Half Year 2026 Betolar Oyj Earnings Call
Speaker #1: Welcome. I'm Vibheki Crowne.
Vibeke Krohn: Welcome. I'm Vibeke Krohn, and I'm the President and CEO of Betolar. Thank you for joining us today. We are here to present our Q2 numbers, and in this webcast, you'll meet myself, Vibeke Krohn, and our CEO, Mikael. I have recently joined Betolar as the CEO. Over the last past weeks, I've spent time with our employees, our board, our customer, and our partners. Piece and challenges ahead. We close off a first quarter with a continued revenue growth, strengthened financing, and a sharpened strategic focus. Betolar is our strong foundation in technology, our ability to turn market opportunities into solutions and real customer demands, both in metal extraction and critical infrastructure protection. And also finally that it's a strong company, it's a strong foundation, and a purpose-driven setup.
Vibeke Krohn: Welcome. I'm Vibeke Krohn, and I'm the President and CEO of Betolar. Thank you for joining us today. We are here to present our Q2 numbers, and in this webcast, you'll meet myself, Vibeke Krohn, and our CFO, Mikko. I have recently joined Betolar as the CEO. Over the last past weeks, I've spent time with our employees, our board, our customer, and our partners. Piece and challenges ahead. We close off a first quarter with a continued revenue growth, strengthened financing, and a sharpened strategic focus. Betolar is our strong foundation in technology, our ability to turn market opportunities into solutions and real customer demands, both in metal extraction and critical infrastructure protection. And also finally that it's a strong company, it's a strong foundation, and a purpose-driven setup.
Speaker #2: And I'm the President and CEO.
Speaker #1: Of Betolor.
Speaker #2: Thank you, Jonah, for joining us today. We are here to present our Q2 numbers and, in this webcast, you'll meet me, Vibheki Crowne, and our CEO, Mikkel.
Speaker #2: I have recently joined Betolar as CEO. Over the past few weeks, I've spent time with our employees, our board, our customers, and our partners.
Speaker #2: These are challenges ahead. We close off the first quarter with continued revenue growth, strengthened financing, and a sharpened strategic focus. Betolar is our strong foundation in technology—our ability to turn market opportunities into solutions and real customer demand, both in metal extraction and critical infrastructure protection.
Speaker #2: And also, finally, that it's a strong company, it's a strong foundation, and a purpose-driven setup. Betolar operates at the intersection of resource efficiency, critical raw materials, the circular economy, and industrial decarbonization— all topics that are becoming increasingly important globally.
Vibeke Krohn: Betolar operates in the intersection of resource efficiency, critical raw material, circular economy, and industrial decarbonization, all topics that are increasingly more important globally. Challenging geopolitics continue to highlight the importance of resilience, creating new opportunities and market demand for critical infrastructure protection and proprietary extraction of rare earth metals. Building on our strong foundation and our material knowledge, we are well-placed to meet this demand and to really drive our strategic focus areas going forward. So here today, we will share a little bit about the details, both some highlights, and we will also share financials underlying this revenue growth that has continued and our financing situation. This is our disclaimer about forward-looking statements, so please review. Our agenda today is highlights, as I said, financials, who me? Okay. So who am I? Prior to joining Betolar, I have focused on building businesses.
Vibeke Krohn: Betolar operates in the intersection of resource efficiency, critical raw material, circular economy, and industrial decarbonization, all topics that are increasingly more important globally. Challenging geopolitics continue to highlight the importance of resilience, creating new opportunities and market demand for critical infrastructure protection and proprietary extraction of rare earth metals. Building on our strong foundation and our material knowledge, we are well-placed to meet this demand and to really drive our strategic focus areas going forward. So here today, we will share a little bit about the details, both some highlights, and we will also share financials underlying this revenue growth that has continued and our financing situation. This is our disclaimer about forward-looking statements, so please review. Our agenda today is highlights, as I said, financials, who me? Okay. So who am I? Prior to joining Betolar, I have focused on building businesses.
Speaker #1: Challenging geopolitics continued to highlight the importance of resilience.
Speaker #2: Creating new opportunities and market demand for critical infrastructure protection, as well as proprietary extraction of rare earth metals.
Speaker #1: Building on our strong foundation and our material knowledge, we're well placed to meet this demand and to really drive our strategic focus areas going forward.
Speaker #2: So, here today we will share a little bit about the details, including some highlights. We will also share the financials underlying this revenue growth that has continued, as well as our financing situation.
Speaker #2: This is our disclaimer. For information about forward-looking statements, please review.
Speaker #1: Our agenda today is highlights, as I said, and financials.
Speaker #2: To me.
Speaker #1: Okay, so who am I?
Speaker #2: Prior to joining Betolar, I have focused on building businesses. I've built businesses across many markets, but mainly focused on building businesses, scaling technologies, and rapid commercialization.
Vibeke Krohn: I've built businesses across many markets, but mainly building business scaling technologies and rapid commercialization. I bring with me about 15 years of C-suite roles, CEO roles, and C-suite roles in various scale tech scale up. I'm very much driven by purpose and solving global challenges. I'm super excited about Betolar. What really attracted me was the opportunity to help scale the transition from technology development to commercial growth and industrial implementation. It is early on for me. It's my day 8 and a half. Today's focus will very much be pre my time and our current business and performance. Looking ahead, though, my priorities as CEO will be to drive commercialization and customer adaptation. We need to be disciplined, we need to be focused and execution-oriented to continue develop the company to drive value both for customers, partners, and shareholders.
