Good afternoon and welcome to Enersense's Capital Markets Day. Since the beginning of this year, dozens of our colleagues have been working to shape the new Enersense. Today we are proud to present our new strategy, purpose, and financial targets. My name is Liisi Tamminen, and I'll be hosting the event today. Just a couple of words about the agenda today. We will have a deep dive into our business and strategy for the next two hours. Our CEO, Kari Sundbäck, will begin, and will be followed by presentations from the business units and financials. In the end, we will have a Q&A session. Those of you who are watching online, please write your questions in the box on your screen. Before we give the stage to Kari, let's watch a short video which highlights the new strategy and our newly defined purpose.
Thank you, Liisi, for the introduction, and thank you everyone for your interest in Enersense today. I've been CEO of Enersense for eight months now, and for the better part of that time, we have been working on our way forward to 2028. For us, June 4th today is an important day we have been looking forward to. Creating this strategy is a journey that started at the end of last year. Dozens of our own people have been involved, and many of them are here today to tell about our new direction. You met Liisi already. We will have Tuomas, Kaspars, Sirpa, Sami, Mikko, and Päivi to tell us how we are already progressing on the direction chosen. We have also renewed our leadership team for this next strategy phase, and we are all here except Jyri, who will join us on July 1st.
In addition to dozens of our own people, during this spring, we have engaged with many customers in discussions about our strategy to make sure we come up with a plan that is most relevant for them. Here is what I would like you to retain from today. Enersense is stronger and more focused than ever. With this new strategy for our core businesses, we have a solid plan for sustainable growth, and we have a new ambition to increase shareholder value. Enersense is a relatively young company that has grown fast, and much of the growth has been created with acquisitions. During that period, a lot of expertise has been built and acquired, and customer trust has been generated. Almost a year ago, in June 2024, a new strategic direction was taken. Core businesses were defined, and the company started a strategic assessment on the other three businesses.
I joined at the end of September last year, a company in need of a new direction in these core businesses, a company where great performance and expertise were somewhat shadowed by individual challenging areas, but a company we have many reasons to be proud of. Today, we have that new direction for the years 2025 to 2028. Where do we start from? In 2024, we generated EUR 336 million of revenue in our core businesses and EUR 10.4 million of EBITDA. The share of services was already 40%. We employed some 2,000 people, and we work across three business units: power, connectivity, and industry, which we now have renamed into energy transition to reflect the renewed focus and direction in the industry, where we focus on the energy transition of industry.
We work in three market areas, the largest of which is Finland, which accounted for about half of our revenue last year, followed by the Baltics with almost EUR 100 million, and then Sweden and Norway combined with EUR 72 million. Who is Enersense? If you imagine a society powered by clean energy and reliable connections, a society where critical infrastructure enables a smooth everyday life. At Enersense, we're not only imagining it, we're making it happen. Our purpose is hence delivering the essentials of tomorrow's society. Our customers' success drives us forward. With our expertise, we bring our customers' visions and end customer commitments into reality every day. We're a trusted partner to power, industrial, green transition, and telecommunications companies. Hence, our promise is expertise every day. Whilst our purpose and promise are new, our values are not.
We have since a few years strong values that serve us very well today and going forward as well. Be brave, grow responsibly, and together. Let me now introduce you to our life cycle partner strategy 2025 to 2028. We start from what happens in our markets. We go to understanding our customers' needs, which we turn to what Enersense needs to become to be most relevant for our customers. We define our portfolio based on what we want to become. Finally, we have defined how to get there, the key development areas. All the time, we keep in mind our promise, expertise every day, and what it means to our people approach. Why does an expert choose to work with Enersense? I will now take you through these different parts.
We have identified four key trends that shape the markets in which we work through our discussions with the customers. We identified them, we worked on our own, then we met with a number of our customers to align on this and align on the understanding of what really shapes the market. Green transition continues strong wherever the economics work, and in our markets, they do. We are beyond the point of no return here. The current times of unrest present many security challenges to our customers, both cyber and physical. Such challenges are then opportunities for us to work with our customers in new ways to jointly find new solutions. The need for operational resilience is greater than ever, as the demand for security and efficiency need to be met at the same time.
There is a very clear call for action to advance digitalization of ways of working in our industries in the field. We're not very mature yet, and we can benefit from learnings from other industries. These trends drive evolving customer needs. In power, and in particular in the electricity grid, the demands for increased grid capacity and flexibility increase all the time. The grid is changing in a matter of years like it used to in dozens of years. The pace of change is very fast. There are, in particular this year, this spring, needs voiced by our customers for new solutions to enhance grid security. Investments into wind and solar are picking up again in Finland, in our home market, and these battery energy storage systems are sort of popping up like mushrooms. In the energy transition of industry, there's a transition of energy producers.
We're in Helsinki today hosting this session with you. We have been working with Helen, the Helsinki energy company, since 2022. Of the energy sources they had in 2022, 20% will be there in 2030. The other 80% will be new. That is a huge transition for technology, for the production facilities, and the people. We are doing this with Helen and for Helen. There is the green transition in industry, so amongst the big consumers of energy and carbon capture for those who still use fossil energy sources. Finally, e-fuel production is becoming concrete. We have first-hand experience like no one else has in this country in setting up, building, operating, maintaining a green hydrogen plant.
In connectivity, as the requirement for data keeps on increasing, there's the need for further efficiency and sustainability requirements that drive energy consumption also, and that's a particular concern for our customers. There, just like in the power grid, the improved need for solutions on security is very evident amongst our customers. How do we at Enersense then respond to these needs? Since the beginning of this work to define our new strategy, we have focused on one question primarily. Why does a customer choose Enersense in 2028? What is that differentiation that would make us their most relevant partner? There are a few things that stand out. Customers need us to manage their costs, complexity, and risks. We respond to that by developing efficiency and transparency.
Secondly, customers need new business outcomes, such as better handprint, more secure networks or industrial facilities, or more return for their investment. We respond with solutions optimizing their life cycle performance, sustainability, and value. These two business models go hand in hand. We can provide solutions only after having built trust with efficiency and transparency. One cannot just announce we will start to do solutions for you. With these customers in the critical infrastructure, we need first to build that trust with the efficiency and transparency way of working before we can work on larger pieces of their asset. It all starts by meeting the budget, schedule, and agreed quality. We bring further simplification to them, simplify their life in managing their asset, and bring more transparency to what happens every day with their maintenance or installations or upgrades.
