#1Pelay Box Sentry Aer WATTS WATER INVESTOR PRESENTATION MAY 2022 Control Bes WWATTS Option 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, water market growth, acquisition strategy, the impact of the COVID-19 pandemic, 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 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 our most recent Annual Report on Form 10- K and in subsequent reports filed with the SEC. May 5, 2022 © 2022 Watts Water Technologies, Inc. 2#3TODAY'S KEY THEMES 1. $1.8B 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) $5.52 Adj. EPS +83% Growth 2021 Key Statistics Growth Rates Since 2017 14.3% 7.3% Adj. Operating Margin +240 bps Growth Dividend CAGR Revenue by Geography 29% ■ Americas 4% Europe 67% -АРМЕА 37% 16.0% ROIC (GAAP) +810 bps 108% 5-yr Avg Reinvestment Ratio Revenue by End Market WWATTS 125% 5-yr Avg Free Cash Flow Conversion Revenue by End Market 45% 40% Break/Fix 60% Renovation 50% Single family 50% Multi family 55% 63% ■Repair & Replace ■ New Construction ■ Non-Residential ■Residential See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures 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 250 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 D" S&D Specialty Products and Systems that Conserve and Safeguard the Flow of Fluid and Energy 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 - FOOD SERVICE DATA CENTERS 1 Based on Company estimates of global market. Balanced Portfolio Providing Tailwind For Growth WTS Investor Presentation | 6#7COMMERCIAL OFFERINGS ~55% 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 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 WWATTS WWATTS FEBCO Driveway/Sidewalk Electronic Temperature Controls Snow Melt Hydronic Systems ⚫ Manifolds Watts Radiant URION® tekmarⓇ WWATTS® Drainage/Rainwater Harvesting Cast Iron and Stainless Drains & Pipe Rainwater Harvesting Roofs, Parking Garages, Bathrooms, Kitchens Leak Detection Smart & Connected Backflow Preventers • Wireless Leak Detection & Notification Systems BLÜCHER WWATTS FRIEN kr POWERS PVi® CAERCO tekmar® WTS Investor Presentation | 7#8RESIDENTIAL OFFERINGS ~45% 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 70° ATO tekmar® Driveway/Sidewalk Snow Melt Hydronic Systems Electronic Temperature Controls ⚫ Manifolds • Quick Connect Fittings Hydrocontrol Panels ⚫ PEX Tubing SunTouch Watts Radiant™ 74° 74 OVAO tekmar® SunTouch™ MELT Water Safety (Point of Entry) Backflow Preventers ⚫ Pressure Reducing Valves WWATTS 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 WWATTS 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 FEBCO® WWATTS 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#9OUR COMMITMENT TO SUSTAINABILITY WATTS · · ENVIRONMENTAL Reduced consumption of natural resources Continue to shift product portfolio to eco-friendly solutions Committed to providing clean water to disadvantaged communities Assessing Climate related risks and opportunities Driving product handprint • SOCIAL Launched first Global Diversity, Equity and Inclusion (DE&I) survey Enhanced recruitment process with new diversity standards Deployed company-wide DE&I training and development Forged partnerships with several leading Black colleges and universities Formed multiple diverse employee resource groups GOVERNANCE Appointed CSO in 2021 Conducting business with integrity and according to the highest ethical standards Continuous deployment of Code of Conduct our guide to applying our core values in our everyday actions Among Newsweek's Top 400 of "America's Most Responsible Companies" for sustainability performance, three years running ESG / DE&I Are Key Priorities Continuous Journey to Improve WTS Investor Presentation | 9#10ENGAGED 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 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 61 YEARS Avg. Age 7 YEARS Avg. Tenure Director Skillsets and Attributes Support Our Long-term Strategy WTS Investor Presentation | 10#11WATTS STRATEGIC FRAMEWORK Continue to Grow Organically Drive Operational Efficiencies & Improvement across All Key Processes Employ Disciplined & Balanced Capital Allocation Strategy WATTS WTS Investor Presentation | 11#12ORGANIC GROWTH INITIATIVES New Product Development Utilizing single streamlined product development process Leveraging Voice of Customer to drive product innovation Driving Smart & Connected strategy Geographic Expansion Cross-sharing existing products into new