Activity in the Second Half of 2019 January 22, 2020

Activity in the second half of 2019 January 22, 2020

Eric Baissus • Executive Board Chairman Anne Gabrot • CFO 20 years’ experience as senior executive 20 years’ experience as CFO for major for major telecom (Alcatel-Lucent) and electronics telecom groups and tech startups. (Texas Instruments) groups, startup director. Founder and CEO of Open-Plug (2002): high-tech firm sold to Alcatel-Lucent in 2010.

MANYCORE PROCESSORS ENABLING ADDRESSING TWO CORE, HIGH-GROWTH MARKETS COMPANY HIGHLIGHTS NEW INTELLIGENT SYSTEMS COMPANY HIGHLIGHTS

DATA CENTERS 4 LOCATIONS: GRENOBLE, SOPHIA-ANTIPOLIS (FRANCE), • Opportunity: data center acceleration LOS ALTOS (US) AND TOKYO (JAPAN) • Complete solution (board and software) for appliance makers and data centers > €70M OF R&D INVESTMENT • Under selection by large OEMs OVER 10 YEARS. PROTECTED • Commercial launch in volume targeted in H2 2020 BY 23 PATENT FAMILIES

81 EMPLOYEES (END 2019) OF WHICH 16 PHDS AND 59 ENGINEERS AUTONOMOUS DRIVING Patented MPPA® architecture €85M EQUITY RAISED TO DATE EURONEXT GROWTH PARIS allowing unlimited number of cores LISTED • Opportunity: car’s sensor fusion / ADAS & AI Latest generation: x times 80 cores systems €100M SALES TARGET IN 2022 • Processors suited to Level 2+ to Level 5 cars Technology is uniquely relevant for C.90% DATA CENTERS new intelligent systems • Technology already tested in concept cars • Under selection by large OEMs and Tier 1s • Strategic shareholder (the Alliance) and strategic partnership with NXP (#1 in auto semis) 3 ©2020 Kalray SA All rights reserved INTELLIGENT SYSTEMS: A DISRUPTION REQUIRING A NEW GENERATION OF PROCESSORS

INTELLIGENT SYSTEMS ANALYSE AN MULTIPLE EMERGING END-MARKETS EXPONENTIAL FLOW OF DATA IN REAL TIME

Data centers

Current Autonomous strategic focus driving INTELLIGENT Aerospace Opportunistic COMPUTERS: SMARTPHONES: INTELLIGENT SYSTEMS SYSTEMS & Defense upside in the APPLICATION CONNECTIVITY ANALYSIS & OPPORTUNITIES short to mid term PROCESSING & MOBILITY DECISION-MAKING Medical

Potential new focus markets Robotics going forward with multi-billion PROCESSORS Other A.I. SAM increment PROCESSORS PROCESSORS DESIGNED FOR DESIGNED FOR DESIGNED FOR INTELLIGENT applications LARGE APPLICATIONS CONNECTIVITY PROCESSING

Centralized AI processing: Controlled by • Strong demand for bandwidth 99% Cloud giants incl. Cloud • High energy consumption of today Google, NVIDIA and Intel • High latency $5,5B market (1) • Training and specific Inference

Much more AI processing close to Data fragmented • Bandwidth savings market 1% today Edge • Low energy consumption Need for flexible • Latency reduction ____ solution able to Computing • Inference and co-training A $5,5B market accelerate • Security & Privacy in 2025 (1) application, protocol and artificial Smart Device AI: intelligence • Bandwidth savings Smart • Low energy consumption • Latency reduction Devices • Basic Inference • Security & Privacy

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

INTELLIGENT INTELLIGENT FINANCE ON COOLIDGETM DATA CENTER CAR TRACK

+ 63% sales growth (€ 1.3m) in 2019 Net cash : € 15.7m enabling the roadmap to be implemented

Coolidge™ is here : Coolidge on the ramp Clear Interest Demonstration Negociation on going with From Automotive industry at CES 2020 (including Storage servers makers and For Kalray’s solution demo with NXP) strategic DC partners Confirmed Traction

1011001 0010101 1001101 Performance 1011001 ARCHITECTURE ADAPTED TO HARNESS ALL THE BENEFITS OF MPPA® TECHNOLOGY, Programming CONCENTRATING THE EXPERTISE x25 ease ACCUMULATED OVER THE PAST 10 YEARS:

>100 man-years of development over 2018/2019 High-speed support 80% of the R&D team as required by the Price industry 66% Software / 33% Hardware (CAN, PCI Gen4, Designed Ethernet 100Gb) ÷2 50% dev. / 50% validation and testing for mass production

Blue Box Coolidge runs YoloV3 AI algorithms for real time mutiple object detection in a autonomous Perception & Modeling car use case

Secure path planning More than 30 dedicated meetings with major players in the automotive and embedded world

Finalization of design Beginning of Manufacturing Internal Customer Evaluation & Volume Phase Bring-up (2) Coolidge integration on their own product Production Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Dév.

