KSB : Annual Report 2023 (9.4 MB)

Annual Report 2023

KSB Profile

KSB is a leading supplier of pumps, valves and related service. Its reliable, high-efficiency products are used in applications wherever fluids need to be transported or shut off, covering everything from building services, industry, petrochemicals and chemicals as well as water transport to waste water treatment, energy generation and mining. Founded in 1871 in Frankenthal, Germany, the company has a presence on all continents with its own sales and marketing organisations and manufacturing facilities. Wherever our customers are in the world, more than 190 service centres and around 3,500 service specialists are close at hand to provide spare parts, inspection, servicing, maintenance and repair services under the KSB SupremeServ brand. Our success is based on

continuous innovation that is the fruit of the company's research and development activities.

GENERAL INDUSTRYBUILDING SERVICES

PETROCHEMICALS /

CHEMICALS

WATERENERGY

MINING

VALVES

KSB SUPREMESERV

Digital Annual Report

Online Annual Report with additional functions: ksb.com/online-report

2023 in Figures

Order intake

Sales revenue

€

million 2,960€ +97.4 m | +3.4 %

€

million 2,819€ +245.6 m | +9.5 %

EBIT

Employees

€

million 223.9€ +54.8 m | +32.4 %Compared with 2022

16,038

at 31 December 2023

Five-year Financial Summary

Business Development and Earnings

2023	2022	2021	2020	2019
Order intake	€ m	2,959.5	2,862.1	2,411.7	2,143.4	2,453.8
Sales revenue	€ m	2,819.0	2,573.4	2,343.6	2,207.9	2,383.2
Orders on hand	€ m	1,548.1	1,497.8	1,366.2	1,288.5	1,409.3
Earnings before finance income / expense, income tax,
depreciation and amortisation (EBITDA)	€ m	312.0	259.5	222.1	170.1	195.5
Earnings before finance income / expense and income tax
(EBIT)	€ m	223.9	169.1	141.2	70.2	113.6
Earnings before income tax (EBT)	€ m	209.0	160.7	139.9	61.6	103.4
Earnings after income tax	€ m	176.6	127.3	110.3	4.4	58.5
Free cash flow
(cash flows from operating activities + cash flows from
investing activities)	€ m	176.8	−86.9	87.5	111.6	70.9
Balance Sheet
2023	2022	2021	2020	2019
Balance sheet total	€ m	2,669.8	2,478.9	2,314.4	2,140.0	2,327.0
Investments	€ m	135.6	121.6	103.6	97.6	107.0
Depreciation and amortisation	€ m	88.1	90.4	80.9	99.9	81.9
Net financial position	€ m	324.9	225.6	365.6	304.8	246.3
Equity (incl. non-controlling interests)	€ m	1,216.9	1,125.6	869.1	703.8	862.6
Equity ratio (incl. non-controlling interests)	%	45.6	45.4	37.6	32.9	37.1
Profitability
2023	2022	2021	2020	2019
EBT margin (sales revenue in relation to EBT)	%	7.4	6.2	6.0	2.8	4.3
EBIT margin (sales revenue in relation to EBIT)	%	7.9	6.6	6.0	3.2	4.8
Employees
2023	2022	2021	2020	2019
Number of employees at 31 Dec.	16,038	15,693	15,412	15,076	15,645
Shares
2023	2022	2021	2020	2019
Market capitalisation at 31 Dec.	€ m	1,092.9	644.3	727.8	441.9	536.1
Earnings per ordinary share (EPS)	€	86.83	59.05	53.34	−5.63	24.47
Earnings per preference share (EPS)	€	87.09	59.31	53.60	−5.37	24.73
Dividend per ordinary no-par-value share	€	26.00	19.50	12.00	4.00	8.50
Dividend per preference no-par-value share	€	26.26	19.76	12.26	4.26	8.76

Further information is provided in the Notes to the consolidated financial statements.

