KONE Oyj

Quarterly Report • Apr 30, 2025

Classification: KONE Internal

KONE Q1 2025

Q1 1

Interim report for January-March

KONE's January–March 2025 review:

Solid start to the year with growth and improved profitability

January–March 2025

• Orders received grew by 6.4% to EUR 2,378.4 (1–3/2024: 2,235.7) million. At comparable exchange rates, orders grew by 5.1%.
• Sales grew by 4.1% to EUR 2,672.3 (2,568.2) million. At comparable exchange rates, sales grew by 2.8%.
• Operating income (EBIT) was EUR 276.7 (262.4) million or 10.4% (10.2%) of sales. Adjusted EBIT was EUR 279.6 (262.4) million or 10.5% (10.2%) of sales. ¹
• Cash flow from operations (before financing items and taxes) was EUR 486.7 (398.2) million.

Business outlook for 2025 (specified)

KONE expects its sales to grow 1-6% at comparable exchange rates in 2025. Adjusted EBIT margin is expected to be in the range of 11.8%-12.4%. Assuming that foreign exchange rates remain at the April 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT is expected to be approximately EUR 50 million.

KONE previously expected its sales to grow slightly at comparable exchange rates in 2025. The improvement in adjusted EBIT margin was expected to continue in 2025.

¹ KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January–March 2025, items affecting comparability amounted to EUR 2.8 million consisting of costs related to the separation of KONE Door Business under its own legal structure. There were no items affecting comparability in the comparison period.

Key figures

		1–3/2025	1–3/2024	Change	1–12/2024
Orders received	MEUR	2,378.4	2,235.7	6.4%	8,758.9
Order book	MEUR	9,253.2	9,133.0	1.3%	9,058.6
Sales	MEUR	2,672.3	2,568.2	4.1%	11,098.4
Operating income	MEUR	276.7	262.4	5.5%	1,249.0
Operating income margin	%	10.4	10.2		11.3
Adjusted EBIT ¹	MEUR	279.6	262.4	6.6%	1,303.0
Adjusted EBIT margin ¹	%	10.5	10.2		11.7
Income before tax	MEUR	279.6	265.7	5.2%	1,254.1
Net income	MEUR	215.3	205.9	4.6%	961.0
Basic earnings per share	EUR	0.41	0.39	4.7%	1.84
Cash flow from operations (before financing items and taxes)	MEUR	486.7	398.2		1,589.3
Interest-bearing net debt	MEUR	-335.7	-437.9		-831.2
Equity ratio	%	31.7	32.8		39.8
Return on equity	%	34.3	33.8		33.8
Net working capital (including financing items and taxes)	MEUR	-954.0	-921.8		-827.2
Gearing	%	-15.8	-20.9		-28.7

¹ KONE presents adjusted EBIT as an alternative performance measure to enhance comparability of business performance between reporting periods. In January–March 2025, items affecting comparability amounted to EUR 2.8 million consisting of costs related to the separation of KONE Door Business under its own legal structure. There were no items affecting comparability in the comparison period.

Philippe Delorme, President and CEO:

"The first quarter marked a solid start to the year. Growth momentum outside China was good, resulting in orders received increasing by 5% and sales by nearly 3%. In China, our performance was, as anticipated, impacted by continued pressure in the property markets. Although we still expect the demand for New Building Solutions in China to decline significantly this year, we have begun to see a pathway towards stabilization. From a business perspective, Modernization really stood out in the quarter. We grew both orders and sales by nearly 20%, with excellent development in all areas. Service growth was also healthy, which contributed to a favorable sales mix and allowed us to deliver continued improvement in profitability.

Strategy execution progressed well during the quarter. For me, a clear highlight was the continued development of our remote service offering, as well as the accelerated deployment of digital solutions to drive more efficient field operations. We also saw a significant step up in the sales of regenerative drives, which is central to our objective of supporting customers in improving energy efficiency and reducing their carbon footprint. Last but not least, I was pleased to see our performance initiatives in sales and operations excellence and procurement efficiency moving forward. I see great potential for us to work in a more systematic and efficient way across the organization and expect this to be a key contributor to achieving our mid-term financial targets.

Looking ahead, I see exciting opportunities and am confident in the resilience of our model. Although the New Building Solutions business is likely to face some market uncertainty, our order book and positive outlook for Service and Modernization provide a solid foundation for growth. With this in mind, we have specified our guidance for the year. We expect sales to grow by 1-6% at comparable exchange rates, and the adjusted EBIT margin to be in the range of 11.8%-12.4% in 2025. With clarity of direction and dedicated focus on strategy execution, we are well equipped to deliver on our ambition to lead the industry."

Key figures

• Orders received (MEUR) In January–March 2025, orders received grew by 6.4% (at comparable exchange rates, orders received grew by 5.1%) thanks to good momentum outside China.
  • At comparable rates, New Building Solutions orders received declined slightly with slight decline in the volume business and slight decline in major projects. In Modernization, orders received grew significantly with significant growth in the volume business and slight decline in major projects.
  • Overall, the margin of orders received was slightly down year-on-year driven by China. Elsewhere development was more stable.

New Building Solutions sales declined by 9.7% (declined by 10.7% at comparable exchange rates) driven mainly by lower deliveries in Greater China Area. Service sales grew by 9.7% (grew by 8.5% at comparable rates) and Modernization sales grew by 21.5% (grew by 19.8% at comparable rates).

In the Americas Area, sales grew by 9.4% (grew by 7.1% at comparable rates). Sales in the Europe Area grew by 9.1% (grew by 8.5% at comparable rates). In the Asia-Pacific, Middle East and Africa (APMEA) Area, sales grew by 6.0% (grew by 6.7% at comparable rates). In the Greater China Area, sales declined by 11.9% (declined by 13.9% at comparable rates).

Net working capital ¹

• Adjusted EBIT (MEUR) In January–March 2025, operating income was 10.4% of sales (1–3/2024: 10.2%). Adjusted EBIT margin was 10.5% (10.2%).
  • Profitability improved thanks to a favorable business mix. The decline in margin in China and fixed cost absorption due to business seasonality were the main headwinds.
  • With comparable exchange rates, the translation impact on operating income for the comparison period was EUR 1.9 million.
  • (MEUR) At the end of March 2025, net working capital improved from the beginning of the year due to an increase in advances received and the invoicing cycle in the Service business.

1 Including financing items and taxes

• Cash flow ²(MEUR) In January–March 2025 cash flow was EUR 486.7 million.
  • Cash flow was positively impacted by the increase in operating income and changes in working capital.

