How large is R² and what does it mean? What proportion of the stocks total risk is caused by the company itself or what proportion of its total risk is unsystematic risk?

308 6% 0% 1 MARTIN MARIETTA MATERIALS INC (MLM) CashFlowFlag INCOME STATEMENT COMMON SIZE INCOME STATEMENT 2 Fiscal year ends in December. USD 2016-12 2017-12 2013-12 2019-12 2020-12 2016-12 2017-12 2013-12 2019-12 2020-12 3 Revenue 3819 3966 4244 4422 4432 131% 132% 129% 137% 140% 4 Cost of revenue 2910 2994 3278 3239 3176 100% 100% 100% 100% 100% 5 Gross profit 909 972 966 1183 1257 31% 32% 29% 37% 40% 6 Operating expenses 7 Sales, General and administrative 248 262 281 298 9% 9% 9% 9% 9% 8 Restructuring, merger and acquisitic 2 9 13 1 0 0% 0% 0% 0% 0% 9 Other operating expenses -10 -8 -32 -5 14 0% 0% -1% 0% 0% 10 Total operating expenses 240 263 262 303 311 8% 9% 8% 9% 10% 11 Operating income 669 709 704 880 945 23% 24% 21% 27% 30% 12 Interest Expense 82 91 137 129 118 3% 3% 4% 4% 4% 13 Other income (expense) 20 1 9 0 0 1% 0% 0% 0% 0% 14 Income before taxes 607 619 576 751 827 21% 21% 18% 23% 26% 15 Provision for income taxes 182 -94 106 136 168 -3% 3% 4% 5% 16 Net income from continuing opera 425 713 470 615 659 15% 24% 14% 19% 21% 17 Net income from discontinuing ops 0 0 0 -3 63 0% 0% 0% 2% 18 Net income 425 713 470 612 721 15% 24% 14% 19% 23% 19 Earnings per share 20 Basic 6.64 11.32 7.46 9.79 11.57 21 Diluted 6.64 11.32 7.46 9.76 11.55 22 Weighted average shares outstanding 23 Basic 64 63 63 63 62 24 Diluted 64 63 63 63 62 25 26 Sales growth rate 3.85% 7.01% 4.20% 0.22% +Revenve2020/Revenve2019-1 27 Tax rate 29.98% -15.19% 18.40% 18.15% 20.35% = Provision for income taxes/Income before yaxes 28 29 MARTIN MARIETTA MATERIALS INC (MLM) CashFlowFlag BALANCE SHEET COMMON SIZE BALANCE SHEET 30 Fiscal year ends in December. USD 2016-12 2017-12 2013-12 2019-12 2020-12 2016-12 2017-12 2013-12 2019-12 2020-12 31 Assets 32 Current assets 33 Cash and cash equivalents 50 1446 45 21 304 1.7% 48.3% 1.4% 0.6% 9.6% 34 Short-term investments 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 35 Receivables 458 487 523 574 575 15.7% 16.3% 16.0% 17.7% 18.1% 36 Inventories 522 601 663 691 709 17.9% 20.1% 20.2% 21.3% 22.3% 37 Deferred income taxes 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 38 Other current assets 57 97 135 141 80 2.0% 3.2% 4.1% 4.4% 2.5% 39 Total current assets 1087 2631 1366 1427 1668 37.4% 87.9% 41.7% 44.0% 52.5% 40 Non-current assets 0.0% 0.0% 0.0% 0.0% 0.0% 41 Property, plant and equipment 42 Gross property, plant and equipmer 6116 6498 8295 9115 9408 210.2% 217.0% 253.1% 281.4% 296.3% 43 Accumulated Depreciation -2692 -2905 -3138 -3428 -3713 -92.5% -97.0% -95.7% 44 Net property, plant and equipment 3424 3593 5157 5688 5695 117.7% 120.0% 157.3% 175.6% 179.3% 45 Equity investments 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 46 Goodwill 2159 2160 2399 2397 2414 74.2% 72.1% 73.2% 74.0% 76.0% 47 Intangible assets 511 506 501 487 508 17.6% 16.9% 15.3% 15.0% 16.0% 48 Deferred income taxes 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 49 Other long-term assets 120 102 128 133 295 4.1% 