Henrik Ehrnrooth

KONE has an installed base of over 1.4 million elevators and escalators worldwide, which generates predictable, recurring maintenance and modernization revenue accounting for roughly half of total sales. Every elevator installed today creates a maintenance contract that can last decades. KONE's business is driven by urbanization — as the world's population increasingly concentrates in cities and buildings grow taller, demand for vertical transportation increases structurally. China has historically been KONE's largest market for new equipment, though the Chinese property downturn has significantly impacted new orders in recent years. Ehrnrooth has responded by accelerating growth in maintenance, modernization, and services (converting the massive Chinese installed base into recurring revenue) and expanding in India, Southeast Asia, and the Middle East. Ehrnrooth's management of the China new equipment downturn, growth in maintenance conversion rates, and the transition toward digital and connected elevator services (using IoT for predictive maintenance) are the primary drivers of KONE's stock.