² Cash flow from operations before financing items and taxes

KONE's January–March 2025 review

KONE's operating environment

	New Building Solutions market in units 1–3/2025	Service market in units 1–3/2025	Modernization market in monetary value 1–3/2025
Total market	--	+	+++
North America	--	+	+++
Europe	+	+	++
Asia-Pacific, Middle East and Africa	++	++	+++
China	---	+	+++
	– – – Significant decline (>10%), – – Clear decline (5–10%), – Slight decline (<5%), Stable, + Slight growth (<5%), ++ Clear growth (5–10%), +++ Significant growth (>10%)

January–March 2025

The global New Building Solutions market declined clearly during the first quarter with regional differences in demand. In North America, the market declined clearly due to slowdown in customer decision making towards the end of the quarter. In Europe, the market grew slightly with decline in the Nordics and growth elsewhere. In Asia-Pacific, Middle East and Africa, activity grew clearly. The market continued to weaken in China.

Service and Modernization markets offered the best growth opportunities. Both markets developed positively with growth across all regions.

Intense competition continued to impact the New Building Solutions pricing environment in China, while elsewhere pricing was more stable. In the Service and Modernization markets, the pricing environment was more favorable.

Orders received and order book

Orders received, MEUR	1–3/2025	1–3/2024	Change	Comparable change ¹	1–12/2024
Orders received ²	2,378.4	2,235.7	6.4%	5.1%	8,758.9
Order book, MEUR	Mar 31, 2025	Mar 31, 2024	Change	Comparable change ¹	Dec 31, 2024
Order book	9,253.2	9,133.0	1.3%	1.9%	9,058.6

¹ Change at comparable foreign exchange rates

² Orders received consist predominantly of New Building Solutions and Modernization orders. Service contracts are not included in orders received, but the figure includes orders related to the Service business, such as repairs.

January–March 2025

Orders received grew by 6.4% as compared to January–March 2024 and totaled EUR 2,378.4 million. At comparable exchange rates, KONE's orders received grew by 5.1% thanks to good momentum outside China.

At comparable rates, orders received in New Building Solutions declined slightly with slight decline in the volume business and slight decline in major projects. In Modernization, orders received grew significantly with significant growth in the volume business and slight decline in major projects.

Overall, the margin of orders received was slightly down year-on-year driven by China. Elsewhere the development was more stable.

Orders received in the Americas Area grew clearly at comparable rates as compared to January–March 2024. New Building Solutions orders declined clearly and Modernization orders grew significantly in the Area.

Orders received in the Europe Area grew clearly at comparable exchange rates as compared to

January–March 2024. New Building Solutions orders grew significantly and Modernization orders grew clearly in the Area.

Orders received in the Asia-Pacific, Middle East and Africa (APMEA) Area grew significantly at comparable rates as compared to January–March 2024. New Building Solutions orders grew significantly and Modernization orders grew significantly in the Area.

Orders received in Greater China Area declined significantly at comparable rates as compared to January–March 2024. New Building Solutions orders declined significantly in units and declined significantly in monetary value. Modernization orders grew significantly in the Area.

The order book grew by 1.3% compared to the end of March 2024 and stood at a strong level of EUR 9,253.2 million at the end of the reporting period. At comparable rates, the order book grew by 1.9%.

The order book margin continued to be at a healthy level. Customer cancellations were at a very low level.

Sales

Sales by business, MEUR	1–3/2025	1–3/2024	Change	Comparable change ¹	1–12/2024
New Building Solutions	929.0	1,028.5	-9.7%	-10.7%	4,506.9
Service	1,188.7	1,083.1	9.7%	8.5%	4,503.6
Modernization	554.6	456.6	21.5%	19.8%	2,088.0
Total	2,672.3	2,568.2	4.1%	2.8%	11,098.4

Sales by Area, MEUR	1–3/2025	1–3/2024	Change	Comparable change ¹	1–12/2024
Americas	696.4	636.8	9.4%	7.1%	2,727.1
Europe	1,098.1	1,006.7	9.1%	8.5%	4,233.8
APMEA	371.9	350.7	6.0%	6.7%	1,609.3
Greater China	506.0	574.1	-11.9%	-13.9%	2,528.2
Total	2,672.3	2,568.2	4.1%	2.8%	11,098.4

¹ Change at comparable foreign exchange rates

January–March 2025

KONE's sales grew by 4.1% as compared to January–March 2024, and totaled EUR 2,672.3 million. At comparable exchange rates, KONE's sales grew by 2.8%. Service and Modernization grew in all Areas which more than compensated for the decline in New Building Solutions sales.

New Building Solutions sales declined by 10.7% at comparable exchange rates driven mainly by lower deliveries in Greater China. Service sales grew by 8.5% at comparable exchange rates, thanks to over 4% service base growth (including some inorganic growth), improved pricing and continued momentum in value-added services. Modernization sales grew by 19.8% at comparable exchange rates, with double-digit growth in all areas.

In the Americas Area, sales grew by 9.4% and totaled EUR 696.4 million. At comparable exchange rates, sales grew by 7.1%. New Building Solutions sales declined slightly, Service sales grew

significantly and Modernization sales grew significantly in the Area.

Sales in the Europe Area grew by 9.1% and totaled EUR 1,098.1 million. At comparable exchange rates, sales grew by 8.5%. New Building Solutions sales grew slightly, Service sales grew clearly and Modernization sales grew significantly in the Area.

In the Asia-Pacific, Middle East and Africa (APMEA) Area, sales grew by 6.0% and totaled EUR 371.9 million. At comparable exchange rates, sales grew by 6.7%. New Building Solutions sales declined slightly, Service sales grew significantly and Modernization sales grew significantly in the Area.

Sales in the Greater China Area declined by 11.9% and totaled EUR 506.0 million. At comparable exchange rates, sales declined by 13.9%. New Building Solutions sales declined significantly, Service sales grew slightly and Modernization sales grew significantly in the Area.

Financial result

		1–3/2025	1–3/2024	Change	1–12/2024
Operating income	MEUR	276.7	262.4	5.5%	1,249.0
Operating income margin	%	10.4	10.2		11.3
Adjusted EBIT	MEUR	279.6	262.4	6.6%	1,303.0
Adjusted EBIT margin	%	10.5	10.2		11.7
Income before taxes	MEUR	279.6	265.7	5.2%	1,254.1
Net income	MEUR	215.3	205.9	4.6%	961.0
Basic earnings per share	EUR	0.41	0.39	4.7%	1.84

January–March 2025

KONE's operating income (EBIT) was EUR 276.7 million or 10.4% of sales. Adjusted EBIT was EUR 279.6 million or 10.5% of sales. The improvement in profitability was driven by a favorable business mix. The decline in margin in China and fixed cost absorption due to business seasonality were the main headwinds.

In January–March 2025, items affecting comparability amounted to EUR 2.8 million consisting of costs related to the separation of KONE Door Business under its own legal structure. There were no items affecting comparability in the comparison period.

With comparable exchange rates, the translation impact on operating income for the comparison period was EUR 1.9 million.

Basic earnings per share was EUR 0.41.

Cash flow and financial position

		1–3/2025	1–3/2024	1–12/2024
Cash flow from operations (before financing items and taxes)	MEUR	486.7	398.2	1,589.3
Net working capital (including financing items and taxes)	MEUR	-954.0	-921.8	-827.2
Interest-bearing net debt	MEUR	-335.7	-437.9	-831.2
Gearing	%	-15.8	-20.9	-28.7
Equity ratio	%	31.7	32.8	39.8
Equity per share	EUR	4.05	3.98	5.54

KONE's financial position was strong at the end of March 2025.

