Contents
2021 highlights
Report of the Board of Directors
Konecranes Group 2017–2021
Calculation of key gures
Financial Statements
Consolidated statement of income – IFRS
Consolidated balance sheet – IFRS
Consolidated statement of changes in equity – IFRS
Consolidated cash ow statement – IFRS
Notes to the consolidated nancial statements
Company list
Parent company statement of income – FAS
Parent company balance sheet – FAS
Parent company cash ow – FAS
Notes to the parent company's Financial Statement
Board of Directors' proposal to the Annual General Meeting
Auditor's report
Independent Auditor's Report on Konecranes Plc's
ESEF Consolidated Financial Statements
Shares and shareholders
33
35
57
58
60
61
62
63
64
112
114
115
116
117
119
120
124
125
FINANCIAL REVIEW 2021
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
32
Financial Review 2021
2021 highlights
Sales & order intake, MEUR
Adjusted EBITA by Business Area, 2021
Adjusted EBITA, MEUR & Adjusted EBITA margin, %
Personnel by Business Area, 2021
Earnings & dividend per share, EUR
65%
Service
222.4 MEUR
23%
Port Solutions
79.9 MEUR
11%
Industrial Equpment
38.0 MEUR
48%
Service
7,890
19%
Port Solutions
3,083
33%
Industrial Equpment
5,516
2017 2018 2019 2020 2021
Sales Order intake
0
1,000
2,000
3,000
4,000
3,185.7
3,175.5
3,178.9
2,727.3
3,137.2
3,007.4
3,156.1
3,090.3
3,326.9
3,167.3
36%
Service
1,205.3 MEUR
32%
Port Solutions
1,072.9 MEUR
32%
Industrial Equpment
1,088.7 MEUR
Sales by Business Area, 2020
0
50
100
150
200
250
300
350
Adjusted EBITA, MEUR/ Adjusted EBITA margin, %
2017 2018 2019 2020 2021
Comparable adj. EBITA
Comparable adj. EBITA margin
2
4
6
8
10
12
14
16
312.2
260.8
216.6
257.1
275.1
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Earnings & dividend per share, EUR
2017 2018 2019 2020 2021
Earnings per share, basic Dividend per share
2.89
1.20
1.29
1.20
1.03
1.20
1.86
0.88
*
1.54
0.88
*The Board's proposal to the AGM
Sales by Business Area, 2021
Percentages have been rounded and may not total to 100%.
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
Return on equity, %
Order book, MEUR
ROCE, % & Adjusted ROCE, %
Year-end net working capital, MEUR
Year-end market capitalization*, MEUR
Year-end net debt, MEUR & Gearing, %
0
100
200
300
400
500
2017 2018 2019 2020 2021
324.6
410.4
446.0
424.5
337.2
0
200
400
600
800
1,000
2017 2018 2019 2020 2021
Net debt
525.3
545.3
655.3
577.1
541.6
100
80
60
40
20
Gearing
0
5
10
15
20
25
2017 2018 2019 2020 2021
Return on capital employed, %
Adjusted return on capital employed, %
23.7
15.4
7.9
12.5
6.3
8.3
12.7
11.1
9.3
13.4
0
500
1,000
1,500
2,000
2,500
2017 2018 2019 2020 2021
1,535.8
1,715.4
1,824.3
2,036.8
1,715.5
0
5
10
15
20
25
30
2017 2018 2019 2020 2021
26.1
7.7
6.5
9.8
11.3
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2017 2018 2019 2020 2021
3,006.9
2,080.0
2,160.2
2,277.5
2,782.4
* Excluding treasury shares
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
Report of the Board of Directors
Figures in brackets, unless otherwise stated, refer to
the same period a year earlier.
Market review
The world's manufacturing sector, according to the
aggregated J.P. Morgan Global Manufacturing Purchasing
Managers' Index (PMI), ended the year 2021 clearly
in expansion territory above the 50.0 mark at 54.2.
December's PMI was the 18th successive month indicating
improving operating conditions and the PMI was slightly
higher compared to the level in the beginning of the year.
In the eurozone, manufacturing sector operating conditions
remained in improvement in the fourth quarter despite the
PMI continued to be impacted by supply-side constraints.
In December, the PMI was 58.0 which was its 10-month
low. Within the region, all country-specic PMIs ended the
year well above the 50-borderline. The UK manufacturing
PMI ended the year at 57.9 and alike the eurozone, was
higher than in the beginning of the year. The manufacturing
industry capacity utilization rate in the European Union
decreased in the fourth quarter after it had recently passed
the pre-COVID level in the second quarter. Despite the drop,
the capacity utilization rate remained slightly above the pre-
COVID level in the end of 2021.
In the US, the manufacturing sector's PMI reading was
57.7 in December although material shortages and supplier
delays continued. December's PMI was below the readings
seen in the beginning of 2021. The US manufacturing
capacity utilization rate reached the pre-pandemic level
at the end of the second quarter and continued to trend
further upwards in the end of the year. Despite the increase,
the capacity utilization rate was not yet at the recent peaks
of mid-2018.
As for emerging markets, China's manufacturing sector
operating conditions ended the year in improvement with
a PMI reading of 50.9. In Brazil, the Manufacturing PMI was
below the 50 mark in deterioration at 49.8 in December.
In India, the Manufacturing PMI was rmly in expansion
with a reading of 55.5 in December. In Russia,
manufacturing sector operating conditions were in
expansion and December's PMI was 51.6.
Global container throughput, according to the RWI/ISL
Container Throughput Index, faced some uctuation but
remained relatively steady at a high level during 2021.
At the end of December, global container throughput was
approximately 2 percent higher than the year before.
Regarding raw material prices, at the end of the fourth
quarter steel prices were above and copper prices were
clearly above the previous year's levels. The average
EUR/USD exchange rate was approximately 4 percent
higher compared to the year-ago period.
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
Orders received
In full year 2021, orders received totaled EUR 3,175.5 million
(2,727.3), representing an increase of 16.4 percent. On
a comparable currency basis, order intake increased
17.0 percent. Orders received increased in the Americas,
EMEA and APAC.
In Service, order intake increased 16.2 percent on
a reported basis and 17.2 percent on a comparable currency
basis. In Industrial Equipment, orders received increased
19.5 percent on a reported basis and 20.3 percent on
a comparable currency basis. External orders received in
Industrial Equipment increased 21.7 percent on a reported
basis and 22.6 percent on a comparable currency basis.
In Port Solutions, order intake increased 11.9 percent on
a reported basis and 11.7 percent on a comparable
currency basis.
Order book
At the end of December, the value of the order book
totaled EUR 2,036.8 million (1,715.5), which was
18.7 percent higher compared to previous year. On
a comparable currency basis, the order book increased
15.7 percent. The order book increased 60.9 percent
in Service, 18.5 percent in Industrial Equipment and
8.9 percent in Port Solutions.
Sales
In full year 2021, Group sales totaled EUR 3,185.7 million
(3,178.9), representing an increase of 0.2 percent. On
a comparable currency basis, sales increased 0.7 percent.
Sales increased 1.3 percent in Service and 0.6 percent in Port
Solutions but decreased 2.8 percent in Industrial Equipment.
Industrial Equipment's external sales decreased 1.4 percent.
At the end of December, the regional breakdown of sales,
calculated on a rolling 12-month basis, was as follows: EMEA
52 (54), Americas 33 (31) and APAC 16 (16) percent.
Financial result
In full year 2021, the Group adjusted EBITA increased to
EUR 312.2 million (260.8). The adjusted EBITA margin
increased to 9.8 percent (8.2). The adjusted EBITA margin
increased in Service to 18.5 percent (17.2), in Industrial
Equipment to 3.5 percent (2.3) and in Port Solutions to
7.4 percent (5.6). The increase in the Group adjusted
EBITA margin was mainly attributable to continued focus
on strategic initiatives and cost management as well as
improved project management execution.
In full year 2021, the consolidated adjusted operating
prot increased to EUR 279.1 million (224.9). The adjusted
operating margin increased to 8.8 percent (7.1).
In full year 2021, the consolidated operating prot
totaled EUR 220.0 million (173.8). The operating prot
includes adjustments of EUR 59.1 million (51.1), which
are mainly comprised of transaction and integration
costs and restructuring costs. The operating margin
increased in Service to 17.0 percent (15.2), in Industrial
Equipment to 1.7 percent (0.4) and in Port Solutions to
7.0 percent (2.6).
In full year 2021, depreciation and impairments totaled
EUR 120.1 million (130.0). The impact arising from
the purchase price allocations for acquisitions represented
EUR 33.2 million (35.9) of the depreciation
and impairments.
In full year 2021, the share of the result in associated
companies and joint ventures was EUR 0.3 million (21.2).
The higher share of the result in associated companies and
joint ventures in 2020 was mainly due to the acquisition of
MHE-Demag in the beginning of 2020.
In full year 2021, nancial income and expenses totaled
EUR -27.8 million (-24.6). Net interest expenses accounted
for EUR 15.7 million (18.0) of the sum and the remainder
was mainly attributable to realized and unrealized exchange
rate differences related to the hedging of future cash ows,
which are not included in the hedge accounting, and other
nancing expenses.
10–12/2021 10–12/2020 Change %
Change % at
comparable
currency rates 1–12/2021 1–12/2020
Change
%
Change % at
comparable
currency rates
Orders received, MEUR 892.3 843.3 5.8 4.2 3,175.5 2,727.3 16.4 17.0
Net sales, MEUR 948.9 936.8 1.3 -0.4 3,185.7 3,178.9 0.2 0.7
Orders received and net sales
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
In full year 2021, prot before taxes was EUR 192.5 million
(170.4).
In full year 2021, income taxes were EUR 45.1 million
(47.5). The Group's effective tax rate was
23.4 percent (27.9).
In full year 2021, net prot was EUR 147.4 million (122.9).
In full year 2021, the basic earnings per share were
EUR 1.86 (1.54) and the diluted earnings per share were
EUR 1.85 (1.54).
On a rolling 12-month basis, the return on capital employed
was 9.3 percent (8.3) and the return on equity 11.3 percent
(9.8). The adjusted return on capital employed was
13.4 percent (11.1).
Balance sheet
At the end of December, the consolidated balance sheet
amounted to EUR 3,845.8 million (4,016.5). The total equity
at the end of the reporting period was EUR 1,360.6 million
(1,251.1) or EUR 17.08 per share (15.69). The total equity
attributable to the equity holders of the parent company
was EUR 1,351.4 million (1,242.0).
Net working capital totaled EUR 424.5 million (337.2).
Sequentially, net working capital increased by
EUR 21.2 million. The sequential increase in net
working capital resulted mainly from an increase in
accounts receivable and in receivables arising from
percentage of completion method.
Cash ow and nancing
Net cash from operating activities in full year 2021 was
EUR 168.4 million (407.1). The decrease in net cash from
operating activities was mainly due to change in net working
capital during the period. Cash ow before nancing activities
was EUR 137.7 million (242.0), which included cash inows
of EUR 9.8 million (2.8) related to sale of property, plant and
equipment, and cash outows of EUR 0.0 million (124.1)
related to acquisition of Group companies and EUR 40.5
million (43.8) related to capital expenditure.
At the end of December, interest-bearing net debt was
EUR 541.6 million (577.1). Net debt decreased mainly due
to the strong operating cash ow in 2021. The equity to
asset ratio was 38.9 percent (34.1) and the gearing
39.8 percent (46.1).
At the end of December, cash and cash equivalents
amounted to EUR 320.7 million (591.9). None of the Group's
committed EUR 400 million back-up nancing facility was in
use at the end of the period.
In April 2021, Konecranes paid dividends, amounting to
EUR 69.6 million or EUR 0.88 per share, to its shareholders.
Capital expenditure
Capital expenditure in full year 2021, excluding acquisitions
and joint arrangements, amounted to EUR 49.8 million
(42.8). The amount consisted mainly of investments in
machinery and equipment, buildings, ofce equipment and
information technology.
Acquisitions and divestments
In full year 2021, the cash impact of capital expenditure
for acquisitions and joint arrangements was EUR 0.0 million
(-124.1).
Personnel
In full year 2021, the Group had an average of 16,625
employees (17,027). On December 31, the number of
personnel was 16,573 (16,862). In full year 2021, the
Group's personnel decreased by 289 people net.
At the end of December, the number of personnel by
Business Area was as follows: Service 7,890 employees
(8,062), Industrial Equipment 5,516 employees (5,720), Port
Solutions 3,083 employees (2,970) and Group staff 84 (110).
The Group had 9,683 (9,688) employees working in EMEA,
3,016 (2,964) in the Americas and 3,874 (4,210) in APAC.
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
In full year 2021, orders received totaled EUR 1,078.3 million
(927.8), corresponding to an increase of 16.2 percent.
On a comparable currency basis, orders received increased
17.2 percent.
The order book increased 60.9 percent to EUR 343.5 million
(213.4). On a comparable currency basis, the order book
increased 54.1 percent.
The annual value of the agreement base increased
5.3 percent year-on-year to EUR 290.4 million (275.7).
On a comparable currency basis, the annual value of
10–12/2021 10–12/2020 Change %
Change % at
comparable
currency rates 1–12/2021 1–12/2020 Change %
Change % at
comparable
currency rates
Orders received, MEUR 307.7 233.6 31.7 28.3 1,078.3 927.8 16.2 17.2
Order book, MEUR 343.5 213.4 60.9 54.1 343.5 213.4 60.9 54.1
Agreement base value, MEUR 290.4 275.7 5.3 1.7 290.4 275.7 5.3 1.7
Net sales, MEUR 332.2 315.3 5.4 2.7 1,205.3 1,190.0 1.3 2.2
Adjusted EBITA, MEUR
1
69.7 60.6 14.9 222.4 205.2 8.4
Adjusted EBITA, %
1
21.0% 19.2% 18.5% 17.2%
Purchase price allocation amortization, MEUR -3.9 -4.0 -3.6 -15.5 -16.1 -3.6
Adjustments, MEUR -1.0 -1.2 -2.0 -7.7
Operating prot (EBIT), MEUR 64.8 55.4 16.9 204.9 181.4 12.9
Operating prot (EBIT), % 19.5% 17.6% 17.0% 15.2%
Personnel at the end of period 7,890 8,062 -2.1 7,890 8,062 -2.1
1
Excluding adjustments and purchase price allocation amortization.
Business areas
Service
the agreement base increased 1.7 percent. Sequentially,
the annual value of the agreement base increased
1.3 percent on a reported basis and stayed approximately
the same with a change of 0.0 percent on a comparable
currency basis.
Sales increased 1.3 percent to EUR 1,205.3 million (1,190.0).
On a comparable currency basis, sales increased 2.2 percent.
Both eld service sales and parts sales increased.
The adjusted EBITA was EUR 222.4 million (205.2) and the
adjusted EBITA margin was 18.5 percent (17.2). The increase
in the adjusted EBITA margin was mainly attributable to
sales growth and efcient cost management in both variable
and xed costs. The operating prot was EUR 204.9 million
(181.4) and the operating margin 17.0 percent (15.2).
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
10–12/2021 10–12/2020 Change %
Change % at
comparable
currency rates 1–12/2021 1–12/2020 Change %
Change % at
comparable
currency rates
Orders received, MEUR 274.5 241.3 13.8 11.3 1,172.5 981.2 19.5 20.3
of which external, MEUR 242.4 216.9 11.8 9.3 1,033.7 849.1 21.7 22.6
Order book, MEUR 709.9 598.8 18.5 12.6 709.9 598.8 18.5 12.6
Net sales, MEUR 332.1 313.6 5.9 3.8 1,088.7 1,120.1 -2.8 -1.9
of which external, MEUR 294.1 279.1 5.4 3.2 960.2 973.8 -1.4 -0.5
Adjusted EBITA, MEUR
1
20.6 18.1 13.9 38.0 25.4 49.6
Adjusted EBITA, %
1
6.2% 5.8% 3.5% 2.3%
Purchase price allocation amortization, MEUR -2.7 -3.1 -13.9 -10.8 -12.5 -13.5
Adjustments, MEUR -1.1 -4.8 -8.5 -8.6
Operating prot (EBIT), MEUR 16.8 10.1 65.8 18.7 4.3 332.4
Operating prot (EBIT), % 5.0% 3.2% 1.7% 0.4%
Personnel at the end of period 5,516 5,720 -3.6 5,516 5,720 -3.6
In full year 2021, orders received totaled EUR 1,172.5 million
(981.2), corresponding to an increase of 19.5 percent. On
a comparable currency basis, orders received increased
20.3 percent. External orders received increased 21.7 percent
on a reported basis and 22.6 percent on a comparable
currency basis. Order intake increased in standard cranes,
process cranes and components.
The order book increased 18.5 percent to EUR 709.9 million
(598.8). On a comparable currency basis, the order book
increased 12.6 percent.
Sales decreased 2.8 percent to EUR 1,088.7 million (1,120.1).
On a comparable currency basis, sales decreased 1.9 percent.
External sales decreased 1.4 percent on a reported basis
and 0.5 percent on a comparable currency basis. The sales
decrease was mainly due to delivery challenges caused by
customer delays, component availability issues, and other
supply chain challenges. Sales decreased in standard cranes
and process cranes but increased in components.
The adjusted EBITA was EUR 38.0 million (25.4) and the
adjusted EBITA margin 3.5 percent (2.3). The increase in
1
Excluding adjustments and purchase price allocation amortization.
the adjusted EBITA margin was mainly attributable to
continued progress on strategic initiatives, improved sales mix,
and cost management. The operating prot was EUR 18.7
million (4.3) and the operating margin 1.7 percent (0.4).
Industrial Equipment
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
10–12/2021 10–12/2020 Change %
Change % at
comparable
currency rates 1–12/2021 1–12/2020 Change %
Change % at
comparable
currency rates
Orders received, MEUR 354.9 403.7 -12.1 -12.5 1,112.7 994.5 11.9 11.7
Order book, MEUR 983.5 903.2 8.9 8.4 983.5 903.2 8.9 8.4
Net sales, MEUR 337.9 355.3 -4.9 -5.5 1,072.9 1,066.0 0.6 0.4
of which service, MEUR 50.9 44.3 14.8 12.6 181.9 167.9 8.3 8.7
Adjusted EBITA, MEUR
1
28.8 28.7 0.3 79.9 59.7 33.7
Adjusted EBITA, %
1
8.5% 8.1% 7.4% 5.6%
Purchase price allocation amortization, MEUR -1.6 -1.8 -10.1 -6.8 -7.3 -6.7
Adjustments, MEUR 1.4 1.3 1.7 -24.4
Operating prot (EBIT), MEUR 28.5 28.2 1.4 74.8 28.0 166.8
Operating prot (EBIT), % 8.4% 7.9% 7.0% 2.6%
Personnel at the end of period 3,083 2,970 3.8 3,083 2,970 3.8
1
Excluding adjustments and purchase price allocation amortization.
In full year 2021, orders received totaled EUR 1,112.7 million
(994.5), corresponding to an increase of 11.9 percent.
On a comparable currency basis, orders received increased
11.7 percent.
The order book increased 8.9 percent to EUR 983.5 million
(903.2). On a comparable currency basis, the order book
increased 8.4 percent.
Sales increased 0.6 percent to EUR 1,072.9 million (1,066.0).
On a comparable currency basis, sales increased 0.4 percent.
The adjusted EBITA was EUR 79.9 million (59.7) and
the adjusted EBITA margin 7.4 percent (5.6). The increase
in the adjusted EBITA margin was mainly attributable
to improved project management execution and cost
management. Gross margin improved on a year-on-year basis.
Port Solutions
Operating prot was EUR 74.8 million (28.0) and the operating
margin 7.0 percent (2.6).
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
Group overheads
In full year 2021, the adjusted unallocated Group overhead
costs and eliminations were EUR 28.1 million (29.5),
representing 0.9 percent of sales (0.9).
The unallocated Group overhead costs and eliminations were
EUR 78.4 million (40.0), representing 2.5 percent of sales
(1.3). These included merger related costs and restructuring
costs of EUR 50.3 million (10.5).
COVID-19 impact on Konecranes
Demand conditions have been recovering since the
beginning of the second half of 2020, but the COVID-19
pandemic continues to impact Konecranes. Overall, the
pandemic has made the demand environment uncertain,
which has impacted order intake. Additionally, physical
restrictions on the daily conduct of people and businesses
have led to lower revenue recognition.
Net sales were impacted by COVID-19 in all three
Business Areas in full year 2021. COVID-19 has not
led to major order cancellations in any of the three
Business Areas. In addition to physical restrictions,
the component availability and logistics issues following
the pandemic impacted Konecranes' sales negatively during
full year 2021. Konecranes has not seen major changes in
its supplier network.
In full year 2021, all Konecranes factories were in operation
except for some sites in APAC which were closed during
parts of the second and third quarters. At the end of
December, all Konecranes factories were in operation.
The impact of COVID-19 on the Group's protability has
been mitigated through almost real-time demand-supply
balancing and cost management actions. For example,
these have included temporary layoffs, reduced working
hours, and streamlined spending. Permanent cost
adjustments have also been made.
Some customer payment delays have occurred, but the
impact has not been signicant. Konecranes has further
enhanced payment collection and credit control. Inventory
levels have increased due to customer delivery delays,
component availability, and logistics issues.
The worldwide demand picture remains subject to volatility
due to the COVID-19 pandemic. There are still uncertainties
regarding the COVID-19 pandemic and related component
availability issues as well as other supply chain constraints.
It is too early to estimate how long and to what extent they
will impact Konecranes' business and performance.
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Financial Review 2021
Administration
Merger of Konecranes Plc
and Cargotec Corporation
On October 1, 2020 Konecranes Plc (“Konecranes”) and
Cargotec Corporation (“Cargotec”) announced that their
respective Boards of Directors had signed a combination
agreement and a merger plan (“the Merger Plan”) to combine
the two companies through a merger (“the Merger”).
On December 3, 2020 Konecranes announced that the Finnish
Financial Supervisory Authority had approved the merger
prospectus concerning the combination of Konecranes Plc and
Cargotec Corporation.
On December 18, 2020 Konecranes held an Extraordinary
General Meeting ("EGM") that approved the Merger in
accordance with the Merger Plan. In order to prevent the
spread of the COVID-19 pandemic, the EGM was arranged
without the physical presence of shareholders or their proxy
representatives. Cargotec's Extraordinary General Meeting was
held on the same day and resolved to approve the Merger.
Pursuant to the Merger Plan, Konecranes shall be merged
into Cargotec through an absorption merger so that all assets
and liabilities of Konecranes shall be transferred without
a liquidation procedure to Cargotec and Konecranes will
be dissolved. The shareholders of Konecranes will receive
new shares in Cargotec as merger consideration in proportion
to their existing shareholdings as described in more detail in
the Merger Plan.
On July 2, 2021 Konecranes and Cargotec conrmed that
they had led for approval in many of the jurisdictions where
the transaction requires regulatory review. The various
competition authorities, including the European Commission
(“EC”), the UK Competition and Markets Authority (“CMA”),
the US Department of Justice, and the Chinese State
Administration for Market Regulation, were reviewing
the proposed Merger at the date of the announcement.
The EC opened a Phase II review in connection with the
planned Merger on July 2, 2021. The Phase II review
continued during H2/2021.
On August 6, 2021 it was announced that the Boards of
Directors of Konecranes and Cargotec had agreed to select
Mr. Mika Vehviläinen as the President and CEO of the Future
Company, and the Board of Directors of Cargotec had made
the appointment accordingly. The appointment of Mika
Vehviläinen will become effective upon completion of the
Transaction. Mika Vehviläinen has served as Cargotec's CEO
since 2013.
On August 10, 2021 Konecranes announced that Konecranes
and Cargotec had received an unconditional approval for their
planned merger from the State Administration for Market
Regulation, the competition authority in China.
On November 4, 2021 Konecranes and Cargotec announced
the planned high-level operating model and leadership
team for the Future Company. The planned leadership for
the Future Company has been conrmed by both companies'
Boards of Directors. The planned leadership team would only
become effective as of the completion of the merger. Plans
related to the high-level operating model including businesses
and business units, group operations, functions, future
organization structure and further selections are subject to
separate decision-making as well as to various local
legal requirements.
On November 26, 2021 Konecranes and Cargotec noted
CMA's announced Provisional Findings regarding the planned
merger of Konecranes and Cargotec by stating that they
disagree with CMA's Provisional Findings. The companies
have considered the contents of the CMA's initial ndings and
continue to engage with the CMA.
On December 9, 2021 Konecranes announced progress in
Regulatory Proceedings in the Merger between Konecranes
and Cargotec. On the date of the announcement,
the Companies had Submitted Commitments to the European
Commission to Satisfy Competition Concerns. The remedy
package comprised of a commitment to divest Konecranes'
Lift Truck business and Cargotec's Kalmar Automation
Solutions. The proposed divestitures would eliminate
overlaps between the Parties' Container Handling Equipment
businesses but allow the Future Company to combine
others and continue to be a strong player in all aspects in
Container Handling Equipment. The nal decision on possible
divestitures of any businesses as well as possible terms and
conditions thereof will be conrmed only after the EC's further
review process, as well as further proceedings with the other
competent authorities. The possible divestitures are further
subject to various local legal requirements.
The completion of the Merger is subject to necessary
merger control approvals having been obtained and other
conditions to completion having been fullled. The European
Commission, the UK Competition and Markets Authority
and the US Department of Justice have phase II reviews of
the Merger ongoing. Further investigations regarding the
proposed remedies and negotiations with relevant competition
authorities regarding anti-trust concerns continue, and
Konecranes and Cargotec are awaiting their decisions.
The companies continue to work towards the merger being
completed by the end of H1 2022. Until completion, both
companies will operate fully separately and independently.
Konecranes and Cargotec update the total cost estimate
in connection with the merger to be approximately
EUR 125 million. The estimate presented in the January–
September 2021 interim report on October 28, 2021 was
approximately EUR 100 million. The costs consist mostly
of expenses related to nancial reporting, legal matters,
and advisory services (excluding the estimated transaction
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costs of the renancing and integration planning).
A considerable part of the total costs and the cost estimate
increase are related to the processes for applying for
the necessary merger control approvals for the merger.
The cost estimate will be rened as the competition
authority processes progress.
Additional information on the Merger is available in
the stock exchange releases dated October 1, 2020,
December 3, 2020, December 18, 2020, July 2, 2021,
August 6, 2021, August 10, 2021, November 4, 2021,
November 26, 2021, and December 9, 2021 available on
the Konecranes website, as well as on the merger website
www.sustainablematerialow.com.
Decisions of the Annual General Meeting
The Annual General Meeting of Konecranes Plc ("Konecranes"
or the "Company") was held on Tuesday March 30, 2021.
In order to prevent the spread of the COVID-19 pandemic,
the Annual General Meeting was held without shareholders'
and their proxy representatives' presence at the meeting
venue. The meeting approved the Company's annual accounts
for the scal year 2020, discharged the members of the
Board of Directors and the persons who had served as
CEO from liability, and approved all proposals made by the
Board of Directors and its committees to the AGM.
The AGM approved the Board's proposal that a dividend of
EUR 0.88 per share be paid from the distributable assets
of the parent Company. The dividend was paid to
shareholders who on the record date of the dividend
payment April 1, 2021 were registered as shareholders in the
Company's shareholders' register maintained by Euroclear
Finland Ltd. The dividend was paid on April 13, 2021.
The AGM approved the Board's proposal and authorized
the Board of Directors to resolve, before the completion
of the Merger, on an extra distribution of funds to be paid
either from the Company's reserve for invested unrestricted
equity as a return of equity or from its retained earnings
as a dividend or as a combination of both so that the
total maximum amount of funds to be distributed under
the authorization would amount to EUR 158,268,918
corresponding to EUR 2.00 per share. The authorization is
in force until the opening of the following Annual General
Meeting of the Company. The Company will separately
publish its Board of Directors' resolution to distribute funds
based on the authorization and will simultaneously conrm
the applicable record and payment dates. Funds paid on the
basis of the authorization will be paid to shareholders who
are registered as shareholders in the Company's shareholders'
register maintained by Euroclear Finland Ltd on the record
date of the payment.
The AGM decided to approve the Konecranes Remuneration
Report covering the remuneration of the members of the
Board of Directors, President & CEO and Deputy CEO in
2020. The resolution by the Annual General Meeting on the
Remuneration report is advisory.
The AGM conrmed that the amount of annual remuneration
payable to the members of the Board other than the
employee representative be unchanged as follows: the
remuneration to the Chairman of the Board is EUR 140,000,
the remuneration to the Vice Chairman of the Board is
EUR 100,000 in the event that a Vice Chairman is elected
by the Board, and the remuneration to the other Board
members is EUR 70,000. In case the term of ofce of a
Board member ends before the closing of the Annual General
Meeting in 2022, he or she is entitled to the prorated amount
of the annual remuneration calculated on the basis of his or
her actual term in ofce. The AGM furthermore approved
that the Chairmen of the Audit Committee and the Human
Resources Committee are entitled to a compensation of
EUR 3,000 and the other Board members are entitled to a
compensation of EUR 1,500 per each attended committee
meeting. No remuneration will be paid to Board members
employed by the Company, in accordance with the
agreement on employee representation between Konecranes
and its employees. Travel expenses for all Board members,
including the employee Board member, will be compensated
against receipt.
The AGM approved the proposal of the Company's
shareholders HC Holding Oy Ab, Solidium Oy and Ilmarinen
Mutual Pension Insurance Company, that the number of
members of the Board of Directors shall be seven (7). The
Board members Ms. Janina Kugel, Mr. Ulf Liljedahl, Mr. Janne
Martin, Mr. Niko Mokkila, Mr. Per Vegard Nerseth, Ms. Päivi
Rekonen and Mr. Christoph Vitzthum were re-elected for a
term of ofce ending at the closing of the Annual General
Meeting in 2022, and Christoph Vitzthum was elected as
Chairman of the Board of Directors.
The AGM decided to re-elect Ernst & Young Oy
as the Company's auditor for a term expiring at the end
of the Annual General Meeting following the election.
The AGM authorized the Board of Directors to decide
on the repurchase of the Company's own shares and/or
on the acceptance as pledge of the Company's own shares.
The AGM authorized the Board of Directors to decide on
the issuance of shares as well as the issuance of special rights
entitling to shares referred to in chapter 10 section 1 of
the Finnish Companies Act.
The AGM authorized the Board of Directors to decide on
the transfer of the Company's own shares.
The AGM authorized the Board of Directors to decide on
a directed share issue without payment needed for the
continuation of the Share Savings Plan that the Annual
General Meeting 2012 decided to launch.
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The AGM authorized the Board of Directors to decide on
donations in the aggregate maximum amount of EUR 200,000
to be given to universities, institutions of higher education or
to other non-prot or similar purposes.
The resolutions of the Konecranes Annual General Meeting
have been published in the stock exchange release dated
March 30, 2021.
Board of Directors
The Board of Directors elected in the Annual General
Meeting consists of
• Christoph Vitzthum, Chairman of the Board
• Päivi Rekonen, Member of the Board
• Janina Kugel, Member of the Board
• Ulf Liljedahl, Member of the Board
• Per Vegard Nerseth, Member of the Board
• Niko Mokkila, Member of the Board
• Janne Martin, Member of the Board
(resigned from the Board of Directors on July 27, 2021)
The term of ofce ends at the closing of the Annual General
Meeting in 2022.
On March 30, 2021 Konecranes announced that the Board
had held its rst meeting. The Board decided to continue
with an Audit Committee and a Human
Resources Committee.
Ulf Liljedahl was elected Chairman of the Audit Committee,
and Niko Mokkila and Päivi Rekonen as Committee members.
Janina Kugel was elected Chairwoman of the Human
Resources Committee, and Per Vegard Nerseth and Christoph
Vitzthum as Committee members.
All Board members are deemed to be independent of
the Company and all Board members with the exception
of Niko Mokkila are deemed to be independent of the
Company's signicant shareholders. Janne Martin was
deemed not to be independent of the Company due to his
position as an employee of Konecranes and Niko Mokkila is
deemed not to be independent of a signicant shareholder
of the Company based on his current position as Managing
Director at Hartwall Capital Oy Ab.
On July 27, 2021, Konecranes announced that Janne Martin,
an employee representative and a member of Konecranes
Board of Directors, had resigned from the Konecranes
Board of Directors, as he had decided to leave the company
to take a position at another company. In accordance
with the agreement on employee representation between
Konecranes and its employees, an employee representative
will need to resign from the Konecranes Board of Directors
when he is no longer employed by the company.
Konecranes Leadership Team
In 2021, Konecranes Leadership Team consisted of
• Rob Smith, President and CEO (until December 31, 2021)
• Teo Ottola, CFO, Deputy CEO
(also interim CEO since January 1, 2022)
• Fabio Fiorino, Executive Vice President,
Business Area Service
• Carolin Paulus, Executive Vice President,
Business Area Industrial Equipment
• Mika Mahlberg, Executive Vice President,
Business Area Port Solutions
• Juha Pankakoski, Executive Vice President, Technologies
• Anneli Karkovirta, Senior Vice President, Human Resources
(since August 30, 2021)
• Timo Leskinen, Senior Vice President, Human Resources
(until August 29, 2021)
• Sirpa Poitsalo, Senior Vice President, General Counsel
• Topi Tiitola, Senior Vice President,
Integration and Project Management Ofce
On July 1, 2021 Konecranes announced that Timo Leskinen,
SVP for Human Resources, and a member of the Konecranes
Leadership Team, had decided to leave the company and take
a position at another company. He left Konecranes
on September 30, 2021. From August 30, 2021 until his
departure, he acted as Senior Advisor.
On August 6, 2021 Konecranes announced that President and
CEO Rob Smith had decided to leave the company. He left
Konecranes on December 31, 2021. The company's CFO,
Teo Ottola, who also serves as Deputy CEO, acts as the interim
CEO from January 1, 2022 until the completion of the planned
merger between Konecranes and Cargotec Corporation.
On August 27, 2021 Konecranes announced that
Anneli Karkovirta had been appointed Senior Vice President,
Human Resources, and member of the Konecranes Leadership
Team effective August 31, 2021.
Shareholders' Nomination Board
On September 20, 2021 Konecranes announced the
composition of the Shareholders' Nomination Board.
The Shareholders' Nomination Board is comprised of one
member appointed by each of the four largest shareholders
of Konecranes Plc. The shareholders entitled to appoint a
member are determined on the basis of the shareholders'
register of the Company maintained by Euroclear Finland
Ltd. on August 31 each year.
The following members were appointed to Konecranes'
Shareholders Nomination Board:
• Peter Therman, Deputy Chairman of the Board of Directors
of Hartwall Capital, appointed by HC Holding Oy Ab with
7,931,238 shares,
• Pauli Anttila, Investment Director of Solidium Oy,
appointed by Solidium Oy with 6,744,506 shares,
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• Mikko Mursula, Chief Investment Ofcer of Ilmarinen,
appointed by Ilmarinen Mutual Pension Insurance Company
with 2,465,000 shares,
• and Stig Gustavson, appointed by Stig Gustavson and
family with 2,366,157 shares.
In addition, Christoph Vitzthum, the Chairman of the Board
of Directors of Konecranes, serves as an expert in the
Nomination Board without being a member.
Shares and trading
Share capital and shares
On December 31, 2021 the company's registered share capital
totaled EUR 30.1 million. On December 31, 2021, the number
of shares including treasury shares totaled 79,221,906.
Treasury shares
On December 31, 2021, Konecranes Plc was in possession
of 87,447 treasury shares, which corresponds to 0.1 percent
of the total number of shares, and which had on that date a
market value of EUR 3.1 million.
Market capitalization and trading volume
The closing price for the Konecranes shares on the
Nasdaq Helsinki on December 30, 2021 was EUR 35.16. The
volume-weighted average share price in full year 2021 was
EUR 36.41, the highest price being EUR 42.31 in September
and the lowest EUR 28.80 in January. In full year 2021, the
trading volume on the Nasdaq Helsinki totaled 44.0 million,
corresponding to a turnover of approximately EUR 1,603.7
million. The average daily trading volume was 174,774 shares
representing an average daily turnover of EUR 6.4 million.
