Martin Marietta Materials, Inc. · NYSE:MLM
Martin Marietta Materials — BB&T Capital Markets Annual Commercial & Industrial Conference 2012
23 slides from Martin Marietta Materials's conference presentation, Mar 28, 2012
Slide 1: BB&T Capital Markets Annual Commercial & Industrial Conference
BB&T Capital Markets th Annual Commercial & Industrial Conference March 28, 2012 Rock Solid Fundamentals. Positioned for the Long Term.
Slide 2: Long-term superior performance: principles of our strategy remain unchanged
Long-term superior performance The Principles of our Strategy Remain Unchanged Positioning Uniquely positioned in an attractive industry Performance Differentiated performance Growth Multiple long-term drivers
Slide 3: Long-Term Strategic Plan
Long-Term Strategic Plan Market attractiveness drivers #1 or #2 market position High population growth or density Synergy opportunity “MLM template” Acquisition currency Asset swaps Financing capacity Joint ventures
Slide 4: Commitment to Strategy Yields Improved Positioning
Commitment to Strategy Yields Improved Positioning Last 3-4 years, walked away from many deals Evaluated over 30 potential transactions during 2011 Expansion of geographic footprint in Texas and Colorado Investment of $91.6 million in business combinations Asset swap M A R T I N M A R I E T T A M A
Slide 5: San Antonio Expansion
San Antonio Expansion • Acquisition of – 6 aggregates quarries – 2 ready mix plants – 1 asphalt plant • High-growth area • Serve additional customers in a larger geographic footprint • Provides long-term reserves to replace current sites (> over 200M tons) • Integration completed
Slide 6: Presence in Colorado
Presence in Colorado Asset Exchange with Lafarge Presence in Colorado • Acquired Lafarge’s Denver, CO Front Range assets: – 10 aggregates quarries – (200M tons reserves) – 19 ready mix plants – 12 asphalt plants – Road paving business • Swapped River business • Integration in process
Slide 7: Long-term superior performance
Long-term superior performance The Principles of our Strategy Remain Unchanged Positioning Uniquely positioned in an attractive industry Growth Multiple long-term drivers Performance Differentiated performance
Slide 8: Our Differentiated Performance Profile
1 2 3 4 5 Superior performance and returns to shareholders Our Differentiated Performance Profile Highly disciplined + Low cost leader + Resilient pricing performance + Attractive Specialty Products business + Strong financial position
Slide 9: Low Cost Leader
-27% Low Cost Leader • Declining costs even as volume increased 2003 to 2006 • Investment in new technologies increased productivity • Low cost distribution network 30% by rail and water Significant Headcount Reduction 6,400 5,600 4,700 Note: Headcount equal to average number of employees Hourly Sal
Slide 10: Slide 10
Slide 11: Attractive Specialty Products Business
Investing $53M for new lime kiln 13% of 2011 consolidated net sales 71% 33% $201M Attractive Specialty Products Business Operating Margin * (%) * Operating margin as % of net sales (excludes freight & delivery revenues) 41% of total 2011 operating profits 7% 29% 33% Chemical products (water treatmen
Slide 12: Strong Financial Position
Strong Financial Position • Balanced cash deployment – acquisitions – organic capital investment • CAPEX below DD&A – dividend distributions • $313M liquidity at December 31, 2011 • 3.25X debt to EBITDA Ratio* $M * Refer to www.martinmarietta.com for supporting calculations. CAPEX $0 $100 $200 $300
Slide 13: Long-term superior performance
Long-term superior performance The Principles of our Strategy Remain Unchanged Positioning Uniquely positioned in an attractive industry Performance Differentiated performance Growth Multiple long-term drivers M A R T I N M A R I E T T A M A T E R I A L S
Slide 14: Multiple Long-Term Growth Drivers
Multiple Long-Term Growth Drivers Infrastructure renewal Government funding expansion Faster growing markets Growth of Specialty Products business Powerful operating leverage Our long-term value proposition Key Drivers
Slide 15: Need for Infrastructure Renewal
Need for Infrastructure Renewal Expanding transit a necessity Feds approve state’s plan for I-95 tolls Gas tax is too low to meet current (and future) infrastructure needs. M A R T I N M A R I E T T A M A T E R I A L S
Slide 16: Government Funding is Evolving
Federal Highway Bill Senate House Government Funding is Evolving M A R T I N M A R I E T T A M A T E R I A L S Expired September 30, 2009 Current continuing resolution expires March 31, 2012 Likely 2013 before new bill Introduced on Feb. 3, 2012 5-year bill $260 B bill for highways & transit Financi
Slide 17: Funding at the State Level
State Departments of Transportation Toll Roads & Alternate Financing Tax Initiatives State budgets at healthy levels Set to play expanding role — specific funding such as toll roads, gas taxes — examples Texas, North Carolina, Georgia Funding at the State Level M A R T I N M A R I E T T A M A T E R
Slide 18: Long-Haul Distribution Network Serves Critical Markets
Jacksonville Morehead City Tampa/ Pt. Manatee Baltimore Charleston Cape Canaveral Bermuda New York City Long-Haul Distribution Network Serves Critical Markets Nova Scotia Bahamas Savannah Mobile/ Pensacola Lake Charles From Nova Scotia From Bahamas Beaumont
Slide 19: In Summary: Rock Solid Fundamentals. Positioned for the Long Term.
Long-term superior performance IN SUMMARY Rock Solid Fundamentals. Positioned for the Long Term. Performance Positioning • Uniquely positioned in attractive industry — barriers, resilient pricing, growing market share Growth • Differentiated performance — low cost leader, disciplined, Specialty Prod
Slide 20: AES
AES Martin Marietta Materials
Slide 21: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward Looking Statements This presentation may include "forward-looking statements." Statements that include words such as "anticipate," "expect," "should be," "believe," "will," and other words of similar meaning in connection with future events or future operating or fi
Slide 22: Important Additional Information
Important Additional Information This presentation relates to the Exchange Offer by Martin Marietta to exchange each issued and outstanding share of common stock of Vulcan for 0.50 shares of Martin Marietta common stock. This presentation is for informational purposes only and does not constitute an
Slide 23: Contact Information
Contact Information Corporate Headquarters: Martin Marietta Materials, Inc. 2710 Wycliff Road Raleigh, NC 27607 919-781-4500 Investor Relations: 919-788-4367 Website: www.martinmarietta.com