- Watts Water Technologies held an earnings conference call to discuss its 4Q and FY 2016 results. - In 4Q 2016, sales decreased 5% to $342.0 million due to unfavorable foreign exchange and the exit of undifferentiated products, while operating profit increased 5% to $37.2 million from productivity gains and restructuring savings. - For FY 2016, the company achieved record operating margin of 11.4% and EPS of $2.67, up 130 bps and 11% respectively, through transformation initiatives and the PVI acquisition.

1. Watts Water Technologies
4Q and FY 2016 Earnings Conference Call
February 10, 2017
© 2017 Watts Water Technologies, Inc.

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, margins, earnings, earnings per share, capital expenditures,
water market growth, acquisition strategy, 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 “Item 1A. Risk Factors” in Watts’ most recent Annual
Report on Form 10-K and in subsequent reports filed with the SEC.
© 2017 Watts Water Technologies, Inc.2/9/2017 2

3. Overview
Continued Improvement; Shaping the Future
© 2017 Watts Water Technologies, Inc.2/9/2017 3
2016 – Substantial progress in multi-year transformation
2017 – Pivoting toward growth
• Realigned leadership / platforms; drove One Watts culture
• Focused on customer / commercial excellence
• Executed transformation initiatives; remain on track
• Pursued balanced capital deployment; enhanced portfolio with PVI acquisition
• Record operational & EPS performance; margin +130 bps, 120%+ FCF conversion
• Drive long-term top line growth initiatives and continued margin expansion
• Execute on commercial and operational programs
• Continue reinvestment initiatives to fund future growth
• Complete Transformation – Phase 2
• Deploy capital in disciplined and balanced manner

4. Regional Update
2/9/2017 © 2017 Watts Water Technologies, Inc. 4
Markets Remain Mixed
Region % of Revenue Commentary
AMERICAS
EMEA
ASIA-PACIFIC
• US GDP strengthening; Canada slowing
• Institutional, office up; commercial down
• Residential moderating
• New administration – policy uncertainty
• Eurozone GDP nominal reduction
• Emerging markets slight improvement
• Euro FX under pressure
• Geopolitical concerns continue
• Asia-Pacific GDP moderate growth in 2017
• China GDP still robust at 6.5%
• China residential, commercial growth
• China yuan devaluation

5. 4Q 2016 Financial Overview
2/9/2017 © 2017 Watts Water Technologies, Inc. 5
Continued Strong Margin & EPS Expansion
• 5% sales decrease
‒ Organic (5%), flat excluding shipping days
‒ Undifferentiated products exit (3%)
‒ FX (1%)
+ Acquired +4%
• 5% operating profit increase
− Favorable product mix, productivity &
restructuring savings offset by incremental
investments
• 100 bps operating margin expansion
• 8% EPS increase; record performance
+ Operational / acquisitions +$0.05
+ Interest +$0.01
‒ Exit of undifferentiated products ($0.01)
4Q16 4Q15
Sales $342.0 $358.3
Operating Profit
(1)
$37.2 $35.4
Margin % 10.9% 9.9%
Net Income
(1)
$22.2 $20.6
EPS
(1)
$0.64 $0.59
Tax Rate 32.9% 33.2%
Comments
(1) Organic sales growth, Operating Profit, Operating Margin, Net Income and EPS are non-GAAP financial measures, see slides 16 and 17 for reconciliation
(M)

6. Americas
2/9/2017 © 2017 Watts Water Technologies, Inc. 6
Mix, Productivity Drives Margin Improvement
(M)
Operating Margin
(1)
Sales
15.3%
14.3%
4Q16 4Q15
$223.3
$233.3
4Q16 4Q15
• Operating profit(1)
$34.2M
− Up $1M or 3%
• Operating margin up 100 bps
+ Sales mix
+ Productivity
‒ Investments
‒ PVI dilutive, as expected
• Organic growth flat (excluding shipping days)
• Backflow / valves & drains offsetting softness in
Canada / specialty products
• Undifferentiated products / retail erosion ($11M)
• Heating & Hot Water Solutions flat; sequential
improvement
• PVI contributed $9M of sales
Up 100 bpsDown (4%)
Organic(1)
flat
(1) Organic sales growth, Operating Profit and Operating Margin are non-GAAP financial measures, see slides 16 and 18 for reconciliation

