Masco Q4 2017 Earnings Presentation

1. Masco Corporation
Fourth Quarter and Full Year 2017 Earnings Presentation
February 8, 2018

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 residential repair and remodel activity and new home
construction, our ability to maintain our strong brands and reputation and to develop new products, our ability to
maintain our competitive position in our industries, our reliance on key customers, the cost and availability of raw
materials, our dependence on third-party suppliers, risks associated with international operations and global strategies,
our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition
strategy and integrate businesses that we have and may acquire, our ability to attract, develop and retain talented
personnel, our ability to achieve the anticipated benefits from our investments in new technology, risks associated with
our reliance on information systems and technology, and our ability to sustain the improved results of our U.S. window
business. 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. Any forward-looking statement made by us speaks only as of the date on which it was made.
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.
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3. Masco Q4 and Full Year 2017 Results
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Q&A
3

4. 2 0 1 7 I N R E V I E W
Execution Drives Shareholder Value
• Exceeded 2017 EPS target set in 2015
• Drove top- and bottom-line growth
• Gained share with our industry leading brands
• Invested in new products and programs
• Expanded profit margin
• Completed acquisition of Mercury Plastics and signed agreement to
purchase Kichler Lighting
• Strengthened balance sheet
• Returned $460 million to shareholders
Driving
Shareholder
Value
4

5. Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Q&A
Masco Q4 and Full Year 2017 Results
5

6. ($ in Millions)
Fourth Quarter
2017
Full Year
2017
Revenue
Y-O-Y Change
$1,874
7%
$7,644
4%
Operating Profit*
Y-O-Y Change
$265
$44
$1,173
$98
Operating Margin*
Y-O-Y Change
14.1%
150 bps
15.3%
70 bps
Adjusted EPS*
Y-O-Y Change
$0.44
33%
$1.94
28%
25th Consecutive Quarter of Sales and Operating Profit Growth
*See Appendix for GAAP reconciliation.
Quarter Highlights
• Total company sales increased 5% excluding the effects of foreign currency translation
• In local currency, North American sales increased 5% and international sales increased 3%
• FX favorably impacted sales by approximately $30 million
• Sale of Moores Furniture Group resulted in a loss of $64 million 6

7. P L U M B I N G P R O D U C T S
Strong North American and International Demand Fuels Growth
7
($ in Millions)
Fourth Quarter
2017
Full Year
2017
Revenue
Y-O-Y Change
$972
9%
$3,735
6%
Operating Profit*
Y-O-Y Change
$170
$17
$700
$45
Operating Margin*
Y-O-Y Change
17.5%
30 bps
18.7%
10 bps
*Excludes business rationalization charges for the fourth quarter and the full year 2017 of $1 million and $2 million, respectively,
and for the fourth quarter and the full year 2016 of $2 million and $13 million, respectively.
Quarter Highlights
• Total segment sales increased by 6% excluding the effects of foreign currency translation
• In local currency, North American sales increased 6% and international sales increased 7%
• FX favorably impacted sales by approximately $24 million
• Operating profit impacted by strategic growth investments of approximately $8 million
• Anticipate spend of approximately $10 million in 2018 related to Delta’s new ERP system
implementation (mainly Q2/Q3)

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 DIY Drives Top Line Performance
8
($ in Millions)
Fourth Quarter
2017
Full Year
2017
Revenue
Y-O-Y Change
$494
12%
$2,205
5%
Operating Profit
Y-O-Y Change
$88
$13
$434
$4
Operating Margin
Y-O-Y Change
17.8%
90 bps
19.7%
(90) bps
Quarter Highlights
• Behr achieved double-digit growth in its pro initiative and mid-single-digit growth in DIY
• Coatings favorably impacted by approximately $6 million of sales to hurricane impacted regions
• Liberty Hardware achieved double-digit growth and benefited from the load in of a new retail
cabinet hardware program for approximately $6 million
• Operating profit impacted by new program reset costs of approximately $7 million

