Nuscale Power Corporation · NYSE:SMR
Nuscale Power — Spring Valley Acquisition — SPAC Merger (December 2021)
44 slides from Nuscale Power's SPAC merger presentation, Dec 14, 2021
Slide 1: Investor Presentation December 2021
Investor Presentation December 2021
Slide 2: Important notice and disclaimer
2 This confidential presentation (“Presentation”) is for informational purposes only and is being provided to interested parties solely in their capacity as potential investors for the purpose of evaluating a potential private offering of securities and potential business combination between NuScale
Slide 3: Industry data and non-GAAP financial measures
3 This Presentation includes industry and market data, including forecasts and other forward-looking information, obtained from, among others, reports of governmental agencies, industry publications, studies and surveys, and internal company surveys. Such reports, industry publications, studies, sur
Slide 4: Transaction Overview
4 Transaction Overview Leadership John Hopkins CEO Chris Colbert CFO Chris Sorrells CEO Key Highlights Transaction Size • $232mm cash in trust from Spring Valley Acquisition Corp. (Nasdaq: SV) • $181mm PIPE with significant strategic commitments in place Capital Structure • $373mm(1) in cash to fund
Slide 5: Spring Valley Acquisition Corp. Leadership
5 Spring Valley Acquisition Corp. Leadership Who We Are and What We Offer Chris Sorrells CEO Billy Quinn Chairman Selected Companies: Team with 30+ years of combined investing track record in decarbonization Strong C-level operational and investing expertise in nuclear Proprietary network and sourci
Slide 6: NuScale has developed a transformational small modular reactor
6 NuScale has developed a transformational small modular reactor ("SMR") that delivers scalable, safe and reliable carbon-free nuclear power essential to meeting global decarbonization targets
Slide 7: NuScale by the Numbers
7 NuScale by the Numbers 1st And Only SMR to Receive NRC Standard Design Approval 14 Years R&D and Testing Founded in 2007 $1.3bn Cumulative Capital Invested to Date 430+ Employees with Unparalleled Nuclear Experience 35 PhDs 146 Master in Engineering / Science Degrees 8 Strategic Investors Supporti
Slide 8: Company History and Key Milestones
8 Began NRC Pre-Application Note: Logos represent first investment in NuScale. (1) Represents cumulative capital invested through July 31, 2021. Includes funding received from the DOE cost-sharing program. Excludes any capital raised as part of a de-spac transaction. Company History and Key Mileston
Slide 9: NuScale's Visionary Management Team
9 NuScale’s Visionary Management Team John Hopkins Chief Executive Officer Since 2012 Jose Reyes, Ph.D. Chief Technology Officer & Co-Founder Since 2007 UNITED STATES NUCLEAR REGULATORY COMMISSION Chris Colbert Chief Financial Officer Since 2011 Dale Atkinson Chief Operating Officer & Chief Nuclear
Slide 10: Key Investment Highlights
10 Key Investment Highlights 01 Only viable clean baseload power available to address the massive global need for 16,000+ GW of carbon-free generation by 2040 02 First-to-market and years ahead of the competition Only advanced nuclear technology with NRC Standard Design Approval; $1.3bn invested to-
Slide 11: Contents
11 Contents 01 Market Overview 02 NuScale Technology 03 Products and Services 04 Customer Opportunities 05 Financial Profile 06 Transaction Overview
Slide 12: Market Overview
$eg NUSCALE Market Overview
Slide 13: Massive Addressable Market
13 Massive Addressable Market BloombergNEF Net Zero Pathway “Red Scenario”(1) The Energy Transition Requires More Than 16,000 GW of Zero Carbon Generation Capacity Additions Globally Through 2040 16,407 GW Carbon-Free Capacity Additions Required Through 2040 1,286 GW SMR Additions 0.4% market share
Slide 14: Clean baseload generation: nuclear is the only viable option
14 Much of the 16,000+ GW of new capacity must come from clean baseload generation of which nuclear is the only viable option Nuclear SMR Only Viable Zero-Emission Baseload Technology Traditional Baseload Renewables Baseload Capable Dispatchable and load-following capable Zero-Emission / Clean 100%
Slide 15: NuScale SMRs are Superior to Large-Scale Nuclear
