Kalray Sa · EURONEXT:ALKAL

Kalray Sa — H1 2023 Earnings Presentation

40 slides from Kalray Sa's earnings presentation, July 2023

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 in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3 M - Major media contract signed with ngenea2 - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 4
Slide 5: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 5
Slide 6: Kalray in a Nutshell
KALRAY IN A NUTSHELL Intelligent Data Processing from Cloud to Edge LEADER IN MANYCORE LEADING CUSTOMERS DPU TECHNOLOGY & PARTNERS Kalray offers a new type of processor (DPU1) 3rd + €180m 30 Generation R&D investment Patent and solutions that meet of MPPA® processor families the demands of data- IND
Slide 7: Our Vision: Data Is Key / Our Mission
OUR VISION: DATA IS KEY Faster and better insights determine whether companies win or lose in today’s market. Getting the best insights requires highly efficient processing and analysis of increasing volumes of data. OUR MISSION To become a global leading provider of hardware and software technologi
Slide 8: A Complete Offer for Data-Intensive Applications
A COMPLETE OFFER FOR DATA-INTENSIVE APPLICATIONS From Chips to Software Solutions A UNIFIED VALUE PROPOSITION PROCESS DATA SMARTER, MORE EFFICIENTLY, AND PCIe Cards Reference Solutions MORE SECURELY - NO MATTER WHERE IT RESIDES Data Management & Storage MPPA® DPU Software Solutions Processors © Kalr
Slide 9: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 9
Slide 10: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 1
Slide 11: H1 2023 Financials
H1 2023 FINANCIALS Strong Increase in Revenue due to “Solution Sales” success Kalray Consolidated Revenue (2) K200-LP™ Acceleration cards €16.4M €15.3M + Kalray Flashbox™ Storage appliances €4.8 M (1) + 3.2X Kalray pixstor™ & ngenea® H1 2022 2022 H1 2023 Software solutions (1) Unaudited data - Integ
Slide 12: H1 2023 Financials: Consolidated Revenue by Sector
H1 2023 FINANCIALS Consolidated Revenue by Sector Software (2) Hardware (1) BREAKDOWN HARDWARE AND €15.3M 1/3 2/3 SOFTWARE - SIMILAR TO 2022 Unaudited data (1) Hardware: supply of processors, cards and complete sets of storage. (2) Software: software licences mainly and small part of service,mainte
Slide 13: H1 2023 Financials: Consolidated Revenue by Region
H1 2023 FINANCIALS Consolidated Revenue by Region Other 2% EU (incl. UK) €15.3M 46% A STRONG DEMAND ESPECIALLY IN US US 52% Unaudited data Growing demand comes largely from selling complete solutions (HW and SW) to enterprises running data-intensive applications (AI, health, media, research..) ©
Slide 14: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 1
Slide 15: Major Media Contract Signed with Ngenea2
MAJOR MEDIA CONTRACT SIGNED WITH NGENEA2 Customer : Large US based media company Solution: Ngenea2, powered by Kalray DPUs data intensive storage Value: efficient, multi-location, multi workload management of their whole media data © Kalray SA. Confidential - All Rights Reserved. 15
Slide 16: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 1
Slide 17: Ramp-up of the Global Partnership with Dell Technologies
RAMP-UP OF THE GLOBAL PARTNERSHIP WITH DELL TECHNOLOGIES • DELL ETC PROGRAM Kalray joined the selective Extended Technologies Complete (ETC) Dell Technologies program as a Core Partner (10 key partners worldwide) • HPC & UDS DELL DIVISIONS COLLABORATION Kalray solutions (ngenea® and pixstor™) are pr
Slide 18: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 1
Slide 19: Coolidge2: Launch of the Tape Out
COOLIDGE™2 : LAUNCH OF THE “TAPE OUT” More Performance, Less Power Consumption, Fine Tuned for our Target Markets ❶ STORAGE ❷ EDGE MARKET COMPUTING Enterprises Private Cloud Machine 5G Data Service Vision Telecom Centers Providers & AI © Kalray SA. Confidential - All Rights Reserved. 19
Slide 20: Example of Coolidge V1 vs V2 Benchmarking
EXAMPLE OF COOLIDGE V1 VS V2 BENCHMARKING U-Net use-case • Comparison of performance on one example of U-Net segmentation CNN analysis FPS / FPS / Datatype FLOPS 4-MPPA PCIe FPS / Watts FPS / $ MPPA® card MPPA® Coolidge FP16 6.9 G 175 700 3.9 0.2 V1 INT8 6.9 G 250 1,000 5.2 0.28 MPPA® Coolidge FP16
Slide 21: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 2
Slide 22: Strong Involvement in European Collaborative Projects
STRONG INVOLVEMENT IN EUROPEAN COLLABORATIVE PROJECTS ❶ CARAIBE PROJECT / 2020-2022 Funding: 3.7M€ Aims to develop the next generation MPPA® Coolidge™ processor (Coolidge2) ❷ PIRANA PROJECT / Funding: 2.5 M€ Co-development of a new type of 5G server, optimized in terms of flexibility, performance, a
