Slide 1: KONE Q1 2024
KONE Q1 2024 Philippe Delorme, President & CEO Ilkka Hara, CFO
Slide 2: Q1 2024: Sales growth and improving profitability
Q1 2024: Sales growth and improving profitability • Resilient business model: Over 10% growth in Modernization orders and 9% sales growth in Service* • Good progress in CO2 reduction with 25% decrease in Scope 1&2 emissions in 2023 versus 2018 baseline • 2024 guidance specified and market outlook up
Slide 3: Q1 2024 financial highlights
Q1 2024 financial highlights Solid orders received in many Continued strong growth Fifth consecutive quarter of parts of the world, with >10% in Service and adjusted EBIT-% improvement growth in Modernization Modernization sales and solid cash flow Orders received, EUR bn Sales, EUR bn Adjusted EBIT
Slide 4: Q1 business highlights
Q1 business highlights New Building Solutions Service Modernization • Important infrastructure project wins • ~7% growth in our Service base incl. • Significant infrastructure project wins in Americas such as New York City bolt-on acquisitions such as Milan Metro Transit • Passed 30% connectivity* i
Slide 5: Strengthening our position as a leader in sustainability
Strengthening our position as a leader in sustainability Our ambitious work to meet our science-based targets continued Recognition for our sustainability leadership Scope 1 & 2 emissions* Scope 3 emissions relative to A position on CDP’s Supplier products ordered** Engagement Leaderboard in top 450
Slide 6: Market development
— "A Market development ‘APRIL 24, 2024
Slide 7: Global E&E markets in 2023, KONE gaining market share in seven out of eight markets
Global E&E markets in 2023, KONE gaining market share in seven out of eight markets Global E&E markets in KONE’s market position and market share development (units) 2023 Americas Greater China • New Building Solutions New Building Solutions Service New Building Solutions Service market was <1 milli
Slide 8: Market development in Q1 2024
Market development in Q1 2024 North Europe APMEA China • In New Building Solutions America market gradual stabilization in Western markets; continued New Building Solutions in units -- stable +++ -- difficult environment in China Service in units + + ++ ++ • Positive market environment in Service an
Slide 9: Q1 Financials
Q1 Financials APRIL 24, 2024 INTERIM REPORT JANUARY-MARCH 2024
Slide 10: Orders received
Orders received Solid orders received in many parts of the world, especially in Modernization MEUR MEUR -1.2% 10,000 9,131 9,000 8,853 +1.6% at comp FX 8,400 8,578 8,185 8,000 7,797 35 7,000 2,263 -62 6,000 2,236 New Building 5,000 Solutions: - 4,000 Service: +++ 3,000 Modernization: +++ 2,000 Margi
Slide 11: Sales
Sales Continued strong growth in Service and Modernization sales MEUR MEUR 10,907 10,952 +0.5% 11,000 10,514 9,982 9,939 10,000 +2.7% at comp. FX 9,071 9,000 -55 2,568 8,000 2,557 23 89 7,000 -45 6,000 -4.2% +9.0% +5.3% 5,000 4,000 Americas +7.9% 3,000 Europe +2.2% 2,000 APMEA +8.9% 1,000 Greater Ch
Slide 12: Adjusted EBIT and profitability
Adjusted EBIT and profitability Fifth consecutive quarter of margin improvement MEUR, % MEUR, % 12.3% 12.4% 12.6% 12.5% 1,600 9.5% 10.2% 11.4% 1,400 1,310 1,237 1,251 9.9% 1,248 -4 262 1,200 1,112 1,077 1,000 242 800 600 + Better pricing in deliveries + Business line mix 400 + Savings from operating
Slide 13: Cash flow from operations and net working capital
Cash flow from operations and net working capital Solid cash flow, moderate improvement in net working capital Cash flow from operations*, MEUR Net working capital**, MEUR 2,000 1,908 3/2023 12/2023 3/2024 1,829 1,600 1,550 1,485 1,200 800 755 -861 -922 398 -1,032 400 456 0 + Accounts receivable 201
