Watts Co., Ltd.

(2735; Tokyo Stock Exchange First Section)

Operating Results for the Fiscal Year
Ended August 2020 and Business
Forecasts for the Fiscal Year Ending
August 2021
October 19, 2020 (Monday)
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2020

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2020

P8 – P17

Business Forecasts for the Fiscal
Business Plan Year Ending August 2021 andEfforts toward Each Business

Reference

P19 – P23

P25 – P32
1

Financial
Overview

Consolidated Operating Results for the Fiscal Year
Ended August 2020
(Millions of yen)

Financial highlights

FY8/19FY8/20 (Current period)

Ratio to sales

Ratio to sales

YoY

Ratio toforecast

Sales

51,399－52,795－102.7％

100.9％

Gross profit

19,337

37.6％

20,21538.3％

104.5％－

Selling, general and administrative
expenses

18,62036.2％

18,446

34.9％

99.1％

－

EBITDA

1,157

2.3％

2,186

4.1％

188.9％－

Operating profit

716

1.4％

1,768

3.4％

246.7％

119.5％

Recurring profit

656

1.3％

1,731

3.3％

263.9％

121.1％Net income attributable to owners ofparent

70

0.1％

774

1.5％

1097.3％133.5％Net income per share (Yen)

5.26

－

－

※

57.80

Comparison with the FY8/20 consolidated business forecasts announced on July 10, 2020 in "Notice Concerning Revision to Business Forecast" Sales increased by 2.7% YoY as a result of the strong performance of the 100-Yen shop business thanks to theeffect of introducing products in a price range other than 100 yen and the special demand for stay-at-home products➡P3, P9
during pandemic.
Gross profit increased by 4.5%, as the gross margin improved by 0.7 percentage points.
➡P4
Despite an increase in personnel expenses for premium benefits to part-time employees who continue to work under
the COVID-19 crisis due to COVID-19, operating profit was 246.7% YoY, increasing significantly, mainly due to a➡P5decrease in travel expenses reflecting restrictions on business trips and commuting and self-restraint, and reduced
expenses related to shop openings due to fewer large-scale shop openings.

2

Financial
Overview

Sales by Business Type(Millions of yen)

Sales by Business Type
Directly managed

100-Yen shops

Wholesale, Other
Subtotal
Directly managed

Overseas
Business

Wholesale
Subtotal

FY8/19FY8/20 (Current period)

Ratio to sales

Ratio to sales

YoY

42,5292,368
44,897
762
1,714
2,476

82.7％
4.6％
87.4％
1.5％
3.3％
4.8％

45,4682,10647,573
444
1,311
1,756

86.1％
4.0％
90.1％
0.8％
2.5％
3.3％

106.9％
88.9％
106.0％
58.4％
76.5％
70.9％

1,697

3.3％

904

1.7％

53.3％

2,328
51,3994.5％
100.0％

2,561
52,7954.9％
100.0％

110.0％
102.7％

Buona Vita
Lifestyle products
business

Søstrene Grene
AMANO*

Real, etc.

Total

*The Company withdrew from the Amano business at the end of November 2019.

 Sales in the domestic 100-Yen shop business increased by 6.0% YoY. Overseas business and lifestyle
products business were forced to suspend operations for an extended period of time due to the spreadof COVID-19 in Japan and overseas, resulting in a significant decrease in both sales and its
composition. As a result, the ratio of sales in the domestic 100-Yen shop business to consolidated sales
increased by 2.7 percentage points. In particular, the ratio of sales from directly managed shops,
3
excluding wholesale and others, which is gradually declining, increased by 3.4 percentage points.

Financial
Overview

Quarterly Changes in Gross Margin(Millions of yen)

12,731

Sales

12,916

12,974Gross profit
12,775

4,833

4,882

19/8
1Q

19/8
2Q

19/8
3Q

13,185

39.0%

38.5%

37.9%

37.4%

4,761

13,628Due to a decrease in the sales ratio of thelifestyle products business with high grossmargin, resulting from temporary shop
closures under the State of Emergency

37.7%

37.6%
37.4%

13,27812,703

Decreased due to an increase in thesales ratio of overseas wholesales
with low gross margin

38.0%

Gross margin

4,859

19/8
4Q

4,794

20/8
1Q

5,105

5,171

5,143

20/8
2Q

20/8
3Q

20/8
4Q
4

Financial
Overview

Factors for Changes in Operating Profit(Millions of yen)

Sales increased by 2.7% and gross margin
improved by 0.7 percentage points,
resulting in a 4.5% increase in gross profit.

