Near-term risks Front pageNear-term risksEnersense is exposed to various strategic, operational, financial and other risks that may have a negative impact on Enersense’s operations. Enersense seeks to protect itself against the risks through, for example, a continuous and systematic assessment process and by taking risk factors into account comprehensively when deciding on business projects or investments that are significant for the Group. Strategic risks Increased geopolitical tensions are maintaining uncertainty about the development of the global economy. Shifts in international politics may change the market environment and clean energy transition projects, for example, may slow down. The implementation of Enersense’s strategy requires changes in the company’s ways of working and the development of new capabilities. The company may fail to manage the change or implement its key strategic development projects due to insufficient resources or inadequate management or monitoring. Strategy failure can also lead to reduced cash flow and insufficient funding. The development of digital solutions and services and the streamlining of operations are an integral part of the company’s strategy. Failure in these developments or wrong choices in adopting new operating methods and tools may slow down the business and its development or reduce the relative efficiency and competitiveness of operations. In addition to market demand levels, the competitiveness of Enersense’s offering is a key factor for growth and profitability. The competitive situation in Enersense’s business areas and the offering of potential new competitors may put pressure on sales prices and profitability. Operational risks Enersense’s customers are typically energy production or transmission companies, owners of industrial projects, developers, main contractors or suppliers with whom Enersense usually implements a project, service or framework agreement. The company often enters into project-specific contracts, which involve uncertainty in terms of successful competitive bidding. This makes it difficult to make reliable estimates of the company’s business performance and financial position over a period of time longer than the order book. Correspondingly, framework agreements do not guarantee that the company is successful in the tendering for individual deliveries falling within the scope of the framework agreement. The profitability of large fixedprice projects requires accurate pricing estimates and project management. In addition, changes in regulatory requirements and restrictions, as well as the associated uncertainty, may have an impact on profitability. Enersense serves its customers throughout the lifecycle of their assets with services such as design, construction, operation, maintenance and modernisation. For long-term service contracts, operational efficiency is the key; it has a significant impact on the profitability of contracts. General economic uncertainty may reduce customers’ willingness to invest and can affect projects already in Enersense’s order book, which may be subject to delays or interruptions. It may also lead to a deterioration in the financial position of Enersense’s customers or suppliers, which, if realised, could result in losses and other negative consequences for the company. Enersense has some large key customers whose purchasing behaviour has a significant impact on the performance of the business. If one of these key customers were to switch their purchases from Enersense to its competitors, or drastically changed their operating model, or if a project of importance to the company were to be terminated, interrupted or scaled down unexpectedly, the company’s ability to find a replacement customer volume would be limited in the short term. Challenges in availability of skilled workforce, if realised, may impact Enersense’s operations. Unless Enersense is able to recruit, train and engage qualified personnel, it may be unable to compete effectively and fully implement its strategy. Financial and other risks Guarantees Enersense’s customers usually require guarantees for work, deliveries and warranty periods, for example. Granting such guarantees to a customer is often a prerequisite for Enersense to be able to bid for a new project. However, the guarantee arrangements do not oblige the issuer; the issuer decides on each guarantee individually. For example, rapid structural changes in Enersense’s order book or a weakening of its financial position may lead to occasional delays in the availability of guarantees. Financing Uncertainty about economic development may negatively affect the investment environment, which may lead to a weakening of customers’ financial position and a decline in demand for Enersense’s services. The change in the investment environment may also have a negative impact on Enersense’s financial position and certain items on its balance sheet. Enersense Group’s financing package includes covenant terms concerning the Group’s equity ratio, the ratio of interest-bearing net debt to EBITDA, minimum liquidity and net gearing. A breach of the covenants may entitle the financier to demand accelerated or immediate repayment of the loans and simultaneously cancel any amounts committed but not drawn by the financier and any amounts under the guarantee arrangements. Adequate financing is a key factor in the continuity of Enersense’s operations. Partners Enersense collaborates with subcontractors and other partners during various phases of its projects and services. Typically, outsourcing includes material deliveries and subcontracting (e.g. civil engineering) as well as resources and equipment that Enersense does not or cannot offer. Enersense may fail in evaluating and choosing subcontractors or may be required to accept partially unfavourable contract terms to ensure the acquisition of such services. Subcontractors may not be able to deliver on time or to the level, cost structure or quality expected by Enersense, or may otherwise perform inadequately or in violation of laws or regulations. Enersense’s subcontractors may also cease to provide services to Enersense or raise their prices significantly. Disruptions affecting Enersense, such as delays or terminations of agreements or the inability of subcontractors to provide services within the specified time or at an acceptable cost, can lead to disputes regarding customer claims for compensation for any damages Enersense may have caused. Enersense aims to work only with reputable and reliable partners. The subcontractors and other partners are subject to background checks prior to entering into cooperation. Failure to enforce and monitor the legality and responsibility requirements of subcontractors and material suppliers and to address irregularities may result in additional contractual liabilities for the company or even lead to fines. Hazard risks Enersense’s hazard and continuity risks are mainly related to people, property and IT systems. Although the company has protected its operations and property by means of normal insurance, the materialisation of hazard risks may result in damage to people and property or business interruption. In addition, the reliability and functionality of IT systems are essential for the continuity of Enersense’s operations. Prolonged interruptions in key systems may limit Enersense’s opportunities to operate profitably and efficiently. Cyberthreats can also pose a risk to Enersense’s data assets. Disputes Enersense may become a party to or the subject of legal proceedings or arbitration, administrative, regulatory or other similar proceedings. Disputes are typically related to claims against Enersense for alleged defective performance, delays or damages caused to customers, particularly in project activities, or to claims made by Enersense against its suppliers or customers. The Group companies do not currently have any significant legal proceedings pending. Some legal claims related to the Group companies’ business operations have been filed on various grounds. Based on the company’s current assessment, it is unlikely that the outcome of these disputes will have a material impact on Enersense’s financial position. (Financial Statement Bulletin 2025, 12.2.2026)
