Investment thesis website v3

1. Investment Presentation

2. 2
Forward Looking Statements
Certain statements in this presentation constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements are related to forecasts of sales, market dynamics and 2016 outlook
update, capital expenditures, costs and savings associated with realignment activities,
lead free developments and management goals and objectives.
Watts cautions investors that any such forward-looking statements made by Watts are
not guarantees of future performance. All forward-looking statements are subject to
known and unknown risks, uncertainties and contingencies, many that are beyond the
control of Watts, which may cause actual results, performance or achievements to
differ materially from anticipated future results, performance or achievements
expressed or implied by the forward-looking statements.
Factors that might affect forward-looking statements include overall economic and
business conditions, competitive factors, changes in laws affecting Watts, future
acquisitions of material assets or businesses by Watts, the demand for Watts’ products
and services and other factors identified in Watts’ most recent Annual Report on Form
10-K and subsequent reports filed with the SEC.

3. 3
Who We Are
Global Leader in Residential and Commercial Water Products
8/4/2016
• $1.5B Company with Balanced Business
Model
- 60% / 40% revenue split domestic / international
- Strong presence in residential / commercial markets
- Exposure to replacement markets & new
construction
• Leveraging Leading Brands and Key Market
Drivers
- Safety & Regulation
- Energy Efficiency
- Water Conservation
 Multi-Year Transformation Underway
- Delivering enhanced margin expansion
 Strong Cash Generator Drives Capital
Deployment
Leader in Residential / Commercial Water Products

4. 4
Residential Applications
One of the Broadest Product Offerings …
8/4/2016
BATHROOM
Tempering Valves for Tubs, Showers and Sinks
Electric Tile Warming
Hot Water On Demand Recirculation Systems
Toilet Fill Valves
KITCHEN
Undersink Guardian Thermostatic Mixing Valves
Reverse Osmosis Water Filtration Systems
Ice Maker Filtration Systems
Electric Tile Warming
ALTERNATIVE ENERGY
Solar Control Packages
Geothermal Control Packages
LAUNDRY ROOM
Automatic Washing Machine Shutoff Valves
Water Hammer Arrestors
Anti‐Scale Systems
Gas Ball Valves
Gas Connectors
BOILER
Temperature and Pressure
Gauges
Tempering Valves
Safety Relief Valves
Fill Valves
Backflow Preventers
Boiler Drains
Air Separators
Flow Control Valves
Float Vents
Anti‐Scale Systems
Water Softeners
UV Disinfection Systems
Whole House Filtration Systems
WATER QUALITY
RADIANT HEAT
PRODUCTS
Radiant Underfloor Heating Systems
Snowmelting
Electronic Temperature Controls
Quick Connect Fittings
Hydrocontrol Panels
PEX Tubing
Manifolds
Backflow Preventers
Ball Valves
Drain Tubes
Floor Drains
Gas Connectors
WATER HEATER
T&P Relief Valves
Tempering Valves
Pressure Reducing Valves
Expansion Tanks
Anti‐Scale Systems

5. 5
Commercial Applications
WASTEWATER (DRAINAGE) SYSTEM
Roof Drains
Floor Drains
Trench Drains
Fixture Carriers
Hydrants
Acid Waste Systems
Double Containment Piping Systems
Rainwater Harvesting Systems
Interceptors
Cleanouts
ALTERNATIVE
ENERGY
Solar Control
Packages
HVAC SYSTEM
Commercial Boilers
Water Heaters
Expansion Tanks
Gauges & Thermometers
Balancing Valves
Safety Relief Valves
Anti‐Scale Systems
Electronic Temperature Controls
Tempering Valves
Backflow Preventers
Radiant Snow Melting Systems
Hydro‐control Panels
Steam Traps
Strainers
Feed Water Regulators
Manifolds
FOOD SERVICE APPLICATIONS
Movable Gas Connectors
Water Filtration Systems
Anti‐Scale Systems
Gas and Water Shutoff Valves
Commercial Faucets
Gas Regulators
Thermostatic Mixing Valves
Grease Interceptors
Stainless Steel Piping and Drains
POTABLE WATER SYSTEM
Water Heaters
Gas Connectors
Reverse Osmosis Water
Filtration System
Water Softeners
Backflow Preventers
Water Pressure Reducing Valves
Anti‐Scale Systems
T&P Relief Valves
Tempering Valves
Monitoring and Turbidity Monitors
Strainers
Butterfly Valves
Water Hammer Arrestors
UL/FM Fire Service Strainers
Automatic Control Valves
Pre‐Engineered Valve Stations
Gate Valves
FIRE PROTECTION SYSTEM
Backflow Preventers
Transition Risers
Relief Valves
Check Valves
IRRIGATION SYSTEM
Backflow Preventers
Backflow Enclosures
Automatic Control
Valves
Shutoff Valves
Butterfly Valves
Relief Valves
Water Pressure Reducing
Valves
… Unmatched in the Industry

