Kalray Sa · EURONEXT:ALKAL
Kalray Sa — Investor Presentation (June 2024)
53 slides from Kalray Sa's investor presentation, June 2024
Slide 1: Kalray Investor Presentation June 2024
KALRAY INVESTOR PRESENTATION June 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: Agenda
AGENDA • Kalray Overview • Kalray and the Data Acceleration & AI Market • Kalray Moving Forward • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 3
Slide 4: Agenda: Kalray Overview
AGENDA • Kalray Overview • Kalray and the Data Acceleration & AI Market • Kalray Moving Forward • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 4
Slide 5: 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 6: 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. 6
Slide 7: 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 8: Kalray Positioning: Accelerating Data on Two High Growth Markets
KALRAY POSITIONING: ACCELERATING DATA ON TWO HIGH GROWTH MARKETS ❶ STORAGE AND AI ❷ ACCELERATION AT ACCELERATION THE EDGE Enterprises Private Cloud Machine 5G Data Service Vision Telecom Centers Providers © Kalray SA. Confidential - All Rights Reserved. 8
Slide 9: Why Kalray DPU Is Unique?
WHY KALRAY DPU IS UNIQUE ? Result of more than 15 Years of Development – €250M of Investment USUAL “DPU” APPROACH K A L R AY M P P A A P P R O A C H (“A LA SMARTNIC”) Built with networking in mind Perfect fit for new data efficient processing Does not fit other processing requirements such requireme
Slide 10: 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. 10
Slide 11: 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 12: 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 13: 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. 13
Slide 14: 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 15: Strong Gross Margin
STRONG GROSS MARGIN 67% Vs 56% in 2022 Gross Margin audited data © Kalray SA. Confidential - All Rights Reserved. 15
Slide 16: Agenda: Data Acceleration & AI Market
AGENDA • Kalray Overview • Kalray and the Data Acceleration & AI Market • Kalray Moving Forward • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 16
Slide 17: A Unique Opportunity for Semiconductor Companies
A UNIQUE OPPORTUNITY FOR SEMICONDUCTOR COMPANIES Fast Growing Market : 30% CAGR from 2023 to 2032 © Kalray SA. Confidential - All Rights Reserved. 17
Slide 18: Where DPU & GPU Run
WHERE DPU & GPU RUN 2 Locations: • Cloud (Public or Private) • Edge © Kalray SA. Confidential - All Rights Reserved. 18
Slide 19: Where DPU & GPU Run
WHERE DPU & GPU RUN 2 Locations: • Cloud (Public or Private) • Edge © Kalray SA. Confidential - All Rights Reserved. 19
Slide 20: Gen AI Use Case
GEN AI USE CASE Hyper Centralized Architectures with Hyper Specialized Components GPU GPU GPU GPU GPU GPU GPU GPU COMPUTE DPU • Million of Files/s Primary • Millions of “IOPS” Storage Data Indexing & • Microseconds Latency Vectorization • 100’s of GB/s DATA STORAGE Archive © Kalray SA. Confidential
Slide 21: Where DPU & GPU Run
WHERE DPU & GPU RUN 2 Locations: • Cloud (Public or Private) • Edge © Kalray SA. Confidential - All Rights Reserved. 21
Slide 22: What Is Edge Computing
WHAT IS EDGE COMPUTING Edge Computing Definition & Edge Locations “Edge computing is a distributed computing paradigm that brings data processing and Everytime processing in storage closer to the source of data generation or consumption”. the cloud or in centralized datacenters FAR EDGE NEAR EDGE CL
Slide 23: AI at the Edge – Main Use Cases
AI AT THE EDGE – MAIN USE CASES INDUSTRY & LOGISTICS & HEALTHCARE TRANSPORT & UTILITIES MANUFACTURING SUPPLY CHAIN & LIFE SCIENCE MOBILITY & SMART CITIES RETAIL MEDIA & ENTERTAINMENT AGRICULTURE EDUCATION & RESEARCH TELECOM & CSP © Kalray SA. Confidential - All Rights Reserved. 23
Slide 24: AI at the Edge (Simplified) – Mainly Inference
AI AT THE EDGE (SIMPLIFIED) – MAINLY INFERENCE Local Compute Islands Architecture requiring Heterogeneous Solutions • Microseconds Latency • High Density • Cost & Power © Kalray SA. Confidential - All Rights Reserved. 24
Slide 25: Agenda: Kalray Moving Forward
AGENDA • Kalray Overview • Kalray and the Data Acceleration & AI Market • Kalray Moving Forward • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 25
Slide 26: Jumbo Contract Is Ramping-Up
JUMBO CONTRACT IS RAMPING-UP © Kalray SA. Confidential - All Rights Reserved. 26
Slide 27: 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 28: Indirect Sales Channel Strategy in Place
INDIRECT SALES CHANNEL STRATEGY IN PLACE PARTNER ON-BOARDING PROGRAM INITIATED © Kalray SA. Confidential - All Rights Reserved. 28
Slide 29: Global Partnership with Dell
