Investor Presentation - Oddo BHF Forum - January 10, 2019
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Investor Presentation Oddo BHF Forum – January 10, 2019
THE SPEAKERS
Loic HAMON • Vice President of Anne GABROT • CFO
Corporate Dev. and Datacenter BU 20 years of experience as group CFO
20 years of experience in mobile technology, in the telecommunications sector and
security and semiconductors, of which 10 years at in technology start-ups.
Inside Secure et 12 years at Texas Instruments at
strategic positions.
2
KALRAY IN A NUTSHELL
Designs processors 3 ~70
Employees of which
at the heart of new offices ~60 engineers
intelligent systems Grenoble (France), Silicon Valley
& PhDs
(Los Altos, USA), Tokyo (Japan)
Financial and industrial shareholders
23
patent
families* Pengpai
*Including 2 families with an exclusive global patent granted by the CEA until December 31, 2026
3
KALRAY: The processor at the heart of new intelligent systems
WE ARE ENTERING
A NEW DIGITAL ERA
9 x MORE DIGITAL DATA CREATED
in the last 2 years than since the beginning of humanity1
It is critical to process this data in REAL TIME
through INTELLIGENT SYSTEMS
1 Deloitte Digital, Becoming an exponential organization (Sept. 2017)
5
INTELLIGENT SYSTEMS:
A TECHNOLOGICAL DISCONTINUITY
1970 1990 2020
COMPUTERS: SMARTPHONES: INTELLIGENT SYSTEMS:
APPLICATION CONNECTIVITY ANALYSIS &
PROCESSING & MOBILITY DECISION-MAKING
6
A NEED FOR A NEW GENERATION OF PROCESSORS
AT THE HEART OF INTELLIGENT SYSTEMS
1970 1990 2020
PROCESSORS PROCESSORS PROCESSORS
DESIGNED DESIGNED DESIGNED
FOR LARGE FOR LOW FOR INTELLIGENT
APPLICATIONS CONSUMPTION PROCESSING
7
KALRAY, PIONEER OF INTELLIGENT PROCESSORS 8
USE CASE: THE INTELLIGENT CAR
RENAULT
1 GB OF DATA PROCESSED PER SECOND
Credit : Yannick BROSSARD
9
KALRAY’S INTELLIGENT PROCESSOR:
THE OUTCOME OF 10 YEARS OF DEVELOPMENT
Academic EXCELLENCE
> 60 M€ R&D investment
> 350 person-years
23 patents families*
*incl. 2 families as an exclusive CEA license.
10A COMPANY FOCUSED ON TWO MARKETS
WITH VERY STRONG SHORT TERM POTENTIAL
DISRUPTIVE DOMAINS
Intelligent (opportunities for a new entrant)
data center
A HIGH LEVEL OF
TECHNOLOGICAL EXPECTATIONS
(barrier to entry)
SIMILAR TECHNOLOGY
(synergies)
Intelligent A LIMITED NUMBER OF
car
LARGE CUSTOMERS
(market access)
11A COMPANY ENGAGED IN A LARGE-SCALE
COMMERCIAL DEPLOYMENT PHASE
Ambition
€100M
of revenue
in 2022
Industrial processes in place
in a fabless model
Certified hardware
and software offering
Commercial opportunity validated by well-known corporate
shareholders
Pengpai
12Intelligent
processors
KALRAY:
a disruptive
technology
13KALRAY, PIONEER OF MANYCORE PROCESSORS
Few actors
have harnessed this technology
MANYCORE
Unlimited number of cores
on a single chip
SINGLE CORE MULTICORE
1 core Dozens of cores
on a single chip on a single chip
TO CONTINUE AND IMPROVE PROCESSORS’ PERFORMANCE IN THE FUTURE,
THE INDUSTRY MUST TURN TOWARD THE MANYCORE APPROACH
14WHAT MAKES THE KALRAY ARCHITECTURE UNIQUE
#1 Computing power
#2 Data processing in real time
Completion of dozens
#3 of critical tasks in parallel
#4 Low power consumption
#5 Programmable / Open system
#6 Security & Safety
15COOLIDGE : ONGOING R&D FOR A
COMMERCIAL LAUNCH IN 2019
COMMERCIAL LAUNCH
2018 2019 2020 2021
BOSTAN COOLIDGE -1 COOLIDGE -2 Dx
PROCESS 28 nm 16 nm 16 nm nm12 nm or
PERFORMANCE 1 TOPS 24 TOPS 48 TOPS / 96 TOPS 100 TOPS / 200 TOPS
Boards and storage chip
Boards SC (40G) controllers (100G) Qualification Car
USE DC
Prototypes Accelerator Market DC - NFV
intelligent car
CONSUMPTION (WATTS) 8W – 25W 5W – 15W 5W – 20W 2W – 10W
UNDER DEVELOPMENT UNDER DEFINITION
16Major progress in very promising application market segments
2018 MILESTONES
INTELLIGENT
INTELLIGENT
IPO DATA COOLIDGE
CAR
CENTER
KALRAY first to receive
Strong interest from Ongoing research
NVME-oF certification for a and developments
Successfull IPO, fully integrated system (2)
automotive for commercial
€ 47,7 M raised (1)
industry launch in
for Kalray’s solutions 2019
(Renault, Baidu, NXP,
Fondation Autoware)
(1) Including
the over-allotment option exercised in July 2018 (€4.2 M)
(2) KTC80
product has been certified by the NVM Express organization through the University of New Hampshire InterOperability Laboratory
(UNH-IOL), an independent testing provider of standard conformance solutions and multi-vendor interoperability.
