Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Capital expenditure and acquisition
KONE's capital expenditure and acquisitions totaled EUR
267.3 million in January-December 2021. Capital expenditure
excluding acquisitions was mainly related to equipment and
facilities in R&D, IT and production. Capital expenditure on
leases consists mainly of maintenance vehicles and office
facilities.
Acquisitions totaled EUR 50.1 million in January-
December 2021. KONE completed acquisitions of small
maintenance businesses in the EMEA region as well as in
North America.
Research and development
The objective of KONE's research and development is to drive
differentiation by putting the needs of customers and users at
the center of all development. Our R&D activities focus on
developing smart and sustainable solutions that adapt to
future needs. By integrating elevators and escalators with
digital systems, we enable an even smoother people flow and
an improved user experience. Built-in connectivity in our
newest elevator models makes them a digital platform for
various services and new business models. We support our
customers in achieving their eco-efficiency goals throughout
the building's life cycle, for instance by continuously
developing the energy-efficiency of our solutions.
Research and development expenditure totaled EUR
188.8 million, representing 1.8% of sales in January-
December 2021. R&D expenditure includes the development
of new product and service concepts as well as the further
development of existing solutions and services.
During January-December 2021, we continued the global
rollout and extension of the KONE DX Class offering. This
new elevator series featuring built-in connectivity and an
enhanced user experience was introduced at the end of 2019
and will replace the previous KONE elevator range across all
areas. During the first quarter, we launched DX Class
elevators in China, Asia Pacific and in India. We also
Capital expenditure & acquisitions
MEUR
On fixed assets
On leasing agreements
On acquisitions
Total
R&D expenditure
MEUR
R&D expenditure
As percentage of sales, %
introduced several enhancements to the DX Class offering
during the year. These included expansions to the DX
modernization solutions as well as new API (application
programming interface) connectivity devices for elevators in
the high-rise segment.
During the second quarter, we launched the KONE Lane
turnstile. This next generation access gate solution offers
improved space-efficiency, reducing the need for floorspace
by up to 90% compared with conventional similar products.
The solution is ideal for offices and multiuse developments
and can be adjusted to suit various design styles. KONE Lane
won two Red Dot Design Awards along with three other
KONE solutions in May. Other awards were given to KONE
Office Flow, KONE Digital Experience Car and the KONE
TravelMaster Premium Kit escalator design solution, which
were recognized for their design quality, innovation and smart
connectivity.
During the fourth quarter, we introduced KONE Care ™ DX
maintenance service, the first carbon-neutral maintenance
Jan 1-Dec 31, 2021
96.5
Jan 1-Dec 31, 2020
87.5
120.6
113.4
50.1
29.0
267.3
230.0
Jan 1-Dec 31, 2021
Jan 1-Dec 31, 2020
188.8
1.8
179.6
1.8
service in the elevator industry. By using Al-powered
predictive maintenance, automatic updates, remote servicing
and in person or digital support, KONE Care TM DX maximizes
uptime and prolongs the equipment life. The service comes
with KONE 24/7 Connected Services, KONE's flagship
solution for predictive maintenance. All KONE Care ™ DX
maintenance activities will be carbon neutral through a
combination of emission reduction actions that we are
implementing to reach the targets of our climate pledge, and
carbon offsetting programs.
During the fourth quarter, we also announced a
collaboration with Amazon Web Services (AWS), the world's
most comprehensive and broadly adopted cloud offering.
AWS will provide KONE with global cloud capabilities such as
Internet of Things (IoT) and analytics. The companies will also
innovate together to develop new technologies that further
strengthen the scalability and performance of KONE's
connected services and solutions.
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