Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ACQUISTIONS AND CAPITAL EXPENDITURE
4.1 ACQUISITIONS AND DISPOSALS
Acquisitions
KONE completed 15 (20) acquisitions during 2021 for a total
consideration of EUR 50.1 million. The acquired businesses
are specialized in the elevator, escalator and automatic
building door businesses. The acquisitions completed during
the financial period were not material individually or as a
whole to KONE's 2021 financial statements. The sales
consolidated from the companies acquired during 2021 had
only a minor impact on KONE's sales for the financial period.
Of the total consideration, based on provisional assessments,
EUR 22.7 million was allocated to maintenance contracts in
other intangible assets. Acquired maintenance contracts are
typically amortized over ten years. Note 4.3 provides more
detail on other intangible assets.
The fair values of the acquired net assets, based on a
provisional assessment, as well as the acquisition costs, are
summarized in the adjacent table. The considerations were
paid for in cash, except for certain deferred considerations,
expected to be paid later. For most of the completed
acquisitions, the acquisition cost includes a contingent
consideration, which is typically determined by the financial
performance of the acquired business after the date of the
acquisition. Changes in the fair value of the contingent
consideration after the acquisition date are recognized in the
profit or loss. However, contingent considerations are typically
realized in the amount initially recognized. KONE acquired a
100% interest in all businesses acquired in 2021, except for
one minor acquisition.
Disposals
During the reporting period KONE sold its full ownership in
Motala Hissar AB against cash consideration. The sale of the
subsidiary did not have material impact on the assets or
liabilities of the Group. A gain of EUR 13.9 million was
recognized arising from the sale.
Accounting principles
Acquisitions
as expenses for the period in which they are incurred.
At the acquisition date, any non-controlling interest is
measured either at the acquisition date fair value or at non-
controlling interest's proportionate share in the recognized
amounts of the identifiable net assets.
Businesses acquired during the period have been combined in date fair values. The acquisition related costs are recognized
the consolidated financial statements from the date when
Group has obtained control of the business and divested
businesses up to the date when control has ceased. The
acquisition consideration, including deferred and contingent
consideration, as well as the identifiable assets acquired, and
liabilities assumed, are measured at the acquisition
Assets and liabilities of the acquired businesses, MEUR
Maintenance contracts
Other intangible assets
Tangible assets
Jan 1-Dec 31, 2021
Jan 1-Dec 31, 2020
22.7
26.6
0.2
1.3
0.2
0.5
0.1
0.1
0.8
1.0
4.9
3.6
Cash and cash equivalents and other interest-bearing receivables
Total assets
8.2
1.5
37.2
34.5
Deferred tax assets
Inventories
Accounts receivables and other assets
Pension liabilities
Interest-bearing loans
Provisions
Deferred tax liabilities
Other liabilities
Total liabilities
Net assets
Acquisition cost paid in cash
Contingent and deferred consideration
Acquisition cost at date of acquisitions
0.1
1.6
0.2
0.6
1.4
0.2
2.0
3.9
3.6
3.2
7.3
9.4
30.0
25.0
36.4
21.7
13.7
7.3
50.1
29.0
Goodwill
20.1
4.0
Changes in the acquisition cost occurring after the acquisition date and recognized in the statement of income totaled EUR 0.2
(0.7) million.
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KONE ANNUAL REVIEW 2021View entire presentation