1. Fourth Quarter 2013
Masco Earnings Presentation

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. 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,
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.
The Company believes that the non-GAAP performance measures and ratios that are contained
herein, used in managing the business, may provide users of this financial information 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
Securities and Exchange Commission and is available on Masco's website at www.masco.com.
2

3. Masco Q4 and Full-Year 2013 Results – Agenda
Topic
• Summary of Results
Tim Wadhams
• Financial/Operations Review
John Sznewajs
• Outlook
Keith Allman
• Q&A
3

4. Key Messages Today
New home construction and improved repair and remodel
activity drive North American sales; international sales
continue growth momentum
New product introductions in Paint and Plumbing drive
consumer demand and sales growth
Cabinets and Installation return to profitability in 2013
Operating leverage and cost control improve profitability;
sales and profit grow across all segments
Masco delivers solid 4th quarter resulting
in a strong 2013 performance
4

5. Delivering on 2013 Priorities
Cabinet profit improvement
Profitably grow Installation
Successfully launch new products and programs
Reduce debt by ~$200M
Investment in strategic growth initiatives
Grow share of key brands
Total cost productivity
Geographic expansion
5

6. Strategy Execution Highlights Q4 2013
1
• Innovation drives successful product and program introductions
Expand market
leadership
• Wholesale/dealer channel sales continue to increase
• Focused execution delivers share gains
2
Reduce costs
3
Improve
underperforming
businesses
4
Strengthen
balance sheet
6
• Continued commitment to cost control results in SG&A
leverage and margin improvement
• Dealer and builder channels drive North American cabinetry
growth
• Installation growth in new home construction, commercial,
distribution and retrofit channels
• Finalized sale of Danish cabinetry business
• Strong working capital management
• Free cash flow exceeds $500 million
• Balance sheet liquidity at year-end of $1.5 billion

7. Masco Q4 and Full-Year 2013 Results – Agenda
Topic
• Summary of Results
Tim Wadhams
• Financial/Operations Review
John Sznewajs
• Outlook
Keith Allman
• Q&A
7

8. Ninth Consecutive Quarter of Sales & Profit Growth
($ in Millions)
Revenue
Y-O-Y Growth
Fourth Quarter
2013
Full Year
2013
$1,998
$8,173
9%
9%
Adjusted Operating
Profit*
$153
$721
Adjusted Operating
Margin*
7.7%
210 bps
8.8%
210 bps
Adjusted EPS*
$0.15
$0.77
Y-O-Y Growth
Y-O-Y Growth
49%
*See appendix for GAAP reconciliation.
Full Year Highlights
•
North American sales increased 10%; international sales
increased 4% in local currency
•
Sales growth driven by new products at retail and improved new
home construction and repair and remodeling activity
•
Margin expansion reflects operating leverage and cost control
•
8
Q4 was impacted by approx. $6 million of unanticipated
insurance costs
44%

9. Continued Improvement in Operating Profit
Y-O-Y Change in Adjusted
Operating Profit $221M*
9
*See appendix for GAAP reconciliation

10. Plumbing Products:
Strong Faucet Sales Drive Segment Growth
Fourth Quarter
2013
Full Year
2013
Revenue
$799
$3,183
Adjusted Operating
Profit*
$97
$418
Adjusted Operating
Margin*
12.1%
13.1%
($ in Millions)
Y-O-Y Growth
Y-O-Y Growth
Y-O-Y Growth
8%
35%
240 bps
8%
26%
190 bps
*Excluding business rationalization charges of $9 million and $7 million in the fourth quarters of 2013 and 2012,
respectively, and $24 million and $25 million for the full year 2013 and 2012, respectively.
Quarter Highlights
•
•
International growth drives mid-single-digit percentage gains, outpacing
Eurozone economies
•
New programs continue to drive growth
•
10
Strong performance with both trade and retail driven by increased repair and
remodel activity
Improved margins due to increased volume

11. Decorative Architectural Products:
New Products Continue to Drive Growth
Fourth Quarter
2013
Full Year
2013
Revenue
$408
$1,927
Adjusted Operating
Profit*
$66
$353
Adjusted Operating
Margin*
16.2%
18.3%
($ in Millions)
Y-O-Y Growth
Y-O-Y Growth
Y-O-Y Growth
6%
2%
(60) bps
6%
7%
20 bps
*Excluding business rationalization charges of $1 million and $2 million in the fourth quarter and full year 2013,
respectively.
Quarter Highlights
•
•
Share gains and new programs drive high-teens percentage growth in
builder hardware
•
11
New product introductions, Pro, and international drive high-single-digit
percentage paint gallon growth
Investment in promotions/advertising to drive gallon growth impacted
margins