In addition, according to Fidessa, approximately 65.8 million
shares were traded on other trading venues (e.g. multilateral
trading facilities and bilateral OTC trades) in full year 2021.
On December 31, 2021, the total market capitalization
of Konecranes Plc was EUR 2,785.4 million including treasury
shares. The market capitalization was EUR 2,782.4 million
excluding treasury shares.
Performance share plan 2021
On February 3, 2021, Konecranes announced that the Board
of Directors had resolved to establish a new Performance
Share Plan 2021. The Plan has a performance period from
2021 to 2023 with three separate measurement periods and
separate targets for 2021, 2022 and 2023.
The criterion for the measurement period 2021 is
adjusted earnings per share (EPS). The EPS target for
the rst measurement period was also resolved by
the Board of Directors.
The target group of the Plan for the performance period
2021–2023 consists of a maximum of 170 key employees
of the Konecranes group.
Additional information, including essential terms and
conditions of the Plan, is available in the stock exchange
release dated February 3, 2021.
Employee share savings plan
On March 30, 2021, Konecranes announced that the Board of
Directors had decided to launch a new Plan Period relating to
the Employee Share Savings Plan. The new Plan Period began
on July 1, 2021 and will end on June 30, 2022. The other
terms and conditions of the Plan Period 2021–2022 approved
by the Board on March 30, 2021 have been published in the
stock exchange release on the same day.
Other share-based incentive plans and Employee
Share Savings Plan periods
Konecranes has currently several long-term incentive plans,
Performance Share Plans, active and a Restricted Share Unit
Plan 2020. In addition, Konecranes has currently several
Employee Share Savings plan periods active or on
a waiting period.
Information on Konecranes' long-term incentive plans,
the Employee Share Savings Plan, and the Restricted Share
Unit Plan is available in the Remuneration Report 2021
and on the Konecranes Investors website
https://investors.konecranes.com.
Notications of major shareholdings
In full year 2021, Konecranes did not receive notications
of major shareholdings.
Research and development
In 2021, Konecranes' research and product development
expenditure totaled EUR 47.7 (48.5) million, representing
1.5 (1.5) percent of sales. R&D expenditure includes product
development projects aimed at improving the quality and
cost efciency of both products and services.
Technological leadership is at the core of Konecranes'
operations, allowing the company to develop the best
solutions for the continuously evolving customer
demands and is key to a positive societal impact.
Konecranes' innovations create customer value and
contribute to making material ows more sustainable,
efcient, and safer.
Innovation, research and development are central priorities
across the Konecranes organization. In 2019, Konecranes
founded a Data Science Lab in Lyon, France. Since its
inception, it has been tasked with facilitating and driving
innovation based on data. In close co-operation with the
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businesses and functions, the Data Science Lab has cocreated
new solutions for both the customer-facing offering and to
internal operations. As of 2021, the Data Science Lab has
trained over 150 Konecranes employees in using data science
to create value adding solutions based on data.
A core aspect of Konecranes' innovation work is to combine
technological leadership with the agility of startups. This
is done both through co-operation with startups and by
implementing their philosophies to the company's internal
ways of working. Konecranes Accelerator, the internal startup
program, was held in May–June 2021 and gathered ve teams
of experts from across Konecranes, with participants from
both the businesses and functions. Coached and mentored by
experts from the Maria01 network, a leading startup campus
in the Nordics, the benet of the program was two-fold. It
allowed Konecranes employees to design customer centric
solutions to business needs, but also provoked them to bring
new ways of thinking to their own team's operations.
REACH, Konecranes' open call to startups, also ran in 2021.
In it, startups apply to work together with Konecranes to
collaborate around pre-dened topics. In 2021, these were
equipment contextual awareness, radical reduction of energy
and waste in material handling processes, and safety in
material and container handling operations.
The collaboration with startups is mutually benecial.
Konecranes benets from the agile, leading startups in their
eld and they get access to a leading industrial company
and possible references. Furthermore, all pilot projects are
commercial, which means Konecranes will always pay for
them. Konecranes' Discovery program, targeting more specic
business solutions together with startups, is active with
many ongoing development projects in 2021. In addition to
the collaboration with startups, Konecranes is also active in
multiple innovation ecosystems, such as DIMECC's Intelligent
Industry Ecosystem.
Customer trust in Konecranes' solutions is built not only on
the productivity benets they bring, but also on their veriable
safety and security. Cybersecurity is a priority for Konecranes,
and in 2021 leaps were made in standardizing and formalizing
security management. In June, it was announced that
Konecranes' security management system had achieved
ISO/IEC 27001 certication for information security
management. The scope covers the development and delivery
of yourKONECRANES.com customer portal, productivity
enhancing mobile applications and TRUCONNECT® suite of
remote service products and applications for all Konecranes
customers in manufacturing and process industries, shipyards,
ports and terminals. The achievement is important for
Konecranes' customers in many industries, but especially
in ports, power and automotive, where security is a critical
requirement when choosing a supplier.
Konecranes' operational environment is forever changing,
with new regulations and ambitions on aspects such as
productivity and sustainability. Konecranes always thrives
to be the primary choice among current and potential
customers, and research and development work is geared
towards supporting that.
In 2021, Konecranes made strides in developing products
that answer to growing customer and societal expectations
for increased sustainability in the industry. In late 2020,
Konecranes E-VER, a lift truck with a state-of-the-art
electric driveline, equipped with a lithium-ion battery
powering its two motors, was introduced. Customer
deliveries started in 2021. Konecranes Lift Trucks business,
which celebrated its 10,000th unit sold in 2021, has further
developed their service-based business model during the
year. Konecranes Data Science Lab developed a data-based
model to predict the fuel consumption of reach stackers,
making it possible to provide a guarantee to customers on
which consumption levels and emissions to expect from the
machines they acquire.
Urban development has brought inhabitation closer to
ports in many parts of the world. As a consequence, noise
pollution is increasingly a priority for customers in the
industry. Konecranes has been active in developing silent
components to bring decibel levels down. This has been done
holistically, with new solutions for e.g. the gear tooth contact,
the design for and materials used in the shell, as well as
how the core components are fastened into the equipment.
The possibility to choose silent components has been well-
received by customers, especially for rail-mounted gantry
cranes (RMG) and rubber-tired gantry cranes (RTG), both tall
pieces of equipment from which noise travels far. The silent
components can be used in all the pieces of equipment that
use our Core of Lifting technology.
Many of Konecranes cranes are smart, utilizing connectivity
for communication and diagnostics. These features are
already a competitive advantage for the company. The dawn
of 5G, with its high bandwidth and low latency, opens further
opportunities in digitalized factory and port solutions. This
is especially true for machine-to-machine communication,
with the improved bandwidths opening avenues for pursuing
holistic ecosystems of connected equipment. In the spring of
2021, it was announced that Nokia and Edzcom will jointly
be delivering a 5G standalone private wireless network
to Konecranes' Hyvinkää smart factory in Finland. The
experience during the ramp-up phase was good, with plans
to expand 5G connectivity to include solutions delivered to
customers as well – further supporting their productivity
and safety.
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Statement of non-nancial information
The most essential non-nancial topics for Konecranes are
responsible business conduct, the safety of employees and
the company's products, respecting human rights, employee
engagement, diversity and inclusion, providing sustainable
solutions for the company's customers, decreasing the carbon
footprint of Konecranes' own operations and value chain,
advancing circular economy and enforcing sustainability
requirements in the supply chain.
Konecranes reports the disclosed information in accordance
with the Accounting Act amendment 1376/2016, which is
based on the EU Directive 2014/95/EU on the disclosure of
non-nancial and diversity information. More information
about the topics is available in the Sustainability Report 2021
that is prepared according to the international framework
Global Reporting Initiative (GRI). Konecranes is a signatory of
the United Nations Global Compact striving for the same goals
as the UN regarding human and labor rights, protecting the
environment and ghting corruption.
Konecranes has carried out comprehensive climaterelated risk
and scenario analyses, in line with the Task Force on Climate-
Related Financial Disclosures (TCFD) recommendations
that provide a useful framework to disclose governance
surrounding climate-related risks and opportunities, strategies
for addressing such factors, risk management considerations,
and metrics and targets which can be used to assess those
factors. Konecranes' commitment to the Science Based
Targets initiative sets a clear direction for the business and
what capabilities the company needs to get there. This
information is available in the section
“Climate related disclosures”.
Business model and value creation
Konecranes' business aims to deliver optimal productivity
while improving the safety and sustainability of the company's
customers by manufacturing intelligent and connected lifting
devices, adopting new technologies and optimizing material
handling ows. Safe ways of working are an integral part
of Konecranes' business. By prioritizing safety in all areas
of its operations, the company can improve safety
throughout its value chain. With its knowledge, products,
services and solutions, Konecranes provides monetary
value with sustained protability and stability and seeks
to maximize the positive contributions for its different
stakeholders and the society.
Konecranes enables reliable and optimized material
handling performance and can support decarbonization
with its innovative material ow and lifting technologies.
Investing in new technologies and substituting existing
technology with lower-emission alternatives is a big
opportunity for Konecranes and for its customers by
reducing their carbon footprint. By including circular economy
principles in various processes and utilizing several circular
business models helps Konecranes improve its resource and
energy efciency while creating value for the customer. For
example, the Service Business Area executes the product
lifecycle extension strategy by offering maintenance and
repairs, remanufacturing of parts, modernization, and
retrotting. Maintaining the life cycle value of a device for as
long as possible saves natural resources, as well as reduces
greenhouse gas emissions. The use phase of Konecranes
products can last for decades, so investing in data-driven,
eco- and resource-efcient products means the customer can
preserve the value of their equipment for a longer period of
time and thus also reduce its environmental impact.
Being a preferred partner and being able to select trust-
worthy partners is paramount for the whole Konecranes
value chain. Sustainable business practices and systematic
risk management are crucial for creating longer-term
shareholder value and nancial stability. To remain a key
player and an attractive employer within local communities,
Konecranes strives to make a positive impact on the societies
in which the company operates. This is done by providing
jobs and income for employees, by boosting local economies
as an employer, supporting non-prot organizations,
providing and buying of local services and goods, and also
being a signicant taxpayer in many countries where the
company operates.
In 2021, a total of EUR 427 million (403) in taxes and other
compulsory tax-like payments were paid and collected in
countries where the Group operates, implying an effective tax
rate of 23.4 percent (27.9). A total of EUR 182 million (174)
was paid (taxes borne) directly by the group itself, while EUR
244 million (228) was collected (taxes collected) on behalf
of governments. Konecranes is a compliant taxpayer in each
country where it operates and does not practice aggressive
tax planning that would articially decrease the Group's
taxable income.
Konecranes' innovation not only focuses on products,
technologies, and service solutions, but also on new ways
of working and leveraging workforce diversity to drive
innovation. Konecranes' employees, with their expertise and
motivation, are central to the company's success and bring
the company's strategy to life. In Konecranes' view, varied
skill sets are a key driver of creativity and value creation
to the company's customers. To ensure that the company
continues to deliver value, it focuses on maintaining close ties
with its key stakeholders to understand their evolving needs
and expectations; engaging and developing the best talent;
implementing smart technologies in its product and service
offering; innovating new business models; and improving
product development and reliability.
Responsible business conduct
The management culture in Konecranes is based on the
company's values: trust in people, total service commitment
and sustained protability. The goal is not just to comply
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with the laws, rules and regulations that apply to the business
– Konecranes also strives to abide by high standards of
business conduct.
Konecranes' Code of Conduct and Corporate Governance
Framework guide the everyday activities of the company
by clearly describing internal standards and ethical
values as well as legal obligations. The Code of Conduct
is complemented by several Group-wide policies
covering areas including safety, environment, supplier
requirements, anti-corruption, competition compliance,
equal treatment and diversity. During 2021, a new Conict
of Interest Instruction and related declaration process was
implemented. The main compliance policies and the yearly
Code of Conduct training are available in 35 languages.
There is an executive-level Compliance & Ethics Committee
to oversee the implementation and development of the
compliance & ethics program, which is managed by the
Compliance & Ethics Team.
Konecranes promotes a healthy speak-up culture where
people can feel safe reporting ethical concerns. Multiple ways
to raise concerns are offered, including an externally managed
Whistleblowing Channel open to the company's employees
as well as third parties, which enables anonymous reporting
when allowed by local laws. All reports made are reviewed
and investigated, as appropriate. There is a clear policy of no
retaliation. Konecranes also encourages its suppliers and other
business partners to report on any compliance and ethics
concerns relating to Konecranes.
In accordance with the company's regular compliance &
ethics risk assessment process, an online survey-based
risk assessment was conducted in 2021 to gather insights
from over 750 people throughout the organization, which
supplemented the viewpoints received from the global
employee engagement survey. These results helped
Konecranes evaluate its responsible business conduct KPIs
and overall compliance and ethics program and roadmap.
Multiple awareness-raising activities took place in 2021, with
the main focus on the new competition law training and
the yearly Code of Conduct training. The Code of Conduct
training is mandatory for all employees globally, including
operatives, and despite the challenging pandemic situation,
more than 15,000 employees were trained during 2021.
To help mitigate risks and drive ethical practices in supply
chains, the Konecranes Supplier Code of Conduct (SCoC)
states the sustainability standards expected from third
parties. The SCoC has requirements, for example, on
anti-corruption, human rights, safety, environmental and
compliance topics. The SCoC forms a key part of any
agreements made with key suppliers and subcontractors.
By the end of 2021, 56 percent of suppliers (as share of
spend) had signed the SCoC. Background checks on suppliers
and subcontractors are done before entering into business
relationships and dened suppliers are assessed based on
self-assessments. The requirements are constantly reviewed
and developed to ensure that environmental and social
impacts are managed properly through responsible sourcing.
In 2021 Konecranes continued third-party supplier audits
concentrating particularly on compliance with Konecranes'
Supplier Code of Conduct.
Anti-corruption and bribery prevention
Konecranes' Anti-Corruption policy and Code of Conduct
demonstrate the company's commitment to work against
corruption in all forms, including extortion and bribery.
They dene the level of ethical conduct sought to uphold
and support long-term competitiveness in the global markets.
The Anti-Corruption Policy, which was reviewed and revised
in 2021, has compliance protocols and guidelines in place to
detect risks, with a zero-tolerance approach embedded in
the monitoring and follow-up processes. Several actions and
processes are set up to mitigate corruption and fraud risks
including a Gift and Hospitality Portal.
Anti-Corruption matters form an important element of the
2021 Code of Conduct training. Konecranes' zero-tolerance
approach is also promoted to business partners in the
Konecranes Distributor Code of Conduct, Supplier Code of
Conduct and Supplier Manual. Konecranes uses a risk-based
Know-Your-Counterparty process to conduct due diligence
and background screenings, identify red-ags and carry out
risk assessments on third parties worked with whereby the
level of scrutiny and required approval process are determined
by considering, for example, the risks associated with the
business in question, country risks and business partner risks.
Suppliers are also audited for their anti-corruption work.
Environmental responsibility
Konecranes environmental work is driven by decarbonization
and advancing circularity for customers and society at large.
Konecranes has set science based emission targets approved
by the Science Based Target Initiative to limit global warming
to 1.5°C. Konecranes' commitments concerning environmental
responsibility can be found in the company's Code of Conduct
and in its Environmental Policy, updated in 2021. They outline
Konecranes' principles for managing the environmental impact
of the company's sites, products, and services, as well as the
company's supply chain.
Konecranes has been focusing on reducing the carbon
footprint of its own operations by investing in energy
efciency in manufacturing operations and in its eet, and
systematically increasing the share of renewable electricity
used in manufacturing operations. Konecranes has also
calculated the climate impact the company creates in its
downstream and upstream value chains. In 2021, Konecranes
built a climate roadmap to reduce the carbon footprint from
indirect Scope 3 emissions categories, focusing on the largest
emissions categories. The company is working on developing
its eco-optimized portfolio, continuing the electrication of
ports equipment and decreasing the carbon impact of its
supply chain with a particular focus on steel.
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Konecranes' circular strategies focus on using less, using
longer, and using again. Circularity plays an essential role also
in tackling climate change as greenhouse gas emissions can
be reduced by improving resource efciency, designing out
waste and keeping materials and products in use longer.
Environmental management
in Konecranes operations
Konecranes takes the day-to-day challenge of reducing
its environmental impacts – which means using resources
more efciently and minimizing emissions and waste –
very seriously. The company focuses on improving the
energy efciency of its own operations, in both service and
manufacturing. Konecranes has also signed national voluntary
agreements on energy efciency. The company will meet this
target by investing in energy efciency actions such as heat
recovery and lighting as well as more fuel-efcient cars and
route optimization.
Konecranes has systematic environmental management
practices in place to continuously improve the environmental
performance of manufacturing sites and service operations.
Konecranes aims for all its manufacturing sites to be
ISO 14001:2015 certied as it sets a minimum level for
environmental management. Currently 80 percent of the
company's factories have an ISO 14001 environmental
management system in place requiring continuous
development and the establishment of local annual targets.
The coverage has declined slightly (83 percent in 2020)
due to factory closings.
The company assesses the environmental risks of its service
and manufacturing sites in greater detail as part of the local
environmental management system, where each of the
company's units is responsible for evaluating, prioritizing,
and mitigating their risks on a local level. Environmental
incidents and near-miss cases are reported through the
company's global Health, Safety and Environment (HSE)
reporting tool, and root causes are investigated, and
corrective actions are taken accordingly. In addition, the
company aims to minimize waste and reuse and recycle as
much as possible.
Due to having global targets, a high number of factories
that continuously develop their operations based on the
environmental management system requirements and
global environmental data gathering, Konecranes is able to
analyze and mitigate its impact on the environment as well as
provide well-structured environmental information about the
company's performance to its stakeholders.
Eco-optimized offering and circularity
Konecranes promotes decarbonization by substituting existing
technology with lower-emission alternatives and by extending
product lifecycles with its solutions and service concepts.
Konecranes' customers gain clear benets by investing in
durable equipment that can be repaired and modernized
and receive added value from uninterrupted operations.
Konecranes designs its products with their complete lifecycle
in mind, as the majority of the environmental impact of a
product's lifecycle is dened at the product design stage.
Konecranes' product design is based on smart design
principles focusing on maintainability, repairability, durability,
and material selections, including recyclability and energy
efciency. For diesel-powered vehicles, the company provides
innovative power options ranging from hybrids to full electric
and battery technology, with additional energy-saving features
such as regenerative braking. To provide accurate data on
the environmental impact of its solutions for decision making,
the company calculates its products' energy consumption and
CO
2
emissions, and critically assesses this data with the help
of a third party (as part of the company's Environmental
Product Declarations).
In 2021, Konecranes dened a company-level strategy to
further improve the overall environmental responsibility
of its offering that enables the Science Based Targets pathway
and advances circularity. This strategy is then implemented
in 2022 as a part of the Business Area product strategies and
development projects, guiding especially the solution design
process. Konecranes has also dened targets for sustainable
portfolio development starting to monitor the progress in 2022.
Konecranes' service operations promote circular economy
by extending the lifecycle of equipment through maintenance
and repairs, remanufacturing of parts, modernization,
and retrotting; this helps Konecranes improve its own
resource and energy efciency while reducing its customers'
carbon footprints. Preventive maintenance supports
customers' emissions reductions as the data can be used
to optimize maintenance activities (service visits and spare
parts needs). Konecranes' retrotting and modernization
services can provide a complete transformation of an existing
crane as an alternative to replacing it by updating the
equipment to meet today's standards. On top of improved
performance, modernizations save a signicant amount of
steel and in most cases reduce emissions when traditional
diesel generators are retrotted as hybrids or full electric.
During 2021, nine workshops were conducted for all business
areas focusing on brainstorming and nding opportunities
to promote circularity and in the best case create new
business models. From dozens of ideas, 10 specic circular
concepts that could be taken further were discussed more
in detail. The initiatives will be researched further by the
business owners, and the business cases will be structured
and validated in 2022.
Taxonomy eligibility
Konecranes has activities that qualify as environmentally
sustainable according to the EU Taxonomy Regulation. The
activities are eligible according to the rst published technical
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screening criteria for climate change mitigation. Konecranes
has activities that are in the scope of Technical Screening
Criteria (TSC) 3.6. Manufacture of other low carbon
technologies and 8.2. Data-driven solutions for greenhouse
gas (GHG) emissions reductions.
These activities are, according to Article 16 of the Taxonomy
Regulation, enabling substantial contribution towards climate
change mitigation, which is one of the objectives dened
in Article 9 of the Regulation. The total taxonomy-eligible
revenue is expected to increase in 2022 as the activities of
the Service Business Area are expected to partially fall in the
forthcoming scope of the environmental objective “Transition
to a circular economy and waste prevention”.
The calculation of the revenue percentage of taxonomy-
eligible activities for TSC 3.6. (Manufacture of other low
carbon technologies) is based on low carbon technology
such as inverter-controlled drives, regenerative breaking
and hybrid and electric power options. These technologies
substitute existing technology with lower-emission
alternatives. The revenue percentage of software solutions
eligible for TSC 8.2. (Data-driven solutions for GHG emissions
reductions) represents 0–1 percent of total revenue.
Eligibility of revenue was evaluated at product level and
represent only sales to external customers for each
Business Area. Taxonomy-eligible products and solutions
represent 14 percent of Konecranes' revenue.
CapEx and the specically dened categories of OpEx
described in the Taxonomy Regulation are reported at
company level. 5 percent of CapEx and 39 percent of
specically dened OpEx is taxonomy-eligible. These
activities include, for example, facility improvements,
sourcing of green activities and research and development
projects. They support the transition towards a low carbon
economy and achieving the Science Based Targets set for
own operations and for the value chain.
Taxonomy-eligible revenue, MEUR
Eligible Non-eligible
0
Port
Solutions
Industrial
Equipment
Service
200 400 600 800 1,000 1,200
Taxonomy-eligible capital expenditure, MEUR
Eligible Non-eligible
0 10 20 30 40 50 60
2021
Taxonomy-eligible operational expenditure, MEUR
Eligible Non-eligible
0 10 20 30 40 50 60 70
2021
Climate related disclosures
Konecranes mitigates climate risks by focusing on the most
relevant low carbon technologies and managing physical
climate risks by adopting clear risk management practices.
Konecranes follows guidelines of the Task Force on Climate-
related Financial Disclosures (TCFD) to share Konecranes'
approach in a transparent manner. The most relevant
climate opportunities reside in Konecranes' offering, enabling
decarbonization for customers by providing equipment and
solutions that reduce emissions and advance electrication.
For example, ports, one the industries served by Konecranes,
play an essential role in global climate change mitigation
as the container trafc related to international trade is
expected to double already by 2030 (Source: Internal
Transport Forum / OECD). Only by investing in technology
that cuts the dependency on fossil fuels can the shipping and
transportation industries reach their ambitious goals of
40 percent reduction in CO
2
by 2030 (IMO GHG Strategy).
Climate governance
Sustainability, including climate matters, is embedded into
Konecranes' governance processes at several levels.
The Board of Directors' HR Committee is the ofcial
supervisory Board Committee following climate topics on
an annual basis. The HR Committee approves the long-term
focus, ambition level and targets, and reviews performance
and activities annually.
Konecranes Leadership Team (KLT) plays a signicant role
in the Company's management system, strategy preparation
and decision-making and is involved in risk and nancial
planning process but has no ofcial statutory position based
on legislation or the Articles of Association. Sustainability is
integrated into Konecranes' strategy. The KLT reviews the
sustainability strategy annually as well as all major climate
related action plans and targets. It follows emissions data
on monthly basis and oversees other climate-related issues
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as needed. In 2021, the KLT discussed the company's
Climate Roadmap frequently, and updated the sustainability
governance model.
Of Konecranes Leadership Team members, Senior Vice
President Human Resources (SVP HR) is responsible for
the climate topics and participates in HR Committee
meetings. The Sustainability Council, nominated by the KLT
and sponsored by the SVP HR, reviews, approves and guides
the overall sustainability strategy, targets and action plans.
The Head of Sustainability leads the global sustainability
work. The Head of Sustainability is responsible for taking
actions and decisions to the operative level, and for
building and coordinating climate action plans, proposing
activities and targets, and following the progress. The global
Sustainability Team reports to the Head of Sustainability.
Climate targets and metrics
Konecranes focuses on the full carbon footprint of its
operations, meaning both own operations and value chain,
to reduce the overall climate impact. Ninety-eight percent
of Konecranes' emissions originate from the value chain.
The two main Scope 3 emissions categories are the use of
sold products as well as the purchased goods and services.
Konecranes started the validation of its climate targets
through the Science Based Targets initiative during 2021
and received validation in January 2022. Within Scope 1
and 2 greenhouse gas (GHG) targets, Konecranes is
committed to reducing its absolute carbon emissions by
50 percent by 2030. This target will be achieved by investing
into renewable electricity, and by improving the fuel efciency
of the eet and the energy efciency of the production
processes. As part of the Science Based Targets ambition,
Konecranes tightened the schedule of the previous target
of powering the company's factories with 100 percent
renewable electricity from 2025 to 2022.
For scope 3, Konecranes aims to reduce absolute carbon
emissions by 50 percent by 2030, encompassing the use
of sold products and steel related purchases. This target
covers more than 70 percent of the value chain emissions.
As supportive actions, Konecranes will also fully offset
ight emissions and will continue to seek new ways to
decrease emissions and drive its sustainable portfolio
development. Scope 1 and 2 emissions data is collected
monthly to monitor progress. Scope 3 data is currently
collected at least on an annual basis.
Emissions * 2021 2020 2019
Scope 1 44,500 43,000 52,500
Scope 2 14,400 30,300 33,100
Scope 3 5,158,600 5,074,400 5,667,700
• GHG emissions calculated in line with the GHG Protocol
methodology.
• Data collection boundary has been updated to align with Science
Based Targets criteria. 2020 and 2019 are recalculated to offer
transparent information.
• Scope 1 includes emissions from fuel, natural gas and LPG
consumption and fugitive emissions (refrigerants).
• Scope 2 includes emissions from electricity and district heat
consumption. Indirect Scope 2 emissions are calculated according
to the GHG Protocol Scope 2 Guidance dual reporting requirement:
location-based and market-based method.
• The gures cover all forms of energy used in Konecranes'
manufacturing locations and service units. Potential renewable
shares are not taken into account for fuels. Figures on the use
of natural gas, LPG and district heat from Konecranes' service
operations are excluded because collecting this data from the
company's service network is challenging and the consumption
amounts are estimated to be very marginal.
Climate risk management
Konecranes has a Group-wide process for evaluating
climate-related risks. The Board of Directors of Konecranes
has dened and adopted a set of risk management
principles based on widely accepted international
management practices. These principles serve as part of
the company's system of controls and are designed to
ensure that any risks related to the company's business
operations are identied and managed adequately and
appropriately to safeguard the continuity of Konecranes'
business at all times. As part of the process, risk points are
discussed, documented, and prioritized. For assessing risks,
Konecranes uses the scale of probability, costs of mitigation,
and impacts for the business.
Company-level climate-related risks and opportunities
are assessed on a yearly basis. As a basis for climate
assessment, Konecranes uses the information received
from natural hazard risk evaluations, climate risk scenario
analysis and local ISO 14001 risk evaluations. Short-,
medium- and long-term (0–20 years) risks and opportunities
are identied and assessed. Local environmental and
climate-related risks are assessed according to the
requirements of the ISO 14001 environmental management
system. The key risks are reported to risk management
(legal department) and the Internal Audit Committee.
Konecranes' risk appetite reects the company's business
objectives and strategic targets.
Identied risks and opportunities
Based on the climate risk scenario analysis and internal
workshops, Konecranes has reviewed both aspects of climate
change as guided by TCFD – how does climate change affect
Konecranes and how does Konecranes contribute to climate
change. Both risks and opportunities were considered.
The potential effects of climate change are far-reaching,
from natural disasters that could affect the company's supply
chain to increased local regulation and cost of energy and
materials impacting production at its manufacturing sites and
the servicing of lifting equipment. Regarding transition risks
such as emerging regulation, Konecranes actively participates
in relevant industry organizations and follows national,
EU-level and international regulation/agreements related to
climate. Regarding physical risks such as rising sea levels, the
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company has conducted several natural hazard assessments
with its insurance company to understand the probability,
time scale and actual risks involved.
Technology plays a crucial part in Konecranes' business,
and the company closely follows technological
developments in sectors material to the company and
its customers. Konecranes wants to increase awareness
about the ways different technologies are developing
and to ensure that its low-carbon solutions and selected
technologies are attractive to its clients. The signicant risk
for Konecranes related to technology lies in the selection
of technologies used in the company's portfolio. The
pressure for technological development in carbon-intensive
industries might also increase costs and impact the
availability of technology. To mitigate technology-related
risks, Konecranes ensures that its low-carbon solutions and
selected technologies are effective and attractive to the
company's customers.
When it comes to climate-related opportunities, Konecranes
focuses on providing eco-efcient solutions for its
customers, developing new technologies and extending
lifecycles with its service concept. For example, the
company offers hybrids and electric as an alternative
to traditional diesel cranes, and energy-saving features
such as regenerative braking to help customers minimize
emissions. There are immense positive impacts of
electrically powered equipment as the operational use of
such equipment signicantly decreases CO
2
emissions.
Predictive maintenance also supports customers' emissions
reductions by using data and remote monitoring to
optimize visits by a service technician. Konecranes' product
offering includes, for example, modernizations, where one
signicant benet is material savings in steel and avoiding
the emissions that come from steel production. More details
on the climate risk & opportunities information is available
on the website at konecranes.com/about/sustainability.
Respect for human rights
Konecranes respects human rights and promotes the
principles set in the UN Universal Declaration of Human
Rights and the Declaration on Fundamental Principles and
Rights at Work of the International Labor Organization (ILO).
Konecranes' commitment to human rights is evident in
multiple internal policies. The company has included the
basic principles of human rights in its Code of Conduct.
Konecranes has a corporate policy, the Fair Labor Frame,
which sets a standard and ambition to workforce-related
activities, such as working hours and freedom of association.
The Fair Labor Frame was updated in 2021 to strengthen
the approach.
Additionally, the company has a Respect in the Workplace
policy, which deals with equal opportunities and fair
employment practices, and separate policies for Health &
Safety and Diversity & Inclusion that also address human
rights. To ensure that human rights are also respected in
Konecranes' supply chain, the company has included its
basic requirements in its Supplier Code of Conduct. Human
rights are part of the company's annual, mandatory Code of
Conduct training. As Konecranes has a complex supply chain
located also in countries lacking the strong enforcement
of labor laws, labor rights can be at risk. Read more about
Konecranes' supply chain compliance management in the
section Responsible business conduct.
Konecranes continued to utilize results of the 2020 human
rights risk screening conducted with the help of an external
service provider. The exercise showed that health and
safety related risks stand out as a potential high-risk area
both for Konecranes' own employees and for people in the
value chain. Typical human right risks for ofce employees
are discrimination and the privacy of personal data.
Konecranes takes privacy very seriously. Read more
about Konecranes' activities to reduce IT risks in the section
Risk management in the Governance and Financial Review.
To proactively prevent discrimination, the company has
a strong Diversity & Inclusion program that is led by
a Diversity & Inclusion ofcer. Should any discrimination
occur, there is a clear process how to investigate and process
the case.
In 2021, Konecranes moved to investigating human right
risks and social responsibility in more detail in practice and
conducted third-party social responsibility assessments in the
company's operations located in high-risk countries, paying
special attention to issues identied in the risk screening. The
company took action to mitigate identied risks locally and
is developing global processes to address topics recurring
across the sites. Assessments will continue in 2022.
Safety
Safety is an integral part of Konecranes' business and
prioritizing safety in all areas of operation creates a
competitive advantage for the company. Konecranes' goal
is for everyone to get home safe, every day. Konecranes
seeks to achieve this goal through strategic, centrally led
programs and business-specic initiatives. Transparent and
comprehensive safety reporting and follow-up procedures
help the company build a coherent safety culture, recognize
its most signicant risks and validate the effectiveness of
its safety work. Konecranes' occupational health and safety
principles are dened in the company's Code of Conduct
and Health and Safety policy. In addition, the company
has several safety management tools and global practices
in place.
There are considerable occupational health and safety risks in
the material handling industry. Konecranes' most signicant
safety risks are related to factory work, vehicle incidents,
crane and equipment installation, and the service business,
where the working conditions of technicians vary from job
to job. All Konecranes employees are properly trained to
perform their tasks safely and correctly.
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The company follows incidents and hazards using two
management systems, the ARMOR HSE reporting tool
and the AIR product compliance management system,
as well as through customer feedback collected after each
major delivery. Currently 73 percent of the manufacturing
sites are OHSAS/45001 certied. Safety performance data
is continuously available to management through online
safety performance dashboards and is addressed on all
management levels. Over-all performance trends are
reviewed monthly in the Konecranes Leadership Team and
Business Area leadership meetings, focusing especially on
leading indicators and preventive actions and safety incidents
with Serious Injury or Fatality Potential or Actual Serious or
Fatal outcomes.
The KPI for Konecranes' safety is the Total Recordable
Incident (TRI) rate, which refers to the number of injuries
requiring medical treatment per one million working hours.
The recordable incident rate for 2021 was 6.7 (7.5 in 2020),
an improvement of 12 percent compared to the previous
year. The company also tracks the number of Safety
Observations made as a leading KPI. In 2021, Konecranes
personnel made a total of 51,004 safety observations,
which was 79 percent more than in 2020 (28,471).
Global COVID-19 response actions continued in 2021.
COVID-19 infections were tracked weekly and discussed in
global bi-weekly calls, as well as regularly in the country
response teams. The global HSE team issued guidance
relevant for global activities, such as travel restrictions and
vaccination promotion. Specic actions and guidelines were
decided and issued by country-level COVID-19 Response
Teams, based on guidance from local authorities and the
infection situation in the country in question.
People Strategy
Konecranes' talented, diverse, innovative, and engaged
employees help its customers improve safety and productivity
every day. The Konecranes people management strategy
supports this by ensuring that the needed resources
and competencies for the future are in place, and that
employees are motivated and capable of meeting future
business requirements.
Konecranes believes in engagement and continuous learning
and development, and offers its employees a variety of
training courses and activities in different areas – including
technology, sales, communication, leadership, health and
safety, language, culture, project management and the
environment. In addition, employees have multiple other
opportunities to enrich their work, for example, by learning
from peers or on the job, and by joining communities, such
as employee afnity groups.
At Konecranes, employee engagement is measured by
conducting pulse surveys and employee engagement
surveys across the organization. The main risk related
to low employee engagement is the loss of talent and
competencies. At Konecranes, this risk is mitigated through
fair and competitive compensation, culture and leadership
development programs, succession planning, internal job
rotation and talent management, as well as various programs
to support professional growth and wellbeing.
Diversity
Konecranes aims to create a diverse and inclusive working
environment where people feel trusted and there is a sense
of belonging. Konecranes wants to represent the multicultural
communities where it operates and be a great partner for its
customers. All backgrounds and the variety of talents are an
asset for the company's growth.
Fair and responsible practices, equal career development
opportunities and embracing diversity are the key enablers in
attracting employees with the potential to be the best in the
industry. Inclusion means that the strengths of differences
are welcomed and leveraged and that Konecranes offers a
working environment where everyone can be themselves and
feel valued for their contribution. Fostering all the dimensions
of diversity has been repeatedly proven to encourage
innovation, deliver exceptional organizational performance
and to enable outstanding customer service. In Konecranes'
view, varied skillsets are a key driver of creativity and value
creation, and diversity and inclusivity result in teams that
deliver better results.
