Kalray Sa · EURONEXT:ALKAL
Kalray Sa — FY2023 Earnings Presentation
35 slides from Kalray Sa's earnings presentation, April 2024
Slide 1: Kalray FY 2023 Investor Presentation
KALRAY FY 2023 Investor Presentation – April 2024 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: 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 • 2023 Results › Key Take Aways › Financial Details • Update on Business Activity • ARM & Dolomites Announcement • Wrap-Up © Kalray SA. Confidential - All Rights Reserved. 4
Slide 5: Agenda
AGENDA • Kalray in a Nutshell • 2023 Results › Key Take Aways › Financial Details • Update on Business Activity • ARM & Dolomites Announcement • Wrap-Up © 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 + €250m 30 Generation R&D investment Patent and solutions that meet of MPPA® processor families the demands of artificia
Slide 7: We Have Types of Offers in Production
WE HAVE 2 TYPES OF OFFERS IN PRODUCTION More Than 50 Customers Worldwide DATA CORE DPU/GPU ACCELERATION PLATFORM K200-LP Storage Acceleration TURBOCARD 4 AI & Compute Acceleration © Kalray SA. Confidential - All Rights Reserved. 7
Slide 8: Agenda
AGENDA • Kalray in a Nutshell • 2023 Results › Key Take Aways › Financial Details • Update on Business Activity • ARM & Dolomites Announcement • Wrap-Up © Kalray SA. Confidential - All Rights Reserved. 8
Slide 9: 2023 Revenue & EBITDA
2023 REVENUE & EBITDA (in €M) Revenue €25.8M(2) EBITDA STRONG REVENUE GROWTH - €16.4M(1) SUBSTANTIAL IMPROVEMENT OF +57% -€1.1M EBITDA MARGIN (vs.2022) - €2.7M (1) + €1.6M 2022 2023 2022 2023 (1) 2022 consolidated revenue includes Arcapix Holdings Ltd as of April 15, 2022 (2) Exchange rate EUR/GBP 1
Slide 10: 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 €25.8M Storage appliances 2/3 Kalray NGenea Data Acceleration Platform (1) Hardware: supply of processors, cards and complete sets of storage (e.g NG-BOX). (2) Software: software licenc
Slide 11: Revenue by Type – 2/2
REVENUE BY TYPE – 2/2 NGenea Data 90% Platform Recurrent €25.8M 15% Business Repeat 45% Business © Kalray SA. Confidential - All Rights Reserved. 11
Slide 12: Consolidated Revenue by Region
CONSOLIDATED REVENUE BY REGION Other 10% US & EU €25.8M 50% EU (incl. UK) ARE MAJOR FOCUS US 40% Growing demand comes largely from selling complete solutions (HW and SW) to enterprises running data-intensive applications (AI, health, media, research..) © Kalray SA. Confidential - All Rights Reserv
Slide 13: Strong Gross Margin
STRONG GROSS MARGIN 67% Vs 56% in 2022 Gross Margin audited data © Kalray SA. Confidential - All Rights Reserved. 13
Slide 14: Gross Cash End 2023 & 2023 Cash Burn
GROSS CASH END 2023 & 2023 CASH BURN 2023 2023 Cash Burn mainly related to WC & Investments Working 6M€ Capital €32.2M Coolidge 2 €13.2M 4M€ Tape-Out End 2022 End 2023 Coolidge 2 development Currently finalizing the setup of a bank loan and preparing to launch a 8.5M€ and Dolomites EuroPP (Euro-deno
Slide 15: Income Statement – FY 2023
INCOME STATEMENT – FY 2023 Audited data Consolidated data – (€000) 2022 2023 Var.% Net Sales 16,414 25,829 57% Lower subsidies revenue due to Coolidge 2 depreciation starting on August 23 Subsidies 2,280 1,916 -16% R&D capitalization 11,753 12,177 +4% 4% increase in capitalized R&D effort Other reve
Slide 16: Cash Flow Statement – FY 2023
CASH FLOW STATEMENT – FY 2023 Audited data December December Cash flow in K€ 31st, 2022 31st, 2023 Operation Cash Flow before Capex & WC variation 2,749 3,697 Change in WC mainly due to the increase of Customer invoice receipt and vendor Change in working capital (including R&D tax Credit) (4,465) (
Slide 17: Balance Sheet - FY 2023
BALANCE SHEET - FY 2023 Audited data ASSETS (K€) As of 31/12/2022 As of 31/12/2023 LIABILITIES & EQUITY (K€) As of 31/12/22 As of 31/12/23 Including Arcapix goodwill (€2.3M) as well Intangible assets 38,129 41,940 1 1 as Coolidge 2 IP's and Developments for a net value of 16,756 K€ and next generati
Slide 18: Agenda
AGENDA • Kalray in a Nutshell • 2023 Results › Key Take Aways › Financial Details • Update on Business Activity • ARM & Dolomites Announcement • Wrap-Up © Kalray SA. Confidential - All Rights Reserved. 18
Slide 19: Kalray Ngenea Data Acceleration Platform
