H1 2020 Results - actusnews.com€¦ · Ongoing certification of our “Smart Adapter NVMe-oF”...

©2020 Kalray SA. Confidential

www.kalrayinc.com

Kalray MPPA®The Processor at the Heart of New Intelligent Systems

H1 2020 Results

September 22, 2020


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. Kalray in a Nutshell

2. Key facts

3. H1-2020 financial results

4. Financial objectives

5. What’s next ?


KALRAY IN A NUTSHELL

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

Financial investors: CEA Investissement, Bpifrance, ACE, INOCAP Gestion, Pengpai

Leader in Manycore Technology

30Patent families

≈€85mR&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


KEY FACTS

COOLIDGETM First sales of Coolidge™Several dozens of sales of Coolidge™ development workstations and dev cards in Q2-2020.

SOLID CASH POSITION

Crisis management- Minimized impact of Covid19 on product development;- Revenue H1-20 +7% vs. H1 19;- Revised objectives of April-20 confirmed;- Data Center is strong and is short term

priority in term of revenue.

COVID-19

On the launchpadOngoing certification of our “Smart Adapter NVMe-oF” targeting new storage servers.

INTELLIGENTDATA CENTER

+€13M Cash-In - €8M from NXP investment;- €5M from “PGE” loans.

INTELLIGENT CAR

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

LABELLING

Partnership in AutomotiveNXP equity investment to strengthen partnership with Kalray and co-develop, jointly promote and deploy safe autonomous driving solutions on the market.

INTELLIGENT CAR


Strict cash management & financial objectives confirmed

The Processor at the Heart

of Intelligent Systems

MPPA®

MPPA®


MANAGEMENT OF THE COVID-19 CRISIS

• Strict cost management• €8M from NXP investment• €5M of State Guaranteed loan (PGE): 50% in

June / 50% early July

• No partial unemployment• Continuous investment in human resources:

11 recruitments in H1, mainly for engineering and support positions

HR CASH POSITION

Kalray rapidly adapted to ensure the operational continuity of the company:

• Most of the employees are back to Kalray offices now – with support of home working when relevant• Re-focus on digital events for business development. This will be a top priority in the coming months

MANAGEMENT OF THE COVID-19 CRISIS IMPACT


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€)


FINANCIAL OBJECTIVES CONFIRMEDSolid Cash Situation

Flat in 2020Volume ramp-up in 2021

~ 19M€ as of June 30, 2020≈20% increase in 2020 (vs. 2019)

MONTHLY EBITDA BREAKEVEN MID 2021

REVENUE OPEX CASH

€100M REVENUE BETWEEN MID 2022 TO MID 2023


Coolidge™: A technological breakthrough dedicated to Edge Computing

The Processor at the Heart

of Intelligent Systems

MPPA®

MPPA®


EDGE COMPUTING OPPORTUNITYData are Generated at the Edge

ONLY 25% of ”usable” data

will reach a data center

75% are Ephemeral and need to be analyzed

locally in real time

Source : Cisco

9x Data created In the last 2 years

versus Entire History of the humanity!

IoT6Bu IoT devices

connections by 2026

Data are ExplodingAI, 5G, IoT

Autonomous Vehicle4 terabytes of data/day

1 Autonomous vehicle

Smart Factory5 petabytes of video data/day

1 Smart Factory

Smart City200 petabytes of data/day

1 million-people

smart city

Facebook100m of video hours

seen every days

Twitter500m of Tweets

every day

6 000 every second

Youtube5b of videos

every day

Telecom5Bu Mobile Phone

Users by 2020

2020201920172016

0

10

20

30

40

50

60

70

80

90

2018 2021

22

85

67

52

40

31

2117

1412

97

Zettabytes per Year


Data centers

Autonomous driving

Aerospace & Defense

Industrial 4.0 & Robotics

5G / Telecom

INTELLIGENT

SYSTEMS

&

EDGE COMPUTING

OPPORTUNITIES

Other Edge Computing Applications

INTELLIGENT SYSTEMS / EDGE COMPUTING Intelligent Systems Analyses a Huge Flow of Data in Real-Time

