Watts Co., Ltd.
(2735; Tokyo Stock Exchange Standard Market)

Operating Results for the Six Months of
the Fiscal Year Ending August 2024 andProgress of the Full-Year Plan
Friday, April 12, 2024
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2024

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2024

Business Forecasts for the Fiscal
Business Plan Year Ending August 2024 andEfforts toward Each Business

Reference

P8 – P14

P16 – P24

P26 – P32
1

Financial
Overview

Consolidated Operating Results for the Six Months of
the Fiscal Year Ending August 2024
(Millions of yen)

FY8/23 Q2

FY8/24 Q2 (Period under review)

Financial highlights

Ratio tosales

Ratio to sales

YoY

Ratio toforecast

29,55011,169－37.8%

30,255
11,629－38.4%

102.4%
104.1%

101.8%－

10,89736.9%

10,886

36.0%

99.9%

－

635
271
270

2.1%
0.9%
0.9%

1,096
743
749

3.6%
2.5%
2.5%

172.6%
273.4%
276.6%－
309.8%
394.3%

292

1.0%

436

1.4%

149.2%

363.5%

152.8%－✓ Sales increased by 2.4% YoY, reaching 101.8% of the plan, mainly due to solid performance in

P3,9

Sales
Gross profit
Selling, general and administrative
expenses
EBITDA
Operating profit
Recurring profit
Net income attributable to owners ofparent
Net income per share (Yen)

21.53

32.90

the 100-Yen Shop business.

✓ The gross margin improved by 0.6 ppt. due to a lower cost-of-sales ratio resulting from a higher
proportion of sales from products priced above 100 yen. Operating profit was 273.4% YoY. This
growth was driven by cost reductions achieved through the closure of unprofitable shops.

P4,5✓ Net income attributable to owners of parent was 149.2% YoY due to the recording of income
taxes-deferred (gain) related to the reorganization among our consolidated subsidiaries in thesame period of the previous fiscal year.

2

Financial
Overview

Sales by Business Type(Millions of yen)

Sales by Business TypeFY8/23 Q2

FY8/24 Q2 (Period under review)

Ratio to sales
Directly managed

100-Yen shops

Wholesale, Other
Subtotal

Directly managed

Overseas
Business

Wholesale

Subtotal

Ratio to sales

YoY

26,377
1,017
27,394
128
518
647

89.3%
3.4%
92.7%
0.4%
1.8%
2.2%

27,254938
28,192
76
395
471

90.1%
3.1%
93.2%
0.3%
1.3%
1.6%

103.3%
92.2%
102.9%
59.6%
76.2%
72.9%

1,508

5.1%

1,591

5.3%

105.5%

29,550100.0%

30,255100.0%

102.4%

Buona Vita

Domestic
Other Business

Real
Tokino:ne

Total

,etc.

✓ The proportion of sales from the domestic 100-Yen Shop business grew by 0.5 ppt. (up 0.8
ppt. for directly-managed shops and down 0.3 ppt. for wholesale and other businesses)✓ Overseas sales remain below pre-COVID levels, with their proportion of sales declining 0.6
ppt.
3

Financial
Overview

Quarterly Changes in Gross MarginSales

13,72638.6%

Gross profit

Gross margin

14,780 14,969 14,871 14,699 14,851 14,880 14,877 14,813
Due to product shortages andsoaring purchase cost ratios
reflecting the sharp yen’s
depreciation and other factors, andincreased wholesale sales tooverseas markets, etc.

Decline in gross profit margin due
to the acquisition of Ontsu F･
RETAIL co.,ltd, which has a highproportion of food sales

38.0%

38.2%

FY8/22
Q1

5,610

Q2

5,723

Q3

5,644

Q4

15,442

38.6%
38.4%

38.2%

38.0%

38.0%

37.6%
5,303

(Millions of yen)

5,525

FY8/23
Q1

37.4%

5,644

Q2

5,570

Q3

5,714

5,662

Q4

FY8/24
Q1

5,966

Q2
4

Financial
Overview

Factors for Changes in Operating Profit(Millions of yen)
Decreased due to the steep rise in electricity
prices in the previous fiscal year andmeasures to mitigate drastic changes inenergy prices taken in the current fiscal year.

