Watts Co., Ltd.

(2735; Tokyo Stock Exchange First Section)

Operating Results for the Fiscal Year
Ended August 2021 and Business
Forecasts for the Fiscal Year Ending
August 2022
October 14, 2021 (Thursday)
Fumio Hiraoka, President and CEO

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2021

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2021

P8 – P14

Business Plan

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

P16 – P22

Reference

P24 – P32
1

Financial
Overview

Consolidated Operating Results for the Fiscal Year
Ended August 2021
(Millions of yen)

Financial highlights

FY8/20FY8/21 (Current period)

Ratio to sales

Ratio to sales

YoY

Ratio toforecast

Sales

52,795－50,702

－

96.0％

99.5％

Gross profit

20,215

38.3％

19,625

38.7％

97.1％

－

Selling, general and administrative
expenses

18,44634.9％

17,956

35.4％

97.3％

－

EBITDA

2,186

4.1％

2,049

4.0％

93.8％

－

Operating profit

1,768

3.4％

1,669

3.3％

94.4％

90.2％

Recurring profit

1,731

3.3％

1,586

3.1％

91.7％

89.1％

Net income attributable to owners ofparent

774

1.5％

965

1.9％

124.7％

84.0％

Net income per share (Yen)

57.80

－

－

72.09

*”Ratio to forecast” is comparison with the full-year business forecasts for FY8/21 announced on April 5, 2021 in "Notice Concerning Revision to Business Forecasts"

 Sales decreased by 4.0% YoY due to the impact of COVID-19 on overseas business, and reactionary
fall in 100-Yen shop business after the special demand for hygiene products and stay-at-home➡P3
products in the previous fiscal year.
 Gross profit was 97.1% YoY, as the improvement in gross margin by 0.4 percentage points could
not offset the decline in sales. Operating profit was 94.4% YoY.
➡P4,5
 Net income attributable to owners of parent increased at 124.7% YoY due to a gain on debt
exemption of consolidated subsidiary Hilmer Japan Co., Ltd.
2

Financial
Overview

Sales by Business Type(Millions of yen)

Sales by Business Type

100-Yen shops

Ratio to sales

Ratio to sales

YoY

45,46886.1％

44,288

87.3％

97.4％

Wholesale, Other

2,105

4.0％

1,673

3.3％

79.5％

47,57390.1％

45,961

90.7％

96.6％

444

0.8％

274

0.5％

61.6％

1,311

2.5％

1,231

2.4％

93.9％

1,756

3.3％

1,505

3.0％

85.7％

904

1.7％

766

1.5％

84.8％

2,561

4.9％

2,468

4.9％

96.4％

52,795100.0％

50,702100.0％

96.0％

Directly managed
Wholesale
SubtotalLifestyle products
business

FY8/21 (Current period)

Directly managed

Subtotal

Overseas
Business

FY8/20

Buona Vita
Søstrene Grene

Real, etc.

Total

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

 In addition to the transfer of the local subsidiary in China in the previous fiscal year, sales of theoverseas business and the lifestyle products business decreased due to the impact of the spread of
COVID-19. As a result, the ratio of domestic 100-Yen shop business to the consolidated sales increased
by 0.6 percentage points.

3

Financial
Overview

Quarterly Changes in Gross Margin(Millions of yen)

12,703

13,278

Sales

13,628Gross profit

13,185Due to a decline in the sales ratio of thehigh-margin lifestyle products business(reflecting temporary closures under theState of Emergency)

12,69338.7%

Gross margin

12,925

12,729Due to continuous improvement of
cost-of sales ratio in the 100-Yen shop
business and decline in overseas
wholesale with low gross margin

12,354
39.3%

39.0%

37.7%

38.4%

38.5%

38.4%

37.9%
4,794

5,105

5,171

20/8
1Q

20/8
2Q

20/8
3Q

5,143

20/8
4Q

4,913

4,968

4,892

4,851

21/8
1Q

21/8
2Q

21/8
3Q

21/8
4Q
4

Financial
Overview

Factors for Changes in Operating Profit(Millions of yen)Amount ofdecrease ingross profit

589

Despite a 0.4ppt. improvement in grossmargin, gross profit decreased by 2.9%
YoY due to a 4.0% decline in sales.

