1. Deutsche Bank 7th Annual Global
Industrials and Materials Summit
John Sznewajs
Chief Financial Officer
June 8, 2016
2. Safe Harbor Statement
Statements contained in this presentation that reflect our views about our future performance constitute
“forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,”
“plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views
about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our
actual results may differ materially from the results discussed in our forward-looking statements. We caution
you against relying on any of these forward-looking statements.
Our future performance may be affected by the levels of home improvement activity and new home
construction, our ability to maintain our strong brands and to develop and introduce new and improved
products, our ability to maintain our competitive position in our industries, our reliance on key customers, our
ability to achieve the anticipated benefits of our strategic initiatives, our ability to sustain the performance of
our cabinetry businesses, the cost and availability of raw materials, our dependence on third party suppliers,
and risks associated with international operations and global strategies. These and other factors are
discussed in detail, in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in
our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange
Commission. The forward-looking statements in this presentation speak only as of the date of this
presentation. Factors or events that could cause our actual results to differ may emerge from time to time,
and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to
update publicly any forward-looking statements as a result of new information, future events or otherwise.
2
4. Revenue1
$7.1B
Market cap >$10B
Dividend yield ~1.2%
Free Cash Flow2
~$500M
Focused on Repair & Remodel4
(Breakdown of 2015 Revenue)
New
Construction
Repair &
Remodel83%
17%
4
Liquidity3
$1.0B
M A S C O A T A G L A N C E
Global Leader in Branded Home Improvement and
Building Products
1. Revenue reflects 2015 Net Sales excluding the results of our Installation and Other Services segment which was spun off as TopBuild on 6/30/2015.
2. Free Cash Flow reflects the year ended 12/31/2015.
3. As of March 31, 2016 adjusted to exclude $1.3B of cash payment relating to the discharge of indebtedness in April 2016.
4. Based on company estimates; excludes TopBuild.
5. M A S C O A T A G L A N C E
Strong Brands with Industry Leading Positions
5
BUSINESS SEGMENT
Cabinetry
Products
Plumbing
Products
Decorative
Architectural
Products
$1.0B
$3.3B
$2.0B
REVENUE 2015
$7.1BTotal Company
Windows and
Other Specialty
Products
$0.8B
LEADING POSITIONS
Leading U.S. kitchen and bath
cabinetry brands
#1 worldwide in faucets, fittings,
showerheads
#1 in spas
Leading DIY paint and stain
provider
#1 in vinyl windows in the western
U.S.
6. M A S C O A T A G L A N C E
Key Strengths
6
1 Unparalleled brand strength
2 Customer focused innovation
3 Broad market coverage
4 Strong financial position
7. M A S C O A T A G L A N C E
Unparalleled Brand Strength
7
Masco Cabinetry
(cabinet manufacturer
in U.S.)
Delta®
(faucet brand
in North America)
Behr®
(DIY architectural
coatings in
North America)
Milgard®
(vinyl window
brand in
Western U.S.)
Hansgrohe®
(global faucet
and mixer brand)
Arrow®, Liberty®,
BrassCraft® and
Watkins®
(in their respective
categories)
#2
#1
#1 #1
#1
#2
8. M A S C O A T A G L A N C E
Leaders in Innovation
8
25%*
Examples of New Products / Technologies
Existing
Products
201420132012
75%
Hansgrohe SelectTM
Collection
KraftMaid® New
Design Launch
2015 Revenues
Delta® Toilets
Paint & Primer
in One
KraftMaid®
Vanities
Behr DeckOver®
Coating
KraftMaid
Vantage®
Cabinetry
Behr Marquee®
Coating
Delta Temp2O®
Showerhead
2015
Delta EssaTM
Collection
Behr Textured
DeckOver®
Coating
Axor® Starck V
Collection
*Based on company estimates
9. M A S C O A T A G L A N C E
Broad Coverage Across Attractive Segments, Price
Points and Channels
9
Segments Price Points Channels
New
construction
17%
Repair /
remodel
83%
International
21%
N. America
79%
• Low ticket value
~$20
• High ticket
luxury ~$20K
• Direct-to-Builder
• Big box retail
• Wholesale /
dealer trade
10. M A S C O A T A G L A N C E
Strong Balance Sheet with Significant Financial Flexibility
10
Strong Liquidity
(as of 3/31/2016)
Reducing Leverage
(as of 3/31/2016)
Balance Sheet Liquidity
Cash and cash investments $0.8B1
Short-term bank deposits $0.2B
Total $1.0B
1 Cash and cash investments excludes $1.3 billion of cash payments relating to the discharge of indebtedness in April 2016.
