H1 2021 Results - actusnews.com

© Kalray SA. Confidential Page 1

Kalray MPPA®Intelligent Data processing, from Cloud to Edge

H1 2021 ResultsOctober 5th, 2021

www.kalrayinc.com


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.

Page 3 © Kalray SA. Confidential

Agenda


1. Kalray in a Nutshell

2. Kalray FLASHBOX™ Launch

3. Key Facts

4. H1-2021 Financial Results

5. What’s Next?

6. Q&A Session


Agenda




3. Key Facts


5. What’s Next?

6. Q&A Session


KALRAY IN A NUTSHELLIntelligent Data Processing, from Cloud to Edge

Kalray offers a new type of processor targeting the booming market of intelligent systems.

Industrial investors

• Public Company (ALKAL)

• Support from European Govts

• Working with 500 fortune companies

Leader in Manycore Technology

30Patent families

≈€100mR&D investment

3rdgeneration

of MPPA® processor

• France (Grenoble, Sophia-Antipolis)• USA (Los Altos, CA)• Japan (Yokohama)• Canada (Partner)• China (Partner)• South Korea (Partner)

A GlobalPresence


KALRAY OFFER

Compute and AI Intensive Workloads

Solutions for Storage & Networking

MPPA® Processors PCIe Cards & Modules

Next Gen.Data Center

Edge Computing

Storage Appliances


Agenda




3. Key Facts


5. What’s Next?

6. Q&A Session


FLASHBOX

KALRAY’S STORAGE DIGITAL EVENTSeveral Hundreds of Storage Experts Worldwide


KALRAY FLASHBOXTM DemoFrom Sam Jones, Kalray DC SW Manager

https://youtu.be/eM5LYSC6B8U


Agenda




3. Key Facts


5. What’s Next?

6. Q&A Session


KEY FACTS H1-2021Kalray Continues to Deploy Its Solutions and Technology on the Market

BlueBox 3.0 (L2+ to L4)NXP Semiconductors launched its compute platform for the next generations of cars based on CoolidgeTM

NEXT GENCARS

FLASHBOX

FLASHBOXTM LaunchA complete storage appliance by Kalray,co-developed with Sanmina, one of thelargest ODM worldwide, available forKalray’s customers and for re-distribution

FLASHBOXTM

DATA CENTER

FLASHBOX

5G Co-development of a new type of 5G server, optimized in term of flexibility, performance and power consumption.

DATA CENTER

NOW

FLASHBOX

VM EnvironmentCo-development of a solution to optimize data centers running virtualized environment

DATA CENTER

BEG2022

END2022

SuperECU Concept (L1/L2)Kalray selected by a major car integrator for a project of next gen L1/L2 electronic architecture

NEXT GENCARS

2024


Agenda




3. Key Facts


5. What’s Next?

6. Q&A Session


INCOME STATEMENT - H1 2021

* Adjusted operating result = operating result + research tax credit

Consolidated – (€000) – Audited data As of June 30, 2020 As of June 30, 2021

Net sales 489 415

Subsidies 980 1,154

R&D capitalization 3,548 4,007

Other revenue 38 70

Operating income 5,055 5,646

Cost of sales (144) (111)

Operating expenses (7,523) (8,974)

Including salaries and contributions (4,570) (4,799)

Including other expenses (2,954) (4,175)

EBITDA (2,612) (3,439)

Amortization and depreciation (3,984) (5,829)

Operating result (6,596) (9,268)

Research tax credit 1,336 1,709

Adjusted operating result* (5,260) (7,559)

Financial result (41) (78)

Exceptionnal result - 6

Net result (5,301) (7,631)

Same revenue breakdown. No volume sales yet

Amortization of Coolidge R&D costs : 4.5 M€ on development costs and IP's and 1.3 M€ on masks and tests equipements.

Opex +19% as anticipated for 2021Low increase in Salaries in H1 (+5%) but many recruitments achieved with starting dates in H2.

