŽƌŽƵƌƐƚŽĐŬŚŽůĚĞƌƐ͘LJĞdžĞĐƵƚŝŶŐ
ŽƵƌƐƚƌĂƚĞŐLJ͕ǁĞĚĞůŝǀĞƌĞĚƐŽůŝĚŽƉĞƌĂƚŝŶŐŵĂƌŐŝŶƐ͕
ĞdžĐĞůůĞŶƚĐĂƐŚĨůŽǁĂŶĚĂƌĞĐŽƌĚďĂĐŬůŽŐ͘ŶĚ͕ĂƐ
ĂůǁĂLJƐ͕ǁĞĂĐŚŝĞǀĞĚƚŚĞƐĞƌĞƐƵůƚƐǁŚŝůĞƌĞŵĂŝŶŝŶŐ
ĐŽŵŵŝƚƚĞĚƚŽƚŚĞĞƚŚŝĐƐ͕ŝŶƚĞŐƌŝƚLJĂŶĚǀĂůƵĞƐƚŚĂƚĂƌĞ
ĂŚĂůůŵĂƌŬŽĨ>ŽĐŬŚĞĞĚDĂƌƚŝŶ͘
/ŶĂĐŚĂůůĞŶŐŝŶŐďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚ͕ǁŝƚŚ
ĐƵƐƚŽŵĞƌƐĨĂĐŝŶŐďŽƚŚĚLJŶĂŵŝĐƚŚƌĞĂƚƐĂŶĚ
ƐŝŐŶŝĨŝĐĂŶƚďƵĚŐĞƚƉƌĞƐƐƵƌĞƐ͕>ŽĐŬŚĞĞĚDĂƌƚŝŶ
ĐŽŶƚŝŶƵĞĚƚŽĚĞůŝǀĞƌĞdžĐĞƉƚŝŽŶĂůƌĞƚƵƌŶƐĨŽƌŽƵƌ
ƐƚŽĐŬŚŽůĚĞƌƐ͘tĞŐĞŶĞƌĂƚĞĚŵŽƌĞƚŚĂŶϭϲƉĞƌĐĞŶƚ
total stockholder return in 2015—significantly
ŽƵƚƉĂĐŝŶŐƚŚĞ^ΘWϱϬϬĂŶĚ^ΘWϱϬϬĞƌŽƐƉĂĐĞ
ΘĞĨĞŶƐĞ/ŶĚŝĐĞƐͶƚŚƌŽƵŐŚƐƵƐƚĂŝŶĞĚĨŝŶĂŶĐŝĂů
ƉĞƌĨŽƌŵĂŶĐĞ͕ƐƚƌŽŶŐĚŝǀŝĚĞŶĚLJŝĞůĚĂŶĚƐŚĂƌĞ
ƌĞƉƵƌĐŚĂƐĞƐ͘KƵƌƐƚŽĐŬƉƌŝĐĞŝŶĐƌĞĂƐĞĚϭϯƉĞƌĐĞŶƚ
ŝŶƚŚĞLJĞĂƌ͕ĂŶĚǁĞĞdžĐĞĞĚĞĚĞdžƉĞĐƚĂƚŝŽŶƐŝŶƐĞǀĞƌĂů
ŬĞLJĂƌĞĂƐ͘
&ŝŶĂŶĐŝĂůŚŝŐŚůŝŐŚƚƐŝŶĐůƵĚĞ͗
ͻ ^ĂůĞƐŽĨΨϰϲ͘ϭďŝůůŝŽŶ͕ƵƉϭƉĞƌĐĞŶƚǀĞƌƐƵƐϮϬϭϰ͖
ͻ ^ĞŐŵĞŶƚŽƉĞƌĂƚŝŶŐƉƌŽĨŝƚŽĨΨϱ͘ϱďŝůůŝŽŶ͖
ͻ ^ĞŐŵĞŶƚŵĂƌŐŝŶŽĨϭϭ͘ϵƉĞƌĐĞŶƚ͖
