Financial OverviewJOHN SZNEWAJSCHIEF FINANCIAL OFFICER

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 and increasing tariffs, 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, including thepotential divestitures of our Cabinetry and Windows businesses, 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, risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology. 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.

The Business Today – Pro Forma

Repair and Remodel Fundamentals

Future Outlook

Capital Allocation

Agenda

The Business Today – Pro Forma

4

Pro Forma Financial PerformancePlumbing and Decorative Architecture demonstrate strong results

1. See Appendix for GAAP reconciliation.

$5,361 $5,621 $5,938

$6,654

2015 2016 2017 2018

A D J U S T E D O P E R A T I N G P R O F I T 1

( $ M )N E T S A L E S 1

( $ M )

$802

$988 $1,034 $1,126

15.0%

17.6% 17.4% 16.9%

2015 2016 2017 2018

2018 Pro Forma adjusted EPS1 of $2.16 versus $2.50

The Business Today – Pro Forma

Repair and Remodel Fundamentals

Future Outlook

Capital Allocation

Agenda

Repair and Remodel Fundamentals

5

6

Home Prices Continue to AppreciateStrong correlation with repair and remodel spending

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

90

110

130

150

170

190

210

230

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Rem

odel

ing

Expe

nditu

res,

mill

ions

Hom

e Pr

ice

Inde

x

S&P Case-Shiller Home Price Index Remodeling Expenditures

R & R S P E N D

H O M E VA L U E S

Source: S&P/Case-Shiller U.S. National Home Price Index, Joint Center for Housing Studies Remodeling Expenditures.

7

Average Age of Housing Stock IncreasingRepair and remodel spend increases with older homes

Source: US Census Bureau American Housing Survey (years 2001-2017), Housing Vacancy & Homeownership Survey, and John Burns Real Estate Consulting.

20

25

30

35

40

110,000

115,000

120,000

125,000

130,000

135,000

140,000

145,000

150,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Year

s

Thou

sand

s of U

nits

Housing Inventory (in thousands) Median Age of Home

AV E R A G E A G E

H O U S I N G S T O C K

8

Household Formations AcceleratingYounger home buyers are 50% more likely to take on DIY projects

Source: US Census Bureau, John Burns Real Estate Consulting, and Harvard Joint Center for Housing Studies.

H O U S E H O L D F O R M A T I O N SMillionsof units

2000 20072002 20052001 20062003 2004 2008 2009 2010 2011 20132012 2014 2015 2016 2017 20180.0

0.5

1.0

1.5

2.0

50 Year Median 1.3M

10 Year Median 1.0M

12M new households expected 2018-2028, an average of 1.2M per year

9

Existing Home Sales Remains HealthyRecent moderation could improve with lower interest rates

Source: National Association of Realtors, John Burns Real Estate Consulting.

E X I S T I N G H O M E S A L E SMillionsof Units

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F

10

Consumer Confidence is HighRepair and remodel spend driven by health of the consumer

Source: University of Michigan Consumer Sentiment, Harvard Joint Center for Housing Studies.

C O N S U M E R S E N T I M E N T V S . R E M O D E L I N G S P E N D

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

40

50

60

70

80

90

100

110

120

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Rem

odel

ing

Expe

nditu

res,

mill

ions

Inde

x

University of Michigan: Consumer Sentiment(12-month rolling average)

Remodeling Expenditures (millions of 2018 $'s)

C o n s u m e r S e n t i m e n t

R & R S P E N D

The Business Today – Pro Forma

Repair and Remodel Fundamentals

Future Outlook

Capital Allocation

Agenda

Future Outlook

12

Exposure to Tariffs on Chinese Imports Actively executing on near and long-term counter measures

Segment

IMPORTS FROM CHINA SUBJECT TO TARIFFS1

(Approximate $ in Millions)

