Investor Presentaiton
BOARD OF DIRECTORS' REPORT
KONE's operating environment
In the new equipment market, the demand environment was
favorable in many areas particularly during the first half of
2022. That said, global market activity declined due to the
weak market conditions in China. The disruptions to global
supply chains, which were amplified by the war in Ukraine,
also affected sentiment as did rising interest rates and
expectations for slower economic growth. In China, COVID-
19 lockdowns were a considerable disruption during the
second quarter. Though less severe, restrictions continued to
create uncertainty during the second half, as did the sharp
rise in infections towards the end of the year. This, together
with continued liquidity constraints, caused a significant
decline in market activity. In the rest of Asia-Pacific, the
market grew clearly, largely due to strong recovery in India.
The markets in the EMEA region were mixed. Activity
declined slightly in Central, North and South Europe, and
grew slightly in the Middle East. In North America, the
market grew slightly, thanks to strong activity in the residential
and infrastructure segments in the first half of the year.
The service market developed positively throughout the
year, with broad-based growth in both maintenance and
modernization. Elevator utilization rates recovered to pre-
pandemic levels in nearly all customer segments, boosting
activity in the maintenance markets. Activity in the
modernization markets was driven by stimulus measures,
infrastructure investments and office refurbishments.
Although the pricing environment was adversely
affected by intense competition, market prices improved
outside China throughout the reporting period as a response
to wide-spread cost inflation.
Operating environment by region
New equipment market
in units
1-12/2022
Total market
EMEA
Central and North Europe
South Europe
Middle East
North America
Asia-Pacific
China
Rest of Asia-Pacific
Maintenance market
in units
1-12/2022
+
Modernization market
in monetary value
1-12/2022
+++
+
+++
+
+++
+
+++
+
++
++
+
++
++
++
++
The table represents the development of the operating environment compared to the corresponding period last year.
--- Significant decline (>10%), -- Clear decline (5-10%), - Slight decline (<5%), Stable,
+ Slight growth (<5%), ++ Clear growth (5-10%), +++ Significant growth (>10%)
+++
+
+
++
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KONE ANNUAL REVIEW 2022View entire presentation