7. EMEA
2/9/2017 © 2017 Watts Water Technologies, Inc. 7
Margin Compression Primarily Driven by Lower Volume
Operating Margin
(1)
Sales
• Operating profit(1)
$8.8M
− Down ($1.4M)
• Operating margin down (50 bps)
‒ Volume
‒ Sales mix
+ Productivity (transformation, restructuring)
• Fluid Solutions flat; Drains down 3%
• Electronics continued solid growth
• Growth in Italy
• France, Germany & Eastern Europe down
• FX impact ($3M) or (2%)
Down (50 bps)Down (8%)
Organic(1)
(1%)
8.5%
9.0%
4Q16 4Q15
$104.1
$113.4
4Q16 4Q15
(1) Organic sales growth, Operating Profit and Operating Margin are non-GAAP financial measures, see slides 16 and 18 for reconciliation
(M)

8. Asia-Pacific
2/9/2017 © 2017 Watts Water Technologies, Inc. 8
Another Good Quarter For Asia-Pacific
Operating Margin
(1)
Sales
• Operating profit(1)
$2.1M
− Up $1.4M
• Operating margin + 840 bps
+ Volume
+ Productivity
‒ ~6% lower affiliate sales
• 18% organic growth
- China +12%
- Outside China +34%
• Residential heating sales up; commercial valve
sales down
• Acquired sales +$3.7M; undifferentiated
products ($1M)
Up 840 bpsUp 26%
Organic(1)
+18%
14.4%
6.0%
4Q16 4Q15
$14.6
$11.6
4Q16 4Q15
(1) Organic sales growth, Operating Profit and Operating Margin are non-GAAP financial measures, see slides 16 and 18 for reconciliation
(M)

9. Todd Trapp |
Full Year 2016 Financial Summary
2/9/2017 © 2017 Watts Water Technologies, Inc. 9
Record Margin & EPS Performance
$1.40
$1.47
2016 2015
11.4%
10.1%
2016 2015
$2.67
$2.41
2016 2015
(1) Organic sales growth, Operating Margin and EPS are non-GAAP financial measures, see slides 16 and 17 for reconciliation
Sales ($B)
~ (5%)
Organic(1)
+1%
Operating Margin(1)
+130 bps
EPS(1)
~11% Growth

10. Cash Flow
2/9/2017 © 2017 Watts Water Technologies, Inc. 10
Delivered 121% FCF Conversion
FCF = Cash Flow from Operations less Capital Expenditures. Adjusted Free Cash Flow excludes impact of long-term obligation settlements. Both are non – GAAP measures. See slide 19 for calculations.
• Working capital performance neutral
• Cap-ex up ~30%; productivity & growth
investments
• Expanded credit capacity to $800M
• Returned ~$51M to shareholders
• One-time liability settlements ($49M) impacting
2015 reported cash flow
CommentsFY 2016 FY 2015
Net income (loss) 84.2$ (112.9)$
Depreciation and amortization 51.2 52.5
Change in working capital and other 2.7 169.8
Total operating activities 138.1 109.4
Capital expenditures, net of proceeds (35.9) (27.6)
Acquisitions, asset sale & other (78.1) 10.3
Total investing activities (114.0) (17.3)
Net proceeds (payments) on long-term debt 72.5 (6.0)
Dividends (24.5) (23.1)
Payments to repurchase common stock (26.8) (44.6)
Debt issue costs (2.1) -
Proceeds and tax benefit of stock option activity 8.6 2.8
Total financing activities 27.7 (70.9)
Effect of exchange rates (9.6) (26.1)
Net increase (decrease) in cash 42.2 (4.9)
Free cash flow - reported 102.2$ 81.8$
DSO 53.7 53.7DPO 46.2 46.2
Adjusted free cash flow 102.2$ 131.0$
(M)

11. 2017 Framework
2/9/2017 © 2017 Watts Water Technologies, Inc. 11
Challenging Macro Background
HEADWINDS TAILWINDSUNCERTAIN
• Transformation benefits
• PVI acquisition
• Asia-Pacific growth
• Pricing
• Investments
• Commodities
• FX – EUR/$
• 1H17 DIY sales erosion
• Continued portfolio
rationalization
• Europe stabilization and
elections
• US policy / legislative impact
on trade, taxes, spending