As we enhance that transparency, we create insight into opportunities and issues that we then tackle with solutions. Such solutions run typically on digital platforms. Once you start delivering your solution to the asset over a digital platform, you put yourself in a position where you get the scale benefits. The incremental cost of adding more assets of the same or different customers approaches zero whilst the revenue comes in. Just a simple example, take a mobile network. We may perform traditional scheduled and reactive maintenance efficiently and transparently. We have the geographical reach in our markets in Finland and in the Baltics and the density to do so. We meet the budget, the schedule, and agreed quality. We expand the customer trust by showing in simple and transparent ways what we do all the time to maintain their asset.
We may then come up with a solution to, say, guarantee the uptime of some part of their asset based on condition-based maintenance. Instead of reacting fast, the traditional model, we maintain uptime of the asset with remote monitoring and perform preventive maintenance. Once a customer is able to get to that model of buying uptime, they will not go back to the old model of just buying service transactions or repairs. We can scale that model across their asset and similar assets. How does this life cycle partner model then benefit us? In short, that's how we create sustainable growth by increasing the share of services and recurring revenue. When we meet the budget, schedule, and agreed quality, we enhance productivity and competitiveness.
With the insights, we create further opportunities to ourselves also, which we then turn to solutions which typically carry higher margin because of the recurring revenue. That provides a strong platform for upselling further services or taking care of a larger part of their asset. We now have, as of today, a very clear portfolio definition in terms of what we do, with whom, and where. This is all Enersense does. I am sure that from now on, it will be easier to understand, to follow, to value, and to invest in. This portfolio provides a solid balance of continuity and growth, as we will soon hear in the different segment presentations. Currently, our strength is typically in construction projects and in a strong operations and maintenance capability, but the latter only in some customer segments.
We have a high share of one-time projects and limited life cycle value capture after the construction phase. We do not either fully leverage design and engineering nor upgrade and modernization opportunities. We are strong in some segments, such as in substation design and engineering, but in others, not so much. How will this change by 2028? By 2028, the weight of operations and maintenance and upgrades and modernizations will be much bigger. They will grow the most, though we will also grow substantially in absolute terms in construction projects because it makes sense and because we expand the installed base for services. We also grow in design and engineering, where we focus on expertise serving the whole life cycle value, performance, and sustainability. I will take you through a few examples. In design and engineering, we indeed focus on the life cycle expertise.
Not so much how to construct it the first time, but how then to operate, maintain, upgrade, modernize it over the life cycle. We will develop our different project delivery, so different types of projects, the delivery model for projects because of the needs for further performance. In operations and maintenance, the likes of Helen, so managing the green transition of energy companies, that's a huge opportunity with these municipal energy companies that all are on the way of transitioning away from fossils to green sources. We have experience like no one else in Finland of doing that every day. Across the maintenance base, my favorite, I guess, condition-based maintenance. Examples of upgrade and modernization will be the different security solutions we are now working on with our customers.
In summary, what changes when you look at the portfolio is that our position in construction will be further strengthened. Maintenance becomes core in our offering, and it leads to a higher share of recurring service business. An increased emphasis on design and engineering is built to shape customer outcomes and to position ourselves for upgrades and modernizations. That is what we offer along the life cycle. Let's then look at whom we work with and where. We work with transmission system operators, distribution system operators, and companies building renewables. By the way, on the latter, we sold our own wind and solar power development business to Fortum three months ago in February. Even in such a short time, we can notice how the relationship with companies like Ilmatar and OX2 has opened up again in a very different manner.
It shows again that it's better not to be a competitor to your customers. In industries' energy transition, we work with the existing generation companies. We work with the greenfield companies, such as P2X. We work with the heavy users of energy who are transitioning from fossil sources to greener sources, especially in the chemicals, metals, and marine industries. In connectivity, we work with service providers and infrastructure owners. Now, that's whom we work with. In terms of market focus, the three markets, as we have grouped them here, have somewhat distinct roles. The role of Finland is to further expand the value share capture, not so much the volume, but value share capture across the businesses, across the customer segments. Here, we are building new capability. We're piloting, and then we package that into repeatable solutions across our markets.
The role of the Baltics during this strategy period will be a selected market share expansion in the power grids, where we are already strong. We can further gain market share there. New entries, in particular in wind power, which is now becoming reality in the Baltics, and then the energy storage, construction, and maintenance. In Sweden and Norway, we'll be even more selective, so we'll be focused on deep areas of expertise. Continuing the expansion in power grids and then with industrial green transition customers. How do we then get there? We have three key development areas. There's the development and digitalization of the project and service delivery models. There's the solution development in a customer-centric manner for sustainability performance, and there's the value capture in key customer segments, in other words, the commercial capabilities.
When you lay them on top of one another, it looks like this. There is the foundation first. We have been busy for the past year with the reinforcement of our financial foundation, and we continue that. We finance the strategy with the value uplift program and by strengthening the balance sheet. The first of the key development areas is to drive the delivery performance, especially for efficiency and transparency, by developing and digitalizing our project and service delivery models. Secondly, solution development with our customers to unlock life cycle value and sustainability performance. Thirdly, the value capture in the key customer segments along the life cycle, in other words, our commercial capability to extract value out of this offering. Let me take an example. Now, I have spoken of digitalization quite a few times. I will just bring a practical perspective to how we accelerate value with digitalization.
This is conceptually and technically really simple, and it has taken place in other adjacent industries already. However, to get this done requires several years of focused effort, which we have now decided to put in. That is why I want to bring it up here particularly. When we take the example of the field operations of a mobile network, they are very fragmented. You have vans from many companies at the same sites and the operator customer managing all that complexity. There is a better model where that field production of installation and service events is managed efficiently on a digital platform, and technicians are guided and empowered in their work with much more clever scheduling and more accurate data to perform their work first time right.
In maintenance, the traditional model is to conduct scheduled visits and then visit the sites again for repair needs, potentially several times due to poor anticipation. There are service level agreements for repair delays agreed upon, but still part of the asset may be down every now and then. The better model is condition-based maintenance. When we put sensors to monitor the condition of the asset remotely, we apply some analytics and artificial intelligence taught by our own experienced field force. We can perform proper predictive condition-based maintenance. In case there were repair needs, we would be much better equipped knowledge-wise and spare part-wise before heading off to the site. Conceptually, technically speaking, really simple, but it does take a few years of focused effort to get this working in our industry as well. I would like to take the angle of sustainability.
