Finance Team Meeting

1. Finance Team Meeting May 29, 2012

2. Agenda • Update on Company Performance - Bob • Organization Changes – Doug / Mike • Business Intelligence Update - Jesse • Drive for “5” – Rob / Kasey • Q&A

3. Financial Update • Masco Cabinetry Year-to-Date Results • Revenue Performance • Channels • Brands • Top Customers • Key Initiatives • Cost and Profit Performance • Outlook • Summary

4. Core Revenue Performance (Dollars in Millions) April Revenue ($8.8M) / -10% vs. Budget ($3.1M) / -4% vs. 2011 Year-to-Date Revenue is ($15.2M)/ -5% vs. Budget and ($4.9M) / -2% vs. 2011

5. Profit Performance vs. Budget & 2011 (Dollars in Millions) April Profit ($5.9M) Unfavorable to Budget $3.0M Favorable to 2011 YTD Profit is ($11.5M) Unfavorable to Budget but $7.3M Improved from 2011

6. YTD Revenue is $15.2M below Budget (Dollars in Millions) ($16.1M)

7. Channel Revenue Performance (Dollars in Millions) $3.1M / +7% $6.8M / +17% ($11.1M) / -14% ($5.4M) / -7% ($2.8M) / -5% $0.5M / +1% ($4.9M) / -4% ($6.7M) / -5%

8. Brand Revenue Performance (Dollars in Millions) ($1.9M) / $-11% $4.5M / +43% ($1.1M) / -4% $0.1M / +0.3% $0.8M / +1% $1.8M / +3% ($14.0M) / -7% ($11.9M) / -6%

9. Top Customer Year-over-Year Sales

10. Dealer Channel Wins YTD2012 Total of $7.3M April Dealer Wins: 23 new showrooms and 134 YTD; 23 new dealers or dealers that added a brand with 124 YTD; $7.3M in YTD revenue from wins and $27.2M since April 2010

11. Lowe’s KraftMaid Counter Tops

12. Home Depot KraftMaid Vanity Cabinet & Tops Ensemble Order Rate Plateaued in April and is Short of the Goal of 100 / Week Average Attachment Rate is 78%

13. Promotional Spend Vs. Budget (Dollars in Millions) 2011 Actual = $67.6M 2012 Budget = $52.4M Year-to-Date Promotional Spend is $0.5M Unfavorable to Budget * Monthly Budget based on 2/19/2012 revision

14. YTD Operating Income is $11.5M below Budget (Dollars in Millions)

15. Second Quarter Outlook (Dollars in Millions) Q2 Forecast = $248.0 Q2 Budget = $269.4 Q2 2011 = $245.4 • Outlook • Revenue forecast for Q2 is $21M short of the budget • There is additional revenue risk of $8 to $12 million • Second Half? • Housing Starts are projected to be higher than plan assumptions • There is optimism around a recovery in the Repair & Remodel

16. Summary • Revenue and Profit… behind budget year-to-date • Builder… beating the Market (housing starts) • ProCision and Lowe’s Countertops… Significant Growth Over 2011 • Dealer & Lowe’s…. Struggling to Achieve Prior Year & Budgeted Levels • The Home Depot… Beating Prior Year through April • Competitive Environment… Intense with Heavy Promotions • Profitability… Behind Budget but Better than 2011 – Lower Volume, Material (Promo) Cost and Freight offsetting Lower Fixed Cost and Productivity Gains • Outlook… Housing Starts on the Incline, Second Half Optimism for a Recovery in the Remodel Market

17. Control Environment - Overview

18. Current Status of Audit Deficiencies • MC’s goal is to reduce the number of audit deficiencies found as well as those open issues aged more than 90 days. • Open Deficiencies: 10 • 6 of the 10 deficiencies are related to Finance • Open Deficiencies aged more than 90 days: 8 • 5 of the 8 are deficiencies are related to Finance

19. Agenda • Update on Company Performance - Bob • Organization Changes – Doug / Mike • Business Intelligence Update - Jesse • Drive for “5” – Rob / Kasey • Q&A

