Martin Marietta Materials, Inc. · NYSE:MLM
Martin Marietta Materials — Investor Presentation (February 2005)
45 slides from Martin Marietta Materials's investor presentation, Feb 15, 2005
Slide 1: Martin Marietta Materials
Martin Marietta Materials EXHIBIT 99.1
Slide 2: Lines of Business - Aggregates
Lines of Business - Aggregates
Slide 3: Lines of Business - Magnesia Specialties & Structural Composites
Lines of Business - Magnesia Specialties & Structural Composites
Slide 4: Materials Financials ($M)
Materials Financials ($M) Year Ended Percent December 31, Change 2004 2003 Net Sales(1) $1,551 $1,476 5% Operating Earnings(1) $ 226 $ 195 16% Net Earnings(2) $ 129 $ 100 29% Earnings per Diluted Share(2) $ 2.66 $ 2.05 30% (1) Net sales and operating earnings from continuing operations. (2) Before c
Slide 5: Materials Selected Balance Sheet Data ($M)
Materials Selected Balance Sheet Data ($M) 2004 2003 2002 December 31, Equity $ 1,153 $ 1,130 $ 1,083 Debt $ 715 $ 718 $ 745 Debt/Total Capitalization(1) 32% 34% 40% (1) Calculation is net of available cash and the impact of interest rate swaps.
Slide 6: Aggregates Cash Flow From Operations
'00 '01 '02 '03 '04 Aggregates 213 253 204 277 267 Cash Flow From Operations $ Millions $253 $204 $277 ? = Cash on hand $267 '00 '01 '02 '03 '04 0 24 14 125 161 $213
Slide 7: Uses of Cash - 2004 ($M)
Uses of Cash - 2004 ($M) Pension Investment $ 51 $ 21 $30 Capital Investment $163 $121 $42 Share Repurchase $ 75 $ 15 $60 Dividend (11% per share increase in 9/04) $ 36 $ 34 $ 2 Cash on Hand $162 $125 $37 2004 2003 Change
Slide 8: Aggregates
Aggregates
Slide 9: Aggregates Financials ($M)
Aggregates Financials ($M) Year Ended Percent December 31, Change 2004(1) 2003(1) Net Sales $1,441 $1,388 4% Operating Earnings $ 220 $ 195 13% Operating Margin 15.3% 14.0% (1) All amounts presented are from continuing operations.
Slide 10: Aggregates Operating Earnings Growth
'00 '01 '02 '03 '04 Aggregates 190 195 176 195 220 Aggregates Operating Earnings Growth $ Millions (1) $190 $195 $176 $195 $220 (1) All amounts presented are from continuing operations.
Slide 11: Reasons for Improvement
Reasons for Improvement Pricing Cost Maturing Distribution Network Revenue Growth in Key Locations Elimination of Low Performers
Slide 12: Pricing Power
Pricing Power* Percent Increase *Heritage locations Average Growth Rate = 2.6 Percent 2000 2001 2002 2003 2004 3.7 2.6 2.4 1.3 3.2
Slide 13: Cost
Cost Best Practices Program Rightsizing Plant Upgrades Headcount Reduction Management of Benefits Cost Better Information Systems
Slide 14: Maturing Distribution Network - Water Markets
Producing Locations Major Shipping Points Other Shipping Points Maturing Distribution Network - Water Markets St. Croix Aruba Trinidad Guyana Suriname Nova Scotia Prince Edward Island New York City Linden Philadelphia Wilmington, DE Sparrows Pt. Wilmington, NC Charleston Savannah Brunswick Jacksonvi
Slide 15: Maturing Distribution Network - Multi-modal ports
St. Croix Aruba Trinidad Guyana Suriname Prince Edward Island Nova Scotia New York City Linden Philadelphia Wilmington Sparrows Pt. Charleston Savannah Brunswick Jacksonville Tampa Pascagoula Panama City New Orleans Beaumont Lake Charles Mobile Pensacola Freeport Bahamas Deep water quarries Deep wat
Slide 16: Florida Network Sources
Florida Network Sources Georgia Granite Offshore Granite Waterborne Limestone Local Limestone Rail CSX FEC NS Pensacola Panama City Perry Jacksonville Ocala Orlando Brooksville Tampa Canaveral Port Manatee Bradenton Miami
Slide 17: Florida Network
Florida Network Jacksonville Miami Orlando
Slide 18: Key Location Performance - 2004
Key Location Performance - 2004 Top 20 Locations 6% 19% Total Aggregates 4% 8% Sales Growth Gross Margin Growth
Slide 19: Aggregates Revenue Profile
