FINANCIAL REVIEW 2023
2023 highlights
Report of the Board of Directors
Konecranes Group 2019–2023
Calculation of key figures
Financial Statements
Consolidated statement of income – IFRS
Consolidated balance sheet – IFRS
Consolidated statement of changes in equity – IFRS
Consolidated cash flow statement – IFRS
Notes to the consolidated financial statements
Parent company statement of income – FAS
Parent company balance sheet – FAS
Parent company cash flow – 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
Company information for ESEF reporting
Shares and shareholders
34
36
61
62
64
65
66
67
68
117
118
119
120
122
123
127
128
129
FINANCIAL REVIEW 2023
Contents
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Sales & order intake, MEUR
Comparable EBITA by Segment, 2023
Comparable EBITA, MEUR & Comparable EBITA margin, %
Personnel by Segment, 2023
Earnings & dividend per share, EUR
61%
Service
296.2 MEUR
21%
Port Solutions
102.7 MEUR
18%
Industrial Equipment
87.4 MEUR
49%
Service
8,010
20%
Port Solutions
3,222
32%
Industrial Equipment
5,253
2019 2020 2021 2022 2023
Sales Order intake
0
1,000
2,000
3,000
4,000
5,000
3,364.8
4,227.9
3,966.3
4,161.4
3,185.7
3,446.9
3,326.9
3,431.6
3,178.9
2,994.2
35%
Service
1,490.4 MEUR
33%
Port Solutions
1,370.8 MEUR
32%
Industrial Equipment
1,355.3 MEUR
Sales by Business Area, 2020
0
100
200
300
400
500
2019 2020 2021 2022 2023
Comparable EBITA
Comparable EBITA margin
0
4
8
12
16
20
312.2
318.4
450.7
260.8
275.1
0.0
1.0
2.0
3.0
4.0
Earnings & dividend per share, EUR
2019 2020 2021 2022 2023
Earnings per share, basic Dividend per share
1.03
1.20
1.86
1.77
1.25
1.25
3.48
1.35
*
1.54
0.88
*The Board's proposal to the AGM
Sales by Segment, 2023
2023 highlights
Percentages have been rounded and may not total to 100%.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Return on equity, %
Order book, MEUR
ROCE, % & Comparable ROCE, %
Year-end net working capital, MEUR
Year-end market capitalization*, MEUR
Year-end net debt, MEUR & Gearing, %
0
100
200
300
400
500
2019 2020 2021 2022 2023
331.2
227.1
490.2
353.6
350.6
0
200
400
600
800
1,000
2019 2020 2021 2022 2023
Net debt
655.3
577.1
541.6
688.3
365.8
100
80
60
40
20
0
Gearing
0
5
10
15
20
2019 2020
2021
2022 2023
Return on capital employed, %
Comparable return on capital employed, %
6.3
8.3
12.7
11.1
9.3
13.4
9.0
13.4
16.4
17.7
0
1,000
2,000
3,000
4,000
2019 2020 2021 2022 2023
1,824.3
2,036.8
2,901.7
3,040.8
1,715.5
0
5
10
15
20
2019 2020 2021 2022 2023
6.5
9.8
11.3
9.9
18.2
0
1,000
2,000
3,000
4,000
2019 2020 2021 2022 2023
2,160.2
2,277.5
2,782.4
2,276.8
3,229.9
* Excluding treasury shares
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Report of the Board of Directors
Figures in brackets, unless otherwise stated, refer to the
same period a year earlier.
Konecranes has made changes in reporting its orders
received and net working capital. The previous year’s
figures presented in this report have been restated and
are fully comparable with the current year figures.
Market review
In 2023, Konecranes’ operating environment was
impacted by economic uncertainty, high inflation, and
interest rates. Supply chain conditions and delivery times
improved compared to the previous year.
The world’s manufacturing sector’s operating conditions,
according to the global manufacturing Purchasing
Managers’ Index (PMI), continued to weaken in the
fourth quarter. December’s PMI reading (49.0) was
approximately unchanged from the end of the previous
quarter, and it was the sixteenth consecutive month in
contraction territory below the neutral 50 mark.
In the eurozone, the downturn in the manufacturing
sector continued in the fourth quarter according to
the manufacturing PMI, which had been in contraction
territory in December for a year and a half. However,
December’s PMI (44.4) was the 7-month high. In the
US, the manufacturing sector’s operating conditions
also continued to deteriorate in the fourth quarter. The
manufacturing PMI was clearly in contraction in December
(47.9) while it was marginally below the neutral 50 mark at
the end of the previous quarter. In the emerging markets,
December’s manufacturing PMI signaled improving
operating conditions in India and China, but in Brazil, the
PMI was in deterioration.
The manufacturing industry capacity utilization rate in
the European Union decreased in the fourth quarter. The
capacity utilization rate was at a lower level on a year-on-
year basis, and it was below the pre-COVID-19 pandemic
levels. The manufacturing industry capacity utilization rate
in the US stayed approximately unchanged in December.
The capacity utilization rate was lower compared to the
end of the previous quarter, and it was at approximately
the same level on a year-on-year basis.
Global container throughput, according to the RWI/
ISL Container Throughput Index, was at a relatively
strong level in the fourth quarter compared to the
historical readings although fluctuation continued. At
the end of December, global container throughput was
approximately one percent higher than the year before.
Regarding raw material prices, at the end of the fourth
quarter steel prices were below and copper prices were
above the previous year’s levels. The average EUR/USD
exchange rate was approximately three percent higher
compared to the year-ago period.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Orders received
In full year 2023, orders received totaled EUR 4,161.4
million (4,227.9), representing a decrease of 1.6 percent.
On a comparable currency basis, order intake increased
0.3 percent. Orders received decreased in EMEA but
increased in the Americas and APAC.
In Service, order intake increased 3.3 percent on a
reported basis and 5.8 percent on a comparable currency
basis. In Industrial Equipment, orders received iincreased
3.7 percent on a reported basis and 5.7 percent on a
comparable currency basis. External orders received in
Industrial Equipment increased 5.6 percent on a reported
basis and 8.0 percent on a comparable currency basis.
In Port Solutions, order intake decreased 11.3 percent
on a reported basis and 10.1 percent on a comparable
currency basis.
Order book
At the end of December, the value of the order book
totaled EUR 3,040.8 million (2,901.7), which was 4.8
percent higher compared to the previous year. On a
comparable currency basis, the order book increased
6.0 percent. The order book decreased 0.4 percent
in Service, and increased 4.1 percent in Industrial
Equipment and 6.6 percent in Port Solutions.
Sales
In full year 2023, Group sales totaled EUR 3,966.3 million
(3,364.8), representing an increase of 17.9 percent. On
a comparable currency basis, sales increased 20.5
percent. Sales increased 10.9 percent in Service, 12.4
percent in Industrial Equipment and 35.0 percent in Port
Solutions. Industrial Equipment’s external sales increased
9.8 percent.
At the end of December, the regional breakdown of sales,
calculated on a rolling 12-month basis, was as follows:
EMEA 47 (51), Americas 38 (36) and APAC 14 (13) percent.
Financial result
In full year 2023, the Group comparable EBITA increased
to EUR 450.7 million (318.4). The comparable EBITA
margin increased to 11.4 percent (9.5). The comparable
EBITA margin increased in Service to 19.9 percent (18.6),
in Industrial Equipment to 6.5 percent (2.7) and in Port
Solutions to 7.5 percent (6.3). The increase in the Group
comparable EBITA margin was mainly attributable to higher
sales volumes and pricing.
In full year 2023, the consolidated comparable operating
profit increased to EUR 419.7 million (286.6). The comparable
operating margin increased to 10.6 percent (8.5).
In full year 2023, the consolidated operating profit
totaled EUR 402.5 million (223.2). The operating profit
includes items affecting comparability of EUR 17.2 million
(63.5), which mainly comprised of restructuring costs,
and Konecranes’ final crane delivery to Russia in the
second quarter with a lowering impact to items affecting
comparability. The order was written off in 2022, and it was
the only write-off delivered to Russia as breaching the
contract would have exposed the company to possible
significant financial risk. In the comparison period, the
items affecting comparability consisted mainly of costs
related to the impacts of the war in Ukraine. Year-on-year,
the operating margin increased in Service to 18.6 percent
(17.3), in Industrial Equipment to 4.9 percent (-0.9) and in
Port Solutions to 6.9 percent (3.8).
In full year 2023, depreciation and impairments totaled EUR
114.9 million (124.4). The impact arising from the purchase
price allocation amortization and goodwill impairment
represented EUR 30.4 million (31.8) of the depreciation and
impairments.
In full year 2023, the share of the result in associated
companies and joint ventures was EUR 0.8 million (0.4).
In full year 2023, financial income and expenses totaled
EUR -35.7 million (-32.9). Net interest expenses accounted
for EUR 29.6 million (26.1) of the sum, and the remainder was
mainly attributable to other financing expenses.
1-12/2023 1-12/2022 Change %
Change % at
comparable
currency rates
Orders received, MEUR
1
4,161.4 4,227.9 -1.6 0.3
Net sales, MEUR 3,966.3 3,364.8 17.9 20.5
Orders received and net sales
1
Previous year restated due to the change in reporting for including service agreement base sales in orders received.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
In full year 2023, profit before taxes was EUR 367.6 million
(190.7).
In full year 2023, income tax was EUR 92.0 million (52.2). The
Group’s effective tax rate was 25.0 percent (27.4).
In full year 2023, net profit was EUR 275.6 million (138.5).
In full year 2023, the basic earnings per share were EUR 3.48
(1.77) and the diluted earnings per share were EUR 3.46 (1.77).
On a rolling 12-month basis, the return on capital employed
was 16.4 percent (9.0) and the return on equity 18.2 percent
(9.9). The comparable return on capital employed was 17.7
percent (13.4).
Balance sheet
At the end of December, the consolidated balance sheet
amounted to EUR 4,552.4 million (4,340.6). The total
equity at the end of the reporting period was EUR 1,594.8
million (1,433.0). The total equity attributable to the equity
holders of the parent company was EUR 1,594.8 million
(1,432.9) or EUR 20.14 per share (18.10).
Net working capital totaled EUR 353.6 million (490.2). The
decrease in net working capital resulted mainly from an
increase in advance payments received. Sequentially, net
working capital decreased by EUR 52.1 million.
Cash flow and financing
In full year 2023, net cash from operating activities was
EUR 557.3 million (66.7). The increase in net cash from
operating activities was mainly due to the change in net
working capital and higher operating income during the
period. Cash flow before financing activities was EUR 481.9
million (23.1), which included cash inflows of EUR 6.5 million
(2.6) related to sale of property, plant and equipment, EUR
9.0 million (0.1) related to divestment of Businesses, and
EUR 0.5 million (0.0) related to disposal of associated
companies. It included cash outflows of EUR 52.4 million
(44.7) related to capital expenditures, and EUR 39.0 million
(1.6) related to acquisition of Group companies.
At the end of December, interest-bearing net debt was
EUR 365.8 million (688.3). Net debt decreased mainly due
to higher cash flow from operating activities. The equity
to asset ratio was 41.1 percent (37.9) and gearing 22.9
percent (48.0).
At the end of December, cash and cash equivalents
amounted to EUR 586.6 million (413.9). None of the Group’s
committed EUR 350 million back-up financing facility was
in use at the end of the period.
In April 2023, Konecranes paid dividends, amounting to
EUR 99.0 million or EUR 1.25 per share, to its shareholders.
Capital expenditure
In full year 2023, capital expenditure excluding
acquisitions and joint arrangements amounted to EUR
54.4 million (37.0). The amount consisted mainly of
investments in machinery and equipment, buildings,
office equipment and information technology.
Acquisitions and divestments
In full year 2023, the cash impact of capital expenditure
for acquisitions and joint arrangements was EUR
-39.0 million (-1.6). The cash impact of divestment of
Businesses and disposal of associated companies was
EUR 9.5 million (0.1).
In April 2023, Konecranes acquired the industrial and
nuclear crane and crane service operations of privately
held Whiting Corporation in the USA. In June 2023,
Konecranes acquired a small industrial crane service
operation of Munck Cranes AS in Norway.
In April 2023, Konecranes divested MHE-Demag’s
Industrial Products business to Jebsen & Jessen.
Personnel
In full year 2023, the Group had an average of 16,503
employees (16,563). On December 31, 2023, the number
of personnel was 16,586 (16,522). In full year 2023, the
Group’s personnel increased by 64 people net.
At the end of December, the number of personnel
by operating segment was as follows: Service 8,010
employees (7,802), Industrial Equipment 5,253
employees (5,529), Port Solutions 3,222 employees
(3,102) and Group staff 101 employees (89).
The Group had 9,785 (9,565) employees working in EMEA,
3,335 (3,131) in the Americas and 3,466 (3,826) in APAC.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
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In full year 2023, orders received totaled EUR 1,490.7
million (1,442.5), corresponding to an increase of 3.3
percent. On a comparable currency basis, orders
received increased 5.8 percent.
The order book decreased 0.4 percent to EUR 443.5
million (445.5). On a comparable currency basis, the order
book increased 1.8 percent.
The annual value of the agreement base increased 3.7
percent year-on-year to EUR 318.3 million (306.9). On
a comparable currency basis, the annual value of the
1-12/2023 1-12/2022 Change %
Change % at
comparable
currency rates
Orders received, MEUR
1
1,490.7 1,442.5 3.3 5.8
Order book, MEUR 443.5 445.5 -0.4 1.8
Agreement base value, MEUR 318.3 306.9 3.7 5.3
Net sales, MEUR 1,490.4 1,343.3 10.9 13.6
Comparable EBITA, MEUR
2
296.2 249.4 18.7
Comparable EBITA, %
2
19.9% 18.6%
Purchase price allocation amortization, MEUR -17.4 -14.3 22.2
Items affecting comparability, MEUR -1.9 -2.9
Operating profit (EBIT), MEUR 276.9 232.3 19.2
Operating profit (EBIT), % 18.6% 17.3%
Personnel at the end of period 8,010 7,802 2.7
Business segments
Service
agreement base increased 5.3 percent. Sequentially,
the annual value of the agreement base decreased 0.8
percent on a reported basis and increased 0.6 percent on
a comparable currency basis.
Sales increased 10.9 percent to EUR 1,490.4 million
(1,343.3). On a comparable currency basis, sales
increased 13.6 percent. Sales increased in field service
and parts.
The comparable EBITA was EUR 296.2 million (249.4) and
the comparable EBITA margin was 19.9 percent (18.6).
The increase in the comparable EBITA margin was mainly
attributable to higher sales volumes and pricing. The
operating profit was EUR 276.9 million (232.3) and the
operating margin 18.6 percent (17.3).
1
Previous year restated due to the change in reporting for including agreement base sales in orders received.
