Investor Presentation Oddo BHF Forum January 10, 2019 THE SPEAKERS - - PowerPoint PPT Presentation
Investor Presentation Oddo BHF Forum January 10, 2019 THE SPEAKERS Anne GABROT CFO Loic HAMON Vice President of Corporate Dev. and Datacenter BU 20 years of experience as group CFO in the telecommunications sector and 20 years of
Oddo BHF Forum – January 10, 2019
2
Anne GABROT • CFO
20 years of experience as group CFO in the telecommunications sector and in technology start-ups.
Loic HAMON • Vice President of Corporate Dev. and Datacenter BU
20 years of experience in mobile technology, security and semiconductors, of which 10 years at Inside Secure et 12 years at Texas Instruments at strategic positions.
3
Employees of which ~60 engineers & PhDs
Grenoble (France), Silicon Valley (Los Altos, USA), Tokyo (Japan)
patent families*
Pengpai
*Including 2 families with an exclusive global patent granted by the CEA until December 31, 2026
5
in the last 2 years than since the beginning of humanity1 It is critical to process this data in REAL TIME throughINTELLIGENT SYSTEMS
1 Deloitte Digital, Becoming an exponential organization (Sept. 2017)
6
COMPUTERS:
APPLICATION PROCESSING
SMARTPHONES:
CONNECTIVITY & MOBILITY
INTELLIGENT SYSTEMS:
ANALYSIS & DECISION-MAKING
1970 1990 2020
7
PROCESSORS DESIGNED FOR LARGE APPLICATIONS PROCESSORS DESIGNED FOR LOW CONSUMPTION PROCESSORS DESIGNED FOR INTELLIGENT PROCESSING
1970 1990 2020
8
9
RENAULT
Credit : Yannick BROSSARD
10
Academic EXCELLENCE
*incl. 2 families as an exclusive CEA license.
11
DISRUPTIVE DOMAINS
(opportunities for a new entrant)
A HIGH LEVEL OF TECHNOLOGICAL EXPECTATIONS
(barrier to entry)
SIMILAR TECHNOLOGY
(synergies)
A LIMITED NUMBER OF LARGE CUSTOMERS
(market access) Intelligent car Intelligent data center
12
Industrial processes in place in a fabless model Certified hardware and software offering
Pengpai
Commercial opportunity validated by well-known corporate shareholders
Ambition €100M
in 2022
13
MANYCORE Unlimited number of cores
14
TO CONTINUE AND IMPROVE PROCESSORS’ PERFORMANCE IN THE FUTURE, THE INDUSTRY MUST TURN TOWARD THE MANYCORE APPROACH
Few actors
have harnessed this technology
SINGLE CORE 1 core
MULTICORE Dozens of cores
15
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety
16
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 USE Boards SC (40G) Prototypes Boards and storage chip controllers (100G) Accelerator intelligent car Qualification Car Market DC - NFV DC CONSUMPTION (WATTS) 8W – 25W 5W – 15W 5W – 20W 2W – 10W
2018 2019 2020 2021
COMMERCIAL LAUNCH
UNDER DEVELOPMENT UNDER DEFINITION
18
INTELLIGENT DATA CENTER
Successfull IPO, € 47,7 M raised (1)
KALRAY first to receive NVME-oF certification for a fully integrated system (2)
(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.
