CEO’s Review

A strong first quarter at the core of the energy transition – Considerable improvement in profitability

Our company had a strong first quarter in 2021. Interest in zero-emission energy solutions and in our broad-based operations has been great, and the market outlook is very positive. Our order backlog increased by around 9% during the first three months of the year. Our profitability also developed very favourably, and our EBITDA was EUR 1.4 million.

Our company had a strong first quarter in 2021. Interest in zero-emission energy solutions and in our broad-based operations has been great, and the market outlook is very positive. Our order backlog was EUR 319 million at the end of the first quarter, as opposed to EUR 292 million at the end of 2020. Our order backlog increased by around 9% during the first three months of the year.

In our day-to-day operations, we can see that the energy transition is already a reality, and interest in environmentally friendly solutions is growing all the time in Finland and abroad. We are strongly involved in creating a zero-emission society at the core of the energy transition. Wind farm projects and investments in electric car charging infrastructure are concrete examples of the progress of the energy transition and our role as a reliable enabler of change.

The need for clean electricity continues to grow rapidly. Considerable investments are being made in energy transmission, substations and energy storage. We have a strong foothold in these projects.

In addition, increasing attention is being paid to energy efficiency. Our advanced digital solutions for industrial needs, as well as our expert maintenance services, have made us a preferred long-term partner in these and other operations.

The first three months of the year are traditionally challenging for us because of weather conditions. This year, however, our firstquarter turnover increased to EUR 52.4 million. Our profitability also developed very favourably, and our EBITDA was EUR 1.4 million. Our adjusted EBITDA increased to EUR 1.7 million in the review period. All of this confirms that we have made many right choices in our operations.

Enersense and Empower merged last summer, and we continued their integration and the implementation of the company’s new strategy in the first quarter of 2021. This work has progressed as planned, and will continue within many different projects throughout the year.

In line with our strategy, our goal is to increase the proportion of low-emission and zero-emission projects of our turnover to 75% by 2025 (around 50% in 2020). We are already strongly involved in wind, solar and nuclear power projects, and we also aim to join new energy technology projects. We are actively mapping out hydrogen projects and, for example, we are involved in the European Clean Hydrogen Alliance, which promotes industrial transition to the production and use of clean hydrogen.

Enersense International Plc Business review January–March 2021 4 With regard to achieving our growth and development goals, we gained considerable credibility and continuity through a new owner in the spring. Enersense raised EUR 15 million through a directed share issue and secured Nidoco AB as a significant long-term shareholder, which will enable us to develop our operations even better in the future.

On 4 May 2021, we announced that we had completed negotiations on the refinancing of our operations. We are pleased to have new partners to support the development and growth of our operations.

As announced earlier, we have also continued to prepare for the transfer of our company to the main list of the Nasdaq Helsinki. These preparations have progressed well and are on schedule.

Jussi Holopainen
CEO OF ENERSENSE