2
Excluding items affecting comparability and purchase price allocation amortization.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
1-12/2023 1-12/2022 Change %
Change % at
comparable
currency rates
Orders received, MEUR
1
1,442.9 1,391.6 3.7 5.7
of which external, MEUR 1,261.8 1,194.8 5.6 8.0
Order book, MEUR 892.3 857.2 4.1 6.7
Net sales, MEUR 1,355.3 1,205.6 12.4 14.8
of which external, MEUR 1,173.8 1,068.8 9.8 12.3
Comparable EBITA, MEUR
2
87.4 32.5 168.9
Comparable EBITA, %
2
6.5% 2.7%
Purchase price allocation amortization, MEUR -7.0 -11.0 -35.8
Items affecting comparability, MEUR -13.5 -32.5
Operating profit (EBIT), MEUR 66.9 -10.9 711.2
Operating profit (EBIT), % 4.9% -0.9%
Personnel at the end of period 5,253 5,529 -5.0
In full year 2023, orders received totaled EUR 1,442.9 million
(1,391.6), corresponding to an increase of 3.7 percent. On a
comparable currency basis, orders received increased 5.7
percent. External orders received increased 5.6 percent
on a reported basis and 8.0 percent on a comparable
currency basis. Order intake increased in standard cranes,
process cranes and components.
The order book increased 4.1 percent to EUR 892.3 million
(857.2). On a comparable currency basis, the order book
increased 6.7 percent.
Sales increased 12.4 percent to EUR 1,355.3 million
(1,205.6). On a comparable currency basis, sales
increased 14.8 percent. External sales increased 9.8
percent on a reported basis and 12.3 percent on a
comparable currency basis. Sales increased in standard
cranes, process cranes and components.
The comparable EBITA was EUR 87.4 million (32.5) and the
comparable EBITA margin 6.5 percent (2.7). The increase
in the comparable EBITA margin was mainly attributable
to higher sales volumes and pricing. The operating profit
was EUR 66.9 million (-10.9) and the operating margin 4.9
percent (-0.9).
Industrial Equipment
1
Previous year restated due to the change in reporting for including agreement base sales in orders received.
2
Excluding items affecting comparability and purchase price allocation amortization.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
1-12/2023 1-12/2022 Change %
Change % at
comparable
currency rates
Orders received, MEUR
1
1,468.5 1,655.3 -11.3 -10.1
Order book, MEUR 1,705.0 1,599.0 6.6 6.9
Net sales, MEUR 1,370.8 1,015.0 35.0 37.6
of which service, MEUR 233.3 226.1 3.2 5.8
Comparable EBITA, MEUR
2
102.7 63.5 61.7
Comparable EBITA, %
2
7.5% 6.3%
Purchase price allocation amortization, MEUR -6.6 -6.6 0.0
Items affecting comparability, MEUR -1.1 -18.6
Operating profit (EBIT), MEUR 95.1 38.4 147.6
Operating profit (EBIT), % 6.9% 3.8%
Personnel at the end of period 3,222 3,102 3.9
1
Previous year restated due to the change in reporting for including agreement base sales in orders received.
2
Excluding items affecting comparability and purchase price allocation amortization.
In full year 2023, orders received totaled EUR 1,468.5
million (1,655.3), corresponding to a decrease of 11.3
percent. On a comparable currency basis, orders
received decreased 10.1 percent.
The order book increased 6.6 percent to EUR 1,705.0
million (1,599.0). On a comparable currency basis, the
order book increased 6.9 percent.
Sales increased 35.0 percent to EUR 1,370.8 million
(1,015.0). On a comparable currency basis, sales
increased 37.6 percent.
The comparable EBITA was EUR 102.7 million (63.5) and
the comparable EBITA margin 7.5 percent (6.3). The
increase in the comparable EBITA margin was mainly
attributable to higher sales volumes. Gross margin
Port Solutions
decreased on a year-on-year basis. Operating profit
was EUR 95.1 million (38.4) and the operating margin 6.9
percent (3.8).
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Group overheads
In full year 2023, the comparable unallocated Group
overhead costs and eliminations were EUR 35.7 million
(27.0), representing 0.9 percent of sales (0.8).
The unallocated Group overhead costs and eliminations
were EUR 36.4 million (36.6), representing 0.9 percent of
sales (1.1). These included items affecting comparability of
EUR 0.7 million (9.5).
Administration
Decisions of the Annual General Meeting
The Annual General Meeting was held on March 29, 2023.
The meeting approved the Company's annual accounts
for the fiscal year 2022, discharged the members of
the Board of Directors and the 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 1.25 per share be distributed. The dividend was
paid April 12, 2023.
The AGM approved the Remuneration Report.
The resolution by the AGM on the approval of the
Remuneration report is advisory.
The AGM approved the Shareholders' Nomination Board's
proposal that the annual remuneration for the Board of
Directors and the meeting fees for the committees and
meetings of the Board of Directors remain unchanged,
and that the annual remuneration for the Chairman of the
Board of Directors and the meeting fee of the Chairman
of the Audit Committee are increased.
The AGM approved the Shareholders' Nomination
Board's proposal that the number of members of the
Board of Directors shall be nine. The current Board
members Pauli Anttila, Pasi Laine, Ulf Liljedahl, Niko
Mokkila, Sami Piittisjärvi, Päivi Rekonen, Helene Svahn
and Christoph Vitzthum were re-elected, and Gun
Nilsson was elected as a new member. Christoph
Vitzthum was elected as Chairman of the Board of
Directors and Pasi Laine was elected as Vice Chairman of
the Board of Directors.
The AGM approved the Board's proposal that Ernst &
Young Oy be re-elected as the Company's auditor.
The remuneration will be paid according to an invoice
approved by the Company.
The AGM authorized the Board to decide on the
repurchase and/or on the acceptance as pledge of the
Company's own shares.
The AGM authorized the Board to decide on the issuance
of shares as well as on the issuance of special rights
entitling to shares.
The AGM authorized the Board to decide on the transfer of
the Company's own shares.
The AGM authorized the Board to decide on a directed
issuance of shares without payment for an Employee
Share Savings Plan.
The AGM authorized the Board to decide on donations.
The resolutions of the AGM have been published in the
stock exchange release dated March 29, 2023.
Board of Directors
The Board of Directors elected in the Annual General
Meeting 2023 consists of
• Christoph Vitzthum, Chair of the Board
• Pasi Laine, Vice Chair of the Board
• Pauli Anttila, Member of the Board
• Ulf Liljedahl, Member of the Board
• Niko Mokkila, Member of the Board
• Gun Nilsson, Member of the Board
• Päivi Rekonen, Member of the Board
• Helene Svahn, Member of the Board
• Sami Piittisjärvi, Member of the Board
The term of office ends at the closing of the Annual
General Meeting in 2024.
On March 29, 2023, Konecranes announced that the
Board had held its first meeting. The Board decided
to continue with an Audit Committee and a Human
Resources Committee.
Ulf Liljedahl was elected Chair of the Audit Committee,
and Niko Mokkila, Gun Nilsson and Päivi Rekonen as
Committee members. Christoph Vitzthum was elected
Chair of the Human Resources Committee, and Pauli
Anttila, Pasi Laine and Helene Svahn as Committee
members.
All Board members with the exception of Sami Piittisjärvi
are deemed to be independent of the Company and
all Board members with the exception of Pauli Anttila
are deemed to be independent of the Company's
significant shareholders. Niko Mokkila has been deemed
to be independent of the company and its significant
shareholders since May 2023.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Sami Piittisjärvi is deemed not to be independent
of the Company due to his current position as an
employee of Konecranes. Pauli Anttila is deemed not
to be independent of a significant shareholder of the
Company based on his current position as Investment
Director and Member of the Management Team at
Solidium Oy.
Konecranes Leadership Team
In full year 2023, Konecranes Leadership Team consisted of
• Anders Svensson, President and CEO
• Teo Ottola, CFO, Deputy CEO
• Fabio Fiorino, Executive Vice President, Industrial
Service and Equipment
• Mika Mahlberg, Executive Vice President, Port Solutions
(until September 6, 2023)
• Juha Pankakoski, Executive Vice President, Port
Solutions (since September 7, 2023) and for the time
being, Executive Vice President, Technologies
• Anneli Karkovirta, Executive Vice President, People and
Culture
• Sirpa Poitsalo, Executive Vice President, General
Counsel
• Topi Tiitola, Senior Vice President, Integration and
Project Management Office (until July 14, 2023)
On July 14, 2023, Konecranes announced that Topi Tiitola,
SVP, Integration and Project Management and a member
of the Konecranes Leadership Team, had decided to leave
the company. He stepped down from the Konecranes
Leadership Team on the same day.
On September 7, 2023, Konecranes announced that Juha
Pankakoski had been appointed Executive Vice President,
Port Solutions and member of the Konecranes Leadership
Team. He started in this position on September 7, 2023,
and succeeded Mika Mahlberg, Executive Vice President,
Port Solutions, who stepped down from the Konecranes
Leadership Team with immediate effect. Juha Pankakoski
continues to lead the Technologies function until the
successor for the Executive Vice President, Technologies
is announced.
On December 15, 2023, Konecranes announced
that Minna Aila had been appointed Executive Vice
President, Corporate Affairs & Brand, and member of the
Konecranes Leadership Team. She will start at Konecranes
on July 1, 2024.
Shareholders’ Nomination Board
On September 7, 2023, Konecranes announced the
composition of the Shareholders' Nomination Board.
The following members were appointed to the
Shareholders' Nomination Board:
• Reima Rytsölä, CEO of Solidium, appointed by
Solidium Oy,
• Stig Gustavson, appointed by Stig Gustavson and family,
• Markus Aho, Chief Investment Officer of Varma,
appointed by Varma Mutual Pension Insurance
Company, and
• Mikko Mursula, Deputy CEO, Investments of Ilmarinen,
appointed by Ilmarinen Mutual Pension Insurance
Company.
Christoph Vitzthum, the Chairman of the Board, serves as
an expert in the Nomination Board without being a member.
Shares and trading
Share capital and shares
On December 31, 2023, the company’s registered share
capital totaled EUR 30.1 million. On December 31, 2023,
the number of shares including treasury shares totaled
79,221,906.
Treasury shares
On December 31, 2023, Konecranes Plc was in possession
of 19,656 treasury shares, which corresponds to 0.0
percent of the total number of shares, and which had on
that date a market value of EUR 0.8 million.
On February 28, 2023, 35,651 treasury shares were
conveyed without consideration as the delivery of
matching shares to the employees participating in the
savings period 2019-2020 of the Konecranes Employee
Share Savings Plan.
Market capitalization and trading volume
The closing price for the Konecranes shares on the
Nasdaq Helsinki on December 29, 2023, was EUR 40.78.
The volume-weighted average share price in full year
2023 was EUR 33.68, the highest price being EUR 41.38
in December and the lowest EUR 28.29 in October. In full
year 2023, the trading volume on the Nasdaq Helsinki
totaled 49.9 million, corresponding to a turnover of
approximately EUR 1,679.6 million. The average daily
trading volume was 198,667 shares representing an
average daily turnover of EUR 6.7 million.
On December 31, 2023, the total market capitalization of
Konecranes Plc was EUR 3,230.7 million including treasury
shares. The market capitalization was EUR 3,229.9 million
excluding treasury shares.
Performance Share Plans 2021, 2022 and 2023
On February 1, 2023, Konecranes announced that the
Board of Directors had decided to establish a new
Performance Share Plan 2023 for Konecranes key
employees. The Plan has a three-year performance
period from 2023 to 2025. The Plan has two performance
criteria: the cumulative comparable Earnings per
Share (EPS) for the financial years 2023-2025 with a 60
percent's weighting and the compound annual growth
rate (CAGR) for Sales for the financial years 2023-2025
with a 40 percent's weighting. The targets for the three-
year performance period have also been decided by
the Board of Directors. The target group of the Plan
consists of a maximum of 170 Konecranes key employees.
Additional information, including essential terms and
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
conditions of the Plan, is available in the stock exchange
release published on February 1, 2023.
On February 1, 2023, Konecranes announced that the
Board of Directors had decided the criterion for the
measurement period 2023 of the Performance Share
Plans 2021 and 2022. The criterion is comparable
earnings per Share (EPS). The targets for the
measurement period 2023 were also decided by the
Board of Directors. Additional information is available in
the stock exchange release published on February
1, 2023.
Additional information, including essential terms and
conditions of the Plan 2021, is available in the stock
exchange release published on February 3, 2021, and for
the Plan 2022 in the stock exchange release published on
March 30, 2022.
Employee Share Savings Plan
On February 1, 2023, 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, 2023, and will end
on June 30, 2024. Additional information, including the
other terms and conditions of the Plan Period, is available
in the stock exchange release published on February
1, 2023.
Notifications of major shareholdings
In full year 2023, Konecranes received the following
notifications of major shareholdings.
Date Shareholder Threshold
% of shares and
voting rights
% of shares and
voting rights
through financial
instruments Total, % Total, shares
May 16, 2023 HC Holding Oy Ab Below 10% 0 0 0 0
Research and development
In 2023, Konecranes’ research and product development
expenditure totaled EUR 51.3 (47.7) million, representing
1.3 (1.4) percent of sales. R&D expenditure includes
product development projects aimed at improving the
quality and cost efficiency of both products and services.
Scaling technology innovation is one of the five enablers
for Konecranes’ strategy. This builds on Konecranes’
track record of industry-shaping breakthroughs for over
a century. With its technological leadership, Konecranes
is able to offer cutting-edge solutions to its customers as
well as create a positive impact within critical fields such
as sustainability.
In 2023, Konecranes announced the launch of its Zero4
research and innovation program. The program is in part
funded by Business Finland, a governmental financier
for research and technology development. The program
aims to increase industrial productivity in Finland and
create hundreds of new jobs in the next five years,
alongside new business opportunities for Konecranes
and ecosystem partners.
The potential here is significant. Material flows, meaning
any value-adding industrial activity involved in the
transportation of raw materials and products, account
for approximately 5.5% of the world’s greenhouse gas
emissions and 40% of injuries in the manufacturing
industry. The program will focus on reducing four major
deficiencies from material flows: information barriers,
greenhouse gas emissions, energy consumption and
accidents.
Zero4 intends to create an ecosystem consisting of
more than 70 partners by the end of 2027. Today, many
manufacturing processes and equipment contain
automation technology. What is often lacking, however,
is the connection, coordination and communication
between these independently operating automation
islands. Zero4 has the ambition to solve this by building a
holistic platform that optimizes material flows.
As part of the program, Konecranes plans to develop
selected production plants into material flow flagship
sites and model factories to boost research and
innovation efforts.
In addition to Zero4, Konecranes conducts regular
research and innovation activities, both in-house and
with partners. In its activities, Konecranes proactively
develops state-of-the-art solutions to stay ahead of the
competition and actively harnesses the latest technology
such as artificial intelligence (AI), which is increasingly
being implemented in the company’s operations.
In sales, artificial intelligence has been deployed to
process requests for quotes from customers. AI is used
to solve simple requests e.g., within spare parts, and to
help sales teams in prioritizing the most urgent cases.