Amount ofdecrease in
rent

110

Amount ofdecrease inpersonnel
expenses

57

Amount ofdecrease inequipment cost

175

Reduction of utility bill byswitching to LED lighting,etc.
Amount ofdecrease inutility bill

57

Increase/decrease
Amount ofin other expenses
decrease intravel expenses

34

56

Decreased due to voluntary
restraint on domestic and overseas
business trips and commuting

Operatingprofit1,768

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

Due to a decrease in closure-related
expenses reflecting fewer store closures anddecrease in store consumables in relation to
the new rule to charge plastic bags

Operatingprofit1,669

Decreased by 99 million yen 94.4％ YoYPrevious
period前期

Current
period当期

5

Financial
Overview

Consolidated Balance Sheet andConsolidated Cash Flows(Millions of yen)

Consolidatedbalance sheet

 Shareholders' equity ratio was

FY8/21(Current period)

FY8/20Pct. change

Pct. change

Cash and deposits

6,591

Up 8.5%

6,169

Down 6.4%

Merchandise and finished goods

7,114

Up 0.5％7,431

Up 4.5％

Other current assets

2,710

Down 7.9％

2,448 Down 9.6％

Tangible fixed assets

1,608

Down 9.7％

1,552 Down 3.5％

Other fixed assets

3,519

Down 4.3％

3,739

Total assets

21,544

Down 0.1％

21,340 Down 0.9％

Liabilities

11,062

Down 5.4％

10,118 Down 8.5％

Net assets

10,481

Up 6.2%

11,222Up 7.1%

Free cash flows

 Cash flows from operating

FY8/21(Current period)

FY8/20Pct. 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
periodUp 6.2％(Millions of yen)

Consolidated cash flows

52.6%, up by 3.9 percentage
points from the end of theprevious period.
In other current assets, notes
and accounts receivable-tradedecreased by 189 million yen.
In liabilities, electronicallyrecorded obligations decreasedby 540 million yen, and notes
and accounts payable-tradedecreased by 361 million yen.

Pct. change

922△1,357

378

△543

△526

305

△778

△252

106

616

△51

△158

14

23

30

16

6,591

516

6,169

△422

395

△1,052

△400

△796



activities: Decrease of 310
million yen in loss on businessliquidation and decrease of 291
million yen in gain on debt
exemption
Cash flows from investing
activities: Increase of 331 million
yen in purchase of intangible
fixed assets due to the renewalof the core system

6

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2021

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2021

P8 – P14

Business Plan

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

P16 – P22

Reference

P24 – P32
7

By Business

Topics by Business

Domestic 100-Yen Shop BusinessOpening/closing

Opened 165 shops against the full-year plan of 144 shops and closed 41
shops against 89 shops. The number of shops at the end of the period was➡P10
1,364 (net increase of 124 shops).

Watts brand shops

Increased by 186 shops to 825 shops through openings and renovations.
The share to total number of 100-Yen shops increased to 60.5%.

Overseas Business
Overseas shops

The number of shops that are selling WATTS products was 69 (down 14
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
21, mainly opening consignment shops in our 100-Yen shop.
➡P13

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.

RealCommunity-based discount shop. Operates 6 shops at the end of August2021. Aim to create synergies with 100-Yen shop business.
➡P14

8

By Business

Situation of 100-Yen Shop Business ①― Changes in same-store sales YoY ―125.0%
FY8/21 (Current period)

FY8/19 (Previous period)

120.0%
Reactionary fall due to rush
demand prior to the consumption
tax hike in the previous year

115.0%

116.0%

117.0%

105.0%

105.3%

100.0%
95.0%

103.2% 103.6%

102.8%
102.6%

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

Pct. changeof same-store
sales

105.0%
93.9%

96.6%
88.5%

90.0%
85.0%

110.0%
106.2%

100.4% 100.2%
96.7%

116.0%

108.9%

110.0%
104.7%

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

Sep

Oct

Nov

Dec

Jan

91.3%
Feb

Mar

87.2%
89.7%
Apr

May

93.5%

91.0%
Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Previous
period (A)Current
period (B)