Gross margin improved by 0.6ppt., withgross profit increasing by 4.1% YoY.

Increase ingross profit

Increase in
rent

84

459

OperatingprofitDecrease in
Decrease inpersonnel
expenses equipment cost0

Decrease inutility bill132

Increase in
freight costs

Increase/decreasein other expenses

65

1

35

Increased due to higher variable rent andpercentage of rent reflecting the sales
growth.

Operating
営業利益 profit
742
743

Increased by 471 million yen, 273.4％ YoY

271
Previous
period前期

Periodunderreview 5

当期Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows

Consolidatedbalance sheet

FY8/23
Pct. change(Millions of yen)
FY8/24 Q2(Period under review)Pct. change✓ Shareholders' equity ratio was 46.7%, downby 0.2ppt from the end of the previous
period.

Cash and deposits

5,646

Up 8.4%5,996

Up 6.2%Merchandise and finished goods

9,719 Up 17.5％

10,416

Up 7.2% ✓Other current assets

3,553 Up 28.2％

2,998

Down
15.6%

Property, plant and equipment

2,011 Up 38.9％

2,015

Up 0.2%Other non-current assets

4,557 Up 30.6％

4,287 Down 5.9%

Total assets

25,489 Up 20.0％

25,715

Up 0.9%Liabilities

13,524 Up 35.1％

13,700Up 1.3%

Net assets

11,96412,014

Up 0.4%Up 6.3%(Millions of yen)
FY8/24 Q2(Period under review)

FY8/23 Q2Consolidated cash flows

Pct. change

Pct. change

Merchandise & finished goods and cash anddeposits increased by 696 million yen and
350 million yen, respectively.

✓ The decrease in other current assets was
mainly due to a 233 million yen decrease indeposits held with trust banks for theacquisition of treasury stock. This was
attributable to a decrease in deposits at thetime of the acquisition of treasury stock andthe return of the remaining balance uponcompletion of the acquisition.

✓ Cash flows from investing activities:
decreased by 90 million yen due to thepurchase of property, plant andequipment.

Cash flows from operating activities

596

△318

630

33

Cash flows from investing activities

△425

144

△254

171

Cash flows from financing activities

△220

△221

△40

180

Proceeds from long-term loans payable
increased by 300 million yen.

Effect of exchange rate change on cash andcash equivalents

△3

△13

14

18

✓ Free cash flows increased by 205 million

Cash and cash equivalents at end of period

6,633
170

109
△174

5,996
375

△637
205

Free cash flows✓ Cash flows from financing activities:

yen.

6

Contents
Financial
Overview

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2024

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2024

P8 – P14

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2024 andEfforts toward Each Business

P16 – P24

About Watts GroupP26 – P32

Reference

7

By Business

Topics by Business

Domestic 100-Yen Shop businessOpening/closing

Watts brand shops

Number of shops: 1,803 (as of February 29, 2024)
87 openings and 53 closings (net increase of 34) vs. full-year
forecasts (160 openings and 120 closings)

P10

Increased by 88 shops to 1,335 shops through openings andrenovations. The Watts brand shops accounted for 74.0% of the total
100-yen shops.

Overseas Business
Overseas shops

31 shops sell our product in our group, down 8 from the previous
period.

P12

Domestic Other Business
Buona Vita

A lifestyle goods shop offering a comfortable and joyful life.
Operate 13 shops, and the same-store sales performed well at
104.5% YoY.
P13

Real

Community-based discount shop. Operate 6 shops. Aim tocreate synergies with the 100-Yen Shop business.