9. 2018 Revenue Recognition & Kichler Impacts* (versus 2017)
9
Kichler Acquisition Impact** Q1 Q2 Q3 Q4 Full Year
Operating Profit Margin - ~(150-200 bps) ~(150-200 bps) ~(150-200 bps) ~(150-200 bps)
2018
Revenue Recognition Impact Q1 Q2 Q3 Q4 Full Year
Net Sales (in millions) ~($10) ~$10 ~$10 ~($10) -
Operating Profit Margin ~(100 bps) ~100 bps ~100 bps ~(100 bps) -
*Numbers are approximate and reflect company estimates.
**Assumes a March 31, 2018 transaction close, which is subject to customary closing conditions.
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
• Revenue recognition has minimal impact on full year net sales or operating profit margin
• Kichler acquisition expected to reduce segment operating profit margin by approximately 150-200 bps

10. C A B I N E T R Y P R O D U C T S
Expands Operating Margin and Wins New Retail Program
10
($ in Millions)
Fourth Quarter
2017
Full Year
2017
Revenue
Y-O-Y Change
$223
(5%)
$934
(4%)
Operating Profit*
Y-O-Y Change
$25
$6
$92
($9)
Operating Margin*
Y-O-Y Change
11.2%
310 bps
9.9%
(50) bps
*Excludes business rationalization charges for the full year 2017 of $2 million, and for the fourth quarter and the full year 2016 of
$3 million and $8 million, respectively.
Quarter Highlights
• Divested Moores Furniture Group in November 2017 (2018 sales impact of approximately $40 million)
• Segment sales decreased 1% excluding the divestiture of Moores
• Anticipate investment spend of approximately $9 million in Q1 2018 due to Menards’ program win
with the Cardell® cabinetry brand

11. 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
North American Windows Delivers Strong Turnaround
11
($ in Millions)
Fourth Quarter
2017
Full Year
2017
Revenue
Y-O-Y Change
$185
(3%)
$770
-
Operating Profit*
Y-O-Y Change
$5
($2)
$52
$54
Operating Margin*
Y-O-Y Change
2.7%
(100) bps
6.8%
710 bps
Quarter Highlights
• North American windows drove high single digit growth
• Segment sales increased 6% excluding the divestiture of Arrow Fastener
• Operating profit impacted by increased variable expenses, Arrow divestiture and softness in our UK
Windows operation
• Due to the sale of Arrow, the first half of 2018 sales and operating profit will be reduced by
approximately $30 million and $6 million, respectively
*Excludes business rationalization charges for both the fourth quarter and full year 2016 of $1 million.

12. Strong Balance Sheet
Liquidity as of 12/31/2017
Cash and cash investments $1.2B
Short-term bank deposits $0.1B
Total $1.3B
Disciplined Capital Allocation
• Repurchased approximately 9 million shares in 2017 for $331 million
• Increased annual dividend by $0.02 to $0.42 per share
• Refinanced high coupon debt, reducing interest expense
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13. Masco Q4 and Full Year 2017 Results
13
Topic
• Summary of Results Keith Allman
• Financial/Operations Review John Sznewajs
• Q&A

14. Q&A

15. Appendix

16. Appendix – Profit Reconciliations – Fourth Quarter
16
($ in Millions) Q4 2017 Q4 2016
Net sales $ 1,874 $ 1,759
Gross profit, as reported $ 616 $ 573
Rationalization charges 1 4
Gross profit, as adjusted $ 617 $ 577
Gross margin, as reported 32.9% 32.6%
Gross margin, as adjusted 32.9% 32.8%
Selling, general and administrative expenses, as reported $ 352 $ 358
Rationalization charges - 2
Selling, general and administrative expenses, as adjusted $ 352 $ 356
Selling, general and administrative expenses as percent of net sales, as reported 18.8% 20.4%
Selling, general and administrative expenses as percent of net sales, as adjusted 18.8% 20.2%
Operating profit, as reported $ 264 $ 215
Rationalization charges 1 6
Operating profit, as adjusted $ 265 $ 221
Operating margin, as reported 14.1% 12.2%
Operating margin, as adjusted 14.1% 12.6%

