Kone Oyj Class B · OMXHEX:KNEBV
Kone Oyj Class B — Kone Oyj B — Q1 2025 Earnings Presentation
29 slides from Kone Oyj Class B's earnings presentation, Apr 30, 2025
Slide 1: KONE Q1 2025
KONE Q1 2025 Philippe Delorme, President & CEO Ilkka Hara, CFO
Slide 2: Q1 2025: Solid start to the year
Q1 2025: Solid start to the year • Healthy growth in Service, excellent development in Modernization • Good growth momentum outside China Growth in Growth in • Consistent profitability improvement Service sales* Modernization orders • Strategy execution on track and sales* Decline in Growth in Great
Slide 3: Q1 2025 financial highlights: growth in all key metrics
Q1 2025 financial highlights: growth in all key metrics Order growth >10% Sales growth driven Consistent Earnings growth and outside China; by Service and improvement in working capital drove strong momentum in Modernization adjusted EBIT-% increased cash flow Modernization Orders received, EUR bn S
Slide 4: Exciting customer references across the world
Exciting customer references across the world Modernization Modernization New Building Solutions & Modernization Kunshan government-backed City Tower building, Prague, Czech Capital One Arena Transformation, modernization project, Suzhou, China Republic Washington D.C., U.S.
Slide 5: Q1 business highlights: steady execution on strategy
Q1 business highlights: steady execution on strategy Service: accelerated deployment of Modernization: good progress in driving New Building Solutions: strengthening digital solutions partial modernization our position in low-rise residential • Connectivity rate reached ~36% • KONE MonoSpace DX Upgr
Slide 6: Good progress in sustainability metrics
Good progress in sustainability metrics KONE Sustainability index Recognitions for our sustainability leadership 1.00 0.46 Included in CDP’s prestigious A 0.28 List for environmental transparency and action for 2024 baseline 2025 target 2030 ambition climate Q1 highlights 80th place and only E&E • C
Slide 7: Appointments to the Executive Board
Appointments to the Executive Board Nicolas Alchal Kaori Uehigashi Karla Lindahl Nicolas Alchal appointed Kaori Uehigashi continues Karla Lindahl returns from Executive Vice President, as Executive Vice President, parental leave to her role as Commercial & Operations Strategy & Transformation Execut
Slide 8: Market development
— "A Market development
Slide 9: KONE's growth faster than markets
KONE’s growth faster than markets KONE’s market position and market share development Global E&E markets in 2024 North Europe APMEA Greater America China • Global installed base Position Share Position Share Position Share Position Share ~25 million units; New Building Solutions LSD growth #4 #2 #1
Slide 10: Market development in Q1 2025
Market development in Q1 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 11: Q1 Financials
Q1 Financials ‘APRIL 30, 2025 INTERIM REPORT JANUARY-MARCH 2025
Slide 12: Orders received
Orders received Over 10% growth outside China MEUR MEUR +6.4% 10,000 9,000 8,853 9,131 8,578 8,759 +5.1% at comp FX 2,378 8,400 8,185 28 8,000 7,000 2,236 6,000 Americas ++ 5,000 Europe ++ 4,000 APMEA +++ 3,000 Greater China --- 2,000 Margin of orders received slightly down 1,000 y/y driven by China
Slide 13: Sales
Sales Over 10% growth in Service and Modernization MEUR MEUR 12,000 +4.1% 10,907 10,952 11,098 11,000 10,514 9,982 9,939 +2.8% at comp. FX 10,000 2,672 9,000 30 2,568 92 8,000 7,000 -111 93 6,000 -10.7% +8.5% +19.8% 5,000 4,000 Americas +7.1% 3,000 Europe +8.5% 2,000 APMEA +6.7% 1,000 Greater China
Slide 14: Adjusted EBIT and profitability
