Slide 1: Kalray Full Year Results 2022
KALRAY FULL YEAR RESULTS 2022 Investor Presentation – April 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: 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 • 2022 Key Facts • 2022 Financials • 2023 Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 4
Slide 5: 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 6: 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 7: 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. 7
Slide 8: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • 2022 Financials • 2023 Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 8
Slide 9: 2022: A Change in Dimension
2022 A CHANGE IN DIMENSION © Kalray SA. Confidential - All Rights Reserved. 9
Slide 10: Record Revenue in 2022, Strong EBITDA Improvement
1 RECORD REVENUE IN 2022 STRONG EBITDA IMPROVEMENT Kalray K200-LP™ Acceleration cards Consolidated Revenue (1) €16.4M Kalray Consolidated EBITDA (1) Flashbox™ Storage appliances - €5.8M - €2.7M x11 Kalray €1.5M Software pixstor™ + €3.1M Solutions & ngenea® 2021 2022 © Kalray SA. Confidential - All R
Slide 11: Revenue Breakdown: Hardware and Software
REVENUE BREAKDOWN Software, Support 63% & Service STORAGE MARKET, WELL BALANCED 37% HARDWARE AND Hardware SOFTWARE Hardware: supply of processors, cards and complete sets of storage. © Kalray SA. Confidential - All Rights Reserved. 11
Slide 12: A Balanced Breakdown in Geographical Areas
REVENUE BREAKDOWN Consolidated Revenue by Geographic Areas Mainly coming from the Others data-intensive applications growing markets (IA, 5% Other EU finance, media, research..) 18% A BALANCED BREAKDOWN IN GEOGRAPHICAL AREAS US 38% €16.4M (EU AND NON EU) 39% Exchange rate EUR/GBP 1.16. audited data
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: A Global Partnership with Dell Technologies
3 A GLOBAL PARTNERSHIP WITH DELL TECHNOLOGIES • DELL ETC PROGRAM Kalray joined the selective Extended Technologies Complete (ETC) COLLABORATION Dell Technologies program as a Core Partner (10 key partners worldwide) WITH THE LEADING STORAGE COMPANY • HPC & UDS DELL DIVISIONS Kalray solutions (ngenea
Slide 15: 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 PRESENCE 179 EMPLOYEES (Dec. 31, 2022
Slide 16: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • 2022 Financials • 2023 Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 16
Slide 17: Income Statement – 2022
INCOME STATEMENT – 2022 (1) Audited data Strong increase in consolidated revenue Consolidated data – (€000) 2021 2022 Var.% and improvement of EBITDA Net Sales 1,454 16,414 +1029% Subsidies 2,425 2,280 -6% Increase in capitalized production : continuous R&D effort (Coolidge™2 and R&D capitalization
Slide 18: Cash Flow Statement - 2022
CASH FLOW STATEMENT - 2022 Consolidated and Audited data REPORTING CASHFLOW in K€ ACTUAL FY 2021 ACTUAL FY 2022 Gross Margin 932 7 062 Opex (17 585) (26 153) R&D subsidies (operating & investment) 1 871 1 888 Change in WC (except. Tax credit and plan) (712) 886 No prepaid CIR cashed in FY 2022 Tax c
Slide 19: Balance Sheet 2022
BALANCE SHEET 2022 Audited data Including Arcapix goodwill (€13.8M) as well 1 as IP's and Developments for a net value of ASSETS (K€) As of 31/12/21 As of 31/12/22 LIABILITIES & EQUITY (K€) As of 31/12/21 As of 31/12/22 15,225K€ Intangible assets 19,461 38,129 1 Including CIR 2022 (4,049K€) and Prep
Slide 20: European Projects, Visibility and External Financing for Kalray
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 c
Slide 21: Agenda
AGENDA • Kalray in a Nutshell • 2022 Key Facts • 2022 Financials • 2023 Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 21
Slide 22: 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 23: 2023: A New Major Step in Building a Highly Profitable Business