3.4% 3.9% 4.1% 9.3% 213.5% 212.5% 249.7% 268.7% 280.7% 250.9% 300.3% 291.4% 312.8% 333.2% 6.2% 10.0% 11.9% 12.2% 1.6% 6.2% 6.1% 6.4% 7.1% 6.5% 3.7% 3.6% 3.5% 3.7% 4.0% 2.7% 3.4% 2.2% 2.9% 3.6% 18.8% 23.2% 24.0% 25.9% 15.7% Om 51.8% 91.1% 83.3% 88.7% 96.3% 22.8% 13.7% 21.5% 22.6% 24.6% 8.5% 8.1% 4.1% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 6.7% 7.8% 7.5% 10.3% 11.0% 89.8% 120.9% 116.5% 121.7% 132.0% 108.6% 144.1% 140.5% 147.6% 147.7% 50 Total non-current assets 6214 6361 8185 8705 8913 51 Total assets 7301 8992 9551 10132 10581 52 Liabilities and stockholders' equity 53 Liabilities 54 Current liabilities 55 Short-term debt 180 300 390 396 52 56 Accounts payable 179 184 211 230 208 57 Accrued liabilities 108 109 115 120 126 58 Other current liabilities 80 101 71 94 114 59 Total current liabilities 547 694 787 839 499 60 Non-current liabilities 61 Long-term debt 1506 2727 2730 2873 3057 62 Deferred taxes liabilities 663 411 706 733 782 63 Pensions and other benefits 248 244 134 0 0 64 Minority interests 3 3 3 3 3 65 Other long-term liabilities 194 234 245 333 349 66 Total non-current liabilities 2614 3619 3818 3942 4191 67 Total liabilities 3161 4313 4605 4781 4690 68 Stockholders' equity 69 Common stock 1 1 1 1 1 70 Additional paid-in capital 3334 3368 3396 3419 3441 71 Retained earnings 936 1440 1693 2077 2608 72 Treasury stock 0 0 0 0 0 73 Accumulated other comprehensive -131 -130 -144 -146 -158 74 Total stockholders' equity 4140 4679 4946 5351 5891 75 Total liabilities and stockholders' e 7301 8992 9551 10132 10581 76 check 0 0 0 0 0 77 78 MARTIN MARIETTA MATERIALS INC (MLM) Statement of CASH FLOW 79 Fiscal year ends in December. USD 2016-12 2017-12 2015-12 2019-12 2020-12 80 Cash Flows From Operating Activities 81 Net income 425 713 470 612 721 82 Depreciation & amortization 285 297 344 372 394 83 Deferred income taxes 67 -239 85 84 Stock based compensation 20 29 31 -43 85 Change in working capital -95 -112 -192 38 46 86 Accounts receivable -25 -29 -11 -50 6 87 Inventory -47 -22 -28 -19 88 Accounts payable -8 -18 20 26 -34 89 Other working capital -15 15 -180 90 Other non-cash items -24 -33 -31 -34 -20 91 Net cash provided by operating act 679 658 705 966 1050 92 Cash Flows From Investing Activities 93 Investments in property, plant, an -387 -410 -376 -394 -360 94 Acquisitions, net -168 24 -1573 8 77 95 Other investing activities 1 -1 127 0.0% 0.0% 0.0% 0.0% 0.0% 114.6% 112.5% 103.6% 105.5% 108.4% 32.2% 48.1% 51.6% 64.1% 82.1% 0.0% 0.0% 0.0% 0.0% 0.0% -4.5% -4.3% -4.4% -4.5% -5.0% 142.3% 156.3% 150.9% 165.2% 185.5% 250.9% 300.3% 291.4% 312.8% 333.2% 30 -79 -555 -386 -1948 -386 -410 2409 -1069 1000 -914 625 -986 14 -126 628 -781 2 -65 -112 -112 96 Net cash used for investing activiti 97 Cash Flows From Financing Activities 98 Debt issued 99 Debt repayment 100 Common stock issued 101 Common stock repurchased 102 Excess tax benefit from stock baser 103 Dividend paid 104 Other financing activities 105 Net cash provided by (used for) fin: 106 Net change in cash 107 Cash at beginning of period 108 Cash at end of period 109 560 -453 21 -259 7 -105 -13 -242 -118 168 50 -140 -109 