In January–March 2025 cash flow from operations (before financing items and taxes) increased to EUR 486.7 million.

Net working capital (including financing items and taxes) was EUR -954.0 million at the end of March 2025. Net working capital improved from the beginning of the year due to an increase in advances received and the invoicing cycle in the Service business.

Interest-bearing net debt was EUR -335.7 million at the end of March 2025. KONE's cash and cash

equivalents together with current deposits and loan receivables were EUR 1,317.9 (Dec 31, 2024: 1,799.0) million at the end of the reporting period. Interest-bearing liabilities were EUR 1,002.3 (Dec 31, 2024: 987.1) million, including a pension liability of EUR 144.5 (Dec 31, 2024: 141.4) million and lease liabilities of EUR 429.8 (Dec 31, 2024: 432.6) million. Additionally, KONE had an asset on employee benefits, EUR 15.7 (Dec 31, 2024: 15.0) million. Gearing was -15.8% and the equity ratio was 31.7% at the end of March 2025.

Equity per share was EUR 4.05.

Capital expenditure and acquisitions

MEUR	1–3/2025	1–3/2024	1–12/2024
On fixed assets	24.8	24.8	164.3
On leasing agreements	46.6	56.4	232.7
On acquisitions	14.7	55.5	125.6
Total	86.1	136.8	522.5

KONE's capital expenditure and acquisitions totaled EUR 86.1 million in January–March 2025. Capital expenditure excluding acquisitions is mainly related to manufacturing and R&D facilities, IT licenses and software development as well as tools and equipment in R&D. Capital expenditure on leases

consists mainly of maintenance vehicles and office facilities.

Acquisitions totaled EUR 14.7 million in January– March 2025. KONE completed several servicerelated acquisitions in Europe.

Research and development

		1–3/2025	1–3/2024	Change	1–12/2024
R&D expenditure	MEUR	56.8	48.4	17.4%	203.6
As percentage of sales	%	2.1	1.9		1.8

KONE's R&D activities focus on developing smart and sustainable solutions that adapt to future needs. KONE supports its customers in achieving their ecoefficiency goals throughout the building lifecycle and develops a variety of partnerships to further enhance our customer-focused solutions. Research and development expenditure totaled EUR 56.8 million, representing 2.1% of sales in January–March 2025. R&D expenditure includes the development of new products and service concepts as well as further development of existing solutions and services.

During the first quarter of 2025, KONE introduced a range of updates to its modernization offering in the

Americas to enable faster installation and significant cost savings. KONE MonoSpace 100 DX, a costcompetitive solution for the low-rise market, was available in close to 20 countries in Europe by the end of the quarter. KONE also continued the deployment of its remote service offering and accelerated the roll out of Dynamic Maintenance Planning. The share of connected elevators in KONE's service base increased to approximately 36%. Additionally, the digital repair tendering approval process became available for customers in the Nordics and India through the myKONE digital customer portal.

Environmental sustainability

One of KONE's key strategic ambitions is to lead the industry in sustainability. To reach this ambition, KONE has defined Cut Carbon as one of its four strategic shifts, to drive customer value and differentiation.

Environmental targets and outcomes

KONE announced its climate pledge in 2020. KONE's long-term target for Scope 1 and 2 greenhouse gas (GHG) emissions is an absolute reduction of 50% by 2030 from the base-year 2018, and for product and value chain related Scope 3 GHG emissions a reduction of 40% by 2030, relative to ordered products from the base-year 2018. In addition, KONE has pledged to have carbon neutral operations by 2030.

The 2024 carbon footprint calculations were finalized during the first quarter of 2025. In 2024, KONE reached net Scope 1 and 2 emission reduction of 29%, and Scope 3 (product and value chain) emissions per product ordered decreased by 12.8% compared to 2018. Detailed emissions data and further information on environmental targets and outcomes

are available in KONE's 2024 Sustainability Statement and Sustainability Supplement.

KONE's sustainable offering and recognitions

KONE supports sustainable and green buildings through an energy-efficient and innovative offering, the use of functional and sustainable materials, as well as the transparent documentation of our products' environmental impacts. KONE has a wide range of best-in-class energy performance references for its products in various building types, market areas and product specifications, and currently has a total of 34 best-in class energy efficiency references for elevator and escalator platforms according to the international ISO 25745 standard for the energy performance of lifts, escalators and moving walks. During the first quarter of 2025, KONE Finland received ISO150001:2018 Energy Efficiency Management certifications covering KONE's operations in Finland.

During the first quarter of 2025, KONE received four sustainability recognitions.

Sustainability recognitions in 2025	KONE's score	Industry performance
CDP Climate Change List	A	12th consecutive year, KONE is among the few companies that have achieved an 'A' out of nearly 25,000 companies scored.
Clean200 list (by Corporate Knights and California-based shareholder advocates As You Sow)	80th place	Only elevator and escalator company on the list
MSCI	AA	KONE is a leader in the industrial machinery industry
ISS	B-	Prime status in the industry

Social sustainability

KONE employees	1–3/2025	1–3/2024	1–12/2024
Average number of employees	64,206	63,674	64,072
Number of employees at the end of period	63,852	63,647	64,663
Americas	8,024	7,663	7,970
Europe	21,463	20,949	21,346
APMEA	12,441	12,104	12,383
Greater China	21,924	22,931	22,964

At the core of KONE's strategy are people. In addition to four strategic shifts, we are strengthening our core, where our people have a crucial role in how we work together with our customers. With improved processes and courage, speed, and simplicity, KONE wants to be the easiest company to work for and work with.

KONE is committed to transparent, fair and inclusive pay practices to provide clarity and establish a common understanding of how salary decisions are made at KONE. Such pay practices

help not only attract, motivate, and retain talent, but also foster a positive and inclusive work environment. In 2025, KONE targets to start the implementation of a tool to further support pay equity analysis.

Employee performance discussions reflecting on 2024 accomplishments and setting goals for 2025 were held during the first quarter of 2025. Year-end evaluations were completed for 97% and goal setting for 84% of the employees within the scope.

Changes in the Executive Board

On February 5, 2025, KONE announced two appointments to the Executive Board.

Nicolas Alchal was appointed Executive Vice President, Commercial & Operations as of April 1, 2025. He continues to be part of the KONE Executive Board, reporting to Philippe Delorme, President and CEO. Nicolas succeeds Axel Berkling who decided to step down from his position as Executive Vice President. Axel will continue to serve the company as an Executive Advisor until the end

Other events

In 2007, a decision was issued by the European Commission concerning alleged local anticompetitive practices before early 2004 in Germany, Luxembourg, Belgium and the Netherlands by leading elevator and escalator companies, including KONE's local subsidiaries. Also, the Austrian Cartel Court issued in 2007 a decision concerning anti-competitive practices that had taken place before mid-2004 in local Austrian markets by leading elevator and escalator companies, including KONE's local subsidiary. As previously announced by KONE, a number of civil damage claims by certain companies and public entities relating to the two 2007 decisions are pending in related countries. The claims have been made against various companies concerned by the

of August 2025, after which he will pursue opportunities outside of KONE.

