Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS | NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
FINANCIAL RISK MANAGEMENT
Parent company business activities are exposed to financial
risks such as foreign exchange risks, interest rate risks,
liquidity risks and credit risks. These financial risks are
managed in accordance with the KONE Treasury Policy.
Parent company financials risks are not significantly different
from the Group's financials risks, see notes 2.4 and 5.3 to the
Group level financial statements.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash-in-hand and bank
account balances. Used bank overdrafts are included in other
current liabilities.
SHARE-BASED PAYMENTS
KONE has two separate share-based incentive plans, one
performance share plan and one restricted share plan. The
performance share plan is targeted to the President and CEO,
members of the Executive Board and other top management
as well as other selected key personnel of KONE Group. The
restricted share plan serves as a complementary long-term
share plan to be used as a commitment instrument for
retention and recruitment purposes for top management
(excluding the President and CEO) and other selected key
persons. Pursuant to the share ownership plans, the reward to
the management is either settled with KONE class B shares,
or as a combination of KONE class B shares and cash when
the criteria set in the terms and conditions of the plan are met.
Number of shares earned by participants under the share-
based incentive plans are determined on gross basis with
deduction for taxes made when applicable before delivery of
the shares to the participants. The shares to be transferred as
part of the plans are obtained in public trading. The acquisition
of shares is recognized as an increase of own shares,
reducing equity, and transfer of shares as decrease in own
shares and retained earnings within equity.
The fair value of the share-based payments settled with
cash has been determined so that it covers taxes and social
security costs that are incurred. The cost arising from cash
settled part of share-based payment rewards is recognized as
an expense over the earnings period. The liability recognized
is measured based on the fair value of the shares expected to
be distributed. At each statement of financial position date, the
company revises its estimates of the number of shares that
are expected to be distributed. It recognizes the impact of the
revision of original estimates in the statement of income.
96
KONE ANNUAL REVIEW 2022View entire presentation