A11-36007_1 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Rob Weiss EVP and GM, Aeronautics Operations

Lockheed Martin

A11-36007_1 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

A11-36007_2 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Supporting the Warfighter

We never forget who we’re working for TM

A11-36007_2 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

A11-36007_3 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Getting the Job Done

• Most Capable, Best

Equipped & Supported

Military in the World

• DoD/Industry Meeting

Warfighter Expectations

• Opportunity to Improve

Ao and Reduce Costs Air

craf

t A

vaila

bili

ty P

erce

nt

Aircraft Availability

99 03 05 09 01 Fiscal Year

07

64

60

55

62

58

56

57

59

61

63

65

11

A11-36007_4 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Affordability Challenge

• Nation Entering

Uncharted Territory

• Competing Budget

Priorities

• New Focus Required To

Deliver Performance

and Quality

0%

20%

40%

60%

80%

100%

120%

1940 1950 1960 1970 1980 1990 2000 2010 2020

De

bt H

eld

by

th

e P

ub

lic a

s %

of

GD

P

CBO

Baseline

CBO

Alternative

Historical Projection

(Office of Management & Budget, Congressional Budget Office)

National Debt

(Center for Strategic & Budgetary Analysis)

$350

$400

$450

$500

$550

$600

2001 2005 2009 2013 2017 2021

Do

D B

as

e B

ud

ge

t, F

Y1

2 $

M

DoD FYDP & Projection

Initial Cuts (~$465M Cut)

“Trigger” (~$1B Cut)

Defense Budget Reductions

A11-36007_5 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Delivering More for Less

Continuing to Add Value to the Warfighter

USAF Fighter

Force Structure Reality • Aging Force Structure

• Increasing Maintenance

Requirements

• Must Maintain Readiness

with Reduced Budgets

1980 1990 2000 2010

25

20

15

10

5

0

Fig

hte

r A

ge

(Yea

rs)

A11-36007_6 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Culture of Continuous Affordability

• DoD/Industry Focused on

Cost Takeout

• Investing in Technologies

& Systems to Reduce Cost

• A Journey; Not a Destination

Year Over Year Improvements of Cost and Performance

A11-36007_7 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Successful Public / Private Partnering

• Performance Based

Relationships Delivering

Results

• Optimizing Performance

and Quality at Best Cost

• Leveraging the Best

That DoD / Industry

Has To Offer

A11-36007_7 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

A11-36007_8 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Partnering – Moving Forward

• Align DoD/Industry

Competencies

• Conduct Fact-Based

Business Case

Assessments

• Overcome the

Resistance to Change

A11-36007_8 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

A11-36007_9 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

Supporting the Warfighter

We never forget who we’re working for TM

A11-36007_9 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation

A11-36007_10 PUBLIC RELEASEABLE © 2011 Lockheed Martin Corporation