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KSB GROUP INVESTOR PRESENTATION 2021

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Page 1: KSB GROUP INVESTOR PRESENTATION

K S B G R O U PINVESTOR PRESENTATION2021

Page 2: KSB GROUP INVESTOR PRESENTATION

FORWARD-LOOKING STATEMENTS

KSB Group Investor Presentation I 20212

This investor presentation contains forward-looking statements that are based on current estimates, forecasts and assumptions made by KSB management to the best of its knowledge and other information currently available to KSB.By their very nature, the forward-looking statements of this presentation are subject to various known and unknown risks, uncertainties and other factors, the non-occurrence or occurrence of which could cause material differences in future results of operations, financial situation, development or performance of KSB. Factors that could cause such differences include but are not limited to changes in political, business, economic and competitive environment, effects of future legal and legislative issues, fiscal, and other regulatory measures, foreign exchange rate fluctuations, interest rates, developments in raw material and personnel costs, launches of competing products or services, poor acceptance of new products or services, and changes in business strategy.KSB does not intend and does not assume any liability whatsoever to publicly update or revise any forward-looking statements or other information contained in this presentation as a result of new information, future events or otherwise. No representation or warranty, express or implied, is made by KSB and/or its management with respect to the completeness, fairness, correctness, reasonableness or accuracy of any information, facts, expectations or opinions contained herein. Neither KSB nor any of its affiliates or representatives shall have any liability whatsoever (in negligence or otherwise) for any losses or damages arising from any use of this presentation or its content or otherwise arising in connection with the statements given herein. This presentation includes percentage and number rounding.

DISCLAIMER

Page 3: KSB GROUP INVESTOR PRESENTATION

AGENDA1

2

3

CORE INFORMATION AND MESSAGES

FINANCIALS

“CLIMB 21”

4 DIGITALIZATION

5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

6 APPENDIX

Page 4: KSB GROUP INVESTOR PRESENTATION

KSB – OVERVIEW

4 KSB Group Investor Presentation I 2021

IN FIGURES

€2.2bn2020A REVENUES

450k# OF CUSTOMERS

3% to >8%EBIT MARGIN

#4GLOBALLY BY REVENUES

170GLOBAL SERVICES SITES

€30bnINSTALLED VALUE

1871FOUNDED

35%SPARES & SERVICE REV.

15,000+EMPLOYEES

A GLOBAL FLOW CONTROL INNOVATION LEADER – IN TRANSITION

SELECTED CLIENTS

ENGINEERED PUMPS

CUSTOMIZED STANDARD PUMPS & VALVES

ENERGY, WATER, MINING, PETROCHEMICALS/CHEMICALS, BUILDING AND

GENERAL INDUSTRY

KSB SupremeServ

PUMPS, VALVES AND SERVICES

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 5: KSB GROUP INVESTOR PRESENTATION

INVESTMENT HIGHLIGHTS

5

ONGOING TRANSFORMATIONDRIVING GROWTH THROUGH CYCLES AND ENHANCING MARGINS

KSB Group Investor Presentation I 2021

DIVERSIFIED MARKETS, GROWING MARKETS

CLIMB 21 –LIFTING KSB TO THENEXT LEVEL

ATTRACTIVE FINANCIAL IMPROVEMENT TRAJECTORY

PROCESS CRITICAL PRODUCTS AND SOLUTIONS

GLOBAL LEADER IN FLOW CONTROL SYSTEMS

Long standing client relationships, large installed base worldwide

Solid service and replacement business, significant further growth potential

Leading market positions in industrial machinery, municipal water, energy applications, mining and chemicals

German engineering, reputation for quality and innovation since 1871

Target to outgrow global GDP by 1% p.a.