P14
8

By Business 100-Yen Shop Business (1)- Changes in Same-store sales YoY
FY8/24 (Period under review)110.0%

FY8/23 (Previous period)
106.5% 106.2%

104.0%
103.2%
102.5%

105.0%

100.7%
100.0%

98.7%

100.0%
98.7%

98.9%
96.6%

95.0%

90.0%

100.8%

101.0%
98.0%

97.0%

97.3%

98.6%

98.3%
96.2%

Multiple factors include a decline in sales of masks and sanitization-related products reflecting the downgrading of the legal status of
COVID-19 to "Class 5“; product shortages due to the combination of the introduction an automated ordering system and the large-scalediscontinuation and replacement of products; and labor shortages associated with the opening of a large number of new stores.

Sep

H1

Oct

Nov

Dec

Sales

Number ofcustomers

Jan

SpendingpercustomerPrevious
period102.6%

100.3%

102.8%

Period underreview

99.0%

97.8%

101.2%

Feb

Mar

Apr

May

Jun

Jul

Aug

✓ Same-store sales recovered to 102.6% YoY as
some negative issues from the previous fiscal
year have been resolved.
✓ Sales of the Watts brand shops were 103.6%
YoY.
9

By Business

100-Yen Shop Business (2)- Number of Shops (Opening/Closing Plan and Results)

Opening

Closing

Opening/closing plan and results

No. of shops at the end of period

Acquisition of OFR

1,769 1,803

1,794 1,809

1,641
1,364

228

Q2
Opening plan
90 shops→ Opened 87 shops

Q2
Closing plan
65 shops→ Closed 53 shops(Full-year progress rate: 54.4％)

193
165

160

87

90

✓ Net increase of 34 shops vs. the planned 25 shops.
120

100

41
FY8/21

61
FY8/2253
FY8/23

FY8/24 Q2(Result）(Full-year progress rate: 44.2％)✓

Opened 7 tenant-type shops and 80 consignmenttype shops. The majority of new shops wereconsignment-type.

✓Out of the total 1,803 shops, we have 1,335
WATTS brand shops (a net increase of 88 shops).

65
FY8/24 Q2(Plan)

FY8/24(Plan)

10

By Business

100-Yen Shop Business (3)- Number of tenant-type shops selling higher-priced products and its sales share

23.0%

18.9%

Sales from higher-priced products (tenant-type shops)
Sales proportion of higher-priced products (tenant-type shops)

2,000

15.5%
1,500

9.0%
8.3% 8.3% 8.6%
8.1% 8.1% 8.6%

9.8% 9.9%

11.0%

16.2%

18.0%

11.4%
13.0%

1,000

8.0%

500

3.0%

0

-2.0%

FY8/21
Q1

Q2

Q3

Q4

FY8/22
Q1

Q2

Q3

Q4

FY8/23
Q1

Q2

Q3

Q4

FY8/24
Q1

Q2✓ We currently sell 4,266 higher-priced products.
✓ Increase the number of higher-priced products through product replacement, targeting
20.0% of sales from these products.
11

By Business

Overseas Business

180 0(Millions of yen)

Directly-managed sales

Wholesale sales

160 0

140 0

1,298

1,340
1,158

120 0

857

100 0

771

962

800

650

828

647

400

526
200

377

329

486

145

164

FY8/21
H1

FY8/22
H1

0

FY8/18H1

FY8/19H1

FY8/20H1FormatClose

Thailand

FC

－

5

20

395

China

FC

－

－

4

76
FY8/24
H1

Peru

Directlymanaged

－

3

7

－

8

31

471

600

712

Open

No. of shops(Feb. 29,
2024)

Country518

128
FY8/23
H1

Total✓ 20 shops in Thailand, decreased by 5 shops
YoY.
We currently have 1 store of the new brand"Watts.up+", which focuses on higher-priced
products.

✓ 7 shops in Peru, decreased by 3 shops YoY.
✓ Total overseas sales decreased since
Watts.up+ Central Rama 2 (Thailand)international shipment volumes have not yet
fully recovered to pre-COVID levels.
12

By Business

Buona Vita

Opening
Closing
No. of shops at the end of period

21

23

15

13

15

✓ As of September 1, 2022, Watts Connection, the5operator of Buona Vita, was merged into Watts East
Japan Sales.

