Investor Presentaiton

BOARD OF DIRECTORS' REPORT Operating environment by region New equipment market in units 1-12/2021 Maintenance market in units 1-12/2021 Modernization market 1-12/2021 ++ + ++ ++ + ++ + Central and North Europe Stable + ++ South Europe + + Middle East KONE's operating environment Activity in the global elevator and escalator markets was somewhat affected by the COVID-19 pandemic in the early part of the year, but recovered thereafter. However, global supply chain constraints affected the pace of the recovery in the second half. Throughout the year, activity was the strongest in the residential segment across all regions. The sentiment in the infrastructure segment was somewhat boosted by stimulus, whereas activity in the commercial segment remained limited. Demand in the new equipment market increased clearly from 2020, when markets in most regions were heavily impacted by the pandemic. In Asia-Pacific, new equipment volumes grew clearly. In China, volumes grew clearly with strong growth in the first half and softer development in the second half due to tightened liquidity situation in the property sector. In the rest of Asia-Pacific the market grew significantly. In the EMEA region, the new equipment market grew slightly. The new equipment markets grew slightly in Central and North Europe and in the Middle East, whereas in South Europe the market was stable. In North America, the new equipment market grew clearly. In the service market, maintenance activity picked up as of the second quarter and was largely at pre-COVID levels at the end of the year. Similarly, demand rebounded in modernization after a slow start to the year. The pricing environment continued to be adversely affected by intense competition. That said, market prices started to improve in several areas in the second half of the year as a response to the increased component and logistics costs. Total market EMEA North America Asia-Pacific China Rest of Asia-Pacific ++ + +++ ++ ++ +++ ++ +++ ++ +++ ++ --- Significant decline (>10%), -- Clear decline (5-10%), - Slight decline (<5%), Stable, + Slight growth (<5%), ++ Clear growth (5-10%), +++ Significant growth (>10%) +++ 6 KONE ANNUAL REVIEW 2021

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