List 3 List 4 Total

Plumbing Products $325 $200 $525

Decorative Architectural Products $200 $100 $300

Total imports subject to tariffs $525 $300 $825

Total operating profit impact prior to mitigation1 $158 $45 $203

Near-term mitigating actions• Price• Cost out opportunities• Supplier negotiations

Long-term mitigating actions• Sourcing alternatives• Domestic production

1. Assumes List 3 tariffs at 30% and List 4 at 15%.

13

Historical Sales PerformancePro Forma sales considerably more stable through a cycle

-40%

-30%

-20%

-10%

0%

10%

20%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

YoY

% C

hang

e

Plumbing and Decorative Architectural Products Sales Growth

Cabinetry and Windows & Other Specialty Products Sales Growth

2 years

6 years

(sales peak to trough -15%)

(sales peak to trough -68%)

• Improved portfolio Lower ticket and repair oriented products

• Efficient fixed cost structureNo significant capacity additions since 2008 recession

• Strong free cash flowLower capex and working capital offsets volume declines

• Shift to DIY activity during times of economic softening

14

Performance Through a CycleMasco better positioned for resilient performance

15

Revenue OutlookModerate sales growth due to slower market growth

2018Pro FormaNet Sales

PlumbingProducts

DecorativeArchitectural

Products

2021FNet Sales

~$6.7B

$7.0B - $7.3B

($B)

2% - 4% Annually

2% - 3% Annually

Note: See appendix for 2018 net sales GAAP reconciliation.

2018Pro Forma

Operating Profit

Net Volume / Mix

Net Price / Commodity

All Other, Net

2021FOperating Profit

$1,126

~$80 Neutral

~$1,200~($10)

16

Operating Profit OutlookMaintaining strong margins despite cost headwinds

Note: See appendix for 2018 operating profit GAAP reconciliation. 2021 operating profit assumes midpoint of guidance.

($M)

16.9% Margin

~16.8% Margin

17

Summary Outlook

Revenue Target2-3%

Average annual growth through 2021

2021 Operating Margin ~16.8%

2021 EPS $2.80 - $3.00(~10% CAGR from 2018)

Note: Pro Forma for planned divestitures of Cabinetry and Windows businesses. See Appendix for assumptions.

The Business Today – Pro Forma

Repair and Remodel Fundamentals

Future Outlook

Capital Allocation

Agenda

Capital Allocation

19

Capital Allocation StrategyBalanced approach to continue to drive shareholder value

Reinvest in the business• Capex: 2-2.25% of sales• Working capital: ~16.5% of sales

1Maintain investment grade credit rating• Gross debt to EBITDA below 2.5x2Maintain relevant dividend• Dividend payout ratio of ~20%, with annual increases3

4 Deploy excess free cash flow to share repurchase or acquisitions• Consistently in the market for share repurchase, but opportunistic • New share repurchase authorization of $2.0 billion for deployment of

planned divestiture proceeds and annual excess free cash flow• Select bolt-on acquisitions

20

Powerful Cash EngineAnticipate deploying over $3.7 billion through 2021

1. Liquidity includes cash and cash investments and short term bank deposits.2. Capital expenditures includes capex and displays.3. Dividends include dividend to shareholders and dividend to non-controlling interest.

12/31/2018Liquidity

Proceeds from Planned

Divestitures

Cash Flowfrom

Operations

CapitalExpenditures

Dividends Debt / Pension Pay Down

Share Repurchases

& Acquisitions

12/31/2021Liquidity

>$1.0

$0.6

$2.7 $(0.5)$(0.6)

$(2.3)

$0.6

($B)

$(0.3)

2

3

1 1

21

Summary and Outlook

2021 TARGETS:

Average annualsales growth:(through 2021)

Operating Margin:

EPS:

2-3%

~16.8%

$2.80 - $3.00

Focused on low ticket, repair and remodel products

Multiple avenues for growth and solid industry fundamentals

Strong free cash flow and value creating capital allocation