Kone Oyj Class B · OMXHEX:KNEBV
Kone Oyj Class B — Kone Oyj B — Q2 2025 Earnings Presentation
28 slides from Kone Oyj Class B's earnings presentation, Jul 18, 2025
Slide 1: KONE H1 2025
KONE H1 2025 Philippe Delorme, President & CEO Ilkka Hara, CFO
Slide 2: Q2 2025: Strategy execution delivering results
Q2 2025: Strategy execution delivering results • Continued strength in resilient Service and Modernization businesses • Consistent profitability improvement Growth in Growth in • Good progress in key strategic metrics Service sales* Modernization sales* Decline in Growth in Greater China rest of wor
Slide 3: Q2 2025 financial highlights: growth in all key metrics
Q2 2025 financial highlights: growth in all key metrics Order momentum solid, Sales growth driven Profitability improvement Steady progress in with high single-digit by Service and driven by favorable cash generation growth outside China Modernization business mix Orders received*, EUR bn Sales*, EU
Slide 4: Exciting customer references across the world
Exciting customer references across the world Modernization Service New Building Solutions Im Tiergarten apartments, Hong Kong MTR, Hong Kong, China Jakarta Annex Center Phase 1, Zurich, Switzerland Indonesia
Slide 5: Executing our strategy with speed and precision
Executing our strategy with speed and precision Accelerate Digital Drive Modernization • ~38% connectivity in maintenance base • ~20% sales growth year-to-date • Field productivity tools live in 30 countries • ~30% order growth for the KONE MonoSpace Upgrade partial modernization solution Easiest to
Slide 6: Important recognition for our sustainability leadership
Important recognition for our sustainability leadership KONE Sustainability index 100 Highest scoring E&E company on Time and Statista’s list of the world’s most sustainable 50 companies 0 2024 baseline 2025 target 2030 ambition Environment Social Governance KONE ranked the 15th most sustainable Hig
Slide 7: Appointment to the Executive Board
Appointment to the Executive Board Michelle Wen Michelle Wen appointed Executive Vice President, Procurement as of August 1, 2025. Michelle has held several global leadership positions in procurement, purchasing, supply chain, and supplier quality across various industries in Europe, Asia and the Un
Slide 8: Market development
Market development
Slide 9: Market development in Q2 2025
Market development in Q2 2025 North Europe APMEA Greater KONE’s indicative orders America China received split* Americas New Building Solutions in units +++ - +++ --- Europe APMEA Service in units + + ++ + Greater China * Covers orders received from New Building Modernization in monetary value ++ ++
Slide 10: Q2 Financials
Q2 Financials JULY 18, 2025 HALF-YEAR FINANCIAL REPORT JANUARY-JUNE 2025 10
Slide 11: Orders received
Orders received Solid growth momentum outside China MEUR MEUR -0.5% 10,000 9,131 +3.0% at comp FX 8,853 8,759 8,578 8,185 8,000 -79 2,328 2,316 6,000 Americas +++ 4,563 4,695 Europe - 4,000 APMEA +++ Greater China -- 2,000 Margin of orders stable y/y 0 2020 2021 2022 2023 2024 1-6/ 1-6/ Q2/2024 New
Slide 12: Sales
Sales High single-digit growth in Service, Modernization increased nearly 20% MEUR MEUR +1.8% 12,000 10,907 10,952 11,098 10,514 +4.9% at comp. FX 9,939 10,000 99 -85 2,850 8,000 2,801 -59 94 6,000 5,369 5,522 -5.2% +8.6% +19.9% Americas +10.3% 4,000 Europe +6.5% APMEA +15.9% 2,000 Greater China -8.
