Making a zero-emission society a reality

Annual report 2023

INTRODUCTION ........................................................................ 3

ENERSENSE IN BRIEF	4
We are Enersense	5
Business areas in brief 6
Enersense as an investment	7

YEAR 2023 .................................................................................. 8

Highlights of the year	9
Key figures	10
President and CEO's review	11

STRATEGY ................................................................................ 13

Operating environment	14
Strategic focus areas	15
Growth strategy's focus areas	16
Long-term targets	18
Guidance for the 2024 financial year	19

BUSINESS OPERATIONS AND MARKETS	20
Our role in the energy value chain	21
Power	22
Smart Industry	32
Connectivity	36
International Operations	41

SUSTAINABILITY	45
We grow responsibly	46
Sustainable work	51
Sustainable business	63
Environmental responsibility	74

GOVERNANCE	80
Members of the Board of Directors	81
Members of the Group Executive Team	82
Governance	83

Enersense's Financial Statement Documents have been published in accordance with the ESEF reporting requirements as XHTML file in Finnish attached to a stock exchange release on 8 March 2024. A voluntary PDF version of the Board of Directors' report and financial statements can also be downloaded in Finnish and English from Enersense's website.

Image: First Production Oy

Introduction

For us, 2023 was a year of strong growth. Alongside our strong core business and continuous development, we actively continued to invest in strengthening our position in our strategic focus areas: sustainable mobility, offshore wind power, renewable energy and its production.

In addition, we simplified our organisational structure, and at the beginning of 2024, we announced that we will merge the Power and International Operations business areas into a single business area. At the same time, the Smart Industry business area was renamed Industry. This means that, from 2024, our new business areas are Power, Industry, and Connectivity.

In this report, events in 2023 are presented in accordance with the previous business area division.

Enersense in brief

We are Enersense	5
Business areas in brief	6
Enersense as an investment	7

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 4

Be brave

Grow responsibly

Together

We are Enersense

We enable the energy transition, the green transition and digitalization in society through our broad service range. We operate in services related to energy production, transmission and storage, ranging from project development and planning to construction, maintenance and servicing, and we are a key builder of the critical infrastructure in society.

We ensure the security of supply with our partners, and we build and strengthen an energy self-sufficient future. We also increase energy efficiency and energy savings through our operations.

We have around 2,000 employees working to create a more sustainable and cleaner future. In 2023, our revenue was around 363 million euros. Enersense's shares are listed on Nasdaq Helsinki (ESENSE).

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 6

Business areas in brief

Power

In the Power segment, we help our customers implement the energy transition through services that cover the entire life cycle of the energy sector. The services include the design, construction and maintenance of transmission grids and electric substations.

Additionally, the segment also covers, as its strategic growth areas, the design, construction, maintenance and project development of wind farms and solar farms as well as solutions for charging systems for electrically powered transport and electricity storage. In the future, our aim is also to invest in starting our own renewable energy production.

Connectivity

In the Connectivity segment, we help our customers by providing mobile and fixed network services and ensuring their operability. The segment is involved in all phases of the life cycles of data networks, as well as designing, building and maintaining fixed and wireless data networks.

**Smart Industry*)**

In the Smart Industry segment, we help our customers improve the reliability of their production plants and the efficiency of their maintenance operations, in addition to developing digital solutions that improve profitability. As its strategic growth area, the segment also provides resource and project services for Finnish and international customers' onshore and offshore projects.

*) In the beginning of 2024 Smart Industry business area was renamed Industry.

**International Operations*)**

The International Operations segment includes Enersense's international business operations mainly in Estonia, Latvia and Lithuania. Our services include for example the design, construction and maintenance of transmission grids, telecommunications networks, electric substations and wind farms.

*) In the beginning of 2024 the Power and International Operations business areas merged into a single business area called Power.

Enersense as an investment

Enersense's target markets continue to grow, driven by global megatrends. We operate in large and growing international markets, which offers us significant opportunities.

1 A significant operator in various areas of the energy transition We play a key role in implementing the energy transition in society through our diverse range of services.

2 Strong market position in key segments We have a strong market position in all key segments, which offers us excellent opportunities for growth.

3 Reputation as a high-quality and expert partner We are known as an expert provider of high-quality services among our customers. Our customer satisfaction is high in all our business units thanks to our quality-driven approach and skilled personnel.

4 Major Finnish and international markets We operate in major Finnish and international markets in which investments in renewable energy sources and telecommunications technology and in energy efficiency in industry will expand the key markets in the future.

5 Megatrends drive market growth Megatrends, including sustainable development, electrification and digitalisation, drive market growth and accelerate the energy transition.

Year 2023

Highlights of the year	9
Key figures	10
President and CEO's review	11

Highlights of the year

Our revenue increased 29%

Compared to 2022, our revenue increased by 29% to EUR 363.3 million. Our order backlog increased by 10% compared to 2022 and was EUR 457 million at the end of 2023.

Renewable energy project portfolio increased to 8,800 MW

We continued to develop our onshore wind and solar project portfolio during 2023. At the end of the year, the renewable energy project portfolio totalled approximately 8,800 MW (2022: 8,000 MW).

Charging and Wind became part of the Enersense family

The manufacturer of high-power charging stations for electric transport Unified Chargers changed its name to Enersense Charging Oy and the onshore wind power developer Megatuuli to Enersense Wind Oy.

Centre of excellence for offshore wind power

We are participating in an international centre of excellence and operations that the City of Pori is building around offshore wind power.

First hydrogen economy projects

During the year, we signed an equipment and pipeline agreement with P2X for a green hydrogen production plant and an agreement with Q Power on the delivery of steel structures for a methanation plant's reactor modules.

We committed to reducing greenhouse gas emissions

At the turn of the year, we submitted a commitment letter to the international Science Based Targets organisation (SBTi). We will set science-based nearterm emission reduction targets by the end of 2025.

Key figures

Connectivity 57,8
International Operations 104,2

(Group in total 363)

Revenue MEUR 363	Order backlog MEUR 457 (31 December 2023)	Personnel by segment FTE
Adjusted EBITDA	Adjusted EBITDA	Revenue
MEUR	%	by segment
15.1	4.2	MEUR

Key figures	2023	2022
Revenue, (EUR 1,000)	363,318	281,997
EBITDA, (EUR 1,000)	14,704	12,210
EBITDA, %	4.0	4.3
Adjusted EBITDA, (EUR 1,000)	15,115	13,654
Adjusted EBITDA, %	4.2	4.8
Operating profit, (EUR 1,000)	5,260	3,479
Operating profit, %	1.4	1.2
Result for the period, (EUR 1,000)	-9,149	-9,835
Equity ratio, %	26.0	28.8
Gearing, %	70.2	19.0
Return on equity, %	-16.0	-17.5
Earnings per share, undiluted, EUR	-0.54	-0.57
Earnings per share, diluted, EUR	-0.54	-0.57

(Group in total ~ 2 000)

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 10

President and CEO's review

To achieve our strategic growth targets, we are working to strengthen our position in our selected focus areas. Alongside growth, we will increasingly shift our focus to improving profitability.

OUR STRONG GROWTH CONTINUED in 2023, and we improved the profitability of our core business operations. Our revenue increased by 28.8% from 2022 and was EUR 363.3 (282.0) million. The revenue includes EUR 7.6 million (14.0) in sales revenue from wind power projects. The Group's adjusted EBITDA was EUR 15.1 (13.7) million. The profitability of the core business operations improved in all business areas. However, investments in strategic focus areas continued to be significant, and had an impact of EUR -11.8 (-6.1) million on EBITDA. At the end of the year, the Group's order backlog was at a good level, at EUR 457 (415) million. The Group's cash flow turned positive in the last quarter of the year.

Implementing the energy transition through profitable and growing business operations is at the core of our strategy. In 2023, all our business areas increased their revenue significantly, supported by a strong order backlog. In the Baltic countries, the construction of high-voltage power lines continued at a good level. In Connectivity, there was strong activity in fixed optical fibre construction projects. In late 2022 and early 2023, we announced contracts totalling around EUR 100 million for the construction of

optical fibre connections. In the Power business area, the market situation was good, particularly in services related to the construction of transmission networks. Enersense plays a significant role in implementing projects related to Finland's main grid. In Smart Industry, revenue increased as a result of higher volumes in service and project business operations.

We are particularly pleased with the significant increase in EBITDA in the Smart Industry, Connectivity and International Operations business areas. In the Power business area, EBITDA decreased year-on-year. Investments in strategic focus areas continued to be reflected in the profitability of the Smart Industry and Power business areas, and especially the ramp-up of the offshore-business has been slower than anticipated. However, both business areas have been able to improve the profitability of their core business operations, supported by strong volumes in particular. In the International Operations and Connectivity business areas, higher volumes and profitability improvement measures have already yielded results. Our significant investment in the company's ERP system progressed to the next phase towards the end of

the year, when the system was successfully implemented in the Smart Industry business area. The successful first phase lays a good foundation for the implementation of the system in other business areas.

To achieve our strategic growth targets, we are working to strengthen our position in our selected focus areas. We received our first significant orders for offshore projects during 2023. These projects increased business volumes, but the investments in the ramp-up of operations continued to burden profitability. We continued to develop our wind and solar power project portfolio. At the end of 2023, our onshore wind power project portfolio stood at around 8,400 MW (June 2023: 8,100 MW), and our solar power project portfolio totalled around 400 MW (June 2023: 60 MW). Our renewable energy project development portfolio of around 8,800 MW provides a good basis for the development of our own energy production. The assessment of the options related to our own energy production continues in line with the process announced in June 2023.

In charging solutions for zero-emission transport, we further specified our role as a developer and supplier of high-power charging technology. The market introduction of our advanced ECDC high-power charging equipment is progressing, and interest in the equipment has been at a good level, especially in the professional and commercial charging operator segments that are of interest to us. In November, as the first operator in Finland, we announced cooperation with electric transport payment and management platform developer Monta and started preparing integrations with several electric transport back-end system suppliers.

Towards the end of the year, we made a significant decision in the field of climate work by making a commitment to the nearterm emissions reduction target of the Science Based Targets initiative. Through the commitment, we will determine sciencebased emissions reduction targets by the end of 2025 that support the Paris Agreement's guideline to limit global warming to 1.5 degrees. We also wanted to engage our supply chain in the discussion on the transition towards low-emission solutions in the steel industry. In late 2023, we joined WWF Finland's Ready for Green Steel campaign, which encourages steel industry companies to accelerate this positive change.

We have set ourselves ambitious financial targets for 2027. The strong growth in 2023 shows that we are on the right track in

terms of our growth targets. Alongside growth, we will increasingly shift our focus to improving profitability. For example, we believe that the new ERP system will increase the efficiency of our operations. The work to streamline our business portfolio will also continue. At the beginning of 2024, we started preparatory work to merge the organisations of the Power and International Operations business areas. Very similar projects are being carried out in these two business areas in many respects, and we believe that by combining these operations we will improve both our competitiveness and our efficiency.

The outlook for 2024 is favourable and we expect both the revenue and EBITDA to grow. In 2024, we expect the revenue to be in the range of EUR 365–435 million and EBITDA in the range of EUR 15–25 million.

Jussi Holopainen

President and CEO

"Our renewable energy project development portfolio of around 8,800 MW provides a good basis for the development of our own energy production."

Strategy

Operating environment	14
Strategic focus areas	15
Growth strategy's focus areas	16
Long-term targets	18
Guidance for the 2024 financial year	19

Operating environment

The ongoing transition is creating significant business opportunities for companies in different parts of the energy sector's value chain.

THE ENERGY AND THE GREEN TRANSITIONS 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 longterm 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.

MARKET DRIVERS

Competitive renewable energy production technologies

EU-level and national climate targets

Clean hydrogen

Geopolitical uncertainty and energy self-sufficiency

Strategic focus areas

Enersense's strategy is to be a provider of zero-emission energy solutions and an enabler of an emission-free society through profitable business operations.

1 Capture growth in energy transition We focus on growth in energy transition by building wind and solar PV generation business, penetrating offshore wind foundation markets, and ramping up EV charging business. We examine opportunities in energy storage.

2 Develop and maintain efficient core business operations Our core operations include design, installation, construction, operation and maintenance services in the fields of energy, maritime transport, industry and telecommunications infrastructure. We ensure continuous improvement of our end-to-end business operations to drive customer value, competitiveness and profitability. We ensure smooth integration of acquired businesses.

3 Ensure skilled people and expertise to make a difference We build the best expertise and competences for current and new businesses, and acquire new talents to join the company to fill the identified gaps.

4 Enersense way of working (eWoW) We build company wide leadership principles, common operational model, and digitalized processes across the businesses to provide solid foundation for growth.

5 Develop ESG as core of Enersense's operations We develop and deploy environmental, social and governmental targets and actions in the core of our business to foster responsibility, and to comply with regulatory, customer and investor requirements. In 2023, we decided to make a commitment to the Science Based Targets initiative (SBTi). In connection with this, Enersense decided to align its previous carbon neutrality target for 2030, concerning its own operations, with its near-term SBTi-compliant emissions reduction target. We are committed to setting science-based near-term emission reduction targets by the end of 2025.

OFFSHORE WIND FOUNDATIONS

• Construction of offshore wind power plant foundations

- Project deliveries (EPC*))

SUSTAINABLE MOBILITY

• Electric vehicle charging solutions • Hydrogen and e-fuel production**)

RENEWABLE ENERGY

• Wind and solar power project development • Wind and solar power generation

Energy storage (batteries, hydrogen)

CORE BUSINESS

Project, operation and maintenance services for the energy, industrial and telecommunications sectors with a focus on building, operating and maintaining a sustainable energy system and infrastructure

Growth strategy's focus areas

The focus areas of our growth strategy are on and offshore wind power, solar power and sustainable mobility. In offshore wind power, the growth is sought from wind turbine foundations, in particular, and in onshore wind power and solar power from project development, construction and own energy generation. In sustainable mobility, new business is sought from electric vehicle charging solutions and clean fuels. We are also continuously exploring new business and acquisition opportunities related to the energy transition that have synergies with existing core and growth business areas.

