Slide 1: Kalray Activity 2022
KALRAY ACTIVITY 2022 Investor Presentation – January 2023 Intelligent Data processing, from Cloud to Edge 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: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • Financials • Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 3
Slide 4: Kalray in a Nutshell
KALRAY IN A NUTSHELL Intelligent Data Processing, from Cloud to Edge LEADER IN MANYCORE LEADING CUSTOMERS Kalray offers a new type & PARTNERS DPU TECHNOLOGY of processor (DPU1) and solutions targeting 3rd + €180m 30 Generation R&D investment Patent the booming markets of of MPPA® processor families
Slide 5: 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 & PCIe Cards Reference Solutions SECURELY, NO MATTER WHERE THEY RESIDE Data Management & Storage MPPA® DPU Software Solutions Processors © Kalray SA.
Slide 6: Data-Intensive Applications Are Everywhere
DATA-INTENSIVE APPLICATIONS ARE EVERYWHERE EDGE COMPUTING DATA CENTERS & AUTOMOTIVE 5G LIFE SCIENCES ARTIFICIAL INTELLIGENCE MEDIA & ENTERTAINMENT © Kalray SA. Confidential - All Rights Reserved. 6
Slide 7: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • Financials • Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 7
Slide 8: 2022: A Change in Dimension
2022 A CHANGE IN DIMENSION © Kalray SA. Confidential - All Rights Reserved. 8
Slide 9: Record Revenue in 2022
1 RECORD REVENUE IN 2022 (1) Consolidated Revenue (in €M) €16.4M €22.5M COMBINED REVENUE x11 (BEYOND TARGET OF €20M) €1.5M 2021 2022 (1) Exchange rate EUR/GBP 1.16. Unaudited data © Kalray SA. Confidential - All Rights Reserved. 9
Slide 10: Revenue Breakdown by Division
REVENUE BREAKDOWN (1) Combined Revenue by Division Software, Support 63% & Service STORAGE MARKET, WELL BALANCED HARDWARE AND Hardware 37% €22.5M SOFTWARE Hardware: supply of processors, cards and complete sets of storage (1) Alternative performance indicator. Consolidated revenue as if the Arcapix
Slide 11: Revenue Breakdown by Geography
REVENUE BREAKDOWN Consolidated Revenue by Geography Mainly coming from the Others intensive data applications growing markets (IA, 5% finance, media, research..) EU A BALANCED 30% BREAKDOWN BETWEEN US 40% €16.4M GEOGRAPHICAL AREAS 25% Exchange rate EUR/GBP 1.16. Unaudited data UK © Kalray SA. Confi
Slide 12: A Recognized Top Technology
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. 12
Slide 13: A First Jumbo Contract Signed
2 A FIRST “JUMBO” CONTRACT SIGNED Design-in contract signed A potential of several with a MAJOR TENS OF MILLIONS € / YEAR INTERNATIONAL over several years COMPANY © Kalray SA. Confidential - All Rights Reserved. 13
Slide 14: 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 3x to 5x generation systems more efficient in performance / $ • Key KPIs: - Performance / $ and performance / consum
Slide 15: How Such a Contract Works
HOW SUCH A CONTRACT WORKS ? Strong Milestones – Main Risk Is Behind Us (Technology, financial and Commercial Terms) 3 STEPS PHASE 1 PHASE 2 PHASE 3 A FEW TENS OF $1 MILLION €MILLIONS / €MILLIONS YEAR over several Nov.22 years 2021/2022 2023 2024 2025 - 2030 • Deep technical • Technical, commercial •
Slide 16: A Global Partnership with Dell Technologies
3 A 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) COLLABORATION WITH THE LEADING • HPC & UDS DELL DIVISIONS Kalray solutions (ngenea® and pixstor™)
Slide 17: Business Team Growth
4 BUSINESS TEAM GROWTH • 50+ PEOPLE FOR SALES, PRE-SALES AND SUPPORT Arcapix sales team fully integrated into the organization • STRONGER PRESENCE IN US A STRONG Dozen of people in US BUSINESS FORCE, • CAPABILITY TO LEVERAGE INTEGRATORS A GLOBAL AND DISTRIBUTORS E.g Dell PRESENCE 188 EMPLOYEES (Dec.