15 Source: U.S. Energy Information Administration Annual Energy Outlook 2021 (February 2021). (1) Nth-of-a-kind (“NOAK”) costs excluding escalation, contingencies and fees. Large scale nuclear estimate per Table 11.1, U.S. Energy Information Administration Capital Cost and Performance Characteristic
Slide 16: Global Stakeholder Support for Nuclear is Strong
16 Global Stakeholder Support for Nuclear is Strong Bipartisan U.S. Support Across Administrations $10bn Programs supporting nuclear in Bipartisan Infrastructure Bill, Build Back Better plan and FY22 Appropriations $0.5bn(1) received to-date in DOE cost-sharing with ~$200mm additional available thro
Slide 17: NuScale Technology
$eg NUSCALE NuScale Technology
Slide 18: NuScale's Core Technology: the NuScale Power Module
18 NuScale’s Core Technology: the NuScale Power Module™ Reactor Core Reactor Pressure Vessel Steam Generators Pressurizer Containment 76 ft 15 ft Groundbreaking technology features a fully factory fabricated SMR referred to as a NuScale Power ModuleTM consisting of an integral nuclear steam supply s
Slide 19: IP Portfolio and Skilled Employee Base
19 IP Portfolio and Skilled Employee Base Key to NuScale’s Advantage Growing Robust IP Portfolio 418 Issued Patents Globally 210 Pending Patents Software Developed In-House and Approved by the NRC Highly Cyber Secure FPGA Based Module Protection Highly Educated Workforce 430+ Employees 146 Master in
Slide 20: Key Enabling Features Dependent on Patented Technology
20 Key Enabling Features Dependent on Patented Technology Passive Safety System Integral Steam Generator Natural Circulation System Evacuated Containment Design 4 3 NuScale Power ModuleTM 2 1 Scalable Reactor Building Design 5 Cyber-secure FPGA Based Module Protection Digital Multi-Module Control Ro
Slide 21: Inherently Safe Design Sets New Industry Standards
21 Inherently Safe Design Sets New Industry Standards – Triple Crown of Nuclear Plant Safety™ Unlimited Coping Period for Reactors Only SMR that Supports U.S. NRC Site Boundary Emergency Planning Zone (“EPZ”) Unparalleled Capability and Performance Comparison of Reactor Coping Period Following an Ex
Slide 22: Established Supply Chain Ecosystem
22 Established Supply Chain Ecosystem NuScale Power ModulesTM Fuel Assemblies Control Systems Reactor Building Crane Module Protection System Sensors and Instrumentation
Slide 23: Products and Services
$eg NUSCALE Products and Services
Slide 24: Diversified, Low Capex Model with Significant Competitive Moat
24 NuScale has a Diversified, Low Capex Model with Significant Competitive Moat NuScale Power Plants Services Sale of NuScale Power ModulesTM Provision of a diversified suite of services including licensing support, testing, training, fuel supply, program management, etc. Revenue Source Sale of Stan
Slide 25: NuScale Power Plants
25 NuScale Power Plants NuScale sells its NuScale Power ModulesTM (77 MWe each) as well as its standard plant designs and licensing basis to utility and industrial customers globally Three Power Plant Size Offerings To Meet Customer Power Needs, Infrastructure/Grid Limitations, and Economics: • 12 N
Slide 26: NuScale Offers Critical Services Over the Life Cycle of the Plant
26 Footer NuScale Offers Critical Services Over the Life Cycle of the Plant Recurring and diversified High penetration rates Revenue opportunity begins ~8 years pre-COD and extends over the 60+ year life of the plant Select NuScale Services T-8 T-7 T-6 T-5 T-4 T-3 T-2 T-1 COD T+1 T+2 T+3 T+4 T+5 Lic
Slide 27: Well Suited for a Range of Applications Critical to the Energy Transition
27 NuScale is Well Suited for a Range of Applications Critical to the Energy Transition Enhancing the Power Grid Energy Transition-Specific Opportunities Grid Resiliency • Adverse weather conditions do not impact operations for a NuScale Plant • A single module can be black-started and can power the
Slide 28: Customer Opportunities
$eg NUSCALE Customer Opportunities
Slide 29: Robust and Diversified Global Customer Pipeline
29 Robust and Diversified Global Customer Pipeline Class 2 (10) Early Commitment to Deploy NuScale Technology Class 3 (15) Early Commitment to Deploy New Nuclear / SMR Technology Class 4 (18) Interest in Deploying New Nuclear Technology Class 5 (70) Lead Current Pipeline (114 Total Customer Opportun
Slide 30: Rapidly Expanding Customer Opportunities