Utilization such as this increases productivity in the sales
teams and supports faster lead times towards customers.
Also within sales, Konecranes continued a pilot from 2022
utilizing robotics, where pricing data on components sold
in the industry is automatically analyzed. The results allow
for a dynamic pricing model, ensuring competitiveness
within Konecranes’ components offering.
AI is also being implemented to help Konecranes’
customers keep their equipment reliable and compliant.
In spring 2023, Konecranes launched a predictive
maintenance engine that foresees the maintenance
needs of equipment based on the asset information,
condition and historical maintenance data. Forecasts
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
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of potential faults and replacement needs are routed to
Konecranes sales, who contact customers to recommend
corresponding actions. This supports Konecranes’ efforts
to move from preventive maintenance to predictive
maintenance, utilizing data-driven sensors, apps and
workflows.
Konecranes’ organizational setup also supports
implementing these new technologies throughout
the company. Since 2019 Konecranes has operated a
dedicated Data Science Lab in Lyon, France. The lab
supports businesses by developing solutions with
tangible benefits for both customers and Konecranes’
operations in general. The Data Science Lab has become
an integrated part of Konecranes’ development efforts,
especially within data-intensive and rapidly developing
fields such as artificial intelligence.
Konecranes’ offering builds on Core of Lifting, which is a
purpose-built, integrated package of hardware, controls
and connectivity specifically made for cranes and
lifting motion. Designing and creating the core in-house
provides cranes with a maximized lifetime, optimal
performance, and increased safety, productivity and
sustainability.
In 2023, Konecranes’ Core of Lifting offering was
expanded as the componentry was deployed in new
equipment lines. Our straddle carriers and automated
guided vehicles now also utilize the proprietary
componentry, bringing the benefits of Core of Lifting to
even more customers.
Cybersecurity is an ever-increasing priority for our
customers and stakeholders, and Konecranes’ focus on
it yielded results also in 2023. The ISO 27001 certificate,
a standard for information security management, was
expanded to encompass all of Konecranes’ IT services.
This follows the certification of Konecranes’ digital
services in 2021 and is crucial for business as customer
demand for cybersecure digital solutions grows.
Statement of non-financial information
The scope of the reporting includes non-financial topics
that relate to Konecranes’ key impacts and reflect
stakeholder expectations. Konecranes identifies these
topics through a materiality assessment. The most essential
non-financial topics for Konecranes are responsible
business conduct; anti-corruption; safety of employees;
product-related safety and security; respect of human
rights; diversity, equity and inclusion; greenhouse gas
emissions; circular economy, and fair sourcing.
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-financial and diversity information.
During 2023, Konecranes has also put efforts in preparing
for the Corporate Sustainability Reporting Directive (CSRD)
(EU) 2022/2464 coming into force in 2024 in many ways.
These efforts include, for example, planning the CSRD
implementation, educating internal stakeholders about
the topic, working on the double materiality assessment,
analyzing readiness to comply with the disclosure
requirements defined in the European Sustainability
Reporting Standards (ESRS) as well as planning actions
to fulfill the requirements. More information about the
topics is available in the Sustainability Report 2023 that is
prepared according to the international framework of the
Global Reporting Initiative (GRI), Sustainability Accounting
Standards Board’s SASB standards as well as following the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). 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 fighting corruption. More
information on Konecranes’ external commitments is
available in the Sustainability Report 2023.
Business model and value creation
Konecranes’ ambition is to become the world leader in
material handling solutions creating value for everyone.
Konecranes is shaping the next generation of material
handling for a smarter, safer and better world. The
Company seeks to maximize the positive contributions
to its different stakeholders and the surrounding society
with its knowledge, products, services and solutions.
Konecranes creates value for its stakeholders on
multiple fronts, for example, through circular economy,
digitalization and its deeply rooted safety culture.
Konecranes delivers optimal productivity while improving
the safety and environmental sustainability of its
customers’ operations by manufacturing intelligent and
connected lifting devices, adopting new technologies
and optimizing material handling flows. Safe ways of
working are an integral part of Konecranes' business. By
prioritizing safety and security in all areas of its operations,
the Company can improve safety throughout its value
chain and provide solutions for uninterrupted and secure
material handling. Information security is essential – from
manufacturing and servicing equipment to Konecranes’
digital ecosystem. Konecranes’ systematic way of
managing information security ensures compliance with
legal and customer requirements. With its knowledge,
products, services and solutions, Konecranes provides
monetary value with sustained profitability and stability
and seeks to maximize the positive contributions for its
stakeholders and the society.
Konecranes enables reliable and optimized material
handling performance and can support decarbonization
with its innovative material handling 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 due to the possibilities in reducing their
carbon footprint. Including circular economy principles in
various processes and utilizing several circular business
models help Konecranes improve its resource and
energy efficiency while creating value for the customer.
For example, the Business Segment Service executes
the product lifecycle extension strategy by offering
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
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maintenance and repairs, remanufacturing of parts,
modernization, and retrofitting. Maintaining the lifecycle
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-
efficient products means the customer can preserve the
value of their equipment for a longer period of time and
thus also reduce the product’s environmental impact.
Being a preferred partner and being able to select
trustworthy partners is paramount for Konecranes’
whole value chain. Sustainable business practices and
systematic risk management are crucial for creating long-
term shareholder value and financial stability. In 2023,
Konecranes issued an ESG-linked revolving credit facility
with a total value of EUR 350 million with its core relationship
banks. The committed credit facility has a tenor of five
years with two one-year extension options, and it is linked
to the Company's Scope 1 & 2 emissions as well as Port
Solutions business’ eco portfolio sales (representing scope
3, accounting for more than 85% of the Scope 3 emissions
within SBT boundary). The issuing of the loan demonstrates
Konecranes’ commitment to ESG by connecting the
Company's sustainability performance to financing.
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 to employees,
boosting local economies as an employer, supporting
non-profit organizations, providing and buying local
services and goods, as well as by being a significant
taxpayer in many countries where the Company operates.
In 2023, a total of EUR 524 million (2022: 458) in taxes
and other compulsory tax-like payments were paid
and collected in countries where the Group operates,
implying an effective tax rate of 25.0 percent (2022: 27.4).
A total of EUR 244 million (2022: 207) was paid (taxes
borne) directly by the Group itself, while EUR 280 million
(2022: 251) was collected (taxes collected). Konecranes is
a compliant taxpayer in each operating country and does
not practice aggressive tax planning that would artificially
decrease the Group’s taxable income.
Konecranes’ innovation focuses not only 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.
Environmental responsibility and climate-related
disclosures
Konecranes follows the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD) to
share Konecranes’ approach to climate-related topics in
a transparent manner.
Konecranes’ environmental responsibility agenda is
driven by decarbonization and advancing circularity.
The scope of the agenda includes the Company's own
operations, customers and our supply chain. Konecranes’
commitment to science-based emissions targets to
limit global warming to 1.5°C guides its environmental
sustainability strategy. Konecranes’ commitments
concerning environmental responsibility including all
aspects of climate action and circularity can be found in
the Company's Code of Conduct and in its Environmental
Policy Statement, both of which were updated in 2023
and are available on Konecranes.com. They outline
Konecranes’ principles for managing environmental
impacts, and the Company's Global Vehicle Policy,
Investment Policy as well as Corporate Travel Policy
support the work.
In 2023, Konecranes focused on further developing its
eco-optimized portfolio, continuing the electrification
of ports equipment, decreasing the carbon impact
of its supply chain by improving the climate-related
calculations that help make informed decisions, and by
focusing on investigating low-carbon steel availabilities.
Konecranes continued rolling out its Design for
Environment concept that was updated in 2022.
Climate governance
Sustainability, including climate matters, is embedded into
Konecranes’ governance processes at several levels. The
Board of Directors’ HR Committee is the official supervisory
Board Committee following climate topics at least on an
annual basis. The Board of Directors approves the long-term
focus, ambition level and targets. The Board of Directors’ HR
Committee reviews performance and activities annually.
The Konecranes Leadership Team (KLT) plays a significant
role in the Company's management system, strategy
preparation and decision-making and is involved in the risk
and financial planning process, but it has no official statutory
position based on legislation or the Articles of Association.
Sustainability is integrated into Konecranes’ strategy.
The KLT reviews the sustainability strategy as well as all
major climate-related action plans and targets annually.
It follows emissions data on a monthly basis and oversees
other climate-related issues when needed. During 2023,
Executive Vice President People & Culture (EVP People
and Culture), a member of the KLT, was responsible for
climate topics and participated in HR Committee meetings.
The Sustainability Council, which is nominated by the KLT,
sponsored by the EVP People and Culture and chaired by
the Head of Sustainability, defines, guides and reviews the
overall sustainability strategy including climate-related
topics, short-term targets and action plans. In 2023, the
Head of Sustainability was responsible for taking actions
and making decisions at the operative level, and for building
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FINANCIAL REVIEW 2023
and coordinating climate action plans, proposing activities
and targets, and following the progress of activities.
Climate targets and metrics
Konecranes’ climate ambition is aligned with the Paris
Agreement ambition of limiting global warming to 1.5°C.
Konecranes’ targets were validated by the Science Based
Targets initiative in 2022.
Within Scope 1 and 2 greenhouse gas (GHG) targets,
Konecranes’ science-based target is to reduce its
absolute carbon emissions by 50 percent by 2030. This
target was reached in 2022, and a new target was set in
2023: Carbon neutral own operations by 2030. In addition
to investing in energy efficiency, Konecranes aims to
increase the share of renewable energy. All electricity
used in Konecranes' manufacturing sites has come from
renewable sources since 2022, and in 2023, Konecranes’
manufacturing site in Hämeenlinna started purchasing
renewable district heat. In 2023, Konecranes decreased
the emissions from its ow operations by 53 percent (50%
by 2022) compared to the 2019 baseline.
Ninety-nine 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 purchased goods
and services. Regarding Scope 3 science-based targets,
Konecranes aims to reduce absolute carbon emissions by
50 percent by 2030. This target encompasses the use of
sold products and steel-related purchases. In 2023, Scope
3 emissions within the science-based target boundary
totaled 3,445,700 CO
2
e tons, representing a 19 percent
decrease compared to the base year 2019 (4,233,600 CO
2
e
tons). Konecranes’ science-based target covers more than
70 percent of the entire value chain (Scope 3) emissions.
Scope 1 and 2 emissions data is collected monthly to
monitor progress. Scope 3 data is currently collected at
least on an annual basis. More detailed information on the
Scope 1, 2 and 3 emissions can be found in Konecranes'
Sustainability Report 2023.
Emissions (CO
2
e tons) 2023 2022 2021 2020 2019
Scope 1 37,300 40,100 44,500 43,000 52,500
Scope 2 3,300 2,900 14,400 30,300 33,100
Scope 3 5,245,400 4,650,700 5,106,900 4,900,300 5,667,700
Energy consumption 2023 2022 2021
Total energy consumption (MWh) 236,000 251,400 275,000
Fuel consumption
1)
(MWh) 123,900 133,500 129,600
Natural gas and LPG consumption (MWh) 43,900 45,900 63,400
Electricity consumption (MWh) 57,500 60,800 68,900
District heat consumption (MWh) 10,600 11,300 13,000
• GHG emissions (CO
2
e tons) calculated in line with the GHG Protocol methodology.
• 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. Scope 2 indirect emissions are calculated according to the GHG Protocol
Scope 2 Guidance dual reporting requirement: market-based (see emissions table) and location-based (2023: 19,800; 2022: 20,200; 2021: 23,800:
2020: 27,600; 2019: 29,700) method.
• The figures cover all forms of energy used in Konecranes’ manufacturing locations and service units. Potential renewable shares are not taken into account
for fuels, except for HVO100. All fuel consumption from Konecranes’ service operations and the electricity consumption from the Company's largest
service office sites are included. Figures on the use of natural gas, LPG and district heat from Konecranes’ service operations are excluded because
collecting exact data from the Company's service network is challenging and the consumption amounts are estimated to be very marginal.
• All electricity used in Konecranes manufacturing sites has come from renewable sources since 2022, which was the main contributor in the reduction of
the emissions between 2021 and 2022.
• Scope 3 includes emissions from use of sold products, purchased goods and services, upstream transportation and distribution, employee commuting,
investments, fuel- and energy-related activities, downstream transportation and distribution, end-of-life treatment of sold products, capital goods,
business travel and waste generated in operations.
• In 2023, a new methodology was developed to calculate the Scope 3 fuel- and energy-related activities and employee commuting. The emissions are
calculated using the best available emission factors from BEIS 2023 (UK Department for Business, Energy & Industrial Strategy), ecoinvent 3.9.1, and IEA
Emission factors 2022 databases.
• GHG emission intensity: In 2023, total emissions per sales 9 tCO
2
e/million euros (2022: 12 tCO
2
e/million euros). Total emissions include scope 1 and scope
2 (market-based method). CO
2
, CH
4
and N
2
O included. GWP: 2007 IPCC Fourth Assessment Report AR4.
• The table covers all forms of energy used in our manufacturing locations and service operations. The use of natural gas, LPG and district heat from our
service operations’ figures are excluded as the consumption amounts are estimated to be very marginal.
• 1 MWh = 3.6 GJ
•
1)
Fuel consumption consists of diesel, petrol, ethanol and HVO100.
Environmental management in Konecranes’ own
operations
Konecranes focuses on improving the energy efficiency
as well as the waste and chemical management of its own
operations, in both service and manufacturing operations.
In addition to Science Based Targets, Konecranes
has signed national voluntary agreements on energy
efficiency. The Company will meet improvement targets
by investing in energy efficiency actions such as heat
recovery and lighting as well as more fuel-efficient or
electric cars and route optimization.
In chemical management, the objective is to substitute
hazardous chemicals with less harmful ones and
to minimize the amount of hazardous chemicals in
products. Waste management focuses on resource
efficiency and increasing the recycling rate while
avoiding landfill waste.
Konecranes' environmental work is driven by the HSE
Excellence program that focuses on certifying operations
with ISO 14001 Environmental Management System,
implementing rules for environmental behavior as well as
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
minimum requirements for environmental management
as per our global HSE standards. Konecranes aims to
certify all its manufacturing sites with ISO 14001:2015. In
2023, a total of 86 percent (2022: 83%) of the Company's
factories had an ISO 14001 environmental management
system certificate requiring systematic continuous
development and the establishment of local annual
targets. The coverage has increased from 2022.
The Company assesses the environmental risks of its
service and manufacturing operations 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.
Eco-optimized offering and circularity
Konecranes promotes decarbonization by substituting
existing technologies with lower-emission alternatives
and by extending product lifecycles with its solutions
and service concepts. Konecranes’ customers benefit
significantly from investing in durable equipment that can
be repaired and modernized and receive added value
from uninterrupted operations.
Konecranes has a company-level strategy to further
improve the overall environmental responsibility of
its offering that enables the Science Based Targets
pathway and advances circularity. Konecranes focuses
on electrifying its offering as well as on ensuring that its
product development emphasizes energy efficiency.
