Watts Co., Ltd.

(2735; Tokyo Stock Exchange First Section)

Operating Results for the Six Months of
the Fiscal Year Ending August 2021 andProgress of the Full-Year Plan
April 15, 2021 (Thursday)
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
the Fiscal Year Ending August 2021

P2 – P6

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2021

P8 – P15

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

Reference

P17 – P22

P24 – P31
1

Financial
Overview

Consolidated Operating Results for the Six Months of
the Fiscal Year Ending August 2021

Financial highlights(Millions of yen)
FY8/21 2Q (Current period)

FY8/20 2Q
Ratio to sales

Ratio to sales

YoY

Ratio toforecast

25,982
9,900

－
38.1％

25,618
9,881

－
38.6％

98.6％
99.8％

101.1％
－

9,114

35.1％

8,796

34.3％

96.5％

－

994
786
783

3.8％
3.0％
3.0％

1,244
1,085
1,066

4.9％
4.2％
4.2％

125.1％
138.0％
136.2％－
141.0％
142.3％Net income attributable to owners ofparent

420

1.6％

800

3.1％

190.2％

129.1％Net income per share (Yen)

31.39

－

－

Sales
Gross profit
Selling, general and administrative
expenses
EBITDA
Operating profit
Recurring profit

59.72*Comparison with the business forecasts for FY8/21 2Q announced on January 12, 2021 in "Notice Concerning Revision to Business Forecast" Sales decreased by 1.4% YoY mainly due to the impact of COVID-19 on overseas business.
➡P3
 Gross profit remained at the same level as the previous fiscal year, since gross margin improved by
0.5 percentage points, compensating for the sales decline.
 Operating profit significantly increased at 138.0% YoY, owing to progress in withdrawal from
unprofitable businesses and reduction of expenses for new shop openings and renovations.
 Net income attributable to owners of parent increased at 190.2% YoY due to a gain on debt
exemption of consolidated subsidiary Hilmer Japan Co., Ltd.

➡P4
➡P5

2

Financial
Overview

Sales by Business Type(Millions of yen)

Sales by Business Type

100-Yen shops

Ratio to sales

Ratio to sales

YoY

21,967

84.5％

22,11986.3％

100.7％

Wholesale, Other

1,056

4.1％

883

3.4％

83.6％

23,024

88.6％

23,003

89.8％

99.9％

Directly managed

329

1.3％

145

0.6％

44.0％

Wholesale

828

3.2％

712

2.8％

86.0％

1,158

4.5％

857

3.3％

74.0％

537

2.1％

499

1.9％

92.9％

1,262

4.9％

1,258

4.9％

99.7％

25,982100.0％

25,618100.0％

98.6％

SubtotalLifestyle products
business

FY8/21 2Q (Current period)

Directly managed

Subtotal

Overseas
Business

FY8/20 2Q

Buona Vita
Søstrene Grene

Real, etc.

Total

 Sales in the domestic 100-Yen shop business remained at the same level as the previous fiscal year.
This is attributable to the fact that sales from directly-managed shops increased by 0.7% YoY, butwholesale and other sales decreased. On the other hand, due to the impact of the spread of COVID-19,
sales especially in overseas business declined. As a result, the ratio of domestic 100-Yen shop businessto the consolidated sales increased by 1.2 percentage points.

3

Financial
Overview

Quarterly Changes in Gross Margin(Millions of yen)

Sales

Gross profit

12,731 12,916 12,974 12,775 12,703

13,278 13,628 13,185

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

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

38.0%

37.7%

37.6%
37.4%

38.5%

37.9%

37.4%

4,761

4,833

4,882

19/8
1Q

19/8
2Q

19/8
3Q

Gross margin

4,859

19/8
4Q

4,794

20/8
1Q

12,693 12,925

39.0%

38.7%

38.4%
Due to the slow down in directlymanaged overseas shops andlifestyle products shops

5,105

5,171

5,143

4,913

4,968

20/8
2Q

20/8
3Q

20/8
4Q

21/8
1Q

21/8
2Q
4

Financial
Overview

Factors for Changes in Operating Profit(Millions of yen)
Gross profit remained at the same level asin the previous fiscal year since sales
decreased by 1.4% and gross margin
improved by 0.5 percentage points.

