Download - 2014 Masco Company Overview and Strategy
Masco Corporation
Company Overview & Strategy
Masco – Strong Brands with Industry Leading Positions
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BUSINESS SEGMENT
Cabinets and Related Products
Plumbing Products
Installation and Other Services
Decorative Architectural Products
$1.0B
$3.2B
$1.4B
$1.9B
REVENUE 2013
$8.2B Total company
Other Specialty Products
$0.7B
LEADING POSITIONS
§ Leading U.S. kitchen and bath cabinetry brands
§ #1 worldwide in faucets, fittings, showerheads
§ #1 in spas
§ #1 insulation contractor for homebuilders
§ Leading DIY paint and stain provider
§ #1 in vinyl windows in the western U.S.
2013 Segment Mix*
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 *Based on Company estimates.
Business Segment
Plumbing Products
Installation and Other Services
Decorative Architectural Products
$3.2B
$1.4B
$1.9B
Revenue 2013 % of Total
39%
23%
17%
$8.2B 100% Total Company
Other Specialty Products $0.7B 9%
R&R% vs. NC NA% vs. Int’l
82% 59%
99% 100%
18% 100%
74% 76%
72% 81%
Cabinets and Related Products $1.0B 12% 57% 93%
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2013 International Revenue Split*
*Based on Company estimates.
International Sales Accounted for ~20% of Total 2013 Masco Sales
23%
7%
6%
31%
9%
14%
10%
UK Northern Europe Southern Europe Central Europe Eastern Europe Emerging markets Other
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MASCO PERFORMANCE Masco Drove Improvement During the Downturn
Reduced fixed costs
Strengthened management
Improved underperformers
Refined portfolio
• Installation profitable Q4 2012
• Cabinets profitable on an adjusted basis Q2 2013
• Reduced fixed gross costs by ~$600M, lowered breakeven
• Divested Danish cabinet business
• Aligned organization with strategic goal setting and improved planning process
• Topgraded talent at several BUs
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Masco Strengths
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1 Unparalleled brand strength
2 Customer focused innovation
3 Broad market coverage
MASCO STRENGTHS 1. Unparalleled Brand Strength Drives Share Gains
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Masco Cabinetry (cabinet manufacturer
in U.S.)
Delta (faucet brand
in North America)
Masco Contractor Services (installer of
insulation in U.S.)
Behr (DIY architectural
coatings in North America)
Milgard (vinyl window
brand in Western U.S.)
Hansgrohe (global faucet & mixer brand)
Arrow, Liberty, BrassCraft and
Watkins (in their respective market categories)
#2
#1
#1
#1 #1
#1
#2
MASCO STRENGTHS 2. Customer Focused Innovation
8 * Percentage of 2013 gross sales of manufactured products attributable to new products introduced in trailing 36 months
30%*
Examples of New Products/Technologies
Existing Products
2013 2012 2011
70%
Hansgrohe SelectTM
Collection
KraftMaid New Design Launch
2013 Revenues
BehrPro® Paint
Masco Cabinetry’s ProCision® Process
Kilz PRO-X® Paint
Delta® Toilets
Paint & Primer in One with Advanced Stain
Blocking Formula
KraftMaid® Vanities
Behr DeckOver®
Coating
MASCO STRENGTHS 3. Broad Coverage Across Segments, Price Points and Channels
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Segments Price Points Channels
New construction
28%
Repair / remodel 72%
International 19%
N. America 81%
• Low ticket value ~$20
• High ticket luxury ~$20K
• Direct-to-Builder
• Big box retail
• Wholesale / dealer trade
Masco Opportunities
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2. Leverage
opportunities across our portfolio
1. Drive full
potential of our core businesses
3. Actively manage portfolio
O P P O RT U N I T I E S
MASCO OPPORTUNITIES 1. Drive Full Potential of Our Core Businesses
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Current Examples:
● Extended Delta® brand to toilets and showers based on the power of the brand
● Increased Behr marketing to the professional painter to add a new channel
● Extended Hansgrohe into new international markets
1.
MASCO OPPORTUNITIES 2. Leverage Opportunities Across Our Portfolio
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● Improved supply chain by implementing best practices across our portfolio
● Reduced material costs from integrated purchasing
● Applied value engineering across businesses
Current Examples:
2.
MASCO OPPORTUNITIES 3. Actively Manage Portfolio
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● Divested underperforming Danish cabinet business
● Integrated Alsons® showerheads into Delta to provide cost savings and brand extensions
● Acquired opening price point spa business to augment Watkins’ spas
Current Examples:
3.