Vibeke Krohn: I've built businesses across many markets, but mainly building business scaling technologies and rapid commercialization. I bring with me about 15 years of C-suite roles, CEO roles, and C-suite roles in various scale tech scale up. I'm very much driven by purpose and solving global challenges. I'm super excited about Betolar. What really attracted me was the opportunity to help scale the transition from technology development to commercial growth and industrial implementation. It is early on for me. It's my day 8 and a half. Today's focus will very much be pre my time and our current business and performance. Looking ahead, though, my priorities as CEO will be to drive commercialization and customer adaptation. We need to be disciplined, we need to be focused and execution-oriented to continue develop the company to drive value both for customers, partners, and shareholders.
Speaker #2: I bring with me about 15 years of C-suite experience, CEO roles, and other C-suite positions in various tech scale-ups. I'm very much driven by purpose and solving global challenges.
Speaker #1: I'm super excited about Betolar. What really attracted me was the opportunity to help scale the transition.
Speaker #2: From technology development to commercial growth and industrial implementation.
Speaker #1: It is early on for me. It's my day 8 and a half. Today's focus will very much be pre my time, and our current business and performance. Looking ahead, though, my priorities as CEO will be to drive commercialization and customer adaptation.
Speaker #1: We need to be disciplined, we need to be focused, and execution-oriented. We must continue to develop the company to drive value for customers, partners, and shareholders.
Speaker #2: And with that, Mikkel, I think I'll hand over to you.
Vibeke Krohn: And with that, Mikko, I think I'll hand over to you.
Vibeke Krohn: And with that, Mikko, I think I'll hand over to you.
Speaker #3: Okay, thank you, Vibheki. So let's then move to the business highlights of the second quarter. Indeed, we had quite an eventful quarter here. We will first focus on the business side and then move to the financing arrangements, which we also had during the second quarter.
Mikko Wirkkala: Okay. Thank you, Vibeke. Let's then move to the business highlights of Q2. Indeed, we had quite eventful quarter here, and we will first focus on the business side and then move to the financing arrangements, which we also had during Q2. Starting with the metal extraction side, and strengthening the financing and partnerships that what are we then using to drive the growth in our metal extraction business. Starting from the partnership with Scalewolf, and first explaining what is Scalewolf. Scalewolf is a venture capital fund, and we have been partnering with them and signed a letter of intent with them. The plan is that we are then accelerating the implementation of our MET business.
Mikko Wirkkala: Okay. Thank you, Vibeke. Let's then move to the business highlights of Q2. Indeed, we had quite eventful quarter here, and we will first focus on the business side and then move to the financing arrangements, which we also had during Q2. Starting with the metal extraction side, and strengthening the financing and partnerships that what are we then using to drive the growth in our metal extraction business. Starting from the partnership with Scalewolf, and first explaining what is Scalewolf. Scalewolf is a venture capital fund, and we have been partnering with them and signed a letter of intent with them. The plan is that we are then accelerating the implementation of our MET business.
Speaker #3: So, starting with the metal extraction side and strengthening the financing and partnerships—that's what we are then using to drive the growth in our metal extraction business.
Speaker #3: Starting from the partnership with Scale Wolf, and first explaining what is Scale Wolf: Scale Wolf is a venture capital fund, and that is our partner. We have been partnering with them and signed a letter of intent with them, and the plan is that we are then accelerating the implementation of our metal extraction technology business.
Speaker #3: And Scale Wolf is very much providing access to capital for us, together with them, and they are extremely well connected to different parties. For example, they have good NATO connections, and also they have an impressive track record in building businesses and finding funding for them.
Mikko Wirkkala: Scalewolf is very much providing access to capital for us together with them, and they are extremely well connected to the different parties there. For example, they have good NATO connections, and also they have impressive track record in building businesses and finding funding for them. The first step where they have been committed is to our financing arrangements for the convertible hybrid loan, and I will talk about that later on today. That's not all, we are also planning there to make some structural changes there under the letter of intent, and all the details will be then disclosed when we have been then executing those.
Mikko Wirkkala: Scalewolf is very much providing access to capital for us together with them, and they are extremely well connected to the different parties there. For example, they have good NATO connections, and also they have impressive track record in building businesses and finding funding for them. The first step where they have been committed is to our financing arrangements for the convertible hybrid loan, and I will talk about that later on today. That's not all, we are also planning there to make some structural changes there under the letter of intent, and all the details will be then disclosed when we have been then executing those.
Speaker #3: And the first step, that where they have been committed, is to our financing arrangements for the convertible hybrid loan, and I will talk about that later on today.
Speaker #3: But that's not all, that we are also planning there to make some structural changes there under the letter of intent, and all the details will be then disclosed that when we have been then executing those, but the plan is that we would be doing establishing a new entities under our current entity together with the Scale Wolf, and with their help then we are able to collect more capital to these entities where we can actually then create value for our sale holders and also for all the owners of different entities there.
