Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Outlook
NORTH AMERICA
New equipment
Slight decline
Services
Maintenance
Slight growth
Modernization
Slight growth
New equipment
EMEA
Stable
Services
ASIA-PACIFIC
New equipment
Services
Maintenance
Slight growth
Modernization
Clear growth
China
Significant decline
Outside China
Clear growth
Maintenance
Clear growth
Modernization
Significant growth
Market outlook 2023
In China, the new equipment market is expected to decline by
somewhat over 10% during 2023. Property developers'
access to financing is likely to remain constrained especially
during the first quarter of the year, but markets are expected
to start to recover towards the end of the first half as a result
of the broad stimulus measures that have already been
announced. In the rest of the world, activity is expected to
grow clearly in Asia-Pacific excluding China, be stable in the
EMEA region and decline slightly North America from a high
level
Modernization markets are expected to grow in all regions
supported by an aging equipment base as well as the focus
on sustainability and adaptability of buildings.
Economic uncertainty and rising interest rates may limit
growth in construction activity, which could impact demand in
the new equipment and modernization markets.
Maintenance markets are expected to grow slightly in the
more mature markets and grow clearly in Asia-Pacific.
Business outlook 2023
KONE expects its sales at comparable exchange rates for the
year 2023 to be at a similar level as in the previous year. The
adjusted EBIT margin is expected to start to recover due to
improved margins on orders received in 2022 and continued
solid performance in the maintenance business.
The business outlook assumes that construction activity in
China starts to recover towards the end of the first half as a
result of the measures introduced to create stability in the
property sector.
KONE has a positive outlook for services, a strong order
book and improved margins on orders received in 2022.
Easing commodity cost headwinds in Asia are also expected
to support the results.
Headwinds for the 2023 results include slower order book
rotation, the anticipated decline in China's new equipment
market, as well as wage inflation and increasing component
costs.
The Board's proposal for the distribution of profit
The parent company's non-restricted equity on December 31,
2022 is EUR 1,926,632,335.19 of which the net income for
the financial year is EUR 1,706,952,719.25.
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 1.75 on the
outstanding 440,880,508 class B shares, resulting in a total
amount of proposed dividend of EUR 904,715,613.22. The
Board of Directors further proposes that the remaining non-
restricted equity, EUR 1,021,916,721.97 be retained and
carried forward.
The Board proposes that the dividends be payable from
March 9, 2023. All the shares existing on the dividend record
date are entitled to dividend for the year 2022 except for the
own shares held by the parent company.
Annual General Meeting 2023
KONE Corporation's Annual General Meeting will be held on
Tuesday February 28, 2023 at 11.00 a.m. at Messukeskus
Siipi, Rautatieläisenkatu 3, in Helsinki, Finland.
Helsinki, January 26, 2023
KONE Corporation's Board of Directors
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KONE ANNUAL REVIEW 2022View entire presentation