Post on 12-May-2020
13/04/2018
1
MÄKIMATTILA SIMODR., LEADING EXPERT, RESEARCH, ELEVATORS AND ESCALATORS
OHUTLEVYPÄIVÄT 201812-13 APRIL 2018, JYVÄSKYLÄ
SUCCESS STORIES IN SHEET METAL INDUSTRY – Case Elevator Escalator
Presentation on Corporate R&D as a Success Factor
CONTENTSWho we areMegatrends impacting our industryOur mission, vision and strategyOur solutionsHelping cities growR&D as a Success FactorMaterials technologyConclusions
13/04/2018
2
More than 100 years in business
KONE today
KONE is a global leader in the elevator and
escalator industry. We are here to make cities
better places to live
We provide value for our customers at every step
of the way for the entire lifespan of a building
We offer innovative and sustainable new
equipment solutions, ensure the safety and
availability of equipment in operation and offer
modernization solutions for aging equipment
Founded in Finland in 1910
Over 55,000 employees
Over 450,000 customers
Net sales EUR 8.9 billion in 2017
Listed on the NASDAQ Helsinki since 1967
13/04/2018
3
OUR BUSINESSES
New Equipment
State of the art solutions for
all types of buildings.
Our versatile product
portfolio features a wide
range of innovative
products including
elevators, escalators,
autowalks, automatic doors,
monitoring, access and
destination control systems.
OUR BUSINESSES
Maintenance
Maintenance and monitoring
solutions that maximize safety and
reliability while minimizing
downtime and costs.
Including smart preventive
services, expert advice and rapid
response.
13/04/2018
4
OUR BUSINESSES
Modernization
We give customers full control over
the upgrade of their equipment.
Our modernization services help
customers determine when and
how to upgrade equipment to
ensure a lifetime of optimal
operation and to maximize
customers’ return on investment.
8
KONE has a broad global coverage: we have our own operations in more than 60 countries
Coal Valley
Hyvinkää
Essen
Kunshan
Allen
Chennai
Torreón
Helsinki
Cadrezzate
Pero
Ùsti nad Labem
Nanxun (GiantKONE)
Global R&D site
Production site
Head office
KONE collaborates withdistributors in over 80 countries
KONE is present
13/04/2018
5
A typical working day for KONE
~ 450 unitsdeliveredevery day
Over 1.2 millionunits in service
400-500orders booked
~ 70,000maintenance
visits~ 450,000customers
served
Operationsin over
60 countries
~10,000packages through
our distributioncenters
10
ELEVATORS AND ESCALATORS IN OPERATION, UNITS PER REGION
Global elevator and escalator markets (2016)
Elevators and escalators in operation(over 14 million units)
8%
9%
7%
4%
31%
42%
EMEA
China
Japan andSouth Korea
Rest ofAsia Pacific
South America
North America
Based on KONE’s estimate. Figures have been rounded.
13/04/2018
6
11
NEW ELEVATOR AND ESCALATOR INSTALLATIONS, UNITS PER REGION
Global elevator and escalator markets (2016)
New elevator and escalator market 825,000 units
3%
4%
8%
3%
62%
20%
EMEA
China
Japan andSouth Korea
Rest ofAsia Pacific
South America
North America
Based on KONE’s estimate. Figures have been rounded.
Sales by business, 2017, % (2016) Sales by market, 2017, % (2016)
12
Sales distribution 2017
32%(31%)
14%(14%)
53%(55%)
Maintenance Modernization New equipment
(2015 figures in brackets) EMEA = Europe, Middle East, Africa
41%(40%)
20%(19%)
39%(41%)
EMEA Americas Asia-Pacific
13/04/2018
7
January 25, 2018 Internal results presentation 2017 | © KONE Corporation13
KONE key financials 2017
1–12/2017 1–12/2016 ChangeComparable
change
Orders received MEUR 7,554.0 7,621.0 -0.9% 1.7%
Order book MEUR 8,240.2 8,591.9 -4.1% 3.1%
Sales MEUR 8,942.4 8,784.3 1.8% 4.2%
Operating income (EBIT) MEUR 1,217.1 1,293.3 -5.9%
Operating income margin (EBIT %) % 13.6 14.7
Cash flow from operations(before financing items and taxes)
MEUR 1,263.3 1,509.5
Megatrends impacting our industry
13/04/2018
8
Two megatrends impact our business environment
URBANIZATION, AGING
Continuing urbanization drives long term
growth potential for new equipment,
maintenance and modernization.
