KONE Oyj - Inside information

KONE launches a program to accelerate the execution of its Winning with Customers strategy to support profitable growth

KONE Corporation, stock exchange release, September 26, 2017 at 09.30 a.m. EEST

KONE launches a program to accelerate the execution of its Winning with
Customers strategy to support profitable growth

At the beginning of 2017, KONE announced its new strategy, Winning with
Customers, in order to differentiate and to bring new levels of customer
centricity and value adding services and solutions to its customers. KONE now
launches an Accelerate Winning with Customers program to speed up the execution
of this strategy and to support profitable growth.

The objective of the program is to create a faster-moving, customer-centric
organization that leverages scale efficiently in a rapidly changing environment.
The planned actions include both organizational adjustments, as well as the
development and further harmonization of roles, processes and tools.

KONE aims to maintain strong local accountability and to strengthen the
customer-facing functions in the country organizations. The area organizations
and global functions are planned to have a bigger role in  supporting and
enabling the countries to focus on delivering value to the customers. This
requires sharing expertise and resources more effectively. KONE is for example
looking into utilizing more centers of expertise and further strengthening its
shared services.

The program is estimated to generate annual cost savings of around EUR 100
million. The cost savings are expected to be achieved gradually with full impact
from the end of 2020 onwards. According to initial estimates, the measures could
result in the reduction of approximately 1,000 jobs globally over the three-
year-period ending in 2020. The details on the impacts of the program will be
communicated, and when necessary, negotiated locally as the plans progress.
Restructuring costs related to the program are expected to amount to a total of
approximately EUR 100 million, the majority of which are expected to accrue over
the next two years.

"Ability to drive change and to renew ourselves has always been a key success
factor for KONE. In a world where the pace of change is accelerating, this is
more crucial than ever," says Henrik Ehrnrooth, President and CEO. "We have good
momentum with the new strategy, and I'm confident that with the planned actions
we will be best placed to win with our customers".



For further information, please contact:

Investors and Analysts: Sanna Kaje, Vice President, Investor Relations, tel.
+358 (0)204 75 4705, sanna.kaje@kone.com

Media: Liisa Kivelä, Director, Communications, tel. +358 400 308 484,
liisa.kivela@kone.com



Sender:

KONE Corporation

Henrik Ehrnrooth
President and CEO

Susanne Skippari
EVP, Human Resources



About KONE

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 over 52,000 employees. KONE class B shares are listed
on the Nasdaq Helsinki Ltd. in Finland.

www.kone.com


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