KALRAY NGENEA DATA ACCELERATION PLATFORM © Kalray SA. Confidential - All Rights Reserved. 19
Slide 20: Media & Entertainment: Key Take Away
MEDIA & ENTERNAINMENT: KEY TAKE AWAY • Very busy NAB2024 show • Large contracts closed or under negociation • Strong interest, strong growth of commercial pipe line • JB&A partner set up in US • Partner Program • See a slowed-down decision process by a few months © Kalray SA. Confidential - All Righ
Slide 21: High Performance Computing: Key Take Away
HIGH PERFORMANCE COMPUTING: KEY TAKE AWAY • Dell partnership ramping-up • Mainly Research and Industry • Closed one large well-known car maker and one large aircraft maker with our partner Dell © Kalray SA. Confidential - All Rights Reserved. 21
Slide 22: AI Market: Key Take Away
AI MARKET: KEY TAKE AWAY Ngenea accelerates AI data pipelines and processing for AI innovators, enterprises and cloud service providers • High-performance GPU Storage • Advanced Data Indexing • Integrate AI technologies First customers closed © Kalray SA. Confidential - All Rights Reserved. 22
Slide 23: Jumbo Contract: TC4 Production Started
« JUMBO CONTRACT »: TC4 PRODUCTION STARTED 3 STEPS PHASE 1 $2 MILLIONS PHASE 3 TENS OF PHASE 2 €MILLIONS / YEAR over several 2024 years Nov.22 $1 MILLION • 250+ cards in 2021/2022 2023 2025 - 2030 production • Additional • Deep technical • Technical, commercial • Kalray has developed a order in • Vo
Slide 24: TurboCard4
PCIE CARD FOR ARTIFICIAL INTELLIGENCE AND COMPUTE ACCELERATION LAUNCHED AI Computer Industry Edge Inference Vision 4.0 Computing TURBOCARD4 │ Kalray 3.5 Generation │ Tailored for AI at Edge and Storage │ Open SDK │ Optimized Power Consumption © Kalray SA. Confidential - All Rights Reserved. 24
Slide 25: Kalray Crypto and 5G Card
KALRAY CRYPTO AND 5G CARD Offloading Crypto and 5G heavy workloads Qualification on going First sales planned in H2 Support of AI for advanced use cases in 5G and Telecom © Kalray SA. Confidential - All Rights Reserved. 25
Slide 26: Agenda
AGENDA • Kalray in a Nutshell • 2023 Results › Key Take Aways › Financial Details • Update on Business Activity • ARM & Dolomites Announcement • Wrap-Up © Kalray SA. Confidential - All Rights Reserved. 26
Slide 27: Kalray and Arm Extend Their Collaboration on AI
KALRAY AND ARM EXTEND THEIR COLLABORTATION ON AI • Kalray becomes member of Arm Total Design ecosystem • 20+ partners, including the top three leading foundries, ASIC design houses, IP vendors, EDA tool providers, and firmware arm developers who are driving leading-edge innovation. • Ease the access
Slide 28: Dolomites Overview
DOLOMITES OVERVIEW A New Way to Build Data-Intensive Low Power, Lower Cost Systems Beg 2023 Optimized to I/O and Data Processing Project started Best Perf / $ / W Unique Level of Flexibility & Programmability (Chiplet Approach) Q4 2025 Tape Out CPU Chiplets (Optional) I/O and Data Processing Chiplet
Slide 29: Dolomites Overview
DOLOMITES OVERVIEW K A L R AY ’ S M P P A ® 4 DOLOMITES SOP DOLOMITES SiP ARM CHIPLETS (Optional) M P PA® C H I P L E T S © Kalray SA. Confidential - All Rights Reserved. 29
Slide 30: Dolomites Is a Huge Step Forwards
DOLOMITES IS A HUGE STEP FORWARDS COMPARED TO COOLIDGE2 Portability Flexibility Performance 20X BETTER Seamless porting The only DPU with Unique capability to PERFORMANCE process data efficiently 15X leveraging the ARM CPU dataplane cores Software ecosystem optimized for any data processing ONBOARD
Slide 31: Agenda
AGENDA • Kalray in a Nutshell • 2023 Results › Key Take Aways › Financial Details • Update on Business Activity • ARM & Dolomites Announcement • Q&A © Kalray SA. Confidential - All Rights Reserved. 31
Slide 32: 2024 Perspectives
2024 PERSPECTIVES Strong mid term drivers Flawless execution of “jumbo contract” with production IA dynamic market Strong partnership with arm ramping-up in 2024 and volume in 2025 Short term dynamics Strong commercial pipe Distribution and re-sellers Expected longer cycle of dynamic partnerships in
Slide 33: Q&A Session
Q&A SESSION 6 * MICROSOFT TEAMS PHONE "Hands Up" button Keys " * " then " 6 " © Kalray SA. Confidential - All Rights Reserved. 33
Slide 34: Thank You
THANK YOU www.kalrayinc.com © Kalray SA. Confidential - All Rights Reserved. 34
Slide 35: 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