IPO COOLIDGE
Ongoing research and developments for commercial launch in
2019 Strong interest from automotive industry
for Kalray’s solutions (Renault, Baidu, NXP, Fondation Autoware)
INTELLIGENT CAR
19
Explosion of data Explosion of the number of machines A need for speed A technological breakthrough A need for speed and intelligence to analyze data “on the fly”
SPEED
HDD SSD
INTELLIGENT DATA CENTER
Intelligent acceleration boards
(1) Made up of: • 500 M€ SMART NIC market (“Serverless DPDK Public Report “, CAVIUM)
(2) Source: NVMe Market Sizing, G2ME Report, 2017
Target market
KALRAY
in 2022(1)
CAGR 2017-21
20
KALRAY: THE SOLUTION THAT BRINGS INTELLIGENCE “ON THE FLY” TO THE WORLD OF DATA CENTERS
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 INTELLIGENT DATA CENTER
Volume sales 21
EXAMPLES OF “CHIP” PROSPECTS EXEMPLES OF “BOARD” PROSPECTS
Evaluations Selection Volume sales
H1 2019 H1 2020 H2 2019 H2 2018 H1 2018
NVMe-oF Certification Customer qualification
Softwares developments Qualif
“BOARD CUSTOMERS” “CHIP CUSTOMERS”
INTELLIGENT DATA CENTER
22
A need for performance A need to consolidate the electronic functions of the car
x100
up to
50 to 100
processors per car today
NEEDS ESTIMATED BY MANUFACTURERS TODAY: BETWEEN 150 AND 300 TOPS
Target market
KALRAY
in 2025(1)
INTELLIGENT CAR
(1) Source: JP Morgan, https://www.marketwatch.com/story/want-to-invest-in-self-driving-cars-check-out-the-chips-2016-08-26
CAGR 2019-2025
2020 2022 2021 2019 H2 2018
EXAMPLES OF TIER-1 COMPANIES
23
EXAMPLES OF CAR OEMs
Prototypes
EXAMPLES OF ACCESSORY MAKERS
Selection Qualification Volume Sales Integration process of car manufacturers
INTELLIGENT CAR
24
KALRAY JOINS AUTOWARE FOUNDATION AS FOUNDING PREMIUM MEMBER
INTELLIGENT CAR
STRATEGIC PARTNERSHIP TO JOINTLY DEVELOP THE AI PLATFORM REQUIRED FOR AUTONOMOUS DRIVING DEMONSTRATIONS OF NEW ARTIFICIAL INTELLIGENCE SOLUTIONS AND ACCELERATION OF PERCEPTION CAPABILITIES
25
Sale of cards and development platforms to clients in product assessment or qualification phase. As of June 30, 2018 : Differed subsidies revenue € 3,072 K to be recognized in the next 24 months In 2018 : +282 k€ of « personnel costs » due to recruitment Of which non-conversion premium in 2018 : €2,070 K
26
1 Net operating result = Operating result + Research tax credit
30/06/17 30/06/18 BOSTAN : 1,159 k€ 725 k€ COOLIDGE : 828 k€ 1,777 k€ In 2018 : + €555 K R&D subcontractors (design & development) and + € 97 K of licences for design tools.
Consolidated (in K€) June 30, 2017 June 30, 2018 Net sales 475 322 R&D capitalization 1,987 2,502 Subsidies 875 853 Total revenue 3,337 3,677 Cost of sales (159) (81) Operating expenses (4,674) (5,652)
Including salaries & contributions (2,870) (3,152) Including other expenses (1,804) (2,500)
Amortization (2,467) (2,107) Operating result (3,963) (4,163) Taxes (including research Tax Credit) 915 1,385 Net operating result1 (3,048) (2,778) Financial result (63) (2,275) Exceptional result (529) (26) Net result (3,640) (5,079)
27
27
Consolidated – (In K€)
June 30, 2018 Operating CF before Capex & WC variation (2,339) (1,464) Change in working capital (97) (1,469) Capex (6,833) (4,355) Free cash-flow (9,269) (7,288) Net cash from investors 10,828 36,946
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
Before exercise of over-allotment
Including € 1,388 K prefinancing of CIR (research tax credit) in 2017, not in 2018
28
1 Of which Coolidge project for €7,580 K
Before exercise of
July 2018
Consolidated (in K€) 2017/12/31 2018/06/30 2017/12/31 2018/06/30 NON CURRENT ASSETS 12,076 14,335 EQUITY (335) 35,322 Intangible assets1 9,649 11,974 Provisions 18 18 Tangible assets 1,973 1,911 R&D refundable advances 6,354 6,067 Financial assets 454 450 Shareholders accounts 1,596 CURRENT ASSETS 5,316 36,148 Bank loans 548 457 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
29
MARKET DATA SHAREHOLDING AS OF DECEMBER 28, 2018
Market : Euronext Growth (Paris) Name : KALRAY ISIN : FR0010722819 Ticker: ALKAL Stock price: €11.60 (as of Dec.28, 2018) Market cap : € 50.3 M (as of Dec.28, 2018)
Number of shares: 4,526,890 Potential dilution : 285,304
NEXT INVESTORS DATES
January 22, 2019 : Activity in the second half of 2018 April 11, 2019 : Annual Results 2018 May 16, 2019 : Annual General Shareholders Meeting July 17, 2019 : Activity in the first half of 2019 12,2% Private investors4 37,2% Financial investors1 22,2% Corporate investors2 28,3% Public
1 ACE Management, CEA Investissement, Inocap, Helea Financière, Eurekap!, Compagnie du
Planay, Myropola, Paminove and L’Ermigaud
