2020 activity & 2021-2023 outlook€¦ · intelligent data processing from cloud to edge 2020...

© Kalray SA. Confidential Page 1

www.kalrayinc.com

Intelligent Data ProcessingFrom Cloud to Edge

2020 Activity & 2021-2023 Outlook

January 2021


THE SPEAKERS

Eric Baissus Executive Board Chairman

20 years’ experience as senior executive for major telecom (Alcatel-Lucent) and electronics (Texas Instruments) groups, startup director.

Founder and CEO of Open-Plug (2002): high-tech firm sold to Alcatel-Lucent in 2010.

Anne GabrotCFO

20 years’ experience as CFO for major telecom groups and tech startups.


Agenda

1. 2020 Key Facts

2. Revenue &Cash

3. 2021 Business Outlook

4. Q&A Session


Agenda

1. 2020 Key Facts

2. Revenue & Cash


4. Q&A Session


WATCH KALRAY CORPORATE VIDEOA 2 Minutes Video To Introduce Kalray

https://www.kalrayinc.com/


KEY FACTS

COOLIDGETM Launch of Coolidge™Last milestone reached at the end of 2020 with certification of our “Smart Adapter NVMe-oF” targeting new storage servers.

SOLID CASH POSITION

Crisis management- Minimized impact of Covid19 on product development- Minimized impact of supply chain shortage

COVID-19

First product availableWistron launched on the market an ultra-high throughput and secure storage appliance, breakthrough solution, based on CoolidgeTM

INTELLIGENTDATA CENTER +4M€ YoY

- NXP investment- “PGE” loans- ABB- Cash-burn as expected

FINANCE

Euronext AwardKalray received the European Rising Tech label, awarded by Euronext.

LABELLING

First product availableNXP Semiconductors launched its compute platform for the next generations of cars based on CoolidgeTM at CES 2021

INTELLIGENT CARTECHNOLOGY


Agenda

1. 2020 Key Facts

2. Revenue & Cash


4. Q&A Session


REVENUE 2020 & CASH MANAGEMENT

• 20.2M€ (vs 15.7M€ end 2019)• Strict expenses management• 8M€ strategic investment from NXP• 5M€ of State Guaranteed loan (PGE)• 5.2M€ from ABB

• No partial unemployment• Continuous investment in human resources:

9 recruitments in 2020, mainly for engineering and support positions

HR

CASH POSITION

• Efficient organization – home office and rotations

• Focus on digital events for business development

• Management of supply chain tension

MANAGEMENT OF THE COVID-19 CRISIS

• 1.0M€ (vs 1.3M € in 2019 – lower services)• Sale of boards and development platforms to

customers in the product evaluation and qualification phases

• 2020 was the transition phase to volume ramp up in 2021 (customers in production)

REVENUE IN LINE WITH EXPECTATIONS


CASH VIEW : IN LINE WITH EXPECTATIONS

Cash End of 2019 Cash End of 2020

NXP Strategic Investment

State Guaranteed loan (PGE)

Private placement ABB

Cash burn

€15.7M

€20.2M

€8.0M

€5.0M

€5.2M (€13.7M)

+4.4M€


ESTABLISHMENT OF AN EQUITY LINE with Kepler Cheuvreux

• Creation of 390,000 new shares (*)

• 7% of the capital on a non-diluted basis (*)

…WITH LIMITED DILUTION

• Over a maximum period of 24 months

• Commitment of Kepler Cheuvreux(subject to contractual conditions)

• Price: 2 days VWAP, less a maximum discount of 6.0%

€12M LINE

(*) example based on subscription price calculated over the last 10 days prior to January 20, 2021

CONTINUE INVESTING TODAY, TO PREPARE POST 2023

(NEXT GEN CHIPS)

