2020 Results - Actusnews Wire
2020 ResultsKalray MPPA The Processor at the Heart of New Intelligent SystemsApril 20th, 2021www.kalrayinc.comPage 1Kalray SA. Confidential
THE SPEAKERSEric BaissusExecutive Board ChairmanAnne GabrotCFO20 years’ experience as senior executivefor major telecom (Alcatel-Lucent) and electronics(Texas Instruments) groups, startup director.20 years’ experience as CFO for majortelecom groups and tech startups.Founder and CEO of Open-Plug (2002):high-tech firm sold to Alcatel-Lucentin 2010.Page 2Kalray SA. Confidential
Agenda1. Kalray in a Nutshell2. 2020 Financials3. Business Outlook4. Q&APage 3Kalray SA. Confidential
KALRAY IN A NUTSHELLKalray offers a new type ofprocessor targeting thebooming market of intelligentsystems & edge computingLeader in ManycoreTechnology 100mR&D investment3 generationrdA GlobalPresence France (Grenoble, Sophia-Antipolis)USA (Los Altos, CA)Japan (Yokohama)Canada (Partner)China (Partner)South Korea (Partner)Industrial investorsof MPPA processor30Patent familiesFinancial investors: CEA Investissement, Bpifrance, ACE, INOCAP Gestion, PengpaiPage 4 2020 Kalray SA. Confidential Public Company (ALKAL) Support from European Govts Working with 500 fortunecompanies
2020 KEY FACTSBUSINESSFINANCIALFinalized the developments of Coolidge -based2020 in line with expectationsolutionsSecured new funding in order to maintain a high levelCustomer solutions under developmentof technological investmentsFirst customer products announcedMaintained a particularly healthy financial situationENVIRONMENTManaged the COVID-19 situation with focus on minimized impact on product developmentBooming semiconductor market due to growing structural needsPage 5 2020 Kalray SA. Confidential
Agenda1. Kalray in a Nutshell2. 2020 Financials3. Business Outlook4. Q&APage 6Kalray SA. Confidential
Annual results inline withexpectationsMPPA MPPA The Processor at the Heartof Intelligent SystemsPage 7Kalray SA. Confidential
REVENUE 2020 & CASH MANAGEMENTIN LINE WITH EXPECTATIONS 2020 sales revenues ( 1.0M) similar as 2019,as volume production not yet started OPEX growth lower than forecasted ( 10%) &EBITDA comparable to previous year (-5%)CASH POSITION MANAGEMENT OF THE COVID-19 CRISIS Page 8Efficient organization – home office and rotationsFocus on digital communication & events for businessdevelopmentKalray SA. ConfidentialGood management of free-cash flowStrengthened financial structure : 8M strategic investment from NXP 5M of State Guaranteed loan (PGE) 5.2M from private placement (ABB)Cash position at 20.2M (vs 15.7M end 2019)HR No partial unemploymentContinuous investment in human resources: 10 people in 2020, mainly for engineering andsupport positions, despite full remote organization
INCOME STATEMENT - 2020Consolidated and audited data – ( 000)20192020Net sales1,2651,033Capitalized production (R&D)6,2177,579Subsidies1,9422,127Other revenue14217TOTAL REVENUE9,56610,756Cost of sales(257)(307)Operating expenses(14,871)(16,311)of which Salaries and social contributions(7,932)(9,257)of which other operating tion and amortization expenses(5,867)(8,818)Operating profit/(loss)(11,429)(14,680)Research tax credit (CIR)2,4152,993Adjusted operating profit/(loss)*(9,014)(11,687)3(110)Financial income/(loss)Exceptional income/(loss)Net profit/(loss)* Adjusted operating result operating result research tax creditPage 9Kalray SA. Confidential(74)(22)(9,085)(11,818)Sale of boards and development platforms to customers in the product evaluation anddevelopment phasesLicenses & services : 690K ( 980K in 2019) Products: 342K ( 285K in 2019)Increase in capitalized production due to R&D devlopments on CoolidgeTM 17% increase in headcount expensesAverage 2020 headcount increased of 14% (from 76in 2019 to 86 in 2020). 90 employees at end 2020.Flat “other expenses”Control of onsite subcontractors' expensesReduction of travel expenses due to Covid-19 crisisUp 2.9M. Full year of amortization for CoolidgeTMdevelopments ( 6.6M) and masks ( 1.2M)Stable EBITDA