*) Engineering, Procurement, Construction.

**) Green hydrogen and e-fuel production

in P2X Solutions of which Enersense owns 18.5%.

We explore options to accelerate our renewable energy production target

During the summer Enersense initiated an evaluation of options to further accelerate its growth ambitions within its Power segment, specifically the strategy to become a significant zero-emission energy producer. Enersense's energy production target by 2027 is 600–700 MW, of which 600 MW would be wind power and 100 MW solar power.

The options to be considered include creating a new, separate Enersense subsidiary for renewable energy development and production. Enersense has engaged in discussions with external parties to identify possible partners that would support an acceleration of the growth strategy. Enersense has engaged BNP Paribas as financial advisor to assist with the evaluation.

Enersense will carefully evaluate the various options and take the necessary time to consider the best possible solution. Enersense will give an update in due course, if any concrete outcome were to materialise.

Accelerating wind power business

Target to develop and own wind power plants and produce green energy
Onshore wind power project portfolio
Target to have 600 MW of own wind power production by 2027

of 8,400 MW in total at the end of 2023

Development of the solar power business continues

Target to develop and own solar power plants and produce green energy
Solar power project portfolio of 400 MW in total at the end of 2023
Target to have 100 MW of own solar power production by 2027

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 17

TARGETS SET FOR 2027

Revenue, MEUR 500

EBITDA, MEUR 100

Share of revenue that belongs to the EU environmental taxonomy, %

Own renewable energy production, MW

Long-term targets

Our strategic goal is to expand in the value chain from being a broad-based service company in the energy sector to being a producer of zero-emission energy and a key green energy company.

IN ADDITION TO CONTINUOUS DEVELOPMENT and improvement of our own operations, the tools to achieve the goals also include investments, M&A as well as ensuring financing arrangements relating to our own energy production capacity. During the next few years, our goal is to actively seek various kinds of equity-based financing arrangements to enable value chain expansion. Our goal is also to distribute at least 30% of earnings per share as dividends.

Targets set for 2027

According to our strategy's focus areas, we are seeking new business alongside our current project and service operations from offshore wind power, and wind turbine foundations, in particular, the project development and ownership of onshore wind power and solar energy, and our own energy production, as well as sustainable mobility and electric vehicle charging solutions.

For 2027 our revenue target is 500 million euros, of which strategic development projects, such as on and offshore wind power and electric mobility projects, and own energy production projects are both estimated to bring 100 million euros. Our core business operations' share of revenue in 2027 is expected to be 300 million euros.

Our EBITDA target for 2027 is 100 million euros, of which strategic development projects and own energy production projects are both expected to bring 35 million euros. Our core business operations' share of EBITDA in 2027 is expected to be 30 million euros.

We also aim to increase the share of revenue that belongs to the EU environmental taxonomy*) to 65–70% in 2027.

Our current renewable energy project portfolio of 8,800 MW enables us to develop our own energy production. Enersense's own renewable energy production target is 600–700 MW by 2027.

*) The basis for the target was changed in 2023. The target is now based on revenue that belongs to the EU environmental taxonomy. Previously, the share of revenue included certain other Enersense's operations related to the energy transition and efficiency. Enersense's taxonomy report in accordance with the Taxonomy Regulation will be presented in the Board of Directors' report for 2023.

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 18

Guidance for the 2024 financial year

In 2024, Enersense's revenue is expected to be in the range of EUR 365–435 million and EBITDA in the range of EUR 15–25 million. The revenue is expected to grow in 2024. Outlook especially for the company's growth areas is favourable. The EBITDA is expected to grow. Profitability is expected to improve even if the investments in growth continue.

In 2024, revenue is

Business operations and markets

Our role in the value chain of energy ................................. 21 Power ........................................................................................ 22 Smart Industry ......................................................................... 32 Connectivity ............................................................................ 36 International Operations ....................................................... 41

Our role in the value chain of energy

ENERSENSE ENABLES the production, transmission, storage and saving of energy through its broad service range.

The energy transition and decentralised energy production require not only a significant increase in the production of renewable energy, but also investments in electricity transmission, power lines and substations. For example, in Finland, over the next ten years, transmission system operator Fingrid will invest EUR 4 billion in the main grid.

Enersense has a strong presence in projects related to energy production, transmission and storage, and energy efficiency through our business areas. For example, we design, develop, build, maintain and service onshore and offshore wind power, solar power, power lines, substations, electric vehicle charging solutions, and data connections.

In energy storage, we are involved in the storage of electricity and the development of hydrogen projects. We promote energy savings through energy-efficient connections and our expertise in operations and maintenance.

and engineering

• Construction and installations
• Maintenance

Power lines Electricity storage

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 21

Power

We provide services covering the entire life cycle of the energy sector, from project development and design to implementation and maintenance.

IN OUR POWER BUSINESS, our focus areas are wind power, solar power, sustainable mobility and electric vehicle charging solutions, energy storage as well as transmission grids and electric substations.

In design and expert services, we provide our customers with comprehensive design services for power transmission grids, as well as for electric substations and wind farms. Design services provided by Enersense include the general design of power lines, the structural design of power lines and electric substations, substation design and the testing and automation of substations, as well as a wide range of expert assignments.

We also cooperate closely with our customers in construction services for substations, power lines and wind power, where we implement turnkey projects for our customers. We have more than 30 years of experience in the successful implementation of power line and substation projects. In wind power, our project deliveries typically include all the necessary infrastructure and the design and construction of the electrical grid. We have played a significant role in the construction of a wind power portfolio of

more than 1,200 MW in Finland and Sweden. With the acquisition of Enersense Wind Oy, our role expanded, and we became a wind power project developer as well.

In addition, we enable operating and maintenance services for electric substations, power lines and wind farms for our customers, helping them to maintain a high level of operational reliability and cost-effectiveness for their production assets.

Our focus areas are wind power, solar power, sustainable mobility and electric vehicle charging solutions, energy storage as well as transmission grids and electric substations.

In addition, we design, develop, and manufacture advanced high-power charging stations for electric vehicles. Enersense's ECDC 80 kW and 160 kW charger is a modular high-power charger suitable for both professional and public charging. The adaptive, wide voltage range (200–920 V) also enables charging of heavy equipment. In addition to our chargers, we offer our customers and dealer/service partners appropriate remote charging station management services and technical support covering the different stages of the equipment's life cycle.

In the Power business area, our customers include energy companies and wind power companies, for example. Our construction services are mainly based on individual project contracts, whereas long-term service contracts are typical of maintenance services.

Projects initiated, developed and licensed by Enersense have already been built or are under construction or in the planning, permit application or environmental impact assessment phase.

ENERSENSE'S WIND POWER SERVICES cover the entire lifespan of wind farms from development to construction, operation and maintenance. As a project developer for onshore wind power, Enersense Wind identifies potential wind power areas, carries out planning, environmental impact assessment (EIA) and permit processes for projects, and also participates in the preparation of project investment decisions and contributes to the construction phase in certain projects.

At the end of 2023, Enersense was engaged in ten wind farm projects that were in the planning, EIA or permit application phase and a number of early-phase projects. In total, 180–230 wind turbines are in the planning or EIA phase.

Projects in the planning, EIA or permit application phase include the wind farms of Lakkasuo, Yli-Olhava, Latvaselkä, Neittävänvaara, Honkalankangas, Sikokangas, Koivulanneva, Lapinsalo, Leppämäki and Paulakangas. In 2023, the planning and EIA processes were initiated for three new wind power projects.

Of the projects developed by Enersense, the Kalistanneva wind farm of 30 turbines and the Matkussaari wind farm of 27 turbines in Kurikka are under construction. The Soidinmäki wind farm of seven turbines in Saarijärvi was completed and delivered to the client in September and is now generating electricity. Enersense acted as the project's early-phase developer and as the main

contractor in the wind farm construction phase, and will continue to be responsible for operating and maintenance services during the wind farm's operations under a multi-year agreement.

Tyrinselkä I (commissioned in 2016), Tyrinselkä II (2021), Suolakangas (2020), Saunamaa (2020) and Rasakangas (2022) are generating electricity. The wind farms that are in production and have been developed by Enersense generate some 730 GWh of electricity per year, equalling the annual electricity consumption of some 30,000 detached houses.

Enersense's project development portfolio

The development of Enersense's onshore wind power project portfolio continued in 2023. At the end of the year, the portfolio was approximately 8,400 MW (2022: 8,000 MW), of which 1,500 MW will be developed in cooperation with a partner. The projects in the feasibility study phase total around 6,600 MW, and projects totalling 1,800 MW are in the permit, land use and EIA phase.

Enersense continued its solar energy project development in 2023, with the portfolio totalling approximately 400 MW (2022: 60 MW).

Enersense's renewable energy project development portfolio of approximately 8,800 MW enables the company to develop energy production of its own. Enersense's own energy production target by 2027 is 600–700 MW.

In production In the permit

Wind and solar power project development

Our significant role in all stages of the wind farm's life cycle

Enersense's wind power services cover the entire lifespan of offshore and onshore wind farms from development to construction, operation and maintenance. Enersense has a strong role and expertise in the service and maintenance of wind farms in Finland. In 2023, Enersense maintained approximately half of Finland's wind farms' electricity networks.

Enersense cooperates with several wind power operators, always taking into account the customer's overall needs.The maintenance and fault repair service agreement for 2022–2027 of Gigawatti Oy, which is responsible for S Group's wind power production, was extended to construction projects in spring 2023, when Enersense was selected as the main contractor for the construction of the infrastructure of Gigawatti's Oosinselkä wind farm.

"We are very pleased that Gigawatti Oy chose us as their partner in this investment. This enables us to extend our good cooperation from wind power maintenance also to construction projects," says Maija Isoaho, Head of wind power construction for Enersense's Power business area.

Cooperation with Ilmatar also expanded from operation and maintenance partnerships to construction projects, when in the end of the year, Enersense signed an agreement with Ilmatar Energy on the construction of the Korpilevonmäki wind farm in Säkylä. Ilmatar's Korpilevonmäki wind farm consists of six turbines.

"This is our first construction project for Ilmatar in our history of wind power construction, and we are of course very happy of our selection as the main contractor for the Korpilevonmäki wind farm", says Pekka Pitkämö, Vice President of Sales in Enersense's Renewable Energy segment.

The project of 50 wind power plants in Yli-Olhava,Ii progresses

The Yli-Olhava wind-power park project in Ii developed by Enersense is progressing as planned. By its ruling of 28 February, the Supreme Administrative Court rejected the application for leave to appeal concerning the adoption of the local master plan, and the plan has thus gained legal force.

On 1 February 2021, the Municipal Council of Ii unanimously approved the Yli-Olhava wind farm component master plan, which allows the construction of 50 wind power plants in the area. Megatuuli has leased more than 6,000 hectares of land for the project, and the project involves more than 100 landowners. The project will be developed in collaboration with Megatuuli's French partner Valorem, and the project investment is estimated to be in the range of EUR 400–500 million.

Wind measurements have been under way for more than two years, and the wind conditions in the area are excellent. When completed, the wind farm is

estimated to generate more than 1 TWh of electricity, or about 1.5% of Finland's total electricity

demand.

"This is a major project of great importance for us, and we are pleased that we reached this important milestone and that the project now proceeds to the next stages. The project is also of great importance to the municipality of Ii, as the municipality will receive considerable property tax revenue. The wind farm has been estimated to yield annual property tax revenue of over EUR 1,5 million to the municipality of Ii," says Lauri Lammivaara, Vice President of Wind Power Development at Enersense.

The other financial impact on the municipality and the neighbouring municipalities is also estimated to be significant. The project will create new jobs and also provide employment opportunities indirectly. The investment decision in the project is estimated to be made in 2024–2025.

When completed, the wind farm is estimated to generate more than 1 TWh of electricity.

Enersense to cooperate with Scanfil and Monta in charging business

Enersense Charging Oy, a manufacturer of high-power charging stations for electric mobility, and Scanfil Plc, a manufacturing partner for the electronics industry, started cooperation in the spring in the manufacturing of Enersense's new high-power charging stations. The high-power charging stations are manufactured at Scanfil's factory in Sievi, Finland, and delivered directly to the end customer for on-site installation.

"The cooperation with Scanfil has started very well. Scanfil has long and strong experience in the assembly of electronic equipment and I believe that the cooperation also offers us great growth opportunities. We are now able to rapidly increase our production volumes according to our customers' needs," says Topias Koskela, Head of Electric Vehicle Charging Solutions at Enersense.

At the end of the year Enersense signed an agreement with Monta, a Danish operator developing user interfaces for electric vehicle charging. With the agreement, Enersense will be able to offer the services of Monta's advanced payment and management platform both in Finland and in the global market to charging station operators and consumer customers.

"The new platform replaces the previously used browserbased interface and offers more advanced features such as dynamic pricing and smart charging. To ensure the best charging experience, Monta also offers 24/7 customer support, including driver support. I look forward to working with Monta, and I believe that this cooperation will bring many opportunities in the future, both in Finland and globally," says Topias Koskela, Head of Electric Vehicle Charging Solutions at Enersense.

First high-power charging station deliveries to Norway

First contracts to deliver 160 kW high-power charging stations manufactured by Enersense to Norway was signed in June and during the past year, in addition to Norway and Finland, Enersense also delivered high-power charging solutions to Sweden.

"Zero-emission transport is one of the focus areas of Enersense's growth strategy. There are many opportunities for us in the Nordic charging market, and we are delighted with how well our new high-power charger has been received," says Topias Koskela, Head of Electric Vehicle Charging Solutions at Enersense.