Amount ofincrease in
Amount ofgross profit increase in rent

63

878

Operatingprofit716

Previous
periodAmount ofincrease inpersonnel
expenses

112

Amount ofAmount ofdecrease in
decrease inutility billequipment cost45

Increased due to payment ofpremium benefits to part-time
employees who continue to work
under the COVID-19 crisis and extra
bonuses to employees, etc.

69

Amount ofdecrease intravelexpenses

64

Amount ofdecrease incommission
paid

Increase/decrea
se in otherexpenses

62

106

Decreased due to voluntary
restraint on domestic and overseas
business trips and commuting

Decreased due to the switch to LED lighting
and the temporary closures of shops andshortened operation hours for COVID-19
countermeasures

Operatingprofit1,768

Increased by 1,051 million yen 246.7％ YoY
Current
period5

Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows(Millions of yen)

Consolidatedbalance sheet

 Shareholders' equity ratio was

FY8/20(Current period)

FY8/19Pct. change

Pct. change

Cash and deposits

6,075

Up 18.0%

6,591

Up 8.5%Merchandise and finished goods

7,081

Up 4.0％7,114

Up 0.5％

Other current assets

2,942

Up 11.2％

2,710

Down 7.9％

Tangible fixed assets

1,780

Up1.2％

1,608

Down 9.7％

Other fixed assets

3,677

Up 2.7％

3,519

Down 4.3％

Total assets

21,557Up 8.1％

21,544

Down 0.1％

Liabilities

11,690Up 20.4％

11,062

Down 5.4％

Net assets

9,867

Down 3.6%

10,481

Up 6.2%



48.7%, up by 1.6 percentage points
from the end of the previous period.
In tangible fixed assets, tools,
furniture and fixtures decreased by
105 million yen due to progress in
depreciation, etc.
In liabilities, trade notes andaccounts payable decreased by
1,217 million yen, consumption tax
payable increased by 289 million
yen, and current portion of longterm debt increased by 249 million
yen.

(Millions of yen)

Consolidated cash flows

Pct. change
Net cash provided by (used in)operating activities
Net cash provided by (used in)investing activities
Net cash provided by (used in)financing activities
Effect of exchange rate change on cash
and cash equivalents
Cash and cash equivalents at end of
periodFree cash flows

 In the cash flows from operating

FY8/20(Current period)

FY8/19Pct. change

2,279

1,592

922

△1,357

△832

△216

△526

305

△510

147

106

616

△8

△14

14

23

6,075

928

6,591

516

1,447

1,375

395

△1,052activities, income before income
taxes and minority interests
increased by 717 million yen while
trade payables decreased by 2,892
million yen due to the last day ofthe previous fiscal year being aholiday.
In the cash flows from financing
activities, proceeds from long-termloans payable increased by 238
million yen.
6

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2020

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2020

P8 – P17

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2021 andEfforts toward Each Business

P19 – P23

Reference

P25 – P32
7

By Business

Topics by Business

Domestic 100-Yen Shop BusinessOpening/closing

Opened 129 shops against the full-year plan of 140 shops and closed 81
shops against 82 shops. The number of shops at the end of the period was
1,240 (net increase of 48 shops)➡P10

Watts brand shops

Increased by 119 shops to 639 shops due to openings and renovations. The
share to total number of 100-Yen shops increased to 51.5%➡P11

Overseas Business
Overseas shops

The number of shops that are selling WATTS products was 83 (down 5 fromthe end of the previous fiscal year), and more than 120 shops including local
partners’ shops.
➡P14

Domestic Other Business
Buona Vita

A life-style goods shop offering comfortable life. The number of shops at theend of period was 21. Launched a sales promotion using LINE official ➡P15
accounts.

Søstrene Grene

Denmark’s life-style goods shop. Operate 4 shops.
Decided to withdraw from this business after determining that it would be
difficult to early achieve profitability on a business basis.
➡P16

AMANO

Withdrew from this business as of the end of November 2019.

RealCommunity-based discount shop. Operates 6 shops at the end of August➡P17
2020. Aim to create synergies with 100-Yen shop business.

