Watts Co., Ltd.

(2735; Tokyo Stock Exchange First Section)

Operating Results for the Six Months of
the Fiscal Year Ending August 2020 and
Progress of the Full-Year Plan
April 13, 2020 (Monday)
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
the Fiscal Year Ending August 2020

P2 – P6

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2020

P8 – P16

Business Forecasts for the Fiscal
Business Plan Year Ending August 2020 andEfforts toward Each Business

Reference

P18 – P24

P26 – P33
1

Financial
Overview

Consolidated Operating Results for the Six Months of
the Fiscal Year Ending August 2020
(Millions of yen)

Financial highlights

FY8/19 2Q

FY8/20 2Q (Current period)

Ratio to sales

Ratio to sales

YoY

Ratio toforecast

25,648－25,982－101.3％

101.9％

Gross profit

9,595

37.4％

9,900

38.1％

103.2％－

Selling, general and administrative
expenses

9,228

36.0％

9,114

35.1％

98.8％

－

EBITDA

577

2.3％

994

3.8％

172.3％－

Operating profit

366

1.4％

786

3.0％

214.5％

262.1％

Recurring profit

337

1.3％

783

3.0％

232.4％

252.6％Net income attributable to owners ofparent

103

0.4％

420

1.6％

406.6％

350.5％

－

－

Sales

Net income per share (Yen)

7.70

31.39

*Comparison with the business forecasts for FY8/20 2Q, which was announced in the Summary of Financial Results dated October 10, 2019.

 Sales increased by 1.3% YoY and by 1.9% to the plan, thanks to the strong performance of the 100-Yen
shop business, which offset the decline in sales due to withdrawal from the Amano business.

➡P3, P9

 Gross profit increased by 3.2%, as the gross profit margin improved by 0.7 percentage points. ➡P4
 Operating profit significantly increased at 214.5% YoY and at 262.1% to the 1H plan, due to fewer
large store openings compared to the same period of the previous fiscal year and the effect of cost-cutting
measures, in addition to the aforementioned factors.
➡P5
2

Financial
Overview

Sales by Business Type(Millions of yen)

Sales by Business Type

100-Yen shops

FY8/20 2Q (Current period)

Ratio to sales

Ratio to sales

YoY

Directly managed

21,104

82.3％

21,96784.5％

104.1％

Wholesale, Other

1,249

4.9％

1,056

4.1％

84.6％

22,35487.2％

23,02488.6％

103.0％

Directly managed

377

1.5％

329

1.3％

87.3％

Wholesale

962

3.8％

828

3.2％

86.0％

1,340

5.2％

1,158

4.5％

86.4％

839

3.3％

537

2.1％

64.0％

1,113

4.3％

1,262

4.9％

113.3％

25,648100.0%

25,982100.0％

101.3％

Subtotal

Overseas
Business

FY8/19 2Q

Subtotal
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 3.0% YoY, its ratio to theconsolidated sales increased by 1.4 percentage points.
3

Financial
Overview

Quarterly Changes in Gross Margin(Millions of yen)

11,849 12,047
38.8%
38.3%

Sales

Gross profit

Gross margin

12,925 12,654 12,731 12,916 12,974 12,775 12,703
In April 2018, the Company made Real Co., Ltd., which
operates discount shops, a consolidated subsidiary.
Gross margin at these shops is low, leading to a large
decrease in gross margin at the consolidated base.

38.5%
38.0%

37.5% 37.4%

4,539

4,672

4,850

18/8

18/8

18/8

1Q

2Q

3Q

13,278

37.6%

37.7%

37.4% 37.4%

5,105

4,761

4,833

4,882

4,859

4,794

18/8

19/8

19/8

19/8

19/8

20/8

20/8

4Q

1Q

2Q

3Q

4Q

1Q

2Q

4,735

4

Financial
Overview

Factors for Changes in Operating Profit(Millions of yen)
Sales increased by 1.3% and gross margin
improved by 0.7 percentage points,
resulting in a 3.2% increase in gross profit.

Amount ofincrease ingross profit

Amount ofincrease in
rent

30

Amount ofdecrease inpersonnel
expenses

21

Amount ofdecrease inequipment cost

Amount ofdecrease intransport cost

23

21

Amount ofdecrease inutility bill

19

Increase/decreasein other expenses

28

Reduction of electricity bill
due to switching to LED
lighting, etc.

305

Operatingprofit366

30

Amount ofdecrease incommission
paid

Decreased due to reduction of personnel
expenses through opening new shop
mainly consignment shops, and reductionof directors' remuneration due to thesignificant decrease in profit in theprevious fiscal year.

