Betolar Oyj · OMXHEX:BETOLAR
Betolar Oyj — Investor Presentation (January 2023)
35 slides from Betolar Oyj's investor presentation, Jan 13, 2023
Slide 1: Investor Presentation
Investor Presentation 13 January 2023
Slide 2: Agenda
Agenda • Betolar’s Growth Strategy Progressing Riku Kytömäki - Chief Executive Officer Riikka Ylikoski - Chief Financial Officer • Update on Geoprime® Sales and Marketing Ville Voipio - Chief Commercial Officer • Betolar’s Technology and R&D Advancements Jarno Poskela - Chief Technology Officer Beto
Slide 3: Challenge #1
Challenge #1 The construction industry is one of the most polluting sectors, creating well over 20% of the global CO2 emissions. One of the biggest single contributor is cement, which generates more global GHG emissions than for example the aviation industry. CO2 emissions from cement >8%
Slide 4: Challenge #2
Challenge #2 Various industries are producing billions of tons of industrial side streams that end up in ponds and landfills. These side streams are often hazardous and pose a great risk if leaked into the environment. Some annual numbers Coal ash Mine waste (tailings) >1B t >12.7 B t Slag >400M t
Slide 5: Geoprime Solution
Geoprime Solution ® 100% cement free material technology innovation
Slide 6: Mission Values
Mission Values Betolar's mission is to Courage help reduce CO2 Commitment to responsibility emissions and the use Working together of virgin raw materials in construction. Betolar Plc's Half-year Financial Report 1-6/2022 08/31/2022
Slide 7: Betolar’s Journey
Commercialisation Betolar’s Journey >60 employees Partnership agreements IBF, Denmark Commercial viability TARA, India Product development Lujabetoni Oy, Finland Commercial contracts are signed in Europe First significant Successful pilots of and Asia, with a total investor Ajanta Oy paving stone pr
Slide 8: Operating environment
Operating environment • As the construction industry has adopted green and net zero targets, and due to increasing ESG regulation, the demand for low-carbon building materials is growing rapidly. • The increasing number of Betolar pilot projects and other market feedback show that the construction i
Slide 9: Betolar expanding internationally
Betolar expanding internationally Geoprime products were launched at key trade shows in APAC and EMEA Bauma, Munich Vietnam Vietnam World’s largest construction event with >600k visitors Commercial ramp up Abhishek Bhattacharya World of Concrete, Mumbai Nürnberg, Germany Leading concrete show in Ind
Slide 10: Betolar has a strong and experienced management team and board
Betolar has a strong and experienced management team and board Management Team Board Riku Kytömäki Riikka Ylikoski Janne Rauramo Antti Uski Tero Ojanperä Inka Mero Ilkka Salonen President & CEO Chief Financial Officer Executive VP Strategic Chief Human Resources Board Member Board Member Chair Partn
Slide 11: Business and financial targets
Business and financial targets Targets set in conjunction with the IPO Short term Medium term Long term (within 1-2 years) (within 4-6 years) (within 10 years) • 10–15 pilot projects annually with new • Global scale-up of Betolar’s solutions; • R&D expenditure approximately 5% of the net customers o
Slide 12: Expenditure overview H1/2022
Expenditure overview H1/2022 Expenditure in Main items Estimated development / H1/2022 (in order of significance) Cash burn management plan 1. Material Development • Continuous investments to RnD EUR CAPEX 0.8 2. Digital infrastructure • Investments to innovation center million 3. AI Platform • Proj
Slide 13: Establishing corporate processes
Establishing corporate processes Betolar is transitioning from start-up company model to a resource efficient, more structured and controlled organising model. The organisational model will be as low hierarchy as possible. New processes introduced in the last 12 months • QEHS Quality System • Risk p
Slide 14: IFRS transition
IFRS transition The transition to IFRS reporting is estimated to support the company’s growth strategy, increase the comparability of financial figures and increase the interest of international investors in the company. • The IFRS transition date was 1 January 2021 • Annual report with IFRS financi
Slide 15: Key Figures 1-9/2022
Key Figures 1-9/2022 Financial key figures 1–9 1–9 1–12 (1,000 € unless otherwise specified) 2022 2021 2021 Net sales 65 0 10 EBITDA 1 -7,231 -1,837 -3,171 Cash and cash equivalents 30,328 2,892 37,355 (at the end of the period) Operational key figures 1–9/2022 1–9/2021 1–12/2021 Personnel (average
Slide 16: Geoprime® Sales and Marketing
Geoprime® Sales and Marketing Ville Voipio
Slide 17: Geoprime
Geoprime ® Next-generation, low carbon construction material and a sustainable alternative to cement. Low-carbon Circular High-quality 80% Up to 80% CO2 savings 95% Enables circular business 100% Geoprime® meets all the compared to cement- by utilizing up to 95% of required standards. based material
Slide 18: Betolar Scaling Internationally
Betolar Scaling Internationally By Q3 ‘22 • Sneh Precast • Shiv Tiles • Balaiji Cement Products Pilots conducted Commercial or strategic Copyright Betolar Ltd. All rights reserved. 17.1.2023 agreement signed
Slide 19: Moving with Geoprime from entry markets to three major industries in 2023-26
