#1Pelay Box Sentry Aer WATTS WATER INVESTOR PRESENTATION OCTOBER 2023 Control Bes WWATTS Option 22 Cardigans WATTS Watts Water Technologies, Inc. (R) 1910#2FORWARD LOOKING STATEMENTS WWATTS Ⓡ 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, effective tax rate, capital expenditures, cash flow, water market growth, acquisition strategy, the impact of the Ukraine War, supply chain disruptions, inflation 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 of which 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 our most recent Annual Report on Form 10- K and in subsequent reports filed with the SEC. WTS Investor Presentation | 2#3KEY THEMES 1. $2B Global Company with Leading Market Positions 2. Leader in Commercial and Residential Water Products WITTE wall ROGERS 30 \\\\\WATTS *67% 6:25 Monday, May 14 2h ago 3. Industry-leading Brands; Key Market Drivers, Plumbing Codes 4. Driving Profitable Growth through Innovation and Smart & Connected Strategy 5. Strong Cash Generator; Disciplined Capital Deployment MAIL [email protected] Water Leak Dectected on Invita Hello, Your device named Invita at the location tekmar has received an error: Wa... Press home to unlock GOD WTS Investor Presentation | 3#4WATTS WATER SNAPSHOT (NYSE: WTS) $7.13 Adj. EPS 16.4% 2022 Key Statistics With 5 Year Performance $1.16 115% Adj. Operating Margin Dividends 5-yr Avg Free Cash Flow Conversion 23.3% ROIC (GAAP) +19% CAGR +450 bps Expansion +9.1% CAGR +1540 bps Expansion Revenue by Geography 25% 5% 70% Revenue by End Market 40% 60% WWATTSⓇ 109% 5-yr Avg Reinvestment Revenue by End Market O 60% 40% 50% Single family 50% Multi family ■ Americas Europe -АРМЕА See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures ■Repair & Replace ■New Construction ■Non-Residential ■ Residential Global Leader in Commercial and Residential Water Products; Driving a Performance Culture WTS Investor Presentation | 4#5VALUE PROPOSITION ALIGNED WITH LONG-TERM SECULAR GROWTH TRENDS Safety & Regulation 260 Energy Efficiency SF Benchmark WWATTSⓇ Water Conservation Provide the highest levels of performance in the safeguarding of water systems • • Code and specification driven Extensive certification process Emerging need globally Offer the most efficient conversion of energy sources into useful heat and hot water • Market Characteristics Large and fragmented Economic and environmental value proposition Application and engineering competencies critical Deliver drainage and pre-treatment systems that meet the design challenges of a water scarce world • Code and specification driven Environmental drivers Emerging need globally Best-in-class service Specialty Products and Systems that Conserve and Safeguard the Flow of Fluid and Energy D" S&D WTS Investor Presentation | 5#6LARGE ADDRESSABLE MARKET WITH EXPOSURE TO DIVERSE END MARKETS ~$15B Total Available Market Opportunity1 END MARKETS WWATTSⓇ RESIDENTIAL MULTI-FAMILY / COMMERCIAL INSTITUTIONAL / EDUCATIONAL HEALTHCARE LIGHT/GENERAL INDUSTRIAL HOSPITALITY - HOTEL HOSPITALITY - DATA CENTERS FOOD SERVICE 1 Based on Company estimates of global market. Balanced Portfolio Providing Tailwind For Growth WTS Investor Presentation | 6#7COMMERCIAL OFFERINGS ~60% of Sales; More Complexity/ Systems Surfouch 74 Guestroom SunTouch BLÜCHER POWERS Public Restroom Safety Thermostatic Mixing Valves • Floor Drains ⚫ Closet and Lavatory Carriers WWATTS POWERS BLÜCHER ENWARE WWATTSⓇ Fire Protection Systems Cross Connection Systems Automatic Control Valves • Isolation Valves WWATTS® AMES PIRE & WATERWORKS Commercial Kitchens Gas Connectors Point of Use Filtration Systems Stainless Steel Drains Backflow Preventers WATTS Dormont BLUCHER Water Quality (Point of Entry) OneFlow Anti-Scale Systems • Water Softeners SmartStream UV System Water Safety (Point of Entry) Backflow Preventers Automatic Control Valves • Pressure Reducing Valves ⚫ Ball, Gate, & Butterfly Valves Irrigation Backflow Preventers Pressure Regulating Valves Isolation Valves Boiler / Mechanical Room Hot Water Heaters / Boilers • Digital Thermostatic Mixing Stations ⚫ Boiler & Pump Controls \\WATTS® WATTS FEBCO Driveway/Sidewalk Electronic Temperature Controls • Snow Melt Hydronic Systems • Manifolds tekmarⓇ WWATTS Drainage / Rainwater Harvesting Cast Iron and Stainless Drains & Pipe Rainwater Harvesting Roofs, Parking Garages, Bathrooms, Kitchens Leak Detection Wireless Leak Detection & Notification Systems BLÜCHER WWATTS ORION kr POWERS PVi CAERCO tekmar® Lync WTS Investor Presentation | 7#8RESIDENTIAL OFFERINGS ~40% of Sales; Product Range Unmatched Kitchen Undersink Thermostatic Mixing Valves • Reverse Osmosis Water ⚫ Filtration Systems ⚫ Electric Tile Warming ⚫ SmartSense Excess Flow Valve & Thermal Shutoff WWATTS Dormont Living Room Control Panel / Thermostat ⚫ Radiant Underfloor Heating Leak Detection Wireless Leak Detection LEAK DEFENSE A WATTS Brand 70 tekmar® WWATTS Bathroom . Tempering Valves • Electric Tile Warming Stainless Steel Shower Drains Hot Water on Demand Recirculation BLÜCHER WWATTS POWERS SunTouch Laundry Room SmartSense Anti-Scale Systems Gas Ball Valves & Connectors Excess Flow Valve & Thermal Shutoff ⚫ IntelliFlow Automatic Washing Machine Shutoff Valves Dormont WATTS Driveway/Sidewalk Snow Melt Hydronic Systems Electronic Temperature Controls ⚫ Manifolds • Quick Connect Fittings Hydrocontrol Panels • PEX Tubing Water Safety (Point of Entry) Backflow Preventers Pressure Reducing Valves Irrigation Backflow Preventers Pressure Reducing Valves • Flow Control Valves Boiler / Furnace Room T&P Relief Valves • Tempering Valves • Pressure Reducing Valves • Expansion Tanks • Temperature & Pressure Gauges Air Separators SunTouch 74° 74 tekmar® SunTouch OVAO WATTS MELT WWATTS FEBCO WATTS® Water Quality (Point of Entry) Whole House Filtration Systems Anti-Scale Systems Water Softeners • SmartStream UV Disinfection Systems SmartStreem UV WWATTS® WWATTS WWATTS POTABLE WATER EXPANSION TANK WATTS WTS Investor Presentation | 8#9WATTS STRATEGIC FRAMEWORK B Continue to Grow Organically Drive Operational Efficiencies & Improvement across All Key Processes Employ Disciplined & Balanced Capital Allocation Strategy WATTS WTS Investor Presentation | 9#10ORGANIC GROWTH INITIATIVES New Product Development Utilizing single streamlined product development process Leveraging Voice of Customer to drive product innovation Driving Smart & Connected strategy Advancing solutions that address market needs Geographic Expansion Cross-selling existing products into new regions Targeting countries with well-established plumbing codes Influencing plumbing code improvements in developing countries Key Account Management & Commercial Excellence Expanding relationships with large customers ■ Leveraging integrated business model to cross sell Providing training in 10 state- of-the-art Watts Works Learning Centers Ⓡ WWATTS TIM Growing Organically Through Innovation and Commercial Excellence WTS Investor Presentation | 10#11SMART AND CONNECTED