Kaori Uehigashi was appointed Executive Vice President, Strategy & Transformation as of early May 2025. She continues to be a member of the Executive Board, reporting to Philippe Delorme, having served as the interim leader for the Strategy & Transformation organization since January 2024.

decisions, including certain KONE companies. All claims are independent and are progressing procedurally at different stages. The total capital amount claimed jointly and severally from all of the defendants together was EUR 43 million at the end of March 2025 (December 31, 2024: EUR 55 million). KONE's position is that the claims are without merit. No provision has been made.

As part of the strategic review announced in 2024, KONE has started the separation of its Door Business into its own legal structure. In 2024, KONE Door Business accounted for approximately 2% of KONE's revenue. The contemplated review and actions are subject to local legal requirements and consultation of employee representatives.

Most significant risks

KONE is exposed to risks that may arise from its operations or changes in the operating environment. The most significant risk factors described below can potentially have an adverse effect on KONE's business operations and financial position and, as a result, on the value of the company. Other risks, which are currently either unknown or considered immaterial to KONE may, however, become material in the future. Further information on KONE's risk management is available in KONE's 2024 Annual Review.

Strategic risks

The demand for KONE's products and services and the competitive environment are impacted by the general economic cycles and especially the level of activity within the construction industry. The uncertain economic outlook, and its impacts on construction markets, represents a risk to KONE's business and profitability. This applies especially to China, where market activity remains subdued.

Intensifying geopolitical risks and tensions, protective measures and tariffs, business environment unpredictability and disruptions in global supply chains may impact KONE's main markets and expose KONE to business disruptions and profitability risks. In addition to the level of market demand, the competitiveness of KONE's offering is a key driver for growth and profitability. A failure to anticipate or address changes in customer requirements and in competitors' offerings, ecosystems and business models or in the regulatory environment could result in a deterioration of the competitiveness of KONE's offering. Furthermore, structural changes in the competitive landscape of the elevator and escalator industry, such as increased competition and customer consolidation, could affect market dynamics and KONE's market share.

Operational risks

With business models and ways of working changing in the elevator and escalator industry, KONE needs new organizational capabilities, as well as new competencies and talent on the individual employee level in different fields, such as in digitalization. At the same time, labor scarcity and competition over talent, such as skilled field workforce, is increasing, especially in Europe. Securing the needed resources and their competence management is critical. A failure to develop, retain and attract the required capabilities could have an adverse impact on KONE's growth and profitability.

The majority of components used in KONE's supply chain are sourced from external suppliers, a significant number of which are located in China. KONE also subcontracts a significant amount of installation activity, outsources certain business support processes and works with partners in e.g. digital services and logistics. This exposes KONE to supply chain and logistics constraints, risks related

to component and subcontracted labor availability and cost, as well as to continuity risk in partnerships. A failure to secure the needed materials, components or resources, or quality issues within these, could cause business disruptions, rescheduling of orders and cost increases. Labor availability constraints may also impact progress at construction sites and performance of maintenance and repair services.

As one of the leading companies in the industry, KONE has a strong brand and reputation. Issues that impact the company's reputation or brand could affect KONE's business and financial performance. Such reputational risks could materialize in the case of e.g. safety, cyber-security or non-compliance incidents, major delivery issues or product or service quality issues.

Hazard, security and incidental risks

The operations of KONE, its suppliers and customers utilize information technology extensively and KONE's business is dependent on the quality, integrity, availability and confidentiality of information. Thus, KONE is exposed to IT disruption and cybersecurity risks, as operational information systems and products may be vulnerable to interruption, loss or manipulation of data, or malfunctions which can result in disruptions in processes and equipment availability.

Geopolitical tensions, for instance those related to the wars in Ukraine and the Middle East, may lead to cyber, hybrid and even conventional attacks causing local and global disturbances that may impact KONE, our customers and our suppliers.

A breach of sensitive employee or customer data may result in significant penalties as well as reputational damage. Such incidents could be caused by, including but not limited to, cyber-crime, cyber-attacks, ransomware, information theft, fraud, or inadvertent actions from our employees and vendors.

Physical damage caused by fire, extreme weather conditions, natural catastrophes or terrorism, among other things, could also cause business interruption for KONE or its suppliers.

Financial risks

The majority of KONE's sales and financial result are denominated in currencies other than the euro, which exposes KONE to risks arising from foreign exchange rate fluctuations. KONE is also exposed to counterparty risks related to financial institutions, through the significant amounts of liquid funds deposited with financial institutions, in the form of financial investments and in derivatives. Additionally, KONE is exposed to risks related to liquidity and payment discipline of its customers, which may impact cash flow or lead to credit losses, especially in China. Significant changes in local financial or taxation regulation could also have an impact on KONE's financial performance, liquidity, and cash flow. For further information on financial

16 | Q1

risks, please refer to the notes 2.4, 3.2 and 5.3 in the Financial Statements for 2024.

Decisions of the Annual General Meeting

KONE Corporation's Annual General Meeting was held in Helsinki on March 5, 2025.

The meeting approved the financial statements and the Remuneration Report and discharged the Members of the Board and the President and CEO from liability for the financial period January 1- December 31, 2024.

The number of Members of the Board of Directors was confirmed as nine. Matti Alahuhta, Susan Duinhoven, Marika Fredriksson, Antti Herlin, Iiris Herlin, Jussi Herlin, Timo Ihamuotila and Krishna Mikkilineni were re-elected as Members of the Board. Banmali Agrawala was elected as a new Member of the Board.

At its meeting held after the Annual General Meeting, on March 5, 2025, the Board of Directors of KONE Corporation elected from among its members Antti Herlin as its Chairman and Jussi Herlin as Vice Chair.

Marika Fredriksson was elected as Chair of the Audit Committee and Susan Duinhoven, Jussi Herlin and Timo Ihamuotila as members of the Audit Committee. Marika Fredriksson, Susan Duinhoven and Timo Ihamuotila are independent of both the company and of significant shareholders.

Jussi Herlin was elected as Chair of the Nomination and Compensation Committee and Matti Alahuhta, Susan Duinhoven and Antti Herlin as members of the Nomination and Compensation Committee. Matti Alahuhta and Susan Duinhoven are independent of both the company and of significant shareholders.

