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Welcome and Introduction

Tool Time w/ David Perkins Broadcasting live from studio 1A MBCI studios- 5 th avenue- New York City. Welcome and Introduction. Outstanding Achievements Brand Updates Masco Strategy Guest Speaker- Nancy Geyer Guest Speaker- Stephen Jones.

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Welcome and Introduction

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  1. Tool Time w/ David PerkinsBroadcasting live from studio 1A MBCI studios- 5th avenue- New York City

  2. Welcome and Introduction • Outstanding Achievements • Brand Updates • Masco Strategy • Guest Speaker- Nancy Geyer • Guest Speaker- Stephen Jones

  3. Outstanding AchievementsNorth AreaSouth Area Mid West Area West AreaCanada

  4. Tonya Knies

  5. Multi-Brand Initiatives Special Pricing Approval Changes Dealer Locator / Mail Database Enhancements

  6. Special Pricing Approval Changes There has been no Strategic change to SPA process Changes made are due to standardization of processes across MBCI (effect many functional areas across the entire company) Changes to SPA/SDA/STAR approval include: - Total discount of greater than 10% must be approved by Marty VanDoren, EVP - Total discount of greater than 5% up to, and including, 10% must be approved by an AVP - Total discount of up to 5% can be approved by an RSM* *For AOK, customer pricing changes up to and including 10% must be approved by AVP, greater than 10% must be approved by EVP. **** Any changes to SPA require the above signoffs (ie. Extending expiration date, changes to discount) **** Please ensure that forms have ALL proper approvals and form is still attached before submitting

  7. OneTouch Dealer Locator/Mail Quantities • Enhancements to Sub-Brand Detail • Kitchen Craft • Kitchen Craft • Abbey Hill • Wood Crest • Omega • Dynasty • Embassy • Signature • Aristokraft • Aristokraft • Contractor’s Choice • Allow MBCI Locator for these brands • Allow accurate brand mailings (Please be diligent about ensuring accuracy of mail qty) Changes will prepare for addition of these brands to other OneTouch applications (ie. Marketing Center and Order Status)

  8. Brand Launch UpdatesDecora / SDK

  9. DECORA Launch Sneak Peek • Launch Date: Feb 28, 2011 • New Styles • Willshire - FO • Mitered, Solid Double Raised Center Panel Door • 5 Pc Mitered Drawer Front • Maple & Cherry • #12 Profile • Airedale - FO • Faux Inset Mitered, Solid Reversed Raised Center Panel Door • 5 Pc Mitered Drawer Front • Maple, Cherry, Oak, Alder & Rustic Alder • #12 Profile

  10. DECORA Launch Cont. • New Finishes • Cinnabar 9%  • Medium Brown • Specialty Glaze • Maple, Cherry, Alder & Rustic Alder • Sweet Pea 15%  • Painted Opaque • Available with Coffee & Espresso Glazes 19%  • Maple & MDF • Complementary Colors 20%  • 6 New Colors • Maple & MDF • Custom Color Matching 25%  • Sherwin Williams or any color sent in • Opaque Finishes only • Maple, Oak & MDF • Expansion of Reserve and Vintage (to Plus) 12% 

  11. DECORA Launch Cont. • Integrated Blumotion Soft-Closing hinge as Decora's standard hinge • Will be delayed about 1 month • May run promotion on PDM for interim • DRT - Installed Deep Roll Trays • 7-3/4” deep • Bottom Tray only of Base Cabinets • Bottom 2 Trays of Utility Cabinets • 19 Additional Stacked Moulding Designs

  12. S/D/K LaunchSneak Peek • Launch Date: Feb 28, 2011 • New Styles • Carmin/Bailey/Rennie – FO • Veneer Raised Center Panel • Slab Drawer Front • Square & Arch • Maple & Cherry • New DF Option • Drawer Front Raised • Available on Brinkman/Crandall/Dewitt • Style Renaming • Rename Claremont/Dublin/Hanover Cherry to Pleasant Hill/Montgomery/Whitman

