2009 Hercules Operators Conference. Mr. Ross Reynolds Lockheed Martin Aeronautics

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1 2009 Hercules Operators Conference C-130 Program Update Mr. Ross Reynolds Lockheed Martin Aeronautics

2 The Critical Need For Air Mobility High Operational Demand For Air Mobility Air Forces Facing Significant Challenges Many Countries Struggling To Maintain Air Mobility Capabilities Indigenous European Capabilities Drifting To The Right C-130s Remain The Benchmark For What A Tactical Airlifter Must Do C-130Js Carry On The Tradition Of Previous C-130s By Redefining What A Hercules Can Do

3 Hercules Production History C-130A (231 Aircraft) C-130B (230 Aircraft) Longest Longest Continuously Continuously Running Running Military Military Aircraft Production Line in in Aviation History Aviation History 1958 C-130E (488 Aircraft) C-130H (1,205 Aircraft) 1961 C-130J (177 Aircraft) 1964 Four Variants in Production: C-130J C-130J-30 KC-130J HC/MC-130J Other Variants Produced: WC-130J HC-130J EC-130J 1998 As of 2 nd Quarter 09

4 C-130 Hercules A Global Presence United States* Algeria Angola Argentina Australia* Austria Bangladesh Belgium Bolivia Botswana Brazil Cameroon Canada* Central African Chad Chile Colombia Congo (DRC) Denmark* Ecuador Egypt Ethiopia Republic France Gabon Greece Honduras India* Indonesia Iran Iraq* Ireland Israel Italy* Japan Jordan Korea (ROK) Kuwait Libya Malaysia Mexico Morocco Netherlands New Zealand Niger Nigeria Norway* Oman* Pakistan Peru Philippines Poland Portugal Qatar* Romania Sao Tome Saudi Arabia Singapore South Africa Spain Sri Lanka Sudan Sweden Taiwan Thailand Tunisia Turkey Uganda United Arab United Kingdom* Uruguay Venezuela Yemen Emirates Acquired C-130s From 3 rd Party Lockheed Martin Aeronautics Company * One of 11 C-130J Customers As of 2 nd Quarter 09

5 Hercules Production Today Aircraft Deliveries Year Current Aircraft Production Line Toolset / Facilities Designed to Produce 36 Aircraft per Year Current Production Rate 24 aircraft per year 10 Day Move Rate Line Loaded Moderate 1st Shift / Light 2nd Shift Ramp Up Plan Supports 16 in 09, 27 in 10, and 35 in 11 Fully Loaded Line Day Move Rate Heavy 1st Shift / Moderate 2nd Shift As of 3rd Quarter 09

6 Hercules Production Highlights 99% Of New Production C-130s Delivered On Or Ahead Of Commitment Since Jan Defect-Free & 60 FOD-Free C-130Js Delivered Through 2 nd Quarter C-130s In New Production Backlog Through 2 nd Quarter 09: Canada, India, Norway, Qatar, Iraq, Oman, US Marine Corps & US Air Force (AMC, AFSOC & ACC) 200th C-130J Now In Final Assembly As of 2 nd Quarter 09

7 Current Model C-130J Super Hercules World s Most Advanced Airlifter New Engines and Propellers Two-Person Cockpit Integrated Digital Avionics Integrated Defensive System Provisions for In-Flight Refueling and SATCOM Features 40% Larger Cargo Compartment Enhanced Cargo Handling a d gsystem 250 Knot Ramp and Door Automated Maintenance Fault Reporting Benefits Increased Speed / Agility / Survivability Increased High-Hot Performance and Payload Precision Airdrop and Airland Adverse-Weather and Night Capable 164,000-lb Gross Weight Military and Humanitarian Operations Validate C-130J s Capabilities

8 C-130J Fleet Status 11 Nations Represented Canada Canadian Forces 0 of 17 A/C United Kingdom Royal Air Force 24 A/C Norway 2 of 4 A/C Royal Norwegian Air Force United States of America 116 of 169 A/C US Marine Corps 34 of 46 A/C Denmark 4A/C Royal Danish Air Force Italy 22 A/C Aeronautica Militare US Coast Guard 6 A/C US Air Force 72 of 117 A/C India 0 of 6 A/C Indian Air Force Iraq Iraq Air Force Qatar Qatar Emiri Air Force Oman Oman Royal Flight Australia 12 A/C Royal Australian Air Force 0 of 4 A/C 0 of 4 A/C 0 of 1 A/C As of 2 nd Quarter 09