Slide 23: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 2
Slide 24: AI: A New Way to Analyse Data
AI: A NEW WAY TO ANALYSE DATA Growth Market for Kalray DPUs AI is one of the most efficient ways for large organizations to analyse massive amounts of data As the volume of data surges, AI adoption will do the same AI is gaining traction in large part due to significant progress in data computing ma
Slide 25: AI: Kalray Business Focus
AI: KALRAY BUSINESS FOCUS A Growth Market For Kalray’s DPU Workloads Storage for AI Machine 5G Telecom & Models Vision AI AI Both storage Industry is moving to AI- Telecom and 5G are performance and based algorithms. Kalray adopting AI algorithms to storage capacity must DPU is one of the most impro
Slide 26: Agenda
AGENDA • Kalray in a Nutshell • H1 2023 Announcements - H1 revenue of €15,3M - Major media contract signed with ngenea2 - Dell Partnership - Coolidge2 announcement - IP Cube Project & France 2030 • Rise of AI & Edge Computing • 2023 Objectives • Q&A © Kalray SA. Confidential - All Rights Reserved. 2
Slide 27: Key Objectives
2023 KEY OBJECTIVES BUSINESS TEAM GROWTH • Strategic deals (jumbo • Top exec team contract) • Increase of Sales + Operations • €40M revenue in • 4th DPU Generation 2023 IMPROVEMENT OF EBITDA © Kalray SA. Confidential - All Rights Reserved. 27
Slide 28: Why Now?
WHY NOW ? MARKET IS NOW Data is everywhere – successful companies will be those that leverage the massive flow of data and process it effectively. PRODUCT IS NOW Current DPU generation is in production. Complementary mix of hardware & software. New product generation launched in 2023. PARTNERSHIPS I
Slide 30: 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
Slide 32: A Wide Market to Conquer: DPU-Based Solutions
AAWIDE WIDEMARKET MARKETTO TOCONQUER: CONQUER DPU-BASED SOLUTIONS : DPU MARKETS Acceleration and Offload Cards: Markets Are Fast Growing and Moving to DPUs Storage Acc. Cards HPC / Machine Vision 5G/Telecom & SmartNIC Radio Access Network CAGR 22% CAGR 40% CAGR 48% $6.2B $1,9B $1.1B $0,5B $1,6B $0,4
Slide 33: Kalray Leader in the DPU Landscape
KALRAY LEADER IN THE DPU LANDSCAPE Unique Selling Points & Differentiations ❶ UNIQUE TECHNOLOGY “Best DPU Technology and Roadmap” Gigaom Competition DPU solutions are based on “old approach” SmartNiC ❷ UNIQUE POSITIONING ON 2 VERTICALS Focus on Storage DPU and Edge Computing ❸ FEATURE PLAY Build com
Slide 34: More About This Contract
MORE ABOUT THIS CONTRACT Customer Profileed company • Over 100B$ valuation • Several tens B$ revenue in 2021 Customer Needs • Highly efficient data processing solution for next Kalray 5x generation systems more efficient in performance / $ • Key KPIs: - Performance / $ and performance / consumption
Slide 35: On Track for the First Jumbo Contract
ON TRACK FOR THE FIRST “JUMBO” CONTRACT Strong Milestones (Technology, Financial and Commercial Terms) 3 STEPS PHASE 1 PHASE 2 PHASE 3 A FEW TENS OF $1 MILLION €MILLIONS / €MILLIONS YEAR over several years Nov.22 2021/2022 2023 2024 2025 - 2030 • Deep technical • Technical, commercial • Kalray devel
Slide 36: Kalray Stock Market Data
AGENDA KALRAY STOCK MARKET DATA SHAREHOLDING STOCK EXCHANGE AS OF JUNE 30, 2023 • Market: Euronext Growth • Name: KALRAY Company • ISIN code: FR0010722819 related holders1 • Ticker symbol: ALKAL 33.5% • Share price: €28.95 (at 29/06/2023) Free float 2 66.5% • Number of shares: 8 475 743 (30/06/2023)
Slide 37: Kalray DPU
KALRAY DPU Unique Technology, Most Advanced DPU on the Market, Result of 15 Years of Development USUAL APPROACH K A L R AY ’ S M P P A ® 3 COOLIDGE™ CPU CPU CPU CPU core core core core Control Plane CPU CPU CPU CPU core core core core Data Plane ASIC • A few power-hungry RISC CPU cores • 80 highly e
Slide 38: A Mature Product and Technology
A MATURE PRODUCT AND TECHNOLOGY BUILT FOR HIGH VOLUMES & HIGH-QUALITY PRODUCTS • Fabless model – fully scalable • Qualified Global Supply Chain • Support highly demanding customers in Automotive & Aerospace • Partnership with NXP on safety-centric systems and technologies Certified by the © Kalray S
Slide 40: A Recognized Top Technology: x5 Perf / $
A RECOGNIZED TOP TECHNOLOGY: X5 PERF / $ Kalray DPU-based Flashbox™ wins coveted Flash Memory Summit Award for Most Innovative Technology Co-designed with © Kalray SA. Confidential - All Rights Reserved. 40