regions Targeting countries with well-established plumbing codes Opened 9 state-of-the-art Watts Works Learning Centers since 2015 Key Account Management Expanding relationships with large customers ■ Leveraging integrated business model to cross sell - Use Case: Large hospitality customer turned to Watts to standardize on a solution for their water heating, water quality, and space heating needs ☐ Advancing solutions that address market needs ■ Influencing plumbing code improvements in developing countries WWATTS Ⓡ TIM Multifaceted Approach to Drive Innovation; Future Growth Supported by Solution Selling WTS Investor Presentation | 12#13CLIENT CASE STUDIES Exceeding Client Needs with Innovative Solutions BACKGROUND: CLIENT NEED OUR INNOVATIVE SOLUTION 1,200 Room Hotel in Las Vegas, NV Wanted to reduce water utilization and simultaneously reduce water costs, which are twice the national average Replaced a water softening system with One FlowⓇ anti-scaling solution, eliminating the need for salt and chemicals Complete elimination of wastewater WWATTS BENEFITS 1.3M gallons of water saved per year A Northern California Event Venue wanted to harvest rainwater for re-use and to reduce ocean-bound runoff in effort to win LEED sliver status and comply with California's leading edge sustainability objectives A five-Tank 42,000 gallon Watts Rain Cycle TM rainwater harvesting system was installed allowing a large volume of rainwater to be used for toilet flushing and irrigation, otherwise to be lost, and greatly reducing runoff from the property into the ocean 140k 50% or gallons average annual savings more of municipal water used for grey water replaced Ⓡ Key Account Teams Help Customers Achieve Desired Outcomes WTS Investor Presentation | 13#14SMART AND CONNECTED STRATEGY PROGRESS syncta WWATTS CONNECT CONTROL. CONSERVE. THE DETECTIONGROUP (((•))) THE DETECTIONGROUP ΤΟ WWATTS Ⓡ 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 33% more devices connected in 2021 21 new smart & connected products introduced in 2021 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 2023/24 16%: Smart & Connected 2021 Revenues Continuing to Drive Our Smart & Connected Strategy WTS Investor Presentation | 14#15DRIVING 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 | 15#16OWPS CASE STUDY: ONE FLOW® ASSEMBLY MOVE TO GARDOLO, ITALY WWATTSⓇ BACKGROUND Issues and Drivers One FlowⓇ residential product sales accelerating in Europe Required reduced lead times to improve customer service Wanted to avoid modifications and labelling changes when serving the various member states of the European market Needed to optimize operations regarding inventory, logistics handling as well as manufacturing and transportation costs Solution Initiated production transfer from North America to Europe KEY ACTIONS Established a One Watts team to execute the transfer Created End-to-End Value Stream Baselined the assembly process in North America - Analyzed resources and costs - Prepared Europe marketing collaterals Fully consulted and aligned with US supply all aspects of change over to ensure a smooth seamless transfer Established a technical and commercial Competence Center in Europe OUTCOME Eruope One FlowⓇ Sales Growth +19% +55% 2019 2020 2021 Lead Times (days) Improved Production Cell 28 5 Multiple Kaizens 2019 2021 . Set-up a U-Shaped cell and updated standard work of fabrication (smart & safe) • • Equipped the cell with a pneumatic cartridge filling system and upgraded quality test Improved control of the quantity of TAC Medium filled in One Flow to minimize material waste Driving European Certifications for One FlowⓇ French Ministry of Health, DVGW, KIWA English, KIWA Dutch WWATTS WTS Investor Presentation | 16#17BALANCED CAPITAL DEPLOYMENT Deployment History 2017-2021 $108 $151 -47% 47% Growth $69 Growth ~53% Returned to Shareholders $157 WWATTS Priorities Strategic M&A Disciplined valuation / screening process Investing in High ROI Capex ■ ~70% of Capex invested in growth and productivity initiatives. ■ Reinvestment ratio 100%+ Competitive Dividend 7.3% 5-year CAGR through 2021 ■ $1.20/share annual dividend, 0.9% yield 1 Stable Share Buyback ■ Offset option dilution at minimum M&A Capex Dividend ■Share Buyback Strong Cash Flow Generation Provides Flexibility WTS Investor Presentation | 17 1 Yield as of 5/3/22.