ͻ ZĞĐŽƌĚĚŝůƵƚĞĚĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞĨƌŽŵ
ĐŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐŽĨΨϭϭ͘ϰϲ͖
ͻ EĞǁŽƌĚĞƌƐŽĨΨϱϬ͘ϮďŝůůŝŽŶ͕ĞŶĚŝŶŐƚŚĞLJĞĂƌ
ǁŝƚŚĂƌĞĐŽƌĚďĂĐŬůŽŐŽĨΨϵϵ͘ϲďŝůůŝŽŶ͖
ͻ EĞƚĞĂƌŶŝŶŐƐŽĨĂƉƉƌŽdžŝŵĂƚĞůLJΨϯ͘ϲďŝůůŝŽŶ͖ĂŶĚ
ͻ ZĞĐŽƌĚĐĂƐŚĨƌŽŵŽƉĞƌĂƚŝŽŶƐŽĨΨϱ͘ϭďŝůůŝŽŶ͘
dŚƌŽƵŐŚŽƵƚϮϬϭϱ͕ǁĞŐĞŶĞƌĂƚĞĚƐƚƌŽŶŐĐĂƐŚ
and returned a significant portion of it to our
ƐƚŽĐŬŚŽůĚĞƌƐ͘tĞƉĂŝĚŽƵƚΨϭ͘ϵďŝůůŝŽŶŝŶĚŝǀŝĚĞŶĚƐŝŶ
ϮϬϭϱ͕ŽƵƌƚŚŝƌƚĞĞŶƚŚĐŽŶƐĞĐƵƚŝǀĞLJĞĂƌŽĨĚŽƵďůĞͲĚŝŐŝƚ
ĚŝǀŝĚĞŶĚŐƌŽǁƚŚ͘tĞĂůƐŽƌĞƉƵƌĐŚĂƐĞĚϭϱ͘ϮŵŝůůŝŽŶ
ƐŚĂƌĞƐŽĨƐƚŽĐŬĨŽƌΨϯ͘ϭďŝůůŝŽŶ͘/ŶƚŽƚĂů͕ǁĞƌĞƚƵƌŶĞĚ
120 percent of free cash flow to stockholders
ŝŶϮϬϭϱ͘
DELIVERING FOR OUR CUSTOMERS
ƌŽƵŶĚƚŚĞǁŽƌůĚ͕ĐƵƐƚŽŵĞƌƐƌĞůLJŽŶ>ŽĐŬŚĞĞĚ
DĂƌƚŝŶƉƌŽĚƵĐƚƐ͕ƚĞĐŚŶŽůŽŐŝĞƐĂŶĚĞŵƉůŽLJĞĞƐƚŽ
ŚĞůƉƚŚĞŵƉƌŽƚĞĐƚƚŚĞŝƌďŽƌĚĞƌƐĂŶĚŬĞĞƉƚŚĞŝƌ
ƉĞŽƉůĞƐĂĨĞĂŶĚƐĞĐƵƌĞ͕ŽĨĨĞƌĂďĞƚƚĞƌƋƵĂůŝƚLJŽĨůŝĨĞ
ĨŽƌƚŚĞŝƌĐŝƚŝnjĞŶƐĂŶĚĂĚǀĂŶĐĞƐĐŝĞŶƚŝĨŝĐĚŝƐĐŽǀĞƌLJ͘
tŝƚŚŽƵƌĐƵƐƚŽŵĞƌƐĨĂĐŝŶŐŐƌŽǁŝŶŐŶĞĞĚƐĂŶĚ
ƐŚƌŝŶŬŝŶŐƌĞƐŽƵƌĐĞƐ͕ǁĞ͛ǀĞƌĞŵĂŝŶĞĚĐŽŵŵŝƚƚĞĚ
