Watts Co., Ltd.

(2735; Tokyo Stock Exchange Prime Market)

Operating Results for the Six Months of
the Fiscal Year Ending August 2022 andProgress of the Full-Year PlanThursday, April 14, 2022
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
the Fiscal Year Ending August 2022

P2 – P6

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2022

P8 – P14

Business Forecasts for the Fiscal
Business Plan Year Ending August 2022 andEfforts toward Each Business

Reference

P16 – P22

P24 – P31
1

Financial
Overview

Consolidated Operating Results for the Six Months of
the Fiscal Year Ending August 2022

Financial highlights(Millions of yen)
FY8/22 2Q (Current period)

FY8/21 2Q
Ratio to sales

Ratio to sales

Ratio toforecast

YoY

25,618
9,881

－
38.6％

28,506
10,914－38.3％

111.3％
110.4％

97.1％

8,796

34.3％

10,27636.0％

116.8％

－

1,244
1,085
1,066

4.9％
4.2％
4.2％

959
637
678

3.4％
2.2％
2.4％

77.1％
58.7％
63.6％

－
135.6％
161.6％Net income attributable to owners ofparent

800

3.1％

361

1.3％

45.2％

168.1％Net income per share (Yen)

59.72

－

－

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

Recurring profit

26.89

－

 Sales increased by 11.3% YoY owing to the consolidation of Ontsu F Retail Co., Ltd.(“OFR”) andNippan Co., Ltd.(“NPN”) as of October 1, 2021.
➡P3
 Operating income was 58.7% YoY due to the weak 100-Yen shop same-store sales, amortizationof goodwill from M&A, and the amortization burden associated with the renewal of the core system
for the company’s 100-yen shop business.
➡P5,9 Net income attributable to owners of parent largely decreased to 45.2% YoY, due to a gain on
debt exemption of consolidated subsidiary Hilmer Japan Co., Ltd during previous fiscal year.
 Although sales fell short of plan, SG&A expenses, including personnel costs, equipment costs
related to store openings and renovations, and commissions, were lower than planned, resulting inan operating profit of 135.6% compared to the plan.
2

Financial
Overview

Sales by Business Type(Millions of yen)

Sales by Business Type

100-Yen shops

Ratio to sales

Ratio to sales

YoY

22,11986.3％

25,31488.8％

114.4％

Wholesale, Other

883

3.4％

1,071

3.8％

121.3％

23,00389.8％

26,385

92.6％

114.7％

Directly managed

145

0.6％

164

0.6％

113.3％

Wholesale

712

2.8％

486

1.7％

68.3％

857

3.3％

650

2.3％

75.9％

499

1.9％

268

0.9％

53.8％

1,258

4.9％

1,201

4.2％

95.5％

25,618100.0％

28,506100.0％

111.3％

SubtotalLifestyle products
business

FY8/22 2Q (Current period)

Directly managed

Subtotal

Overseas
Business

FY8/21 2Q

Buona Vita
Søstrene Grene

Real, etc.

Total

* The Company withdrew 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 2.8 percentage points.
3

Financial
Overview

Quarterly Changes in Gross Margin(Millions of yen)

12,703

Sales

13,278 13,628 13,185

Due to lower sales ratio of the lifestyle
products business with high grossmargin, reflecting the suspension ofoperation under the State of Emergency

37.7%

Gross profit

Gross margin

12,693 12,925 12,729 12,354

39.0%

38.7%

14,78013,726
39.3%

39.3%

Gross margin
excluding OFR and
NPN

39.1%

38.6%

38.4% 38.4%

38.0%

38.5%

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

37.9%
4,794

5,105

5,171

5,143

4,913

4,968

4,892

4,851

20/8
1Q

20/8
2Q

20/8
3Q

20/8
4Q

21/8
1Q

21/8
2Q

21/8
3Q

21/8
4Q

5,303

5,610

22/8
1Q

22/8
2Q
4

Financial
Overview

Factors for Changes in Operating Profit(Millions of yen)
Increase in Increase inrent
gross profit

515

1,032

Increase in personnel
expenses due to increased
employees through M&A

Increase inpersonnel
expenses

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

558

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

Increase inequipment cost

256
Operatingprofit1,085

Sales increased by 11.3% YoY andgross margin decreased by 0.3ppt., withgross profit increasing by 10.4% YoY.

