Watts Co., Ltd.

(2735; Tokyo Stock Exchange Prime Market)

Operating Results for the Fiscal Year
Ended August 2022 and Business
Forecasts for the Fiscal Year Ending
August 2023
October 14, 2022 (Friday)
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2022

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2022

P8 – P15

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2023 andEfforts toward Each Business

P17 – P22

Reference

P24 – P30
1

Financial
Overview

Consolidated Operating Results for the Fiscal Year
Ended August 2022
(Millions of yen)
FY8/21

Financial highlights

FY8/22 (Current period)

Ratio tosales

Ratio to
sales

YoY

Ratio toforecast

Sales

50,702－

58,347－115.1％

100.6％

Gross profit

19,62538.7％

22,281

38.2％

113.5％－

Selling, general and administrative
expenses

17,95635.4％

21,28236.5％

118.5％－EBITDA

2,049

4.0％

1,690

2.9％

82.4％

－

Operating profit

1,669

3.3％

998

1.7％

59.8％

90.8％

Recurring profit

1,586

3.1％

1,148

2.0％

72.4％

99.9％

965

1.9％

781

1.3％

80.9％

94.1％

－

－

Net income attributable to owners ofparent
Net income per share (Yen)

72.09

57.83

 Sales increased by 15.1% YoY, owing to the consolidation of Ontsu F Retail Co., Ltd.(“OFR”) and Nippan Co., Ltd.(“NPN”)
as of October 1, 2021.






➡P３
Operating income was 59.8% YoY due to the slightly lower-than-expected 100-Yen shop same-store sales, amortizationof goodwill from M&A, and the amortization burden associated with the renewal of the core system.
➡P５,９
Net income attributable to owners of parent was 80.9% YoY, due to a decrease in tax expenses resulting from theabsorption of a consolidated subsidiary and the recognition of deferred tax assets and income taxes-deferred (gain)reflecting the loss carried forward for tax purposes.
Operating profit was 90.8% compared to the plan, due to higher-than-expected SG&A expenses, including utilities andcommissions, although sales were in line with the plan.

2

Financial
Overview

Sales by Business Type(Millions of yen)
FY8/21

Sales by Business TypeFY8/22 (Current period)
Ratio tosales

Ratio to
sales

YoY

Directly managed

44,28887.3％

51,82988,8％117.0％

100-Yen shops Wholesale, Other

1,673

3.3％

2,126

3.6％

127.1％

45,961

90.7％

53,955

92.5％

117.4％

274

0.5％

304

0.5％

111.2％

1,231

2.4％

1,123

1.9％

91.2％

1,505

3.0％

1,428

2.4％

94.8％

766

1.5％

572

1.0％

74.7％

2,468

4.9％

2,390

4.1％

96.9％

50,702100.0％

58,347100.0％

115.1％

Subtotal
Directly managed

Overseas
Business

Wholesale
SubtotalLifestyle products Buona Vitabusiness
Søstrene Grene

Real, etc.

Total

*We have withdrawn from the Søstrene Grene business as of March 31, 2021.

 Sales at directly-managed shops and wholesale business significantly increased throughthe acquisition of 100-Yen shop operators OFR and NPN. The domestic 100-Yen shop
sales to total sales increased by 1.8 percentage points.

3

Financial
Overview

Quarterly Changes in Gross Margin

Sales

Gross profit(Millions of yen)

Gross margin

14,78012,693

12,925

13,726
12,354

12,729

38.4%

39.1%

Due to the continuous improvement incost of sales ratio at 100-Yen shop
business and the decreased overseas
wholesales with low gross margin

4,913

4,968

4,892

21/8
1Q

21/8
2Q

21/8
3Q

39.2%

38.6%

38.4%

4,851

21/8
4Q

14,871Gross margin excluding
OFR and NPN

39.3%

39.3%
38.7%

14,969

5,303

22/8
1Q

38.0%

38.2%

39.1%

38.0%

5,610

5,723

5,644

22/8
2Q

22/8
3Q

22/8
4Q
4

Financial
Overview(Millions of yen)

Factors for Changes in Operating Profit

Increase ingross profit

Increase in
rent

1,154

Increase in personnel
expenses due toincreased employees
through M&A

Increase inpersonnel
expenses

2,655

1,130

Sales increased by 15.1% YoY andgross margin decreased by 0.5ppt., withgross profit increasing by 13.5% YoY.

Operating profit
1,669

Increase in expenses including amortization of
goodwill through M&A, as well as replacement ofordering machines at the shops due tointroduction of the automated ordering systems
and increase in depreciation expenses.

