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Investor Presentaiton

BOARD OF DIRECTORS' REPORT PERSONNEL AND SOCIAL MATTERS Our main goal is to have the most capable and engaged team of professionals, who succeed in a changing world. We strive towards this goal through great employee experience, diverse and inclusive culture, continuous learning, flexibility and wellbeing. These are the core elements in our Empowered People Way to Win, one of the four KONE-wide transformation and development initiatives, which enable us to succeed in our strategy. All KONE's activities are guided by ethical principles. Employee rights and responsibilities include the right to a safe and healthy working environment, fair and equitable labor conditions, personal wellbeing, freedom of association, collective bargaining, non-discrimination and the right to a working environment in which harassment and bullying are not tolerated. COVID-19 impact on the way we work While the COVID-19 pandemic continued to have an impact globally in 2021, progress in vaccine rollouts resulted in restrictions being eased in many regions during the second half of the year. As regulations and practices varied from country to country, we encouraged our country organizations to actively follow the local rules and guidance to ensure that we are compliant and able to take into account our customers' requirements. Our main focus throughout the pandemic has been to continue serving our customers in the safest manner possible. We have supported our employees by offering flexibility where needed and by ensuring easy access to information on how to enhance wellbeing. The pandemic has accelerated a change in how we work. During 2021, we introduced the KONE flexible working statement confirming that KONE will support flexible working arrangements that are aligned with our business priorities. Diversity and inclusion We actively encourage diversity at KONE, and our values guide us in upholding an inclusive culture. In the beginning of 2021, KONE launched a new strategic phase with strong focus on sustainability and Diversity and Inclusion (D&I) as key elements of it. As one of the D&I specific goals, we committed to making a step-change in the share of women at director level and increase it to 35% by 2030. In 2021, the share of women in director level positions increased to 21% (19%). Most of our employees are male representing 88% (89%) of our people globally. We continue our efforts towards Number of employees Number of employees at the end of period Average number of employees Jan 1-Dec 31, 2021 62,720 61,698 Jan 1-Dec 31, 2020 61,380 60,376 Geographical distribution of KONE employees Dec 31, 2021 23,669 Dec 31, 2020 23,798 7,258 7,336 31,792 30,246 62,720 61,380 EMEA Americas Asia-Pacific Total Personnel voluntary turnover rate was 7.8% (5.5%) Employee costs for the reporting period totaled EUR 3222 (3043) million. The geographical distribution of KONE employees was 38% (December 31,2020: 39%) in EMEA, 12% (12%) in the Americas and 51% (49%) in Asia-Pacific. achieving a more balanced gender split. During the reporting year, KONE's workforce included 145 (147) nationalities. To strengthen our global approach and deepen our customer and market insights, we have goals to increase cultural diversity in our global teams. In 2021, we engaged our senior leaders to a D&I learning journey to lead the way for an inclusive culture. We also continued to strengthen D&I maturity in our countries through various actions from transparent communication to data driven decision making and more inclusive talent practices and culture. Our elevated focus on driving D&I is visible also in KONE's new share-based long-term incentive plan, launched in the beginning of 2021, where sustainability was introduced as a new metric in addition to the financial metrics. The sustainability metric is a combination of different elements with diversity and inclusion being one of them. Employee engagement & KONE culture Making KONE a great place to work is KONE's number one strategic target and it is measured by employee engagement and a related Pulse employee survey. The Pulse survey offers employees an opportunity to give feedback and covers topics such as employee engagement and enablement, leadership, learning and growth, corporate responsibility, customer centricity, innovation and drive, as well as diversity and inclusion. In 2021, we conducted a light version of the Pulse survey with 84% of all KONE employees taking part despite the challenging circumstances brought on by COVID-19. The global results show that KONE continues to be a great place to work with a healthy company culture and KONE employees are very engaged. Despite a slight decline from the very high 2020 scores in both engagement and enablement, the vast majority of the survey results were clearly above the external high-performance benchmarks. We also organized Pulse Talks across all teams at KONE with 85% of employees participating. The objective of the Talks was to ensure continuous dialogue on team wellbeing and make KONE an even better workplace. During 2021, we continued developing KONE's culture to ensure that it supports our strategic targets. Throughout the year, employees continued sharing their thoughts about the development of KONE's culture, values and ways of working through facilitated online discussions. In addition, a new e- learning course focused on KONE's culture and values was 16 KONE ANNUAL REVIEW 2021
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