ksb group investor presentation
TRANSCRIPT
K S B G R O U PINVESTOR PRESENTATION2021
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
AGENDA1
2
3
CORE INFORMATION AND MESSAGES
FINANCIALS
“CLIMB 21”
4 DIGITALIZATION
5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
6 APPENDIX
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)
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)
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
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
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)
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)
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)
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)
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)
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)
AGENDA1
2
3
CORE INFORMATION AND MESSAGES
FINANCIALS
“CLIMB 21”
4 DIGITALIZATION
5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
6 APPENDIX
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)
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)
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
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)
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)
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.
AGENDA1
2
3
CORE INFORMATION AND MESSAGES
FINANCIALS
“CLIMB 21”
4 DIGITALIZATION
5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
6 APPENDIX
“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)
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)
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)
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)
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
AGENDA1
2
3
CORE INFORMATION AND MESSAGES
FINANCIALS
“CLIMB 21”
4 DIGITALIZATION
5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
6 APPENDIX
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)
AGENDA1
2
3
CORE INFORMATION AND MESSAGES
FINANCIALS
“CLIMB 21”
4 DIGITALIZATION
5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
6 APPENDIX
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)
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)
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”
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)
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
Rel
evan
ce fo
r sta
keho
lder
s
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
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
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
AGENDA1
2
3
CORE INFORMATION AND MESSAGES
FINANCIALS
“CLIMB 21”
4 DIGITALIZATION
5 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
6 APPENDIX
(€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
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
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
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
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
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
KSB GROUP INVESTOR RELATIONS
40
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
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
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
CORE INFORMATIONAND MESSAGES
“CLIMB 21” DIGITALIZATIONFINANCIALS APPENDIXENVIRONMENTAL, SOCIALAND GOVERNANCE (ESG)
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/