3
2

5

3 1
FY8/21

FY8/220
FY8/23

1 1
1
FY8/24
Q2（Result）

Buona Vita AEON TOWN Yūkarigaoka (Chiba)

FY8/24（Plan）*The number of Buona Vita shops excludes 6
consignment-type shops located in our 100-Yen shops.

✓ 13 shops as February 29, 2024.
✓ The same-store reached 104.5% of the previous fiscal
year result, driven by robust sales of apparel, bags,
and other items reflecting increased demand foroutings.

13

By Business

Real and Tokino:ne✓ Operate 2 “Tokino:ne” shops, ahousehold items brand.

✓ Offer a wide range of value-for-money
products, leveraging our robust
procurement capabilities.

✓ We also run collaborative shops with our
100-Yen shops, generating synergistic
effects.

✓ Operate 6 shops as of February 29,
2024.

✓ The store layout is divided into zones formorning, noon, evening, and night. It
offers a collection of products necessaryfor each time zone, allowing customers toenjoy their shopping experience whileenvisioning their daily routines.
✓ These products are offered in 200 of our
100-Yen shops, generating synergistic
effects.

14

Contents
Financial
Overview

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2024

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2024

P8 – P14

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2024 andEfforts toward Each Business

P16 – P24

About Watts GroupP26 – P32

Reference

15

Business Plan

Business Forecasts for FY8/24(Revised on March 28, 2024)
Progress rate to thefull-year forecasts(Millions of yen)

Business
forecasts (revised)100.00%FY8/24 (Forecast)
Ratio to
sales

YoY

90.00%

Sales

60,200－101.5%

80.00%

Operating profit

1,050

1.7%

168.9%

70.00%

Recurring profit

1,000

1.7%

154.2%

60.00%Net income attributable toowners of parent

620

1.0%

247.4%

50.00%Net income per share (yen)46.77

253.4%

40.00%✓ Sales are expected to increase driven by steadysales in the 100-Yen Shop business.
✓ Operating profit, recurring profit, and net income
attributable to owners of parent are expected toincrease. This is attributed to the expected
improvement in gross margin compared to theprevious fiscal year, resulting from initiatives toincrease the sales proportion of household items
and products priced above 100 yen.

30.00%

70.8% 74.9%

70.3%

50.3%

20.00%
10.00%

0.00%

Sales

OperatingprofitRecurringprofit

Net income
attributable toowners ofparent16

Business Plan

Initiatives for Sustainable Value Enhancement- Changes in P/B Ratio/ROE
1.2

P/B ratio(x)1.00

ROE(％)

1.1

1.0
0.8

0.8

0.7

8.0

8.9

7.5

6.7
5.2

0.7

2.1

0.00
P/B ratio (x)ROE (%)

FY8/19FY8/20FY8/21

FY8/22

FY8/23

0.8
0.7

1.2
7.5

1.1
8.9

0.8
6.7

0.7
2.1

Status quo analysis

Response[P/B ratio]
5-year average: 0.9x

Improve
P/B ratio

Below 1x for 2 consecutive years

FY8/24(forecast)
－
1.0
5.2

0.0

➢ Achieve sustainable corporate value enhancement＝

Improve ROE ➢ Maintain and improve ROE above the cost of equity[ROE]
5-year average: 5.1%
Above the cost of equity

×

Increase
P/E ratio➢ Improve P/E ratio while maintaining ROE

17

Business Plan

Initiatives for Sustainable Value Enhancement- Measures to improve ROE/P/E ratio

Status quo analysis/Issues[ROE]
5-year average: 5.1%

Response/Measures➢

The level exceeds the cost of equity,
but remains sluggish at 2.1% in
FY8/23. Aiming for a stable 10.0%
level.