Kalray — H1 2023 Earnings Presentation on 6ix

Kalray Sa — H1 2023 Earnings Presentation

Slide 1: H1 2023 Activity

Slide 2: Important Notice

Slide 3: The Speakers

Slide 4: Agenda

Slide 5: Agenda

Slide 6: Kalray in a Nutshell

Slide 7: Our Vision: Data Is Key / Our Mission

Slide 8: A Complete Offer for Data-Intensive Applications

Slide 9: Agenda

Slide 10: Agenda

Slide 11: H1 2023 Financials

Slide 12: H1 2023 Financials: Consolidated Revenue by Sector

Slide 13: H1 2023 Financials: Consolidated Revenue by Region

Slide 14: Agenda

Slide 15: Major Media Contract Signed with Ngenea2

Slide 16: Agenda

Slide 17: Ramp-up of the Global Partnership with Dell Technologies

Slide 18: Agenda

Slide 19: Coolidge2: Launch of the Tape Out

Slide 20: Example of Coolidge V1 vs V2 Benchmarking

Slide 21: Agenda

Slide 22: Strong Involvement in European Collaborative Projects

Slide 23: Agenda

Slide 24: AI: A New Way to Analyse Data

Slide 25: AI: Kalray Business Focus

Slide 26: Agenda

Slide 27: Key Objectives

Slide 28: Why Now?

Slide 29: Thank You

Slide 30: Disclaimer

Slide 31: Appendices

Slide 32: A Wide Market to Conquer: DPU-Based Solutions

Slide 33: Kalray Leader in the DPU Landscape

Slide 34: More About This Contract

Slide 35: On Track for the First Jumbo Contract

Slide 36: Kalray Stock Market Data

Slide 37: Kalray DPU

Slide 38: A Mature Product and Technology

Slide 39: Kalray Acceleration Card

Slide 40: A Recognized Top Technology: x5 Perf / $