# KONE Oyj

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/kone).

## Overview

KONE is a global leader in the elevator and escalator industry, headquartered in Espoo, Finland. The company specializes in the design, manufacture, and maintenance of elevators, escalators, and automatic building doors. KONE plays a crucial role in urban development by ensuring the smooth and safe movement of people in smart and sustainable buildings. With operations in nearly 70 countries, KONE serves a diverse range of customers worldwide, focusing on innovation and sustainability in urban mobility solutions.

## Products & services

• Elevators for residential and commercial buildings
• Escalators and autowalks for public spaces
• Automatic building doors for enhanced accessibility
• Maintenance services for elevators and escalators
• Modernization solutions for aging equipment
• Digital solutions for smart building integration

- **New Equipment** (40%) — Includes elevators and escalators for new buildings
- **Maintenance** (35%) — Services for maintaining existing equipment
- **Modernization** (25%) — Upgrades and updates for existing installations

- Elevators for residential and commercial buildings
- Escalators and autowalks for public spaces
- Automatic building doors for enhanced accessibility
- Maintenance services for elevators and escalators
- Modernization solutions for aging equipment
- Digital solutions for smart building integration

## Customers

KONE's customer base is diverse, including property developers, building owners, facility managers, and public sector organizations. The company serves both residential and commercial sectors, providing solutions that enhance building accessibility and efficiency. Customers choose KONE for its commitment to safety, reliability, and sustainability, as well as its innovative digital solutions that integrate with smart building technologies. KONE's extensive service network ensures timely maintenance and support, which is critical for customer satisfaction and operational continuity.

- **Property Developers** (primary) — Purchase new elevators and escalators for projects
- **Building Owners** (primary) — Invest in modernization and maintenance for existing equipment
- **Public Sector** (secondary) — Require escalators and autowalks for public infrastructure

- Property developers seeking reliable vertical transportation solutions
- Building owners requiring efficient and safe mobility systems
- Facility managers looking for comprehensive maintenance services
- Public sector organizations needing escalators and autowalks for public spaces
- Customers valuing sustainability and energy efficiency in building solutions

## Geography

KONE operates in nearly 70 countries, with a significant presence in Europe, North America, and Asia-Pacific. The company has manufacturing facilities and service centers strategically located to support its global operations. China represents a key market, although it faces challenges due to economic conditions. KONE's geographic diversification helps mitigate risks associated with regional market fluctuations and supports its growth strategy by tapping into emerging markets.

- Headquartered in Espoo, Finland, with global operations
- Strong presence in Europe, North America, and Asia-Pacific
- Manufacturing facilities and service centers worldwide
- Significant market presence in China despite economic challenges
- Geographic diversification supports growth and risk mitigation

## Strategy

KONE's strategic priorities focus on expanding its service and modernization businesses, which now account for over 60% of revenue. The company is accelerating digitalization efforts to enhance maintenance services and customer experience. KONE aims to lead in sustainable urban development by offering energy-efficient solutions and reducing carbon emissions. The company is also optimizing its procurement and sales operations to improve profitability and competitiveness in a challenging market environment.

- **Expand Service and Modernization** (medium-term) — To drive revenue growth and resilience
- **Accelerate Digitalization** (short-term) — To enhance customer experience and operational efficiency
- **Sustainable Urban Development** (long-term) — To lead in energy efficiency and carbon reduction

- Expand service and modernization businesses for revenue growth
- Accelerate digitalization to enhance maintenance and customer experience
- Lead in sustainable urban development with energy-efficient solutions
- Optimize procurement and sales operations for improved profitability
- Focus on innovation to maintain competitive edge in the market

## Risks

KONE faces several risks, including economic fluctuations impacting the construction industry, particularly in China. Geopolitical tensions and supply chain disruptions pose additional challenges. The competitive landscape in the elevator and escalator industry requires KONE to continuously innovate and adapt to changing customer needs. Financial risks include currency fluctuations and changes in local financial regulations, which can affect cash flow and profitability. KONE's risk management strategies aim to mitigate these exposures and ensure business continuity.

- **Economic Fluctuations in China** [critical] — Affects demand for new equipment
- **Geopolitical Tensions** [high] — Impact on global supply chains and market access
- **Competitive Landscape** [high] — Requires continuous innovation to maintain market share

- Economic fluctuations affecting construction industry demand
- Geopolitical tensions and supply chain disruptions
- Intense competition requiring continuous innovation
- Currency fluctuations impacting financial performance
- Changes in local financial regulations affecting cash flow

## Accounting

KONE's financial statements are influenced by several critical accounting matters, including revenue recognition from long-term contracts, which are recognized over the contract duration. The company also deals with currency fluctuations, impacting financial results due to its global operations. Derivatives are used to hedge against foreign exchange risks, with fair value measurements impacting balance sheet valuations. KONE's financial performance is subject to seasonal variations, with fluctuations in demand affecting quarterly results. These accounting practices are crucial for investors to understand KONE's financial health and performance.

- **Revenue Recognition** — Significant for long-term contracts
- **Currency Fluctuations** — Material impact on profitability
- **Derivatives and Hedging** — Affects balance sheet and cash flow

- Revenue recognition over contract duration impacts reported sales
- Currency fluctuations affect financial results due to global operations
- Derivatives used for hedging foreign exchange risks
- Fair value measurements impact balance sheet valuations
- Seasonal variations affect quarterly financial performance

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*Last updated: 2026-08-11T04:04:53.832961+00:00*