Konecranes' work is based on a Diversity and Inclusion (D&I)
Policy and on a strategy on inclusion and diversity. In 2021,
Konecranes successfully proceeded with integration of D&I
into the company's cultural foundation and business agenda.
Konecranes continued to raise awareness by educating the
organization and individuals about unconscious biases and
the importance of having D&I as a cultural foundation. D&I
was used as a tool to boost the sense of togetherness,
especially during the COVID-19 pandemic. Key activities
included internal “Coffee and Culture” webinar series focusing
on the company's culture and belonging; learning paths
related to resilience and staying connected with teams;
and Employee Resource Groups aimed at raising awareness,
providing support, and improving career development and
the work environment.
Mentoring and the fast-track program continued, supporting
the increase of women in leadership positions. At the end of
2021, there were 14.3 percent women in Senior Management
(13.1 percent in 2020). In addition, D&I has been embedded
in the talent and succession plan process, taking into
consideration gender and geographic diversity. Konecranes
involved the entire organization in its inclusive talent process,
allowing to identify talents and create development actions.
The goal is to have at least 22 percent gender diversity in
senior management by the end of 2025. The current gender
balance for all Konecranes employees is 17.7 percent female
and 82.3 percent male. With the D&I vision, purpose and
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goals, Konecranes continues to raise its ambition of taking a
leadership position as a diverse and inclusive company.
Litigation
Various legal actions, claims, and other proceedings are
pending against the Group in different countries. These
actions, claims, and other proceedings are typical for this
industry and are consistent with the global business offering
that encompasses a wide range of products and services.
These matters involve contractual disputes, warranty claims,
product liability (including design defects, manufacturing
defects, failure to warn, and asbestos legacy), employment,
auto liability, and other matters involving general
liability claims.
Risks and uncertainties
Global pandemics, such as COVID-19, have and may have
a negative impact on Konecranes' customers and its own
operations. Physical restrictions on the daily conduct of
people and businesses can lead to lower revenue recognition
and adversely impact cash ow. Physical restrictions may
also lead to component availability issues and inventory
obsolescence. Furthermore, global pandemics can increase
the likelihood of weaker demand conditions and, as a result,
may lead to overcapacity, impairment of assets and
credit losses.
Global component availability issues and other global supply
chain constraints may lead to production and customer
delivery delays and have a negative impact on Konecranes
sales and cash ow.
Konecranes operates in emerging countries that face
political, economic, and regulatory uncertainties. Adverse
changes in the operating environment of these countries
may result in currency losses, elevated delivery costs, or
loss of assets. Konecranes operates a crane factory in
Zaporozhye, Ukraine.
The operations in emerging countries have had a negative
impact on the aging structure of accounts receivable and
may increase credit losses or the need for higher provisions
for doubtful accounts.
Political risks and uncertainties have also increased outside
the emerging countries due to the emergence of populism,
patriotism and protectionism in a number of Western
economies. This has led and can lead to further increases
in tariffs on imported goods, such as components that
Konecranes manufactures centrally before exporting them
to most of the countries in which it operates. The resulting
tariffs may result in a decrease in protability.
Konecranes has made several acquisitions and expanded
organically into new countries. A failure to integrate the
acquired businesses, MHPS and MHE-Demag in particular, or
grow newly established operations may result in a decrease
in protability and impairment of goodwill and other assets.
One of the key strategic initiatives of Konecranes is
oneKONECRANES. This initiative involves a major capital
expenditure on information systems. A higher-than-
expected development or implementation costs, or a
failure to extract business benets from new processes and
systems may lead to an impairment of assets or decrease
in protability.
Konecranes delivers projects, which involve risks related,
for example, to engineering and project execution with
Konecranes' suppliers. A failure to plan or manage these
projects may lead to higher-than-estimated costs or disputes
with customers.
Challenges in nancing, e.g., due to currency uctuations,
may force customers to postpone projects or even cancel the
existing orders. Konecranes intends to avoid incurring costs
for major projects under construction in excess of advance
payments. However, it is possible that the cost-related
commitments in some projects temporarily exceed the
number of advance payments.
The Group's other risks are presented in the Notes
to the Financial Statements and the Governance Supplement
to the Annual Report.
Date Release
December 9,
2021
Progress in Regulatory Proceedings in the
Merger between Konecranes and Cargotec: The
Companies have Submitted Commitments to the
European Commission to Satisfy Competition
Concerns
November 26,
2021
Konecranes and Cargotec note CMA's announced
Provisional Findings regarding the planned
merger of Konecranes and Cargotec
November 4,
2021
Konecranes and Cargotec announce planned
high-level operating model and leadership team
for the Future Company
October 28, 2021
Konecranes Plc: Interim report January-
September 2021
October 27, 2021
Konecranes Plc's nancial information and AGM
in 2022
September 20,
2021
Composition of the Shareholders' Nomination
Board of Konecranes Plc
August 27, 2021
Konecranes appoints Anneli Karkovirta as Senior
Vice President, Human Resources
August 10, 2021
State Administration for Market Regulation has
approved the merger between Konecranes and
Cargotec in China
Stock exchange releases during full year 2021
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Corporate press releases during full year 2021
Date Release
August 6, 2021
Mika Vehviläinen selected as President and CEO
of the Future Company as from completion of the
merger between Konecranes and Cargotec
August 6, 2021
President and CEO Rob Smith to leave
Konecranes
July 28, 2021
Konecranes Plc: Half-year nancial report
January-June 2021
July 27, 2021 Change in Konecranes Board of Directors
July 2, 2021
The European Commission commences Phase II
review of the merger between Konecranes and
Cargotec; completion of the merger expected by
the end of H1/2022
July 1, 2021 Change in Konecranes Leadership Team
April 28, 2021
Konecranes Plc: Interim Report January-March
2021
March 30, 2021
The Board of Directors of Konecranes Plc decided
to continue the Employee Share Savings Plan
March 30, 2021
Konecranes Plc: Board of Directors' organizing
meeting
March 30, 2021
Resolutions of Konecranes Plc's Annual General
Meeting of shareholders
March 5, 2021 Konecranes Plc's Annual Report 2020 published
March 1, 2021
Notice to the Annual General Meeting of
Konecranes Plc
February 4, 2021 Konecranes Plc: Financial statement release 2020
February 3, 2021
The Board of Directors of Konecranes Plc has
resolved to establish a new performance share
plan
January 20, 2021
Proposals to the Annual General Meeting made
by Konecranes Plc's Shareholders' Nomination
Board and Certain Shareholders
• On December 14, 2021, Konecranes announced that it will
modernize four polar reactor cranes for a major US power
utility. The order was booked in December 2021.
• On December 14, 2021, Konecranes announced that it now
delivers hybrid and electric RTGs as carbon neutral.
• On December 8, 2021, Konecranes announced that it will
supply 6 cranes to Singapore's Tuas Nexus - Integrated
Waste Management Facility (IWMF). The order was booked
in August 2021.
• On November 30, 2021, Konecranes announced that a rst
Konecranes Gottwald Generation 6 Mobile Harbor Crane
will go to Italy. The order was booked in November 2021.
• On November 8, 2021, Konecranes announced that
Eurotransit ordered Konecranes RMGs for a new
intermodal terminal in Kazakhstan. The order was booked
in August 2021.
• On November 3, 2021, Konecranes announced that
LOGISTEC USA ordered two Konecranes Gottwald
Generation 6 Mobile Harbor Cranes to reduce marine
carbon footprint in Florida. The order was booked in
August 2021.
• On October 18, 2021, Konecranes announced that
Nemport in Turkey ordered a eet of Konecranes Noell
RTGs to handle growing demand. The order was booked in
July 2021.
• On October 14, 2021, Konecranes announced that its
January–September 2021 interim report will be published
on October 28, 2021.
• On September 23, 2021, Konecranes announced that an
Italian terminal operator ordered two Konecranes Gottwald
Mobile Harbor Cranes to keep pace with material handling
demand. The rst order was placed in March 2021, and
the option for a second was exercised in August.
• On September 22, 2021, Konecranes announced that its
sustainability work was rewarded with rst Gold rating
from EcoVadis.
• On September 13, 2021, Konecranes announced that it
won a 14-crane order from thyssenkrupp Marine Systems
for Kiel shipyard. The order was booked in July 2021.
• On September 9, 2021, Konecranes announced that
Goeyvaerts ordered two Konecranes Generation 6 Mobile
Harbor Cranes to meet growing rental demand. The order
was booked in July 2021.
• On August 19, 2021, Konecranes announced that
a Brazilian terminal ordered three new Konecranes
Generation 6 Mobile Harbor Cranes to increase capacity,
competitiveness. The order was booked in June 2021.
• On July 29, 2021, Konecranes announced that it won
its rst customer for EPA-approved new diesel-to-hybrid
conversion technology.
• On July 14, 2021, Konecranes announced that its January–
June 2021 half-year nancial report will be published on
July 28, 2021.
• On June 16, 2021, Konecranes announced that it launched
a new generation of energy-efcient mobile harbor cranes
as global trade accelerates.
• On May 26, 2021, Konecranes announced that it received a
$43.5 million portal jib order from the US Navy. The order
was booked in May 2021.
• On April 19, 2021, Konecranes announced that Nokia and
Edzcom will deploy a 5G SA private wireless network to
support Konecranes' advanced R&D work.
• On April 14, 2021, Konecranes announced that Georgia
Ports Authority ordered 28 Konecranes container cranes as
larger ship trafc grows. The order for 20 RTG cranes was
booked in Q1 2021, and the order for 8 STS cranes was
booked in Q4 2020.
• On April 14, 2021, Konecranes announced that its
January–March 2021 interim report will be published on
April 28, 2021.
• On April 1, 2021, Konecranes announced that an Italian
terminal ordered a Konecranes Gottwald Mobile Harbor
Crane to increase productivity and lower environmental
impact. The order was booked in Q1 2021.
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
• On March 31, 2021, Konecranes announced that the
Konecranes lift trucks now support renewable, fossil-free
diesel.
• On March 26, 2021, Konecranes announced that a Nigerian
port ordered two Konecranes Gottwald Mobile Harbor
Cranes for greater exibility to match growing demand.
The order was booked in January 2021.
• On March 25, 2021, Konecranes announced that it will
deliver 17 next-generation S-series cranes to a wind power
producer in Estonia. The order was booked in February 2021.
• On March 12, 2021, Konecranes announced that Ports
America Chesapeake ordered 15 eco-efcient hybrid RTGs
from Konecranes. The order was booked in January 2021.
• On March 10, 2021, Konecranes announced that a Danish
port ordered a Konecranes Gottwald Mobile Harbor Crane
to improve performance, meet demand. The order was
booked in Q1 2021.
• On February 26, 2021, Konecranes announced that the
Europe's largest iron ore producer LKAB picked Konecranes
for Service technology, polar precision.
• On February 9, 2021, Konecranes announced that ve
hybrid Konecranes RTGs were ordered by Norfolk Southern
in the US. This order was booked in December 2020.
• On February 5, 2021, Konecranes announced that in the
rst quarter of 2021, it won an order for two eco-efcient
Konecranes Gottwald Model 8 Cranes on Barge from China.
• On February 1, 2021, Konecranes announced that the
President and CEO commented on rst year in the role.
• On January 28, 2021, Konecranes announced that it
had closed the syndication of the merger nancing
arrangement.
• On January 21, 2021, Konecranes announced that its
nancial statement release 2020 will be published on
February 4, 2021.
• On January 18, 2021, Konecranes announced that DP
World Antwerp Gateway ordered eet of Automated
Stacking Cranes from Konecranes. This order was booked
in December 2020.
Events after the end
of the reporting period
On February 3, 2022, Konecranes gave together with
Cargotec an update on the planned merger. It was
announced that based on an ongoing dialogue with relevant
competition authorities, the remedy requirements are
more complex than expected. The dialogue with relevant
competition authorities continues, and Konecranes and
Cargotec continue to work towards the merger being
completed by the end of H1 2022. Until all merger
closing conditions are met and the deal is completed,
both companies continue to operate fully separately and
independently.
First quarter demand outlook
The worldwide demand picture remains subject to volatility
due to the COVID-19 pandemic.
In Europe and North America, the demand environment
within the industrial customer segments is on a healthy level.
In Asia-Pacic, the demand environment remains below
Europe and North America.
Global container throughput continues to be at a record high,
and long-term prospects related to global container handling
remain good overall.
Financial guidance
Konecranes expects net sales to increase in full-year 2022
compared to 2021. Konecranes expects the full-year 2022
adjusted EBITA margin to improve from 2021.
Board of Directors' proposal for
disposal of distributable funds
The parent company's non-restricted equity is
EUR 954,876,269.66, of which the net income for the year is
EUR 38,775,203.83. The Group's non-restricted equity is
EUR 1,284,729,000.
According to the Finnish Companies Act, the distributable
funds of the company are calculated based on
the parent company's non-restricted equity. For the
purpose of determining the amount of the dividend,
the Board of Directors has assessed the liquidity of the
parent company and the economic circumstances subsequent
to the end of scal year.
Based on such assessments, the Board of Directors proposes
to the Annual General Meeting to be held on March 30,
2022 that a dividend of EUR 0.88 be paid on each share
and that the remaining non-restricted equity is retained
in shareholders' equity. The proposal is unchanged from
the dividend for the year 2020 and is in accordance with
the Combination Agreement, as disclosed in the Merger
Prospectus released on December 4, 2020. The proposal
will be included in the notice to the Annual General Meeting,
which will be published during February 2022.
A PDF version of the Konecranes' full audited nancial
statements, including the report of the Board of Directors,
and corporate governance statement will be available as
PDF documents on Konecranes' website on
Monday, February 28, 2022.
Espoo, February 3, 2022
Konecranes Plc
Board of Directors
Corporate Governance Corporate Governance Statement 2021 Remuneration Risk Management Financial Review
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Financial Review 2021
Konecranes Group 2017−2021
Business development 2021 2020 2019 2018 2017
Orders received MEUR 3,175.5 2,727.3 3,167.3 3,090.3 3,007.4
Order book MEUR 2,036.8 1,715.5 1,824.3 1,715.4 1,535.8
Net sales MEUR 3,185.7 3,178.9 3,326.9 3,156.1 3,137.2
of which outside Finland MEUR 3,098.1 3,096.3 3,244.2 3,056.3 3,031.5
Export from Finland MEUR 955.2 1,075.9 969.6 777.0 655.6
Personnel on average 16,625 17,027 16,104 16,247 15,519
Personnel on December 31 16,573 16,862 16,196 16,077 16,371
Capital expenditure MEUR 49.8 42.8 39.5 35.4 35.7
as % of Net sales % 1.6% 1.3% 1.2% 1.1% 1.1%
Research and development costs MEUR 47.7 48.5 41.1 42.1 36.0
as % of Net sales % 1.5% 1.5% 1.2% 1.3% 1.1%
Protability
Net sales MEUR 3,185.7 3,178.9 3,326.9 3,156.1 3,137.2
Adjusted EBITA MEUR 312.2 260.8 275.1 257.1 216.6
as % of net sales % 9.8% 8.2% 8.3% 8.1% 6.9%
Adjusted operating prot MEUR 279.1 224.9 250.4 219.6 178.0
as % of net sales % 8.8% 7.1% 7.5% 7.0% 5.7%
Operating prot MEUR 220.0 173.8 148.7 166.2 318.7
as % of net sales % 6.9% 5.5% 4.5% 5.3% 10.2%
Income before taxes MEUR 192.5 170.3 118.5 138.7 276.0
as % of net sales % 6.0% 5.4% 3.6% 4.4% 8.8%
Net income (incl.
non-controlling interest)
MEUR 147.4 122.9 82.8 98.3 225.4
as % of net sales % 4.6% 3.9% 2.5% 3.1% 7.2%
Key gures and balance sheet 2021 2020 2019 2018 2017
Equity (incl.
non-controlling interest)
MEUR 1,360.6 1,251.1 1,246.7 1,284.1 1,278.9
Balance sheet MEUR 3,845.8 4,016.5 3,854.2 3,567.0 3,562.9
Return on equity % 11.3 9.8 6.5 7.7 26.1
Return on capital employed % 9.3 8.3 6.3 7.9 23.7
Current ratio 1.2 1.4 1.4 1.3 1.3
Equity to asset ratio % 38.9 34.1 35.4 39.8 39.2
Net working capital MEUR 424.5 337.2 446.0 410.4 324.6
Interest-bearing net debt MEUR 541.6 577.1 655.3 545.3 525.3
Gearing % 39.8 46.1 52.6 42.5 41.1
Shares in gures
Earnings per share, basic EUR 1.86 1.54 1.03 1.29 2.89
Earnings per share, diluted EUR 1.85 1.54 1.03 1.29 2.89
Equity per share EUR 17.08 15.69 15.70 16.06 15.95
Cash ow per share EUR 2.13 5.15 2.19 1.39 3.19
Dividend per share EUR 0.88* 0.88 1.20 1.20 1.20
Dividend/earnings % 47.3 57.1 116.5 93.0 41.5
Effective dividend yield % 2.5 3.1 4.4 4.5 3.1
Price/earnings 18.9 18.7 26.6 20.5 13.2
Trading low/high** EUR 28.80/42.31 14.05/33.08 24.84/38.15 25.05/42.43 31.52/42.64
Average share price** EUR 36.41 23.03 29.98 33.56 36.72
Share price on December 31** EUR 35.16 28.78 27.40 26.39 38.18
Year-end market capitalization MEUR 2,782.4 2,277.5 2,160.2 2,080.0 3,006.9
Number traded*** (1,000) 109,580 182,650 144,580 174,340 161,890
Stock turnover % 138.5 231.0 183.4 221.2 206.8
Average number of shares
outstanding, basic
(1,000) 79,134 79,078 78,836 78,811 78,273
Average number of shares
outstanding, diluted
(1,000) 79,607 79,272 78,836 78,811 78,273
Number of shares
outstanding, at end of the period
(1,000) 79,134 79,134 78,839 78,817 78,756
* The Board's proposal to the AGM
** Source: Nasdaq Helsinki
*** Source: Fidessa
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Financial Review 2021
Calculation of key gures
Operating prot (EBIT)
Sales + Other operating income − Materials, supplies and subcontracting −
Personnel cost − Depreciation and impairment − Other operating expenses
Adjusted EBITA
Operating prot (EBIT) + purchase price allocation impacts and
impairment + restructuring costs + transaction costs
Adjusted Operating prot Operating proft (EBIT) + restructuring costs + transaction costs
Return on equity (%):
Net prot for the period
X 100
Total equity (average during the period)
Return on capital
employed (%):
Income before taxes + interest paid + other nancing cost
X 100
Total amount of equity and liabilities − non-interest bearing debts
(average during the period)
Current ratio:
Current assets
Current liabilities
Equity to asset ratio (%):
Shareholders' equity
X 100
Total amount of equity and liabilities − advance payment received
Gearing (%):
Interest-bearing liabilities − liquid assets − loans receivable
X 100
Total equity
Earnings per share:
Net prot for the shareholders of the parent company
Average number of shares outstanding
Earnings per share,
diluted:
Net prot for the shareholders of the parent company
Average fully diluted number of shares outstanding
Equity per share:
Equity attributable to the shareholders of the parent company
Number of shares outstanding
Cash ow per share:
Net cash ow from operating activities
Average number of shares outstanding
Effective dividend yield
(%):
Dividend per share
X 100
Share price at the end of nancial year
Price per earnings:
Share price at the end of nancial year
Earnings per share
Net working capital:
Non interest-bearing current assets + deferred tax assets (excluding Purchase
Price Allocation) − Non interest-bearing current liabilities − deferred tax liabilities
(excluding Purchase Price Allocation) - provisions
Interest-bearing net debt:
Interest-bearing liabilities (non current and current) − cash and
cash equivalents − loans receivable (non current and current)
Year-end market
capitalization:
Number of shares outstanding multiplied by the share price
at the end of year
Average number
of personnel:
Calculated as average of number of personnel in quarters
Number of shares
outstanding:
Total number of shares - treasury shares
Operating prot % and EBITA % are used to measure business protability before
nancial items and taxes. Adjusted operating prot and Adjusted EBITA are used to
reect the underlying business performance and to enhance comparability between
nancial periods and is frequently used by management, analysts and investors.
See also note 3 for reconciliation.
Return on equity % represents the rate of return that shareholders receive on their
investments and Return on capital employed % represents relative protability
or the rate of return that has been received on capital employed requiring interest
or other return.
Current ratio, Equity to asset ratio, Interest-bearing net debt, and Gearing are
used to measure solvency and indebtedness of the Konecranes Group.
Some of Konecranes' loan agreements include a covenant measured by Gearing
percentage. Capital expenditure and Net working capital give additional information
of the cash ows and funding needs of the Konecranes Group. Share related
alternative performance measures enhance the information of equity, cash ow
and dividend attributable to the shareholders and development of the Konecranes
share value in the stock exchange.
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Financial Review 2021
Reconciliation of certain alternative
performance measures
Reconciliation of adjusted operating prot and adjusted EBITA 2021 2020
Operating prot 220.0 173.8
Restructuring costs
Employment termination costs 13.5 27.5
Impairments of non-current assets 0.3 0.0
Impairments of inventories -0.1 7.0
Other restructuring costs and income -2.3 8.0
Restructuring costs, total 11.3 42.6
Transaction costs 47.8 8.5
Adjusted operating prot 279.1 224.9
Purchase price allocation impacts 33.2 35.9
Adjusted EBITA 312.2 260.8
Reconciliation of interest-bearing net debt
Interest-bearing liabilities 865.1 1,170.8
Loans receivable -2.8 -1.8
Cash and cash equivalents -320.7 -591.9
Interest-bearing net debt 541.6 577.1
Reconciliation of net working capital
Total current assets 1,842.6 1,975.8
- Interest bearing current assets -2.8 -1.8
- Cash and cash equivalents -320.7 -591.9
Non-interest-bearing current assets 1,519.0 1,382.1
Deferred tax assets (excluding purchase price allocation) 120.2 118.5
Total current liabilities -1,585.9 -1,437.3
- Current Interest-bearing liabilities 418.0 311.1
Non-interest-bearing current liabilities -1,167.9 -1,126.2
Deferred tax liabilities (excluding purchase price allocations) -26.2 -18.9
Non-current provisions -20.7 -18.4
Net working capital 424.5 337.2
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Financial Review 2021
Consolidated statement of income − IFRS
(1,000,000 EUR)
Jan 1–Dec 31
2021
Jan 1–Dec 31
2020
Note:
3,5,6 Sales 3,185.7 3,178.9
Other operating income 11.3 10.7
7 Materials, supplies and subcontracting -1,413.0 -1,473.0
7,8 Personnel cost -1,023.5 -993.5
9 Depreciation and impairments -120.1 -130.0
7 Other operating expenses -420.4 -419.3
Operating prot 220.0 173.8
4,16 Share of associates' and joint ventures' result 0.3 21.2
10 Financial income 28.6 38.6
10 Financial expenses -56.4 -63.2
Prot before taxes 192.5 170.4
11 Taxes -45.1 -47.5
PROFIT FOR THE PERIOD 147.4 122.9
Prot for the period attributable to
Shareholders of the parent company 146.9 122.2
Non-controlling interest 0.5 0.7
12 Earnings per share, basic (EUR) 1.86 1.54
12 Earnings per share, diluted (EUR) 1.85 1.54
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
(1,000,000 EUR)
Jan 1–Dec 31
2021
Jan 1–Dec 31
2020
Note:
Prot for the period 147.4 122.9
Items that can be reclassied into
prot or loss
34 Cash ow hedges -11.0 8.1
Exchange differences on translating
foreign operations
11.3
Income tax relating to items that
can be reclassied into prot or loss
Items that cannot be reclassied
into prot or loss
28
Re-measurement gains (losses) on
dened benet plans
11.3
Income tax relating to items that
cannot be reclassied into prot or loss
-5.8 5.9
Other comprehensive income
for the period, net of tax
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD
Total comprehensive income
attributable to:
Shareholders of the parent company 172.6 100.4
Non-controlling interest 0.6 0.3
The accompanying notes form an integral part of the consolidated nancial statements.
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Financial Review 2021
Consolidated balance sheet − IFRS
EQUITY AND LIABILITIES
(1,000,000 EUR) Dec 31, 2021 Dec 31, 2020
Note:
Equity attributable to equity holders
of the parent company
Share capital 30.1 30.1
Share premium 39.3 39.3
Paid in capital 752.7 752.7
34 Fair value reserves -2.7 6.0
Translation difference 11.0 -11.6
Other reserve 65.7 58.0
Retained earnings 308.4 245.3
Net prot for the period 146.9 122.2
23
Total equity attributable to equity
holders of the parent company
16 Non-controlling interest 9.2 9.1
Total equity 1,360.6 1,251.1
Non-current liabilities
26,27,32 Interest-bearing liabilities 447.1 859.7
28 Other long-term liabilities 289.0 306.4
24 Provisions 20.7 18.4
17 Deferred tax liabilities 142.6 143.6
Total non-current liabilities 899.4 1,328.1
Current liabilities
26,27,32 Interest-bearing liabilities 418.0 311.1
6 Advance payments received 344.7 352.3
Accounts payable 255.4 201.6
24 Provisions 105.4 142.6
25
Other short-term liabilities
(non-interest-bearing)
32 Other nancial liabilities 16.9 5.5
Income tax payables 23.0 18.5
Accrued costs related to delivered
goods and services
25 Accruals 190.9 179.2
Total current liabilities 1,585.8 1,437.3
Total liabilities 2,485.2 2,765.4
TOTAL EQUITY AND LIABILITIES 3,845.8 4,016.5
The accompanying notes form an integral part of the consolidated nancial statements.
ASSETS
(1,000,000 EUR) Dec 31, 2021 Dec 31, 2020
Note:
Non-current assets
13 Goodwill 1,022.1 1,016.7
14 Intangible assets 503.1 536.0
15 Property, plant and equipment 339.3 341.8
Advance payments and construction
in progress
16
Investments accounted for using
the equity method
Other non-current assets 0.8 0.8
17 Deferred tax assets 120.2 118.9
Total non-current assets 2,003.2 2,040.7
Current assets
18 Inventories 726.4 644.8
19 Accounts receivable 492.1 489.2
20 Other receivables 28.1 30.9
Income tax receivables 16.2 13.4
6
Contract asset arising from percentage
of completion method
32 Other nancial assets 3.6 21.2
21 Deferred assets 94.2 82.1
22 Cash and cash equivalents 320.7 591.9
Total current assets 1,842.6 1,975.8
TOTAL ASSETS 3,845.8 4,016.5
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Financial Review 2021
Consolidated statement of changes in equity − IFRS
Equity attributable to equity holders of the parent company
(1,000,000 EUR) Share capital
Share
premium
account
Paid in
capital
Cash ow
hedges
Translation
difference
Other
reserve
Retained
earnings Total
Non-
controlling
interest
Total
equity
Balance at January 1, 2021 30.1 39.3 752.7 6.0 -11.7 58.0 367.6 1,242.0 9.1 1,251.1
Dividends paid to equity holders -69.6 -69.6 -0.2 -69.8
Equity-settled share based
payments (note 29)
Acquisitions -1.3 -1.3 -0.3 -1.6
Prot for the period 146.9 146.9 0.5 147.4
Other comprehensive income -8.7 22.6 11.8 25.7 0.1 25.8
Total comprehensive income -8.7 22.6 158.7 172.6 0.6 173.2
Balance at December 31, 2021 30.1 39.3 752.7 -2.7 10.9 65.7 455.4 1,351.4 9.2 1,360.6
Balance at January 1, 2020 30.1 39.3 752.7 -0.5 3.7 58.8 353.4 1,237.5 9.2 1,246.7
Dividends paid to equity holders -95.0 -95.0 -0.3 -95.3
Equity-settled share based
payments (note 29)
-0.8 0.0 -0.8 -0.8
Acquisitions -0.1 -0.1 -0.1 -0.2
Disposals 0.0 0.0 0.0 0.0
Prot for the period 122.2 122.2 0.7 122.9
Other comprehensive income 6.5 -15.4 -12.9 -21.8 -0.4 -22.2
Total comprehensive income 6.5 -15.4 109.3 100.4 0.3 100.7
Balance at December 31, 2020 30.1 39.3 752.7 6.0 -11.7 58.0 367.6 1,242.0 9.1 1,251.1
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Financial Review 2021
Consolidated cash ow statement − IFRS
(1,000,000 EUR)
Jan 1−Dec 31
2021
Jan 1−Dec 31
2020
Note:
Cash ow from operating activities
Prot for the period 147.4 122.9
Adjustments to net prot for the period
Taxes 45.1 47.5
Financial income and expenses 27.8 24.6
Share of associates' and joint ventures'
result
-0.3 -21.2
Depreciation and impairments 120.1 130.0
Prots and losses on sale of xed assets -4.2 -2.2
Other adjustments 10.1 0.8
Operating income before change
in net working capital
Change in interest-free current receivables -28.0 115.7
Change in inventories -65.3 42.4
Change in interest-free current liabilities -5.7 -33.1
Change in net working capital -99.0 125.0
Cash ow from operations before
nancing items and taxes
10 Interest received 13.1 21.9
10 Interest paid -28.1 -36.8
10 Other nancial income and expenses -16.2 20.7
11 Income taxes paid -47.4 -26.1
Financing items and taxes -78.6 -20.3
NET CASH FROM OPERATING ACTIVITIES 168.4 407.1
(1,000,000 EUR)
Jan 1−Dec 31
2021
Jan 1−Dec 31
2020
Note:
Cash ow from investing activities
4 Acquisition of Group companies, net of cash 0.0 -124.1
Capital expenditures -40.5 -43.8
Proceeds from sale of property, plant
and equipment and other
NET CASH USED IN INVESTING
ACTIVITIES
-30.7 -165.1
Cash ow before nancing activities 137.7 242.0
Cash ow from nancing activities
Proceeds from non-current borrowings 0.0 151.8
Repayments of non-current borrowings -5.6 -5.4
Repayments of lease liability -42.6 -42.5
Proceeds from (+), payments of (-) current
borrowings
-296.4 -20.0
Change in loans receivable -1.0 -1.0
Acquired non-controlling interest -1.6 0.0
Dividends paid to equity holders
of the parent company
-69.6 -95.0
Dividends paid to non-controlling interests -0.2 -0.3
NET CASH USED IN FINANCING
ACTIVITIES
-417.0 -12.4
Translation differences in cash 8.1 -15.9
CHANGE OF CASH AND CASH
EQUIVALENTS
-271.2 213.7
Cash and cash equivalents at beginning
of period
22 Cash and cash equivalents at end of period 320.7 591.9
CHANGE OF CASH AND CASH
EQUIVALENTS
-271.2 213.7
The effect of changes in exchange rates has been eliminated by converting the beginning balance at the rates
current on the last day of the year.
The accompanying notes form an integral part of the consolidated nancial statements.
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Financial Review 2021
1. Corporate information
Finland and domiciled with its principal place of business in
2. Accounting principles
2.1. Basis of preparation
The consolidated nancial statements of K onecranes Plc have
been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU.
The consolidated nancial statements have been prepared
on a historical cost basis, except for items that are required
by IFRS to be measured at fair value, principally certain
nancial instruments.
The consolidated nancial statements including notes thereto
are presented in millions of euros and all values are rounded
to the nearest million (€000,000) except when
otherwise indicated.
Due to the rounding, some totals might differ from the sum
of individual gures as calculations are done originally
in thousands of euros.
The nancial statements were approved for issuance
by the Board of Directors on February 2, 2022.
Principles of consolidation
The consolidated nancial statements comprise
the consolidated balance sheet of Konecr anes Plc and
its subsidiaries as at December 31, 2021 and 2020
and the consolidated statements of income and cash
ows for the periods ended December 31, 2021 and 2020.
Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through
its power over the investee. Specically, the Group controls
an investee if, and only if, the Group has:
• Power over the investee (i.e., existing rights that give
it the current ability to direct the relevant activities
of the investee)
• Exposure, or rights, to variable returns from
its involvement with the investee
• The ability to use its power over the investee
to affect its returns
Generally, there is a presumption that majority of voting
rights result in control. To support this presumption and
when the Group has less than majority of the voting or
similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power
over an investee, including:
• The contractual arrangement with the other vote
holders of the investee
• Rights arising from other contractual arrangements
• The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee
if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation
of a subsidiary begins when the Group obtains control over
the subsidiary and ceases when the Group loses control
of the subsidiary. Assets, liabilities, income and expenses
of a subsidiary acquired or disposed of during the year are
included in the consolidated nancial statements from the
date the Group gains control until the date the Group ceases
to control the subsidiary.
Prot or loss and each component of other comprehensive
income (OCI) are attributed to the equity holders of the
parent of the Group and to the non-controlling interests,
even if this results in the non-controlling interests having
a decit balance. When necessary, adjustments are made
to the nancial statements of subsidiaries to bring their
accounting policies into line with the Group's accounting
policies. All intra-group assets and liabilities, equity, income,
expenses and cash ows relating to transactions between
members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without
a loss of control, is accounted for as an equity transaction.
Notes to the consolidated nancial statements
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If the Group loses control over a subsidiary, it derecognizes
the related assets (including goodwill), liabilities, non-
controlling interest and other components of equity while
any resultant gain or loss is recognized in prot or loss.
Any investment retained is recognized at fair value.
Investment in associates and joint ventures
An associate is an entity over which the Group has
signicant inuence. Signicant inuence is the power
to participate in the nancial and operating policy decisions
of the investee but is not control or joint control over
those policies.
A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control
of an arrangement, which exists only when decisions
about the relevant activities require unanimous
consent of the parties sharing control.
The Group's investments in its associates and joint ventures
are accounted for using the equity method. Under this
method, the consolidated nancial statements show the
Group's investment in and share of net assets of the
associate or joint venture. Any premium over net assets
paid to acquire an interest in an associate or joint
venture is recognized as goodwill within the same line
as the underlying investment. The statement of prot
or loss reects the Group's share of the results of
operations of the associate or joint venture. Any change
in OCI of those investees is presented as part of the Group's
OCI. In addition, when there has been a change recognized
directly in the equity of the associate or joint venture, the
Group recognizes its share of any changes, when applicable,
in the statement of changes in equity. Unrealized gains
and losses resulting from transactions between the Group
and the associate or joint venture are eliminated to the
extent of the interest in the associate or joint venture.
After application of the equity method, the Group
determines whether it is necessary to recognize an
impairment loss on its investment in its associate or joint
venture. At each reporting date, the Group determines
whether there is objective evidence that the investment
in the associate or joint venture is impaired. If there is such
evidence, the Group calculates the amount of impairment
as the difference between the recoverable amount of the
associate or joint venture and its carrying value, and then
recognizes the loss as share of prot of an associate and
a joint venture in the statement of prot or loss.
2.2. Use of estimates and judgments
The preparation of the nancial statements in accordance
with IFRS requires management to make estimates and
judgments that affect the valuation of reported assets
and liabilities and other information, such as contingent
liabilities and recognition of income and expenses in
the statement of income. These assumptions, estimates
and judgments are based on management's historical
experience, best knowledge about the events and other
factors, such as expectations on future events, which
the Company assess to be reasonable in the given
circumstances. Although these estimates and judgments
are based on the management's best understanding of
current events and circumstances, actual results may differ
from the estimates. Changes in estimates and assumptions
are recognized in the nancial period the estimate or
assumption is changed.
The most important items in the consolidated nancial
statements, which require management's estimates and
that involve complex and subjective judgments and the
use of assumptions, some of which may be for matters
that are inherently uncertain and susceptible to change
are impairment testing, recognition of deferred taxes,
measurement of the fair value of assets and actuarial
assumptions in dened benet plans, and percentage
of completion revenue recognition in long term projects.
Impairment testing
The recoverable amount for goodwill has been determined
based on value in use of the relevant cash generating unit
to which the goodwill is allocated. The recoverable amounts
of all material intangible assets and property, plant and
equipment have also been based on their value in use.