8

By Business125.0%

Situation of 100-Yen Shop Business①― Changes in Same-store sales YoY ―FY8/20 (Current period)

FY8/19 (Previous period)

120.0%
Rush demand prior to theconsumption tax hike in September
and its reactionary fall in October

115.0%

Special demand for stayat-home products under
the State of Emergency

117.0%
116.0%
116.0%

110.0%
104.7%

102.8%

106.2%
105.0%

102.7%

105.0%

100.3%

100.4% 100.2%
100.0%

110.0%

108.9%
101.1%

99.7%
97.7%

101.4%

95.0%
90.0%

98.8%

99.2%

100.3%

Full-year total

Oct

Sales

97.5%

101.0%

Increase in demand for hygiene
products due to the spread of
COVID-19

96.6%
Sep

98.1%

Nov

Dec

No. ofcustomers

Jan

Feb

Spending per
customer

YoY

99.7％

98.8％

100.9％

Current period

107.0％

101.5％

104.4％※ Sales for September 2020: 96.7％

Mar

Apr

May

Jun

Jul

Aug

 Same-store sales were strong due to increased
demand for handicraft products for handmade
masks and growth in sales of confectionery
products reflecting the special demand for stay-athome products during pandemic.
 Sales of Watts brand shops were 108.4% YoY.
9

By Business

Situation of 100-Yen Shop Business②―Number of Shops (Opening/Closing Plan and Results) ―Opening
Closing
No. of shops at the end of period

1,161

1,192

Opening/closing plan and results

1,240

1,250

Opening plan
140 shops → Opened 129 shops

1,087

141

140

129

130

Closing plan
82 shops

111→ Closed 81 shops

 Breakdown of shop openings: 14 tenant
shops, 115 consignment shops. Total
number of shops was 129.
71

17/8

67

18/8

80

19/8

81

20/8

82

20/8
(Forecast) Breakdown of shop closings: 28 tenant
shops and 50 consignment shops, and 3 FC
shops. Total number of shops was 81.
 The number of new shops opened wasslightly less than planned, with net increaseof 48 shops. The number of shops was
1,240 at the end of period.

10

By Business

Situation of 100-Yen Shop Business③―New Shop Openings and Renovations of “Watts” Brand Shops―

ClosingRenovation
Opening
No. of shops at the end of period

588
479

184

520

419

352
257

20
September 2020 Watts Moriyama molive Shop (Shiga)

10

11

16

20

15

9

6
78

50

639

63

70

58

55

52

55

-1

-1

-3

-7

-10

-17

-12

-13

17/8
2Q

17/8
4Q

18/8
2Q

18/8
4Q

19/8
2Q

19/8
4Q

20/8
2Q

20/8
4Q

 Increased by 119 shops from the end of
the previous fiscal year. The share to total
number of shops (1,240 shops) is 51.5%.
 To open shops mainly Watts brand;renovations will be made by timing of shop
contract renewal and through carefulconsideration of investment effect.
11

By Business

Situation of 100-Yen Shop Business④- Changes in the number of shops introducing higher price products and its sales share

100 0

900

Consignment-type (number of shops introduced)
Tenant-type (number of shops introduced)
Ratio of higher price prodicts

5.9%
5.5%

800

FY8/19FY8/20

Number ofchanges

862

1,532

+670

700

600

Number of
items

4.2%
3.8%
556

383

424

406

433

585

519

483
500

4.5%

3.5%

2.9%

400

2.5%

2.3%

300

1.4%
200

1.5%

1.0%
0.7%

100

0

0.5%

19/8
1Ｑ

19/8
2Ｑ

19/8
3Ｑ

19/8
4Ｑ

20/8
1Ｑ

20/8
2Ｑ

20/8
3Ｑ

20/8
4Ｑ

 The introduction of higher price products to the tenant type shops has been roughly completed,
and we will continue to introduce to the consignment type shops.

 Sales of highr price products increased by about 3.4 times YoY
12

By Business

300 0

Situation of Overseas Business①―Changes in Sales (Directly-managed and Wholesale)―(Millions of yen)

2,715
2,297

250 0

1,881

200 0

Directly-managed sales

1,058

Wholesale sales

1,756

1,616
1,714

1,371

150 0

2,476

1,174

1,311

100 0

500

87

149

10/8

11/8

251

426
400

0

12/8

13/8

508
395

681

112

377

14/8

15/8

707
16/8

925

1,098

17/8

762

18/8

19/8

444
20/8

 Directly-managed shops gain foothold while focusing
on wholesale sales to neighbor countries(collaboration with local partners).
 Due to the impact of COVID-19, most overseas shops
were temporarily closed, resulting in a decrease ofabout 50% in sales in 2H.