+4.7％

-3.4％

+0.4％

+0.2％

+2.8％

+17.0％+8.9％+16.0％+16.0％+10.0％

+6.2％

+5.0％

-3.3％

+5.3％

+3.2％

+3.6％

+2.6％

-11.5％-8.7％-12.8％-10.3％

-9.0％

-6.1％

-6.5％

A+B *

+1.4%

+1.9%

+3.6%

+3.8%

+5.4%

+5.5%

+0.2％

+3.2％

+5.7％

+1.0％

+0.1％

-1.5％

※

The sum of the pct. change between the previous period and the current period = the rate of growth excluding the impact of reactionary fall fromthe previous fiscal year.

 [Same-store sales YoY] Sales: 95.2%, Number of customers: 92.8%, Spending per customer: 101.6%
 Sales of Watts brand shops were 97.4% YoY.

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

1,364
1,161

1,192

1,240

Opening/closing plan and results
1,295

Opening plan
144 shops → Opened 165 shops

165
144

141
129
111

Closing plan → Closed 41 shops
89 shops

 Since supermarkets and malls, etc. where
67

80

89

81

41
18/8

19/8

20/8

21/8

21/8
(Plan)

our shops are located performed well, thenumber of unpredictable closing of tenanttype shops was less than usual.
Net increase of 124 shops against the planof 55 shops.

 Of the total 1,364 shops, 825 are Watts
brand shops (net increase of 186 shops).
10

By Business

Situation of 100-Yen Shop Business ③―Number of shops introduced higher price products and its sales mix―

100 0

Tenant-type (number of shops introduced)
Ratio of sales of higher price products

900

FY8/20

800

700

600

Numberof items

500

400

7.2%

Consignment-type (number of shops introduced)

383

406

1,532
424

Number ofchanges

FY8/21
2,017

+485

483

433

519

5.9%

6.3%
672

6.4%

6.9%

7.5%

826

784

6.5%

714
5.5%

585

556

4.5%

4.2%
3.8%

3.5%

2.9%

300

2.5%

200

100

0.7%

1.0%

1.4%

2.3%
1.5%

0

0.5%

19/8

19/8

19/8

19/8

20/8

20/8

20/8

20/8

21/8

21/8

21/8

21/8

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Q

2Q

3Q

4Q

 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 1.5 times YoY.
11

By Business Situation of Overseas Business

350 0(Millions of yen)

Directly-managed sales

2,715

300 0

2,297

250 0

1,881

200 0

1,058

2,476

1,756

1,616
1,714

1,371

150 0

1,174

1,311

100 0

681
500

377

707

Wholesale sales

925

1,098

762

444

1,505
1,231

274

Closing

No. ofshops(FY8/21)

ー

9

41

FC

－

2

4

Malaysia

FC

－

ー

2

Vietnam

FC

－

2

3

Directlymanaged

2

3

19

2

16

69

Country

FormatThailand

FC

China

Peru

0

15/8

16/8

17/8

18/8

19/8

20/8

21/8

Total

Opening In Thailand, there are 41 shops (down 9 from the endof the previous fiscal year). 10 "Watts" brand shops
opened through new openings and renovations.

 Secured profitability despite a decrease in sales dueto the transfer of a sales subsidiary in China in Aprilof the previous fiscal year and the impact of the
spread of COVID-19.
December 2020 San Felipe Shop (Peru)

12

By Business Situation of “Buona Vita”

Opening
Closing
No. of shops at the end of period

21

20

21

21

14
9

2
FY8/183

3

FY8/194
FY8/205
FY8/21(Result)

 Operate 21 shops as of the end of August2021. Operate 4 consignment shops in our
100-Yen shop.