ƚŽƐƵƉƉŽƌƚŝŶŐƚŚĞŵǁŝƚŚƚŚĞŵŽƐƚĂĚǀĂŶĐĞĚĂŶĚ
ĂĨĨŽƌĚĂďůĞŐůŽďĂůƐĞĐƵƌŝƚLJƐŽůƵƚŝŽŶƐ͘tĞŚĂǀĞ
done this with a continued focus on the superior
ƉĞƌĨŽƌŵĂŶĐĞĂŶĚĞdžĐĞƉƚŝŽŶĂůǀĂůƵĞƚŚĂƚŽƵƌ
ĐƵƐƚŽŵĞƌƐĞdžƉĞĐƚĨƌŽŵ>ŽĐŬŚĞĞĚDĂƌƚŝŶ͘
/ŶϮϬϭϱ͕ǁĞĚĞůŝǀĞƌĞĚŽŶŽƵƌĐŽŵŵŝƚŵĞŶƚƐĂŶĚ
ĂĐŚŝĞǀĞĚƐŝŐŶŝĨŝĐĂŶƚŵŝůĞƐƚŽŶĞƐŽŶŬĞLJƉƌŽŐƌĂŵƐ
ĂĐƌŽƐƐƚŚĞĞŶƚĞƌƉƌŝƐĞ͘dŚĞĨŽůůŽǁŝŶŐĂƌĞĂĨĞǁ
ŚŝŐŚůŝŐŚƚƐŽĨƚŚĞĂĐŚŝĞǀĞŵĞŶƚƐĨƌŽŵƚŚŝƐƉĂƐƚLJĞĂƌ͘
Producing the world’s most advanced aircraft:
dŚĞ&Ͳϯϱ>ŝŐŚƚŶŝŶŐ//ƉƌŽŐƌĂŵĐŽŶƚŝŶƵĞĚƚŽƐŽĂƌƚŽ
ŶĞǁŚĞŝŐŚƚƐŝŶƚĞƐƚŝŶŐ͕ƉƌŽĚƵĐƚŝŽŶĂŶĚƐƵƐƚĂŝŶŵĞŶƚ
ĨŽƌh͘^͘ĂŶĚŝŶƚĞƌŶĂƚŝŽŶĂůĐƵƐƚŽŵĞƌƐ͘tĞĚĞůŝǀĞƌĞĚ
ϰϱ&ͲϯϱĂŝƌĐƌĂĨƚͶĂƌĞĐŽƌĚƉƌŽĚƵĐƚŝŽŶƌĂƚĞĨŽƌĂ
ƐŝŶŐůĞLJĞĂƌͶŵĞĞƚŝŶŐŽƵƌĂŶŶƵĂůƚĂƌŐĞƚ͘
/Ŷ:ƵůLJ͕ƚŚĞh͘^͘DĂƌŝŶĞŽƌƉƐĂĐŚŝĞǀĞĚ/ŶŝƚŝĂů
KƉĞƌĂƚŝŽŶĂůĂƉĂďŝůŝƚLJ;/KͿŽĨƚŚĞ&Ͳϯϱ^ŚŽƌƚ
dĂŬĞͲKĨĨĂŶĚsĞƌƚŝĐĂů>ĂŶĚŝŶŐĂŝƌĐƌĂĨƚ͕ŵĂŬŝŶŐŝƚƚŚĞ
ĨŝƌƐƚǀĂƌŝĂŶƚŽĨƚŚĞĨŝŐŚƚĞƌĚĞĐůĂƌĞĚƌĞĂĚLJĨŽƌĐŽŵďĂƚ͘
dŚĞh͘^͘ŝƌ&ŽƌĐĞŝƐƐĐŚĞĚƵůĞĚĨŽƌ/KĨŽƌŝƚƐ&Ͳϯϱ
ǀĂƌŝĂŶƚŝŶϮϬϭϲ͕ĂŶĚƚŚĞh͘^͘EĂǀLJ͛Ɛ&ͲϯϱǀĂƌŝĂŶƚ/K
ŝƐƚĂƌŐĞƚĞĚĨŽƌϮϬϭϴ͘