#18M&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 Brand Name Products, Market Leadership Increase in Shelf Space with Existing Customers Product Offering Expansion, Including New / Improved Technology Accretive to EPS in Year 1 Accretive to EBITDA Margin within 3 - 5 Years Disciplined Acquisitions Generate Incremental Growth WTS Investor Presentation | 18#19FLEXIBLE BALANCE SHEET 3/27/22 $M Cash Other Current Assets Non-Current Assets Debt Maturity Schedule No Debt Due Until 2026 $227 693 $205M 983 TOTAL ASSETS $1,903 Current Liabilities, excl. Short-term Debt $405 Non-Current Liabilities 133 Revolving Credit Facility Debt Equity TOTAL LIABILITIES & EQUITY 202 1,163 1,903 Net Debt Capitalization Ratio (2.2%) 2021 2022 2023 2024 2025 2026 Unused and available credit capacity $580M on March 27, 2022 Capacity to Execute on Strategic Growth \\WATTS WTS Investor Presentation | 19.#202Q & Full Year 2022 Outlooks* 2Q 2022 Full Year 2022 Organic Growth 5% to 10% Acquired sales ~+$2M Total: 3% to 8% [Prior Same] Adj. Op Margin 15.1% to 15.5% Adj. Margin Growth +20 bps to +60 bps Free Cash Flow Seasonally slower FX - Euro / $ WWATTSⓇ OTHER KEY FULL YEAR INPUTS ITEM Total 14.5% to 14.9% [Prior 14.3% to 14.7%] Corporate Costs Interest +20 bps to +60 bps [Prior Flat to 40 bps] 90% of Net Income [Prior Same] 1.10 VPY (-8%) Sales ($13M); EPS ($0.05) V Prior Guide Sales ($3M); EPS ($0.01) 1.10 VPY (-7%) Sales ($39M); EPS ($0.14) V Prior Guide Sales ($13M); EPS ($0.05) See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures * As of May 4, 2022 May 5, 2022 © 2022 Watts Water Technologies, Inc. EXPECTATION ~$48M ~$7M Expense Adjusted Effective Tax Rate -25% CAPEX/D&A ~$45M/$45M Share Count ~34M shares 20#21OUR LONG-TERM ASPIRATIONS WWATTS Organic Growth 1% Above Market Operating Margin Expansion 30-50 bps per Year¹ Emphasis on Growth Supported by M&A Focus in Selected Emerging Markets Build a High Performance "Connected Water and Heating Solutions" Company 1 Post 2021 - after pandemic subsides. WTS Investor Presentation | 21#22INVEST WITH US RECOGNIZED LEADER Global reach: 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 • Leveraging components to broaden application solutions offering Investment continues, fueling growth with "connected" strategy ACCRETIVE CAPITAL DEPLOYMENT • • Strong cash flow and efficient capital structure enables more deployment upside Disciplined acquirer • Returns to shareholders Innovation and Commercial Excellence Drives Above Market Growth WWATTS WTS Investor Presentation | 22#23Watts 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#24RECONCILIATION OF GAAP TO NON-GAAP MEASURES (M) (Unaudited) Net Sales Operating income - as reported Operating margin % Adjustments for special items: Year 2021 2017 $1,809.2 $1,456.7 $239.6 $162.3 13.2% 11.1% Footprint optimization / impairment charge 1.0 Restructuring/transformation costs 19.3 9.7 Prof. fees acquisition / earnout adj. / disposal 0.2 $19.3 $10.9 Operating income - as adjusted $258.9 $173.2 Adjusted operating margin % 14.3% 11.9% Net income as reported - $165.7 $73.1 Adjustments for special items - tax effected: Footprint optimization / impairment charge Restructuring / transformation costs Prof. fees acquisition / earnout adj. / disposal Tax adjustments 0.6 14.1 6.6 0.1 7.2 23.5 $21.3 $30.8 - Net income as adjusted $187.0 $103.9 Earnings per share Diluted earnings per share - as reported $4.88 $2.12 Adjustments for special items 0.64 0.90 Diluted earnings per share - as adjusted $5.52 $3.02 WWATTS WTS Investor Presentation | 24#25RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT TO CAPITALIZATION RATIO (M) (Unaudited) WWATTS March 27, 2022 December 31, 2021 Current portion of long-term debt $ - $ - Plus: Long-term debt, net of current portion 202.0 141.9 Less: Cash and cash equivalents Net debt (226.8) (242.0) ($24.8) ($100.1) Net debt ($24.8) ($100.1) Plus: Total stockholders' equity 1,162.5 1,173.2 Capitalization $1,137.7 $1,073.1 Net debt to capitalization ratio (2.2%) (9.3%) WTS Investor Presentation | 25#26RECONCILIATION BETWEEN GAAP AND NON-GAAP MEASURES INCLUDED IN 2022 OUTLOOK* *As of May 4, 2022 Second Quarter 2022 Full Year 2022 Sales GAAP sales growth 3% to 8% 1% to 6% Forecasted impact of FX / acquisition 2% 2% Non-GAAP sales growth - Organic 5% to 10% 3% to 8% Operating Margin (20) bps to 20 bps Flat to 40 bps GAAP operating margin increase (decline) Forecasted restructuring 40 bps 20 bps Non-GAAP adjusted operating margin increase 20 bps to 60 bps 20 bps to 60 bps WWATTS WTS Investor Presentation | 26