There, our approach is very simple. We focus on enhancing the customer's sustainability performance. In order to be able to do so, we need to have our own house in order. We are right now training our people to know the customer handprint of our offering and to provide them better alternatives with a better handprint. Some examples of such recent successes are here. We did a pilot. A substation consumes a lot of steel. We proposed our customer to build a substation made of recycled steel. There is the pilot, which actually since this morning is not a pilot anymore. It is a purchase. When rehearsing for this, it was a pilot. In the high-voltage lines, we provide a lot of concrete. Now, we have come up working with our supply chain on an alternative which has a much better handprint for the customers.
This morning, we heard that our customer for the latest high-voltage line project has selected that option, which has a really meaningful impact for their own handprint. We, of course, optimize our own operations with the digitalization of maintenance. Better scheduling and better data before we go on site allows us to drive much less for individual installations and service events. When we drive, it is EV. We are now in a very fast pace replacing our service vehicles. There are no more combustion engine cars coming into Enersense. We are in a fast pace renewing our fleet. In order to be able to do this for our customers, we need to have our own house in order. In particular, we take care of our personnel and enhance their safety.
We drive the emission reductions in our own value chain, that recycled steel or the green concrete are prime examples of that. We improve sustainability data transparency. In order to talk of data facts of handprint with our customers, we need to have our data transparency in shape, including, of course, our supply chain. We ensure compliance with our different commitments and policies. Now, on the particular topic of emissions, we will set in the second half of this year science-based targets for CO2 reduction, including Scope 3, and they will then be integrated to our strategic targets. Now, finally, our people approach in this life cycle partner business is to learn for tomorrow and be the community chosen by experts.
Just like in sustainability, where we focus on customer sustainability performance, in our people approach, we focus on the outcome, becoming the company the best experts in each of our professions want to choose. This is done by focusing essentially on three aspects: safety first. If you are a welder or a telecoms technician climbing up masts, or you work in potentially hazardous industrial facilities, you will want to choose out of the possible employers the one that has put more emphasis on safe work conditions than the others. Our business model of life cycle partner provides great professional development opportunities. If you imagine being a substation designer, you might work in a company that just does substation design, or you could join the Enersense substation design team.
The difference is that at Enersense, you get to see how your design is constructed, how it is operated, how it is maintained, how it is upgraded and modernized. Because of what you see, you get back, and your next designs are going to be better. You yourself, you grow in your profession. Thirdly, we lead based on our values: being brave, growing responsibly, and together. The quote there is from last autumn. It was my second week in this job, and we met our largest customer. We were four; they were three. At some stage during the meeting, one of these customers said, "You know what, Kari?
You at Enersense, you have an achievement attitude and a drive like no other company in Finland has." I learned afterwards that was after we had completed one project two months ahead of time and the other one four months ahead of time, meeting the scope and quality requirements. This is what we want to hear more of. This is how we want our customers to experience us, the promise being expertise every day. Together with the new strategy come strategic targets. For the strategy period 2025 to 2028, our strategic targets are here. Our growth target is a compound annual growth rate of 4-5% over the strategy period. That is for the core businesses, excluding M&A, and for the strategy period indeed. Our profitability target is to reach an EBIT over 5%.
Now, we have mostly communicated on EBITDA up until now, and this EBIT target of over 5% would correspond to over 8% of EBITDA. In our balance sheet, we are in our net gearing currently below 100%, and we intend to stay there. Our safety target is to go towards zero incidents with a continuous decrease in the lost time incident frequency. Our climate target will be added here in the second half of this year, along with our commitment into SBTi. Now, before we go to the different customer segment presentations, just a word on the way forward in the marine and offshore unit, which is not part of our core business. We are still continuing the strategic assessment. The unit is not part of our core business, but we have unique expertise in Arctic marine industries and in offshore wind power.
There is a lot happening in these markets at the moment, so we are patiently steering this towards a good outcome. Not part of core, we continue the evaluation because it makes sense for us to continue, and the outcome will be good. Let's now go deeper into how the strategy plays out in our different customer segments.
Thank you, Kari, for your presentation.
Thank you.
Could you still briefly wrap up why did Enersense choose the life cycle partner strategy?
Two-fold answer. Because our customers need us to do so. Because of the needs the customers have, they see Enersense being the company that can provide this life cycle performance and value for their asset and sustainability performance. For us, increasing the share of services and recurring revenue is key for sustainable growth.
Thank you.
Thanks.
Now it's time to move on to business units, and I would first like to ask Juha Silvola from Power Business Unit to talk more about the strategy there.
Good afternoon all. My name is Juha Silvola, and I'm very happy and proud to be here. I've been leading Power Business Unit since 2019, having several years of experience from this business under my belt already. Power is our biggest business unit, and we have very experienced teams in place. We have come far, but I must say that we are very hungry to develop our unit even further. We expect to reach EUR 200 million revenue with solid profitability during this strategy period. I'm now going through our five focus areas, our offering, and highlights of our customers and why would they choose us. As Kari said, power grids are changing and growing like we have never seen before, and we expect this growth to continue. There are strong investment programs by national transmission operators to support green transition, and that really drives our business.
During the past decade, we have built a strong position in power lines and substations in Finland and in Baltics, and we plan to grow it further. We also now seek to expand further to Finnish DSOs and Swedish DSOs with these capabilities that we have. We have strong expertise, and for example, our competencies in substation design, construction, and maintenance are top class. Currently, we have been focusing on very few customers, and we see possibilities to scale our business there further. We also focus to develop our wind and solar offering. We have already constructed 1.4 GW of wind farms, and we shall extend our services to substations and power lines needed at those wind farms. We are a one-stop shop for renewable energy customers, and we know that we can reduce the complexity into renewable energy investments.
We are also a market leader in wind farm grid maintenance and services in Finland. Sirpa will share some more details in there. In addition to these, we are also a market leader in BESS maintenance, and we seek now to develop our position to BESS construction as well. BESS demand is driven by the increased need of grid reliability and stability as the renewable energy share of production is increasing. Overall, we are ready to build new capabilities and offerings and drive customer life cycle asset value according to our new strategy. Regarding our offering, with this focused approach, we believe that we can grow in all areas. Traditionally, we have been very strong in construction, and we aim to continue to grow there as well since the construction projects offer us opportunities to expand customer relation to operations and maintenance as well.
We serve a variety of customers, and we have long customer relationships. TSOs, DSOs, and renewable energy companies create a healthy customer mix to us, a balance between continuity and growth. Why would these customers choose us? First, our experience is a guarantee of quality. Our customers are very pleased and happy with us and with the services we provide. Our NPS was 69 in the last spring, this spring that we measured. It is very high in any industry. Our project delivery points are the highest ranking because we deliver on time, if not faster, with the agreed quality and within the budget. Second, we are a wanted partner as there is a high trust to our capability to provide competitive pricing along with the high quality. With this trust, we can start packaging life cycle solutions to them.