Diversified focus markets to limit cyclicality

Portfolio pruning for growth and profitability in process

New organizational structure with clear focus on selected end markets and increasing services and spare parts share

Sustainable profitability goal in excess of 8% EBIT margin

Foundation for solid sales growth in all segments, service share to grow to 40% by 2025

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 6: KSB GROUP INVESTOR PRESENTATION

PROCESS CRITICAL PRODUCTS AND SOLUTIONS

6

CONTINUOUS AVAILABILITY,OPTIMAL ENERGY AND OPERATIONAL EFFICIENCY DRIVE CUSTOMER VALUE

KSB Group Investor Presentation I 2021

SERVICEPUMPS

Customised standard Engineered

Prod

uct

Des

crip

tion

Portfolio of standard and engineered centrifugal pumps, also available online

Standard pumps with various customization options Several types of pumps (single stage pumps, multi

stage pumps and submersible pumps) Engineered pumps for use in Mining and especially

Energy industries

Services for pumps and valves including inspection, servicing, maintenance, repairs and consultancy offered under the KSB SupremeServ brand

Strong focus on spare parts Online availability From 2021 new segment: KSB SupremeServ (Services

and spares)

Para

-m

eter

s 0.7 – 65,000QUANITITY

(m3/h)

10 – 560PRESSURE

(bar)

1 – 5,300HEIGHT

(m)

(90) – 450TEMP(°C)

LARGE INSTALLED

BASE

DIGITAL SERVICES

HIGHLY QUALIFIED

STAFF

SPARE PARTS

BUSINESS

VALVES

Used in power stations, buildings, on ships and in process and water engineering systems

Alongside globe valves, gate valves, butterfly valves, ball valves, diaphragm valves and check valves, the product range also includes actuators and positioners

(196) – 816TEMP(°C)

Sale

ssh

are €1,4681

66%€335m1

19%€404m2

15%

Onl

ine

sale

s €200m+2020

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Note:1 2020 actual, new business and spare parts2 2020 actual, only services, excluding spare parts

Page 7: KSB GROUP INVESTOR PRESENTATION

CORE PUMP MARKETS – OVERVIEW

7

LEADING MARKET POSITIONS IN FOCUS MARKETS, SECULAR GROWTH AND DIVERSIFICATION BENEFIT KSB

Mar

ket A

rea GENERAL INDUSTRY MININGENERGYWATER

KSB Group Investor Presentation I 2021

Mar

ket

posi

tion1

32 1-3 13 24

Glo

bal m

arke

t si

ze a

nd g

row

th1 (€bn) 3% 3%

PETROCHEMICALS/CHEMICALS

3

4%3%

BUILDING SERVICES

Ord

er In

take

202

0 5

3

4%

Note:1 Relevant addressable market within pumps segment2 In core focus markets3 Conventional energy primary process pumps (e.g. faced water)4 Slurry pumps5 incl. consolidated and non-consolidated group companies

9.211.2

2019A 2025E

1.5 1.8

2019A 2025E

7.19.0

2019A 2025E

4%

2.7 3.2

2019A 2025E

7.1 8.9

2019A 2025E

7.8 9.6

2019A 2025E

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

€389m €352m €254m €170m €203m €147m

Page 8: KSB GROUP INVESTOR PRESENTATION

GLOBAL FLOW CONTROL LEADER – QUALITY SINCE 1871

8 KSB Group Investor Presentation I 2021

KSB

Gro

up

posi

tion1

1-3 232 3

LEADING POSITIONS IN WATER, MINING, INDUSTRIAL MACHINERY AND NUCLEAR LARGE INSTALLED BASE GLOBALLY AS BASIS FOR RECURRING BUSINESS

Sele

cted

key

clie

nts

Mar

ket A

rea

GENERAL INDUSTRY ENERGYWATER BUILDING SERVICES PETROCHEMICALS/CHEMICALSMINING

1 3

Note:1 Relevant addressable market within pumps and valves segments2 In core focus markets

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 9: KSB GROUP INVESTOR PRESENTATION