Global Presence

Backed up by production and assembly sites around the world, as well as a tight-knit sales and service network, KSB staff are always close at hand.

EUROPE

Austria

Belarus

Belgium

Croatia

Czech Republic

Estonia

Finland

France

Germany

Hungary

Italy

Latvia

Lithuania

LuxembourgNetherlands

Norway

Poland

Portugal

Russia

Serbia

Slovakia

Slovenia

Spain

Sweden

Switzerland

Ukraine

United Kingdom

MIDDLE EAST / AFRICA

Algeria

Angola

Egypt

Ghana

Kenya

Morocco

Namibia

Nigeria

Oman

Qatar

Saudi Arabia

South Africa

Turkey

United Arab Emirates

Zambia

AMERICAS

Argentina

Brazil

Canada

ChileColumbia

Ecuador

Mexico

Panama

Peru

USA

KSB production / assembly sitesKSB sales / service sites

ASIA / PACIFIC

Australia

China

India

Indonesia

Japan

Kazakhstan

Malaysia

New Zealand

Pakistan

Philippines

Singapore

South Korea

Taiwan

Thailand

Vietnam

Management and Issues 2023

Combined Management ReportConsolidated Financial StatementsGeneral Information

1

3

Management and Issues 2023

Consolidated Financial Statements

• 8 Management

• 10 To Our Shareholders

• 12 Report of the Supervisory Board

• 22 A Look Back at 2023

• 26 Combined Separate Non-financial Report

  56 Limited Assurance Report on the Combined Non-financial Report

2

Combined Management Report

• 62 Basic Principles of the Group

  62 Group Business Model

  64 Control System

  65 Research and Development

• 67 Economic Review

  67 Macroeconomic Environment and Sector View

  69 Business Development and Results of Operations

  74 Financial Position and Net Assets

  79 Summary of the Performance in the Financial Year

• 80 Report on Expected Developments

• 82 Opportunities and Risks Report

• 90 Disclosures Relating to KSB SE & Co. KGaA (HGB)

• 96 Acquisition-related Disclosures

• 98 Corporate Governance Statement (Section 315d HGB in Conjunction with Section 289f HGB)

• 99 Statement on the Non-financial Report (Section 315c in Conjunction with Sections

  289c to 289e HGB)

• 100 Description of Key Features of the Internal Control System, the Risk Management System and the Compliance Management System in Accordance with the A.5 DCKG 2023 Recommendation

• 104 Balance Sheet

• 106 Statement of Comprehensive Income

• 108 Statement of Changes in Equity

• 110 Statement of Cash Flows

• 111 Notes

  170 List of Shareholdings

  174 Supervisory Board

  176 Legal Representatives

  178 Proposal on the Appropriation of the Net Retained Earnings of KSB SE & Co. KGaA

4

General Information

• 182 Responsibility Statement

• 183 Independent Auditor's Report

• 194 Glossary

• 196 Contacts

• 197 Financial Calendar

Overviews

• I KSB Profile

• II 2023 in Figures

• III Five-year Financial Summary

• IV Global Presence

Key to Symbols

Reference to table Useful link

Interactive table of contents, links directly to the respective page

Management and Issues 2023

Combined Management Report

1

Consolidated Financial Statements

Management and Issues 2023

8

Management

10

To Our Shareholders

22

12

Report of the Supervisory Board A Look Back at 2023

26

Combined Separate Non-financial Report 56 Limited Assurance Report on the Combined Non-financial Report

General Information

Dr. Matthias Schmitz Managing Director of

KSB Management SE (CFO)Ralf Kannefass Managing Director of

KSB Management SE (CSO)

Dr. Stephan Timmermann Managing Director of

KSB Management SE (CEO)Dr. Stephan Bross Managing Director of

KSB Management SE (CTO)

Dr. Stephan Timmermann

Dear Shareholders and Business Partners,

KSB is able to report on an exceptional financial year in which the company increased its key business figures despite difficult global political conditions.

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.