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.
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.
Strategic, Business and Financial objectives
The company aims to be the most attractive green transition partner for the construction, concrete, cement and mining industries. On February 14, 2024, Betolar's Board of Directors confirmed the company's updated mid-term business and financial objectives. The updated business and financial goals are based on the company's previously announced strategy, which remains unchanged (published on 29 March 2023).
Medium-term (2024-2026) business objectives:
- Accelerating research and application development of alternative side streams
- Creating a stronger position and value creation potential in the value chain of side streams
- Global scaling of Betolar's solutions to high-volume and scalable customer segments
- Expansion into key markets based on demand for green transition, availability of side streams and Betolar's ability to deliver economic value through productised applications
- Building a data-driven business ecosystem
- Development of commercial platform services on Betolar's AI platform
Medium and long-term financial targets:
- Medium term: Net sales of €50-100 million at the end of 2026 and achieving positive cash flow from operating activities during 2026
- Long term: Net sales of more than EUR 1 billion and an EBITDA margin of 30% by the end of 2033
Betolar estimates that it is in a better position than other operators in the industry to meet the needs of research and commercialization of alternative binders. The company has a globally scalable operating model with light fixed asset needs, very strong side stream expertise and a data-driven business ecosystem platform as a competitive advantage. In the early stages, the company has focused on the systematic use of data in its product development processes. During the strategy period, the company will accelerate the creation of commercial services on Betolar's artificial intelligence platform. The success of the strategy highlights the rapid development and productisation of alternative side streams.