Raymond James 34th Annual Institutional Investors Conference

March 6, 2013

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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, 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 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.

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I N V E S T M E N T T H E S I S

Strong Fundamentals - Positioned for Growth

The strengths

The growth

The strategy

The company

Masco at a Glance

Revenue % renovation vs. new construction 73%

Employees 30,000

Market capitalization >$6.0B

Dividend yield 2.9%

Revenue $7.8B

Cumulative free cash flow last 3 years ~$1B

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2012

Cash at 12/31/2012 $1.4B

Masco – Strong Brands with Industry Leading Positions

Business Segment

Cabinets andRelated Products

PlumbingProducts

Installation andOther Services

DecorativeArchitecturalProducts

$1.2B

$3.0B

$1.2B

$1.8B

Revenue 2012 % of Total

38%

24%

15%

16%

$7.8B 100%Total company

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Other SpecialtyProducts $0.6B 7%

R&R% vs. NC NA% vs. Int’l

82% 59%

99% 100%

69% 73%

16% 100%

75% 75%

73% 78%

R&R = % of sales to repair and remodel channelsNC = % of sales to new construction channels NA = % of sales within North AmericaInt’l = % of sales outside North America

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Masco – Unique Scope and Scale

manufacturer of faucets in the worldLargest

non-commodity supplier to The Home DepotLargest

supplier to Lowe’s Kitchen and Bath segmentLargest

supplier of architectural coatings to the U.S. DIY marketLargest

installer of insulation products for the new home construction marketLargest

We believe we are the……

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I N V E S T M E N T T H E S I S

Strong Fundamentals - Positioned for Growth

The strengths

The growth

The strategy

The company

8

Masco’s Strategic Initiatives

Positioned for Growth

• Leverage brands

• Innovative productsExpand market leadership

• Total cost productivity

• Drive lean benefitsReduce costs

• Return Cabinets to profitability

• Drive profitability and growth in Installation

Improve underperforming businesses

1

2

3

• Debt reduction

• Strong liquidityStrengthen Balance Sheet

4

9

1 . E X P A N D M A R K E T L E A D E R S H I P

Key Brands Gaining Share since 2010

Examples Gaining Share

• Delta®, Peerless®, and Brizo® brands in U.S.

• International plumbing growth with Hansgrohe

• Decorative Architectural: Behr® #1 DIY Paint at The Home Depot, Direct to Pro® service growth, Kilz Pro line

• Other Specialty: Milgard® windows outperforming market, UK growing share

• Masco Contractor Services gaining share with insulation, retrofit and commercial channels

• Merillat® and Quality® cabinet brands gaining sharewith builders

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2 . R E D U C E C O S T S

Significant Progress Lowering Cost Structure Higher Margins

Cumulative Gross Fixed CostReductions

Headcount Reductionsof ~50%

2006 2012

~$100M

~$600M

2006 2012

62,500

30,000

Includes 33 closed / mothballed facilities

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3 . I M P R O V E U N D E R P E R F O R M I N G B U S I N E S S E S

Improved Profitability and Positioned for Growth

Cabinets New North American management team in place in 2012

Achieved ~$32M operating profit improvement in 2012

Disposition of Danish ready-to-assemble cabinet business

Revenue ~$250M and operating loss of ~$30M

Installation

Continued penetration of retrofit and commercial channels

Further cost reductions from lean, ERP leverage, supply chain

Achieved profitability in Q4 2012

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4 . S T R E N G T H E N B A L A N C E S H E E T

Declining Debt to Capitalization Ratio

2012Year End

Future Target

87%

45%-55%

• $400M reduction in 2012

• Planned reduction of $200M in 2013

• Valuation Allowance of ~$630 million on Deferred Tax Assets is expected to be reversed when our U.S. businesses return to sustained profitability

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I N V E S T M E N T T H E S I S

Strong Fundamentals - Positioned for Growth

The strengths

The growth

The strategy

The company

Broad distribution3

Industry innovator2

Market-leading brands1

Masco Business System4

Strong financial position5

Key Strengths we are Leveraging

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S T R E N G T H 1 : M A R K E T L E A D I N G B R A N D S

Unparalleled Brand Strength

Installation & Other Services

PlumbingProducts

Cabinets & Related Products

Decorative Architectural

Products

Other Specialty Products

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S T R E N G T H 2 : I N D U S T R Y I N N O V A T O R

Significant New Product Introductions – Last 3 Years

30%*

Examples of New Products/Technologies

ExistingProducts

201220112010

70%Milgard Essence™

Windows

ArrowR.E.D.

