1. We are a global market leader in pumps and valves
KSB is a hidden champion. Although we do not regularly make headline news in the business section, we lead the market in our field. We are especially customer-focused as our customers appreciate that we are familiar with their precise needs and adapt pumps and valves in line with their requirements.
Thanks to our foundries, materials development and state-of-the-art equipment for additive manufacturing, we are able to develop and manufacture tailored pumps and valves for even the most demanding of applications.
Back in 1871, KSB established a worldwide reputation for outstanding German engineering and technical innovation. In our six Market Areas, i.e. General Industry, Mining, Energy, Building Services, Petrochemicals / Chemicals and Water – we are a leader or rank among the top three suppliers.
This view is also shared by the Wirtschaftswoche business magazine which included us in its ranking of German global market leaders.
2. The trust placed in us by our customers often secures business relationships that last for decades.
Our customers rely on the experience that KSB has gained in its 150 years of business. They know that they can trust in the quality and reliability of our products as well as the competitive edge we have gained through our own research and development.
This is why they frequently use KSB products in critical areas of their operations that demand maximum reliability and efficiency. For example, when it comes to the drinking water supply of cities or as coolant pumps in power plants.
This level of trust makes for long-term customer relationships that often last decades. Today, we therefore have a broad base of KSB pumps and valves to the value of 30 billion euros installed worldwide which, in addition to new business pursued, provides us with a solid, high-margin business in service and spare parts. This currently accounts for 35 percent of our customer order intake.
3. We are positioned in diverse and growing markets
Efficient, reliable pumps and valves are required in all regions of the world and in all sectors. KSB has production sites, service centres, foundries and sales locations worldwide. Our distribution network spans more than 100 countries.
Europe is the most important region by far as it accounts for 54 percent of annual sales revenue. We are also very well represented in the fast-growing Region Asia / Pacific where we currently generate 23 percent of our sales revenue. The remaining percent are generated in the Regions America North and America South as well as the Region Middle East / Africa / Russia.
This global and diversified positioning makes us independent of the cycles of a single economic sector or region.
Equally broad and mixed is our portfolio of customers. Our clients come from a wide range of sectors stretching from general industry and energy to water and mining.
In this context, we focus on areas of which we can expect sustainable, profitable growth and withdraw from those that do not meet these requirements. Our goal is to outpace growth in each of our target markets by one percentage point every year.
4. We have a clearly defined strategy for growth
KSB has a sound financial base and enjoys a first-class reputation. Our objective is to further increase our market share and profitability. This is why we launched CLIMB 21, an ambitious strategic project for achieving sustainable and profitable growth.
The project focuses on portfolio optimisation that consistently points the company in the direction of growing markets where stable earnings can be generated. To better serve these markets, we have introduced a new organisational structure. We have grouped our pump business into six Market Areas in which either the standard or engineered business prevails. The valves business has also been restructured to better address market potential.
Service and spare parts business operate under the KSB SupremeServ brand and are an important driver of profitable growth.
This is why we are investing in employee training, new service centres and improving logistics so that we can increase the share of service and spare parts business in sales revenue from 35 percent to 40 percent by the year 2025. At the same time, we offer our customers digitally based solutions such as remote monitoring and 3D printing of spare parts to further boost efficiency, performance and reliability.
By leveraging these measures and optimising costs, we boost achieving our objective of increasing our return on sales to over eight percent by the year 2025.