Page 53 - Martin Marietta - 2024 Proxy Statement

/ SUMMARY OF OUR COMPENSATION CONSIDERATIONS

In 2023, 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 numerous
portfolio-enhancing divestitures completed from 2022 through early 2024 were all well aligned with our SOAR 2025 goals.
Importantly, the Company’s strategic efforts and proactive balance sheet management in recent years provide a platform
for continued expansion in future years.

2023 Highlights Disciplined Capital Allocation

Record financial performance, despite lower Optimized portfolio with divestitures of
shipments, reflected efficacy of value-over- California Stockton cement import terminal and
volume strategy, continued focus on operational Tehachapi cement plant, generating $370M of
and commercial excellence, and resilient proceeds to advance longstanding capital
geographic footprint in a challenging allocation priorities
macroeconomic environment
Signed and announced definitive agreement with
Achieved 12 consecutive year of profitability CRH for sale of South Texas cement and ready
th
growth; record Net Earnings from Continuing mixed concrete businesses for $2.1 billion in cash
Operations Attributable to Martin Marietta were (transaction closed on February 9, 2024),
up +40% to $1.20 billion and Adjusted EBITDA*
surpassed $2.1 billion $324M returned to shareholders; $150M share
repurchases at average price of $393.16 coupled
Managed sales of non-operating property that with 12% dividend increase
resulted in cash generation of $43 million and
pretax gains of $19 million Exited year at 1.44x net leverage ratio*;
extended our $800 million revolving credit
Record-setting results from 2013 to 2023 yielded agreement to 2028
a 10-year TSR of 445% versus the S&P 500
return of 211% during the same period

* Adjusted EBITDA and Net Leverage Ratio are non-GAAP measures. See Appendix B for reconciliation to reported net earnings from continuing
operations attributable to Martin Marietta and related disclosures.

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
Building Materials
3-Year Performance Period MLM Industry Group*
2021-2023 79% 68%
2020-2022 24% 13%
2019-2021 163% 85%
2018-2020 32% 10%
2017-2019 30% 7%

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

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