12. Cabinets and Related Products:
Focused Execution Drives Profitable Growth
Fourth Quarter
2013
Full Year
2013
Revenue
$251
$1,014
Adjusted Operating
(Loss) Profit*
($4)
76%
$2
104%
Adjusted Operating
Margin*
(1.6%)
0.2%
($ in Millions)
Y-O-Y Growth
Y-O-Y Growth
Y-O-Y Growth
9%
580 bps
8%
610 bps
*Excluding business rationalization charges of $2 million and $23 million in the fourth quarters of 2013 and 2012,
respectively, and $12 million and $34 million for the full year 2013 and 2012, respectively.
Quarter Highlights
•
•
Sales growth benefitted from increased new housing starts
•
U.K. demand continues to improve
•
12
Increased KraftMaid dealer channel sales driven by strong repair
and remodel activity and new product introductions
Improved operating results by $13 million ($57 million for the year)

13. Installation and Other Services:
Ten Quarters of Consecutive Y-O-Y Sales and Profit Growth
Fourth Quarter
2013
Full Year
2013
Revenue
$373
$1,412
Adjusted Operating
Profit*
$15
$38
($ in Millions)
Y-O-Y Growth
Y-O-Y Growth
Adjusted Operating
Margin*
Y-O-Y Growth
15%
17%
150%
311%
4.0%
2.7%
210 bps
420 bps
*Excluding business rationalization charges of $1 million in each of the full years 2013 and 2012.
Quarter Highlights
•
•
Increased take-per-unit, upgrades and share gains drive growth
•
Margins continue to improve as a result of operating leverage and
productivity improvements
•
13
Sales growth driven by higher volumes in residential new home
construction, commercial, distribution and retrofit channels
Improved operating profit by $9 million ($56 million for the year)

14. Other Specialty Products:
Strong Performance by North American Windows
($ in Millions)
Revenue
Y-O-Y Growth
Adjusted Operating
Profit*
Y-O-Y Growth
Adjusted Operating
Margin*
Y-O-Y Growth
Fourth Quarter
2013
Full Year
2013
$167
$637
$9
$41
5.4%
6.4%
9%
29%
80 bps
11%
71%
220 bps
*Excluding business rationalization charge of $6 million and $1 million in the full year 2013 and 2012, respectively.
Excluding warranty change in estimate of $12 million in the full year of 2012. Also excludes impairment charges for
goodwill and other intangible assets of $42 million in the fourth quarter and full year 2012.
Quarter Highlights
•
•
Milgard continues to gain share in existing and new markets
•
Continued traction with new products and favorable mix
•
14
North American window sales volume growth percentage in the low
teens driven by increases across all channels
Margin expansion driven by operating leverage

15. Strengthening the Balance Sheet
2013 Accomplishments
• Retired $200M debt maturity in August with existing cash
• Working capital as a percent of LTM sales improved to 10.6% in
2013, compared to 12.1% in 2012
• Free cash flow exceeds $500M
Balance Sheet Liquidity as of 12/31/2013
Cash and cash investments
Short-term bank deposits
$0.3B
Total
15
$1.2B
$1.5B

16. Masco Q4 and Full-Year 2013 Results – Agenda
Topic
• Summary of Results
Tim Wadhams
• Financial/Operations Review
John Sznewajs
• Outlook
Keith Allman
• Q&A
16

17. Outlook
Risks
• Velocity of global economic
recovery
• Consumer confidence
• Commodity volatility
• Housing affordability/financing
costs/mortgage availability
Opportunities
• Improving repair and remodel
demand, including big ticket
items
• Continued growth/demand in
new home construction
• Share gains at retail and with
big builders
• Strong liquidity
• Capitalize on operating
leverage
17

18. 2014 Priorities
Grow share of market-leading brands
Accelerate customer-focused innovation pipeline
Focus on execution to drive profitable growth in
cabinets and installation
Further penetrate international markets
Drive operational leverage through focus
on cost containment
Strengthen the balance sheet including
reducing debt by $300-500 million by 2016
18