The General Meeting confirmed an annual compensation of EUR 220,000 for the Chairman of the Board, EUR 125,000 for the Vice Chairman and EUR 110,000 for Board Members. Of the annual compensation 40 percent will be paid in class B shares of KONE Corporation and the rest in cash. In addition, the General Meeting confirmed a separate annual compensation to the members of the board committees: Chairman of the Audit Committee: EUR 20,000 and members of the Audit Committee: EUR 10,000, and Chairman of the Nomination and Compensation Committee: EUR 20,000 and members of the Nomination and Compensation

Dividend

The General Meeting approved dividends in line with the Board of Director's proposal of EUR 1.7975 for each of the 76,208,712 class A shares and EUR 1.80 for each of the outstanding 453,187,148 class B

Committee: EUR 10,000. The annual compensation of the members of the board committees is paid in cash. In addition, it was resolved that annual compensation is not paid to a Board Member who is employed by the company.

The General Meeting approved the authorization for the Board of Directors to repurchase KONE's own shares. Altogether no more than 52,930,000 shares may be repurchased, of which no more than 7,620,000 may be class A shares and 45,310,000 class B shares. The authorization will be valid until the conclusion of the following annual general meeting, however, at the latest until 30 June 2026.

Furthermore, the General Meeting authorized the Board of Directors to decide on the issuance of shares as well as the issuance of options and other special rights entitling to shares referred to in Chapter 10, Section 1 of the Limited Liability Companies Act. The number of shares to be issued based on this authorization shall not exceed 7,620,000 class A shares and 45,310,000 class B shares. The Board of Directors was authorized to decide on all the conditions of the issuance of shares and of special rights entitling to shares. The authorization concerns both the issuance of new shares as well as the transfer of treasury shares either for consideration or without consideration. The issuance of shares and of special rights entitling to shares may be carried out in deviation from the shareholders' pre-emptive rights (directed issue), if there is a weighty financial reason for the company, such as using shares as consideration in potential corporate acquisitions or other arrangements related to the company's business, financing investments, developing the company's capital structure, or implementing the company's incentive schemes. The authorization will be valid until the conclusion of the following annual general meeting, however, at the latest until 30 June 2026.

Audit firm Ernst & Young Oy was re-elected as the auditor for the term 2025. Ernst & Young Oy was also elected as the company's sustainability reporting assurer for the term 2025.

shares. The date of record for dividend distribution was March 7, 2025 and dividends were paid on March 14, 2025.

Share-based incentive plans

KONE has two separate share-based incentive structures, a performance-based long-term incentive plan structure and a restricted share plan structure.

The performance-based long-term incentive plan structure emphasizes profitable growth and sustainability. It consists of annually commencing individual share plans, each with a three-year rolling performance period. The plans vest and are delivered in one portion after the three years, based on accumulated outcomes of each performance year. If the participant's employment or service relationship with KONE Group terminates before the end of the performance period, the participant, as a rule, forfeits the share award without compensation.

The target group and targets for each annually commencing long-term incentive plan as well as the rewards are decided upon annually by the Board. As part of the long-term incentive plan for the top management, a long-term target for their ownership has been set. For the Executive Board members, the long-term ownership target is that the members have an ownership of KONE shares corresponding to at least five years' annual base salary. For other selected top management positions, the ownership target is at least two years' base salary.

For the performance period 2025-2027, the plan has approximately 600 top leaders and selected key employees, including the President and CEO and members of the Executive Board. The performance

criteria applied to the year 2025 are based on adjusted EBIT margin, sales growth (jointly 80%) and a sustainability index (20%), which measures progress in carbon emission reduction, diversity, safety performance and cybersecurity.

The restricted share plan structure serves as a complementary incentive structure used as a commitment instrument for retention and recruitment purposes for top management (excluding the President and CEO) and other selected key employees. The restricted share plan structure does not have a performance condition. Each annually commencing plan has a commitment period of up to three years, after which the potential share awards will be paid to the participant, provided that their employment or service relationship with KONE Group is in force at the time of payment.

Pursuant to the share-based incentive plan rules, the potential rewards are settled as a combination of KONE class B shares and/or cash when the criteria set in the terms and conditions for the plan are met. The number of shares earned by participants under the share-based incentive plans are determined on a gross basis with a deduction for taxes made when applicable before the delivery of the shares to the participants. Share-based incentive plans are classified as equity settled transactions.

Share capital and market capitalization	Mar 31, 2025	Dec 31, 2024
Number of class B shares	453,187,148	453,187,148
Number of class A shares	76,208,712	76,208,712
Total shares	529,395,860	529,395,860
Treasury shares	11,564,020	11,867,752
Share capital, EUR	66,174,483	66,174,483
Market capitalization, MEUR ¹	26,327	24,324

Shares and share capital

¹ Market capitalization is calculated on the basis of both the listed B shares and the unlisted A shares excluding treasury shares. Class A shares are valued at the closing price of the class B shares at the end of the reporting period.

Treasury shares	1–3/2025
Treasury shares at the beginning of the period	11,867,752
Changes in treasury shares during the period	-303,732
Treasury shares at the end of the period	11,564,020

At the end of March 2025, the Group's parent company KONE Oyj had 11,564,020 class B treasury shares. The treasury shares represent 2.6% of the total number of class B shares. This corresponds to 1.0% of the total voting rights.

Shares traded on Nasdaq Helsinki		1–3/2025	1–3/2024
Shares traded on the Nasdaq Helsinki Ltd., millions		34.3	36.6
Average daily trading volume		553,598	581,310
Volume-weighted average share price	EUR	51.26	44.66
Highest share notation	EUR	55.84	47.58
Lowest share notation	EUR	45.42	41.33
Share notation at the end of the period	EUR	50.84	43.14

In addition to the Nasdaq Helsinki Ltd., KONE's class B share is traded also on various alternative trading platforms.

The number of registered shareholders was 110,750 at the beginning of the review period and 106,659 at its end. The number of private

Flagging notifications

During January–March 2025, BlackRock, Inc. announced eight notices in accordance with the Finnish Securities Market Act Chapter 9, Section 5. The notices were announced on January 30, January 31, February 3, February 25, February 28, March 3, March 11, and March 13. The notices have been released as stock exchange releases and are available on KONE Corporation's internet pages at www.kone.com. According to the latest notification, the total number of KONE Corporation shares owned by BlackRock, Inc. and its funds excluding financial instruments according to SMA 9:6a increased to above five (5) per cent of the share capital of KONE Corporation on March 12, 2025.

households holding shares totaled 101,852 at the end of the period, which corresponds to approximately 12.0% of the listed B shares. At the end of March 2025, a total of 51.9% of the B shares were owned by nominee-registered and non-Finnish investors.

Market outlook 2025 (updated)

	North America	Europe	Asia-Pacific, Middle East and Africa	China
New Building Solutions in units	-	+	++	---
Service in units	+	+	++	+
Modernization in monetary value	+++	++	+++	+++
			– – – Significant decline (>10%), – – Clear decline (5–10%), – Slight decline (<5%), Stable, + Slight growth (<5%), ++ Clear growth (5–10%), +++ Significant growth (>10%)

Activity in the New Building Solutions market is expected to vary regionally. The market is expected to decline slightly in North America as a result of increased uncertainty in the business environment. In Europe, activity is expected to grow slightly. In Asia-Pacific, Middle East and Africa, activity is expected to grow clearly. In China, the market is expected to decline significantly.

