KONE Oyj - Company Announcement

KONE's Board of Directors decides on new share-based incentive programs

KONE Corporation, stock exchange release, December 18, 2015 at 1.30 p.m. EET

KONE's Board of Directors decides on new share-based incentive programs

KONE Corporation's Board of Directors decided at its meeting on 18 December
2015 that KONE will have two (2) separate share-based incentive plans going
forward. The target groups and targets within the plans as well as possible
rewards are decided upon annually. The share-based incentive plans are used in
order to encourage KONE's key personnel to engage in long-term efforts to grow
shareholder value and to increase their commitment to the company by offering
them an internationally competitive incentive program. The company's Board
Members are not included in the plans.

Of the two separate share-based incentive plans, one is for the senior
management of KONE (the President and CEO, members of the Executive Board and
other top management), consisting of approximately 65 individuals. The second
plan is for other key personnel of KONE, totaling approximately 425 individuals.
The incentive plans will be part of their remuneration starting from the
financial year 2016. According to the decision, the potential reward is based on
the annual growth in sales and earnings before interest and taxes (EBIT) in both
plans. However, KONE's Board of Directors has the possibility to change the
basis of the target setting annually. The potential reward is to be paid as a
combination of KONE class B shares and a cash payment equivalent to the taxes
and similar charges that are incurred from the receipt of the shares. Both plans
include a condition preventing participants from transferring the shares for a
period of two years following the ending of each earning period. A long-term
target for share ownership has been set as part of the plan for the senior
management of KONE.

Following the decision, KONE does not grant new stock option plans. The current
existing stock option plans 2013, 2014 and 2015 shall be carried out based on
the original terms of these programs.

For further information, please contact:

Jukka Ala-Mello, Secretary to the Board, tel. +358 (0)204 75 4226

Sender:

KONE Corporation

Jukka Ala-Mello
Secretary to the Board

Eriikka Söderström
CFO

About KONE

KONE is one of the global leaders in the elevator and escalator industry. KONE's
objective is to offer the best People Flow® experience by developing and
delivering solutions that enable people to move smoothly, safely, comfortably
and without waiting in buildings in an increasingly urbanizing environment. KONE
provides industry-leading elevators, escalators, automatic building doors and
integrated solutions to enhance the People Flow in and between buildings. KONE's
services cover the entire lifetime of a building, from the design phase to
maintenance, repairs and modernization solutions. In 2014, KONE had annual net
sales of EUR 7.3 billion, and at the end of the year over 47,000 employees. KONE
class B shares are listed on the NASDAQ Helsinki Ltd. in Finland.

www.kone.com


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