2023 A NEW MAJOR STEP IN BUILDING A LEADING HIGHLY PROFITABLE BUSINESS IN THE FAST-GROWING MARKET OF DATA PROCESSING. © Kalray SA. Confidential - All Rights Reserved. 23
Slide 24: 2023 Key Objectives
2023 KEY OBJECTIVES BUSINESS TEAM OFFER GROWTH • A targeted • Top exec team • Strategic deals comprehensive SW & HW offer • €40M revenue • Increase of Sales + Operations • Launch of ngenea®2 & Coolidge™2 IMPROVEMENT OF EBITDA © Kalray SA. Confidential - All Rights Reserved. 24
Slide 25: Business Growth Focus
BUSINESS GROWTH 3 FOCUS © Kalray SA. Confidential - All Rights Reserved. 25
Slide 26: Major Contract Signatures & Deployment of Existing Contracts
1 MAJOR CONTRACT SIGNATURES & DEPLOYMENT OF EXISTING CONTRACT In Storage, Smart Vision/AI and 5G Storage Machine 5G Vision/AI Telecom © Kalray SA. Confidential - All Rights Reserved. 26
Slide 27: A Global Partnership with Dell Technologies
2 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) in H2 2022 A STRATEGIC • HPC & UDS DELL DIVISIONS Kalray solutions (ngenea® and pixstor™) are now
Slide 28: Media Market: One of the Most Dynamic
MEDIA MARKET: ONE OF THE MOST DYNAMIC… 3 … AND ADVANCED MARKET IN INTENSIVE DATA WORKLOADS © Kalray SA. Confidential - All Rights Reserved. 28
Slide 29: Recruitment: Global Exec, Sales, Pre-Sales and Operations Teams
RECRUITMENT: GLOBAL EXEC, SALES, PRE-SALES AND OPERATIONS TEAMS © Kalray SA. Confidential - All Rights Reserved. 29
Slide 30: Product Strategy
PRODUCT STRATEGY BUILD ADDED-VALUE FOR END-USERS AND EASE OF ADOPTION ON SPECIFIC SEGMENTS RATHER THAN RAW TECHNOLOGY © Kalray SA. Confidential - All Rights Reserved. 30
Slide 31: © Kalray SA. Confidential - All Rights Reserved.
© Kalray SA. Confidential - All Rights Reserved. 31
Slide 32: Coolidge2: First Samples This Summer
COOLIDGE™2: FIRST SAMPLES THIS SUMMER More Performance, Less Power Consumption, Fine Tuned for our Targeted 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. 32
Slide 33: Why Now?
WHY NOW ? MARKET IS NOW Data is everywhere – successfull companies will be those that can leverage 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 to be launched in 2023. PARTNER
Slide 34: Agenda
AGENDA • Kalray in a Nutshell • Key Facts 2022 • 2023 Outlook • Q&A © Kalray SA. Confidential - All Rights Reserved. 34
Slide 35: Q&A Session
Q&A SESSION 6 * MICROSOFT TEAMS PHONE "Hands Up" button Keys " * " then " 6 " © Kalray SA. Confidential - All Rights Reserved. 35
Slide 36: Thank You
THANK YOU www.kalrayinc.com © Kalray SA. Confidential - All Rights Reserved. 36
Slide 37: 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 38: Appendices
APPENDICES © Kalray SA. Confidential - All Rights Reserved. 38
Slide 39: Stock Exchange
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: €18.26 (at 14/04/2023) Free float 64.5%2 • Number of shares: 8,236,649 (31/03/20
Slide 40: 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. 40
Slide 41: Go-to-Market Strategy in Place
GO-TO-MARKET 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 soft
Slide 42: 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 43: Kalray Acceleration Card
KALRAY ACCELERATION CARD Kalray DPU-based Acceleration Card © Kalray SA. Confidential - All Rights Reserved. 43
Slide 44: 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 45: 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 46: 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
Slide 47: 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 48: 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 49: Financials - Introduction: Arcapix Integration
FINANCIALS - INTRODUCTION 1st Year of Integration of Arcapix SUPPORT COMPLETED ON DEAL KALRAY'S STRATEGY APRIL 15, 2022 STRUCTURE • €883 548 cash consideration and cash • Increases growth & value • Transaction mainly in shares adjustment (4 063 K€) taken out of around Kalray processors, approved by
Slide 50: 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. 50