Increase inutility bill51

Increase incommission
paid

41

Decreased by 448 million yen 58.7％ YoYPrevious
前期
periodIncrease/decreasein other expenses

56
Operatingprofit637

Current
当期
period5

Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows(Millions of yen)

Consolidatedbalance sheet

 Shareholders' equity ratio was

FY8/22(Current period)

FY8/21

Pct. change

Pct. change

Cash and deposits

6,169

Down 6.4%

6,524

Up 5.8%Merchandise and finished goods

7,431

Up 4.5％8,766

Up 18.0％

Other current assets

2,448

Down 9.6％

2,532

Up 3.4％

Tangible fixed assets

1,552

Down 3.5％

2,097

Up 35.1％

Other fixed assets

3,739

Up 6.2％

4,843

Up 29.5％

Total assets

21,340

Down 0.9％

24,763Up 16.0％

Liabilities

10,118Down 8.5％

13,342Up 31.9％

Net assets

11,222Up 7.1%

11,421

Up 1.8%

46.1%, down by 6.5ppt. from theend of the previous period.
In other current assets, goodwill
increased by 592 million yen andguarantee deposits increased by
464 million yen, mainly due theacquisition of OFR.
In liabilities, long-term loans
payable increased by 2,158 million
yen, mainly due to the assumptionof loans payable through M&A.

(Millions of yen)

Consolidated cash flows

1,802

+959

915

△886

△409

△92

△570

△160

△392

△356

0

393

△4

△19

9

14

7,586

+1,007

6,524△1,061decrease of 1,047 million yen innotes and accounts payable-tradedue to the fact that the last day ofthe previous fiscal year was aholiday.
 Cash flows from investing activities:
increase of 451 million yen in
payments for lease and guarantee
deposits, mainly due to changes incontractors as a result of M&A.

1,392

+867

345

△1,047

6

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

 Cash flows from investing activities:

FY8/22(Current period)

FY8/21

Pct. changeContents
Financial
Overview

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2022

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2022

P8 – P14

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2022 andEfforts toward Each Business

P16 – P22

About Watts GroupP24 – P31

Reference

7

By Business

Topics by Business

Domestic 100-Yen Shop BusinessOpening/closing

Opened 97 shops against the full-year plan of 230 shops and closed 27
shops against 86 shops. The number of shops at the end of the period was➡P10
1,579.

Watts brand shops

Increased by 107 shops to 932 shops through openings and renovations.
The share to total number of 100-Yen shops was 59.0%.

M&A

Made OFR a subsidiary as of October 1, 2021. Working to promptly
complete post-merger integration process.

➡P19

Overseas Business
Overseas shops

The number of shops that are selling WATTS products was 58 (down 11
from the end of the previous fiscal year), and more than 100 shops including
local partners’ shops.
➡P12

Domestic Other Business
Buona Vita

A life-style goods shop offering comfortable life. The number of shops was
22, mainly opening consignment shops in our 100-Yen shop.

RealCommunity-based discount shop. Operates 6 shops at the end of February
2022. Aim to create synergies with 100-Yen shop business.

➡P13
➡P14
8

By Business115.0%

Situation of 100-Yen Shop Business①― Changes in Same-store sales YoY ―FY8/22 (Current period)

FY8/21 (Previous period)

110.0%
105.3%
105.0%
100.0%
95.0%

97.5%
98.6%

103.6%

103.2%

97.1%

95.6%

95.8%
93.9%

96.7%

91.3%

95.2%

90.0%
85.0%

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

102.6%

87.2%

88.5%
Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

89.7%

May

93.5%

91.0%

Jun

Jul

Aug

Pct. change
of Same-store

Sep

Oct

Nov

Dec

Jan

 In 1H, sales were 96.6% YoY, number ofPrevious
period (A)Current
period (B)

-3.3％

+5.3％

+3.2％

+3.6％

+2.6％

-2.5％

-1.4％

-4.4％

-4.8％

-2.9％

A+B

-5.8%

+3.9%

-1.2%

-1.2%

-0.3%

customers was 95.5%, and spending per
customers was 100.1%.
 Sales of Watts brand shops were 98.2%
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 percentagechange between the previous fiscal year and the current fiscal year as the growthrate excluding the impact of the reactionary decline.

