Investor Presentation - Actusnews Wire...Oct 01, 2019 · Investor Presentation Oddo BHF Forum...
Transcript of Investor Presentation - Actusnews Wire...Oct 01, 2019 · Investor Presentation Oddo BHF Forum...
Investor PresentationOddo BHF Forum – January 10, 2019
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THE SPEAKERS
Anne GABROT • CFO
20 years of experience as group CFO in the telecommunications sector andin 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.
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KALRAY IN A NUTSHELL
Designs processors at the heart of new intelligent systems
~70Employees of which ~60 engineers & PhDs
Financial and industrial shareholders
3officesGrenoble (France), Silicon Valley(Los Altos, USA), Tokyo (Japan)
23patent families* Pengpai
*Including 2 families with an exclusive global patent granted by the CEA until December 31, 2026
KALRAY:
The processor at the heart of new intelligent systems
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WE ARE ENTERINGA 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)
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INTELLIGENT SYSTEMS:A TECHNOLOGICAL DISCONTINUITY
COMPUTERS:APPLICATION PROCESSING
SMARTPHONES:CONNECTIVITY & MOBILITY
INTELLIGENT SYSTEMS: ANALYSIS &DECISION-MAKING
1970 1990 2020
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A NEED FOR A NEW GENERATION OF PROCESSORSAT THE HEART OF INTELLIGENT SYSTEMS
PROCESSORSDESIGNED FOR LARGE APPLICATIONS
PROCESSORSDESIGNED FOR LOW CONSUMPTION
PROCESSORS DESIGNED FOR INTELLIGENTPROCESSING
1970 1990 2020
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KALRAY, PIONEER OF INTELLIGENT PROCESSORS
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USE CASE: THE INTELLIGENT CAR
1 GB OF DATA PROCESSED PER SECOND
RENAULT
Credit : Yannick BROSSARD
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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.
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A COMPANY FOCUSED ON TWO MARKETS WITH VERY STRONG SHORT TERM POTENTIAL
DISRUPTIVE DOMAINS(opportunities for a new entrant)
A HIGH LEVEL OF TECHNOLOGICAL EXPECTATIONS(barrier to entry)
SIMILAR TECHNOLOGY(synergies)
A LIMITED NUMBER OFLARGE CUSTOMERS(market access)
Intelligent car
Intelligentdata center
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A COMPANY ENGAGED IN A LARGE-SCALECOMMERCIAL DEPLOYMENT PHASE
Industrial processes in place in a fabless model
Certified hardware and software offering
Pengpai
Commercial opportunity validated by well-known corporate shareholders
Ambition€100Mof revenue
in 2022
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Intelligent processors
KALRAY:
a disruptive technology
MANYCORE
Unlimited number of coreson a single chip
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KALRAY, PIONEER OF MANYCORE PROCESSORS
TO CONTINUE AND IMPROVE PROCESSORS’ PERFORMANCE IN THE FUTURE, THE INDUSTRY MUST TURN TOWARD THE MANYCORE APPROACH
Few actorshave harnessed this technology
SINGLE CORE
1 coreon a single chip
MULTICORE
Dozens of cores on a single chip
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WHAT MAKES THE KALRAY ARCHITECTURE UNIQUE
Computing power
Data processing in real time
Completion of dozens of critical tasks in parallel
Low power consumption
Programmable / Open system
Security & Safety
#1
#2
#3
#4
#5
#6
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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
USEBoards SC (40G)
Prototypes
Boards and storage chip controllers (100G)
Accelerator intelligent car
Qualification CarMarket DC - NFV
DC
CONSUMPTION (WATTS) 8W – 25W 5W – 15W 5W – 20W 2W – 10W
2018 2019 2020 2021
COMMERCIAL LAUNCH
UNDER DEVELOPMENT UNDER DEFINITION
COOLIDGE : ONGOING R&D FOR ACOMMERCIAL LAUNCH IN 2019
Major progress in very promisingapplication market segments
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2018 MILESTONES
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 researchand developments
for commercial launch in
2019
Strong interest fromautomotive
industryfor Kalray’s solutions(Renault, Baidu, NXP, Fondation Autoware)
INTELLIGENTCAR
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INTELLIGENT DATA CENTER :A MARKET WITH A TECHNOLOGICAL DISCONTINUITY
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
100X
HDD SSD
INTELLIGENTDATA CENTER
Intelligentacceleration boards
(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)
(2) Source: NVMe Market Sizing, G2ME Report, 2017
Target marketKALRAY
~ € 1Bin 2022(1)
CAGR 2017-21
+60%(2)
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INTELLIGENT DATA CENTER : KEY COMPETITIVE ADVANTAGES
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
INTELLIGENTDATA CENTER
Volume sales
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MAJOR COMMERCIAL PROGRESS
EXAMPLES OF “CHIP” PROSPECTS
EXEMPLES OF “BOARD” PROSPECTS
Evaluations Selection Volume sales
H1 2019 H1 2020H2 2019H2 2018H1 2018
NVMe-oFCertification
Customerqualification
Softwares developmentsQualif
“BOARD CUSTOMERS”
“CHIP CUSTOMERS”
INTELLIGENTDATA CENTER
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INTELLIGENT CAR:TOMORROW’S CAR RETHOUGHT
