Kone Oyj Class B · OMXHEX:KNEBV
Kone Oyj Class B — Kone Oyj B — Q4 2024 Earnings Presentation
29 slides from Kone Oyj Class B's earnings presentation, Jan 30, 2025
Slide 1: KONE Q4 2024
KONE Q4 2024 Philippe Delorme, President & CEO Ilkka Hara, CFO
Slide 2: Highlights of 2024: Solid momentum in our new strategy 'Rise'
Highlights of 2024: Solid momentum in our new strategy ‘Rise’ • Strong sales growth in Service and Modernization showing resilience • Strong order growth outside China New Building Growth in Growth in Solutions Service sales* Modernization sales* • Consistent profitability improvement • Dividend pro
Slide 3: Q4 2024 financial highlights
Q4 2024 financial highlights Orders increased in Double-digit growth in 8th consecutive Strong development in cash three of four Areas, Service and quarter of adjusted flow driven by working growth ex China >10% Modernization sales EBIT-% improvement capital improvement Orders received, EUR bn Sales
Slide 4: Exciting customer references across the world
Exciting customer references across the world Service Modernization New Building Solutions InterContinental hotel, Convention and Sport Burj Binghatti Jacob & Co Madrid, Spain Facilities, City of San Residences, Dubai, UAE Antonio, Texas, U.S.
Slide 5: Rise to lead
Rise to lead #1 for Employees & Customers • Innovation & Sustainability • Growth & Profitability We shape the future of cities
Slide 6: Great progress in all four strategic shifts
Great progress in all four strategic shifts Win Residential Accelerate Digital • Renewed KONE MonoSpace 100 DX launched in Europe • ~35% of Service base connected • Strengthening cost-competitiveness • Dynamic maintenance live in 14 countries in low-rise residential Drive Modernization • Record time
Slide 7: Strengthening our position as a leader in sustainability
Strengthening our position as a leader in sustainability Good progress in many fronts Going forward we measure success with the KONE Sustainability index, tracking progress in: • Carbon emission reduction Absolute Scope 3 emissions • Safety performance Scope 1 and 2 relative to products emissions* o
Slide 8: Market development
— "A Market development RESULT PRESENTATION 2024
Slide 9: Market development in Q4 2024
Market development in Q4 2024 North Europe APMEA China • New Building Solutions America markets stable or growing outside China; in China markets remained weak New Building Solutions in units + stable ++ --- • Positive market environment in Service Service in units + + ++ ++ and Modernization across
Slide 10: Q4 Financials
Q4 Financials JANUARY 30, 2025 RESULT PRESENTATION 2024 10
Slide 11: Orders received
Orders received Order growth in three out of four Areas MEUR +3.3% at comp. FX MEUR +3.4% 10,000 9,131 9,000 8,853 8,759 +2.6% at comp FX 8,400 8,578 2,119 8,185 8,000 16 7,000 54 2,049 6,000 New Building 5,000 Solutions: - 4,000 Service: +++ Modernization: ++ 3,000 2,000 Margin of orders received s
Slide 12: Sales
Sales Strong growth in Service and Modernization sales +2.2% MEUR at comp. FX MEUR 12,000 +5.9% 10,907 10,952 11,098 11,000 10,514 9,982 9,939 +5.1% at comp. FX 10,000 2,976 9,000 20 69 8,000 2,810 113 7,000 -36 6,000 -2.9% +10.5% +12.8% 5,000 4,000 Americas +14.0% 3,000 Europe +7.4% 2,000 APMEA +21
Slide 13: Adjusted EBIT and profitability
Adjusted EBIT and profitability Consistently positive margin development MEUR, % MEUR, % 12.4% 12.6% 12.5% 12.8% 13.0% 1,600 11.7% 11.4% 1,400 1,310 1,303 387 1,237 1,251 9.9% 1,248 2 1,200 1,077 1,000 359 800 + Business mix 600 + Improved margin in Modernization - Margin decline in China 400 - Broa
Slide 14: Cash flow from operations and net working capital