12. 2017 Outlook
2/9/2017 © 2017 Watts Water Technologies, Inc. 12
Continued Margin Expansion in Slow Growth Environment
Highlights / AssumptionsOrganic Sales Growth
AMERICAS Up Low Single Digits
Flat
Up Low Single Digits
Up High Single Digits
EMEA
Asia Pacific
WTS
• Incremental sales increase ~$25M
- PVI acquisition ~+$45M
- DIY erosion 1H17 ~ ($6M)
- Portfolio rationalization EMEA ($5M) / A-P ($9M)
• Targeting ~12% operating margin, +60 bps
- Incremental savings/investments consistent w/ 2016
- PVI operating margin high single digits during
integration
• Cap-ex. $36M - $40M
• Depreciation & amortization $50M-$52M
• Tax rate ~ 34%; Pegging € @ 1.05
• Buyback to offset dilution at a minimum; pay
competitive dividend

13. Summary
2/9/2017 © 2017 Watts Water Technologies, Inc. 13
Continued Productivity Offsetting Macro Challenges
• 2016 - Building on Foundation…Delivered on
Commitments
• 2017 - Macro Uncertainty; Expect Growth to Rebound 2H
• Forecasting Solid Margin Expansion while Reinvesting
• Deploying Capital in a Disciplined, Balanced Manner

14. Appendix
2/9/2017 © 2017 Watts Water Technologies, Inc.

15. Consolidated Statements of Operations
2/9/2017 © 2017 Watts Water Technologies, Inc. 15
Dec. 31,
2016
Dec. 31,
2015
B/(W) %
Net sales 342.0$ 358.3$ (16.3)$ -5%
Cost of goods sold 204.3 223.7 19.4 -
Gross profit 137.7 134.6 3.1 2%
40.3% 37.6% +2.7p
Selling, general & administrative expenses 106.5 112.7 6.2 6%
31.1% 31.5% +0.3p
Restructuring and other charges, net (0.4) 139.4 139.8 NM
Operating income (loss) 31.6 (117.5) 149.1 NM
9.2% -32.8% +42.0%
Other expense 4.5 4.5 - 0%
Income (loss) before income taxes 27.1 (122.0) 149.1 NM
Provision (benefit) for income taxes 9.6 (3.8) (13.4)
Net income (loss) 17.5$ (118.2)$ 135.7$ NM
Diluted income (loss) per share 0.51$ (3.41)$ 3.92$ NM
Fourth Quarter Ended
(M)

16. Reconciliation of Reported Sales to Organic Sales
2/9/2017 © 2017 Watts Water Technologies, Inc. 16
Unaudited
Americas EMEA
Asia-
Pacific Total
Reported net sales 4Q'16 $ 223.3 $ 104.1 $ 14.6 $ 342.0
Reported net sales 4Q'15 233.3 113.4 11.6 358.3
Reported change $ (10.0) $ (9.3) $ 3.0 $ (16.3)
Net sales %increase (decrease) -4% -8% 26% -5%
Decrease due to foreign exchange - 2% 4% 1%
Decrease due to divestitures 4% - 13% 3%
(Increase) due to acquisition -4% - -32% -4%
Subtotal 0% 2% -15% 0%
Organic sales increase (decrease) -4% -6% 11% -5%
%decrease due to shipping days 4% 5% 7% 5%
Organic Sales %increase (decrease) adjusted for shipping days* 0% -1% 18% 0%
* F o urth quarter 2016 o rganic sales were adjusted to include appro ximately 3 additio nal shipping days, as co mparable to the fo urth quarter o f 2015.
Americas EMEA
Asia-
Pacific Total
Reported net sales December 31, 2016 $ 900.9 $ 442.3 $ 55.2 $ 1,398.4
Reported net sales December 31, 2015 978.5 445.5 43.7 1,467.7
Reported change $ (77.6) $ (3.2) $ 11.5 $ (69.3)
Net sales %increase (decrease) -8% -1% 26% -5%
Decrease due to foreign exchange 0% 1% 4% 1%
Decrease due to divestitures 10% - 16% 7%
(Increase) due to acquisition -1% - -34% -2%
Subtotal 9% 1% -14% 6%
Organic sales increase (decrease) 1% 0% 12% 1%
Year
Fourth Quarter
(M)