19. Q&A

20. Appendix – Profit Reconciliation – Fourth Quarter
($ in M illions)
Q4 2013
Q4 2012
Sales
$
1,998
$
1,831
Gross Profit – As Reported
$
531
$
451
10
Rationalization charges
Gross Profit – As Adjusted
$
Gross Margin - As Reported
Gross Margin - As Adjusted
Operating Profit – As Reported
541
27
$
26.6%
27.1%
$
Rationalization charges
141
478
24.6%
26.1%
$
31
12
30
Impairment of goodwill and other intangible assets
-
42
Charge for litigation settlements, net
-
3
Gain from sales of fixed assets, net
-
(3)
Operating Profit – As Adjusted
Operating Margin - As Reported
Operating Margin - As Adjusted
20
$
153
7.1%
7.7%
$
103
1.7%
5.6%

21. Appendix – Profit Reconciliation – Full-Year
($ in M illions)
2013
2012
Sales
$
8,173
$
7,495
Gross Profit – As Reported
$
2,255
$
1,956
Rationalization charges
Other Specialty Products - Warranty
Gross Profit – As Adjusted
33
$
Gross Margin - As Reported
Gross Margin - As Adjusted
Operating Profit – As Reported
Operating Margin - As Reported
Operating Margin - As Adjusted
21
$
27.6%
28.0%
$
Rationalization charges
Impairment of goodwill and other intangible assets
Charge for litigation settlements, net
Gain from sales of fixed assets, net
Other Specialty Products - warranty
Operating Profit – As Adjusted
2,288
50
12
673
26.1%
26.9%
$
48
$
721
8.2%
8.8%
2,018
302
75
42
77
(8)
12
$
500
4.0%
6.7%

22. Appendix – EPS Reconciliation – Fourth Quarter
(in M illions, Ex cept per Com m on Share Data)
Income (Loss) from Continuing Operations before Income Taxes – As Reported
Q4 2013
$
Q4 2012
70
$
(26)
Rationalization charges
12
30
Currency translation expense – Masco Denmark
18
-
Gains from financial investments, net
(3)
(4)
Charge for litigation settlements, net
-
3
Impairment of goodwill and other intangible assets
-
42
Gain from sales of fixed assets
-
(3)
Income from Continuing Operations before Income Taxes – As Adjusted
$
Tax at 36% rate
97
$
42
(35)
11
Less: Net income attributable to non-controlling interest
(15)
7
Net Income, as adjusted
$
51
$
20
Income per common share, as adjusted
$
0.15
$
0.06
Average Diluted Shares Outstanding
22
352
349

23. Appendix – EPS Reconciliation – Full-Year
(in M illions, Ex cept per Com m on Share Data)
Income from Continuing Operations before Income Taxes – As Reported
2013
$
2012
434
$
73
Rationalization charges
48
75
Currency translation expense – Masco Denmark
18
-
Gains from financial investments, net
(11)
(22)
Charge for litigation settlements, net
-
77
Impairment of goodwill and other intangible assets
-
42
Gain from sales of fixed assets, net
-
(8)
Other Specialty Products - warranty
-
12
Interest carry costs
-
7
Income from Continuing Operations before Income Taxes – As Adjusted
$
Tax at 36% rate
489
$
256
(176)
41
Less: Net income attributable to non-controlling interest
(92)
35
Net Income, as adjusted
$
272
$
129
Income per common share, as adjusted
$
0.77
$
0.37
Shares Outstanding
23
352
349

24. 2014 Guidance Estimates
($ in Millions)
2014 Estimate
2013 Actual
Rationalization Charges1, 3
~ $10
$48
Tax Rate
~ 17%
26%
Interest Expense
~ $225
$235
General Corp. Expense2
~ $130
$134
Capital Expenditures
~ $200
$126
Depreciation & Amortization3
~ $175
$186
352 million
352 million
Shares Outstanding
1 – Based on 2014 business plans.
2 – Includes rationalization expenses of $3M for the year ended December 31, 2013.
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.
24

25. 2013 Segment Mix*
Business Segment
Revenue 2013
% of Total
R&R% vs. NC
NA% vs. Int’l
Plumbing
Products
$3.2B
39%
82%
59%
Decorative
Architectural
Products
$1.9B
23%
99%
100%
Installation and
Other Services
$1.4B
17%
18%
100%
Cabinets and
Related Products
$1.0B
12%
57%
93%
Other Specialty
Products
$0.7B
9%
74%
76%
72%
81%
Total Company
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
25
*Based on Company estimates.
$8.2B
100%

26. 2013 International Revenue Split*
10%
23%
14%
UK
Northern Europe
Southern Europe
7%
9%
Central Europe
Eastern Europe
Emerging markets
6%
Other
31%
International Sales Accounted for ~20%
of Total 2013 Masco Sales
26
*Based on Company estimates.