The impairment testing of goodwill is based on numerous
judgmental estimates of the present value of the cash ows
which effect the valuation of the cash generating units (CGU)
pertaining to the goodwill. Cash ow forecasts are
made based on CGU specic historical data, order book,
the current market situation and industry specic information
of the future growth possibilities. These assumptions are
reviewed annually as part of management's budgeting and
strategic planning cycles and can be subject to signicant
adjustment as arising from the development of the global
economy, pressure from competitors' products as well as
changes in raw material prices and operating expenses.
The value of the benets and savings from the efciency
improvement programs already announced and included
in certain cash ow estimates are also subjective and based
on management's best estimate of the impact. The fair value
of the CGUs is determined using a derived weighted average
cost of capital as the rate to discount estimated future cash
ows. The discount rate used may not be indicative of actual
rates obtained in the markets in the future. See note 13.
Business Combinations
Acquisitions of subsidiaries are accounted for using
the acquisition method according to which the acquired
company's identiable assets, liabilities and contingent
liabilities are measured at fair value on the date of
acquisition. The excess of the consideration transferred
for the business combination over the acquirer's interest
in the net fair value of the identiable assets, liabilities
and contingent liabilities is recorded as goodwill.
The measurement of fair value of the acquired net assets
is based on market value of similar assets (property,
plant and equipment), or an estimate of expected cash
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ows (intangible assets). The valuation, which is based
on prevailing repurchase value, expected cash ows or
estimated sales price, requires management judgement,
estimates and assumptions. See note 4.
Recognition of deferred taxes
The ultimate realization of deferred tax assets is dependent
upon the generation of future taxable income during the
periods in which those temporary differences become
deductible or in which tax losses can be utilized. The tax
effect of unused tax losses is recognized as a deferred tax
asset when it becomes probable that the tax losses will
be utilized. In making assessments regarding deferred tax
assets, management considers the scheduled reversal of
deferred tax liabilities, projected future taxable income and
tax planning strategies. The actual current tax exposure is
estimated together with assessing temporary differences
resulting from differing treatment of items, such as
depreciation, provisions and accruals, for tax and accounting
purposes. When recording the deferred tax assets judgment
have been based on the estimates of the taxable income in
each subsidiary and country in which Konecranes operates,
and the period over which the deferred tax assets will be
recoverable based on the estimated future taxable income
and planned tax strategies to utilize these assets. The
amount of deferred tax assets considered realizable could
however be reduced in subsequent years if estimates of
future taxable income during their carry forward periods are
reduced, or rulings by the tax authorities are unfavourable.
Estimates are therefore subject to change due to both
market related and tax authorities related uncertainties, as
well as Konecranes' own future decision matters such as
restructuring. Konecranes is unable to accurately quantify the
future adjustments to deferred income tax expense that may
occur as a result of these uncertainties. See note 17.
Actuarial assumptions in dened benet plans
The net pension liability and expense for dened benet
plans is based on various actuarial assumptions such as the
assumed discount rate, expected development of salaries and
pensions and mortality rates. Signicant differences between
assumptions and actual experience, or signicant changes in
assumptions, may materially affect the pension obligations.
The effects of actual results differing from assumptions and
the changing of assumptions are included in Remeasurement
gains/loss on dened benet plans in other comprehensive
income. Discount rates are determined annually based on
changes in long-term, high quality corporate bond yields.
Decreases in the discount rates results in an increase in the
dened benet obligation and in pension costs. Conversely,
an increase in the discount rate results in a decrease in the
dened benet obligation and in pension costs. Increases
and decreases in mortality rates have an inverse impact
on the dened benet obligation and pension costs. Increases
and decreases in salary and pension growth rates have a
direct correlating impact on the dened benet obligation and
pension costs.
The assumed discount rate, which is based on rates
observed at the end of the preceding nancial year, may not
be indicative of actual rates realized. The actual development
for salaries and pensions may not reect the estimated future
development due to the uncertainty of the global economy
and various other factors. Konecranes uses generational
mortality tables to estimate probable future mortality
improvements. These tables assume that the trend of
increasing life expectancy will continue, resulting in pension
benet payments to younger members being likely to be paid
for longer time periods than older members' pensions, given
that assumed retirement ages are those dened in the rules
of each plan.
The funded status, which can increase or decrease based
on the performance of the nancial markets or changes in
our assumptions, does not represent a mandatory short-
term cash obligation. Instead, the funded status of a dened
benet pension plan is the difference between the dened
benet obligation and the fair value of the plan assets.
See note 28.
Revenue recognition over time in long-term projects
Konecranes applies the percentage of completion method
for recognizing revenue over time from certain long-term
large crane projects and modernizations in accordance with
IFRS 15 Revenue Recognition. The percentage of completion
is based on the cost-to-cost method. Under this method,
progress of contracts is measured by actual costs incurred
in relation to management's best estimate of total estimated
costs at completion, which are reviewed and updated
routinely for contracts in progress. The cumulative effect of
any change in estimate is recorded in the period in which the
change in estimate is determined.
The percentage-of-completion method of accounting involves
the use of assumptions and projections, principally relating
to future material, labor and project-related overhead costs.
As a consequence, there is a risk that total contract costs
will exceed those originally estimated and the margin will
decrease, or the contract may become unprotable. This risk
increases as the duration of a contract increases because
there is a higher probability that the circumstances upon
the estimates were originally based will change, resulting
in increased costs that may not be recoverable. Factors
that could cause costs to increase include: unanticipated
technical problems with equipment supplied or developed by
us which may require us to incur additional costs to remedy,
changes in the cost of components, materials or labour,
project modications creating unanticipated costs, suppliers'
or subcontractors' failure to perform, and delays caused by
unexpected conditions or events. By recognizing changes in
estimates cumulatively, recorded revenue and costs to date
reect the current estimates at the stage of completion for
each project. Additionally, losses on long-term contracts are
recognized in the period when they are identied and are
based upon the anticipated excess of contract costs over the
related contract revenues.
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COVID-19
The impact of the COVID-19 pandemic on estimates in the
nancial reporting rely on management's best judgement.
The Group has assessed the impact of COVID-19 to goodwill,
other intangible and tangible assets as part of the impairment
testing process, dened benet plans, valuation of inventory,
recoverability of deferred tax assets and collectability of
account receivables as part of the regular reporting process.
Signicant judgement has been used for the cash ows used
for calculation of recoverable amounts of cash generating
units in impairment testing. The nancial impact of the
COVID-19 outbreak will depend on the duration and severity
of the virus in different geographical areas. Therefore,
estimates and assumptions for market development, growth,
and other signicant factors used in the impairment testing
are based on management's best estimates under the current
circumstances. See note 13.
Konecranes reviews and estimates its customer credit risks
related to accounts receivable and ongoing projects as part
of normal reporting process. Provision for doubtful accounts
has been prepared based on the historical credit loss pattern,
but it is also adjusted case by case with forward-looking risk
positions. There has not been any signicant change
in payment delays related to customer receivables, but
credit risks might increase in case the COVID-19 pandemic
continues still for longer period. To limit this risk, the Group
applies a conservative credit policy towards customers.
It is Konecranes' practice to review customers carefully
before entering formal business relationships and to require
credit reports from new customers. Customer credit risks
are mitigated with advance payments, letters of credits,
payment guarantees and credit insurance where applicable.
See note 19.
Although COVID-19 has impacted the delays in deliveries and
has led to some increase in inventory levels, Konecranes does
not see material increase of the risk for obsolete inventory
values. There have not been major order cancellations, but
rather the orders and deliveries have been postponed. The
risks related to work in progress and contract assets are also
mitigated with advance payments collected from customers.
The risk of excess inventories has also been limited through
efcient demand-supply balancing.
2.3. Summary of signicant accounting policies
Revenue recognition
Revenue is recognized at an amount of consideration to
which the Group expects to be entitled in exchange for
transferring promised goods or services to a customer and
to the extent that it is probable that the economic benets
will ow to the Company, that revenue can be reliably
measured, and that collectability is reasonably assured.
Revenue is measured at the fair value of the consideration
received or receivable. The creditworthiness of the buyer
is assessed before engaging into a sale. However, if a risk
of non-payment arises after revenue recognition, a provision
for non-collectability is established.
The company recognizes revenue when it satises an
identied performance obligation by transferring promised
goods or service to the customer. Goods and services are
generally considered to be transferred when the customer
obtains the control to it. Control means that the customer
can direct the use of and obtain benet from the good and
service and also prevent others from directing the use of and
receiving the benets from them. Thus, customer has sole
possession of the right to use the good or service for the
remainder of its economic life or to consume the good
or service in its own operations.
The transaction price is usually xed but may also include
variable considerations such as volume or cash discounts
or penalties. Variable consideration is included in the
revenue only to the extent that it is highly probable that
the amount will not be subject of signicant reversal when
the uncertainty is resolved. The variable considerations are
estimated using the most likely value method if not yet
realized in the end of the reporting period. If the contract
is separated in to more than one performance obligation,
Konecranes allocates the total transaction price to each
performance obligation based on the estimated relative
standalone selling prices of the promised goods or services
in each performance obligation or if the standalone selling
prices do not exist, Konecranes typically uses the expected
cost plus a margin approach to estimate the standalone
selling price.
Nature of goods and services and timing
of satisfaction of performance obligations
and signicant payment terms
Service segment principally generates revenue from providing
maintenance and consultative services as well as spare
parts for all types and makes of industrial cranes and hoists.
Service also provides modernizations which are complete
transformations of existing cranes as an alternative to
replacing them. Revenue from services is recognized when
the outcome of the transaction can be estimated reliably
and by customer acknowledgement for the completion of
the service work or by reference to the stage of completion
based on services performed at the end of the reporting
period if it can be measured. The assessment of the stage
of completion is dependent on the nature of the contract
but will generally be based on costs incurred to the extent
these relate to services performed up to the reporting date.
In modernization projects, typically the customer controls
the asset that is enhanced, thus the revenue is recognized
over time according to the percentage of completion
method. In spare parts business, the transfer of control and
revenue recognition usually takes place either when goods
are shipped or made available to the buyer for shipment,
depending on the terms of the contract or when the
customer has accepted the delivery. Usually customers pay
according to agreed payment terms after the services and
products have been delivered. Sometimes it is required that
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the payment is done in advance. In these cases, for example
in annual maintenance contracts, the payment is periodized
to meet the revenue recognition in accordance with the
delivery of services and goods. In modernization projects,
the customers are typically required to make advance
payments according to the milestones dened in the
modernization project contract.
Industrial Equipment segment generates revenue from
hoists, cranes and material handling solutions for a
wide range of customers. For standard equipment and
components, the revenue is recognized when goods are
shipped or made available to the buyer for shipment,
depending on the terms of the contract or when the
customer has accepted the delivery, which is typically
an installed crane. The revenue from large, engineered
crane projects is recognized over time according to the
percentage of completion (POC) method, as those contracts
are specically negotiated for the construction of an asset
or a combination of assets that are closely interrelated or
interdependent in terms of their design, technology and
function or their ultimate purpose or use. Konecranes is
then also entitled to an amount that at least compensates
the entity for performance completed to date even if the
customer can terminate the contract for the reasons other
than our failure to perform as promised. In general, the
warranty period for cranes is two years for which Group
records a warranty provision based on historical data.
The revenue for extended warranty is recognized over
the extended warranty period. In crane projects, the
customers are typically required to make advance payments
in accordance with the milestones dened in the crane
project contract.
Port Solutions segment generates revenue from container
handling equipment, shipyard equipment, mobile harbor
cranes, heavy-duty lift-trucks and Port Solution related
software. All equipment deliveries are supported by a
complete range of services. Most of the container handling
and shipyard equipment are tailored and engineered to
the customer needs, so the revenue from these projects
is recognized over time according to the percentage of
completion (POC) method, as those contracts are specically
negotiated for the construction of an asset or a combination
of assets that are closely interrelated or interdependent
in terms of their design, technology and function or their
ultimate purpose or use. Konecranes is then also entitled
to an amount that at least compensates the entity for
performance completed to date even if the customer can
terminate the contract for the reasons other than our
failure to perform as promised. The revenue of lift trucks
and standard ports equipment is recognized when goods
are shipped or made available to the buyer for shipment,
depending on the terms of the contract or when the
customer has accepted the delivery. The general warranty
period for ports equipment differs to some extent depending
on the components used in the projects. For general
warranty, the Group records a warranty provision based on
historical data. The revenue for possible extended warranty
is recognized over the extended warranty period. In Port
Solutions projects, the customers are typically required to
make advance payments according to the milestones dened
in the project contract.
Measurement of stage of completion for performance
obligations satised over time
The stage of completion of a contract is determined
by the proportion that the contract costs incurred for the
work performed to date bear to the estimated total contract
costs (cost-to-cost method) at completion. This depicts best
the transfer of control to the customer, which occurs as we
incur costs on our contracts. When the nal outcome of
a project cannot be reliably determined, the costs arising
from the project are expensed in the same reporting period
in which they occur, but the revenue from the project is
recorded only to the extent that the Group will receive an
amount corresponding to actual costs. An expected loss on
a contract is recognized immediately in statement of income.
Revenue in respect of variations to the contract scope
and claims is recognized when it is probable that it will be
received and is capable of being measured reliably.
Research and development costs
Research costs are expensed as incurred. Development
expenditures on an individual project are recognized as an
intangible asset when the Group can demonstrate:
• The technical feasibility of completing the intangible asset
so that it will be available for use or sale.
• Its intention to complete and its ability to use
or sell the asset.
• How the asset will generate future economic benets.
• The availability of resources to complete the asset.
• The ability to reliably measure the expenditure
during development.
Amortization of capitalized development costs begins when
the development is complete and the asset is available
for use.
Adjusted EBITA (alternative performance measure)
The Group uses adjusted EBITA as alternative performance
measure to reect the underlying business performance
and to enhance comparability between nancial periods.
It is frequently used by management, analysts and
investors. Adjusted operating prot before amortization
and impairment of purchase price allocations (a non-
GAAP measure) represents earnings from continuing
operations before income taxes (a GAAP measure),
excluding restructuring, transaction and restructuring related
asset impairment costs as well as other adjusting items,
amortization and impairment of purchase price allocations
and nancial income and expense. Alternative Performance
measures should not be considered as a substitute for
measures of performance in accordance with the IFRS.
See also note 3.
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Earnings per share
Basic earnings per share are computed by dividing net
income from continuing operations and net income
from discontinued operations all attributable to ordinary
shareholders by the weighted average number of shares
outstanding during the year. Diluted earnings per share
are calculated by assuming conversion or exercise of all
potentially dilutive share-based payment plans.
Dividend distribution
The company recognizes a liability to make dividend
distributions to equity holders when the distribution is
approved by the shareholders. A corresponding amount is
recognized directly in equity.
Employee benets
Konecranes companies have various pension plans in
accordance with local conditions and practices. Pensions
are generally managed for the Group companies by outside
pension insurance companies or by similar arrangements.
These pension plans are classied either as dened
contribution or dened benet plans. Under dened
contribution plans, expenses are recognized for the period
the contribution relates to. The Group has no legal or
constructive obligation to pay further contributions if the
fund does not hold sufcient assets to pay employee
benets. The Konecranes Group accounts for the Finnish
system under the Employees' Pensions Act (TyEL) within
insurance system as a dened contribution plan.
Under dened benet plans, a liability recognized in the
balance sheet equals to the net of the present value of
the dened benet obligation (calculated using the
Projected Unit Credit Method) less the fair value of the
plan assets at the balance sheet date. Actuarial gains
and losses are recognized in the consolidated statement
of other comprehensive income as remeasurement items
when they occur. Remeasurement recorded in other
comprehensive income is not recycled. Past service cost
is recognized in the statement of prot or loss in the
period of plan amendment. Net interest is calculated by
applying the discount rate to the net dened liability or
asset. Independent actuaries calculate the dened benet
obligation by applying the Projected Unit Credit Method.
The Group presents service cost, past-service cost, gains
and losses on curtailments and settlements and net
interest expense or income as Personnel cost – Pension
costs: Dened benet plans in the statement of income
(see Note 8).
A liability for termination benet is recognized at the earliest
when the entity can no longer withdraw the offer of the
termination benet and when the entity recognizes any
related restructuring costs.
Share-based payments
Employees (including senior executives) of the Group
and its subsidiaries receive remuneration in the
form of share-based payments, whereby employees
render services as consideration for equity instruments
(equity-settled transactions) or receive settlement in
cash (cash-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model.
That cost is recognized, together with a corresponding
increase in other reserves in equity, over the period in which
the performance and/or service conditions are fullled in
Personnel cost – Other personnel expense in the statement
of income. The cumulative expense recognized for equity-
settled transactions at each reporting date until the vesting
date reects the extent to which the vesting period has
expired and the Group's best estimate of the number of
equity instruments that will ultimately vest. The expense
or credit recorded in the statement of income for a period
represents the movement in cumulative expense recognized
as at the beginning and end of that period.
No expense is recognized for awards that do not ultimately
vest, except for equity-settled transactions for which vesting
is conditional upon a market or non-vesting condition. These
are treated as vesting irrespective of whether or not the
market or non-vesting condition is satised, provided that all
other performance and/or service conditions are satised.
When the terms of an equity-settled award are modied,
the minimum expense recognized is the expense had
the terms not been modied, if the original terms of the
award are met. An additional expense is recognized for any
modication that increases the total fair value of the share-
based payment transaction or is otherwise benecial to
the employee as measured at the date of modication.
The tax laws or regulations usually obliges Konecranes
to withhold an amount for an employee's tax obligation
associated with a share-based payment and transfer that
amount, normally in cash, to the tax authority on the
employee's behalf. To full this obligation, the terms of
the share-based payment arrangement permits Konecranes
to withhold the number of equity instruments equal to the
monetary value of the employee's tax obligation from the
total number of equity instruments that otherwise would
have been issued to the employee upon vesting of the
share-based payment. This share-based payment
arrangement with a net settlement feature is classied
in its entirety as an equity-settled share-based payment
transaction and the payment made shall be accounted
for as a deduction from equity for the shares withheld.
Cash-settled transactions
The cost of cash-settled transactions, which is usually
related to the additional employee social cost or taxes
of the share-based payments, is measured initially at fair
value at the grant date using a binomial model. This fair
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value is expensed over the period until the vesting date
with recognition of a corresponding liability. The liability is
remeasured to fair value at each reporting date up to, and
including the settlement date, with changes in fair value
recognized in Personnel cost – Other personnel expenses
in the statement of income (see Note 8).
Foreign currency translation
The Group's consolidated nancial statements are reported
in euros, which is the Group's presentation currency. Each
entity in the Group determines its own functional currency
and items included in the nancial statements of each entity
are measured using that functional currency.
Transactions and balances
Transactions in currencies other than the entity's functional
currency (foreign currencies) are recognized by the Group
entities at their respective functional currency rates prevailing
at the date of the transaction. At the end of each reporting
period, foreign currency monetary items are retranslated
at the functional currency spot exchange rate in effect at
the reporting date. The resulting foreign currency exchange
differences are recorded in the statement of income with the
exception of differences that arise on monetary items that
provide an effective hedge for a net investment in a foreign
operation (such as intragroup loans where settlement is
neither planned nor likely to occur in the foreseeable future).
These are recognized in other comprehensive income until
the disposal of the net investment, at which time they are
recognized in the income statement. Tax charges and credits
attributable to exchange differences on those monetary
items are also recorded in other comprehensive income.
Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rates as of the date of the initial transaction. Non-monetary
items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair
value is determined.
Foreign operations
The assets and liabilities of foreign operations are translated
into euros at the rate of exchange prevailing at the
reporting date and their income statements are translated
at average exchange rates for the period. The exchange
differences arising on the translation are recognized in other
comprehensive income. On disposal of a foreign operation,
the component of other comprehensive income relating to
that particular foreign operation is recognized in the income
statement.
Any goodwill arising on the acquisition of a foreign operation
and any fair value adjustments to the carrying amounts of
assets and liabilities arising on the acquisition are treated as
assets and liabilities of the foreign operation and translated
at the closing rate.
Income tax
Taxes shown in the consolidated statement of income include
income taxes to be paid on the basis of local tax legislations,
tax adjustments from previous years as well as the effect of
the annual change in the deferred tax balances. Taxes are
calculated using rates enacted or substantively enacted at
the balance sheet date.
Deferred tax liabilities and deferred tax assets are calculated
on all temporary differences arising between the tax basis
and the book value of assets and liabilities. Deferred tax is not
recognized for non-deductible goodwill on initial recognition
and temporary differences in investments in subsidiaries to the
extent that they probably will not reverse in the foreseeable
future. The main temporary differences arise from unused tax
losses, depreciation differences, provisions, dened benet
pension plans, inter-company inventory margin and derivative
nancial instruments. In connection with an acquisition, the
Group records provisions for deferred taxes on the difference
between the fair values of the net assets acquired and their
tax bases. A deferred tax asset is recognized to the extent
that it is probable that it can be utilized.
Business combinations
Acquisitions of subsidiaries are accounted for using
the acquisition method according to which the acquired
company's identiable assets, liabilities and contingent
liabilities are measured at fair value on the date of
acquisition. The excess of the consideration transferred
for the business combination over the acquirer's interest
in the net fair value of the identiable assets, liabilities
and contingent liabilities is recorded as goodwill. For each
acquisition, the non-controlling interest in the acquiree,
if any, can be recognized either at fair value or at the non-
controlling interest's proportionate share of the acquiree's
net assets. If the purchase consideration is less than the fair
value of the Group's share of the net assets acquired, the
difference is recognized directly through the prot and loss.
Direct acquisition transaction costs are expensed
as incurred.
Assets held for sale
The Group classies non-current assets and disposal
groups as held for sale if their carrying amounts will
be recovered principally through a disposal rather than
through the continuing use. Such non-current assets and
disposal groups classied as held for sale are measured
at the lower of their carrying amount and fair value
less costs to sell.
The criteria for held for sale classication is regarded as
met only when the sale is highly probable, and the asset
or disposal group is available for immediate disposal in its
present condition. Actions required to complete the disposal
should indicate that it is unlikely that signicant changes to
the disposal will be made or that the decision to dispose
will be withdrawn. Management must be committed
to the disposal expected within one year from the date
of the classication.
Property, plant and equipment and intangible assets are not
depreciated or amortized once classied as held for sale.
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Intangible assets
Intangible assets include service contracts, patents and
trademarks as well as software licenses and implementation
costs. Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the
date of acquisition. Intangible assets with denite useful
life are amortized on the straight-line basis over expected
useful lives, which may vary from 5 to 20 years with service
contracts and patents and trademarks and from 4 to 7 years
with software licenses. They are assessed for impairment
whenever there is an indication that the intangible asset
may be impaired.
Intangible assets with indenite useful life are not amortized,
but they are tested annually for impairment in a manner
equivalent to that for testing goodwill. The assessment
of indenite life is reviewed annually to determine whether
the indenite life continues to be supportable. If not, the
change in useful life from indenite to nite is made on a
prospective basis.
Impairment testing of goodwill
Goodwill acquired in a business combination is tested for
impairment annually or whenever events or changes in
circumstances indicate that the carrying amount may not be
recoverable. For the purpose of impairment testing, goodwill
acquired in a business combination is, from the acquisition
date, allocated to each of the Group's cash generating units
that are expected to benet from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. If the carrying amount for a CGU
exceeds its recoverable amount, an impairment loss equal to
the difference is recognized. Konecranes uses a discounted
cash ow analysis to assess the fair value of goodwill. In
assessing value-in-use, the estimated future cash ows are
discounted to their present value using a pre-tax discount rate
that reects current market assessments of the time value of
money and the risks specic to the asset. The Group bases
its impairment calculation on detailed budgets and forecast
calculations, which are prepared separately for each of the
Group's CGUs to which the individual assets are allocated.
These budgets and forecast calculations cover a period of ve
years. A previously recognized impairment loss on goodwill
is not reversed even if there is a signicant improvement in
circumstances having initially caused the impairment.
Property, plant and equipment
Property, plant and equipment are stated at cost less
accumulated depreciation and any impairment losses.
Depreciation is recorded on a straight-line basis over the
estimated useful economic life of the assets as follows:
• Buildings 10–40 years
• Machinery and equipment 3–10 years
No depreciation is recorded for land.
Improvements made for existing property, plant and
equipment that will provide future economic benet are
capitalized and depreciated over the remaining useful life of
the asset.
For leased right-of-use assets, please see the accounting
principles section for leases.
Impairment of assets subject to amortization
and depreciation
The carrying values of intangible assets subject to
amortization, property, plant and equipment and investments
in associates and joint ventures are reviewed for impairment
whenever events and changes in circumstances indicate that
the carrying amount of an asset may not be recoverable.
If such an indication exists, the recoverable amount of the
assets will be estimated.
The recoverable amount is the higher of the assets fair value
less selling costs and value in use which is the present value
of the cash ows expected from the asset's use and eventual
disposal. An impairment loss is recognized in the statement of
income when the recoverable amount of an asset is less than
its carrying amount. Impairment losses on these assets are
reversed if their recoverable amounts subsequently increase.
Valuation of inventories
Raw materials and supplies are valued at the acquisition cost
or, if lower, at the net realizable value. Net realizable value is
the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs
necessary to make the sale. Semi-manufactured goods are
valued at variable production costs including a share of
production overheads based on normal capacity. Work in
progress of uncompleted orders includes direct labor and
material costs, as well as a proportion of overhead costs
related to production and installation. Raw materials and
supplies are valued using the rst-in, rst-out (FIFO) basis
or weighted average cost. The inventory stock obsolescence
provision is based on the best estimate of slow-moving and
obsolete inventory at the balance sheet date. The estimates
are based on frequent review and evaluation of inventory
ageing and composition.
Account and other receivables
Account and other receivables are initially recorded at
fair value after which they are subsequently measured at
amortized cost. Account receivables represent the Group's
right to an amount of consideration that is unconditional
(i.e. only the passage of time is required before payment of
the consideration is due). The provision for doubtful accounts
is estimated based on the Group's historical credit loss
experience adjusted with current conditions and reasonable
and supportable forecasts about the future. The effect is
recognized in the statement of income.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and
call deposits with banks and other liquid investments with
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original maturities of three months or less. Bank overdrafts
are included in current interest-bearing liabilities.
Fair value measurement
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants. The Group categorizes assets
and liabilities measured at fair value into one of three levels
depending on the ability to observe inputs employed in their
measurement. Level 1 inputs are quoted prices in active
markets for identical assets or liabilities. Level 2 inputs are
inputs that are observable, either directly or indirectly, other
than quoted prices included within level 1 for the asset or
liability. Level 3 inputs are unobservable inputs for the asset
or liability reecting signicant modications to observable
related market data or Konecranes' assumptions about
pricing by market participants.
Derivative nancial instruments
and hedge accounting
The Group's global operations expose it to currency risk and
to a lesser extent interest rate risk.
The Group uses derivative nancial instruments, primarily
forward contracts and interest rate swaps, to hedge its
risks associated with foreign currency uctuations relating
to certain commitments and forecasted transactions and
interest rate risks. Derivative nancial instruments are
used for hedging purposes in accordance with the Group's
hedging policy and not for speculative purposes. These
instruments are initially recognized at fair value at the
derivative contract date and are re-measured to fair value
at subsequent reporting dates. Derivatives are presented
as nancial assets when the fair value is positive and as
nancial liabilities when the fair value is negative.
For certain large crane projects, the Group applies hedge
accounting. The Group designates hedges of the foreign
currency risk of rm commitments and highly probable
forecasted transactions to a cash ow hedge. Changes in
the fair value of derivative nancial instruments that are
designated as effective hedges of future cash ows are
recognized directly in other comprehensive income, while
the ineffective portion is recognized immediately in the
income statement. See note 34.
Amounts recognized as OCI are transferred to prot or loss
when the hedged transaction affects prot or loss, such as
when the hedged nancial income or nancial expense is
recognized or when a forecast sale occurs. When the hedged
item is the cost of a non-nancial asset or non-nancial
liability, the amounts recognized as OCI are transferred
to the initial carrying amount of the non-nancial asset or
liability.
If the hedging instrument expires or is sold, terminated
or exercised without replacement or rollover (as part of
the hedging strategy), or if its designation as a hedge is
revoked, or when the hedge no longer meets the criteria for
hedge accounting, any cumulative gain or loss previously
recognized in OCI remains separately in equity until the
forecast transaction occurs or the foreign currency rm
commitment is met. If a hedged transaction is no longer
expected to occur, the net cumulative gain or loss recognized
in the other comprehensive income is transferred to prot or
loss for the period.
Changes in the fair value of derivative nancial instruments
that do not qualify for hedge accounting are recognized in
the statement of income as they arise.
The Group does not apply fair value hedging.
Financial assets
Financial assets are classied as nancial assets at fair value
through prot or loss; nancial assets at fair value through
OCI; or nancial assets at amortized cost. Financial assets
are classied according to their cash ow characteristics
and the business model they are managed in and accounted
for at settlement date. They include account and other
receivables, interest bearing investments and derivative
nancial instruments. The measurement of nancial assets
depends on their classication, as follows:
Financial assets at amortized cost
Account receivables and other receivables are recognized
at their anticipated realizable value, which is the original
invoice amount less an estimated provision for doubtful
accounts for impairment. The increase in the credit risk for
nancial assets measured at amortized cost is assessed at
the end of the reporting period. The credit loss allowance
is estimated based on the Group's historical credit loss
experience adjusted with current conditions and
reasonable and supportable forecasts about the future.
The Group applies the simplied approach to record
expected credit losses on its accounts receivable by using
a provision matrix where accounts receivable is grouped
based on different customer bases and different historical
loss patterns.
Financial assets at fair value through statement
of income
Interest-bearing investments, which are non-derivative
nancial assets and have xed or determinable payments
and are not quoted on active markets, are measured at fair
value through the statement of income. This category also
includes derivatives that are not qualifying for
hedge accounting.
Financial assets at fair value through other
comprehensive income
Derivatives that are qualifying for hedge accounting are
classied as nancial assets at fair value through other
com pre hensive income. The treatment of gains and losses
arising from revaluation is described above in the accounting
policy for derivative nancial instruments and
hedge accounting.
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Financial liabilities
Financial liabilities are classied as nancial liabilities at fair
value through prot or loss; nancial liabilities at fair value
through other comprehensive income; or as nancial liabilities
measured at amortized cost, as appropriate. Financial
liabilities include trade and other payables, nance debt and
derivative nancial instruments. The Group determines the
classication of its nancial liabilities at initial recognition.
The measurement of nancial liabilities depends on their
classication, as follows:
Financial liabilities at fair value through prot or loss
Financial liabilities at fair value through prot or loss are
carried on the balance sheet at fair value with gains or
losses recognized in the income statement. Derivatives,
other than those designated as effective hedging
instruments, are classied as held for trading and are
included in this category.
Financial liabilities at fair value through other
comprehensive income
These nancial liabilities are typically derivatives designated
for hedge accounting and are carried on the balance sheet
at fair value. The treatment of gains and losses arising from
revaluation is described above in the accounting policy for
derivative nancial instruments and hedge accounting.
Financial liabilities measured at amortized cost
All other nancial liabilities are initially recognized at fair
value. For interest-bearing loans and borrowings this is
the fair value of the proceeds received net of issue costs
associated with the borrowing. After initial recognition,
other nancial liabilities are subsequently measured
at amortized cost using the effective interest method.
Amortized cost is calculated by taking into account any
issue costs, and any discount or premium on settlement.
Gains and losses arising on the repurchase, settlement
or cancellation of liabilities are recognized respectively in
interest and other nance income and nance costs. This
category of nancial liabilities includes accounts payables
and interest-bearing liabilities.
Offsetting of nancial instruments
Financial assets and nancial liabilities are offset and
the net amount reported in the consolidated statement
of nancial position if, and only if, there is a currently
existing, legally enforceable, unconditional right of
offset that applies to all counterparties of the nancial
instruments in all situations, including both normal
operations and insolvency.
Provisions
Provisions are recognized in the balance sheet when the
Group has a present legal or constructive obligation as
a result of a past event and it is considered probable that
an outow of resources embodying economic benets will
be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. Provisions may
arise from restructuring plans, onerous contracts, guarantees
and warranties, among other events. Obligations arising
from restructuring plans are recognized when the detailed
and formal restructuring plans have been established, the
personnel concerned have been informed and when there is
a valid expectation that the plan will be implemented.
The warranty provision is based on the history of past
warranty costs and claims on delivered products under
warranty. Additionally, warranty provisions can be established
on a case by case basis to take into consideration the
potentially increased risks.
When the Group expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the
reimbursement is recognized as a separate asset, but only
when the reimbursement is virtually certain.
Leases
The Group assesses at contract inception whether a contract
is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identied asset for a period
of time in exchange for consideration.
The Group as a lessee
The Group applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognizes lease
liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
Right-of-use assets
The Group recognizes right-of-use assets at the
commencement date of the lease (i.e. asset is available
for use). Right-of-use assets are measured at cost less
any accumulated depreciation and impairment losses and
adjusted for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities
recognized, possible initial cost incurred, lease payments
done before the commencement date and less any lease
incentives received. The recognized right-of-use assets are
mainly rentals of premises and vehicles, which are typically
depreciated on a straight-line basis over the shorter of
the lease term and estimated useful life of the asset.
Right-of-use assets are subject to possible impairment.
Lease liabilities
At the commencement date of a lease the Group recognizes
lease liabilities measured at the present value of the lease
payments to be made over the lease term. The lease
payments include xed payments less any lease incentives,
variable lease payments that depend on an index or a rate
and amounts expected to be paid under residual value
guarantees. The variable lease payments that do not depend
on an index or a rate are recognized as expense in the
period on which the event or condition that triggers the
payment occurs. In calculating the present value of the lease
payments, the group uses the incremental borrowing rate
at the lease commencement date if the interest rate implicit
in the lease is not determinable. After the commencement
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date, the amount of lease liabilities is increased to reect
the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modication, a change in lease term,
a change in the xed lease payments or a change in the
assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition
exemption to its short-term leases of machinery and
equipment (i.e. those leases that have a lease term of
12 months or less from the commencement date and do
not contain a purchase option). It also applies the recognition
exemption to equipment that are considered of low value.
Lease payments on short-term leases and leases of low-value
assets are recognized as an expense over the lease term.
Judgment in determining the lease term
The Group has various lease agreements for ofce
equipment, vehicles and premises with varying terms and
renewal rights. The Group determines the lease term as
the non-cancellable term of the lease together with any
periods covered by an option to extend or early terminate
the lease if it is reasonably certain to be exercised. The
Group uses judgment especially for the use of extension
options as well as when dening the lease term for open-end
lease agreements, so that they are based on the business
requirements, factors that create an economic incentive
and real estimated useful life time of the underlying asset.
Cash ow statement
The cash ow statement has been prepared in accordance
with the indirect method. In the cash ow statement,
a distinction is made between cash ows from operating,
investing and nancing activities. Currency differences on
cash and cash equivalents are recognized separately in the
cash ow statement. Revenue and expenses for income tax
are recognized under Cash ows from operating activities.
Interest costs and interest revenues are recognized under
Cash ows from operating activities. Cash ows as a result
of the acquisition or disposal of nancial interests
(subsidiaries and interests) are recognized under Cash ows
from investing activities, taking into account the cash,
cash equivalents and repaid third party debts present
in these interests. Dividends paid out, as well as obtained
and repaid loans, are recognized under Cash ows from
nancing activities.
2.4. Application of new and amended IFRS
standards and IFRIC interpretations
There were no relevant new or revised IFRSs that would
have had impact on the reported gures and that Konecranes
has adopted from January 1, 2021.
The relevant new or revised IFRSs that Konecranes has
adopted from January 1, 2020 were the following:
Denition of a Business - Amendments to IFRS 3.