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).
Konecranes designs its products with their complete
lifecycle in mind, as the majority of the environmental
impact of a product’s lifecycle is defined at the product
design stage. Konecranes’ product design is based
on smart design principles focusing on maintainability,
repairability, durability, and material selection, including
recyclability and energy efficiency. In 2023, the Company
carried out trainings on product development to
ensure the effective implementation of the Design for
Environment guideline, which aims to ensure all products
and services are more sustainable than the previous
generation.
Konecranes wants to be a leader in advancing circular
economy. The Company is continuously investigating
new circular solutions and their possible business
potential. During 2023, three circular innovation
ideas were moved to a phase where the Company
further studies and evaluates their business potential.
Konecranes’ circular economy thinking focuses 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 efficiency, designing out waste and keeping
materials and products longer in use.
Konecranes’ service operations promote circular
economy by extending the lifecycle of equipment
through maintenance and repairs, remanufacturing
of parts, modernization, and retrofitting. This helps
Konecranes improve its own resource efficiency while
reducing its customers’ environmental footprints.
Preventive maintenance supports emissions reduction as
the data can be used to optimize maintenance activities
(service visits and spare parts needs). Konecranes’
retrofitting and modernization services can offer 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 significant amount
of steel and in most cases reduce use phase emissions
when traditional diesel generators are retrofitted as
hybrids or full electric.
Climate risk management
Konecranes has a Group-wide process for evaluating
risks. Climate risks are integrated into a multi-disciplinary
company-wide risk management process. The Board
of Directors of Konecranes has defined 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 identified 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 on the
business.
Company-level climate-related risks and opportunities
are assessed systematically at least biannually. As a basis
for climate assessment, Konecranes uses the information
received from local natural hazard risk evaluations, climate
risk scenario analysis as well as insights from internal
experts and business segments management team
members. Short-, medium- and long-term (0–20 years)
risks and opportunities are identified and assessed.
Local environmental and climate-related risks are
assessed according to the requirements of the ISO 14001
environmental management system. Key risks are reported
to risk management (legal department), the Konecranes
Leadership Team and the Board of Directors’ Audit
Committee. The KLT and business segment management
teams are responsible for supporting risk mitigation
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with the needed activities. More information about the
management of climate risks is available in Konecranes
CDP answer (chapter C2), available at cdp.net.
Identified risks and opportunities and resilient
business strategy
The potential impacts of climate change are far-reaching.
Konecranes has reviewed both aspects of climate change
– how climate change affects Konecranes and how the
Company contributes to climate change. Konecranes
updated its climate scenario analysis and verified key
risks and opportunities in all business segments in 2022.
During the process, potential short- to long-term financial
impacts were considered.
Konecranes recognizes that climate risks have potential
negative impacts in the short, medium and long term.
Among the most significant physical risks are floods
and severe storms that might damage Konecranes'
manufacturing sites or customers’ sites and cause
business interruption and delays in manufacturing and
transportation. The Company has conducted several
natural hazard assessments with its insurance company
to understand the probability, time scale and actual risks
involved. This information is taken into consideration in
business continuity planning.
Technological development has been identified as one
of the most significant transitional risks and opportunities
for Konecranes. In a scenario where Konecranes’ product
offering would not be attractive to its customers and
would not help them achieve their environmental targets,
Konecranes could lose market share. To mitigate these
risks, Konecranes is committed to electrifying its offering,
continuing the development of the energy efficiency of
its equipment, and seeking new services and solutions
that accelerate circularity and digitalization.
The most relevant climate opportunities reside in
Konecranes’ offering, enabling the decarbonization
of customers’ operations by providing equipment
and solutions that reduce emissions and advance
electrification. Transition to a low-carbon society is
faster in climate scenarios where global warming is less
than 2°C. In these scenarios, Konecranes has identified
possible increased sales opportunities in its current and
future eco-optimized offering. The Company offers
hybrid and electric cranes as an alternative to traditional
diesel-fueled cranes, and energy-saving features such
as regenerative braking to help customers minimize
their emissions. Konecranes also conducts at least three
studies per year to find new circular opportunities that
further support the development of its eco-optimized
offering.
Emerging regulation creates a significant climate-related
risk for the Company as it might lead to increased cost
of energy and materials, for example, due to increased
taxation of carbon-intensive raw materials. To mitigate
this risk, Konecranes is closely following regulatory
developments. The Company also applies smart design
principles to maximize resource efficiency and invests in
renewable energy sources.
Konecranes considers production methods that improve
energy efficiency and minimize waste as a climate-
related opportunity. The Company continues to roll out
lean manufacturing practices with the Konecranes Way
program.
An extensive list of climate risks and opportunities is
available at Konecranes.com. More information is also
available in Konecranes CDP answer (chapter C2).
Respect for human rights
Konecranes respects human rights and promotes the
principles set in the International Bill of Human Rights, UN
Guiding Principles on Business and 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 basic principles are stated in Konecranes’
Code of Conduct and more details are available in the
Human Rights Policy. Konecranes has a corporate policy,
the Fair Labor Frame, which sets a standard and ambition
for workforce-related activities, such as working hours
and freedom of association.
Additionally, human rights are addressed in the Company's
Health & Safety and Diversity, Equity & Inclusion Policy
Statements, as well as in the data protection compliance
requirements. 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 part of its overall human rights due diligence,
Konecranes regularly assesses human rights risks and
impacts, engages with affected stakeholders and
develops and implements procedures for preventing,
mitigating and monitoring potential and actual adverse
human rights impacts in its own operations and business
relationships. The Company works continuously to
improve its due diligence process.
Konecranes updates its human rights risk and impact
assessment annually by combining an earlier human
rights risk screening conducted with the help of an
external service provider with results received from
different monitoring sources, such as audits, surveys and
a whistleblowing channel. Amongst relevant potential
human rights risks in the Company's own or in its value
chain’s operations are occupational safety and health,
working conditions, non-discrimination and harassment,
slavery and forced labor, privacy and environmental
degradation.
The Company has several processes in place to prevent
and mitigate identified risks. The section Safety explains
how the Company addresses health and safety topics,
while the section Diversity describes the Company's
strong Diversity, Equity & Inclusion program, which
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proactively prevents discrimination and promotes equity.
The environmental degradation caused by climate
change has various negative impacts on people, and
Konecranes works to reduce its carbon emissions, as
described in the section Environmental responsibility
and climate-related disclosures. Konecranes takes data
privacy seriously and has a data protection program in
place with a structured governance model and periodic
trainings.
Konecranes conducts third-party social responsibility
assessments in the Company's operations located in
high-risk countries, paying special attention to issues
identified in human rights risk screening, such as working
conditions. During 2023, the Company took action to
mitigate identified non-conformities locally, and it is
currently developing global processes to address topics
recurring across the sites. Assessments will continue in
2024.
To manage the above-mentioned human rights risks
within its complex supplier base, Konecranes has a set of
supply chain compliance management processes. Read
more in the section Responsible business conduct.
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 to get everyone home safe, every day. Konecranes
seeks to achieve this goal through strategic, centrally
led programs such as HSE Excellence and business-
specific initiatives. Transparent and comprehensive
safety reporting and follow-up procedures help the
Company build a coherent safety culture, recognize its
most significant risks and validate the effectiveness of its
safety work. Konecranes’ occupational health and safety
principles are defined in the Company's Code of Conduct
and Health and Safety Policy Statement, which were
updated in 2023. 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’
services and equipment enable its customers to work
efficiently and safely. Safety is incorporated into the
design, manufacturing, maintenance and service of
Konecranes’ products. For example, Konecranes' Remote
Operating Station enables the crane operator to work in
safe areas with better ergonomics. Konecranes’ Smart
Features (such as sway control and target positioning)
also help crane operators operate the crane safely.
The most significant safety risks to Konecranes’
employees 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 receive
training to perform their tasks safely and appropriately.
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 79 percent (2022: 69%)
of the manufacturing sites are ISO 45001 certified.
Safety performance data is continuously available
to management through online safety performance
dashboards and is addressed on all management levels.
Overall 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 called.
The KPI for Konecranes’ safety is the Total Recordable
Incident (TRI) rate, which refers to the number of work-
related injuries that required professional medical attention,
causing or not causing absence from work per one million
working hours. The recordable incident rate for 2023 was
4.6 (5.6 in 2022), an improvement of 18 percent compared
to the previous year. The Company also tracks the number
of Safety Observations made as a leading KPI. In 2023,
Konecranes personnel made a total of 95,686 safety
observations, which was 34 percent more than in 2022
(71,382). In 2023, the number of fatalities was 0 (2022: 0).
People Strategy
Konecranes’ people strategy focuses on enhancing
the Company's winning culture and growth mindset –
leading by example with inspiring, inclusive leaders, and
enabling everyone to succeed in delivering profitable
and sustainable growth. Konecranes’ talented, diverse,
and engaged employees help the Company's customers
improve safety and productivity every day. Konecranes’
people strategy supports this by ensuring that the
Company is attracting the best talent and building
a culture of continuous learning where people are
supported and encouraged to develop and grow every
day, and that employees are engaged and capable of
meeting future business requirements. The Company
fosters and advocates an inclusive culture, where
fair treatment and ethical ways of working are part of
everyday life.
The Company's four new values – Putting customers
first, Doing the right thing, Driving for better and Winning
together – summarize the core aspects of how to behave
at Konecranes. Living up to and acting according to
Konecranes' values will guide the Company towards
becoming the world leader in providing material handling
solutions and creating value for everyone.
Konecranes offers its employees various development
programs in areas such as technology, sales,
communication, leadership, health and safety, project
management and ways of working. In addition,
employees can enrich their work, for example, by learning
on the job, learning from peers or joining mentoring and
coaching programs and communities.
Konecranes is committed to managing potential
restructuring situations responsibly and to utilizing all
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relevant and available preventive means applicable to
the specific case, such as the reduction of working time
or early retirement. The Company actively engages with
employee representatives, and possible decisions and
actions are made according to applicable social and legal
processes, as well as local requirements.
At Konecranes, employee engagement and inclusion are
measured by conducting regular pulse and employee
engagement surveys across the organization. This allows
the Company to get better visibility on what is driving
its employee engagement and provides actionable
insights on how to improve in these areas. Through fair and
competitive compensation, management and leadership
development programs, career planning, internal job
rotation and various programs to support professional
growth and well-being, the Company is making a positive
impact and mitigating the risk of loss of talent and
competencies.
Diversity, equity and inclusion
Konecranes aims to create a diverse and inclusive working
environment where people feel trusted, they can be
themselves and there is a sense of belonging. Konecranes
wants to represent the multicultural communities where
it operates, becoming a great partner for its customers.
All backgrounds and the variety of talents are an asset
for the Company's growth. The objective is to make sure
that everybody can have the opportunity to succeed, and
that their diverse backgrounds are valued. By assuring
psychological safety and variety of ideas and viewpoints
inherent in diverse backgrounds, Konecranes aims to be
the company of choice for employees. Inclusion means
that the strengths of differences are welcomed and
leveraged so that people feel valued for their contribution.
In 2023, Konecranes’ inclusion index was 81%, which
indicates a strong inclusion among the employees.
Konecranes’ Diversity, Equity and Inclusion (DEI) Policy
Statement was updated in 2023. With this and the
updated Talent Acquisition and Recruitment Policy, the
Company wants to reflect its ambition to have a diverse
talent funnel. Konecranes’ work is based on a Diversity,
Equity and Inclusion vision, supported by a “4T” strategy
(Talented, Transforming, Trusted and Togetherness)
and a three-year roadmap. The Company has already
successfully integrated Diversity, Equity and Inclusion into
its cultural foundation, such as the Company's recently
launched values, business agenda and strategic enablers.
During 2023, Konecranes continued to further develop
its DEI approach and embed inclusion and equity in the
Company's processes. A pay equity pilot was launched
in five EU countries, the findings were analyzed, and the
related improvement plans focus on removing biases
from our processes. In addition, the Company has
multiple ongoing local initiatives regarding DEI topics.
Strategies were defined to advance inclusion in the
areas of LGBTQI+ and disabilities. Konecranes measures
diversity and inclusiveness of the talent funnel in its
talent management and succession processes, and
for that reason, the data and analytics capabilities were
further developed, which helps the Company measure
its progress. During 2023, Konecranes also continued to
raise awareness about DEI topics internally, increased the
learning offering on inclusion and unconscious biases, and
renewed its e-learning for all employees. Additionally, the
Employee Resource Groups (ERG) are an important way
to build inclusion in different DEI areas.
The current gender balance for all Konecranes employees
is 18.6 percent female (2022: 18.2%) and 81.1 percent male.
Konecranes strives to increase gender balance and all
aspects of diversity in the entire organization as well as in
the Company's leadership. The progress is followed on a
monthly basis. The mentoring program continued in 2023,
supporting the development of a diverse leadership
bench. At the end of 2023, women occupied 17.0 percent
of the leadership positions (2022: 14.3%). Konecranes
involved the entire organization in its inclusive talent
process, allowing the identification of diverse talents and
creating development actions. The talent process is a
key element of the Company's DEI culture and it has been
implemented and refined diligently. It now stands as a
cornerstone of Konecranes’ diverse talent development,
fostering a culture of employee development and actively
supporting the advancement of talents.
Konecranes continues its cooperation on DEI with
external communities, aiming to advance DEI and to set an
example within the industry.
Responsible 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, data protection,
competition compliance and diversity. The main
compliance policies and the yearly Code of Conduct
training are available in 35 languages. All employees
are expected to understand and abide by the Code
of Conduct. Konecranes has a regular compliance
and ethics risk assessment process supported by risk
assessment surveys to gather insights throughout the
organization. Konecranes’ global Compliance & Ethics
Program is managed by the Group’s Compliance & Ethics
team, and its development and quality are overseen by an
executive-level Compliance and Ethics Committee and
the Board of Directors’ Audit Committee. The Head of the
Compliance and Ethics team regularly reports directly to
the Board’s Audit Committee.
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 hosted whistleblowing channel open to
the Company's employees as well as all externals, 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.
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Konecranes also encourages its suppliers and other
business partners to report any compliance and ethics
concerns relating to Konecranes.
During 2023, Konecranes’ Code of Conduct was
reviewed and updated to make it more user-friendly with
enhanced practical guidance and examples. In addition,
the Company's data protection policy was updated and
continued focus was put on the Group’s whistleblowing
and investigation processes and related guidance to
ensure compliance with the new whistleblowing law
requirements in the EU. Multiple awareness-raising
activities and trainings took place in 2023, with the
main focus being on compliance trainings in the APAC
region, targeted data protection trainings, as well as
launching of the updated Code of Conduct and the yearly
Code of Conduct training. The 2023 Code of Conduct
training focusing on human rights, data protection and
whistleblowing was mandatoryfor all staff employees (i.e.
all employees excluding operatives) globally, and over
9,500 employees completed the training during 2023.