A Disruption Requiring a New Generation of Processors & IP

Multiple emerging end-markets

1990+ 2020+

COMPUTERSAPPLICATION PROCESSING

SMARTPHONESCONNECTIVITY

& MOBILITY

INTELLIGENT SYSTEMSANALYSIS &

DECISION-MAKING

1970+


EdgeComputing

Cloud

Centralized AI processing

• Big data• Massive Storage• Training and Inference

AI processing close to Data

• Real time• Inference and co-training• Security & Privacy

Today1% of a $5,5B market (1)

Booming of AI, deployment of new intelligent systems


Controlled by Cloud giants incl. Google, NVIDIA and Intel

5G

(1) McKinsey – Jan. 2019 – AI-related semiconductor market

INTELLIGENT SYSTEMS & EDGE COMPUTING MARKETS:The Next Wave of AI


INTELLIGENT SYSTEMS & EDGE COMPUTING MARKETS:The Next Wave of AI

(1) McKinsey – Jan. 2019 – AI-related semiconductor market

EdgeComputing

Cloud

Centralized AI processing

• Big data• Massive Storage• Training and Inference

AI processing close to Data

• Real time• Inference and co-training• Security & Privacy


Controlled by Cloud giants incl. Google, NVIDIA and Intel

Today: 1% of a $5,5B market (1)

But in 2025 a $5,5B market!(1)

Need for flexible solution able to accelerate application, protocol and artificial intelligence

5G


A CLEAR STRATEGY TO BE PURSUED IN 2020/2021 On Two Priority Markets & Related Opportunities

Target market

KALRAY

≈€1.5bnIn 2025**

Target marketKALRAY

≈€1bnby 2022*

STRATEGY

INTELLIGENT DATA CENTER (STORAGE & NETWORKING) INTELLIGENT CAR

* Comprising: • €500m SMARTNIC market (“Serverless DPDK Public Report” – CAVIUM)• €500m NVMe-OF Smart Adapter market (G2ME NVMe Market Report - 2017)

** Source: JP Morgan, https://www.marketwatch.com/story/want-to-invest-in-self-driving-cars-check-out-the-chips-2016-08-26

STRATEGY

• Focus on CoolidgeTM

• Vertical approach (prepackaged software solutions leveraging NVMe-oF industry breakthrough)

• Nourishing ongoing partnerships/agreements• Volume ramp up starting end 2020

• Alliance with NXP• Working on a limited number of high-potential projects

OPPORTUNITIES ASSOCIATED WITH EDGE COMPUTING

Aerospace & Defense / Industrial 4.0 / 5G



Target market

KALRAY

≈€1.5bnIn 2025**

Target marketKALRAY

≈€1bnby 2022*

STRATEGY




STRATEGY







INTELLIGENT DATA CENTER


COOLIDGE™ “NVMe-oF” SMART ADAPTER On The Route to Certification


NVMe-oF certification in progress …

… with


NVMe-oF IS A BREAKTHOUGH In the Multi-Billion $ Storage Appliance Market


“NVMe-oF JBOF is just starting to experience an uptake in on-premises enterprise DC segments for its ultra-high performance. It is ramping aggressively for use by hyper converged infrastructure and in data intensive applications.”

Dennis HahnSenior Analyst, Cloud & Data Center at OMDIA*

* Data Center Storage Equipment Market Tracker Q1 2020 Report


NVMe-oFTCP & RoCE

NVMe-oF ENABLES THE COMPOSABLE INFRASTRUCTUREKalray Makes Storage Disaggregation Smart

Storage nodesFBOF

FBOD

AcceleratorNodes

Compute nodes

HYBRIDJBOF/D

• NVMe-oF TCP & RoCE• Erasure Coding• Compression• Deduplication• Encryption• Resiliency• Analytics / Compute• Orchestration APIs

DistributedData Services

• Switchless network• Open platform to Kalray

partners and customers

In-ShelfData Services

Dramatically improve compute and storage utilization, performanceand agility



COOLIDGE™: THE ULTIMATE I/O PROCESSORWhy Coolidge is a Revolution vs Competition ?

“SmartNic” Usual Approach

• A few power hungry RISC CPU cores

• CPU flexibility limited to control plane

• Data plane is “hardwired” –No new services / no possible evolution!