Slide 13: Adjusted EBIT and profitability
Adjusted EBIT and profitability Margin expansion supported by favorable business mix MEUR, % MEUR, % 12.6% 12.5% 1,600 11.7% 11.9% 12.2% 11.4% 11.1% 11.3% 1,400 1,310 1,303 1,251 9.9% 1,248 -6 347 1,200 1,077 1,000 335 800 597 627 600 400 + Business mix - Margin decline in China 200 - R&D expenditur
Slide 14: Cash flow from operations and net working capital
Cash flow from operations and net working capital Cash flow improved due to earnings growth and changes in working capital Cash flow from operations*, MEUR Net working capital**, MEUR 6/2024 12/2024 6/2025 2,000 1,908 1,829 1,800 1,589 1,600 1,485 1,400 1,200 1,000 851 800 755 711 -783 600 -827 -843
Slide 15: Market and business outlook
— "A Market and business outlook
Slide 16: Market outlook for 2025 (updated)
Market outlook for 2025 (updated) Resilient growth outlook in Service and Modernization North Europe APMEA China America New Building Solutions in units stable + ++ --- Service in units + + ++ + Modernization in monetary value +++ ++ +++ +++ - - - Significant decline (>10%), - - Clear decline (5-10%
Slide 17: Business outlook for 2025 (specified)
Business outlook for 2025 (specified) Supporting our Burdening our performance performance Sales Strong growth in China under pressure • KONE expects its sales to grow 2-5% at Service and due to New Building comparable exchange rates Modernization Solutions market Solid order book Slight decline in
Slide 18: Summary
Summary • Service and Modernization growth demonstrates resilience • Good progress in strategic metrics driven by consistent execution • On-track to delivering on financial targets
Slide 19: Slide 19
Slide 20: Appendix
Appendix JULY 18, 2025, HALF-YEAR FINANCIAL REPORT JANUARY-JUNE 2025 20
Slide 21: 4-6/2025 Sales split
4-6/2025 Sales split By business By Area 21% 21% 24% (18%) (25%) (24%) 38% (42%) 15% (14%) 41% 39% (40%) (38%) New Building Solutions Americas Service Europe Modernization Asia-Pacific, Middle East and Africa 4-6/2024 figures in brackets. Figures in charts are rounded and at historical exchange rate
Slide 22: Currencies
Currencies Sales by currencies Currency impact* Main currencies 4-6/2025 Q2/2025 Q2/2024 2024 MEUR Q2 FY MEUR EUR average average average Other Sales -85 ca. -310 EUR / CNY 7.9086 7.8038 7.7793 EBIT -6 ca. -50 EUR / USD 1.0920 1.0828 1.0826 Orders received -79 ca. -280 EUR / GBP 0.8393 0.8557 0.8469
Slide 23: Q2 2025 key figures
Q2 2025 key figures Comparable Comparable 1–12/2024 Q2/2025 1–12/2023 Q2/2024 Change Change change change Orders Ordersreceived received MEUR MEUR 2,316.2 8,758.9 2,327.6 8,577.7 -0.5% 2.1% 3.0% 3.3% Order Orderbook book MEUR MEUR 8,699.4 9,058.6 9,326.6 8,715.7 -6.7% 3.9% -0.9% 1.4% Sales Sales MEU
Slide 24: 1-6/2025 key figures
1-6/2025 key figures Comparable Comparable 1–12/2024 1-6/2025 1–12/2023 1-6/2024 Change Change change change Orders Ordersreceived received MEUR MEUR 4,694.6 8,758.9 4,563.3 8,577.7 2.9% 2.1% 4.0% 3.3% Order Orderbook book MEUR MEUR 8,699.4 9,058.6 9,326.6 8,715.7 -6.7% 3.9% -0.9% 1.4% Sales Sales M
Slide 25: Balance sheet – assets employed
Balance sheet – assets employed MEUR Jun 30, 2025 Jun 30, 2024 Dec 31, 2024 Assets employed Goodwill 1,511.1 1,509.9 1,558.4 Other intangible assets 334.2 316.0 333.3 Tangible assets 865.0 823.1 898.5 Shares and other non-current financial assets 107.4 86.4 98.9 Net working capital -842.8 -782.8 -82
Slide 26: Net working capital
Net working capital* MEUR Jun 30, 2025 Jun 30, 2024 Dec 31, 2024 Net working capital Inventories 835.2 845.4 856.7 Advance payments received and deferred revenue -1,922.4 -1,924.2 -2,016.9 Accounts receivable 2,331.8 2,530.7 2,494.8 Deferred assets and income tax receivables 880.8 846.4 812.5 Accrua
Slide 27: KONE in Greater China
KONE in Greater China New Building Solutions market Greater China’s share of KONE’s orders received New Building Solutions orders received in units vs. market and sales development Monetary value (at comp. FX) 50 45 KONE’s New Building Solutions >20% 24% 20% 40 >25% >35% orders declined clearly in u
Slide 28: Market activity in China
Market activity in China Construction activity under pressure, growth opportunities in Service and Modernization Q2 2025 y/y H1 2025 y/y Real estate investment -12.1% -11.2% Residential sales volume -5.2% -3.7% New starts -16.4% -20.0% Completion -15.5% -14.8% New home prices in 70 largest cities (J