The Board of Directors of KONE decided on a new option plan

Stock Exchange Release Published 20/12/2013

KONE Corporation, stock exchange release, December 20, 2013 at 12.30 p.m. EET

KONE Corporation's Board of Directors decided at its meeting on December 20, 2013 to grant stock option rights to approximately 530 employees of its global organization based on the authorization received from the shareholders' meeting on March 1, 2010.  The stock options are granted in order to encourage key personnel for long-term efforts to grow shareholder value, and to increase their commitment to the company by offering them an internationally competitive incentive program. The company's Board Members, President and CEO, Executive Board Members and other key personnel covered by KONE's share-based incentive programs other than option programs are not included in the option plan.

The stock options are to be marked with the symbol 2014 and a maximum total of 1,500,000 options will be granted. Each stock option entitles its holder to subscribe for one (1) new or an existing company's own class B KONE share. The class B shares for which these stock options can be exchanged constitute no more than 0.3 % of the company's total number of shares. The share subscription period for the stock options 2014 will be April 1, 2016 - April 30, 2018. The share subscription period begins only if the financial performance of the KONE Group for the financial years 2014-2015 based on the total consideration of the Board of Directors is equal to or better than the average performance of the key competitors of KONE. If the above-mentioned prerequisite does not fulfill, the stock options expire based on the consideration and in the extent and manner decided by the Board of Directors and the terms of the stock options. The share subscription price for the stock option 31.80 euros per share and is further reduced in situations mentioned in the terms, for example with dividends distributed before the subscription of the shares.

The terms of the Stock Option Plan 2014 are included in their entirety as an attachment and they are also available on KONE's website.

Additional information on KONE's compensation systems is available in the "Investors - Corporate Governance" section on KONE's website at www.kone.com.    

For further information, please contact:

Jukka Ala-Mello, Secretary to the Board, tel. +358 (0)204 75 4226

Sender:

KONE Corporation

Jukka Ala-Mello  
Secretary to the Board  
   
Anne Korkiakoski
Executive Vice President
Marketing & Communications

About KONE

KONE is one of the global leaders in the elevator and escalator industry. The company has been committed to understanding the needs of its customers for the past century, providing industry-leading elevators, escalators and automatic building doors as well as innovative solutions for modernization and maintenance. The company's objective is to offer the best People Flow(TM) experience by developing and delivering solutions that enable people to move smoothly, safely, comfortably and without waiting in buildings in an increasingly urbanizing environment. In 2012, KONE had annual net sales of EUR 6.3 billion and approximately 40,000 employees. KONE class B shares are listed on the NASDAQ OMX Helsinki Ltd in Finland.

www.kone.com

Option terms 2014


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