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The growth of the elevator and escalator industry is driven by two key megatrends, urbanization and technological disruption, and supported by several other trends.

Wide global exposure and strong position in the key growth markets

The global scale of the business provides stability: KONE is present in the Europe, Middle East and Africa area (42% of sales in 2018), Asia-Pacific (38%) and North America (20%).

KONE is one of the leading companies in the industry and has a strong market position especially in the growing Asian markets.


EMEA
North America
China
Rest of Asia-Pacific
New equipment
#2
#4
#1
#1
Maintenance
#3
#4
#1
#2

A life-cycle business with high amount of stable 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. The installed base of elevators and escalators is aging, providing a growing need of equipment modernization.

img_life-cycle

Read more about our business model

Driving competitiveness through innovation and productivity

We retain our challenger attitude and develop our competitiveness by continuously looking for new ways to add value for our customers with our services and solutions. We also systematically strive to improve productivity and quality.

We are proud of our innovation track record. With over 3,000 patents across our businesses, we consider ourselves the innovation leader in our industry and with our partners, we constantly strengthen this position. KONE’s innovative solutions include breakthrough technologies such as the machine-room-less elevator and a superlight hoisting rope that enables elevator travel of up to 1 kilometer.

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

KONE’s business is capital-light. We have manufacturing units in all the key regions. However, we also cooperate with many component suppliers. As a result, the level of tangible and intangible assets is relatively low in the business

img_capital expenditure

Strong cash generation and good dividend yield

We receive advance and progress payments from our customers across businesses and geographies. This enables us to have negative net working capital and strong cash generation.

img_operative cash flow and ebitda

The cash generative business model has enabled steadily increasing dividends for shareholders.

img_divident

High return on capital employed

Good profitability combined with our capital light business model enables high return on capital.

img_roce

Calculation of return on capital employed = [(net income + financing expenses) / (equity + Interest-bearing-debt (average of the figures for the accounting period))] x 100

Key figures and ratios

For interactive analysis options, see Key figures.



2018
2017*
2016
201520142013
Orders received
MEUR7,797
7,554
7,621
7,9596,8136,151
Sales
MEUR9,071
8,797*
8,784
8,6477,3346,933
EBIT
MEUR1,0421,192*
1,293
1,2411,036953
Adjusted EBIT 5)
MEUR1,1121,206*----
Cash flow from operations
(before financing items and taxes)
MEUR1,150
1,263
1,509
1,4741,3451,213
Net working capital 1) 2)
MEUR-758
-876
-1,055
-983-750-612
Fixed assets 1)
MEUR397377
368
345317270
Assets employed 1) 2)
MEUR1,3771,339*
1,108
1,0631,1511,103
Total equity 1)
MEUR3,0813,029*2,796
2,5762,0621,725
Net debt 1)
MEUR-1,704-1,690
-1,688
-1,513-912-622
ROE
%27.732.1*
38.1
45.440.940.1
ROCE
%25.028.8*
34.1
41.737.736.3
Gearing 1)
%-55.3-55.8*
-60.4
-58.7-44.2-36.1
Basic EPS
EUR1.631.86*
2.00
2.011.471.37
Basic dividend per B share 4)
EUR1.651.65
1.55 (4
1.401.201.00
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.
5) In September 2017, KONE introduced a new alternative performance measure, adjusted EBIT, to enhance comparability of the business performance between reporting periods during the Accelerate program. Restructuring costs related to the Accelerate program are excluded from the calculation of the adjusted EBIT. *KONE has applied new IFRS 15 and IFRS 9 standards from January 1, 2018 onwards and some of the 2017 financials are restated retrospectively.