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 - JPMorgan Chase & Co, Research Division - Analyst
: I just have 2. On the modernization side, I'm interested in a couple of comments you made, I think, to the very first question. Just are you seeing a
change in terms of the types of inquiries that you're having on the modernization side, with it being that customers, obviously, thinking about
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JULY 20, 2021 / 12:45PM, KNEBV.HE - Q2 2021 Kone Oyj Earnings Call
repurposing buildings or potentially seeing an acceleration in some of these areas, which we kind of expected to maybe be modernized a bit more
quickly than they ultimately have been? Just interested to see if you're seeing a sort of a change in some of the incoming, I guess, requests and
inquiries from customers there.
Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst
: And maybe just a quick one. It's probably for Ilkka, and apologies if I missed this. But have you -- or can you provide us with a split of the EUR 175
million cost headwind between the first half and the second half? I'm just interested in terms of how that sales is through the year, obviously, to
help us a little bit with our models for the second half.
Question: Joel Adam Spungin - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I've got a couple. Maybe just to start, could you maybe talk a little bit about your sort of thinking around the long-term potential for the market in
China, particularly if you look into 2022? Obviously, we've come off the back of a couple of good years. This year has probably been better than
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JULY 20, 2021 / 12:45PM, KNEBV.HE - Q2 2021 Kone Oyj Earnings Call
expected. Do you think that momentum can continue much longer? Or are we inevitably going to see some sort of normalization in market growth
rates?
Question: Joel Adam Spungin - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. That's helpful. And then just -- maybe just some clarifications. Just in terms of your order intake number, the 17% that you recorded for the
second quarter. I mean, obviously, you said within -- obviously, China, it grew significantly, the EMEA was up slightly.
What I'm curious about is Americas, which is obviously the sort of smallest profit contributor of the 3 regions. But it must have grown an extremely
fast rate to sort of reconcile to that 17% order intake growth overall. Can you maybe just give a bit more clarification on what happened there?
Question: Joel Adam Spungin - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Right. Okay. Okay. And then maybe just a very quick one, just in terms of your comments on pricing. And you obviously mentioned that the pricing
environment improved in the quarter. I'm just curious to understand maybe a little bit more about what maybe lies behind that. What explains the
improvement in the pricing environment in the recent months?
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JULY 20, 2021 / 12:45PM, KNEBV.HE - Q2 2021 Kone Oyj Earnings Call
Question: Nicholas Housden - RBC Capital Markets, Research Division - Analyst
: Yes. My first one, it's a bit of a broader question about the Chinese market again. In the past, you've spoken about consolidation among Chinese
property developers being a catalyst for KONE, and indeed, rather established OEMs to gain market share. Can you just give us an update on how
this process is moving, and whether it's accelerated or stalled in the past 18 months or so? And just what the situation is there?
Question: Nicholas Housden - RBC Capital Markets, Research Division - Analyst
: That's helpful. Just one more quick one. I mean if you can share on this call about, I mean, having a very quick order-to-delivery time again in China.
I'm just wondering how that compares with other OEMs. Is it a big differentiator between KONE and other major OEMs? Or is it more an advantage
that all of the major companies have versus some of the smaller, more local players?
Question: Tomi Markus Railo - DNB Markets, Research Division - Analyst
: This is Tomi from DNB. Can you perhaps comment the growth rates in terms of Chinese maintenance and modernization in the second quarter for
you?
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