Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | CAPITAL STRUCTURE
5.4 SHAREHOLDINGS AND OTHER NON-
CURRENT FINANCIAL ASSETS
On the date of the statement of financial position, shares and
other non-current financial assets were EUR 139.6 (139.0)
million and EUR 4.9 (4.2) million.
The shares held include a 19.9% holding in Toshiba
Elevator and Building Systems Corporation (TELC). TELC
consists of an investment in equity instruments that does not
have a quoted price in an active market. The fair value of
TELC shares is estimated using a dividend discount model
with the key inputs to the model including forecasted dividend
and the discount rate. While the fair value of the investment is
sensitive to changes in these two assumptions, there is no
reasonably possible change that would result in significant
impact on total assets or equity of KONE.
Investment also includes other non-current financial assets
which are investments in smaller holdings in other companies
without public quotation.
5.5 DEPOSITS AND LOANS RECEIVABLE
The fair values of deposits and loans receivable are not
materially different from their carrying amounts. Current short-
term deposits mature within one year and consist of EUR
1,906.6 (1,790.1) million and EUR 487.1 (380.2) million of
interest rate funds and short-term bank deposits.
5.6 COMMITMENTS
Banks and financial institutions have guaranteed obligations
arising in the ordinary course of business of KONE companies
up to a maximum of EUR 1,735.7 (1,485.1) million as of
December 31, 2021.
Accounting principles
Shares and other non-current financial assets
Shares include long-term strategic investments, which are
investments in equity instruments that do not have a quoted
price in an active market. Other noncurrent financial assets
include investments in smaller holdings in other companies
without public quotation.
Shares and other non-current financial assets are
classified as investments measured at fair value
Deposits and loans receivable, MEUR
Non-current loans receivable
Current loans receivable
Current short-term deposits
Total
through other comprehensive income. The fair value is
measured using income or market approach valuation
techniques under fair value hierarchy level 3. Upon disposal of
these investments, any balance within the fair value and other
reserves for these investments is reclassified to retained
earnings and is not reclassified to the statement of income.
Dec 31, 2021
Dec 31, 2020
2.6
1.0
1.0
1.1
2,393.7
2,170.4
2,397.3
2,172.5
73
KONE ANNUAL REVIEW 2021View entire presentation