5 1125 1396 50 1446 -116 -16 -158 -1401 1446 45 -130 -1 -604 -24 45 21 -357 283 21 304 308 6% 0% 1 MARTIN MARIETTA MATERIALS INC (MLM) CashFlowFlag INCOME STATEMENT COMMON SIZE INCOME STATEMENT 2 Fiscal year ends in December. USD 2016-12 2017-12 2013-12 2019-12 2020-12 2016-12 2017-12 2013-12 2019-12 2020-12 3 Revenue 3819 3966 4244 4422 4432 131% 132% 129% 137% 140% 4 Cost of revenue 2910 2994 3278 3239 3176 100% 100% 100% 100% 100% 5 Gross profit 909 972 966 1183 1257 31% 32% 29% 37% 40% 6 Operating expenses 7 Sales, General and administrative 248 262 281 298 9% 9% 9% 9% 9% 8 Restructuring, merger and acquisitic 2 9 13 1 0 0% 0% 0% 0% 0% 9 Other operating expenses -10 -8 -32 -5 14 0% 0% -1% 0% 0% 10 Total operating expenses 240 263 262 303 311 8% 9% 8% 9% 10% 11 Operating income 669 709 704 880 945 23% 24% 21% 27% 30% 12 Interest Expense 82 91 137 129 118 3% 3% 4% 4% 4% 13 Other income (expense) 20 1 9 0 0 1% 0% 0% 0% 0% 14 Income before taxes 607 619 576 751 827 21% 21% 18% 23% 26% 15 Provision for income taxes 182 -94 106 136 168 -3% 3% 4% 5% 16 Net income from continuing opera 425 713 470 615 659 15% 24% 14% 19% 21% 17 Net income from discontinuing ops 0 0 0 -3 63 0% 0% 0% 2% 18 Net income 425 713 470 612 721 15% 24% 14% 19% 23% 19 Earnings per share 20 Basic 6.64 11.32 7.46 9.79 11.57 21 Diluted 6.64 11.32 7.46 9.76 11.55 22 Weighted average shares outstanding 23 Basic 64 63 63 63 62 24 Diluted 64 63 63 63 62 25 26 Sales growth rate 3.85% 7.01% 4.20% 0.22% +Revenve2020/Revenve2019-1 27 Tax rate 29.98% -15.19% 18.40% 18.15% 20.35% = Provision for income taxes/Income before yaxes 28 29 MARTIN MARIETTA MATERIALS INC (MLM) CashFlowFlag BALANCE SHEET COMMON SIZE BALANCE SHEET 30 Fiscal year ends in December. USD 2016-12 2017-12 2013-12 2019-12 2020-12 2016-12 2017-12 2013-12 2019-12 2020-12 31 Assets 32 Current assets 33 Cash and cash equivalents 50 1446 45 21 304 1.7% 48.3% 1.4% 0.6% 9.6% 34 Short-term investments 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 35 Receivables 458 487 523 574 575 15.7% 16.3% 16.0% 17.7% 18.1% 36 Inventories 522 601 663 691 709 17.9% 20.1% 20.2% 21.3% 22.3% 37 Deferred income taxes 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 38 Other current assets 57 97 135 141 80 2.0% 3.2% 4.1% 4.4% 2.5% 39 Total current assets 1087 2631 1366 1427 1668 37.4% 87.9% 41.7% 44.0% 52.5% 40 Non-current assets 0.0% 0.0% 0.0% 0.0% 0.0% 41 Property, plant and equipment 42 Gross property, plant and equipmer 6116 6498 8295 9115 9408 210.2% 217.0% 253.1% 281.4% 296.3% 43 Accumulated Depreciation -2692 -2905 -3138 -3428 -3713 -92.5% -97.0% -95.7% 44 Net property, plant and equipment 3424 3593 5157 5688 5695 117.7% 120.0% 157.3% 175.6% 179.3% 45 Equity investments 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 46 Goodwill 2159 2160 2399 2397 2414 74.2% 72.1% 73.2% 74.0% 76.0% 47 Intangible assets 511 506 501 487 508 17.6% 16.9% 15.3% 15.0% 16.0% 48 Deferred income taxes 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 49 Other long-term assets 120 102 128 133 295 4.1% 3.4% 3.9% 4.1% 9.3% 213.5% 212.5% 249.7% 268.7% 280.7% 250.9% 300.3% 291.4% 312.8% 333.2% 