Transport cost decreased due to
optimization of product mix in the
Company’s warehouses to control
shipment volume.

Operatingprofit786

Increased by 419 million yen 214.5％ YoYPrevious
periodCurrent
period5

Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows(Millions of yen)

Consolidatedbalance sheet

FY8/20 2Q(Current period)

FY8/19

 Shareholders' equity ratio wasPct. change

Pct. change

Cash and deposits

6,075 Up 18.0%

6,578

Up 8.3%Merchandise and finished goods

7,081

Up 4.0％7,198

Up 1.7％

Other current assets

2,942

Up 11.2％

2,831

Down 3.8％

Tangible fixed assets

1,780

Up 1.2％

1,769

Down 0.6％

Other fixed assets

3,677

Up 2.7％3,853

Up 4.8％

Total assets

21,557Up 8.1％

22,230Up 3.1％

Liabilities

11,690Up 20.4％

12,077

Up 3.3％

Net assets

9,867

Down 3.6%

10,153Up 2.9%

46.9%, down by 0.2 percentage
points from the end of the previous
period.
In other current assets, deferred tax
assets increased by 186 million yen
due to the transfer of a Chinese
subsidiary and other factors
In liabilities, notes and accounts
payable-trade decreased by 384
million yen, while electronicallyrecorded obligations increased by
515 million yen and long-term debt
increased by 111 million yen.

(Millions of yen)

Consolidated cash flows

FY8/20 2Q(Current period)

FY8/19 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
periodFree cash flows

 In the cash flows from operating

Change

376

+32

842

+465

△503

△112

△317

+186

△186

+10

△36

+149

+1

+11

15

+13

4,835

△638

6,578

+1,743

△127

△79

524

+651



activities, income before income
taxes and minority interests
increased by 392 million yen.
In the cash flows from investing
activities, acquisition of property,
plant and equipment decreased by
125 million yen due to fewer large
shop openings compared with thesame period of the previous fiscal
year.

6

Contents
Financial
Overview

Operating Results for the Six Months of
the Fiscal Year Ending August 2020
P2 – P6

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2020

P8 – P16

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2020 andEfforts toward Each Business

P18 – P24

Reference

P26 – P33
7

By Business

Topics by Business

Domestic 100-Yen Shop BusinessOpening/closing

Opened 72 shops to the full-year plan of 140 shops and closed 40
Shops to the plan of 82 shops. The number of shops at the end of the➡P10
period was 1,224 (net increase of 32 shops)

Watts brand shops

Increased by 68 shops to 588 shops through openings and renovations.
The share to total number of 100-Yen shops increased to 48.0%➡P11

Overseas Business
Overseas shops

The number of shops that are selling WATTS products was 88 (unchanged),
and more than 130 shops including local partners’ shops.
➡P13

Domestic Other Business
Buona Vita

A life-style goods shop offering comfortable life. The number of shops at theend of period was 21. Focused on strengthening gift items to further develop
existing shops.
➡P14

Søstrene Grene

Denmark’s life-style goods shop. Operate 5 shops. Worked to improve
profitability by closing unprofitable shops and opening low-cost format shops.
➡P15

AMANO

Withdrew from this business as there is no prospect for improvementin profits.

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

➡P16

8

Situation of 100-Yen Shop Business①

By Business― Changes in Same-store sales YoY ―125.0%
FY8/20 (Current period)

FY8/19 (Previous period)

120.0%

117.0%
Increased demand for masks anddisinfection-related products due tothe spread of new coronavirus(COVID-19) infections.
(Number of customers: 110.8% YoY)

Rush demand prior to theconsumption tax hike (September)and its reactionary fall (October)

115.0%

110.0%
105.0%

104.7%
102.7%

102.8%
100.4% 100.2%

100.0%

101.4%

95.0%
90.0%

98.8%

99.2%

Nov

Dec

100.3%

101.1%

99.7%
97.7%

100.3%

98.1%

97.5%

101.0%

96.6%
Sep

1H total

Oct
Sales

No. ofcustomers

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Spending per
customer The effect of introducing products with prices otherthan 100 yen was evident, with spending per
customer increasing around 3% in every month.
 Sales of Watts brand shops were strong at 105.3%
YoY.