Konecranes expects its suppliers and subcontractors
to conduct their business in compliance with the
same legal and ethical requirements and principles
that Konecranes requires in its Code of Conduct.
These principles are of the utmost importance when
establishing and conducting business relationships.
Konecranes’ Supplier Code of Conduct (“SCoC”) sets the
minimum legal and ethical requirements and principles
of conduct which Konecranes requires from its suppliers
and subcontractors. The SCoC has requirements, for
example, on anti-corruption, trade compliance, human
rights, safety, environmental and compliance topics.
The principles and requirements of the SCoC form an
important part of the agreements made with key suppliers
and subcontractors. During 2023, the SCoC was reviewed
and updated to meet the current and upcoming legal
and compliance needs, and the updated SCoC will
become effective as of February 2024. By the end of
2023, 58 percent of suppliers (as share of spend) had a
signed commitment to the principles and requirements
of the SCoC. Background checks on suppliers and
subcontractors are done during the onboarding phase,
and thereafter selected suppliers or subcontractors
are assessed based on self-assessments and possible
on-site supplier audits. In 2023 Konecranes continued
on-site 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, and set the foundation for the Company's
anti-corruption program. The Anti-Corruption Policy
has compliance protocols and guidelines in place to
detect and address 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 internal controls,
sponsorships and donations approval process, a Gift and
Hospitality Portal and a Conflict of Interest portal.
Anti-Corruption matters form an important element of
the Code of Conduct trainings and it is also the subject of
regular, targeted trainings. 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 flags
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. Selected business
partners are also audited for their anti-corruption work.
EU Taxonomy
Konecranes has activities that qualify as environmentally
sustainable according to the EU Taxonomy Regulation
(EU) 2020/852. Konecranes has activities related to
its equipment sales that are in the scope of technical
screening criteria (TSC) 3.6. Manufacture of other low
carbon technologies of delegated regulation (EU)
2021/2139. These activities are, according to Article
16 of the Taxonomy Regulation, enabling substantial
contribution towards climate change mitigation, which
is one of the objectives defined in Article 9 of the
Regulation. In addition, Konecranes’ service activities
within both Business Areas are taxonomy-eligible for
their contribution to circular economy according to
delegated regulation (EU) 2023/3851 C (2023) 3851,
activities that support the transition to circular economy
and are described in the TSC 5.1 Repair, refurbishment
and remanufacturing and 5.2 Sale of spare parts. These
activities are, according to Article 16 of the Taxonomy
Regulation, contributing substantially to a circular
economy, which is one of the objectives defined in Article
9 of the Regulation.
Accounting principles and assessment process
Eligibility and alignment of revenue was evaluated at
product and solution level and represents only sales
to external customers at corporate level. Eligibility
and alignment of capital expenditure and operational
expenditure were assessed at corporate level.
Konecranes avoids double counting by clearly separating
the activities related to equipment and service activities,
and by having a clear structure in financial reporting to
ensure that the business units and cost elements are
separate for each activity.
Konecranes completed the process of reviewing the
taxonomy eligibility and alignment of all Konecranes
activities against the Climate Delegated Regulation in
2022. The work included identifying eligible and aligned
activities, reviewing the technical screening criteria (TSC)
and the ‘do no significant harm’ criteria (DNSH) for each of
the remaining five environmental objectives for all relevant
business activities, and carrying out an assessment of
the Minimum Safeguards (MS) at corporate level. The
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purpose of the process was to define taxonomy eligibility
and alignment, and to gather evidence of substantial
contribution. The focus of the first assessment was on
the activity code 3.6. Manufacturing of other low carbon
technologies. In 2023 the main change in the process
was to assess the new environmental objectives and
to identify eligible activities related to environmental
objectives for economic activities contributing
substantially to the transition to a circular economy.
Konecranes’ operations include service activities which
contribute to a circular economy as described in the
Environmental Delegated Act. Activity 8.2. for data driven
solutions for greenhouse gas (GHG) emissions reductions
was removed due to immateriality. Konecranes also
reviewed its compliance against the updated 2023
version of the OECD guidelines.
Eligible and aligned revenue
The relevant activities of Konecranes are aligned with the
objective of Climate Change Mitigation (CCM) according
to the technical screening criteria of 3.6. Manufacture
of other low carbon technologies. The calculation of the
revenue percentage is based on lower carbon technology
such as inverter-controlled hoisting, regenerative braking
and hybrid and electric power options (within the markets
where there are diesel power options). These solutions
provide a lower-emission alternative compared to other
available technologies. Inverter technology as well as
regenerative braking solutions may contribute significantly
to the energy consumption of the equipment, saving 15–45
percent in carbon emissions from the use phase during the
crane’s lifecycle. These technologies substitute existing
technology with lower-emission alternatives in lifting
applications of all customer industries, but especially in
heavy duty applications where the use phase impact is
significant. Compared to diesel equipment, hybrids lead up
to 20 percent emissions saving during equipment lifetime.
Electric equipment can reduce emissions by approximately
70 percent. When using renewable electricity, the
emission savings will be higher. These equipment aim
to create substantial GHG emissions reductions in the
ports and terminal industries. Konecranes’ activities in
these areas enable substantial contributions towards
climate change mitigation according to representative
Lifecycle Assessments (LCA) made in comparison with the
best performing alternative technologies. The lifecycle
GHG emissions savings are calculated according to
ISO standards. The ‘do no significant harm’ criteria were
assessed based on the remaining five environmental
objectives, and eligible revenue fulfilled all the criteria.
There was a change in the criteria for pollution prevention
and control, which now enable a different assessment
outcome compared to the previous year, when Konecranes
was not able to define the alignment. Konecranes has
provided restated percentages for alignment accordingly
in the reporting tables.
The new Environmental Delegated Act enabled
Konecranes to evaluate the taxonomy eligibility of its
service activities. Environmental activities contributing
substantially to a circular economy include maintenance
and service activities, since these enable a significantly
longer lifetime for the equipment. The taxonomy
eligibility of Konecranes’ service activities was assessed
according to the technical screening criteria and ‘do no
significant harm’ criteria of 5.1 Repair, refurbishment and
remanufacturing and 5.2 Sale of spare parts. The result
was that all service and maintenance operations carried
out by Konecranes’ business segments Industrial Service
and Port Solutions are eligible under these criteria. Based
on Konecranes’ initial assessment, the eligible revenue is
also aligned to a large degree. Alignment will be reported
from the year 2024.
‘Do no significant harm’ assessment
The ‘do no significant harm’ (DNSH) assessment has
been conducted collaboratively for Konecranes entities,
focusing on Konecranes’ production sites and offering.
Climate change adaptation
Konecranes has conducted a climate risk and
opportunity assessment based on SSP1-2.6 and SSP3-
7.0 scenarios up to the year 2100. Based on the results
of the assessment, Konecranes has implemented
mitigation measures.
Sustainable use and protection of
water and marine resources
Konecranes has good practices in place for water
management, such as the ISO 14001 management system,
and other internal processes and policies. According
to a study done using the WWF’s Water Risk Filter tool,
Konecranes has no manufacturing sites in “Extremely High”
water stress areas. Only two of Konecranes’ sites in high-
risk areas use water in their production processes. For
example, the site in Jejuri, India, has countermeasures in
place, such as a closed-loop system for the water used in
the production process and a sewage treatment plant.
Transition to a circular economy
Konecranes’ commitment to a circular economy is
integrated into the Company's business processes,
covering sourcing, product development and production.
Konecranes has implemented a Design for Environment
(DfE) concept, and the Company's Supplier Code of
Conduct covers requirements for waste management
and a list of restricted substances. For its own operations,
the Company has launched a Global Environmental
Standard on waste management.
Pollution prevention and control
The criteria for this environmental objective require
that relevant business activities do not lead to the
production, putting onto the market, or use of chemicals
listed in multiple EU chemical regulations and directives.
Konecranes has identified that its products contain
commercial components that, at low concentrations,
include Substances of Very High Concern (SVHC),
such as lead. Konecranes is compliant with the REACH
Regulation. The Company's processes ensure that
the use of such substances is minimized and that
components are substituted if there is commercial
availability.
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Protection and restoration of biodiversity and ecosystems
Konecranes has conducted an analysis to identify
factories located in biodiversity-sensitive areas such
as UNESCO World Heritage sites, Ramsar sites or
UNESCO biosphere reserves, and based on the analysis
no factories are located in these areas. However,
the Company’s Thailand factory is in an area that is
considered a key biodiversity area. The biggest threats to
the area’s biodiversity are agriculture, urban expansion,
infrastructure and industrial development, as well as
pollution. The factory is in an established industrial area
and no factory expansions are planned. Konecranes
aims to secure that it has an efficient environmental
management system in place including pollution control
and waste management practices, as well as all other
necessary precautionary procedures.
Minimum safeguards
Konecranes has assessed its alignment regarding the
Minimum Safeguards and based on the assessment, it has
adequate minimum safeguards in place. Konecranes is
committed to the UN Guiding Principles on Business and
Human Rights and the OECD Guidelines for Multinational
Enterprises. The Company has reviewed its compliance
with the updated 2023 OECD guidelines. The Company
has a documented assessment of the due diligence
criteria. Konecranes’ global policies such as the Code
of Conduct, the Human Rights Policy and the Supplier
Code of Conduct, among other standards, set the
minimum requirements for the conduct of the Company's
employees, management and business partners.
Furthermore, Konecranes has processes in place to
discover any material breaches or violations of the
principles. The Company is committed to strengthening
the processes and assessments continuously to further
improve its practices.
Turnover
Revenue is calculated on the basis of the sales revenue
(revenues according to IFRS 15) reported in the income
statement for the year 2023, which amounted to EUR
3,966 million (denominator). Revenue is calculated at
product level and represents only equipment sales to
external customers on a group level. Taxonomy-aligned
products for the activity 3.6. account for EUR 758 million,
or 19 percent of Konecranes’ revenue. The changes in
the revenue are affected by the sales mix. In 2023, the
sales mix of Business Segment Port Solutions was more
weighted for electrified and hybrid products, causing a
slight increase in its share of revenue. Taxonomy-eligible
service solutions for the activity 5.1 account for EUR 1,060
million, or 27 percent of the revenue, and for the activity
5.2. EUR 485 million, or 12 percent of the revenue.
Capital and operating expenditure
Capital expenditure (CapEx) and the specifically defined
categories of operating expenditure (OpEx) described in
the Taxonomy Regulation are reported at group level. They
support the transition towards a low carbon economy and
achieving the science-based climate targets set for own
operations and for the value chain.
CapEx in intangible and tangible assets amounted to a
total of EUR 110.6 million (2022: 98.4 million) (see Notes
14 and 15 to the Financial Statements). In taxonomy
reporting, CapEx includes additions to right-of-use
assets reported in Note 15 to the Financial Statements,
while this is excluded from CapEx presented in the
Group’s key figures. In the aligned CapEx, Konecranes
includes the energy efficiency improvements of own
and leased facilities and production equipment. In
the eligible CapEx, Konecranes reports vehicles used
for the service activities, meaning, for example, the
maintenance and modernization of customer assets.
Konecranes only includes investments with a value
over EUR 50,000 that improve the energy efficiency of
facilities or equipment and leads to lower emissions. The
aligned CapEx is related to assets or processes that are
associated with Konecranes’ own taxonomy-aligned
activities. The taxonomy-aligned CapEx of EUR 4.6
million in the reporting year is reported in property, plant
and equipment.
Konecranes defines aligned and eligible OpEx as direct
non-capitalized costs that relate to building renovation
measures and maintenance and repair expenditures
relating to the day-to-day servicing of assets of
property and equipment that are necessary to ensure
the continued and effective functioning of such assets.
R&D expenses for projects to lower the emissions or
improve the energy efficiency of Konecranes products
are also included. Konecranes classifies the costs of
maintenance and repair for plants that manufacture
taxonomy-aligned products as taxonomy-aligned OpEx.
Taxonomy-eligible OpEx for the technical screening
criteria 5.1. and 5.2. refers to costs of maintenance
and repair for locations in service operations. The
expenditure of these costs is calculated according to
the proportion of taxonomy-aligned sales or production
value of the total sales or production value. The OpEx is
related to assets or processes that are associated with
own taxonomy-eligible or taxonomy-aligned activities.
From taxonomy-aligned OpEx, EUR 3.4 million was for
maintenance and repair expenditures and EUR 10.4
million for R&D expenses. For circular economy units,
the eligible OpEx is calculated proportionally according
to the taxonomy-eligible sales. The total OpEx contains
direct non-capitalized costs that relate to building
renovation measures and maintenance and repair
expenditures related to servicing of assets of property
and equipment, R&D expenses and short-term leases.
The proportion of taxonomy-aligned or -eligible OpEx as
well as total OpEx in 2022 has been restated according to
the 2023 definitions.
4 percent of CapEx and 19 percent of specifically defined
taxonomy OpEx is taxonomy-aligned. The main reason
for the reduction in the taxonomy-aligned OpEx was a
lower share of low-carbon R&D. 19 percent of CapEx
and 4 percent of specifically defined taxonomy OpEx is
taxonomy-eligible.
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Table 1. Revenue
Turnover from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2023
Economic Activities Code Turnover
Proportion
of turnover,
year 2023
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Minimum
safeguards
Proportion
of Taxonomy
aligned
or eligible
turnover,
year 2022
Category
enabling
activity
Category
transitional
activity
M€ % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Manufacturing of other low
carbon technologies
CCM 3.6 758 19% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 14% E
Turnover of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
758 19% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 14%
Of which Enabling 758 19% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 14% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y 0% T
A.2. Taxonomy-Eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Repair, refurbishment and
remanufacturing
CE 5.1 1,060 27% N/EL N/EL N/EL N/EL EL N/EL
Spare parts CE 5.2 485 12% N/EL N/EL N/EL N/EL EL N/EL
Turnover of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
1,545 39% 0% 0% 0% 0% 100% 0% 0%
A. Turnover of Taxonomy-eligible
activities (A.1 + A.2)
2,303 58% 33% 0% 0% 0% 67% 0% 14%
B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
Turnover of Taxonomy-non-eligible
activities
1,663 42%
TOTAL 3,966 100%
Substantial Contribution Criteria
Financial year 2023
2023
DNSH criteria ('Does Not Significantly Harm')
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Table 2. CapEx
CapEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2023
Economic Activities Code CapEx
Proportion
of CapEx,
year 2023
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Minimum
safeguards
Proportion
of Taxonomy
aligned
or eligible
CapEx, year
2022
Category
enabling
activity
Category
transitional
activity
M€ % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Manufacturing of other low
carbon technologies
CCM 3.6 5 4% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 5% E
CapEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
5 4% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 5%
Of which Enabling 5 4% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 5% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y 0% T
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Repair, refurbishment and
remanufacturing
CE 5.1 21 19% N/EL N/EL N/EL N/EL EL N/EL
CapEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
21 19% 0% 0% 0% 0% 100% 0% 0%
A. CapEx of Taxonomy-eligible
activities (A.1 + A.2)
26 23% 18% 0% 0% 0% 82% 0% 5%
B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
CapEx of Taxonomy-non-eligible
activities
85 77%
TOTAL 111 100%
Substantial Contribution Criteria
Financial year 2023
2023
DNSH criteria ('Does Not Significantly Harm')
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Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Table 3. OpEx
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2023
Economic Activities Code OpEx
Proportion
of OpEx,
Year 2023
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Minimum
safeguards
Proportion
of Taxonomy
aligned
or eligible
OpEx, year
2022
Category
enabling
activity
Category
transitional
activity
M€ % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Manufacturing of other low
carbon technologies
CCM 3.6 14 19% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 31% E
OpEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
14 19% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 31%
Of which Enabling 14 19% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 31% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y 0% T
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Repair, refurbishment and
remanufacturing
CE 5.1 2 3% N/EL N/EL N/EL N/EL EL N/EL
Sale of spare parts CE 5.2 1 1% N/EL N/EL N/EL N/EL EL N/EL
OpEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
3 4% 0% 0% 0% 0% 100% 0% 0%
A. OpEx of Taxonomy-eligible
activities (A.1 + A.2)
17 23% 83% 0% 0% 0% 17% 0% 31%
B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
OpEx of Taxonomy-non-eligible
activities
56 77%
TOTAL 73 100%
Substantial Contribution Criteria
Financial year 2023
2023
DNSH criteria ('Does Not Significantly Harm')
57
Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
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 liability claims.