CASH FLOW STATEMENT - 2020Consolidated and audited data – ( 000)Operating cash flow before change in working capitalChange in working capitalOperating cash Capex(5,335)(2,920)R&D capitalization(6,217)(7,579)1,4311,065Investment subsidiesInvestment Cash-flow(10,121)(9,434)Free cash flow(14,187)(15,054)9613,551Bank Debt (net)3184,756R&D conditionnal advances and prepaid subsidies (net)7161,260Net Cash from investorsCash flows from financing activities1,130Change in cash and cash equivalents(13,057)4,513Opening cash balance28,78215,725Closing cash balance15,72520,238Page 10Kalray SA. ConfidentialBack to normal for CIR cash in in 2020 (2 R&D Tax credits in same year in 2019)19,567No tape out in 2020Good management of the cash consumption over the 2020 financial yearNXP investment ( 8.0M) ABB private placement ( 5.3M)PGE (loans guaranteed by French State) of 5.0M in 2020Prepaid subsidies ( 0,9M) R&D advances ( 0,4M net of reimbursements) 20.2M NET CASH to pursue the roadmap andCoolidgeTM go to market
BALANCE SHEET 20201 Including CoolidgeTM for 18,6 MASSETS (K )as of 31/12/19As of 31/12/20Intangible assets16,93519,1151Tangible assets4,6734,2862EQUITYFinancial assets6096203Provisions22,21724 020R&D refundable advancesNON CURRENT ASSETSLIABILITIES & EQUITY (K )as of 31/12/19As of ries240134Bank loansAccounts Receivable764526Accounts Payable3,1282,7761,7792,165Taxes & contributions payable1,5491,487Cash15,72520,238354124CURRENT ASSETS18,50823,06311,79916,336414420Deferred revenue (Subsidies)2,6762,73441,14047,503TOTAL LIABILITIES & EQUITY41,14047,503Other receivable (CIR, Subsidies)Accrued expensesTOTAL ASSETSConsolidated and audited data (K )Page 11Kalray SA. ConfidentialOther debtsDEBTS & LIABILITIESTM2 Including Coolidge mask set for 2.5M3 CIR prefinancing guarantees & cash onliquidity contractPGE (loans guaranteed by French State)of 5.0M in 2020Amortizable over 4 years starting in 2022
FINANCIAL OBJECTIVES FOR 20212021, on the way to production ramp-upREVENUECASH TARGET SIGNIFICANTGROWTHSEVERAL MILLIONOF IN 2021FINANCIAL NEEDS COVERED UNTIL EBITDA BREAKEVEN New equity line (up to 12.0M) with Kepler Cheuvreux 3.0M at the end of March 2021MAINTAIN THE FINANCIAL DISCIPLINE& 20% INCREASE IN OPEX Full effects of recruitments in 2020 (and scheduled for 2021)& ramp-up of new programs (including NXP)TARGET : 100M IN FY 2023Page 12Kalray SA. Confidential
Agenda1. Kalray in a Nutshell2. 2020 financials3. Business outlook4. Q&APage 13Kalray SA. Confidential
2021 – THE “KALRAY INSIDE”YEARPage 14Kalray SA. Confidential
AutomotiveMPPA The Processor at the Heartof Intelligent SystemsPage 15Kalray SA. Confidential
NXP ANNOUNCED THE BLUEBOX 3.0with “KALRAY INSIDE” at CES 2021https://www.youtube.com/watch?v pGXHt6x6ubUPage 16Kalray SA. Confidential
BLUEBOX 3.0Automotive High Performance Compute PlatformTO ADDRESS VEHICLE ARCHITECTURE TRANSFORMATION High performance compute Advanced Driver-Assistance Systems (ADAS)& Autonomous Driving (AD)SafetyFlexible and easy prototypingIncreased performance H1-2021Deployed by NXPworldwidePage 17Kalray SA. Confidential
KALRAY STRATEGY IN AUTOMOTIVE INDUSTRY WITH NXPHow to Scale with our NXP PartnerWEBPORTALNXP SUPPORTKALRAY AT THE HEARTOF THE AUTOMOTIVE LEADER NXP’SBLUEBOX 3.0Co-development InsuredBy Kalray & NXPPage 18Kalray SA. ConfidentialNXP WORLDWIDE SALES& FAEs FORCESSOFTWARE PARTNERSOEMs & TIER1
Data CenterMPPA The Processor at the Heartof Intelligent SystemsPage 19Kalray SA. Confidential
KALRAY MULTI-PURPOSE ACCELERATION CARDA Single Card for Intensive Workload in Data CentersNVMe-oF storage solutions JBOF Hybrid JBOF / JBOD Disaggregated storage serversSTORAGESoftware defined, composable& hyper-converged storage solutionsAI storage containerComputational storageEDGECOMPUTINGHPCAICompute accelerationAI Inference acceleration New DistributedPlatform nodesNext Gen SmartNICSSL / TLS offloadEncryption / Decryption offloadNew data center securitymodelsPage 20Kalray SA. ConfidentialSECURITYNETWORKINGSDN Acceleration(OpenvSwitch, SD-WAN,NAT )
