Masco Corporation (NYSE:MAS) Q3 2020 Earnings Conference Call October 28, 2020 8:00 AM ET Company Participants David Chaika - Vice President, Treasurer and Investor Relations Keith Allman - President and Chief Executive Officer John Sznewajs - Vice President and Chief Financial Officer Conference Call Participants Matthew Bouley - Barclays John Lovallo - Bank of America Mike Dahl - RBC Capital Markets Adam Baumgarten - Credit Suisse Susan Maklari - Goldman Sachs Truman Patterson - Wells Fargo Keith Hughes - ...

Second Quarter 2020 Performance - Masco Corporation's revenue decreased by 4% to $1764 million year-over-year[8] - The adjusted EPS increased by 14% to $084[5, 8] - The adjusted operating profit margin expanded by 50 bps to 195%[5, 8] Segment Performance - Plumbing Products sales decreased by 14% to $868 million[10] - Decorative Architectural Products sales increased by 8% to $896 million[11] - North American sales for Plumbing Products decreased 11% in local currency, while international sales decreased 17% in local currency[11] - DIY paint sales grew high teens[12] Balance Sheet and Liquidity - Cash and cash investments totaled $1089 million as of June 30, 2020[13] - Total liquidity was $2089 million, including $1000 million revolver availability[13] - Working capital as a percentage of sales improved 50 bps to 181% compared to the prior year[13, 14] Q3 2020 Outlook - Plumbing Products sales are expected to be down 5% to up 5% (excluding currency impact), with an adjusted operating profit margin similar to Q3 2019's 187%[25] - Decorative Architectural Products sales are expected to be up 7-9%, with an adjusted operating profit margin similar to Q3 2019's 189%[25] - Total Masco sales are expected to be flat to up 10% (excluding currency impact), with an adjusted operating profit margin similar to Q3 2019's 174%[25]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 1-5794 Masco Corporation (Exact name of Registrant as Specified in its Charter) Delaware 38-1794485 (State or Other Jur ...

Financial Performance - Net sales increased by 4% to $1,581 million for the three-month period ended March 31, 2020, compared to $1,513 million in the same period of 2019[97] - Operating profit increased to $252 million for the three-month period ended March 31, 2020, up from $226 million in the same period of 2019[92] - Income from continuing operations was $133 million for the three-month period ended March 31, 2020, compared to $107 million in the same period of 2019[109] - Diluted income per common share increased to $0.48 for the three-month period ended March 31, 2020, up from $0.36 in the same period of 2019[109] - Gross profit margin improved to 34.6% for the three-month period ended March 31, 2020, compared to 34.5% in the prior year[102] Cash Flow and Investments - Net cash used for operating activities was $92 million for the three-month period ended March 31, 2020, impacted by an increase in accounts receivable[114] - Net cash provided by investing activities was $807 million, primarily from the sale of Cabinetry, net of cash disposed[116] - The current cash balance and borrowing availability under the Credit Agreement are deemed sufficient to fund near-term working capital needs[125] Impact of COVID-19 - The company anticipates significant adverse impacts on operations in the second quarter of 2020 due to the COVID-19 pandemic, including reduced consumer demand and supply chain disruptions[123] - The company anticipates experiencing short-term softness in its businesses due to the COVID-19 pandemic but remains confident in the fundamentals of its operations[130] - The company has implemented alternative work arrangements to ensure employee safety during the pandemic[127] Strategic Focus - The company is focused on leveraging its strong brand portfolio and industry-leading positions to drive long-term shareholder value[130] - The company emphasizes its strong financial position and cash flow generation as key drivers for future growth[130] - The company is committed to innovation and disciplined capital allocation to enhance its market position[130] - The company is focused on successfully executing its acquisition strategy and integrating acquired businesses[132] - The company is investing in new technology to achieve anticipated benefits and improve operational efficiency[132] Market Risks - The company acknowledges risks related to residential repair and remodel activity, new home construction, and the ongoing COVID-19 pandemic[132] - The company highlights the importance of maintaining its strong brands and reputation in the competitive landscape[132] - The company is monitoring the cost and availability of materials, which could impact its production capabilities[132]

or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Commission file number: 1-5794 FORM 10-K ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 Delaware 38-1794485 (State of Incorporation) (I.R.S. Employer Identification No.) 17450 College Parkway, Livonia, Michig ...

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For the transition period from ___________ to ___________ Commission file number: 1-5794 Masco Corporation (Exact name of Registrant as Specified in its Charter) Delaware 38-1794485 (State or Other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 1-5794 Masco Corporation (Exact name of Registrant as Specified in its Charter) Delaware 38-1794485 (State or Other Juris ...

FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 Commission file number: 1-5794 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Masco Corporation (Exact name of Registrant as Specified in its Charter) Delaware 38-1794485 (State of Incorporation) (I.R.S. Employer Identification No.) 17450 College Parkway, Livonia, Michigan 48152 (Address of Principal Executive Offices) (Zip Code) (313) 274-7 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 Commission File Number 1-5794 MASCO CORPORATION (Exact name of Registrant as Specified in its Charter) Delaware 38-1794485 (State of Incorporation) (I.R.S. Employer Identification No.) 17450 College Parkway, Livonia, Michigan 48152 (Address of Principal Executive Offices) (Zip Code) Registrant's teleph ...