Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | CAPITAL STRUCTURE
5.2 SHAREHOLDERS' EQUITY
Shares and share capital
At the end of the 2021 financial year, the number of shares
outstanding was 529,395,860. The share capital was EUR
66.2 million and the total number of votes was 121,527,427.
Each class A share is assigned one vote, as is each block of
10 class B shares, with the provision that each shareholder is
entitled to at least one vote. The accounting par value of both
classes of shares is EUR 0.125.
At the end of the financial year, the Board of Directors of
KONE Corporation had a valid authorization granted by the
Annual General Meeting in March 2021 to increase the share
capital and to issue stock options. The authorization remains
in effect until the conclusion of the following annual general
meeting, however at the latest until 30 June 2022.
In accordance with the Articles of Association, class B
shares are preferred for a dividend which is at least 1% and
no more than 2.5% higher than the dividend paid to the
holders of class A shares, calculated based on the amount
obtained by dividing the share capital entered into the Trade
Register by the number of shares entered into the Trade
Register.
In 2021 or 2020 there were no changes in the share
capital of KONE Corporation.
Authority to buy own shares
KONE Corporation's Annual General Meeting held on March
2, 2021 authorized the Board of Directors to repurchase the
company's own shares. The shares may be repurchased
among others in order to develop the capital structure of the
Company, finance or carry out possible acquisitions,
implement the Company's share-based incentive plans, or to
be transferred for other purposes or to be cancelled.
Altogether no more than 52,930,000 shares may be
repurchased, of which no more than 7,620,000 are to be class
A shares and 45,310,000 class B shares, taking into
consideration the provisions of the Companies Act regarding
the maximum amount of own shares that the Company is
allowed to possess.
The minimum and maximum consideration for the shares
to be purchased is determined for both class A and class B
shares on the basis of the trading price for class B shares
determined on the Nasdaq Helsinki Ltd. on the time of
purchase.
A total of 750,000 B class shares were purchased by
KONE on the Helsinki Stock Exchange (Nasdaq Helsinki Ltd)
in 2021. The total amount paid to acquire shares amounted to
EUR 45.8 million with the average price totaling EUR 60.96
per share. All shares held by KONE at the end of the reporting
period consisted of B class shares.
More information
Please, refer to section 6.2 for more information on
share-based incentive plans.
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Accounting principles
Equity and profit distribution
The total shareholders' equity consists of the share capital,
the share premium account, the fair value and other
reserves, translation differences, the paid-up unrestricted
equity reserve, remeasurements of employee benefits and
retained earnings. The fair value and other reserves
include changes in the fair value of cash flow hedges.
Differences arising from the application of the acquisition
method on the translation of the net investment in foreign
subsidiaries and associated companies are recognized as
translation differences. Exchange rate differences resulting
from financial instruments intended as hedges of the net
assets in foreign subsidiaries are also recognized as
translation differences. Actuarial gains and losses arising
from revaluation of employee benefits are recognized as
remeasurements of employee benefits. The purchase price
of own shares purchased by KONE Corporation is
deducted from retained earnings. The net income for the
accounting period is recognized directly in retained
earnings.
When KONE purchases its own shares, the
consideration paid and costs directly attributable to the
purchase transaction are recognized as a deduction in
equity. When such shares are sold, the consideration
received, net of directly attributable transaction costs, is
included in equity.
Profit distribution includes dividends and donations
decided by the Shareholders' Meeting. The dividend and
distribution of profits proposed by the Board of Directors of
KONE Corporation for the financial year ended, is not
deducted from the equity prior to acceptance by a
Shareholders' Meeting.
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KONE ANNUAL REVIEW 2021View entire presentation