KONE’s Interim Report for January-June 2014...KONE’s Interim Report for January-June 2014 Aiming...
Transcript of KONE’s Interim Report for January-June 2014...KONE’s Interim Report for January-June 2014 Aiming...
KONE’s Interim Report for January-June 2014
Aiming for even greener maintenance KONE continuously looks for new and innovative ways for reducing the environmental impact of its operations. Our maintenance technicians globally use 10,000 service vehicles to reach our customer sites. In 2013, KONE decreased the absolute carbon footprint of its total vehicle fleet by 2.4%, and the total relative carbon footprint per unit in service was reduced by 6.9%.
July 18, 2014 Henrik Ehrnrooth, President & CEO
Q2 2014: Strong development of orders received in all geographic regions
Q2/2014 Q2/2013 Historical change
Comparable change
Orders received MEUR 1,801.9 1,638.2 10.0% 15.3%
Order book MEUR 6,537.2 5,874.4 11.3% 15.5%
Sales MEUR 1.848.9 1,761.7 5.0% 9.0%
Operating income (EBIT) MEUR 263.2 242.8 8.4%
Operating income (EBIT) % 14.2 13.8
Cash flow from operations (before financing items and taxes)
MEUR 280.2 325.4
Basic earnings per share EUR 0.39 0.37
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 2
January–June 2014: Continued profitable growth
1–6/2014 1–6/2013 Historical change
Comparable change
Orders received MEUR 3,531.6 3,350.6 5.4% 10.1%
Order book MEUR 6,537.2 5,874.4 11.3% 15.5%
Sales MEUR 3,290.7 3,160.4 4.1% 7.9%
Operating income (EBIT) MEUR 442.9 403.2 9.8%
Operating income (EBIT) % 13.5 12.8
Cash flow from operations (before financing items and taxes)
MEUR 605.6 623.2
Basic earnings per share EUR 0.67 0.62
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 3
Q2 2014 Orders received: Growth in all geographic regions and in both new equipment and modernization
MEUR
2,000
0
1,000
600
800
400
200
1,200
1,400
1,600
1,800
2,200
+1.0%
Q4 Q1
1,730
Q3 Q2
+10.0%
1,802
2005 2014
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 4
Q2 2014 Sales: Growth in new equipment and maintenance in all geographic regions
MEUR
1,200
1,000
800
600
400
200
0
2,000
1,800
1,600
2,200
1,400
+3.1%
Q4 Q3 Q2 Q1
1,442
+5.0%
1,849
2005 2014
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 5
Q2 2014 Operating income: Solid development in Asia-Pacific, North America and in the maintenance business drove growth of operating income
Operating income excluding one-time items.
MEUR
263
180
0
50
100
150
200
250
300
+12.0%
Q4 Q3 Q2 Q1
+8.4%
2005 2014
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 6
1‒6/2014: The weight of new equipment and Asia-Pacific region continued to grow
(1-6/2013 figures in brackets) Figures in charts are rounded.
Modernization Maintenance New equipment
12% (13%)
35% (35%)
53% (52%)
41% (38%)
14% (16%)
45% (46%)
Asia-Pacific Americas EMEA (Europe, Middle East and Africa)
Sales by business Sales by market
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 7
Q2 2014 EMEA: Environment remained mixed – slight improvement in Central and North Europe
Maintenance markets
New equipment markets
Modernization markets
The market grew, although with significant variation between countries. The pricing environment remained characterized by intense competition, particularly in South Europe and also in some Central and North European markets.
The market saw some growth in Central and North Europe, but declined further in South Europe.
In Central and North Europe, the market grew slightly and showed also a better development sequentially. In South Europe, demand continued to develop
negatively. In the Middle East and Turkey, demand grew.
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 8
Q2 2014 North America: Positive development continued
Maintenance markets
New equipment markets
Modernization markets
The market continued to grow, but price competition remained intense.
The market growth continued.
In the United States, the market saw continued solid growth driven by the residential and commercial segments. Demand in Canada was rather stable.
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 9
Q2 2014 Asia-Pacific: Clear market growth in China
In China, the market grew clearly compared to the previous year. In India, the market declined from a high comparison
level in particular in the infrastructure segment. In Australia, demand grew. In Southeast Asia, markets were rather stable.
The market continued to grow.
Maintenance markets
New equipment markets
Modernization markets
The modernization market in Australia was rather stable.
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 10
Some highlights of the quarter
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 11
KONE ranked as world’s 12th greenest company
Order for the world’s tallest building
KONE to deliver in total 65 elevators and escalators to Kingdom Tower in Jeddah, Saudi Arabia – World’s fastest double deck elevators travelling
at over 10 m/s – World’s highest elevator rise at 660 meters
The order includes also KONE UltraRope hoisting technology and People Flow Intelligence solutions
KONE was ranked the world's 12th greenest company by Newsweek – KONE was the highest ranked company in its industry
In 2013, KONE decreased the carbon footprint of its operations compared to net sales by 3.5%
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 slight growth 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.
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 12
Business outlook 2014 (specified)
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 1,000–1,050 million, assuming that translation exchange rates do not materially deviate from the situation of the beginning of 2014.
Sales
Operating income
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 13
KONE’s Capital Markets Day 2014
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 14
KONE’s Capital Markets Day 2014 will be held on September 26, 2014
The event will be held in the Langham hotel in London
Presentations will be held by o Henrik Ehrnrooth President & CEO o Eriikka Söderström CFO o William B. Johnson EVP Greater China o Larry Wash EVP Americas o Thomas Hietto SVP Maintenance o Ilpo Marjamaa SVP Modernization
E&E market and KONE’s performance in China in Q2/2014
July 18, 2014 Interim Report for January-June 2014 | © KONE Corporation 16
New equipment growth China’s share of total OR and sales New equipment orders received in units
Share of sales
~30%
Share of orders
received
<40%
FY2013
Share of sales
<35%
Share of orders
received
>40%
Q2/2014
In monetary value
Q1/2014
~10%
~15%
2013
15+%
~23%
<15%
CAGR 2006-2012
~20%
~44%
~10%
Q2/2014
Market KONE
Based on KONE estimate