2. Safe Harbor Statement
This presentation contains statements that reflect our views about our future performance and 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 improve our under-performing U.S. window business, 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
3. Masco Q2 2017 Results
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Q&A
3
4. Q 2 2 0 1 7 I N R E V I E W
Executing on Strategic Plan in 2017
• Top line growth driven by Plumbing and Decorative Architectural
segments
• Margin expansion resulting from Windows turnaround and strong
Plumbing performance
• Completed sale of Arrow Fastener for proceeds of $126 million
• Repurchased 1.2 million shares for $42 million
• Earnings per share target range updated to $1.93 to $2.00 from
$1.90 to $2.00 per common share*
• Board announced intention to increase annual dividend by $0.02
beginning in the fourth quarter
Driving
Shareholder
Value
4
*Future performance reflects company estimates
5. Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Q&A
Masco Q2 2017 Results
5
6. ($ in Millions)
Second Quarter
2017
Revenue
Y-O-Y Change
$2,057
3%
Operating Profit*
Y-O-Y Change
$357
$15
Operating Margin*
Y-O-Y Change
17.4%
30 bps
Adjusted EPS*
Y-O-Y Change
$0.60
30%
23rd Consecutive Quarter of Sales and Operating Profit Growth
*See Appendix for GAAP reconciliation.
Quarter Highlights
• Total company sales increased 4% excluding the effects of foreign currency translation
• In local currency, North American sales increased 4% and international sales increased 4%
• FX negatively impacted sales by $23 million
6
7. P L U M B I N G P R O D U C T S
Solid Top and Bottom Line Growth Against Difficult Comp
7
($ in Millions)
Second Quarter
2017
Revenue
Y-O-Y Change
$949
3%
Operating Profit*
Y-O-Y Change
$198
$6
Operating Margin*
Y-O-Y Change
20.9%
10 bps
* Excludes business rationalization charges for the second quarter 2016 of $4 million.
Quarter Highlights
• Total segment sales increased by 5% excluding the effects of foreign currency translation
• In local currency, North American sales increased 4% and international sales increased 5%
• FX negatively impacted sales by approximately $16 million
• Delta, Hansgrohe, and Watkins each achieved a record quarter for sales and operating profit
8. D E C O R AT I V E A R C H I T E C T U R A L P R O D U C T S
Pro Initiative and Program Expansion Drive Growth
8
($ in Millions)
Second Quarter
2017
Revenue
Y-O-Y Change
$653
5%
Operating Profit
Y-O-Y Change
$141
$2
Operating Margin
Y-O-Y Change
21.6%
(80) bps
Quarter Highlights
• Behr’s pro initiative achieved double digit growth
• Builders’ hardware benefited from shower door program expansion and continued growth
• Operating profit impacted by unfavorable price to commodity relationship in coatings
• Program reset costs of approximately $10 million related to a retail cabinet hardware
program win anticipated in Q3 2017
9. C A B I N E T R Y P R O D U C T S
Steady Growth in Repair and Remodel Business
9
($ in Millions)
Second Quarter
2017
Revenue
Y-O-Y Change
$251
(4%)
Operating Profit*
Y-O-Y Change
$30
($7)
Operating Margin*
Y-O-Y Change
12.0%
(220) bps
* Excludes business rationalization charges for the second quarter 2016 of $3 million.
