Terrestrial Energy Inc. · NASDAQ:IMSR
Terrestrial Energy — SPAC Merger (March 2025)
50 slides from Terrestrial Energy's SPAC merger presentation, Mar 26, 2025
Slide 1: HCM II / Terrestrial Energy Investor Presentation
Delivering carbon - free thermal and electrical energy M A R C H 2 0 2 5 HCM II / Terrestrial Energy Investor Presentation
Slide 2: | Private and | March 2025 | March 2025 This presentation and any accompanying
HCM II / Terrestrial Energy Investor Presentation | Private and Confidential | March 2025 2 HCM II / Terrestrial Energy Investor Presentation | March 2025 This presentation and any accompanying oral presentation (this “Presentation”) has been prepared solely for informational purposes and is being d
Slide 3: Executive Summary
HCM II / Terrestrial Energy Investor Presentation | Private and Confidential | March 2025 Executive Summary HCM II Acquisition Corp (“HCM II”, Nasdaq: HOND) intends to combine with Terrestrial Energy, Inc. (“Terrestrial Energy”) at a $925 million pre money equity value , with the use of proceeds int
Slide 4: HCM II Overview
HCM II / Terrestrial Energy Investor Presentation | Private and Confidential | March 2025 HCM II Overview Our management team has an extensive track record of acquiring attractive assets at disciplined valuations, investing in growth while fostering financial discipline and improving business result
Slide 5: HCM II: Experienced Management Team
HCM II: Experienced Management Team Shawn Matthews Chairman and Chief Executive Officer Steven Bischoff Chief Financial Officer HCM II / Terrestrial Energy Investor Presentation 5 HCM II / Terrestrial Energy Investor Presentation 5 30+ years of management experience in public and private corporation
Slide 6: HCM II: Experienced Management Team (Cont.)
HCM II: Experienced Management Team (Cont.) Mike Connor Director • Founder, Chairman and CEO of ThayerMahan Inc., a global leader in autonomous maritime surveillance technologies • Vice Admiral (Ret.) of United States Navy • Mahan Scholar and distinguished graduate of the U.S. Naval War College • Re
Slide 7: Terrestrial Energy at a Glance
Terrestrial Energy at a Glance From technology selection and plant design, the IMSR offers high - temperature, clean carbon - free heat and electricity supply with sector - competitive nuclear economics and time - to - market. Developer of the small and modular Integral Molten Salt Reactor plant (“I
Slide 8: Terrestrial Energy Leadership
Terrestrial Energy Leadership A distinguished Board of Directors and Board of Advisors with extensive experience across scientific, commercial, and policy realms support Terrestrial Energy - including a former NRC Commissioner Simon Irish CEO, Director • Extensive investment banking and investment m
Slide 9: Partnership Accelerates Energy Security and Generation Progress
Partnership Accelerates Energy Security and Generation Progress • IMSR purpose - built to solve legacy nuclear deployment and fuel challenges • Differentiated technology and business model from both legacy nuclear (including SMR) and other Gen IV tech capable of large - scale fleet deployment in the
Slide 10: Investment
Investment
Slide 11: Investment Highlights
Investment Highlights 1 Compelling tailwinds with advanced nuclear as a key component in addressing immediate power demands derived from AI datacenter growth & decarbonization of the industrial complex 2 Innovative IMSR Gen IV technology delivers high - temperature heat and power for industry, and a
Slide 12: IMSR Plant Innovation Reaches New Markets and Sectors
IMSR Plant Innovation Reaches New Markets and Sectors IMSR has the operational capability to supply all four major demand sectors and federal incentives Focused on markets with clear policy support for nuclear energy: 01 Data center power supply Increasing demand for computing driven by the AI indus
Slide 13: IMSR Designed to Address Weaknesses of Legacy Nuclear Technology
Terrestrial Energy’s IMSR is Designed to Deliver the Benefits of Nuclear Energy by Addressing the Weaknesses and Limitations of Legacy Nuclear Technology Terrestrial Energy IMSR Gen IV Advanced Modular Reactor High capital efficiency due to: • High - temperature thermal energy supply • Low - pressur
Slide 14: IMSR Uses Readily-Available Standard-Assay Low-Enriched Uranium (SALEU) as its Fuel
IMSR Uses Readily - Available and Inexpensive Standard - Assay Low - Enriched Uranium (SALEU) as its Fuel 1. Third Way, How Much Does It Cost to Develop New Nuclear Fuel Capacity? 2. HALEU is 5 - 20% enrichment, but the product relevant for comparison (i.e. Gen IV fuel) is 15 - 20% enrichment, i.e.
