Strategy On 19 June 2024, Enersense announced that it would focus on its core businesses in project and service operations for the green energy transition in its Power, Industry and Connectivity segments. With the revised direction, Enersense started in late 2024 to update its core business strategy to create sustainable growth. The company will provide more details on its new strategy by summer 2025. At the end of the year 2024, Enersense started a Value uplift -program to improve efficiency and support profitable growth. The program will continue throughout the year 2025, and the company is planning to gradually renew its procurement performance, evaluate its fixed costs and resources to support the implementation of the strategy as well as improve its commercial management. With the program, Enersense is targeting an annual profit improvement of around EUR 5 million from the second half of 2026 onwards, and is estimating that the positive impact on profit will be seen gradually from 2026 onwards. The cost of the Value uplift program is treated as an item affecting comparability. Enersense promotes the sustainability of its business through three themes: sustainable work, sustainable business and the environment. Enersense is committed to the Science Based Targets initiative (SBTi) and will set science-based targets to reduce greenhouse gas emissions by 2025. In 2024, key results of responsibility work included a 33% reduction in greenhouse gas emissions from the company’s own operations (Scope 1 and 2) and a 34% reduction in the frequency of lost time injuries from the year 2023. Enersense’s Sustainability Statement will be released as part of the Report of the Board of Directors on 26 March 2025. Strategic assessments As part of the strategic alignment defined in the summer 2024, Enersense launched a strategic assessment of three businesses: wind and solar power project development, zero-emission transport solutions and the Marine and Offshore Unit. On 19 December 2024, Enersense announced the sale of its wind and solar project development business to Fortum, which completed on 26 February 2025. With the completion of the transaction, Fortum paid Enersense a fixed debt-free cash price of EUR 9.25 million. At the same time, Enersense recorded a profit of approximately EUR 19 million, and its equity ratio increased by approximately 10 percentage points. The transaction also includes Earn-Out up to EUR 74 million, which is based on the progress of the wind and solar power development projects covered by the Transaction, and any payment will be subject to individual projects reaching a final investment decision made by Fortum. Any payment related to the Earn-Out would be paid in instalments on a per project basis. No Earn-Out will be paid for any projects that do not reach the final investment decision in 15 years from the closing date. Enersense estimates a probability-weighted EarnOut of EUR 33 million. Further, Enersense estimates that the potential Earn-Out cash flow of the Transaction could be generated earliest starting from 2027. After the review period, on 28 February 2025, Enersense announced that it had completed a strategic assessment of its business focused on zero-emission transport solutions. The company is ramping down the business under assessment and estimates to record a write-down of approximately EUR 2–3 million related to the ramp-down in the first quarter of 2025. In its Marine and Offshore Unit, Enersense has unique expertise in offshore wind power and other arctic marine industries, e.g. related to constructing icebreaker vessels. These sectors are evolving rapidly, so the company will continue the strategic assessment to ensure the best possible outcome. Due to the long production cycles in the marine industry and the uncertainty about the duration of the upcoming quieter period, Enersense revised the value of the Marine and Offshore Unit downwards by EUR 5 million in 2024. Operating environment The energy and the green transition are global phenomena increasingly driven by stricter EU-level and national climate targets, the legislation and steering mechanisms related to the targets and the opportunities offered by clean, but at the same time competitive technologies. As a result of the recent changes in the geopolitical situation, much attention has also been paid to matters related to energy self-sufficiency, which may also promote the energy transition. The climate targets and the related political and financial instruments steer investments towards energy systems based on low-emission and renewable energy. The energy transition is also driven by competitive energy production technologies, especially wind and solar power, which enable a cost-effective transition towards low emissions. The climate targets and renewable and local energy are also linked to energy self-sufficiency, and renewable energy sources can be used to end or reduce dependence on imported fossil fuels. Energy and electricity production will be increasingly based on renewable energy sources, which means local and decentralised but also weather-dependent production. A sustainable and effective energy system calls for investments in energy production plants and transmission grids, as well as short- and long-term energy storage systems. Electricity production based on renewable energy enables the energy transition in other sectors through electrification and green hydrogen. The electrification of transport calls for charging infrastructure, emissions from industrial processes are cut through electrification or by using clean hydrogen instead of fossil fuels, and various heat pump solutions are used for heating buildings. In addition, industrial processes are being made more energy- and resource-efficient. Energy systems and various end users – industry, transport and heating – will be even more closely linked together. The effective and reliable transfer of data between different sectors plays a key role in controlling, optimising and developing systems smartly and effectively. The up-to-date and reliable data transfer infrastructure of society is a key enabler of the energy transition, and its significance is highlighted during crises. The ongoing transition is creating significant business opportunities for companies in different parts of the entire energy sector’s value chain, and the development will be accelerated by the level of ambition and goals, particularly in the EU and Finland. In the short term, uncertainty and risks may be caused by the general economic situation, inflation, geopolitical instability and their impact on the energy markets and systems. Risks and opportunities related to climate change Enersense’s business operations are closely linked to the implementation of the energy transition. The company’s core operations include design, installation, construction, operation and maintenance services in the fields of energy, maritime transport, industry and telecommunications infrastructure. Opportunities related to the energy transition: Increased demand for green energy solutions creates significant business opportunities for Enersense, as the implementation of the energy transition increases investments related to clean technology and a sustainable energy system (wind power, solar power, battery storage, green hydrogen, electricity transmission, carbon capture and electrification solutions for processes, transport and heating, as well as energy efficiency investments). Weather fluctuations increase with climate change, creating pressure to strengthen critical infrastructure such as local energy production and energy transmission, as well as storage Risks related to the energy transition: On the other hand, the company must also be prepared for negative changes brought about by climate change. Changes in environmental, climate and energy regulations and legislation may cause uncertainty in customers’ investment behaviour and decision-making. Stricter regulations may also increase costs through increased reporting requirements, for example, and some customers’ business operations may decrease if the requirements related to regulations cannot be met. The purpose of climate regulations is to steer capital towards sustainable investments. This may reduce investments in companies that are not leaders in environmental, climate and energy matters. Different requirements in different countries (e.g. EU vs. non-EU) have also been identified as a risk, particularly in terms of international procurement chains.