Quarter Highlights
• Achieved mid-single digit growth in repair and remodel business against a tough double
digit comp
• Repair and remodel growth more than offset by declines in new home construction resulting
from the exit of certain low margin business
• Expect to incur costs of approximately $7 million in Q3 2017 related to new product
launches and the impact of Chinese plywood duties and tariffs
10. W I N D O W S A N D O T H E R S P E C I A LT Y P R O D U C T S
Significant Improvement to the Top and Bottom Line
10
($ in Millions)
Second Quarter
2017
Revenue
Y-O-Y Change
$204
4%
Operating Profit
Y-O-Y Change
$18
$20
Operating Margin
Y-O-Y Change
8.8%
980 bps
Quarter Highlights
• Sales increased 7% excluding the effects of foreign currency translation
• North American windows delivered strong 10% growth
• The Arrow Fastener divestiture will impact second half sales by approximately $38 million
and operating profit by approximately $8 million (split approximately evenly between Q3 and Q4)
11. Strong Balance Sheet
Liquidity as of 6/30/2017
Cash and cash investments $1.0B
Short-term bank deposits $0.1B
Total $1.1B
Disciplined Capital Allocation
• Repurchased approximately 1.2 million shares in Q2 for $42 million
• Refinanced high coupon debt, reducing interest expense by
approximately $3 million per quarter starting in Q3 2017
11
12. Masco Q2 2017 Results
12
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Q&A
15. Appendix – Profit Reconciliation – Second Quarter
($ in Millions) Q2 2017 Q2 2016
Net sales $ 2,057 $ 2,001
Gross profit, as reported $ 737 $ 700
Rationalization charges - 5
Gross profit, as adjusted $ 737 $ 705
Gross margin, as reported 35.8% 35.0%
Gross margin, as adjusted 35.8% 35.2%
Selling, general and administrative expenses, as reported $ 380 $ 365
Rationalization charges - 2
Selling, general and administrative expenses, as adjusted $ 380 $ 363
Selling, general and administrative expenses as percent of net
sales, as reported
18.5% 18.2%
Selling, general and administrative expenses as percent of net
sales, as adjusted
18.5% 18.1%
Operating profit, as reported $ 357 $ 335
Rationalization charges - 7
Operating profit, as adjusted $ 357 $ 342
Operating margin, as reported 17.4% 16.7%
Operating margin, as adjusted 17.4% 17.1%
15
16. Appendix – EPS Reconciliation – Second Quarter
(in Millions, Except per Common Share Data) Q2 2017 Q2 2016
Income before income taxes, as reported $ 255 $ 253
Rationalization charges - 7
(Gain) on sale of business (49) -
(Gain) from auction rate securities - (1)
(Gains) from private equity funds, net (1) (1)
(Earnings) from equity investments, net (1) -
Loss on extinguishment of debt 107 -
Income before income taxes, as adjusted $ 311 $ 258
Tax at 34% rate (36% for 2016) (106) (93)
Less: Net income attributable to noncontrolling interest 13 13
Net income, as adjusted $ 192 $ 152
Net income per common share, as adjusted $ 0.60 $ 0.46
Average diluted common shares outstanding 319 331
16
17. Appendix – EPS Reconciliation – Full Year Outlook
Low End High End
Net income per common share 1.81$ 1.88$
Loss on extinguishment of debt 0.22 0.22
(Gain) on sale of business (0.10) (0.10)
Net income per common share, as adjusted 1.93$ 2.00$
Twelve Months Ended
December 31, 2017
17
18. ($ in Millions) 2017 Estimate 2016 Actual
Rationalization Charges ~ $3 $22
Tax Rate1 ~ 34% 36%
Quarterly Interest Expense (Q3 & Q4 2017) ~ $41 $229
General Corp. Expense ~ $100 $109
Capital Expenditures ~ $190 $180
Depreciation & Amortization ~ $130 $134
Foreign Currency Translation Impact to Sales2 ~ ($15) ($68)
Shares Repurchased3 $400-500 $459
2017 Guidance Estimates
18
1. Reduction in tax rate from prior guidance primarily due to the adoption of ASU 2016-09 related to stock-based compensation.
2. Based on rates as of June 30, 2017.
3. 2017 and 2016 share repurchases include approximately 817,000 and 1.1 million shares that were repurchased to offset grants of long-term stock awards.
19. 2016 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
Business Segment
Plumbing
Products
Decorative
Architectural
Products
$3.5B
$2.1B
Revenue 2016 % of Total
48%
28%
$ 7.4B 100%Total Company
Windows and Other
Specialty Products
$0.8B 11%
R&R% vs. NC NA% vs. Int’l
82% 63%
99% 100%
71% 78%
83% 79%
Cabinetry Products $1.0B 13% 61% 94%
19
20. 2016 International Revenue Split*
*Based on Company estimates
International Sales Accounted for ~21%
of Total 2016 Masco Sales
27%
5%
8%
28%
6%
16%
10%
20
United
Kingdom
Northern
Europe
Other
Emerging
Markets
Eastern
Europe
Southern
Europe
Central
Europe