17. Appendix – Profit Reconciliations – Full Year
17
($ in Millions) 2017 2016
Net sales $ 7,644 $ 7,357
Gross profit, as reported $ 2,611 $ 2,456
Rationalization charges 4 14
Gross profit, as adjusted $ 2,615 $ 2,470
Gross margin, as reported 34.2% 33.4%
Gross margin, as adjusted 34.2% 33.6%
Selling, general and administrative expenses, as reported $ 1,442 $ 1,403
Rationalization charges - 8
Selling, general and administrative expenses, as adjusted $ 1,442 $ 1,395
Selling, general and administrative expenses as percent of net sales, as reported 18.9% 19.1%
Selling, general and administrative expenses as percent of net sales, as adjusted 18.9% 19.0%
Operating profit, as reported $ 1,169 $ 1,053
Rationalization charges 4 22
Operating profit, as adjusted $ 1,173 $ 1,075
Operating margin, as reported 15.3% 14.3%
Operating margin, as adjusted 15.3% 14.6%

18. Appendix – EPS Reconciliation – Fourth Quarter
18
(in Millions, Except per Common Share Data) Q4 2017 Q4 2016
Income before income taxes, as reported $ 161 $ 173
Rationalization charges 1 6
Loss on sale of business 64 -
(Gain) from auction rate securities - (2)
(Gains) from private equity funds, net (1) (3)
(Earnings) from equity investments, net - (1)
Loss from other investments - 3
Income before income taxes, as adjusted $ 225 $ 176
Tax at 34% rate (36% for 2016) (76) (63)
Less: Net income attributable to noncontrolling interest 12 8
Net income, as adjusted $ 137 $ 105
Net income per common share, as adjusted $ 0.44 $ 0.33
Average diluted common shares outstanding 314 323

19. Appendix – EPS Reconciliation – Full Year
19
(in Millions, Except per Common Share Data) 2017 2016
Income before income taxes, as reported $ 885 $ 830
Rationalization charges 4 22
Loss on sales of businesses, net 13 -
(Gain) from auction rate securities - (3)
(Gains) from private equity funds, net (3) (5)
(Earnings) from equity investments, net (1) (2)
Impairment of private equity funds 2 -
Loss on extinguishment of debt 107 -
Loss from other investments - 3
Income before income taxes, as adjusted $ 1,007 $ 845
Tax at 34% rate (36% for 2016) (342) (304)
Less: Net income attributable to noncontrolling interest 47 43
Net income, as adjusted $ 618 $ 498
Net income per common share, as adjusted $ 1.94 $ 1.51
Average diluted common shares outstanding 318 330

20. Appendix – Free Cash Flow and 2018 EPS Outlook Reconciliations
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(in Millions)
Cash from operations
Capital expenditures
Displays
Free cash flow
Low End High End
Net income per common share 2.36$ 2.51$
Rationalization charges 0.01 0.01
Kichler inventory purchase accounting adjustment 0.08 0.08
Allocation to participating securities per share (1) 0.03 0.03
Net income per common share, as adjusted 2.48$ 2.63$
Twelve Months Ended
December 31, 2018
(1) Represents the impact of distributed dividends and undistributed earnings to unvested restricted
stock awards in accordance with the two-class method of calculating earnings per share.
December 31, 2017
Twelve Months Ended
751$
564$
(14)
(173)

21. ($ in Millions) 2018 Estimate
Rationalization Charges ~ $5
Tax Rate1 ~ 26%
General Corporate Expense ~ $85
Interest Expense ~ $157
Increased ‘Other expense’ Due to Change in
Pension Expense Accounting
~ $17
Capital Expenditures2 ~ $220
Depreciation & Amortization2 ~ $135
Favorable Foreign Currency Translation
Impact to Sales3 ~ $90
Shares Repurchased $200-300
2018 Guidance Estimates
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1. Reduction in tax rate primarily due to the impact of tax reform, which is generally effective in 2018.
2. Does not include the impact of the potential acquisition of Kichler.
3. Based on rates as of December 31, 2017.

22. 2017 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
$3.7B
$2.2B
Revenue 2017 % of Total
49%
29%
$ 7.6B 100%Total Company
Windows and Other
Specialty Products
$0.8B 10%
R&R% vs. NC NA% vs. Int’l
83% 63%
99% 100%
71% 79%
84% 79%
Cabinetry Products $0.9B 12% 65% 95%
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23. 2017 Geographic Revenue Split*
*Based on Company estimates
International Sales Accounted for ~21%
of Total 2017 Masco Sales
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