  13. S/D/K Launch Cont. • New Finishes • Sahara • Standard • Maple, Cherry, Oak, Hickory, Alder & Rustic Alder • Cattail • Standard • Maple, Cherry, Oak, Hickory, Alder & Rustic Alder • Coconut 12%  • Paint • Maple • Storm 15%  • Inspired Collection • Maple • Available with Heirlooming 20%  • Add Natural Finish availability on Morgan/Shiloh/Lawton

  14. S/D/K Launch Cont. • 5% APC Permanent • Promo will extend to launch date (announced shortly) • Pricing adjustment on ID/RD modification • PDMI – Premium Door Mechanism Installed option • PLYSH – ¾” veneer plywood shelf • MIPPS – Matching Interior with ¾” veneer plywood shelf • FD – Full Depth Shelf in base cabinets

  15. S/D/K NEW Selection Center • Parker Maple Amaretto Crème (5 Pc Drawer Front) • Holds 66 doors • Cabinets • 3DBB30 (NEW 3-Drawer Buffet • B15SSWTCD-L w/ET (EasyTrax) (FPEB side) • B15SS-R (DTU downgrade) (FE side) • Drawer front storage in cabinet drawers • Video Player Optional • Existing units are out of stock • New unit available SOON!

  16. Amy Stoll

  17. Kitchen Craft Updates • New Credit Memo Administrator (CMA), Mona Manaigre, 1-800-463-9707, • Direct Buy promotion in Canada: Free freight charges 1/1-3/31 • Direct Buy promotion in US: Free cherry upgrade, promo code PROMO 59. 1/1-3/31 • KC Update on 12/13/10, presented by Wayne Brinkman and Billie Jo Timm • Aurora literature: First quarter 2011

  18. Kitchen Craft Updates Updated color sample box, effective assembly date of 12/8/10: • Current sample box needed to be modified to allow for addition of 18 color samples from 2010 product introductions • 3/8” thick samples of the matching melamines for wood stained finishes will now be included. • All color sample boxes are now hardwood construction, same as hardwood drawer box. Front, back, sides and divider are 17.5mm thick • 2 dividers creating 3 rows; total of 125 samples • Samples now stand vertical w/vertical specie dividers • 4.8mm hardboard will be used temporarily (new dividers are on order) • Loaded sample box requires styrofoam packing strips around the top of box to protect samples from damage • No change from current price

  19. Kitchen Craft Updates Reduced drawer length – RDL option, effective intro date of 12/13/10 • To allow space, if required, for electrical or plumbing setup to run through the cabinet behind the drawer boxes • Available to cabinets 24” deep or more • Reduces depth of all drawers in cabinet • Not available for melamine drawers • No additional upcharge • Hardwood and metal drawer boxes only

  20. Omega Updates • Winter promotion, Free Cherry and Maple upgrades, ending soon • New Year’s Resolution promotion: 10% off all orders, 1/3/11-2/16/11; no rollout, for all kitchen dealers, including Direct Buy • Omega Custom Spiff: 1/3/11-2/16/11: 1% off order list, 6+ cabinets. Direct Buy NOT included • Encourage dealers to let us know if lead time is not a factor • Direct Buy promotion-US: Free cherry upgrade. In the Direction’s magazine, 1/1/11-3/31/11. New Year’s Resolution promo supersedes this, so it will start on 2/17/11-3/31/11 • Direct Buy promotion-CN: 10% off all orders. In the Direction’s magazine, 1/1/11-3/31/11.

  21. Omega Updates • March 2011 product launch, several new items including four doors and 3 new finishes; look for a sneak peak later this month • Update on literature: Omega: New circular ready this month. Samples sent out to each sales rep and top 100 dealers, samples at sales meeting. Premium quality w/special die-cut cover and foil stamping Signature: No plans to update other than updates with each product launch

  22. Dawn Stemle

  23. AOK & Contractor’s Choice Price Increase • Price Increase letters for both AOK & CC brands will mail out this week • Error with print vendor on initial mailing • Price & Spec Supplements mailing week of Dec. 13th to customers & Reps • AOK 20/20 files posted on One Touch Jan. 7th • CC 20/20 files link will be emailed to Reps Jan. 7th • AOK 20/20 CD’s available to order through Customer Service Jan. 14th • CC 20/20 CD’s will be shipped direct to Reps around Jan. 14th

  24. Remodel Rewards Coupon Booklets • Current 2010 dated Remodeler Rewards coupon booklets will be used through Q1 of 2011 • New booklets will NOT be printed • Marketing will continue to accept these coupons if received during Q1 • You may still hand out to Dealers to utilize with NEW remodelers The NEW Remodeler Loyalty Program will be introduced atthe Sales Meeting!!!