2 Pengpai, Safran, MBDA 3 Private investors including founders, employees and members of the Supervisory Board 4 Pengpai, Safran, MBDA, Alliance Ventures
COOLIDGE-1
Volume storage cards Car prototype Coolidge 1
31
2018 2019 2020 2021 2022
Customer qualification Storage card certification
BOSTAN
Volume commercial launch Balanced
Result 1
COOLIDGE-2
Commercial launch
Intelligent data center Intelligent car ramp-up
> €100M
1 Balanced operating result = operating income + CIR (French research tax credit
90% 10%
100,000 boards 100,000 chips
33
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety
AN ARCHITECTURE BUILT FOR VERY HIGH PERFORMANCE Artificial intelligence performance
(1) Power of Coolidge 80 (2) Coolidge 80 vs. figure release for latest GPU XAVIER available mid-2018 per chip size (3) Vs. Market PC
Performance
X3(2) X2,000(3)
34
Fluid data traffic
A "NETWORK-ON-CHIP" TECHNOLOGY BASED ON FAST AND DETERMINISTIC DATA SHARING
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety
35
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety Up to80 independent critical functions on a single processor
AN ARCHITECTURE ENSURING COMPLETE ISOLATION BETWEEN CORES
36
UNRIVALLED COMPUTING POWER
AT THIS LEVEL OF PERFORMANCE
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety
(1) Source: “An Instruction Level Energy Characterization of ARM Processors”, ARM Cortex, FORTH-ICS/TR-450, March 2015 (ARM Cortex A15 & ARM Cortex A7) (2) Source: Measured on Matrix Multiply EPI Test + Source Bill Dally, “To ExaScale and Beyond” – Nvidia
better energy consumption
37
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety
Unlike proprietary languages such as CUDA TM by NvidiaTM
SUPPORT OF STANDARD LANGUAGES AND OPEN-SYSTEM INDUSTRY SPECIFICATIONS
Scalability & flexibility
38
Computing power Data processing in real time Completion of dozens
Low power consumption Programmable / Open system Security & Safety
AN ARCHITECTURE BUILT, FROM THE START, FOR SECURITY AND SAFETY WITH AEROSPACE AND DEFENSE SPECIALISTS
39
The way in which the processor architecture, as executed on a large number of cores, is built and improved MANYCORE ARCHITECTURE The way in which the cores
are built and improved MANYCORE CORES The way in which cores are connected with each other and interfaces, providing safety, determinism and low latency MANYCORE INTERCONNECT
*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
covered for the period in question.
21 proprietary families + 2 families with an exclusive CEA license*
100 200 300 400 500 600 700 2016 2017 2018 2019 2020 2021 40
Intelligent acceleration cards
INTELLIGENT DATA CENTER
STORAGE SMARTCARDS
(NVMe-oF Adapters)
“SMARTNIC” CARDS
(Networking)
Worldwide sales in $M
100 200 300 400 500 600 700 2016 2017 2018 2019 2020 2021 2022
Worldwide sales in k units
(1) Made up of: • 500 M€ SMART NIC market (“Serverless DPDK Public Report “, CAVIUM)
(2) Source: NVMe Market Sizing, G2ME Report, 2017
Target market
KALRAY
in 2022(1)
CAGR 2017-21
41
KALRAY: A PLATFORM CAPABLE OF INTEGRATING A MULTITUDE OF CRITICAL FUNCTIONS AND OF PROVIDING THE PERFORMANCE REQUIRED BY THE INDUSTRY IN A SINGLE CHIP
1 2 3 4 5
Computing power / Consumption Real time / Predictability Optimized cost Parallel mutitasking Programmability
INTELLIGENT CAR
42
CHIPS LICENSES OF TECHNO. CHIPS
autonomous vehicles
autonomous vehicles €1,000 x €100 x €10 €10,000 x dozens x thousands x100 thousands x10 millions
Potential annual volumes Unit price* Customer
BOARDS DEVELOPMENT PLATFORMS
2020 2022 2019
*Reference prices based on the type of solution sold
43
9%
Support & Services
50%
R& R&D
11%
Support functions
30%
Commercial, Marketing and client applications
Eric BAISSUS • CEO
20 years of experience in telecommunications (Alcatel-Lucent) and electronics (Texas Instruments). Founder and CEO of Open-Plug (2002)
Loïc HAMON • Vice President of Corp. Development and
Datacenter BU
20 years of experience in mobile technology, security and semiconductors
Anne GABROT • CFO
20 years of experience as group CFO in the telecommunications sector and in technology start-ups
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)
Stéphane CORDOVA • VP Intelligent Car BU
20 years of experience in semiconductors (ST Microelectronics and ST Ericsson)
EXECUTIVE COMMITTEE 70 STAFF MEMBERS
KALRAY 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
4962 El Camino Real Los Altos, CA - USA Tel: +1 (650) 469 3729 email: info@kalrayinc.com
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
KALRAY JAPAN - KK
represented by MACNICA Inc. Strategic Innovation Group Macnica Building, No.1, 1-6-3 Shin-Yokohama Kouhoku-ku, Yokohama 222-8561, Japan Tel: +81-45-470-9870