WHY INVEST IN KONE?

KONE is one of the leading companies in the elevator and escalator industry, with globally diversified operations

Four global megatrends support the growth of the elevator and escalator business: urbanization, demographic change, increasing focus on safety and the increasing importance of environmental considerations.

GLOBAL EXPOSURE

The global scale of the business provides stability: KONE is present in the Europe, Middle East and Africa area (40% of sales in 2016), Asia-Pacific (41%) and North America (19%).

A LIFE-CYCLE BUSINESS WITH HIGH AMOUNT OF SERVICE REVENUE

  • KONE’s business model is to provide solutions for the full lifecycle of equipment, starting from the sale of new equipment, through maintenance and modernization.
  • Strong megatrends supporting new equipment market growth, which feeds into growth of equipment in maintenance.
  • Recurring business model in maintenance with a strong cash flow profile.
  • The installed base of elevators and escalators is aging, providing a growing need of equipment modernization.

CONSTANT DEVELOPMENT OF COMPETITIVENESS

With constant development of competitiveness, KONE has grown faster than the market.

CAPITAL-LIGHT AND CASH-GENERATIVE BUSINESS MODEL

  • Low amount of fixed assets required
  • Negative working capital
  • High return on invested capital

Key figures and ratios

For interactive analysis options, see Key figures.



2016
2015201420132012
2011
2010
Orders received
MEUR7,621
7,9596,8136,1515,4964,4653,809
Sales
MEUR8,784
8,6477,3346,9336,2775,2254,987
EBIT (excl. one-time items)
MEUR1,293
1,2411,036953829725696
Cash flow from operations
(before financing items and taxes)
MEUR1,509
1,4741,3451,2131,071820857
Net working capital 1) 2)
MEUR-1,055
-983-750-612-439
-361
-394
Fixed assets 1)
MEUR368
345317270262
232
205
Assets employed 1) 2)
MEUR1,108
1,0631,1511,1031,260
1,205
851
Total equity 1)
MEUR2,783
2,5762,0621,7251,834
2,034
1,601
Net debt 1)
MEUR-1,688
-1,513-912-622-574-829-750
ROE
%38.1
45.440.940.132.135.536.5
ROCE
%34.1
41.737.736.329.434.334.8
Gearing 1)
%-60.4
-58.7-44.2-36.1-31.3-40.8-46.8
Basic EPS
EUR2.00
2.011.471.371.23 (3
1.15 (3
2.1
Basic dividend per B share 4)
EUR1.55 (4
1.401.201.000.880.700.45
Comparative figures for 2012 have been restated according to the revised IAS 19 'Employee Benefits'.
1) At the end of the period;
2) Including tax receivables and liabilities, accrued interest and derivative items;
3) Excluding one-time items. Including one-time items, basic earnings per share was EUR 1.17 in 2012 and EUR 1.26 in 2011.
4) In addition, KONE has distributed extraordinary dividends, EUR 0.33 for 2009, EUR 0.75 for 2011 and EUR 0.65 for 2012. 2016 board's proposal to the AGM.