Press Release

KSB Group30 March 2016 / Page 1/2

KSB aims to increase business efficiency

FRANKENTHAL: Pump and valve manufacturer KSB ended its 2015 financial year with a substantial increase in sales revenue of € 153.1 million. Aided by positive currency translation effects, the Group’s sales revenue volume increased by 7.0 % to € 2,334.8 million. Consolidated earnings before taxes improved to € 93.4 million (previous year: € 72.8 million).

However, as the company communicated at its financial press conference on 30 March in Frankenthal, Germany, order intake in 2015 fell short of expectations. At € 2,261.2 million, it was € 60.0 million or 2.6 % down on the previous year. This was primarily due to weak demand in key customer sectors, as well as to the postponement of some major orders from Asia.

In 2016, the KSB Group expects to be able to increase its order intake again. Sales revenue on the other hand will continue to decline, mainly due to the weak order intake in the previous year.

By 2018, KSB aims to improve the structural conditions for long-term profitable growth. This includes measures for sustained cost reductions. As part of an efficiency enhancement programme, KSB intends to decrease its material costs, its staff costs and its overheads by 10 percent. In addition, KSB will continue to tangibly reduce the number of plants, companies and product series by 2018.

As a result of the cost-cutting measures, consolidated earnings before taxes (EBT) in 2016 will be impacted by one-off costs. The expected decline in sales revenue, too, will result in EBT being considerably lower than in 2015. From 2017 onwards, KSB once again expects an upturn in its earnings curve.

KSB is a leading international manufacturer of pumps and valves. The Frankenthal-based Group has a presence on five continents with its own sales and marketing organisations, manufacturing facilities and service operations. The workforce of 16,000 worldwide generates annual sales revenue of more than €2.3billion.

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KSB Aktiengesellschaft Ullrich Bingenheimer

Corporate Communications Tel. + 49 6233 86-2138, Fax -3456

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