Page 52 - Martin Marietta - 2023 Proxy Statement

SUMMARY OF OUR COMPENSATION CONSIDERATIONS /

NET EARNINGS attributable to Martin Marietta from Repaid and discharged $700 million of debt, exiting year
continuing operations of $856.3 million and record at 2.49x net leverage ratio, and increased dividend by 8%
ADJUSTED EBITDA FROM CONTINUING to $2.64/share on an annualized basis
OPERATIONS* OF $1.6 BILLION
Successful integration of business acquired in California
Continuous commitment to SUSTAINABILITY, which is and Arizona in 2021, including 1,250+ employees,
included in our strategy and compensation decisions
following end of Transition Services Agreement
Successful completion of two portfolio optimizing
Sixth consecutive year of WORLD-CLASS SAFETY divestitures in line with the Company’s SOAR 2025
performance
Strategic Plan that generated $650 million in proceeds
* See Appendix B for reconciliation to reported net earnings from continuing operations attributable to Martin Marietta. Adjusted EBITDA is a metric
used for executive performance targets.

In 2022, we continued to execute on our strategic initiatives to enhance our attractive footprint and advance the goals
included in our latest five-year strategic plan, SOAR (Strategic Operating Analysis and Review) 2025, which was
developed in 2020. The SOAR process, supplemented by our annual planning process, has guided us since 2010 as we
have grown the business in an intentional, contemplative, and disciplined manner. SOAR 2025 set ambitious yet
achievable targets for future growth and value creation, and the four acquisitions completed in 2021 as well as the two
divestitures completed in 2022 were all well aligned with our SOAR 2025 goals. Importantly, the company’s strategic
efforts and proactive balance sheet management in 2022 provide a platform for continued expansion in future years.

2022 Highlights Disciplined Capital Allocation
Record consolidated revenues on continuing $75 million contributed to the Company’s fully-
operations of $6.2 billion, reflecting pricing gains funded qualified pension plan
across all product lines, and full-year
contributions from operations acquired in 2021 Board approved a 8% quarterly dividend increase
($2.64 per share on an annualized basis),
th
Achieved 11 consecutive year of growth in continuing the Company’s track record of
products and services revenues, gross profit and dividend growth
Adjusted EBITDA
Repaid $700 million in debt through discharge
Record-setting results from 2012 to 2022 yielded and repurchases, exiting the year with a 2.49x
a 10-year TSR of 295% versus the S&P 500 leverage ratio
return of 227% during the same period

We believe these goals and execution of our strategy has resulted in our TSR performance to be well above the median
performance of the Building Materials Industry Group in the five most recent 3-year periods.
3-Year TSR
3-Year Performance Building Materials
Period MLM Industry Group*
2020-2022 24% 13%
2019-2021 163% 85%
2018-2020 32% 10%
2017-2019 30% 7%
2016-2018 29% -9%
Average 73% 33%

* Reflects median TSR performance over the stated period for
CRH plc, Eagle Materials, Inc., HeidelbergCement AG, Holcim
Ltd., Summit Materials, Inc., Vulcan Materials Company,

46 2023 PROXY STATEMENT