Dear Shareholders and
Business Partners,

Tense global situation

The start of the year continued to be marked by the global impact of the COVID-19 pandemic. Gas shortages combined with higher gas prices posed particular challenges for the manufacturing industry in Germany. On the procurement markets, the easing of the inflation wave and a slight improvement in the availability of important bought-in parts provided some relief.

Unfortunately, our hopes for an improvement in the global political situation remained unfulfilled. The war in Ukraine continued unabated. In the second quarter, fears about global economic relations intensified due to the simmering China-Taiwan conflict. Higher interest rates led to a decrease in investments. The Gaza region has been at war since the attack on Israel in October. These serious events led to a further shake-up of the usual global order and continuing uncertainty in the global economy.

Europe, and in particular Germany, suffered from inflation-related consumer reticence and general uncertainty. Overall, Germany experienced negative growth.

We have tackled the many challenges with confidence and have not only kept the company on a stable course, but also enabled it to advance.

Good market positioning

KSB’s global positioning once again proved to be a major strength in 2023. Thanks to our regional production plants organised in a global manufacturing network, we can quickly supply our customers in all key markets with high-quality products. By systematically aligning all activities with market requirements, we achieved a good order intake despite strong competition in nearly all Market Areas.

Economic downturns, such as in the construction industry and the German mechanical engineering industry, which particularly dampened growth in Building Services and General Industry, were offset by positive developments in the Mining, Petrochemicals / Chemicals, Energy and Water Market Areas. KSB’s broad product range proved to be an advantage.

Our strong earnings position is supported by tight cost control across the Group. A consistent focus on the service and spare parts business under the KSB SupremeServ brand made a substantial contribution to the profitable growth of the entire Group.

This business success is reflected in the rising valuation of KSB on the financial markets, leading to its inclusion in the SDAX in December.

Strategy 2030

An important milestone was the adoption of the Mission Ten30 strategy. In addition to the goal of ten percent profitability by 2030, the strategy sets out numerous targets and measures to drive the company forward. Previous programmes, such as reducing costs at KSB SE & Co. KGaA, were successfully completed.

Megatrends as opportunities

With our many years of expertise in fluid handling, we are not only benefiting from the megatrends and major challenges in the world, but are also actively shaping them with new technologies.

The growing demand for electric motors required for e-mobility and the generation of solar and wind energy will increase the demand for copper and consequently for pumps in the mining industry. The Energy Market Area will also tap new potential as a result of the change in the energy mix. In the Petrochemicals / Chemicals Market Area, KSB will set technological standards in hydrogen production and carbon capture. The growing global population and urbanisation are placing huge demands on water supply and waste water disposal. Adding to this are weather extremes as a result of climate change, the consequences of which we can mitigate with future-oriented water management using pumps.

Global investments

KSB increased its global investment volume to 136 million euros in 2023, investing in the expansion and technological or energy-related modernisation of its locations in all key markets. In Frankenthal, KSB commissioned a new heating station, saving 900 tonnes of CO₂ annually. At its Pegnitz location, KSB adopted a comprehensive concept for the future which saw an investment of 25 million euros in capacity expansion and sustainable production. In India, a new office complex commenced operations and in China construction work began on a cutting-edge production facility for chemical pumps.

Employee engagement

The satisfaction and engagement of our employees is a key pillar in the company’s success – and a matter close to my heart. Successful corporate development is not possible without highly dedicated people who see change as an opportunity. At the same time, the meaningfulness of the company’s business activities and its social competence are becoming increasingly important for attracting the best talent. We have therefore introduced a variety of measures worldwide to promote our corporate culture and strengthen loyalty to the company.

The KSB brand

Strengthened by the company’s sustained positive development, strategic goals and market-leading position, KSB focused on raising brand awareness as a Global Champion in the reporting year. In order to visibly reflect this positive change in our brand image, we are currently revising our logo, the associated brand claim and our corporate values. Have a look at the exclusive initial preview in the PDF of the KSB annual report on page 13.

The 2024 financial year

We anticipate a wide range of challenges in the new financial year, which will be dominated by political elections in key markets such as India, the USA, South Africa and Europe. Uncertain interest rate trends, global conflicts and the current lack of growth impetus in key countries mean that we are not expecting a significant upturn. However, our confidence in developing the company remains unwavering. KSB’s positioning makes it resilient and we will once again generate substantial value for our shareholders, employees and business partners in the 2024 financial year.