PROPOSAL ON THE APPROPRIATION OF THE NET RETAINED EARNINGS OF KSB AG

We will propose to the Annual General Meeting on 14 May 2014 that the net retained earnings of € 24,342,969.55 of KSB AG, containing retained earnings brought forward of € 204,605.10, be appropriated as follows:

Distribution of a dividend of
€ 12.00 per ordinary no-par-value share
€ 10,639,380.00
and, in accordance with the Articles of Association,
€ 12.26 € per preference no-par-value share
€ 10,601,369.12
Appropriation to revenue reserves € 3,000,000.00
Total € 24,240,749.12
Carried forward to new account € 102,220.43
€ 24,342,969.55

Frankenthal, 14 March 2014

The Board of Management

The annual financial statements of KSB AG were prepared in accordance with German accounting principles. They are published in the Bundesanzeiger (German Federal Gazette). The annual financial statements can also be downloaded from our web site at www.ksb.com, or sent in print form on request.