Kalray Sa · EURONEXT:ALKAL

Kalray Sa — H1 2024 Earnings Presentation

36 slides from Kalray Sa's earnings presentation, September 2024

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 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 7: Preamble: Pliops
PREAMBULE : PLIOPS THE GROUP ANNOUNCED THIS SUMMER THE END OF EXCLUSIVE NEGOTIATIONS FOR A MERGER WITH THE ISRAELI COMPANY PLIOPS, IN AN UNFAVORABLE MARKET ENVIRONMENT FOR A CAPITAL OPERATION THAT WOULD CREATE VALUE FOR ALL SHAREHOLDERS © Kalray SA. Confidential - All Rights Reserved. 7
Slide 8: 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 9: Jumbo Contract
“JUMBO CONTRACT” Customer Profileed company • Over 100B$ valuation • Several tens B$ revenue in 2021 Pre-Series Customer Needs • Highly efficient data processing solution for next Development On-going generation systems • Key KPIs: - Performance / $ - Signal Processing and AI capabilities Solution •
Slide 10: Income Statement – H1 2024
INCOME STATEMENT – H1 2024 Data submitted to limited review by the auditors Consolidated data – (€000) 30 juin 2023 30 juin 2024 This figure aligns with recent announcements and reflects extended sales cycles and supply chain challenges for certain components Net Sales 15,275 10,933 Increase in reco
Slide 11: Cash Flow Statement – H1 2024
CASH FLOW STATEMENT – H1 2024 Data submitted to limited review by the auditors December Cash flow in K€ June 30th, 2024 31st, 2023 Operation Cash Flow before Capex & WC variation 3,697 (3,270) Positive change in WC at 1,9M€ Change in working capital (including R&D tax Credit) (5,843) 1,432 OPERATING
Slide 12: Balance Sheet – H1 2024
BALANCE SHEET – H1 2024 Data submitted to limited review by the auditors Including Arcapix goodwill (€2,3M) not ASSETS (K€) As of 31/12/2023 As of 30/06/2024 LIABILITIES & EQUITY (K€) As of 31/12/23 As of 30/06/2024 allocated as well as Coolidge 2 IP's and 1 Developments for a net value of 21,8M€ an
Slide 13: Reinforcement of the Cash Position
REINFORCEMENT OF THE CASH POSITION €6m of bonds redeemable in new shares • July 11th the company issued bonds with first drawdown of 6M€ paid by IRIS (1) • As of September 18th, 380 warrants have been converted in 6 M€ 131 238 shares with very limited impact on the share price . CASH RECEIVED • Two
Slide 14: Immediate Plan to Improve Financial Visibility
IMMEDIATE PLAN TO IMPROVE FINANCIAL VISIBILITY Renegotiation of debts • Renegotiation of our debt with three of the Company's strategic partners (IP providers) • Implementation of a cost reduction plan (20% of operating Cost expenses throughout the group – see strategic plan slides) reduction plan V
Slide 16: Strategic Plan
STRATEGIC PLAN A RAPID AJUSTEMENT IS REQUIRED TO ALIGN THE COMPANY TOWARDS A MORE ATTRACTIVE AND PROFITABLE MODEL 1 2 COST REDUCTION STRATEGIC PIVOT 20% by end of the 2024 fiscal year on operating Move to a more attractive expenses and profitable model throughout the Group OBJECTIVE: FREE CASH-FLOW
Slide 17: Main Activities at Kalray Today
3 MAIN ACTIVITIES AT KALRAY TODAY DATA DATA NEXT GEN ACCELERATION ACCELERATION DPU DESIGN PLATFORM CARDS • 80% Kalray's revenue in H1 2024 • Turnover : €4 million to be recognized • Strong negative impact on EBITDA in 2024 (of which 1.1 million in H1 • Close to its breakeven point 2024) • Highly cas
Slide 18: Kalray DPU Design: New Positioning
KALRAY DPU DESIGN Current Positioning New Positioning NEW POSITIONING Proprietary product model Collaborative service model CUSTOM ACCELERATION DESIGN Development of generic data processors and Development of customized high-value solutions hardware acceleration complete solutions CAPEX and OPEX int
Slide 19: Market Opportunity: Customized Hardware Acceleration
MARKET OPPORTUNITY: CUSTOMIZED HARDWARE ACCELERATION A New Paradigm Power consumptions is a Complexity of processors and Industry seeks for offers to major cost driver costs of manufacturing efficiency build customized and challenge processes are growing hardware acceleration exponentially solutions
Slide 20: Kalray's Vision
KALRAY’S VISION CPUs • Will remain the generic compute solution GENERAL MODULAR & • Will continue to provide best performances for most workloads PURPOSE COMPOSABLE • However cannot answer all requirements efficiently CPU ACCELERATOR Accelerators • Provide best performances and efficiencies for spec
Slide 21: Why Kalray for Custom Hardware Acceleration Solutions?
WHY KALRAY FOR CUSTOM HARDWARE ACCELERATION SOLUTIONS? 15 year of Most mature know-how Unique portfolio of silicon-proven Data in advanced assets and acceleration processing expertise company in Europe technologies We own proven We have world track record leading (e.g Jumbo competencies Contract) ©
Slide 23: Creation of Kalray Design
CREATION OF KALRAY DESIGN Kalray Design aims to maximize profitability and enhance innovation WHAT TO WHOM HOW Open Innovation High-Growth Markets of 100% Owned Dedicated External R&D Date Centers, AI, 5G, Subsidiary Storage Cloud Service Providers 70+ Talents Focus on delivering tailored (Public /
Slide 24: Business Model of Kalray Design
BUSINESS MODEL OF KALRAY DESIGN UPFRONT Licence MILESTONES Engineering services paid by clients for development of customized solutions ROYALTIES Paid by customers on the final solutions delivered, ensuring long-term recurring revenue from successful deployments. © Kalray SA. Confidential - All Righ
Slide 25: Business Model Comparison: Product Based Model
BUSINESS MODEL COMPARISON: PRODUCT BASED MODEL Kalray Funding Sales 3 / 4 Years Development Plan Productions Cash-Out Cash-In © Kalray SA. Confidential - All Rights Reserved. 25
Slide 26: Business Model Comparison: To Service Model
BUSINESS MODEL COMPARISON: TO SERVICE MODEL 3 / 4 Years Development Plan Production Royalties Customer Co-Funding • 1.2M€ contract already signed • Several on-going discussions Cash-Out Cash-In © Kalray SA. Confidential - All Rights Reserved. 26
Slide 27: Kalray Design Ecosystem
KALRAY DESIGN ECOSYSTEM We are already part of this ecosystem SYSTEM INTEGRATORS & FINAL CUSTOMERS 3rd PARTY SERVER OEM SILICON ACCELERATOR IP DESIGN CPU HOUSES FOUNDRIES © Kalray SA. Confidential - All Rights Reserved. 27
Slide 29: Building a Profitable Company
BUILDING A PROFITABLE COMPANY Kalray in 2025 KARLAY DATA KALRAY KALRAY ACCELERATION ACCELERATION DESIGN PLATFORM CARDS LIMITED CASHFLOW CASHFLOW RUN RATE POSITIVE POSITIVE (~12M€/YEAR) FAST ACCESS TO REVENUE © Kalray SA. Confidential - All Rights Reserved. 29
Slide 30: Objectives 2024 & 2025
OBJECTIVES 2024 & 2025 In view of the current commercial pipeline and the new contracts won in the 1st half of the year Kalray is targeting revenue growth in the 2nd half of 2024 compared to the 1st half of 2024. Bring the normative Free Cash-Flow of around -€1.5 million per month at the end of 2024
Slide 32: 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 33: Revenue: Direct vs Indirect
REVENUE: DIRECT VS INDIRECT Kalray Card Acceleration cards Direct Indirect Kalray 40% Box Storage appliances 60% Kalray Data submitted to limited review by the auditors NGenea Data Acceleration Platform © Kalray SA. Confidential - All Rights Reserved. 33
Slide 34: NGenea Solution: Moving from a Direct to an Indirect Sales Approach
NGENEA SOLUTION: Moving from a Direct to an Indirect Sales Approach Direct Indirect RAMPING UP KALRAY PARTNER PROGRAM TO 40% EXTEND INDIRECT SALES 60% Data submitted to limited review by the auditors © Kalray SA. Confidential - All Rights Reserved. 34
Slide 35: 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 Data submitted to limited review by the auditors NGenea Data Acceleration Platform (1) Hardware: supply of processors, cards and complete sets of st
Slide 36: Revenue by Type – 2/2
REVENUE BY TYPE – 2/2 NGenea Data 85% Platform Recurrent €10.9M 15% Business Repeat Data submitted to limited review by the auditors 40% Business © Kalray SA. Confidential - All Rights Reserved. 36

