Slide 1: Business Area Realignment
Lockheed Martin Business Area Realignment June 27, 2003
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our presentation today may contain “forward-looking” statements about our expectations or forecasts of future events. These statements can be affected by subsequent events, known or unknown risks and uncertainties, or inaccurate assumptions. Some of the factors that may cause o
Slide 3: Consolidated Growth Projections
Consolidated Growth Projections % Change 2003 vs. 2002 % Change 2004 vs. 2003 Sales + 8-12% + ~ 5% Segment EBIT + 14-19% + 5-10% Segment Margins + ~ 50 bps + 10-50 bps Unchanged From Prior Guidance
Slide 4: Guidance By Business Area
Guidance By Business Area • Electronic Systems • Aeronautics • Space Systems • Technology Services • Integrated Systems and Solutions
Slide 5: Electronic Systems
Electronic Systems Actuals* Estimate Sales $8.1B $8.7B $8.8-9.1B $9.2-9.5B Operating EBIT 816M 875M 870-895M 890-915M Operating Margins 10.1% 10.1% 9.5-10.0% 9.5-10.0% * Actuals Reflect Results Reported for the Former Systems Integration Business Area After Adjusting for Realigned Businesses (See SE
Slide 6: Aeronautics
Aeronautics Actuals Estimate Sales $5.4B $6.5B $8.4-8.9B $8.9-9.4B Operating EBIT 329M 448M 600-650M 725-775M Operating Margins 6.1% 6.9% 7.0-7.5% 8.0-8.5% Deliveries F-16 65-70 65-70 C-130J 12-14 12-14 Unchanged From Prior Guidance
Slide 7: Space Systems
Space Systems Actuals* Estimate Sales $5.0B $5.3B $5.2-5.6B $5.2-5.6B Operating EBIT 243M 279M 335-385M 335-385M Operating Margins 4.8% 5.3% ~ 6.5% ~ 6.5% Atlas and Proton Launches 5-8 5-8 * Actuals Adjusted for Realigned Businesses (See SEC Form 8-K Filed June 27, 2003)
Slide 8: Technology Services
Technology Services Actuals Estimate Sales $2.8B $3.1B $3.1-3.4B $3.4-3.8B Operating EBIT 114M 177M 210-235M 240-280M Operating Margins 4.1% 5.7% 6.5-7.0% 7.0-7.5% Unchanged From Prior Guidance
Slide 9: Integrated Systems and Solutions
Integrated Systems and Solutions Actuals* Estimate Sales $2.7B $3.0B $3.1-3.4B $3.2-3.5B Operating EBIT 207M 241M 245-270M 255-280M Operating Margins 7.6% 8.0% ~ 8.0% 8.0-8.5% * Actuals Reflect Results of Realigned Businesses Previously Reported in the Former Systems Integration and Space Businesses
Slide 10: Unallocated Corporate Income / (Expense)
Unallocated Corporate Income / (Expense) ($ M) Actuals Estimate FAS/CAS Adjustment $360 $243 ($305) ($400)-($550) Equity Income } } } } Interest Income (30) 25-(25) Stock Plan /Other Total $371 $250 ($335) ($375)-($575) Unchanged From Prior Guidance
Slide 11: Outlook Summary
Outlook Summary ($ M) Sales Growth 8-12% ~ 5% EBIT – Op’s $2,300-$2,400 $2,500-$2,600 E.P.S. $2.20-$ 2.30 N/A FAS/CAS Adjustment ~ ($305) ($400)-($550) Other Unallocated ($30) $25-($ 25) Depreciation $475 $525 Intangible Amortization $125 $125 Interest Expense ~ $510 ~ $490 Federal Tax Rate 31-32% 3
Slide 12: GRAPHIC
GRAPHIC