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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, earnings, earnings per share, water market growth, 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 implies by the forward-looking statements.

Factors that might affect forward-looking statements include overall economics 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 Watts’ most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.

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Earnings Summary

Sales

Gross Profit

Operating Income

Net Income (Continuing Oper.)

EPS-Diluted (Continuing Oper.)

Weighted Average Shares-Diluted

April 1, 2007

$346,092

$114,666

$30,367

$20,047

$.51

38,981

April 2, 2006

$274,950

$95,818

$26,532

$15,087

$.46

32,823

(In thousands except for per share data)

First Quarter Ended

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Watts overview – who we are

Watts is a leader in water-related products

$1.2bn in sales for 2006

$77.1mm in income from operations for 2006

Mix split between residential and commercial

38% of current sales outside of U.S.

Replacement business significant

1874 Founded First

AcquisitionInitial Public

Offering

Focus on water

Today

Sales in over 100 countries

Manufacturing in 11 countries

8,300 employees

Exited municipal market

1985 19991986 1996$124MSales: $137M $730M including municipal

$644M excluding municipal$800M pre-spin$475M post-spin

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RADIANT HEAT PRODUCTSRadiant Underfloor Heating SystemsSnowmeltingElectronic Temperature Controls Quick Connect Fittings

WATER HEATERT&P Relief ValvesTempering ValvesPressure Reducing ValvesExpansion Tanks

Backflow PreventersBall ValvesDrain TubesFloor DrainsGas Connectors

BOILERBoiler Energy SaverTemperature and Pressure GaugesTempering ValvesSafety Relief ValvesFill ValvesBackflow PreventersBoiler DrainsAir ScoopsFlow Control ValvesPurge ValvesFloat Vents

BATHROOMThermostatic Mixing Valves for Tubs, Showers and SinksElectric Tile WarmingQuarter Turn Stop ValvesHot Water Demand Recirculation SystemsDecorative FaucetsBath Waste DrainsP-TrapsToilet Ball Cock Valves

What we do - Water by Watts(Residential Applications)

LAUNDRY ROOMWashing Machine Shutoff ValvesWater Hammer ArrestorsFlexible Connectors for Faucets and Washing MachinesGas Ball Valves

KITCHENReverse Osmosis Water Filtration SystemsThermostatic Mixing ValvesElectric Tile WarmingFlexible Connectors for Faucets, Dishwashers and Ice MakersIce Maker Filtration SystemsQuarter Turn Stop ValvesMetal & Plastic Tubular Products

Hydrocontrol PanelsPEX TubingManifolds

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IRRIGATION SYSTEMBackflow PreventersBackflow EnclosuresAutomatic Control ValvesThrough-the-Wall ShutoffsBall ValvesButterfly ValvesRelief ValvesWater Pressure Reducing Valves

FIRE PROTECTION SYSTEMBackflow PreventersTransition Risers

UL/FM Fire Service StrainersAutomatic Control Valves Pre-Engineered Valve StationsRelief ValvesCheck ValvesGate Valves

HVAC SYSTEMBalancing ValvesFeed Water RegulatorsBackflow PreventersRadiant Underfloor Heating SystemsRadiant Snowmelting SystemsHydrocontrol PanelsPEX Plumbing System

WASTEWATER (DRAINAGE) SYSTEMRoof DrainsFloor DrainsTrench DrainsFixture CarriersAcid Waste Systems

CleanoutsInterceptorsHydrants

POTABLE WATER SYSTEMGas ConnectorsPEX Plumbing SystemsReverse Osmosis WaterFiltration SystemWater SoftenersBackflow PreventersPre-Engineered Valve StationsWater Pressure Reducing ValvesGate, Globe & Check Valves

Ball ValvesT&P Relief ValvesTempering ValvesWater ConnectorsShower ValvesMonitoring and Turbidity MonitorsStrainersButterfly Valves

ManifoldsElectronic Temperature ControlsSafety Relief ValvesAutomatic Air Vent ValvesExpansion TanksTempering ValvesFlow SwitchesGauges & ThermometersSteam TrapsStrainersGas Connectors

FOOD SERVICE APPLICATIONSMovable Gas ConnectorsWater Filtration SystemsInternal Fluid Conveyance AssembliesGas and Water Shutoff ValvesCommercial FaucetsMetal & Plastic Tubular PartsGas RegulatorsThermostatic Mixing ValvesGrease InterceptorsFloat ValvesEquipment Placement Systems

What we do - Water by Watts(Commercial Applications)

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Pure play global leader in waterHighly attractive market fundamentals

Attractive franchiseLeading brands in growing categoriesComprehensive product offering and distribution capabilitySignificant recurring revenue streamLow cost manufacturing strategy

Strong growth storyLeverage to commercial market expansionProven industry consolidatorIncreasing international and emerging market presenceSuccess in code development and enforcement

Solid foundation

Why invest in Watts?

