Q2 2014 Earnings Presentation

1. Second Quarter 2014
Earnings Presentation
MASCO CORPORATION
July 29, 2014

2. Safe Harbor Statement
Written and oral statements made 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. These views 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 our reliance on new home construction and home
improvement, our reliance on key customers, the cost and availability of raw materials, uncertainty in the international
economy, shifts in consumer preferences and purchasing practices, our ability to improve our underperforming
businesses, and our ability to maintain our competitive position in our industries. 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. Our
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.
Certain of the financial and statistical data included in this presentation and the related materials are non-GAAP
financial measures as defined under Regulation G. The Company believes that non-GAAP performance measures and
ratios used in managing the business may provide attendees of this presentation with additional meaningful
comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should
be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles
generally accepted in the United States. Additional information about the Company is contained in the Company's
filings with the SEC and is available on Masco’s Web Site, www.masco.com.
2

3. Masco Q2 2014 Results
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Outlook Keith Allman
• Q&A
3

4. Key Messages Today
Revenue growth delivered by successful new products and
programs coupled with continued execution, despite lower
than expected industry growth
Sales and profit initiatives being executed to improve long-
term Cabinet performance
Margin expansion driven by strong operating leverage
4

5. Masco Q2 2014 Results
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Outlook Keith Allman
• Q&A
5

6. Consistent Execution Delivers Another Quarter of
Sales and Profit Growth
6
*See Appendix for GAAP reconciliation.
Quarter Highlights
• 11th consecutive quarter of top- and bottom-line growth
• North American sales increased 4%; international sales increased 2% in local
currency
• Strong operating leverage demonstrated by 39% incremental margin
($ in Millions)
Second Quarter
2014
Revenue
Change
$2,260
5%
Adjusted Operating Profit*
Y-O-Y Change
$249
21%
Adjusted Operating Margin*
Y-O-Y Change
11.0%
140 bps
Adjusted EPS* $0.32

7. Operating Margins Fueled by Strong Operating Leverage
7* Please note dollars are in millions. See appendix for GAAP reconciliation.
TO BE UPDATED
$206
$18
$27 $(2) $249
Q2 2013
Operating
Profit*
Net Volume /
Mix
Net Price /
Commodity
Net Total Cost
Productivity
Q2 2014
Operating
Profit*
Y-O-Y Change in
Operating Profit $43M

8. P L U M B I N G P R O D U C T S
8
Repair and Remodel Drives Sales and Profit Growth
*Excluding business rationalization charges of $8 million in the second quarter of 2013.
($ in Millions)
Second Quarter
2014
Revenue
Change
$849
6%
Adjusted Operating Profit*
Y-O-Y Change
$139
26%
Adjusted Operating Margin*
Y-O-Y Change
16.4%
270 bps
Quarter Highlights
• Wholesale/trade sales driven by increased repair and remodel
• Strong execution by international plumbing
• Margin expansion driven by operating leverage and favorable mix
• Anticipate mid-teen margins in this segment in the near term

9. 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
9
New Products and Pro Initiative Drive Sales
($ in Millions)
Second Quarter
2014
Revenue
Change
$596
5%
Adjusted Operating Profit*
Y-O-Y Change
$113
8%
Operating Margin*
Y-O-Y Change
19.0%
40 bps
Quarter Highlights
• New products, such as Behr Deckover and Behr Marquee Interior, as well as
the Pro paint initiative continue to drive gallon growth
• Builders’ hardware realizes share gains and volume growth
• Growth initiatives continue to deliver operating profit dollar growth
*Excluding business rationalization charges of $1 million in the second quarter of 2013.

10. C A B I N E T S A N D R E L AT E D P R O D U C T S
10
Business Stabilization Actions Continue
*Excluding business rationalization charges of $3 million in the second quarter of 2013.
($ in Millions)
Second Quarter
2014
Revenue
Change
$253
(5%)
Adjusted Operating Loss*
Y-O-Y Change
($8)
(N/M)
Adjusted Operating Margin*
Y-O-Y Change
(3.2%)
(510) bps
Quarter Highlights
• Sales growth in dealer channel more than offset by lower sales at home centers
• Executing revenue- and margin-expansion initiatives to improve performance
• Incremental and other one-time costs totaled:
• ~$10 million in Q1 related to inefficiencies and plant closures
• ~$10 million in Q2 related to ERP associated inefficiencies
• ~$5 million in Q3 related to ERP associated inefficiencies
• ERP implementation to complete by end of Q3

11. I N S TA L L AT I O N A N D O T H E R S E R V I C E S
11
Capitalizing on New Construction Trends
($ in Millions)
Second Quarter
2014
Revenue
Change
$384
8%
Adjusted Operating Profit*
Y-O-Y Change
$18
125%
Operating Margin*
Y-O-Y Change
4.7%
250 bps
Quarter Highlights
• Sales growth driven by improvement in residential new home construction,
commercial and distribution channels
• Profit and margin expansion driven by strong operating leverage
*Excluding business rationalization charges of $1 million in the second quarter of 2014.

