KONE s Interim Report for January June 2013

Transcription

1 New KONE UltraRope technology raises tall buildings to new heights. KONE s Interim Report for January June 2013 The innovative KONE UltraRope will revolutionize the way tall buildings are designed and built. Due to its durable, lightweight carbon fiber core and special high-friction coating, it opens a new era in high-rise construction. July 19, 2013 Matti Alahuhta, President & CEO

2 Q2 2013: Continued strong progress on a broad basis Q2/2013 Q2/2012 Historical change Comparable change Orders received MEUR 1, , % 8.7% Order book MEUR 5, , % 14.1% Sales MEUR 1, , % 14.8% Operating income (EBIT) MEUR ) 15.5% Operating income (EBIT) % ) EBITA MEUR ) 13.2% EBITA % ) Cash flow from operations (before financing items and taxes) MEUR ) Excluding a MEUR 37.3 one-time cost related to the support function development and cost adjustment programs. Comparative figures for 2012 have been restated according to the revised IAS 19 `Employee Benefits. 2 KONE Corporation July 19, 2013 Interim Report January June 2013

3 January June 2013: Very strong development 1 6/ /2012 Historical change Comparable change Orders received MEUR 3, , % 16.3% Order book MEUR 5, , % 14.1% Sales MEUR 3, , % 13.7% Operating income (EBIT) MEUR ) 16.9% Operating income (EBIT) % ) EBITA MEUR ) 14.1% EBITA % ) Cash flow from operations (before financing items and taxes) MEUR ) Excluding a MEUR 37.3 one-time cost related to the support function development and cost adjustment programs. Comparative figures for 2012 have been restated according to the revised IAS 19 `Employee Benefits. 3 KONE Corporation July 19, 2013 Interim Report January June 2013

4 Q Orders received: Growth driven by Asia-Pacific MEUR 2,000 1, % 1, % 1,638 1, Q1 Q2 Q3 Q4 4 KONE Corporation July 19, 2013 Interim Report January June 2013

5 Q Sales: Strong growth in new equipment and good growth in maintenance MEUR 2, % 12.7% 1,762 1,500 1,399 1, Q Q2 Q3 Q4 5 KONE Corporation July 19, 2013 Interim Report January June 2013

6 Q Operating income: Continued strong new equipment sales growth in China and positive development in service business key contributors to EBIT growth MEUR % % Q1 Q2 Q3 Q4 6 KONE Corporation July 19, 2013 Interim Report January June 2013 Operating income excluding one-time items. Comparative figures for 2012 have been restated according to the revised IAS 19 `Employee Benefits..

7 January June 2013: Significant change in business and geographic mix due to strong Asia-Pacific growth Sales by business Sales by market 52% (47%) 48% (53%) 38% (33%) 46% (51%) 16% (16%) Service New equipment 7 KONE Corporation July 19, 2013 Interim Report January June 2013 EMEA Americas Asia-Pacific (1 6/2012 figures in brackets) EMEA = Europe, Middle East, Africa

8 Q EMEA: New equipment demand continued to decline in most markets New equipment markets In Central and North Europe, the market declined slightly, but remained at a relatively good level. In South Europe, new equipment demand declined further. In the Middle East, the market grew. Modernization markets The market declined in most countries in Central and North Europe and continued to decline in South Europe. Maintenance markets The market grew but with a significant variation between countries. Price competition remained very intense, particularly in South Europe. 8 KONE Corporation July 19, 2013 Interim Report January June 2013

9 Q North America: New equipment market continued to grow New equipment markets In the United States, the market continued to grow driven by the residential and office segments. In Canada and Mexico, the market was stable. The market grew. Modernization markets Maintenance markets The market grew, but price competition remained intense, particularly in the nonresidential segments. 9 KONE Corporation July 19, 2013 Interim Report January June 2013

10 Q Asia-Pacific: Rapid growth continued but at a clearly lower growth rate than in Q1 New equipment markets In China, the market grew rapidly driven by positive development in all segments, but at a clearly lower rate than in Q In India, the market grew driven by residential and infrastructure segments. In Australia, demand turned to growth. The Southeast Asian markets continued to grow with fastest growth in Indonesia. Modernization markets The modernization market in Australia saw some growth. Maintenance markets The market continued to grow. 10 KONE Corporation July 19, 2013 Interim Report January June 2013

11 China s market outlook is favorable also in the longer term, but the market is transitioning towards a phase of more moderate growth China s urban population is estimated to reach one billion by 2030 Urban development model is based on increasing density in cities Construction of new buildings is driven by both urbanization and middle income growth In addition to new buildings, a very significant part of construction growth comes from the rebuild of existing buildings A large stock of existing buildings is required to be rebuilt as the buildings do not meet today s urban development needs The average lifetime of a building in China is clearly shorter than e.g. in Europe Longer-term outlook for the E&E market remains favorable Demand for new construction and rebuild E&E per capita density expected to increase significantly from current low levels 11 KONE Corporation July 19, 2013 Interim Report January June 2013

12 Continued good progress with our Development Programs case Innovative Solutions for People Flow TM Customer Experience Employee Engagement Innovative Solutions for People Flow TM Service Leadership 1. Launch of innovative KONE UltraRope TM hoisting technology 2. Roll-out of global volume elevator offering progressed according to plans 3. Launch of new escalator offering with further improved energy efficiency and versatile design options Delivery Chain Excellence 12 KONE Corporation July 19, 2013 Interim Report January June 2013

13 Market outlook 2013 New equipment markets The market in Asia-Pacific is expected to grow clearly. The market in China is expected to grow by % in The market in Central and North Europe is expected to decline slightly and the market in South Europe to decline further from an already weak level. The market in North America is expected to continue to grow. Modernization markets The modernization market is expected to be at about the same level as in 2012 or decline slightly. Maintenance markets The maintenance market is expected to continue to develop rather well in most countries. 13 KONE Corporation July 19, 2013 Interim Report January June 2013

14 Business outlook 2013 (specified) Sales KONE s net sales is estimated to grow by 9 11% at comparable exchange rates as compared to Operating income The operating income (EBIT) is expected to be in the range of EUR million, assuming that translation exchange rates do not materially deviate from the situation of the beginning of KONE Corporation July 19, 2013 Interim Report January June 2013

15

16 Download KONE IR app from App Store! KONE IR app available for free download from Apple App Store. Easy access to recent news and publications, contacts and share data. KONE s IR team is available for further information on KONE (investors@kone.com). 16 KONE Corporation July 19, 2013 Interim Report January June 2013