Slide 1: Kalray Investor Presentation
KALRAY INVESTOR PRESENTATION July 2024 We Accelerate Your Data ! www.kalrayinc.com © Kalray SA. Confidential - All Rights Reserved. 1
Slide 2: Important Notice
IMPORTANT NOTICE The information in this document has been prepared by Kalray (the “Company”) for information purposes only and is furnished to you by the Company solely for your information and is the sole responsibility of the Company. This presentation does not constitute, and is not a part of, a
Slide 3: The Speakers
THE SPEAKERS Eric Baissus Denis Scherrer Executive Board Chairman Chief Financial Officer 25 years’ experience as senior executive 30 years of experience in finance, accounting, for major telecom (Alcatel-Lucent) and audit and business operations in semi- electronics (Texas Instruments) groups, star
Slide 4: Agenda
AGENDA • Kalray Overview • H1 2024 financials • Green Light for Jumbo Contract Mass Production • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 4
Slide 5: Agenda
AGENDA • Kalray Overview & DPU Market • H1 2024 financials • Green Light for Jumbo Contract Mass Production • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 5
Slide 6: Kalray: European Leader in Data Processor
KALRAY: EUROPEAN LEADER IN DATA PROCESSOR Intelligent Data Processing, from Cloud to Edge INDUSTRIAL INVESTORS Kalray offers a new type LEADER IN MANYCORE TECHNOLOGY of processor (DPU) and solutions targeting the 3rd + €250M 30 Generation R&D investment Patent booming markets of of MPPA® families RE
Slide 7: Kalray, a Strategic Player in the Next Gen Data Processing & AI Market
KALRAY, A STRATEGIC PLAYER IN THE NEXT GEN DATA PROCESSING & AI MARKET © Kalray SA. Confidential - All Rights Reserved. 7
Slide 8: A Huge Market Striving for Better Efficiency
A HUGE MARKET STRIVING FOR BETTER EFFICIENCY AI investments will switch from pure computing prowess to improved infrastructures AI is driving the bulk of new data center investments “Data centers are expected to consume up to 8% of the world's electricity by 2030, driven largely by the increasing co
Slide 9: Why DPU: The Third Socket
WHY DPU: THE THIRD SOCKET Massively Parallel Processing Has Reshaped the Computing World CPU APPLICATION Application Processing GPU DPU SYNC COMPUTE ASYNC COMPUTE Massively Parallel Massively Parallel Processing Processing Synchronous Asynchronous Processing Processing © Kalray SA. Confidential - Al
Slide 10: Why DPU? DPU Will Be Essential for AI and Machine Learning
WHY DPU ? “DPU Will Be Essential for AI and Machine Learning” (NVIDIA) "DPUs, such as NVIDIA's BlueField series, are critical for enhancing AI infrastructure by offloading and accelerating data center workloads, which include network, storage, and security tasks. This offloading allows CPUs and GPUs
Slide 11: Why DPU Adoption Is Slower Than GPU Adoption?
WHY DPU ADOPTION IS SLOWER THAN GPU ADOPTION ? Bottlenecks are long to resolve but AI usage and power consumption challenge force the industry to move "Adoption of DPUs has been slow primarily due to the significant software integration required and the complexity involved in leveraging DPUs effecti
Slide 12: DPU Market: It Is About Infra Optimization
DPU MARKET: IT IS ABOUT INFRA OPTIMIZATION ! From $500M in 2021 to $5.5B in 2031 (27% CAGR) Usage: • Evolving from simple networking functions (traditional SmartNIC) to more complex workloads (modern DPUs) Main markets: • Data Centers • IT & Telecom • Edge Computing • Smart Driving • Other Applicati
Slide 13: DPU Market Landscape
DPU MARKET LANDSCAPE KALRAY Traditional Storage SmartNic ❶ UNIQUE TECHNOLOGY “Best DPU Technology and Roadmap” Gigaom Competition DPU solutions are based on “old approach” SmartNiC ❷ UNIQUE POSITIONING ON 2 VERTICALS Focus on Storage DPU and Edge Computing ❸ FEATURE PLAY Build complete solution, ful
Slide 14: We Have Types of Offers in Production
