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Investor Presentaiton

BOARD OF DIRECTORS' REPORT Orders received and order book Orders received grew by 8.2% as compared to January- December 2020 and totaled EUR 8,852.8 million. At comparable exchange rates, KONE's orders received grew by 7.4%. At comparable rates, orders received for the new equipment grew clearly with clear growth in the volume business and significant growth in major projects. In modernization, orders received were stable with significant growth in the volume business and significant decline in major projects. The margin of orders received declined year-on-year due to increased component and logistics costs. Some sequential improvement was seen towards the end of the year. KONE's new equipment orders received in elevator and escalator units amounted to approximately 196,000 units (2020: approximately 180,000). Orders received in the EMEA region grew slightly at comparable exchange rates as compared to January- December 2020. New equipment orders grew slightly and modernization orders grew slightly. In the Americas region, orders received grew clearly at comparable rates as compared to January-December 2020. New equipment orders grew significantly and modernization orders declined significantly. The comparison period included an exceptionally sizeable modernization order from the Washington Metropolitan Area Transit Authority. Orders received in the Asia-Pacific region grew clearly at comparable rates as compared to January-December 2020. In China, new equipment orders grew clearly in units and grew clearly in monetary value during the year. During the second half, orders were impacted by the tightened liquidity situation in the property markets. Like-for-like prices were stable while mix was slightly negative. In the rest of Asia- Pacific, new equipment orders received grew significantly. Modernization orders received grew significantly in China and declined slightly in the rest of Asia-Pacific. The order book grew significantly compared to the end of December 2020 and stood at a strong level of EUR 8,564.0 million at the end of the reporting period. At comparable rates, the order book grew slightly. The order book margin continued to be at a healthy level. Customer cancellations remained at a very low level. Terminology: Slight <5%, clear 5-10%, significant >10% Orders received MEUR Orders received Order book 2021 2020 Change Change at comparable exchange rates 8,852.8 8,564.0 8,185.1 7,728.8 8.2% 10.8% 7.4% 3.8% Orders received consist predominantly of new equipment and modernization orders. Maintenance contracts are not included in orders received, but the figure includes orders related to the maintenance business, such as repairs. Orders received development by region* New equipment orders + Modernization orders + Total orders + EMEA Americas Asia-Pacific China *) in monetary value at comparable exchange rates +++ ++ ++ ++ +++ +++ ++ ++ --- Significant decline (>10 %), -- Clear decline (5-10 %), - Slight decline (<5 %), Stable, + Slight growth (<5 %), ++ Clear growth (5-10 %), +++ Significant growth (>10 %) 7 KONE ANNUAL REVIEW 2021
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