  25. Toni Ferguson

  26. Eligible Designers will see this box. Once they reach ‘Under Verification’ status, this box will not appear. Designer Training Manual Link here

  27. Masco Strategy Direction to the MBCI Sales Force

  28. vs. MasterPartner offers a broader line of products from the builder entry level to full custom MasterPartner offers Rebates starting at a Lower Participation Level with Higher Payout %. - Simple, Easy to Understand and Monitor MasterPartner offers Higher Payouts with “hassle free” No Claim Submission Program- You receive your funds quarterly @ 100% MasterPartner makes you more competitive with Exclusive Promotions. Promotions where you pick the Offer and the Time Period that best meets your needs MasterPartner Display Program is Simple and Hassle Free. No billings on No Charge displays, No accrual funds that require time consuming file back procedures.

  29. MBCI response to Masco Approach • We have all the tools and programs to compete- and then some… • Strength of our sales force is our greatest advantage • Identify any vulnerable customers and shore up relationships • MSA by MSA analysis of opportunities to take share from Masco • Masco Approach will open up doors for us- Be on the lookout for opportunities • Keep an eye open for Masco audibles and keep corporate informed on where we need to take action

  30. Dealer Sales Meeting – January 11 – 13, 2011 New Orleans, LA • Transportation – To & From Airport • Everyone is responsible for arranging their own transportation to & from airport. Information for round trip shuttle was in registration link • Hotel – The Roosevelt • Hotel rooms are reserved according to what you registered for – you will not receive a confirmation # prior to the meeting • Registration Packets • Pick up Tuesday morning at desk in front of Crescent City Ballroom • Technology Training Classes (Excel & Power Point) • We encourage you to bring laptop as these will be interactive – room will be set up with power strips • Dress – Business Casual

  31. Steve JonesMasterCapital Update&Growth Incentive Review

  32. MasterCapital Update • Program over $3 million in booked loans: Up 20% from 2009 • Average booked loan is $22,420: Up over 15% from 2009 • Over 100 Dealers on the program had zero application during the last 12 months • Due to regulatory compliance issues, these dealers will have to go through training in January or drop the program • Letter to go out to these dealers in mid-December

  33. Growth Incentive • Guidelines for the standard Growth Incentive program • Minimum $300,000 in net sales overall • Minimum 10% growth over sales base • Minimum $75,000 for brand qualification • Not available to 1st Year dealers • Must have at least 6 months sales in 2009 • For dealers with partial year sales in 2009, a full year projection will be used to calculate the sales base. • Growth calculated from a sales base, which is the higher of: • $300,000 • Prior year net sales • Average of past two years net sales

  34. Growth Incentive Sales base is the higher of A) previous year’s net purchases OR B) an average of the two previous year’s sales. Example: A: 2011 2010 2009 Growth $ Growth % $450K $400K $350K $50K 12.5% Average Sales from prior 2 years = $375K Prior Year Sales = $400K Higher Sales in comparison is the prior year @ $400K, so growth is calculated from a $400K sales base. Example: B: 2011 2010 2009 Growth $ Growth % $450K $350K $400K $75K 18.8% Average Sales from prior 2 years = $375K Prior Year Sales = $350K Higher Sales in comparison is the 2 year average @ $375K, so growth is calculated from a $375K sales base. The growth incentive rebate will be issued based on incremental growth dollars over the sales base

  35. Growth Incentive • Growth incentive will not be paid on any dollars below the $300,000 minimum volume requirement. • To qualify for the Multi-Branded Payout customers must carry at least two MasterBrand Cabinets brands with minimum purchases of $75,000 per brand and overall purchases of $1,000,000 for the year. • All net sales are included. If a brand does not reach the $75,000 minimum, the net sales still count even though the brand is not included in the multi-brand count.

  36. Q&A

  37. Thank you for all the good times!!! This is David Perkins, “Mr Tool Time”, signing off

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