KALRAY MARKET FORECAST (SAM)Smart Storage Market is moving awayfrom expensive OEMspecific SAN storagesolutions to NVMe-oFon-the-shelf solutions Market is StorageExpansion Market Switching to NVMe-oFSource: OMDIASource: OMDIAProgrammable NIC Need to improveperformance of the VNF(Virtualized NetworkingFunctions), securityfunctions via fullyprogrammable NICSource: OMDIATelecom Market (R)Evolution2023Acceleration Card Market SizeData Center / Telecom 3,3B (4,5 mu Cards)Kalray TargetsData Center / Telecom 100m (100 ku Cards) Telecom Infrastructure is facinga major (r)evolution Telco « EdgeComputing », Open RAN « Software-defined »Network et Stockage Need for accelerationSource: ABI ResearchPage 21Kalray SA. Confidential
KALRAY SMART STORAGE ADAPTERPage 22 2020 Kalray SA. Confidential
KALRAY SMART STORAGE OFFERStorage Appliance OfferStorageAppliancesPage 23Kalray SA. Confidential
FURIO1200TMThe First “KALRAY INSIDE” Server Available on the MarketCoolidge-based – no need of x861 to 6 K200 CardsUltra-fast : 12MIOPS / 72 GBsHigh Capacity : 24 U2 SSDsFURIO1200TMCo-developed by Kalray & WistronNVMe-oF compliant – TCP & RoCESupport of in-line data services(data protection, encryption, )Open and UpgradablePage 24 2020 Kalray SA. Confidential
FURIO1200TMBest in Class NVMe-based Flash ArrayDPUNUMBER OF DPUARCHITECTUREMEDIAHOST SUPPORTHOST PORTSEND TO END NVMeIOPS (in millions)LATENCY (us) - ROCELATENCY (us) - TCPBANDWIDTH (GB/s)DATA PROTECTIONMANAGEMENTPROGRAMMABLE / FRAMEWORKIOPS / WATTPage 25 2020 Kalray SA. ConfidentialFURIO1200 FURIO1200Best CurrentBest Current GenerationGenerationKalray MPPA2 to 6Scale up, outN/AN/AFixedSAS SSDNVMe SSDNVMe-oF/RoCENVMe/FCIB, FC, iSCSI8 x 100 Gb/sno2100 usNot Supported44RAIDProprietaryNo2,040 (IOPS/WATT)NVMe SSDNVMe-oF/TCPNVMe-oF/RoCE12 x 100 Gb/syes1220us50us72Erasure Coding / RAIDRest APIYes / SPDK16,000 (IOPS/WATT)KEY BENEFITS Best performance (x6) Best consumption (x8) Future proof (new data services) Open & Scalable Based on generally available data on the web Information is subject to change and is not contractual
NVMe-oF IS A BREAKTHOUGHIn the Multi-Billion Storage Appliance MarketINTELLIGENTDATA CENTER“NVMe-oF JBOF is just starting to experience anuptake in on-premises enterprise DC segments for itsultra-high performance. It is ramping aggressively foruse by hyper converged infrastructure and in dataintensive applications.”Dennis HahnSenior Analyst, Cloud & Data Center at OMDIA** Data Center Storage Equipment Market Tracker Q1 2020 ReportPage 26Kalray SA. Confidential
KALRAY STORAGE SOLUTION MARKET DEPLOYMENT SCHEDULEOpen Software & ToolsGeneral AvailabilityMass ProductionFirst End-CustomerPilotsFURIO12003 to 6 MonthsQ3-2020Q4-2020K200-LP – EVTPage 27Kalray SA. ConfidentialQ1-2021Q2-2021Q3-2021K200-LP – MPQ4-2021
PILOT EXAMPLE 1: COST OPTIMIZED SSD STORAGE DEPLOYMENTCustomer: Cloud Service ProviderOpen Software & ToolsTraditional ApproachCUSTOMER SUCCESS CRITERIA Similar performance versus direct attached SSDUsing Kalray for Storage Disaggregation Same robustness as traditional approach Total 30 to 50% cost savingPage 28Kalray SA. Confidential
PILOT EXAMPLE 2 : SCRATCH BUFFER FOR AI ACCELERATIONCustomer: HPC Data CenterOpen Software & ToolsTraditional ApproachGFSGFSCUSTOMER SUCCESS CRITERIAGFSGFS Increase performance by 2 to 5 for AI trainingAI ProcessingUsing Kalray Fast Storage Server Ease to integrate with standard file systemssuch as BeeGFSGFSGFSGFSGFSAI ProcessingPage 29Kalray SA. Confidential
KALRAY SMART STORAGE ADAPTERSWhat is Next?StorageAppliancesPage 30Kalray SA. ConfidentialSmart StorageCards
KALRAY SMART STORAGE ADAPTERBuild Next Generation High Perf, Secure, Scale Out, NVMe-oF StorageHIGH AVAILABILITYDATA PROTECTIONSECURITYSTORAGE EFFICIENCYDATA MANAGEMENTFULLY PROGRAMMABLEACS Storage FrameworkHIGH-SPEED I/O INTERFACESNVMe-oF TCP & RoCEZERO HOST CODE IMPACTx86 transparent integrationvia NVMe emulationor no x86-oF(2x100GbE)HIGH-PERF SSDs I/F(RC or P2P PCIe Gen4)Page 31Kalray SA. ConfidentialLOW CONSUMPTION30W Typ.
