KONE Corporation - User-centric design drives new People ......KONE’s Financial Statements 2013...
Transcript of KONE Corporation - User-centric design drives new People ......KONE’s Financial Statements 2013...
KONE’s Financial Statements 2013 January 28, 2014 Matti Alahuhta, President & CEO
User-centric design drives new People Flow Intelligence solutions. The new and intuitive touchscreen KONE Destination Operating Panel (DOP) now brings the swiping revolution to elevator users.
Q4 2013: Strong development on a broad basis
Q4/2013 Q4/2012 Historical change
Comparable change
Orders received MEUR 1,473.2 1,321.3 11.5% 16.0%
Order book MEUR 5,587.5 5,050.1 10.6% 16.0%
Sales MEUR 2,033.0 1,857.7 9.4% 13.1%
Operating income (EBIT) MEUR 292.8 257.4 13.7%
Operating income (EBIT) % 14.4 13.9
EBITA MEUR 297.9 264.3
EBITA % 14.7 14.2
Cash flow from operations (before financing items and taxes)
MEUR 240.8 266.6
Comparative figures for 2012 have been restated according to the revised IAS 19 `Employee Benefits´.
January 28, 2014 Financial Statements 2013 | © KONE Corporation 2
2013: Strong overall progress
Comparative figures for 2012 have been restated according to the revised IAS 19 `Employee Benefits´. 1) Excluding a MEUR 37.3 one-time cost related to the support function development and cost adjustment programs. 2) Excluding one-time items. Including one-time items, basic earnings per share was EUR 1.17 in 2012. 3) Board’s proposal to the AGM. 4) KONE also paid an extraordinary dividend of EUR 0.65 per B-share for the financial year 2012. Dividends adjusted for the share split (1:2) done in December 2013.
2013 2012 Historical change
Comparable change
Orders received MEUR 6,151.0 5,496,2 11.9% 14.1%
Order book MEUR 5,587.5 5,050.1 10.6% 16.0%
Sales MEUR 6,932.6 6,276.8 10.4% 12.6%
Operating income (EBIT) MEUR 953.4 828.7 1) 15.1%
Operating income (EBIT) % 13.8 13.2 1)
EBITA MEUR 973.6 861.5 1)
EBITA % 14.0 13.7 1) Cash flow from operations (before financing items and taxes)
MEUR 1,213.1 1,070.8
Basic earnings per share EUR 1.37 1.23 2)
Dividend per share EUR 1.00 3) 0.88 4)
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Q4 2013 Orders received: Growth in all geographies – 16% growth at comparable currencies
MEUR 2,000
1,500
0
1,000
500
2.4%
8.2% 25.4%
Q2
1,638
1,473
Q4 Q3
1,327
Q1
1,712 11.5%
2005 2013 2005 2013 2005 2013 2005 2013
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Q4 2013 Sales: Strong growth in new equipment and good growth in maintenance – overall service sales growth burdened by a decline in modernization sales
MEUR
2,000
1,000
0
2,200
200
600
1,200
1,600
1,400
400
1,800
800
1,399
Q2
1,739
Q3 Q4
14.1% 6.5%
12.7% 1,762
Q1
9.4%
2,033
2005 2013 2005 2013 2005 2013 2005 2013
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Q4 2013 Operating income: Growth driven by strong sales growth in Asia-Pacific and a good development in North America
Operating income excluding one-time items. Comparative figures for 2012 have been restated according to the revised IAS 19 `Employee Benefits´.
MEUR 293
258243
160
0
50
100
150
200
250
300 13.7% 15.5%
19.2%
Q4 Q3 Q2 Q1
13.8%
2005 2013 2005 2013 2005 2013 2005 2013
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2013: The share of new equipment grew to 54% of sales and the share of Asia-Pacific to 38% of sales
(2012 figures in brackets) EMEA = Europe, Middle East, Africa
New equipment
Maintenance Modernization
32% (34%)
54% (50%)
14% (16%)
46% (49%)
38% (35%)
16% (16%)
Asia-Pacific
EMEA Americas
Sales by business Sales by market
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Sales by market 2005–2013 (MEUR)
2012
6,277
35%
16%
49%
2011
5,225
27%
18%
55%
2010 2013
38%
16%
46%
6,933
4,987
21%
21%
58%
2009
4,744
17%
21%
62%
2008
4,603
16%
19%
65%
2007
4,079
14% 21%
65%
2006
3,601
13% 22%
65%
2005*
3,242
12% 22%
66%
Asia-Pacific Americas EMEA
CAGR,%
*) 2005 figures are pro forma
10.0%
4.9%
6.1%
26.9%
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Sales by business 2005–2013 (MEUR)
50%
2011
5,225
37%
17%
46%
4,744
34%
19%
47%
2008
4,603
33%
19%
48%
2007
4,079
36%
19%
45%
2006
3,601
40%
19%
41%
2005*
3,242
41%
19%
40%
2013
14%
6,933
32%
54%
2012
6,277
34%
16%
2010
4,987
37%
17%
46%
2009
Modernization Maintenance New equipment
CAGR,%
10.0%
6.1%
6.6%
14.1%
*) 2005 figures are pro forma January 28, 2014 Financial Statements 2013 | © KONE Corporation 9
Q4 2013 EMEA: New equipment demand was stable in the EMEA region
Maintenance markets
New equipment markets
Modernization markets
The market grew, although with significant variation between countries. The pricing environment remained characterized by very intense competition, particularly in South Europe and also in some Central and North European markets.