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

1,579

Opening/closing plan and results

1,584

1,364
1,192

1,653

2Q
→ Opened 97 shops
Opening plan (Full-year progress rate: 42.2％)
115 shops

230

1,240
165

2Q
Closing plan
40 shops

129
115

111

97

80

19/8

86

20/8

27

21/8

22/8 2Q(Full-year progress rate: 31.4％)

 Despite the slower-than-planned new shop

81
41

→ Closed 27 shops

40
22/8 2Q
22/8(Forecast) (Forecast)openings, the number of shop closures was alsoless than expected, resulting in a net increase of
215 shops compared to the plan of 220 shops (netincrease includes 145 shops of OFR acquired on
October 1, 2021).

 Of the total 1,579 shops, 932 are Watts brandshops (net increase of 107 shops).
10

By Business

Situation of 100-Yen Shop Business③- Changes in the number of shops introducing higher price products and its sales share -Tenant-type (number of shops introduced)
120 0

7.2%

Consignment-type (number of shops introduced)

6.7% 6.8%

Ratio of higher price products

5.9%

100 0

6.3%
6.4%

383

406

424

433

483

672

4.2%

600

400

6.9%
784

800

3.8%

519

7.5%

556

6.5%

826

893

907
5.5%

714
4.5%

585
3.5%

2.9%
2.5%

200

0.7%

1.0%

1.4%

2.3%
1.5%

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

21/8
3Q

21/8
4Q

22/8
1Q

22/8
2Q

 We roughly completed the introduction of higher price products to the tenant-type shops and willcontinue to introduce them to the consignment-type shops.

 The number of higher price products handled is based on 2,000, we regularly review these items
and replace poor-selling items with new items to keep the sales floor attractive.

11

By Business

Situation of Overseas Business

180 0(Millions of yen)

Directly-managed sales

Wholesale sales

160 0

1,298 1,340

140 0

120 0

100 0

966

800

600

645

1,083
771
623

962

1,158

650
712

400

200

320

459

526

Closin
g

FC

ー

1

40

China

FC

－

ー

4

Malaysia

FC

－

2

ー

Vietnam

FC

－

3

ー

Directlymanaged

－

5

14

－

11

58

FormatThailand

857
828

377

329

486

145

164

0

16/8

17/8

18/8

19/8

20/8

21/8

22/8

1H

1H

1H

1H

1H

1H

1H

No. ofshops(22/2)

Openi
ng

Country

Peru
Total

 In Thailand, there are 40 shops (down 1 from theend of the previous fiscal year). There are 11
Watts brand shops through new openings andrenovations.

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

12

By Business

Situation of “Buona Vita”

Opening
Closing
No. of shops at the end of period

20

21

21

27

22

Buona Vita Grand Emio Tokorozawa (Saitama)

6

5
3
2
19/8

3
4
20/8

5
21/8

 22 shops as of the end of February 2022.
Operate 5 consignment shops in our 100Yen shop.

 Sales of marks remained strong. Same1
22/2

22/8

(Result)(Forecast)store sales have exceeded 100% YoY since
December and are on a recovery trend;
96.4% in 1H.
13

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 February
2022 (5 tenant shops and 1 consignmentshop).