STRATEGY PROGRESS syncta WWATTS CONNECT CONTROL. CONSERVE. THE DETECTIONGROUP THE DETECTIONGROUP ΤΟ WWATTS 19% Smart & Connected Revenues in 2022 PAST Launched digital journey Limited use of internal digital resources No pipeline of projects PRESENT Dedicated organizational structure deployed to support loT Strategic alignment with all business units 100+ Dedicated digital / IoT engineers 20 new smart & connected products introduced in 2022 FUTURE Improve use of data to enhance customer experience Continue to focus on key customer issues System Safety | Water Hygiene Energy Efficiency | Leak Detection Expand subscription-based services 25% Smart & Connected Revenues by end of 2023 Continuing to Drive Our Smart & Connected Strategy WTS Investor Presentation | 11#12DRIVING ONE WATTS PERFORMANCE SYSTEM (OWPS) WWATTS OWPS Focus Areas ✓ VOC drives new product development Gross productivity project funnel growth ✓ Business process efficiencies ✓ Locating production close to customers ✓ Ensuring a “safety first" culture ✓ Providing world class quality Committed to great customer service - "On time in full" ✓ Improving working capital CULTURE How We Act STRATEGY How We Win CUSTOMER 校 PROCESS How We Work ONE WATTS® PERFORMANCE SYSTEM OWPS is a collection of tools, processes and behaviors that help us grow and develop Creating Customer Focused Culture WTS Investor Presentation | 12#13SUSTAINABILITY IS A CORE COMMITMENT WWATTS Highlights ✓ Improved Sustainalytics ESG score by 24%, promoting Watts to low-risk ✓ Issued Human Rights Policy aligned with UN Global Compact ✓ Joined CEO Water Mandate, expanding commitment to water stewardship Name by Newsweek as one of America's Most Responsible Companies for 4th consecutive year ✓ Named by USA Today as one of America's Climate Leaders Solving Sustainability for Our Customers Watts ESG Story Aligning our "Triple Play" with secular growth trends • Safety and Regulation 74% of products contribute to health and safety → Energy Efficiency →24% of products improve energy efficiency Water Conservation →37% of products contribute to water conservation Leading Employer & Community Partner • Making people and communities safe, healthy and strong Prioritizing a culture of safety at all facilities • Investing in global leadership and inclusivity training for all employees Improving communities by expanding water stewardship, conserving energy and by reducing waste and emissions at our sites Sustainability Report USA TODAY AMERICA'S MOST 2020, 2021, 2022, 2023 RESPONSIBLE COMPANIES Newsweek AMERICA'S CLIMATE LEADERS statista WWATTS 2023 statista Earning the Trust of Our Stakeholders 0 Operating ethically, responsibly and sustainably Adhering to highest level of ethical standards, with robust governance Acting with integrity in every facet of our operations Managing our supply chain for conformance to our ESG standards Sustainability Is A Core Commitment WTS Investor Presentation | 13#14ENGAGED AND ACCOUNTABLE BOARD OF DIRECTORS Craig Kissel Lead Independent Director Retired President of Trane Commercial Systems, American Standard Joined: 2011 Christopher Conway Retired President, CEO and Chairman of the Board, CLARCOR Inc 2015 Michael Dubose Retired President, Fisher Healthcare Division, Thermo Fisher Scientific Inc. 2020 David Dunbar President and CEO, Standex International Corp. 2017 Louise Goeser Retired President and CEO, Grupo Siemens S.A. de C.V. 2018 Joseph Noonan eCommerce Entrepreneur; Horne Family Member 2013 