GLOBAL PARTNERSHIP WITH DELL • PARTNERSHIP AGREEMENT IN PLACE SINCE END 2022 Kalray part of the Extended Technologies Complete (ETC) Dell Technologies program COLLABORATION • TARGET THE HPC&AI MARKET WITH THE LEADING • SIGNIFICANT GROWTH OF BUSINESS IN 2023 STORAGE COMPANY WORLDWIDE • RAMPED-UP OF D
Slide 30: Partnership with JB&A in US
PARTNERSHIP WITH JB&A IN US Strategic agreement to accelerate deployment of Kalray’s solutions in America, with a focus on Media and AI REINFORCE US MARKET • Integration center in JB&A facilities in Mississippi to build, integrate and ship Kalray and pixitmedia solutions in America PRESENCE OF OUR •
Slide 31: We Are a Strategic Player in the Next Gen Data Processing & AI Market
WE ARE A STRATEGIC PLAYER IN THE NEXT GEN DATA PROCESSING & AI MARKET © Kalray SA. Confidential - All Rights Reserved. 31
Slide 32: 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 33: 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 34: 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. 34
Slide 35: 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 36: Strong Support from Europe
STRONG SUPPORT FROM EUROPE 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, and power consumption ❸ 5G-OP
Slide 37: Kalray Key Strengths
KALRAY KEY STRENGHTS A mature and disruptive solution DolomitesTM, a major future asset in an attractive DPU market and for Kalray, with tape-out starting already a good position on AI at end 2025 A large panel of products Capacity to step forward into (hardware/software with data production with ju
Slide 38: Agenda: Pliops & Kalray Merge
AGENDA • Kalray Overview • Kalray and the Data Acceleration & AI Market • Kalray Moving Forward • Pliops & Kalray Merge : Building a Worldwide Champion • Q&A © Kalray SA. Confidential - All Rights Reserved. 38
Slide 39: Kalray & Pliops
KALRAY & PLIOPS A UNIQUE OPPORTUNITY TO: - ADDRESS THE HUGE MARKET OF GEN AI IN COMPLEMENT TO GPUS - BUILD THE STORAGE & AI ACCELERATON DPU COMPANY “This merger represents a significant strategic advancement. By combining Pliops and Kalray’ s exceptional assets, we are poised to enhance business opp
Slide 40: 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 41: Who Is Pliops: A Unique Team
WHO IS PLIOPS : A UNIQUE TEAM 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. 41
Slide 42: 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. 42
Slide 43: 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 +
Slide 44: Pliops & Kalray: GPU Initiated Key-Value IO Solution
PLIOPS & KALRAY: GPU INITIATED KEY-VALUE IO SOLUTION Optimized AI storage – Breaking the memory wall TODAY PROS • Avoid CPU-GPU coordination overhead • Convert GPU flows from batch data to fine-grain data KALRAY + PLIOPS • Only required data is transferred, improving the cache and wire utilization ©
Slide 45: Use Case: LLM Inference Processing Optimization
USE CASE: LLM INFERENCE PROCESSING OPTIMIZATION Based on Lab Testing Applicable to over 50% of the LLM inference GPU CONS PROS X ~6GPU for Prefill XDP Card + 60TB $200K $50K(1) (1) 80% gross margin © Kalray SA. Confidential - All Rights Reserved. 45
Slide 46: A Huge Market Striving for Better Cost Efficiency
A HUGE MARKET STRIVING FOR BETTER COST EFFICIENCY A Multi-Billion Market Potential for Kalray & Pliops Solutions In $,000 “AI is driving the bulk of new data center investments” Q1-2024 © Kalray SA. Confidential - All Rights Reserved. 46
Slide 47: Kalray + Pliops: Offering
KALRAY + PLIOPS: OFFERING GPU AI Computing Key-Value Store BEG. 2025 BEG. 2026 CPU AI Computing DB Acceleration Block Storage HPC EX: Gluster Enterprise EX: CEPH, NFS Lightning AI Dolomites AI Acceleration Appliances Cards TELECOM Compute EX: 5G/6G/Cyrpto Cards for AI and Data Acceleration EDGE EX:
Slide 48: 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 49: Kalray & Pliops: The Contemplated Transaction
KALRAY& PLIOPS: THE CONTEMPLATED TRANSACTION • Non-binding LoI with exclusivity until mid-July • SPA expected to be signed in the coming weeks • Payment in new shares with a 65% Kalray / 35% Pliops (up to 40% with condition) • Pliops shareholders would become shareholders of Kalray • Closing expecte
Slide 50: Conclusion
CONCLUSION © Kalray SA. Confidential - All Rights Reserved. 50
Slide 51: Join When Kalray Is Game Changer
JOIN WHEN KALRAY IS GAME CHANGER A GOOD MOMENTUM With Pliops an opportunity for a Unique compute and storage Ips/ disruptive solution in DPU market Mature solution AI & Gen AI booming in coming years Fast growing revenue & customer install basis A capacity to grow and integrate new companies with su
Slide 52: Thank You
THANK YOU www.kalrayinc.com © Kalray SA. Confidential - All Rights Reserved. 52
Slide 53: 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