9 C-130J Fleet Status Over 575,000 Flight Hours Agile Mobility Combat Peacekeeping Humanitarian Disaster Relief 600, , , , , , , , , , ,000 50,000 0 USG Flight Hrs Int'l Flight Hrs LM Dev Flight Hrs '02 '03 '04 '05 '06 '07 '08 '09 M/E Aug , ,840 16,523 Global Response United States United Kingdom Italy Australia Denmark Norway As of 2 nd Quarter 09

10 C-130 Hercules Sustainment & Development Providing OEM Through-Life Support Offering Comprehensive Sustainment Solutions Expanding Global Support Network Partnering To Provide More Effective Support Executing Development elopment Roadmap for Hercules Enhancements Lockheed Martin Aeronautics Company 10

11 Hercules Sustainment Highlights Team Aero Selection for RAF TLS RAAF 50 th Anniversary of C-130 Italy Completes KC-130J Group A Mods MAFFS II Approved For Use By California ANG USAF LTS Partnership Awarded Dr. James G. Roche Sustainment Excellence Award 2008 Outstanding RAF HIOS Team Performance Exceptional Performance on USG FYOC, LTS and CLS Programs 22 Center Wing Kits Delivered To Date, All On Or Ahead Of Commitment

12 C-130 Life Extension Center Wing Replacement Kits Center Wing Production At 4-Day Move Rate 88 CWR Kits On Order (13 Kit Configurations) 22 Delivered To Date, All On Or Ahead Of Commitment Lynden Air Cargo - First Commercial CWR Kit Enhanced Service Life Wing New Customer Interest Growing Center Wing Box Final Assembly As of 2 nd Quarter 09

13 C-130 Life Extension Avionics Modernization Upgraded Cockpits For C-130B-H Fleets Extends Life & Increases Capability CNS/ATM Compliant From Concept To Reality

14 C-130 Partnerships Performance-Based Logistics US SGovernment Long Term Support (LTS) Lockheed Martin Partnership with USAF Received Highest Performance Rating For Last Two Customer Evaluation Periods Awarded Top Honors For Outstanding Achievements In Military Logistics Strategy By Institute For Defense And Government Advancement Partnership Awarded Dr. James G. Roche Sustainment Excellence Award 2008 Providing Sustained MC Rate Greater Than 80%

15 C-130 Partnerships Performance-Based Logistics RAF Hercules Integrated Operational Support (HIOS) LM / UK Industry Partnership With Ministry Of Defence 24 Year Partnering Agreement (Marshall, LM, RR, MOD) Performance Assessed On Aircraft And Trainer Availability Industry Partner Co-Location Key to Program Success

16 C-130 Partnerships Performance-Based Logistics Aeronautica Militare Long Term Sustainment LM / Italian Industry Partnership With Ministry Of Defense Lockheed Martin, Alenia And Avio Industry Partner Team Support For 22 Italian C/KC-130Js 3-Year Initial Contract 5-Year Follow-on Contract For Implementation in 2010 Being Discussed

17 C-130 Partnerships Performance-Based Logistics RAAF Through Life Support (TLS) LM / Australian Aerospace Partnership With The Commonwealth of Australia 7-year Contract With Partnership For Life Of The Aircraft A PBL Contract Based On Aircraft Availability

18 C-130 Partnerships Performance-Based Logistics Canada In-Service Support (ISS) LM/Canada Industry Partnership with Canadian Department of National Defence 20+ Year Program Award Expected 4Q2009 Performance Metrics Based On Aircraft And Maintenance Training Availability Model for Future, Comprehensive Long Term Sustainment Solutions

19 Hercules 2010: A Year of Firsts First Commercial C-130 Center Wing Replacement Kit First Canada C-130J First USAF C-130J For Dyess AFB, Texas First HC/MC-130J Variant First HC-130J For USAF Air Combat Command First Commercial LM-Approved Glass Cockpit for Legacy Hercules First C-130 For India

20 Summary High Operational Demand For Air Mobility Exceptional Operational Performance by C-130 Fleet New Production On Time With Excellent Quality Growing C-130 Sustainment Business C-130 Program Continues To Perform Well The Hercules Legacy Is Only Half Written Lockheed Martin Aeronautics Company 20