Due to a decrease of large
cost renovations

Amount ofAmount ofdecrease inutility billdecrease in
Amount ofequipment cost
increase inpersonnel
Amount ofAmount ofdecrease in decrease in rent expenses
gross profit

39

161

18
Operatingprofit786

59

10

Decreased due to closure of someshops, etc. as a result of withdrawal
from the Søstrene Grene businessAmount ofdecrease intravelexpenses

36

Amount ofdecrease in Increase/decre
commission ase in otherexpenses
paid

12

18

Decreased due to voluntary
restraint on domestic andoverseas business trips andcommuting

Reduction of utility bill byswitching to LED lighting, etc.

Operatingprofit1,085

Increased by 299 million yen 138.0％ YoYPrevious
periodCurrent
period5

Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows(Millions of yen)

Consolidatedbalance sheet

FY8/21(Current period)

FY8/20Pct. change

Pct. change

Cash and deposits

6,591

Up 8.5%

7,586

Up 15.1%

Merchandise and finished goods

7,114

Up 0.5％

7,317

Up 2.9％Other current assets

2,710 Down 7.9％

2,535 Down 6.4％

Tangible fixed assets

1,608 Down 9.7％

1,653

Up 2.8％Other fixed assets

3,519 Down 4.3％

3,692

Up 4.9％Total assets

21,544 Down 0.1％

22,785Up 5.8％

Liabilities

11,062 Down 5.4％

11,738Up 6.1％

Net assets

10,481

11,046

Up 5.4%Up 6.2%(Millions of yen)

Consolidated cash flows

Free cash flows

Change

842

+465

1,802

+959

△317

+186

△409

△92

△36

+149

△392

△356

15

+13

△4

△19

6,578

+1,743

7,586+1,007

524

+651

1,392

+867

48.5%, down by 0.2 percentage
points from the end of the previous
period.
In other current assets, notes andaccounts receivable-tradedecreased by 129 million yen.
In liabilities, electronically recorded
obligations increased by 577 million
yen, and notes and accounts
payable-trade increased by 467
million yen.

 In the cash flows from operating

FY8/21 2Q(Current period)

FY8/20 2Q

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
period Shareholders' equity ratio wasactivities, notes and accounts
payable-trade increased by 913
million yen, mainly due to the last
day of the second quarter being aholiday.
In the cash flows from financing
activities, proceeds from long-termloans payable decreased by 400
million yen.

6

Contents
Financial
Overview

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2021

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2021

P8 – P15

Business Plan

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

P17 – P22

Reference

P24 – P31
7

By Business

Topics by Business

Domestic 100-Yen Shop BusinessOpening/closing

Opened 74 shops against the full-year plan of 144 shops and closed 21
shops against 89 shops. The number of shops at the end of the period was➡P10
1,293 (net increase of 53 shops)

Watts brand shops

Increased by 76 shops to 715 shops due to openings and renovations. The
share to total number of 100-Yen shops increased to 55.3%

Overseas Business
Overseas shops

The number of shops that are selling WATTS products was 80 (down 3 fromthe end of the previous fiscal year), and more than 120 shops including local➡P13
partners’ shops.

Domestic Other Business
Buona Vita

A life-style goods shop offering comfortable life. The number of shops at theend of period was 19 (down 2 from the end of the previous fiscal year).
➡P14
Launched a sales promotion using LINE official accounts.

Søstrene Grene

Denmark’s life-style goods shop. Decided to withdraw from this businessafter determining that it would be difficult to early achieve profitability on abusiness basis. All shops were closed at the end of March 2021.

AMANO

Community-based discount shop. Operates 6 shops at the end of February
2021. Aim to create synergies with 100-Yen shop business.