Slide 14: Market and business outlook
— "A Market and business outlook ‘APRIL 24, 2024
Slide 15: Market outlook for 2024 (updated)
Market outlook for 2024 (updated) Outlook upgraded for North America and Europe North Europe APMEA China America New Building Solutions in units stable stable ++ -- Service in units + + ++ ++ Modernization in monetary value ++ ++ +++ +++ - - - Significant decline (>10%), - - Clear decline (5-10%), -
Slide 16: Business outlook for 2024 (specified)
Business outlook for 2024 (specified) Supporting our Burdening our performance performance Sales Strong growth in Declining New • KONE expects its sales to grow 0-5% at comparable Service and Building Solutions exchange rates in 2024 Modernization market in China Better pricing coming Persistent cos
Slide 17: Summary
Summary • Good start to the year with sales growth and improved profitability • Strong growth in Service and Modernization continues • Positive outlook in the majority of our markets KONE’s Capital Markets Day will be held in Helsinki on Friday, September 27
Slide 18: Slide 18
Slide 19: Appendix
Appendix APRIL 24, 2024 INTERIM REPORT JANUARY-MARCH 2024 19
Slide 20: KONE's market position in 2023
KONE’s market position in 2023 New Building Solutions market in 2023 Equipment base in 2023 <1 million units <25 million units 3% 6% 12% 3% 2% 6% 6% 29% 18% Greater China Greater China APMEA APMEA Europe Europe North America 11% North America 44% 59% South America South America Other Other In New Bu
Slide 21: 1-3/2024 Sales split
1-3/2024 Sales split By business By area 18% 22% 25% (17%) (25%) (23%) 40% (43%) 14% (13%) 42% (39%) 39% (38%) New Building Solutions Americas Service Europe Modernization Asia-Pacific, Middle East and Africa 1-3/2023 figures in brackets. Figures in charts are rounded and at historical exchange rate
Slide 22: Currencies
Currencies Sales by currencies Currency impact* Main currencies 1-3/2024 Q1 2024 Q1 2023 2023 MEUR Q1 FY average average average EUR Other Sales -55.3 ca. -50 EUR / CNY 7.8083 7.0836 7.6589 EBIT -4.3 Neutral EUR / USD 1.0881 1.0563 1.0816 Orders received -61.9 ca. -50 EUR / GBP 0.8588 0.8537 0.8702
Slide 23: Q1 2024 key figures
Q1 2024 key figures Comparable Q1/2024 Q1/2023 Change change Orders received MEUR 2,235.7 2,263.1 -1.2% 1.6% Order book MEUR 9,133.0 9,176.2 -0.5% 1.3% Sales MEUR 2,568.2 2,556.6 0.5% 2.7% Operating income (EBIT) MEUR 262.4 238.3 10.1% Operating income margin (EBIT %) % 10.2 9.3 Adjusted EBIT MEUR 2
Slide 24: Balance sheet – assets employed
Balance sheet – assets employed MEUR Mar 31, 2024 Mar 31, 2023 Dec 31, 2023 Assets employed Goodwill 1,500.5 1,434.6 1,469.0 Other intangible assets 306.2 244.6 287.2 Tangible assets 800.4 713.6 779.7 Shares and other non-current financial assets 91.7 106.8 97.9 Net working capital -921.8 -1,032.3 -
Slide 25: Net working capital
Net working capital* MEUR Mar 31, 2024 Mar 31, 2023 Dec 31, 2023 Net working capital Inventories 819.1 837.0 820.9 Advance payments received and deferred revenue -1,916.4 -1,972.2 -1,915.7 Accounts receivable 2,459.3 2,494.1 2,495.1 Deferred assets and income tax receivables 841.4 839.3 759.7 Accrua
Slide 26: 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 40 KONE’s New Building Solutions ~25% 25% 22% >35% ~30% 35 orders declined slightly
Slide 27: Market activity in China
Market activity in China • Weak consumer sentiment and developers’ liquidity challenges continued to weigh on new construction activity, policy actions also key to recovery • Pricing environment characterized by intense competition • Strong growth in Service and Modernization markets Q1 2024 y/y Q4/