Third, we are flexible and ready to secure reliable grid operations. Whether it is a storm or fire or the sea interconnection is down, we are called to give emergency support to our customers with our experts. We are there for our customers every day. As a summary, power market is very good. Our customers are very happy with us, and we are a very hungry and driven team to make power business bigger and better. Now, with our team members, we go through examples of our expertise. I would like to introduce Tuomas Kekki from our substation team to the stage.
Thank you, Juha. Hello all. My name is Tuomas Kekki. I work in substation business, actually 10 years in a company. Substations are one of the most intelligent and critical parts of the electrical network. We have an excellent substation team, so it's an honor to present to you our operations. In substation business, we have strong expertise, and we are an innovative player. I'll tell you some examples. We have delivered the first digital substation pilot for the Finnish TSO company, Fingrid. We are already working on low-emission projects. Again, we are first in Finland to launch a pilot using green steel in the construction of substations. The delivery includes all exterior steels by green steel. Enersense is a device-independent player, and it's our strength. We have strong experience with various low-emission, high-voltage equipments and automation systems by engineering side, assembly side, commissioning side, and maintenance side.
Like Juha told, we are a market leader in substation maintenance. Also, we maintain the largest battery energy storage capacity in Finland. We are proud that the customer satisfaction index is one of the best in substation business. It's an important value for us. According to the life cycle partner strategy, our plan is to develop our services even more comprehensively. Thank you.
Thank you, Tuomas. We welcome Kaspars Miltins from our HVL team.
Thank you, Juha. Good afternoon, everyone. I am Kaspar Smiltins from high-voltage line business. I am going to talk about high-voltage line expertise in Sweden. We are proud to be scaling up our high-voltage line expertise in Sweden, building on our 10 years of proven experience. Today, we have successfully designed, built, and maintained more than 600 km of high-voltage lines across the country, from 130 KV to 400 KV, always delivering safely, on time, and within budget. Our strength lies in our end-to-end capabilities. We handle everything from engineering and procurement to installation, commissioning, and maintenance. This integrated approach allows us to maintain control over the quality, costs, and timelines while offering maximum value to our clients. We have also earned the trust of Sweden's leading utilities and transmission operators. Through long-term partnerships and repeat businesses, we have become a preferred supplier, known for reliability and high standards.
Sweden's energy grid is changing, and we must adapt to meet the changing needs and expectations of our customers. Looking ahead, we are focused on live line works at 400 KV level, a critical need for Sweden's grid reliability. Our goal is to execute this complex work without interrupting high-voltage lines, supporting the country's energy grid. In short, we are not just delivering infrastructure; we provide full life cycle service. Thank you.
Thank you, Kaspars. Sirpa Smids will join us to share renewable energy team news.
Thank you, Juha, for the introduction. Hi, everyone. It's great to be here with you today. My name is Sirpa Smids, and I'm leading the renewable energy business at Enersense. In general, it is estimated that the demand for renewable energy will significantly grow during the upcoming years. This is mainly because of the green transition, electrifying the society, as well as the expected major investments in Power -to-X and data centers. This all creates a lot of great opportunities for Enersense. In the renewable energy business, we already have an extensive track record. We have designed and constructed over 1.4 GW, and we maintain approximately 40% of the operational renewable energy capacity in Finland. From the customer perspective, our strength is that we can provide a full scope of services for wind, solar, and battery energy storage projects.
We can design and construct the balance of plants, meaning the site infrastructure, roads, foundation, and all the electrical works at the site, as well as the substation and overhead line to connect the power plant to the transmission network. Our services do not end once the construction ends. We support our customers also during the operations and maintenance of the wind, solar, and BESS assets. Working seamlessly together, we solve complex problems and provide simple and sustainable life cycle solutions to our customers. Thank you.
Thank you, Sirpa.
Thank you, Juha and the team. Juha, how would you summarize? What is the key market driver for the Power Business Unit?
It's definitely the green transition and the investments related to that. That drives our business forward.
Thank you. Now we will move on to the second business unit, and that is energy transition. Sami Lahtinen will come on the stage. Thank you.
Thank you, Liisi, and good afternoon for all of you. My background is so that I have been working with Enersense almost 20 years. Most of that time, I have been working with energy producers and industrial customers. As Kari already told, the energy and energy producers and industry are meeting the change which is coming from that green transition. How we are on the energy transition business unit are going to answer on that challenge, I will tell you now. Confusing, a little bit. Sorry about that. All right. We at Enersense are already part of the energy transitions. We have been helping our customers to change from fossil production to the cleaner options, and we have also helped industry to rebuild the production to meet the environmental demands. We have four focus areas where we are concentrating in energy transition business. First, the conventional energy producers must change.
They have to give up the fossil productions to more environmentally friendly production assets. It means that they have to change or modernize the production assets which they are using. As Kari already told, Helen has to renew 80% of that asset which they did have in 2022. Also, the regulation changes. For example, the price interval changed from 30 minutes to 15 minutes, forcing our customers to reorganize or rethink how they are operating their plants, what is their production model, and how they are using their production assets. We have been already part of that change. With Helen, as told, we have been implementing the change. We have been helping Helen to give up the coal-based production lines in the Helsinki area. My colleague Mikko Luoma will tell more about that change a little bit later on. Kari told that the condition-based maintenance is his favor.
From our point of view, it means that with digitalization and new AI solutions, it helps us to improve our customer experience and the service level which we are able to produce for them. Based on that digitalization, we are able to create that transparency, which gives our customers a better understanding of their energy production system. It means that they are able to use their production more efficiently than currently. For us, or for our customers, it means that we are able to reduce the complexity out from our customers. For Enersense, internally, digitalization means that we have a capability to build up life cycle offering and also simplify our internal operating processes to be more efficient. It means that we are able to get the right expertise in the right place at the right time every day.
The third is that the number of hydrogen projects in the Nordic and European area has already been increasing. As well as we are expecting that growth to continue, we are expecting also that another E-fuel plants are going to be a part of that development. On market-wise, we are in a very good position because we are the only one in Finland who has done the construction of the hydrogen plant, who is maintaining the same plant, who has been operating that same plant, both local operations and remote operations from our control room services from Helsinki. Using that experience, added with engineering and commissioning skills, creates for us a great opportunity to be part of new E-fuel and hydrogen projects. My colleague Sami Pesonen will tell more about that.