Business outlook 2025 (specified)

KONE expects its sales to grow 1-6% at comparable exchange rates in 2025. Adjusted EBIT margin is expected to be in the range of 11.8%-12.4%.

Assuming that foreign exchange rates remain at the April 2025 level, the negative impact of foreign exchange rates on the adjusted EBIT is expected to be approximately EUR 50 million.

Key drivers for sales growth are the positive outlook for Service and Modernization and the strong order book. The declining New Building Solutions market in China is a headwind.

The key profitability drivers are sales growth in Service and Modernization and the ramp up of performance initiatives. The challenging New Building

Modernization markets are expected to grow in all regions supported by an aging equipment base as well as the focus on sustainability and adaptability of buildings. Service markets are expected to grow clearly in Asia-Pacific, Middle East and Africa and grow slightly in other regions.

Solutions market in China, slight overall decline in margin of orders booked in 2024, and a limited impact from tariffs are expected to impact profitability negatively.

KONE previously expected its sales to grow slightly at comparable exchange rates in 2025. The improvement in adjusted EBIT margin was expected to continue in 2025.

Helsinki, April 29, 2025

KONE Corporation's Board of Directors

Consolidated statement of income

MEUR	1–3/2025	%	1–3/2024	%	1–12/2024	%
Sales	2,672.3		2,568.2		11,098.4
Costs and expenses	-2,317.5		-2,234.4		-9,557.3
Depreciation and amortization	-78.1		-71.5		-292.2
Operating income	276.7	10.4	262.4	10.2	1,249.0	11.3
Financing income	14.2		13.3		48.3
Financing expenses	-11.3		-10.0		-43.1
Income before taxes	279.6	10.5	265.7	10.3	1,254.1	11.3
Taxes	-64.3		-59.8		-293.1
Net income	215.3	8.1	205.9	8.0	961.0	8.7
Net income attributable to:
Shareholders of the parent company	212.6		203.0		951.3
Non-controlling interests	2.7		2.9		9.7
Total	215.3		205.9		961.0
Earnings per share for profit attributable to the share holders of the parent company, EUR
Basic earnings per share, EUR	0.41		0.39		1.84
Diluted earnings per share, EUR	0.41		0.39		1.84

Consolidated statement of comprehensive income

MEUR	1–3/2025	1–3/2024	1–12/2024
Net income	215.3	205.9	961.0
Other comprehensive income, net of tax:
Translation differences	-75.1	12.4	78.4
Hedging of foreign subsidiaries	14.3	-7.1	-12.8
Cash flow hedges	5.7	4.8	-3.7
Items that may be subsequently reclassified to statement of income	-55.0	10.1	61.9
Changes in fair value	0.8	-6.2	-1.6
Remeasurements of employee benefits	-1.0	1.8	-8.7
Items that will not be reclassified to statement of income	-0.2	-4.3	-10.3
Total other comprehensive income, net of tax	-55.2	5.8	51.6
Total comprehensive income	160.1	211.7	1,012.6
Total comprehensive income attributable to:
Shareholders of the parent company	157.3	208.8	1,002.9
Non-controlling interests	2.7	2.9	9.7
Total	160.1	211.7	1,012.6

Condensed consolidated statement of financial position

Assets,
MEUR		Mar 31, 2025	Mar 31, 2024	Dec 31, 2024
Non-current assets
Goodwill		1,533.7	1,500.5	1,558.4
Other intangible assets		332.4	306.2	333.3
Tangible assets		883.5	800.4	898.5
Employee benefit assets	I	15.7	10.3	15.0
Deferred tax assets	II	361.8	323.0	365.7
Shares and other non-current assets	I/II	157.8	114.1	150.3
Total non-current assets		3,284.9	3,054.4	3,321.2
Current assets
Inventories	II	857.5	819.1	856.7
Accounts receivable	II	2,397.2	2,459.3	2,494.8
Deferred assets	II	739.9	742.5	693.6
Income tax receivables	II	122.6	98.9	119.0
Deposits and other current assets	I	884.3	658.3	1,223.0
Cash and cash equivalents	I	433.5	469.8	576.0
Total current assets		5,435.1	5,248.1	5,963.1
Total assets		8,720.1	8,302.5	9,284.3

Equity and liabilities,
MEUR		Mar 31, 2025	Mar 31, 2024	Dec 31, 2024
Equity		2,123.8	2,094.6	2,893.1
Non-current liabilities
Loans and other interest-bearing liabilities	I	695.0	454.7	700.5
Employee benefit liabilities	I	144.5	130.2	141.4
Deferred tax liabilities	II	92.0	89.3	87.3
Total non-current liabilities		931.5	674.3	929.3
Provisions	II	169.7	192.8	185.9
Current liabilities
Loans and other interest-bearing liabilities	I	162.8	119.4	145.1
Advance payments received and deferred revenue	II	2,029.8	1,916.4	2,016.9
Accounts payable	II	869.5	836.2	982.9
Accruals	II	2,172.3	2,212.7	1,986.6
Income tax payables	II	143.9	135.9	144.4
Dividend withholding tax payable		116.8	120.3	-
Total current liabilities		5,495.1	5,340.8	5,275.9
Total equity and liabilities		8,720.1	8,302.5	9,284.3

Items designated " I " comprise interest-bearing net debt.

Items designated " II " comprise net working capital.

Consolidated statement of changes in equity

		Attributable to the equity holders of the parent
MEUR	Share capital	Share premium account	equity reserve unrestricted Paid-up	Fair value and other reserves	Translation differences	Remeasurements of employee benefits	Retained earnings	Non-controlling interests	equity Total
Jan 1, 2025	66.2	100.3	245.7	-25.3	135.3	-105.2	2,449.7	26.3	2,893.1
Net income for the period	-	-	-	-	-	-	212.6	2.7	215.3
Other comprehensive income:
Translation differences	-	-	-	-	-75.1	-	-	-	-75.1
Hedging of foreign subsidiaries	-	-	-	-	14.3	-	-	-	14.3
Cash flow hedges	-	-	-	5.7	-	-	-	-	5.7
Changes in fair value	-	-	-	0.8	-	-	-	-	0.8
Remeasurements of employee benefits	-	-	-	-	-	-1.0	-	-	-1.0
Transactions with shareholders and non controlling interests:
Profit distribution	-	-	-	-	-	-	-931.3	-	-931.3
Change in non-controlling interests	-	-	-	-	-	-	-1.8	-1.2	-3.0
Share-based compensation	-	-	-	-	-	-	4.9	-	4.9
Mar 31, 2025	66.2	100.3	245.7	-18.8	74.6	-106.2	1,734.1	27.9	2,123.8