BE THE EUROPEAN LEADER

OF THE EDGE COMPUTING PROCESSORS

MARKET


Agenda

1. 2020 Key Facts

2. Cash Position


4. Q&A Session


Data Center

The Processor at the Heart

of Intelligent Systems

MPPA®


LAUNCH OF KALRAY SMART STORAGE ADAPTER


FURIO1200The First “Kalray-Inside” Server Available on the Market

FURIO1200TM

Coolidge-based – no need of X861 to 6 K200 Cards

Ultra-fast : 12MIOPS / 72 GBs

High Capacity : 24 U2 SSDs

NVMe-oF compliant – TCP & RoCE

Support of in-line data services (data protection, encryption, …)

Open and Upgradable


USE CASE 1 : SLASH TCO FOR HIGH COMPUTE APPLICATIONS Secure, High-Performance, Storage Disaggregation

KEY BENEFITS• Similar performance versus local SSD• No data protection performance loss• DevOps: add what you need when you need• Open to added-value services

Replace or extend local SSD with a secure, high performance NVMe-oF SSD storage nodeleveraging Kalray’s Smart Storage Adapter PCIe card.

Flexiblke Business Model

Build Your Own Turn Key

+ SW

Traditional Approach

Using Kalray for Storage Disaggregation


USE CASE 2 : INCREASE AI PERFORMANCEConnect Kalray Storage Node to Global File System for Unique Perf

Flexible Business Model

Build Your Own

+ SW

GFS

GFS

GFS

GFS

GFS

GFS

GFS

GFS

Traditional Approach

Using Kalray for Data Protection

KEY BENEFITS• Remove Data Protection bottle neck• Make AI calculation faster• Make AI calculation less costly

AI Processing

AI Processing


FURIO1200 vs COMPETITION FURIO1200 versus Latest Generation of SAN*

KEY BENEFITS

• Best performance (x6)• Best consumption (x8)• Future proof (new data services)• Open & Scalable

FURIO1200 Best Current Generation

DPU Kalray MPPA N/A

NUMBER OF DPU 2 to 6 N/A

ARCHITECTURE Scale up, out Fixed

MEDIA NVMe SSDSAS SSD

NVMe SSD

HOST SUPPORTNVMe-oF/TCP

NVMe-oF/RoCE

NVMe-oF/RoCE

NVMe/FC

IB, FC, iSCSI

HOST PORTS 12 x 100 Gb/s 8 x 100 Gb/s

END TO END NVMe yes no

IOPS (in millions) 12 2

LATENCY (us) - ROCE 20us 100+ us

LATENCY (us) - TCP 50us Not Supported

BANDWIDTH (GB/s) 72 44

DATA PROTECTION Erasure Coding / RAID RAID

MANAGEMENT Rest API Proprietary

PROGRAMMABLE / FRAMEWORK Yes / SPDK No

IOPS / WATT 16,000 (IOPS/WATT) 2,040 (IOPS/WATT)• Based on generally available data on the web• Informations are subject to change and are not contractual


KALRAY STORAGE SOLUTION MARKET DEPLOYMENT SCHEDULE

Q4-2020

K200-LP – EVT

Q3-2020 Q1-2021 Q2-2021

Open Software & Tools

AccessCore®

AccessCore® StorageFully ProgrammableHigh-PerformanceData Plane for Storage

Q3-2021 Q4-2021

K200-LP – MP

End-Customer Pilots

Mass Production

FURIO1200

3 to 6 Months


KALRAY MULTI-PURPOSE ACCELERATION CARDA Single Card for Intensive Workload in Data Centers

STORAGEEDGECOMPUTING HPC

NVMe-oF storage solutions− JBOF− Hybrid JBOF / JBOD− Disaggregated storage servers

Software defined, composable& hyper-converged storage solutions

AI storage containerComputational storage

Compute acceleration AI Inference acceleration

SECURITY NETWORKING

SDN Acceleration (OpenvSwitch, SD-WAN, NAT…)

SSL / TLS offload Encryption / Decryption offloadNew data center security models

AI+

New Distributed Platform nodes

Next Gen SmartNIC


KALRAY MARKET FORECAST (SAM)

Smart Storage Programmable NIC

Telecom Market (R)Evolution

2023 Acceleration Card Market SizeData Center / Telecom = $3,3B (4,5mu Cards)

Kalray TargetsData Center / Telecom = $100m (100 ku Cards)