6.2% 10.0% 11.9% 12.2% 1.6% 6.2% 6.1% 6.4% 7.1% 6.5% 3.7% 3.6% 3.5% 3.7% 4.0% 2.7% 3.4% 2.2% 2.9% 3.6% 18.8% 23.2% 24.0% 25.9% 15.7% Om 51.8% 91.1% 83.3% 88.7% 96.3% 22.8% 13.7% 21.5% 22.6% 24.6% 8.5% 8.1% 4.1% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 6.7% 7.8% 7.5% 10.3% 11.0% 89.8% 120.9% 116.5% 121.7% 132.0% 108.6% 144.1% 140.5% 147.6% 147.7% 50 Total non-current assets 6214 6361 8185 8705 8913 51 Total assets 7301 8992 9551 10132 10581 52 Liabilities and stockholders' equity 53 Liabilities 54 Current liabilities 55 Short-term debt 180 300 390 396 52 56 Accounts payable 179 184 211 230 208 57 Accrued liabilities 108 109 115 120 126 58 Other current liabilities 80 101 71 94 114 59 Total current liabilities 547 694 787 839 499 60 Non-current liabilities 61 Long-term debt 1506 2727 2730 2873 3057 62 Deferred taxes liabilities 663 411 706 733 782 63 Pensions and other benefits 248 244 134 0 0 64 Minority interests 3 3 3 3 3 65 Other long-term liabilities 194 234 245 333 349 66 Total non-current liabilities 2614 3619 3818 3942 4191 67 Total liabilities 3161 4313 4605 4781 4690 68 Stockholders' equity 69 Common stock 1 1 1 1 1 70 Additional paid-in capital 3334 3368 3396 3419 3441 71 Retained earnings 936 1440 1693 2077 2608 72 Treasury stock 0 0 0 0 0 73 Accumulated other comprehensive -131 -130 -144 -146 -158 74 Total stockholders' equity 4140 4679 4946 5351 5891 75 Total liabilities and stockholders' e 7301 8992 9551 10132 10581 76 check 0 0 0 0 0 77 78 MARTIN MARIETTA MATERIALS INC (MLM) Statement of CASH FLOW 79 Fiscal year ends in December. USD 2016-12 2017-12 2015-12 2019-12 2020-12 80 Cash Flows From Operating Activities 81 Net income 425 713 470 612 721 82 Depreciation & amortization 285 297 344 372 394 83 Deferred income taxes 67 -239 85 84 Stock based compensation 20 29 31 -43 85 Change in working capital -95 -112 -192 38 46 86 Accounts receivable -25 -29 -11 -50 6 87 Inventory -47 -22 -28 -19 88 Accounts payable -8 -18 20 26 -34 89 Other working capital -15 15 -180 90 Other non-cash items -24 -33 -31 -34 -20 91 Net cash provided by operating act 679 658 705 966 1050 92 Cash Flows From Investing Activities 93 Investments in property, plant, an -387 -410 -376 -394 -360 94 Acquisitions, net -168 24 -1573 8 77 95 Other investing activities 1 -1 127 0.0% 0.0% 0.0% 0.0% 0.0% 114.6% 112.5% 103.6% 105.5% 108.4% 32.2% 48.1% 51.6% 64.1% 82.1% 0.0% 0.0% 0.0% 0.0% 0.0% -4.5% -4.3% -4.4% -4.5% -5.0% 142.3% 156.3% 150.9% 165.2% 185.5% 250.9% 300.3% 291.4% 312.8% 333.2% 30 -79 -555 -386 -1948 -386 -410 2409 -1069 1000 -914 625 -986 14 -126 628 -781 2 -65 -112 -112 96 Net cash used for investing activiti 97 Cash Flows From Financing Activities 98 Debt issued 99 Debt repayment 100 Common stock issued 101 Common stock repurchased 102 Excess tax benefit from stock baser 103 Dividend paid 104 Other financing activities 105 Net cash provided by (used for) fin: 106 Net change in cash 107 Cash at beginning of period 108 Cash at end of period 109 560 -453 21 -259 7 -105 -13 -242 -118 168 50 -140 -109 5 1125 1396 50 1446 -116 -16 -158 -1401 1446 45 -130 -1 -604 -24 45 21 -357 283 21 304