During the summer, Enersense signed several agreements on the delivery of high-power chargers. Enersense won the tender of the Jokilaakso Vocational Education Centre JEDU, with which two 160 kW high-power charging stations will be delivered to the Vocational Education Centre in the Jokilaaksot region, for example for charging electric trucks and vans, as well as for training projects. Enersense also agreed to deliver ten pieces of 80 kW and 160 kW fast and high-power charging equipment and six lower-power DC chargers during 2023 to the Leppäkoski Group energy company, Lähilataus Oy and the Antti Simula & Co taxi service company. Enersense has also entered into an agreement with Veljekset Keskinen Oy on the delivery of twenty 22 kW AC charging points to the Tuuri department store.

In the spring, Enersense was chosen together with Parking Energy as one of the three suppliers in Sarastia's tendering for a framework agreement where the participating public sector bodies can procure charging solutions and related contracting and installation services directly from the suppliers that have been chosen in the tendering process. Parking Energy is a Finnish high-growth company founded in 2014 that develops charging technology and produces electric vehicle charging services. Enersense owns 10% of Parking Energy.

"Being included in Sarastia's framework agreement makes Enersense's and its partner company Parking Energy's DC and AC charging solutions, which are manufactured in Finland, as well as related installation and maintenance services available for Sarastia's customer entities all over Finland, if they choose to participate in the framework agreement", says Topias Koskela, Head of Electric Vehicle Charging Solutions at Enersense.

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Long-term cooperation in substations and transmission lines

In the spring, Enersense was chosen as the main contractor for Fingrid's project regarding adding capacitors into substations to improve transmission capacity. Enersense was also chosen as the main contractor for Fingrid's project to expand substations in Huittinen-Forssa.

In the summer Enersense was chosen as the main contractor for Fingrid's Nuojuankangas–Pyhänselkä substation project to build a new transformer substation in Nuojuankangas, expand the 110 kV switchgear and expand the substation in Pyhänselkä. The project is part of Fingrid's larger project to build a new power transmission line from Pyhänselkä to Huutokoski (expansion of the Järvilinja transmission line).

In the fall, Enersense was chosen, in a public procurement tendering, as one of Fingrid's partner for maintenance services for its substations and power lines in 2024–2026. The upcoming period is a continuation for the agreement made for the years 2021–2023 and it reinforces the long-term cooperation between Enersense and Fingrid for the services in question.

"The reselection of Enersense as one of Fingrid's maintenance service providers clearly demonstrates our capabilities and the appreciation of them as well as the benefits of long-term co-operation for a customer", says Joni Parkkinen, Vice President, Transmission Networks, Power business area.

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Substations also being electrified for transport

Fingrid's substations are also being electrified for transport, and personnel and service suppliers are increasingly able to charge their electric vehicles. Charging stations will be installed in all new substations and certain existing substations. Enersense participates in the project as the charging station supplier.

"We want to do our part on the journey towards carbon neutrality in Finland, which is why charging stations will be installed in Fingrid's new substations for personnel and service suppliers. In addition, charging stations will be and have already been installed in existing substations according to demand," says Jouko Loikala, Regional Manager at Fingrid.

Enersense has supplied Elinta's 22 kW AC charging stations to Fingrid's substations across Finland. Two charging stations will always be installed in each new substation. This expansion to the charging infrastructure also enables the electrification of Enersense's vehicles.

"The load-carrying and towing capacity of current electric vans available on the market still falls slightly short of what is needed to transport the tools and machines required at substations, and even if it was sufficient, the added weight would significantly reduce the range of the vehicles to cover the back-and-forth distance without any charging on the way. Given that employees work several hours at a substation during a single visit, there is enough time to charge their vehicles. This also supports the electrification of vehicles carrying heavier loads," says Topias Koskela, Head of EV Charging Solutions at Enersense.

By October, Enersense had supplied charging stations to the following substations: Uusnivala, Hirvisuo, Kristenstad, Toivila, Koria, Imatra, Yllikkälä, Vuoksi, Tehtaanmäki, Pernoonkoski, Lavianvuori, Forssa, Hikiä, Orimattila, Multisilta and Nurmijärvi.

Opening in the maintenance of solar power plants

In the spring, Enersense signed a maintenance agreement with Ilmatar Service Oy on a 5 megawatt solar power plant located in Joroinen.

"The agreement is a significant opening for us in the maintenance of solar power plants. We have strong expertise in various maintenance agreements related to renewable energy, and this first maintenance agreement for a solar power plant is a natural continuation of our long-standing high-quality work with green energy," says Topias Koskela from Enersense.

In the autumn, Enersense entered into an agreement with Helen regarding maintenance services for Helen's solar power plants throughout Finland. The open-ended agreement ensures safe operation and uninterrupted production at solar power plants.

Enersense is strongly involved in developing solar power in Finland. In line with its growth strategy, Enersense invests in the project development and production of solar power. Enersense's target is to develop and own solar power plants and produce green energy. Our target is to build 100 MW of solar power by 2027.

"The agreement is a significant opening for us in the maintenance of solar power plants."

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Smart Industry

In our Smart Industry business, we provide offshore wind power solutions and services that help our customers to improve the reliability of their production plants and the efficiency of their maintenance operations.

IN OUR SMART INDUSTRY BUSINESS, we focus on operating and maintenance services, maintenance centre services, annual maintenance and surface treatment, steel and pipeline work. The segment also includes offshore business operations, which involve turnkey deliveries of foundations for wind power plants (EPC: engineering, procurement, construction) and other deliveries of large metal structures for the needs of industry and the construction sector.

In the Smart Industry business area, our customers include industrial companies, energy companies and shipbuilding companies,

for example.

We have been producing operating and maintenance services for the industrial sector for more than 20 years. Operating and maintenance services are implemented as a continuous service or as project work. We seek to increase the customer's revenue potential by maximising availability and productivity. We also provide our customers with services related to annual maintenance and maintenance during operations. These can also be provided as comprehensive project deliveries, including project employees

and supervisors, design, resourcing, implementation and reporting or smaller subareas. In addition, Enersense has strong expertise in the manufacture of steel structures and pipelines, as well as in their installation in industrial and marine projects. We also provide a wide range of painting and surface treatment services for the needs of all industrial sectors.

Our focus areas include offshore wind power solutions, operating, maintenance, and maintenance centre services for industry, annual maintenance, surface treatment, steel and pipeline work.

We offer maintenance centre and machine shop services as independent of equipment suppliers, and as a flexible solution for our customers' maintenance needs. We provide machine and maintenance services for various industries in our maintenance centres as well as on site.

Enersense has extensive experience in the installation, maintenance and servicing of electricity, district heating and district cooling meters. In the service package, we are responsible for the replacement of our customers' energy meters, modems and their associated terminal devices, as well as system maintenance, thus securing the transfer of data from the customer's site to a remote reading facility. In addition, the Smart Industry segment's resourcing business provides a wide range of flexible staffing solutions for Finnish industry and construction. The segment supports resourcing in all our business areas.

In the beginning of 2024 Smart Industry business area was renamed Industry.

Entering the green hydrogen economy

In the spring, Enersense and Q Power entered into an agreement on the delivery of steel structures for reactor modules for a methanation plant. The agreement is related to the synthetic methane production plant delivered by Q Power to P2X Solutions in Harjavalta. The plant is being built in connection with a green hydrogen production plant. P2X's green hydrogen and synthetic methane production plants are pioneers in the Finnish hydrogen economy and the production of synthetic fuels.

Finland's first green hydrogen production plant will produce green hydrogen from renewable electricity for industrial and other needs. Its capacity will be 20 MW, and it will also produce oxygen and thermal energy as side streams for industry. According to the agreement signed at the end of the year, P2X Solutions will deliver green hydrogen to Danisco Sweeteners's plant in Kotka to xylitol production. Green hydrogen production starts at P2X Solutions' plant in Harjavalta during 2024.

Some of the hydrogen produced sustainably in Harjavalta will be processed into synthetic methane at the methanation plant supplied by Q Power. The modular structures will be manufactured in Enersense's production facilities in Mäntyluoto.

In the summer, Enersense also signed an equipment and pipeline contract with the plant's developer, P2X. Work on the site began in July 2023 and about half of the components had already been installed by autumn 2023, including huge hydrogen and oxygen storage tanks. From now on, the work will focus on pipeline installations.

"This is the first industrial-scale project related to green hydrogen in Finland, and we will utilise the know-how and references gained from this also in future green hydrogen-related industrial projects in Finland and the Nordic countries," says Mikko Lampinen, COO of Enersense Works Oy.

Enersense owns 18.5% of P2X Solutions. Through P2X, Enersense is involved in reducing the emissions of heavy transport using hydrogen and synthetic fuels and in enabling energy storage opportunities created by green hydrogen.

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 34

We are part of an international centre of excellence and operations for offshore wind power

Enersense is participating in a center of excellence and operations that the City of Pori is building around offshore wind power. In addition to the city and harbour of Pori as well as Suisto Kiinteistöt, which is owned by the city, also Suomen Hyötytuuli, Enersense and Dutch Olmar, that provides logistical services to the harbour, have representation in the steering group of the project. The aim is that the centre of excellence will also employ international wind power technology and service providers.

"The Bothnian Sea is also in international considerations one of the most suitable areas for wind power turbines: within a radius of 400 km from Pori altogether 15 larger wind power projects have been published in Finland and Sweden. The centre of excellence will support Enersense's growth ambitions and enables an improved role for Enersense as an EPCI supplier. Enersense's wind power expertise and our 50,000 m2 production facilities in Mäntyluoto, Pori, have a significant role in building up the centre of excellence, and we believe that the cooperation between the different operators will gather substantial synergies", says Jaakko Leivo, EVP, Smart Industry.

"Enersense's wind power expertise and our production facilities in Mäntyluoto, Pori, have a significant role in building up the centre of excellence."

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Connectivity

In our Connectivity business, we help our customers by providing mobile and fixed network services and ensuring their operability.

IN THE CONNECTIVITY BUSINESS we are involved throughout the life cycle of telecommunications networks, and we provide services related to the design, construction, maintenance and repair of fixed and wireless telecommunications networks, infrastructure and telecommunications networks for buildings.

We offer design and expert services for the construction and modification of mobile and fixed networks and for equipment construction as part of our turnkey delivery projects and as a separate service. We design mobile networks from 2G all the way to 5G. We provide design services for new buildings, network modifications and modernisations. Mobile network design services can also include site surveys and permit processes for base stations.

Our design services for fixed networks primarily consist of the design of optical networks for new areas, the replacement of copper cables, or the modification or modernisation of existing optical networks. We provide design services for various applications, ranging from individual sites to nationwide design projects that involve several sites and/or large design areas.

We also build telecommunications connections required for the functioning of modern society throughout Finland. Every year, we implement around 6,000 mobile and fixed network construction projects of various sizes, including planning and documentation services. Our construction services also include telematics construction such as the installation of surveillance system equipment and the system cables required.

We are involved throughout the life cycle of telecommunications networks and we provide services related to the design, construction, maintenance and repair of fixed and wireless telecommunications networks.

Every year, as representatives of our customers we carry out around 100,000 connection and equipment installation assignments to end customers in companies and consumer households across Finland. Enersense's highly skilled employees are also qualified to work in locations that set specific requirements for operations. These include railway environments, masts and substations, where work also requires long-term knowledge of the environment and area.

In addition, our maintenance organisation provides preventive and annual maintenance and repair services for telecommunications networks across Finland as part of comprehensive life cycle management. In addition to ensuring the reliability of data networks, we provide maintenance services for telematics.

We are building an optic fiber network for Valoo

Enersense and a Finnish optic fiber company Valoo have signed a turn-key project contract on construction of an optic fiber network (FTTH = Fiber to the Home) in Finland. The contract is part of Valoo´s extensive optic fiber network construction projects in different parts of Finland. Enersense is responsible for the turn-key delivery which contains project management, planning, construction and documentation of the network. In the first phase the focus of the construction works is in the South-Eastern part of Finland in Lappeenranta, Kotka and Hamina.

"We will continue our long-term investments in the secure, safe and sustainable Finnish data transmission. Cooperation with Enersense supports us in reaching our goal to build the future of Finland on a sustainable base. With this agreement, the total value of our contracting contracts will rise to over 300 million euros", says Tommi Linna, CEO of Valoo.

"We thank Valoo for their confidence on Enersense's FTTH-services. Fast telecommunications connections are crucial in enabling the continuously growing data transmission that energy transition needs. This new contract demonstrates again the strong capabilities of our Connectivity business area in executing telecommunications networks", says Jussi Holopainen, CEO of Enersense.

Read more on our website →

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 38

We provide telecommunications network field services for Telia

In the summer, Enersense and Telia Finland signed a one-year extension agreement on the provision of telecommunications network field services.

The agreement includes mobile network and fixed network construction services, customer delivery and repair services and preventive maintenance services in Finland. The agreement is a continuation of the companies' long-term cooperation, and its substance corresponds to the scope of their previous framework agreement on field services. The new agreement period will begin on 1 April 2024.

"Cooperation with Telia is very important to us. The extension agreement covers nearly all the services we provide and is one of the most comprehensive agreements in Connectivity. We are pleased to continue our joint development work, where we see significant potential for the provision of services for the entire sector in the future. I would like to thank Telia and our own personnel for their forward-looking work of a high quality," says Miika Erola, Vice President, Connectivity at Enersense.

Read more on our website →

The agreement is a continuation of the companies' longterm cooperation.

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 39

Enersense's telecommunications technicians starred the "Builders of a safe and secure network" campaign

Jussi Ala-Koukkari and Timo Ahonen, telecommunications technicians from Enersense's Connectivity business area, performed in "Builders of a safe and secure network" (turvaverkonrakentajat in Finnish), a series of videos produced in cooperation with our customer Telia, which aired in the social media channels of Enersense and Telia and on television during the year.