• Market is moving away from expensive OEM specific SAN storage solutions to NVMe-oF on-the-shelf solutions

• Market is Storage Expansion Market

• Switching to NVMe-oF

• Need to improve performance of the VNF (Virtualized Networking Functions), security functions via fully programmable NIC

• Telecom Infrastructure is facing a major (r)evolution

• Telco « Edge Computing », Open RAN

• « Software-defined » Network et Stockage

• Need for acceleration

Source: OMDIA Source: OMDIA

Source: ABI Research

Source: OMDIA


Automotive

The Processor at the Heart

of Intelligent Systems

MPPA®


NXP ANNOUNCED THE BLUEBOX 3.0 WITH “KALRAY-INSIDE” AT CES 2021

https://www.youtube.com/watch?v=pGXHt6x6ubU


BLUEBOX 3.0Automotive High Performance Compute Platform

To address vehicle Architecture transformation

• High performance compute

• ADAS and AD

• Safety

• Flexible and easy prototyping

• Increased performance

Deployed by NXP worldwide end of Q1-2021


HIGH LEVEL STRATEGY FOR 2021

• Volume ramp-up of Kalray-based card and solutions

STORAGE MARKET AUTOMOTIVE MARKET

ADJACENT MARKETS – FUTURE REVENUE

Leverage strategic partnerships to position as a key component of next gen vehicles

• Smart Vision / 5G

• Leverage eco-system and France / European funding

• A unique sovereign solution for Europe

NEXT GEN. (2024/2025) : THE DOLOMITES REVOLUTION


ADJUSTED FINANCIAL OBJECTIVES

TARGET SIGNIFICANT GROWTH SEVERAL MILLION OF € IN 2021

€100M IN FY 2023 (DELAYED BY 6 MONTH)

NO TARGET FOR 2021 (AGAINST BREAKEVEN AT MID-YEAR)

BUT CASH CONSERVATION

EQUITY LINE: €12M

REVENUE EBITDA

CASH POSITION: €20.2 M

• SLIGHT DELAY IN MARKET LAUNCH DUE TO CURRENT INDUSTRIAL ENVIRONMENT• INVESTMENT IN NEXT GENERATION PRODUCT• FOCUS ON REVENUE VS EBIDTA


2021 – THE “KALRAY INSIDE”YEAR


Agenda

1. 2020 Key Facts

2. Cash Position


4. Q&A Session


Q&A SESSION

"Hands Up" button

MICROSOFT TEAMS

Keys " * " then " 6 "

PHONE

6

*


www.kalrayinc.com

Thank YouKALRAY S.A.

Corporate Headquarters180, avenue de l’Europe

38 330 Montbonnot, FrancePhone: +33 (0)4 76 18 90 71

[email protected]

KALRAY INC.America Regional Headquarters4962 El Camino Real Los Altos, CA - USAPhone: +1 (650) 469 3729 [email protected]

KALRAY JAPAN - KKRepresented by MACNICA Inc. Strategic Innovation GroupMacnica Building, No.1, 1-6-3 Shin-YokohamaKouhoku-ku, Yokohama 222-8561, JapanPhone: +81 45 470 9870

KALRAY S.A.SUNDESK Sophia-Antipolis930 route des Dolines06560 ValbonnePhone: + 33(0) 4 76 18 09 18

mailto:[email protected]:[email protected]


INCOME STATEMENT - H1 2020

* Adjusted operating result = operating result + research tax credit

Consolidated – (€000) – Audited data As of June 30, 2019 As of June 30, 2020

Net sales 456 489

R&D capitalization 3,279 3,548

Subsidies 1,056 980

Other revenue 55 38

Operating income 4,846 5,055

Cost of sales (66) (144)

Operating expenses (7,432) (7,523)

Including salaries and contributions (3,872) (4,570)

Including other expenses (3,560) (2,954)

EBITDA (2,652) (2,612)

Depreciation and amortization (2,800) (3,984)

Operating result (5,452) (6,596)

Research tax credit 1,147 1,336

Adjusted operating result* (4,305) (5,260)