Moving with Geoprime from entry markets to three major industries in 2023-26 2022 2023 2024 2025 PRECAST CONSTRUCTION MINING WASTE UPCYCLING Non-structural small concrete Large structural concrete elements Concrete solutions used in global Industrial sidestreams requiring products, e.g. paving block
Slide 20: Geoprime is compliant with the current value chain
PRECAST Geoprime is compliant with the current value chain Cement Traditional providers Compared to the traditional value Aggregates Pre-cast Building Developers chain in the pre-cast concrete providers manufacturers contractors market, Betolar completely sidesteps cement providers. Additive provide
Slide 21: The business model enables multiple revenue streams
PRECAST The business model enables multiple revenue streams PRECAST COMPANIES HAVE TYPICALLY SEVERAL PRODUCT LINES TO CONVERT Recurring business • License fee From pilot up • Chemical sales ramp- • Technical support to production ction € Produ Consulting Project business project • Feasibility study
Slide 22: Geoprime is a game-changer
CONSTRUCTION Geoprime is a game-changer IN THE SUSTAINABLE CONSTRUCTION INDUSTRY • Low-carbon materials account for 40% of the emissions in a building life-cycle • Construction industry is becoming increasingly committed to sustainability due to consumer and regulatory pressure • Green financing sup
Slide 23: Global mining market
MINING Global mining market Global mining market expected to grow 8% p.a. by 2025 Global mining market size, 2020-2025, B$ Active mines globally, 2010-2019 -1% 2 429 14 300 14 200 14 100 +8% 13 800 13 600 2 267 13 300 13 100 13 100 13 100 13 000 2 076 2 117 486 453 1 846 395 423 219 1 642 204 369 17
Slide 24: Global mining companies and social licence to operate
MINING Global mining companies and social licence to operate ESG will be the biggest driver of mining business model change in the next three years Mining industry main risks, 2022 1 Environmental risks, including new regulations 2 Commodity price risk 84% 72% 87% 3 Community relations and social li
Slide 25: Key Themes in Commercial Unit, 2023
Key Themes in Commercial Unit, 2023 Transfering Geoprime Tools, processes, and Driving penetration approach to major productization with proven portfolio industries § Internal capability § Geoprime provide a solid set of § Geoprime approach has been development continues to applications to support p
Slide 26: Betolar’s Technology and R&D Advancements
Betolar’s Technology and R&D Advancements Jarno Poskela
Slide 27: Technology development 2022
28 Technology development 2022 of company employees working in technology 50% development Development teams (Innovation, Research, 5 Product development, Digitalization, Laboratory) 20 + Ongoing RDI projects 200+ Implemented customer pilots
Slide 28: Material research at Betolar
29 Material research at Betolar MATERIAL ANALYSIS LABORATORY RESEARCH PRODUCTION & PRODUCT • Potential of side streams to be used TESTING • Trials in lab scale based on as raw material in Geoprime solution characterization • Factory scale tests are evaluated • Testing the chemical and • Tests requir
Slide 29: Alternative side streams - examples
Alternative side streams - examples Overview of certain raw material substitutes in cement clinker production Slag Fly ash Natural Silica (GGBFS or Rice husk Clay Bauxite (class F) pozzolans fume SSM) Annual1 Widely Good ~600-900 ~480-560 22 1-2.5 55-74 bt4 production, m tons available3 availability
Slide 30: Example - Utilizing vanadium-purified slag (SSM slag) in Geoprime solution
Example - Utilizing vanadium-purified slag (SSM slag) in Geoprime solution • Betolar started in 2020 a study on the utilization of vanadium-cleaned slag from the steel industry in the production of cement-free concrete. • About 300 thousand tons of purified slag would be produced annually à end up i
Slide 31: Product development – focus on more value-added products
Product development – focus on more value-added products The advantages of hollow-core slabs in construction 1 QUALITY Products manufactured in factory conditions can be better optimized than the concrete recipe. Also, weather conditions do not cause any changes in hardening. 2 TIME Prefabricated ho
Slide 32: Hollow core slab emissions - kg CO₂ /m²
Hollow core slab emissions - kg CO₂ /m² 120,00% 100,00% 100,00% 80,00% 60,00% 60,00% 40,00% 20,00% 20,00% 0,00% Typical Hollow core typical low-carbon hollow core Geoprime hollow core CO2 - emissions Copyright Betolar Ltd. All rights reserved.
Slide 33: Digitalization at Betolar
Digitalization at Betolar A key goal for Betolar’s digital platform team is to develop digital solutions and AI models necessary to scalably commercialize Geoprime and collect valuable data in the process. Development can be divided in 4 key focus areas. 1. Collecting high quality data 2. Leverage d
Slide 34: Data platform progress
Data platform progress • Connected laboratory initiative 2022: focus on collecting high quality R&D data • Projects to improve our ability to collect high quality R&D data from our laboratories in Kannonkoski and Espoo • IoT solutions have been implemented at Kannonkoski laboratory • Short-term focu
Slide 35: Enabling innovations in the future - Investment in Innovation Center in Kannonkoski
Enabling innovations in the future - Investment in Innovation Center in Kannonkoski 1. Enabling new experiments 2. Developing demanding structural elements 3. Researching new side streams 4. Scaling of laboratory operations