Kone Oyj Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew James Wilson - JPMorgan Chase & Co, Research Division - Analyst : I wanted to ask you around the comment that you make, Henrik, around policy being obviously important for the second half, which is clear, I guess. I wonder if you could just help with being a bit more specific in terms of exactly what you think is important there. Is it policy from a broader stimulus perspective, which would seem to help the consumer confidence problem? Or is it more specific to the property market? I ask because we're seeing a lot of news flow around property-specific stimulus or easing or removal of restrictions. And sort of as you allude to, as yet we haven't really seen that make enough of a difference. So I don't know if you could just help us sort of think about what we need to be looking for and thinking about.

Question: Andrew James Wilson - JPMorgan Chase & Co, Research Division - Analyst : And maybe a follow-up. I guess as a follow-up to a couple of the margin questions and some of the observations that Klas made with regard to the second half. I guess looking further forward, then appreciating that you're not going to comment too much on this, but if you could help us at least REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 20, 2023 / 12:45PM, KNEBV.HE - Q2 2023 Kone Oyj Earnings Call frame the debate a little bit. It would seem to me that with the margins in the orders you're taking at the moment being ahead of the margins in the income statement, with the mix potentially shifting, given maintenance and modernization strength, given the operational improvements that you're making in the savings you've guided to on that, plus a little bit more tailwind from [malmat], it would seem to me that even with the current, obviously, relatively challenged new equipment market, the 2024 margin has decent potential to be decently ahead of the 2023 number. Now even if you're not going to say yes or no to that, can you at least help me if there's anything that I'm missing in terms of thinking about that margin bridge?