Page 3 - 2023 Sustainability Report

CEO Letter

A Message from Our CEO

Building on a Sustainable Foundation

Record 2023 Financial Performance

In 2023 Martin Marietta delivered another year of strong financial results marking twelve years of consecutive profit
growth reflecting the continued success of our commercial and operational excellence efforts, value-over volume strategy,
active portfolio management and disciplined capital allocation. Our double-digit pricing growth in 2023 across nearly all
product lines continues to yield higher margins, profits and cash flows. We grew aggregates gross profit per ton by 46%
to $6.93 and achieved 41% growth of diluted earnings per share (EPS) from continuing operations to $19.32. We
increased our dividend 12% in August 2023 (the Company’s eighth-consecutive year of increasing the dividend) and,
collectively with share repurchases, we returned $324 million to shareholders. Our cumulative Total Shareholder Return
(TSR) over the past 14 years is 558%. These significant accomplishments underscore the durability of our business and our
strategic plan. Martin Marietta has built a long-lasting and resilient business that is poised to continue to outperform in
the near-, medium- and long-term.

Active Portfolio Management
Over recent years we have made tremendous progress on our Strategic Operating Analysis and Review (SOAR) 2025
initiatives. In line with these initiatives, we announced and/or completed over $2.47 billion of non-core asset divestitures
in 2023. This includes closing the sale of our Tehachapi, California cement plant and substantially completing our planned
asset sales from the 2021 Lehigh Hanson West acquisition. In February 2024, we also closed the sale of our South Texas
Cement and Concrete businesses for $2.1 billion. These divestitures provide us additional balance sheet flexibility to
pursue SOAR 2025 growth initiatives, are consistent with our aggregates-led product focus, and support our strategically
positioned nationwide footprint. Following these divestitures, we recently announced the acquisitions of Albert Frei &
Sons, Inc. in Colorado and 20 active aggregates operations in Alabama, South Carolina, South Florida, Tennessee and
Virginia from affiliates of Blue Water Industries (BWI Southeast). These two pure-play aggregates businesses will enhance
our aggregates platform in multiple high-growth markets and are expected to contribute more than $180 million of
annualized EBITDA in 2024.

World-Class Safety Achieved

We continued our relentless focus on world-class safety performance, achieving Martin Marietta’s safest year on record
with a world-class lost time incident rate (LTIR) for the seventh-consecutive year (0.13 in 2023) and a world-class total
injury incident rate (TIIR) for the third-consecutive year (0.78 in 2023). Moreover, our fidelity to our Guardian Angel
culture meant that 99.9% of our over 9,000 employees experienced ZERO lost-time incidents and 99.1% of employees
experienced zero reportable incidents. These outstanding results are evidence of our team’s broad-based commitment to
safety, which we validated further through a series of employee feedback activities and on-site assessments last year. Our
safety culture and performance set the foundation for our long-term financial strength. As such, we established a Safety
Executive Steering Committee to guide and ensure strong focus on the Company’s safety efforts, by developing a
refreshed roadmap for continued safety execution and improvement. Our successful long-term strategy is to build and
maintain the safest, best-performing and premier aggregates-led building materials company in markets that exhibit
favorable growth dynamics.

0.28 1.32
World Class 1.09 1.14 1.18
0.20 0.20 0.17 Safety Level 0.93 0.84 0.78 0.78 World Class
0.15 0.15 0.15 Safety Level
0.13 (0.20)
(0.90)

2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023

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