Increase in outsourcing costs for shop
openings and renovations andincrease in inventory costs

Increase inequipment
cost

538

Increase inutility bill

179

Increase incommission
Increase/decrease
paid
in other expenses

150

173

Decreased by 671 million yen 59.8％ YoY 営業利益
998

Previous
period

前期

Operatingprofit998
Current
period当期

5

Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows(Millions of yen)

Consolidatedbalance sheet

FY8/22(Current period)

FY8/21

Pct. change Shareholders' equity ratio wasPct. change

Cash and deposits

6,169

Down 6.4%

6,687

Up 8.4%Merchandise and finished goods

7,431

Up 4.5％

8,734

Up 17.5％

Other current assets

2,448

Down 9.6％

3,139

Up 28.2％

Tangible fixed assets

1,552

Down 3.5％

2,155

Up 38.9％

Other fixed assets

3,739

Up 6.2％

4,883

Up 30.6％

Total assets

21,340

Down 0.9％

25,600Up 20.0％

Liabilities

10,118Down 8.5％

13,669Up 35.1％

Net assets

11,222Up 7.1%

11,931

Up 6.3%

46.6%, decreased by 5.9
percentage points from the end of
the previous period.
In other current assets, goodwill
increased by 526 million yen andguarantee deposits increased by
475 million yen, mainly due theacquisition of OFR.
In liabilities, long-term loans
payable increased by 1,915 million
yen, mainly due to the assumptionof loans payable through M&A.

(Millions of yen)

Consolidated cash flows

FY8/22(Current period)

FY8/21
ChangeNet 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

 Cash flows from investing activities:

Change

378

△543

1,721

1,343

△778

△252

△975

△196

△51

△158

△328

△276

30

16

101

70

6,169

△422

6,687

518

△400

△796

746

1,146



Increase of 1,559 million yen innotes and accounts payable-tradedue to net increase from M&A, etc.
Cash flows from investing activities:
increase of 485 million yen in
payments for lease and guarantee
deposits, mainly due to changes incontractors as a result of M&A.

6

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2022

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2022

P8 – P15

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2023 andEfforts toward Each Business

P17 – P22

Reference

P24 – P30
7

By Business

Topics by Business

Domestic 100-Yen Shop BusinessOpening/closing

Opened 193 shops against the full-year plan of 230 shops and closed 61
shops against 86 shops. The number of shops at the end of the period was➡P10
1,641.

Watts brand shops

Increased by 204 shops to 1,029 shops through openings and renovations.
The share to total number of 100-Yen shops was 62.7%.

M&A

Made OFR a subsidiary as of October 1, 2021. Completed the post-merger
integration process in September 2022.

➡P12

Overseas Business
Overseas shops

The number of shops that are selling WATTS products was 55 (down 14
from the end of the previous fiscal year), and about 90 shops including local➡P13
partners’ shops.

Domestic Other Business
Buona Vita

A life-style goods shop offering comfortable and joyful life. The number ofshops was 23, mainly opening consignment shops in our 100-Yen shop.

RealCommunity-based discount shop. Operates 6 shops at the end of August2022. Aim to create synergies with 100-Yen shop business.

➡P14
➡P15
8

Situation of 100-Yen Shop Business ①

By Business― Changes in same-store sales YoY ―115.0%
FY8/22 (Current period)

FY8/21 (Previous period)

110.0%
105.3%
105.0%
100.0%
95.0%

97.5%
96.7%

103.2%

103.6%
102.6%
97.1%

95.6%

95.8%

98.6%

88.5%
Sep

Pct. changeof same-store
sales

Previous
period (A)Current
period (B)

A+B

98.8%

99.3%

100.3%
99.7%

Oct

Nov

Dec

Jan

Feb

91.3%
Mar

87.2%
89.7%
Apr

99.7%

97.6%

95.2%

90.0%
85.0%

Rebound from the previous
year's special demand forhygiene products, etc. due tothe spread of COVID-19

May

93.9%

93.5%

Jul

Aug

91.0%
Jun

Sep

Oct

Nov

Dec

Jan

 Sales were 97.9% YoY, number of

-3.3％

+5.3％

+3.2％

+3.6％

+2.6％

-2.5％

-1.4％

-4.4％

-4.8％

-2.9％

-5.8% +3.9%

-1.2%

-1.2%

-0.3%

customers was 96.5%, and spending
per customers was 100.3%.
 Sales of Watts brand shops were
99.5% YoY.