 Household items shop “Tokino:ne”.
The concept is “Create a pleasantme-time”.
 Opened the first shop in Kobe City,
Hyogo Prefecture, in March 2021.
 The layout is divided into zones formorning, noon, evening, and night. It
offers a collection of products
necessary for each time zone, allowing
customers to enjoy shopping while
imagining their own routines.
14

Contents
Financial
Overview

Operating Results for the Six Months of
P2 – P6
the Fiscal Year Ending August 2022

By Business

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2022

P8 – P14

Business Plan

Business Forecasts for the Fiscal
Year Ending August 2022 andEfforts toward Each Business

P16 – P22

About Watts GroupP24 – P31

Reference

15

Business Plan

Business Forecasts for FY8/22(Millions of yen)

Business
forecasts

FY8/22 (Forecast)
Ratio tosales

100.00%
YoY

Sales

60,200ー

118.7％

Operating profit

1,035

1.7％

62.0％

Recurring profit

955

1.6％

60.2％

Net income attributable toowners of parent

510

0.8％

52.8％

Net income per share (yen)Progress rate to thefull-year forecasts
90.00%
80.00%
70.00%
60.00%
50.00%

38.07－

40.00%

 While sales are falling short of the plan,
profits are outperforming the plan. This isthanks to the steady improvement in cost of
sales ratio of 100-Yen shop products andlower-than-expected personnel, new shop
openings, and renovation expenses.
 We remain unchanged our full-year forecasts
at this moment, but we will disclose
information promptly if we deem it necessary
to revise them in the future.

30.00%

61.6%

71.1%

70.9%

Recurringprofit

Net income
attributable toowners ofparent47.4%

20.00%
10.00%
0.00%

Sales

Operatingprofit16

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

17

Business Plan

Watts Group Medium-Term 3-Year Plan
Medium-Term 3-Year Plan (FY8/22 – FY8/24)(Millions of yen)
FY8/22 (forecasts)

FY8/24 (forecasts)

Ratio tosales

Ratio to
sales

Sales

60,200ー

70,000－EBITDA

1,802

3.0％

3,100

4.4％

Operating profit

1,035

1.7％

2,100

3.0％

510

0.8％

1,100

1.6％

Net income attributable toowners of parent
100-Yen Shop Business
Sales Share

－

86.8％

 Progress against the mid-term plan will be disclosed within 3 months of theend of the fiscal year (end of August).
18

Business Plan

Initiatives for the 100-Yen Shop Business ①

Acquisition of Ontsu F・Retail Co., Ltd.

 As of October 1, 2021, we acquired OFR which operates 100-Yen shop "FLET'S" and "Hyakuen
Ryojikan" etc. with 145 shops nationwide, and made them into subsidiaries
 Completed the integration of product master file and unification of unit prices.
Increase profitability by reducing cost ratio reflecting increase in purchase volume.
 Transfer of administrative operations has roughly completed. Integration of personnel systems ison track.
 Some FLET'S shops were renovated to Watts shops.
Share know-how and integrate operations by the end of FY8/22.
 In the future, we will build and strengthen a business model for stand-alone shops.
19

Business Plan

Initiatives for the 100-Yen Shop Business ➁Offer higher price products Increase the number of higher price products (¥200 to ¥1,000) toenhance the product lineups and revitalize sales floors.

 Actively introduce to consignment-type shops, leading to an
improvement in gross margin for the entire group 2,048 items as of the end of February 2022. Maintain 2,000
lineups while reviewing these items.

Intra-group collaboration
 Trial collaboration with discount shops "Real"and lifestyle products business “Buona Vita”
to create synergies among Group businesses

20Business Plan

Initiatives for the 100-Yen Shop Business ③

Self-checkout POS register Plan to introduce self-checkout POS registers for cashless
payment at 100 shops in FY8/22. Introduced in 21 shops asof the end of February 2022.

 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.
 Plan to introduce an automatic ordering system to more than 300 shops,
mainly tenant-type shops.
As of the end of February 2022, about 100 shops had installed the system.