PORTFOLIO PRUNING AND STRENGTHENING…

9

… WITH A FOCUS ON MARKETS WITH CLEAR DIFFERENTIATION AND PROFITABILITY

KSB Group Investor Presentation I 2021

Machinery & Equipment

Food & Beverage

Marine

Metals

Municipal Freshwater

Irrigation

Municipal Wastewater Gas

Nuclear

Hard Rock Mining

Industrial Minerals

Non-Residential

Downstream

Chemicals

€389mCOI 2020

€352mCOI 2020

€254mCOI 2020

€170mCOI 2020

€203mCOI 2020

€147mCOI 2020

€328mCOI 2020

GGC valves

Butterfly valves & VRCS

Diaphragm valves

Control valves

PUMPS VALVES

GENERAL INDUSTRY ENERGYWATER BUILDING SERVICES MINING PETROCHEMICALS/CHEMICALS VALVES

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 10: KSB GROUP INVESTOR PRESENTATION

25%

21%

9%11%

5%

7%

22%

OUT OF €2.3BN OI1, €1.5BN IS RELATED TO NEW BUSINESS

KSB Group Investor Presentation I 2021

DRIVING THE INSTALLED BASE ACROSS A WIDE RANGE OF MARKETS

OI1: NEW BUSINESS VS AFTERMARKET SPLIT

New business ServicesSpare parts business

10

General Industry EnergyWater Building Services Mining ValvesPetrochemicals/Chemicals

OI1: NEW BUSINESS BY MARKET / SEGMENT

€1.5bn(2018A)

Engineered Engineered

65%

16%

19%

€2.3bn(2018A)

Note:1 Order intake incl. consolidated and non-consolidated group companies.

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 11: KSB GROUP INVESTOR PRESENTATION

30%

9%

20%

6%

7%

17%

11%

24%

6%

13%

2%

39%

11%5%

€0.8BN SERVICE & REPLACEMENT BUSINESS DRIVEN BY PUMPSSET TO GROW TO 40% BY 2025

KSB Group Investor Presentation I 202111

OI1: SERVICES BY MARKET / SEGMENTOI1: SPARE PARTS BY MARKET / SEGMENT

General Industry EnergyWater Building Services Mining ValvesPetrochemicals/Chemicals

€0.4bn(2018A)

€0.4bn(2018A)

INSTALLED PUMPS VALUE SERVICED

€1.2bnServiced pumps target by 2025

26%

74%

€30bnKSB Group

pumps population

thereof service

potential €3bn

Share of KSB pumps services

Note:1 Order intake incl. consolidated and non-consolidated group companies.

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 12: KSB GROUP INVESTOR PRESENTATION

GROWING MARKETSRESILIENCE FROM COMPLEMENTARY END MARKET CYCLESTARGET TO OUTGROW GLOBAL GDP BY 1% P.A.

Highest growth in capex in downstream driven by refinery capacity extensions

Chemicals as highly attractive growth market

Increasing infrastructure in emerging economies

Further capex spend driven by Americas through mining friendly regulations

Upsizing trend due to the necessity of transporting large amounts of solids

New capacity installments for nuclear applications, gas and bioenergy especially in China and India

Shift towards renewable energy

Worldwide renewal of water and wastewater infrastructures

Strong growth in Asia, Middle East and Africa

Solid growth in new buildings and renovations for non-residential buildings

Increasing capex for smarter building technologies

Machinery end-market with good underlying trends such as automation and IoT

Food & Beverage as attractive end-market

OEM-Machinery and Equipment

3.3% 4.2% 2.9% 3.4%3.1%4.0%

Mar

ket g

row

th20

19-2

51M

arke

t Are

aM

arke

tdy

nam

ics

GENERAL INDUSTRY ENERGYWATER BUILDING SERVICES PETROCHEMICALS/CHEMICALSMINING

12 KSB Group Investor Presentation I 2021

Note:1 Market growth related to pumps and valves segments

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 13: KSB GROUP INVESTOR PRESENTATION