The "Builders of a safe and secure network" concept was started in summer 2023 and continued in the autumn with new videos during the digital security week, for example. In the series coordinated by Telia, Enersense's technicians videoed their work at 5G towers, including the 60-metre tower in the Lauhanvuori National Park, for example. The videos presented the impact of weather on work carried out at towers and demonstrated safety harnesses and the 5G technology among other topics.

The concept received an excellent welcome, and the plan is to continue shooting videos in 2024.

International Operations

The International Operations segment includes Enersense's international business operations mainly in Estonia, Latvia and Lithuania.

IN OUR INTERNATIONAL OPERATIONS BUSINESS, our services include the design, construction and maintenance of transmission grids, telecommunications networks, electric substations and wind farms, as well as resource and contracting services.

In Estonia we operate through our Group companies Enersense AS and Empower 4Wind OÜ, Enersense SIA in Latvia and Enersense

UAB in Lithuania.

In the Baltic countries, we provide our customers with the following services: services and turnkey projects related to the maintenance of high-voltage overhead transmission lines; maintenance and turnkey projects related to distribution grids; maintenance and turnkey projects related to electric substations; design and expert services for grid companies and industrial customers; maintenance, repair and construction services for wind farm infrastructure; services related to the management of wind farm spare part resources; design and construction services for mobile network base stations; and installation and maintenance services for FOC and mobile networks.

Customers of the International Operations business area include international electricity and energy companies, wind power companies, industrial companies, telecommunications companies, municipalities and railway companies. Agreements related to construction and resourcing and contracting services mainly include individual contract and project agreements, whereas maintenance agreements also include continuous and fixed-term service contracts.

Our international services include the design, construction and maintenance of transmission grids, telecommunications networks, electric substations and wind farms, as well as resource and contracting services among others.

In the beginning of 2024, the International Operations and Power business areas merged into a single business area called Power.

Key figures INTERNATIONAL OPERATIONS

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First agreement for battery storage maintenance in Lithuania

Enersense's Lithuanian subsidiary Enersense UAB signed an agreement in August with Fluence regarding the maintenance of electricity storage systems in the regions of Alytus, Vilnius, Utena and Šiauliai. The battery-based energy storage system has a total capacity of 200 MWh, and it is the first of its kind in Lithuania.

Energy Cells UAB, to whom Fluence delivered the storage system, manages electricity storage facilities in Lithuania. For the integration of energy generated from renewable energy sources, a battery system is used to ensure the instantaneous reserve of isolated working electricity for Lithuania until it is synchronized with continental European networks (KETs).

The agreement is a continuation of good cooperation between Enersense and Fluence in Finland.

"We are pleased that Fluence chose us as its partner, and the signed agreement is an important market opening for us in the Lithuanian electricity storage market. An energy self-sufficient Europe needs such projects, and it is great to be a part of this," says Artūras Lapinskas, Enersense's Managing Director for Lithuania.

Read more on our website →

Image: Energy Cells project in Vilnius, Lithuania

We are renewing the Mustvee-Paide transmission line in Estonia

In the beginning of the year, Enersense AS, Estonian subsidiary of Enersense, signed a contract with Estonian transmission system operator AS Elering. The contract covers the renewal of the 330-kV power line between Mustvee and Paide substations as well as construction of a new 110-kV power line between Mustvee and Kantkyla substations.

The project includes preparatory and design works, demolition of the existing power line and construction of a 90-km-long new 330 kV and 110 kV power line. The project is expected to be completed in July 2025 at the latest.

"Enersense has decades of experience in the construction of power lines. We are delighted that our capabilities are valued, and that we are chosen to execute demanding projects as a responsible partner to our clients. This significant contract strengthens our position in the Baltic market", says Jussi Holopainen, CEO, Enersense International Plc.

The renewal of the power line between Mustvee and Paide substations is an important part of a larger project that connects transmission systems at the Baltic Sea region to transmission systems in mainland Europe. Construction of Mustvee-Paide power line strengthens basic power connections in Estonia markedly.

Read more on our website →

Construction of Mustvee-Paide power line strengthens basic power connections in Estonia markedly.

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Sustainability

WE GROW RESPONSIBLY 46
Sustainability management 47
Key guiding sustainability themes for operations 50

SUSTAINABLE WORK 51
Personnel and a common working culture 53
Occupational safety 55
Wellbeing at work and work ability 58
Competence and development at work 61
Respect for human rights 62

SUSTAINABLE BUSINESS 63
We support the goals of the EU Green Deal 64
Sustainability in the supply chain 67
Net impact analysis 69
Economic impact 71
Tax footprint 72
Prevention of bribery and corruption 73

ENVIRONMENTAL RESPONSIBILITY .................................... 74
Greenhouse gas emissions and energy consumption ..... 76

We grow responsibly

Enersense's strategy and responsible thinking are based on our shared values: be brave, grow responsibly, together.

SUSTAINABILITY IS part of Enersense's strategy, which supports the ongoing energy transition in society. Our target is to increase the share of revenue that belongs to the EU environmental taxonomy to 65–70% in 2027.

Enersense's sustainability work focuses on:

Sustainable work occupational safety and other personnel matters in its own operations
Sustainable business implementing the energy transition by helping customers build a sustainable energy system and promoting renewable energy production as part of a sustainable value chain
Environmental responsibility greenhouse gas emissions in the company's own operations and the value chain.

Sustainability activities developed together

In 2023, we developed Enersense's sustainability activities in various ways with different stakeholders. We calculated the Group's direct and indirect greenhouse gas emissions of purchased energy in accordance with the GHG Protocol for the first time for 2023. In late 2023, we also started calculation of the other indirect emissions from the value chain, which will be completed during 2024. At the end of the year, we made a commitment to the

Science Based Targets initiative (SBTi) and will set science-based near-term emissions reduction targets. The emission reduction targets will be set according to SBTi's schedule within two years of the commitment. The new targets will be submitted to the SBT organisation for validation, and the targets will concern both Enersense's own operations and the entire supply chain.

We also further developed the work done for our personnel and during the year we focused on developing and implementing our strategy, common ways of working and values. We revised our personnel survey to ensure that feedback from the personnel can be collected in a more agile manner, and that the results can be used for development purposes, and to enable knowledge-based management. A new HR system was also introduced to support an open and transparent way of working across the company.

We further harmonised the certification processes for the environmental system, occupational health and safety system and quality system, and in terms of revenue, 95 (93*))% of Enersense's operations were covered by the ISO 14001:2015, ISO 45001:2018 and ISO 9001:2015 certificates in 2023.

*) Enersense's revenue recognition was changed in 2023. The revenue behind the KPI for 2022 has been changed accordingly.

Sustainability management

Responsibilities and governance

Sustainability is part of Enersense's strategy. Enersense's Board of Directors approves the company's strategy and has the highest responsibility for managing sustainability at Enersense. The Board reviews and monitors matters related to sustainability as part of the strategy and reporting processes and decides on the company's long-term strategic and financial targets. Under the leadership of the President and CEO, Enersense's Group Executive Team is responsible for operational sustainability management, in addition to setting annual sustainability targets and integrating them into operations.

Guiding principles for our operations

In all our operations, we comply with the applicable laws, regulations and statutory requirements. In all our business operations, we acknowledge the highest international agreements and ethical requirements, including the following key agreements and requirements:

The UN Guiding Principles on Business and Human Rights
The ILO Declaration on Fundamental Principles and Rights at Work
The OECD Guidelines for Multinational Enterprises.

Our operating culture is based on our values:

Be brave
Grow responsibly
Together

In addition to our values, the company's operating culture is based on its Code of Conduct and Supplier Code of Conduct, in addition to which the key principles and policies guiding our sustainability work are risk management policy, personnel policy, occupational health and safety policy, competition law policy, procurement policy and environmental policy.

The Board of Directors approves the Code of Conduct and policies applicable to the whole Group. The Group Executive Team approves internal guidelines and policies concerning specific operating methods applicable to the whole Group. We have also confirmed our Supplier Code of Conduct, which is binding on our suppliers.

The Code of Conduct specifies the common principles that Enersense's employees must follow in their day-to-day work. The Code determines our approach to ethical business practices, human and labour rights and environmental values. The jointly agreed operating principles promote profitable business operations and a culture of responsibility and integrity, prevent unlawful and unethical conduct, and strengthen our stakeholders' confidence. Every employee is responsible for studying and following the Code of Conduct. Each new employee must complete an online course related to the Code of Conduct at the beginning of their employment relationship.

ENERSENSE'S GOVERNANCE STRUCTURE

We require all our suppliers to comply with good business practice and Enersense's Supplier Code of Conduct as it stands at the time in question. The Supplier Code of Conduct determines Enersense's common good business practices, which are based on its values. It also includes guidelines on compliance with laws and rules, fair competition, anti-bribery and anti-corruption, respect for human and labour rights, and environmental considerations. Suppliers must also ensure that their own suppliers and subcontractors comply with Enersense's Supplier Code of Conduct or the supplier's own, similar guidelines when providing products or services to Enersense. We monitor compliance with the Code and audit our suppliers according to a prioritised plan.

We increase our employees' awareness of the importance of compliance with competition law and provide related training for our managers and other key groups. We increase awareness of the importance of compliance with competition law by the following means:

In 2023, Enersense updated its competition law policy, which is a separate policy approved by the CEO.
The importance of fair competition and compliance with competition law is highlighted in Enersense's Code of Conduct and the Supplier Code of Conduct. We make every effort to increase our employees' awareness of the theme.

Enersense communicates the competition policy in connection with its other policies, and the policy is available in the company's intranet with the company's other policies. Enersense also regularly provides competition policy training by its legal department for target groups defined with the company's business units.

Neither the company nor any of its management members (including top executives of the company's subsidiaries) have been convicted of any breach of competition law.

Enersense's management system

Enersense's management system supports the implementation of its Code of Conduct and sustainable operating culture. The management system is based on certified environmental management standards (ISO 14001:2015), occupational safety and health standards (ISO 45001:2018) and quality management standards (ISO 9001:2015). The management system is the way in which we manage, steer, and continuously improve various elements of business operations to achieve our targets. The management system consists of policies, processes and operating methods. These are ways of working that have been jointly agreed on within the company.

The certification processes for the environmental system, occupational health and safety system and quality system were harmonised further during 2023, and all operations in Finland and Estonia were integrated into a single certificate. Also, new operations of the earlier certified companies were added to the certification. During 2024, we will explore opportunities to integrate companies that are currently separately certified or uncertified into the same process.

In terms of revenue, 95 (93*))% of Enersense's operations were covered by the ISO 14001:2015, ISO 45001:2018 and ISO 9001:2015 certificates in 2023.

*) Enersense's revenue recognition was changed in 2023. The revenue behind the KPI for 2022 has been changed accordingly.

The Code determines our approach to ethical business practices, human and labour rights and environmental

In 2023, Enersense became a member of the E-mobility association and the European wind power association WindEurope.

E-mobility is an electric transport sector association which represents its member companies and supervises their best interests. The association's key goals include cleaner urban transport, smart electric vehicle charging to support the energy system, and zero-carbon and zero-emission passenger transport by 2045.

The goal of WindEurope is to be the mouthpiece of the wind power sector, support the benefits of the sector and advocate wind power generation across Europe. Enersense is also a member of the Finnish Wind Power Association, which seeks to safeguard and promote wind power in Finland. Sirpa Smids, Vice President of Renewable Energy at Enersense, was elected to its Board of Directors in April 2023. Lauri Lammivaara, Vice President of Wind Power Development at Enersense, was appointed a deputy member.

In 2023, we became a member of the E-mobility association and the European wind power association WindEurope.

THE ALIGNMENT OF OUR BUSINESS Key guiding sustainability OPERATIONS WITH THE UN SDGS themes for operations

ENERSENSE'S SUSTAINABILITY WORK focuses on sustainable work, sustainable business and environmental responsibility. This includes occupational safety and other personnel matters in our own operations, implementing the energy transition by helping customers build a sustainable energy system and promoting renewable energy production as part of a sustainable value chain, as well as greenhouse gas emissions in our own operations and the value chain.

In addition to the internal material sustainability themes, we are committed to promoting UN Sustainable Development Goals 7, 8, 9, 11 and 13 in our operations.

Our business contributes to the UN Sustainable Development Goals

The analysis carried out by the technology company Upright Project describes how well Enersense's business contributes to the UN's Sustainable Development Goals. The analysis is based on the alignment of our products and services with each of the UN SDGs. In light of the results, our operations are particularly wellaligned with goals 7, 8 and 9.

We contribute to goal 7 by developing renewable energy projects and our goal is also to own and produce renewable energy. We contribute to goal 8 with our ambitious growth and profitability targets and we are increasing the share of those business operations that belong to the EU environmental taxonomy. Diversity, equality and inclusion are important parts of our management and ethical principles. We contribute to goal 9 by building a sustainable energy system and promoting the production of renewable energy forms and innovative solutions especially related to charging infrastructure for electric vehicles and offshore wind power foundations.

We contribute to goal 11 by securing the functioning of electricity infrastructure in society and we contribute to reducing the adverse environmental impacts of cities and towns by providing services and technology for charging infrastructure for electric vehicles. We contribute to goal 13 by implementing services and projects related to the energy transition and data communications infrastructure, through which we are strongly involved in combatting climate change. At the end of 2023, we made a commitment to the SBT initiative and will set science-based emissions reduction targets by the end of 2025.

of our revenue contributes to goal 7

25.3%

of our revenue contributes to goal 8

57.7%

of our revenue contributes to goal 9

18.2%

of our revenue contributes to goal 11

17.3%

of our revenue contributes to goal 13

The analysis of the alignment with the UN SDGs was conducted by the technology company Upright Project in January 2024. The analysis is based on the alignment of our products and services with the 17 UN SDGs and the 169 targets under the SDGs, in particular focusing on those applicable to companies. In the method, products and services are classified as misaligned, neutral, and aligned.