Shipment to early adopter customers Coolidge General FIRST SAMPLES AND CARD: Availability • K200 : Development / Prototyping and Production Tape-out (1) Card • Software Environment 1st Coolidge demo at CES (7-10 jan.2020)

(1) The tape-out is an important milestone for a semiconductor company, as it indicates the completion of the design phase and the beginning of the manufacturing process. 10 (2) The bring-up phase covers the validation of key blocks and the initial port of the development environment of the MPPA® ©2020 Kalray SA All rights reserved DATA CENTER: HIGH VOLUME PRODUCTION IN 2020

EMERGENCE OF AI AND EXPLOSION OF DATA NEW ARCHITECTURES

BIGDATA ANALYTICS

MACHINE LEARNING

COMPUTE Application servers

DATABASE Apps Accelerator servers STORAGE NETWORK

FINANCIAL LIFE SCIENCES Storage servers (HDD -> x100 faster SSD)

KTC80 – NVMe/TCP: a complete KTC200: solution, low energy consumption, 100G support 40G, supporting the new NVMe- TCP protocol AVAILABLE 2020

NVMe-TCP TEST & POC WITH WISTRON Specification

2018 H1 2019 H2 2019 2020

Development / integration Deployment Volume

Integrators OEMs / Data centers

OCTOBER 2019 Wistron is an Original Design Manufacturer (ODM) that manufactures and assembles electronic components. Wistron was a spin-off company created in 2000 by Acer.

Listed in Taiwan, it is one of the leading suppliers of electronics for data centers.

Wistron has already announced the successful integration of Kalray boards in its next storage server (JBOF), which will support NVMe-TCP.

➔ 10 advanced negotiations underway with leading OEMs and integrators to integrate CoolidgeTM in their future products

NOV. 2019 Kalray’s KONIC card support multiple profile to enable 2CRSi to rapidly compose modular solutions e.g. AI engines, application acceleration or protocol stacks.

Enabled by MPPA manycore intelligent unique architecture

Markets such as video surveillance, defect detection, finance algorithm optimization, Artificial Intelligence and many others +

Perf. increase x100 A need for performance A need to consolidate up to the electronic functions in the car x1,000 50 to 100 processors per car today

ESTIMATED REQUIREMENT FROM MANUFACTURERS TODAY: BETWEEN 150 AND 300 TOPS

KALRAY MPPA®

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

Provisional development and market launch timeline

H2 2018 2019 2020 2021 2022/23

Manufacturer integration process

Prototyping Selection Qualification Start of mass production

➢ > 10 evaluations or negotiations underway with major automotive manufacturers and integrators

JANUARY 2019 CENTRAL COMPUTING SOLUTION FOR AUTONOMOUS VEHICLES OF THE FUTURE

Perception & Modeling Blue Box

Perception & Secure path planning Modeling #1 in automotive semiconductors 1 Secure path (11% market share ) planning #2 in automotive processors (28% ➢ For Level 3 vehicles market share2) ➢ Roadmap up to Level 5

OCTOBER 2019

Signing of a distribution and support partnership with Intron Technology in China.

China: No. 1 automotive market worldwide with 28 million vehicles manufactured in 2018.

Listed on the Hong Kong stock exchange, a leading distributor of automotive electronics to Chinese manufacturers and integrators.

This agreement with Intron Technology is a prime opportunity that will boost Kalray’s commercial presence on the world’s No. 1 market.

FY 2019 REVENUE: +63% €15.7M AVAILABLE CASH AT DECEMBER 31, 2019 This level enables to pursue the technological roadmap and commercial deployment plans

• H1 2019 Revenue: 455 K€ • This level of cash includes capex related to the development • H2 2019 Revenue: 810 K€ of Coolidge over the period (including $4M for mask fabrication). • FY 2019 Revenue: 1,265 K€ (+63%) • 15 new recruitments, of which 9 completed in H1 and 6 in H2 2019 (R&D and commercial engineers) with starting dates in 2020.

Intelligent data center Intelligent car / Embedded systems Target market Target market KALRAY KALRAY ~€1bn ~€1.5bn In 2025** by 2022*

2020 FOCUS 2020 FOCUS

Mass sales of CoolidgeTM boards Developing strategic partnerships on the market (thousands of units) STRATEGY STRATEGY

• Focus on CoolidgeTM • Alliance with key market players to solidify reputation • Vertical approach (prepackaged software solutions • Working on a limited number of high-potential including NVMe-TCP) projects • Nourishing ongoing partnerships/agreements • Technology licensing • Ramping up international presence (USA/China)

* Comprising: • €500m SMARTNIC market (“Serverless DPDK Public Report” – CAVIUM) • €500m NVMe-OF Smart Adapter market (G2ME NVMe Market Report -2017) 23 ** Source: JP Morgan, https://www.marketwatch.com/story/want-to-invest-in-self-driving-cars-check-out-the-chips-2016-08-26 ©2020 Kalray SA All rights reserved OUTLOOK

2020REVENUES CASH Kalray constantly evaluates opportunities to support Coolidge: beginning Cash position enabling its long-term development. of the sales ramp-up the company to pursue These opportunities can in H2 2020 the strategy after 2020 involve discussions with industrial or financial partners. 2022 Target maintained for €100m revenues by 2022 taking into account the multiple negotiations and commercial evaluations underway

STOCK EXCHANGE SHAREHOLDING - AS OF DECEMBER 31, 2019

Market: Euronext Growth Number of shares: 4,527,940 Potential dilution: 466,469 Name: KALRAY

ISIN code: FR0010722819

Ticker symbol: ALKAL Financial Float 1 Share price: €19.90 (at 01/21/2020) investors 40,5% 37,2% Market capitalization: €90.1m (at 01/21/2020)

Corporate NEXT MEETINGS funds 2 22,2% April 20, 2020 2019 Year-End Results July 9, 2020 Activity in the first half of 2020 1 with more than 5% of shared capital September 21, 2020 2020 Half-Year Results 2 Safran, MBDA, Alliance Ventures