➡P15
8

By Business

Situation of 100-Yen Shop Business①― Changes in Same-store sales YoY ―125.0%

FY8/21 (Current period)

FY8/20 (Previous period)

120.0%
115.0%

116.0%

117.0%

Reactionary fall due to rush
demand prior to the consumption
tax hike in the previous year

116.0%
110.0%

108.9%

110.0%

106.2%

104.7%

103.2% 103.6%

105.0%

105.3%

100.0%
95.0%

100.4%
96.7%

Reactionary fall as demand forhygiene products significantly
increased in the previous fiscal
year due to COVID-19

96.6%
88.5%

Sep

Oct

Nov

105.0%

100.2%

90.0%
85.0%

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

102.8%
102.6%

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

※ [YoY changes in 1H figures] Sales: 99.8%, Number of customers: 95.3%, Spending per customer: 103.0%
Pct. change
of Same-store

Sep

Oct

Nov

Dec

Jan

Feb

Previous
period (A)Current
period (B)

+4.7％

-3.4％

+0.4％

+0.2％

+2.8％

+17.0％

-3.3％

+5.3％

+3.2％

+3.6％

+2.6％

-11.5％

A+B

+1.4%

+1.9%

+3.6%

+3.8%

+5.4%

+5.5%

 If we assume that “YoY change in previous fiscal

year + YoY change in current fiscal year = therate of growth excluding the effect of thereactionary change from the previous fiscal
year," it can be said that the same-store sales
have been continuing to grow.
Sales of Watts brand shops were 101.9% 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

1,240
1,161

1,293

Opening/closing plan and results

1,264

1,295

1,192

Opening plan → Opened 74 shops
of 2Q(Full-year progress rate: 51.4％)
77 shops
144

141
129

Closing planof 2Q
53 shops

111

67

 Since supermarkets and malls, etc. where
89

81
53

21
18/8

19/8

20/8

(Full-year progress rate: 23.6％)

77

74

80

→ Closed 21 shops

21/8 2Q

21/8 2Q
21/8(Forecast) (Forecast)

our shops are located performed well, thenumber of unpredictable closing of tenanttype shops was less than usual.
Net increase of 53 shops against the planof 24 shops.

 Of the total 1,293 shops, 715 are Watts
brand shops (net increase of 76 shops).
10

By Business

Situation of 100-Yen Shop Business③- Changes in the number of shops introducing higher price products and its sales share -Consignment-type (number of shops introduced)
Tenant-type (number of shops introduced)
Ratio of higher price products

100 0

900

800

700

Number of
items

FY2/20FY2/21

Number ofchanges

1,118

1,356

+238

7.5%

6.3%

6.4%
6.5%

5.9%
5.5%

600

4.5%

500

4.2%
3.8%

400

3.5%

2.9%

300

2.5%

2.3%

200

100

0.7%

1.0%

1.5%

1.4%

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

21/8
1Q

21/8
2Q

 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 2 times YoY.
11

By Business

180 0

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

Directly-managed sales

Wholesale sales

160 0

140 0

120 0

966

1,298

1,340

771

962

1,158

1,083

857

100 0

623

800

600

419

645

828

712

400

200

169

226

270

187

149

14/8
1H

15/8
1H

320

526

459

377

329

19/8
1H

20/8
1H

145

0

13/8
1H

16/8
1H

17/8
1H

18/8
1H

21/8
1H

 Directly-managed shops gain foothold while focusing
on wholesale sales to neighbor countries(collaboration with local partners).
 Currently in the black despite a decrease in sales due
to COVID-19.

Overseasbusiness

FY8/20 1H

FY8/21 1H

YoY

Sales

1,158
million yen

857
million yen

74.0％

December 2020 San Felipe Shop (Peru)

12

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

80

80

72

Country

FormatThailandNo. ofshops(21/2)

Opening

Closing

FC

ー

２

48

China

FC

－

－

6

Malaysia

FC

－

－

2

Vietnam

FC

－

1

4

Directlymanaged

1

1

20

1

4

80

Peru

Total

 In Thailand, there are 48 shops (down 2 fromthe end of the previous fiscal year).
12 "Watts" brand shops opened through new
openings and renovations.

