KSB : Quarterly financial report 31 March 2024 (208.2 KB)

KSB Group

Quarterly Financial Report First Quarter 2024

Financial Report for the First Quarter of 2024

KSB continues its positive trend of the previous year in the first quarter of 2024

• Increase in order intake, sales revenue and EBIT
• KSB SupremeServ continues to drive this development
• Forecast for key performance indicators confirmed

The KSB Group started the 2024 financial year with increases in order intake, sales revenue and earnings before finance income / expense and income tax (EBIT). The EBIT margin reached 7.0 % (previous year: 6.8 %).

Order intake

In the first three months, the order intake came to ŭ 862.6 million. This indicates a slight increase compared with ŭ 859.0 million in the previous year. An increase in major orders in the project business compensated for a decline in orders in the standard business.

The order intake of ŭ 452.9 million (previous year: ŭ 477.2 million) in the Pumps Segment was a significant ŭ 24.3 million below the comparative figure for the first quarter of 2023. The Mining operating segment saw a decline in order intake as compared with the prior-year figure that included major orders. By contrast, order intake in the Energy operating segment increased owing to two important major orders in the first three months of 2024. Order intake in the Standard Markets operating segment was lower, partly due to an increase in major orders in the water business in the comparative prior-year period.

The Valves Segment's order intake rose by ŭ 7.2 million to ŭ 127.0 million (previous year: ŭ 119.9 million), which corresponds to 6.0 % growth. This was driven mainly by several major orders in the petrochemical / chemical business.

Order intake in the KSB SupremeServ Segment, which covers all service and spare parts activities, went up substantially by ŭ 28.0 million, or 8.0 %, to ŭ 282.7 million (previous year: ŭ 261.9 million). This is mainly due to increased spare parts sales in the energy and mining business.

Overall, Europe again accounted for the largest business volume by far of all the Group's Regions. This is reflected in the Region's total order intake of ŭ 420.6 million (previous year: ŭ 413.2 million). At 1.8 %, the Region Europe also showed the largest percentage growth in the Group. The Region Asia / Pacific's order intake grew by 1.5 % to ŭ 236.2 million compared with the same prior-year period (previous year: ŭ 232.8 million). Order intake in the Region Americas was increased by ŭ 0.3 million year on year to ŭ 165.2 million (previous year: ŭ 164.9 million). This corresponds to an increase of 0.2 %. By contrast, order intake in the Region Middle East / Africa / Russia, particularly in the South African subsidiary, fell to ŭ 40.6 million (previous year: ŭ 48.0 million).

Sales revenue

Sales revenue increased significantly by 3.8 % (+ ŭ 25.2 million) to ŭ 692.9 million in the first quarter of 2024. All Segments contributed to this increase.

Sales revenue in the Pumps Segment went up slightly by ŭ 6 million to ŭ 366.8 million (previous year: ŭ 360.9 million). Sales revenue in the Energy and Mining operating segments, which include project business in particular, as well as sales revenue in the Standard Markets operating segment contributed to this development, each with a slight increase.

The Valves Segment's sales revenue rose to ŭ 93.8 million (previous year: ŭ 86.5 million), representing growth of ŭ 7.4 million. This is attributable, among other things, to positive development in the subsidiaries in the Regions Europe and Asia / Pacific.

Sales revenue in the KSB SupremeServ Segment increased to ŭ 232.2 million (previous year: ŭ 220.3 million). The pumps spare parts business made the greatest contribution here, including the Energy Market Area.

As is the case with order intake, Europe also accounted by far for the largest share of sales revenue of all the Group's Regions. Sales revenue in the Region Europe totalled ŭ 351.2 million (previous year: ŭ 348.7 million). This equates to an increase of 0.7 % year on year. The Region Asia / Pacific increased sales revenue by ŭ 6.2 million, or 4.0 %, year on year to ŭ 162.0 million (previous year:

• 155.8 million). Sales revenue also developed positively in the Region Americas with ŭ 140.7 million (previous year: ŭ 125.2 million) as well as in the Region Middle East / Africa / Russia with ŭ 39.0 million (previous year: ŭ 38.0 million).

EBIT

EBIT increased to ŭ 48.4 million year on year (previous year: ŭ 45.2 million). The EBIT margin improved slightly compared with the same prior-year quarter and amounted to 7.0 % in the first quarter of 2024 (previous year: 6.8 %). The growth in sales revenue, in particular, contributed to the improvement in EBIT. At ŭ 43.1 million (previous year: ŭ 40.0 million), the KSB SupremeServ Segment made the largest contribution to EBIT. The Pumps Segment achieved EBIT of ŭ 5.4 million (previous year: ŭ 8.3 million). The Valves Segment improved its EBIT to

• - 0.1 million (previous year: ŭ - 3.2 million) and thus to an almost break-even level.

Free cash flow

Free cash flow rose from ŭ 1.7 million in the comparative prior-year period to

• 31.4 million in the first quarter of 2024. Cash flows from operating activities contributed significantly to this strong increase due to the improved working capital. The KSB Group's net financial position, i.e. the difference between interest- bearing financial assets on the one hand and financial liabilities on the other, increased from ŭ 324.9 million as at 31 December 2023 to ŭ 354.0 million.

Outlook for 2024

Drawing on its global positioning and broad product range, KSB still expects to achieve the following financial performance indicators:

• Order intake: ŭ 2,800 million to ŭ 3,150 million
• Sales revenue: ŭ 2,700 million to ŭ 3,050 million
• EBIT: ŭ 210 million to ŭ 245 million

In addition, KSB confirms the forecasts contained in its 2023 Annual Report for the Pumps, Valves and KSB SupremeServ Segments.

The forecast may be influenced by the economic situation, which is characterised by global political unrest, continued weak demand in Europe and the slowdown in economic momentum in China.

Forward-looking statements

This report contains forward-looking statements and information that are based upon the assumptions of the Managing Directors. They express current forecasts and expectations with regard to future events. As a result, these forward-looking statements and information are exposed to risks and uncertainties that lie outside the Management's sphere of influence.

KSB wishes to point out that actual events or results may differ materially from the forward-looking statements and information presented, if opportunities, risks and uncertainties should materialise, or if the assumptions underlying the statements prove to be inaccurate.

Summary of Key Performance Indicators

Employees

Financial Calendar

8 May 2024

Annual General Meeting

Frankenthal

31 July 2024

Half-year financial report

January - June 2024

12 November 2024

Quarterly financial report

January - September 2024

30 January 2025

Preliminary report on the financial year 2024

27 March 2025

Financial press conference

Frankenthal

6 May 2025

Quarterly financial report

January - March 2025

Contacts

EDITOR

KSB SE & Co. KGaA

Johann-Klein-Strasse 9

67227 Frankenthal, Germany

Tel. +49 6233 86-0

GROUP INFORMATION

You will find the latest news on the KSB Group at: www.ksb.com

Should you need additional information, please contact:

INVESTOR RELATIONS

Dieter Pott

Tel. +49 6233 86-2615

E-mail:investor-relations@ksb.com

COMMUNICATIONS

Sonja Ayasse

Tel. +49 6233 86-3118

E-mail: sonja.ayasse@ksb.com