The denition of a business was amended to help entities
determine whether an acquired set of activities and assets
is a business combination or an asset acquisition. They
clarify the minimum requirements for a business, remove
the assessment of whether market participants can replace
any missing elements, add guidance to help entities assess
whether an acquired process is substantive, narrow the
denitions of a business and of outputs, and introduce an
optional fair value concentration test. The amendments did
not have an impact on the consolidated nancial statements
of the Group.
Denition of Material - Amendments to IAS 1 and IAS 8.
The amendments were to align the denition of ‘material'
across the standards and to clarify certain aspects of
the denition. The new denition states that information
is material if omitting, misstating or obscuring it could
reasonably be expected to inuence decisions that the
primary users of nancial statements make on the basis
of those nancial statements, which provide nancial
information about a reporting entity. The amendments clarify
that materiality will depend on the nature or magnitude of
information, or both. An entity will need to assess whether
the information, either individually or in combination with
other information, is material in the context of the nancial
statements. The amendments did not have an impact on
the consolidated nancial statements of the Group.
Konecranes did not use the relief in the Amendments to
IFRS 16, Leases, COVID-19-Related Rent Concessions, which
permit lessees not to assess whether eligible COVID-19
related rent concessions are lease modications, and account
for them as if they were not lease modications.
Amendments to IFRS 9, IAS 39 Financial Instruments:
Recognition and Measurement and IFRS 7 Financial
Instruments: Disclosures, which concludes phase one
of its work to respond to the effects of Interbank Offered
Rates (IBOR) reform on nancial reporting. The amendments
provide temporary reliefs which enable hedge accounting
to continue during the period of uncertainty before the
replacement of an existing interest rate benchmark with an
alternative nearly risk-free interest rate. The amendments did
not have an impact on the consolidated nancial statements
of the Group.
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3. Segment information
For management purposes, the Group is organized into
business units based on its products and services and had
three reportable segments in 2021 and 2020, which it
calls Business Areas: Business Area Service, Business Area
Industrial Equipment and Business Area Port Solutions.
Business Area Service provides maintenance and installation
services of industrial equipment, Business Area Industrial
Equipment produces industrial cranes and their components
to variety of industries and Business Area Port Solutions
produces lifting equipment for ports and provides services for
port equipment.
Some business units have been aggregated to form the
above reportable operating segments due to
the similar economic characteristics with respect to
the nature of the production process, product type
and class of customers for their products.
The above reportable segments are based on the Group's
management reporting and organizational structure.
Konecranes Group's chief operating decision maker is the
Board of Directors.
Segment performance is evaluated based on prot
or loss and is measured consistently with prot or
loss in the consolidated nancial statements. However, the
performance of the investees accounted for using the equity
method is evaluated using proportionate consolidation.
The assets and liabilities of the reportable segments include
only items directly connected with the business as well as
the goodwill related to them. Taxes and nancial income and
expenses are managed on Group level and are not allocated
to segments.
Konecranes reports also three geographical areas, which
are the main market areas: EMEA (Europe, Middle East and
Africa), AME (Americas) and APAC (Asia-Pacic). Sales are
reported by the customer location and assets and capital
expenditure by the location of the assets.
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3.1. Operating segments
Service Industrial Equipment Port Solutions
Corporate functions
and unallocated Eliminations Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Sales
Sales to external customers 1,161.3 1,148.4 960.2 973.8 1,064.3 1,056.0 0.0 0.8 3,185.7 3,178.9
Inter-segment sales 44.0 41.6 128.5 146.4 8.6 10.0 9.2 9.1 -190.3 -207.1 0.0 0.0
Total sales 1,205.3 1,190.0 1,088.7 1,120.1 1,072.9 1,066.0 9.2 9.9 -190.3 -207.1 3,185.7 3,178.9
Adjusted EBITA 222.4 205.2 38.0 25.4 79.9 59.7 -28.1 -29.6 0.0 0.0 312.2 260.8
% of net sales 18.5% 17.2% 3.5% 2.3% 7.4% 5.6% 9.8% 8.2%
Purchase price allocation
amortization
-15.5 -16.1 -10.8 -12.5 -6.8 -7.3 -33.2 -35.9
Adjusted operating prot 206.9 189.1 27.2 12.9 73.1 52.4 -28.1 -29.6 0.0 0.0 279.1 224.9
% of net sales 17.2% 15.9% 2.5% 1.1% 6.8% 4.9% 8.8% 7.1%
Adjustments to operating prot
Transaction costs -47.8 -8.5 -47.8 -8.5
Restructuring costs -2.0 -7.7 -8.5 -8.6 1.7 -24.4 -2.5 -2.0 -11.3 -42.6
Total -2.0 -7.7 -8.5 -8.6 1.7 -24.4 -50.3 -10.5 -59.1 -51.1
Operating prot 204.9 181.4 18.7 4.3 74.8 28.0 -78.4 -40.0 0.0 0.0 220.0 173.8
% of net sales 17.0% 15.2% 1.7% 0.4% 7.0% 2.6% 6.9% 5.5%
Share of associates and joint
ventures result (note 16)
0.3 21.2 0.3 21.2
Financial income 28.6 38.6 28.6 38.6
Financial expenses -56.4 -63.2 -56.4 -63.2
Prot before tax 192.5 170.3
Segment assets 1,422.6 1,409.7 926.6 916.5 900.4 854.2 3,249.6 3,180.4
Investment accounted for using
the equity method (note 16)
6.8 6.5 6.8 6.5
Cash and cash equivalents 320.7 591.9 320.7 591.9
Deferred tax assets 120.2 118.9 120.2 118.9
Income tax receivables 16.2 13.4 16.2 13.4
Other unallocated and corporate function level
assets
132.4 105.4 132.4 105.4
Total assets 1,422.6 1,409.7 926.6 916.5 900.4 854.2 596.2 836.1 3,845.8 4,016.5
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3.1. Operating segments (continued)
Revenue expected to be recognized in the future periods related to performance obligations
that are unsatised or partially unsatised
Service Industrial Equipment Port Solutions
Corporate functions
and unallocated Eliminations Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Segment liabilities 212.7 192.5 376.6 356.4 405.8 415.0 995.1 963.9
Interest-bearing liabilities 865.1 1,170.8 865.1 1,170.8
Deferred tax liabilities 142.6 143.6 142.6 143.6
Income tax payables 23.0 18.3 23.0 18.3
Other unallocated and corporate function level
liabilities
459.5 469.3 459.5 469.3
Total liabilities 212.7 192.5 376.6 356.4 405.8 415.0 1,490.2 1,802.1 2,485.2 2,766.0
Other disclosures
Capital expenditure 10.9 9.6 28.8 24.9 10.2 8.2 0.0 0.0 49.8 42.8
Personnel 7,890 8,062 5,516 5,720 3,083 2,970 84 110 16,573 16,862
During 2022 During 2023 From 2024 onwards Total
Service 291.2 17.9 34.4 343.5
Industrial Equipment 585.4 101.1 23.3 709.9
Port Solutions 768.6 161.9 52.9 983.5
Total 1,645.2 281.0 110.6 2,036.8
The transaction price associated with unsatised or partially
unsatised performance obligations does not include variable
consideration that is constrained. The Group total revenue
will also include new orders, scope changes and contract
extensions, which are not known at reporting date and thus
are excluded in this table.
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3.2. Geographical areas
2021 EMEA* AME APAC Total
External sales* 1,645.9 1,042.2 497.7 3,185.7
Assets* 2,637.8 546.1 661.9 3,845.8
Capital expenditure 36.4 1.0 12.4 49.8
Personnel 9,683 3,016 3,874 16,573
2020 EMEA* AME APAC Total
External sales* 1,703.9 976.6 498.4 3,178.9
Assets* 2,910.5 529.5 576.6 4,016.5
Capital expenditure 35.7 1.5 5.6 42.8
Personnel 9,688 2,964 4,210 16,862
* External sales to Finland EUR 87.6 million. Non-current assets (excluding deferred tax assets) in Finland: EUR 172.8 million and in other
countries: EUR 1,710.2 million.
* External sales to Finland EUR 82.6 million. Non-current assets (excluding deferred tax assets) in Finland: EUR 193.6 million and in other
countries: EUR 1,728.2 million.
There are no single customers which have over 10% of Group's sales.
4. Acquisitions and divestments
There were no new acquisitions or divestments during
2021.
Acquisitions in 2020
On December 5, 2019 Konecranes signed an agreement
to acquire from Jebsen & Jensen its 50% share in MHE-
Demag. The transaction was closed on January 2, 2020
and the purchase price consideration was EUR 148.3
million. After the acquisition, Konecranes holds 100% of
the shares in the company.
MHE-Demag is a leading supplier of industrial cranes and
services in Southeast Asia under the MHE and Demag
brands, engineering, manufacturing and maintaining a
comprehensive range of industrial cranes and hoists. Its
customized solutions serve a wide range of industries
and customers from general manufacturing to aerospace.
MHE-Demag also provides warehousing equipment such as
lift trucks and dock levelers, aerial work platforms, building
maintenance units and compact construction equipment,
as well as automated car parking systems. With the
acquisition, Konecranes increases its presence and market
coverage in the strategically important and fast-growing
Southeast Asia. MHE-Demag has approximately 1,800
employees, including some 700 service engineers. MHE-
Demag operates 11 factories and more than 70 service
locations throughout Southeast Asia and is headquartered
in Singapore. MHE-Demag runs own operations in
Australia, Indonesia, Malaysia, Singapore, the Philippines,
Taiwan, Thailand and Vietnam. In addition, MHE-Demag
has distribution through resellers in several countries,
including Brunei, Cambodia, Laos, Mongolia, Myanmar,
Papua New Guinea and Timor-Leste.
In 2019, MHE-Demag's net sales were approximately SGD
296 million (EUR 196 million) and EBITA approximately
SGD 21 million (EUR 14 million). Konecranes is the main
supplier to MHE-Demag, selling crane components under
the Demag brand name. Konecranes' sales to MHE-Demag
in 2019 were approximately EUR 27 million.
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Fair value
Intangible assets
Clientele 36.1
Technology 0.0
Trademark 2.1
Other intangible assets 10.2
Property, plant and equipment 38.9
Deferred tax assets 4.2
Inventories 43.4
Accounts receivable 51.0
Provision for doubtful debts -0.7
Other assets 23.7
Cash and cash equivalents 17.6
Total assets 226.6
Konecranes remeasured its previously held equity interest
in MHE-Demag at its acquisition date fair value and
recognised the EUR 21.1 million gain in share of associates'
and joint ventures' result row of statement of income. Under
the acquisition method of accounting, the total purchase
price is allocated to the tangible and identied intangible
assets acquired and liabilities assumed based on their fair
values as of the date of acquisition. The intangible assets
consist of customer relationships, sales order backlog
and trade name. The accumulated transaction costs were
EUR 0.9 million during 2019. The fair values of acquired
businesses are as follows:
Fair value
Non-controlling interest 0.0
Deferred tax liabilities 12.5
Dened benet plans 1.0
Other long-term liabilities 11.1
Accounts payable and other current
liabilities
79.4
Total liabilities 104.1
Net assets 122.6
Purchase consideration, paid in cash 141.7
Purchase consideration, deferred 6.6
Earlier non-controlling interest in
associated company
67.8
Fair value increase to non-controlling
interest
21.1
Acquisition cost 237.2
Goodwill 114.7
Cash ow on acquisition
Purchase consideration, paid in cash 141.7
Purchase consideration, deferred 6.6
Transaction costs 0.9
Cash and cash equivalents in acquired
companies
-17.6
Net cash ow arising on acquisition 131.6
Goodwill allocation to Cash
Generating Units:
Industrial Cranes 14.8
Industrial Service 99.9
Total 114.7
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5. Disaggregation of revenue in sales
Customer contract revenue 2021 2020
Sale of goods 2,242.4 2,254.7
Rendering of services 936.1 917.8
Total customer contract revenue 3,178.5 3,172.5
Other revenue
Leasing of own products 6.9 6.1
Royalties 0.4 0.4
Total other revenue 7.3 6.5
Total sales 3,185.7 3,178.9
2021 2021 2021 2020 2020 2020
Timing of satisfying performance
obligations by Segments
At a point
of time
Over
time Total
At a point
of time
Over
time Total
Service 150.1 1,011.2 1,161.3 139.3 1,009.1 1,148.4
Industrial Equipment 778.8 181.4 960.2 781.3 192.5 973.8
Port Solutions 836.4 227.9 1,064.3 778.0 278.0 1,056.0
Corporate functions 0.0 0.0 0.0 0.8 0.0 0.8
Total 1,765.3 1,420.5 3,185.7 1,699.3 1,479.7 3,178.9
6. Contract balances
6.1. Contract assets and liabilities
6.2. Advances received
Contract assets 2021 2020
The cumulative revenues of
non-delivered projects
682.8 554.6
Advances received netted 521.5 452.3
Total 161.3 102.3
Transfers to receivables from contract
assets recognized at the
beginning of period
220.3 263.8
Contract liabilities
Gross advance received from
percentage of completion method
593.8 510.0
Advances received netted 521.5 452.3
Total 72.3 57.7
Revenue recognised in the current
period that was included in the
contract liability opening balance
185.8 166.4
Increases due to cash received 306.5 347.2
2021 2020
Advance received from percentage
of completion method (netted)
72.3 57.7
Other advance received
from customers
272.4 294.6
Total 344.7 352.3
Contract assets relate to receivables arising from percentage
of completion method. Net asset balances are balances
where the sum of contract costs, recognized prots and
recognized losses exceed progress billings. Where progress
billings exceed the sum of contract costs, recognized prots
and recognized losses, these liabilities are included in the line
item contract liabilities.
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7.1. Audit and non-audit fees to Group auditor
7. Operating Expenses
8. Personnel expenses
and number of personnel
8.1. Personnel expenses
8.2. Number of personnel
8.3. Personnel by Reportable Segment
at the end of period
2021 2020
Audit 3.8 3.7
Non-audit services 0.3 0.9
Total 4.0 4.6
2021 2020
Change in work in progress -35.0 10.5
Production for own use -0.7 -0.6
Material and supplies 1,030.7 1,062.0
Subcontracting 418.1 401.1
Materials, supplies and subcontracting 1,413.0 1,473.0
Wages and salaries 829.6 826.3
Pension costs 65.1 58.9
Other personnel expenses 128.8 108.3
Personnel cost 1,023.5 993.5
Other operating expenses 420.4 419.3
Total operating expenses 2,856.9 2,885.8
2021 2020
Wages and salaries 829.6 826.3
Pension costs: Dened benet plans 10.7 9.2
Pension costs: Dened
contribution plans
54.5 49.7
Other personnel expenses 128.8 108.3
Total 1,023.5 993.5
2021 2020
Average number of personnel 16,625 17,027
Number of personnel as
at December 31
16,573 16,862
Number of personnel as
at December 31 in Finland
2,065 1,985
2021 2020
Service 7,890 8,062
Industrial Equipment 5,516 5,720
Port Solutions 3,083 2,970
Group Staff 84 110
Total 16,573 16,862
Research and development costs recognized as an expense
in other operating expenses amount to EUR 47.7 million
in the year 2021 (EUR 48.5 million in 2020).
9. Depreciation, amortization
and impairments
9.1. Depreciation and amortization
9.2. Impairments
2021 2020
Intangible assets 44.2 52.4
Buildings 30.7 30.8
Machinery and equipment 45.0 46.9
Total 119.8 130.0
2021 2020
Property, plant and equipment 0.3 0,0
Total 0.3 0,0
The nature of the impairments is described in the disclosures
of goodwill, intangible assets and property, plant and
equipment (see notes 14 and 15).
10. Financial income and expenses
10.1. Financial income
10.2. Financial expenses
2021 2020
Interest income on bank deposits
and loans
2.1 1.5
Fair value gain on derivative nancial
instruments
0.0 36.5
Exchange rate gains 25.6 0.0
Other nancial income 0.9 0.6
Total 28.6 38.6
2021 2020
Interest expenses on liabilities 19.0 24.1
Net loss on nancial instruments
at fair value through prot or loss
30.8 0.0
Exchange rate loss 0.0 32.5
Other nancial expenses 6.6 6.6
Total 56.4 63.2
Financial income
and expenses net
-27.8 -24.6
The company applies hedge accounting on derivatives
used to hedge cash ows in certain large crane projects.
The cash ow hedges of the expected future cash ows are
assessed to be highly effective and a net unrealized effect
of EUR -11.0 million (2020: EUR 8.1 million) with deferred
taxes of EUR +2.2 million (2020: EUR -1.6 million) relating
to the hedging instruments is included in equity. The hedged
operative cash ows are expected to occur during the next
3–18 months. The realized and recycled currency differences
from these hedges recorded in the statement of income were
EUR -0.4 million in 2021 (EUR -0.4 million in 2020).
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11. Income taxes
11.1. Taxes in statement of income
11.2. Reconciliation of income before taxes
with total income taxes
11.3. Tax effects of components in other
comprehensive income
2021 2020
Local income taxes of group
companies
47.7 51.7
Taxes from previous years 1.4 -3.3
Change in deferred taxes -3.9 -1.0
Total 45.1 47.5
2021 2020
Cash ow hedges -2.2 1.6
Re-measurement gains (losses)
on dened benet plans
5.8 -5.9
Total 3.6 -4.3
2021 2020
Prot before taxes 192.5 170.3
Tax calculated at the domestic corpo-
ration tax rate of 20.0% (2020: 20.0%)
38.5 34.1
Effect of different tax rates of foreign
subsidiaries
10.2 4.1
Taxes from previous years 1.4 -3.3
Tax effect of non-deductible expenses
and tax-exempt income
-1.2 0.1
Tax effect of unrecognized tax losses
of the current year
0.6 10.2
Tax effect of utilization
of previously unrecognized tax losses
-4.6 -3.1
Tax effect of recognition
of previously unrecognized tax losses
-0.3 0.0
Tax effect of impairment of previously
recognized deferred tax assets
-1.1 7.1
Tax effect of recognizing the controlled
temporary difference from investment
in subsidiaries
2.4 -0.4
Tax effect of tax rate change 0.2 0.2
Other items -1.0 -1.7
Total 45.1 47.5
Effective tax rate % 23.4% 27.9%
The Company evaluates regularly the net realizable value
of its deferred tax assets.
12. Earnings per share
Basic earnings per share are calculated by dividing
the net income attributable to the shareholders of the
parent company by the weighted average number of shares
outstanding during the year. Diluted earnings per share
are calculated by adjusting the weighted average number
of shares outstanding during the year for the dilutive effect
of the shares issued under the share-based incentive plans.
Weighted average number of shares is excluding the number
of treasury shares.
2021 2020
Net prot attributable to shareholders
of the parent company
146.9 122.2
Weighted average number of shares
outstanding (1,000 pcs)
79,134 79,078
Effect of share based incentive plans
(1,000 pcs)
473 194
Weighted average number of shares
outstanding, diluted (1,000 pcs)
79,607 79,272
Earnings per share, basic (EUR) 1.86 1.54
Earnings per share, diluted (EUR) 1.85 1.54
13. Goodwill and goodwill
impairment testing
13.1. Goodwill
2021 2020
Acquisition costs as of January 1 1,031.4 922.9
Additions 0.0 114.7
Translation difference 5.4 -6.2
Acquisition costs as of December 31 1,036.8 1,031.4
Accumulated impairments
as of January 1
-14.7 -14.7
Total as of December 31 1,022.1 1,016.7
13.2. General principles
Management monitors the performance of the Group through
the monthly meetings and monthly reporting that take
place on a business unit level. Impairment testing is done
at the lowest level of the Group at which goodwill is
monitored internally.
13.3. Total goodwill in reportable segments
after impairments
2021 2020
Industrial Cranes 154.0 152.3
Agilon 3.9 3.9
Goodwill in Industrial
Equipment total
157.9 156.3
Industrial Crane Service 660.0 656.1
Machine Tool Service 4.1 3.9
Goodwill in Service total 664.1 660.0
Port Cranes 163.4 163.4
Lift trucks 36.7 37.0
Goodwill in Port Solutions total 200.0 200.4
Total goodwill in reportable
segments as of December 31
1,022.1 1,016.7
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Compound
annual
growth rate
Discount
rate
Industrial Cranes 4% 10.0%
Agilon 20% 13.2%
Industrial Crane Service 6% 10.3%
Machine Tool Service 5% 8.2%
Lift trucks 8% 9.0%
Port Cranes 4% 8.5%
The recoverable amounts of the CGUs are determined
based on value in use calculations using the discounted
cash ow method. The forecasting period of cash ows
is ve years and it is based on nancial forecasts of the
management responsible for that CGU, and adjusted by
Group management if needed. The forecasts have been
made based on the CGU specic historical data, order book,
the current market situation and industry specic information
of the future growth possibilities. These assumptions are
reviewed annually as part of management's budgeting and
strategic planning cycles. Calculations are prepared during
the fourth quarter of the year.
The discount rate applied to cash ow projections is the
weighted average (pre-tax) cost of capital and is based on
risk-free long-term government bond rates and market and
industry specic risk premiums. These risk premiums are
derived based on the business portfolio of companies which
operate in a similar industry.
The key assumptions, being the average compound annual
growth rate for the sales of the ve years forecasted and
the discount rate are as follows:
Impairment charges
The impairment testing performed in 2021 and 2020 did
not result in any impairments being recognized.
Sensitivity analyses
In addition to impairment testing using the base case
assumptions, four separate sensitivity analyses were
performed for each CGU:
1) A discount rate analysis where the discount rate
was increased by 5% points.
2) A Group management adjustment to the future
protability. The cash ow of each CGU was analyzed
by the Group management. Based on the CGU specic
historical data and future growth prospects, the cash
ows were decreased by 10% in each year including
terminal year.
3) A higher discount rate (+5% points) analysis combined
with lower (-10%) cash ows as mentioned above.
4) A decrease in the compound annual growth rate for the
sales for each of the ve forecasted years (-2% points)
combined with the current discount rate.
2021
Sensitivity tests using both higher discount rate
(+5% points) and lower cash ow estimates (-10%)
indicated that the goodwill in Agilon would have been
impaired by EUR 0.6 million. There was no indication
of impairment of goodwill for any other CGU from
the sensitivity tests.
2020
There was no indication of impairment of goodwill
for any CGU from the sensitivity tests.
The average compound growth rate for the gross prot is
consistent with that of sales. Furthermore, for all the CGUs
a 1% terminal growth rate has been applied.
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14. Intangible assets
2021
Patents
and trademarks Software Other
Intangible
assets total
Acquisition costs as of January 1 243.7 180.2 504.8 928.8
Additions 0.0 12.2 0.0 12.2
Disposals 0.0 -0.7 -1.3 -2.0
Transfer within assets 0.0 0.0 0.0 0.0
Translation difference 0.0 0.0 0.5 0.5
Acquisition costs as of December 31 243.8 191.7 504.1 939.6
Accumulated amortization as of
January 1
-17.7 -158.0 -217.0 -392.7
Translation difference 0.0 -0.1 -0.3 -0.4
Accumulated amortization relating
to disposals
0.0 0.7 0.2 0.9
Amortization for nancial year -1.8 -11.1 -31.3 -44.2
Total as of December 31 224.2 23.3 255.6 503.1
2020
Patents
and trademarks Software Other
Intangible
assets total
Acquisition costs as of January 1 245.1 172.3 456.1 873.5
Additions 0.1 8.8 0.3 9.2
Disposals 0.0 -0.8 -1.2 -2.1
Business combinations 2.1 0.0 46.4 48.5
Transfer within assets -3.6 -0.1 3.6 0.0
Translation difference 0.0 0.0 -0.3 -0.3
Acquisition costs as of December 31 243.7 180.2 504.8 928.8
Accumulated amortization as of
January 1
-15.8 -141.4 -184.6 -341.9
Translation difference 0.0 0.2 0.3 0.5
Accumulated amortization relating
to disposals
0.0 0.8 0.2 1.0
Amortization for nancial year -1.9 -17.6 -32.9 -52.4
Total as of December 31 226.0 22.2 287.8 536.0
The category Other consists mainly of customer lists and
technology acquired in business combinations. They are
stated at cost and amortized on a straight-line basis over
their expected useful lives. The normal amortization period
of intangible assets varies from 4 to 20 years.
The amortization of intangible assets is included in the
depreciation and impairments line in the consolidated
statement of income. On December 31, 2021 and December
31, 2020, the intangible assets having indenite useful life
consisted of the Demag and Gottwald trademarks of
EUR 167.0 million and EUR 51.0 million. As there is no
foreseeable limit on the period over which the asset is
expected to generate net cash inows for the entity, it is
classied as intangible assets having an indenite useful life.
The carrying amounts of these assets are tested on a yearly
basis in connection with the goodwill impairment testing.
The addition of EUR 12.2 million (EUR 9.2 million in 2020)
mainly consisted of capitalized development costs of the
Group's ERP systems.
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15. Property, plant and equipment
2021 Land Buildings
Machinery &
Equipment
Property,
plant and
equipment
total
Acquisition costs as of January 1 30.1 263.3 391.6 685.0
Additions 0.0 30.9 43.0 74.0
Disposals -0.6 -10.6 -19.0 -30.2
Transfer within assets 0.0 0.4 -0.4 0.0
Impairment 0.0 0.0 -0.3 -0.3
Translation difference 0.3 4.8 3.3 8.5
Acquisition costs as of December 31 29.8 288.8 418.4 737.0
Accumulated depreciation as of
January 1
0.0 -88.3 -254.9 -343.2
Translation difference 0.0 -0.3 -0.4 -0.7
Accumulated depreciation relating
to disposals
0.0 6.3 15.6 21.9
Depreciation for nancial year 0.0 -30.7 -45.0 -75.6
Total as of December 31 29.8 175.8 133.7 339.3
2020 Land Buildings
Machinery &
Equipment
Property,
plant and
equipment
total
Acquisition costs as of January 1 27.2 236.4 359.6 623.2
Additions 0.0 22.8 50.5 73.3
Disposals -1.0 -8.2 -25.3 -34.4
Business combinations 4.6 18.1 11.8 34.5
Translation difference -0.7 -5.9 -4.9 -11.6
Acquisition costs as of December 31 30.1 263.3 391.6 685.0
Accumulated depreciation as of
January 1
0.0 -61.2 -229.1 -290.4
Translation difference 0.0 0.3 0.5 0.8
Accumulated depreciation relating
to disposals
0.0 3.4 20.5 24.0
Depreciation for nancial year 0.0 -30.8 -46.9 -77.7
Total as of December 31 30.1 175.0 136.7 341.8
Classication of Property, plant and equipment 2021 2020
Property, plant and equipment, owned 223.8 220.8
Right-of-use assets, leased 115.6 121.0
Total 339.3 341.8
2021
Right of use assets
Land and
Buildings
Machinery and
Equipment Total
Balance as of January 1 78.5 42.5 121.0
Translation difference 2.0 1.4 3.4
New contracts and changes in lease contracts 18.1 15.6 33.6
Depreciation during the year -22.1 -20.4 -42.5
Total as of December 31 76.5 39.1 115.6
2020
Right of use assets
Land and
Buildings
Machinery and
Equipment Total
Balance as of January 1 85.8 46.0 131.8
Translation difference -2.4 -1.8 -4.3
Business combinations 7.0 0.3 7.3
New contracts and changes in lease contracts 10.6 19.5 30.0
Depreciation during the year -22.5 -21.5 -43.9
Total as of December 31 78.5 42.5 121.0
Mainly due to the restructuring actions of the Group, land, buildings, machinery and equipment were
written off in 2021 by EUR 0.3 million (EUR 0.0 million in 2020).
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16. Interests in other entities
and non-controlling interests
16.1. Investments accounted for using
the equity method
The following table illustrates the summarized nancial information of the Group's investments and reconciliation
with the carrying amount of the investments in consolidated nancial statements.
16.3. Joint operations
Konecranes has classied the interest in AS Konesko
(domiciled in Estonia) as a joint operation based on the joint
arrangement agreement. AS Konesko is a strategic supplier
of components used in Konecranes products. Konecranes
has the exclusive right to purchase certain motors and end
carriages from AS Konesko at a price to be agreed upon with
AS Konesko. However, Konecranes retains ownership of the
current motor designs and the trademark rights to the
end carriages.
Associated Companies 2021 2020
Acquisition costs as of January 1 1.7 1.7
Share of associated companies' result
after taxes
0.1 0.1
Dividends received -0.1 -0.1
Total as of December 31 1.7 1.7
Joint Ventures 2021 2020
Acquisition costs as of January 1 4.8 72.3
Share of joint ventures' result after
taxes*
0.2 0.0
Change to subsidiary 0.0 -67.8
Dividends received 0.0 -0.4
Acquisitions 0.0 0.8
Translation difference 0.1 -0.1
Total as of December 31 5.1 4.8
2021
Carrying
amount
of the
investment
Non-
current
assets*
Current
assets*
Non-
current
liabilities*
Current
liabilities* Revenue*
Prot/
loss after
tax from
continuing
operations*
Total com-
prehensive
income*
Dividends
received
Investments in
associated companies
and joint ventures
6.8 3.8 52.5 0.8 31.4 58.5 1.1 1.1 0.1
Total 6.8 3.8 52.5 0.8 31.4 58.5 1.1 1.1 0.1
2020
Carrying
amount
of the
investment
Non-
current
assets*
Current
assets*
Non-
current
liabilities*
Current
liabilities* Revenue*
Prot/
loss after
tax from
continuing
operations*
Total com-
prehensive
income*
Dividends
received
Investments in
associated companies
and joint ventures
6.5 2.5 48.1 0.2 27.8 57.8 0.5 0.5 0.5
Total 6.5 2.5 48.1 0.2 27.8 57.8 0.5 0.5 0.5
* Including adjustments from purchase price allocation. *Asset and liability values, revenue and prot/loss represent values according to the latest published nancial information.
Konecranes owns as of December 31, 2021 49.5% of
AS Konesko shares.
Konecranes has recognized and accounted for the assets,
liabilities, revenues and expenses relating to its interest in
AS Konesko in accordance with IFRS11.
16.2. Investments in Associated Companies and Joint Ventures
In addition, in 2020 Konecranes remeasured its previously
held equity interest in MHE-Demag at its acquisition date fair
value and recognized also EUR 21.1 million gain in share of
joint ventures' result in statement of income.
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16.4. Subsidiaries with material non-controlling interest
17. Deferred tax assets and liabilities
17.1. Deferred tax assets
17.2. Deferred tax liabilities
2021
Accumulated
non-controlling
Interest Goodwill
Non-current
assets Current assets
Non-current
liabilities
Current
liabilities Revenue
Prot/loss
after tax from
continuing
operations
Total
comprehensive
income
Non-controlling interests 9.2 0.0 66.6 38.1 10.6 58.0 42.4 4.4 4.4
Total 9.2 0.0 66.6 38.1 10.6 58.0 42.4 4.4 4.4
2020
Accumulated
non-controlling
Interest Goodwill
Non-current
assets Current assets
Non-current
liabilities
Current
liabilities Revenue
Prot/loss
after tax from
continuing
operations
Total
comprehensive
income
Other non-controlling interests 9.1 0.0 59.4 43.9 5.6 62.6 42.6 3.8 3.8
Total 9.1 0.0 59.4 43.9 5.6 62.6 42.6 3.8 3.8
Assets and liabilities as well as revenue and prot/loss values represent the total company values including purchase price allocations. See also the company list for the ownership and principal place of business
of the subsidiaries.
2021 2020
Employee benets 53.1 56.5
Provisions 18.1 17.1
Unused tax losses 9.6 11.4
Other temporary differences 39.4 33.8
Total 120.2 118.9
2021 2020
Intangible and tangible assets 121.0 129.7
Other temporary difference 21.6 13.9
Total 142.6 143.6
Other temporary differences include timing differences arising
for example from accrued costs, advances received and
unrealized currency differences that are not deductible
in taxation until they occur.
The deferred tax assets and deferred tax liabilities have been
netted on a juridical company level when there is a legally
enforceable right to offset income tax receivables against
income tax payables related to income taxes levied by the
same tax authority. The gross amount of deferred tax assets
in 2021 were EUR 125.3 million (EUR 148.4 million in 2020)
and deferred tax liabilities EUR 147.7 million (EUR 172.8
million in 2020).
Konecranes has not recognized the temporary differences in
investments in subsidiaries to the extent that they probably
will not reverse in the foreseeable future.
17.3. Tax losses carried forward
At the end of year 2021, Konecranes recorded a deferred
tax asset of EUR 9.6 million (EUR 11.4 million in 2020)
related to unused tax losses on the carry-forward losses
of EUR 199.9 million (EUR 218.4 million in 2020) in total.
The tax losses, for which no deferred tax assets are
recognized due to the uncertainty of the utilization of
the losses, amounted to EUR 157.8 million in the year 2021
(EUR 170.0 million in 2020). EUR 138.7 million of these
carry-forward tax losses available have unlimited expiry,
EUR 18.5 million expire later than in ve years and
EUR 42.8 million expire in ve years.
Part of carry-forward losses relates to Morris Material
Handling, Inc., USA, which was acquired in 2006. The
overall carry-forward losses of Morris Material Handling, Inc.
amounted to EUR 24.1 million (EUR 24.5 million in 2020).
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Tax losses carried forward and related deferred tax assets on December 31
by the most signicant countries as following:
2021
Tax losses
carried forward
Potential deferred
tax assets
Deferred tax assets
not recorded
Deferred
tax assets
France 77.4 20.0 20.0 0.0
India 34.5 10.8 10.8 0.0
USA 24.2 5.7 0.0 5.7
Austria 17.9 4.5 4.2 0.3
Great Britain 9.1 1.7 1.7 0.0
South Africa 5.1 1.4 1.4 0.0
Germany 4.4 1.4 1.4 0.0
Japan 3.8 1.2 1.2 0.0
Australia 3.2 1.0 0.0 1.0
Hong Kong 2.8 0.5 0.5 0.0
Other 17.6 4.0 1.3 2.7
Total 199.9 52.0 42.4 9.6
2020
Tax losses
carried forward
Potential deferred
tax assets
Deferred tax assets
not recorded
Deferred
tax assets
France 75.9 20.8 20.8 0.0
India 34.4 10.7 10.7 0.0
USA 24.6 5.8 0.0 5.8
Austria 19.2 4.8 4.2 0.6
Great Britain 12.3 2.3 1.2 1.2
South Africa 7.7 2.2 2.2 0.0
Germany 5.8 1.8 1.8 0.0
Japan 3.9 0.6 0.6 0.0
Australia 5.0 1.5 0.0 1.5
Hong Kong 2.7 0.4 0.4 0.0
Other 26.9 6.6 4.2 2.4
Total 218.4 57.6 46.2 11.4
To assess if the convincing evidence threshold per IAS12
was met, Konecranes has prepared tax forecasts for future
periods considering the restructuring done and the tax
planning opportunities that were being implemented
at that time.
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18. Inventories
19. Ageing analysis of accounts receivable
2021 2020
Raw materials and semi-manufactured goods 278.4 238.4
Work in progress 380.7 336.6
Finished goods 46.2 51.4
Advance payments 21.1 18.4
Total 726.4 644.8
2021 2021 2020 2020
Accounts
receivable
including
impairment of
Accounts
receivable
including
impairment of
Not overdue 326.7 3.2 327.0 2.9
1−30 days overdue 81.7 0.5 85.0 0.4
31−60 days overdue 40.1 0.2 30.1 0.3
61−90 days overdue 19.4 0.7 14.1 0.6
more than 91 days overdue 24.3 22.2 33.0 27.6
Total 492.1 26.8 489.2 31.8
2021
Balance at the
beginning
of the year
Translation
difference
Business
combinations
Utilized during
the period
Provision not
needed Additions
Balance
at the end
of the year
Provision
for obsolete
inventory
42.7 1.1 0.0 9.2 0.7 8.0 42.0
2020
Balance at the
beginning
of the year
Translation
difference
Business
combinations
Utilized during
the period
Provision not
needed Additions
Balance
at the end
of the year
Provision
for obsolete
inventory
36.8 -1.5 3.9 8.9 2.0 14.3 42.7
The carrying amount of accounts receivable approximates to their fair value. Accounts receivable are subject to only minor credit
risk concentrations due to the Group's extensively diversied customer portfolio. Credit losses recognized from the customer
contracts for the nancial year totaled EUR 5.8 million (EUR 5.8 million in 2020).