TECHNOLOGICAL DISRUPTION
MOBILITY
New technology gives us a great opportunity
to learn new ways of working and serve our
customers and users in smarter and more
exciting ways.
Maybe other pic?
13/04/2018
9
Needs for sustainable and smart urban living
Affordable,
accessible
vertical
housing
Safe,
reliable,
efficient
infrastructure
Improving
living
standards and
convenience
Eco-
efficiency and
sustainability
Growing
building
intelligence
Well being
and
happiness
17
WE ADDRESS THESE NEEDS TO CREATE MORE VALUE
Technological disruptionNew technology gives us a great opportunity
to learn new ways of working and serve our
customers and users in smarter and more
exciting ways.
13/04/2018
10
19
Technological disruption has permanently upgraded customers’ and users’ expectations
Customers and users are more aware and have more power than ever before
Increasingly, the experienceis the product
The best driver for growth is a happy customer advocating on our behalf
Anywhere,anytime
Open andtransparent
Responsive,Proactive and
predictive
Everythingand everyoneis connected
An industryleader
Our equipment moves over
1 billion users each day, with over
1.2 million elevators and
escalators in our service base.
13/04/2018
11
Leisure, education, special buildings
Public transportation and airports
Marine
Smooth people flow for all buildings
21
OfficeResidential Retail
Hotel Medical
Residential Office Retail Hotel Special buildings
Medical Public transportation and airports
KONE solutions for different buildings
22
Autowalks
Escalators
Bed elevators
Helipad elev.
Scenic elevators
Car park elevators
Glass shaft elev.
Passenger elevators
Goods and freight elevators
Fire elevators
Construction time elevators
Access, monitoring and destination control solutions
Building doors
13/04/2018
12
KONE solutions
R&D as a success factor
An innovationleader
Cooperation with customers,key partners, leading universities and research facilities
New technologies offer great opportunities to innovate more personalized and connected services, with real-time transparency
We prove customers and users with ease, effectiveness and new experiences
13/04/2018
13
KONE solutions
R&D has been one of the main success factors
1970 – Acquisitions1990 - Harmonization of Codes , EU1990 -Globalization1996 – Technology: MonoSpace , MiniSpace2000 - Localization, China2000 - Eco-efficiency2000 - Megacities2010 - Mobility2010 – Smart Cities2015 - Urban flow
30- year retrospective
KONE modernization solutions
Ranging from small upgrades to the full replacement of
elevators, escalators and doors
Improving equipment’s safety, accessibility, performance,
aesthetic appeal and eco-efficiency
Increasing the eco-efficiency of an elevator by up to 70%
KONE Care for Life™ is a unique service that analyses the
condition of equipment in order to plan modernization
26
13/04/2018
14
KONE maintenance solutions
KONE has over 1,200,000 elevators and escalators in its
maintenance base
Flexible maintenance services for elevators,
escalators and doors
Modular Based Maintenance for uninterrupted People Flow
in buildings
KONE Care™ service contracts, KONE remote monitoring
services and 24/7 Customer Care Centers
27
KONE People Flow Intelligence solutions
Access solutions for improved People Flow and security with
integrated access, elevator and door solutions.
Optimized elevator performance with KONE Destination control
system.
Information displays and screens so facility managers and
service providers offer services to tenants and visitors.
Easy monitoring of elevator and escalator operations from
a single location through KONE E-Link™.
Remote configuration and management of equipment.
28
13/04/2018
15
Making our citiesmore sustainable
Cities occupy 2% of world’s land
mass, but account for 75% of
energy consumption and 80% of
manmade greenhouse gas
emission.
We must improve the quality of life
while reducing consumption and
use of energy, transport and
resources.
KONE one of the world’sgreenest companies
KONE is recognized as a a top climate change
performer with an A- score in CDP 2017.
KONE was confirmed as a constituent of the
FTSE4Good Index in July and December 2016.
KONE ranked 28th in the 2015 list of Global
100 Most Sustainable Corporations in the World,
released by a Toronto-based media and investment
advisory company Corporate Knights.