Risks and uncertainties
Global component and labor availability challenges
and other global supply chain constraints may lead to
production and customer delivery delays and have a
negative impact on Konecranes' sales and cash flow.
Inflation may also increase risk for negative impact on
Konecranes' cash flow and result. Furthermore, high
inflation can increase the likelihood of weaker demand
conditions and credit losses.
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 flow. Physical
restrictions may also lead to component availability and
other supply chain 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.
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 Zaporizhzhia, Ukraine. In 2022, Konecranes impaired
all Ukraine related assets as the level of uncertainty
regarding Konecranes’ operations in Ukraine remains high
due to the ongoing war.
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
economies. This has led and can lead to changes in supply
chains as well as increases in tariffs on imported goods.
These risks may result in a decrease in profitability.
Konecranes has made several acquisitions and
expanded organically into new countries. A failure to
integrate acquired businesses or grow newly established
operations may result in a decrease in profitability 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 benefits from new processes
and systems may lead to an impairment of assets or
decrease in profitability.
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 financing, e.g. due to currency fluctuations,
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.
Cyber security risks have increased in Konecranes’
industry, as in most industries, in recent years. Potential
cyber-attacks against Konecranes or its suppliers may
result in delivery delays and/or a decrease in profitability.
The Group’s risks and risk management are discussed
in the Notes to the Financial Statements and the
Governance Supplement to the Annual Report.
Stock exchange releases during full
year 2023
Date Release
December 15,
2023
Konecranes Restricted Share Unit Plan 2017 -
directed share issue
December 15,
2023
Changes in Konecranes Leadership Team: Minna
Aila appointed EVP, Corporate Affairs & Brand
October 25,
2023
Konecranes Plc's Interim Report, January-
September 2023: All-time high quarterly
comparable EBITA margin
October 24,
2023
Konecranes Plc's financial information and AGM in
2024
September 7,
2023
Composition of Konecranes Plc's Shareholders'
Nomination Board
September 7,
2023
Changes in Konecranes Leadership Team: Juha
Pankakoski appointed EVP, Port Solutions, Mika
Mahlberg to leave the company
July 26, 2023
Konecranes Plc's Half-year financial report,
January-June 2023: Sustained strong performance
July 14, 2023
Change in Konecranes' Leadership Team
June 15, 2023
Change in Konecranes' reporting languages
starting from January 1, 2024
June 7, 2023
Changes in the Composition of the Konecranes'
Shareholders' Nomination Board
58
Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Date Release
May 16, 2023
Konecranes Plc: Notice pursuant to the Finnish
Securities Market Act, Chapter 9, Section 10
May 10, 2023
Shaping next generation material handling for
a smarter, safer and better world: Konecranes
announces new financial targets
April 28, 2023
Konecranes Plc: Interim report, January-March
2023
March 29, 2023
Konecranes Plc: Board of Directors' organizing
meeting
March 29, 2023
Resolutions of Konecranes Plc's Annual General
Meeting of shareholders
February 28,
2023
Konecranes Plc's Annual Report 2022 published
February 22,
2023
Konecranes Employee Share Savings Plan 2019 -
directed share issue
February 10,
2023
Konecranes Plc's Board of Directors convenes the
Annual General Meeting 2023
February 2, 2023
Proposals by the Board of Directors to the Annual
General Meeting 2023
February 2, 2023 Konecranes Plc: Financial statement release 2022
February 1, 2023
The Board of Directors of Konecranes Plc has decided
to continue the Employee Share Savings Plan
February 1, 2023
The Board of Directors of Konecranes Plc has decided
the criterion for the measurement period 2023 of the
Performance Share Plans 2021 and 2022
February 1, 2023
The Board of Directors of Konecranes Plc has decided
to establish a new Performance Share Plan
Corporate press releases during full
year 2023
• On December 4, 2023, Konecranes announced that
its material handling equipment and services support
growth of Eldorado Brasil Celulose Logistica in Latin
America's largest port.
• On November 20, 2023, Konecranes announced that it
is to upgrade a reactor hall overhead crane at Sweden's
Oskarshamn Nuclear Power Plant. The order was
booked in Q4 2023.
• On November 15, 2023, Konecranes announced that it
secured a 16-crane order to support environmentally
sustainable scrap metal recycling rebar mill in Arkansas.
The order was won in September 2023.
• On October 31, 2023, Konecranes announced that it
won the 2024 German Sustainability Award for Lifting
and Handling Technology.
• On October 18, 2023, Konecranes announced that a
Norwegian logistics company ordered a Konecranes
Generation 6 mobile harbor crane for a new terminal.
The order was booked in Q3 2023.
• On October 11, 2023, Konecranes announced that
its January-September 2023 interim report will be
published on October 25, 2023.
• On September 20, 2023, Konecranes announced that
its sustainability work was rewarded once again with a
Gold rating from EcoVadis.
• On September 19, 2023, Konecranes announced that
it won an 8 RTG order for a new container terminal in
Colombia in drive for sustainable globalization. The
order was booked in August 2023.
• On September 15, 2023, Konecranes announced
that Port Houston ordered 5 more Konecranes RTGs,
continuing its hybridization drive. The order was booked
in Q3 2023.
• On August 9, 2023, Konecranes announced that it
won an order in Taiwan for 7 hybrid RTGs. The order was
booked in Q3 2023.
• On July 12, 2023, Konecranes announced that its
January-June 2023 half-year financial report will be
published on July 26, 2023.
• On June 30, 2023, Konecranes announced that
CMP ordered 8 straddle carriers and 2 STS cranes
from Konecranes for a new container terminal in
Copenhagen. The order was booked in Q2 2023.
• On June 21, 2023, Konecranes announced that it had
acquired the industrial crane service business of
Norway's Munck Cranes AS to strengthen its Nordic
operations.
• On June 16, 2023, Konecranes announced that it
signed a EUR 350 million ESG-linked revolving credit
facility.
• On June 1, 2023, Konecranes announced that the
Belgian logistics company Zuidnatie ordered a
Konecranes Generation 6 mobile harbor crane to raise
capacity, lower emissions. The order was booked in Q2
2023.
• On May 3, 2023, Konecranes announced that Port of
Virginia made an over EUR 130 million investment in 36
Konecranes Automated Stacking Cranes to improve
capacity and efficiency. The order was booked in Q2
2023.
• On April 14, 2023, Konecranes announced that its
Interim report, January-March 2023 will be published on
April 28, 2023.
• On April 13, 2023, Konecranes announced that it
supports a Cambodian port modernization with its first-
ever mobile harbor crane order in the country. The order
was booked in Q1 2023.
• On April 12, 2023, Konecranes announced changes
in reporting its orders received and alternative
performance measures.
• On April 5, 2023, Konecranes announced that it is to
supply 4 cranes to Siemens Gamesa offshore wind
power plant in Taiwan. The order was booked in Q1 2023.
• On April 4, 2023, Konecranes announced that it
acquires Whiting Corporation's industrial and nuclear
crane and crane service businesses to broaden its
footprint in the North American market.
• On March 31, 2023, Konecranes announced that
Guinea's Winning Logistics bolsters its bauxite handling
fleet with two more Konecranes barge cranes. The
order was booked in Q1 2023.
• On March 30, 2023, Konecranes sent an invitation to its
Capital Markets Day 2023 on May 10, 2023.
• On March 30, 2023, Konecranes announced that its
new Zero4 program will receive EUR 70 million from
Business Finland to unlock industrial productivity.
• On March 29, 2023, Konecranes announced that
Georgia Ports Authority ordered 55 hybrid Konecranes
59
Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
RTGs as part of major capacity increase in the Port of
Savannah. The order was booked in Q1 2023.
• On March 16, 2023, Konecranes announced that it
powers LTC Group's material handling in the Middle East
with a 21-crane and service contract. The order was
booked in Q1 2023.
• On March 15, 2023, Konecranes announced that it
had started to deliver its final cranes to Russia for a
European customer.
• On February 20, 2023, Konecranes announced that it is
to divest MHE-Demag Industrial Products business to
Jebsen & Jessen Group.
• On January 19, 2023, Konecranes announced that its
financial statement release 2022 will be published on
February 2, 2023.
Events after the end of the reporting
period
On January 2, 2024, 6,868 treasury shares were conveyed
without consideration as the reward payment to the key
employee participating in the Konecranes Restricted
Share Unit Plan 2017. After the share delivery, Konecranes
holds a total of 12,788 own shares.
On February 1, 2024, Konecranes announced that the
Board of Directors had decided to establish a new
Performance Share Plan 2024 for Konecranes' key
employees. The Plan has a three-year performance
period from 2024 to 2026. The Plan has three
performance criteria: the cumulative comparable
Earnings per Share (EPS) for the financial years 2024–
2026 with a 55 percent's weighting, the compound
annual growth rate (CAGR) for Sales for the financial
years 2024–2026 with a 35 percent's weighting and the
CO
2
emissions from own operations for the financial
years 2024–2026 with a 10 percent's weighting. The
targets for the three-year performance period have
also been decided by the Board of Directors. The
target group of the Plan consists of approximately 170
Konecranes key employees. Additional information,
including essential terms and conditions of the Plan,
is available in the stock exchange release dated
February 1, 2024.
On February 1, 2024, Konecranes announced that the
Board of Directors had decided the criterion for the
measurement period 2024 of the Performance Share
Plan 2022. The criterion is comparable earnings per
share (EPS). Also, the targets for the measurement
period 2024 were decided by the Board of Directors.
Additional information on the criterion is available in the
stock exchange release dated February 1, 2024.
On February 1, 2024, 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 will begin on July 1, 2024, and will end on
June 30, 2025. The other terms and conditions approved
by the Board have been published in the stock exchange
release dated February 1, 2024.
Demand outlook
Our demand environment within industrial customer
segments has remained good and continues on a
healthy level.
Global container throughput continues on a high level,
and long-term prospects related to global container
handling remain good overall.
Financial guidance
Konecranes expects net sales to remain approximately on
the same level or to increase in 2024 compared to 2023.
Konecranes expects the comparable EBITA margin to
remain approximately on the same level or to improve in
2024 compared to 2023.
Board of Directors' proposal for disposal
of distributable funds
The parent company’s non-restricted equity is EUR
953,922,136.07, of which the net income for the year is
EUR 94,993,467.37. The Group’s non-restricted equity is
EUR 1,516,609,000.
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 fiscal year.
Based on such assessments, the Board of Directors
proposes to the Annual General Meeting to be held on
March 27, 2024, that a dividend of EUR 1.35 be paid on
each share and that the remaining non-restricted equity
is retained in shareholders’ equity. The proposal will be
included in the notice to the Annual General Meeting,
which will be published during February 2024.
A PDF version of Konecranes’ full audited financial
statements, including the report of the Board of Directors,
and corporate governance statement will be available as
pdf documents on Konecranes' website on Wednesday,
February 28, 2024.
Espoo, February 1, 2024
Konecranes Plc
Board of Directors
60
Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Konecranes Group 2019−2023
Business development 2023 2022 2021 2020 2019
Orders received** MEUR 4,161.4 4,227.9 3,446.9 2,994.2 3,431.6
Order book MEUR 3,040.8 2,901.7 2,036.8 1,715.5 1,824.3
Net sales MEUR 3,966.3 3,364.8 3,185.7 3,178.9 3,326.9
of which outside Finland MEUR 3,864.6 3,262.0 3,098.1 3,096.3 3,244.2
Export from Finland MEUR 1,148.5 789.6 955.2 1,075.9 969.6
Personnel on average 16,503 16,563 16,625 17,027 16,104
Personnel on December 31 16,586 16,522 16,573 16,862 16,196
Capital expenditure MEUR 54.4 37.0 49.8 42.8 39.5
as % of Net sales % 1.4% 1.1% 1.6% 1.3% 1.2%
Research and development costs MEUR 51.3 47.7 47.7 48.5 41.1
as % of Net sales % 1.3% 1.4% 1.5% 1.5% 1.2%
Profitability
Net sales MEUR 3,966.3 3,364.8 3,185.7 3,178.9 3,326.9
Comparable EBITA MEUR 450.7 318.4 312.2 260.8 275.1
as % of net sales % 11.4% 9.5% 9.8% 8.2% 8.3%
Comparable operating profit MEUR 419.7 286.6 279.1 224.9 250.4
as % of net sales % 10.6% 8.5% 8.8% 7.1% 7.5%
Operating profit MEUR 402.5 223.2 220.0 173.8 148.7
as % of net sales % 10.1% 6.6% 6.9% 5.5% 4.5%
Income before taxes MEUR 367.6 190.7 192.5 170.3 118.5
as % of net sales % 9.3% 5.7% 6.0% 5.4% 3.6%
Net income
(incl. non-controlling interest)
MEUR 275.6 138.5 147.4 122.9 82.8
as % of net sales % 6.9% 4.1% 4.6% 3.9% 2.5%
Key figures and balance sheet 2023 2022 2021 2020 2019
Equity (incl.