Mikko Wirkkala: The plan is that we would be establishing new entities under our parent entity together with Scalewolf and with their help, then we are able to collect more capital to these entities where we can actually then create value for our shareholders and also for all the owners of different entities there. We will then disclose more details when we are progressing with this collaboration there, but the first step anyhow is that during Q3, then is that Scalewolf will be then participating our convertible hybrid loan program. The second new deal, what we announced there during Q2 in June, is that we secured the exclusive right to utilize titanium-rich mine tailings from Otanmäki mining area in Finland. Just to give some of the scale of how big is the mining area and the tailings there.
Mikko Wirkkala: The plan is that we would be establishing new entities under our parent entity together with Scalewolf and with their help, then we are able to collect more capital to these entities where we can actually then create value for our shareholders and also for all the owners of different entities there. We will then disclose more details when we are progressing with this collaboration there, but the first step anyhow is that during Q3, then is that Scalewolf will be then participating our convertible hybrid loan program. The second new deal, what we announced there during Q2 in June, is that we secured the exclusive right to utilize titanium-rich mine tailings from Otanmäki mining area in Finland. Just to give some of the scale of how big is the mining area and the tailings there.
Speaker #3: And we will then disclose more details that when we are progressing with this collaboration there, but the first step anyhow is that during the third quarter then is that the Scale Wolf that will be then participating that our convertible hybrid loan program.
Speaker #3: The second new deal, which we announced during the second quarter in June, is that we secured the exclusive right to utilize titanium-rich mine tailings from the Otamäki Mining Area in Finland.
Speaker #3: And just to give some scale to that, how big is the mining area and the tailings there? So, there are roughly 10 million tons of titanium-rich mine tailings in the mining area.
Mikko Wirkkala: There are roughly 10 million tons of titanium-rich mine tailings in the mining area. Otanmäki plays in Finland there, and what is then essential there that it's a closed mine, and when the mine was operating, during that time, all the extraction technologies were not that efficient. That's why the mine tailings are having big quantities of valuable metals. If we transfer the titanium value, when that has been then refined to metals, we are talking of roughly about EUR 7 billion value of the metals. It's big opportunity, and to capture the value from these mine tailings there, we need, of course, the partners. Scalewolf is the main partner there, and that's why these two arrangements are also linked.
Mikko Wirkkala: There are roughly 10 million tons of titanium-rich mine tailings in the mining area. Otanmäki plays in Finland there, and what is then essential there that it's a closed mine, and when the mine was operating, during that time, all the extraction technologies were not that efficient. That's why the mine tailings are having big quantities of valuable metals. If we transfer the titanium value, when that has been then refined to metals, we are talking of roughly about EUR 7 billion value of the metals. It's big opportunity, and to capture the value from these mine tailings there, we need, of course, the partners. Scalewolf is the main partner there, and that's why these two arrangements are also linked.
Speaker #3: And Otamäki, that's a place in Finland there, and what is then essential there is that it's a closed mine. When the mine was operating, or during that time, all the extraction technologies were not that efficient.
Speaker #3: So that's why the mine tailings are having big quantities of valuable metals. And if we transfer the titanium value when that has been then refined to a metal, so we are talking about roughly about 7 billion euro value of the metals.
Speaker #3: So it's a big opportunity, and to capture the value from these mine tailings, we need, of course, partners. ScaleWolf is the main partner there, and that's why these two arrangements are also linked.
Speaker #3: Then a third point on the metal extraction side is that we have been applying for further grants from the EU, and we secured a €2.1 million grant from the EU LIFE program. The program is called the Minerva Project, and that is a collaboration project related to the Sokli mine project.
Mikko Wirkkala: Then a third point in the metal extraction side is that we have been applying for further grants from EU. We secured a EUR 2.1 million grant from EU LIFE programme. The program is called MINERVA project, and that is then a collaboration project that is related then the Sokli mine project in Finland as well. Betolar's role there is to extract the metals out from the mine tailings and also to produce low-carbon circular cement. Regarding this project, we will then disclose also the results there when the program is then advancing. This is a multi-year program there, which is about to start during the H2 of this year.
Mikko Wirkkala: Then a third point in the metal extraction side is that we have been applying for further grants from EU. We secured a EUR 2.1 million grant from EU LIFE programme. The program is called MINERVA project, and that is then a collaboration project that is related then the Sokli mine project in Finland as well. Betolar's role there is to extract the metals out from the mine tailings and also to produce low-carbon circular cement. Regarding this project, we will then disclose also the results there when the program is then advancing. This is a multi-year program there, which is about to start during the H2 of this year.
Speaker #3: In Finland as well. And Betolar's role there is to extract the metals out from the mine tailings and also to produce low-carbon circular cement.
Speaker #3: And regarding this project that we will then disclose also the results there when the program is then advancing, and this is a multi-year program there, and which is about to start during the second half of this year.
Speaker #3: And then if we move to the critical infrastructure protection side, so we see the demand increase there and basically the increasing security concerns and then we have seen the physical damages done to the critical infrastructure and the threat is growing all the time there, and we have seen drone attacks happening there, in different parts of Europe, and also some drones landing to the Finnish side there.