A need for performanceA need to consolidate the electronic functions of the car
Perf. increase
x100up to
x1,000
50 to 100 processors
per car today
NEEDS ESTIMATED BY MANUFACTURERS TODAY:BETWEEN 150 AND 300 TOPS
Target marketKALRAY
~€1.5Bin 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
+75%(1)
2020 202220212019H2 2018
EXAMPLES OF TIER-1 COMPANIES
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EXAMPLES OF CAR OEMs
Prototypes
EXAMPLES OF ACCESSORY MAKERS
Selection Qualification Volume Sales
Integration process of car manufacturers
INTELLIGENTCARTHE INTELLIGENT CAR:
PARTNERING WITH INDUSTRY LEADERS
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STRONG INTEREST FROM THE INDUSTRYFOR KALRAY’S TECHNOLOGY
KALRAY JOINSAUTOWARE FOUNDATIONAS FOUNDING PREMIUM
MEMBER
INTELLIGENTCAR
STRATEGIC PARTNERSHIP TO
JOINTLY DEVELOP THE AI
PLATFORM REQUIRED FOR
AUTONOMOUS DRIVING
DEMONSTRATIONS OF NEW
ARTIFICIAL INTELLIGENCE
SOLUTIONS AND
ACCELERATION OF
PERCEPTION CAPABILITIES
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H1 2018 results reflect the step-up in development programs
P&L AS OF JUNE 30, 2018
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
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1 Net operating result = Operating result + Research tax credit
30/06/17 30/06/18BOSTAN : 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)
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CASH FLOW STATEMENT AS OF JUNE 30, 2018
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Consolidated – (In K€) Dec. 31, 2017 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 option (€ 4.2 M)
Including € 1,388 K prefinancing of CIR (research tax credit) in 2017, not in 2018
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BALANCE SHEET AS OF JUNE 30, 2018
1 Of which Coolidge project for €7,580 K
Before exercise of over-allotment option (€ 4.2 M) in 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 0
CURRENT ASSETS 5,316 36,148 Bank loans 548457
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
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KALRAY ON STOCK EXCHANGE
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’Ermigaud2 Pengpai, Safran, MBDA3 Private investors including founders, employees and members of the Supervisory Board4 Pengpai, Safran, MBDA, Alliance Ventures
Outlook
CO
OLI
DG
E-1
Volume storage cardsCar prototypeCoolidge 1
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STRONG AMBITIONS AND A STEPPED APPROACH IN BOTH TARGETED MARKET SEGMENTS
2018 2019 2020 2021 2022
Customer qualificationStorage cardcertification
BO
STA
N
Volume commercial
launch
Balanced operating Result 1
CO
OLI
DG
E-2
Commercial launch
Intelligent data centerIntelligent car ramp-up
> €100Mof revenue
1 Balanced operating result = operating income + CIR (French research tax credit
90%
10%
100,000 boards
100,000 chips
APPENDICES
33
#1 COMPUTING POWER
Computing power
Data processing in real time
Completion of dozensof critical tasks in parallel
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
24TOPS(1)
X3(2)
X2,000(3)
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#2 REAL TIME
Fluiddata traffic
A "NETWORK-ON-CHIP" TECHNOLOGYBASED ON FAST AND DETERMINISTIC
DATA SHARING
Computing power
Data processing in real time
Completion of dozensof critical tasks in parallel
Low power consumption
Programmable / Open system
Security & Safety
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#3 PARALLEL
Computing power
Data processing in real time
Completion of dozensof critical tasks in parallel
Low power consumption
Programmable / Open system
Security & Safety
Up to80independent critical
functions on a single processor
AN ARCHITECTURE ENSURINGCOMPLETE ISOLATION
BETWEEN CORES
36
#4 CONSUMPTION
UNRIVALLED COMPUTING POWERVS. CONSUMED ENERGY
AT THIS LEVEL OF PERFORMANCE
Computing power
Data processing in real time
Completion of dozensof critical tasks in parallel
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
12xbetter energyconsumption
37
#5 PROGRAMMABLE
Computing power
Data processing in real time
Completion of dozensof critical tasks in parallel
Low power consumption
Programmable / Open system
Security & SafetyUnlike proprietary languages such as CUDA TM by NvidiaTM
SUPPORT OF STANDARD LANGUAGESAND OPEN-SYSTEM
INDUSTRY SPECIFICATIONS
Scalability & flexibility
38
#6 SECURITY & SAFETY
Computing power
Data processing in real time
Completion of dozensof critical tasks in parallel
Low power consumption
Programmable / Open system
Security & Safety
AN ARCHITECTURE BUILT,FROM THE START, FOR SECURITYAND SAFETY WITH AEROSPACE
AND DEFENSE SPECIALISTS
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A TECHNOLOGY PROTECTEDBY 23 PATENT FAMILIES
The way in which the processor architecture,
as executed on a large number of cores,
is built and improved
MANYCOREARCHITECTURE
The way in which the cores of manycore processors are built and improved
MANYCORECORES
The way in which cores are connected with each other
and interfaces, providing safety, determinism
and low latency
MANYCOREINTERCONNECT
*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.