non-controlling interest)
MEUR 1,594.8 1,433.0 1,360.6 1,251.1 1,246.7
Balance sheet MEUR 4,552.4 4,340.6 3,845.8 4,016.5 3,854.2
Return on equity % 18.2 9.9 11.3 9.8 6.5
Return on capital employed % 16.4 9.0 9.3 8.3 6.3
Current ratio 1.4 1.6 1.2 1.4 1.4
Equity to asset ratio % 41.1 37.9 38.9 34.1 35.4
Net working capital** MEUR 353.6 490.2 350.6 227.1 331.2
Interest-bearing net debt MEUR 365.8 688.3 541.6 577.1 655.3
Gearing % 22.9 48.0 39.8 46.1 52.6
Shares in figures
Earnings per share, basic EUR 3.48 1.77 1.86 1.54 1.03
Earnings per share, diluted EUR 3.46 1.77 1.85 1.54 1.03
Equity per share EUR 20.14 18.10 17.08 15.69 15.70
Cash flow per share EUR 7.04 0.84 2.13 5.15 2.19
Dividend per share EUR 1.35* 1.25 1.25 0.88 1.20
Dividend /earnings % 38.8 70.6 67.2 57.1 116.5
Effective dividend yield % 3.3 4.3 3.6 3.1 4.4
Price /earnings 11.7 16.2 18.9 18.7 26.6
Trading low / high*** EUR 28.29/41.38 19.61/38.43 28.80/42.31 14.05/33.08 24.84/38.15
Average share price*** EUR 33.68 27.14 36.41 23.03 29.98
Share price on December 31*** EUR 40.78 28.76 35.16 28.78 27.40
Year-end market capitalization MEUR 3,229.9 2,276.8 2,782.4 2,277.5 2,160.2
Number traded**** (1,000) 70,349 87,275 56,561 121,487 96,906
Stock turnover % 88.8 110.3 71.5 153.6 122.9
Average number of shares
outstanding, basic
(1,000) 79,196 79,152 79,134 79,078 78,836
Average number of shares
outstanding, diluted
(1,000) 79,583 79,508 79,607 79,272 78,836
Number of shares outstanding,
at end of the period
(1,000) 79,202 79,167 79,134 79,134 78,839
* The Board's proposal to the AGM
** History restated
*** Source: Nasdaq Helsinki
**** Source: Intercontinental Exchange
61
Corporate Governance Statement 2023 Remuneration Risk Management Financial Review
FINANCIAL REVIEW 2023
Calculation of key figures
Operating profit (EBIT)
Sales + Other operating income - Materials, supplies and subcontracting -
Personnel cost - Depreciation and impairment - Other operating expenses
Comparable EBITA
Operating profit (EBIT) + purchase price allocation impacts and impairment
+ restructuring costs + transaction costs + other items affecting to
comparability
Comparable Operating profit
Operating proft (EBIT) + restructuring costs + transaction costs + other items
affecting to comparability
Return on equity (%):
Net profit for the period
X 100
Total equity (average during the period)
Return on capital employed
(%):
Income before taxes + interest paid + other financing 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 profit for the shareholders of the parent company
Average number of shares outstanding
Earnings per share, diluted:
Net profit 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 flow per share:
Net cash flow from operating activities
Average number of shares outstanding
Effective dividend yield (%):
Dividend per share
X 100
Share price at the end of financial year
Price per earnings:
Share price at the end of financial year
Earnings per share
Net working capital**:
Non-interest-bearing current assets excluding income tax receivables and other
financial assets (derivatives) – Non-interest-bearing current liabilities excluding
income tax payables and other financial liabilities (derivatives) – long-term 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 profit % and EBITA % are used to measure business profitability
before financial items and taxes. Comparable operating profit and Comparable
EBITA are used to reflect the underlying business performance and to enhance
comparability between financial 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
profitability 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, Interest-bearing
net debt / Equity are used to measure solvency and indebtedness of Konecranes
Group. Some of Konecranes’ loan agreements include a covenant measured by
Gearing percentage. Capital expenditure and Net working capital give additional
information on the cash flows and funding needs of Konecranes Group. Share-
related alternative performance measures enhance the information on equity,
cash flow and dividend attributable to the shareholders and development of
Konecranes' share value in the stock exchange.
**) Konecranes changed the reporting of orders received and net working capital in 2023.
Orders received now also include the sales from the agreement base for the corresponding
period. Net working capital formula was changed to better meet the net working capital
definition in the cash flow statement by excluding tax and other financial assets and liabilities.
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Reconciliation of certain alternative
performance measures
Reconciliation of comparable operating profit and comparable EBITA (MEUR) 2023 2022
Operating profit 402.5 223.2
Restructuring costs
Employment termination costs 21.7 4.8
Impairments of non-current assets 0.2 2.9
Impairments of inventories 1.4 4.8
Other restructuring costs and income 3.1 4.5
Restructuring costs, total 26.4 17.0
Transaction and integration costs 0.0 8.7
Costs related to the impacts of the war in Ukraine -9.2 37.8
Comparable operating profit 419.7 286.6
Purchase price allocation and goodwill impairment impacts 31.0 31.8
Comparable EBITA 450.7 318.4
Reconciliation of interest-bearing net debt
Interest-bearing liabilities 954.9 1,106.2
Loans receivable -2.5 -3.9
Cash and cash equivalents -586.6 -413.9
Interest-bearing net debt 365.8 688.4
Reconciliation of net working capital
Total current assets 2,558.3 2,369.2
- Interest-bearing current assets -2.5 -3.9
- Other financial assets -23.5 -43.7
- Income tax receivables -16.5 -15.0
- Cash and cash equivalents -586.6 -413.9
Non-interest-bearing current assets 1,929.2 1,892.7
Total current liabilities -1,845.9 -1,480.8
- Current interest-bearing liabilities 227.2 49.8
- Other financial liabilities 11.3 15.9
- Income tax payables 51.8 31.7
Non-interest-bearing current liabilities -1,555.6 -1,383.5
Non-current provisions -20.0 -19.0
Net working capital 353.6 490.2
Transaction and integration costs in 2022 relate to the cancelled merger with Cargotec Oyj.
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Consolidated statement of income − IFRS
(1,000,000 EUR) Jan 1–Dec 31 2023 Jan 1–Dec 31 2022
Note:
3,5,6 Sales 3,966.3 3,364.8
Other operating income 9.5 8.1
7 Materials, supplies and subcontracting -1,820.3 -1,510.2
7,8 Personnel cost -1,186.6 -1,091.9
9 Depreciation and impairments -114.9 -124.4
7 Other operating expenses -451.5 -423.2
Operating profit 402.5 223.2
4,16 Share of associates' and joint ventures' result 0.8 0.4
10 Financial income 32.0 26.8
10 Financial expenses -67.7 -59.7
Profit before taxes 367.6 190.7
11 Taxes -92.0 -52.2
PROFIT FOR THE PERIOD 275.6 138.5
Profit for the period attributable to
Shareholders of the parent company 275.6 140.3
Non-controlling interest 0.0 -1.8
12 Earnings per share, basic (EUR) 3.48 1.77
12 Earnings per share, diluted (EUR) 3.46 1.77
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
(1,000,000 EUR) Jan 1–Dec 31 2023 Jan 1–Dec 31 2022
Note:
Profit for the period 275.6 138.5
Items that can be reclassified into profit
or loss
34 Cash flow hedges 12.5 2.0
Exchange differences on translating
foreign operations
-17.0 -3.2
11.3
Income tax relating to items that can be
reclassified into profit or loss
-2.5 -0.4
Items that cannot be reclassified into
profit or loss
28
Re-measurement gains (losses) on
defined benefit plans
-15.6 62.6
11.3
Income tax relating to items that cannot
be reclassified into profit or loss
Other comprehensive income
for the period, net of tax
-18.1 42.3
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD
Total comprehensive income
attributable to:
Shareholders of the parent company 257.5 183.1
Non-controlling interest 0.0 -2.3
The accompanying notes form an integral part of the consolidated financial statements.
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Consolidated balance sheet − IFRS
EQUITY AND LIABILITIES
(1,000,000 EUR) Dec 31, 2023 Dec 31, 2022
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 8.8 -1.1
Translation difference -8.7 8.3
Other reserve 71.2 67.8
Retained earnings 425.8 395.5
Net profit for the period 275.6 140.3
23
Total equity attributable to equity
holders of the parent company
16 Non-controlling interest 0.0 0.1
Total equity 1,594.8 1,433.0
Non-current liabilities
26,27,32 Interest-bearing liabilities 727.7 1,056.4
28 Other long-term liabilities 232.5 217.7
24 Provisions 19.9 19.0
17 Deferred tax liabilities 131.6 133.7
Total non-current liabilities 1,111.7 1,426.8
Current liabilities
26,27,32 Interest-bearing liabilities 227.2 49.8
6 Advance payments received 668.8 564.3
Accounts payable 313.4 306.2
24 Provisions 101.9 93.4
25
Other short-term liabilities (non-interest-
bearing)
32 Other financial liabilities 11.3 15.9
Income tax payables 51.8 31.7
Accrued costs related to delivered
goods and services
25 Accruals 227.7 198.3
Total current liabilities 1,845.9 1,480.8
Total liabilities 2,957.6 2,907.6
TOTAL EQUITY AND LIABILITIES 4,552.4 4,340.6
The accompanying notes form an integral part of the consolidated financial statements.
ASSETS
(1,000,000 EUR) Dec 31, 2023 Dec 31, 2022
Note:
Non-current assets
13 Goodwill 1,038.6 1,019.6
14 Intangible assets 458.1 475.4
15 Property, plant and equipment 359.9 345.9
Construction in progress 15.8 18.1
16
Investments accounted for
using the equity method
Other non-current assets 0.8 0.8
17 Deferred tax assets 113.9 103.8
Total non-current assets 1,994.0 1,971.4
Current assets
18 Inventories 995.9 992.7
19 Accounts receivable 587.5 585.6
20 Other receivables 33.5 36.8
Income tax receivables 16.5 15.0
6 Contract assets 216.9 183.5
32 Other financial assets 23.5 43.7
21 Deferred assets 98.0 98.0
22 Cash and cash equivalents 586.6 413.9
Total current assets 2,558.4 2,369.2
TOTAL ASSETS 4,552.4 4,340.6
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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 flow
hedges
Translation
difference
Other
reserve
Retained
earnings Total
Non-
controlling
interest
Total
equity
Balance at 1 January 2023 30.1 39.3 752.7 -1.1 8.3 67.8 535.8 1,432.9 0.1 1,433.0
Dividends paid to equity holders -99.0 -99.0 -99.0
Equity-settled share-based payments
(note 29)
Acquisitions 0.0 0.0 -0.1 -0.1
Profit for the period 275.6 275.6 275.6
Other comprehensive income 10.0 -17.0 -11.1 -18.1 -18.1
Total comprehensive income 10.0 -17.0 264.5 257.5 0.0 257.5
Balance at 31 December 2023 30.1 39.3 752.7 8.9 -8.7 71.2 701.3 1,594.8 0.0 1,594.8
Balance at 1 January 2022 30.1 39.3 752.7 -2.7 10.9 65.7 455.4 1,351.4 9.2 1,360.6
Dividends paid to equity holders -98.9 -98.9 -0.3 -99.2
Equity-settled share-based payments
(note 29)
Acquisitions -4.8 -4.8 -6.5 -11.3
Profit for the period 140.3 140.3 -1.8 138.5
Other comprehensive income 1.6 -2.6 43.8 42.8 -0.5 42.3
Total comprehensive income 1.6 -2.6 184.1 183.1 -2.3 180.8
Balance at 31 December 2022 30.1 39.3 752.7 -1.1 8.3 67.8 535.8 1,432.9 0.1 1,433.0
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Consolidated cash flow statement − IFRS
(1,000,000 EUR) Jan 1−Dec 31 2023 Jan 1−Dec 31 2022
Note:
Cash flow from operating activities
Profit for the period 275.6 138.5
Adjustments to net profit for the period
Taxes 92.0 52.2
Financial income and expenses 35.7 32.9
Share of associates' and joint ventures'
result
-0.8 -0.4
Depreciation and impairments 114.9 124.4
Profits and losses on sale of fixed assets -0.2 -2.4
Other adjustments 3.5 -0.7
Operating income before change
in net working capital
Change in interest-free current receivables -23.0 -159.9
Change in inventories -25.2 -264.4
Change in interest-free current liabilities 170.1 262.0
Change in net working capital 121.9 -162.3
Cash flow from operations before
financing items and taxes
Interest received 49.5 28.0
Interest paid -77.0 -56.5
Other financial income and expenses 27.3 -33.7
11 Income taxes paid -85.1 -53.3
Financing items and taxes -85.3 -115.5
NET CASH FROM OPERATING ACTIVITIES 557.3 66.7
(1,000,000 EUR) Jan 1−Dec 31 2023 Jan 1−Dec 31 2022
Note:
Cash flow from investing activities
4 Acquisition of Group companies, net of cash -39.0 -1.6
4 Divestment of businesses, net of cash 9.0 0.1
Proceeds from disposal of associated
company
Capital expenditures -52.4 -44.7
Proceeds from sale of property, plant and
equipment and other
NET CASH USED IN INVESTING ACTIVITIES -75.4 -43.6
Cash flow before financing activities 481.9 23.1
Cash flow from financing activities
27.6 Proceeds from borrowings 0.0 600.0
27.6 Repayments of borrowings -160.6 -331.7
27.6 Repayments of lease liability -44.1 -44.1
27.6
Proceeds from (+), payments of (-) current
borrowings
-0.4 -43.7
Change in loans receivable 0.6 -1.2
Acquired non-controlling interest -0.1 -11.0
Dividends paid to equity holders of the
parent company
-99.0 -98.9
Dividends paid to non-controlling interests 0.0 -0.3
NET CASH USED IN FINANCING ACTIVITIES -303.6 69.1
Translation differences in cash -5.6 1.0
CHANGE OF CASH AND CASH EQUIVALENTS 172.7 93.2
Cash and cash equivalents at beginning
of period
22 Cash and cash equivalents at end of period 586.6 413.9
CHANGE OF CASH AND CASH EQUIVALENTS 172.7 93.2
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 financial statements.