 Sales subsidiary in China was sold to
22
18

6

14

12
6
18/8

9

19

19/8

 There are about 40 fixed-price shops with

1 4
20/8

21/2
(Result)

Chinese company in April 2020. Aiming to
expand business through distributors andwholesalers.

21/8(Forecast)sales floors consisting of the Company’s
products which include 18 shops in Myanmar,
6 shops in Mongolia and other countries.

13

By Business Situation of “Buona Vita”

Opening
Closing
No. of shops at the end of period

21

20

21
19
14
9

4
3

3
2
18/8

19/8

4

4
20/8

2
2
21/2
(Result)

21/8(Forecast)

September 2020 Buona Vita Grand Emio Tokorozawa(Saitama) Operate 19 shops as of the end of February 2021
 Same-store sales remained sluggish at 81.0% YoY
due to the impact of COVID-19, despite a review ofthe product mix for each store characteristic and thespecial discount services for LINE (the most popularmessaging app. in Japan) friends, along with events
at shops are located in.
14

By Business

Situation of “Real"

Opening
Closing
No. of shops at the end of period

7
6

6

6

 Offer a wide range of value-for-money

4
Acquired shares of Real Co.,
Ltd. in April and made it into a
consolidated subsidiary

1

2
18/8

19/8

20/8

21/2

21/8
(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 February
2021 (5 tenant shops and 1 consignmentshop).
15

Contents
Financial
Overview

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2021

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2021

P8 – P15

Business Plan

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

P17 – P22

Reference

P24 – P31
16

Business Plan

Revision to Business Forecasts for FY8/21(Millions of yen)

Business
forecasts

FY8/21(Previous forecasts)

FY8/20 (Result)
Ratio tosales

FY8/21 (Revised forecasts)

Ratio tosales

Ratio tosales

Increase /decrease

Pct.
changeSales

52,795－50,960ー

50,960－－－Operating profit

1,768

3.4％

1,090

2.1％

1,850

3.6％

760

69.7％

Recurring profit

1,731

3.3％

1,040

2.0％

1,780

3.5％

740

71.2％

774

1.5％

740

1.5％

1,150

2.3％

410

55.4％

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

57.80

55.23

85.83

－

100-Yen shop business Same-store sales are trending above expectations, and the number of closing of shops is significantly below
the plan. However, full-year sales are expected to be in line with the plan as the number of opening of
tenant-type shops is expected to fall short of the plan. Profits are expected to exceed the initial plan since
SG&A expenses have been significantly below expectations.

Overseas business Sales were above expectations in 1Q, but its pace of recovery has slowed since 2Q. As such, full-year sales
are expected to be in line with the plan.

Lifestyle products business Søstrene Grene, which is in the process of withdrawing from the business, is expected to incur minimal
additional cost for 2H. On the other hand, sales of Buona Vita have fallen short of the plan, and theCompany has revised its full-year forecasts downward.

17

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

18

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 1,356 items as of the end of February. Aiming for the
introduction of 2,000 items as of the end of August 2021.

Intra-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 slow moving products and replace them with popular and new products to increase the freshness of
products of sales 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.

19

Business Plan

Initiatives for the 100-Yen Shop Business②
E-commerce site

Owned media

 Mainly offer SNS-listed products and Watts Selectbrand products, Number of handled items areapproximately 1,000.

 Launched our own website to communicate
with customers

 Average spending per customer approximately 4times that of physical shops.

 Post about 20 articles per month Some products may not be much sold in thephysical shops but are hot sellers at the online
store, which helps to appeal products tocustomers.

 By linking to other SNS, we can expect tospread our information to more customers.