Adjusted EBIT and profitability Continued margin growth driven by favorable business mix MEUR, % MEUR, % 12.4% 12.6% 12.5% 10.2% 10.5% 1,600 11.7% 11.4% 1,400 1,310 1,248 1,303 9.9% 280 1,237 1,251 2 1,200 1,077 1,000 262 800 + Business mix 600 - Margin decline in China - Fixed cost absorption due t
Slide 15: 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 2,000 1,908 3/2024 12/2024 3/2025 1,829 1,589 1,600 1,485 1,200 800 755 487 -827 -922 -954 400 398 0 2020 2021 2022
Slide 16: Market and business outlook
— "A Market and business outlook
Slide 17: 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 - + ++ --- Service in units + + ++ + Modernization in monetary value +++ ++ +++ +++ - - - Significant decline (>10%), - - Clear decline (5-10%), -
Slide 18: Business outlook for 2025 (specified)
Business outlook for 2025 (specified) Supporting our Burdening our performance performance Sales Strong growth in China New Building • KONE expects its sales to grow 1-6% at Service and Solutions market comparable exchange rates Modernization under pressure Strong order book Slight decline in 2024 A
Slide 19: Summary
Summary • Solid start to the year • Consistent strategy execution delivering results • Service and Modernization growth demonstrates resilience • Well-placed to deliver on financial targets
Slide 20: Slide 20
Slide 21: Appendix
Appendix APRIL 30, 2025 INTERIM REPORT JANUARY-MARCH 2025 2
Slide 22: KONE's market position in 2024
KONE’s market position in 2024 New Building Solutions market in 2024 Equipment base in 2024 <1 million units ~25 million units 10% 9% 4% 2% 3% 5% 12% APMEA 43% APMEA 52% Europe Europe Greater China Greater China 28% North America North America 20% Other Other South America 11% South America In New B
Slide 23: 1-3/2025 Sales split
1-3/2025 Sales split By business By Area 21% 19% 26% (18%) (22%) 35% (25%) (40%) 14% (14%) 44% 41% (42%) (39%) New Building Solutions Americas Service Europe Modernization Asia-Pacific, Middle East and Africa 1-3/2024 figures in brackets. Figures in charts are rounded and at historical exchange rate
Slide 24: Currencies
Currencies Sales by currencies Currency impact* Main currencies 1-3/2025 Q1/2025 Q1/2024 2024 MEUR Q1 FY MEUR EUR average average average Other Sales 30 ca. -250 EUR / CNY 7.6355 7.8083 7.7793 EBIT 2 ca. -50 EUR / USD 1.0502 1.0881 1.0826 Orders received 28 ca. -270 EUR / GBP 0.8317 0.8588 0.8469 CN
Slide 25: Q1 2025 key figures
Q1 2025 key figures Comparable Comparable 1–12/2024 Q1/2025 1–12/2023 Q1/2024 Change Change change change Orders Ordersreceived received MEUR MEUR 2,378.4 8,758.9 2,235.7 8,577.7 6.4% 2.1% 5.1% 3.3% Order Orderbook book MEUR MEUR 9,253.2 9,058.6 9,133.0 8,715.7 1.3% 3.9% 1.9% 1.4% Sales Sales MEUR M
Slide 26: Balance sheet – assets employed
Balance sheet – assets employed MEUR Mar 31, 2025 Mar 31, 2024 Dec 31, 2024 Assets employed Goodwill 1,533.7 1,500.5 1,558.4 Other intangible assets 332.4 306.2 333.3 Tangible assets 883.5 800.4 898.5 Shares and other non-current financial assets 109.2 91.7 98.9 Net working capital -954.0 -921.8 -82
Slide 27: Net working capital
Net working capital* MEUR Mar 31, 2025 Mar 31, 2024 Dec 31, 2024 Net working capital Inventories 857.5 819.1 856.7 Advance payments received and deferred revenue -2,029.8 -1,916.4 -2,016.9 Accounts receivable 2,397.2 2,459.3 2,494.8 Deferred assets and income tax receivables 862.5 841.4 812.5 Accrua
Slide 28: 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 ~20% 23% 19% 40 ~25% >35% 35 30 KONE’s New Building Solutions orders declined signif
Slide 29: Market activity in China
Market activity in China • New construction activity remained under pressure, liquidity improving slightly; policy actions and improved sentiment key to recovery • New Building Solutions pricing environment characterized by intense competition • Growth opportunities in Service and Modernization mark