6. 6
Investment Thesis
Winning With Commercial, Operational and Innovation Excellence
8/4/2016
Strengthening the
Foundation
Multi-year transformation underway  Enhanced portfolio
and more efficient organization; ongoing tailwind
Aligned to
Favorable Macros
and Markets
Leading market positions in residential and commercial
water, addressing global secular macro themes
Focus On
Innovation and
Profitable Growth
Leveraging components to broaden application solutions
offering  Investment continues, fueling growth
Accretive Capital
Deployment
Strong cash flow and efficient capital structure enables
more deployment upside; disciplined acquirer

7. 7
Multi-year Transition Underway
8/4/2016
Multi-Year Restructuring Tailwind Helping To Offset Macro Challenges
European Restructuring
● Realigned Cost
Structure to Demand
● Footprint Optimization
● Sourcing Excellence
Americas / Asia
Transformation
● Exited Non-core
Products
● Footprint Optimization
● Sourcing Excellence
Continue to Drive
Productivity; Reinvest
for Growth
● One Watts
● Innovation /
Application Solutions
2013 - 2014
2015 - 2016
2017 & Beyond

8. 8
Attractive End Markets
Balanced Portfolio Providing Tailwind For Growth
8/4/2016
Residential Multi Family /
Commercial
Light / General
Industrial
Healthcare Hospitality Institutional /
Educational
Specialty Products and Systems that Conserve and Safeguard the Flow of Fluid and Energy
Verticals
End
Markets

9. 9
Aligned To Favorable Macro Trends
Addressing Global Secular Macro Themes
8/4/2016
• Code & specification
driven
• Extensive certification
process
• Emerging need globally
SAFETY & REGULATION ENERGY EFFICIENCY WATER CONSERVATION
• Environmental &
emotional drivers
• Code & specification
driven
• Emerging global demand
• Economic and
environmental value
proposition
• Application &
engineering
competencies critical

10. 10
Significant Margin Improvement
“Self Help” Story Drives Earnings Growth
+ Strong
Incremental
Sales Conversion
+ Commercial
Excellence
+ Operational
Excellence
+ Global Sourcing
Baseline
~10%
14% +
Operating
Margins
+ Transformation
Initiatives
+ Portfolio
Optimization
Volume Productivity Restructuring
Operating Margin Opportunity Next 5 Years

11. 11
Strong Cash Generation Drives Deployment Upside
Disciplined Capital Deployment
• Investing in high ROI CAPEX
- Reinvestment ratio 80-100%
• Strategic M&A
- Selective acquirer; disciplined valuation
and screening process
• Pay a competitive dividend
- Consistent double-digit increases
• Stable share buyback
- Offset option dilution at minimum
STRONG CASH GENERATION DEPLOYMENT PRIORITIES
2015E 2019T
>100% FCF
Conversion

12. 12
Summary
Stronger Foundation Delivering Long-term Value Creation
8/4/2016
• ~$1.5B Enhanced Water Portfolio
• Global Leading Brands in Highly
Fragmented Industry
• Broad Solutions Across Balanced
Geographies & End Markets
• Strong Presence in Repair/Replace &
New Construction
• Strong Financial Position & Cash
Flow Generation
• Disciplined Capital Allocation
• Grow Faster than Served Markets
• Earnings Growth through Commercial
and Operational Excellence
• Re-investment in Innovation To Drive
Growth and Margin Upside
• >100% Free Cash Flow Generation
• Accelerate Growth through
Disciplined Acquisitions
• Return Excess Cash to Shareholders
WHO WE ARE OUR COMMITTMENTS