Diversified business model provides stable platform for growth

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Large and attractive market

Demand for water growing at 3x population growth and will grow by 40% by 2020

<1% of earth’s surface water is available for consumption

Increasing requirements for energy and water conservation

Increasingly stringent industry codes and potential for legislative action

Emerging commercial markets

Asian infrastructure inadequate to support growing population and economic development

Heightened consumer awareness and focus on water quality issues

Residential filtration market already estimated at ~$1.25 billion and growing rapidly

Current global market size $365bn+ Key market growth driversComponents/

Equipment

Purification/

FiltrationSystems Services Operations

Municipal

Industrial

Commercial

Residential

Watts addressable market > $60 billion

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How do we differentiate ourselves?

Brand

Premium brands allow for premium pricing and input cost recapture

Develop complementary products in existing markets

Brand name expansion to new markets through acquisitions

Products

Codes

Unparalleled product breadth

Long-standing tradition of product quality

Innovative product design

Focus on meeting local code requirements

Promote code adoption and enforcement to create entry barriers

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88%

46%34%

24% 22%

3%4%12%

26%

66%70%

48%37%

7%2%

21%32%

47%

91%

35%

22% 19% 18%

5%5%5%16%

74%

85%

35%27% 26%

11%3%

9%9%15%

68%

Brand preference is a key differentiator for Watts

Source: Contractor 1999, 2003 market position study; Contractor Magazine

Danfoss/Flomatic

Watts Wilkins Conbraco Febco

Currently Used (base:207)Preferred overall (base:149)

All other

Watts Zurn-Wilkins

Conbraco Cash-Acme

Currently Used (base:103)Preferred overall (base:58)

Watts Symmons Taco Legend

RegulatorsBackflow prevention

Plumbing and heating productsHot water tempering & mixing valves

Watts Nibco A.W. Cash Valve Mfg.

Zurn-Wilkins

Conbraco

Currently Used (base:139)Preferred overall (base:85)

Currently Used (base:153)Preferred overall (base:99)

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European OEM$207mm/16%

European Wholesale$205mm/15%

China$64mm/5%

North American Retail$186mm/14%

North American Wholesale

$633mm/48%

Global distribution capability with limited customer concentration

European DIY$27mm/2%

Note: Sales as shown are annualized 4th quarter 2006 for illustrative purposes

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Global manufacturing footprint with substantial presence in low-cost regions

Watts Water Technologies,

Corporate OfficesNorth Andover, MA

W.P.T.Taizhou, China

Tianjin Tanggu Watts Valve Co.

Tianjin, China

Watts ADEVMonastir, Tunisia

Watts Fimet MTBBulgaria

WOFETianjin, China

Watts Headquarters Manufacturing Distribution CenterManufacturing (low-cost China, Bulgaria, Tunisia)

Webster ValveFranklin, NH

RegtrolSpindale, NC

Ames CompanyWoodland, CA

Anderson BarrowsPalmdale, CA

Watts Industries, Canada

Burlington, Ontario

Dumser Metallbau GmbH & co. KG

Landau, Germany

Watts Cazzaniga, S.p.A.Biassono, Italy

Watts AnelloItaly

Watts EurothermFressenneville, France

FlowmaticDunnellon, FL

TEAM Precision Pipe Work, LTD.

West Wales, UK

Watts PremierPhoenix, AZ

Watts ACVHouston, TX

Watts RadiantSpringfield, MO

Dormont Mfg.Export, PA

Mueller Steam SpecialtySt. Pauls, NC

FEBCOFresno, CA

Langley,Canada

British Columbia

Changsha Valve Works

Changsha, China

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Watts is uniquely placed to successfully capitalize on industry trends

Industry trends Watts advantage

Disciplined acquisition strategy with proven track record

Consolidation of manufacturers

Consolidation of North American Wholesalers/European OEM customers

Growth in emerging markets

Renewable energy

Increasing commodity costs

Broadest product line with most effective distribution capabilities

Expanding footprint in high growth Chinese and Eastern European markets

Robust existing product offering

Manufacturing strategy/aggressive cost reductions/price increases

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Watts is uniquely positioned to take advantage of both non-residential and residential construction demand