EXPANSION STRATEGY…

13 KSB Group Investor Presentation I 2021

…WITH DIVERSIFICATION FROM EUROPE INTO HIGHER GROWTH REGIONS WITH STRONG REGIONAL HUBS

Note:1 Mostly related to Mining operations2 Asia / Pacific3 Middle East / Africa / Russia

10%1 6%

MEA3NORTH AMERICAEUROPE APAC2

Rev

enue

sha

re 2

020

56%

Annu

al m

arke

t gr

owth

201

9-20

25

SOUTH AMERICA

22% 6%

2.6% 4.3% 3.5% 3.7%

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 14: KSB GROUP INVESTOR PRESENTATION

AGENDA1

2

3

CORE INFORMATION AND MESSAGES

FINANCIALS

“CLIMB 21”

4 DIGITALIZATION

5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

6 APPENDIX

Page 15: KSB GROUP INVESTOR PRESENTATION

SALES AND ORDER INTAKE

15

UNCERTAINTY DUE TO CORONA RESULTS IN LOWER ORDER INTAKE AND SALES

KSB Group Investor Presentation I 2021

ORDER INTAKE (in €m) SALES (in €m)

6.1%

Pumps Valves Service YoY Growth Pumps Valves Service YoY Growth

Service Order Intake and Sales are negatively impacted by the sale of five French service companies (Impact in 2019 OI: €33m, Sales: €35m). In addition, the coronavirus pandemic resulted in postponed maintenance activities.

COMMENTARY

(7.4)%(12.6)%6.5%

1.469 1.562 1.468

341 364

335

436 456

404

2.2462.383

2.208

2018A 2019A 2020A

1.506 1.618 1.420

356 362

320

442 474

403

2.304 2.454

2.143

2018A 2019A 2020A

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 16: KSB GROUP INVESTOR PRESENTATION

KSB EBIT 2020 is negatively influenced by Goodwill Impairments of €11,2m.

PROFITABILITY

16

COST REDUCTION CANNOT FULLY COMPENSATE LOWER SALES MARGIN DUE TO CORONAVIRUS PANDEMIC IN 2020

KSB Group Investor Presentation I 2021

EBIT MARGIN (in %) COMMENTARYEBIT (in €m)

Pumps Valves Services YoY Growth

3.3%4.8%

2019A 2020A

52.1% (38.2)%

91 85 81

(37)

2

(23)

22 27 13

75 114

70

2018A 2019A 2020A

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 17: KSB GROUP INVESTOR PRESENTATION

Continuous decreasing trade working capital contributes to the positive development of the net financial position.

Since 2019 net financial position is influenced by IFRS 16 (lease accounting): Lease liabilities 2019: €47m Lease liabilities 2020: €39m

CASH FLOW AND NET FINANCIAL POSITION

17

ROBUST NET FINANCIAL POSITION BASED ON STRONG CASH POSITION

KSB Group Investor Presentation I 2021

NET FINANCIAL POSITION (in €m) COMMENTARYOPERATING CASH FLOW (in €m)

Operating Cash Flow YoY Growth Cash Other financialresources ST debt YoY GrowthLT debt

136.2% 25.6% (2.0)% 22.0%

61

145

182

2018A 2019A 2020A

256 281 332

78 67

56

(49) (44) (32)

(30) (57) (51)

255 246*305*

2018A 2019A 2020A

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

* negatively influenced by IFRS16

Page 18: KSB GROUP INVESTOR PRESENTATION

PENSION LIABILITIES

18 KSB Group Investor Presentation I 2021

INCREASING PENSION LIABILITIES DUE TO DECREASING INTEREST RATE

In 2020, pension provisions and similar obligations amount to €670m The increase compared to 2019 was driven by a lower discount rate of 0.7%

