Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | FINANCIAL PERFORMANCE
2.2 COSTS AND EXPENSES
Costs and expenses, MEUR
Direct materials, supplies and subcontracting
Wages, salaries, and other employment expenses including pensions (note 5.7)
Other production costs
Selling, administrative and other expenses
Items impacting comparability
Depreciation and amortization (note 2.3)
Costs, expenses, depreciation and amortization
Other income
Total costs, expenses, depreciation and amortization
Jan 1-Dec 31, 2021
4,297.3
Jan 1-Dec 31, 2020
3,957.6
3,222.5
789.6
703.3
3,042.9
712.9
762.2
14.5
244.0
37.7
239.0
9,271.3
8,752.2
8,725.7
The majority of expenses of operations arise from direct
materials and supplies, as well as cost of subcontracting.
Other production costs comprise of logistics, tools and
consumables, operative car fleet and traveling as well as
other miscellaneous items of direct costs. Selling,
administrative and other expenses include costs related to
premises, consulting and external services, IT and traveling
as well as other miscellaneous administrative costs.
Items affecting comparability consist of significant
restructuring costs. In 2021 items affecting comparability
related to restructuring measures of KONE's global business
lines and functions, and in 2020 and earlier years to the
Accelerate program.
Other income comprises of rental income, received grants,
interest on late payments, gains on sale of fixed assets and
scrap as well as other miscellaneous income.
52.5
26.5
9,218.8
In 2021, other income includes EUR 19.9 million net gain from the sale of Motala Hissar AB and land area and adjacent building in India.
Expense arising from leases of low-value assets and short-term leases amounted to EUR 11.7 (11.2) million in 2021.
Research and development costs, MEUR
Jan 1-Dec 31, 2021
Jan 1-Dec 31, 2020
R&D costs included in total costs
188.8
179.6
As percentage of sales, %
1.8
1.8
Auditors' fees, MEUR 1)
Audit
Auditors' statements
Tax services
Other services
Total
Jan 1-Dec 31, 2021
Jan 1-Dec 31, 2020
3.2
3.7
0.0
0.3
0.5
0.1
2.3
3.7
6.5
> Audit fees to member firms of Ernst & Young and PricewaterhouseCoopers networks in 2021 and 2020, respectively.
Ernst & Young Oy has provided non-audit services to the entities of KONE Group in total of 86.0 thousand euros during the
financial year 2021. These services included tax advisory services 13.0 thousand euros and other services 73.0 thousand
euros.
Accounting principles
Research and development costs
Research and development costs are expensed as
they incur, because the future economic benefits of
new products and development of existing products
and services can only be proven after their successful
introduction to the market.
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