The fourth, which is regarding fast-growing segments, green steel and carbon capture, is part of that industry has to change. They have to do investments for more environmentally friendly production. We believe, and I strongly believe myself, that a number of those modernizations and new plants have to be built more in the near future. The green steel mill in Bodø, Sweden, is already a great example of that development. We also have been part of that development already. We have helped our customer, Boliden, to do the production modernization on their Odda plant in Norway. Based on that reliable delivery, which we have done then, we have been able to increase our scope on that project. That is only based on the expertise which we have been able to deliver for our customers. Going for our offering.
As already mentioned, we have a very strong position in construction, operations, and maintenance. We are adding or investing through investments for engineering and modernizations. With these additions and strong support with digitalization, we are able to give a better life cycle offering for our customers in the Nordic area. For us, that Nordic means Finland, Sweden, and Norway. Why are our customers going to choose us? As already told, we have got very strong feedback from our expertise on those cases which we have been supplying. We are increasing the expertise in commissioning and engineering to support the life cycle model better than we have been doing now. The Boliden Odda is a great example of that development. The second one is that with the support of digitalization, we are able to simplify our customers' challenges.
It creates increased efficiency to help us with those customer needs which they are having. The Helen case is a great example of that development. For us, the sustainability and the green transitions are the key things. We are helping our customers on that change that they would meet their targets which they are facing. Now I would ask my colleague Mikko Luoma to tell more about the Helen case.
Thank you, Sami. My name is Mikko Luoma from Energy Transition Services, and I'm going to tell you about our partnership with Helen. We operate and maintain Helen's power plants and district heating network in Helsinki. Partnership begins with shared values. With Helen, we have a strong foundation to build on our joint commitment to a more sustainable future. Our journey together began in late 2022, and since then, we have been part of something historic: Finland's largest green energy transition case. This is not just a technical shift; it is a bold move towards a cleaner, smarter, and more responsible way to produce heat for an entire capital city. Helsinki is one of the largest district heating cities in the world. That means that the stakes are high. Enersense carries a major responsibility to ensure reliability, safety, and future-proof heat production for thousands of people every day.
We are proud to support Helen in this transformation. We have taken big steps forward, and we have done it together, learning, improving, and constantly challenging ourselves. This is what continuous improvement looks like in real life. Our partnership with Helen is more than a business relationship. It is a shared mission, a unique opportunity to grow together, stretch our limits, and lead by example in the energy sector. At the heart of this transformation are people, because real lasting change does not start with technology; it starts with people. Thank you.
Thank you, Mikko. Now I will ask my colleague Sami Pesonen to tell more about the new P2X hydrogen project in Harjavalta.
Good afternoon. My name is Sami, and I'm from Energy Transition Projects. Enersense is the first company in Finland with the expertise to build, operate, and maintain a green hydrogen plant. Our experts are among the very first professionals in Northern Europe with hands-on experience in green hydrogen plant operations, and we are constantly learning more. We are solving entirely new types of challenges and collecting information about the plant operations 24/7. That puts us one step ahead of the competition when it comes to life cycle partnership in the field of green hydrogen. As we are learning every day, we are ready to apply this expertise to other plants and scale it to other E-fuels as well. The P2X plant in Harjavalta, where we manage the whole chain, is a great example of the direction outlined in our new strategy.
During the construction phase, we had around 50 people working at the plant. Now we have a service team on site, and we also monitor and operate the plant remotely from Helsinki. It reflects a true life cycle mindset. In fact, it was strategy-aligned even before the new strategy existed. Thank you.
Thank you, Sami.
Thank you, Sami and the team. Sami, what would you say? What are the key competencies in the energy transition unit?
Yeah, we have talked a lot about the digitalization. Also, another thing which is important is the customer change. Based on those two things, the main skill for us is to lead that change. The leadership, how we are managing the change for our customers, is the main competence which we are needing and which we are really looking for.
Thank you.
Thank you.
Now we will have a short break, and we will continue at 2:10 P.M. Miika Erola will tell us more about the Connectivity business unit, and then we will move on to the financials and Q&A. Now let's have a five-minute break. Welcome back. We have still one business unit to go through, and then we will discuss the financials and have a Q&A. Before going further, I'd like to remind you, all of those who are watching the webcast, please write your questions for the Q&A session already now during the presentations. Now it's time for the Connectivity unit, and Miika Erola, welcome.
Good afternoon. My name is Miika Erola, and I will be talking about connectivity. Before we start with that, I would like to share a personal insight. I have been working on this telecommunication sector for 20 years. During these 20 years, there is one thing I have learned, and this is very important to me. Our customers, telecom operators, they have very complex and fragmented processes. This is very important for us as a service provider because it provides or creates several kinds of problems which we want to change. In this presentation, I will have three main topics. First, we will digitalize operations. We want to help our customers simplify their processes, and we want to gain growth in upcoming network upgrades. In this section, I will present how we will add value to our customers.
I will go through our offering and our big Connectivity business focus areas. As you can see, our offering is quite wide already. We operate and are present in all life cycle phases, but we want to increase our presence in modernization and upgrades. An example of this kind of growth is telco masts and tower replacements. In our focus areas, we have four of those. We have identified four. The first one is very important for a company who is a life cycle partner. It is to maintain and grow strong partnerships. A good example of this, that this is where we are in good position already, is that, for example, all of our biggest customers have been our partners for 20 years already. The second point is to grow in upcoming network upgrades, both mobile and fiber networks.
As I said, the first is an example of masts and tower replacements. As Kari mentioned earlier, there was an example of how we can simplify this for our customers. Typically, currently, when one mast is replaced, there could be potentially five to ten companies on the same site working at the same time. Our best or worst example is that there was one case where there were 16 vans on one hilltop site. It was definitely not efficient. It was not even safe. It simply was not easy for the customer to manage that kind of site. We can help to change that. The other example is in fiber networks. Data traffics are increasing. Global internet traffics are rising rapidly. That requires faster and energy-efficient technology in the fiber networks. That creates a need for upgrades and modernization.
We also want to create a totally new way of working in field operations. We do that by digitalizing service production. That is our third focus area. The fourth one is to reduce complexity in client operations. As I started in the beginning, there are a lot of complications, complex processes, and that creates a problem even for us, but also the customers. This is where we want to make the most significant change. Päivi, my colleague, will talk about this a bit more later. Digital capabilities help us reduce the need for time needed for project planning, but also the need for rework. We can help our operations be more smooth and less prone to error. There is a lot to gain. For example, there is this one work type from our customer which contains 120 milestones.