Cash flow from operations and net working capital Solid cash flow Cash flow from operations*, MEUR Net working capital**, MEUR 2,000 1,908 12/2022 12/2023 12/2024 1,829 1,550 1,589 1,600 1,485 1,200 800 755 -861 -827 -904 400 0 2019 2020 2021 2022 2023 2024 * Before financing items and taxes ** Incl
Slide 15: Market and business outlook
— "A Market and business outlook RESULT PRESENTATION 2024
Slide 16: Market outlook for 2025
Market outlook for 2025 11 of our 12 markets growing or stable 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%). - Slight decline (<5%)
Slide 17: Business outlook for 2025
Business outlook for 2025 Supporting our Burdening our performance performance Sales Strong growth in China New Building • KONE expects its sales to grow slightly at Service and Solutions market comparable exchange rates Modernization under pressure Strong order book Slight decline in 2024 Adjusted
Slide 18: Delivering on our ambition to lead the industry
Delivering on our ambition to lead the industry Key priorities for 2025 Accelerate customer driven innovations Scale and accelerate the digital transformation in Service and further industrialize our approach in Modernization Focus on cash, margin and balanced business mix in China Drive performance
Slide 19: Summary
Summary • Business resilience clearly demonstrated • Strategy execution in full swing • Exciting growth opportunities in Service and Modernization • On track to delivering on our mid-term financial targets
Slide 20: Slide 20
Slide 21: Appendix
Appendix JANUARY 30, 2025 RESULT PRESENTATION 2024 2
Slide 22: 2024 Sales split
2024 Sales split By business By Area 19% 23% 25% (17%) (27%) (23%) 41% (45%) 14% (13%) 41% (38%) 38% (37%) New Building Solutions Americas Service Europe Modernization Asia-Pacific, Middle East and Africa 2023 figures in brackets. Figures in charts are rounded and at historical exchange rates. Great
Slide 23: Currencies
Currencies Sales by currencies Currency impact* Main currencies 2024 Q4/2024 Q4/2023 2023 MEUR Q4 FY MEUR EUR average average average Other Sales 20 -472 EUR / CNY 7.7793 7.6589 7.6589 EBIT 2 -38 EUR / USD 1.0826 1.0816 1.0816 Orders received 16 -433 EUR / GBP 0.8469 0.8702 0.8702 CNY USD EUR / INR
Slide 24: Q4 2024 key figures
Q4 2024 key figures Comparable Comparable 1–12/2024 Q4/2024 1–12/2023 Q4/2023 Change Change change change Orders Ordersreceived received MEUR MEUR 2,119.0 8,758.9 2,049.2 8,577.7 3.4% 2.1% 2.6% 3.3% Order Orderbook book MEUR MEUR 9,058.6 9,058.6 8,715.7 8,715.7 3.9% 3.9% 1.4% 1.4% Sales Sales MEUR M
Slide 25: 2024 key figures
2024 key figures MEUR Dec 31, 2024 Dec 31, 2023 Dec 31, 2023 Comparable 1–12/2024 1–12/2023 Change Assets employed change Orders received Goodwill MEUR 8,758.9 8,577.7 1,558.4 2.1% 1,469.0 3.3% 1,469.0 OrderOther book intangible assets MEUR 9,058.6 333.3 8,715.7 287.2 3.9% 287.2 1.4% SalesTangible a
Slide 26: Balance sheet – assets employed
Balance sheet – assets employed MEUR Dec 31, 2024 Dec 31, 2023 Assets employed Goodwill 1,558.4 1,469.0 Other intangible assets 333.3 287.2 Tangible assets 898.5 779.7 Shares and other non-current financial assets 98.9 97.9 Net working capital -827.2 -861.2 Assets employed total 2,061.9 1,772.6 Fina
Slide 27: Net working capital
Net working capital* MEUR Dec 31, 2024 Dec 31, 2023 Net working capital Inventories 856.7 820.9 Advance payments received and deferred revenue -2,016.9 -1,915.7 Accounts receivable 2,494.8 2,495.1 Deferred assets and income tax receivables 812.5 759.7 Accruals and income tax payables -2,131.0 -2,131
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 40 ~25% ~25% ~23% >35% ~30% 35 30 KONE’s New Building Solutions orders declined clea
Slide 29: 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 • New Building Solutions pricing environment characterized by intense competition • Strong growth in Service and Modernization