Mikko Wirkkala: If we move to the critical infrastructure protection side, we see the demand increase there, and basically the increasing security concerns. Then we have seeing the physical damages done to the critical infrastructure, and the threat is growing all the time there. We have seen drone attacks happening there in different parts of Europe, and also some drones landing to the Finnish side there. We have been developing our solutions there and innovation, and we have been patenting new technologies there regarding the critical infrastructure protection side there. We have also announced the letter of intent with the cooperation with Enersense so that we can then protect electrical substations. More also to be disclosed about this cooperation later on when we are then moving forward with our commercialization and building our solutions.
Mikko Wirkkala: If we move to the critical infrastructure protection side, we see the demand increase there, and basically the increasing security concerns. Then we have seeing the physical damages done to the critical infrastructure, and the threat is growing all the time there. We have seen drone attacks happening there in different parts of Europe, and also some drones landing to the Finnish side there. We have been developing our solutions there and innovation, and we have been patenting new technologies there regarding the critical infrastructure protection side there. We have also announced the letter of intent with the cooperation with Enersense so that we can then protect electrical substations. More also to be disclosed about this cooperation later on when we are then moving forward with our commercialization and building our solutions.
Speaker #3: And we have been developing our solutions there—innovation—and we have been patenting new technologies there regarding the critical infrastructure protection side there.
Speaker #3: And we have also announced the letter of intent for cooperation with Enersense, so that we can then protect electrical substations. But more will also be disclosed about this cooperation later on, when we are moving forward with our commercialization and building our solutions.
Mikko Wirkkala: As Didier was mentioning, the critical infrastructure protection side, there we really see the growing demand going future. The last point is, of course, that in the circular material sales side, we are continuing there, that we have the ongoing operations in India. Also as we have been mentioning earlier, we have our own Slack in communicating during Q2 and also now lately after the quarter is that it is available there in Finland. We have progressed with all the preparations with all the paperworks, and the product is ready to be used from our terminal to our customers. Next, moving to the financing arrangement, what we announced in June.
Speaker #3: But as we was mentioning that the critical infrastructure protection side that there we really see the growing demand going future. And the last point is of course that in the circular material sales size we are continuing there that we have the ongoing operations in India and also as we have been mentioning earlier that we have our own slab in communicating during the second quarter and also now lately after the quarter is that it's available there in Finland and we have progressed that with all the preparations with all the paperworks and the product is ready to be used from our terminal.
Mikko Wirkkala: As Didier was mentioning, the critical infrastructure protection side, there we really see the growing demand going future. The last point is, of course, that in the circular material sales side, we are continuing there, that we have the ongoing operations in India. Also as we have been mentioning earlier, we have our own Slack in communicating during Q2 and also now lately after the quarter is that it is available there in Finland. We have progressed with all the preparations with all the paperworks, and the product is ready to be used from our terminal to our customers. Next, moving to the financing arrangement, what we announced in June.
Speaker #3: Terminal to our customers. And next moving to the financing arrangement what we announced in June. So starting from the top, that the last day of June we announced that we are we have agreed or actually we signed during the last day of June that we agreed that we are then having a 3 million term loan from Danske Bank and this is then guaranteed by European Investment Fund and one of our largest owners, Virela.
Mikko Wirkkala: Starting from the top, the last day of June, we announced that we have agreed, or actually we signed during the last day of June that we agreed that we are then having a EUR 3 million term loan from Danske Bank. This is then guaranteed by European Investment Fund and one of our largest owners, Virala. On top of that one, then we have issued convertible capital notes, or as we are saying that in the review, we are also talking about convertible hybrid loan, meaning that the capital notes are convertible to the equity, with the strike at EUR 2.1 per share. This has no maturity date, and we have then classified this as an equity in our group financial statement. We had our largest owner, Virala and Nidoco, Ilmarinen, and Ajanta participating this program with EUR 1 million each.
Mikko Wirkkala: Starting from the top, the last day of June, we announced that we have agreed, or actually we signed during the last day of June that we agreed that we are then having a EUR 3 million term loan from Danske Bank. This is then guaranteed by European Investment Fund and one of our largest owners, Virala. On top of that one, then we have issued convertible capital notes, or as we are saying that in the review, we are also talking about convertible hybrid loan, meaning that the capital notes are convertible to the equity, with the strike at EUR 2.1 per share. This has no maturity date, and we have then classified this as an equity in our group financial statement. We had our largest owner, Virala and Nidoco, Ilmarinen, and Ajanta participating this program with EUR 1 million each.
Speaker #3: a. And on top of that one then we have issued convertible capital notes or as we are saying that in the review that we are also talking about convertible hybrid loan meaning that the capital notes are convertible to the equity that with the strike at 2.1 per share and this has no maturity date and we have then classified this as an equity in our group financial statements.
Speaker #3: And we had our largest owner Virela and Nidoco Ilmarinen and Ajanta participating this program with 1 million euro each. And this was issued at the end of June and on top of this one that we released that we have a tap issue on the convertible capital notes and this is that will Scale Wolf has committed to subscribe with the same terms as mentioned above with the other investors.
