Slide 1: Q4 2022 Supplemental Information
Q4 2022 SUPPLEMENTAL INFORMATION* February 15, 2023 * All information provided in these slides is qualified in its entirety by reference to the Company's filings with the Securities and Exchange Commission (SEC), which are available on both the Company’s and the SEC’s websites.
Slide 2: Statement Regarding Safe Harbor for Forward-Looking Statements
Statement Regarding Safe Harbor for Forward-Looking Statements Investors are cautioned that all statements in this presentation that relate to the future involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable but which may be materially d
Slide 3: Financial Highlights and Guidance
FINANCIAL HIGHLIGHTS AND GUIDANCE
Slide 4: FY 2022 Highlights
FY 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS KEY INVESTMENT MERITS #1 or #2 $6.2B Aggregates 83% Gross Profit from Position in +90% +75 Years of ASP: +10.6% Upstream Materials Aggregates Reserves Total Revenues of Markets +13.8% Shipments: +3.3% Returned ACTIVE PORTFOLIO MANAGEMENT $309 ✓ ✓ $1.6B Cement
Slide 5: Q4 2022 Results
Q4 2022 RESULTS FINANCIAL HIGHLIGHTS AGGREGATES CEMENT Shipments (MM Tons) ASP Shipments (MM Tons) ASP 54.2 +21% $1,477M -12% 47.7 +17% $17.58 1.1 -11% 0.9 $127.26 $153.70 Total Revenues $15.09 (1.3%) Returned $392M $41 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Adj. EBITDA* Mil
Slide 6: Strong Commercial Momentum Underpins 2023 Guidance
STRONG COMMERCIAL MOMENTUM UNDERPINS 2023 GUIDANCE AGGREGATES PRICING GROWTH 16.5% 11.6% ✓ 8.4% 5.6% Broad market acceptance of January 1st, 2023 aggregates Q1 2022 Q2 2022 Q3 2022 Q4 2022 price increases ASP: $16.17 $16.34 $16.65 $17.58 TEXAS CEMENT PRICING GROWTH 21.4% 20.8% ✓ 14.7% Strong realiza
Slide 7: 2023 Guidance Summary
2023 GUIDANCE SUMMARY KEY DRIVERS CONSOLIDATED ✓ Strength in infrastructure and heavy nonresidential construction markets offset by residential slowdown and related moderation in light commercial activity ✓ Market support of January 1st, 2023 price increases $6.3B $1.85B Product and Adjusted ✓ Near
Slide 8: Active Portfolio Management and Strong Balance Sheet Provides Foundation for Future Growth
ACTIVE PORTFOLIO MANAGEMENT AND STRONG BALANCE SHEET PROVIDES FOUNDATION FOR FUTURE GROWTH 2022 HIGHLIGHTS Net Leverage1 Debt at Par Value Continues to Decline Reduced by ~$760MM ✓ Announced and/or completed over $1 billion of non- $5.1B 3.2x $4.3B 2 core asset divestitures ✓ Seamlessly integrated W
Slide 9: End Use Outlook
Battin END USE OUTLOOK Marietta
Slide 10: Unprecedented Public Investment in Highways and Domestic Manufacturing
UNPRECEDENTED PUBLIC INVESTMENT IN HIGHWAYS AND DOMESTIC MANUFACTURING FEDERAL STATE AND LOCAL $72B $40B Additional funding available to Martin Marietta’s FY2023 Total Federal Highway Spending Top-10 States via Cornyn – Padilla Amendment $53B $23B CHIPS Act Funding for Semiconductor Transportation F
Slide 11: Accelerating Highway Contract Awards
ACCELERATING HIGHWAY CONTRACT AWARDS Highway, bridge and tunnel contract awards increased to a record $102B driven by IIJA and COVID relief funds; a positive leading indicator of future infrastructure construction activity ($ in Billions) +24.3% $102 18-21 CAGR: 1.7% $84 $82 $78 $75 2018 2019 2020 2
Slide 12: Nonresidential Activity Varies by Sector
NONRESIDENTIAL ACTIVITY VARIES BY SECTOR CATEGORIES OUTLOOK COMMENTARY Domestic • Recent acceleration of U.S.-based manufacturing of critical Manufacturing products (e.g., semiconductors, batteries and electric vehicles) • Accelerating to meet increased consumer demand; significant Energy industrial
Slide 13: Nonresidential Demand Expected to Remain Resilient Led by Heavy Industrial Projects of Scale
NONRESIDENTIAL DEMAND EXPECTED TO REMAIN RESILIENT LED BY HEAVY INDUSTRIAL PROJECTS OF SCALE COMMERCIAL STARTS (MM SQFT) INSTITUTIONAL STARTS (MM SQFT) MANUFACTURING STARTS (MM SQFT) 785 347 105 63 740 292 2020 2025 2020 2025 2020 2025 SELECT ANNOUNCED AND IN PROCESS PROJECT EXAMPLES ACROSS OUR FOOT
Slide 14: Underbuilt Conditions Should Support Housing Demand
UNDERBUILT CONDITIONS SHOULD SUPPORT HOUSING DEMAND Housing Starts (MMs) 2.1 Average housing starts were notably higher in the 1980s when mortgage rates were nearly double what they are today, while the population has increased by over 100 million… 1.8 1.5 1.2 …due to a decade of significant underbu
Slide 15: Appendix
PRMer APPENDIX
Slide 16: Adjusted EBITDA
ADJUSTED EBITDA $ IN MILLIONS Three Months Three Months Ended Ended Year Ended Year Ended Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Earnings from continuing operations before Net earnings from continuing operations interest; income taxes; depreciation, depletion and $ 187.4 $ 156.3 $ 856.3
Slide 17: 2023 Adjusted EBITDA Guidance at Midpoint
2023 ADJUSTED EBITDA GUIDANCE AT MIDPOINT $ IN MILLIONS Year Ended Earnings from continuing operations before Dec 31, 2023 interest; income taxes; depreciation, depletion and Net earnings from continuing operations attributable to Martin amortization expense; and the earnings/loss from $ 935 Mariett
Slide 18: Net Leverage at December 31, 2022
NET LEVERAGE AT DECEMBER 31, 2022 $ IN MILLIONS 12-Month Period Jan 1, 2022 to Dec 31, 2022 Net earnings from continuing operations attributable to Martin Marietta $ 856.3 Consolidated net debt to consolidated Adjusted Add back (Deduct): EBITDA at December 31, 2022, for the trailing-12 Interest expe
Slide 19: Net Leverage at December 31, 2021
NET LEVERAGE AT DECEMBER 31, 2021 $ IN MILLIONS 12-Month Period Jan 1, 2021 to Dec 31, 2021 Net earnings from continuing operations attributable to Martin Marietta $ 702.0 Add back (Deduct): Interest expense, net of interest income 142.4 Consolidated net debt to consolidated Adjusted Income tax expe
Slide 20: For More Information, Please Visit www.martinmarietta.com
FOR MORE INFORMATION, PLEASE VISIT WWW.MARTINMARIETTA.COM