Nuscale Power Corporation · NYSE:SMR
Nuscale Power — Spring Valley Acquisition — SPAC Merger (April 2022)
44 slides from Nuscale Power's SPAC merger presentation, Apr 8, 2022
Slide 1: Investor Presentation April 2022
Investor Presentation A p r i l 2 0 2 2
Slide 2: Forward-looking statements disclaimer
2 This presentation (“Presentation”) and any oral statements made in connection with the Presentation do not constitute an offer to sell or solicitation to buy any securities, nor the solicitation of a proxy, consent, or authorization in connection with the proposed business combination between NuSc
Slide 3: Non-GAAP measures and additional information
3 The Company uses certain financial measures that are not defined by generally accepted accounting principles in the United States (“GAAP”) to evaluate various aspects of its business, including EBITDA, Cash EBITDA and Cash Revenue (as defined herein). Non-GAAP financial measures are not measures o
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) • $236mm PIPE that covers the minimum cash closing condition Capital Structure • $425mm(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 15 Years R&D and Testing Founded in 2007 $1.3bn Cumulative Capital Invested to Date 485+ Employees with Unparalleled Nuclear Experience 37 PhDs 167 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 December 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 Mil
Slide 9: NuScale's Visionary Management Team
9 NuScale’s Visionary Management Team John Hopkins President & 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 & Ch
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-marketand years ahead of the competition Only advanced nuclear technology with NRC Standard Design Approval; $1.3bn invested to-d
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
Market Overview 01
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. Ene rgy Information Administration Capital Cost and Performance Characteristi
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
NuScale Technology 02
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 425 Issued Patents Globally 209 Pending Patents Software Developed In-House and Approved by the NRC Highly Cyber Secure FPGA Based Module Protection Highly Educated Workforce 485+ Employees 167 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: Competitive Landscape: Key Differentiators
22 Competitive Landscape: Key Differentiators Selected Differentiators Small Modular Reactor Competitors Other Light Water Reactors Non-Light Water Reactors(1) Underlying Technology Track Record Light water reactor (LWR) 50+ years history Same as NuScale Relatively limited Fuel Supply Infrastructure
Slide 23: Established Supply Chain Ecosystem
23 Established Supply Chain Ecosystem NuScale Power ModulesTM Fuel Assemblies(1) Control Systems Reactor Building Crane Module Protection System Sensors and Instrumentation (1) Fuel assembly image provided by Framatome Inc. and used by permission.
Slide 24: Products and Services
Products and Services 03
Slide 25: Diversified, Low Capex Model with Significant Competitive Moat
25 NuScale has a Diversified, Low Capex Model with Significant Competitive Moat NuScale VOYGRTM 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
Slide 26: NuScale VOYGR Power Plants
26 NuScale VOYGRTM 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
Slide 27: Critical Services Over the Life Cycle of the Plant
27 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 28: Well Suited for a Range of Energy Transition Applications
28 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 VOYGRTM Plant • A single module can be black-started and can power the
Slide 29: Customer Opportunities
Customer Opportunities 04
Slide 30: Customer View on Economics
30 Solar Wind Storage Other SMR 0 20 40 60 80 100 120 RE + Storage + NuScale SMRs Capacity (GW) Customer View on Economics Total system cost in customer Integrated Resource Plan is the applicable benchmark (1) Source: NREL, U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks: Q1 2021 (
Slide 31: Robust and Diversified Global Customer Pipeline
31 Potential customers include governments, political subdivisions, state-owned enterprises, public and investor- owned utilities, and other commercial and industrial companies, in domestic and international markets Robust and Diversified Global Customer Pipeline Class 2 (8) Committed to Proceed wit
Slide 32: UAMPS among the first commercial deployments of NPMs
32 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 a VOYGRTM-6 power plant at the Idaho National Laboratory (“INL”) for the UAMPS Carbon Free Pow
Slide 33: Romania potential first SMR deployment in Europe
33 In partnership with NuScale, Romania has the potential to be 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 in partne
Slide 34: Agreement with KGHM for first SMR in Poland
34 NuScale announces a historic agreement with KGHM to initiate the deployment of the first SMR in Poland NuScale and KGHM Partnership February 14, 2022 KGHM is proud to lead the initiation of a 100% carbon free energy project, delivering on its commitment to lead efforts to decarbonize. The SMR tec
Slide 35: Financial Profile
Financial Profile 05
Slide 36: Per-Plant Economics Illustration
36 Per-Plant Economics Illustration Average Annual Cash Revenue (Illustrative Range) Years 1-5 (T-9 to T-5) Years 6-10 (T-4 to COD) Years 11-40+ (T+1 to T+40) NuScale Power ModulesTM(1) $200mm – $250mm Services $5mm – $15mm $10mm – $20mm $25mm – $50mm Total Cash Revenue $5mm – $15mm $210mm – $270mm
Slide 37: Cash Revenue collection vs GAAP Revenue recognition
37 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 38: Financial Summary
38 $ in millions Financial Summary “Cash Revenue”(1) Free Cash Flow(3) NPM COD Forecast “Cash EBITDA”(2) (1) “Cash Revenue” reflects GAAP revenue plus (or minus) any increases (or decreases) in deferred revenue during the year. (2) “Cash EBITDA” reflects net income before interest, tax, depreciation
Slide 39: Cash Metrics Reconciliation
39 $ 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 40: Transaction Overview
Transaction Overview 06
Slide 41: Transaction Overview: Pro Forma Ownership and Capitalization
41 $ in millions Transaction Overview Pro Forma Ownership (%) at Closing(3) 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 (inclusive of
Slide 42: Energy Transition Nuclear Operational Benchmarking
42 Energy Transition Nuclear Operational Benchmarking Revenue CAGR (1) Source: FactSet as of March 14, 2022, public filings. (1) NuScale financials represent Cash metrics. Nuclear EBITDA Margin (1) Energy Transition 2021E – 2024E 2021E – 2024E 2025E 2022E 2024E – 2026E 2026E Median: 34% Median: 4% M
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 ******* About NuScale Power NuScale Power is poised to meet the diverse energy needs of customers across the world. It has developed a new modular light water reactor nuclear power plant to supply energy for electrical generation, district heating, desalination, hydrogen production and oth