Kalray — H1 2024 Earnings Presentation on 6ix

Kalray Sa — H1 2024 Earnings Presentation

Slide 1: Kalray Investor Presentation September 2024

Slide 2: Important Notice

Slide 3: The Speakers

Slide 4: Agenda

Slide 5: Kalray: European Leader in Data Processor

Slide 6: Agenda

Slide 7: Preamble: Pliops

Slide 8: H1 2024 Revenue

Slide 9: Jumbo Contract

Slide 10: Income Statement – H1 2024

Slide 11: Cash Flow Statement – H1 2024

Slide 12: Balance Sheet – H1 2024

Slide 13: Reinforcement of the Cash Position

Slide 14: Immediate Plan to Improve Financial Visibility

Slide 15: Agenda

Slide 16: Strategic Plan

Slide 17: Main Activities at Kalray Today

Slide 18: Kalray DPU Design: New Positioning

Slide 19: Market Opportunity: Customized Hardware Acceleration

Slide 20: Kalray's Vision

Slide 21: Why Kalray for Custom Hardware Acceleration Solutions?

Slide 22: Agenda

Slide 23: Creation of Kalray Design

Slide 24: Business Model of Kalray Design

Slide 25: Business Model Comparison: Product Based Model

Slide 26: Business Model Comparison: To Service Model

Slide 27: Kalray Design Ecosystem

Slide 28: Conclusion

Slide 29: Building a Profitable Company

Slide 30: Objectives 2024 & 2025

Slide 31: Q&A Session

Slide 32: Disclaimer

Slide 33: Revenue: Direct vs Indirect

Slide 34: NGenea Solution: Moving from a Direct to an Indirect Sales Approach

Slide 35: Revenue by Type – 1/2

Slide 36: Revenue by Type – 2/2