Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Research and development
The objective of KONE's research and development is to drive
differentiation by putting the needs of customers and users at
the center of all developments. Our R&D activities focus on
developing smart and sustainable solutions that adapt to
future needs. By integrating elevators and escalators with
digital systems, we enable an even smoother people flow and
an improved user experience. Built-in connectivity in our
KONE DX Class elevators provide a digital platform for
various services and new business models. We support our
customers in achieving their eco-efficiency goals throughout
the building lifecycle, for instance by continuously developing
the energy-efficiency of our solutions. Additionally, we
continue to develop a variety of strategic partnerships to
further enhance our customer focused solutions. Thanks to
KONE's worldwide engagement with regulatory authorities
and extensive contribution to standardization, we ensure
regulatory conformity as well as cost competitive market
access for our innovative solutions.
Research and development expenditure totaled EUR
187.8 million, representing 1.7% of sales in January-
December 2022. R&D expenditure includes the development
of new products and service concepts as well as further
development of existing solutions and services.
R&D expenditure
MEUR
R&D expenditure
As percentage of sales, %
In March, KONE introduced a new range of products,
solutions and services to help transform people and material
flow on construction sites and provide new solutions for how
buildings can become more flexible, adaptable and
sustainable. Highlights consist of KONE Construction Time
Use solutions including KONE 24/7 Connected Services for
improved insights and uptime; a new, standardized version of
KONE JumpLift for machine-roomless elevators; as well as
the industry's first carbon-neutral elevator through the use of
carbon offsetting and elevators that are fully compatible with
wooden buildings. In addition, KONE DX Class elevators were
launched in the United States and Canada. Offering updates
introduced in the new equipment business during the first
quarter included a renewed elevator car design, air purifiers,
as well as convenient tools for calculating energy
consumption data and finding the right design combinations
for building designers.
In June, KONE won three awards in the prestigious Red
Dot Award: Product Design 2022 competition for a series of
187.8
Jan 1-Dec 31, 2022
1.7
Jan 1-Dec 31, 2021
188.8
1.8
culture-inspired elevator interiors, a voice-operated call
system and an energy saving motor.
During the third quarter, a cybersecurity certification was
received for KONE DX class elevators. The IEC 62443-4-1
certification by TÜV Rheinland, a global provider of technical,
safety, and certification services, demonstrates that
cybersecurity is an essential element in KONE's product
development. To protect the company and customers from the
consequences of cyberattacks, KONE is committed to
complying with the new ISO 8102-20 cybersecurity standard,
published in August. KONE also continues to drive
cybersecurity standardization together with peers and
partners to ensure the safety of the entire industry.
During the fourth quarter, two KONE leaders were
recognized in the renowned loT (Internet of Things) Awards
2022 by CBT, an industry advisor and thought leader in the
field of loT.
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KONE ANNUAL REVIEW 2022View entire presentation