Page 35 - 2018 Sustainability Report

APPENDIX

Earnings Before Interest, Taxes, and Depreciation and Amortization, or EBITDA, is a widely accepted financial indicator of a
company’s ability to service and/or incur indebtedness. EBITDA is not defined by generally accepted accounting principles
and, as such, should not be construed as an alternative to net earnings or operating cash flow. For further information on
EBITDA, including a reconciliation of net earnings attributable to Martin Marietta to consolidated EBITDA, please refer to
the 2018 Annual Report, available at www.MartinMarietta.com.

Adjusted EBITDA excludes the impact of acquisition-related expenses, net; the impact of selling inventory after its markup
to fair value as part of acquisition accounting; and the impact of asset and portfolio rationalization charges. The following
reconciles consolidated EBITDA to adjusted EBITDA:

2018 2017

Consolidated EBITDA $1,052,710 $1,004,379

Add back:
Acquisition-related expenses, net 13,479 8,638
Impact of selling acquired inventory due to the markup 18,738 -
to fair value as part of acquisition accounting

Asset and portfolio 18,838 -
rationalization charges

Adjusted EBITDA $1,103,765 $1,013,017

Adjusted earnings per diluted share (“Adjusted EPS”) for the year ended December 31, 2017, excludes the one-time
impact of the 2017 Tax Act. The following reconciles reported earnings per diluted share to adjusted earnings per diluted
share for the year ended December 31, 2017:

Reported earnings per diluted share $11.25

Less: impact of the 2017 Tax Act (4.07)

Adjusted EPS $7.18

Definition of Heritage Operations: Heritage operations exclude acquisitions that were not included in prior-year
operations for the comparable period.

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