KONE Corporation, stock exchange release, January 26, 2017 at 12.35 p.m. EET
KONE enters a new strategic phase for 2017-2020 called "Winning with Customers". The objective is to drive differentiation further by putting the needs of customers and users at the center of all development. The increasingly urbanizing world continues to provide attractive growth opportunities in the elevator and escalator industry. New technologies and connectivity provide an opportunity to add value for customers in new ways that meet better their specific needs, while at the same time technological development has changed their expectations on speed, transparency and predictability. KONE will increase the speed of bringing new services and solutions to the market by closer collaboration with customers and partners.
"I strongly believe that in today's connected world, the most sustainable source of growth will come from customers advocating on our behalf. We intend to drive this with the "Winning with Customers" approach and by co-creating more with our customers and partners. Product features alone will not help customers build stronger businesses, and the focus needs to be on the outcomes. We have very encouraging results from recently launched services that we have co-created with our customers and partners. This motivates us to accelerate our innovation activities further. The new strategic phase builds on KONE's mission to improve the flow of urban life as well as our experience and strong culture, which are based on our deeply-held values and a commitment to safety and quality. I am very excited about the opportunities this new phase in KONE's development will bring," says President and CEO Henrik Ehrnrooth.
Four Ways to Win
For the new strategic phase, KONE has defined four "Ways to Win" that support the company in reaching its goals:
- Collaborative innovation and new competencies
- Customer-centric solutions and services
- Fast and smart execution and;
- True service mindset
The business development initiatives as well as the solution and service development are guided by the Ways to Win.Updates on the new development initiatives and the progress made will be given regularly.
The strategic and financial targets remain unchanged
KONE's measures progress against five strategic targets:
- Most loyal customers
- Great place to work
- Faster than market growth
- Best financial performance
- Leader in sustainability
The long-term financial targets continue to be:
- Growth: faster than the market
- Profitability: EBIT margin of 16%
- Cash flow: improved working capital rotation
2014-2016 Development Programs successfully completed
KONE successfully completed its fourth set of three-year Development Programs at the end of 2016. During the period KONE has continued to grow profitably and faster than its markets. Customer loyalty and employee engagement improved clearly, and good progress was made in improving the sustainability of the offering and the operations.
A picture summarizing KONE's new strategy is attached to this release.
For further information, please contact:
Sanna Kaje, Vice President, Investor Relations, tel. +358 204 75 4705
President and CEO
At KONE, our mission is to improve the flow of urban life. As a global leader in the elevator and escalator industry, KONE provides elevators, escalators and automatic building doors, as well as solutions for maintenance and modernization to add value to buildings throughout their life cycle. Through more effective People Flow®, we make people's journeys safe, convenient and reliable, in taller, smarter buildings. In 2016, KONE had annual net sales of EUR 8.8 billion, and at the end of the year close over 52,000 employees. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.