➢

33.4x in FY8/23
Higher than normal period due todeterioration in profit margin◆ Improve gross margin
・ Increase the sales proportion of products priced
above 100 yen.

● Implementation offinancial measures◆ Improve operating profit margin
・ Close unprofitable shops
・ Open shops mainly consignment-type
・ Reduce personnel cost through self-checkout
register and automated ordering systems● Optimization ofshareholders' equity

WACC: 3-4%
Cost of equity: 4-5%

[P/E ratio]
5-year average: 17.9x

Maintain and improve ROE
above the cost of equity

Improve P/E ratio while
maintaining current ROE
level● Reduction of cost ofequity● Improvement in growth
expectations◆ Balancing shareholder returns and business
investment

・ Continue to pay stable dividends, purchase and retire treasury stock・ Make appropriate investments in personnel and business growth◆ Strengthening IR/SR

・ Promote communication with shareholders and sharethe information with the Board of Directors
・ Hold various briefings
・ Maintain and improve the Pages per Visit of ourcompany's IR website◆ Strengthening PR activities

・ Provide more information through Watts Online
Shop and Watts official apps, etc.

18Business Plan

Growth vision with the trinity of our businessContinue to pursue
structure to sellbetter products at lower
pricesDevelop shops
collaborated with otherbusiness formats✓ Low-cost opening and closing ofshops✓ Low-cost operation✓ Best value-for-money dailyuse household items✓ Utilize POS system and promote
the introduction of automatedordering system✓ Further improvement of the“Watts” and "Watts with" shop
opening model✓ Create group synergies byleveraging other businessformats✓ Consider M&A for further growth

100-Yen Shop business

Establish businessmodel for eachcountry✓ Further growth of existing
businesses under COVID-19
environment✓ Start joint businesses withoverseas partners✓ Collaboration with otherindustries utilizing existing
management resources

Overseasbusiness

Otherbusinesses

Expand business andenlarge source of
earnings✓ Fundamentally strengthen
the Group's e-commercechannels✓ Capture new opportunities
including M&A

19

Business Plan

Initiatives for the 100-Yen Shop Business (1)Offer higher-priced products✓ Increase the number of higher-priced products (price ranges
above 100 yen) to expand the product range and keep thesales floor attractive.
✓ Actively introduce these items to consignment-type shops,
leading to an improvement in gross margin for the entire group.
✓ We currently have 4,266 items as of February 29, 2024.
Introduce more items with the target of 4,500 items (20% ofsales proportion)

Intra-group collaboration✓ Collaboration with lifestyle product brand Buona
Vita and a household items brand Tokino:ne togenerate synergies within the group.

20

Business Plan

Initiatives for the 100-Yen Shop business (2)Renovation of FLET'S brand shops into WATTS✓✓✓

Change floor layouts and increase the numberof lifestyle products
In some shops, the renovation has yielded
positive effects such as an increase in the
proportion of lifestyle product sales, leading tosignificant overall sales growth.
Apply the successful cases for more shops toimprove profitability for large-scale roadside
shops

21

Business Plan

Initiatives for the 100-Yen Shop business (3)Introduction of self-checkout register✓ We have full-function self-checkout registers accepting
both cash and cashless payments at 50 shops as ofFebruary 29, 2024. (including cashless-only machines,
self-checkout is available at 115 shops). Continue tointroduce more full-function machines.

✓ These machines are designed to enhance in-store
productivity by streamlining the purchasing process
and reducing labor requirements; use spare resources
to improve customer satisfaction.
✓ Reduce waiting time to minimize peak-time queue(Reduce opportunity losses).

POS data analysis✓ To enhance the freshness of our sales floor products, we are actively
reducing slow-moving items and replacing them with popular and new
products.
✓ Utilize POS data for data analysis, creating store models that align with thespecific shop location and customer demographics.
✓ Automatic ordering systems are introduced to nearly all tenant-type shops;
currently, 70% of all shops place orders automatically. Further improvements
are underway to enhance efficiency.