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2021
Balance at
the beginning
of the year
Translation
difference
Business
combinations
Utilized
during
the period
Provision not
needed Additions
Balance
at the end
of the year
Provision for
doubtful accounts
(Impairment)
31.8 1.5 0.0 5.7 5.8 5.0 26.8
2020
Balance at
the beginning
of the year
Translation
difference
Business
disposals
Utilized
during
the period
Provision not
needed Additions
Balance
at the end
of the year
Provision for
doubtful accounts
(Impairment)
29.3 -1.2 0.6 5.7 6.6 15.5 31.8
The release of the provision for doubtful accounts relates to the cash received from individual receivables which were historically
provided for due to management's uncertainty of their collectability.
19. Ageing analysis of accounts receivable (continues)
20. Other receivables
21. Deferred assets
22. Cash and cash equivalents
2021 2020
Notes receivable 4.7 4.7
Value added tax 23.4 26.2
Total 28.1 30.9
2021 2020
Interest 0.5 0.8
Prepaid expenses 23.1 20.4
Unbilled revenue 36.8 24.6
Other 33.8 36.4
Total 94.1 82.1
2021 2020
Short-term deposits 77.9 15.9
Cash in hand and at bank 242.8 576.0
Total 320.7 591.9
23. Equity
23.1. Shareholders' equity
Number of
shares
Number of
treasury
shares
As of January 1, 2020 78,839,426 82,480
Share issue 0 300,000
Share subscriptions with share
awards
295,033 -295,033
As of December 31, 2020 79,134,459 87,447
Share issue 0 0
Share subscriptions with share
awards
0 0
As of December 31, 2021 79,134,459 87,447
The total shareholders' equity consists of share capital,
share premium, paid in capital, cash ow hedges, translation
difference, other reserves and retained earnings. Consistent
with local legislation, Konecranes' share has no nominal
value. All issued shares are fully paid and listed on
Nasdaq Helsinki.
Share premium includes the value of shares, which exceeds
the accounting par value of the shares, for shares issued
before 1 September, 2006. Cash ow hedges include changes
in the fair values of derivative nancial instruments used
to hedge operational cash ows. Translation differences
comprise the differences arising from translating non-euro
functional currency entities to euro, which is the Group's
presentation currency. Other reserves include the credit for
equity settled share-based payment cost. The paid in capital
includes the portion of shares' subscription price, which is
not recorded to share capital or to liabilities according
to IFRS. The paid in capital includes also other capital
contributions to the Group, which are not recorded to some
other reserve within the equity. The paid in capital includes
also the possible amount of share capital decrease, which
is not netted against accumulated losses or is not distributed
to shareholders.
Dividend proposal per share was for 2021 EUR 0.88
and dividend for 2020 was EUR 0.88.
23.2. Distributable earnings
See page 119 / Board of Director's Proposal to the Annual
General Meeting.
Short-term deposits have a maturity of three months or less.
Cash and cash equivalents are carried at nominal value,
which corresponds to their fair value.
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24. Provisions
2021 Warranty Restructuring
Pension
commitments Other Total
Total provisions as of January 1 63.7 64.8 6.0 26.5 161.0
Translation difference 0.9 0.4 0.5 0.6 2.4
Increase through business combination 0.0 0.0 0.0 0.0 0.0
Additional provision in the period 22.6 8.7 1.9 6.2 39.4
Utilization of provision 16.9 32.3 0.0 8.6 57.8
Unused amounts reversed 13.8 1.7 0.4 2.9 18.9
Total provisions as of December 31 56.4 39.8 8.0 21.8 126.1
2020 Warranty Restructuring
Pension
commitments Other Total
Total provisions as of January 1 55.7 80.7 6.2 28.2 170.8
Translation difference -0.5 -0.2 -0.5 -1.0 -2.3
Increase through business combination 2.3 0.0 0.0 0.0 2.3
Additional provision in the period 31.2 23.7 2.4 11.5 68.8
Utilization of provision 16.2 37.1 2.1 9.0 64.4
Unused amounts reversed 8.9 2.3 0.0 3.1 14.3
Total provisions as of December 31 63.7 64.8 6.0 26.5 161.0
The provision for warranties covers the expenses due to
the repair or replacement of products during their warranty
period. The warranty liability is based on historical realized
warranty costs for deliveries of standard products and
services. The usual warranty period is 12 months. For more
complex contracts, mainly including long-term projects,
the warranty reserve is calculated contract by contract
and the warranty period can be signicantly longer. The
restructuring provision is recognized when the Group
has prepared a detailed reorganization plan and begun
implementation of the plan or announced the matter. Pension
commitments include provisions for local pension schemes.
Other provisions include provisions for claims, litigations
and provisions for loss contracts in which the amount is not
provided for as part of work in progress or percentage
of completion receivable of the loss making project.
Restructuring costs
Konecranes has recorded EUR 11.3 million restructuring
costs during 1–12/2021 (EUR 42.6 million in 1–12/2020)
of which EUR 0.3 million was impairment of assets
(EUR 0.0 million for 1–12/2020). The remaining
EUR 11.0 million of restructuring cost is reported 1–12/2021
in personnel costs (EUR 13.5 million) and in other operating
expenses (EUR 2.8 million) and prots on disposal of assets
in other operating income (EUR 5.3 million).
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25. Current liabilities
25.1. Accruals
2021 2020
Wages, salaries
and personnel expenses
119.8 115.8
Pension costs 10.4 9.5
Interest 7.0 6.1
Other items 53.7 47.8
Total 190.9 179.2
2021 2020
Value added tax 23.2 29.3
Payroll tax liability 18.8 19.2
Other short-term liabilities 11.2 12.7
Total 53.2 61.2
Maturity
of undiscounted cash ows 2021 2020
within 1 year 40.1 41.4
1−5 years 70.4 78.0
over 5 years 24.0 19.5
Total 134.5 138.9
Lease liabilities included
in the balance sheet 2021 2020
Non current interest-bearing liabilities 85.1 90.9
Current interest-bearing liabilities 38.3 37.9
Total as of December 31 123.4 128.8
25.2. Other current liabilities
(non-interest bearing)
26. Lease accounting
Amounts recognized
in statement of income 2021 2020
Depreciation for right of use asset 42.5 43.9
Income for subleasing right of
use asset
-1.1 -1.3
Expenses related to short-term leases 4.2 4.4
Expenses related to leases
of low-value assets
2.5 2.9
Interest on lease liabilities 3.6 4.4
Total expenses 51.6 54.4
Total cash ow of leases 52.7 54.2
2021 2020
Loans from nancial institutions 328.5 479.8
Bonds 0.0 249.5
Pension loans 25.0 30.0
Lease liabilities 85.1 90.9
Other long-term loans 8.5 9.6
Total 447.1 859.7
2021 2020
Loans from nancial institutions 77.9 82.8
Bonds 249.8 0.0
Pension loans 5.0 5.0
Lease liabilities 38.3 37.9
Commercial papers 40.0 180.8
Other short-term loans 7.0 4.6
Overdraft 0.0 0.0
Total 418.0 311.1
The Group leases land and buildings for its production and
ofce space. The leases of production facilities typically
run for a period of two to seven years, and leases of ofce
space for one to ten years. Some leases include an option
to renew the lease for an additional period after the end
of the contract term. Konecranes Group has major lease
agreements of factory and ofce buildings in Hyvinkää
and Hämeenlinna, Finland. At the year end 2021 they are
still valid for 1–3 years unless the lessee extends the lease
period by ve years. The lessee is entitled to exercise the
5-year extention option three consecutive times. Group
has now included one 5-year option in the liability value.
The Group has various other leases for ofce equipment,
vehicles and premises with varying terms and renewal rights.
Vehicles have typically a lease term from three to seven
years. Leasing contracts comply with normal practices in
the countries concerned. The average interest rate in lease
contracts was 3.24% (3.15% in 2020).
27. Interest-bearing liabilities
27.1. Non-current
27.2. Current
During the year 2021, Group prepaid EUR 150 million
of its term loan. In addition, in the fourth quarter of 2021
the Group renanced the maturing EUR 73 million
Schuldschein loan with a bilateral term loan and downsized
respectively the committed merger nancing related facility
for the same amount. At the end of December, the Group's
liquid cash reserves were EUR 320.7 million (31.12.2020:
EUR 591.9 million). For safeguarding the Group's cash
position, the Group has established EUR 400 million
committed revolving credit facility with an international
loan syndication (2017–2024), which remained undrawn
at the end of December 2021. In addition, the Group may
draw short-term nancing from the domestic commercial
paper markets within the EUR 500 million limit, for which
EUR 40 million was utilized at the end of December 2021
(31.12.2020: EUR 181 million).
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At the end of December 2021, the outstanding short-
and long-term loans were: EUR 323 million term loans,
EUR 77 million Schuldschein loan, EUR 250 million bond
and EUR 30 million employment pension loan. In addition,
an undrawn EUR 392 million committed merger nancing
related facility (originally EUR 635 million) remained in place.
The Schuldschein loan and term loans contain oating and
xed rate tranches and the bond yield is xed with annual
coupon payment. The weighted average interest rate for
these loans and the bond is currently 1.21% per annum.
The Group is in compliance with the quarterly monitored
nancial covenant (Gearing). No specic securities have
been given for the loans. The Group continues to have
healthy Gearing ratio of 39.8 % (31.12.2020: 46.1%)
which is in compliance with the nancial covenants the
Group has to comply with.
Derivatives are initially recorded in the balance sheet at
fair value and subsequently measured at fair value at each
balance sheet date. All derivatives are carried as assets
when fair value is positive and liabilities when fair value is
negative. Derivative instruments that are not designated as
hedges (hedge accounting) are measured at fair value, and
the change in fair value is recognized in the consolidated
statement of income. When the derivative is designated
as a hedge (hedge accounting) the effective part of the
change in fair value is recognized in other comprehensive
income. Any ineffective part is recognized in the consolidated
statement of income. The foreign exchange forward contracts
are measured based on the closing date's observable spot
exchange rates and the quoted yield curves of the respective
currencies. Interest rate swaps are measured based on
present value of the cash ows, which are discounted based
on the quoted yield curves.
In addition the Group has certain revolving facilities
the details of which can be found in Note 33.3.
The average interest rate of the non-current liabilities
portfolio at December 31, 2021 was 1.42% (2020: 1.57%)
and that of the current liabilities portfolio was 1.54%
(2020: 0.98%). The effective interest rate for EUR-loans
varied between 0.06%–3.80% (2020: 0.29%–3.80%).
27.3. Maturity tables of nancial liabilities
and liquidity risk
The following table reects the maturity of interest
bearing liabilities.
2021 Maturity
Currency
Avg.
duration
Avg.
rate %
Less than
1 year 1–5 years
Over
5 years
Amount
MEUR
EUR 1.5 years 1.23 387.6 386.5 17.5 791.6
INR 1.1 years 8.86 0.5 0.1 0.0 0.6
CNY 1.5 years 4.97 1.0 0.8 0.0 1.8
USD 1.7 years 3.62 7.5 14.3 0.6 22.5
GBP 1.8 years 2.81 2.0 4.6 0.7 7.2
Others 1.0–3.1 years 1.38–20.78 19.3 15.6 6.5 41.4
Total 1.48 418.0 421.8 25.2 865.1
2020 Maturity
Currency
Avg.
duration
Avg.
rate %
Less than
1 year 1–5 years
Over
5 years
Amount
MEUR
EUR 1.8 years 1.21 279.6 787.2 23.6 1,090.4
INR 1.6 years 8.73 0.6 0.6 0.0 1.2
CNY 1.3 years 5.07 0.9 0.4 0.0 1.4
USD 1.7 years 3.68 7.8 17.3 1.1 26.1
GBP 1.8 years 2.94 1.7 4.5 0.9 7.0
Others 1.0–3.0 years 1.46–20.43 20.4 18.8 5.5 44.7
Total 1.41 311.1 828.7 31.0 1,170.8
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The following table reects all contractually xed pay-offs
for settlement, repayments and interest resulting from
recognized nancial liabilities, excluding derivatives.
The amounts disclosed are undiscounted net cash outows
for the respective upcoming scal years, based on the earliest
2021 Maturity
Currency
Avg.
duration
Avg.
rate %
Less than
1 year
1–5
years
Over
5 years
Amount
MEUR
EUR 1.5 years 1.23 399.9 400.7 13.9 814.6
INR 1.1 years 8.86 0.6 0.1 0.0 0.6
CNY 1.5 years 4.97 1.1 0.9 0.0 1.9
USD 1.7 years 3.62 7.8 14.4 0.8 22.9
GBP 1.8 years 2.81 1.4 3.9 0.9 6.2
Others 1.0–3.1 years 1.38–20.78 23.6 14.3 13.8 51.7
Total debt 1.48 434.4 434.3 29.4 898.1
Other nancial
liabilities
308.6 10.5 0.0 319.1
Total nancial
liabilities
743.0 444.8 29.4 1,217.2
2020 Maturity
Currency
Avg.
duration
Avg.
rate %
Less than
1 year
1–5
years
Over
5 years
Amount
MEUR
EUR 1.8 years 1.21 297.3 806.2 24.1 1,127.7
INR 1.6 years 8.73 0.6 0.7 0.0 1.4
CNY 1.3 years 5.07 1.0 0.5 0.0 1.5
USD 1.7 years 3.68 8.8 18.6 1.1 28.5
GBP 1.8 years 2.94 1.9 4.8 0.9 7.6
Others 1.0–3.0 years 1.46–20.43 22.5 21.0 5.8 49.2
Total debt 1.41 332.1 851.9 31.9 1,215.9
Other nancial
liabilities
262.7 7.2 0.0 270.0
Total nancial
liabilities
594.9 859.1 31.9 1,485.8
27.4. Liquidity risk, containing undiscounted cash ows
of non-derivative nancial liabilities by currency
date on which Konecranes could be required to pay. Cash
outows for nancial liabilities (including interest) without
xed amount or timing are based on the conditions existing
at December 31.
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27.5. Maturity prole of the Group's nancial liabilities
The following table reects the maturity of all nancial liabilities.
27.6. Changes in Group's liabilities arising from nancing activities
2021 Maturity of nancial liabilities
Liability type
Amount
drawn
Less than
1 year
1-5
years
Over
5 years
Loans from nancial institutions 406.4 77.9 328.5 0.0
Bonds 249.8 249.8 0.0 0.0
Lease liabilities 123.4 38.3 68.2 16.9
Commercial paper program 40.0 40.0 0.0 0.0
Pension loans 30.0 5.0 20.0 5.0
Other long-term debt and short-term loans 15.5 7.0 6.1 2.4
Overdraft 0.0 0.0 0.0 0.0
Derivative nancial instruments 16.9 16.9 0.0 0.0
Account and other payables 319.1 308.6 10.5 0.0
Total 1,201.0 743.5 433.2 24.4
2020 Maturity of nancial liabilities
Liability type
Amount
drawn
Less than
1 year
1-5
years
Over
5 years
Loans from nancial institutions 562.6 82.8 479.8 0.0
Bonds 249.5 0.0 249.5 0.0
Lease liabilities 128.8 37.9 72.6 18.3
Commercial paper program 180.8 180.8 0.0 0.0
Pension loans 35.0 5.0 20.0 10.0
Other long-term debt and short-term loans 14.2 4.6 6.9 2.7
Overdraft 0.0 0.0 0.0 0.0
Derivative nancial instruments 5.5 5.5 0.0 0.0
Account and other payables 270.0 262.7 7.2 0.0
Total 1,446.3 579.4 836.0 31.0
2021
Non-current
interest
bearing loans
Non-current
lease
liabilities
Current
interest
bearing
loans
Current
lease
liabilities
Financial
derivatives Total
Total liabilities as of
January 1
768.8 90.9 273.2 37.9 5.5 1,176.3
Cash ows -5.6 0.0 -296.4 -42.6 0.0 -344.6
Acquisitions and disposals 0.0 0.0 0.0 0.0 0.0 0.0
Foreign exchange
movement
0.3 2.5 0.6 1.1 0.0 4.5
Changes in fair values 0.0 0.0 0.0 0.0 11.4 11.4
Changes in lease contracts 0.0 36.3 0.0 -2.7 0.0 33.6
Other -401.6 -44.6 402.3 44.6 0.0 0.8
Total as of December 31 362.0 85.1 379.7 38.3 16.9 882.0
2020
Non-current
interest
bearing loans
Non-current
lease
liabilities
Current
interest
bearing
loans
Current
lease
liabilities
Financial
derivatives Total
Total liabilities as of
January 1
687.5 98.4 208.6 39.8 6.2 1,040.5
Cash ows 146.4 0.0 -20.1 -42.5 0.0 83.9
Acquisitions and disposals 7.9 6.5 12.3 1.3 0.0 28.0
Foreign exchange
movement
0.1 -2.9 -0.5 -1.5 0.0 -4.8
Changes in fair values 0.0 0.0 0.0 0.0 -0.6 -0.6
Changes in lease contracts 0.0 39.5 0.0 -9.9 0.0 29.6
Other -73.1 -50.6 72.9 50.6 0.0 -0.2
Total as of December 31 768.8 90.9 273.2 37.9 5.5 1,176.3
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28. Other long-term liabilities
28.1. Employee benets
The Company and most of its subsidiaries offer retirement
plans which cover the majority of employees in the Group.
Many of these plans are dened contribution, where
Konecranes' contribution and resulting charge is xed at a
set level or is a set percentage of employees' pay. However
the Group has signicant dened benet pension plans in
the United Kingdom, Germany and Switzerland as well as
individually insignicant plans in other countries. Companies
in many countries have also other long term employee
benets, such as part time pension benets and jubilee
benets, which are reported as dened benet plans.
The UK dened benet plan is administered by an
independent trustee company that is legally separated from
the Group. The investments are managed by a professional
and independent Fiduciary Manager who is appointed by
the trustees. The Fiduciary Manager appoints Investment
Managers as they see t in order to achieve the Trustees'
stated objectives for the scheme funding level and taking
into account the agreed risk appetite. The Fiduciary Manager
has trigger points set in conjunction with the Trustees
which, when reached, allow them to make changes to the
investments to repatriate the gains to achieve full funding
position. The UK plan, is subject to the UK's pensions
legislation, is regulated by the UK Pensions Regulator and is
exempt from most UK taxation through its registered status.
The UK plan was closed to new members in 2005. Under
the UK plan, the employees are entitled to post-retirement
installments calculated as an average annual basic salary
from the best three years within the last ten years. The net
liability in the United Kingdom was EUR 0.0 million
(EUR 0.0 million in 2020).
2021 2020
Employee benets 278.5 299.2
Other non-interest-bearing long-term
liabilities
10.5 7.2
Total 289.0 306.4
In Germany, the dened benet pension plans are direct
pension promises which are unfunded and administered by
a service provider. The payments to plan participants start
after retirement or in case of disability or death. Benets
are based on the number of years worked and the nal
salary. The commencement of pension payments depends
on the beginning of the state-pension, which is the earliest
at age 63 in case of early retirement and otherwise 65 for
old age pension. The biggest dened benet pension plan in
Germany is the Mannesmann Leistungsordnung (MLO), which
is closed to new employees. The monthly pension benet
provided by this plan is calculated as the ratio Individual
pay/Average pay, times the years of service, times 3.07,
and has to be at least equal to 2.10 times the years of
service. The net liability in Germany was EUR 242.4 million
(EUR 265.2 million in 2020) of which the MLO plan was
EUR 169.5 million (EUR 170.5 million in 2020).
The Swiss pension plans are administered via pension funds,
which are legally separated from the Group. The board
of Trustees of the pension funds are equally composed of
representatives of both the employer and employees. The
Trustees are required by law to act in the interest of all
relevant beneciaries and are responsible for the investment
policy with regard to the assets and the administration and
nancing of the benets. The plans function in and comply
with a large regulatory framework and comply with the
local minimum funding requirements. The plans are open
to new members. Both the Company and employees pay
contributions to fund the plans. The pension plans qualify as
dened benet plan for IFRS purposes, because accruals are
by law subject to a minimum guaranteed rate of return and
the plan has to guarantee a certain legal minimum level of
benets. There is hence a risk that the Company may have to
pay additional contributions. Under the plans, participants are
also insured against the nancial consequences of old age,
disability and death. The net liability in Switzerland was
EUR 7.4 million (EUR 5.1 million in 2020) of which the
pension plan was EUR 7.2 million (EUR 4.8 million in 2020).
The dened benet plans typically expose the Company
to actuarial risks such as: investment risk, interest rate risk,
longevity risk and salary risk. The investment risk is being
mitigated by investing the funds both to equity and debt
instruments.
The following tables summarize the components of net
benet expense recognized in the statement of prot
or loss and the funded status and amounts recognized in
the balance sheet for the respective plans:
28.2. Amounts recognized in the balance sheet
2021 2020
Present value of obligation
wholly unfunded
271.2 294.7
Present value of obligation
wholly or partly funded
86.8 86.1
Dened benet plan obligations 358.0 380.8
Fair value of plan assets -79.5 -81.6
Total net liability recognized 278.5 299.2
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2021 2020
Obligation as of January 1 380.8 364.1
Translation difference 5.6 -3.8
Business combinations 0.0 1.9
Reclassication of pension liabilities 0.0 0.7
Settlements and curtailments -0.1 -2.2
Current service cost 9.4 8.4
Interest cost 2.9 4.4
Past service cost -0.3 0.3
Actuarial gains (-) / losses (+)
arising from changes in demographic
assumptions
-3.1 0.5
Actuarial gains (-) / losses (+) arising
from changes in nancial assumptions
-20.2 27.8
Actuarial gains (-) / losses (+)
arising from experience
2.2 -2.3
Benets paid (-) -19.1 -19.0
Obligation as of December 31 358.0 380.8
Movements of the fair value
of plan assets 2021 2020
Fair value of plan assets as of January 1 81.6 80.5
Translation difference 5.1 -3.4
Business combinations 0.0 0.6
Reclassication of plan assets 0.0 0.5
Interest income 1.1 1.5
Employee contributions 1.4 0.4
Employer contributions 0.1 0.3
Settlements 0.0 0.0
The return on plan assets
(excluding amounts included
in the net interest expense)
-3.7 7.2
Benets paid (-) -6.2 -5.9
Fair value of plan assets as
of December 31
79.5 81.6
2021 2020
Service cost:
Current service cost 9.3 8.1
Net interest cost 1.8 3.0
Past service cost -0.3 0.3
Effect of settlement and curtailments -0.1 -2.2
Components of dened benet
plan costs recorded in prot or loss
10.7 9.1
2021 2020
Remeasurement on
the net dened benet liability:
The return on plan assets (excluding
amounts included in the net interest
expense) gains (-) / losses (+)
3.7 -7.2
Actuarial gains (-) / losses (+) arising
from changes
in demographic assumptions
-3.1 0.5
Actuarial gains (-) / losses (+) arising
from changes
in nancial assumptions
-20.2 27.8
Actuarial gains (-) / losses (+) arising
from experience
2.2 -2.3
Components of dened benet
plan costs recorded in other
comprehensive income
-17.6 18.8
Total (income (-) / expense (+)) -6.9 27.9
28.3. Components of dened benet plan
recorded in comprehensive income
The actuarial gains / losses in 2021 and 2020 were mainly
caused by the change of discount rates in the dened benet
plans of Germany, Switzerland and the United Kingdom.
28.4. Movements of the present value
of dened benet obligation
Of the benets paid, EUR 6.2 million (2020: EUR 5.9 million)
was paid from plan assets and EUR 12.9 million
(2020: EUR 13.1 million) by employer directly.
28.5. Major categories of plan assets
at the end of the reporting period
2021 2020
Equity instruments 13.6 14.4
Debt instruments 51.5 57.5
Insurances 1.6 1.1
Real estate 7.2 7.5
Others 5.5 1.1
Total plan assets 79.5 81.6
The plan assets do not contain any Konecranes shares
or assets.
Virtually all equity and debt instruments have quoted prices
in active markets. The plan assets originate from the United
Kingdom, Switzerland, Germany and India. It is the policy
of the UK fund to invest approximately 25–30% to growth
assets, such as equity instruments as well as property
and growth funds, and 70–75% to risk reducing assets
such as corporate bonds and xed or index-linked gilts.
The Swiss pension funds have a policy of investing their
assets approximately for 40–60% in Swiss bonds, about
15–35% in equities, and 15–25% in Swiss property and
mortgage loans. There is almost no exposure to alternative
investments. The Company can only indirectly and partially
determine the asset allocation through the 50/50 employer/
employee representation in the board of Trustees. The return
on plan assets was EUR -2.6 million (2020: EUR 8.7 million).
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Sensitivity analysis Increase Decrease
0.5% points change in
the discount rate
-7.0% 7.9%
0.5% points change in the expected
development of salaries
0.4% -0.4%
0.5% points change in the expected
development of pensions
5.5% -5.0%
28.6. Dened benet plan:
the main actuarial assumptions
With the objective of presenting the assets and liabilities
of the dened benet plans at their fair value on the balance
sheet, assumptions under IAS 19 are set by reference to
market conditions at the valuation date. Qualied independent
actuaries have updated the actuarial valuations under IAS
19 of the major dened benet schemes operated by the
Group to December 31, 2021. The assumptions used by
the actuaries are chosen from a range of possible actuarial
assumptions which, due to the long-term nature of the
schemes, may not necessarily be borne out in practice. The
actuarial assumptions used to calculate the benet liabilities
therefore vary according to the country in which the plan
is situated. The following table shows the assumptions,
weighted by liabilities, used to value the principal dened
benet plans.
Germany 2021 2020
Discount rate % 1.05 0.55
Expected development of salaries % 2.42 2.40
Expected development of pensions % 1.65 1.67
Mortality table: Richttafeln 2018 G von Klaus Heubeck
UK 2021 2020
Discount rate % 1.80 1.40
Expected development of pensions % 3.30 2.90
Mortality table: SAPS base table of S3PA, applied at year of birth
and weighted by male/female deferred members and pensioners,
and CMI 2020 (2020: CMI 2017) projections with a long term
improvement parameter of 1.25% (2020: 1.25%) per annum.
Switzerland 2021 2020
Discount rate % 0.17 0.05
Expected development of salaries % 1.25 1.25
Mortality table: BVG 2020 Generational and improvement factors
CMI 2019 LTR 1.5%.
Other 2021 2020
Discount rate % 0.60 - 12.42 0.22 - 12.07
Expected development of salaries % 1.10 - 10.05 1.08 - 8.80
Expected development of pensions % 1.61 - 10.57 1.50 - 6.90
The below table shows the % effect of a change
in the signicant actuarial assumptions used to determine
the retirement benets obligations in our main dened benet
pension obligation countries. The effect shows the increase
or decrease in the liability. In the calculation of the sensitivity
of the discount rate, any effect from the return of plan assets
has been ignored.
The sensitivity analyses above have been determined based
on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period and may not be
representative of the actual change. It is based on a change
in the key assumption while holding all other assumptions
constant. A linear extrapolation of these amounts based
on alternative changes in the assumptions as well as an
addition of combined changes in the individual assumptions
is not possible.
There are no changes in the way the sensitivity analyses
were performed compared to the previous years.
The average duration of the dened benet obligation
weighted by the present value of the dened benet
obligation is 15 years (2020: 16 years).
The Group expects to contribute EUR 1.4 million to the above
dened benet pension plans in 2022 (Employer contribution).
29. Share-based payments
Performance Share Plan
The Board of Directors of Konecranes Plc has resolved in
2017 to establish a long-term incentive plan for the Group
key employees and the President and CEO. The share-based
incentive plans are a Performance Share Plan 2017 for
the Group key employees, a Restricted Share Unit Plan
2017 for selected Group key employees and a Performance
Share Plan 2017–2021 for the President and CEO. The
potential rewards from the incentive plans will be paid partly
in Konecranes Plc shares and partly in cash to be used for
taxes and tax-related costs after the performance periods
or vesting periods. As a rule, no reward will be paid if a
plan participant's employment or service ends before the
reward payment. The Performance Share Plan includes three
performance periods, calendar years 2017–2019, 2018–2020
and 2019–2021. The Board of Directors will resolve on the
performance criteria and on the required performance levels
for each criterion at the beginning of each performance
period.
The Board of Directors resolved that the performance
criterion for the discretionary period 2018–2020 is the
cumulative adjusted Earnings per Share (EPS) of the
nancial years 2018–2020. Adjustments to the EPS include
dened restructuring costs, purchase price allocation
amortization and certain other unusual items. The target
group of the plan consisted of a maximum of 280 people
during the discretionary period 2018–2020. The rewards to
be paid on the basis of the discretionary period correspond
to the value of a maximum total of 710,000 Konecranes Plc
shares. If the target determined by the Board of Directors is
attained, the reward payout may be a half of the maximum
reward. The maximum reward payout requires that the
target is clearly exceeded.
The Board of Directors of Konecranes Plc resolved that the
performance criteria for the performance period 2019–2021
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under the company's Performance Share Plan (the "Plan")
are the cumulative adjusted Earnings per Share (EPS)
and the cumulative annual growth rate (CAGR) for Sales
of the nancial years 2019–2021. Adjustments to the EPS
include dened restructuring costs, purchase price allocation
amortization and certain other unusual items. The target
group of the Plan for the performance period 2019–2021
consists of a maximum of 200 key employees of the
Konecranes Group. The rewards to be paid on the basis of
the performance period 2019–2021 correspond to the value
of a maximum total of 670,000 Konecranes Plc shares. If the
target determined by the Board of Directors is attained, the
reward payout may be half of the maximum reward.
The maximum reward payout requires that the target is
clearly exceeded.
The Board of Directors of Konecranes Plc resolved in
2020 to establish a new Performance Share Plan 2020 for
Konecranes key employees. The Plan has a performance
period from 2020 to 2022 with three separate measurement
periods and separate targets for 2020, 2021 and 2022.
The criterion for the measurement periods 2020 and 2021 is
adjusted Earnings per Share (EPS). Adjustments to the EPS
include dened restructuring costs, mergers and acquisitions
related deal costs and other unusual items. The EPS target
for the rst and second measurement periods have also
been resolved by the Board of Directors. The target group of
the Plan for the performance period 2020–2022 consists of
a maximum of 170 key employees of the Konecranes group.
The rewards to be paid on the basis of the performance
period 2020–2022 correspond to the value of a maximum
total of 600,000 Konecranes Plc shares. The payment of
the total reward takes place in 2023 if the plan term
conditions are met. The potential rewards from the Plan
will be paid partly in company shares and partly in cash
after the performance periods. The cash proportion is
intended to cover taxes and tax-related costs arising from
the rewards to the plan participants. As a rule, no reward
will be paid if plan participant's employment or service ends
before the reward payment.
The Board of Directors of Konecranes Plc resolved in
2021 to establish a new Performance Share Plan 2021 for
Konecranes key employees. The Plan has a performance
period from 2021 to 2023 with three separate measurement
periods and separate targets for 2021, 2022 and 2023.
The criterion for the measurement period 2021 is adjusted
earnings per Share (EPS). Adjustments to the EPS include
dened restructuring costs, mergers and acquisitions related
deal costs and other unusual items. The EPS target for
the rst measurement period has also been resolved by
the Board of Directors. The target group of the Plan for the
performance period 2021–2023 consists of a maximum of
170 key employees of the Konecranes group. The rewards
to be paid on the basis of the performance period
2021–2023 correspond to the value of a maximum total of
634,921 Konecranes Plc shares. The payment of the total
reward takes place in 2024 if the plan term conditions are
met. The potential rewards from the Plan will be paid partly
in company shares and partly in cash after the performance
periods. The cash proportion is intended to cover taxes
and tax-related costs arising from the rewards to the plan
participants. As a rule, no reward will be paid if
plan participant's employment or service ends before the
reward payment.
Restricted Share Unit Plan
The Restricted Share Unit Plan 2017 is directed to selected key
employees in Konecranes. The vesting periods will last for 12
to 36 months. The prerequisite for reward payment is that a
key employee's employment or service continues until the end
of the vesting period. The rewards to be allocated on the basis
of the entire plan will amount to a maximum total of 200,000
Konecranes Plc class shares including also the proportion to
be paid in cash. No shares (45,000 shares in 2020) of the
restricted share unit plan were allocated during 2021.
Restricted Share Unit Plan 2020
Konecranes Plc and Cargotec Corporation have on
October 1, 2020 signed a combination agreement and
a merger plan to combine the two companies through
a merger ("Transaction"). The Board of Directors of
Konecranes Plc decided to establish a new share-based
incentive plan for the Group key employees. The new
Restricted Share Unit Plan 2020 ("Plan") is intended to
function as a bridge plan for the transition period before
the closing of the Transaction and forming the combined
company in the merger ("Transition Period"). The aim of
the Plan is to align the objectives of the shareholders and
the key employees, to secure business continuity during
the Transition Period, and to retain key employees at
the Company.
The reward from the Plan is conditional to the closing
of the Transaction. In addition, the reward is based on
a valid employment or service and the continuity of the
employment or service during the waiting period. The
reward is paid partly in shares and partly in cash, after the
end of the waiting period, ending on the closing date of the
Transaction. Shares received as a reward in the Plan may not
be sold, transferred, pledged or otherwise assigned during
the 12-month lock-up period. The lock-up period begins
on the date following the closing date of the Transaction.
The Plan is intended for selected key employees only,
approximately 100 employees, including the Konecranes
Leadership Team members. The rewards to be allocated in
Konecranes Plc shares on the basis of the Plan will amount
up to an approximate maximum total of 120,000 Konecranes
Plc shares. In addition, a cash proportion is included in the
reward to cover taxes and tax-related costs arising from
the reward.
Ownership Obligations
A member of the Group Executive Board must hold a
minimum of 50 percent of any net shares given on the
basis of these plans, until the member's shareholding in the
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company in total corresponds to the value of the member's
annual salary and the member's membership in the Group
Executive Board continues.
The fair value of the equity-settled portion of the share
rights granted is estimated at the date of grant using a
Monte-Carlo simulation model, taking into account the terms
and conditions upon which the share rights were granted.
The model simulates the TSR and compares it against
the group of principal competitors. It takes into account
historical and expected dividends, and the share price
uctuation covariance of the Group and its competitors
to predict the distribution of relative share performance.
Fair value of the cash-settled portion is measured at each
reporting date using a binomial option pricing model taking
into account the terms and conditions upon which the
instruments were granted and the current likelihood of
achieving the specied target.
Employee Share Savings Plan
The Group has launched an Employee Share Savings
Plan (ESSP) in which each participant will receive one
free matching share for every two acquired savings shares.
Matching shares will be delivered to a participant if the
participant holds the acquired shares from the plan until
the end of the designated holding period. The matching
shares will be paid in Konecranes shares and partly in cash.
The expenses of the plan are recognized over the vesting
period based on the quarterly acquired savings
share amounts.
The fair value of the equity-settled portion of the share
options granted is estimated at the date of grant using
a binominal option pricing model, taking into account the
terms and conditions upon which the share options were
granted. Fair value of the cash-settled portion is measured
at each reporting date using a binomial option pricing model
taking into account the terms and conditions upon which
the instruments were granted and the current likelihood
of achieving the specied target.