Mikko Wirkkala: This was issued at the end of June. On top of this one that we released, we have a tap issue on the convertible capital notes. This is that where Scalewolf has committed to subscribe with the same terms as mentioned above with the other investors. This was then subject to approval from our extraordinary general meeting that took place last week, and we got the green light there. Now we are working on to execute this last part of this financing deal. With all of this financing that we are then collecting EUR 9 million, with that money we are then securing the runway there to the 2028 side. Let's then move to the financial operational indicators side.
Mikko Wirkkala: This was issued at the end of June. On top of this one that we released, we have a tap issue on the convertible capital notes. This is that where Scalewolf has committed to subscribe with the same terms as mentioned above with the other investors. This was then subject to approval from our extraordinary general meeting that took place last week, and we got the green light there. Now we are working on to execute this last part of this financing deal. With all of this financing that we are then collecting EUR 9 million, with that money we are then securing the runway there to the 2028 side. Let's then move to the financial operational indicators side.
Speaker #3: And this was then subject to approval from our Extraordinary General Meeting that took place last week, and we got the green light there, and now we are working on executing this last part of the financing deal.
Speaker #3: So, with all of this financing, we are then collecting €9 million, and with that money, we are then securing the runway there to the 2028 side.
Speaker #3: And let's then move to the financial operational indicators side. Starting from the revenue, our revenue growth continued, and that more than doubled year on year when looking at the H1 numbers, and we are very close to the numbers of the entire year 2025.
Mikko Wirkkala: Starting from the revenue, our revenue growth continued, and that more than doubled year-on-year when looking at the H1 numbers. We are very close to the numbers of entire year 2025. Meaning that our first half revenue was EUR 902,000. Then when reviewing our EBITDA levels, the EBITDA level is roughly on the same level where we were a year ago there. There are a few main reasons there that one is the other operating income. As mentioned in the first quarter, we had one off item in the first quarter other operating income regarding the grants, and that's one reason why we are on the same level with the EBITDA.
Mikko Wirkkala: Starting from the revenue, our revenue growth continued, and that more than doubled year-on-year when looking at the H1 numbers. We are very close to the numbers of entire year 2025. Meaning that our first half revenue was EUR 902,000. Then when reviewing our EBITDA levels, the EBITDA level is roughly on the same level where we were a year ago there. There are a few main reasons there that one is the other operating income. As mentioned in the first quarter, we had one off item in the first quarter other operating income regarding the grants, and that's one reason why we are on the same level with the EBITDA.
Speaker #3: So meaning that our first half revenue was 902,000 euros. And then when reviewing our EBITDA levels the EBITDA level is roughly on the same level where we were a year ago there and there are a few main reasons there that one is the other operating income and as mentioned in the first quarter we had one of item in the first quarter other operating income regarding the grants and that's one reason why we have been coming we are on the same level with the EBITDA.
Speaker #3: But then, turning to look at the balance sheet side, there the liquidity—the cash balance—was roughly €6 million at the end of the quarter, and then the total liquidity and unearned grants, totaling then more than €12 million.
Mikko Wirkkala: Looking at the balance sheet side there, the liquidity, the cash balance was roughly EUR 6 million at the end of the quarter. Then the total liquidity and undrawn grants totaling then more than EUR 12 million. On top of that one will then come the convertible notes then from Scalewolf, which will increase the number then after the third quarter. Then turning to the order intake side. Order intake was unfortunately low, concentrating on the execution of our strategy and speeding up the commercialization in all of our businesses, especially in protecting the critical infrastructure side. Then finally, having a look then for our financial position and our outlook, starting from the outlook. The guidance for the entire year remains unchanged, and the revenue for 2026 is expected to grow compared to the previous year.
Mikko Wirkkala: Looking at the balance sheet side there, the liquidity, the cash balance was roughly EUR 6 million at the end of the quarter. Then the total liquidity and undrawn grants totaling then more than EUR 12 million. On top of that one will then come the convertible notes then from Scalewolf, which will increase the number then after the third quarter. Then turning to the order intake side. Order intake was unfortunately low, concentrating on the execution of our strategy and speeding up the commercialization in all of our businesses, especially in protecting the critical infrastructure side. Then finally, having a look then for our financial position and our outlook, starting from the outlook. The guidance for the entire year remains unchanged, and the revenue for 2026 is expected to grow compared to the previous year.
Speaker #3: And on top of that, one will then have the convertible notes from Scale Wolf, which will increase the number after the third quarter.
Speaker #3: And then turning to the order intake side—so order intake was unfortunately low. We are concentrating on the execution of our strategy and speeding up commercialization in all of our businesses, especially in protecting critical infrastructure.
Speaker #3: And then finally, having a look at our financial position and outlook and starting from the outlook: the guidance for the entire year remains unchanged, and the revenue for 2026 is expected to grow compared to the previous year.
Speaker #3: And the financial position. I already mentioned the cash balance, which is roughly €6 million, and on top of that we have the European Union's LIFE grant of €2.1 million. Then we have some half a million euros remaining from the Business Finland grant, and then around €100,000 related to other grants that are still remaining to be received.