30 Rapidly Expanding Customer Opportunities Select near-term potential customers in pipeline • Leading clean power producer • Ontario, Canada MOU • Canada’s only private sector nuclear power producer • Ontario, Canada MOU • Public electric utility • Washington, USA MOU • State-owned utility • Czech
Slide 31: UAMPS among the first commercial deployments of NPMs
31 Utah Associated Municipal Power Systems (“UAMPS”) will be among the first commercial deployments of NPMs NuScale Customer Poised to Deploy NPMs in 2029 UAMPS Overview First commercial deployment will be at the Idaho National Laboratory (“INL”) for the UAMPS Carbon Free Power Project (“CFPP”) UAMP
Slide 32: NuScale and Nuclearelectrica Partnership in Romania
32 In partnership with NuScale, Romania has the potential to accommodate the first deployment of SMRs in Europe NuScale and Nuclearelectrica Partnership November 2, 2021 The United States and Romania will announce today plans to build a “first-of-a-kind” small modular reactor (SMR) plant in Romania
Slide 33: Financial Profile
Jeg NUSCALE Financial Profile
Slide 34: Per-Plant Economics Illustration
34 Per-Plant Economics Illustration Year Average Annual Cash Revenue (Illustrative Range) Anticipated Blended Gross Margin Range NuScale Power ModulesTM(1) Years 6-10 COD -4 to COD $200mm – $250mm 20-25% Services Years 1-4 COD -9 to COD -6 $5mm – $15mm 10-15% Years 5-10 COD -5 to COD $10mm – $20mm 1
Slide 35: Cash Revenue collection versus GAAP Revenue recognition
35 NuScale expects a material difference between its Cash Revenue collection and GAAP Revenue recognition schedules for NPM sales. Differences in accrual accounting and cash collection are captured on the balance sheet as Deferred Revenue and Work in Progress Attractive Cash Flow Characteristics Cum
Slide 36: Financial Summary
36 $ in millions Financial Summary “Cash Revenue”(1) Free Cash Flow(3) NuScale Power Plants Module COD Forecast “Cash EBITDA”(2) Services (1) “Cash Revenue” reflects GAAP revenue plus increases in deferred revenue less increases in accounts receivable. (2) “Cash EBITDA” reflects EBITDA as calculated
Slide 37: Cash Metrics Reconciliation
37 $ in millions Cash Metrics Reconciliation 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E GAAP Revenue $14 $85 $179 $358 $640 $1,017 $1,855 $4,157 $5,506 (+) Changes in Deferred Revenue, net 2 60 493 699 1,256 2,624 4,624 5,851 7,613 "Cash Revenue" $16 $145 $672 $1,058 $1,896 $3,641 $6,480
Slide 38: Transaction Overview
$eg NUSCALE Transaction Overview
Slide 39: Transaction Overview: Sources, Uses, Pro Forma Ownership
39 $ in millions Transaction Overview Sources Pro Forma Ownership (%) at Closing(3) Uses Pro Forma Capitalization Note: Assumes no redemptions from Spring Valley Acquisition Corp.; assumes new shares issued at a price of $10.00. (1) Comprised of 187.5mm shares owned by existing NuScale shareholders,
Slide 40: Nuclear EV / Revenue Valuation Benchmarking
40 Nuclear EV / Revenue Valuation Benchmarking 2025E (1) Energy Transition Source: FactSet, public filings. (1) NuScale financials represent Cash metrics. 2022E 2025E Nuclear 2026E (1) Energy Transition 2023E 2026E Median: 8.4x Median: 6.0x Median: 4.5x Median: 4.4x 1.8x 8.7x 2.8x 10.2x 8.7x 8.0x 3.
Slide 41: Nuclear EV / EBITDA Valuation Benchmarking
41 Nuclear EV / EBITDA Valuation Benchmarking 2025E Energy Transition Source: FactSet, public filings. (1) NuScale financials represent Cash metrics. 2022E 2025E Nuclear 2026E Energy Transition 2023E 2026E Median: 37.5x Median: 29.9x Median: 23.4x Median: 25.0x 9.8x 95.5x 16.6x 34.7x 48.7x 40.4x 24.
Slide 42: Operational Benchmarking: Revenue CAGR and EBITDA Margin
42 Energy Transition Nuclear Operational Benchmarking Revenue CAGR (1) Source: FactSet, public filings. (1) NuScale financials represent Cash metrics. Nuclear EBITDA Margin (1) Energy Transition 2021E – 2024E 2021E – 2024E 2025E 2022E 2024E – 2026E 2026E Median: 37% Median: 3% Median: 17% Median: 21
Slide 43: Key Investment Highlights Recap
43 Key Investment Highlights Recap 01 Massive addressable market 02 First-to-market and years ahead of competition 03 04 Global strategic investors and supply chain partners 05 Visionary management team 06 Capex-light model with a growing IP portfolio Safer Cost Competitive Smarter Cleaner Rapidly e
Slide 44: Thank You
Thank You
Spring Valley Acquisition — SPAC Merger (December 2021) on 6ix