October 2019 Central Festival Phuket Shop (Thailand)Overseasbusiness

FY8/19FY8/20

YoY

Sales

2,476
million yen

1,756
million yen

70.9％

13

By Business

Situation of Overseas Business②― Number of Shops (Opening/Closing Plan and Results) ―Opening
Closing
No. of shops at the end of period

88

83

96

72

Country

FormatThailandOpening

Closing

FC

9

8

50

China

FC

4

－

6

Malaysia

FC

－

6

2

Vietnam

FC

－

4

5

Directlymanaged

1

1

20

14

19

83

Peru

Total

66

No. ofshops(20/8)

 In Thailand, there are 50 shops, with a netincrease of only 1 shop. 12 "Watts" brand shops
opened through new openings and renovations.

 Sales subsidiary in China was sold to Chinese

12
22
12

14

12

17/8

4

6

5
18/8

company in April. Aiming to expand businessthrough distributors and wholesalers

19

18

19/8

20/8
(Result)

20/8(Forecast) There are about 40 fixed-price shops with sales
floors consisting of the Company’s products which
include 17 shops in Myanmar, 8 shops in Mexicoand other countries.
14

By Business Situation of “Buona Vita”

Opening
Closing
No. of shops at the end of period

25

21

20

21

21
September 2020 Buona Vita Grand Emio Tokorozawa(Saitama) Operate 21 shops as of the end of August 2020
 Same-store sales remained sluggish at 90.1% YoY,

4
3

3

5

4

1
17/8

2
18/8

19/8

2
1

20/8
20/8
(Result) (Forecast)despite a review of the product mix for each store
characteristic and the special discount services forLINE friends, along with events at shops are locatedin.
 Under the declaration of the State of Emergency,
most shops were forced to temporarily close,
resulting in about 20% decrease in sales.
15

Situation of "Søstrene Grene"

By BusinessOpening
Closing
No. of shops at the end of period

5

5
4

4

 Operate 4 shops as of the end of August 2020
 Although the opening of shops with the low-operating

3
2 2
3

3
2
1

17/8

18/8

2
1

19/8

October 2019 Søstrene Grene Terrace Mall Matsudo Shop (Chiba)

20/8
20/8
(Result) (Forecast)

cost format have led to the prospect of profitability atshop basis, we have decided to withdraw from thisbusiness as it would be difficult to profitability as
business basis within a short term period.

 Plan to withdraw from the business during FY8/21
with closing shops sequentially16

By Business

Situation of “Real"

Opening
Closing
No. of shops at the end of period

7

6

6

 Offer a wide range of value-for-money

4
Acquired shares of RealCo., Ltd. in April and madeit into a subsidiary

2
1
18/8

19/8

20/8
(Result)

20/8(Forecast)products with utilizing their strength inprocurement capability.
 Trial opening of collaborative shops with theCompany’s 100-Yen shops to createsynergies with 100-Yen shop business.
 Operate 6 shops at the end of August 2020 (5tenant shops and 1 consignment shop).
17

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2020

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2020

P8 – P17

Business Forecasts for the Fiscal
Business Plan Year Ending August 2021 andEfforts toward Each Business

Reference

P19 – P23

P25 – P32
18

Business Plan

Business Forecasts for FY8/21(Millions of yen)
FY8/19Business
forecasts

Ratio tosales

FY8/20
Ratio to
sales

YoY

FY8/21 (Forecast)
Ratio to
sales

YoY

YoY

Sales

51,399ー

103.9％

52,795ー

102.7％

50,960ー

96.5％

Gross profit

19,33737.6％

102.8％

20,21538.3％

104.5％

ー

－

ー

SG&A

18,62036.2％

104.6％

18,446

34.9％

99.1％

ー

ー

ー

Operating profit

716

1.4％

71.6％

1,768

3.4％

246.7％

1,090

2.1％

61.6％

Recurring profit

656

1.3％

63.2％

1,731

3.3％

263.9％

1,040

2.0％

60.1％

Net income attributable toowners of parent

70

0.1％

11.1％

774

1.5％

1097.3％

740

1.5％

95.6％

Net income per share (yen)

5.26

ー

57.80

－

55.23

－

ROE

0.7％

ー

7.5％

－

6.9％

ー

 100-Yen shop opening/closing plan
【Opening】1H:77, 2H:67, Total:144【Closing】 1H:53, 2H:36, Total:89

Net increase: 55 shops

 100-Yen shop same-store sales are expected to be
96.0% YoY due to a reactionary decline following
the COVID-19 special demand, and consolidated
sales are also expected to decrease.
 SG&A expenses are expected to decrease due tothe withdrawal from the business of Hillmar Japan,
but this will not be sufficient to compensate for the
decline in sales, and profits are forecast to
decrease.

