Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Outlook
NORTH AMERICA
New equipment
Services
Maintenance
Slight growth
New equipment
EMEA
Slight growth
Slight growth
Modernization
Clear growth
ASIA-PACIFIC
New equipment
Services
Services
Maintenance
Slight growth
Modernization
Clear growth
China
Activity below that of 2021
Outside China
Significant growth
Maintenance
Clear growth
Modernization
Significant growth
Market outlook 2022
The Chinese new equipment market is expected to remain
solid although below that of 2021 due to the tightened liquidity
situation in the property markets. In the rest of the world, the
new equipment markets are expected to continue recovering.
In North America and in the EMEA region, the new equipment
markets are expected to grow slightly. The new equipment
market in Asia-Pacific, excluding China, is expected to grow
significantly.
Modernization markets are expected to grow across
regions supported by pent-up demand and stimulus
measures.
Continuing global supply chain constraints and potential
labor shortages may limit growth in construction activity, which
could impact demand in the new equipment and
modernization markets.
Maintenance activity is expected to return to pre-pandemic
growth trajectory with slight growth in the more mature
markets and clear growth in Asia-Pacific.
Business outlook 2022
KONE estimates that in 2022, its sales growth will be in the
range of 2% to 7% at comparable exchange rates as
compared to 2021. The adjusted EBIT is expected to be in the
range EUR 1,180-1,330 million, assuming that foreign
exchange rates would remain at the January 2022 level.
Foreign exchange rates are estimated to impact EBIT
positively by around EUR 50 million.
KONE has a solid order book and a positive outlook for
services. Furthermore, the effect of product cost, productivity
and pricing actions are expected to support the results
towards the latter part of the year.
The key headwinds for the 2022 results are increased
material, component and logistics costs, as well as the
competitive dynamics and liquidity constraints in China.
The Board's proposal for the distribution
of profit
The parent company's non-restricted equity on December 31,
2021 is EUR 1,357,142,216.84 of which the net income for the
financial year is EUR 501,757,193.86.
The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 1.7475 be paid on the
outstanding 76,208,712 class A shares and EUR 1.7500 on
the outstanding 441,753,623 class B shares. Further, the
Board proposes an extra dividend of EUR 0.3475 to be paid
on the outstanding 76,208,712 class A shares and EUR
0.3500 on the outstanding 441,753,623 class B shares,
resulting in a total amount of proposed dividend of EUR
1,087,339,859.94. The Board of Directors further proposes
that the remaining non-restricted equity, EUR 269,802,356.90
be retained and carried forward.
The Board proposes that the dividends be payable from
March 10, 2022. All the shares existing on the dividend record
date are entitled to dividend for the year 2021 except for the
own shares held by the parent company.
Annual General Meeting 2022
KONE Corporation's Annual General Meeting will be held on
Tuesday 1 March 2022 at 11.00 a.m. In order to prevent the
spread of the COVID-19 pandemic, the company's
shareholders may participate in the General Meeting and
exercise their shareholder rights only by voting in advance
and by submitting counterproposals and asking questions in
advance.
Helsinki, February 2, 2022
KONE Corporation's Board of Directors
27
KONE ANNUAL REVIEW 2021View entire presentation