Martin Marietta MaterialsMartin Marietta Materials

Where Are We…Where Are We…Current State of U.S. EconomyCurrent State of U.S. Economy

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Where Are We…Where Are We…Annual Aggregates ConsumptionAnnual Aggregates Consumption

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% represents aggregates consumption peak-to-trough and trough-to-peak change

Source: U.S. Geological Survey through Q1 2008; MLM data used for Q2 2008

- 17%

+ 23% + 57%

+ 60%

+ 15%

Why Invest in the Why Invest in the

Aggregates IndustryAggregates Industry

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Aggregates Industry Fundamentals Aggregates Industry Fundamentals

• Barriers to entry

• Consolidation

• Scarcity of supply in the southern United States

• Limited transportation availability

• Limited distribution sites

Why Invest inWhy Invest in

Martin Marietta MaterialsMartin Marietta Materials

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Key Factors – Key Factors – Martin Marietta MaterialsMartin Marietta Materials

• Superior locations

• Intrinsic value of mineral reserves

• Strong growth profile

• Margin improvement

• Track record of performance

• Investor focused

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Aggregates Business Profile - 2007Aggregates Business Profile - 2007

Mideast Group

Southeast Group

West Group

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74% of Aggregates Business’ 2007 net sales from

southern United States

Scarcity of Aggregates SupplyScarcity of Aggregates Supply

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Outstanding Distribution Network –Outstanding Distribution Network –Rail & Water Markets Rail & Water Markets

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Aggregates SupplyAggregates Supply

U.S. consumption = 3.0B tons annually *

Additional volume predominantly in

southern U.S.

Barriers to entry can limit new quarry openings

Average quarry

produces

1M tons annually

3% GDP growth

100M additional tons required annually

* Per U.S. Geological Survey

Valuable Mineral ReservesValuable Mineral Reserves

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At December 31, 2007Tons

(add 000)

Annual Production Tons

(add 000)

Number of years

production available

Mideast Group 4,874,000 63,420 76.9

Southeast Group 3,185,000 44,710 71.2

West Group 4,454,000 72,832 61.2

Total 12,513,000 180,962 69.1

Estimated Reserve Value ~ $9 B

Assumptions:• Owned reserves 52% / Leased reserves 48% as disclosed in Form 10-K for

year ended December 31, 2007.• Value of $1/ton for owned reserves and $0.40/ton for leased reserves.• Value is highly dependent on specific quarry location.

Growth!!!Growth!!!

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Population GrowthPopulation Growth

Percentage of 2007 Aggregates business’ net sales

Rank of percent change - population from 2000 to 2030 (source: Census Bureau)

Rank – #3

Rank - #4

Rank – #7

Rank – #8

TX 19% GA 8%

NC 22%

FL 5%

Growing Infrastructure DemandGrowing Infrastructure Demand

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Growing Infrastructure DemandGrowing Infrastructure Demand

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Demand SegmentsDemand Segments

Infrastructure48%

2007

Commercial30%

Estimated percentage of 2007 aggregates product line shipments

Note: These percentages do not vary significantly across markets, with the exception of Florida which is dominated by infrastructure demand.

Aggregates BusinessAggregates BusinessOperating Margin ImprovementOperating Margin Improvement

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1,188 basis points (actual)

Aggregates Scarcity = Increased PricingAggregates Scarcity = Increased Pricing

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Latest volume guidance of down 3% to 6%

Selling price is established locally at the point of sale and is subject to competitive and other factors at each locality. ASP increases reflect the average of the Corporation’s selling price across all markets, some of which may have already been implemented. Local prices can vary significantly from this average.

6% - 8%

20 yr average ASP

10 yr average ASP

ASP growth over next 10 yrs (5% - 7%)

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Cost Reduction InitiativesCost Reduction Initiatives

• Excellent Best Practices Program

• Increased Plant Automation

• Overhead Reduction

• Better Information Systems

• Effective Management of Benefits Cost

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Consolidated Headcount Reduction Consolidated Headcount Reduction

Earnings from operations per average number of employees up 206% over five-year period ended December 31, 2007

5,700 5,600 5,400

Hourly

6,000

Note: Headcount equal to average number of employees

6,400

Salaried

5,200

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Capital InitiativesCapital Initiatives

Bahama Rock

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Capital Spending PrioritiesCapital Spending Priorities

• Capital spending has been focused on the long-haul distribution network

• Current priority – expand key Southeast locations

• 2008 capital spending expected to be approximately $250 million

• 2009 capital spending ~ $200 million

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Capital ProjectsCapital Projects Production Capacity