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Parent company statement of income − FAS
(1,000 EUR) Jan 1–Dec 31 2023 Jan 1–Dec 31 2022
Note:
2 Depreciation and impairments -119 -184
3 Other operating expenses -7,059 -15,627
Operating profit -7,178 -15,810
4 Financial income and expenses 54,811 81,669
Income before appropriations and taxes 47,633 65,859
5 Appropriations 64,250 39,445
6 Income taxes -16,890 -4,979
Net income 94,993 100,325
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Parent company balance sheet − FAS
(1,000 EUR) Dec 31, 2023 Dec 31, 2022
Note:
ASSETS
NON-CURRENT ASSETS
Tangible assets
7 Machinery and equipment 228 364
228 364
8 Investments
Investments in Group companies 153,040 153,040
Other shares and similar rights of ownership 171 171
153,211 153,211
Total non-current assets 153,439 153,575
CURRENT ASSETS
Long-term receivables
Loans receivable from Group companies 806,958 763,780
806,958 763,780
Short-term receivables
Accounts receivable 11 0
Amounts owed by Group companies
Accounts receivable 5,622 4,397
10 Deferred assets 74,517 103,155
Other receivables 249 3,560
10 Deferred assets 181 374
80,580 111,485
Cash in hand and at banks 3 3
Total current assets 887,542 875,268
TOTAL ASSETS 1,040,981 1,028,843
(1,000 EUR) Dec 31, 2023 Dec 31, 2022
Note:
SHAREHOLDERS’ EQUITY
AND LIABILITIES
11 EQUITY
Share capital 30,073 30,073
Share premium account 39,307 39,307
Paid in capital 776,239 775,176
Retained earnings 82,689 81,367
Net income for the period 94,993 100,325
1,023,301 1,026,248
LIABILITIES
Current liabilities
Accounts payable 2,864 1,163
Liabilities owed to Group companies
Accounts payable 143 144
12 Accruals 37 0
Other short-term liabilities 11,941 71
12 Accruals 2,695 1,216
17,679 2,595
Total liabilities 17,679 2,595
TOTAL SHAREHOLDERS’ EQUITY AND
LIABILITIES
1,040,981 1,028,843
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Parent company cash flow − FAS
(1,000 EUR) Jan 1–Dec 31 2023 Jan 1–Dec 31 2022
Cash flow from operating activities
Operating income -7,178 -15,810
Adjustments to operating profit
Depreciation and impairments 119 184
Group contributions from subsidiaries 39,380 52,340
Operating income before changes in net working capital 32,321 36,713
Change in interest-free short-term receivables 52,365 11,977
Change in interest-free short-term liabilities 3,193 -18,060
Change in net working capital 55,558 -6,084
Cash flow from operations before financing items and taxes 87,879 30,630
Interest received 27,097 5,352
Interest paid 0 -4,371
Other financial income and expenses 7 -1,969
Income taxes paid -1,581 -26
Financing items and taxes 25,522 -1,014
NET CASH FROM OPERATING ACTIVITIES 113,401 29,616
(1,000 EUR) Jan 1–Dec 31 2023 Jan 1–Dec 31 2022
Cash flow from investing activities
Investments in other shares 0 -1
Capital expenditure and advance payments to tangible assets 17 0
Dividends received 27,700 40,000
NET CASH USED IN INVESTING ACTIVITIES 27,717 39,999
Cash flow before financing activities 141,118 69,615
Cash flow from financing activities
Proceeds from share based payments and share issues 1,063 585
Repayments of long-term receivables -43,178 278,560
Repayments of long-term liabilities 0 -249,841
Dividends paid -99,003 -98,918
NET CASH USED IN FINANCING ACTIVITIES -141,118 -69,614
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 financial statements of the company have been
prepared in euro and in accordance with accounting
principles generally accepted in Finland.
STATEMENT OF INCOME
(1,000,000 EUR)
2. Depreciation and impairments
2023 2022
Machinery and equipment 0.1 0.2
Total 0.1 0.2
2023 2022
Wages and salaries 4.8 3.2
Pension costs 0.5 0.5
Other personnel expenses 0.1 0.1
Other operating expenses 1.5 0.4
Total 6.8 4.2
2023 2022
Remuneration to Board 1.0 0.7
Other wages and salaries 3.8 2.5
Total 4.8 3.2
The average number of personnel 5 4
Auditors fees
Audit 0.6 0.7
Other services 0.1 0.1
Total 0.6 0.8
2023 2022
Financial income from long-term
investments:
Dividend income from Group companies 27.7 80.0
Dividend income total 27.7 80.0
Interest income from long-term
receivables:
From Group companies 27.1 5.2
Interest income from long-term
receivables total
27.1 5.2
Financial income from long-term
investments total
54.8 85.2
Interest and other financial income 0.0 0.0
Interest and other financial income
total
0.0 0.0
Interest expenses and other financial
expenses:
Other financial expenses 0.0 3.5
Interest expenses and other financial
expenses total
0.0 3.5
Financial income and expenses total 54.8 81.7
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
2023 2022
Difference between planned and
untaxed depreciations
0.0 0.1
Group contributions received from
subsidiaries
64.3 39.4
Total 64.3 39.4
2023 2022
Taxes on appropriations 12.9 7.9
Taxes on ordinary operations 4.0 -2.9
Taxes from previous years 0.0 0.0
Total 16.9 5.0
2023 2022
Acquisition costs as of January 1 1.2 1.2
Decrease 0.0 0.0
Acquisition costs as of December 31 1.2 1.2
Accumulated depreciation January 1 -0.9 -0.7
Accumulated depreciation -0.1 -0.2
Total as of December 31 0.2 0.4
The values of fixed assets are based on original acquisition
values. Depreciation periods, which are based on
estimated financial 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
13. Contingent liabilities
and pledged assets
14. Nominal and fair values of derivative
financial instruments
2023 2022
Acquisition costs as of January 1 153.2 153.2
Total as of December 31 153.2 153.2
2023 2022
Share capital as of January 1 30.1 30.1
Share capital as of December 31 30.1 30.1
Share premium account January 1 39.3 39.3
Share premium account as of
December 31
39.3 39.3
Paid in capital as of January 1 775.2 774.6
Increase 1.1 0.6
Paid in capital as of December 31 776.2 775.2
Retained earnings as of January 1 181.7 180.3
Dividend paid -99.0 -98.9
Retained earnings as of December 31 82.7 81.4
Net income for the period 95.0 100.3
Shareholders' equity as of
December 31
1,023.3 1,026.2
Distributable equity
Paid in capital as of December 31 776.2 775.2
Retained earnings as of December 31 82.7 81.4
Net income for the period 95.0 100.3
Total 953.9 956.9
2023 2022
Number of shares as of January 1 55,307 87,447
Decrease -35,651 -32,140
Number of shares as of December 31 19,656 55,307
2023 2022
Group contributions 64.3 39.4
Income taxes 0.0 3.5
Payments which will be realized during
the next financial year
6.6 61.9
Interest 4.1 2.4
Total 74.9 107.1
2023 2022
For obligations of subsidiaries
Group guarantees 1,121.4 1,238.0
Leasing liabilities
Next year 0.1 0.5
Later on 0.2 0.1
Total 0.3 0.6
2023 2023 2022 2022
Fair
value
Nominal
value
Fair
value
Nominal
value
Foreign ex-
change forward
contracts
0.0 1.9 0.0 1.6
2023 2022
Total by category
Guarantees 1,121.4 1,238.0
Other liabilities 0.3 0.6
Total 1,121.7 1,238.6
2023 2022
Domicile
Carrying
amount
Carrying
amount
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
2023 2022
East Office of Finnish Industries Oy 0.1 0.1
Dimecc Oy 0.1 0.1
China Office of Finnish Industries 0.0 0.0
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 financial instruments are recognized
according to KPL 5:2a at fair value in the parent company
financial statements and the company does not apply
hedge accounting for these derivatives.
12. Accruals
2023 2022
Wages, salaries and other personnel
expenses
2.6 1.0
Other items 0.1 0.2
Total 2.7 1.2
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Board of Directors’ proposal to the Annual General Meeting
The parent company's non-restricted equity is EUR 953,922,136.07 of which the net income for the year is
EUR 94,993,467.37.
The Group's non-restricted equity is EUR 1,516,609,000.
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 financial year-end.
Based on such assessments, the Board of Directors proposes to the Annual General Meeting that a dividend of EUR 1.35 will
be paid on each share and that the remaining non-restricted equity is retained in shareholders’ equity.
Espoo, February 1, 2024
Christoph Vitzthum
Chair of the Board
Pauli Anttila
Board member
Niko Mokkila
Board member
Sami Piittisjärvi
Board member
Helene Svahn
Board member
Anders Svensson
CEO
Pasi Laine
Vice chair of the Board
Ulf Liljedahl
Board member
Gun Nilsson
Board member
Päivi Rekonen
Board member
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Auditor’s report
(Translation of the Finnish original)
To the Annual General Meeting of Konecranes Plc
Report on the Audit of Financial Statements
Opinion
We have audited the financial statements of Konecranes
Plc (business identity code 0942718-2) for the year ended
December 31, 2023. The financial statements comprise
the consolidated balance sheet, statement of income,
statement of comprehensive income, statement of
changes in equity, statement of cash flows and notes,
including material accounting policy information, as
well as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS
Accounting Standards as adopted by the EU.
• the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial 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 fulfilled 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
financial statements and note 3 to the parent company
financial statements.
We believe that the audit evidence we have obtained
is sufficient 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 significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial
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
financial 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 financial 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 significant accounting poli-
cies, note 5, note 6 and note 24.
In accordance with its accounting principles,
Konecranes applies the percentage of
completion (PoC) method (performance
obligations satisfied 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 significant
management assumptions, estimates and
projections, principally relating to future material,
labor and project-related overhead costs and
the estimated stage of completion. In year 2023,
approximately 12% percent of the sales of EUR 4.0
billion were recognized under the PoC method.
Revenue recognition of long-term contracts
is a key audit matter and a significant risk of
misstatement as defined 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 a 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 significant judgments made by
management based on an examination of
the associated project documentation and
discussion on the status of projects under
construction with finance 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 specific 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 significant 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 significant
accounting policies and note 5.
According to the Group’s accounting policies
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. 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
significant risk of material misstatement as defined
by EU Regulation No 537/2014, point (c) of Article
10(2) due to the significant 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 significant accounting
policies and note 13.
The value of goodwill at the date of the financial
statements amounted to 1.0 billion euros
representing 23% of total assets and 65% of
equity (2022:1.0 billion euros, 23% of the total
assets and 71% 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 significantly 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 fixed 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 specifically 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 financial statements about the assumptions
to which the outcome of the impairment tests
were 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 significance of the goodwill to the
balance sheet total.
Valuation of goodwill is a significant risk of
misstatement as defined 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 financial
statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the EU,
and of financial statements that give a true and fair view in
accordance with the laws and regulations governing the
preparation of financial 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 financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial 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 financial 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 financial 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
influence the economic decisions of users taken on the
basis of the financial 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 financial statements, whether due to fraud
or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient 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 significant 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 financial 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.
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FINANCIAL REVIEW 2023
• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events so
that the financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
or business activities within the group to express an
opinion on the consolidated financial 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 significant audit findings, including
any significant deficiencies 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 significance in the audit of the financial 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 benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting on March 8, 2006, and our appointment
represents a total period of uninterrupted engagement
of 18 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 annual
report publication but does not include the financial
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 annual report is
expected to be made available to us after that date.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information
identified above and, in doing so, consider whether
the other information is materially inconsistent with the
financial 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 financial
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 financial 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 financial period audited by us.
Helsinki, February 1, 2024
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 Finnish original)
To the Board of Directors of Konecranes Plc
We have performed a reasonable assurance engagement on
the iXBRL tagging of the consolidated financial statements
included in the digital files 549300EF0CDEQZBMA096-
2023-12-31-fi.zip of Konecranes Oyj (business identity
code: 0950895-1) for the financial year January 1–
December 31, 2023, to ensure that the financial statements
are marked/tagged with iXBRL 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 financial statements (ESEF financial
statements) that comply with the ESESF RTS. This
responsibility includes:
• Preparation of ESEF-financial statements in
accordance with Article 3 of ESEF RTS
• Tagging the primary financial statements, notes to the
financial statements and the entity identifier information
in the consolidated financial statements included
within the ESEF-financial statements by using the iXBRL
mark-ups in accordance with Article 4 of ESEF RTS
• Ensuring consistency between ESEF financial
statements and audited financial 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 financial
statements in accordance with the requirements of ESEF RTS.
Auditor’s Independence and Quality Management
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 fulfilled our other ethical responsibilities in
accordance with these requirements.
The firm applies International Standard on Quality
Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management
including policies or 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 financial 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 financial statements
in the consolidated financial statements complies in all
material respects with Article 4 of the ESEF RTS
• whether the tagging of the notes to the financial
statements and the entity identifier information in
the consolidated financial statements complies in all
material respects with Article 4 of the ESEF RTS
• whether the ESEF-financial statements are consistent
with the audited financial 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 sets out in the ESEF RTS, whether due to
fraud or error.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
statement.
Opinion
In our opinion the tagging of the primary financial
statements, notes to the financial statements and the
entity identifier information in the consolidated financial
statements included in the ESEF financial statements
549300EF0CDEQZBMA096-2023-12-31-fi.zip of
Konecranes Oyj for the year ended January 1–December
31, 2023, complies in all material respects with the
requirements of ESEF RTS.
Our audit opinion on the consolidated financial statements
of Konecranes Plc for the year ended January 1–December
31, 2023, is included in our Independent Auditor’s
Report [dated February 1, 2024]. In this report, we do not
express an audit opinion or any other assurance on the
consolidated financial statements.
Helsinki February 28, 2024
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 Solidium Oy 8,793,123 11.1%
2 Ilmarinen Mutual Pension Insurance Company 2,407,049 3.0%
3 Gustavson Stig and family* 2,366,157 3.0%
4 Varma Mutual Pension Insurance Company 2,085,293 2.6%
5 Elo Mutual Pension Insurance Company 1,165,000 1.5%
6 Holding Manutas Oy 1,040,000 1.3%
7 Evli Finnish Small Cap Fund 751,153 0.9%
8 Nordea Funds 744,851 0.9%
9 Säästöpankki Funds 738,387 0.9%
10 The State Pension Fund 730,000 0.9%
Ten largest registered shareholders' total ownership 20,821,013 26.3%
Nominee registered shares 36,308,488 45.8%
Other shareholders 22,072,749 27.9%
Shares held by Konecranes Plc 19,656 0.0%
Total 79,221,906 100.0%
Shares
Number of
shareholders
% of
shareholders
Number of
shares
and votes
% of shares
and votes
1−100 31,427 59.2% 1,274,356 1.6%
101−1,000 19,058 35.9% 6,283,664 7.9%
1,001−10,000 2,362 4.5% 6,115,009 7.7%
10,001−100,000 156 0.3% 4,453,107 5.6%
100,001−1,000,000 22 0.0% 7,227,039 9.1%
1,000,001− 7 0.0% 17,560,243 22.2%
Registered shareholders total 53,032 100.0% 42,913,418 54.2%
Nominee registered shares 11 0.0% 36,308,488 45.8%
Total 53,043 100.0% 79,221,906 100.0%
Change in
shareholding in
2023
Number of
shares owned
% of shares
and votes
Board of Directors -343 34,288 0.0%
Group Executive Board -6,759 156,361 0.2%
Total -7,102 190,649 0.2%
% of shares
and votes
Public sector organizations 19.6%
Households 19.5%
Financial and insurance institutions 5.6%
Non-profit organizations 5.4%
Private companies 3.2%
Foreigners 0.9%
Nominee registered shares 45.8%
Total 100.0%
According to the register of Konecranes Plc's shareholders kept by Euroclear Finland Oy,
there were 53,043 (2022: 57,448) shareholders at the end of 2023.
Largest shareholders according to the share register on December 31, 2023
Shares owned by the members of the Board and of Directors and of the Group Executive
Board on December 31, 2023
Breakdown of share ownership by number of shares owned
on December 31, 2023
Breakdown of share ownership by shareholder category on December 31, 2023
* 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 Oy, December 31, 2023.
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