2 Net debt defined as Total Debt ($4.3 billion) less cash and cash investments ($2.2 billion) and short-term bank deposits ($0.2 billion).
3 See appendix for GAAP reconciliation.
4 Includes debt reduction of approximately $0.4 billion in April 2016.
Financial Flexibility
Net debt2 / Adjusted EBITDA3 1.7x
Revolver availability $.75B
Debt reduction since 20114 ~$1B
12. Organization
Operational Excellence
Portfolio and Capital
Allocation
T H E “ N E W ” M A S C O
Transformational Initiatives
Formed a new management team
Instituted a center led business model
Restructured HQ
Made key business unit management
changes
Completed spin off of TopBuild
Authorized share buy back of 50
million shares
Increased dividend
Reduced costs and increased efficiencies
Standardized planning processes
Prioritized capability building
Drove cost improvement culture
12
13. T H E “ N E W ” M A S C O
Created a Less Cyclical Business
13
North
America
19%81% Int’l
R&R 29%71% New home
North
America
21%79% Int’l
R&R 17%83% New home
Revenue Breakdown – International vs. North America
Revenue Breakdown – R&R vs. New Home Construction
1. Based on 2014 revenues (including TopBuild) and company estimates.
2. Based on 2015 revenue and company estimates.
More Global Diversification
Less Cyclicality
Pre-Spin1
Post-Spin2
14. 14
T H E “ N E W ” M A S C O
Focus on Operational Excellence
Aligned
on Key
Financial
Metrics
Capitalize on
our Strong
Operating
Leverage
Strong
Management
Team
Culture of
Accountability
15. R E S U L T S :
Stable Revenues, Strong Profitability
15
$6.3
$7.1
2012 2015
Revenues
($B)
$505
$927
2012 2015
$0.38
$1.19
2012 2015
EPS*
($)
Operating Profit*
($M)
4%
CAGR
22%
CAGR
46%
CAGR
*Amounts exclude TopBuild.
*See appendix for GAAP reconciliation. EPS as reported was $0.15 in 2012 and $1.03 in 2015.
17. S T R A T E G Y F O R G R O W T H
Fundamentals Impacting our End Markets are Strong
17
1
Age of US
Housing Stock
2
Home Price
Appreciation
3
Housing
Turnover
4
Household
Formation
5
Housing
Affordability
18. S T R A T E G Y F O R G R O W T H
Strategies which Capitalize on Masco’s Strengths
Decorative
Architectural
Products
Segment
Cabinetry
Products
Segment
Windows
And
Other
Specialty
Products
Segment
Plumbing
Products
Segment
1.Extend Milgard’s leadership position in Western U.S.
2.Pursue geographic expansion with Milgard® products
3.Extend UK Window Group’s leadership position
Sales Growth:
9-11% CAGR
Operating Margins:
~10-13%
1.Extend leadership in North American plumbing
2.Pursue category expansion
3.Growth in priority international markets, both organically and
inorganically
1.Extend our Consumer leadership position
2.Grow share in the PRO paint segment
3.Leverage the KILZ® and Liberty® family of brands
Sales Growth:
4-6% CAGR
Operating Margins:
~16-17%
3 Year GoalsStrategic Priorities
Sales Growth:
6-9% CAGR
Operating Margins:
~18%
1.Profitably recover KraftMaid® and Merillat® share
2.Execute Builder Direct turnaround
3.Achieve margin improvement targets
Sales Growth:
4-7% CAGR
Operating Margins:
~8-9%
19. 19Note: 2014 amounts restated to exclude TopBuild. Future performance reflects company estimates.
7%
CAGR
16%
CAGR
27%
CAGR
Revenue*
($B)
Operating Profit*
($B)
EPS*
($)
$6.8
$8.3
2014 2017
$0.88
$1.80
2014 2017
$0.74
$1.15
2014 2017
*2014 revenue and operating profit uses a $1.10 Euro to USD foreign exchange rate . See appendix for GAAP reconciliation.