Slide 18: European Projects, Visibility and External Financing
5 STRONG INVOLVEMENT IN EUROPEAN COLLABORATIVE PROJECTS ❶ CARAIBE PROJECT Aims to develop the next generation MPPA® Coolidge™ processor (Coolidge2) – 2020-2022 Funding: 3.7 M€ ❷ PIRANA PROJECT EUROPEAN Co-development of a new type of 5G server, optimized in term of flexibility, performance and power
Slide 19: Working on Future Growth Opportunities
6 WORKING ON FUTURE GROWTH OPPORTUNITIES 5G / TELECOM • Selection by Vodafone for collaboration and test with their new 5G R&D center in Malaga – Spain Telecom/5G • Other projects and collaboration with key 5G companies under discussions DATA CENTERS EUROPEAN • Co-development of a solution to optimi
Slide 20: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • Financials • Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 20
Slide 21: Strong Cash Position
STRONG CASH POSITION €32.2M 2022 CASH AVAILABLE (vs 12.2M at 31/12/2021) VERY LARGE Includes: SUCCESS OF OUR • €24.4M: Fundraising in Dec. 22 • €4.2M: From convertible bonds in Sept. 2022 DEC. 2022 (second tranche from the total funding of €10.7M)* FUNDRAISING A strong cash position to hire new staf
Slide 22: Financial Objective Confirmed
FINANCIAL OBJECTIVE CONFIRMED 2022 TARGET: IMPROVEMENT OF 2023 TARGET COMBINED EBITDA €40M+ © Kalray SA. Confidential - All Rights Reserved. 22
Slide 23: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • Financials • Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 23
Slide 24: A Wide Market to Conquer: DPU-Based Solutions
AAWIDE WIDEMARKET MARKETTO TOCONQUER: CONQUER DPU-BASED SOLUTION : 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 $0,4B
Slide 25: 2023 Key Priorities
2023 KEY PRIORITIES Growth Drivers – 2 Main Areas ❶ STORAGE ❷ EDGE MARKET COMPUTING Enterprises Private Cloud Machine 5G Automotive Data Service Vision Telecom Centers Providers © Kalray SA. Confidential - All Rights Reserved. 25
Slide 26: A Good Strategy in Place
A GOOD STRATEGY IN PLACE A Dedicated Approach per Customer Tier “EXPERT” “SOLUTION” CUSTOMERS CUSTOMERS NEEDS CORE A COMPLETE TECHNOLOGY SW SOLUTION • Require proof points to engage • Require complete solutions, easy to SPECIFICITIES • Long sales cycle (1 to 2 years) adopt (cards, box and software)
Slide 27: Agenda
AGENDA • Kalray in a Nutshell • Key Facts 2022 • 2023 Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 27
Slide 28: Why Kalray
WHY KALRAY A turnkey solution for clients from A competitive solution compared to acceleration cards to storage solutions big ones and software €22.5 Million in combined revenue in A major contract with potential of 2022 and a target of € 40 million in over one hundred million euros 2023 A market va
Slide 29: Q&A Session
Q&A SESSION 6 * MICROSOFT TEAMS PHONE "Hands Up" button Keys " * " then " 6 " © Kalray SA. Confidential - All Rights Reserved. 29
Slide 30: Thank You
THANK YOU www.kalrayinc.com © Kalray SA. Confidential - All Rights Reserved. 30
Slide 31: 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: Appendices
APPENDICES © Kalray SA. Confidential - All Rights Reserved. 32
Slide 33: Stock Exchange and Shareholding
AGENDA KALRAY STOCK MARKET DATA SHAREHOLDING STOCK EXCHANGE AS OF DECEMBER 31, 2022 • Market: Euronext Growth • Name: KALRAY Company • ISIN code: FR0010722819 related holders1 • Ticker symbol: ALKAL 35.5% • Share price: €18.28 (at 09/01/2023) Free float 64.5%2 • Number of shares: 8,047,187 • Market
Slide 34: 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 35: Kalray Acceleration Card
KALRAY ACCELERATION CARD Kalray DPU-based Acceleration Card © Kalray SA. Confidential - All Rights Reserved. 35
Slide 36: A Unique Comprehensive Solution for Data-Intensive Applications
A UNIQUE COMPREHENSIVE SOLUTION FOR DATA-INTENSIVE APPLICATIONS DPU-Based Acceleration Cards PROVEN, LARGELY UNIQUE DPU DEPLOYED SOFTWARE + ACCELERATION CARDS SOLUTIONS © Kalray SA. Confidential - All Rights Reserved. 36
Slide 37: Exponential Growth of Data to Process Faster
WE FACE AN EXPONENTIAL GROWTH OF DATA … TO PROCESS FASTER AND FASTER IoT 75% of data need to be processed 500m of Tweets/day 6Bu IoT devices connections by 2026 in real time 6 000 every second 100m of video hours Data are Ze ttabytes pe r Year seen every days Exploding Telecom 90 85 AI, 5G, IoT… 5Bu
Slide 38: Example of a Data-Intensive System
EXAMPLE OF A DATA-INTENSIVE SYSTEM Autonomous Cars Require Analyzing Huge Flows of Data in Real-time Cloud Intelligent Processor Smart Sensors 1 GB OF DATA PROCESSED PER SECOND © Kalray SA. Confidential - All Rights Reserved. 38
Slide 39: Data-Intensive Applications Require New Solutions
DATA-INTENSIVE APPLICATIONS REQUIRE NEW SOLUTIONS The Emergence of Data Processor Unit (DPU) Only a new type of processor can analyze a huge flow of data in real time “DPU” COMPUTERS SMARTPHONES INTELLIGENT SYSTEMS APPLICATION CONNECTIVITY ANALYSIS & PROCESSING & MOBILITY DECISION-MAKING 1970+ 1990+
Slide 40: Kalray DPU
KALRAY DPU At the Heart of Kalray Unique Data Kalray, the leading DPU company Efficiency Kalray DPU: Wikipedia – DPU Processor “Best “A data processing unit (DPU) is a programmable specialized electronic circuit with hardware acceleration of data processing Technology for data-centric computing.” &
Slide 41: Kalray DPU: Unique Technology
KALRAY DPU Unique Technology, Most Advanced DPU on the Market, Result of 10 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 42: Kalray Positioning vs Competition
KALRAY POSITIONING VS COMPETITION Cost-Optimized for Intelligent Data Processing High Computing Efficiency MPPA® DPU FPGA GPU Low Latency / ✓ ✓ ✓ Performance Deterministic / Best Power Real-Time Efficiency Easily programmable (open standards) ✓ x ✓ Cost Efficiency ✓ x x $ Heterogeneous Performance s