Sustainable work

Enersense's success is based on highly competent, committed and motivated employees. Our goal is to be a workplace community that provides a good, healthy and safe working environment, as well as opportunities for competence development and learning.

THROUGH GOOD MANAGEMENT and the principle of continuous improvement, we are seeking to ensure that we are able to provide our customers with high-quality customer service, and that the success factors related to personnel are realised in the short and long term.

We want to ensure the development of uniform operating methods and the creation of a good working culture and a pleasant and safe working environment in many ways. We invest now and in the future in the learning and development of our personnel, as well as in the development of supervisor work and leadership. Our goal is to create a strong and forward-looking workplace community and a working culture that unites all Enersense's employees. Safety at work is paramount to us, and we are working daily to ensure a safe working environment for our personnel. Employees' wellbeing at work, work ability and competence development, as well as equality and diversity, are an integral part of our working culture at Enersense.

Enersense's personnel

Enersense mainly operates in Finland, Estonia, Latvia and Lithuania. In 2023, we had an average of 1,942 (1,836) employees.

The growth in business volume was also reflected in the number of personnel, which increased by 7% year-on-year.

At the end of 2023, Enersense's total head count was 1,982.

Person-years (average over the period)

	1–12/2023	1–12/2022
Smart Industry	716	638
Power	203	172
Connectivity	355	347
International Operations	609	590
Other	59	90
Group total	1,942	1,836

We employ dozens of future professionals annually

In 2023, Enersense once again employed students in different fields in various tasks in the industrial, energy and IT sectors. In addition to summer jobs, Enersense provides various positions for trainees and young students familiarising themselves with working life, totalling almost 70 positions across Finland and in Estonia and Latvia in 2023. Enersense's summer jobs and training positions range from telecommunications installation and substation design to supervisory activities.

Enersense participates in Oikotie's "Vastuullinen kesäduuni" (Responsible summer job) campaign, as a result of which we are committed to following the seven principles of good summer jobs, including wages, wellbeing and induction, among other topics.

"For many, a summer job is their first contact with working life, and we want to provide learning opportunities and an enjoyable work environment.

Our aim is to provide everyone with positive work experiences," says Hanna Reijonen, Senior Vice President, HR at Enersense.

Ingmar Horelli, who started as a summer trainee in the New Business unit at the beginning of June, learned many new things during the first few weeks.

"The first weeks here at Enersense were very interesting. I learned a lot about the energy transition and the role of renewable energy in a carbon-neutral society," says Ingmar.

Personnel and a common working culture

Our goal is to create a strong and forward-looking workplace community and an organisational culture that unites all Enersense's employees.

DURING 2023, we focused on developing and implementing its strategy, common ways of working and values. Our goal is to create a strong and forward-looking workplace community and an organisational culture that unites all Enersense's employees: long-term personnel, new employees who have joined the company through acquisitions, for example, and colleagues in different countries of operation.

We revised and modernised our personnel survey in 2023 to ensure that feedback from the personnel can be collected in a more agile manner, and that the results can be used for development purposes, and to enable knowledge-based management. The results of the personnel survey conducted in 2023 reflected the personnel's confidence in the company's operations, with a commitment index of 3.7/5 (international benchmark 3.8/5). The revised personnel survey provides a good basis for the further development of the employee experience.

During 2023, we introduced a new HR system to support an open and transparent way of working across the company. With the new HR system, Fusion People, all supervisors and employees have access to their own personal data in the system. The in-

troduction of the new HR system is also a major step towards a common management culture, where supervisors, employees and HR are better able to support the achievement of common goals, transparency and clarity and ensure the best possible employee experience.

The results of the personnel survey also reflected appreciation and strong support among colleagues.

An enjoyable work environment attracted Getlin to become an electrician

Enersense operates in traditionally very male-dominated sectors, and we seek to increase the percentage of women in our business areas in the future. We wish to encourage everyone to select the career path they want, and we do all we can to ensure that everyone has the same skills and capabilities to work in all positions at Enersense, regardless of the gender. Getlin Juhe, a summer employee in Enersense's Estonian subsidiary, was the only female electrician at Enersense in Estonia during the summer.

"I got interested in this sector in comprehensive school when I had the opportunity to watch my father work for a day. I was able to visit various substations and participate in the laying of an underground cable and was also impressed by the enjoyable and open work environment outdoors," says Getlin who has previously worked in the restaurant sector.

Getlin also carried out similar tasks in the summer of 2022 at Enersense. She provides assistance during electrical installations, maintenance and repairs.

"What attracts me about this work is that each new day is different from the last and full of new interesting challenges and tasks that need to be solved. I believe that complicated challenges are ideal for learning and self-development," says Getlin.

Traditionally, electricians are predominantly men, but Getlin believes that the world is changing and the sector increasingly attracts different types of people.

"The world is constantly changing, and jobs and people in different sectors are changing with it. Electricity is vital for all of us, and new pairs of hands are always needed in the sector. If you want to work in this sector, do not hesitate to apply for a job," says Getlin in encouragement.

"Electricity is vital

for all of us, and new

pairs of hands are

always needed in

the sector."

Occupational safety

Employees are our strongest resource, and we aim to continuously develop into an ever safer working community. One of our key goals include providing all the company's employees, contractors and visitors with a safe and healthy work environment.

WE ARE COMMITTED to continuously making the workplace safer and healthier. That is why we are focusing on measures concerning the personnel, the working environment, the workplace community and the related processes, as well as the management. Safety and health are promoted as part of day-to-day work at Enersense in all its projects and countries of operation. The goal is for people to enjoy their work and retire in good health.

In 2023, we adopted an occupational safety, environmental, quality and corporate security management system as part of the project to update the Group's enterprise resource planning system. The system is being actively developed to meet the HSEQ needs of all businesses as well as possible. In 2023, we also integrated new businesses and operations into Enersense's occupational safety practices.

The operating model for occupational safety work was revised in 2023, and we established a Group-wide cooperation network. The goal is to further develop the occupational safety culture, continuously improve common practices, and share best practices and information between business operations.

Enersense also has a HSE standard for suppliers as part of supply chain management. The standard seeks to ensure shared practices between Enersense and its suppliers, as well as a safer working environment for everyone. The goal is to ensure responsibility and transparency throughout the supply chain (client – main contractor – subcontractor). The standard is part of Enersense's supplier approval process, whereby suppliers commit to complying with the standard's guidelines.

Monitoring occupational safety targets

In 2023, Enersense's LTAF (lost time accident frequency, accidents leading to an absence of at least one day) was 12.1 (8.0), and its TRIF (total recordable injury frequency) was 21.2 (14.5). Unfortunately, both figures developed unfavourably in 2023. Hence, the investments in improving safety at work continue. Plans for the most important development measures for 2024 have been made to achieve the target levels.

Monitoring occupational safety targets

Own personnel	2023	2022	change-%
LTAF	12.1	8.0	51.3
TRIF	21.2	14.5	46.2

Enersense employees learned first aid skills

Tommi Salo, Quality and Safety Manager at Enersense, taught first aid skills to Enersense's employees at our Esterinportti office in spring 2023.

"You never know when you need to administer first aid. Incidents take place without warning both inside and outside the workplace. First aid skills are extremely important," said the Enersense employees who participated in the course.

Tommi Salo, the course trainer, is an Elite level trainer licensed by the Emergency First Response organisation. Tommi has provided training for hundreds of employees of Enersense and its customers for several years now. Emergency First Response is one of the most rapidly growing first aid training organisations in the world.

The following skills were taught during the course:

• Cardiopulmonary resuscitation – chest compressions • Cardiopulmonary resuscitation – chest compressions • Use of an automated external defibrillator (AED)

Assessment of the situation
Protection
First assessment
combined with artificial ventilation
Stopping extensive bleeding / treating burns
Shock treatment
First aid for spinal injuries
unconscious

• An adult at the risk of suffocation, conscious and

Safety walks improve occupational safety cooperation

The management's safety walks are an integral part of the improvement of occupational safety and health at Enersense. They provide the management with up-to-date information about safety practices, worksites and locations, as well as an opportunity to get to know the personnel and hear their thoughts and ideas. The fundamental purpose of safety walks is to improve occupational safety and health by listening to the personnel and sharing best practices.

"Improving occupational safety and health is very important to us. We want to hear our personnel's ideas, suggestions and concerns, and promote cooperation in occupational safety and health between internal and external stakeholders. Safety walks offer an excellent opportunity to get to know people and their diverse tasks and to share best practices," says Tommi Manninen, Senior Vice President, Communications and Public Affairs.

While safety walks mainly focus on the positives, any identified deficiencies and non-conformities will be discussed and processed in accordance with regular processes. For example, the following can be discussed during safety walks:

• Identifying risks – What could happen in this

• Identifying safe ways of working – How could • Improvement proposals – Should something be

work?
this risk be prevented?
changed?

The goal is that each member of the Group Executive Team participates in two safety walks each year. This year, safety walks have been held at the worksite of the Kruunuvuori bridge project and at the Salmisaari power plant in Helsinki, at the worksite of the Leväsuo–Isokangas high voltage line in Oulu, and at the Mäntyluoto shipyard in Pori.

Wellbeing at work and work ability

At Enersense, we are committed to responsibility and to fostering wellbeing and health in all our business operations. Our employees' safety and health are our top priority in our day-to-day work.

IN 2023, we continued our strong commitment to ensuring our personnel's wellbeing and maintaining their ability to work. We believe that healthy and motivated employees are the key to our success. This is why we have invested significantly in work ability management to ensure sustainable growth for our organisation. In 2023, our operations were guided by the key priorities set for operational development in 2022–2023:

effective and proactive knowledge-based work ability management;
prevention of musculoskeletal disorders; and
engagement of business areas more actively in everyday work ability management.

During 2023, we invested especially in supporting everyday work ability management. Our measures focused on the provision of training and induction for supervisors and implementing the sustainable work ability model as an active daily management tool.

We emphasised closer local cooperation with occupational healthcare. We adopted a lightweight work ability negotiation model, the goal of which is to provide more effective support for returning to work and coping at work and increase mutual interaction. The number of work ability negotiations increased, and we were able to tackle work ability challenges earlier than before. Furthermore, we invested in maintaining and improving the ability to work using preventive signals and sick leave monitoring. Our goal is to reduce sick leave and build a work environment that supports the personnel's health. In 2023, we enhanced workplace survey activities by adopting job-specific workplace surveys.

At Enersense, we are proactive in supporting mental wellbeing. Our personnel can access the "Mielen chat" (Mental chat) and "Mielen sparri" (Mental sparring) services for low-threshold support and have an opportunity to use occupational health psychologist services and brief psychotherapy, if necessary. We expanded our welfare coaching services to also cover the areas of mental wellbeing. To support musculoskeletal health, we increased the role of an occupational physiotherapist in health check-ups. The entire personnel can book direct appointments with an occupational physiotherapist, and we supported access to the service in various communication channels.

The measures carried out during the year mainly concern our personnel in Finland, and they reflect our commitment to ensuring the wellbeing of our employees and maintaining their ability to work. We will continue our active work in these areas to promote the comprehensive wellbeing of Enersense and our personnel.

Monitoring targets for wellbeing at work and work

ability

The sickness absence rate (proportion of days used for sickness absences) in Enersense's operations in Finland in 2023 was 3.4 (3.5)%, and the health rate (proportion of employees with no sickness absences during the year) was 51 (43)%. During 2023, sick leave due to infections stabilised compared to 2022 when coronavirus-induced sick leave increased significantly.

Monitoring targets for well-being at work and work ability

(operations in Finland)

Own personnel	2023	2022	change-%
Sickness absence rate	3.4	3.5	2.9
Health rate	51	43	17.6

We piloted the bicycle benefit as a new employee benefit

In May, Enersense piloted the bicycle benefit as a new benefit for our employees. It was made available for a test group, which consisted of 20 employees from different parts of the organisation. The purpose of the test group is to collect information about and experiences of the benefit.

"The test group was established in May based on the personnel's requests, and we will continue the current model at least until the beginning of 2024. We will collect information about the effectiveness of the benefit from the group's members during autumn," says Henriikka Seppälä, Head of HR Services at Enersense.

The use of the bicycle benefit has increased in recent years, and its popularity is expected to continue. Using a bicycle to commute is an easy way to increase the amount of physical exercise and thereby improve coping, wellbeing and the ability to work. Kari Yli-Kivistö, a member of the test group, uses his benefit actively, as he commutes by bicycle every week.

"I mainly use my bicycle to commute two to three times a week, depending on how I am feeling, with the distance from my home to work and back being 60 kilometres. In June, I recorded a total of 650 kilometres," says Kari.

Employees can also use their bicycle during their time off which increases the attractiveness of the benefit. Joonas Rantala, another member of the test group, says that he acquired his bicycle specifically for recreational purposes. The benefit has inspired him to exercise more every day.

"I mainly use my bicycle during my time off. In addition to shorter rides, I have on many occasions packed the rest of my family in our car and sent them to our cottage, while I have

followed them on my bicycle. The 50-kilometre route on forest roads is a fun ride using an electric mountain bike. As more and more of my friends have also bought e-bikes, it is nice to ride on various trails together. This benefit is simply amazing, and I believe that it increases the amount of exercise and improves wellbeing, no matter whether it is used for commuting or recreation," says Joonas.

Another indication of the increased popularity of the benefit is that it already attracts job applicants during recruitment.

"The bicycle benefit has raised significant interest among the personnel, and based on feedback on recruitment, it is also one of the factors sought by job applicants in the recruitment phase," says Henriikka Seppälä.

Image: Epassi

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 59

Break exercise proven to have a positive impact on wellbeing at work

Break exercise during the working day has been proven to improve cognitive abilities, creativity and concentration. Enersense wants to invest in wellbeing and health and provides the BREAK PRO app for its employees.