The work order itself may be quite small. It is hard to make sure that none of those milestones are missed and the delivery is on time and on budget. In a worst case, missing only one milestone could potentially double the cost at site. It is very important for us. Why do our customers choose us? This is very important. We need to be aligned with these needs, what customers have. We have worked very hard to understand them. We have validated them with our biggest customers. We have also tried to understand the small ones, the needs that customers do not always say out loud. They are also important because they can be indicators of future needs as well. Our customers need somebody to reduce complexity. They need us to provide transparency and us to be efficient.
We also are in a good position to provide end-to-end quality. We are good at this. We also have a good ability to deliver. A good example of why I believe that this is true is that, for example, the last seven years, our customer churn in Connectivity has been practically zero. Our customers have ambitious targets regarding sustainability, information security, and other safety and other standards. As was mentioned by Kari before, we are committed to a Science-Based Targets Initiative and will set the targets this year. All of our vehicles we add to our fleet will be electric vehicles in the future and from now on. We can also help increase the physical security and also minimize risk, information security, cybersecurity risks in our own operations. These three things are the main things why customers choose us.
To sum it all up, there are customer needs we can solve now better than ever. We can aggregate separate processes. We can make it simpler for the customer. There are also growth opportunities where we are good at already. We will digitalize operations and drive a predictive way of working in all our operations. Now I will ask Päivi Taberman to come up and talk a bit more about digitalization.
Thank you, Miika. Hi, my name is Päivi Taberman and I'm Head of Projects in Connectivity. In Connectivity, we have digitalized around 90% of our processes for better transparency and efficiency. Digitalization covers our operations from single maintenance jobs to large-scale fiber construction projects and network modernization rollouts. Digitalized field operations enable us to plan and prepare works in advance. It helps us to identify bottlenecks and inefficiencies in our processes and improve. We can utilize digital models from our previous deliveries to work smarter and to provide a more meaningful workday to our employees. Digitalization of field processes also enables us to bring all operations-related data to one point to both our employees and our customers. Our Net Promoter Score is 63. It is a high score in the industry. Our ability to provide transparency to our customers builds trust in our operational efficiency as their long-term partner.
It also enables us to generate an even better customer experience and create customer value. Thank you.
Thank you, Miika and Päivi. Miika, Connectivity units already have projects and services across the life cycle. Where do you see room for growth?
There are, for example, three examples. For example, as I said earlier, there are upcoming needs for upgrades, modernization. That is one clear. There are also security-related upgrades needed. There is a public safety network, Virve 2.0, which needs to be upgraded, and that is coming up, and we are working on that. There is also one third that we are not the biggest at the moment. We have made a turnaround in profitability, and that gives us abilities to grow in market share. I would say that we are ready for that now.
Great. Thank you. Now I would like to ask our CFO, Jyrki Paappa, to join us and talk us through the financials.
Good afternoon, everyone, from my side also. I am Jyrki Paappa and have been part of the Enersense team since last summer. The reason I am very satisfied with the work our team has made with the strategies here is that Enersense will be easier to forecast, having less volatility in revenue and profits, and also profit potential will be higher. All those are elements I would like to see, as I think most of you as well. As Kari already showed, the strategic targets, we are having three financial KPIs and safety and climate on top of those. They are worth repeating. The growth target will be between 4-5% annually over the whole period of time. Profitability will be measured by EBIT, not EBITDA as earlier. Our target is at the rate of 5%.
Practically, that means that we are increasing each year constantly 0.5% during the whole strategy period. What comes to our balance sheet target, net gearing, we would like to be constantly below 100%. That allows us freedom to operate without unnecessary limitations. This is also a familiar picture from Kari's presentation, but Kari was concentrating on development areas and those steps. I'm telling you still a couple of words from the financial foundation. Improving and strengthening the financial foundation started already in the last year. During Q3, we were having quite nice profit. During Q4, we continued with high cash flow. During Q1 this year, we sold our solar and wind development portfolio. Currently, we are having very important value uplift, our profitability improvement program ongoing.
Before moving there, let me remind you, I would like to remind you about the starting point about the profitability. If you remember, there was very high volatility last year, and especially Q2 with high one-off costs that were quite negative affecting our balance sheets, which has been corrected lately. However, I think it is better to calibrate the starting level from here, from adjusted EBIT figures. There you can see all the quarters are on black, and the second half is typically at a higher level and more profitable than the first half of the year. Now the value uplift program. It consists of three areas. The first one is procurement. The second one is commercial management. The third one is that we reallocate our resources to optimize strategy implementation in the future.
We have already earlier been told to you that our annual run rate target for the program is EUR 5 million EBIT improvement. The next slide shows where we are at the moment. The procurement part of the program started already in February. We have been working there very hard. We have already found out more than 50 initiatives, potential saving targets where the saving can be in each target from hundreds of thousands to tens of thousands. We are having there a gate model. This implementation and implemented gate is the last one. Those actions are already in force currently. We have done through all those gates, these two initiatives and their effect to run rate will be EUR 600,000. We have been telling also to you that we are informing you after every quarter how this program is proceeding.
The next step will be after Q2 in early August this year. However, the program has started really well, faster, and with bigger effect than I believed in the first hand. During this and end of this month, the amount of implemented initiatives will multiply. The next topic is where from our growth is planned to happen. This is about the offering basis. As you know, design and engineering is not any product we are selling as such. It is part of our sales support or integral part of our solutions, like substations. We are going to grow it, but it is not bringing us revenue as such directly. The other three ones, the biggest growing target we have been set to operations and maintenance, followed by both construction and upgrade and modernization. The outcome is as stated, compound average rate of between 4% and 5%.
That structure of growth will bring a more balanced revenue mix. If you are starting from the left-hand side, from business units, you can see that the energy transition will be growing and getting a bigger role in the whole portfolio. If we are moving to the center, you can see that both O&M and upgrades and modernization are growing in their relative shares. What comes to the geography, Nordics is a growing area. Moving forward to EBIT and development in there, we are having three sources for profit improvement. The first one is ongoing profit uplift program. The second one is the revenue mix we are targeting. The third one is growth as such. These three parts together will bring the profitability improvement we are targeting for.
I am having a couple of slides from the balance sheet, starting from net gearing, the orange line on the right-hand side. There you can see that not so far away was the level of above 100. We are having a cyclical pattern in there. It will not go anywhere. However, we want to stay constantly under 100 level. We believe it is possible. We are concentrating now on project level cash flow management and planning. We are also harmonizing our payment terms to our suppliers. The last topic I am going to present is just to remind you about our cash flow and cyclicality also in there. In the first half, typically while we are growing our operations into full scale, it requires also networking capital. While projects will end before we are having snow on ground, we are collecting the money back.
