Dear Shareholders and Business Partners,

Global situation

Political elections in many parts of the world have led to investment reticence. Post-pandemic effects such as high interest rates and energy prices also had a noticeable impact, for example causing disruptions in key markets such as the chemical and construction industries.

The wars in Ukraine and the Middle East reflect a fragile world order. New geopolitical power blocs such as the growing BRICS group are changing trade flows and presenting challenges for global corporations.

In an environment marked by continuing uncertainty, we have consistently pursued our customer-oriented strategy and kept KSB on a stable growth path.

Corporate culture

The global KSB Voice employee survey was of particular importance in 2024. We asked around 30 questions to obtain feedback from our employees worldwide. The response rate of 91 % – amounting to over 15,000 participants – was outstanding. The engagement index, which essentially measures employee satisfaction, was 77 %. This figure not only represents a significant increase compared with previous surveys, it is also above the average for the mechanical engineering industry and for companies worldwide conducting such surveys.

We believe that the company’s success depends on the commitment of its employees. It therefore makes us all the more pleased that the various measures we have implemented worldwide to promote motivation and loyalty to the company are bearing fruit. We will continue with our efforts in this area and make KSB an even more attractive employer.

Success story

KSB has developed extremely positively over the last seven years. Everything we have tackled has been sustainable and successful.

The circumstances have not been supportive. Dominated by COVID-19, the war in Ukraine, the cyberattack, inflation and supply bottlenecks, the last few years have been beset with challenging conditions that have tested KSB’s resilience and ability to change.

Today, KSB is in a solid financial position and is systematically moving towards a double-digit return on sales. Shareholders appreciate the company’s reliable capital market and dividend policies – and not just since its inclusion in the SDAX and Prime Standard. Following Climb 21, the introduction of our market-oriented organisational structure, we are now pursuing our Mission TEN30 strategy to ensure even more customer centricity and profitability. The foundation of this strategy is the global software migration to SAP S/4HANA, with which we are simultaneously harmonising and standardising our core processes and aligning them for the future. The continuous strengthening of our profitable service and spare parts business marketed under KSB SupremeServ and the expansion of our standard business are also key pillars in the company’s current strategy.

By introducing the new company logo and brand claim “Solutions. For Life.”, the company realigned its brand image in the 2024 financial year, shining the spotlight on solutions that fulfil people’s everyday needs.

KSB once again significantly increased its investment volume in 2024, focusing on the technological and sustainable modernisation of our buildings as well as on expanding and increasing the efficiency of our production capacities. This future-proofing, which we have been consistently implementing for years, is also a globally visible symbol of our stability and job security.

We are humbly delighted by this successful corporate development. Our unreserved thanks and recognition for this go to our employees.

Outlook

We are anticipating ongoing challenging conditions in the new financial year, including political uncertainty and regional conflicts as well as economic upheavals and changing trade flows. Nevertheless, we are confident that there will also be positive impetus and that any downturns, whether market-specific or country-focused, will be overcome.

We will concentrate our resources on what is important, plan with foresight and adapt to the circumstances. In this way, we will continue to generate substantial value for our shareholders, employees and business partners in the 2025 financial year.