(2019: 1.1%) Pension obligations in the KSB Group include defined contribution and

defined benefit plans and contain both obligations from current pensions and future pension benefit entitlement

More than 90% of defined benefit pension plans are attributable to German Group companies

These relate to direct commitments by the companies to their employees based on salary and length of service as well as contributions from employees themselves

Provisions for pensions and similar obligations are calculated on the basis of actuarial reports

COMMENTARYPENSION PROVISIONS (in €m)

Pension provisions YoY Growth Net cash outflows

13.7% 6.5%

€16.8m €17.0m€16.6m

554

630 670

2018A 2019A 2020A

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 19: KSB GROUP INVESTOR PRESENTATION

Capital expenditure reduced by €9m to €98m.

The focus of capital investment activity was the Region Europe, mainly Germany and France. Outside Europe, the highest amounts were invested in our plants in the USA, Australia, India and China

Replacement investment: €42.9m Expansion of capacity: €32.3m Rationalisation investment: €18.7m Environmental protection and

regulatory requirements: €3.6m

CAPEX DEVELOPMENT

19

AVERAGE CAPEX SPEND OVER THE LAST FIVE YEARS OF AROUND €95M

KSB Group Investor Presentation I 2021

CAPEX (in €m) COMMENTARY

Capex YoY Growth

CAPEX BY GEOGRAPHY

34.4% (8.8)%

2019

80

107 98

2018A 2019A 2020A

Europe53%

Americas22%

APAC22%

MEA3%

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 20: KSB GROUP INVESTOR PRESENTATION

OUTLOOK 2021

20

REPORT ON EXPECTED DEVELOPMENTS

KSB Group Investor Presentation I 2021

€m 2020 Forecast 2021

Order intake 2,143.4 2,150 – 2,450

Sales revenue 2,207.9 2,150 – 2,400

EBIT1 70.2 80 - 120

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Note:1 The EBIT forecast does not take into account possible one-off expenses from impairment losses on goodwill, other intangible assets and property, plant and

equipment, and restructuring measures.

Page 21: KSB GROUP INVESTOR PRESENTATION

AGENDA1

2

3

CORE INFORMATION AND MESSAGES

FINANCIALS

“CLIMB 21”

4 DIGITALIZATION

5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

6 APPENDIX

Page 22: KSB GROUP INVESTOR PRESENTATION

“CLIMB21” – SIMPLIFIED, MARKET DRIVEN NEW STRUCTURE

22

NEW ORGANIZATIONAL STRUCTURES TO ENHANCE CUSTOMER FOCUS AND VALUE-ADD

KSB Group Investor Presentation I 2021

Strong market orientation Pumps structured by market area Services with spare part sales responsibility

Engineered pumps Customizable standard pumps Full solution analysis and offer

Valves as stand-alone organization with own sales Service with a strong “SupremeServ” branding and

focus on spare parts business

Focu

sing

Diff

eren

tiatio

nSe

para

tion

NO growth (sales in €bn)

NO value creation (EBT in €bn)

LEGACY KSB

+3%

-5%

Review of end-markets and customer requirements

Decision on focus areas, products and servicesM

arke

t foc

us

FULL BUSINESSRESPONSIBILITY END MARKET

ACCOUNTABILITY

AFTERMARKETFOCUSLEANER

STRUCTURE

1.9 2.5

2009 2019

0.2 0.1

2009 2019

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 23: KSB GROUP INVESTOR PRESENTATION