5

4

September 2020 Buona Vita Grand Emio Tokorozawa(Saitama)2
FY8/21(Plan)

 Although we have promoted items for stay-athome time, same-store sales remained weakat 81.2% YoY due to the impact of the spreadof COVID-19.
13

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 2018 and madeit into a consolidated
subsidiary1

2
FY8/18FY8/19FY8/20FY8/21(Result)

FY8/21(Plan)

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 August 2021
(5 tenant shops and 1 consignment shop).
 Maintained profitability.
14

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2021

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2021

P8 – P14

Business Plan

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

P16 – P22

Reference

P24 – P32
15

Business Plan

Business Forecasts for FY8/22(Millions of yen)
FY8/20Business
forecasts

FY8/21

Ratio tosales

Ratio to
sales

YoY

FY8/22 (Forecast)
Ratio to
sales

YoY

YoY

Sales

52,795ー

102.7％

50,702ー

96.0％

60,200ー

118.7％

Gross profit

20,21538.3％

104.5％

19,625

38.7％

97.1％

ー

－

ー

SG&A

18,446

34.9％

99.1％

17,956

35.4％

97.3％

ー

ー

ー

EBITDA

2,186

4.1％

188.9％

2,049

4.0％

93.8％

1,802

3.0％

87.9％

Operating profit

1,768

3.4％

246.7％

1,669

3.3％

94.4％

1,035

1.7％

62.0％

Recurring profit

1,731

3.3％

263.9％

1,586

3.1％

91.7％

955

1.6％

60.2％

774

1.5％

1097.3％965

1.9％

124.7％

510

0.8％

52.8％

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

57.80

－

72.09

－

38.07

－

ROE

7.5％

－

8.9％

－

4.5％

ー

 100-Yen shop opening/closing plan

【Opening】1H: 115, 2H: 115, Total: 230【Closing】 1H: 40, 2H: 46, Total: 86
Net increase: 144 shops

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

 Sales are expected to increase substantially due tothe acquisition of ONTSU F RETAIL CO., LTD., but
profits are expected to decline mainly due to the
opening of a large number of new stores to further
expand the market share of consignment-type shops,
an increase in rent due to intensifying competition in
store openings, and an increase in SG&A expenses
due to higher minimum wages.

16

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
 Ongoing efforts to improvecustomer service

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

17

Business Plan

Initiatives for the 100-Yen Shop Business ①

Acquisition of Ontsu F･RETAIL Co., Ltd.

 As of October 1, 2021, we acquired Ontsu F･RETAIL Co., Ltd., which operates 100-Yen shop
"FLET'S" and "Hyakuen Ryojikan" etc. with 145 shops nationwide, and made them into subsidiaries.
 Following the increased purchase volume, we will be able to reduce the cost-of-sales ratio, andthereby improving profitability.
 Attractive product lineup with increased number of items.
 By leveraging their know-how, we intend to build and strengthen a business model for opening standalone shops.
 Further expand market share of consignment shops, one of our strengths, into overwhelmingly No.1.
 Further improve the profitability of former Ontsu brand shops through early integration of operation
model with those of Watts.
18

Business Plan

Initiatives for the 100-Yen Shop Business ②

Offer 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 2,017 items as of the end of August 2021. Maintain 2,000 lineups
while reviewing these items.

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 thefreshness of products of sales floors
Based on sales analysis utilizing POS data, create store models that suit the shop location andcustomer characteristics.
Promote verification for the introduction of an automatic ordering system

19

Business Plan

Initiatives for the 100-Yen Shop Business ③

Reopened online shop

Self-checkout POS register Watts Online Shop was reopened on
September 1, 2021



 Substantially increased lineups with over
10,000 items!

