Investment Presentation

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Forward Looking Statements

Certain statements in this presentation constitute forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995.

These statements are related to forecasts of sales, market dynamics and 2015guidance update, capital expenditures, costs and savings associated with realignmentactivities, lead free developments and management goals and objectives.

Watts cautions investors that any such forward-looking statements made by Watts arenot guarantees of future performance. All forward-looking statements are subject toknown and unknown risks, uncertainties and contingencies, many that are beyond thecontrol of Watts, which may cause actual results, performance or achievements todiffer materially from anticipated future results, performance or achievementsexpressed or implied by the forward-looking statements.

Factors that might affect forward-looking statements include overall economic andbusiness conditions, competitive factors, changes in laws affecting Watts, futureacquisitions of material assets or businesses by Watts, the demand for Watts’ productsand services and other factors identified in Watts’ most recent Annual Report on Form10-K and subsequent reports filed with the SEC.

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Who We Are

Global Leader in Residential and Commercial Water Products7/22/2016

• $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

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Residential Applications

One of the Broadest Product Offerings …7/22/2016

BATHROOMTempering Valves for Tubs, Showers and SinksElectric Tile WarmingHot Water On Demand Recirculation SystemsToilet Fill Valves

KITCHENUndersink Guardian Thermostatic Mixing ValvesReverse Osmosis Water Filtration SystemsIce Maker Filtration SystemsElectric Tile Warming

ALTERNATIVE ENERGYSolar Control PackagesGeothermal Control Packages

LAUNDRY ROOMAutomatic Washing Machine Shutoff ValvesWater Hammer ArrestorsAnti‐Scale SystemsGas Ball ValvesGas Connectors

BOILERTemperature and Pressure GaugesTempering ValvesSafety Relief ValvesFill ValvesBackflow PreventersBoiler DrainsAir SeparatorsFlow Control ValvesFloat Vents

Anti‐Scale SystemsWater SoftenersUV Disinfection SystemsWhole House Filtration Systems

WATER QUALITY

RADIANT HEAT PRODUCTSRadiant Underfloor Heating SystemsSnowmeltingElectronic Temperature Controls Quick Connect FittingsHydrocontrol PanelsPEX TubingManifolds

Backflow PreventersBall ValvesDrain TubesFloor DrainsGas Connectors

WATER HEATERT&P Relief ValvesTempering ValvesPressure Reducing ValvesExpansion TanksAnti‐Scale Systems

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Commercial Applications

WASTEWATER (DRAINAGE) SYSTEMRoof DrainsFloor DrainsTrench DrainsFixture CarriersHydrants

Acid Waste SystemsDouble Containment Piping SystemsRainwater Harvesting SystemsInterceptorsCleanouts

ALTERNATIVEENERGYSolar ControlPackages

HVAC SYSTEMCommercial BoilersWater HeatersExpansion TanksGauges & ThermometersBalancing ValvesSafety Relief Valves

Anti‐Scale SystemsElectronic Temperature ControlsTempering ValvesBackflow PreventersRadiant Snow Melting SystemsHydro‐control PanelsSteam TrapsStrainersFeed Water RegulatorsManifolds

FOOD SERVICE APPLICATIONSMovable Gas ConnectorsWater Filtration SystemsAnti‐Scale SystemsGas and Water Shutoff ValvesCommercial FaucetsGas RegulatorsThermostatic Mixing ValvesGrease InterceptorsStainless Steel Piping and Drains

POTABLE WATER SYSTEMWater HeatersGas ConnectorsReverse Osmosis WaterFiltration SystemWater SoftenersBackflow PreventersWater Pressure Reducing Valves

Anti‐Scale SystemsT&P Relief ValvesTempering ValvesMonitoring and Turbidity MonitorsStrainersButterfly ValvesWater Hammer Arrestors

UL/FM Fire Service StrainersAutomatic Control Valves Pre‐Engineered Valve StationsGate Valves

FIRE PROTECTION SYSTEMBackflow PreventersTransition RisersRelief ValvesCheck Valves

IRRIGATION SYSTEMBackflow PreventersBackflow EnclosuresAutomatic Control ValvesShutoff ValvesButterfly ValvesRelief ValvesWater Pressure Reducing Valves

… Unmatched in the Industry

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Investment Thesis

Winning With Commercial, Operational and Innovation Excellence7/22/2016

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

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Multi-year Transition Underway

7/22/2016

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

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Attractive End Markets

Balanced Portfolio Providing Tailwind For Growth7/22/2016

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

Vert

ical

sEn

d M

arke

ts

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Aligned To Favorable Macro Trends

Addressing Global Secular Macro Themes 7/22/2016

• 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

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Significant Margin Improvement

“Self Help” Story Drives Earnings Growth

+ Strong Incremental Sales Conversion

+ Commercial Excellence

+ Operational Excellence

+ Global SourcingBaseline

~10%

14% +

Operating

Margins

+ Transformation Initiatives

+ Portfolio Optimization

Volume Productivity Restructuring

Operating Margin Opportunity Next 5 Years

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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

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Summary

Stronger Foundation Delivering Long-term Value Creation7/22/2016

• ~$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