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Investor Presentaiton

BOARD OF DIRECTORS' REPORT | KEY FIGURES AND FINANCIAL DEVELOPMENT Alternative performance measure KONE reports an alternative performance measure, adjusted EBIT, to enhance the comparability of the business performance between reporting periods. The adjusted EBIT is calculated by excluding from EBIT significant items impacting comparability such as significant restructuring costs. In 2021 items affecting comparability related to restructuring measures of KONE's global business lines and functions. In 2020 and earlier periods items affecting comparability arise from the Accelerate program, launched in September 2017, to speed up the execution of the strategy and to support profitable growth. - as percentage of sales, % - as percentage of sales, % Other data, Jan 1-Dec 31 2021 2020 2019 2018 2017 Orders received, MEUR 8,853 8,185 8,400 7,797 7,554 Order book, MEUR 8,564 7,729 8,052 7,951 7,358 Cash flow from operations before financing items and taxes, MEUR 1,829 1,908 1,550 1,150 1,263 Capital expenditure excl. acquisitions, MEUR 217 201 200 112 116 2.1 2.0 2.0 1.2 1.3 Expenditure on research and development, MEUR 189 180 171 164 158 1.8 1.8 1.7 1.8 1.8 Average number of employees Number of employees at end of period Employee costs Key ratios, %, Jan 1-Dec 31 Return on equity Return on capital employed 61,698 60,376 58,369 56,119 53,417 62,720 61,380 59,825 57,359 55,075 3,222 3,043 3,048 2,818 2,725 Equity ratio Gearing 2021 2020 2019 2018 2017 32.0 29.7 30.1 27.7 32.1 26.8 25.0 25.1 25.0 28.8 41.2 45.5 46.5 49.9 50.0 -67.6 -61.1 -48.6 -55.3 -55.8 2021 2020 2019 2018 2017 Operating income (EBIT), MEUR 1,295 1,213 1,192 1,042 1,192 Operating income margin (EBIT margin), % 12.3 12.2 11.9 11.5 13.6 Items impacting comparability, MEUR 15 38 45 70 13 Adjusted EBIT, MEUR 1,310 1,251 1,237 1,112 Adjusted EBIT margin % 12.5 12.6 12.4 12.3 1,206 13.7 33 KONE ANNUAL REVIEW 2021
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