Translation: Original published in Finnish on 6/22/2026 at 7:37 am EEST.

Betolar announced the appointment of Vibeke Krohn as its new CEO, with current CEO Tuija Kalpala continuing to serve Betolar as an advisor until the end of 2026. The change of CEO came as a surprise to us, and we believe it increases the risk level for Betolar's short-term forecasts. In our view, the new CEO's experience in circular economy technologies and strategy work is well-suited for Betolar's leadership. However, Krohn faces a significant challenge in leading Betolar, as the loss-making company's financing needs strengthening, in our view, during the coming year, and a sustainable commercial breakthrough has not yet been achieved.

New CEO has experience in circular economy technologies

Vibeke Krohn will start in her position as CEO on August 1, 2026. Current CEO Tuija Kalpala will then serve as an advisor to the company until the end of 2026, focusing on critical infrastructure protection solutions. Krohn has served as the CEO of TOMRA Textiles, which is part of a large conglomerate. In addition, she has experience crucial for leading Betolar from her role as Chairman of the Board of Infinited Fiber, a circular economy textile fiber company that started as a small-scale venture. Her background, with its emphasis on materials and circular economy, aligns well with Betolar's latest strategic focus, even though Krohn, who primarily has a textile background, will certainly have a lot to learn about the metal and concrete industry-related business. The new CEO also has experience in restructurings and executing financing rounds, which were likely factors supporting the recruitment decision, in addition to the technology expertise and scaling experience in growth companies mentioned in the company's release.

Strategic direction was changed during Kalpala’s Tenure, but commercial progress fell short of targets

Kalpala became CEO in spring 2024 (having served as COO since October 2023). During his tenure, Betolar shifted its strategic focus from geopolymer-based, cement-replacing concrete solutions towards metal separation technology, and most recently, towards critical infrastructure protection solutions. In June 2026, the company narrowed its focus to two key areas: critical infrastructure protection and metal separation, excluding, among other things, concrete solutions for the construction industry from its development priorities. In our view, the strategic shifts reflect a search for a commercial breakthrough, which has so far remained elusive. Commercial progress has fallen clearly short of targets despite a record order of ~1.4 MEUR received in late 2025. Reflecting this, financial targets have been lowered and the organization's size reduced to limit losses.

The company did not disclose the detailed reasons for the change. In our interpretation, the company's commercial development during Kalpala's tenure did not progress in line with the Board's expectations, even though the stated targets were initially set very high. Thus, the threshold for changing management was likely low once a more suitable candidate became available. Kalpala's continuation as an advisor until the end of 2026 will smooth the transition and ensure the retention of expertise, particularly in critical infrastructure protection solutions. Overall, we believe the surprising change in management increases short-term risks in an already high-risk investment case.