Financial result (23) (41)

Exceptionnal result (29) -

Net result (4,357) (5,301)

Sale of boards and development platforms to customers in the product evaluation and qualification phases

Amortization of CoolidgeTM developments and masks

Headcount: 81 in June 2019, 92 in June 2020

Reduction of subcontractors' expenses Reduction of travel expenses due to Covid-19 crisis


CASH FLOW STATEMENT - H1 2020

NXP investment

Consolidated – (€000) – Audited data As of 31/12/ 2019 As of 30/06/2020

Operating cash flow before CAPEX & WC variation (5,204) (2,333)

Change in working capital (incl. R&D tax credit) 1,138 (1,505)

Operating cash flows (4,066) (3,838)

Capex (5,335) (1,734)

R&D capitalization (6,217) (3,548)

Investment subsidies 1,431 873

Cash flows from investment activities (10,121) (4,409)

Free cash flow (14,187) (8,247)

Net cash from investors 96 7,998

Bank debt (net) 318 2,317

R&D conditional advances & prepaid subs 716 1,197

Cash flows from financing activities 1,130 11,512

Change in cash and cash equivalents (13,057) 3,265

Cash beginning of period 28,782 15,725

Cash end of period 15,725 18,990

PGE (loans guaranteed by French State) 2.5 M€ in H1 2020 (2.5 M€ in H2 2020)


BALANCE SHEET AT JUNE 30, 2020

ASSETS (K€) as of 31/12/19 as of 30/06/20 LIABILITIES & EQUITY (K€) as of 31/12/19 as of 30/06/20

Intangible assets 16,935 18,460

Tangible assets 4,673 4,510 EQUITY 26,665 29,347

Financial assets 609 546 Provisions 89 107

NON CURRENT ASSETS 22,217 23,516 R&D refundable advances 5,904 6,476

Inventories 240 220 Bank loans 775 3,092

Accounts Receivable 764 454 Accounts Payable 3,128 2,180

Other receivable (CIR, Subsidies) 1,779 2,147 Taxes & contributions payable 1,549 1,441

Cash 15,725 18,990 Other debts 354 536

CURRENT ASSETS 18,508 21,811 DEBTS & LIABILITIES 11,799 13,832

Accrued expenses 414 561 Deferred revenue (Subsidies) 2,676 2,709

TOTAL ASSETS 41,140 45,889 TOTAL LIABILITIES & EQUITY 41,140 45,889

Consolidated and audited data (K€)


KALRAY STOCK INFORMATION DATA

STOCK EXCHANGE SHAREHOLDING - AS OF DECEMBER 31, 2020

• Market: Euronext Growth

• Name: KALRAY

• ISIN code: FR0010722819

• Ticker symbol: ALKAL

• Share price: €47.80 (at 20/01/2021)

• Market capitalization: €258 M (at 20/01/2021)

Number of shares: 5 400 732

1

2

Financial

investors (1)

27%

Corporate

investors (2)

31%

Free Float

42%

(1) Financial investors over 5%(2) Corporate investors and/or investors with board representation


TOMORROW: BREAK FREE FROM HCI LIMITATIONSLower TCO, Higher Performance

Standard HCI

Kalray Smart Storage Adapter PCIe cards offer a unique solution to disagreggate HCI and dramatically

reduce performance loss due to storage tasks

• Provide a global data repository• Offload storage services from x86 (incl RAID)• Compatible with any standard HCI HW• Improve CPU usage by more than 20%• Support Scale Out• Seamless integration with VMWare, K8, ...• Support heterogeneous servers and nodes• Composable ready

HCI with Kalray Smart Cards


DISCLAIMER

Kalray makes no guarantee about the accuracy of the information contained in this document. It is intended for informationpurposes 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 making purchasing decisions. The development, release and timing of any features or functionalitydescribed for Kalray products remains at the sole discretion of Kalray.

Trademarks and logos used in this document are the properties of their respective owners.

2020 activity & 2021-2023 outlook€¦ · intelligent data processing from cloud to edge 2020...

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