30
13/04/2018
16
Technological enablers: Connectivity, IoT cloud and cognitive analytics
CONNECTED EMPLOYEESSupporting the collaboration and
efficiency of our people
CONNECTED EQUIPMENTConnecting >1 millionequipment to the cloud
CONNECTED USERSPersonalized experience for users
CONNECTED CUSTOMERSIncreased business value through better
communication and productivity
We are investing heavily in new technology
New innovations and personalized services by using data
32
More than 450,000 customers
Lifetime business with long-lasting customer
relationships
New and personalized
services
Data on a wide scale for mass customization
When we connect more equipment, the amount of data grows exponentially
Over one billion people using our equipment every
day
Long relationships create a long digital footprint
13/04/2018
17
We embrace collaborative innovationWe embrace collaborative innovation
Making use of innovation
that happens outside KONE
Bringing new solutions to
the market faster
Fast learning and optimal
focus of resources
Technology companies
Smart building partners
Start-ups
Customers
WHY? WITH WHO?
13/04/2018
18
Intelligent services for elevators and escalators are here
KONE is revolutionizing
elevator and escalator
maintenance with new
KONE 24/7 Connected
Services that are based on
real-time data and
analytics. For customers it
means improved safety, full
transparency and more
value.
Machine-room-less technology
KONE MonoSpace® elevator
– Machine-room-less (MRL) elevator concept
– Eliminates the need for space-consuming machine rooms
by putting the hoisting mechanism in the lift shaft itself
KONE EcoDisc® hoisting machine
– The green heart of the MonoSpace platform
– Fits in the shaft
– Consumes only 60% of the energy of a comparable geared
traction machine and 30% of a comparable hydro
– The most eco-efficient solution on the market today
36
#1 INNOVATION IN THE INDUSTRY
13/04/2018
19
KONE UltraRope®
Ultra-light and durable rope that offers huge advantages over
the steel ropes traditionally used to hoist elevators
Lightweight carbon fiber core and special, high-friction coating
– Longer future elevator travel distances (1,000 meters,
twice the distance currently feasible)
– Significant energy savings – benefits grow as travel distance
increases
– Less elevator downtime on windy days
– Unprecedented durability with a lifetime twice that of conventional
steel rope
37
KONE JumpLift
The KONE JumpLift is a unique solution for improving
the people and goods flow during construction
The temporary machine room of the KONE JumpLift elevator
is moved upward in the shaft as new floors are added
KONE JumpLift advantages
– enabling a faster, safer construction process
– earlier closing of the facade
– reduced down-time
– all weather operation
– safer transportation
38
13/04/2018
20
KONE NanoSpace™
Revolutionary new HybridHoisting™ system
incorporates a unique combination of belt and rope
technologies
Two thin balancing weights enable adaptive
balancing and energy consumption optimization,
and also allow more space for a larger car
Proven energy-efficient KONE EcoReel™ motor
technology with an all-new compact design
39
KONE EcoMod™
Full escalator modernization without removing
the existing truss
Complete renewal of old escalators without
demolishing floors and roofs is an excellent
solution in narrow, difficult to access locations
The escalator is delivered in modules and
assembled on site
Maintain the appearance of the building while
gaining the advantages of:
– improved performance
– increase safety
– reduced maintenance costs
40
13/04/2018
21
KONE InnoTrack™
World’s flattest technology for autowalks
‘Machine-room-less’ autowalk
– flat and light construction
– easy installation
– reusability
– green-drive technology
– lower life-time costs
41
Double-deck elevator
Two elevator cars on top of each other
Increases transportation capacity and shortens
traveling time
Saves space
Saves construction costs
Increases the freedom of architectural design
42
13/04/2018
22
Award winning design
KONE designs and innovations have been
recognized with many prestigious awards.
Our materials, designs and accessories
have won numerous GOOD DESIGN, IF
Product Design and Red dot design awards.