21

Business Plan

Initiatives for the 100-Yen Shop Business ④

Reopened online shop

Social Media・Watts official YouTube channel
 Watts Online Shop was reopened on
September 1, 2021
 Substantially increased lineups with over
10,000 items
 Customers can order from one unit Intend to develop as a group-wide online shop
not only for 100-Yen shop business Use as a tool to raise brand awareness22

Business Plan

Initiatives for Overseas and Other Businesses【Overseas Business】
 Product strategies and proposals suitable for each product supplier Develop measures to improve same-store sales and increase thenumber of customers and spending per customer
 Select and enter into new markets based on disposable income, sales
price, degree of dependence on imports, etc.
【Buona Vita】
 Establish basic package for consignment shop
 Plan to open 6 shops in collaboration with our 100-Yen shop
 Propose products for new lifestyles with themes of "enriching stay-athome time" and "healing and relaxation"
 Speedy replacement of products at shops and inventory control【Real】
 Plan to open 1 new shop Same-store sales were 100.0％ YoY
 Establish a structure that creates operation synergies with 100-Yen
shops
23

Contents
Financial
Overview

By Business

Operating Results for the Six Months of
the Fiscal Year Ending August 2022

P2 – P6

Situation of Each Business for the
Six Months of the Fiscal Year Ending
August 2022

P8 – P14

Business Forecasts for the Fiscal
Business Plan Year Ending August 2022 andEfforts toward Each Business

Reference

About Watts GroupP16 – P22

P24 – P31
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
22 shops as of the end of
February 2022.

Collaboration shop between
100-Yen shop and grocery

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

Community-based
small discount shop.
Operate 6 shops as ofthe end of February
2022.

26

Reference

Company Profile

Establishment
Meaning of the Company’s nameFebruary 22, 1995 (Currently the 28th 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)
3,569 employees (as of February 28, 2022) *Part-time workers included
1,667 shops (as of February 28, 2022) *Other shops included27

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,
Osama , as a successor of
Hisamatsu Co., Ltd.

1998
Exceeded 100 shops
for 4 years
after establishment

1995
Established2002¥10b in sales
Went OTC

FY8/21
Sales¥50.7bn

No. ofshops

1,462 shops

Consolidated sales
No. of Group shops at the end of period28Reference

Shareholder Composition
Individual and others
Financial institutions

FY8/21
2Q

Other companies
Securities companies

Foreign companies and others
Treasury stock

2.51%

24.58%

50.82%

6.30% 15.77%
3.58%
3.94%

FY8/22
2Q

Total number ofshares issued
Number ofshareholders

51.34%

24.60%

2.32%

FY8/202Q
13,958,800

FY8/21
2Q
13,958,800

FY8/22
2Q
13,898,800

sharessharesshares

16,02917,71017,572

YoY△60,000△138

Other domestic
companies
Foreign companies
and others
Financial institutions
Securities companies
Treasury stock Total number of sharesissued decreased by
60,000 due to thecancellation of treasury
stock.

 Treasury stock was

Ownership ratio
Individuals and others

3.78%14.01%

47.33%
24.58%

50.82%
24.58%

51.34%
24.60%+0.52P+0.02P

8.76%
14.39%
1.32%
3.58%

6.30%
15.77%
2.51%
3.58%

3.78%
14.01%
3.94%
2.32%△2.52P△1.76P+1.43P△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.
29

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）

FY8/19FY8/20FY8/21

FY8/22(forecasts)

Net income per share (Yen)¥5.26¥57.80¥72.09¥38.07

Dividend per share (Yen)¥10.00¥15.00¥22.00¥15.00

Dividend payout ratio

190.1％

26.0％

30.5％

39.4％

Dividend yield

1.6％

1.6％

2.5％

2.1％

ROE (Return on Equity)

0.7％

7.5％

8.9％

4.5％

DOE (Dividend on Equity)

1.3％

1.9％

2.7％

1.8％

Dividend payout ratio

190.1％

39.4%
30.5%
26.0%
7.5％
1.3%
0.7％

¥10.0019/8

1.9％¥15.00

20/8

8.8％
2.7%

¥22.00

21/8

4.5％
1.8％
¥15.0022/8(Forecast)*Dividend payout ratio for each fiscal year is calculated based on thestock price of accounting date.
*Payout ratio for FY8/22 is calculated based on the stock price on
February 28, 2022.)30

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)

 According to shareholders' requests to have a choice for shareholder benefits, we will
present shareholder gift certificates available at our online shop, which was reopened
on September 1, 2021.
*The benefits outlined above are for FY8/21.
*We will ship the products at our costs.
*The shareholder gift certificates are available only at our online shop, not at our physical shops.
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 ： 06-4792-3236