21 proprietary families + 2 families with an exclusive CEA license*
0
100
200
300
400
500
600
700
2016 2017 2018 2019 2020 2021
40
Intelligent acceleration cards
INTELLIGENTDATA CENTER
STORAGE SMARTCARDS (NVMe-oF Adapters)
“SMARTNIC” CARDS (Networking)
Worldwide sales in $M
0
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)• 500 M€ NVMe-OF Smart Adapter market (G2ME NVMe Market Report, 2017)
(2) Source: NVMe Market Sizing, G2ME Report, 2017
Target marketKALRAY
~ € 1Bin 2022(1)
CAGR 2017-21
+60%(2)
INTELLIGENT DATA CENTER :A FAST GROWING MARKET
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INTELLIGENT CAR: KALRAY’S COMPETITIVE EDGE
KALRAY: A PLATFORM CAPABLE OF INTEGRATING A MULTITUDE OF CRITICAL FUNCTIONSAND OF PROVIDING THE PERFORMANCE REQUIRED BY THE INDUSTRY IN A SINGLE CHIP
0
1
2
3
4
5
Computing power /Consumption
Real time /
Predictability
Optimized costParallel mutitasking
Programmability
● KALRAY● GPU● SoCs
● Neurochips
INTELLIGENT CAR
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SCALABLE REVENUE SOURCES
CHIPS
LICENSES OF TECHNO. CHIPS
• Server manufacturers
• Preseries of autonomous vehicles
• Larges series of autonomous vehicles
€1,000
x €100
x €10
€10,000 x dozens
x thousands
x100 thousands
x10 millions
• All
• Server integrators
$Potential annual volumesUnit price*Customer
BOARDS
DEVELOPMENT PLATFORMS
2020
2022
2019
*Reference prices based on the type of solution sold
43
AN ORGANIZATION AROUND COMPLEMENTARY EXPERTISE
9%Support & Services
50%R&D
11%Support functions
30%Commercial, Marketing and client applications
Eric BAISSUS • CEO20 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 BU20 years of experience in mobile technology, security and semiconductors
Anne GABROT • CFO20 years of experience as group CFO in the telecommunications sector and in technology start-ups
Benoît DE DINECHIN • CTO20 years of experience in IT systems and processor architecture (ST Micro Fellow, Cray Research)
Randy SKELLEY • VP Intelligent Storage BU30 years of experience in data storage, networking and security (Qlogic (Cavium), Quantum, Chelsio, Clearpath & ATTO)
Stéphane CORDOVA • VP Intelligent Car BU20 years of experience in semiconductors (ST Microelectronics and ST Ericsson)
EXECUTIVE COMMITTEE
70 STAFF MEMBERS
KALRAY S.A. GRENOBLE, FRANCE
180 avenue de l’Europe38330 Montbonnot Saint Martin , FranceTel: +33 (0)4 76 18 09 18 email: [email protected]
KALRAY INC. LOS ALTOS, CA, USA
4962 El Camino Real Los Altos, CA - USATel: +1 (650) 469 3729 email: [email protected]
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 marksof 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.
KALRAY JAPAN - KKrepresented by MACNICA Inc. Strategic Innovation GroupMacnica Building, No.1, 1-6-3 Shin-YokohamaKouhoku-ku, Yokohama 222-8561, JapanTel: +81-45-470-9870