18INTELLIGENT
DATA
INTELLIGENT DATA CENTER : CENTER
A MARKET WITH A TECHNOLOGICAL DISCONTINUITY
Explosion of data A need for speed and intelligence
Explosion of the number of machines to analyze data “on the fly”
A need for speed
A technological breakthrough
SPEED
100X
Target market
HDD KALRAY Intelligent
SSD
~ € 1B acceleration boards
in 2022(1)
CAGR 2017-21
+60% (2)
(1) Made up of: • 500 M€ SMART NIC market (“Serverless DPDK Public Report “, CAVIUM)
• 500 M€ NVMe-OF Smart Adapter market (G2ME NVMe Market Report, 2017)
19 (2) Source: NVMe Market Sizing, G2ME Report, 2017INTELLIGENT
DATA
INTELLIGENT DATA CENTER : CENTER
KEY COMPETITIVE ADVANTAGES
First “NVMe-oF all-in-one” certified solution *
8x more powerful than the latest products
announced by our competitors**
Power consumption below 20W***
* Kalray KTC80 has been certified in April 2018 by the independent certification Inter Operability
Laboratory ((University of New Hampshire). No competitors’ products has been certified so far
(www.iol.unh.edu/registry/nvmeof)
** Kalray KTC80 : 288 cores @ 550MHz = 158GHz / Mellanox Bluefield : 16 cores @ 1.2GHz = 19.2GHz /
Broadcom Stingray : 8 cores @ 2GHz = 16 GHz
*** Kalray measurement of KTC80
KALRAY: THE SOLUTION THAT BRINGS INTELLIGENCE “ON THE FLY”
TO THE WORLD OF DATA CENTERS
20MAJOR COMMERCIAL PROGRESS INTELLIGENT
DATA
CENTER
EXEMPLES OF “BOARD” PROSPECTS
EXAMPLES OF “CHIP” PROSPECTS
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020
NVMe-oF Softwares developments
Certification Qualif
“BOARD CUSTOMERS”
Volume sales
Customer
“CHIP CUSTOMERS” Evaluations Selection qualification Volume sales
21INTELLIGENT
INTELLIGENT CAR: CAR
TOMORROW’S CAR RETHOUGHT
Perf. increase
x100
A need to consolidate A need for performance up to
the electronic functions of the car x1,000
Target market
50 to 100 KALRAY
processors
per car
~€1.5B NEEDS ESTIMATED BY MANUFACTURERS TODAY:
BETWEEN 150 AND 300 TOPS
today in 2025(1)
CAGR 2019-2025
+75% (1)
(1) Source: JP Morgan, https://www.marketwatch.com/story/want-to-invest-in-self-driving-cars-check-out-the-chips-2016-08-26
22THE INTELLIGENT CAR: INTELLIGENT
CAR
PARTNERING WITH INDUSTRY LEADERS
EXAMPLES OF EXAMPLES EXAMPLES OF
CAR OEMs OF TIER-1 COMPANIES ACCESSORY MAKERS
H2 2018 2019 2020 2021 2022
Integration process of car manufacturers
Prototypes Selection Qualification Volume Sales
23INTELLIGENT
STRONG INTEREST FROM THE INDUSTRY CAR
FOR KALRAY’S TECHNOLOGY
DEMONSTRATIONS OF NEW STRATEGIC PARTNERSHIP TO KALRAY JOINS
ARTIFICIAL INTELLIGENCE JOINTLY DEVELOP THE AI AUTOWARE FOUNDATION
SOLUTIONS AND PLATFORM REQUIRED FOR AS FOUNDING PREMIUM
ACCELERATION OF MEMBER
AUTONOMOUS DRIVING
PERCEPTION CAPABILITIES
24H1 2018 results
reflect the step-up
in development
programs
25P&L AS OF JUNE 30, 2018
Consolidated (in K€) June 30, 2017 June 30, 2018
Sale of cards and development platforms to clients
Net sales 475 322 in product assessment or qualification phase.