The app features more than 300 quick and effective exercises, with video instructions, for different parts of the body that can easily be done during the working day. Users can also set reminders in the app to help them remember to exercise at certain intervals. The app includes instructions and tips both for sedentary and physical work.

Break exercise is especially important for everyone doing sedentary work, as they usually sit for nine hours a day on average. A long sedentary time has many negative effects, including slower blood circulation and metabolism, lower energy levels, muscle and joint pain, and a slumped posture. Break exercise of a few minutes alone helps effectively prevent these negative effects.

Break exercise not only produces direct benefits but it also has a long-term impact on physical and mental wellbeing. Its long-term benefits include better coping at work and a good straight posture. Break exercise also prevents musculoskeletal disorders. In addition, regular exercise improves joint mobility and maintenance.

Often, break exercise is found important for those carrying out sedentary work in an office, but it also produces positive benefits for everyone doing physical work. For example, a short warm-up before starting to work can prevent injuries and accidents.

"A short warm-up to start the day increases safety at work. The large muscles in legs and the back should especially be warmed up to avoid any injuries," says Janne Rajakallio, occupational physiotherapist and CEO of Break Pro Finland.

Competence and development at work

We have identified the systematic management of the personnel's competence as a critical factor for future success.

THE DEVELOPMENT OF EMPLOYEES' COMPETENCE and professional skills is critical for ensuring Enersense's operational capacity and the quality of its services for customers, as well as employees' wellbeing and safety. It is therefore important to ensure that our personnel meet, maintain and continuously develop the competence and qualifications required for their tasks. In terms of business needs, competence development focuses on statutory and licensed training, as well as on the development of supervisory work and management. In addition to training, the competence necessary for work duties can be developed through learning on the job and online learning and by sharing information. By deepening and expanding competences, it is also possible to promote internal mobility and career opportunities within the Group.

The goals for development at work, as well as competence development needs, are discussed with employees as part of regular development and wellbeing discussions. The ways in which the competence required currently and, in the future, will be developed are negotiated by means of discussions between the supervisor and the employee.

At Group level, we have identified the systematic development of our employees' competence and management as a factor critical for future success, and the company will invest in such development over the next few years. In 2023, a development project for the senior management was carried out in cooperation with an external partner to identify leadership capabilities, particularly from the perspective of future leadership.

Developing of our employees' competence and professional skills is critical for ensuring our operational capacity, the quality of our services, and our employees' wellbeing and safety.

In connection with this, the strategic capabilities of each business were assessed to identify what kind of expertise is needed now – and, most importantly, will be needed in the future – to implement the company's strategy. As part of the revised personnel survey, we also received useful information about the strengths and development needs of supervisory work in the organisation more broadly. The next step is to expand competence and management development to meet the need for a more systematic approach in these areas.

Respect for human rights

Enersense respects internationally recognised human and labour rights in all of its operations and promotes their implementation.

THE COMPANY HAS ESTABLISHED various due diligence and other processes to ensure the fulfilment of human rights as follows:

The company has prepared its Code of Conduct, approved by the company's Board of Directors, which specifies the common principles that Enersense's employees and management must follow in their daily activities. The Code of Conduct is publicly available on the company's website.
Code of Conduct training is mandatory for all employees.
Enersense requires all its suppliers to abide by good business practice and comply with Enersense's current Supplier Code of Conduct. Suppliers must also ensure that their suppliers and subcontractors comply with Enersense's Supplier Code of Conduct or the supplier's own, similar code when supplying products or providing services to Enersense. Enersense monitors compliance with the Supplier Code of Conduct and audits its suppliers regularly. The Supplier Code of Conduct is publicly available on the company's website.

Enersense has not identified significant risks related to human rights violations in its operations. Any risks associated with human rights are related to the supply chain of Enersense and its Group companies. Enersense seeks to minimise these risks by

selecting its partners carefully and requiring compliance with its Supplier Code of Conduct. Partner companies' operations are also audited as part of the risk management processes regarding the supply chain.

The company has not been contacted or investigated by the OECD's National Contact Point, the Business and Human Rights Resource Centre or other similar bodies. The company has not been informed of nor has it reason to suspect that its operations have resulted in any human rights violation.

Enersense does not condone any form of violation of human and work-related rights.

Sustainable business

A significant proportion of our business operations contributes to the achievement of social and global goals in sustainable development.

BUILDING A SUSTAINABLE ENERGY SYSTEM and promoting renewable energy production through our services are at the core of our business operations. In the industrial sector, we serve as a partner for our customers, steering operations in a more efficient and sustainable direction. We are also building critical energy and information network infrastructure for society and are extending the life cycle of built infrastructure through service and maintenance operations.

In 2023, 55 % of our revenue was EU taxonomy eligible. We aim to increase the share of revenue that belongs to the EU environmental taxonomy to 65–70% in 2027.

In accordance with our strategy's focus areas, we seek new business particularly from offshore wind power, especially in wind power plant foundations, project development, ownership and own energy production of onshore wind power and solar power as well as sustainable mobility.

Enersense's own energy production target by 2027 is 600–700 MW of which 600 MW is wind power and 100 MW solar power.

We support the goals of the EU Green Deal

ENERSENSE'S BUSINESS OPERATIONS significantly contribute to enabling the energy transition, and the company supports the achievement of the goals of the EU Green Deal. Our goal is to increase the share of revenue that belongs to the EU environmental taxonomy to 65–70% in 2027.

We promote climate change mitigation through operations related to the generation of electricity using wind power and hydropower, the transfer, distribution and storage of electricity, and the provision of charging solutions for electric vehicles. We also provide operating and maintenance services for our customers at plants that generate electricity, heating and cooling and store thermal energy. Of our operations, engine maintenance services promote the environmental goal of transitioning to the circular economy.

In 2023, 55 % of Enersense's revenue*) belonged to the EU environmental taxonomy.

*) Activities that belong to the EU environmental taxonomy. Enersense's taxonomy report in accordance with the Taxonomy Regulation will be presented in the Board of Directors' report for 2023.

The share of our revenue belonging to the EU environmental taxonomy in 2023 was

55 %

Significantly increased wind power investments are reflected in busy substation construction.

Increased wind power investments speed up substation expansions

Significantly increased wind power investments are reflected in busy substation construction and also in the expansion of existing substations. The main grid company Fingrid will invest roughly EUR 4 billion in the main grid during the next ten years, enabling dozens of substation projects and various high voltage line projects across Finland.

Enersense won the project to expand the Simojoki substation in Fingrid's public bidding process in September 2022. The project was started at the end of the year by setting a detailed project schedule and through procurement, and it will be delivered to the client in December 2024. The Simojoki substation expansion carried out in the municipality of Simo on the border of the regions of Lapland and Northern Ostrobothnia enables the connection of the new wind farms planned in the neighbouring areas to the main grid.

The Simojoki area is already a significant hub for wind power connected to the main grid, and the intensified construction of wind power increased the need for the expansion. Investments in wind power construction can be seen concretely in this project, as the need for capacity has doubled from expectations in only a few years.

High-power electric vehicle chargers made by Enersense carry the Key Flag

Enersense Charging Oy develops and manufactures high-power chargers for electric vehicles. Its chargers are designed and manufactured in Finland, and they carry the Key Flag symbol as an indication of their domestic content.

Domestic content is a significant factor in Enersense's charging operations, and the use of the symbol is a cause of pride.

"The manufacture of our chargers in Finland promotes economic growth in Finland and creates jobs for Finnish people. The Key Flag symbol is very important to us, and we are proud of it. It is an indication to our customers that we are committed to domestic production and a high level of quality. It also sets us apart from our foreign competitors. Domestic content is a key factor for many clients in Finland."

The Key Flag is an indication of Finnish work and can be granted for products and groups of products made in Finland or services provided in Finland. Such products, groups of products and services must have a domestic content of at least 50 per cent. The symbol is granted by the Key Flag Symbol Committee of the Association for Finnish Work. The Key Flag supports and promotes employment in Finland and conveys reliable information about domestic content and responsibility.

"We want to let our customers know that we are committed to responsibility and sustainable development. The symbol is also an indication of Finnish innovation and engineering skills."

Sustainability in the supply chain

We encourage our suppliers to develop and promote their operations in a socially and environmentally sustainable direction.

AT ENERSENSE, a supplier is a partner that delivers products or services directly or indirectly to Enersense or provides products or services under the Enersense name. Suppliers are an integral and important part of Enersense's supply chain and have a significant impact on its overall quality.

We cooperate with partner companies of all sizes and are always looking for innovative new suppliers from the open global market that comply with our sustainability principles. In 2023, the total purchases increased by 25% year-on-year and the total value of the purchases was approximately EUR 250 (200) million.

The continuous development of Enersense's supplier network ensures a cost-effective and high-quality service level while also making use of new products and technologies and complying with sustainable procurement principles. We engage in fair competition in all our procurement. In connection with the supplier audits, it is ensured that the supplier is committed to Enersense's Supplier Code of Conduct and meets the requirements for processes, quality and production. A total of 15 supplier audits were carried out in 2023.

Effective risk management is a prerequisite for an efficient supply chain. At Enersense, risk assessment is used to verify suppliers' backgrounds, ownership, compliance with regulated requirements, quality and efficiency of the supply chain, cost effectiveness as well as maintaining healthy competition. Enersense verifies the backgrounds of its subcontractors and other partners and their business operations before starting any cooperation in accordance with Enersense's procurement process through the procurement system in compliance with the procurement process and guidelines. Recent geopolitical tensions and increased uncertainty about the development of the global economy have increased the importance of risk management in procurement.

The Group is undergoing an extensive renewal of its ERP system, which means that we are phasing out the previous systems and concentrating all ERP and procurement in one system.

Enersense's supply chain management

SUPPLIER CLASSIFICATION	APPROVAL OF SUPPLIERS	ASSESSMENT OF SUPPLIERS	SUPPLIER DEVELOPMENT	SUPPLIER DATA MANAGEMENT
Suppliers are classified in three categories (A, B and C) based on business criticality and risks.	Basic approval criteria: • Enersense's Supplier Code of Conduct • Statutory requirements • Enersense's HSE standard	Conformity of operations and quality control: • HSEQ audits • Sustainability reports • HSE self-assessments	Continuous development of critical suppliers HSEQ aspects • Successful cooperation • Deviations • Development needs	Supplier data management insystems and verification of suppliers' eligibility, e.g. liability reports

Enersense is ready for green steel

Steel is one of the key building materials used in society. At the same time, its production accounts for roughly 28% of all industrial emissions globally and 7–9% of all emissions that contribute to global warming. Steel is also one of the most purchased materials at Enersense in its role as a builder of the energy infrastructure and accounts for a significant part of its indirect emissions. Enersense uses steel in high voltage line towers and various steel structures manufactured at the Mäntyluoto shipyard.

"Steel is one of the most significant materials for us as a builder of wind turbines and the energy infrastructure in general. At Enersense, we purchase thousands of tons of steel every year for our customer projects. It is important for us to ensure that our whole value chain generates as low emissions that accelerate global warming as possible," says Tommi Manninen, Senior Vice President, Communications and Public Affairs at Enersense.

The transition of steel production towards solutions that generate lower emissions plays a crucial role in the management of the climate crisis.

"At Enersense, we aim to pave the way for more sustainable steel production. Because this transition calls for changes throughout the steel industry's ecosystem, companies like us need to lead the way. This is why we joined WWF Finland's Ready for Green Steel campaign and announced our willingness to support the change," says Manninen.

The goal of the Ready for Green Steel campaign coordinated by WWF Finland was to encourage the steel industry's companies to accelerate a positive change. By bringing significant steel buyers, financial institutions and investors together, the campaign aimed to show that companies are ready to prefer low-emission steel in place of carbon- based production that accelerates global warming.

"The transition to cleaner steel production is not only a necessity to control the climate crisis but also an opportunity to build sustainable success with our customers and other partners. We want to teach the markets and be in the front lines to give our customers the opportunity to procure green steel," says Manninen.

Net impact analysis

The net impact analysis demonstrates the significant positive impact of Enersense's business on the surrounding world.

WE STUDIED THE NET IMPACTS of our core business operations with the help of Upright Project, a technology company. The net impact analysis is based on products and services belonging to Enersense's core business operations, taking account of the impacts generated throughout the value chain.

According to the analysis, Enersense's Net impact ratio in 2023 was +46 (41)%, which is among the top 23 (29)%, taking into account all globally modelled companies. Due to the strong growth in revenue, our positive impacts also increased compared to last year. The highly positive net impact ratio indicates that we use a modest amount of resources to create a wide range of positive impact on society, knowledge, health and the environment. Significant positive impacts are generated especially through our services related to the maintenance and construction of societally important electrical grids and telecommunications networks, for example.

Enersense's impact in four main categories

Society: Our most significant positive impact is found within the society category. Our business creates positive impacts on societal infrastructure through services supporting electricity

The science-based net impact profile measures our impact in four main categories: society, knowledge, health and the environment. The bars on the left illustrate the resources used, and the bars on the right illustrate the positive impact we create using these resources. The net impact analysis was conducted in January 2024.

Net impact profile

IMPACT	NEGATIVE	SCORE	POSITIVE
Society	-0.1	+5.3	+5.4
Jobs		+0.9	+0.9
Taxes		+1.4	+1.4
Societal infrastructure		+3.1	+3.1
Societal stability & understanding among people	-0.0	+0.0	+0.0
Equality & human rights	-0.0	+0.0
Knowledge	-0.9	-0.0	+0.8
Knowledge infrastructure		+0.5	+0.5
Creating knowledge		+0.2	+0.2
Distributing knowledge		+0.1	+0.1
Scarce human capital	-0.9	-0.9
Health	-0.4	-0.0	+0.4
Physical diseases	-0.2	-0.1	+0.1
Mental diseases	-0.2	-0.1
Nutrition		+0.0	+0.0
Relationships		+0.2	+0.2
Meaning & joy		+0.1	+0.1
Environment	-2.8	-1.7	+1.0
GHG emissions	-1.3	-0.7	+0.7
Non-GHG emissions	-0.4	-0.1	+0.3
Scarce natural resources	-0.2	-0.2
Biodiversity	-0.6	-0.6
Waste	-0.3	-0.3	+0.1
		+46%	Net Impact Ratio Value set: Equal weights

generation and distribution such as maintenance of wind powerplants. We also contribute to society through taxes paid and jobs created.

