The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: It's Andrew Wilson from JPMorgan. Just a couple of probably follow-ups on some comments you made on the Q1, actually. Clearly, cash doesn't
seem like it's been any sort of issue in the Q1 in terms of collection. And similarly on the supply chain, it feels like obviously a little bit of extra cost,
but no, I guess, bigger fundamental problem. Are we safe to assume we can sort of hope for the same in Q2 and the balance of the year. So basically
no major supply chain concerns at this stage and no major concerns in terms of cash collection.
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APRIL 22, 2020 / 12:45PM, KNEBV.HE - Q1 2020 Kone Oyj Earnings Call
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: That's helpful. Can I sort of ask a question just on sort of relationship between new equipment and modernization, just trying to think about the
-- almost -- I guess my question is, whatever I assume for new equipment declines in the Q2 as a starting point, should I be assuming that modernization
is weaker still, just on the basis of perhaps it's easier to defer for some customers, it's perhaps not as immediate payback versus obviously getting
a sort of piece of equipment in a new building up and running. Just trying to sort of get a feel for how we should be thinking about that. Any
comment is helpful.
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: That's very helpful. And maybe I could squeeze just one final one. And just you made a number of comments around investment in R&D and
maintaining the sort of levels of spend even when things are difficult. I'm just trying to get a sense of when you talk about maintaining the spend.
Would we expect R&D to be a higher cost in absolute terms year-on-year? Or would we rather expect it to track sales? Just trying to get a sense of
that.
Question: Andrew J. Wilson - JP Morgan Chase & Co, Research Division - Analyst
: Okay. So it's sort of maintained in absolute levels is a reasonable base case?
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APRIL 22, 2020 / 12:45PM, KNEBV.HE - Q1 2020 Kone Oyj Earnings Call
Question: Wasi Rizvi - RBC Capital Markets, Research Division - Analyst
: It's Wasi Rizvi from RBC Capital Markets. Just a couple left for me. On the maintenance market share commentary you gave on the 2019 market
data, did I hear you right that you think you're the only major player to be gaining share? And then just in terms of what's driving your share gains
in that market, could you help us understand what -- is it simply a function of the new equipment you've sold in the past years? Or is there another
factor we need to be aware of, which is helping you gain maintenance share?
And then the second question was on maintenance growth for this year. Can you talk us through the components of that market growth? And I
guess, you should have a reasonable handle on how the units, the market tends to grow by, but then -- there's that, and then there's also the pricing.
So can you talk us the range of outcomes you think is possible for pricing and maintenance for you at a group level for this year?
Question: Wasi Rizvi - RBC Capital Markets, Research Division - Analyst
: Okay. And just to follow-up, in terms of this year, what do you think the range of outcomes is on pricing for your maintenance revenues? Is it going
to be a positive contributor, a negative contributor? What kind of range are we talking it could be, given what's going on?
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APRIL 22, 2020 / 12:45PM, KNEBV.HE - Q1 2020 Kone Oyj Earnings Call
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