Plan to introduce self-checkout POS registers
for cashless payment at 100 shops in FY8/22

The objectives is to improve in-store productivity
through more efficient purchase process, and toprevent the spread of COVID-19 for bothcustomers and employees through contactless
payment

 Customers can order from one unit Intend to develop as a group-wide online shop
not only for 100-Yen shop business20

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
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 themorning, 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 a collectionof products necessary for each time zone, allowing customers to enjoy shopping while
imagining their own routines.
22

Contents
Financial
Overview

Operating Results for the Fiscal Year
Ended August 2021

P2 – P6

By Business

Situation of Each Business for the
Fiscal Year Ended August 2021

P8 – P14

Business Plan

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

P16 – P22

About Watts GroupP24 – P32

Reference23

Reference New market segment on the Tokyo Stock Exchange Results of the initial assessment on compliance with the listing criteria for the Prime Marketof new market segment

Criteria

Results of the initialassessment

Number of shares outstanding

Meet the criteria

Market capitalization of shares
outstanding

Do not meet the criteria

Ratio of shares outstanding

Meet the criteria

Trading value

Meet the criteria

 Of the continued listing criteria for the Prime Market, our “market capitalization ofshares outstanding" does not meet the criteria.
 Plan to apply transitional measures for continued listing criteria by submitting anddisclosing a "plan for compliance with continued listing criteria“.
 In order to achieve sustainable growth and enhance corporate value over the medium
to long term, we will work to improve our corporate governance. Furthermore, we will
increase the "market capitalization of shares outstanding" to meet all the criteria forlisting the Prime Market.
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
21 shops as of the end of
August 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.
Operate 6 shops as ofthe end of August 2021.
Collaboration shop between
100-Yen shop and grocery

26

Reference

Social Media・Watts official twitter
Tweeting photos of recommended
items and monthly sales promotion
news. Also retweeting blogs andarticles on 100-Yen shop
information.

・Watts official Instagram
As with twitter, we post ourrecommended 100-Yen items.
Providing attractive information to
get more followers.

・ Started Watts official YouTube channel

Opened in February2021.
The subscribers
exceeded 1,400.

LINE@ is also available at several shops. You canreceive information by adding us as “friend”.
*LINE is the most popular messaging app. in Japan27

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 First Section(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)
3,153 employees (as of August 31, 2021) *Part-time workers included
1,462 shops (as of August 31, 2021) *Other shops included28

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

FY8/21
Sales¥50.7bn

No. ofshops

1,462 shops

Consolidated sales
No. of Group shops at the end of period29Reference

Shareholder Composition
Individual and others
Financial institutions

Other companies
Securities companies

Foreign companies and others
Treasury stock

1.71%
FY8/2024.60%

52.77%

4.43%12.88%
3.58%
0.08%

54.49%

FY8/2124.60%

4.25%12.98%
3.58%

Total number ofshares issued
Number ofshareholders

FY8/19FY8/20FY8/21

13,958,800

13,958,800

13,958,800

sharessharesshares

17,59023,454

22,29048.22%
24.57%

52.77%
24.60%

54.49%
24.60%

10.85%
11.87%
0.88%
3.58%

4.43%
12.88%
1.71%
3.58%

4.25%
12.98%
0.08%
3.58%

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

YoY－

 Number of shareholders
decreased by 1,164 YoY.

△1,164  Ownership ratio of
individual shareholders
increased by 1.72
+1.72P
percentage points YoY.
－
△0.18P+0.10P△1.63P(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30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%

30.5%
26.0%
7.5％

6.2％
2.0%

15.00
FY8/18

1.3%
0.7％

10.00
FY8/19

8.9％
2.7％

1.9%

15.00
FY8/2022.00

FY8/21(Forecast)

FY8/21(Forecast)

Net income per share (Yen)

46.79

5.26

57.80

72.09

Dividend per share (Yen)

15.00

10.00

15.00

22.00

Dividend payout ratio

32.1％

190.1％

26.0％

30.5％

Dividend yield

1.6％

1.6％

1.6％

2.5％

ROE (Return on Equity)

6.2％

0.7％

7.5％

8.9％

DOE (Dividend on Equity)

2.0％

1.3％

1.9％

2.7％

*Dividend payout ratio for each fiscal year is calculated basedon the stock price of accounting date.
*Dividend per share for FY8/21 is forecasted amount as oftoday.
31

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.
*We will ship the products at our costs.
*The shareholder gift certificates are available only at our online shop, not at our physical shops.
32

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