That pattern will continue also in the future, not having as much volatility as it has earlier had. I think that's all I was going to tell you.
Yes. Thank you, Jyrki. From your CFO perspective, what do you see? What is the most important financial KPI for Enersense?
No reason to pick just one. It's a balance combination. Revenue and EBIT or profitability, they are partially interlinked to each other. It's very important to have net gearing under 100% just to get the freedom to operate.
Yes.
Not only one.
Great. Thank you. We will follow the three. Now it is time for Q&A. I would like to ask my colleagues to join us here on stage. Now it is time for Q&A. We will have possibilities to ask here from the audience. Let's wait for the microphone. You are welcome, Anssi.
Yes, thank you for the presentation, Anssi Raussi from SCB. I have multiple questions, and I go one by one, but I start with your EBIT target. Just to make sure that it's about reported EBIT or adjusted.
It's reported one at the end of the strategy period.
Yes, that's clear. Thanks. Maybe then about your plans regarding capital allocation. Of course, it should be relatively strong cash flow, but is it more about deleveraging balance sheet or maybe some bolt-on M&As or dividends? How do you see this perspective?
We are already delve below 100 now, but naturally we need some buffer for the cyclicality we are having. Our strategy, as Kari was saying in the earlier part of the presentation, is that this is now without M&A. If M&A will happen on top of this, it will be a different picture. No big intentions for capital expenditure at all.
You confirm basically that maybe we should expect something like the current level, CapEx-wise?
Yes, we believe the portfolio we are having and also the expertise we are having and organic growth is the best sort of growth.
If I may continue, you mentioned digital and software solutions many times, but how do you plan to handle this? I guess it's natural to think that it will be an external provider, but do you need multiple external providers or how does this work?
Maybe I could, yeah, thanks, Anssi, for the question. We are constructing that plan. We have part of the digitalization platform existing, especially in Miika's business in Connectivity. We are expanding that. At the moment, we are working on the, for example, if you refer to remote centers, how far can the current one expand that we are using for P2X, for example, and what do we need to expand it to all businesses? We do not yet have one answer to that, one recipe. We have, Harry is unfortunately not here. He is finishing his MBA studies, but we have a new person who joined us two weeks ago from a competitor, an expert in the area of digitalization of services and in particular condition-based maintenance. With him, we are building the plan.
Much of it exists in terms of, or all of it exists in terms of commercial components to build the stack. It is not, hence it is compliant with what Jyrki was saying on the capital expenditure needs. Yes, it requires some investment, but by now, nothing in there is sort of super investment intensive. It is all based on commercial components.
Okay, thanks. Maybe the last one from me for now. You have been talking about this life cycle model and you want to be closer to your key customers. Are you planning to change your agreement structure as well, for example, from maybe more like transaction-based agreements to more service or maintenance or more fixed-based agreements with your customers?
Yes, definitely. It's part of it. It's that third key development area. How do we extract value out of this life cycle model? Yes, the transactional contract is quite different from a contract where we sell an outcome. Hence, it has been chosen as the third key development area to have the right type of monetization and contract type.
Thank you.
We could then have one question from the webcast audience about the value uplift program. There is a question that is the EUR 5 million EBIT run rate target. Is it ambitious enough? Why does it take one year to achieve it? Yes, basically that. Could we achieve even more in the value uplift?
It was a starting point before having any initiatives. I said we are going to report progressively after every quarter.
Yes, thank you. Do we have other questions from the audience, please?
Yeah, thanks for the great presentations. Kaisa Vanha-Perttula from Inderes. I have a few questions as well. If I begin with Connectivity, in your view, how long is the remaining investment cycle for the fiber construction in Finland?
You mean FTTH, Fiber to the Home? Hard to say. There are different strategies with the operators. Some are slowing down and some are just increasing already, or still increasing. Hard to say exactly, but some years.
Okay, that's enough. Thanks. Then to the power, what are the differences between the investment outlooks in Finland and the Baltics?
Both are now seeing more and more renewable energy investments. Baltics especially, so there has not been too many of them in the past, but now we are seeing progression there as well. There has been like a two-year quite quiet period in Finland, and we are seeing a nice improvement and activity in that market as well. We are positive in that sense.
Sounds great. I would like to ask, what is the role with the non-core offshore and marine business play in the portfolio over, let's say, maybe next one, two, three years?
Yeah, that's a pretty long time period. As it is not part of core, it is possible that it is not part of our business over, say, one, two, three years. We continue that assessment and looking for the best possible outcome.
Okay. Maybe the last question from my side. For the financial targets, is the profitability target EBIT over 5% the same for all segments, or how does it go?
It's a combination, no separate target. Naturally, internally, we want to provide constant improvement in everywhere.
Okay, that's all for me. Thank you so much.
Thank you. Let's have one more question from the webcast audience about also the non-core business, marine and offshore unit. How could marine and offshore unit take part in the upcoming icebreaker deals?
Any deals are, of course, specific to the two parties. Closing a deal, but I just answered generically, but specifically, the thicker the steel and the bigger the part you create out of that, the more Mäntyluoto is needed. Ultimately, for the biggest parts of steel and thickest, there is only Mäntyluoto in this country that can provide them. Our belief, based on this assessment and seeing what happens in the market, is that the supply chains amongst the providers of such steel constructions, the others being in other countries around the Baltics and Germany and maybe some further south, because of what is happening in the world altogether, the order books are filling in. That is why it looks also that we could play a role in there.
Thank you. Back to the audience.
Yes, Anssi again. A couple more from me. Maybe first about Connectivity and 6G cycle. What kind of opportunities or is it basically continuing as the business is right now?
6G will come for certain. I would say that the change or the shift between the T's is not as dramatic as between two and three and four. It is changing. It is going to smaller and smaller cells, which means more density of sites. It also means that it is more about technology and the services it provides. It is not so much about, like in our business, it is not that big a deal. It is more a constant level of work in a way.
Thanks. One question regarding the marine and the offshore unit. You have been quite clear that you want to fill your order books maybe before making any big decisions here. How does the order pipeline look right now?
It is developing in a promising manner. There are three areas which we work on. One is this marine construction, icebreakers in particular. The second is continuing on the offshore wind. Those investments have been slightly delayed, but they do exist and they are in the pipeline. Some of them are becoming more concrete now. The third is different types of heavy metal structures for industry, such as those needed in carbon capture. We are focusing. We have been earlier too much focused on offshore wind only based on key capabilities we have there and the pilots we have done in that space. Now the change we have done over the past half year or so is to develop all three of these opportunities.