Mikko Wirkkala: The financial position mentioned already, the cash balance roughly EUR 6 million. On top of that one, we have the European Union's LIFE grant, EUR 2.1 million. Then we have some half million euros remaining of Business Finland's grant, and then some EUR 100,000 related to other grants that are still remain to be entire amount of senior loan undrawn. Then EUR 1 million of the convertible capital notes that did not land to our bank account during the end of Q2. That came in the early days of June. That was in the numbers. All in all, we are there more than EUR 12 million with our liquidity and undrawn grants. This was in a nutshell, the highlights from the business side and also from the financial side. I will then hand it over back to Vibeke.
Mikko Wirkkala: The financial position mentioned already, the cash balance roughly EUR 6 million. On top of that one, we have the European Union's LIFE grant, EUR 2.1 million. Then we have some half million euros remaining of Business Finland's grant, and then some EUR 100,000 related to other grants that are still remain to be entire amount of senior loan undrawn. Then EUR 1 million of the convertible capital notes that did not land to our bank account during the end of Q2. That came in the early days of June. That was in the numbers. All in all, we are there more than EUR 12 million with our liquidity and undrawn grants. This was in a nutshell, the highlights from the business side and also from the financial side. I will then hand it over back to Vibeke.
Speaker #3: The entire amount of the senior loan was unturned, and then €1 million of the convertible capital notes did not land in our bank account during the end of the second quarter, so that came in the early days of June.
Speaker #3: So that was in the numbers. So all in all, we are there at more than €12 million with our liquidity and unturned grants.
Speaker #3: And this was, in a nutshell, the highlights from the business side and also from the financial side. I will then hand it back over to Viveke.
Speaker #2: Good, thank you. Exciting. Many things ongoing. Lots of customer interest; adoption is slower than perhaps we expected, and perhaps even the market expected. We have lots of great questions and great engagement, and you know that you can address the main questions that we've had.
Vibeke Krohn: Good. Thank you. Exciting. Many things are ongoing. Lots of customer interest, adoption slower than perhaps we expected, and perhaps even the market expected. We have lots of great questions and great engagement, and you know that you can to address the main questions that we've had. Perhaps not everyone, there's quite a few, but let me try to take them in order of priority. There's a few questions on the partnership with Scalewolf and the opportunities relating to MET. Also on the opportunity mentioned by Mikko, the Otanmäki mine tailings, that I will try to cover. We've also had some questions on the opportunity or the market, customer segments prioritized for critical infra, and a few more. Let me start from the top. We are obviously very excited about the opportunities in the metal extraction space.
Vibeke Krohn: Good. Thank you. Exciting. Many things are ongoing. Lots of customer interest, adoption slower than perhaps we expected, and perhaps even the market expected. We have lots of great questions and great engagement, and you know that you can to address the main questions that we've had. Perhaps not everyone, there's quite a few, but let me try to take them in order of priority. There's a few questions on the partnership with Scalewolf and the opportunities relating to MET. Also on the opportunity mentioned by Mikko, the Otanmäki mine tailings, that I will try to cover. We've also had some questions on the opportunity or the market, customer segments prioritized for critical infra, and a few more. Let me start from the top. We are obviously very excited about the opportunities in the metal extraction space.
Speaker #2: Perhaps not everyone—there's quite a few—but let me try to take them in order of priority. There are a few questions on the partnership with Scale Wolf and the opportunities relating to Met, also on the opportunity mentioned by Miko, the maintaining—that I will try to cover. We've also had some questions on the opportunity or the market customer segments prioritized for critical infra, and a few more.
Speaker #2: So let's see how far we get. Yeah, let me start from the top. We are obviously very excited about the opportunities in the metro extraction space.
Speaker #2: We have, over time, got to know and also now entered into a partnership with quite an interesting company called Scale Wolf, which is a strong growth VC with quite an impressive track record in building dual use companies, defense companies, critical infra. They tend to invest in companies they—
Vibeke Krohn: We have over time got to know and also now entered into a partnership with quite an interesting company called Scalewolf, which is a strong growth VC with quite an impressive track record in building dual-use companies, defense companies, critical infra. They tend to invest in companies they find mission-critical and that have customer demand from private sector and/or governmental demand. They're backed by strong American funds and wide investors, so it's a good party to be part of. They're quite excited about the Otanmäki opportunity, and you are well aware that we have secured the exclusive rights for the tailings. We are developing now a structure, where we will, together with Scalewolf, explore the opportunity, understand in more depth the scope and the metal concentration that we can find in Otanmäki to really build a strong case.
Vibeke Krohn: We have over time got to know and also now entered into a partnership with quite an interesting company called Scalewolf, which is a strong growth VC with quite an impressive track record in building dual-use companies, defense companies, critical infra. They tend to invest in companies they find mission-critical and that have customer demand from private sector and/or governmental demand. They're backed by strong American funds and wide investors, so it's a good party to be part of. They're quite excited about the Otanmäki opportunity, and you are well aware that we have secured the exclusive rights for the tailings. We are developing now a structure, where we will, together with Scalewolf, explore the opportunity, understand in more depth the scope and the metal concentration that we can find in Otanmäki to really build a strong case.
Speaker #2: Find mission-critical areas that have customer demand from the private sector and/or government. They're backed by strong American funds and wide investor support, so it's a good party to be part of.
