Summary of Business Results for the Third Quarter Ended May 31, 2020
[Japan GAAP] (Consolidated)
July 10, 2020
Company
Stock Code
RepresentativeContactWatts Co., Ltd.

Listed on the TSE2735
URL: https://www.watts-jp.com/Fumio Hiraoka, President and CEO
Hidehito Mori,T E L: +81-6-4792-3280
Executive Managing Director, Head of Corporate Planning Office
Expected date of filing of quarterly report: July 10, 2020
Expected starting date of dividend payment: Preparation of quarterly supplementary financial document: None
Quarterly results briefing: None
（Rounded down to million yen）

１. Consolidated business results for the nine months ended May 2020
(September 1, 2019 through May 31, 2020)(1) Consolidated results of operations(% change from the previous corresponding period)

Sales
Nine months ended May 2020
Nine months ended May 2019
(Note) Comprehensive income

Operating profit

Million yen
39,61038,623%
2.6
4.9

Million yen
1,239554%
123.6-38.5

Net income attributable toowners of parent

Recurring profit
Million yen
1,208521%
131.5-43.5

Million yen
483
170%
183.1-73.1

Nine months ended May 2020: 443 million yen (506.2%)
Nine months ended May 2019: 73 million yen (-87.9%)
Net income
Diluted net income
per shareper shareYen
Yen
Nine months ended May 2020
36.08
Nine months ended May 201912.72-(2) Consolidated financial position
Total assets
Million yen
23,21921,557

As of May 2020
As of Aug. 2019

Shareholders’equity ratio

Net assets
Million yen
10,176
9,867

%
45.0
47.1

(Reference) Shareholders’ equity
As of May 2020: 10,459 million yen
As of August 2019: 10,150 million yen

2. Dividends
End of 1Q

End of 2Q
Yen-Year ended Aug. 2019Year ending Aug. 2020
Year ending Aug. 2020 (forecast)(Note) Revisions to dividend forecast for the current quarter: NoneYen
0.00
0.00

Annual dividend
End of 3Q
Yen-Year-endTotal

Yen
10.00

Yen
10.00

10.00

10.00

3．Forecast of consolidated business results for the fiscal year ending August 2020
(September 1, 2019 through August 31, 2020)
Sales

Operating profit(% change from the previous corresponding period)
Net income
Net income attributable toRecurring profit
owners of parent
per share
Million yen% Million yen%
Yen

Million yen% Million yen%
Year ending Aug.
52,3501.91,480106.4
1,430 118.0
580 721.8
2020(Note) Revisions to business forecast for the current quarter: Yes
For more information on the revisions to the consolidated business forecasts, please refer to the " Notice Concerning Revision toBusiness Forecasts" released on July 10, 2020.

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*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): Yes
Excluded: 1 (Shanghai Watts Trade And Sales Co., Ltd.)(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None(4) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
As of May 2020
13,958,800 shares
As of August 201913,958,800 shares② Treasury stock at the end of period
As of May 2020
560,874 sharesAs of August 2019
560,874 shares③ Average number of stock during period (quarterly cumulative period)
Nine months ended May 2020
13,397,926 shares
Nine months ended May 201913,426,431 shares(Note) The number of treasury stock at the end of period includes the Company’s shares held by the share issuance trust for
directors (FY8/20 3Q: 60,000 shares, FY8/19: 60,000 shares). In addition, the Company's shares owned by the shareissuance trust for directors are included in treasury stock deducted for calculation of the average number of shares during
period (FY8/20 3Q: 60,000 shares, FY8/19 3Q: 60,000 shares).

*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants
or auditing firms* Explanation regarding appropriate use of business forecasts and other special instructions(Caution concerning forward-looking statements)
The forward-looking statements regarding future performance in this material are based on information currently
available to the company and certain assumptions that the company deems to be reasonable at the time this report wasprepared. Therefore, the company does not make promises about the achievements. Actual results may differ
significantly from the forecasts due to various factors.

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