KONE Oyj - Inside information

KONE updates its 2017 business outlook to take into account restructuring costs from the Accelerate program, current foreign exchange rates and the latest business performance forecast

KONE Corporation, stock exchange release, September 26, 2017 at 09.35 a.m. EEST

KONE updates its 2017 business outlook to take into account restructuring costs
from the Accelerate program, current foreign exchange rates and the latest
business performance forecast

KONE announced today a program to accelerate the execution of the Winning with
Customers strategy and to support profitable growth. As part of the Accelerate
Winning with Customers program, KONE plans to adjust its organization and
operations, and expects annual cost savings of around EUR 100 million from the
end of 2020 onwards. The restructuring costs related to the program are expected
to amount to approximately EUR 100 million, the majority of which is expected to
accrue over the next two years.

Restructuring costs excluded from Adjusted EBIT

KONE updates its business outlook for 2017 to reflect the expected impact of the
restructuring costs. In connection to this, KONE introduces a new alternative
performance measure, adjusted EBIT, to enhance comparability of the business
performance between reporting periods during the Accelerate program. The
adjusted EBIT is calculated by excluding significant items impacting
comparability such as significant restructuring costs.

Foreign exchange rate assumptions updated

KONE also updates the business outlook for 2017 to reflect current foreign
exchange rates. The euro has strengthened significantly against for example the
Chinese renminbi and the US dollar compared to January-June average translation
exchange rates which was the basis of the previous EBIT guidance. Assuming that
translation exchange rates would remain at the end of August level for the
remainder of the year, it would have an around EUR 30 million negative impact on
the 2017 EBIT compared to the previous assumption.

Updated forecast on business performance

KONE's forecast for the full-year business performance has improved slightly
during the third quarter. The visibility for the full-year results is also
better with majority of the Q3 already behind. Therefore KONE does not see a
need to take down the lower end of the adjusted EBIT guidance range with the
negative impact from foreign exchange rates.

UPDATED BUSINESS OUTLOOK FOR 2017:

KONE continues to expect net sales to grow by 1-3% at comparable exchange rates
as compared to 2016.

The adjusted EBIT is expected to be in the range of EUR 1,200-1,250 million,
assuming that translation exchange rates would remain approximately at the end
of August level for the remainder of the year. Restructuring costs related to
the Accelerate program are excluded in the calculation of the adjusted EBIT.

Previously KONE expected the operating income (EBIT) to be in the range of EUR
1,200-1,280 million, assuming that translation exchange rates would remain at
approximately the average level of January-June 2017.

For further information, please contact:
Sanna Kaje, Vice President, Investor Relations, tel. +358 (0)204 75 4705

Sender:
KONE Corporation

Henrik Ehrnrooth
President and CEO

Ilkka Hara
CFO

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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