WE HAVE 2 TYPES OF OFFERS IN PRODUCTION More Than 50 Customers Worldwide ACCELERATION SOLUTION CARDS Data K200-LP Storage Acceleration Acceleration Platform TURBOCARD 4 AI & Compute Acceleration © Kalray SA. Confidential - All Rights Reserved. 15
Slide 15: Agenda
AGENDA • Kalray Overview & DPU Market • H1 2024 financials • Green Light for Jumbo Contract Mass Production • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 16
Slide 16: H1 2024 Revenue
H1 2024 REVENUE Consolidated Revenue (in €M) H1 2024 REVENUE CLOSE TO H2 2023 : €15.3M(1) Strong commercial pipe but : - Longer sales decisions €10.9M(2) €10.5M(1) - Large contracts are split into smaller pieces - Delay of shipment due to NVMe shortages - Going from direct to indirect sales as a sho
Slide 17: Revenue by Type – 1/2
REVENUE BY TYPE – 1/2 Hardware vs Software Kalray Card Acceleration cards Software (2) Hardware (1) Kalray 1/3 Box €10.9M Storage appliances 2/3 Kalray Unaudited data NGenea Data Acceleration Platform (1) Hardware: supply of processors, cards and complete sets of storage (e.g NG-BOX). (2) Software:
Slide 18: Revenue by Type – 2/2
REVENUE BY TYPE – 2/2 NGenea Data 85% Platform Recurrent €10.9M 15% Business Repeat Unaudited data 40% Business © Kalray SA. Confidential - All Rights Reserved. 19
Slide 19: Revenue: Direct vs Indirect
REVENUE: DIRECT VS INDIRECT Kalray Card Acceleration cards Direct Indirect Kalray 40% Box Storage appliances 60% Kalray Unaudited data NGenea Data Acceleration Platform © Kalray SA. Confidential - All Rights Reserved. 20
Slide 20: NGenea Solution: Moving from Direct to Indirect Sales
NGENEA SOLUTION: Moving from a Direct to an Indirect Sales Approach Direct Indirect RAMPING UP KALRAY PARTNER PROGRAM TO 40% EXTEND INDIRECT SALES 60% Unaudited data © Kalray SA. Confidential - All Rights Reserved. 21
Slide 21: Reinforcement of the Cash Position
REINFORCEMENT OF THE CASH POSITION Up to 15 M€ Revolving Credit Line Main requirements : - Working Capital - Funding of Dolomites Next Generation – 14M€ IP in 2024 6 M€ Bonds © Kalray SA. Confidential - All Rights Reserved. 22
Slide 22: Reinforcement of the Cash Position: Revolving Credit Facility
REINFORCEMENT OF THE CASH POSITION (1) Revolving Credit Facility A scalable debt solution ("Dynamic Revolving Credit Facility"), with BNP Paribas up to €15m over a period of 3 years : • €3m withdrawn as of today Up to 15M€ Revolving • €12m available in a period of 3 years under conditions Credit Lin
Slide 23: Reinforcement of the Cash Position: Bonds
REINFORCEMENT OF THE CASH POSITION (2) Bonds €6m of bonds redeemable in new shares • Up to €10 million over a period of 24 months through the issuance of 4,000 warrants converted into bonds redeemable in new shares of the Company • 3 tranches (€6 million, €2 million, and €2 million). €6 million paid
Slide 24: Agenda
AGENDA • Kalray Overview & DPU Market • H1 2024 financials • Green Light for Jumbo Contract Mass Production • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 25
Slide 25: Jumbo Contract Enters Into Volume Phase
JUMBO CONTRACT ENTERS INTO VOLUME PHASE WITH €100M EXPECTED IN GLOBAL STARTING FROM 2025 FOR A 5 YEARS PERIOD © Kalray SA. Confidential - All Rights Reserved. 26
Slide 26: Jumbo Contract Is Ramping Up
“JUMBO CONTRACT” IS RAMPING UP Customer Profileed company • Over 100B$ valuation • Several tens B$ revenue in 2021 Customer Needs Kalray 5x • Highly efficient data processing solution for next more efficient in performance / $ generation systems • Key KPIs: and performance / consumption - Performanc
Slide 27: Jumbo Contract: TC4 Production Started
« JUMBO CONTRACT »: TC4 PRODUCTION STARTED 3 STEPS PHASE 1 PHASE 2 PHASE 3 TENS OF €MILLIONS / YEAR over several Nov.22 $1 MILLION $2 MILLIONS years 2021/2022 2023 2024 2025-2030 • Deep technical • Technical, commercial • Kalray has developed a • 250+ cards in • Volume Production evaluation and fina
Slide 28: Agenda