22

Business Plan

Initiatives for the 100-Yen Shop business (4)Watts Online Shop

Social Media・Watts official YouTube channel✓

Launched in-store pickup service nationwide✓

Offering not only products from the 100-Yen shop, butalso products from the Watts Group brand and items
exclusive to the online shop.

✓ Increase our brand awarenessthrough these media
23

Business Plan

Initiatives for Overseas and Other Businesses[Overseas Business]⚫ Implement restructuring of operations in Thailand and measures toachieve profitability in Peru, including the closure of unprofitable shops
and cost reduction initiatives.
⚫ Expand our new overseas brand, “Watts.up+”.
⚫ Explore new markets and revitalize existing markets.
[Buona Vita]⚫ Plan to open 1 new shop, with a target of 99.5% same-store sales YoY.
⚫ Enhance the product sections within our 100-Yen shops to increase theirappeal to customers.
⚫ Optimize store layouts using POS data analysis.
[Real]⚫ Plan to open 1 new shop, which is renovated from the FLET’S branddirectly-managed shop.
⚫ Enhance collaboration with our 100-Yen shops, aiming to improve thegross margin through optimization of sales balance between 100-yen
items and Real’s items.
[Nippan]⚫ Ensure a consistent inventory supply for core products, especially for
medical institutions, to prevent opportunity losses.
24

Contents
Financial
Overview

Operating Results for the Six Months of
the Fiscal Year Ending August 2024

P2 – P6

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2024

P8 – P14

Business Forecasts for the Fiscal
Business Plan Year Ending August 2024 andEfforts toward Each Business

Reference

About Watts GroupP16 – P24

P26 – P32
25

Reference

Brands of Watts Group

Domestic 100-Yen Shop business

Overseasbusiness

Other domestic
business

26

Reference

Overview of Other Businesses

Operate 13 shops as of February 29, 2024.

Buona Vita, avariety store
that promotes
a comfortable
lifestyle.

Tokino:ne, a household
items shop under the themeof “time”. Operates 2 shops.

Community-based
small discount shop.
Operate 6 shops as ofFebruary 29, 2024.

Collaboration shop between
100-Yen shop and grocery

27Reference

Company Profile

Establishment

February 22, 1995 (Currently the 30th business term)

Meaning of the Company’s name

Derived from “Wa! tto ikou”(Japanese catch cry to “go forth energetically”)

Market listing

Tokyo Stock Exchange Standard Market(Securities code: 2735)

Capital stock

440 million yen

Head office

Main business

Number of employees
Number of shops

5F, Sumitomo OBP Plaza Building, 4-70,
Shiromi 1-chome, Chuo-ku, Osaka-shi, Osaka Prefecture

Wholesale and retail of daily-use and household items(Mainly operation of 100-Yen shops)
3,431 employees (as of February 29, 2024) *Part-time workers included
1,856 shops (as of February 29, 2024) *Other shops included28

Reference

Corporate History
2021
Acquired
Ontsu F RetailCo., Ltd.

✓ 2011 Advanced to Hokkaido（Opened shops in 47 prefecture）

2014
Exceeded
1,000 shops

2009
Started overseas business
Advanced to Thailand
2007✓ 1997 Established distribution
Integrated
with
Ohthree Co., Ltd.
center in Shiga Prefecture
Exceeded 700 shops✓ 1995 Established in Chuo-ku,
Osama , as a successor of
Hisamatsu Co., Ltd.

2002
¥10b in sales
Went OTC

FY8/23

1998
Exceeded 100 shops
for 4 years
after establishment

1995
Established
Consolidated sales

Sales¥59.3bn

No. ofshops

1,831 shops

No. of Group shops at the end of period29Reference

Sustainability/ESG Initiatives
Environmental Initiatives✓ Develop sustainable products made fromenvironmentally friendly recycled materials

Human Resources
Initiatives✓ [Diversity]
Promote diversity by appointing
personnel based on their abilities andaptitudes, regardless of gender,
nationality, etc. Female managers
accounted for 9.9% (FY8/23).