19

Business Plan

Growth vision with the trinity of our businessContinue to pursue
Structure to Sell
Better Products at
Lower Prices
 Low-cost opening and closingof shops
 Low-cost operation
 Best value-for-money dailyuse household items

Establish businessmodel for eachcountry Expand directly managed
shops by fully owned local
subsidiaries
 Establish joint venturecompany with local partners
 Develop new shops by
franchisee system

Brush up of Watts brand

100-Yen Shop business

Overseasbusiness

Otherbusinesses

 Shops and product lineups that
add more style to one’s life Establish shop opening model of“Watts” and “Watts with”
 Utilize POS system and improvereordering support system

Expand business andEnlarge source of
earnings
 Grow existing business andsecure profitability
 Capture new opportunities
including M&A

20

Business Plan

Initiatives for the 100-Yen Shop Business①

Offer higher price products Increase the number of higher price products (¥200 to ¥1,000)
to enhance the product lineups and revitalize sales floors.
 Actively introduce to consignment-type shops, leading to an
improvement in gross margin for the entire group 1,532 items as of the end of August. Aiming for the
introduction of 2,000 items as of the end of August 2021.

Inter-group collaboration
 Trial collaboration with discount shops "Real"and lifestyle products businesses to createsynergies among Group businesses (Photograph:
Watts Kadoma Minami Shop with a product section of Real)

Full use of POS dataReduce stagnant products and replace them with popular and new products to increase the freshness of products ofsales floors
Introduce ordering support system to avoid losing sales opportunities due to stock-out
Create sales floors that match seasonal and regional characteristics by sharing accumulated POS data with all shops,
not only at each shop.
Trial management of single items is conducted from the 2H in some areas for inventory optimization and ordering
support.

21

Business Plan

Initiatives for the 100-Yen Shop Business②

Moves toward cashless payments
Charge for plastic bags

Cashless payment services currently available:credit cards, electronic money, iD, nanaco,
WAON, and Rakuten Edy, PayPay, etc.
As of the end of August 2020, cashless payment
is available at 432 shops among the 451 tenanttype shops.
*The payment system available at each store differ

E-commerce site

 Mainly offer SNS-listed products and Watts Select brand products Average spend per customer approximately 4 times that of physical shops

Restructuring of shop
operations and facilities
including cash registers in
response to the new rule tocharge plastic bags andcountermeasures against
COVID-19.

 Some products may not be much sold in the physical shops but are hot
sellers on the online store, which helps to promote products to customers.

22

Business Plan

Initiatives for Overseas and Other Businesses【Overseas Business】

 Plan to open 6 new shops, mainly in Thailand Focus on support for Thailand, Peru, Vietnam, the Philippines, and Myanmar asimportant markets
 Implementation of strategic renewal
 Replacement of products based on POS data Build an overseas supply chain in timely manner Develop products exclusively for overseas markets. Strengthen Japanese-madeproducts and higher price products【Buona Vita】
 Plan to open 2 new shops (tenant-type: 1, collaboration with our 100-Yen shop:
2) and aggressively close unprofitable shops.
 Implementation of effective sales promotion activities using LINE official
accounts
 Proposal of stay-at-home products suited to the New Normal lifestyles withprevention of COVID-19【Real】
 Plan to open 1 new shop
 Increase profitability by improving gross margin and reducing expenses
 Establish a structure that creates operation synergies with 100-Yen shops

23

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2020

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2020

P8 – P17

Business Forecasts for the Fiscal
Business Plan Year Ending August 2021 andEfforts toward Each Business

Reference

About Watts GroupP19 – P23

P25 – P32
24

Reference

Brands of Watts Group

Domestic 100-Yen shop business

Overseasbusiness

Other domestic
business25

Reference

Overview of Other Businesses“Buona Vita,” a variety store
which proposes a
comfortable life. Operates
21 shops as of the end of
August 2020. The photo is
Shin-Koshigaya Varie Shop
which opened in February
2020“Søstrene Grene”, a joint
venture in a life-style goods
shop offering North European
items. Operates 4 shops as ofthe end of August 2020

Community-based
small discount shop.
Operates 6 shops as ofthe end of August 2020.
Collaboration shop between 100Yen shop and grocery

26

Reference

Use of SNS

https://twitter.com/watts_100/

https://www.instagram.com/watts_100/

・Watts official twitter

・Watts official Instagram

Providing photos of recommended
products and announcements ofmonthly sales promotion.
Retweeting blogs and articles
containing 100-Yen shop
information.