68.7

88.4102.3

119.6 124.5

1970 1980 1990 2000 2005

Source: HUD

U.S. Non-residential Construction Market ($B)1 U.S. housing stock (millions of units)

314 331 350 379412

446482 518

2003 2004 2005 2006 2007 2008 2009 2010

CAGR = 7%

Source: FMI’s Construction Outlook1 Includes total non-residential buildings

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We have been highly successful in promoting industry code development and education

Consistently advocate development and enforcement of industry codes

Industry codes based on Watts product specifications create a significant growth opportunity and barrier to market entry

Greater than 60% of sales are derived from code approved products

Efforts include thermostatic scald protection in the American Society of Sanitary Engineers ASSE1016

Subsequent adoption into national and state codes

Recently included in the Recommended Backflow Product List prepared by the Chinese National Backflow Standards Committee

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Watts has successfully acquired and integrated 46 companies since 1987

Business logic

“Water by Watts”

Proprietary brand names

Entry into new markets

Product line expansion

Financial

Accretive to EPS Year 1

CFROI in mid-teens Year 1

EVA positive in Year 2+

Acquisition strategy

Core water products

Product Adjacencies

New Technologies

Geographic Expansion

Premier WaterSystems (2001)

Flowmatic(2004)

Disciplined acquisition criteria

Hunter Technologies

(2002)H.F. Scientific

(2005)

ATS Expansion(2006)

Dormont(2005)

Changsha Valve(2006)

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Case study: FEBCO & Mueller (2005) – Product line expansion

Announced December 2005

Purchase price $46 million; sales $57 million

Based in St. Paul, NC

FEBCO provides a strong brand and access to the irrigation markets

Mueller adds commercial straining technology to existing residential offering

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Case study: Dormont (2005) – Product adjacencies

Announced December 2005

Purchase price $95 million; sales $57 million

Based in Pittsburgh, Pennsylvania

Leader in flexible stainless steel connectors for natural gas and liquid propane gas connectors

Leverages Watts existing distribution channels, serving both the residential and commercial markets

Entree to commercial food service

Expands products offered to professional contractors

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Case study: ATS Expansion Group (2006) –Geographic & product line expansion

Announced May 2006

Purchase price $67 million; sales $50 million

Based in France

Leader in France plumbing supply market, both wholesale and DIY channels

Added three well-know brands to the Watts’ portfolio: Gripp, Porquet and Sirius

Entree to European DIY industry

International sourcing

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Our diversified business model

Geography

U.S.A.

China 3%

General Plumbing

Specialty Plumbing &

Heating

DIY

Water Quality 49%49%17%17%

16%16%

18%18%

Products

Europe

62%62%

30%30%

5%5%

Based on 2006 Sales

Canada

CustomerDistribution channel

65%65%16%16%

19%19% Wholesale

OEM

DIY

10%10%

13%13%

77%77%

Home Depot

RemainingTop 10

Other

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Watts has an enviable track record of consistent revenue growth

$373$414

$450 $445 (1) $478$522 $516 $549

$616

$702

$825

$924

$1,231

1995 1996 1997 1998 1999 1999.5 2000 2001 2002 2003 2004 2005 2006

Revenue CAGR: 14%

1 Includes impact of two divestitures completed in 1997

Note: 1997-1999 shown of fiscal year ending June 30; 1999.5 represents an annualized 1st half 1999 for illustrative purposes; 2000-2006 as calendar year basis

Fiscal year; $ millions

Revenue CAGR: 18%

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$49

$55

$77

2004 2005 2006

Revenue and Earnings performance has been strong

Income from Continuing Operations ($ millions)

$825

$924

$1,231

2004 2005 2006

Revenue ($ millions)

Revenue CAGR: 21%

Income CAGR: 28%

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Watts has successfully dealt with rising input costs

34.4% 35.2% 35.1% 34.5%

10.6%10.2%10.1%10.0%

'03 '04 '05 '06

Stable gross margins and operating margins despite input cost headwind

Effectively passed through price increases to offset commodity pressure

Continued shift to LCR

Further diversification of product offering to higher margin products

Value packaging

0%

100%

200%

300%

400%

500%

600%

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07

Copper(+307% increase)

Nickel(+357% increase)

Zinc (+432% increase)

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Why invest in Watts?

Conservative capital structure

Leader in industry consolidation

Strong track record of delivering growth

Stable, diversified business

Pure-play opportunity in attractive water market

Well positioned to benefit from:

Water market stabilityCommercial recoveryEmerging marketsRenewable energy

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