S T R A T E G Y F O R G R O W T H
Clear Line of Sight to Profitable Growth
20. F I N A N C I A L F L E X I B I L I T Y
Strong Free Cash Flow Coupled with Disciplined
Capital Deployment
20
Invest in the business
Pay down debt
Bolt on acquisitions
Return capital to
shareholders
~$2B
FCF
2015 - 2017
21. +
+
New Masco. Positioned to Outperform
Leveraging a portfolio of industry leading
global brands with compelling growth
strategies
Aligned management team with a clear
strategic focus
Strong free cash flow generation and capital
management driving value to shareholders
+
Transformative actions have delivered
strengthened results and redefined Masco
21
Positioned to
Outperform
24. ($ in Millions) 2016 Estimate 2015 Actual1
Rationalization Charges2 ~ $8 $18
Tax Rate3 ~ 36% 43%
Interest Expense ~ $230 $225
General Corp. Expense4 ~ $100 $105
Capital Expenditures ~ $190 $152
Depreciation & Amortization ~ $140 $127
Shares Repurchased5 $400-500 $456
Shares Outstanding6 333 million 335 million
1. 2015 results exclude TopBuild.
2. Based on 2016 business plans.
3. 2015 tax rate is impacted by a $21 million valuation allowance resulting from our decision to spin off TopBuild, and a $19 million charge to recognize the
required taxes on substantially all undistributed foreign earnings except those that are legally restricted.
4. Excludes rationalization expenses of $4 million for the year ended December 31, 2015.
5. 2016 and 2015 share repurchases include approximately 1.0 million and 741,000 shares, respectively, that were repurchased to offset grants of long-term
stock awards.
6. Reflects weighted average diluted shares outstanding for the first quarter 2016 and assumes no further share repurchases in 2016.
24
2016 Guidance Estimates
25. 2015 Segment Mix*
R&R = % of sales to repair and remodel channels
NC = % of sales to new construction channels
NA = % of sales within North America
Int’l = % of sales outside North America
* Based on Company estimates; excludes TopBuild.
Business Segment
Plumbing
Products
Decorative
Architectural
Products
$3.3B
$2.0B
Revenue 2015 % of Total
47%
28%
$ 7.1B 100%Total Company
Windows and Other
Specialty Products
$0.8B 11%
R&R% vs. NC NA% vs. Int’l
83% 63%
99% 100%
70% 76%
83% 79%
Cabinetry Products $1.0B 14% 57% 92%
25
26. 2015 International Revenue Split*
*Based on Company estimates; excludes TopBuild.
International Sales Accounted for ~21%
of Total 2015 Masco Sales
International Sales Accounted for ~21%
of Total 2015 Masco Sales
29%
5%
8%
26%
5%
17%
10%
UK
Northern Europe
Southern Europe
Central Europe
Eastern Europe
Emerging markets
Other
26
27. Appendix – Net Sales and Profit Reconciliations
Last Twelve
Months Ended
March 31,
Year Ended December 31,
($ in Millions) 2016 2015 2014 2013 2012
Operating Profit, as reported $ 983 $ 914 $ 721 $ 612 $ 384
Rationalization charges 15 18 64 47 74
(Income) charge for litigation settlements - - (9) - 1
(Gain) from sales of fixed assets, net (5) (5) - - (8)
Impairment of goodwill and other intangible assets - - - - 42
Windows and Other Specialty Products - warranty - - - - 12
Operating Profit, as adjusted 993 927 776 659 505
Depreciation and amortization 128 127 141 157 173
EBITDA, as adjusted $ 1,121 $ 1,054 $ 917 $ 816 $ 678
($ in Millions) 2014
Net Sales
Net sales, as reported $ 7,006
Currency adjustment (204)
Net sales, as reported and FX modified $ 6,802
Operating Profit
Operating Profit, as adjusted $ 776
Currency adjustment (36)
Operating Profit, as adjusted and FX modified $ 740
28. Appendix – EPS Reconciliation
(in millions, except per common share data)
Year Ended December 31,
($ in Millions) 2015 2014 2012
Earnings Per Common Share
Income from continuing operations
before income taxes, as reported $ 689 $ 507 $ 155
Rationalization charges 18 64 74
Impairment of goodwill and other intangible assets - - 42
(Income) charge for litigation settlements - (9) 1
(Gain) from sale of fixed assets, net (5) - (8)
(Gain) from financial investments, net (6) (4) (22)
(Earnings) losses from equity investments, net (2) 2 -
Windows and Other Specialty Products – warranty - - 12
Interest carry costs - - 7
Income from continuing operations
before income taxes, as adjusted 694 560 261
Tax at 36% rate (250) (202) (94)
Less: Net income attributable to noncontrolling interest 39 47 35
Income from continuing operations, as adjusted $ 405 $ 311 $ 132
Income per common share, as adjusted $ 1.19 $ 0.88 $ 0.38
Average diluted common shares outstanding 341 352 349
