Dividends and splits

Splits
Since 1999, the KONE share has been split five times: 1999 (1:3), 2002 (1:3), 2005 (1:1), 2008 (1:1) and 2013 (1:1).

Dividends
In accordance with the Articles of Association, class B shares are preferred for a dividend, which is at least one percent and no more than 2.5 percent higher than the dividend paid to the holders of class A shares, calculated from the accounting par value of the share. The accounting par value of the share is EUR 0.125.

Payment of dividends
KONE Corporation's Annual General Meeting was held in Helsinki on February 28, 2023. The General Meeting approved dividends in line with the Board of Director's proposal of EUR 1.7475 for each of the class A shares and EUR 1.75 for each of the outstanding class B shares. The date of record for dividend distribution was March 2, 2023 and dividends were paid on March 9, 2023.

Changes in the withholding taxation of dividends paid to holders of nominee registered shares entered into force in 2021. As a starting point, withholding tax of 35% will be withheld from dividend payments made on nominee registered shares. In case the custodians are registered with the Finnish Tax Administration’s Register of Authorised Intermediaries, lower withholding tax can be applied based on the required additional information collected. Any tax withheld in excess can be reclaimed after the year of the dividend payment by submitting a refund application to the Finnish Tax Administration, either on paper (form for corporate entities here, and for individuals here), or electronically. You may also be able to receive a refund already during the year of dividend payment via your registered custodian. Please contact your custodian for further information.

Additional information on withholding tax reclaims can be obtained from the Tax Administration either by e-mail whtreclaims@vero.fi (for corporations only) or via the Tax Administration general telephone and chat helplines (for both individuals and corporations). Please note that KONE does not process withholding tax reclaims.

Dividends paid to Finnish tax resident holders of nominee registered shares may as of 2020 have been subject to withholding of 50% tax prepayment (ennakonpidätys). Any excess tax prepayment will be credited in the normal tax assessment process where the shareholder reports their dividend income to the Finnish Tax Administration.

In the table above for 2012-2005 the figures have been adjusted taking into account the share issue without payment (split) taking effect on December 5, 2013. In addition, for 2007-2005 the figures have been adjusted taking into account the share issue without payment (split) on February 28, 2008.

Kone Corporation demerged into two new listed corporations, KONE Corporation and Cargotec Corporation. The demerger was registered in the trade register on 1 June, 2005. Hence, the dividends shown in the table below illustrate the situation that existed before the demerger.

KONE has not defined a specific target for dividends or share buy-backs. The dividend proposal by the Board of Directors is determined on the basis of the overall business outlook, business opportunities, as well as the present capital structure and the anticipated changes in it.

In the case of dividend distribution, the dividend paid on the class B share is higher than that on the class A share. The difference between the dividends is at minimum one (1) percent and at maximum two-and-a-half (2.5) percent, calculated from the accounting par value of the share. The accounting par value of the share is EUR 0.125.