How do you see the size of these possible individual orders? Is it necessary that you will always announce or give an announcement about that order if you get some?
is hard to say clearly that upfront, but just based on what we look for is not one-time projects, one-time deliveries. The profitability in that type of business also is better when you get repeatability. Typically, we are patiently looking for larger opportunities rather than individual steel constructions for somewhere. We have actually turned down a lot recently just to bring focus and to focus on those three areas. We would rather have longer multi-year deals with a lot of repetition than quick wins, which seldom are quick wins because in that business, the first one you build is less profitable than the next ones.
Okay, thanks. That is clear. Lastly, one question regarding the service business. You gave us some numbers regarding your maintenance base in renewable business, but can you give us any rough number about the revenue currently so we could maybe estimate the future potential once the activity accelerates in that business area?
That 40% is a revenue share which we had in 2024. Like Jyrki showed, operations and maintenance is the part that is relatively speaking going to grow the most. Also, upgrades and modernization, which will count into service.
Thanks. This is Pasi from Nordea. Just to follow up regarding this marine and offshore business unit. You are able to keep it roughly about, let's say, two years from now just to build up the kind of order book for the operations?
Yes, we are. That's why we patiently do it. A yard is sort of used to ups and downs. In other words, the flexibility is good. The fixed cost level is rather low. The people are on lomautus, like we say in Finnish, so furloughs now, which brings the cost level down. It's not unique in a yard's history. We have the capability to ramp it up fast. Last year, the level of activity was very high. We employed close to 800 people, individuals throughout the year. Now we are very low and will be able to ramp it up again.
Is it going to be a kind of a track for your financial target of 5% in terms of margins, or is it actually kind of supporting your financial targets currently?
In the first quarter, it was clearly profitable.
Under this 5%?
No, we don't give individual figures of the profitability of the business lines.
Yes, I understand. The second question is regarding these data centers. I mean, everyone is now building data centers around Finland. Could you give us an example of one project? Is there any business model for, in essence, when data centers are built? What would that be in terms of millions of EUR per site then?
Yeah. I can't name a single public data center reference, but our angle is basically they're big consumers. Everything that relates to the grid around it would be our work. Also connectivity works and such. Not so much what happens inside the data center. According to our life cycle approach, we're mostly interested in not just the initial construction, but the maintenance phase that follows from that.
There is still kind of a work regarding the connections and.
Absolutely.
Are we speaking about EUR 5 million, EUR 10 million, EUR 50 million per site?
Depends on the site, but the figures are easily large.
Okay, fully understood. Then regarding the wind power investments in Finland, I have understood that we are still running at very low levels in terms of investments to wind. I just wonder, do you truly see that there is a kind of any way to get back to those kind of very good years in terms of wind power related investments in Finland? Are we going to see permanently lower figures going forward than we have seen past the five-10 years period?
It is a bit hard and you may complement to say where it will land, but when I look at the evolution of our own pipeline over the past half year, it has clearly grown in size a lot. There are a lot of projects out there that we are working on. It is good to remember that a wind power project, in our case, in terms of what we would provide, is many different systems around it. It is the landworks, the roadworks, it is the lines, it is the substation. They often come nowadays with their BESS, their battery energy storage system. We can do all of that. From our perspective, it is very active at the moment, unlike it was last year.
Okay, I see. Maybe lastly regarding your business model. What is the amount of projects you do have a fixed price or the own risk regarding the profitability or the success of the project? In terms of kind of % of total net sales or other projects?
I'm not sure we have a percentage in mind. Completely fixed, I believe none. We have done quite diligent work in our project risk management in terms of the indexations and price change clauses. We have reviewed all of them now in the past months as we have gone through the performance of the company before starting to actively work on this strategy.
If we are giving fixed prices, they are quite typically back to back to our suppliers as well.
Okay, I see. What is the kind of the biggest risks usually on the project you are running at? If you are going to see a kind of disappointment outcome in terms of profitability, where actually comes from then?
Execution failure, which we, knock on wood, haven't had at least during my time in any meaningful manner.
So it's.
It's rather a strength of ours.
Yeah, so it's related to kind of a project calculation and kind of pricing of the services.
Okay, understood. Thanks.
We put a lot of emphasis into reviewing all of these projects along the different gates before we enter these contracts. It is a very relevant question. They can easily hurt if you do not do that diligently.
Thank you. Are there any other questions from the audience? I think we may have time for just one. If not, then it's time to wrap up our CMD. Kari, would you like to say a few words?
Sure. Thank you for your attention this far. Let's go to a short wrap-up of the day. We started with our key messages today. Enersense is stronger than ever and now more focused than ever. We now have, with the life cycle partner strategy, a solid plan for sustainable growth. We have a new ambition to increase shareholder value. Our life cycle partner strategy revolves around five cornerstones. A very good understanding of the market assessed together with our customers, which we turn into understanding our customers' needs and what does our portfolio need to become over the life cycle of their assets to be the most relevant partner for them. We have three very clear development areas in order to get to such a value for our customers.
At the basis of this, the way we develop ourselves, the people approach, is that we continuously learn for tomorrow along the sustainable growth path. We want to be the community that experts themselves choose. Our strategic targets are here. There are five of them. In summary, why would one invest in Enersense? In our view, this is threefold. We have a strong team and expertise. We have a strategy that creates value and enhances business resilience. We have an ambition to increase shareholder value. With a team and expertise, we mean what we're doing now to put leaders with proven track record steering performance towards clearly defined targets. We have already leading expertise in key growth areas. We have spoken of many of them here. I'll just repeat some.
What we're doing, Mikko told us about what we're doing in the energy transition of a municipal energy provider. That's clearly an area of growth. We're the strongest in there. We're the only company that learns every hour about operating a green hydrogen plant. The position we have in connectivity is stronger in the market than anyone else's. The way we understand the customer's challenges and what they need forward makes us unique. Our expertise, and that's why the strategy is laid like this based on expertise every day, is that the expertise and the growing markets are very well aligned. This life cycle partner strategy creates value and resilience. There's a business model where we emphasize strong and long customer relationships. The portfolio itself is a good mix of continuity and growth.
In our ambition to increase shareholder value, we have created ourselves a very clear path to reach these financial targets. We are continuing to reinforce our financial foundation with further gains coming from this value uplift program, which will run the early part of the strategy period and which has started even stronger and with more impact than we originally targeted for. We are going to update on that next time at Q2. This is the new Enersense, our purpose, delivering the essentials of tomorrow's society. Thank you for your attention today.
Thank you for your participation and your time. We truly hope that this CMD has given you new insights of Enersense. Let's keep in touch and see you soon.