- China export (Finland, Germany)- 1997 Hong Kong annexed to Mainland- Own manufacturing- 100 % local sourcing- 2004 R&D Center in Kunshan
History of KONE in China
13/04/2018
23
13 April 2018 KONE Profile 2016 | Confidential | © KONE Corporation45
China R&D perspective> 50% of market2016, 85000 units
Deliveries:Elevators to Asia-Pacific, China, Russia, India, Australia,
Escalators to 80 countries
All platforms and markets
Started 2004, Kunshan, near Shanghai, elevators and escalators
Located in the economic and technical hub of China, the Yangze Delta,
in a Special Economic Area, SAR
Kunshan R&D Unit is in the center of Chinese manufacturing indstries
and main market. World’s fastest developing industrial area,
Close to main markets.
280 employees close to assembly units, own factories, 2:nd largest R&D
unit after Hyvinkää
Started with local product management, component categories,
platforms, maintenance
Since 2012 also for concept creation, industrial design, new services
and IoT
Near supply chain, universities, industrial services, education,
commercial associations.
Excellent transport and communication networks
Success factors of an overseas R&D
CHINA R&D, Multi-national companies establish over-seas R&D units
13/04/2018
24
Speed of construction much higher than in Europe• Booming market, 50% growth, bubble economy• 70% government target of urban population• Price and cost competition• Large, phased contracts up to 400 units even in
residential projects• City planning aspects• National hot spots of construction• Standardization of buildings• All big competitors, OTIS, SCHINDLER,
THYSSEN, MITSUBISHI, HITACHI, FUJITEC,• Local brands also fast growing, (CANNY, SJEC)• Small foreign brands, special markets (Marine)
HOW to COMPETE vs. MARKET SITUATION• Product releases => R&D response time• Cost => Competitivity• Safety, Reliability, => Customer, publicity• Eco-Efficiency => Value• New Services => ?
ASIA, CHINA vs EUROPE market characters
Biggest migration in the history of mankind
R&D Competences for local staff• Young organization• Project management skills• Often competitor background, job-hopping• High-motivation for technical learning• Retention rate• Communication skills, (local / international)• Networking to Universities• Open attitude, virtual teams, cultural borders• R&D is not the first option for graduates• Elevator industry is not the best option
Testing for localizationLocal SourcingLocal product managementSupport for delivery quality, reliability and safetyNew local product releases
LOCAL R&D UNIT Growth
Capabilities
13/04/2018
25
Portfolion hallinta
Kilpailijaseuranta
Tekniikan tason kartoitus
Keksintöilmoitukset
Diaarin ylläpito
Vuosimaksut
IPR-toiminnot yrityksessä
UutuustutkimuksetToimintavapausselvitykset
Patenttivirasto
Paikallinen asiamies
Hallinnoiva asiamies
Yrityksen IPR-organisaatio
Local R&D, requirements of public support, High-Tech Industry
High-Tech Status• Value-added products• High-Tech transformation of Chinese economy• Employment of Talents• Talent Programs• Start-ups• Export
R&D competence audit, (Criteria change every year)• Investments to R&D• R&D personnel investments• Reporting of R&D staff • Patents• Innovations
• Company tax cut• Other benefits (city level)• R&D personnel salary
support (local)
What the company can get…
13/04/2018
26
Partnering with start-ups at hackathons around the world
51
Role of materials technology
Critical materials, electro-mechanical
parts
1. Permanent magnet materials, NbFeB
2. Carbon steel wire, ropes
3. Die-cast aluminum, AlSi12
4. Stainless steels, austenitic/ferritic
5. Cold rolled sheet, galvanized, organic
coated,
6. High-strength cast iron
7. Electrical steel and copper
8. Low friction polymers, UHMWPE
9. Elastomers
52
New materials
1. Carbon fiber composites
2. Polymer nanocomposites
3. High-strength steels
4. High-strength Al-Mg alloy
5. TPU- coatings
6. High-temperature friction
materials
New materials and light-weight structures are
seen as a strategic area2017
13/04/2018
27
Sheet metal
Part variation is very large, size, finish, steel type,
Applications: Doors, cars, guides, frames, housings, cabinets,
containers, panels, profiles ,faceplates, skirtings, railings, etc,
95% mechanically joined parts,
Degree of integration is low, maintainability, disassembly
Flexible production, specialized suppliers for elevator and
escalator industry, (capital cost)
Large mass of products but proportion of added value is low,
Construction industry uses sheet metal, appliances, electro-
mechanics, decoration. Visual quality critical.
Elevators and escalators need to follow the architectural design
trends. So, quality of visual parts is of prime importance.
53
Thank you !