Attributable to the equity holders of the parent

MEUR	Share capital	Share premium account	equity reserve unrestricted Paid-up	Fair value and other reserves	Translation differences	Remeasurements of employee benefits	Retained earnings	Non-controlling interests	equity Total
Jan 1, 2024	66.2	100.3	245.7	-20.0	69.7	-96.5	2,386.7	33.9	2,786.0
Net income for the period	-	-	-	-	-	-	203.0	2.9	205.9
Other comprehensive income:
Translation differences	-	-	-	-	12.4	-	-	-	12.4
Hedging of foreign subsidiaries	-	-	-	-	-7.1	-	-	-	-7.1
Cash flow hedges	-	-	-	4.8	-	-	-	-	4.8
Changes in fair value	-	-	-	-6.2	-	-	-	-	-6.2
Remeasurements of employee benefits	-	-	-	-	-	1.8	-	-	1.8
Transactions with shareholders and non controlling interests:
Profit distribution	-	-	-	-	-	-	-905.5	-	-905.5
Change in non-controlling interests	-	-	-	-	-	-	-	0.2	0.2
Share-based compensation	-	-	-	-	-	-	2.1	-	2.1
Mar 31, 2024	66.2	100.3	245.7	-21.4	75.0	-94.6	1,686.3	37.1	2,094.6

	Attributable to the equity holders of the parent
MEUR	Share capital	Share premium account	equity reserve unrestricted Paid-up	Fair value and other reserves	Translation differences	Remeasurements of employee benefits	Retained earnings	Non-controlling interests	equity Total
Jan 1, 2024	66.2	100.3	245.7	-20.0	69.7	-96.5	2,386.6	33.9	2,786.0
Net income for the period Other comprehensive income:	-	-	-	-	-	-	951.3	9.7	961.0
Translation differences	-	-	-	-	78.4	-	-	-	78.4
Hedging of foreign subsidiaries	-	-	-	-	-12.8	-	-	-	-12.8
Cash flow hedges	-	-	-	-3.7	-	-	-	-	-3.7
Changes in fair value	-	-	-	-1.6	-	-	-	-	-1.6
Remeasurements of employee benefits	-	-	-	-	-	-8.7	-	-	-8.7
Transactions with shareholders and non controlling interests:
Profit distribution	-	-	-	-	-	-	-905.5	-	-905.5
Change in non-controlling interests	-	-	-	-	-	-	-8.4	-17.3	-25.7
Share-based compensation	-	-	-	-	-	-	25.6	-	25.6
Dec 31, 2024	66.2	100.3	245.7	-25.3	135.3	-105.2	2,449.7	26.3	2,893.1

Condensed consolidated statement of cash flows

MEUR	1–3/2025	1–3/2024	1–12/2024
Operating income	276.7	262.4	1,249.0
Change in net working capital	131.9	64.4	48.1
Depreciation and amortization	78.1	71.5	292.2
Cash flow from operations before financing items and taxes	486.7	398.2	1,589.3
Cash flow from financing items and taxes	-79.5	-69.2	-340.0
Cash flow from operating activities	407.2	329.0	1,249.3
Cash flow from investing activities	-47.1	-72.0	-287.4
Cash flow after investing activities	360.1	256.9	962.0
Profit distribution	-814.6	-785.2	-905.5
Change in deposits and loans receivable, net	341.6	616.7	72.4
Change in loans payable and other interest-bearing debt	-19.6	-40.7	39.6
Changes in non-controlling interests	-0.1	-0.2	-19.5
Cash flow from financing activities	-492.8	-209.3	-813.0
Change in cash and cash equivalents	-132.6	47.6	149.0
Cash and cash equivalents at beginning of period	576.0	424.5	424.5
Translation difference	-9.8	-2.3	2.5
Cash and cash equivalents at end of period	433.5	469.8	576.0

In January–March 2025, payments of lease liabilities included in financing activities were EUR 38.3 (1–3/2024: 34.2) million and interest expense paid included in cash flow from financing items and taxes were EUR 6.8 (5.5) million.

Notes to the interim report

Accounting principles

KONE Corporation's interim report for January–March 2025 has been prepared in line with IAS 34, 'Interim Financial Reporting' and should be read in conjunction with KONE's financial statements for 2024, published on February 12, 2025. KONE has applied the same

accounting principles in the preparation of this interim report as in its financial statements for 2024. The information presented in this interim report has not been audited.

Key figures

		1–3/2025	1–3/2024	1–12/2024
Basic earnings per share	EUR	0.41	0.39	1.84
Diluted earnings per share	EUR	0.41	0.39	1.84
Equity per share	EUR	4.05	3.98	5.54
Interest-bearing net debt	MEUR	-335.7	-437.9	-831.2
Equity ratio	%	31.7	32.8	39.8
Gearing	%	-15.8	-20.9	-28.7
Return on equity	%	34.3	33.8	33.8
Return on capital employed	%	25.9	27.5	27.2
Total assets	MEUR	8,720.1	8,302.5	9,284.3
Assets employed	MEUR	1,788.1	1,656.7	2,061.9
Net working capital (including financing and tax items)	MEUR	-954.0	-921.8	-827.2

The calculation formulas of key figures are presented in KONE's Financial Statements for 2024.

Alternative performance measure

KONE reports an alternative performance measure, adjusted EBIT, to enhance the comparability of business performance between reporting periods. Adjusted EBIT is calculated by excluding from EBIT items affecting comparability such as significant restructuring costs and income and expenses

incurred outside the ordinary course of business of KONE.

In January–March 2025, items affecting comparability amounted to EUR 2.8 million consisting of costs related to the separation of KONE Door Business under its own legal structure.

Reconciliation of alternative performance measure		1–3/2025	1–3/2024	1–12/2024
Operating income	MEUR	276.7	262.4	1,249.0
Operating income margin	%	10.4	10.2	11.3
Items affecting comparability	MEUR	2.8	-	54.0
Adjusted EBIT	MEUR	279.6	262.4	1,303.0
Adjusted EBIT margin	%	10.5	10.2	11.7

Quarterly figures

KONE has adopted IFRS 16 standard effective January 1, 2019, using the modified retrospective approach and comparative figures have not been restated.

	Q1/2025	Q4/2024	Q3/2024	Q2/2024	Q1/2024
MEUR	2,378.4	2,119.0	2,076.6	2,327.6	2,235.7
MEUR	9,253.2	9,058.6	9,001.2	9,326.6	9,133.0
MEUR	2,672.3	2,975.6	2,753.6	2,801.0	2,568.2
MEUR	276.7	332.5	319.4	334.7	262.4
%	10.4	11.2	11.6	11.9	10.2
MEUR	279.6	386.5	319.4	334.7	262.4
%	10.5	13.0	11.6	11.9	10.2
MEUR	2.8	54.0	-	-	-