29.1. Expenses for employee service
29.3. Changes in the number of net share
rewards in Restricted Share Unit Plan 2020
29.2. Changes in the number of gross share
rewards in Performance Share Plan
2021 2020
Expense arising from equity-settled
share-based payment transactions
9.5 5.0
Expense arising from cash-settled
share-based payment transactions
2.5 0.7
Total expense arising from share-
based payment transactions
11.9 5.7
2021 2020
Number
of shares
Number
of shares
As of January 1 1,947,600 2,124,100
Share rewards granted 633,300 700,000
Share rewards awarded -2,000 -552,820
Share rewards expired -668,933 -280,135
Share rewards forfeited -194,167 -43,545
Total as of December 31 1,715,800 1,947,600
2021 2020
Number
of shares
Number
of shares
As of January 1 119,246 0
Share rewards granted 8,238 119,246
Share rewards forfeited -16,798 0
Total as of December 31 110,686 119,246
The carrying amount of the liability arising from cash settled
portion was EUR 3.0 million (2020: EUR 0.8 million).
29.4. Changes in the number of gross share
rewards in Employee Share Savings Plan
2021 2020
Number
of shares
Number
of shares
Outstanding as of January 1 182,160 146,344
Share rewards granted 64,142 66,329
Share rewards awarded -45,751 -21,480
Share rewards forfeited -10,113 -9,033
Outstanding as of December 31 190,438 182,160
29.5. Assumptions made in determining the fair
value of Performance Shares Plan
The fair value for the cash settled portion is remeasured at
each reporting date until the possible share delivery. The fair
value of the liability will thus change in accordance with the
Konecranes Plc share price.
For the 2018–2020 vesting periods granted in 2018, the fair
value for the equity settled portion is based on non market
vesting condition (adjusted EPS), for the 2019–2021 vesting
periods granted in 2019, the fair value for the equity settled
portion is based on two non market vesting conditions
(adjusted EPS and annual growth rate of sales). For the
2020–2022 vesting periods granted in 2020, the fair value
for the equity settled portion is based on non market vesting
condition (adjusted EPS) for the years 2020 and 2021 when
the condition for 2022 is still open. For the 2021–2023
vesting periods granted in 2021, the fair value for the equity
settled portion is based on non market vesting condition
(adjusted EPS) for the year 2021 when the condition for 2022
and 2023 are still open. The fair value for the equity settled
portion based on non market vesting condition has been
determined at grant using the fair value of Konecranes share
as of the grant date and expected dividend yield.
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2021 plan
2020
Restricted share
unit plan 2020 plan 2019 plan 2018 plan
Share price at grant, EUR 38.77 27.74 26.95 31.09 32.91
Share price at reporting period end
December 31, EUR
35.16 35.16 35.16 35.16 35.16
Expected volatility, % * 26.0% 31.0% 32.0% 25.0% 27.0%
Risk-free interest rate, % 0.0% 0.0% 0.0% 0.0% 0.0%
Expected dividend per share, pa, EUR 1.7 3.2 1.7 1.1 1.1
Expected contractual life in years 2.8 1.4 2.5 2.8 1.7
Weighted average fair value of the share
rewards at the grant date
33.75 24.54 22.59 27.66 29.55
Model used Black-Scholes Black-Scholes Black-Scholes Black-Scholes Black-Scholes
* Expected volatility was determined by calculating the historical volatility of the Konecranes share using monthly observations over
corresponding maturity.
30. Related party transactions
The related parties of Konecranes include subsidiaries (see
Company list), associated companies, joint ventures and
joint operations, pension fund in the United Kingdom and
the key management personnel of the Group and major
shareholders. The key management personnel of the Group
is comprised of the Board of Directors, the CEO and the
Konecranes Leadership Team.
30.1. Key Management compensation
Board of Directors
The remuneration packages for Board members are resolved
by the Annual General Meeting (AGM) on proposal by the
Nomination Committee. The AGM 2021 conrmed an annual
fee of EUR 140,000 for the Chairman of the Board (2020:
EUR 140,000), EUR 100,000 for the Vice Chairman of the
Board (2020: EUR 100,000), and EUR 70,000 for other Board
members (2020: EUR 70,000). In case the term of ofce of a
Board member ends before the closing of the Annual General
Meeting in 2022, he or she is entitled to the prorated amount
of the annual remuneration calculated on the basis of his or
her actual term in ofce. In addition, compensation of EUR
1,500 was approved per meeting for attendance
at Board committee meetings (2020: EUR 1,500).
However, the chairman of audit committee is entitled to
a compensation of EUR 3,000 (2020: EUR 3,000) per meeting
for attendance at audit committee meetings.
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2021
Total compensation to
the Board of directors
Number of shares
as part of
compensation
Value of
compensation
in shares, EUR
Compensation paid
in cash, EUR
Total
compensation, EUR
Chairman of the Board 1,508 55,908 96,092 152,000
Board members 3,770 139,771 288,229 428,000
Total 5,278 195,680 384,320 580,000
2020
Total compensation to
the Board of directors
Number of shares
as part of
compensation
Value of
compensation
in shares, EUR
Compensation paid
in cash, EUR
Total
compensation, EUR
Chairman of the Board 2,193 59,448 94,052 153,500
Board members 6,180 169,738 344,262 514,000
Total 8,373 229,185 438,315 667,500
According to the proposal, 50% of the annual remuneration
is to be used for acquiring shares in the company. The
remuneration may also be paid by transferring treasury
shares based on the authorization given to the board of
directors by the general meeting. In case such purchase
of shares cannot be carried out due to reasons related
either to the company or to a board member, the annual
remuneration shall be paid entirely in cash.
Travel expenses will be compensated against receipt.
President and CEO 2021 2020
Salary and benets, EUR (Jan 1 – Jan 31, 2020 Teo Ottola, Rob Smith Feb 1, 2020 – Dec 31, 2021) 901,303 750,830
Annual variable pay, EUR 256,284 0.0
Total 1,157,587 750,830
Expense of statutory pension plans (Teo Ottola Jan 1 – Jan 31, 2020, Rob Smith Feb 1, 2020 – Dec 31, 2021) 184,172 113,782
Expense of voluntary pension plans (Teo Ottola Jan 1 – Jan 31, 2020, Rob Smith Feb 1, 2020 – Dec 31, 2021) 106,664 107,186
Total 290,836 220,968
Annual variable pay of CEO (Rob Smith)
Accrued 615,815 0.0
Benets related to termination of employment (Panu Routila)
Paid during the period 0.0 758,302
Shareholding in Konecranes Plc (number of shares) 0.0 0.0
Performance share rights allocated (number of share rights)
1)
0.0 122,922
Share-based payment costs, EUR -218,859 218,859
Retirement age 63 years 63 years
Period of notice 6 months
Severance payment (including 6 months notice period)
18 months
salary and
fringe benets
1)
Number of 2020 restricted share rights are net share amounts. In addition, a cash part is included in the reward. Performance share rights
allocated to Rob Smith on December 31, 2021 are reported zero as he is not entitled to receive them.
Expense of statutory pension plans was EUR 0.0 million in 2021 (EUR 0.0 million in 2020).
President and CEO
The Human Resources Committee reviews the President
and CEO's performance. Based on this review and relevant
facts, the Board sets the total compensation package for the
President and CEO.
On October 7, The Board of Directors of Konecranes Plc
appointed Rob Smith as President and CEO of Konecranes
effective from February 1, 2020 and the former CEO Panu
Routila left the Group on October 6, 2019. The company's
CFO, Teo Ottola, who also serves as Deputy CEO, acted as
the interim CEO until Rob Smith started in the position.
On August 6, 2021 Konecranes announced that Rob Smith
has decided to leave the company. He left Konecranes
on December 31, 2021. The company's CFO, Teo Ottola,
who also serves as Deputy CEO, will be acting as the
interim CEO from January 1, 2022 until the completion
of the planned merger between Konecranes and
Cargotec Corporation.
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Konecranes Leadership Team
The Konecranes Leadership Team (KLT) convenes as
frequently as necessary, normally on a monthly basis.
Business Areas have their own management teams that
convene on a regular basis. Only the KLT is classied to key
management personnel due to the decision making power.
The Konecranes Leadership Team consists of the following
members:
• President and CEO
• Chief Financial Ofcer, Deputy CEO
• Executive Vice President, Business Area Service
• Executive Vice President, Industrial Equipment
• Executive Vice President, Port Solutions
• Executive Vice President, Technologies
• Senior Vice President, Human Resources
• Senior Vice President, General Counsel
• Senior Vice President, Integration and Project
Management Ofce
The Human Resources Committee of the Board will, based
upon a recommendation by the President and CEO, make a
proposal to the Board concerning the approval of the base
compensation review and incentive levels for KLT members.
The retirement age of the Finnish members of the KLT
(excluding the President and CEO) is set according to
the Employees Pensions Act (TyEL). The Finnish members
of the KLT also participate in the contribution-based
group pension insurance scheme offered to key personnel
in Finland. The dened contribution payment by the
company is 1% of annual salary excluding performance
based compensation (annual or long term incentives). The
Finnish KLT members also have life insurance and disability
insurances. Non-Finnish members have local insurances.
Konecranes Leadership Team excluding the President and CEO 2021 2020
Salary and benets, EUR 2,227,618 2,041,926
Annual variable pay, EUR 864,377 634,430
Total 3,091,995 2,676,357
Expense of statutory pension plans 335,934 280,349
Expense of voluntary pension plans 19,688 17,360
Total 355,622 297,709
Shareholding in Konecranes Plc (number of shares) 156,161 170,044
Performance share rights allocated (number of share rights)
1)
317,419 334,419
Share-based payment costs, EUR 2,014,697 720,725
There were no loans outstanding to the Konecranes Leadership Team at end of the period 2021 and 2020.
There were no guarantees on behalf of the Konecranes Leadership Team in year 2021 and 2020.
The employee benets to the key management personnel of the Group were in total EUR 7.3 million in year 2021
(EUR 5.6 million in year 2020).
1)
Number of 2020 restricted share rights are net share amounts. In addition, a cash part is included in the reward.
2021 2020
Sales of goods and services with associated companies and joint arrangements 18.0 20.0
Receivables from associated companies and joint arrangements 3.3 4.3
Purchases of goods and services from associated companies and joint arrangements 53.6 48.7
Liabilities to associated companies and joint arrangements 1.7 0.8
30.2. Transactions with associated companies and joint arrangements
Sales to and purchases from related parties are concluded using terms equivalent to arm's length transaction.
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30.3. Transactions with Pension Fund
in the United Kingdom
30.4. Transactions with Board members
31. Guarantees and contingent
liabilities
2021 2020
Employer contributions 0.0 0.0
2021 2020
Board member holding the bond
of Konecranes Plc through a 100%
owned company.
Interest-bearing short-term liabilities 0.1 0.1
2021 2020
For own commercial obligations
Guarantees 783.0 580.2
Other 55.1 33.4
Total 838.2 613.6
From time to time Konecranes provides customers with
guarantees that guarantee Company's obligations pursuant
to the applicable customer contract. In sales of investment
goods (machinery) the typical guarantees are the following:
• tender guarantees (bid bonds) given to the customer
to secure the bidding process
• advance payment guarantees given to the customer
to secure their down payment for project
• performance guarantees to secure customers over the
Company's own performance in customer contracts, and
• warranty period guarantees to secure the correction of
defects during the warranty period.
Contingent liabilities relating to litigation
Various legal actions, claims and other proceedings pend
against the Group in various countries. These actions,
claims and other proceedings are typical of this industry and
consistent with a global business offering that encompasses
a wide range of products and services. These matters
involve contractual disputes, warranty claims, product liability
(including design defects, manufacturing defects, failure to
warn and asbestos legacy), employment, vehicles and other
matters involving claims of general liability.
While the nal outcome of these matters cannot be
predicted with certainty, Konecranes has the opinion,
based on the information available to date and considering
the grounds presented for such claims, the available
insurance coverage and the reserves made, that the outcome
of such actions, claims and other proceedings, if unfavorable,
would not have a material, adverse impact on the nancial
condition of the Group.
32. Financial assets and liabilities
32.1. Carrying amounts of nancial assets and liabilities
2021 2020
Financial assets
Fair value
through
OCI
Fair value
through income
statement
Amortized
cost
Carrying amounts
by balance
sheet item
Fair value
through
OCI
Fair value
through income
statement
Amortized
cost
Carrying amounts
by balance
sheet item
Current nancial assets
Account and other receivables 0.0 0.0 520.2 520.2 0.0 0.0 520.1 520.1
Derivative nancial instruments 1.5 2.1 0.0 3.6 7.7 13.4 0.0 21.2
Cash and cash equivalents 0.0 0.0 320.7 320.7 0.0 0.0 591.9 591.9
Total 1.5 2.1 840.9 844.5 7.7 13.4 1,112.0 1,133.2
Financial liabilities
Non-current nancial liabilities
Interest-bearing liabilities 0.0 0.0 447.1 447.1 0.0 0.0 859.7 859.7
Other payables 0.0 0.0 10.5 10.5 0.0 0.0 7.2 7.2
Current nancial liabilities
Interest-bearing liabilities 0.0 0.0 418.0 418.0 0.0 0.0 311.1 311.1
Derivative nancial instruments 7.0 9.9 0.0 16.9 1.9 3.7 0.0 5.5
Account and other payables 0.0 0.0 308.6 308.6 0.0 0.0 262.7 262.7
Total 7.0 9.9 1,184.2 1,201.1 1.9 3.7 1,440.8 1,446.3
Additional information on nancial instruments is presented in Note 34.
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32.2. Fair values
Set out below is a comparison, by class, of the carrying amounts
and fair value of the Group's nancial assets and liabilities:
Carrying amount Fair value
Financial assets 2021 2020 2021 2020 Note
Current nancial assets
Account and other receivables 520.2 520.1 520.2 520.1 19,20
Derivative nancial instruments 3.6 21.2 3.6 21.2 34.1
Cash and cash equivalents 320.7 591.9 320.7 591.9 22
Total 844.5 1,133.2 844.5 1,133.2
Financial liabilities
Non-current nancial liabilities
Interest-bearing liabilities 447.1 859.7 448.3 864.6 27.1
Other payables 10.5 7.2 10.5 7.2
Current nancial liabilities
Interest-bearing liabilities 418.0 311.1 419.1 311.2 27.2
Derivative nancial instruments 16.9 5.5 16.9 5.5 34.1
Account and other payables 308.6 262.7 308.6 262.7 25.2
Total 1,201.0 1,446.3 1,203.4 1,451.3
The management assessed that cash and short-term
deposits, trade receivables, trade payables, bank overdrafts
and other current liabilities approximate their carrying
amounts largely due to the short-term maturities
of these instruments.
The fair value of the nancial assets and liabilities is included
at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other
than in a forced or liquidation sale. Long-term xed-rate
and variable-rate borrowings are evaluated by the Group
based on parameters such as interest rates and the risk
characteristics of the loan.
IFRS 7 requires that the classication of nancial instruments
at fair value be determined by reference to the source of
inputs used to derive the fair value. This classication uses
the following three-level hierarchy:
• Level 1 − quoted prices in active markets for identical
nancial instruments
• Level 2 − inputs other than quoted prices included within
level 1 that are observable for the nancial instrument,
either directly (i.e. as prices) or indirectly (i.e. derived
from prices)
• Level 3 − inputs for the nancial instrument that are not
based on observable market data (unobservable inputs)
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32.3. Hierarchy of fair values
The following table allocates nancial assets and nancial
liabilities measured at fair value to the three levels of the fair
value hierarchy.
2021 2020
Financial assets Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Derivative nancial instruments
Foreign exchange forward contracts 0.0 3.5 0.0 0.0 21.2 0.0
Fuel oil derivate 0.0 0.1 0.0 0.0 0.0 0.0
Interest rate derivative 0.0 0.0 0.0 0.0 0.0 0.0
Total 0.0 3.6 0.0 0.0 21.2 0.0
Other nancial assets
Cash and cash equivalents 320.7 0.0 0.0 591.9 0.0 0.0
Total 320.7 0.0 0.0 591.9 0.0 0.0
Total nancial assets 320.7 3.6 0.0 591.9 21.2 0.0
Financial liabilities
Derivative nancial instruments
Foreign exchange forward contracts 0.0 16.9 0.0 0.0 5.5 0.0
Total 0.0 16.9 0.0 0.0 5.5 0.0
Other nancial liabilities
Interest bearing liabilities 0.0 865.1 0.0 0.0 1,170.8 0.0
Other payables 0.0 0.0 3.0 0.0 0.0 0.7
Total 0.0 865.1 3.0 0.0 1,170.8 0.7
Total nancial liabilities 0.0 882.0 3.0 0.0 1,176.3 0.7
There were no signicant changes in classication of fair
value of nancial assets and nancial liabilities in the period
2020 to 2021. There were also no signicant movements
between the fair value hierarchy classications.
33. Management of nancial risks
The nature of Konecranes' business and its global presence
exposes it to a range of nancial risks. These risks include (i)
market risks, which include potential unfavorable changes in
foreign exchange rates, interest rates and commodities, (ii)
liquidity risk and (iii) credit and counterparty risk.
33.1. Market risk
The responsibility of identifying, evaluating and controlling
the nancial risks arising from the Group's global business
operations is divided between the business units and the
Group Treasury. However, the Group uses an approach
in which most of the management of nancial risks is
centralized to Konecranes' Group Treasury. The Group
Treasury functions within the legal entity Konecranes Finance
Corporation. By centralization and netting of internal foreign
currency cash ows, the Group's external hedging needs can
be minimized.
Konecranes Finance Corporation is not a prot center
in the sense that it would pursue to maximize its prots.
The Company aims to serve the operating companies
of the Group in reducing their nancial risks.
The Group's global business operations involve market risks
in the form of currency, interest rate and commodity risk.
The Group's objective is to increase the short-term stability
of the nancial environment for the business operations by
reducing the negative effects caused by price uctuations
and other uncertainties in the nancial markets.
Business units hedge their risks internally with the Group
Treasury. As a result of this, most of the nancial risks of
the Group are concentrated into one company, Konecranes
Finance Corporation, and can be evaluated and controlled
in an efcient way.
The level 3 valuations in other payables are contingent
consideration liabilities resulting from business combinations
or the acquisition of non-controlling interest and the cash
settled share based payment liability.
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Almost all funding, cash management and foreign exchange
with banks and other external counterparties are centralized
to and managed in Konecranes Finance Corporation in
accordance with the Group's Treasury Policy. In a few special
cases, when the local central bank regulation prohibits using
group services in hedging and funding, this must be done
directly between an operating company and a bank under
the supervision of the Group Treasury.
Konecranes Finance Corporation uses a treasury
system, which enables practically a real-time processing
of transactions and in-depth records of activities and
performance. The standard reporting is done on a weekly
basis and it covers group-level commercial and nancial cash
ows, foreign currency transaction exposure, debt positions,
portfolio of derivatives and counterparty credit exposure
for nancial transactions. In addition, all Group companies
participate in the monthly managerial and statutory reporting.
Foreign exchange risk
The Group's global business operations generate foreign
exchange risk. However, most of the business units only have
transactions in their own currency, i.e. these units have their
sales and costs as well as internal funding from Konecranes
Finance Corporation in their local home currency. Only 29 out
of some 150 Group companies operate regularly in a foreign
currency. These companies hedge their foreign exchange
risk with Group Treasury. Depending on the business area
and the probability of the cash ows, the hedging covers
operative cash ows for the next 1–24 months and is done
by using internal foreign exchange forward contracts.
In this way, Konecranes Finance Corporation can manage
the foreign exchange risk of the whole Group. The foreign
currency funding of the other Group companies and possibly
some external foreign currency funding can net some of
these foreign currency items. The residual net exposure can
be covered with commercial banks using foreign exchange
forward contracts or currency options. Currency derivatives
belonging to hedge accounting are managed in a separate
portfolio than derivatives hedging other commercial ows and
funding and cannot thus be netted out against other internal
items. These instruments are used when the hedging effect
cannot be obtained through internal netting and matching
of cash ows within the Group.
The business units' commercial bids in a foreign currency can
be hedged by using currency options or exchange forwards,
but, in general, using currency clauses covers the risk.
For certain large crane projects, the Group applies hedge
accounting under IAS 39. Hedges are done by using
foreign exchange forward contracts. Currently, only USD
denominated projects are included in the hedge accounting.
The hedge accounting portfolio comprises both USD sales
and purchases where gross ows are hedged separately.
At the end of 2021, the hedge accounting net cash ows
totaled USD 201 million (USD 207 million in 2020).
The following table shows the transaction exposure
of Konecranes Finance Corporation as of December 31,
2021, and December 31, 2020 (in EUR millions):
2021 2020
AED 1 10
AUD 38 19
BRL 5 4
CAD 20 16
CHF 3 1
CLP 1 1
CNY -2 -24
CZK 12 10
DKK 5 0
GBP 53 7
IDR 9 4
ILS 0 -3
INR 3 2
JPY 2 3
MXN -1 0
MYR 4 1
NOK 2 1
PHP 3 1
SEK -131 -58
SGD -10 -6
THB 4 2
TWD 1 1
USD 284 250
VND 2 0
ZAR 6 5
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2021 2020
AED 11 9
AUD 10 11
BDT 1 1
BRL 14 11
CAD 12 9
CHF 3 9
CLP 8 7
CNY 124 106
CZK 9 9
DKK 6 6
GBP -19 -26
HUF 3 3
INR 5 3
IDR 19 9
JPY -8 -8
MAD 2 2
MXN 2 2
MYR 14 22
NOK 1 1
PEN 6 5
PHP 6 7
PLN 1 1
RON 2 2
RUB 7 6
SAR -1 -2
SGD -37 -45
SEK -6 -15
THB 18 16
TWD 4 3
UAH 2 -2
USD 33 26
VND 1 0
ZAR 2 0
The following table shows the translation exposure,
which represents the equity of the Group in a local currency
as of December 31, 2021, and December 31, 2020
(in EUR millions):
See Note 34 for the notional and fair values of derivative
nancial instruments.
Changes in currency rates can affect the protability and
equity of the Group. The US dollar has the biggest impact,
as many of the large crane projects outside the United States
are denominated in USD and because the Group has a lot of
local business operations in the United States. A depreciation
of the USD would have a negative impact.
The following table shows the theoretical effects that
changes in the EUR/USD exchange rate would have on the
Group's annual EBIT and equity. An appreciation of US dollar
against euro for 10% increases EBIT by EUR 36.9 million
(43.9 million in 2020) and increases equity by EUR 3.6 million
(3.2 million in 2020). The below table provides a sensitivity
analysis over the past two years:
Change in
EUR/USD
rate
2021
EBIT
2021
Equity
2020
EBIT
2020
Equity
+10% -30.2 -2.9 -35.9 -2.6
-10% +36.9 +3.6 +43.9 +3.2
The EBIT effect comprises transaction exposure for euro-
based companies having frequent sales in USD and the
translation exposure from EBIT generated in USD translated
into euros. The transaction position is estimated for 2021
as the USD positions changes from one year to another
and these changes are mainly due to timing of major
ports projects and currencies used in them. The estimate
of the effects is based on the assumption that the USD
denominated transactions are not hedged. In practice,
however, all large projects with long maturities generating
a substantial portion of the annual changes in the transaction
position are hedged and subject to project specic pricing.
The change in equity is the translation exposure on the
Group's equity in USD.
Appreciating US dollar has a positive impact on Group's
operating margin when it impacts the revenues and costs
reported in euros asymmetrically. This is due to the fact
that the exchange rate change impacts mostly both Group's
revenues and costs and partly only either of these. If the
EBIT generated in USD based entities as well as cash ows
from long lasting projects, as they are subject to project
specic pricing which in practice may be adjusted to reect
the currency rate changes, are excluded from the sensitivity
analysis, the effect on EBIT is estimated to be approximately
a EUR 9 million increase (EUR 10 million in 2020) when the
dollar appreciates 10 percent.
Interest rate risk
Changes in market interest rates have an impact on the
Group's net interest expenses and the market value of
interest rate derivatives. The objective for interest rate risk
management is to reduce the volatility impact the market
interest rate changes cause by optimizing the allocation
between xed and oating interest rates according to
principles set in capital structure management.
Approximately 92% of the Group's interest-bearing liabilities
are denominated in euro (93% in 2020). See note 27.3 for
the currency split of outstanding debt.
The portion of the Group's long-term debt of total debt is
related to the Group's gearing ratio. The higher the ratio
is, the bigger the share of long-term debt should be of the
total loan portfolio in line with principles set in the capital
structure management. The interest rate risk related to long
term loans may be hedged with interest rate derivatives such
as interest rate swaps for which hedge accounting is applied.
Other instruments that can be used for which no hedge
accounting is applied are forward rate agreements, interest
rate futures and interest rate options.
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A change of one percentage point in interest rates in the
Group's long-term debt portfolio would have the following
effect on the Group's income statement and equity:
Change in
interest
rates
2021
Income
statement
2021
Equity
2020
Income
statement
2020
Equity
+1 -3.6 +0.0 -5.2 +0.0
-1 +0.9 -0.0 +1.0 -0.0
The effect on income statement is comprised of the Group's
oating long-term debt which is recognized through the
statement of income. The effect on equity is comprised
of the changes in fair value of interest rate swaps which
are hedging the debt portfolio. The effect of one percentage
point decline is calculated with a 0% interest rate oor.
The proportion of xed interest loans in the loan portfolio
can be increased by means of interest rate derivatives.
As a consequence of this treasury policy, the Group's average
interest rate level, in general, can be higher than the market
level of short-term interest rates when low rates prevail and,
on the other hand, lower than the market level when high
rates prevail.
Commodity risk
By using fuel oil derivatives, the Group may reduce the
negative effect caused by oil price uctuation. The overall
importance of the energy price risk is small compared to
other nancial risks and cannot be described as signicant.
See note 34 for the notional and fair values of derivative
nancial instruments.
Steel prices are xed as a normal part of the procurement
process. Price changes naturally affect the future
procurement, but these changes can be taken into
consideration in the price quotes to the end customers.
In large crane projects, the steel structures are
sub-contracted and as a normal part of the sub-contracting
process, the steel is included in the price of the sub-
contracting (i.e. the price is xed with the sub-contractor).
The Group can procure steel and steel components and
thus may have an inventory of those. Market price uctuation
of steel can impact the protability of customer projects
or cause inventory obsolescence.
33.2. Credit and counterparty risks
Credit risk arises from the potential failure of a commercial
counterparty to meet its commercial payment obligations.
To limit this risk, the Group applies a conservative credit
policy towards customers. It is Konecranes practice to
review customers carefully before entering into formal
business relationships and to require credit reports from
new customers. Customer credit risks are mitigated with
advance payments, letters of credits, payment guarantees
and credit insurance where applicable. With these actions
and careful monitoring of the customer payments credit
risks can be mitigated.
The business units manage credit risks related to their
commercial ows. There is currently no signicant
concentration of credit risk regarding the commercial
activities, as the number of customers is high and their
geographic distribution is wide. It is the Group's policy not
to fund its customers beyond regular payment terms.
See note 19 for a table of an aging analysis of accounts
receivable. The theoretical maximum credit risk equals
the carrying amount of all receivables.
Counterparty risk arises from the potential failure of
a nancial institution to meet its payment obligations
regarding nancial instruments. All credit risks related
to other nancial instruments than the regular accounts
receivable are managed by Konecranes Group Treasury.
There is no substantial concentration of credit risk regarding
the nancial instruments, since investments are rare and
hedging instruments are done with a number of banks.
Additionally, counterparties for nancial instruments are
limited to the core banks of the Group. These are all major
banks with good credit ratings. The majority of all nancial
instruments are of short-term nature, with maturity of less
than one year. There are no signicant deposits or loans
granted with external counterparties.
The Group has counterparty risk in form of cash holdings
in several banks around the world. Despite the active cash
management structures, the Group has in place, cash
holdings globally with several banks are needed to ensure
the liquidity of Group companies. The Group Treasury follows
closely the exposure in the Group according to principles set
out in the Treasury Policy and takes necessary actions for
reducing the risk.
A credit risk is run on the nancial assets of the Group,
which consist of cash and cash equivalents, receivables
and certain derivatives arising from default of the other
party, with a maximum risk equal to the carrying amount
of these instruments.
33.3. Liquidity risks
Liquidity risks concern the availability of liquid assets or
funding. Lack of funding might jeopardize normal business
operations and eventually might endanger the ability to fulll
daily payment obligations.
For managing the liquidity risks, the Group has established
EUR 400 million committed revolving credit facility with an
international loan syndication (2017–2024). At the end of
2021, the facility was unutilized. To cover the short-term
funding needs, Konecranes Finance Corporation can borrow
from institutional investors through domestic commercial
paper program (totaling EUR 500 million). In addition,
business units around the world have working capital facilities
totaling some EUR 270 million to cover the day-to-day
funding needs. Cash and cash equivalents totaled EUR 323.5
million at the end of 2021 (EUR 593.7 million in 2020).
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See note 27.3 for the maturity prole of the Group's
nancial liabilities.
33.4. Capital structure management
The primary objective of the Group's capital structure
management is to ensure that it maintains a good credit
status and a healthy capital ratio to support its business
operations. At the same time, the Group also aims to
maximize shareholder value by effective use of capital.
The Group manages its capital structure and ne-tunes it to
adjust to probable changes in economic conditions. These
actions may include adjusting the dividend payment to
shareholders, buying back own shares or issuing new shares.
The Group monitors its capital structure using gearing ratio.
This is calculated as a ratio of interest-bearing liabilities less
liquid assets less loans receivable to total equity. At the end
of 2021, the gearing ratio was 39.8% (46.1% in 2020).
The Group has a quantitative target for the capital structure
in which the Interest-bearing net debt to equity ratio
(gearing) should be below 80%.
The Group decides on the split between long-term and short-
term debt in relation to the gearing ratio level. The following
table shows the rough guidelines for the portion of long–term
debt of total debt under different gearing ratio levels:
Gearing ratio level
Portion of long–term
of total debt
Under 50% Under 1/3
Between 50–80% Between 1/3 and 2/3
Over 80% Over 2/3
The Group monitors the gearing ratio level on a weekly basis.
The target of the Group's capital management has been met
in recent years.
34. Hedge activities and derivatives
Derivatives are initially recorded in the balance sheet at
fair value and subsequently measured at fair value at each
balance sheet date. All derivatives are carried as assets
when fair value is positive and liabilities when fair value is
negative. Derivative instruments that are not designated as
hedges (hedge accounting) are measured at fair value, and
the change in fair value is recognized in the consolidated
statement of income. When the derivative is designated as
a cash-ow hedge (hedge accounting), the effective part of
the change in fair value is recognized in other comprehensive
income. Any ineffective part is recognized in the consolidated
statement of income. The foreign exchange forward contracts
are measured based on the closing date's observable spot
exchange rates and the quoted yield curves of the respective
currencies. Interest rate swaps are measured based on
present value of the cash ows, which are discounted based
on the quoted yield curves.
34.1. Nominal and fair values of derivative
nancial instruments
2021
Nominal
value
2021
Fair
value
2020
Nominal
value
2020
Fair
value
Foreign exchange
forward contracts
1,060.1 -13.4 1,052.2 15.6
Interest rate
derivative
88.4 0.0 0.0 0.0
Fuel oil derivative 1.4 0.1 0.0 0.0
Total 1,149.9 -13.3 1,052.2 15.6
Derivatives not designated as hedging instruments
The Group also enters into other derivatives, foreign
exchange or currency options with the intention of reducing
the risk of expected sales and purchases, these other
contracts are not designated in hedge relationships and are
measured at fair value through prot or loss.
See note 32.3 for the fair values of the derivatives recognized in assets
and liabilities.
Cash ow hedges
Foreign currency risk
Foreign exchange forward and interest rate derivative
contracts measured at fair value through OCI are designated
as hedging instruments in cash ow hedges of forecast sales
and purchases and receivables in US dollar. These forecast
transactions are highly probable, and they comprise about
30.8% of the Group's total hedged transaction ows.
The foreign exchange forward contract balances vary with
the level of expected foreign currency sales and purchases
and changes in foreign exchange forward rates.
At the inception of these deals the Group assess whether
the critical terms of the foreign currency forward contracts
match the terms of the expected highly probable forecast
transactions. On a quarterly basis, the Group performs
qualitative effectiveness test by checking that the hedging
instrument is linked on the relevant assets and liabilities,
projected business transactions or binding contracts
according to the hedging strategy and that there are no
related credit risks. Hedge ineffectiveness is recognized
through prot or loss.
The cash ow hedges of the expected future sales and
purchases in 2021 and 2020 were assessed to be highly
effective and a net unrealized loss, with a deferred tax asset
relating to the hedging instruments, is included in OCI.
The amounts recognized in OCI are shown in the table below,
and the reclassications to prot or loss during the year are
as shown in the consolidated statement of income.
34.2. Fair value reserve of cash ow hedges
2021 2020
Balance as of January 1 6.0 -0.5
Gains and losses deferred to equity (fair
value reserve)
-11.0 8.1
Change in deferred taxes 2.2 -1.6
Balance as of December 31 -2.8 6.0
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35. Merger plan with
Cargotec Corporation
On October 1, 2020 Konecranes Plc ("Konecranes")
and Cargotec Corporation ("Cargotec") announced that
their respective Boards of Directors signed a combination
agreement (the "Combination Agreement") and a merger
plan to combine the two companies through a merger
(the "Future Company"). The EGM on December 18,
2020 approved the merger of Konecranes into Cargotec
in accordance with the merger plan signed by
the Boards of Directors of Konecranes and Cargotec
on October 1, 2020 and approved the Merger Plan.
The customer industries of the Future Company will
include container handling, manufacturing, transportation,
construction and engineering, paper and pulp, metals
productions, mining, power, chemicals and marine industries.
The Future Company's name will be determined and
announced at a later stage. Pursuant to the merger plan,
the Board of Directors of Cargotec will propose to the
shareholders' general meeting of Cargotec to be convened
prior to the completion of the merger that the articles of
association of Cargotec will be amended in connection with
the registration of the execution of the merger to contain
a new name of the Future Company. The location of the
headquarters of the Future Company will be decided later.
The proposed combination will be implemented as a statutory
absorption merger whereby Konecranes will be merged into
Cargotec. Prior to or in connection with the completion
of the merger, Cargotec will issue new shares without
payment to the shareholders of Cargotec in proportion
to their existing shareholding by issuing two (2) new class
A shares for each class A share and two (2) new class
B shares for each class B share, including new shares to be
issued to Cargotec for its treasury shares. Upon completion,
Konecranes' shareholders will receive as merger consideration
0.3611 new class A shares and 2.0834 new class B shares
in Cargotec for each share they hold in Konecranes on the
record date. This implies that Konecranes shareholders would
own approximately 50 percent of the shares and votes of
the Future Company, and Cargotec shareholders would own
approximately 50 percent of the shares and votes of the
Future Company. In addition to the merger consideration
shares, all the existing class A shares of Cargotec will be
listed on Nasdaq Helsinki in connection with the merger.
The Konecranes Annual General meeting approved the
Board's proposal and authorized the Board of Directors
to resolve, before the completion of the Merger, on an extra
distribution of funds to be paid either from the Konecranes'
reserve for invested unrestricted equity as a return
of equity or from its retained earnings as a dividend
or as a combination of both so that the total maximum
amount of funds to be distributed under the authorization
would amount to EUR 158,268,918 corresponding to
EUR 2.00 per share. The authorization is in force until
the opening of the following Annual General Meeting of
Konecranes. The extra distribution of funds will be paid
in addition to the ordinary distribution(s). Konecranes and
Cargotec have obtained necessary commitments for
the nancing of the completion of the merger.
The completion of the Merger is subject to necessary merger
control approvals having been obtained and other conditions
to completion having been fullled. In July, the European
Commission and the UK Competition and Markets Authority
(CMA) opened Phase II reviews in connection with the
planned Transaction. Also, the US Department of Justice has
opened phase II review of the merger. Further investigations
regarding the proposed remedies and negotiations with
relevant competition authorities regarding anti-trust concerns
continue, and Konecranes and Cargotec are awaiting their
decisions. The companies continue to work towards
the merger being completed by the end of H1 2022.
Until completion, both companies will operate fully
separately and independently.
