Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Financial result
KONE's operating income (EBIT) was EUR 1,031.2 million or
9.5% of sales. The adjusted EBIT was EUR 1,076.6 million or
9.9% of sales. Profitability was burdened by cost headwinds
and the decline in sales in China. Easing cost headwinds,
better pricing on deliveries outside China and continued
strong maintenance sales drove an improvement towards the
end of the year.
As a response to Russia's invasion of Ukraine, KONE
suspended its deliveries to Russia in March and announced
the divestment of its operations in Russia in June. The share
purchase agreement is subject to approval by the relevant
regulatory authorities in Russia. Items affecting comparability
in January-December 2022 amounted to EUR 45.4 million
including a charge for the impairment of assets and
recognition of provisions for commitments in Russia and
Ukraine, as well as costs for restructuring measures. Further
information can be found in the notes to the financial
statements. In the comparison period, items affecting
comparability consisted of restructuring costs.
With comparable exchange rates, the translation impact
on operating income for the comparison period was EUR 64.8
million.
KONE's income before taxes was EUR 1,028.4 million.
Taxes totaled EUR 244.0 (298.1) million. This represents an
effective tax rate of 23.7% for the full financial year. Net
income for the period was EUR 784.5 million.
Basic earnings per share was EUR 1.50.
Cash flow and financial position
KONE's financial position was strong at the end of December
2022.
Cash flow from operations (before financing items and
taxes) during January-December 2022 declined from an
exceptionally high level to EUR 754.7 million, due to the
decline in operating income and increased net working capital.
Net working capital (including financing items and taxes)
was EUR -903.9 million at the end of December 2022.
Working capital was affected by the decrease in accounts
payable and the increase in accounts receivable, as well as
by the decrease in advances received due to the decline in
orders received in China. The decision to suspend deliveries
Financial result
Operating income, MEUR
Operating income margin, %
Adjusted EBIT, MEUR
Adjusted EBIT margin, %
Income before taxes, MEUR
Net income, MEUR
Basic earnings per share, EUR
Cash flow and financial position
Cash flow from operations (before financing items and
taxes), MEUR
Net working capital (including financing items and taxes),
MEUR
Interest-bearing net debt, MEUR
Gearing, %
Equity ratio, %
Equity per share, EUR
Jan 1-Dec 31, 2022
1,031.2
9.5
Jan 1-Dec 31, 2021
1,295.3
12.3
1,076.6
1,309.8
9.9
1,028.4
784.5
12.5
1,320.8
1,022.7
1.50
1.96
Jan 1-Dec 31, 2022
Jan 1-Dec 31, 2021
1,828.7
754.7
-903.9
-1,468.2
-1,309.0
-2,164.1
-45.7
-67.6
40.3
41.2
5.49
6.13
9
KONE ANNUAL REVIEW 2022View entire presentation