		Q4/2023	Q3/2023	Q2/2023	Q1/2023	Q4/2022	Q3/2022	Q2/2022	Q1/2022
Orders received	MEUR	2,049.2	1,989.9	2,275.5	2,263.1	1,944.2	2,155.5	2,609.0	2,422.6
Order book	MEUR	8,715.7	8,839.5	9,041.9	9,176.2	9,026.1	9,890.5	10,000.4	9,255.4
Sales	MEUR	2,809.9	2,749.9	2,835.9	2,556.6	2,911.5	2,998.2	2,555.1	2,441.9
Operating income	MEUR	362.1	316.5	283.2	238.3	367.1	303.9	189.0	171.1
Operating income margin	%	12.9	11.5	10.0	9.3	12.6	10.1	7.4	7.0
Adjusted EBIT ¹	MEUR	358.6	315.9	332.0	241.9	365.0	305.8	209.3	196.5
Adjusted EBIT margin ¹	%	12.8	11.5	11.7	9.5	12.5	10.2	8.2	8.0
Items affecting comparability	MEUR	-3.6	-0.5	48.8	3.6	-2.1	1.9	20.3	25.4

		Q4/2021	Q3/2021	Q2/2021	Q1/2021	Q4/2020	Q3/2020	Q2/2020	Q1/2020
Orders received	MEUR	2,155.1	2,211.1	2,410.7	2,075.9	2,068.7	1,931.7	2,075.4	2,109.3
Order book	MEUR	8,564.0	8,436.9	8,272.5	8,180.4	7,728.8	7,914.4	8,307.3	8,386.4
Sales	MEUR	2,766.8	2,610.0	2,810.8	2,326.4	2,621.2	2,587.0	2,532.1	2,198.3
Operating income	MEUR	351.9	326.5	367.1	249.8	367.1	333.1	315.5	197.2
Operating income margin	%	12.7	12.5	13.1	10.7	14.0	12.9	12.5	9.0
Adjusted EBIT ¹	MEUR	359.4	326.5	374.0	249.8	380.6	339.8	324.6	205.6
Adjusted EBIT margin ¹	%	13.0	12.5	13.3	10.7	14.5	13.1	12.8	9.4
Items affecting comparability	MEUR	7.5	-	7.0	-	13.5	6.7	9.1	8.4

		Q4/2019	Q3/2019	Q2/2019	Q1/2019	Q4/2018	Q3/2018	Q2/2018	Q1/2018
Orders received	MEUR	1,988.3	2,007.3	2,310.1	2,094.1	1,937.9	1,831.9	2,118.6	1,908.7
Order book	MEUR	8,051.5	8,399.8	8,407.1	8,454.7	7,950.7	7,791.6	7,915.3	7,786.6
Sales	MEUR	2,684.6	2,557.6	2,540.8	2,198.8	2,443.4	2,288.7	2,330.6	2,008.0
Operating income	MEUR	356.4	314.2	306.5	215.4	292.5	258.0	280.5	211.5
Operating income margin	%	13.3	12.3	12.1	9.8	12.0	11.3	12.0	10.5
Adjusted EBIT ¹	MEUR	367.5	321.9	319.6	228.4	319.6	273.7	300.4	218.3
Adjusted EBIT margin ¹	%	13.7	12.6	12.6	10.4	13.1	12.0	12.9	10.9
Items affecting comparability	MEUR	11.1	7.7	13.1	13.1	27.1	15.7	19.9	6.9

¹ Operating income excluding items affecting comparability

Other notes

Net working capital,
MEUR	Mar 31, 2025	Mar 31, 2024	Dec 31, 2024
Inventories	857.5	819.1	856.7
Advance payments received and deferred revenue	-2,029.8	-1,916.4	-2,016.9
Accounts receivable	2,397.2	2,459.3	2,494.8
Deferred assets and income tax receivables	862.5	841.4	812.5
Accruals and income tax payables	-2,316.2	-2,348.6	-2,131.0
Provisions	-169.7	-192.8	-185.9
Accounts payable	-869.5	-836.2	-982.9
Other non-current assets	44.2	18.6	47.0
Net deferred tax assets/liabilities	269.8	233.6	278.4
Total	-954.0	-921.8	-827.2

Change in interest-bearing net debt, MEUR	1–3/2025	1–3/2024	1–12/2024
Interest-bearing net debt at beginning of period	-831.2	-1,013.4	-1,013.4
Interest-bearing net debt at end of period	-335.7	-437.9	-831.2
Change in interest-bearing net debt	495.5	575.5	182.2

Depreciation and amortization,
MEUR	1–3/2025	1–3/2024	1–12/2024
Depreciation and amortization of fixed assets	65.8	60.0	245.5
Amortization of acquisition-related intangible assets	12.2	11.5	46.7
Total	78.1	71.5	292.2

		1–3/2025		1–3/2024
Key exchange rates		Average rate	End rate	Average rate	End rate
Chinese yuan	EUR/CNY	7.6355	7.8442	7.8083	7.8144
US dollar	EUR/USD	1.0502	1.0815	1.0881	1.0811
British pound	EUR/GBP	0.8317	0.8354	0.8588	0.8551
Indian rupee	EUR/INR	90.5736	92.3955	90.4470	90.1365
Australian dollar	EUR/AUD	1.6883	1.7318	1.6506	1.6607

Derivatives

	Mar 31, 2025			Mar 31, 2024	Dec 31, 2024
Fair values of derivatives,	Derivative	Derivative	Fair value,	Fair value,	Fair value,
MEUR	assets	liabilities	net	net	net
Foreign exchange forward contracts and swaps	24.2	-43.6	-19.4	-11.7	-0.1

Nominal values of derivatives,
MEUR	Mar 31, 2025	Mar 31, 2024	Dec 31, 2024
Foreign exchange forward contracts and swaps	3,709.7	3,378.0	3,395.2

The fair values of foreign exchange forward contracts and swaps are measured based on price information derived from active markets and commonly used valuation methods (fair value hierarchy level 2).

The fair values are represented on the balance sheet on a gross basis and can be set off on conditional terms. No collaterals or pledges have been given as a security against any liabilities or received

Investments

Shares and other non-current assets include a 19.9% holding in Toshiba Elevator and Building Systems Corporation (TELC). TELC is an investment in equity instruments that does not have a quoted price in an active market. Investments also include other noncurrent financial assets which involve smaller holdings in other companies without public quotation.

Commitments

Commitments include guarantees issued by banks and financial institutions for obligations arising in the ordinary course of business of KONE companies up to

against any assets arising from derivatives or other financial instruments. Financial contracts are executed only with counterparties that have high credit ratings. The credit risk of these counterparties as well as the present creditworthiness of KONE are considered when calculating the fair values of outstanding financial assets and liabilities.

The shares are classified as investments measured at fair value through other comprehensive income and the fair value is measured using income or market approach valuation techniques under fair value hierarchy level 3.

a maximum of EUR 1,880.6 (December 31, 2024: 1,891.8) million as of March 31, 2025.

KONE Corporation

Corporate Offices

Keilasatama 3 P.O. Box 7 FI-02150 Espoo Finland Tel. +358 (0)204 751 www.kone.com

For further information please contact:

Natalia Valtasaari Vice President, Investor Relations Tel. +358 (0)204 75 4705

This report contains forward-looking statements that are based on the current expectations, known factors, decisions and plans of the management of KONE. Although the management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions as well as fluctuations in exchange rates.