Like twitter, we will inform you therecommended products of our 100Yen Shops. Providing attractive
information to get more followers

 The number of Instagram
followers has exceeded 120,000 Aiming to acquire new customers
as well as increase the frequencyof visits of existing customers

LINE@ is also available at several shops, which users
can get information when you become friend.

27

Reference

Company Profile

Establishment
Meaning of the Company’s nameFebruary 22, 1995 (Currently the 27th business term)
Derived from “Wa! tto ikou”(Japanese catch cry to “go forth energetically”)

Market listing

Tokyo Stock Exchange First Section(Securities code: 2735)

Capital stock

440 million yen (as of August 31, 2020)

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)
3,146 employees (as of August 31, 2020) *Part-time workers included
1,355 shops (as of August 31, 2020) *Other shops included28

Reference

Corporate History 2011 Advanced to Hokkaido（Opened shops in 47 prefecture）

2014
Exceeded 1,000 shops
Listed on TSE1

2009
Started overseas business
Advanced to Thailand 2002 Shares were publicly listed
2007（Current TSE JASDAQ）
Integrated with Ohthree Co., Ltd.

Exceeded 700 shops
 1997 Established distribution
center in Shiga Prefecture 1995 Established in Chuo-ku,
Osama , as a successor of
Hisamatsu Co., Ltd.

1998
Exceeded 100 shops
for 4 years
after establishment

1995
Established2005
100-Yen shops exceeded
300 shops

2002¥10b in sales
Went OTC

FY8/20Sales¥52.7bn

No. ofshops

1,355 shops

Consolidated sales
No. of Group shops at the end of period29Reference

Shareholder Composition
Individual and others
Financial institutions

Other companies
Securities companies

Foreign companies and others
Treasury stock

0.88%
FY8/1924.57%

48.22%

10.85% 11.87%
3.58%
1.71%

52.77%

FY8/2024.60%

4.43%

12.88%
3.58%

Total number ofshares issued
Number ofshareholders

YoY

FY8/18FY8/19FY8/2013,958,800

13,958,800

13,958,800

sharessharesshares

15,225

17,59023,454+5,86443.97%
24.55%

48.22%
24.57%

52.77%
24.60%+4.55P+0.03P

16.93%
11.72%
0.29%
2.51%

10.85%
11.87%
0.88%
3.58%

4.43%
12.88%
1.71%
3.58%△6.42P+1.01P+0.83P Number of shareholders－

Ownership ratio
Individuals and others
Other domestic
companies
Foreign companies
and others
Financial institutions
Securities companies
Treasury 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.

increased by 5,864 fromthe previous fiscal yearend.

 Ownership ratio of
individual shareholders
increased by 4.55
percentage points YoY.

ー30

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）

FY8/17

FY8/18FY8/19FY8/20

Dividend payout ratio

190.1％

32.1%

24.2%
8.7％
2.1%

26.0%
6.2％
2.0%

¥15.00¥15.00

17/8

18/8

7.5％
1.3%
0.7％

¥10.0019/8

1.9%

Net income per share (Yen)

61.96

46.79

5.26

57.80

Dividend per share (Yen)

15.00

15.00

10.00

15.00

Dividend payout ratio

24.2％

32.1％

190.1％

26.0％

Dividend yield

1.1％

1.6％

1.6％

1.6％

ROE (Return on Equity)

8.7％

6.2％

0.7％

7.5％

DOE (Dividend on Equity)

2.1％

2.0％

1.3％

1.9％

*Dividend payout ratio for each fiscal year is calculated based on the stock
price of accounting date.
*Payout ratio for FY8/20 is calculated based on the stock price as of today.

¥15.0020/8(Forecast)31

Reference

Shareholder Benefit Program

Number of shares held andholding period
100 to 999 shares
1,000 shares or more

Outline of benefits according to holding periods
Less than 3 years
3 years or more
Assorted products worth
Assorted products worth
about 1,000 yen
about 2,000 yen（A）（B）
Assorted products worth about 2,000 yen
（B）

A

B

※

Above images are benefits for FY8/20. Actual product may differ.

 We will plan more attractive benefits with reflecting your opinions and suggestions.
32

The data and future forecasts presented in this material are based on informationthat was available at the time this material was released. Changes in circumstances
can occur 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