kone q4 2011 en_26012012
TRANSCRIPT
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KONE Financial Statements 2011January 26, 2012
Matti Alahuhta, President & CEO
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2 KONE Corporation | January 26, 2012 | Financial Statements 2011
Q4 2011: Good development in a challenging
environment
195.1
15.3
227.3
1,488.8
3,597.8
1,006.3
Q4/2010
2.5%
6.7%
20.9%
9.2%
Historicalchange
MEUR
%
MEUR
MEUR
MEUR
MEUR
212.5Cash flow from
operations(before financial
items and taxes)
14.7Operating income
233.0Operating income
6.9%1,588.8Sales
19.3%4,348.2Order book
9.3%1,098.8Orders received
ComparablechangeQ4/2011
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3 KONE Corporation | January 26, 2012 | Financial Statements 2011
2011: Record year in orders received and good
overall performance in an uncertain environment
2.102.52 1)EURBasic earnings pershare
0.901.40 2)EURDividend
857.214.0
696.4
4,986.6
3,597.8
3,809.0
2010
4.1%
4.8%
20.9%
17.2%
Historicalchange
MEUR%
MEUR
MEUR
MEUR
MEUR
819.8Cash flow fromoperations(before financial itemsand taxes)
13.9Operating income
725.1Operating income
5.4%5,225.2Sales
19.3%4,348.2Order book
17.8%4,465.1Orders received
Comparablechange2011
1) Including one-time gain from the revaluation of KONEs previously held stake in GiantKONE. Excluding this one-timegain, basic earnings per share is EUR 2.30.
2) Boards proposal to the AGM.
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4 KONE Corporation | January 26, 2012 | Financial Statements 2011
0
200
400
600
800
1000
1200
1400
Q1 Q2 Q3 Q4
2005
2006
20072008
2009
2010
2011
Q4 2011 Orders received:
Growth in all geographies
MEUR
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5 KONE Corporation | January 26, 2012 | Financial Statements 2011
0
200
400
600
800
1000
1200
1400
1600
1800
Q1 Q2 Q3 Q4
2005
2006
20072008
2009
2010
2011
Q4 2011 Sales:
Very strong growth in Asia-Pacific
MEUR
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6 KONE Corporation | January 26, 2012 | Financial Statements 2011
Q4 2011 Operating income: Slower growth due to
increased labor costs in Asia, material costs and
price competitionMEUR
Note : Operating income excluding one-time items
0
50
100
150
200
250
Q1 Q2 Q3 Q4
2005
2006
20072008
2009
2010
2011
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7 KONE Corporation | January 26, 2012 | Financial Statements 2011
2011: Development towards a more balanced
geographical mix
Sales by business
54 %
46 %
Service New equipment
Sales by market
55 %
18 %
27 %
EMEA Americas Asia-Pacific
(54 %)
(46 %)
(58 %)
(21 %)
(21 %)
(2010 figures in brackets)
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8 KONE Corporation | January 26, 2012 | Financial Statements 2011
2011 Sales by market: Asia-Pacifics share of
sales grew to 27% of total sales
14%
21%
65%
2006
3 601
13%
22%
65%
2005*
3 242
12%
22%
66%
2011
5 225
27%
18%
4 079
2010
4 987
21%
21%
58%
2009
4 744
17%
21%
62%
2008
4 603
16%
19%
65%
2007
55%
Asia-PacificAmericasEMEA
CAGR,%Sales by market 2005-2011, MEUR
*) 2005 figures are pro forma
8.3
5.1
5.3
23.2
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9 KONE Corporation | January 26, 2012 | Financial Statements 2011
Q4 2011 EMEA: Mixed and uncertain market
environment
Maintenance markets
New equipment markets
Modernization markets
Good development, but price competitionremained intense.
Growth in Central and North Europe and declinein South Europe.
In Central and North Europe, the market was stable.
In South Europe, the market was weak. In the Middle East, the market grew in Saudi Arabia. In Russia, the market continued to grow.