/ƚĂůLJƚŽŽŬĨŽƌŵĂůĚĞůŝǀĞƌLJŝŶĞĐĞŵďĞƌŽĨŝƚƐĨŝƌƐƚ
:ŽŝŶƚ^ƚƌŝŬĞ&ŝŐŚƚĞƌͶƚŚĞĨŝƌƐƚ&ͲϯϱƚŽďĞďƵŝůƚŽƵƚƐŝĚĞ
ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͘/ƚĂůLJŝƐƚŚĞƐŝdžƚŚŶĂƚŝŽŶƚŽĂĚĚ
ƚŚĞ&ͲϯϱƚŽŝƚƐŝŶǀĞŶƚŽƌLJ͕ũŽŝŶŝŶŐƚŚĞh͘^͕͘ƵƐƚƌĂůŝĂ͕
EĞƚŚĞƌůĂŶĚƐ͕EŽƌǁĂLJĂŶĚƚŚĞhŶŝƚĞĚ<ŝŶŐĚŽŵ͘
/ŶĞĐĞŵďĞƌ͕ƚŚĞh͘^͘ŐŽǀĞƌŶŵĞŶƚĂŶŶŽƵŶĐĞĚƚŚĞ
ͲϭϯϬ:DƵůƚŝLJĞĂƌ//ĐŽŶƚƌĂĐƚ͘dŚĞΨϱ͘ϯďŝůůŝŽŶĐŽŶƚƌĂĐƚ
ŝŶĐůƵĚĞƐƚŚĞĂĐƋƵŝƐŝƚŝŽŶŽĨĂŵŝŶŝŵƵŵŽĨϳϴͲϭϯϬ:Ɛ
ĨŽƌƚŚĞh͘^͘ŝƌ&ŽƌĐĞ͕ƚŚĞh͘^͘DĂƌŝŶĞŽƌƉƐĂŶĚƚŚĞ
h͘^͘ŽĂƐƚ'ƵĂƌĚ͘
Promoting a strong missile defense:/ŶϮϬϭϱ͕
>ŽĐŬŚĞĞĚDĂƌƚŝŶƌĞĐĞŝǀĞĚƚǁŽƐŝŐŶŝĨŝĐĂŶƚWͲϯ
ŵŝƐƐŝůĞŽƌĚĞƌƐ͘/Ŷ:ƵůLJ͕ǁĞƌĞĐĞŝǀĞĚĂΨϭ͘ϱďŝůůŝŽŶ
ĐŽŶƚƌĂĐƚƚŽƉƌŽĚƵĐĞWͲϯĂŶĚWͲϯDŝƐƐŝůĞ
^ĞŐŵĞŶƚŶŚĂŶĐĞŵĞŶƚ;WͲϯD^ͿŵŝƐƐŝůĞƐĨŽƌƚŚĞ
h͘^͘ƌŵLJĂŶĚĨŝǀĞŝŶƚĞƌŶĂƚŝŽŶĂůĐƵƐƚŽŵĞƌƐ͘dŚĞŶŝŶ
ĞĐĞŵďĞƌ͕ǁĞƌĞĐĞŝǀĞĚĂĨŽůůŽǁͲŽŶĐŽŶƚƌĂĐƚǀĂůƵĞĚ
ĂƚΨϭ͘ϰďŝůůŝŽŶƚŽƉƌŽĚƵĐĞWͲϯĂŶĚWͲϯD^ƐĨŽƌ
ƚŚĞh͘^͘ƌŵLJĂŶĚŽƵƌĂůůŝĞƐ͘
/ŶĞĂƌůLJ:ƵůLJ͕ƚŚĞdĞƌŵŝŶĂů,ŝŐŚůƚŝƚƵĚĞƌĞĂĞĨĞŶƐĞ
;d,ͿƉƌŽŐƌĂŵĚĞůŝǀĞƌĞĚŝƚƐϭϬϬƚŚŝŶƚĞƌĐĞƉƚŽƌ͘
dŚŝƐŵŝůĞƐƚŽŶĞĚĞŵŽŶƐƚƌĂƚĞƐƚŚĞŵĂƚƵƌŝƚLJŽĨƚŚĞ