The market grew somewhat in Central and North Europe, but remained weak in South Europe.
In Central and North Europe, the market declined slightly. The market grew in Russia. In South Europe, demand continued to decline. In the Middle East and Turkey, demand continued to
grow.
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Q4 2013 North America: Growth continued
Maintenance markets
New equipment markets
Modernization markets
The market continued to grow, but price competition remained intense, particularly in the non-residential segments.
The market grew slightly.
In the United States, growth continued driven by in the residential and office segments. In Canada, the market was stable. In Mexico, demand declined.
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Q4 2013 Asia-Pacific: Growth across the region, and accelerated growth in China
In China, the market growth accelerated. In India, market growth continued driven
by the residential segment and strong activity in large projects. In Australia, demand was stable. In Southeast Asia, markets grew somewhat.
The market continued to grow.
Maintenance markets
New equipment markets
Modernization markets The modernization market in Australia
was stable.
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Some key highlights and figures in 2013
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Launched KONE UltraRope™ hoisting
technology and KONE People Flow Intelligence solutions
New volume elevator offering’s orders and
deliveries progressed as planned Released new commercial and public transport
escalator offering with award winning design Third consecutive nomination for the Forbes’ list
of world’s 50 most innovative companies
New equipment orders received
Some highlights in 2013
~137,000 units (~118,000)
New equipment units delivered
~120,000 units (~103,000)
KONE’s global maintenance base
>950,000 units (>900,000)
(2012 figures in brackets)
Our Development Programs supported our systematic development in 2011–2013
Service Leadership
Innovative Solutions for People FlowTM
Employee Engagement
Customer Experience
Delivery Chain Excellence
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Increased the effectiveness of delivery chain through Lean methods, and improved the supply-demand planning.
Improved customer loyalty every year.
Improved employee satisfaction every year.
Launched new volume elevator offering, escalator offering, KONE People Flow Intelligence solutions and KONE UltraRope™ hoisting technology.
Developed sales and field competences and the quality and productivity of field operations.
To accelerate our development, we have chosen five new Development Programs for 2014–2016
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First in Customer Loyalty
A winning team of true professionals
Ensure we have a committed and competent employee in every job.
Improve our customer service and communication for increased loyalty.
The Most Competitive People Flow® Solutions
Preferred Maintenance Partner
Drive the profitable growth of our maintenance base.
Top Modernization Provider
Accelerate the development of our modernization business.
Further develop the competitiveness of our products.
We continue to systematically develop our business towards our vision
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Market outlook 2014
The market in Asia-Pacific is expected to grow clearly. The market in China is expected to grow by approximately 10%. The market in the EMEA region is expected to grow
slightly, with relatively stable demand in Central and North Europe, a further slight decline in South Europe, and a growing demand in the Middle East. The market in North America is expected to continue to
grow.
The maintenance market is expected to develop rather well in most countries.
Maintenance markets
New equipment markets
Modernization markets The modernization market is expected to grow slightly.
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Business outlook 2014
KONE’s net sales is estimated to grow by 6–9 % at comparable exchange rates as compared to 2013.
The operating income (EBIT) is expected to be in the range of EUR 980–1,050 million, assuming that translation exchange rates do not materially deviate from the situation of the beginning of 2014.
Sales
Operating income
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E&E market and KONE’s performance in China in 2013
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New equipment market growth
Share of orders received
Market KONE
15+%
~23%
Share of sales
Maintenance base CAGR ’06-’13
KONE China key figures in 2013
<40% China
China ~30%
>35%
KONE estimates