STAKEHOLDER MAGAZINE 2021 LEADING IN SMART ENERGY PAGE 10 ENSTO FIGHTS BUSHFIRES PAGE 14 LIGHTING NORWAY'S TUNNELS PAGE 22 TWO BUSINESSES, TWO FOCUSES Ensto's two businesses position the company for the new normal2 ENSTO TODAY 2021 04 From the CEO: Healthy in Every Way 08 Electricity ras liberator 10 Smart energy: The Ensto Way 12 Mika Haikola: Ensto DSO chases ambitious growth 14 Ensto fights bushfires in Australia 18 Marjo Miettinen: Different, Not Crazy 22 Ensto in Norway: Lighting Norway's tunnels 26 Ensto Building Systems: Focused and agile 28 EBS's Lucky 7: Ensto Building Systems takes it even further 30 :Anssi Savelius: f R&DThe Heart of R&D 32 Ensto’s EV charging: TA Companies chooses Ensto’s EV charging solutions for the electrical future of its residents. 34 Auguste's second life 36 der:Niko Helander: erationsEnsto Operations 40 Ensto Operations Ensto strives for operational excellence. 42 4 Ensto Renley Ensto’s “Two businesses, two focuses” strategy drove the acquisition of Renley in Ireland. 44 Pekka Puustinen: Ensto’s newest board mem ber on strategies for success in an unpredictable world. CONTENTS Ensto Today 2021 Marjo Miettinen, one of Ensto’s owners and Chairman of the Board, remarks on Ensto’s new strategy and the history behind it. 18 48 University cooperation: Getting smarter together 51 News What's new in Ensto 54 Jessica Kerttunen: Ensto sponsors Finnish para dressage rider 55 EnstoMan: ened dailyThe enlightened daily EnstoMan.grind of EnstoMan.Editor-in-Chief Pia Hänninen Managing Editor Jenni Niemelä Contributing Editors Scott Diel, Jenni Niemelä, Kaisa Kaikkonen Layout and Design Ari Anttonen Printed by PunaMusta Oy Ensto Today is published by Ensto Group. All rights reserved. Reproduction in part or in whole by permission only. Stay tuned to Ensto with Ensto Today Online at ensto.com/newsroom Contact Information ENSTO GROUP Ensio Miettisen katu 2, P.O. Box 77 06101 POR VOO, FINLAND Tel. +358 204 7621 ensto@ensto.com ensto.com Follow us facebook.com/EnstoGroup twitter.com/EnstoGroup linkedin.com/company/ensto youtube.com/user/EnstoGroup instagram.com/EnstoGroup Cover: Ensto's two businesses position the company for the new normal Ensto Today is the voice of Ensto Group. This issue is all about Ensto’s new strategy, “Two businesses, two focuses,” and the thinking behind restructuring Ensto Group into two separate busi- nesses. This strategy is what enables us to focus and specialize, and to be more customer-centric than our competition. This issue is also all about smart: our smart solutions, smart technology, and how we’re making electricity smart by working closely with both our customers and academic institutions like Aalto University. You’ll also see how Ensto is battling Covid in a way that we’ll come out stronger than ever, both in our capacity to serve customers, as well as on our balance sheet. We’ve seen the world change dramatically in the last year. Ensto is keeping pace with that change. This magazine shows exactly how we’re adapting in order to meet that change and while continuing to meet the needs of our customers. From the Editor The Strategy Behind Success Pia Hänninen Head of Brand and Communications ENSTO TODAY 2021 3 ClimateCalc CC-000025/FI PunaMusta Printing C L I M A T E N E U T R A L PR I N T E D M A T T E R4 ENSTO TODAY 2021 ensto today | FROM THE CEOENSTO TODAY 2021 5 Ensto’s “Two businesses, two focuses” strategy positions the company for the new normal. Ensto: HEALTHY IN EVERY WAY Scott Diel Oscar Lindell6 ENSTO TODAY 2021 ensto today | FROM THE CEOENSTO TODAY 2021 7 I n 2013, Hannu Keinänen left Ensto for the electro- nics manufacturing business. In February 2019, after six years away, he returned home to Ensto as its CEO. A short time later, the company was greeted by a global pandemic. But Covid-19 did not hit Ensto as hard as other companies. Before the pandemic, Ensto had already con- solidated factories, outsourced some production, reduced its product offerings, and reduced fix costs. “Thanks to steps we’d already taken, Ensto is very healthy today,” says Keinänen. “Our top-line revenue is down thanks to the pandemic, but our profitability is up.” It’s not only financial health that Ensto enjoys. The company has had relatively few Corona infections in its facilities and offices worldwide. “We’ve altered shifts, put up barriers, done whatever takes,” says Keinänen. “Ensto is a place that stops the virus, not spreads it. We even have lower absenteeism than normal. What the pandemic did for us is force us to ask ourselves the question: ‘How we will be a winner in the new normal?’” WINNING IN THE NEW NORMAL: TWO BUSINESSES, TWO FOCUSES To exploit the new normal, by December 31, 2020, Ensto has completed its restructuring into two separate busi- nesses along a strategy termed “Two businesses, two focuses.” The strategy allows employees in both busi- nesses to focus and specialize, to be more customer- and business centric. The first, our electricity distribution business, Ensto DSO, has the ambition to become the global leading expert for distribution system operators in select market segments. It seeks technology leadership in full covered conductor solution technology, underground networks business for cold shrink medium voltage, as well as the cyber-secured network automation business. Its growth will be primarily organic, through product development and market expansion. The second, our building electrification business, Ensto Building Systems, will seek dominance in the Nordics and selected market niches. Ensto Building Systems will also compete in product-specific niches — like marine in Italy — where it has the potential to dominate. “The building segment is tough when it comes to profitability,” says Keinänen, “so the unit will have the ability to be selective where they put their costs and resources.” While Ensto DSO and Ensto Building Systems are separate businesses, Keinänen says there will be instances when they’ll work together. "There is room for