R&D capitalization 1,987 2,502
30/06/17 30/06/18
Subsidies 875 853 BOSTAN : 1,159 k€ 725 k€
Total revenue 3,337 3,677 COOLIDGE : 828 k€ 1,777 k€
Cost of sales (159) (81) As of June 30, 2018 : Differed subsidies revenue
€ 3,072 K to be recognized in the next 24 months
Operating expenses (4,674) (5,652)
Including salaries & contributions (2,870) (3,152) In 2018 : +282 k€ of « personnel costs » due to
recruitment
Including other expenses (1,804) (2,500)
Amortization (2,467) (2,107) In 2018 : + €555 K R&D subcontractors (design &
development) and + € 97 K of licences for design
Operating result (3,963) (4,163) tools.
Taxes (including research Tax Credit) 915 1,385
Net operating result1 (3,048) (2,778)
Financial result (63) (2,275) Of which non-conversion premium in 2018 :
€2,070 K
Exceptional result (529) (26)
Net result (3,640) (5,079)
1 Net operating result = Operating result + Research tax credit
26CASH FLOW STATEMENT AS OF JUNE 30, 2018
Consolidated – (In K€) Dec. 31, 2017 June 30, 2018
Operating CF before Capex & WC variation (2,339) (1,464)
Including € 1,388 K prefinancing of
Change in working capital (97) (1,469) CIR (research tax credit) in 2017,
not in 2018
Capex (6,833) (4,355)
Free cash-flow (9,269) (7,288)
Net cash from investors 10,828 36,946 Before exercise of over-allotment
option (€ 4.2 M)
Debt reimbursement 584 (378)
Exchange differences 8 2
Cash flow from financing activites 11,420 36,570
Annual cash in (cash out) 2,151 29,282
Cash beginning of period 803 2,954
Cash end of period 2,954 32,236
27BALANCE SHEET AS OF JUNE 30, 2018
Consolidated (in K€) 2017/12/31 2018/06/30 2017/12/31 2018/06/30 Before exercise of
over-allotment
NON CURRENT ASSETS 12,076 14,335 EQUITY (335) 35,322 option (€ 4.2 M) in
18 July 2018
Intangible assets1 9,649 11,974 Provisions 18
Tangible assets 1,973 1,911 R&D refundable advances 6,354 6,067
Financial assets 454 450 Shareholders accounts 1,596 0
457
CURRENT ASSETS 5,316 36,148 Bank loans 548
Inventories 239 249 Accounts payable 4,237 3,961
Accounts receivable 133 176 Taxes & contrib. payable 1,388 1,729
Other receivables (CIR, CICE, subsidies) 1,990 3,487 TOTAL LIABILITIES 14,141 12,232
Cash 2,954 32,236
Accrued expenses 138 145 Deferred revenue (subs.) 3,723 3,073
TOTAL ASSETS 17,530 50,628 TOTAL LIABILITIES & EQUITY 17,530 50,628
1 Of which Coolidge project for €7,580 K
28KALRAY ON STOCK EXCHANGE
MARKET DATA SHAREHOLDING AS OF DECEMBER 28, 2018
Market : Euronext Growth (Paris)
Number of shares: 4,526,890
Name : KALRAY Potential dilution : 285,304
ISIN : FR0010722819
Ticker: ALKAL
28,3%
Stock price: €11.60 (as of Dec.28, 2018) 37,2%
Public Financial
Market cap : € 50.3 M (as of Dec.28, 2018) investors1
12,2%
Private
NEXT INVESTORS DATES 22,2%
investors4
Corporate
investors2
January 22, 2019 : Activity in the second half of 2018
April 11, 2019 : Annual Results 2018
1 ACE Management, CEA Investissement, Inocap, Helea Financière, Eurekap!, Compagnie du
May 16, 2019 : Annual General Shareholders Meeting Planay, Myropola, Paminove and L’Ermigaud
2 Pengpai, Safran, MBDA
July 17, 2019 : Activity in the first half of 2019 3 Private investors including founders, employees and members of the Supervisory Board
4 Pengpai, Safran, MBDA, Alliance Ventures
29Outlook
STRONG AMBITIONS AND A STEPPED APPROACH
IN BOTH TARGETED MARKET SEGMENTS
Intelligent
data center
COOLIDGE-2
Intelligent
car ramp-up
> €100M
Volume of revenue
storage cards
COOLIDGE-1
Car prototype
Customer qualification Coolidge 1
Storage card
100,000 boards
BOSTAN
certification
100,000 chips
Commercial
launch 90%
Balanced
operating 10%
Volume
Result 1
commercial
launch
2018 2019 2020 2021 2022