Other expenses : + 1,2 M€ mainly on Subcontracting


CASH FLOW STATEMENT - H1 2021

Consolidated – (€000) – Audited data As of 31/12/ 2020 As of 30/06/2021

Operating CF before Capex & WC variation (5,092) (4,663)

Change in working capital (incl. R&D tax credit) (528) 1,382

OPERATING CASH FLOW (5,620) (3,281)

Capex (2,920) (2,563)

R&D capitalization (7,579) (4,007)

Investment subsidies 1,065 636

INVESTMENT CASH FLOW (9,434) (5,934)

FREE CASH-FLOW (15,054) (9,215)

Net Cash from investors 13,551 7,532

Bank Debt (net) 4,756 (184)

R&D conditionnal advances and prepaid subsidies (net) 1,260 450

FINANCING CASH FLOW 19,567 7,798

Annual Cash in (Cash out) 4,513 (1,417)

Cash beginning of period 15,725 20,238

CASH END OF PERIOD 20,238 18,821

Equity line 7 M€

Reminder : in 2020, NXP (8 M€) + ABB (5 M€)

R&D tax credit 2020 has been fully reimbursed by end of June , thus positive WC variation in H1. s positive WC variation for H1

Subsidies do not include recently granted projects(CARAIBE and PIRANA) due in H2 variation for H1

PGE reimbursement (5 M€ in 2020) will start in June 2022


BALANCE SHEET AT JUNE 30, 2021

ASSETS (K€) as of 31/12/20 as of 30/06/21 LIABILITIES & EQUITY (K€) as of 31/12/20 as of 30/06/21

Intangible assets 19,115 1,640

Tangible assets 4,286 4,558 EQUITY 28,434 28,275

Financial assets 620 499 Provisions 112 87

NON CURRENT ASSETS 24,020 24,697 R&D refundable advances 6,306 6,498

Inventories 134 226 Bank loans 5,531 5,389

Accounts Receivable 526 285 Accounts Payable 2,776 2,995

Other receivable (CIR, CICE, Subsidies)

2,165 2 987 Taxes & contributions payable 1,487 1,475

Cash 20,238 18 821 Other debts 124 96

CURRENT ASSETS 23,063 22,319 DEBTS & LIABILITIES 16,336 16,540

Accrued expenses 420 528 Deferred revenue (Subsidies) 2,734 2,729

TOTAL ASSETS 47,503 47,544 TOTAL LIABILITIES & EQUITY 47,504 47,544

Consolidated and audited data (K€)

No significant changes in Balance Sheet structure


STATUS OF THE EQUITY LINE With Kepler Cheuvreux

• 9,1 M€ raised• 257 271 new shares• Dilution : 4.4% (non diluted basis)

AS OF SEPTEMBER 30, 2021

Terms : • 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%

€12M LINE – START IN FEBRUARY 2021

CONTINUE INVESTING TODAY, TO PREPARE POST 2023

(NEXT GEN CHIPS)

BE THE EUROPEAN LEADER

OF THE EDGE COMPUTING PROCESSORS

MARKET


FLASHBOX

2 PROJECTS FUNDED

CARAIBE ProjectThis project aims at developing the next generation of MPPA processor® Coolidge™ (Coolidge2)

An open optimized and sovereign solution, based on Kalray acceleration cards, for the next generation of 5G infrastructures

ROADMAP

PIRANA Project5G


Agenda




3. Key Facts


5. What’s Next?

6. Q&A Session


www.kalrayinc.com

DATA CENTER



KALRAY K200-LP ACCELERATION CARDAt the Heart of Kalray Data Center Strategy

Power Efficient30W Typ

Fully ProgrammableC/C++

Volume ProductionReady

Compact SizeLow Profile



4.8 MILLION CO-PROCESSOR SERVERS IN 2025(Omdia Data Center Report)

“Data Center Compute Quarterly Analyst Presentation – 2Q21”, OMDIA


OMDIA REPORT – DATA CENTER EVOLUTION Key Trends

Silicon diversity Cloud/owned server

equilibrium

Programmable adapters set to

explode

</>

“Data Center Compute Quarterly Analyst Presentation – 2Q21”, OMDIA


FLASHBOX™ & STORAGE PRODUCTS

FLASHBOX

FLASHBOXTM LaunchA complete storage appliance by Kalray,co-developed with Sanmina, one of thelargest ODM worldwide, available forKalray’s customers and for re-distribution