FOCUS ON THE INDUSTRIAL & LOGISTICAL PROCESSES TO SCALEOpen Software & ToolsKALRAY & WISTRON SET-UPMANUFACTURING CAPABILITIESTO MANUFACTURE,TEST & DELIVER1,000 OF BOARDS PER MONTHSTARTING Q3-2021Page 32Kalray SA. Confidential
ON THE ROAD TO BUILD THE FUTURE EUROPEAN CHAMPIONOF INTELLIGENT PROCESSORSTWO PRIORITY MARKETSSTORAGE MARKETAUTOMOTIVE MARKETLeverage strategic partnerships toposition as a key component of nextgen vehiclesVolume ramp-up of Kalray-basedcard and solutionsOTHER TARGETSADJACENT MARKETS – FUTURE REVENUESmart Vision / 5GPage 33Kalray SA. ConfidentialNEXT GEN. (2024/2025) : THE DOLOMITES REVOLUTIONLeverage eco-system & France /European funding to create a uniquesovereign solution for Europe
Agenda1. Kalray in a Nutshell2. 2020 financials3. Business outlook4. Q&APage 34Kalray SA. Confidential
Q&A SESSION6MICROSOFT TEAMS"Hands Up" buttonPage 35Kalray SA. Confidential*PHONEKeys " * " then " 6 "
KALRAY STOCK MARKET DATASTOCK EXCHANGESHAREHOLDING - AS OF MARCH 31, 2021 Market: Euronext Growth Name: KALRAY ISIN code: FR0010722819 Ticker symbol: ALKAL Share price: 39.60 (at 19/04/2021)2Free float49,2%1 Number of shares: 5,516,514 Market capitalization: 218m (at 19/04/2021)NEXT MEETING12th July 2021,1Companyrelated holders50,8%2H1 2021 Activity report1 including Alliance Ventures, MBDA, NXP, Pengpai, and Safran2 Euronext definitionPage 36Kalray SA. Confidential
DISCLAIMERKalray 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.Page 37 2020 Kalray SA. Confidential
Free cash flow (14,187) (15,054) Net Cash from investors 96 13,551 Bank Debt (net) 318 4,756 R&D conditionnal advances and prepaid subsidies (net) 716 1,260 Cash flows from financing activities 1,130 19,567 Change in cash and cash equivalents (13,057) 4,513 Opening cash balance 28,782 15,725 Closing cash balance 15,725 20,238
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7 Connections to be made Installing the interface From the 7803 harness to the aftermarket radio: Connect the Black wire to the ground wire. Connect the Yellow wire to the battery wire. Connect the Red wire to the accessory wire. Connect the Blue wire to the power antenna wire. If the aftermarket radio has an illumination wire, connect the Orange wire to it.
The Moly-Cop Ropes supplied the mining wire rope samples and the information on their mechanical per-formance as listed below: wire rope A wire rope B wire rope C - wire rope D wire rope E. The manufac- turers of these wire ropes have not released chemical compositions, structures of these wire ropes. 3.2. ATR-FTIR Measurements
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WIRING INFORMATION: 2003 Mitsubishi Montero Sport WIRE WIRE COLOR WIRE LOCATION 12V CONSTANT WIRE WHITE Ignition Harness STARTER WIRE BLACK/YELLOW or BLACK/BLUE Ignition Harness IGNITION WIRE BLACK/WHITE Ignition Harness ACCESSORY WIRE BLUE/RED Ignition Harness SECOND ACCESSORY WIRE BLUE Ignition Harness
Hot wire Welding speed comparison in cm/min.: PF position: manual TIG welding with 3.2 mm fi ller wire; tigSpeed cold wire and tigSpeed hot wire with 1.0 mm fi ller wire 20 15 10 5 0 Welding speed [cm/min.] tigSpeed cold wire TIG manual tigSpeed hot wire With TIG cold/hot wire welding, the we
Quad-Cat Wire – Pre-formed, 3 strand rectangular twisted wire PentaCat Wire – Coaxial wire, spooled or pre-formed, 5 strands HexaCat Wire – Six strand round, spooled coaxial wire Multi Braid Arches – Eight-strand braided edgewise wire WildCat Lingual Retainer Wire – Straight lengths,