Bob Pagano CEO, President and Chairperson of the Board Watts Water 2014 Merilee Raines Retired CFO, IDEXX Laboratories, Inc. 2011 WWATTS Ⓡ Board Skillsets and Attributes Operational and C-Suite Experience International Markets Exposure Public Company Board Experience Global Manufacturing Relevant End Market Exposure Business Ethics eCommerce / Digital Finance / M&A Joseph Reitmeier EVP and CFO, Lennox International Inc. 2016 62 YEARS Avg. Age 8 YEARS Avg. Tenure Director Skillsets and Attributes Support Our Long-term Strategy WTS Investor Presentation | 14#15BALANCED CAPITAL DEPLOYMENT Deployment History 2018-2022 $160 ~40% $69 Growth -60% $150 Returned to Shareholders $165 Priorities Strategic M&A Disciplined valuation / screening process Investing in High ROI Capex WWATTS ~70% of Capex invested in growth and productivity initiatives ■ Reinvestment ratio 100%+ Competitive Dividend ■ 9.1% 5-year CAGR through 2022 ■ Increased dividend 20% effective June 2023 to $1.44/share annual dividend, 0.8% yield 1 Stable Share Buyback ■ Offset stock dilution at minimum ■ New repurchase program announced in August 2023 for $150M M&A Capex Dividend ■Share Buyback Strong Cash Flow Generation Provides Flexibility 1 Yield as of 11/1/23 WTS Investor Presentation | 15#16M&A STRATEGY WWATTSⓇ STRATEGIC CRITERIA Core or Related Complementary Markets Entry into New Markets and Geographies FINANCIAL CRITERIA ROIC Cost of Capital Addresses Macro Themes Safety and Regulation Energy Efficiency ■ Water Conservation Increase in Shelf Space with Existing Customers Accretive to EPS in Year 1 Brand Name Products, Market Leadership Product Offering Expansion, Including New / Improved Technology Accretive to EBITDA Margin within 3 - 5 Years Disciplined Acquisitions Generate Incremental Growth WTS Investor Presentation | 16#17FLEXIBLE BALANCE SHEET $M Cash September 24, 2023 Debt Maturity Schedule $363 No Debt Due Until 2026 Other Current Assets 679 Non-Current Assets 976 TOTAL ASSETS $2,018 Current Liabilities, excl. Short-term Debt $380 Non-Current Liabilities 88 $100 Revolving Credit Facility Debt 98 Equity TOTAL LIABILITIES & EQUITY 1,452 $2,018 Net Debt Capitalization Ratio (22.3%) 2023 2024 2025 2026 Unused and available credit capacity $688M on September 24, 2023 Capacity to Execute on Strategic Growth \\WATTS WTS Investor Presentation | 17#18Q4 AND FULL YEAR 2023 OUTLOOK* Q4 2023 Organic Growth -6% to -1% Acquired sales ~$9M Enware; ~$30M Bradley Full Year 2023 Flat [Prior -2% to +2%] Acquired sales ~$26M Enware; ~$30M Bradley Corporate Costs WWATTSⓇ Other Key Full Year Inputs ~$54M Adj Op Margin Adj Margin Growth 15.0% to 15.6% +70 bps to +130 bps Acquired dilution ~10bps Enware; ~80bps Bradley Total 17.6% to 17.7% [Prior 16.7% to 17.3%] +120 bps to +130 bps [Prior +30 bps to +90 bps] Acquired dilution ~20bps Enware; ~20bps Bradley Includes $22M of incremental investments Net Interest Expense ~$2M Bradley acquisition interest ~$3M Effective Tax Rate -25% Free Cash Flow Seasonally Strong ≥ 100% of Net Income [Prior Same] CAPEX/ D&A ~$35M/$45M Bradley acquisition D&A ~$2M to ~$3M FX Euro / $ 1.06 1.08 Share Sales (+$6M); EPS (~+$0.02) Sales (+$8M); EPS (~+$0.03) Count See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures *As of November 1, 2023 ~33.5M Shares WTS Investor Presentation | 18#19OUR LONG-TERM ASPIRATIONS Organic Growth 1% Above Market WWATTS Operating Margin Expansion Emphasis on Growth 30-50 bps per Year Supported by M&A Focus in Selected Emerging