FLASHBOXTM

DATA CENTER

NOW


KALRAY STORAGE SOLUTION MARKET DEPLOYMENT SCHEDULE

Q4-2020

K200-LP – DEV

Q3-2020 Q1-2021 Q2-2021

Open Software & Tools

AccessCore®

AccessCore® StorageFully ProgrammableHigh-PerformanceData Plane for Storage

Q3-2021 Q4-2021

End-Customer Pilots

Mass Production

STORAGE CARDS

STORAGE APPLIANCES

K200-LP – PROD


FLASHBOX™ BUSINESS MODELYou Have Two Options

TURN KEY APPLIANCE

AccessCore®Storage Software Suite

BUILD YOUR OWN

Delivered with ready-to-use

Develop & customize your own solution with

AccessCore®Storage Software Suiteand SDK


SMART STORAGE ADAPTERS For VM Environment Optimization

FLASHBOX

VM EnvironmentCo-development of a solution to optimize data centers running virtualized environment

DATA CENTER

H12022


OPTIMIZE VIRTUALIZED ENVIRONMENT THANKS TO KALRAY CARDBring Power Optimized Virtualization Environment

Existing architectures face huge challenge in term of performance and power consumption due to:- More and More VM- More and More Tenants (Security)- Faster Networks- Much, much, much Faster Stockage


FLASHBOX

5G Co-development of a new type of 5G server, optimized in term of flexibility, performance and power consumption.

DATA CENTER

5G ACCELERATORFor 5G Open-Ran

END2022


ACCELERATORS AT THE HEART OF NEXT GEN 5G SOLUTIONS

“Accelerators Will Play a Key Role in 5G and Edge Computing”From Dell Technologieshttps://www.delltechnologies.com/en-us/blog/accelerators-will-play-a-key-role-in-5g-and-edge-computing/

https://www.delltechnologies.com/en-us/blog/accelerators-will-play-a-key-role-in-5g-and-edge-computing/


PROJECT DESCRIPTION

Kalray K200-LPPCIe/EthernetAcceleration Cardbased on Kalray Processor Coolidge

AI & ComputeAccelerationEdge (MEC)

Platform of ServicesOperator

SmartNIC Network & Security

Open RAN Layer 1

Telecom / Edge Serveur

Integrated Solution optimized for 5G Edge Data Centers

Radio

NetworkingSecurity

Apps/AI

StockageStockage

One Experiment

Intelligent Transport System


www.kalrayinc.com

AUTOMOTIVE



AUTOMOTIVE MARKET

32

2024


KALRAY SELECTED AS A CENTRAL COMPUTING PLATFORMLeveraging Kalray’s Technology to Integrate L1/L2 functions

Central Compute


STORAGE SOLUTIONS

REVENUE RAMP UP

~ €2M TEN OF MILLION

END-2021

VM ACCELERATION CARDS

5G CARDS

SMART VISION CARDS

2022 2023 2024

100 MILLIONS …

AUTO

Coolidge™ 1 Coolidge™ 2


Agenda




3. Key Facts


5. What’s Next?

6. Q&A Session


Q&A SESSION

"Hands Up" button

MICROSOFT TEAMS

Keys " * " then " 6 "

PHONE

6

*


www.kalrayinc.com

THANK YOU

www.kalrayinc.com


KALRAY FLASHBOXTM demoFrom Sam Jones, Kalray DC SW Manager

https://vimeo.com/623526048/6ade54cf07

https://youtu.be/eM5LYSC6B8U

Documents

H1 2021 Results - actusnews.com