17. Reconciliation of GAAP “As Reported” to the “Adjusted”
Non- GAAP Excluding the Effect of Adjustments for Special Items
2/9/2017 © 2017 Watts Water Technologies, Inc. 17
Dec 31, Dec 31, Dec 31, Dec 31,
2016 2015 2016 2015
Net sales $ 342.0 $ 358.3 $ 1,398.4 $ 1,467.7
Operating income (loss) - as reported $ 31.6 $ (117.5) $ 145.0 $ (90.1)
Operating margin % 9.2% -32.8% 10.4% -6.1%
Adjustments for special items:
Goodwill impairments 0.5 130.5 0.5 130.5
Acquisitions / divesture related costs 3.4 0.5 (4.7) 1.6
Restructuring / severance related costs (0.9) 8.9 4.7 21.4
Deployment costs related to tranformation activities 2.3 7.0 14.2 14.3
Pension other costs 0.3 6.0 0.3 70.7
Total adjustments for special items $ 5.6 $ 152.9 $ 15.0 $ 238.5
Operating income - as adjusted $ 37.2 $ 35.4 $ 160.0 $ 148.4
Adjusted operating margin % 10.9% 9.9% 11.4% 10.1%
Net income (loss) - as reported $ 17.5 $ (118.2) $ 84.2 $ (112.9)
Adjustments for special items - tax affected:
Goodwill impairments 0.4 126.8 0.4 126.8
Acquisitions / divesture related costs 2.0 0.3 (6.8) 0.9
Restructuring / severance (0.4) 5.6 3.2 13.9
Deployment costs related to tranformation activities 1.5 4.0 8.8 9.0
Pension / tax rate adjustments/other costs 1.2 2.1 2.6 46.7
Total adjustments for special items - tax affected: $ 4.7 $ 138.8 $ 8.2 $ 197.3
Net income - as adjusted $ 22.2 $ 20.6 $ 92.4 $ 84.4
Earnings (loss) per share - diluted
Diluted earnings (loss) per share - as reported $ 0.51 $ (3.41) $ 2.44 $ (3.24)
Adjustments for special items 0.13 4.00 0.23 5.65
Diluted earnings per share - as adjusted $ 0.64 $ 0.59 $ 2.67 $ 2.41
Year EndedFourth Quarter EndedUnaudited
(M)

18. Adjusted Operating Income by Segment
2/9/2017 © 2017 Watts Water Technologies, Inc. 18
Americas EMEA
Asia-
Pacific
Corp. Total Americas EMEA
Asia-
Pacific
Corp. Total
Reported GAAP operating income (loss) 31.4 7.6 2.1 (9.5) 31.6 19.3 (124.3) (1.4) (11.1) (117.5)
% of sales 14.1% 7.3% 14.4% 9.2% 8.3% -109.6% -12.1% -32.8%
Adjustments for special items 2.8 1.2 - 1.6 5.6 14.0 134.5 2.1 2.3 152.9
Adjusted operating income (loss) 34.2 8.8 2.1 (7.9) 37.2 33.3 10.2 0.7 (8.8) 35.4
% of sales 15.3% 8.5% 14.4% 10.9% 14.3% 9.0% 6.0% 9.9%
Americas EMEA
Asia-
Pacific
Corp. Total Americas EMEA
Asia-
Pacific
Corp. Total
Reported GAAP operating income (loss) 127.1 40.8 14.3 (37.2) 145.0 109.9 (98.6) (0.5) (100.9) (90.1)
% of sales 14.1% 9.2% 25.9% 10.4% 11.2% -22.1% -1.1% -6.1%
Adjustments for special items 15.9 4.6 (7.0) 1.5 15.0 25.8 139.6 6.0 67.1 238.5
Adjusted operating income (loss) 143.0 45.4 7.3 (35.7) 160.0 135.7 41.0 5.5 (33.8) 148.4
% of sales 15.9% 10.3% 13.2% 11.4% 13.9% 9.2% 12.6% 10.1%
Q4 2016 Q4 2015
FY 2016 FY 2015
(M)

19. Reconciliation of Net Cash Provided by Operating
Activities to Free Cash Flow and Adjusted Free Cash Flow
2/9/2017 © 2017 Watts Water Technologies, Inc. 19
Dec 31, Dec 31,
2016 2015
Net cash provided by operating activities - as reported 138.1$ 109.4$
Less: additions to property, plant, and equipment (36.0) (27.7)
Plus: proceeds from the sale of property, plant, and equipment 0.1 0.1
Free cash flow 102.2$ 81.8$
Net income (loss) - as reported 84.2$ (112.9)$
Cash conversion rate of free cash flow to net income 121.4% NM
Reported free cash flow 102.2$ 81.8$
Add back: payments made on long-term obligations - 49.2
Adjusted free cash flow 102.2$ 131.0$
ADJUSTED FREE CASH FLOW
Year Ended
(M)