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KONE 2015 | SUSTAINABILITY REPORT
CREATINg ADDED VALUE
38
Read more
about our economic performance
at
www.kone.com/investorsCustomers & Suppliers
We seek to build long-term relationships with
our suppliers and customers. Our supplier
relationships provide business opportunities
and employment for thousands of suppliers
globally. Read more about our supplier
management on p. 42.
Local communities
KONE is committed to operating as a
responsible corporate citizen in all the countries
in which we are present.
We are committed to paying all taxes that
are legally due, and to meeting all disclosure
requirements in the countries where we operate.
Our objective is to ensure predictability in all tax
matters. In addition, every transaction must have
a solid business rationale without compromising
tax compliance principles. The location of
KONE’s group entities is driven by business
reasons, such as the location of customers,
suppliers, raw materials and know-how. We insist
on transparency in all our activities, including
our relationships with tax authorities. Since
2015, KONE is participating in an enhanced
collaboration with the Finnish Tax Authorities
promoting tax transparency.
In 2015 income taxes paid by KONE globally
amounted to EUR 311.4 (242.4) million, with
the ten largest countries by sales accounting for
75% of the taxes paid. Income taxes paid by
the Finnish KONE companies totaled EUR 37.2
(31.0) million in 2015.
Employees
Our biggest direct economic impacts come
from the employment opportunities we
provide. KONE is a global company with global
processes and guidelines, but our operations
are at the same time very local. In our
subsidiaries, management and field personnel
are predominantly local.
KONE had close to 50,000 employees in over
60 countries at the end of 2015. KONE’s largest
countries by employees in 2015 were China,
the United States and India. Read more about
our people on p. 32 –35.
Ensuring added value in the future
KONE has three long-term financial targets:
growing faster than the market, achieving an
EBIT margin of 16%, and improving working
capital rotation. We have achieved two of these
three targets: KONE has grown faster than the
market in recent years, and we have improved
our working capital rotation at the same time.
For the 16% EBIT margin, no target date has
been set. With the lifecycle business model, the
short-term focus is on growing absolute EBIT
while achieving improved relative profitability
over time with growth and productivity gains.
KONE’s philosophy is to continuously develop
the business with a long-term outlook. We
are focused on maintaining our challenger
attitude and are constantly developing our
competitiveness in order to strengthen our
position as one of the global leaders in the
elevator and escalator industry. With the help
of our development programs (read more
on page 8), we work towards our vision of
providing the best People Flow® experience.
*Note: Includes the basic dividend. Adjusted for share splits in 1999 (1:3), 2002 (1:3), 2005 (1:2), 2008 (1:2) and 2013 (1:2).
1 EUR= 5.9 FIM; not adjusted to constant exchange rate. Additional extraordinary dividends: for 2009, a double dividend was
paid; for 2011, an extraordinary dividend of EUR 0.75 was paid and for 2012, an extraordinary dividend of EUR 0.65 was paid.
Split-adjusted dividend per class B share, EUR, 1980–2015*
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
CAGR 1980–2015
+15%
-80 -81 -82 -83 -84 -85 -86 -87 -88 -89 -90 -91 -92 -93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15
10 biggest countries by sales, 2015
~35%
United States ~15%
France
Germany
United Kingdom
Australia
Italy
Finland
Sweden
India
China
We are focused on
maintaining our
challenger attitude and
are constantly developing
our competitiveness
in order to strengthen
our position as one of
the global leaders in the
elevator and escalator
industry.
KONE’s largest individual
shareholder is Antti Herlin, Chairman
of KONE’s Board of Directors, who
controls over 20% of the share
capital and over 60% of votes.
For KONE’s domestically registered
major shareholders, see monthly
updated list on our website.