* Since the September-January period of the previous fiscal year was significantly impacted by
the stay-at-home demand, we present the sum of the percentage change between the previous
fiscal year and the current fiscal year as the growth rate excluding the impact of the reactionary
decline.

9By Business

Situation of 100-Yen Shop Business ②―Number of shops (opening/closing plan and results) ―Opening
Closing
No. of shops at the end of period

Opening/closing plan and results

1,641 1,653

1,364
1,192

230

1,240

Opening plan
230 shops→ Opened 193 shops

Closing plan
86 shops→ Closed 61 shops

193
165

129
111

 Despite the slower-than-planned new shop

80

81
41

19/8

20/8

21/8

61

86

22/8

22/8

(Result)(Plan)

openings, the number of shop closures was alsoless than expected, resulting in a net increase of
277 shops compared to the plan of 289 shops (netincrease includes 145 shops of OFR acquired on
October 1, 2021).

 Of the total 1,641 shops, 1,029 are Watts brandshops (net increase of 204 shops).
10

By Business

Situation of 100-Yen Shop Business ③―Number of shops introduced higher price products and its sales mix―
Consignment-type (number of shops introduced)
Total number of shops introduced
Ratio of higher price products

160 0

8.0%
8.0%

7.0%

140 0

5.9%

120 0

6.3%

6.9%

7.2%
6.7%

6.4%

100 0

3.8%

800

2.9%
600

519

4.2%
556

585

672

714

784

7.0%

826

893

6.8% 1,098

1,123
6.0%

907

5.0%

4.0%

3.0%

483

400

2.0%

200
1.0%

0

0.0%

20/8

20/8

20/8

20/8

21/8

21/8

21/8

21/8

22/8

22/8

22/8

22/8

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

*Including OFR stores since FY8/22 3Q

 Continue to introduce more higher-priced products and expand lineups toachieve a 20.0% sales composition ratio of these products.
11

By Business

Situation of 100-Yen Shop Business ➃-Integration with OFR

 As of October 1, 2021, we acquired OFR, which operates 100-Yen shop "FLET'S" and"Hyakuen Ryojikan" etc., and made them into subsidiaries.

 As we have completed the integration of product master file, management operations,personnel systems, and store operations, etc., in September 2022 we absorbed OFR
into Watts East Japan Sales Co., Ltd. and Watts West Japan Sales Co., Ltd.

 Create and strengthen a stand-alone shop format in the 100-Yen shop business.
 Although we have not yet completed the integration of food ordering and POS registersystems, we intend to complete the integration along with automated ordering system
during FY8/23.

12

By Business Situation of Overseas BusinessDirectly-managed sales(Millions of yen)
300 0

2,715
2,297

250 0

1,881

200 0

2,476

1,756

1,616

1,505

1,714

1,371

Wholesale sales

1,428Country

FormatThailandClosing

FC

ー

4

37

China

FC

－

ー

4

Malaysia

FC

－

2

ー

Vietnam

FC

－

3

ー

Directlymanaged

1

6

14

1

15

55

150 0

1,058

1,174
1,311

100 0

1,231

681
500

377

707

925

1,098

762

444

1,123

274

304

21/8

22/8

No. ofshops(FY8/22)

Opening

Peru

0

15/8

16/8

17/8

18/8

19/8

20/8

Total

 In Thailand, there are 37 shops (down 4 YoY).
There are 11 Watts brand shops through new
openings and renovations.

 In Peru, we are able to make profits as a result of
closing unprofitable shops due to the impact of
COVID-19.
KOMONOYA San Felipe Shop (Peru)13

By Business

Situation of “Buona Vita”

Opening
Closing
No. of shops at the end of period

20

21

21

27

23

Buona Vita Grand Emio Tokorozawa (Saitama)

6

5
3
2
19/8

3
4
20/8

5
21/8

 23 shops as of the end of August 2022.
Operate 6 consignment shops in our 100-Yen
shop.

 Same-store sales were 104.2% YoY, showing

3 1
22/8
(Result)

22/8(Plan)

a strong performance since the customer
traffic recovered to the pre-COVID level.
14

By Business

Situation of “Real" and “Tokino:ne”

 Offer a wide range of value-for-money
products with utilizing their strength inprocurement capability.

 Operating collaborative shops with theCompany’s 100-Yen shops to createsynergies with 100-Yen shop business.

 Operate 6 shops at the end of August2022 (5 tenant shops and 1 consignmentshop).