TX 19% IA 6% AR 3% IN 5% GA 8% FL 5% OH 5% SC 5% NC 19% Aggregates Revenue Profile NORTHWEST DIVISION (14%) SOUTHWEST DIVISION (24%) SOUTHEAST DIVISION (29%) MIDEAST DIVISION (33%) LA 4%
Slide 20: Growth and Efficiency Improvement
Growth and Efficiency Improvement Long Haul Network Nova Scotia Bahamas Beckmann (TX) Three Rivers (KY) Lemon Springs (NC) N. Columbia (SC) Ruby (GA) Truck Quarries Berkeley (SC) Weeping Water (NE) Burning Springs (WV)
Slide 21: Magnesia Specialties
Magnesia Specialties
Slide 22: Magnesia Specialties Financials ($M)
Magnesia Specialties Financials ($M) Year Ended Percent December 31, Change 2004 2003 Net Sales $ 106 $ 86 23% Operating Earnings $ 17 $ 6 183% Operating Margin 17.0% 7.0%
Slide 23: Woodville Lime
Woodville Lime Martin Barletta Materials _/\ A
Slide 24: Average Selling Price
2000 2001 2002 2003 2004 Average Selling Price 100 100 103 107 124 CPT 100 102 107 103 107 AVG SP 48.82 51.42 53.12 60.43 Lime Division
Slide 25: Woodville Lime Record Production and Earnings in 2004
Woodville Lime Record Production and Earnings in 2004 25,000 Tons of Incremental Capacity - Midyear 2005 Evaluating/Permitting $25 to $30 Million Expansion
Slide 26: Magnesia Chemicals
Magnesia Chemicals Magnesia Chemicals
Slide 27: 2004 Market Overview
2004 Market Overview Environmental 35% Industrial 43% Other 6% 10% Plastics & Rubber Transformer Steel 6%
Slide 28: Magnesia Chemicals - Industrial 43%
Magnesia Chemicals Industrial 43%
Slide 29: Magnesia Chemicals - Environmental 35%
Environmental 35% Magnesia Chemicals
Slide 30: Magnesia Chemicals - Rubber & Plastics 10%
10% Rubber & Plastics Magnesia Chemicals
Slide 31: Magnesia Chemicals - Transformer Steel 6%
6% Transformer Steel Magnesia Chemicals
Slide 32: Magnesia Chemicals - Other 6%
6% Other CALCIUM CHLORIDE FUEL ADDITIVES Magnesia Chemicals
Slide 33: The Dow Deal
THE DOW DEAL Magnesia Chemicals
Slide 34: Magnesia Chemicals - MTD Pipeline, LLC
Manistee, MI Ludington, MI Magnesia Chemicals - MTD Pipeline, LLC Total Cost - $12M 27.5 mile pipeline
Slide 35: Manistee Production Tons
Manistee Production Tons INTERNATIONAL DOMESTIC 50 50 Refractories 50% Chemicals 50% INTERNATIONAL DOMESTIC 100 Chemicals INTERNATIONAL DOMESTIC 100 Chemicals 2000 210,000 Pre-Dow 110,000 Post Dow 180,000
Slide 36: Magnesia Chemicals - Growth
Magnesia Chemicals - Growth Cellguard(tm) Thioguard(tm) Magnesium Hydroxide Powder
Slide 37: Structural Composite Products
Structural Composite Products
Slide 38: Structural Composites
Structural Composites Light Weight High Strength Corrosion Resistant Long Life
Slide 39: Composites
Composites Union County, NC Martin Marlotta Materials _/\ A
Slide 40: First Bridge Deck Installation
First Bridge Deck Installation Completed July 1997 27 Installations Completed in 13 States 2 International Installations in Korea and Germany Composites
Slide 41: Composites - Sparta, NC
Sparta, NC Composites
Slide 42: Focused Market Areas
Focused Market Areas Infrastructure Construction Transportation Bridge Decks Parking Decks Trailers & Chassis Marine Structures Wall Panels Railcar Components Electrical Vaults Heavy Equipment Dump Beds Noise Barriers Components Truck Chassis/Bodies Signs Stay-in-Place Forms Ship Bulkheads Concrete
Slide 43: Product Agreements
Product Agreements Major Company Greenbriar Shredder Company Distributor Recreational vehicles Insulated rail cars Shredder truck bodies Flat panel products
Slide 44: Disciplined Growth Value Creation
Disciplined Growth Value Creation
Slide 45: The document attached represents one part of a presentation which has been or will
The document attached represents one part of a presentation which has been or will be made. It is not a complete record of the presentation because it does not reflect the lengthy oral comments which will be part of the presentation. This document is not intended to be a substitute for our Form 10-K
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