 Send out product and shop information

20

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 5 new shops (tenant-type: 1, collaboration with our 100-Yen shop:
4) 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

21

Business Plan

Launched a new brand “Tokino:ne”

 Household items shop “Tokino:ne”. The concept is “Create a pleasant me-time”.
 Opened the first shop in Kobe City, Hyogo Prefecture, on March 26, 2021.
 Offer products that help you enjoy your day from morning till night: waking up in
the morning, getting ready to go, going to work or shopping, coming home,having dinner, taking a bath, and going to bed.
 The layout is divided into zones for morning, noon, evening, and night. It offers acollection of products necessary for each time zone, allowing customers to enjoy
shopping while imagining their own routines.

22

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
the Fiscal Year Ending August 2021

P2 – P6

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2021

P8 – P15

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

Reference

About Watts GroupP17 – P22

P24 – P31
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
19 shops as of the end of
February 2021. The photo is
Shin-Koshigaya Varie Shop
which opened in February
2020

Tokino:ne, a household
items shop under the themeof “time”, opened its first
shop in March 2021

Community-based small
discount shop. Operates
6 shops as of the end of
February 2021.
Collaboration shop between 100Yen shop and grocery

25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 deliver therecommended products of our 100Yen Shops. Providing attractive
information to get more followers

 The number of Instagram
followers has exceeded 130,000 Opened Watts official YouTube
channel on February 22, 2021

LINE@ is also available at several shops, which users
can get information when you become friend.
*LINE is the most popular messaging app. in Japan26

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 February 28, 2021)

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)
3,133 employees (as of February 28, 2021) *Part-time workers included
1,401 shops (as of February 28, 2021) *Other shops included27

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 period28Reference

Shareholder Composition
Individual and others
Financial institutions

Other companies
Securities companies

Foreign companies and others
Treasury stock

1.32%
FY8/202Q

24.58%

47.33%

8.76%

14.39%
3.58%
2.51%

FY8/21
2Q

50.82%

24.58%

6.30% 15.77%
3.58%

Total number ofshares issued

Number ofshareholders

FY8/192Q
13,958,800

FY8/202Q
13,958,800

FY8/21
2Q
13,958,800

sharessharesshares

11,666

16,02917,71042.42%
24.55%

47.33%
24.58%

50.82%
24.58%

15.97%
12.58%
0.86%
3.58%

8.76%
14.39%
1.32%
3.58%

6.30%
15.77%
2.51%
3.58%

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

YoY－

 Number of shareholders
increased by 1,681 YoY.

+1,681  Ownership ratio of
individual shareholders
increased by 3.49
+3.49P
percentage points YoY.
－
△2.46P+1.38P+1.19P(Note) The figures are rounded to the third decimal place and may not add up to 100% when adding the ratios of each section.

ー29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）

FY8/18FY8/19FY8/20

Dividend payout ratio

190.1％

32.1%
26.0%

17.5%
7.5％

6.2％
2.0%

¥15.00
18/8

1.3%
0.7％

¥10.00
19/8

10.5％
1.8％

1.9%

¥15.00¥15.0020/8

21/8(Forecast)

FY8/21(Forecast)

Net income per share (Yen)

46.79

5.26

57.80

85.83

Dividend per share (Yen)

15.00

10.00

15.00

15.00

Dividend payout ratio

32.1％

190.1％

26.0％

17.5％

Dividend yield

1.6％

1.6％

1.6％

1.8％

ROE (Return on Equity)

6.2％

0.7％

7.5％

10.5％

DOE (Dividend on Equity)

2.0％

1.3％

1.9％

1.8％

*Dividend payout ratio for each fiscal year is calculated based on the stock price ofaccounting date.
(Payout ratio for FY8/21 is calculated based on the stock price as of February 26.)

30

Reference

Shareholder Benefit Program

Number of shares held andholding period
100 to 999 shares

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）

1,000 shares or moreA

Assorted products worth about 2,000 yen（B）

B※All images are for illustrative purposes only.

 We will plan more attractive benefits with reflecting your opinions and suggestions
31

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