Speaker #2: They are quite excited about the Otamaki opportunity, and you are well aware that we have secured the exclusive rights for the tailings. We are developing now a structure where we will, together with Scale Wolf, explore the opportunity, understand in more depth the scope and the metal concentration that we can find in Otamaki to really build a strong case. So far, there has been a strong case for the market and also investors, and we're very much excited. We have about five to six months now where we work closely with Scale Wolf to execute on this opportunity.
Vibeke Krohn: So far, there has been a strong case for the market and also investors, and we're very much excited. We have about 5, 6 months now where we work closely with Scalewolf to execute on this opportunity. On the SIPS side, several questions. First, a question on market sizing. I think the market size for critical protection is rather huge, and it's almost a little bit comparing apples and pears depending on what you put in, and we haven't provided you with a direct number. The reason for that is that we more so look to the various customer cases or the customer segments. Some of the customer segments that we've explored over the last few months is subsea. We have explored, and are exploring in great depth on land our solutions for power grid, for water supply, and for dual use and defense.
Vibeke Krohn: So far, there has been a strong case for the market and also investors, and we're very much excited. We have about 5, 6 months now where we work closely with Scalewolf to execute on this opportunity. On the SIPS side, several questions. First, a question on market sizing. I think the market size for critical protection is rather huge, and it's almost a little bit comparing apples and pears depending on what you put in, and we haven't provided you with a direct number. The reason for that is that we more so look to the various customer cases or the customer segments. Some of the customer segments that we've explored over the last few months is subsea. We have explored, and are exploring in great depth on land our solutions for power grid, for water supply, and for dual use and defense.
Speaker #2: On the SIP side several questions first a question on market sizing I think the market size for critical protection is rather huge and it's almost a little bit comparing apples and pears and depending on what you put in and we haven't provided you with a direct number and the reason for that is that we more so look to the various customer case or the customer segments some of the customer segments that we've explored over the last few months is subsea we have explored and are exploring in great depths on land are the solutions for power grid for water supply and for dual use and defense so far one could argue that the customer uptake is slower we've had a couple of good cases that have given us some revenue but we're really seeing great interest and also perhaps pent-up demand on the critical infra that said though I think it is important to say that building critical infrastructure for subsea for land obviously has some lead time to get to market but we are it's really our focus going forward and with the likes of Enersense on power grid we are very much excited about the LOI with Enersense and that we will move this into hopefully a joint go-to-market effort to secure power grids and substations.
Vibeke Krohn: So far, one can argue that the customer uptake is slower. We've had a couple of good cases that have given us some revenue, but we're really seeing great interest and also perhaps a pent-up demand on the critical infra. That said, though, I think it is important to say that building critical infrastructure for subsea, for land, obviously has some lead time to get to market. But it's really our focus going forward. With the likes of Enersense on power grid, we're very much excited about the LOI with Enersense and that we will move this into hopefully a joint go-to-market effort to secure power grids and substations. Other questions. There was a couple of questions on revenue and order intake that I'd like to cover.
Vibeke Krohn: So far, one can argue that the customer uptake is slower. We've had a couple of good cases that have given us some revenue, but we're really seeing great interest and also perhaps a pent-up demand on the critical infra. That said, though, I think it is important to say that building critical infrastructure for subsea, for land, obviously has some lead time to get to market. But it's really our focus going forward. With the likes of Enersense on power grid, we're very much excited about the LOI with Enersense and that we will move this into hopefully a joint go-to-market effort to secure power grids and substations. Other questions. There was a couple of questions on revenue and order intake that I'd like to cover.
Speaker #2: Other questions there was a couple of questions on revenue in order intake that I'd like to cover having now worked in listed companies for more than 20 years I think revenue expectations or revenue forecast is probably more of the difficult ones the challenge isn't necessarily the demand it's more the timing of commercialization and I think Betolar perhaps is a good company there where we have spent time we have spent time to develop our to conduct R&D and to develop technology to get into position now to start commercializing and also to drive and to build customer solutions and to drive actual commercialization we are forecast obviously we try to be as honest as we can our forecasts reflect the realities of what we see but perhaps the realities of some of these customer projects especially on the SIP side are a little bit longer due to customer decisions cycles regulation and rather complex installation think subsea installation and on land installation as well but we're pushing ahead and I think as much as I with you perhaps look at the direct order book a little bit lower than expected that's really going to be my first priority going forward.
Vibeke Krohn: Having now worked in listed companies for more than 20 years, I think revenue expectations or revenue forecast is probably more of the difficult ones. The challenge isn't necessarily the demand, it's more the timing of commercialization. I think Betolar perhaps is a good company there where we have spent time to conduct R&D and to develop technology to get into position now to start commercializing and then also to drive and to build customer solutions and to drive actual commercialization. Our forecast, obviously, we try to be as honest as we can. Our forecasts reflect the realities of what we see. Perhaps the realities of some of these customer projects, especially on the SIPS side, are a little bit longer due to customer decisions cycles, regulation, and rather complex installation. Think subsea installation and on land installation as well.