✓ [Work-Life Balance]
Encourage employees to take paid
holidays and male childcare leave tocreate a comfortable work
environment.

✓ Investment in social bonds issued byGovernancethe Japan Student Services
Organization (72nd JASSO Bond)✓ Established the Sustainability Committee. The
Committee is chaired by the President, facilitating thedecision-making and reporting process to the Board of
Directors, as well as the integration of climate-related
issues into management.

What is Social Bond?
Bonds issued to finance projects that
contribute to solving social issues

30Reference

Shareholder Composition

Individual and others

Other companies

Foreign companies and others

Financial institutions

Securities companies

1.98%
FY8/23
Q2

55.09%

24.68%

FY8/24Q2

55.50%

26.45%

Total number ofshares issued
Number ofshareholders

FY8/23 Q2

FY8/24 Q2

13,898,800 shares 13,898,800 shares 13,458,800 shares

2.28%

9.29%

2.20%

2.44%

YoY
△440,000shares

17,572

18,897

15,604△3,29351.34%

55.09%

55.50%+0.41P

24.60%

24.68%

26.45%+1.77P

3.78%

1.98%

4.12%

+2.14P

Financial institutions

14.01%

11.41%

9.29%△2.12P

Securities companies

3.94%

4.53%

2.44%

△2.10P

Treasury stock

2.32%

2.28%

2.20%

△0.08P

Individuals andothersOther domestic
companies
Foreign companies
and others

4.53%

11.41%

4.12%

FY8/22 Q2Treasury stock(Note) The figures are rounded to the third decimal place and may not add up to 100% when adding the ratios of each section.

✓ Total number of sharesissued decreased by
440,000 shares due to thecancellation of treasury stock.

✓ The number of shareholders
decreased by 3,293 from theend of the same period of
the previous fiscal year (theratio of foreign companies
ownership increased by 2.14ppt.).

31

Reference

Dividend Policy

The Company’s policy is “to maintain a stable dividend payment,”
considering the return of profits to shareholders.
Net income per share

Dividend per share

ROE（Return on Equity）

DOE（Dividend on Equity）

Dividend payout ratio

FY8/21

FY8/22

FY8/23

81.2%

32.1%

30.5%
25.9%
8.9％

6.7％

1.9%

¥22.00FY8/21

2.1％

5.2%
1.7％

2.7％

1.7%

¥15.00¥15.00¥15.00FY8/22

FY8/23

FY8/24(Forecast)

FY8/24(forecasts)

Net income per share (Yen)¥72.09¥57.83¥18.46¥46.77

Dividend per share (Yen)¥22.00¥15.00¥15.00¥15.00

Dividend payout ratio

30.5%

25.9%

81.2%

32.1%

Dividend yield

2.5%

2.1%

2.4%

2.4%

ROE (Return on Equity)

8.9%

6.7%

2.1%

5.2%

DOE (Dividend on Equity)

2.7%

1.8%

1.7%

1.7%

*The dividend payout ratio for each fiscal year is calculated based on the stock price of
the accounting date.
*The payout ratio for FY8/24 is calculated based on the stock price on February 29,
2024.)

32

The data and future forecasts presented in this material are based on information that
was available at the time this material was released. Changes in circumstances canoccur due to a range of factors and the Company gives no guarantee regarding
achievement of objectives and forecasts, or future operating results. Information
contained herein may change without forewarning. When using this data and referencematerials, please verify and confirm details against information that you have obtainedby other methods and exercise your discretionary judgment. Watts Co., Ltd. will in noway be held liable for any loss resulting from the use of this material.

Please contact us if you have any inquiry regarding this material.
Inquiries:
Hidehito Mori
(Executive Managing Director, Head of Corporate Planning Office), Watts Co., Ltd.

e-mail： ir@watts-jp.com
TEL ： 06-4792-3280