YoY

100.4％

99.6％

100.7％

Current period

103.5％

100.1％

103.2％*Sales of March 2020: 108.8%
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 1,224

Opening/closing plan and results

1,210

1,250

2Q
Opening plan → Opened 72 shops(Full-year progress rate: 51.4%)
72 shops

1,087

141

130

140

2Q
→ Closed 40 shops
Closing plan
(Full-year progress rate: 48.8%)
54 shops

111

72

71

67

18/8

 Breakdown of shop openings: 9 tenant
82

80

40
17/8

72

19/8

20/8 2Q

54

20/8 2Q
20/8(Forecast) (Forecast)

shops, 63 consignment shops. Total numberof shops was 72.
 Breakdown of shop closings: 14 tenant
shops, 24 consignment shops, and 2 FC
shops. Total number of shops was 40.
 Net increase of 32 shops. The number ofshops was 1,224 at the end of period.
10

By Business

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

OpeningRenovation

Closing

No. of shops at the end of period

479

588
520

419
352
257
20

184

10

11

16

20

15

78
50

 Increased by 68 shops from the end of the

6

63

70

58

55

52

November 2019 Watts Tennoji Apollo Shop (Osaka)

-1

-1

-3

-7

-10

-17

-12

17/8

17/8

18/8

18/8

19/8

19/8

20/8

2Q

4Q

2Q

4Q

2Q

4Q

2Q

previous fiscal year. The share to total number ofshops (1,224 shops) is 48.0%.
 To open shops mainly Watts brand; renovations
will be made by reviewing the possibility ofinvestment recovery.

11

By Business

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

1,298

140 0

120 0

966

1,340
1,158

1,083

100 0

771
800

Directly-managed sales

Wholesale sales

600

419
400

200

99

169

226
187

270
149

645

320

962

623

459

526

828

377

329

0

FY8/12

FY8/13

FY8/14

FY8/15

FY8/16

FY8/17

FY8/18FY8/19FY8/20

1H

1H

1H

1H

1H

1H

1H

1H

1H

 Directly-managed shops gain foothold while focusing on wholesale
sales to neighbor countries (collaboration with local partners).

 Despite an increase in wholesale sales to Vietnam and thePhilippines, sales were lower than the previous year's level, mainly
due to a decline in wholesale sales to Thailand.
Overseasbusiness

FY8/19 1H

FY8/20 1H

Sales

1,340 million yen

1,158 million yen

YoY
86.4％

October 2019 Central Festival Phuket Shop (Thailand)

12

By Business

Situation of Overseas Business②― Number of Shops (Opening/Closing Plan and Results) ―Opening

Opening
Closing
No. of shops at the end of period

88
66

88

96

72

No. of shops at
the end of
period (FY2/20)

Closing

Thailand

8

4

53

China

－

－

2

Malaysia－2

6

Vietnam

－

2

7

Peru

－

－

20

Total

8

8

88

 In Thailand, net increase of 4 shops, totaled 53
shops. Of these, there are 10 Watts band shops
through new shop openings and renovations.

 In China, the Company has decided to transfer

12
18
12

12
6

5
FY8/17its sales subsidiary and aims to expand thebusiness through wholesale.

22

FY8/188 8

4FY8/19FY8/20 2Q

FY8/20(Result)(Result)(Forecast) There are about 50 fixed-price shops with sales
floors consisting of the Company’s products
which include 17 shops in Myanmar, 9 shops in
Mexico and other countries.
13

By Business Situation of “Buona Vita”

Opening
Closing
No. of shops at the end of period

25
21

20

21

21

February 2020 Buona Vita Shin-Koshigaya Varie Shop (Saitama) Carefully select locations for new shop openings.
4

3

5

1
FY8/172
FY8/18FY8/192
2

1

FY8/20 2Q(Result)

1
FY8/20(Forecast)During the second quarter, opened 2 shops andclosed 1 shop, totaled 21 shops.
 Same-store sales were weak at 94.1% YoY, despite
the implementation of the LINE friends-only discountservice at the same time of events at shops where
the Company’s shops are located in, and efforts toimprove employee wrapping skills.
14

By Business

Situation of "Søstrene Grene"

Opening

Closing

No. of shops at the end of period

5

5

5

October 2019 Søstrene Grene Terrace Mall Matsudo Shop (Chiba)

4 The Company opened 2 new shops and closed unprofitable

3
2 2
3

1
FY8/17

FY8/182

1

FY8/19shops, Omotesando Shop and Marui Kichijoji Shop, bringing
the total to 5 shops.

 Improve brand recognition by introducing products that meetthe domestic market and strengthening branding using SNS
and also promote multi-store expansion, utilizing lowoperating-cost-shop format with the aim of making thebusiness profitable early.