Vibeke Krohn: Having now worked in listed companies for more than 20 years, I think revenue expectations or revenue forecast is probably more of the difficult ones. The challenge isn't necessarily the demand, it's more the timing of commercialization. I think Betolar perhaps is a good company there where we have spent time to conduct R&D and to develop technology to get into position now to start commercializing and then also to drive and to build customer solutions and to drive actual commercialization. Our forecast, obviously, we try to be as honest as we can. Our forecasts reflect the realities of what we see. Perhaps the realities of some of these customer projects, especially on the SIPS side, are a little bit longer due to customer decisions cycles, regulation, and rather complex installation. Think subsea installation and on land installation as well.
Vibeke Krohn: We're pushing ahead, and I think as much as I with you, perhaps look at the direct order book, a little bit lower than expected. That's really going to be my first priority going forward. Anything else, Mikko, that we want to cover? There was a couple of questions on grants. Yes, we are well-positioned for grants both from EU and the MINERVA project. We have a good, strong, long-standing relations with Business Finland, and also Tesi. So I think we're well-placed. I think it is important, though, that in the shift towards commercialization, we should not live on grants. We should definitely get to actual revenues. So that's also where our focus is. I think credibility comes from delivery and not really on the forecast, and that's what I live by. So if there's no more questions, perhaps we go to concluding remarks.
Vibeke Krohn: We're pushing ahead, and I think as much as I with you, perhaps look at the direct order book, a little bit lower than expected. That's really going to be my first priority going forward. Anything else, Mikko, that we want to cover? There was a couple of questions on grants. Yes, we are well-positioned for grants both from EU and the MINERVA project. We have a good, strong, long-standing relations with Business Finland, and also Tesi. So I think we're well-placed. I think it is important, though, that in the shift towards commercialization, we should not live on grants. We should definitely get to actual revenues. So that's also where our focus is. I think credibility comes from delivery and not really on the forecast, and that's what I live by. So if there's no more questions, perhaps we go to concluding remarks.
Speaker #2: Anything else, Miko, that we want to cover? There were a couple of questions on grants. Yes, we have been in—you know, we are well positioned for grants, both from the EU and the Minerva project. We have good, strong, long-standing relations with Business Finland and also Tesi, so I think we're well placed. I think it is important, though, that in the shift towards commercialization we should not live on grants; we should definitely get to actual revenues. So that's also where our focus is, and I think, you know, that credibility comes from delivery and not really on the forecast, and that's what I live by.
Speaker #2: So if there's no more questions perhaps we go to concluding remarks I'd like to thank you we're in the midst of a strategic you know turnaround we're really pushing towards commercialization of our solutions in short four points I think the geopolitics that we have around us provide opportunities for Betolar both within critical infra infrastructure protection and metal extraction we are shifting from technology development to commercialization our partnerships also discussed today e.g. our partnership with Scale Wolf and Enersense really scale help us scale with lower capital intensity and we're coming from a strong base of technology and technology development gives us I guess the reason to play but execution it what creates value so with that thank you so much we have enjoyed this time we have as normal quarterly presentation upcoming then next one coming in October we also would like to invite you for a capital markets day day to be announced very soon and we intend to then go a little bit deeper in terms of strategic priorities focus areas that we also do deep dives on our strategic business areas and that we hopefully can come back with some exciting news both on the revenue side and also on partnership and how we drive long-term value for owners and society in general.
Vibeke Krohn: I'd like to thank you. We're in the midst of a strategic turnaround. We're really pushing towards commercialization of our solutions. In short, four points. I think the geopolitics that we have around us provide opportunities for Betolar, both within critical infra, infrastructure protection and MET. We are shifting from technology development to commercialization. Our partnerships also discussed today, e.g., our partnership with Scalewolf and Enersense really help us scale with lower capital intensity. We're coming from a strong base of technology, and technology development gives us the reason to play, but execution is what creates value. So with that, thank you so much. We have enjoyed this time. We have, as a normal quarterly presentation upcoming, then next one coming in October. We also would like to invite you for Capital Markets Day, date to be announced very soon.
Vibeke Krohn: I'd like to thank you. We're in the midst of a strategic turnaround. We're really pushing towards commercialization of our solutions. In short, four points. I think the geopolitics that we have around us provide opportunities for Betolar, both within critical infra, infrastructure protection and MET. We are shifting from technology development to commercialization. Our partnerships also discussed today, e.g., our partnership with Scalewolf and Enersense really help us scale with lower capital intensity. We're coming from a strong base of technology, and technology development gives us the reason to play, but execution is what creates value. So with that, thank you so much. We have enjoyed this time. We have, as a normal quarterly presentation upcoming, then next one coming in October. We also would like to invite you for Capital Markets Day, date to be announced very soon.
Vibeke Krohn: We intend to then go a little bit deeper in terms of strategic priorities, focus areas, that we also do deep dives on our strategic business areas, and that we hopefully can come back with some exciting news both on the revenue side and also on partnership and how we drive long-term value for owners and society in general. Thank you.
Vibeke Krohn: We intend to then go a little bit deeper in terms of strategic priorities, focus areas, that we also do deep dives on our strategic business areas, and that we hopefully can come back with some exciting news both on the revenue side and also on partnership and how we drive long-term value for owners and society in general. Thank you.
Speaker #2: Thank you.
Operator: Thank you.
Mikko Wirkkala: Thank you.