ACE® Salt WaterSanitizing System

2012 Revenues

BehrProTM

Masco Cabinetry’s ProCisionTM Process

* Percentage of 2012 gross sales of manufactured products attributable to new products introduced in trailing 36 months

Kilz PRO-XTM

Delta Toilets

Paint & Primer in One with Advanced Stain

Blocking Formula

KraftMaid Vanities

S T R E N G T H 3 : B R O A D D I S T R I B U T I O N

Winning with Winning Customers

Broad Portfolio

Big Box Retailers Homebuilders Wholesalers / Dealers

• Exclusive products and services for the direct to builder channel

• A leading insulation contractor in the US

• Dedicated customer-specific service organizations with over 750 field service employees

• Extensive training programs for branch and showroom associates

• Superior dealer support through display and technology expertise

• Premier brands drive traffic

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Customer focus

Lean

QualityTalent

Innovation

S T R E N G T H 4 : M A S C O B U S I N E S S S Y S T E M S

A Continuous Improvement Culture – At the Center of Our Success

ü

MBS

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S T R E N G T H 5 : S T R O N G F I N A N C I A L P O S I T I O N

Strong Liquidity and Improving Balance Sheet

Strong Liquidity(as of 12/31/2012)

• Cash and equivalents of ~$1.4B

• Borrowing availability of ~$870M

• A strong free cash flow business– ~$1B last 3 years

– Maintenance capex of ~$100M annually

• Paid down $400M in 2012• Plan to reduce debt in 2013 by

$200M

Declining Debt to Capitalization Ratio

2012Year End

Future Target

87%

45%-55%

• Valuation Allowance of ~$630 million on Deferred Tax Assets is expected to be reversed when our U.S. businesses return to sustained profitability

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I N V E S T M E N T T H E S I S

Strong Fundamentals - Positioned for Growth

The strengths

The growth

The strategy

The company

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Positioned for Growth

Leveraged to the recovery

Continued brand leverage and share expansion

Continued cost position improvement

Disciplined capital deployment

1

2

3

4

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1. Leveraged to the Recovery

2006Last Peak

2010 2011 2012 3-5 Years

12%

6%

4%

6%

10-14%

Adjusted Operating Margin*

Reflects

• lower fixed cost base of >$600M (gross)

• driving lean principles across the company

30% margin on incremental volume

Housing starts 2.1M 0.6M 0.6M ~1-1.5M

*See Appendix slide 32 for GAAP reconciliation

0.7M

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2. Initiatives to Leverage Brands and Expand Share

GeographicExpansion

Cabinetsand RelatedProducts

PlumbingProducts

Installationand OtherServices

DecorativeArchitecturalProducts

OtherSpecialtyProducts

ProductIntroductions

ExtendCategories

Strengthen Brand

Loyalty

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3. Continue to Improve Cost Position

~$195M* of Total Cost Productivity

in 2012

* Gross

SourcingLean

Initiatives

Driven by: Driven by:

Distribution &

Logistics

Actions Taken In Prior Years• Plant Closures• Headcount

Reductions• System

Implementations

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4. Disciplined Capital Deployment

Invest in the Business

• Maintenance capex: $100M annually

Strong Cash Flow Generation

Financial Flexibility

• Target 45%-55% debt to capitalization vs. ~87%

Dividend

• Maintain dividend yield ~2%

Acquisitions

• Potential acquisitions (<$100M) in support of international expansion

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2013 Priorities

Investment in strategic growth initiatives

Geographic expansion

Total cost productivity

Reduce debt by ~$200M

Cabinet profit improvement

Profitably grow Installation

Grow share of key brands

Successfully launch new products and programs

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Masco 3-5 Years Out – A “Normal” Housing Market

• Estimate revenues of ~$10-12B, margin of 10-14%

• Positioned for Growth

• Optimized portfolio with a strong balance sheet

• International expansion

• Positive return from assets employed in – Cabinets– Installation

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W H Y I N V E S T I N M A S C O

Strong Fundamentals - Positioned for Growth

Executing initiatives to improve performance

• Continuing to reduce fixed costs, expand share and improve underperformers

The Strategy

Building on market-leading positions• Best brands, innovative products, lean practices,

strong financial positionThe Strengths

Well-positioned for growth • Lower cost structure higher margins,

leveraged to recoveryThe Growth

Appendix

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Appendix – Profit Reconciliation – Fourth Quarter

($ in Millions) Q4 2012 Q4 2011

       

Sales $ 1,890   $ 1,738

       

Gross Profit – As Reported $ 446   $ 332

       

Rationalization charges 27   48

       

Gross Profit – As Adjusted $ 473   $ 380

       