2 2
FY8/20 2Q

FY8/20(Result)(Forecast)

15

By Business

Situation of “Real" In April 2018, the Company acquired all the shares of Real Co., Ltd., which operates thediscount shop Real, and made it a consolidated subsidiary.
 Offer a wide range of value-for-money products with utilizing their strength inprocurement capability.
 Trial opening of collaborative shops with the Company’s 100-Yen shops to createsynergies with 100-Yen shop business.
 Operate 6 shops at the end of February 2020 (5 tenant shops and 1 consignment shop).
16

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2020

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2020

Business Forecasts for the Fiscal
Business Plan Year Ending August 2020 andEfforts toward Each Business

Reference

P8 – P16

P18 – P24

P26 – P33
17

Business Plan

Business Forecasts for FY8/20(Millions of yen)

Business
forecasts

FY8/20 (Forecast)
Ratio tosales

120.00%YoY

51,860ー

100.9％

Gross profit

ー

－

ー

Selling, general andadministrative expenses

ー

ー

ー

Operating profit

770

1.5％

107.4％

Recurring profit

790

1.5％

120.4％Net income attributable toowners of parent
Net income

350

0.7％

495.9％Sales

Net Income per share
(Yen)

26.12

－

 Although the performance has been strong andProgress ratio vs.
full-year forecasts

may exceed the full-year forecasts, the Company
remains unchanged its full-year consolidated
business forecasts as there are unclear outlooks
for the termination of the new coronavirus(COVID-19) infectious and for its future impact on
the performance.
The Company will promptly disclose any
information that it deems necessary to revise.

100.00%80.00%
60.00%

102.1%

120.2%
99.1%

40.00%

50.1%
20.00%
0.00%

Sales

Operating profit

Recurring profit

Net income
attributable toowners of parent

18

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

19

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.
 Introduce not only to tenant-type shops but also to
consignment-type shops, leading to an improvement in grossmargin for the entire Group 1,118 items as of the end of February. Aiming for the
introduction of 1,300 items as of the end of 26th term.

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Accurately identify popular and unpopular items. Reduce stagnant products and replace themwith 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.

20

Business Plan

Initiatives for the 100-Yen Shop Business②

Moves toward cashless paymentsCashless payment services currently available:credit cards, electronic money, iD, nanaco, WAON, and Rakuten Edy.
 As of the end of February 2020, cashless payment is available at 236 shops
among the 460 tenant-type shops.
More than 200 of our shops are participating in the Cashless and Consumer
Redemption Business (cashless point redemption business)

Streamlining cash
registers

Launch of EC Site
 Opened Watts Online
Shop in response tocustomer requests
 Sell mainly products
featured on SNS andWatts Selectproducts.
 Started to sell
Søstrene Grene
products, in addition
to the 100-Yen shop
products.

Introduce automatic change
machines on a trial basis atsome shops
Currently verifying the effects
of reducing the time required
for settlement processing

21

Business Plan

Initiatives for the 100-Yen Shop Business③

Watts Anniversary Event “Watts × RODY”


Collaboration campaign with "RODY" to celebrate 25th anniversary of Watts



Changed in-store POP, etc. to collaborative designs with Rody and promote Rody goods.



Various events are under planning such as sales of original mascot and Watts exclusive
Rody goods and 3 consecutive months of SNS giveaway campaign!

 In the first month of the giveaway
campaign named "100,000 Instagram
Followers Thank You Campaign", 50
people can get an assortment of Rody
goods.
(All images shown are for illustration purpose only.)22

Business Plan

Initiatives for Overseas Business
小物家园 “KOMONOKAEN”

KOMONOYA[Expansion of wholesaling][Further improvement of existing markets]

Currently, countries and regions with shipping records
are China, Myanmar, Singapore, Mongolia, Cambodia,
U.S.A, New Zealand, Mexico, Brunei and Philippines,
etc. The number of retailers including wholesalers thatare selling only WATTS products is more than “130shops.” The Company will continue to keep an eye on
entering a promising market

Improve novelty of shops through strategic renovations
Replacement of products and improvement of ordering
based on POS data
Regard particularly Thailand, Vietnam, Philippines andMyanmar as significant markets and will actively
provide support for operation【Strengthen product competitiveness】
 Focus on supplying products for overseas as well as existing 100 yen products. Actively procure
products such as Japanese-made products and high quality products that are in high demand
overseas Build a commodity supply system to respond to a timely shipment overseas
23

Business Plan

Initiatives for Other Businesses Plan to open 2 new shops. Carefully select locations to grow as income
generating business.
 Conduct sales promotion activities such as distribution of sales information andevent information by individual store via LINE official accounts, promotion of new
products via Instagram Improvement of customer service level including wrapping skill

 Plan to open 2 new shops.
 Review shop operations to promote transition to low operating cost shops.
 Promote redevelopment of past popular (best-selling) products and developing
original Japanese products. Continue to focus on evergreen and fast-selling
products.
 Strengthened sales promotion by effective coupon distribution and developmentof SNS contents and other actions for the Japanese market.

