Strategy and targets

Accelerating the green transition in construction

Betolar's cement replacement material technology and related solutions enable CO² emission reductions and lower the usage of virgin raw materials. We want to be the most desirable partner in green transition for the construction, concrete, cement and mining industries.

Global trends drive green growth

The demand and growth of Betolar's solution are driven by four significant megatrends.  

1. Climate change. Slowing down and adapting to climate change affects societies globally. Reducing carbon dioxide emissions in various sectors, such as construction, infrastructure and mining, plays a key role.   Climate change mitigation will generate new green innovations, change the behaviour and values of builders, developers and financiers, and introduce new green regulation.

2. Circular Economy.  The importance of the circular economy is growing rapidly as the sustainability problems of the traditional  economy model increase.  The use of virgin natural resources is a growing threat to biodiversity. The use of recycled and side stream materials in building materialsis growing strongly.  

3. Urbanisation and ageing infrastructure.  New and replacement construction will grow with urbanisation. Ageing infrastructure and infrastructure require complete repair or renovation around the world. Despite alternative building materials, the demand for cement continues to grow.  

4. Localization and geopolitical uncertainty. Geopolitic risks contribute to ensuring the sustainability of global supply chains, reducing dependence on them and strengthening security of supply.  The new material solutions of the future will increasingly be based on the use of local side streams. This will strengthen both local raw material sourcing and reduce emissions associated with long supply chains.

Strategy 2023–2026

Transition towards a more sustainable future. Betolar's mission is to help reduce CO2 emissions and the use of virgin raw materials.

Betolar’s updated strategy is based on five key themes that direct the company to: 

1. Focus on identifying, developing and productizing alternative side streams – especially in case of inexpensive waste streams;

2. Seek stronger position in the sidestream value chain for example through partnerships or investments;

3. Accelerate solution development to large-volume and scalable customer segments in construction elements and mining industry;

4. Focus sales and marketing in selected key markets by finding best match for green demand, side stream availability, and Betolar’s ability to generate added value by productized applications;

5. Continue developing data-based business ecosystem where Betolar AI platform’s role is central.

Operational targets

Betolar has the following short term (within 1-2 years) business targets:

• 10-15 pilot cases per year with new customers with significant volume potential, based on the Company's more than 150 potential identified customer pipeline
• First commercial customer agreements
• Ramping up delivery and sales organisations
• Expanding brand and marketing operations to targets markets
• Strong R&D based solution co-creation and value chain development with industry partners and customers
• Launch Geoprime^® Academy training platform
• Automated laboratory piloting and artificial intelligence platform development

In the medium term (within 4-6 years) Betolar has the following business targets:

• Scale up Betolar solution globally
• Reach 100 commercial agreements
• Scaling number of applications and production volume with Betolar AI platform and ecosystem
• Strong global sales, marketing and delivery capabilities

In the long term (within 10 years) Betolar has the following business targets:

• R&D expenditure approximately 5% of the Company’s targeted revenue
• Geoprime^® brand as one of the leading among environmentally sustainable products within the building materials industry
• Reach cumulative 150 million tonnes CO2 emission savings (compared to the average CO2 emissions of Portland Cement at 2021 level)
  
  
  

Financial targets

In addition to business targets, Betolar has the following medium- and long-term financial targets based on its scalable business model:  

Medium term: Reach revenues of EUR 200 million and a positive cash flow from operating activities by year 2026  

Long term: Reach revenues of over EUR 1 billion and an EBITDA margin of 30% within 10 years Financial targets