PORTFOLIO OPTIMIZATION…

23

… WITH A FOCUS ON PROFITABILITY AND COMPLEXITY REDUCTION

KSB Group Investor Presentation I 2021Key focus TransformationSegment focus

…END MARKETDYNAMICS1

ASSESSMENT ON MARKET ATTRACTIVITY BASED ON…

…COMPETITIVEPRESSURE2 …STRENGTH OF

KSB GROUP3

Machinery&Equipment

Food & Beverage

Marine

Metals

Municipal Freshwater

Irrigation

Municipal Wastewater

Desalination

Gas

Nuclear

Coal

Hard Rock Mining

Industrial Minerals

Non-Residential

Residential Downstream

Chemicals

Upstream

Midstream

GGC valves

Butterfly&VRCS valves

Diaphragm valves

Control valves

Spare parts

Services

PUMPS VALVES SERVICEGENERAL INDUSTRY WATER ENERGY BUILDING

SERVICES MINING PETROCHEMICALS/CHEMICALS VALVES SERVICES

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 24: KSB GROUP INVESTOR PRESENTATION

GROWTH OPERATIONAL EFFICIENCYMARGIN EXPANSION

CLIMB 21

UNLOCKING KSB GROUP’S FULL POTENTIAL

24

PATH TO CLEAR VALUE CREATION FOR KSB GROUP SHAREHOLDERS

KSB Group Investor Presentation I 2021

Powerful organizational

measures

Aftermarket focus

Prioritizationof segments

Digitalization

Increasing strategicfocus onvalves

+1%Outgrow GDP p.a.

>8%Return on sales

Clear balance sheetimprovements

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 25: KSB GROUP INVESTOR PRESENTATION

KSB BUSINESS STRATEGY

25

LlFTING KSB TO THE NEXT LEVEL

KSB Group Investor Presentation I 2021

COSTSMARKET SupremeServ

Focuson markets with long-term

growth potential

Customer focus and profitability driving all actions

Raisehigh-margin business

opportunities

Increasing share in spare parts and services

Loweroverall cost base

€ 50 million cost savings

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 26: KSB GROUP INVESTOR PRESENTATION

CORPORATE OBJECTIVE: SUSTAINABLE, PROFITABLE GROWTH

26

RETURN ON SALES

KSB Group Investor Presentation I 2021

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

4.x %

5.x %

6.x %

8.x %

2021 2022 2023 2024 2025

Page 27: KSB GROUP INVESTOR PRESENTATION

AGENDA1

2

3

CORE INFORMATION AND MESSAGES

FINANCIALS

“CLIMB 21”

4 DIGITALIZATION

5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

6 APPENDIX

Page 28: KSB GROUP INVESTOR PRESENTATION

DIGITAL TRANSFORMATION

28

STRIVING FOR HIGH LEVELS OF EFFICIENCY, PERFORMANCE AND FAULT-FREE OPERATION

KSB Group Investor Presentation I 2021

Sensor and transmission module for attachment by magnet to pump (loTplatform)

Cloud-based monitoring

Electronic output adjustment via app (integrated overall concepts)

Pump and valve elements madefrom metal via 3D printing

Remotecontrol

Additive manufacturing

€200m+

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 29: KSB GROUP INVESTOR PRESENTATION

AGENDA1

2

3

CORE INFORMATION AND MESSAGES

FINANCIALS

“CLIMB 21”

4 DIGITALIZATION

5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

6 APPENDIX

Page 30: KSB GROUP INVESTOR PRESENTATION

886,615

SHAREHOLDING STRUCTURE

30 KSB Group Investor Presentation I 2021

ORDINARY SHARES PREFERENCE SHARES

Johannes & Jacob Klein GmbH Free Float

84%

16%

20%

80%

Johannes & Jacob Klein GmbH Free Float

864,712

# SHARES# SHARES % OF SHARE CAPITAL

51%

% OF SHARE CAPITAL

49%

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 31: KSB GROUP INVESTOR PRESENTATION

CORPORATE GOVERNANCE

31 KSB Group Investor Presentation I 2021

MANAGEMENT BOARD

On the board since 01 June 2017

Appointed until 31 May 2023

On the board since 1 July 2017

Appointed until 30 June 2023

On the board since 15 September 2017

Appointed until 14 September 2022

On the board since 13 November 2017

Appointed until 30 November 2023

DR. STEPHAN TIMMERMANN

CFO CSOCEO

DR. MATTHIAS SCHMITZ RALF KANNEFASS DR. STEPHAN BROSS

CTO

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 32: KSB GROUP INVESTOR PRESENTATION

CORE INFORMATIONAND MESSAGES

SUSTAINABLE DEVELOPMENT GOALS

KSB joined the UN Global Compact in 2010.