Kalray’s MPPA®3 Coolidge™

80 highly efficient VLIW

independent CPU cores, gathered

into 5 clusters, running at

1.2Ghz, connected to high speed

fabrics & high-speed interfaces.

CONS

Power efficiency25W Typ

Functional Isolation & Safety Secure Islands, Encrypt/Decrypt, Secure Boot

Top PerformanceAny workload200KDMIPs, 25TOPS

High Speed I/O2x100Gbs,PCIGen4,DDR4

Fully programmableControl Plane / Mgt Plane – Linux – 16 coresData Plane - 64 cores

</>

PROS

ASIC

CPUcore

CPUcore

CPUcore

CPUcore

CPUcore

CPUcore

CPUcore

CPUcore

Control Plane

Data Plane



KALRAY-WISTRON LYMMA JBOF REFERENCE PLATFORM White Label NVMe-oF (RoCE/TCP) JBOF

Hyper Optimized JBOF (no x86)

• JBOF Chassis:− Stand-alone− 2U – 1200W Redundant− 24 U.2 NVMe SSDs − 6xPCIe Gen3 x16

• Kalray Smart Controller Cards− 2 to 6 Cards

• BMC chip – AST2500 (ASpeed)

• 1Gbps management interface

Redundant Power

PCIe Card Cages 12System Cooling FANs

NVMe SSDs




Target market

KALRAY

≈€1.5bnIn 2025**

Target marketKALRAY

≈€1bnby 2022*

STRATEGY




STRATEGY







INTELLIGENT CAR


NXP / KALRAY STRATEGIC ALLIANCEBuilding the Next Generation Blue Box

Blue Box

CENTRAL COMPUTING SOLUTION FOR AUTONOMOUS VEHICLES

Secure path planning

Acceleration Perception & Modeling

Perception & Modeling

Secure path planning

#1 in automotive semiconductors (11% market share1) #2 in automotive processors (28% market share2)

1 Gartner 2017 market share2 NXP 2017 market share

• From Level 2 to 4 & 5

INTELLIGENT CAR



Target market

KALRAY

≈€1.5bnIn 2025**

Target marketKALRAY

≈€1bnby 2022*

STRATEGY




STRATEGY







EDGE COMPUTING


LEADING TO ADDITIONAL OPPORTUNITIES Example : Defect Detection

• CASE

− Industrial (can be across the factory)− Defect detection on production line

• NEED

− Extensive need of real-time execution− High performance vision algorithms− Mix of AI/CNN and computer vision

• WHY KALRAY ?

− Same as cars : complex heterogeneous computing running on the same chip

EDGE COMPUTING



Target market

KALRAY

≈€1.5bnIn 2025**

Target marketKALRAY

≈€1bnby 2022*

STRATEGY




STRATEGY








MPPA®

ARM

COOLIDGE™ A MAJOR EVOLUTIONFirst Time Public Demonstrate at CES 2020

COOLIDGE™ IS THE ONLY EUROPEAN SOVEREIGN MICROPROCESSOR OFFER DEDICATED TO INTELLIGENT SYSTEMS


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.Sophia-Antipolis1047 allée Pierre ZillerBusiness Pôle – Bâtiment B, Entrée A06560 Sophia-Antipolis, FrancePhone: + 33(0) 4 76 18 09 18

mailto:[email protected]

mailto:[email protected]


KALRAY STOCK MARKET DATA

STOCK EXCHANGE SHAREHOLDING - AS OF JUNE 30, 2020

• Market: Euronext Growth

• Name: KALRAY

• ISIN code: FR0010722819

• Ticker symbol: ALKAL

• Share price: €20.00 (at 18/09/2020)

• Market capitalization: €101m (at 16/09/2020)

Number of shares: 5 058 710

NEXT MEETING

25 January 2021, FY 2020 Activity report

1

2

Financial

investors

33.12%

Corporate

investors

33.35%

Free Float

33.54%

1

2


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.

H1 2020 Results - actusnews.com€¦ · Ongoing certification of our “Smart Adapter NVMe-oF”...

Documents

Transcript of H1 2020 Results - actusnews.com€¦ · Ongoing certification of our “Smart Adapter NVMe-oF”...