Investor Presentaiton
BOARD OF DIRECTORS' REPORT
Financial result
KONE's operating income (EBIT) was EUR 1,295.3 million or
12.3% of sales. The adjusted EBIT, which excludes costs of
EUR 14.5 million related to restructuring measures in KONE's
global business lines and functions, was EUR 1,309.8 million
or 12.5% of sales. In the comparison period items affecting
comparability consisted of restructuring costs related to the
Accelerate program.
The adjusted EBIT margin developed in line with
expectations despite the sharp increase in component and
logistics costs. Pricing, productivity and product cost actions
have been implemented to counteract the headwinds in the
cost environment.
With comparable exchange rates, the translation impact
on operating income for the comparison period was EUR 12.4
million.
KONE's income before taxes was EUR 1,320.8 million.
Taxes totaled EUR 298.1 (276.9) million. This represents an
effective tax rate of 22.6% for the full financial year. Net
income for the period was EUR 1,022.7 million.
Basic earnings per share was EUR 1.96.
Cash flow and financial position
KONE's financial position was very strong at the end of
December 2021.
Cash flow from operations (before financing items and
taxes) during January-December 2021 was exceptionally
strong at EUR 1,828.7 million.
Net working capital (including financing items and taxes)
was EUR -1,468.2 million at the end of December 2021.
Accounts payable increased in the quarter due to higher raw
material prices and the timing of payments. Foreign exchange
rates had a EUR 117 million positive impact on the net
working capital.
Interest-bearing net debt was EUR -2,164.1 million at the
end of December 2021. KONE's cash and cash equivalents
together with current deposits and loan receivables were EUR
2,885.1 (Dec 31, 2020: 2,629.4) million at the end of the
reporting period. During the period, KONE signed a
sustainability-linked revolving credit facility of EUR 850 million
which replaces a previously existing EUR 800 million facility.
The sustainability targets included in the facility relate to
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
KONE's decarbonization and gender diversity commitments.
Interest-bearing liabilities were EUR 746.5 (Dec 31, 2020:
695.8) million, including a pension liability of EUR 194.3 (Dec
31, 2020: 187.2) million and leasing liability of EUR 343.6
(Dec 31, 2020: 342.9) million. Additionally, KONE had an
asset on employee benefits, EUR 22.9 (Dec 31, 2020: 19.2)
Jan 1-Dec 31, 2021
1,295.3
12.3
Jan 1-Dec 31, 2020
1,309.8
12.5
1,320.8
1,022.7
1,212.9
12.2
1,250.5
12.6
1,224.2
947.3
1.96
1.81
Jan 1-Dec 31, 2021
Jan 1-Dec 31, 2020
1,828.7
1,907.5
-1,468.2
-1,160.1
-2,164.1
-1,953.8
-67.6
-61.1
41.2
45.5
6.13
6.12
million. Gearing was -67.6% and the equity ratio was 41.2% at
the end of December 2021.
Equity per share was EUR 6.13.
9
KONE ANNUAL REVIEW 2021View entire presentation