KONE’s Interim Report for...KONE’s Interim Report for January–September 2014 October 21, 2014...
Transcript of KONE’s Interim Report for...KONE’s Interim Report for January–September 2014 October 21, 2014...
KONE’s Interim Report for
January–September 2014
October 21, 2014
Henrik Ehrnrooth, President & CEO
HANNOVER, GERMANY
Continuously
improving customer
experience
To ensure excellent service, we
gather constant customer feedback
and carry out end-user research. This
insight helps us to continuously
improve our customer service.
Q3 2014: Strong orders received and positive
development overall
Q3/2014 Q3/2013 Historical
change Comparable
change
Orders received MEUR 1,577.2 1,327.2 18.8% 17.4%
Order book MEUR 6,995.8 5,642.1 24.0% 18.6%
Sales MEUR 1,877.9 1,739.2 8.0% 7.9%
Operating income (EBIT) MEUR 277.5 257.5 7.8%
Operating income (EBIT) % 14.8 14.8
Cash flow from operations
(before financing
items and taxes)
MEUR 372.1 349.0
Basic earnings per share EUR 0.41 0.40
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 2
January–September 2014:
Continued profitable growth
1–9/2014 1–9/2013 Historical
change Comparable
change
Orders received MEUR 5,108.8 4,677.8 9.2% 12.3%
Order book MEUR 6,995.8 5,642.1 24.0% 18.6%
Sales MEUR 5,168.6 4,899.6 5.5% 7.9%
Operating income (EBIT) MEUR 720.4 660.7 9.0%
Operating income (EBIT) % 13.9 13.5
Cash flow from operations
(before financing
items and taxes)
MEUR 977.6 972.2
Basic earnings per share EUR 1.07 1.01
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 3
Q3 2014 Orders received: Significant growth driven by
positive development in the new equipment business
in particular MEUR
1,600
2,000
1,400
1,800
1,200
1,000
800
400
0
200
600
2,200
+18.8%
+10.0% +1.0%
Q3 Q4
1,577
1,802 1,730
Q1 Q2 2005 2014
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 4
Q3 2014 Sales: Good growth in new
equipment and maintenance
MEUR
1,000
1,600
800
2,200
1,200
2,000
1,400
1,800
600
400
200
0
Q4 Q3 Q2
1,849
Q1
1,442
1,878
+8.0% +5.0%
+3.1%
2005 2014
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 5
Q3 2014 Operating income: Solid development in Asia-
Pacific, North America and maintenance business
globally drove growth of operating income
Operating income excluding one-time items.
MEUR
277263
180
0
50
100
150
200
250
300 +8.4%
+12.0%
Q4 Q3 Q2 Q1
+7.8%
2005 2014
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 6
1‒9/2014: The weight of new equipment and
the Asia-Pacific region continued to grow
(1–9/2013 figures in brackets)
Figures in charts are rounded.
Modernization
Maintenance
New equipment
12%
(13%)
34%
(34%)
54%
(53%)
42%
(39%)
14%
(16%)
44%
(45%)
Asia-Pacific
Americas
EMEA (Europe, Middle East and Africa)
Sales by business Sales by market
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 7
Q3 2014 EMEA: The market environment
remained mixed, uncertainty increased slightly
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.
The market declined slightly in Central and North
Europe, and remained depressed in South Europe.
In Central and North Europe, the market was rather
stable.
In South Europe, demand remained weak across
segments.
In the Middle East and Turkey, demand grew.
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 8
Q3 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 positive
development across segments.
Demand in Canada was rather stable.
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 9
Q3 2014 Asia-Pacific: Continued demand
growth in China
In China, the market grew clearly compared
to the previous year.
In India, the market declined, with uncertainty
still impacting decision-making.
In Australia, demand grew.
In Southeast Asia, markets grew somewhat.
The market continued to grow well.
Maintenance markets
New equipment markets
Modernization markets
The modernization market in Australia saw
some growth.
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 10
Our development programs are central in
driving differentiation – we have had good
progress in customer loyalty
Interim Report for January–September 2014 | © KONE Corporation 11
First in Customer Loyalty
A Winning Team of True
Professionals
The Most Competitive
People Flow® Solutions
Preferred Maintenance Partner
Top Modernization Provider
October 21, 2014
Our customer loyalty
continued to improve
More systematic
feedback collection
from customers on an
ongoing basis
Improved use of field
communications tools
Market outlook 2014
The market in Asia-Pacific is expected to grow clearly in
2014. The market in China is expected to grow by
approximately 10%.
The market in the EMEA region is expected to grow slightly.
In Central and North Europe, the market is expected to
remain stable or grow slightly, to further slightly decline in
South Europe and to grow in the Middle East.
The market in North America is expected to continue to
grow.
The maintenance markets are expected to develop rather
well in most countries.
Maintenance markets
New equipment markets
Modernization markets
The modernization market is expected to be rather stable or
grow slightly.
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 12
Business outlook 2014 (specified)
KONE’s net sales is estimated to grow by
6–8 % at comparable exchange rates as
compared to 2013.
The operating income (EBIT) is expected to
be in the range of EUR 1,015–1,045 million.
Sales
Operating income
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 13
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 14
E&E market and KONE’s performance
in China in Q3/2014
October 21, 2014 Interim Report for January–September 2014 | © KONE Corporation 15
New equipment growth China’s share of total OR and sales
New equipment orders received in units
Share
of sales
Share of
orders
received
FY2013
Share
of sales
<40%
Share of
orders
received
<35%
Q3/2014
In monetary value
~10%
<15%
Q1/2014
~10%
~15%
2013
15+%
~23%
CAGR
2006-2012
~20%
~44%
Q2/2014 Q3/2014
10+%
<20%
KONE
Market
Based on KONE estimate
<40% ~ 30%
Share of China of group sales for
FY2013 corrected Nov 4, 2014.