32 KSB Group Investor Presentation I 2021

ENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

“CLIMB 21”

Page 33: KSB GROUP INVESTOR PRESENTATION

CORPORATE GOVERNANCE

33 KSB Group Investor Presentation I 2021

GOVERNANCE STRUCTURE

Klein, Schanzlin & Becker GmbHJohannes und Jacob Klein GmbH (majority shareholder)

Kühborth-Stiftungs GmbHKSB Foundation

KSB Management SE with Administrative BoardAnnual general meeting Supervisory Board

Other shareholders (free float)

KSB SE & Co. KGaA

0.6% 0.6%99.4% 99.4%

GOVERNANCE STRUCTURE

Legal form:KGaA, Kommanditgesellschaft auf Aktien / limited partnership by shares

KSB SE & Co. KGaA is managed by the general partner KSB Management SE (with Non-executives and Executive Directors)

COMMENTARY

CORE INFORMATIONAND MESSAGES

“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)

Page 34: KSB GROUP INVESTOR PRESENTATION

CLEAR ESG STRATEGY…

34

…WITH A FOCUS ON CLIMATE PROTECTION, HEALTH AND SAFETY AND SOCIAL RESPONSIBILITY

KSB Group Investor Presentation I 2021

MOST RELEVANT SUSTAINABILITY TOPICS

High standards worldwide

GLOBALLY INTEGRATED MANAGEMENT SYSTEM

Fundamental responsibilities of the business in the areas of human rights, labor, environment and anti-corruption

FOLLOWING UN GLOBAL COMPACT PRINCIPLES

Reaching nine sustainability goals by 2025

CONCISE SUSTAINABILITY GOALS

Environment Society Economy

Respect human rights

Equal opportunities

Social responsibility

Sustainability in the supply chains

Resource efficiency

Energy efficient products

Emissions

Compliance

Education andtraining

Product reliability

Occupationalhealth and safety

High Very high

Very high

Relevance for KSB Group

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CORE INFORMATIONAND MESSAGES

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CONCISE SUSTAINABILITY GOALS

35

NINE SUSTAINABILITY GOALS CLEARLY DEFINED BY 2025

KSB Group Investor Presentation I 2021

ENGAGEMENTENVIRONMENT EMPLOYEES

RESOURCE EFFICIENCYWe balance the environmental impact of our

product developments

ENERGY EFFICIENT PRODUCTSOur water pumps will save 850,000 tons CO2

annually

EMMISSIONSWe reduce global CO2 emissions of our

production plants by 30%

EDUCATIONEach employee is trained for at least

30 hours each year

EQUAL OPPORTUNITIES

At least 20 % of our managers will be women

COMMITMENT

We increase employee satisfaction to 80%

OCCUPATIONAL SAFETYWe reduce the days lost due to occupational

accidents to less than 0.3 per employee

SOCIAL RESPONSIBILITY

We support at least 25 social projects worldwide

SUPPLY CHAINWe assess the sustainability performance of

90% of our main suppliers

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AGENDA1

2

3

CORE INFORMATION AND MESSAGES

FINANCIALS

“CLIMB 21”

4 DIGITALIZATION

5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

6 APPENDIX

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(€m) 2019A 2020A H1/2020A H1/2021ASales revenue 2.383 2.208 1.049 1.112Total output of operations 2.381 2.196 1.064 1.123Other income 33 32 16 12