cooper- ation between them, but we’ll do it when it’s beneficial to both." ENSTO’S 100TH ANNIVERSARY Keinänen is one who carefully monitors electricity and public opinion. He’s noticed dramatic changes over the past decade. "A decade ago, electricity still conjured a lot of negative associations, like burning coal. Nuclear power was seen negatively. But now, thanks to the penetration of renewables, it's clear that electricity has new role to play." Today, he says, electricity is almost like a basic human right, an enabler of modern society and a builder of equal- ity. “Electricity gave time to mother and children, allowed education, and this should happen globally.” It’s not hard to get Keinänen to evangelize. “Electricity is the most efficient way to move energy from point A to point B. A power line for electricity is triple as effi- cient as any mechanical or hydraulic means of power transmission. Electric vehicles are four times more effi- cient than internal combustion cars. An LED is ten times more efficient than an incandescent bulb. Wind power is on par with any fossil fuels burning plant in cost per kilowatt hour.” But since the wind doesn’t always blow, and the sun doesn’t always shine, smart solutions like those Ensto makes are essential to efficiency. “Ensto is all about a better life with electricity,” says Keinänen. “Ensio Miettinen started this company 63 years ago, and now everything is getting smarter. If we make the right choices now to stay healthy in every respect, then in 37 years’ time we will celebrate our 100th anniversary.” WHAT THE PANDEMIC DID FOR US IS FORCE US TO ASK OURSELVES THE QUESTION: ‘HOW WE WILL BE A WINNER IN THE NEW NORMAL?' HANNU KEINÄNEN President and CEO of Ensto8 ENSTO TODAY 2021 ELECTRICITY AS LIBERATOR Scott Diel Shutterstock truly a major solution to many of the major problems con- fronting the world.” A BETTER INVESTMENT Ironically, the chant, "drill, baby, drill," popularized by Republican Vice-Presidential candidate Sarah Palin, has faded as the rallying cry of American energy. And although gas is now seen as the world’s new offender, there are signs that electricity can save it. Electricity, when mixed with renewable hydrogen, becomes a greenhouse gas reducer. The explanation, while slightly technical, is worth a mention. Only a decade ago, electricity was considered dirty and carried negative connotations. Today, it’s hailed as a rescuer. I n 2012, electricity was seen as a bad thing,” recalls Hannu Keinänen , Ensto’s President and CEO, who was also an Ensto executive a decade ago. “There was very limited penetration of renewables in those days.” “The electric grid and electricity overall is much cleaner than it was two decade ago, and modern electric appliances need far less energy to run than older equipment,” says Keinänen. “But electricity is so much more than that. Electricity has a role in solving big issues like climate change by bringing smart solutions which enable a greater market share for renewable and carbon free energy. It can support urbanization and help support the aging population. It’s ensto today | ISSUESENSTO TODAY 2021 9 WE’RE THE MOST RELIABLE, BUT WE CAN ALSO BECOME THE SMARTEST. THIS IS A GREAT OPPORTUNITY. SMART ELECTRICITY CAN BE THE NEXT NOKIA OF FINLAND. HANNU KEINÄNEN President and CEO of Ensto There are plans to mix renewable hydrogen to the gas supply to lower the greenhouse gas emissions: hydrogen can be produced with excess renewable electricity when there is no demand for it, and hydrogen burns completely clean, the only byproduct being water. On the investments front, renewable energy is seen as a better investment than gas-fired transition plants. Even big oil companies, under pressure from governments and investors, are accelerating production of clean energy. There seems little doubt that renewables will be the main genera- tors of electricity by 2025 and electricity is poised to even- tually put the final nail in the coffin of fossil fuels. During the pandemic, electricity generated by renewables is fore- cast to grow seven percent, while overall energy demand is expected to be down five percent. MORE THAN CLEAN ENERGY But electricity, as Ensto’s Hannu Keinänen sees it, is far more than just clean energy. Electricity liberates, enables, and empowers. “Think of the poorest parts of Africa,” says Keinänen, “and how a mother’s time is used. Much of it goes to fetch the firewood or carry water. If we could bring electricity to them, then the mother won’t have to spend all day gather- ing wood. Dark evenings can be filled with light to permit education. Mobile devices can be charged at home, saving the journey to town to charge at a café.” Electricity as a fun- damental right of a human being is an issue that’s being explored and debated by academics and politicians. “Electricity can help bring equality, and raise women’s position in society,” says Keinänen. “And Ensto is a direct part of this. We need to think about how we can be an even bigger part of this change.” SAVING THE PLANET Electricity’s role in preventing climate change continues to grow. “The solution is simple,” says Keinänen. “We need to reduce the amount of fossil fuels we burn and increase our usage of clean energy.” Keinänen says one way to do this is through smart solu- tions needed to balance electricity production and consump- tion. “We can do this right now through price monitoring, checking consumption in buildings and homes, electricity quality, network automation, autonomous electricity gen- eration, and emissions pricing.” Keinänen likes to draw attention to the fact that Finland has the one of the most – if not the most – reliable electrical grids in the entire world. “We’re the most reliable,” he says, “but we can also become the smartest. This is a great oppor- tunity. Smart electricity can be the next Nokia of Finland.” Keinänen also likes to talk about a 63-year-old family company in Porvoo that plays a growing and important role in smart electricity. Next >