KONE announces its new ambitious strategy for 2025-2030

SHANGHAI,Sept. 19,2024 -- KONE Corporation,a global leader in the elevator and escalator industry,announces its new strategy called "Rise" for 2025–2030. With this new strategy,KONE aims to lead in employee and customer experience,sustainability and innovations,as well as growth and profitability.

To reach this ambition,KONE has defined four strategic shifts: 1) Accelerate digital to fundamentally transform how KONE does service; 2) Drive modernization to unleash growth opportunities; 3) Win residential to lead in the industry's largest segment; and 4) Cut carbon to drive customer value and differentiation. At the core of KONE's strategy are people,and KONE wants to be the easiest company to work for and to work with.

"We are setting the bar high with our new strategy,not only for us and our stakeholders,but for the whole industry. The nature of megatrends impacting us – urbanization,technological development,and sustainability – is changing and creating exciting new opportunities for us,especially in service and modernization. As our environment is changing,it highlights the importance of our resilient business model. We need bold actions and new perspectives. With more speed,courage,and simplicity,we will change the status quo,and we will do it by leveraging our capabilities in digitalization,by leading the way in sustainability and innovation,and in the end,by offering the best value and experiences to our customers," says Philippe Delorme,President and CEO,KONE Corporation.

"I am confident that with our dedicated employees,we will reach our ambitious targets for the good of our customers,employees,and the planet. This is our opportunity to fulfill KONE's purpose to shape the future of cities," he continues.

KONE's ambition and financial targets

KONE's ambition is to lead in three dimensions in line with the new strategy:

#1 choice for employees and customers

Innovation and sustainability

Growth and profitability

The company's long-term financial targets remain unchanged:

Growth: Faster than the market

Profitability: To reach an EBIT margin of 16%

Cash flow: Improved working capital rotation

KONE is setting the following mid-term financial targets to be achieved by the end of 2027:

Growth: Mid-single-digit sales growth

Profitability: Adjusted EBIT margin of 13–14%

The new strategy and targets will come into effect from January 1,2025,onwards.

Read more

More detailed description of the megatrends,ambition level,four shifts,and core is available at https://www.kone.com/en/company/strategy/.

Previous press releases are available at https://www.kone.com/en/news-and-insights/releases/.

About KONE

At KONE,our purpose is to shape the future of cities. As a global leader in the elevator and escalator industry,we move two billion people every day,making their journeys safe,convenient,and reliable with smart and sustainable People Flow®. In 2023,KONE had annual sales of EUR 11.0 billion,and at the end of the year over 60,000 employees in more than 60 countries. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.

www.kone.com