Cost of materials -985 -900 -432 -461

Staff costs -848 -805 -418 -421

Depreciation and amortization expenses -82 -100 -42 -41

Other expenses* -386 -353 -172 -159

EBIT 114 70 15 54Financial income / expenses (net) -11 -7 -3 -3

Income from / expense to investments accounted for using the equity method 1 -2 -1 1

EBT 103 62 10 52Taxes on income -45 -57 -38 -17

Net profit 59 4 -28 35

* since 2020 incl. Other taxes

INCOME STATEMENT

37 KSB Group Investor Presentation I 2021

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BALANCE SHEET

38

ASSETS

KSB Group Investor Presentation I 2021

(€m) 2019A 2020A H1/2021ANon-current asstes 783 675 680

Intangible assets 97 80 76Right-of-use assets 50 42 41Property, plant and equipment 511 501 505Non-current financial assets 2 2 3Other non-financial assets 3 3 3Investments accounted for using the equity methode 24 20 21Deferred tax asstes 95 27 31

Current assets 1.544 1.465 1.536Inventories 545 498 519Contract assets 76 82 94Trade receivables 504 444 464Other financial assets 91 82 42Other non-financial assets 40 27 46Cash and cash equivalents 281 332 371Assets held for sale 8 - -

Total 2.327 2.140 2.216

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BALANCE SHEET

39

EQUITY AND LIABILITIES

KSB Group Investor Presentation I 2021

(€m) 2019A 2020A H1/2021AEquity 863 704 757Non-current liabilities 716 747 720

Deferred tax liabilities 11 8 7Provisions for employee benefits 646 685 661Other provisions 1 3 3Financial liabilities 57 51 49

Current liabilities 749 689 738Provisions for employee benefits 12 10 8Other provisions 68 80 89Financial liabilities 44 32 30Contract liabilites 166 154 165Trade payables 253 238 248Other financial liabilities 31 27 34Other non-financial liabilities 162 136 155Income tax liabilities 9 13 9Liabilities held for sale 4 - -

Total 2.327 2.140 2.216

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KSB GROUP INVESTOR RELATIONS

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FINANCIAL CALENDAR 2021/22

KSB Group Investor Presentation I 2021

Date Publication / Event

09 November 2021 Interim report to September 2021

31 January 2022 Preliminary report on financial year 2021

24 March 2022 Publication Financial Statement 2021,Financial press conference

28 April 2022 Interim report to March 2022

05 May 2022 Annual General Meeting

04 August 2022 Half-year Financial Report 2022

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GLOSSARY

41 KSB Group Investor Presentation I 2021

TERM DESCRIPTION°C Degree Celsius3D Three-dimensionalAPAC Asia-PacificAR Augmented realitybn BillionCAGR Compound annual growth rateCapex Capital expendituresCE Certification markCLIMB 21 KSB Group’s structural and growth programmeCO2 Carbon dioxide

COI COI (Customer Order Intake) includes all KSB Group companies, incl. non-consolidated companies.

EHEDG European Hygienic Engineering and Design GroupEMEA Europe, the Middle East and AfricaEPC Engineering, procurement and constructionESG Environmental, social and corporate governanceGDP Gross domestic productGER GermanyGGC Gate, Globe and Check Valves

TERM DESCRIPTIONGmbH Gesellschaft mit beschränkter HaftungGW Gigawatth HourIE4 Super Premium EfficiencyIoT Internet of thingsISO International Organization for StandardizationIT Information technologyk ThousandKGaA Kommanditgesellschaft auf Aktienkm KilometersLT Long termm Million / metersm³ Cubic metreMWh Megawatt hourp.a. per annumpp Percentage pointSE Societas EuropaeaSES System efficiency serviceST Short termVRCS Valve Remote Control SystemsYoY Year-over-year

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KSB GROUP INVESTOR RELATIONS

42

CONTACTS

KSB Group Investor Presentation I 2021

Dieter PottHead of Finance and Accounting

+49 6233 86 [email protected]

ksb.com/ksb-en/Investor-relations/