AGENDA • Kalray Overview & DPU Market • H1 2024 financials • Green Light for Jumbo Contract Mass Production • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 29
Slide 29: Kalray & Pliops
KALRAY & PLIOPS A UNIQUE OPPORTUNITY TO: - ADDRESS THE HUGE MARKET OF GEN AI IN COMPLEMENT TO GPUS - BUILD THE LEADING STORAGE & AI ACCELERATON DPU COMPANY © Kalray SA. Confidential - All Rights Reserved. 30
Slide 30: Who Is Pliops: A Unique Technology
WHO IS PLIOPS : A UNIQUE TECHNOLOGY A Technology to Access, Process and Exchange Data Much Faster • Based on Key-Value-Store industry standard • Built the first hardware-accelerated Key Value Store engine • Allows fast and easy access to contents as an alternative to file and objects • The only way
Slide 31: Who Is Pliops: A Unique Set of Investors
WHO IS PLIOPS: A UNIQUE SET OF INVESTORS Who will become Kalray’s shareholders © Kalray SA. Confidential - All Rights Reserved. 32
Slide 32: Why Kalray & Pliops: Resolving the AI Barriers
WHY KALRAY & PLIOPS : RESOLVING THE AI BARRIERS Barrier #1: Barrier #2: Memory GPU Wall Utilization Limited Memory BW and Capacity CPU-Centric Compute (Bulk-Synchronous) Bottleneck with large models, big datasets, large intermediate state Utilization decreased due to CPU-GPU Coordination overhead Mo
Slide 33: Use Case: LLM Inference Processing Optimization
USE CASE: LLM INFERENCE PROCESSING OPTIMIZATION Based on Lab Testing 20 to 50% less power ~6GPU for Prefill 1 XDP Card + 60TB © Kalray SA. Confidential - All Rights Reserved. 34
Slide 34: Current Market Traction & Integration Plan
CURRENT MARKET TRACTION & INTEGRATION PLAN BEG. 2025 BEG. 2026 On going discussions with very large 12+ prospects including hyperscalers in US and China Lightning AI Dolomites AI Acceleration Appliances Cards Cards for AI and Data Acceleration © Kalray SA. Confidential - All Rights Reserved. 35
Slide 35: Terms & Status
TERMS & STATUS • Imminent signing of the SPA Split Post-Merge • Payment in new shares with a 65% Kalray / 35% Pliops (+ 5% on completion of ambitious targets) 35% • Pliops shareholders become 65% shareholders of Kalray • Closing expected September after General Assembly approval Pliops Shareholders
Slide 36: Who Is Pliops: A Unique Team Working with Kalray Today
WHO IS PLIOPS : A UNIQUE TEAM WORKING WITH KALRAY TODAY A SEASONED VETERAN MANAGEMENT TEAM FROM SEMICONDUCTOR INDUSTRY PLIOPS Founder CEO &CTO Ido Bukspan Moshe Twitto Founder & VP Eng Chief Biz Itai Ben Zion Dev Uri Beitler © Kalray SA. Confidential - All Rights Reserved. 37
Slide 37: Building a Worldwide Leader in Storage and AI Acceleration
BUILDING A WORLDWIDE LEADER IN STORAGE AND AI ACCELERATION Combining strengths of the two companies to go faster and beyond • Product • Team • World best DPU platform for storage & AI • Merging strong DPU expertise of Kalray with extensive Storage • Complementary IPs and products and data expertise
Slide 38: Conclusion
CONCLUSION © Kalray SA. Confidential - All Rights Reserved. 39
Slide 39: At the Heart of Next Gen Data Center Challenges
AT THE HEART OF NEXT GEN DATA CENTER CHALLENGES A Huge Market Opportunity Jumbo Contract Ramp-Up Improving data center efficiency for AI is Huge contracts are ramping up (100M$+) THE next challenge of the industry A Unique & Validated Technology Strong partnerships and support Our DPU solutions and
Slide 40: Q&A Session
Q&A SESSION 6 * MICROSOFT TEAMS PHONE "Hands Up" button Keys " * " then " 6 " © Kalray SA. Confidential - All Rights Reserved. 41
Slide 41: Thank You
THANK YOU www.kalrayinc.com © Kalray SA. Confidential - All Rights Reserved. 42
Slide 42: Disclaimer
DISCLAIMER Kalray makes no guarantee about the accuracy of the information contained in this document. It is intended for information purposes only and shall not be incorporated into any contract. It is not a commitment to deliver any material, code or functionality, and should not be relied upon in