1 Balanced operating result = operating income + CIR (French research tax credit
31APPENDICES
#1 COMPUTING POWER
Computing power AN ARCHITECTURE BUILT
FOR VERY HIGH PERFORMANCE
Data processing in real time Artificial intelligence performance
Completion of dozens
of critical tasks in parallel X3(2)
Performance
Low power consumption
24
Programmable / Open system TOPS(1) X2,000(3)
(1) Power of Coolidge 80
(2) Coolidge 80 vs. figure release for latest GPU XAVIER
Security & Safety available mid-2018 per chip size
(3) Vs. Market PC
33#2 REAL TIME
Computing power A "NETWORK-ON-CHIP" TECHNOLOGY
BASED ON FAST AND DETERMINISTIC
DATA SHARING
Data processing in real time
Completion of dozens
of critical tasks in parallel Fluid
data traffic
Low power consumption
Programmable / Open system
Security & Safety
34#3 PARALLEL
Computing power AN ARCHITECTURE ENSURING
COMPLETE ISOLATION
BETWEEN CORES
Data processing in real time
Completion of dozens
of critical tasks in parallel Up to80
independent critical
functions on a
Low power consumption single processor
Programmable / Open system
Security & Safety
35#4 CONSUMPTION
Computing power UNRIVALLED COMPUTING POWER
VS. CONSUMED ENERGY
AT THIS LEVEL OF PERFORMANCE
Data processing in real time
Completion of dozens
of critical tasks in parallel
Low power consumption 12x
better energy
consumption
Programmable / Open system
(1) Source: “An Instruction Level Energy Characterization of ARM Processors”,
ARM Cortex, FORTH-ICS/TR-450, March 2015 (ARM Cortex A15 & ARM Cortex A7)
Security & Safety (2) Source: Measured on Matrix Multiply EPI Test + Source Bill Dally,
“To ExaScale and Beyond” – Nvidia
36#5 PROGRAMMABLE
Computing power SUPPORT OF STANDARD LANGUAGES
AND OPEN-SYSTEM
INDUSTRY SPECIFICATIONS
Data processing in real time
Scalability & flexibility
Completion of dozens
of critical tasks in parallel
Low power consumption
Programmable / Open system
Security & Safety
Unlike proprietary languages such as CUDA TM by NvidiaTM
37#6 SECURITY & SAFETY
Computing power AN ARCHITECTURE BUILT,
FROM THE START, FOR SECURITY
AND SAFETY WITH AEROSPACE
Data processing in real time AND DEFENSE SPECIALISTS
Completion of dozens
of critical tasks in parallel
Low power consumption
Programmable / Open system
Security & Safety
38A TECHNOLOGY PROTECTED
BY 23 PATENT FAMILIES
21 proprietary families + 2 families with an exclusive CEA license*
MANYCORE MANYCORE MANYCORE
ARCHITECTURE CORES INTERCONNECT
The way in which
The way in which cores
the processor architecture,
The way in which the cores are connected with each other
as executed on a large
of manycore processors and interfaces, providing
number of cores,
are built and improved safety, determinism
is built and improved
and low latency
*Exclusive global patent granted by the CEA until December 31, 2026, bearing in mind that if the list of licensed components remains compliant, and short of substantial modifications to the
business plan, the parties are committed to maintaining the application of the financial conditions as they exist on the date of expiry. When the cumulative amount of royalties paid by the
company reaches €1.5M, KALRAY will have an option to purchase all, or part of the specific patents granted, exercisable at any time. The Parties shall meet as early as possible to agree on a
cost price that cannot be superior to the amount of royalties that would have been paid out to the CEA had no purchase been carried out in the years following the exercise of the purchase
option until the expiry of the current license, for the relevant patents, based on a realistic business plan, and having deducted the maintaining costs in effect which the CEA should have
covered for the period in question.