 Household items shop “Tokino:ne”.
The concept is “Create a pleasant metime”.
 In March 2022, we opened the second
shop at AEON mall in Chiba City, Chiba
Prefecture.
 The layout is divided into zones formorning, noon, evening, and night. It
offers a collection of products necessaryfor each time zone, allowing customers toenjoy shopping while imagining their own
routines.
15

Contents
Operating Results for the Fiscal Year
Ended August 2022

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2022

P8 – P15

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2023 andEfforts toward Each Business

P17 – P22

Financial
Overview

Reference

P24 – P30
16

Business Plan

Business Forecasts for FY8/23(Millions of yen)
FY8/21Business
forecasts

FY8/22

Ratio tosales

Ratio to
sales

YoY

FY8/23 (Forecast)
Ratio to
sales

YoY

YoY

Sales

50,702－96.0％

58,347－115.1％

60,500－103.7％

Gross profit

19,625

38.7％

97.1％

36,06638.2％

113.5％

－

－

－

SG&A

17,956

35.4％

97.3％

21,28236.5％

118.4％－－－EBITDA

2,049

4.0％

93.8％

1,690

2.9％

82.4％

1,744

2.9％

103.2％

Operating profit

1,669

3.3％

94.4％

998

1.7％

59.8％

920

1.5％

92.1％

Recurring profit

1,586

3.1％

91.7％

1,148

2.0％

72.4％

850

1.4％

74.0％

965

1.9％

124.7％

781

1.3％

80.9％

530

0.9％

67.8％

Net income attributable toowners of parent
Net income per share (yen)

72.09

－

57.83

－

39.04

－

ROE

8.9％

－

6.7%

－

4.4％

ー

 100-Yen shop opening/closing plan

【Opening】1H: 107, 2H: 129, Total: 236【Closing】 1H: 62, 2H: 28, Total: 90
Net increase: 146 shops

 100-Yen shop same-store sales are expected tobe 100.0% YoY for the full-year.

 Operating profit is expected to be 92.1% YoY, as weplan to renovate existing shops, including FLETS
shops, and introduce self-checkout systems for laborsaving.
In FY8/22, foreign exchange gains and tax savings
from the merger had a significant impact on our
performance, so recurring profit and net income
attributable to owners of parent are expected tosignificantly decrease in the next fiscal year.

17Business Plan

Growth vision with the trinity of our businessContinue to pursue
Structure to Sell
Better Products at
Lower Prices

Develop 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

18

Business Plan

Initiatives for the 100-Yen Shop Business ①

Offerhigher price products
高商品の取扱い
 Increase the number of higher price products (price ranges
other than 100 yen) to enhance the product lineups andrevitalize sales floors.
 Actively introduce to consignment-type shops, leading to an
improvement in gross margin for the entire group.
 Plan to reach 20.0% of sales composition ratio in FY8/23 with4,000 lineups.

Intra-group collaboration
 Work to create synergies among Groupbusinesses with collaborative shops with thediscount shop "Real" and the lifestyle products
business “Buona Vita”, etc.

19Business Plan

Initiatives for the 100-Yen Shop Business ②

Self-checkout POS register As of the end of August 2022, 58 self-checkout POS registers
for cashless payments are in operation. Promote theintroduction of full function self-checkout machines that accept
cash payments.
 Improve in-store productivity through more efficient purchaseprocess and labor saving; use spare resources to improvecustomer satisfaction.
 Reduce waiting time to minimize peak-time queue(Reduce opportunity losses)
 To prevent the spread of COVID-19 for both customers andemployees through contactless payment
Full use of POS data Reduce slow moving products and replace them with popular and new
products to increase the freshness of products of sales floors
 Based on sales analysis utilizing POS data, create store models that suit
the shop location and customer characteristics.
 The automatic ordering system has been introduced to more than 450
shops, mainly tenant-type shops. Improve the accuracy of automaticordering and introduce it to former OFR shops.

20

Business Plan

Initiatives for the 100-Yen Shop Business ③

Reopened online shop

Social Media・Watts official YouTube channel

 The product lineup is more than 13,000
items, and orders can be placed from one unit.
 Opened a dedicated page for bulk purchases.
 Handling a wide-range of products of Watts
Group brands as well as 100-Yen shop
products.