Expansion (tons)Quarry/State Spend ($M) Timing From To

COMPLETEDLemon Springs, NC $20 2006 1.5M 3.5MNorth Troy, OK $40 2006 --- 5.0MThree Rivers, KY $50 2007 5.5M 8.0M+Weeping Water, NE $35 Q4 2007 2.0M 3.5M

UNDERWAYAugusta, GA $55 2008 2.0M 6.0M

FUTUREJunction City, GA $75 - $80 2009 - 2010 2.5M 8.0MColumbia, SC $40 - $50 2009 - 2010 2.0M 6.0MCamak, GA $45 - $55 2011 2.0M 6.0MMacon, GA $70 - $80 2011 - 2012 2.5M 8.0M

GREEN SITESFayetteville, NC $6 2008 --- 1.0M by 2011Selma, NC Unknown 2009 - 2010 --- 1.0M by 2013

Capital ProjectsCapital Projects

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Performance – Return MetricsPerformance – Return Metrics

2007 2006

Return on Equity 23.9 % 20.2 %

Return on Invested Capital 15.1 % 14.2 %

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Performance - Shareholder ReturnPerformance - Shareholder Return

27Total return inclusive of dividends as of December 31, 2007

S&P Materials 10 year

return not available

Specialty ProductsSpecialty Products

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Specialty Products Financials ($M)Specialty Products Financials ($M)

Six Months Ended June 30,

2008 2007%

Change

Year Ended December 31,

2007 2006

Net sales $ 88 $ 78 13 % $ 154 $ 151

Operating Earnings $ 19 $ 15 22 % $ 33 $ 23

Operating Margin 21.4 % 19.8 % 21.3 % 14.9 %

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Consolidated Financial InformationConsolidated Financial Information

Pensacola Yard

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Consolidated Financials ($M)Consolidated Financials ($M)

Six Months Ended Percent June 30, Change

2008 2007

Net Sales(1) $ 924 $ 941 (2%)

Operating Earnings(1) $ 147 $ 194 (24%)

Net Earnings $ 85 $ 116 (27%)

Earnings per Diluted Share $ 2.02 $ 2.62 (23%)

(1) Net sales and operating earnings are from continuing operations as presented in the June 30, 2008 Form 10-Q.

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Consolidated Financials ($M)Consolidated Financials ($M)

Year Ended Percent December 31, Change

2007 2006

Net Sales(1) $1,968 $1,930 2%

Operating Earnings(1) $ 433 $ 391 11%

Net Earnings $ 263 $ 245 7%

Earnings per Diluted Share $ 6.06 $ 5.29 15%

(1)(1) Net sales and operating earnings are from continuing operations as presented in Net sales and operating earnings are from continuing operations as presented in 2007 Annual Report.2007 Annual Report.

Capital Structure ObjectivesCapital Structure Objectives

• Leverage target of 2.0x – 2.5x Debt-to-EBITDA

2.55x at June 30, 2008

• Outside range due to financing for Vulcan transaction

• Use available free cash to pay down outstanding debt to move within targeted range by 12/31/08

• Maintain solid investment grade credit rating

• For outstanding debt, adjust fixed-to-floating ratio to 20% - 30% floating

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Uses of Cash ($M)Uses of Cash ($M)

Year Ended December 31, 2008 2007 2006

Capital investment $ 265 $ 266

Share repurchases $ 551 $ 173

Dividends $ 54 $ 46

Debt repayment $ 125 $ --

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Cash Returned to ShareholdersCash Returned to ShareholdersFive Years Ended December 31, 2007Five Years Ended December 31, 2007

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What Happens During the CycleWhat Happens During the Cycle

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$ p

er sh

are

Note: Net earnings and EPS excludes cumulative effects of changes in accounting principles.

What Happens in the What Happens in the UP Phase of the CycleUP Phase of the Cycle

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$ per share

Assumptions:** 2008 base year ** Annual CAPEX $225M** 5%, 6% or 7% annual volume and price growth ** No share repurchases** 3% annual cost growth ** Cash pays down short-term debt then accumulates

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The document attached represents one part of a presentation being 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 or other SEC filings. Further, while we may make presentations from time to time, please understand that we do not undertake any obligation to update any information contained in these materials. Finally, some of the statements in this presentation are forward-looking in nature. Any forward-looking statements are, by their nature, uncertain and dependent upon numerous contingencies, including the accuracy of the assumptions underlying the statements, which could cause actual results and events to differ materially from those indicated in such forward-looking statements. See the risk factors listed in the Corporation’s current annual report and Forms 10-K, 10-Q and 8-K reports filed with the Securities and Exchange Commission. Other factors besides those may also adversely affect the Corporation and may be material to the Corporation. If you have any questions or comments, please contact Investor Relations at 919-783-4540.

  Thank you.