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Company list
(1,000 EUR)
Subsidiaries owned
by the parent company
Book
value of
shares
Parent
company's
share, %
Group's
share, %
Finland: Konecranes Finance Oy 46,448 100 100
Konecranes Finland Oy 17,163 26.02 100
Konecranes Global Oy 102,391 100 100
Subsidiaries
owned by the group
Book value
of shares
Group's
share, %
Australia: Konecranes and Demag Pty Ltd 20,751 100
MHE-Demag Australia Pty Ltd 16,942 100
Austria: Konecranes and Demag Ges.m.b.H. 29,775 100
Bangladesh: Konecranes and Demag (Bangladesh) Ltd. 104 100
Belgium: S.A. Konecranes N.V. 6,150 100
Brazil: Konecranes Demag Brasil Ltda. 32,688 100
Canada: Konecranes Canada Inc. 893 100
Chile: Konecranes Chile SpA 1 100
China: Cranes and Parts Trading (Shanghai) Co., Ltd. 5,862 100
Dalian Konecranes Company Ltd. 2,085 100
Demag Cranes & Components (Shanghai) Co., Ltd. 14,349 100
Konecranes (Shanghai) Co. Ltd. 0 100
Konecranes (Shanghai) Company Ltd. 4,210 100
Konecranes Manufacturing (Jiangsu) Co., Ltd. 28,587 100
Konecranes Port Machinery (Shanghai) Co., Ltd. 7,606 100
SWF Krantechnik Co., Ltd. 780 100
Czech Republic: Konecranes and Demag s.r.o. 2,823 100
Denmark: Konecranes Demag A/S 13,597 100
Estonia: Konecranes Oü 0 100
Finland: Nosturiexpertit Oy 10 100
France: KCI Holding France SAS 40,500 100
Konecranes (France) SAS 2,482 100
MHPS Cranes France SAS 9,904 100
Verlinde SAS 10,720 100
Germany: Demag Cranes & Components GmbH 744,213 100
Eurofactory GmbH 1,239 100
Konecranes GmbH 483,804 100
Konecranes Holding GmbH 315,262 100
Konecranes Noell GmbH 38,608 100
Konecranes Real Estate GmbH Co. & KG 33,652 94
Konecranes Real Estate Verwaltungs GmbH 28 100
Kranservice Rheinberg GmbH 1,492 100
SWF Krantechnik GmbH 15,500 100
(1,000 EUR)
Subsidiaries
owned by the group
Book value
of shares
Group's
share, %
Greece:
Konecranes Hellas Lifting Equipment and Services
S.A.
60 100
Hong Kong: Konecranes Hong Kong Limited 0 100
Hungary: Konecranes Kft. 889 100
Konecranes Supply Hungary Kft. 2,233 100
India: Konecranes and Demag Private Limited 17,335 100
Indonesia: Pt. Konecranes 2,344 100
PT MHE-Demag Indonesia 3,369 100
PT MHE-Demag Technology Indonesia 312 67
Ireland: Konecranes and Demag Limited 300 100
Israel: Konecranes Israel Ltd 0 100
Italy: Demag Cranes & Components S.r.l. 13,997 100
Donati Sollevamenti S.r.l. 2,561 100
MHPS Italia S.r.l. 0 100
Japan: Konecranes Company, Ltd. 0 100
Latvia: SIA Konecranes Latvija 2 100
Lithuania: UAB Konecranes 139 100
Luxembourg: Materials Handling International S.A. 300 100
Malaysia: Konecranes Sdn. Bhd. 499 100
Mechanical Handling Engineering (M) Sdn Bhd 400 100
MHE-Demag Logistics Malaysia Sdn Bhd 2,498 100
MHE-Demag Malaysia Sdn Bhd 6,555 100
Rainelds Estate Sdn Bhd 1,293 100
Mexico: Konecranes Mexico S.A. de C.V. 2,188 100
Morocco: Konecranes Maghreb S.a.r.l. 50 100
The
Netherlands:
Konecranes B.V. 4,201 100
Konecranes Holding B.V. 313,851 100
Port Software Solutions B.V. 43,080 69.78
TBA B.V. 3,678 69.78
Norway: Konecranes AS 3,588 100
Peru: Konecranes Peru S.R.L. 0 100
Philippines: MHE-Demag (P), Inc. 5,453 100
Poland: Konecranes and Demag Sp. z o.o. 1,359 100
Portugal: Konecranes and Demag, Lda. 3,293 100
Romania: S.C. Konecranes S.A. 98 100
S.C. TBA RO S.r.l. 10 69.78
Russia: AO "Konecranes Demag Rus" 160 100
Saudi Arabia: Saudi Cranes & Steel Works Factory Co. Ltd. 10,134 100
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(1,000 EUR)
Subsidiaries
owned by the group
Book value
of shares
Group's
share, %
Singapore: KCI Cranes Holding (Singapore) Pte. Ltd. 114,764 100
MHE-Demag (S) Pte. Ltd. 189,693 100
SWF Krantechnik Pte. Ltd. 164 100
Slovakia: Konecranes Slovakia s.r.o. 200 100
Slovenia: Konecranes, d.o.o. 200 100
South Africa: Konecranes and Demag (Pty) Ltd. 0 100
MHPS (Pty) Ltd 0 100
Port Equipment Southern Africa (Pty) Ltd 0 100
Spain: Konecranes and Demag Ibérica, S.L.U. 31,799 100
Sweden: Konecranes AB 1,334 100
Konecranes Lifttrucks AB 22,669 100
Konecranes Sweden Holding AB 1,682 100
Ulvaryd Fastighets AB 1,267 100
Switzerland: Konecranes and Demag AG 17,205 100
Taiwan: MHE-Demag Taiwan Company Limited 1,696 100
Thailand: Katrolin Enterprise (T) Ltd 83 100
Katrolin Holding (T) Ltd 94 100
Konecranes (Thailand) Ltd.* 111 49
Mahakorn (T) Ltd 80 100
MHE-Demag (T) Ltd 288 100
MHE-Demag Technology (T) Ltd 255 100
Scenic Wealth (T) Ltd 138 100
Turkey: Konecranes Ticaret Ve Servis Limited Sirketi 93 100
Ukraine: Konecranes Ukraine JSC 2,049 100
PJSC "Zaporozhje Kran Holding" 257 100
JSC "Zaporozhcran" 0 90.43
United Arab
Emirates:
Demag Cranes & Components Holding Ltd. 0 100
Demag Cranes & Components (Middle East) FZE 14,132 100
Konecranes Middle East FZE 1,774 100
United
Kingdom:
Demag Cranes and Components Guarantee Ltd. 0 100
Demag Cranes & Components Holdings Ltd. 0 100
KCI Holding UK Ltd. 13,656 100
Konecranes Demag UK Limited 6,742 100
Lloyds Konecranes Pension Trustees Ltd. 0 100
Morris Material Handling Ltd. 595 100
TBA Doncaster Limited 2,011 69.78
TBA Leicester Limited 10,342 69.78
UKMHPS Limited 41,374 100
U.S.A. Demag Cranes & Components Corp. 59,800 100
KCI Holding USA Inc. 53,901 100
Konecranes, Inc. 47,051 100
Konecranes Nuclear Equipment & Services, LLC 0 100
(1,000 EUR)
Subsidiaries
owned by the group
Book value
of shares
Group's
share, %
MMH Americas, LLC 0 100
Morris Material Handling, Inc. 63,075 100
R&M Materials Handling, Inc. 7,240 100
Vietnam: Konecranes Vietnam Co., Ltd 0 100
MHE-Demag Vietnam Company Ltd 2,611 100
*Konecranes Group has the majority representation on the entity's board of directors and approves all major
operational decisions and thereby Konecranes consolidates them in the Group's nancial statements.
Other shares and joint operations
Assets
value
Group's
share, %
Estonia: AS Konesko 4,448 49.46
Finland: Kiinteistöosakeyhtiö Kuikantorppa 261 50
Investments accounted for using the equity method
Assets
value
Group's
share, %
China: Guangzhou Technocranes Company, Ltd. 570 25
Jiangyin Dingli Shengshai High Tech Industrial Crane
Company, Ltd.
138 30
Shanghai High Tech Industrial Crane Company, Ltd. 2,358 28
Finland: Fantuzzi Noell Baltic Oy 493 25
France: Boutonnier Adt Levage S.A. 488 25
Levelec S.A. 216 20
Manulec S.A. 235 25
Manelec S.A.R.L. 84 25
S.E.R.E. Maintenance S.A. 221 25
Germany:
AQZ Ausbildungs- und Qualizierungszentrum
Düsseldorf GmbH
0 30
Singapore: MHE-Demag Techonology (S) Pte. Ltd. 704 49.99
Switzerland: Demag IP Holdings GmbH 135 50
Thailand: CSA Crane Service Asia Company Ltd 171 49
United Arab
Emirates:
Crane Industrial Services LLC 993 49
Available-for-sale investments
Book value
of shares
Group's
share, %
Finland: East Ofce of Finnish Industries Oy 50 5.26
Dimecc Oy 120 5.69
Levator Oy 0 19
Vierumäen Kuntorinne Oy 345 3.3
France: Heripret Holding SAS 53 19
Malaysia: Kone Products & Engineering Sdn. Bhd. 0 10
Venezuela: Gruas Konecranes CA 20 10
Others: 203
Total: 791
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Parent company statement of income − FAS
(1,000 EUR)
Jan 1–Dec 31
2021
Jan 1–Dec 31
2020
Note:
Other operating income 0 437
2 Depreciation and impairments -179 -134
3 Other operating expenses -48,913 -14,787
Operating prot -49,092 -14,485
4 Financial income and expenses 35,841 71,685
Income before appropriations and taxes -13,251 57,200
5 Appropriations 52,388 58,352
6 Income taxes -362 -8,441
Net income 38,775 107,112
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Parent company balance sheet − FAS
(1,000 EUR) Dec 31, 2021 Dec 31, 2020
Note:
ASSETS
NON-CURRENT ASSETS
Tangible assets
7 Machinery and equipment 547 689
Advance payments 0 2
547 691
8 Investments
Investments in Group companies 153,040 153,040
Other shares and similar rights of ownership 170 170
153,210 153,210
Total non-current assets 153,758 153,901
CURRENT ASSETS
Long-term receivables
Loans receivable from Group companies 1,043,232 1,070,232
1,043,232 1,070,232
Short-term receivables
Accounts receivable 10,988 1,619
Amounts owed by Group companies
Accounts receivable 4,538 3,704
10 Deferred assets 74,897 86,335
Other receivables 8,407 4,101
10 Deferred assets 2,703 2,557
101,534 98,318
Cash in hand and at banks 3 3
Total current assets 1,144,769 1,168,553
TOTAL ASSETS 1,298,527 1,322,454
(1,000 EUR) Dec 31, 2021 Dec 31, 2020
Note:
SHAREHOLDERS' EQUITY
AND LIABILITIES
11 EQUITY
Share capital 30,073 30,073
Share premium account 39,307 39,307
Paid in capital 774,591 774,591
Retained earnings 141,510 104,037
Net income for the period 38,775 107,112
1,024,256 1,055,119
APPROPRIATIONS
Depreciation difference 65 114
LIABILITIES
Non-current liabilities
12 Bond 0 249,482
0 249,482
Provisions 0 346
Long-term liabilities
Loans payable to Group company 893 1,792
893 1,792
Current liabilities
12 Bond 249,841 0
Accounts payable 9,892 1,453
Liabilities owed to Group companies
Accounts payable 140 1,527
13 Accruals 2,102 3,493
Other short-term liabilities 1,001 66
13 Accruals 10,338 9,063
273,313 15,602
Total liabilities 274,206 267,222
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES
1,298,527 1,322,454
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Parent company cash ow − FAS
(1,000 EUR)
Jan 1–Dec 31
2021
Jan 1–Dec 31
2020
Cash ow from operating activities
Operating income -49,092 -14,485
Adjustments to operating prot
Depreciation and impairments 179 134
Group contributions from subsidiaries 58,320 57,190
Operating income before changes in net working capital 9,407 42,840
Change in interest-free short-term receivables -4,435 3,112
Change in interest-free short-term liabilities 7,300 5,524
Change in net working capital 2,864 8,636
Cash ow from operations before nancing items and taxes 12,271 51,476
Interest received 5,231 5,246
Interest paid -4,514 -4,401
Other nancial income and expenses -1,866 -1,599
Income taxes paid -5,049 -8,786
Financing items and taxes -6,198 -9,540
NET CASH FROM OPERATING ACTIVITIES 6,073 41,936
(1,000 EUR)
Jan 1–Dec 31
2021
Jan 1–Dec 31
2020
Cash ow from investing activities
Capital expenditure and advance payments to tangible assets -35 -271
Capital expenditure and advance payments to intangible assets 0 24
Dividends received 37,500 83,000
NET CASH USED IN INVESTING ACTIVITIES 37,465 82,752
Cash ow before nancing activities 43,537 124,688
Cash ow from nancing activities
Proceeds from share based payments and share issues 0 5,226
Repayments of long-term receivables 26,101 -34,954
Dividends paid -69,638 -94,960
NET CASH USED IN FINANCING ACTIVITIES -43,537 -124,688
CHANGE OF CASH AND CASH EQUIVALENTS 0 0
Cash and cash equivalents at beginning of period 3 3
Cash and cash equivalents at end of period 3 3
CHANGE OF CASH AND CASH EQUIVALENTS 0 0
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Notes to the parent company's Financial Statement
1. Accounting principles
The nancial statements of the company have been prepared
in euro and in accordance with accounting principles
generally accepted in Finland.
The Company has reclassied some 2020 gures in notes 4, 5,
6, 10 and 13 and in Balance sheet between other receivables
and deferred assets (3,703 kEUR) to improve comparability.
STATEMENT OF INCOME
(1,000,000 EUR)
2. Depreciation and impairments
2021 2020
Machinery and equipment 0.2 0.1
Total 0.2 0.1
2021 2020
Wages and salaries 3.3 4.1
Pension costs 0.5 0.3
Other personnel expenses 0.0 0.1
Other operating expenses 0.4 0.3
Total 4.2 4.7
2021 2020
Remuneration to Board 0.6 0.7
Other wages and salaries 2.7 3.4
Total 3.3 4.1
The average number of personnel 5 5
Auditors fees
Audit 0.6 0.5
Other services 0.0 0.6
Total 0.6 1.1
2021 2020
Financial income from
long-term investments:
Dividend income from Group companies 37.5 73.0
Dividend income total 37.5 73.0
Interest income from
long-term receivables:
From Group companies 5.2 5.3
Interest income from long-term
receivables total
5.2 5.3
Financial income from long-term
investments total
42.7 78.3
Interest and other nancial income 0.1 0.0
Interest and other nancial income
total
0.1 0.0
Interest expenses and other nancial
expenses:
Other nancial expenses 7.0 6.6
Interest expenses and other nancial
expenses total
7.0 6.6
Financial income and expenses total 35.8 71.7
3. Other operating expenses
and personnel
Costs and expenses in the Statement of Income were
as follows:
Wages and salaries in accordance with the Statement
of Income:
4. Financial income and expenses
5. Appropriations
6. Income taxes
BALANCE SHEET
7. Machinery and equipment
2021 2020
Difference between planned
and untaxed depreciations
0.0 0.0
Group contributions received
from subsidiaries
52.3 58.3
Total 52.4 58.3
2021 2020
Taxes on appropriations 10.5 11.7
Taxes on ordinary operations -10.1 -3.2
Taxes from previous years 0.0 0.0
Total 0.4 8.4
2021 2020
Acquisition costs as of January 1 1.2 1.0
Increase 0.0 0.3
Acquisition costs as of December 31 1.2 1.2
Accumulated depreciation January 1 -0.5 -0.4
Accumulated depreciation -0.2 -0.1
Total as of December 31 0.5 0.7
The values of xed assets are based on original acquisition
values. Depreciation periods, which are based on estimated
nancial operating times, are as follows:
• Immaterial rights 5–10 years
• Machines and inventory 4–10 years
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8. Investments 11. Equity
9. Treasury shares
10. Deferred assets
12. Interest-bearing liabilities
14. Contingent liabilities
and pledged assets
15. Nominal and fair values of
derivative nancial instruments
2021 2020
Acquisition costs as of January 1 153.2 153.2
Total as of December 31 153.2 153.2
2021 2020
Share capital as of January 1 30.1 30.1
Share capital as of December 31 30.1 30.1
Share premium account as of January 1 39.3 39.3
Share premium account
as of December 31
39.3 39.3
Paid in capital as of January 1 774.6 769.4
Increase 0.0 5.2
Paid in capital as of December 31 774.6 774.6
Retained earnings as of January 1 211.1 199.0
Dividend paid -69.6 -95.0
Retained earnings as of December 31 141.5 104.0
Net income for the period 38.8 107.1
Shareholders' equity
as of December 31
1,024.3 1,055.1
Distributable equity
Paid in capital as of December 31 774.6 774.6
Retained earnings as of December 31 141.5 104.0
Net income for the period 38.8 107.1
Total 954.9 985.7
2021 2020
Number of shares as of January 1 87,447 82,480
Increase 0 300,000
Decrease 0 -295,033
Number of shares as of December 31 87,447 87,447
2021 2020
Group contributions 52.3 58.3
Income taxes 8.4 3.7
Payments which will be realized during
the next nancial year
22.7 28.0
Interest 2.6 2.6
Total 86.0 92.6
2021 2020
Bond, long-term 0.0 249.5
Bond, short-term 249.8 0.0
Total 249.8 249.5
2021 2020
For obligations of subsidiaries
Group guarantees 1,235.2 1,550.9
Leasing liabilities
Next year 0.5 0.5
Later on 0.5 0.8
Total 0.9 1.3
2021 2021 2020 2020
Fair
value
Nominal
value
Fair
value
Nominal
value
Foreign exchange
forward contracts
0.0 0.0 0.0 0.1
2021 2020
Total by category
Guarantees 1,235.2 1,550.9
Other liabilities 0.9 1.3
Total 1,236.2 1,552.2
2021 2020
Domicile
Carrying
value
Carrying
value
Konecranes Finance Corp. Hyvinkää 46.4 46.4
Konecranes Finland Corp. Hyvinkää 4.2 4.2
Konecranes Global Corp. Hyvinkää 102.4 102.4
Total 153.0 153.0
2021 2020
East Ofce of Finnish Industries Oy 0.1 0.1
Dimecc Oy 0.1 0.1
Total 0.2 0.2
Investments in Group companies
Other shares and similar rights of ownership
Leasing contracts mainly have a maturity of three years and
they have no terms of redemption.
Derivatives are used for currency rate hedging only.
The derivative nancial instruments are recognized according
to KPL 5:2a at fair value in the parent company nancial
statements, and the company does not apply hedge
accounting for these derivatives.
The EUR 250 million bond was issued on June 9, 2017,
maturing on June 9, 2022 with a three-month par call.
The bond bears an annual coupon of 1.75%.
13. Accruals
2021 2020
Wages, salaries and other personnel
expenses
1.9 1.1
Interest 2.5 2.5
Other items 8.0 9.0
Total 12.4 12.6
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Board of Directors' proposal to the Annual General Meeting
The parent company's non-restricted equity is EUR 954,876,269.66 of which the net income for the year is EUR 38,775,203.83.
The Group's non-restricted equity is EUR 1,284,729,000.
According to the Finnish Companies Act, the distributable funds of the company are calculated based on the parent company's
non-restricted equity. For the purpose of determining the amount of the dividend the Board of Directors has assessed
the liquidity of the parent company and the economic circumstances subsequent to the nancial year-end.
Based on such assessments, the Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.88
will be paid on each share and that the remaining non-restricted equity is retained in shareholders' equity.
Espoo, February 2, 2022
Christoph Vitzthum
Chairman of the Board
Ulf Liljedahl
Board member
Per Vegard Nerseth
Board member
Teo Ottola
Interim CEO
Janina Kugel
Board member
Niko Mokkila
Board member
Päivi Rekonen
Board member
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Auditor's report
(Translation of the Swedish original)
To the Annual General Meeting of Konecranes Plc
Report on the Audit of Financial
Statements
Opinion
We have audited the nancial statements of Konecranes
Plc (business identity code 0942718-2) for the year ended
December 31, 2021. The nancial statements comprise the
consolidated balance sheet, statement of income, statement
of comprehensive income, statement of changes in equity,
statement of cash ows and notes, including a summary
of signicant accounting policies, as well as the parent
company's balance sheet, income statement, statement
of cash ows and notes.
In our opinion
• the consolidated nancial statements give a true and fair
view of the group's nancial position as well as its
nancial performance and its cash ows in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU.
• the nancial statements give a true and fair view of the
parent company's nancial performance and nancial
position in accordance with the laws and regulations
governing the preparation of nancial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted
to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor's Responsibilities
for the Audit of Financial Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements
that are applicable in Finland and are relevant to our audit,
and we have fullled our other ethical responsibilities in
accordance with these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company and
group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have
not provided any prohibited non-audit services referred to
in Article 5 (1) of regulation (EU) 537/2014. The non-audit
services that we have provided have been disclosed in note
7.1 to the consolidated nancial statements and note 3 to the
parent company nancial statements.
We believe that the audit evidence we have obtained is
sufcient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most signicance in our
audit of the nancial statements of the current period.
These matters were addressed in the context of our audit
of the nancial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters.
We have fullled the responsibilities described in the
Auditor's responsibilities for the audit of the nancial
statements section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
nancial statements. The results of our audit procedures,
including the procedures performed to address the matters
below, provide the basis for our audit opinion on the
accompanying nancial statements.
We have also addressed the risk of management override
of internal controls. This includes consideration of whether
there was evidence of management bias that represented
a risk of material misstatement due to fraud.
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Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition of long-term contracts
and related provisions
Refer to note 2.2 Use of estimates and
judgments, note 2.3 Summary of signicant
accounting policies, note 5, note 6 and note 24.
In accordance with its accounting principles,
Konecranes applies the percentage of completion
(PoC) method (performance obligations satised
over time) for recognizing revenue from long-term
crane projects. The percentage of completion is
based on the cost-to-cost method.
The percentage of completion method of accounting
involves the use of signicant management
assumptions, estimates and projections, principally
relating to future material, labor and project-
related overhead costs and the estimated stage of
completion. In year 2021, approximately 13% of
the sales of 3.2 billion euros were recognized under
the PoC method. Revenue recognition of long-term
contracts is a key audit matter and a signicant risk
of misstatement as dened by EU Regulation No
537/2014, point (c) of Article 10(2).
Konecranes makes several types of provisions
related to risks associated with long-term project
contracts and PoC accounting. These PoC related
provisions require high level of management
judgment and are a key audit matter due to
that reason.
Our audit procedures to address the risk of material
misstatement in respect of the long-term contracts
included among others:
• Assessing the Group's accounting policies over
revenue recognition of long-term contracts;
• Gaining an understanding of the PoC revenue
recognition process;
• Examination of the project documentation
and testing the PoC calculations and inputs
of estimates in the calculations and comparing
the estimates to actuals;
• Analytical procedures;
• Assessing signicant judgments made
by management based on an examination
of the associated project documentation
and discussion on the status of projects under
construction with nance and project managers
of the Company; and
• Assessing the Group's disclosures in respect
of revenue recognition.
We have designed our audit procedures to be
responsive to this specic audit area and our
procedures included among others:
• Gaining an understanding of the PoC related
provisions process;
• Testing the provision calculations and the
inputs of estimates in these calculations and
comparing estimates to actuals; and
• Performing inquiries with management with
regards to any signicant events or legal
matters that could affect the provisions.
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition
Refer to note 2.3 Summary of signicant
accounting policies and note 5.
According to the Group's accounting policies,
revenue is recognized at an amount of conside-
ration to which the Group expects to be entitled
in exchange for transferring promised goods or
services to a customer. Goods and services are
generally considered to be transferred when the
customer obtains control. The terms and conditions
of sales contracts vary by market and, in addition,
the local management might feel pressure to
achieve the revenue targets set.
Revenue recognition is a key audit matter and a
signicant risk of material misstatement as denes
by EU Regulation No 537/2014, point (c) of
Article 10(2) due to the signicant risk relating
to an incorrect timing of recognition of revenue.
Our audit procedures to address the risk of material
misstatement in respect of correct timing of
revenue recognition included among others:
• Analytical procedures;
• Assessing the Group's accounting policies over
revenue recognition compared to applicable
accounting standards;
• Assessing the revenue recognition process and
methodologies and testing controls;
• Testing revenue with substantive analytical
procedures and by testing sales transactions;
• Assessing the Group's disclosures in respect
of revenues.
Valuation of goodwill
Refer to note 2.2 Use of estimates and
judgments, note 2.3 Summary of signicant
accounting policies and note 13.
The value of goodwill at the date of the nancial
statements amounted to 1.0 billion euros
representing 27% of total assets and 75% of equity
(2020: 1.0 billion euros, 25% of the total assets
and 81% of equity).
Valuation of goodwill is tested annually through
goodwill impairment test. Konecranes has allocated
goodwill to cash generating units (CGUs) which
is the level for goodwill impairment test. The
recoverable amount of a cash generating unit is
based on value in use calculations, the outcome
of which could vary signicantly if different
assumptions were applied. There are a number
of assumptions used to determine the value in use
of the cash generating units, including revenue
growth, development of xed costs, the operating
margin and the discount rate applied. Changes in
the above-mentioned assumptions may result
in an impairment of goodwill.
Our audit procedures to address the risk
of material misstatement relating to goodwill
valuation included, among others, involving our
valuation specialists to assist us in evaluating
the assumptions and methodologies used by
the Group, in particular those relating to the
discount rate. We specically focused on the
cash generating units for which reasonably
possible changes in assumptions could cause
the carrying value to exceed its recoverable
amount. We also assessed the historical accuracy
of managements' estimates. We assessed the
Group's disclosures in note 13 in the nancial
statements about the assumptions to which
the outcome of the impairment tests was
more sensitive.
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Key Audit Matter How our audit addressed the Key Audit Matter
The annual impairment test is a key audit matter
because
• The assessment process is complex and is
based on numerous judgmental estimates;
• It is based on assumptions relating to market
or economic conditions; and
• Of the signicance of the goodwill
to the balance sheet total.
Valuation of goodwill is a signicant risk of
misstatement as dened by EU Regulation
No 537/2014, point (c) of Article 10(2).
Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated nancial
statements that give a true and fair view in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU, and of nancial statements that
give a true and fair view in accordance with the laws and
regulations governing the preparation of nancial statements
in Finland and comply with statutory requirements.
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of nancial statements
that are free from material misstatement, whether due to
fraud or error.
In preparing the nancial statements, the Board of Directors
and the Managing Director are responsible for assessing
the parent company's and the group's ability to continue as
going concern, disclosing, as applicable, matters relating
to going concern and using the going concern basis of
accounting. The nancial statements are prepared using the
going concern basis of accounting unless there is an intention
to liquidate the parent company or the group or cease
operations, or there is no realistic alternative but to do so.
Auditor's Responsibilities
for the Audit of Financial Statements
Our objectives are to obtain reasonable assurance on
whether the nancial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to
inuence the economic decisions of users taken on the
basis of the nancial statements.
As part of an audit in accordance with good auditing practice,
we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the nancial statements, whether due to fraud or
error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufcient
and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the parent company's or the group's internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of the Board of
Directors' and the Managing Director's use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
signicant doubt on the parent company's or the
group's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the
related disclosures in the nancial statements or, if such
disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report.
However, future events or conditions may cause
the parent company or the group to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content
of the nancial statements, including the disclosures,
and whether the nancial statements represent
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the underlying transactions and events so that the
nancial statements give a true and fair view.
• Obtain sufcient appropriate audit evidence regarding
the nancial information of the entities or business
activities within the group to express an opinion
on the consolidated nancial statements. We are
responsible for the direction, supervision and
performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and signicant audit ndings, including
any signicant deciencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
signicance in the audit of the nancial statements of the
current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benets of such communication.
Other Reporting Requirements
Information on our audit engagement
We were rst appointed as auditors by the Annual General
Meeting on March 8, 2006, and our appointment represents
a total period of uninterrupted engagement of 16 years.
Other information
The Board of Directors and the Managing Director are
responsible for the other information. The other information
comprises the report of the Board of Directors and the
information included in the Governance publication
but does not include the nancial statements and our
auditor's report thereon. We have obtained the report
of the Board of Directors prior to the date of this auditor's
report, and the Governance publication is expected to be
made available to us after that date.
Our opinion on the nancial statements does not cover the
other information.
In connection with our audit of the nancial statements,
our responsibility is to read the other information identied
above and, in doing so, consider whether the other
information is materially inconsistent with the nancial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. With respect
to report of the Board of Directors, our responsibility
also includes considering whether the report of
the Board of Directors has been prepared in accordance
with the applicable laws and regulations.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the nancial
statements and the report of the Board of Directors has been
prepared in accordance with the applicable laws
and regulations.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor's report, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Opinions based on assignment of the Audit Committee
We support that the nancial statements should be adopted.
The proposal by the Board of Directors regarding the use
of the distributable equity shown in the balance sheet for
the parent company is in compliance with the Limited Liability
Companies Act. We support that the Members of the Board
of Directors and the Managing Director of the parent
company should be discharged from liability for the nancial
period audited by us.
Helsinki, February 2, 2022
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Independent Auditor's Report on Konecranes Plc's ESEF
Consolidated Financial Statements
(Translation of the Swedish original)
To the Board of Directors of Konecranes Plc
We have performed a reasonable assurance engagement on
the iXBRL tagging of the consolidated nancial statements
included in the digital les 549300EF0CDEQZBMA096-
2021-12-31-sv.zip of Konecranes Plc for the nancial year
Jan 1–Dec 31, 2021 to ensure that the nancial statements
are tagged with iXBRL mark ups in accordance with the
requirements of Article 4 of EU Commission Delegated
Regulation (EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors
and Managing Director
The Board of Directors and Managing Director are responsible
for the preparation of the Report of Board of Directors and
nancial statements (ESEF nancial statements) that comply
with the ESEF RTS. This responsibility includes:
• Preparation of ESEF nancial statements in accordance
with Article 3 of ESEF RTS
• Tagging the consolidated nancial statements included
within the ESEF nancial statements by using the iXBRL
mark ups in accordance with Article 4 of ESEF RTS
• Ensuring consistency between ESEF nancial statements
and audited nancial statements
The Board of Directors and Managing Director are also
responsible for such internal control as they determine
is necessary to enable the preparation of ESEF nancial
statements in accordance the requirements of ESEF RTS.
Auditor's Independence and Quality Control
We are independent of the company in accordance with
the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed,
and we have fullled our other ethical responsibilities in
accordance with these requirements.
The auditor applies International Standard on Quality Control
(ISQC) 1 and therefore maintains a comprehensive quality
control system including documented policies and procedures
regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Auditor's Responsibilities
In accordance with the Engagement Letter we will express an
opinion on whether the electronic tagging of the consolidated
nancial statements complies in all material respects with
the Article 4 of ESEF RTS. We have conducted a reasonable
assurance engagement in accordance with International
Standard on Assurance Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the primary nancial statements
in the consolidated nancial statements complies in all
material respects with Article 4 of the ESEF RTS
• whether the ESEF nancial statements are consistent
with the audited nancial statements
The nature, timing and extent of the procedures selected
depend on the auditor's judgment including the assessment
of risk of material departures from requirements set out
in the ESEF RTS, whether due to fraud or error.
We believe that the evidence we have obtained is sufcient
and appropriate to provide a basis for our statement.
Opinion
In our opinion, the tagging of the consolidated nancial
statement included in the ESEF nancial statements of
Konecranes Plc for the year ended December 31, 2021
complies in all material respects with the requirements
of ESEF RTS.
Our audit opinion on the consolidated nancial statements
of Konecranes Plc for the year ended December 31, 2021 is
included in our Independent Auditor's Report dated February
2, 2022. In this report, we do not express an audit opinion or
any other assurance on the consolidated nancial statements.
Helsinki, February 28, 2022
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Shares and shareholders
Number of
shares
and votes
% of shares
and votes
1 HC Holding Oy Ab 7,931,238 10.0%
2 Solidium Oy 6,744,506 8.5%
3 Gustavson Stig and family* 2,366,157 3.0%
4 Ilmarinen Mutual Pension Insurance Company 2,266,000 2.9%
5 Varma Mutual Pension Insurance Company 2,185,293 2.8%
6 Holding Manutas Oy 1,065,000 1.3%
7 Elo Mutual Pension Insurance Company 917,497 1.2%
8 OP Investment Funds 888,154 1.1%
9 Svenska Litteratursällskapet i Finland 724,000 0.9%
10 The State Pension Fund of Finland 580,000 0.7%
Ten largest registered shareholders' total ownership 25,667,845 32.4%
Nominee registered shares 30,650,562 38.7%
Other shareholders 22,816,052 28.8%
Shares held by Konecranes Plc 87,447 0.1%
Total 79,221,906 100.0%
Change in
shareholding
in 2021
Number
of shares
owned
% of
shares
and votes
Board of Directors 4,341 25,054 0.0%
Group Executive Board -14,283 156,161 0.2%
Total -9,942 181,215 0.2%
Shares
Number of
shareholders
% of
shareholders
Number of
shares
and votes
% of shares
and votes
1−100 28,633 58.1% 1,193,666 1.5%
101−1,000 18,189 36.9% 5,972,388 7.5%
1,001−10,000 2,248 4.6% 5,710,349 7.2%
10,001−100,000 173 0.4% 4,849,687 6.1%
100,001−1,000,000 27 0.1% 9,561,706 12.1%
1,000,001− 7 0.0% 21,283,548 26.9%
Registered shareholders total 49,277 100.0% 48,571,344 61.3%
Nominee registered shares 11 0.0% 30,650,562 38.7%
Total 49,288 100.0% 79,221,906 100.0%
% of shares
and votes
Households 18.5%
Public sector organizations 16.7%
Private companies 13.7%
Financial and insurance institutions 6.4%
Non-prot organizations 5.3%
Foreigners 0.8%
Nominee registered shares 38.7%
Total 100.0%
According to the register of Konecranes Plc's shareholders kept by Euroclear Finland Ltd, there were
49,288 (2020: 39,119) shareholders at the end of the 2021.
Largest shareholders according to the share register on December 31, 2021
Shares owned by the members of the Board and of Directors and of the Group
Executive Board on December 31, 2021
Breakdown of share ownership by number or shares owned
on December 31, 2021
Breakdown of share ownership by shareholder category
on December 31, 2021
* Konecranes Plc has on December 28, 2011 received information according to which the Chairman
of the company's Board of Directors Stig Gustavson has donated all of his shares in Konecranes Plc to his near
relatives retaining himself for life the voting rights and right to dividend attached to the donated shares.
The donation encompassed in total 2,069,778 shares.
Source: Euroclear Finland Ltd, December 31, 2021.
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Konecranes Plc
Tel. +358 20 427 11
Governance
Kiira Fröberg
Vice President, Investor Relations
Tel. +358 20 427 2050
kiira.froberg@konecranes.com
Americas
Konecranes Inc.
4401 Gateway Blvd.
Springeld, OH 45502, U.S.A.
Tel. +1 937 525 5533
Europe, Middle East and Africa
Konecranes
Region EMEA
P.O. Box 662 (Koneenkatu 8)
FI-05801 Hyvinkää , Finland
Tel. +358 20 427 11
Asia-Pacic
Konecranes Pte. Ltd.
8 Admiralty Street, #06-11 Admirax
Singapore 757438
Tel. +65 6 861 2233
Regional Headquarters
Finance
Teo Ottola
Chief Financial Ofcer
teo.ottola@konecranes.com
Corporate Headquarters
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity enhancing lifting solutions as well as services
for lifting equipment of all makes. In 2021, Group sales totaled EUR 3.2 billion. The Group has around 16,600 employees in 50 countries. Konecranes shares are listed on the Nasdaq Helsinki (symbol: KCR).