Knowledge: Our services related to telecommunications networks create significant positive impacts in terms of knowledge infrastructure. Through enabling the efficient transfer of knowledge between people, machines and organizations, we also play a role in the creation and distribution of knowledge. On the other hand, we use scarce human capital in our business operations, which represents the alternative cost of the highly skilled workforce and is reflected as a negative impact in our profile.

Health: While our impact related to human health is small in general, positive impact on relationships stands out due to our contribution to telecommunication networks, which help people stay in contact and maintain social relationships.

Environment: Our businesses have positive impacts on the environment. The most significant positive impact stems from our renewable energy services, such as design, construction, operation and maintenance of wind power. Our negative environmental impacts are largely related to greenhouse gas emissions created across the value chain. In our operations we also cause environmental burden as we use natural resources and create waste.

Our net impact profile can be viewed in more detail at Upright Project's platform.

The profile is based on Upright Project's net impact modelling, which uses machine-learning technology to process millions of scientific articles as the main source of information. The quantification model measures companies' overall impact on the environment, people's health, society and the creation and sharing of knowledge. Read more about the method: www.uprightproject.com.

A comparison of our net impact results

A comparison of our net impact results with other analysed companies listed on Nasdaq Helsinki reveals how significant positive impact Enersense's operations have on the surrounding world. Enersense's Net impact ratio in 2023 was +46%, whereas the average net impact result of the Nasdaq Helsinki reference group was -10%.

Enersense's positive impact on society is highlighted in the comparison especially because of its products and services related

to the infrastructure of society. Similarly to other companies on the Nasdaq Helsinki main list, we use scarce human capital as a resource, but our services related to telecommunications networks significantly contribute to knowledge infrastructure and thereby lead to a greater positive impact than that of the companies in our reference group. At the same time, the environmental burden caused by our business operations is significantly smaller than that of the reference group on average.

The net impact profile measures our impact in four main categories: society, knowledge, health and the environment. The bars on the left illustrate the resources used, and the bars on the right illustrate the positive impact created using these resources.

Comparison of net impact profiles

-0.3	+4.4		+4.7

	-0.5	+0.4

	-0.2	+0.6

Enersense +46% Nasdaq Helsinki -10%

Economic impact

IN 2023, our revenue from customer business operations was EUR 363.3 million. During 2023, we sold our share in a wind farm we had developed, as well as a 100% -owned subsidiary. The sales gains recognised for these totalled EUR 2.0 million. The direct economic value generated by Enersense was EUR 365.4 million.

The direct economic value distributed by Enersense to its stakeholders for the year 2023 totalled EUR 364.6 million. The most significant part of this consisted of payments for materials and external services which totalled EUR 204.5 million. Employee benefit expenses totalled EUR 115.3 million. In 2023, we had a total of 1,942 employees (average for the year). Other operating expenses totalled EUR 36.4 million and consisted of office and building expenses, ICT software and equipment expenses as well as voluntary indirect personnel expenses such as expenses related to employees' working capacity maintenance and recreational activities.

Income tax to the public sector totalled EUR 0.6 million in 2023. Expenses to the financial sector totalled EUR 7.8 million.

The Board of Directors proposes to the AGM of 2024 that the Board of Directors be authorized to decide on the distribution of funds to shareholders from the invested unrestricted equity reserve as a return of capital of at most EUR 1.6 million.

Tax footprint

TAX FOOTPRINT DESCRIBES the tax and other payments of fiscal nature that we generate to the society. Enersense pays its taxes in the countries in which their actual business operations take place according to local legislation. We do not choose our operating countries based on taxation criteria and we do not practise aggressive tax planning. The company has not been convicted of tax evasion.

We are committed to accountability also in tax matters. The company regards tax management and compliance with tax regulations as a key part of supervision. The company has internal guidelines for the management of tax risks. We ensure compliance with tax management and regulations by the following means:

Enersense has OECD-compliant internal transaction guidelines that help the company meet the requirements of tax law in national and international transactions between Group companies;
Enersense is liable to pay VAT and is registered in the Finnish Tax Administration's prepayment register; and
Enersense engages in proactive dialogue with the Finnish Tax Administration regarding tax matters subject to interpretation.

The company does not report small amounts of paid and remitted other taxation items.

Paid taxes for the fiscal year, EUR million

Paid taxes, total	3.0
Other taxes	0.1
Income taxes	2.9

Remitted taxes for the fiscal year, EUR million

Paid and remitted taxes, total	56.2
Remitted taxes, total	53.2
Withholding taxes	27.2
Value added taxes, procurement (-)	-80.3
Value added taxes, sales (+)	106.2

Prevention of bribery and corruption

ENERSENSE OBSERVES absolute zero tolerance regarding bribery and corruption. Enersense's Code of Conduct and Supplier Code of Conduct provide guidelines on the prohibition of bribery and corruption. These guidelines are supplemented by Enersense's anti-bribery and anti-corruption instructions and principles.The company has developed and implemented internal controls, ethics and compliance programmes and other measures to detect and prevent bribery and corruption. We ensure compliance with the anti-bribery and corruption policy by the following means:

• Enersense has a separate anti-bribery and anti-corruption policy, which has been approved by the Board of Directors and

• Enersense communicates its anti-bribery and anti-corruption policy in connection with its other policies, which are all

was updated in 2023.
available in the company's intranet.

• The company's legal department also provides anti-bribery and anti-corruption policy training regularly for target groups determined in cooperation with the company's business units.

Neither the company nor any of its management members (including top executives of the company's subsidiaries) have been convicted of bribery or corruption.

Enersense observes absolute zero tolerance regarding bribery and corruption.

Environmental responsibility

Enersense's environmental operations are guided by an environmental management system that complies with the ISO 14001:2015 standard, the certification of which is maintained through regular audits. We are committed to the continuous improvement of the environmental system and our environmental efforts.

ENERSENSE'S BUSINESS OPERATIONS help its customers build a sustainable energy system and promote the production of renewable energy. Enersense's most significant positive environmental impacts arise from its business operations. We are committed to continuously improving our environmental measures and reducing the adverse environmental impacts of our operations.

At the end of 2023, we made a commitment to the Science Based Targets initiative (SBTi) and will set science-based near-term emissions reduction targets by the end of 2025. The SBTi-compliant emissions reduction targets support the Paris Agreement's policy of limiting global warming to 1.5 degrees, and the measures cover Enersense's entire supply chain.

No environmental damage or accidents were detected in connection with Enersense's operations in 2023.

Environmental management at Enersense

At Enersense, environmental management, operations and monitoring are based on an environmental system that complies with the ISO 14001:2015 standard, the certification of which is maintained through regular audits. Enersense's management system

based on certified environmental management (ISO 14001:2015), occupational safety and health (ISO 45001:2018) and quality management (ISO 9001:2015) standards supports the fulfilment of a responsible and sustainable operating culture.

Enersense's environmental policy is an integral part of our environmental system and defines the basic principles based on which the environment is addressed in everything we do. The policy defines our will to reduce our adverse environmental impact. Accordingly, we are committed to the continuous improvement of the environmental system and our environmental efforts.

95 %

of Enersense's operations, measured by revenue, were covered by the ISO 14001:2015 certificate.

Building a new high voltage line while protecting biodiversity

We are building a 26-kilometre 110 kV high voltage line for Fingrid between the Leväsuo substation in Oulu and the Isokangas substation in Ii. The new high voltage line is being built in conjunction to the current aged line, and an environmental impact assessment was conducted to assess and address the project's environmental impact. An environmental impact assessment focuses on the area's vegetation, nature types, species and cultural and landscape values, and its purpose is to reduce or prevent any adverse environmental impact of projects.

Some 90 nature sites were identified along the route of the Leväsuo–Isokangas C project that cause irregular activities to protect nature and biodiversity and prevent any losses.

"For example, worksites include areas that can only be accessed from a certain direction or during winter so that frost and snow protect the ground from damage caused by machinery. In addition, some sites are home to bird nesting areas, as a result of which no work can be carried out there during the nesting season. Any sensitive landscape sites and areas with vegetation requiring protection must also be kept untouched. We aim to do as much work as we can at any one time to reduce the number of visits to each site," says Paavo Kaija, Project Manager for HSEQ.

The use of chemicals and the risk of incidents will be minimised in the same way as at all other worksites such as by optimising the equipment used, inspecting machinery every day, and removing machines from the most sensitive areas for the night.

"At the Leväsuo worksite, the consideration of environmental issues, work schedules and planning play an emphasised role, as it is home to a larger number of sensitive environmental sites than normal. Work teams are notified of the issues to be addressed and the methods to be used at the kick-off meeting held before each work stage and during the walkthrough held every morning," says Kaija.

Greenhouse gas emissions and energy consumption

AT THE END OF 2023, we made a commitment to the Science Based Targets initiative (SBTi) and will set science-based nearterm emissions reduction targets by the end of 2025. The SBTicompliant emissions reduction targets support the Paris Agreement's policy of limiting global warming to 1.5 degrees, and the measures cover Enersense's entire supply chain.

Greenhouse gas emissions

Enersense has calculated the Group's direct (Scope 1) and indirect (Scope 2, purchased energy) greenhouse gas emissions in accordance with the GHG Protocol for the first time. The calculation concerns the year 2023. Comparison information from 2022 is not available. Calculation of the other indirect emissions from the value chain (Scope 3) will be completed during 2024 (for 2023).

Scope of the calculation

All of the Group's active operations were included in the calculation. Financial control was used as the consolidation principle. Sufficient information was not available concerning the use of biofuels and biomass as an energy source, so results cannot be presented in these respects. Of Enersense's direct greenhouse gas emission 97.9% and of indirect greenhouse gas emissions 94.6% is based on measured information.

Direct greenhouse gas emissions (Scope 1)

In 2023, Enersense's direct greenhouse gas emissions totalled 6,159 tCO2e. In relation to revenue, emissions were 16.97 tCO2e per

million euros.

Sources of Scope 1 emissions	Greenhouse gas emissions, tCO2e
Process emissions	484.0
Fuel consumption	5,578.0
Own energy production	97.1
Total Scope 1 emissions	6,159.1

The most significant part, 90.6%, of Enersense's direct greenhouse gas emissions are caused by the fuel consumption of vehicles and machines. Greenhouse gas emissions are also caused by process emissions caused by welding and surface treatment, for example. In 2023, these emissions totalled 484 tCO2e, or 7.9% of Enersense's total direct greenhouse gas emissions. A small part, altogether 97 tCO2e or 1.6%, is caused by the heating of certain locations in Estonia.

Indirect greenhouse gas emissions (Scope 2. market-based)

In 2023, Enersense's market-based indirect greenhouse gas emissions totalled 3,782 tCO2e. In relation to revenue, emissions were 10.42 tCO2e per million euros.

Sources of Scope 2 emissions	Market-based greenhouse gas emissions, tCO2e	Location-based greenhouse gas emissions, tCO2e
Electricity	3,667.5	767.9
Heating	114.8	1,192.6
Total Scope 2 emissions	3,782.0	1,960.5

Indirect greenhouse gas emissions are caused by the electricity use and heating of Enersense's locations as well as by the energy consumption of electric vehicles and the Mäntyluoto production plant. Enersense Offshore, which focuses on offshore wind power foundations, operates at the Mäntyluoto production plant, where also steel structures for the needs of various industries are manufactured. Data on the electricity consumption of electric vehicles was not available at the time of the Scope 2 calculation for 2023, so it is not included in the figure presented.

At the end of 2023, we decided that all new power purchase agreements would be based on the use of zero-emission or renewable energy.

The Mäntyluoto production plant accounts for 90% of Enersense's total indirect emissions. In 2023, the Mäntyluoto plant's indirect emissions were still caused by the electricity use of the production plant, but its electricity contract was replaced with an

emission-free contract at the end of 2023. In terms of thermal energy, Mäntyluoto had no emission impacts because the heating agreement of the production plant has been based on emission-free energy since 2022. At the end of 2023, we decided that all new power purchase agreements would be based on the use of zero-emission or renewable energy.

Other indirect emissions from the value chain (Scope 3)

Enersense started its calculation of the other indirect greenhouse gas emissions from the value chain in late 2023. The focus has been on upstream emissions categories in the value chain in line with the GHG Protocol. During 2024, Enersense will also identify relevant emissions downstream in the value chain, and it aims to publish its greenhouse gas emissions for all relevant Scope 3 emission categories in its sustainability report for 2024.

Energy consumption

Enersense's total energy consumption in 2023 was 24,611 MWh, of which electricity accounted for 9,772 MWh and thermal energy for 14,839 MWh.

Energy consumption	MWh
Electricity	9,772.2
Thermal energy	14,839.1
Total energy consumption	24,611.2

The Mäntyluoto production plant accounted for 80.9% of the Group's total energy consumption. Of the thermal energy consumption, Mäntyluoto's share was 85.6%. In many Enersense locations, energy consumption is included in the lease agreement, and for these locations, energy consumption has been partly estimated based on the amount of leased square metres.

We committed to the Science Based Targets initiative to reduce greenhouse gas emissions

At the turn of the year 2023-2024, Enersense delivered a letter of commitment to the Science Based Targets initiative (SBTi), an international organisation that promotes ambitious climate action. In accordance with the Science Based Targets initiative, Enersense will set near-term emission reduction targets in line with SBTi's criteria, which support the Paris Agreement's policy of limiting global warming to no more than 1.5 degrees Celsius.