20. Agenda • Update on Company Performance - Bob • Organization Changes – Doug / Mike • Business Intelligence Update - Jesse • Drive for “5” – Rob / Kasey • Q&A

21. Finance Career Progression MASCO Talent Management Program Cost / FP&A Manager  Director  CFO ChannelController Finance Intern Accountant or Analyst Senior Accountant or Senior Analyst Operations Finance Lead Accounting Senior Accountant Clerical / Admin Specialist Accountant Supervisor Compliance/CRC* Senior Analyst Team Lead Specialist Analyst Supervisor As illustrated by the chart above, there are numerous paths which can be taken to build a broad, solid foundation and successful career. Confidential - Not for Distribution

22. Finance Staff Development • Several Organizational Changes Have Occurred Since Q4 2011 • Realigned the Compliance Organization to Report to the CFO • Realigned Cost Management under Mike McCullough • Transitioned Marketing Expense Management back into Marketing Finance from FP&A • Mike Yestrepsky promoted to Operations Controller role • Craig McGregor has moved from Pricing into the Countertop Controller role • Michael Gulbernat promoted to Pricing Manager – combined OI and Countertop Pricing Group • Rhonda Bradshaw transitioned into Sr Financial Analyst role in FP&A • Kevin Crosby from Marketing Finance to Pricing as Sr Pricing Process Analyst • Tiffany Usher promoted to Functional Expense Analyst – FP&A • Kris Robinson transitioned to Sr Cost Accountant role • Amanda Hackett promoted to Sr Accountant • Ron Wittreich assumed role of Sr Cost Analyst • Transitions Occurring Currently • Active Project to Transition Payroll to “My Service Center” • Tyler Fish moving from FP&A to Sr Cost Analyst role • Karen Stoick assuming Forecasting and Corporate Reporting role

23. Finance Staff Development Welcome New Faces

24. Agenda • Update on Company Performance - Bob • Organization Changes – Doug / Mike • Business Intelligence Update - Jesse • Drive for “5” – Rob / Kasey • Q&A

25. BI GL/AP Phase User Stories Backlog Backlog User Stories Prepare Basic Structure Iteration 0 Iteration Releases Disk Shortage Acquire / Install

26. BI GL/AP Phase • First Release – (Iteration 0) 8/20 • Will have same detail as SS Server JE Explode • Much faster • Will contain hierarchies • Hyperion to Oracle Accounts • Functional vs. Non Functional • Channel Metric • May have some User Story requirements

27. BI GL/AP Phase

28. Agenda • Update on Company Performance - Bob • Organization Changes – Doug / Mike • Business Intelligence Update - Jesse • Drive for “5” – Rob / Kasey • Q&A

29. Drive for “5” Masco’s Drive for 5 Company wide goal for 2012 to remove one day from close cycle to improve to a 4 ½ Day Close (reporting on Day 5 at 1pm) from the current 5 ½ Day Close (reporting on Day 6 and 1pm) The submission must include actual results for the current month and forecast for the remainder of the year Target is that all business units will meet this goal beginning with their December 2012 submission

30. Drive for “5” Major Plan Elements • Continue to work through controls focused projects • Streamlining standard journal entries and eliminating non-standard journal entries • Training and development of staff • Improved reconciliations • Driving common processes • Improve our financial review reporting tools • Detailed value stream map of all close activities in focused kaizen events • Eliminating non value added tasks • Combining tasks where possible • Identifying critical path elements of close • Improve system performance where necessary • Increasing number of “pre-close” activities and entries At each step we need to ensure adequate controls are in place!!

31. Drive for “5” Finance Managers participated in a 2 day Kaizen during May and identified a significant number of critical path items: Critical path items (X)- Impact plant clearing Impact revenue Impact P/L Items impacting Key Milestones: Cost related critical items (Cost CP) Sales related critical items (Sales CP)

32. Sharepoint Checklist Demonstration

33. Drive for “5” Milestone Map

34. Drive for “5” Close Milestones

35. Drive for “5” Masco Scorecard

36. Agenda • Update on Company Performance - Bob • Organization Changes – Doug / Mike • Business Intelligence Update - Jesse • Drive for “5” – Rob / Kasey • Q&A