Markets Build a High Performance "Connected Water and Heating Solutions" Company WTS Investor Presentation | 19#20COMPELLING INVESTMENT THESIS مسا WWATTSⓇ Z Recognized Leader Global reach with leading market positions in commercial and residential water space Aligned to Long-term Secular Trends and Diverse Markets Addressing global secular macro themes Large installed base; strong repair and replacement footprint Focus on Innovation and Profitable Growth Strong execution drove record 2022 performance Continuing investment in smart and connected portfolio in 2023 Accretive Capital Deployment and Strong Balance Sheet Targeting >100% cash conversion with efficient capital structure Balanced capital allocation Resilient Business Model Tested Across Economic Cycles 2023 outlook reflects challenging global macros and difficult comps Maintaining long-term strategy WTS Investor Presentation | 20#21Watts Smart and Connected Solutions Flood Pr Our future. Your future. deinde efd waste beach are matin stars Thats why ou smat hamed of gas better to a concedes and patice and as tea ca ng eaty and st conected secure pustet sistem ondre hose Stengor CONNECT CONTROL CONSERVE WATTS CONNECT CONTROL CONSERVE WWATTS of Things (IoT): Powered By Connections internet What can lo7 do for me? Dourados tee e-book to better underster As you stat tonice modem tech in plumbing and your customers Download E-book ano rand Present Case Study IntelliStation to the Digtal mid beasts guest satis push the Bits of the hote Read the Case Study WATTS Appendix WWATTS WTS Investor Presentation | 21#22RECONCILIATION OF GAAP TO NON-GAAP MEASURES (M) (Unaudited) Third Quarter Nine Months 2023 2022 2023 2022 Net Sales $504.3 $487.8 $1,508.8 $1,477.6 Operating income - as reported $87.1 $80.4 $272.2 $247.8 Operating margin % 17.3% 16.5% 18.0% 16.8% Adjustments for special items: Restructuring $0.4 $1.7 $1.7 $4.4 Acquisition related costs $3.1 $5.0 Operating income - as adjusted $90.6 $82.1 $278.9 $252.2 Adjusted operating margin % 18.0% 16.8% 18.5% 17.1% Net income as reported $65.8 $58.7 $206.4 $182.9 Adjustments for special items - tax effected: Restructuring $0.3 $1.3 $1.2 $3.3 Acquisition related costs $2.3 $3.6 Net income as adjusted $68.4 $60.0 $211.2 $186.2 Earnings per share Diluted earnings per share - as reported $1.96 $1.75 $6.15 $5.43 Adjustments for special items $0.08 0.04 $0.15 0.10 Diluted earnings per share - as adjusted $2.04 $1.79 $6.30 $5.53 WWATTSⓇ WTS Investor Presentation | 22#23RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT TO CAPITALIZATION RATIO (M) (Unaudited) Current portion of long-term debt Plus: Long-term debt, net of current portion Less: Cash and cash equivalents Net debt WWATTS September 24, 2023 December 31, 2022 $ - $ - 98.2 147.6 (362.7) (310.8) ($264.5) ($163.2) Net debt ($264.5) ($163.2) Plus: Total stockholders' equity 1,452.0 1,300.6 Capitalization $1,187.5 $1,137.4 Net debt to capitalization ratio (22.3%) (14.3%) WTS Investor Presentation | 23#24RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES INCLUDED IN 2023 OUTLOOK* As of November 1, 2023 Net Sales Fourth Quarter 2023 Full Year 2023 Reported net sales growth +3% to +8% +3% Forecasted impact of acquisition / FX (9)% (3)% Organic net sales growth -6% to -1% Flat Operating Margin Operating margin range Forecasted restructuring / other costs Adjusted operating margin range 14.0% to 14.6% 17.0% to 17.1% 1.0% 0.6% 15.0% to 15.6% 17.6% to 17.7% WWATTS WTS Investor Presentation | 24