39INTELLIGENT
DATA
INTELLIGENT DATA CENTER : CENTER
A FAST GROWING MARKET
Intelligent acceleration cards
STORAGE SMARTCARDS “SMARTNIC” CARDS
(NVMe-oF Adapters) Target market (Networking)
700 KALRAY 700
600
500
~ € 1B 600
500
400 in 2022(1) 400
300 CAGR 2017-21 300
200 200
100 +60% (2)
100
0 0
2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021
Worldwide sales in k units Worldwide sales in $M
(1) Made up of: • 500 M€ SMART NIC market (“Serverless DPDK Public Report “, CAVIUM)
• 500 M€ NVMe-OF Smart Adapter market (G2ME NVMe Market Report, 2017)
40 (2) Source: NVMe Market Sizing, G2ME Report, 2017INTELLIGENT
INTELLIGENT CAR: CAR
KALRAY’S COMPETITIVE EDGE
Computing power / ● KALRAY
Consumption ● GPU
5 ● SoCs
4 ● Neurochips
3
2 Real time /
Programmability
1
Predictability
0
Parallel mutitasking Optimized cost
KALRAY: A PLATFORM CAPABLE OF INTEGRATING A MULTITUDE OF CRITICAL FUNCTIONS
AND OF PROVIDING THE PERFORMANCE REQUIRED BY THE INDUSTRY IN A SINGLE CHIP
41SCALABLE REVENUE SOURCES
$
Customer Unit price* Potential annual volumes
2022
LICENSES OF • Larges series of
TECHNO. x €10 x10 millions
autonomous vehicles
CHIPS
2020
• Server manufacturers
CHIPS • Preseries of x €100 x100
autonomous vehicles thousands
2019
• Server integrators €1,000 x thousands
BOARDS
DEVELOPMENT • All €10,000 x dozens
PLATFORMS
*Reference prices based on the type of solution sold
42AN ORGANIZATION AROUND
COMPLEMENTARY EXPERTISE
EXECUTIVE COMMITTEE
Eric BAISSUS • CEO
20 years of experience in telecommunications (Alcatel-Lucent) and
electronics (Texas Instruments). Founder and CEO of Open-Plug (2002) 70 STAFF MEMBERS
Loïc HAMON • Vice President of Corp. Development and
Datacenter BU 9% 50%
20 years of experience in mobile technology, security Support & Services R&D
and semiconductors
Anne GABROT • CFO
20 years of experience as group CFO in the telecommunications
sector and in technology start-ups 11%
Support functions
Benoît DE DINECHIN • CTO
20 years of experience in IT systems and processor architecture
(ST Micro Fellow, Cray Research)
Randy SKELLEY • VP Intelligent Storage BU
30 years of experience in data storage, networking and security
(Qlogic (Cavium), Quantum, Chelsio, Clearpath & ATTO)
30%
Stéphane CORDOVA • VP Intelligent Car BU Commercial, Marketing
20 years of experience in semiconductors (ST Microelectronics and client applications
and ST Ericsson)
43KALRAY S.A. GRENOBLE, FRANCE
180 avenue de l’Europe
38330 Montbonnot Saint Martin , France
Tel: +33 (0)4 76 18 09 18
email: info@kalray.eu
KALRAY INC. LOS ALTOS, CA, USA KALRAY JAPAN - KK
4962 El Camino Real represented by MACNICA Inc. Strategic Innovation Group
Los Altos, CA - USA Macnica Building, No.1, 1-6-3 Shin-Yokohama
Tel: +1 (650) 469 3729 Kouhoku-ku, Yokohama 222-8561, Japan
email: info@kalrayinc.com Tel: +81-45-470-9870
MPPA, ACCESSCORE and the KALRAY logo are trademarks or registered trademarks of Kalray in various countries. All trademarks, service marks, and trade names are the marks
of the respective owner(s), and any unauthorized use thereof is strictly prohibited. All terms and prices are indicative and subject to any modification without notice.You can also read
