Watts Water Technologies Investor Presentation — May 2021 - Watts Water Technologies

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1Q Earnings Conference Call

Certain statements inthispresentation constitute forward -looking statements within themeaning ofthePrivate Securities

Litigation Reform Actof1995 .

These statements arerelated toforecasts ofsales, margins, earnings, earnings pershare, capital expenditures, water

market growth, acquisition strategy, theimpact oftheCOVID -19pandemic, andmanagement goals andobjectives .

Watts cautions investors thatanysuch forward -looking statements made byWatts arenotguarantees offuture performance .

Allforward -looking statements aresubject toknown and unknown risks, uncertainties, and contingencies, many that are

beyond thecontrol ofWatts, which may cause actual results, performance orachievements todiffer materially from

anticipated future results, performance orachievements expressed orimplied bytheforward -looking statements .

Factors thatmight affect forward -looking statements include overall economic andbusiness conditions, competitive factors,

changes inlaws affecting Watts, future acquisitions ofmaterial assets orbusinesses byWatts, thedemand forWatts’

products andservices andother factors identified in“Item 1A.Risk Factors” inourmost recent Annual Report onForm 10-K

1Q Above Expectations; Leading Market Indicators Improving1Q Performance

•Solid results; better than anticipated

•Revenue tailwind of ~3% from South -Central U.S. freeze; easier APMEA comparison

•Cost controls / incremental sales drove adjusted operating margin expansion

•Strong free cash flow; renegotiated credit agreement in 2Q; announced 13% dividend increase

•Commodity inflation driving second price increase; supply chain constraints

•Continued investments for growth; increasing full year spend to $16M

•Announced potential Méry , France plant closure / sale

•Residential strength expected to continue

•Non-residential –R&R resilient, offsetting new construction air pocket in near -term

•Americas GDP increasing

•2Q –expecting strong YOY performance; easy COVID comparison, continued freeze benefit

•Full year outlook increased from strong start; focused on supply chain, inflation and vaccine rollouts

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