12. O T H E R S P E C I A LT Y P R O D U C T S
12
Share Expansion Drives Strong Growth
*Excluding business rationalization charge of $1 million and $3 million in the second quarters of 2014 and 2013,
respectively.
($ in Millions)
Second Quarter
2014
Revenue
Change
$178
11%
Adjusted Operating Profit*
Y-O-Y Change
$15
7%
Adjusted Operating Margin*
Y-O-Y Change
8.4%
(40 bps)
Quarter Highlights
• Share expansion and positive mix shift drives revenue growth
• Margins impacted by ERP expense and growth investments

13. Strong Balance Sheet
Balance Sheet Liquidity as of 6/30/2014
Cash and cash investments $1.2B
Short-term bank deposits $0.2B
Total $1.4B
Q2 2014 Accomplishments
• Working capital as a percent of sales improved to 12.9% in Q2 2014,
compared to 13.1% in Q2 2013
13

14. Masco Q2 2014 Results
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Outlook Keith Allman
• Q&A
14

15. Go Forward Plan
15
1
2
3
Strategic
Plan
Listening tour
• Customers 
• Investors 
• Employees 
Immersion in the Business 
Short-term plan
• Assess team 
• Determine org structure 
• Implement operating model
End of
Q3 2014

16. Q&A

17. Appendix

18. Appendix – Profit Reconciliation – Second Quarter
18
($ in Millions) Q2 2014 Q2 2013
Sales $ 2,260 $ 2,149
Gross Profit – As Reported $ 661 $ 609
Rationalization charges - 11
Gross Profit – As Adjusted $ 661 $ 620
Gross Margin - As Reported 29.2% 28.3%
Gross Margin - As Adjusted 29.2% 28.9%
Operating Profit – As Reported $ 240 $ 188
Rationalization charges 9 18
Operating Profit – As Adjusted $ 249 $ 206
Operating Margin - As Reported 10.6% 8.7%
Operating Margin - As Adjusted 11.0% 9.6%

19. Appendix – EPS Reconciliation – Second Quarter
19
(in Millions, Except per Common Share Data) Q2 2014 Q2 2013
Income from Continuing Operations before Income Taxes – As Reported $ 190 $ 132
Rationalization charges 9 18
Gains from financial investments, net (3) (5)
Earnings from equity investments, net - (1)
Income from Continuing Operations before Income Taxes – As Adjusted $ 196 $ 144
Tax at 36% rate (71) (52)
Less: Net income attributable to noncontrolling interest 13 10
Net income, as adjusted $ 112 $ 82
Income per common share, as adjusted $ 0.32 $ 0.23
Average Diluted Shares Outstanding 352 352

20. ($ in Millions) 2014 Estimate 2013 Actual
Rationalization Charges1, 3 ~ $18 $48
Tax Rate ~ 17% 26%
Interest Expense ~ $225 $235
General Corp. Expense2 ~ $130 $134
Capital Expenditures ~ $175 $126
Depreciation &
Amortization3
~ $175 $186
Shares Outstanding 352 million 352 million
2014 Guidance Estimates
1. Based on 2014 business plans.
2. Includes rationalization expenses of $7M and $3M for the years ended December 31, 2014 and 2013, respectively.
3. Includes accelerated depreciation of $13M for the year ended December 31, 2013 and estimated accelerated depreciation for the year ended December
31, 2014 of ~$1M. Such expenses are also included in the rationalization charges.
20

21. 2013 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
Installation and
Other Services
Decorative
Architectural
Products
$3.2B
$1.4B
$1.9B
Revenue 2013 % of Total
39%
23%
17%
$8.2B 100%Total Company
Other Specialty
Products $0.7B 9%
R&R% vs. NC NA% vs. Int’l
82% 59%
99% 100%
18% 100%
74% 76%
72% 81%
Cabinets and
Related Products $1.0B 12% 57% 93%
21

22. 2013 International Revenue Split*
*Based on Company estimates.
International Sales Accounted for ~20%
of Total 2013 Masco Sales
23%
7%
6%
31%
9%
14%
10%
UK
Northern Europe
Southern Europe
Central Europe
Eastern Europe
Emerging markets
Other
22