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10 KONE Corporation | January 26, 2012 | Financial Statements 2011
Q4 2011 Americas: Continued gradual recovery
from a low level in the new equipment market
Maintenance markets
New equipment markets
Modernization markets
Good development, but price competitionremained intense.
Rather stable markets.
In the United States, the gradual recovery of the
market continued. The activity level variedsignificantly across the different regions andcities.
In Canada, the market remained stable at agood level.
In Mexico, the market continued to grow.
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11 KONE Corporation | January 26, 2012 | Financial Statements 2011
Q4 2011 Asia-Pacific: Rapid growth continued
but at a lower rate than earlier in the year
In China, all segments except the infrastructure
segment continued to grow, but at a lower rate. In India, the market grew slightly. The growth rate
was clearly lower than in H1 2011 due to financingconstraints.
In Australia, the market declined due to longer
lead times in decision-making. In Southeast Asia, markets remained strong.
Continued good development.
Maintenance markets
New equipment markets
Modernization markets
Continued growth in Australia and other markets.
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12 KONE Corporation | January 26, 2012 | Financial Statements 2011
2011: KONE performed well in a demanding
environment
Very strong growth in orders received.
Strong progress in the key growth markets in
Asia-Pacific.
Investments in future growth: Asia-Pacific,R&D and process development.
Good development in quality andproductivity.
In modernization, growth in orders received
and sales.
Maintenance base exceeded 850.000elevators and escalators in service.
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13 KONE Corporation | January 26, 2012 | Financial Statements 2011
KONE became the majority owner of GiantKONE
market share grew both in China and globally
KONE increased its shareholding in GiantKONEfrom 40% to 80%.
The acquisition was completed and GiantKONE
consolidated as a subsidiary as of December 1,2011.
GiantKONE is one of the largest Chinese E&Ecompanies.
Key financial figures 2011: Orders received: EUR 342 million Sales EUR 247 million EBIT margin: approximately 11%
Personnel: approximately 2000 employees
KONE has an option to buy and Giant Holdings anoption to sell the remaining 20%.
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14 KONE Corporation | January 26, 2012 | Financial Statements 2011
The financial impacts of GiantKONEs
consolidation
Financial impacts of consolidation in 2011:
One-time gain of EUR 63 million relating to therevaluation of the previously held 40% stake,
recorded under the share of associatedcompanies net income.
A slight negative impact on KONEs operatingincome in Q4.
Financial impacts of consolidation in 2012:
GiantKONEs EBIT contribution in 2012 isexpected to be marginal due to intangible assetamortizations.
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15 KONE Corporation | January 26, 2012 | Financial Statements 2011
Good progress in our Development Programs
Service Leadership
Innovative Solutionsfor People FlowTM
Employee Engagement
Customer Experience
Delivery Chain Excellence
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16 KONE Corporation | January 26, 2012 | Financial Statements 2011
Our long-term financial targets remain intact
Faster than the marketGrowth
Profitability
Cash flowImproved Working Capital
Rotation
EBIT 16%
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17 KONE Corporation | January 26, 2012 | Financial Statements 2011
Market outlook 2012
The new equipment markets in Asia-Pacific areexpected to continue to grow, but at a clearlylower rate than in 2011.
In new equipment, the markets in Central andNorth Europe are expected to remain relativelystable or decline slightly, and the markets inSouth Europe are expected to decline from analready weak level.The new equipment market in North America isexpected to gradually recover from a low level.
The modernization markets are expected to be atabout the same level as in 2011 or grow slightly.
The maintenance markets are expected tocontinue to develop well.
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18 KONE Corporation | January 26, 2012 | Financial Statements 2011
Business outlook 2012
KONEs net sales is estimated to grow by8-13% at comparable exchange rates ascompared to 2011.
The operating income (EBIT) is expected tobe in the range of EUR 730-790 million,assuming that translation exchange rates donot materially deviate from the situation ofthe beginning of 2012.
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