 Plan to open 1 new shop, reduce and optimize shop opening costs
 Establish a structure that creates operation synergies with 100-Yen shops

 Strengthen liquor sales and increase customer drawing power24

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
the Fiscal Year Ending August 2020

P2 – P6

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2020

P8 – P16

Business Forecasts for the Fiscal
Business Plan Year Ending August 2020 andEfforts toward Each Business

Reference

About Watts GroupP18 – P24

P26 – P33
25

Reference

Brands of Watts Group

Domestic 100-Yen shop business

Overseasbusiness

Other domestic
business

26

Reference

Overview of Other Businesses“Buona Vita,” a variety store
which proposes a
comfortable life. Operates
21 shops as of the end of
February 2020. The photo isnonowa Higashi-Koganei
shop which opened in April
2019.

Collaboration shop between
100-Yen shop and grocery“Søstrene Grene”, a joint
venture in a life-style goods
shop offering North European
items. Operates 5 shops as ofthe end of February 2020.

Community-based small
discount shop.
Operates 6 shops as ofthe end of February
2020.

27

Reference

Use of SNS

https://twitter.com/watts_100/

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

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

・Watts official Instagram
Like twitter, we will inform you therecommended products of our 100Yen Shops. Providing attractive
information so that more people will
follow.

 Instagram followers exceed 100,000.
 Aiming to acquire new customers aswell as increase the frequency ofvisits of existing customers.
LINE@ is also available at several shops, which users
can get information when you become friend.

28

Reference

Company Profile

Establishment
Meaning of the Company’s nameFebruary 22, 1995 (Currently the 26th 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, 2018)

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)
3,240 employees (as of February 29, 2020) *Part-time workers included
1,345 shops (as of February 29, 2020) *Other shops included29

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

FY8/19Sales¥51.3bn

No. ofshops

1,312 shops

Consolidated sales
No. of Group shops at the end of period30Reference

Shareholder Composition
Individual and others
Financial institutions

FY8/192Q

Other companies
Securities companies

Foreign companies and others
Treasury stock

24.55%

42.42%

15.97%

0.86%

12.58%
3.58%
1.32%

FY8/202Q

Total number ofshares issued
Number ofshareholders

47.33%

24.58%

8.76% 14.39%
3.58%

 Number of shareholders

YoY

FY8/18 2Q

FY8/19 2Q

FY8/20 2Q

13,958,800

13,958,800

13,958,800

sharessharesshares

7,212

11,666

16,029+4,36337.34%
24.48%

42.42%
24.55%

47.33%
24.58%+4.91P+0.03P

21.50%
13.10%
1.05%
2.51%

15.97%
12.58%
0.86%
3.58%

8.76%
14.39%
1.32%
3.58%△7.21P
1.81P
0.46P
ー

increased by 4,363 YoY.
－

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.

 Ownership ratio of
individual shareholders
increased by 4.91
percentage points YoY.

31

Dividend Policy

Reference

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

FY8/18FY8/19Dividend payout ratio

190.1％

38.3%
32.1%
24.2%
8.7％
2.1%

6.2％
2.0%

¥15.00¥15.00FY8/17

FY8/18

1.3% 0.7％

3.4％
1.3%

¥10.00¥10.00FY8/19FY8/20(Forecast)

FY8/20(Forecasts)

Net income per share (Yen)

61.96 yen 46.79 yen

5.26 yen 26.12 yen

Dividend per share (Yen)

15.00 yen 15.00 yen 10.00 yen 10.00 yen

Dividend payout ratio

24.2％

32.1％

190.1％

38.3％

Dividend yield

1.1％

1.6％

1.6％

1.9％

ROE (Return on Equity)

8.7％

6.2％

0.7％

3.4％

DOE (Dividend on Equity)

2.1％

2.0％

1.3％

1.3％

*Dividend payout ratio for each fiscal year is calculated based on the stock price ofaccounting date.
(Payout ratio for FY8/20 is calculated based on the stock price as of February 28.)32

Reference

Shareholder Benefit Program

Number of shares held andholding period

Description

100 to 999 sharesA

1,000 shares or more/
Holding 3 years or more

A

A

＋

B

B

*All images are for illustrative purposes only. Actual product may differ.

 We will plan more attractive benefits with reflecting your opinions andsuggestions.

33

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