The science-based emission reduction targets will be set according to SBTi's schedule within two years of the commitment. The new targets will be submitted to the SBT organisation for validation, and the targets will concern both Enersense's own operations (Scope 1 and 2) and the entire supply chain (Scope 3).

The majority of Enersense's total emissions consist of Scope 3 emissions from the value chain, such as purchased products and services. By committing to the SBT initiative, the emission reduction targets and measures to be set extend to Enersense's entire supply chain.

"Climate change mitigation is at the core of our sustainability work. By committing to the SBTi climate initiative, we are taking a science-based step in the development of our environmental responsibility," says Tommi Manninen, SVP, Communications and Public Relations at Enersense.

About the Science Based Targets initiative

The Science Based Targets initiative is an international collaborative effort, driven by the Carbon Disclosure Project (CDP), the UN Global Compact Initiative (UNGC), the World Institute of Natural Resources (WRI), and the World Wildlife Fund (WWF). Companies committed to the initiative set science-based emission reduction targets for their operations in line with the Paris Agreement.

The targets set by companies for reducing greenhouse gas emissions are considered science-based if they are in line with the measures that current climate science indicates must be taken to achieve the objectives of the Paris Agreement on climate change – that is, to limit global warming to well below 2°C compared to pre-industrial levels and to try to limit global warming to 1.5°C.

For more information, please visit the SBTi website →

ENERSENSE IN BRIEF YEAR 2023 STRATEGY BUSINESS OPERATIONS AND MARKETS SUSTAINABILITY GOVERNANCE 78

Electric vehicle pilots continue in fieldwork

Enersense is committed to reducing the annual carbon dioxide emissions of its vehicles. Modernising and electrifying the vehicle range plays a key role in achieving the emissions target. The builders of Enersense's electric charging infrastructure already started using the first electric vehicles in 2018, after which many different models and options have been launched on the market.

Even though technological development is fast, options are still fairly limited when it comes to larger electric vans. An electric Ford Transit van has been in operation in Enersense's Connectivity business area since early spring in the maintenance and repair of information displays at railway stations in the Helsinki region. As the work is carried out on station platforms, the customer also set a requirement for low emissions.

Telecommunications technician Juho Juntunen says that the car is excellent to drive, stable and powerful. However, its range has presented a challenge. The range was some 170 kilometres at temperatures slightly below zero in early spring and no more than 240 kilometres in summer.

"We are on on-call duty, and we never know how far we have to go. The battery can last for three or four days, but sometimes we have to charge it every day. This adds uncertainty to our work, as we do not know how much we need to drive and where we can charge the van," says Juntunen.

Governance

Members of the Board of Directors	81
Members of the Group Executive Team	82
Governance	83

Members of the Board of Directors

Jaakko Eskola Chair of the Board

b. 1958
MSc (Tech.)
Member of the Board since 2021
Shares: 7,405
Independent of the company
Dependent on a significant shareholder (Nidoco AB)

Primary positions of trust

Varma Mutual Pension Insurance Company: Chair of the Board
Technology Industries of Finland: Chair of the Board
Cargotec Corporation: Chair of the Board
Suominen Corporation: Chair of the Board
Valmet Corporation: Vice Chair of the Board
Finnish Foundation for Share Promotion: Board member
Confederation of Finnish industries (EK): Board member

Sirpa-Helena Sormunen

Vice Chair of the Board - b. 1959

LLM (trained on the bench) - Member of the Board since 2021
Shares: 14 110
Independent of the company and of its significant shareholders

Primary positions of trust

Gasum Oy: Board member 4/2023–
Nammo AS: Board member

Petri Suokas

b. 1973
Vocational qualification in

construction

Member of the Board since

2020

Shares: Directly 12,210, indirectly through Siementila Suokas Oy 240,860 and 680,022 through Suotuuli Oy which are entities in which he exercises control. - Independent of the company and of its significant shareholders - Entrepreneur

Primary positions of trust

Suotuuli Oy: owner, CEO and Chair of the Board
Siementila Suokas Oy: owner, CEO and Chair of the Board
Tilasiemen Oy: shareholder and Vice Chair of the Board
KB Areena Kauhajoki Oy:
Chair of the Board
KB Events: Chair of the Board

Carl Haglund

b. 1979 - MSc (Econ.)
Member of the Board since 2023
Shares: –
Independent of the company and of its significant share-

holders

Veritas Pension Insurance Company: CEO 2022–

Primary positions of trust

Nordic Rescue Group Oy: Chair of the Board - EVA & ETLA: Chair of the Board
Finnish-Swedish Chamber of

Commerce: Vice Chair

Tela, Finnish Pension Alliance:

Anna Miettinen

-

Shares: 1,200
b. 1981
MSc (Tech.) & B.A.
Member of the Board since 2023
Independent of the company and of its significant shareholders
Inasis: CEO & owner 2018–
Ensto Invest: Chair of the Board 2018–
Sewatek Oy: Board member 2012–
Finnish National Theater Foundation: Board member
Board member
Suomen Yrittäjäturva: Board member

Primary positions of trust

2018–

Sari Helander

b. 1967
MSc (Econ.)
Member of the Board since 2020
Shares: 854
Independent of the company and of its significant shareholders
Ramirent Group: CFO and Head of Group Functions

Primary positions of trust

Evli Plc: Board member

Members of the Group Executive Team

Mikko Jaskari CFO since 2 August 2021

b. 1969
Shares: 0 - MSc (Industrial
Management)

Tommi Manninen SVP, Communications and Public Affairs since 1 February 2021

b. 1971
Shares: 1,221
Master of Social Sciences

Sami Takila SVP, Legal since 1 July 2022

b. 1974
Shares: 495
Master of Laws

Hanna Reijonen SVP, HR since 6 September 2021

b. 1973
Shares: 755
MSc (Econ.)

Primary positions of trust

Oima Oy: Board member
Attido Oy: Board member
Saarni Cloud Oy: Board
member

Jaakko Leivo EVP, Smart Industry

since 14 August 2020

Juha Silvola

b. 1981
Shares: 70,444
BSc (Electrical
Engineering)
Technology)

EVP, Power since 14 August 2020 Acting EVP, Connectivity since 16 September 2021

b. 1972
Shares: 15,210 - MSc (Manufacturing

Margus Veensalu

EVP, International Operations since 14 August 2020

(Margus Veensalu stepped down from the Group Executive Team on 9 January 2024)

b. 1968
Shares: 610
BSc (Mechanical Engineering), BBA

Jussi Holopainen President and CEO since 1 January 2013

b. 1977
Shares: 436,509
BBA (Business Administration and Management)

Primary positions of trust

Suomi Teline Oy: Chair of the Board
KT-Shelter Oy: Chair of the Board
Yrittäjien Voima Oy: Chair of the Board
Pensionsförsäkringsaktiebolaget Veritas: Member of the Supervisory Board
P2X Solutions Oy: Board member
Parking Energy Oy: Board member

Governance

ENERSENSE'S DECISION-MAKING and governance comply with the laws and regulations of Finland, its Articles of Association, the EU's Market Abuse Regulation (MAR), the rules of Nasdaq Helsinki Ltd, and the guidelines of the European Securities and Markets Authority (ESMA) and the Financial Supervisory Authority. Enersense also complies with the Finnish Corporate Governance Code published by the Securities Market Association. The code entered into force on 1 January 2020.

Enersense's Corporate Governance Statement has been published separately from the Board of Directors' report. Its 2023 financial statements, Board of Directors' report and remuneration report are also available as separate documents on Enersense's website.

Financial reporting

Enersense's financial reporting is based on the company's disclosure policy. Enersense issued 30 stock exchange releases, 14 investor news and 19 press releases in 2023. Enersense's 2023 reporting package includes a Board of Directors' report and financial statements, Corporate Governance Statement, a remuneration report and an annual report. All publications are available on Enersense's website.

Enersense will publish two business reviews and a half-year report in 2024:

Business review for January–March on 26 April 2024
Half-year report for January–June on 1 August 2024
Business review for January–September on 28 October 2024

The business reviews and the half-year report are published in Finnish and English and can be read on Enersense's website. Enersense observes a silent period of 30 days prior to announcing its results.

General disclosure principles

Enersense seeks to ensure that all parties operating in the capital markets have equal, simultaneous and undelayed access to relevant and sufficient information for determining the value of Enersense's financial instruments. The purpose of disclosures is therefore to provide accurate, sufficient and relevant information about Enersense's business operations, strategy, targets and financial situation in a timely manner.

Enersense's key communication principles are transparency, consistency, equality, timeliness, accuracy and comprehensibility. Enersense communicates about positive and negative aspects consistently and simultaneously to all stakeholders.

Annual General Meeting 2024

Enersense's 2024 Annual General Meeting will be held on 4 April 2024. The Notice to the Annual General Meeting has been published on 29 February 2024 in a stock exchange release and on Enersense's website.

Distribution of funds to the shareholders

The Board of Directors proposes to the General Meeting that the result for the financial period 1 January 2023 to 31 December 2023 be transferred to the profit and loss account for previous financial periods and that, based on the balance sheet to be

IR CONTACT DETAILS

Mikko Jaskari CFO +358 40 053 5337 [email protected]

Sanna Päiväniemi Investor Relations Manager

+358 44 978 4003 [email protected]

SVP, Communications and Public Affairs

Tommi Manninen +358 40 043 7515

[email protected]

adopted for the financial period, no dividends be paid to shareholders.

In addition, the Board of Directors proposes to the General Meeting that the Board of Directors be authorized to decide on the distribution of funds to shareholders from the invested unrestricted equity reserve as a return of capital of at most EUR 0.10 per share, i.e. at most EUR 1.6 million in total. The return of capital could be paid in up to two instalments during the period between July and December 2024 as determined by the Board of Directors. The possible return of capital would be paid to shareholders who, on the record dates determined subsequently by the Board of Directors, are registered in the shareholders' register of the Company maintained by Euroclear Finland Ltd. The authorization is valid until 31 December 2024 at the latest.

BASIC INFORMATION ON THE ENERSENSE SHARE

Listed on: Nasdaq Helsinki Trading ID: ESENSE Shares outstanding 31 December 2023: 16,492,527

Shareholder	Number of shares	of shares
1. Nidoco AB	4,425,000	26.83
2. Ensto Invest Oy	1,346,125	8.16
3. Verman Group Oy	1,343,461	8.15
4. Suotuuli Oy	680,022	4.12
5. Keskinäinen Eläkevakuutusyhtiö Ilmarinen	569,053	3.45
6. Sijoitusrahasto Danske Invest Suomi Osake	451,027	2.74
7. Holopainen Jussi Samuli	436,509	2.65
8. Taloustieto Incrementum Ky	416,313	2.52
9. Eläkevakuutusosakeyhtiö Veritas	395,292	2.40
10. Mapps Global Invest Oy	342,732	2.08
Top 10 shareholders total	10,405,534	63.09

www.enersense.com Enersense International Oyj Konepajanranta 2 FI-28100, Pori, Finland +358 29 020 011 [email protected]

AI Terminal

Enersense International Oyj

3314_10-k_2024-03-08_63aa6d06-d9c3-4bd6-af6e-83ed86edd641.pdf

Making a zero-emission society a reality

Contents

INTRODUCTION ........................................................................ 3

YEAR 2023 .................................................................................. 8

STRATEGY ................................................................................ 13

Introduction

Enersense in brief

We are Enersense

Business areas in brief

Power

Connectivity

Smart Industry*)

International Operations*)

Enersense as an investment

Year 2023

Highlights of the year

Our revenue increased 29%

Renewable energy project portfolio increased to 8,800 MW

Charging and Wind became part of the Enersense family

Centre of excellence for offshore wind power

First hydrogen economy projects

We committed to reducing greenhouse gas emissions

Key figures

President and CEO's review

Jussi Holopainen

"Our renewable energy project development portfolio of around 8,800 MW provides a good basis for the development of our own energy production."

Strategy

Operating environment

MARKET DRIVERS

Strategic focus areas

3 Ensure skilled people and expertise to make a difference We build the best expertise and competences for current and new businesses, and acquire new talents to join the company to fill the identified gaps.

OFFSHORE WIND FOUNDATIONS

SUSTAINABLE MOBILITY

RENEWABLE ENERGY

CORE BUSINESS

Growth strategy's focus areas

We explore options to accelerate our renewable energy production target

Accelerating wind power business

Development of the solar power business continues

TARGETS SET FOR 2027

Share of revenue that belongs to the EU environmental taxonomy, %

Long-term targets

Targets set for 2027

Guidance for the 2024 financial year

Business operations and markets

Our role in the value chain of energy

Power

Enersense's project development portfolio

Wind and solar power project development

Our significant role in all stages of the wind farm's life cycle

The project of 50 wind power plants in Yli-Olhava,Ii progresses

When completed, the wind farm is estimated to generate more than 1 TWh of electricity.

Enersense to cooperate with Scanfil and Monta in charging business

Read more about Scanfil cooperation →

First high-power charging station deliveries to Norway

Long-term cooperation in substations and transmission lines

Substations also being electrified for transport

Opening in the maintenance of solar power plants

Smart Industry

Entering the green hydrogen economy

We are part of an international centre of excellence and operations for offshore wind power

Connectivity

We are building an optic fiber network for Valoo

We provide telecommunications network field services for Telia

Enersense's telecommunications technicians starred the "Builders of a safe and secure network" campaign

International Operations

First agreement for battery storage maintenance in Lithuania

We are renewing the Mustvee-Paide transmission line in Estonia

Sustainability

We grow responsibly

Sustainability activities developed together

Sustainability management

Responsibilities and governance

Guiding principles for our operations

ENERSENSE'S GOVERNANCE STRUCTURE

Enersense's management system

The Code determines our approach to ethical business practices, human and labour rights and environmental

**Smart Industry*)**

**International Operations*)**