 Use as a tool to raise brand awareness21

Business Plan

Initiatives for Overseas and Other Businesses【Overseas Business】
 Increase Japanese products Increase customer numbers by strengthening promotions
 Cultivate new markets and further develop existing markets
 Conduct structural reform of Thai business and improve theperformance of Peru business【Buona Vita】
 Plan to open 4 new shops
 Same-store sales: 102.0% YoY
 Increase the number of shops introducing low-priced makeup
products【Real】
 Plan to open 1 new shop (Switch from Watts directly managed shop) Same-store sales: 100.0% YoY
 Establish a system that can be expected to generate synergies withthe 100-Yen shop business【Nippan】
 Send catalogues and direct mail brochures for each company
 Introduce a credit card payment system to the online shop
22

Contents
Operating Results for the Fiscal Year
Ended August 2022

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2022

P8 – P15

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2023 andEfforts toward Each Business

P17 – P22

Financial
Overview

Reference

About Watts GroupP24 – P30
23

Reference

Brands of Watts Group

Domestic 100-Yen shop business

Overseasbusiness

Other domestic
business24

Reference

Overview of Other Businesses“Buona Vita,” a variety store
which proposes a
comfortable life. Operates
23 shops as of the end of
August 2022.

Tokino:ne, a household items
shop under the theme of“time”, opened its second
shop in March 2022

Community-based
small discount shop.
Operate 6 shops as ofthe end of August 2022
Collaboration shop between
100-Yen shop and grocery

25Reference

Company Profile

Establishment
Meaning of the Company’s nameFebruary 22, 1995 (Currently the 29th business term)
Derived from “Wa! tto ikou”(Japanese catch cry to “go forth energetically”)

Market listing

Tokyo Stock Exchange Prime 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)
3,593 employees (as of August 31, 2022) *Part-time workers included
1,728 shops (as of August 31, 2022) *Other shops included
26

Reference

Corporate History
 2022 Transition to the Prime Market

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,
Osaka-shi, as a successor of
Hisamatsu Co., Ltd.

1998
Exceeded 100 shops
for 4 years
after establishment

1995
Established2002¥10b in sales
Went OTC

FY8/22
Sales¥58.3bn

No. ofshops

1,728 shops

Consolidated sales
No. of Group shops at the end of period27Reference

Shareholder Composition
Individual and others

Other companies

24.60%

54.49%

FY8/210.08%

12.98%
4.25%

3.58%
0.21%

62.43%

FY8/2224.71%

9.47%
0.83%

Total number ofshares issued
Number ofshareholders

FY8/20FY8/21

FY8/22

YoY

13,958,800

13,958,800

13,898,800

sharessharesshares△60,000

23,454

22,29023,447+1,1572.32%

 Total number of sharesissued decreased by
60,000 due to thecancellation of treasury
stock.

 Treasury stock was
Individuals and others
Other domestic
companies
Foreign companies
and others
Financial institutions
Securities companies
Treasury stock

52.77%
24.60%

54.49%
24.60%

62.43%
24.71%+7.94P+0.11P

4.43%
12.88%
1.71%
3.58%

4.25%
12.98%
0.08%
3.58%

0.83%
9.47%
0.21%
2.32%

△3.42P△3.51P+0.13P△1.26P(Note) The figures are rounded to the third decimal place and may not add up to 100% when adding the ratios of each section.

allocated to Watts Group
executives andemployees as restricted
stock compensation,
resulting in a 1.26ppt.
decrease in treasury
stock ownership.
28

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

38.4%
30.5%
26.0%

7.5％
1.9%

¥15.00FY8/20FY8/20FY8/21

FY8/23(forecasts
FY8/22)

Net income per share (Yen)¥57.80¥72.09¥57.83¥39.04

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

Dividend payout ratio

26.0％

30.5％

25.9％

38.4％

Dividend yield

1.6％

2.5％

2.1％

2.1％

ROE (Return on Equity)

7.5％

8.9％

6.7％

4.4％

DOE (Dividend on Equity)

1.9％

2.7％

1.7％

1.7％

25.9%

8.9％
2.7％

¥22.00FY8/21

6.7％
1.7%

4.4％
1.7％

¥15.00¥15.00FY8/22

FY8/23(Forecast)*Dividend payout ratio for each fiscal year is calculated based on the stock
price of accounting date.
(Payout ratio for FY8/23 is calculated based on the stock price on August 31,
2022.)

29

Reference

Shareholder Benefit Program

Number of shares held

Outline of benefits

200 shares or more

Shareholder gift certificates available at our online shop:
worth 2,200 yen (tax included)

 To meet the needs of shareholders who want to freely select the benefit, we present
shareholder gift certificates available at our online shop.
*The benefits outlined above are for FY8/22.
*This benefit is available for all products in our online shop.
*We will ship the products at our costs.
*The shareholder gift certificates are available only at our online shop, not at our physical shops.
30

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 ： 06-4792-3236