Gross Margin - As Reported 23.6%   19.1%

Gross Margin - As Adjusted 25.0%   21.9%

       

Operating Profit (Loss) – As Reported $ 21   $ (531)

       Impairment of goodwill and other intangible assets $ 42   $ 494

Rationalization charges 31   61

Charge for litigation settlements, net 3   3

Gain from sales of fixed assets, net (3)   -

Operating Profit – As Adjusted $ 94   $ 27

       

Operating Margin - As Reported 1.1%   -30.6%

Operating Margin - As Adjusted 5.0%   1.6%

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Appendix – Profit Reconciliation – Full-Year

($ in Millions) YTD 12/31/12 YTD 12/31/11

       Sales $ 7,745   $ 7,467

       Gross Profit – As Reported $ 1,951   $ 1,784        Rationalization charges 52   91 Other Specialty Products - Warranty 12   -        Gross Profit – As Adjusted $ 2,015   $ 1,875         Gross Margin - As Reported 25.2%   23.9% Gross Margin - As Adjusted 26.0%   25.1%

       Operating Profit (Loss) – As Reported $ 271   $ (295)              

Rationalization charges 78   121 Charge for litigation settlements, net 77   9 Impairment of goodwill and other intangible assets 42   494 Other Specialty Products - Warranty 12   - Gain from sales of fixed assets, net (8)   -

       Operating Profit – As Adjusted $ 472   $ 329         Operating Margin - As Reported 3.5%   -4.0% Operating Margin - As Adjusted 6.1%   4.4%

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Appendix – EPS Reconciliation – Fourth Quarter

(in Millions) Q4 2012 Q4 2011

       

Loss from Continuing Operations before Income Taxes – As Reported $ (37)   $ (593)

       

Impairment of goodwill and other intangible assets $ 42   $ 494

Rationalization charges 31   61

Charge for litigation settlements, net 3   3

Gain from sales of fixed assets, net (3)   -

Gain from financial investments, net (4)   (4)

Income (Loss) from Continuing Operations before Income Taxes – As Adjusted

$ 32   $ (39)

Tax at 36% rate benefit (expense) (12)   14

Less: Net income attributable to non-controlling interest 7   5

Net Income (Loss), as adjusted $ 13   $ (30)

       

Income (Loss) per common share, as adjusted $ 0.04   $ (0.09)

       

Shares Outstanding 349   348

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Appendix – EPS Reconciliation – Full-Year

($ in Millions) YTD 12/31/12 YTD 12/31/11

       

Income (Loss) from Continuing Operations before Income Taxes – As Reported

$ 42   $ (472)

       

Rationalization charges $ 78   $ 121

Charge for litigation settlements, net 77   9

Impairment of goodwill and other intangible assets 42   494

Other Specialty Products - Warranty 12   -

Interest carry costs 7   -

Gain from sales of fixed assets, net (8)   -

Gain from financial investments, net (22)   (73)

Income (Loss) from Continuing Operations before Income Taxes – As Adjusted

$ 228   $ 79

Tax at 36% rate benefit (expense) (82)   (28)

Less: Net income attributable to non-controlling interest 35   42

Net Income, as adjusted $ 111   $ 9

       

Income per common share, as adjusted $ 0.32   $ 0.02

       

Shares Outstanding 349   348

3 . I M P R O V E U N D E R P E R F O R M I N G B U S I N E S S E S

North America Cabinetry’s Strategic Initiatives

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• Rationalize operational footprint

• Increase overhead efficiency Cost Realignment

• Channel strategies

• Promotions

• Products

• Dealers

• Builders

• Retail

• Consumers

1

2

3

Profitable Revenue Growth

Customer Focus

($ in Millions) 2013 Estimate 2012 Actual

Rationalization Charges1 ~ $40 $78

Tax Rate ~ 25% 198%

Interest Expense ~ $240 $254

General Corp. Expense2 ~ $130 $126

Capital Expenditures ~ $165 $119

Depreciation & Amortization3

~ $210 $214

Shares Outstanding 349 million 349 million

2013 Guidance Estimates

1 – Based on current business plans.

2 – Includes rationalization expenses of $14M for the year ended December 31, 2012.

3 – Includes accelerated depreciation of $28M for the year ended December 31, 2012. Such expenses are also included in the rationalization charges.

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2012 Masco International Revenue Split*

*Based on company estimates

International Sales Accounted for ~22% of Total 2012 Masco Sales

7%

23%

8%

4%

34%

10%

14%

North America

United Kingdom

Northern Europe

Southern Europe

Central Europe

Eastern Europe

Emerging Markets