Slide 15: Energy Market Fundamentals Create Case for Expansion in Nuclear Energy Supply
Energy Market Fundamentals Backed by Public Valuations Have Created an Overwhelming Case Today for a Massive Expansion in Nuclear Energy Supply 125% - 250% increase in valuations of first two SMR SPACs over the last 6 months Terrestrial Energy technical differentiators create uncorrelated market val
Slide 16: IMSR Serves Two Vast and Linked Markets: Industrial Heat and Electricity
IMSR Serves Two Vast and Linked Markets: Industrial Process Heat ($0.8 T) and Electricity ($0.6 T) in OECD Economies $1.4 T current SAM Total serviceable addressable market (SAM) for IMSR Plants is expected to grow 35% to $1.9 T by 2050 Industrials require clean firm low - cost thermal energy at hig
Slide 17: Legacy Nuclear Technology is Experiencing Economic and Efficiency Challenges
Legacy Nuclear Technology is Experiencing Economic and Efficiency Challenges Existing large scale nuclear power plants built with legacy nuclear technology are fundamentally uneconomic Capital inefficient with huge upfront Capex Low - temperature heat limited to electric production Difficult to fina
Slide 18: IMSR Plant at a Glance
IMSR Plant at a Glance: High - temperature, Low - pressure, and High Inherent Safety in Operations is Designed to Deliver Superior Capital Efficiency Over Legacy Nuclear Technologies 585 ƒ C IMSR heat supply is best - in - class, vs 270 - 299 ƒ C from Gen III+ and 440 - 585 ƒ C from other Gen IV com
Slide 19: IMSR is Built on Years of National Lab Proven MSR Technology
Proven: For Speed - to - market, IMSR is Built on 65 Years of National Lab Proven Demonstrated MSR Technology IMSR is a molten salt reactor that uses: Fluoride chemistry SALEU once - through fuel cycle Thermal spectrum Graphite moderator Integral core architecture 2010 1958 - 1969 • Small Modular Ad
Slide 20: IMSR's Patented Replaceable Core-unit
IMSR’s Innovative, Patented Replaceable “Core - unit” Solves the Key Maintenance Challenge to Commercial Operation (illustrative) IMSR Core - unit cut - away 01 All primary reactor components will be contained in the sealed and replaceable “Core - unit” Key innovation is integration of all primary r
Slide 21: IMSR Plant Delivers Behind the Fence Customized Cogeneration to Industry
IMSR Plant is Designed to Deliver “Behind the Fence” – Customized Cogeneration to Industry Note: Example is for a dual reactor core IMSR Plant. Scaling up is possible. Separation of nuclear from thermal and electrical systems allows: • Standardized reactor design, while giving the end - user the fle
Slide 22: IMSR Offers Advantages Compared to Legacy Nuclear Technology
Compared to Legacy Nuclear Technology, IMSR Offers Transformative Advantages on a Range of Technical and Economic Factors Coolant Molten Salt Water 585 ƒ C ~270 ƒ C Temperature of Thermal Supply Net Thermal Efficiency of Electricity Generation 44% ~30% Pressure Low: 1 bar (atmospheric) High: 55 - 15
Slide 23: IMSR Offers Clean Firm Electricity at Required Cost and Scale
At Fleet Scales, IMSR Plant Offers Clean Firm Electricity Generation at the Cost and Scale Required Unsubsidized high and low levelized cost of electricity (LCOE) across multiple and power generation sources, ($ / MWhe) 1 1. IMSR LCOE is Terrestrial Energy’s management estimate at NCP status. All ot
Slide 24: IMSR's Fission Technology Drives Down the LCOE
$69 $142 – $222 IMSR’s Fission Technology Drives Down the LCOE - Illustrative High temperature leads directly to increased thermal and capital efficiency, and lower LCOE Low pressure systems are more robust and less complex than high - pressure systems Inherent safety uses the natural properties of
Slide 25: Business Model
Business Model Terrestrial Energy’s customers are IMSR Plant owner - operators Terrestrial Energy achieved its first customer revenues in 2020 - 2021 for design services Terrestrial Energy’s business is to: Deliver engineering and construction services for commissioned IMSR Plants Supply critical co
Slide 26: Low-Capex Business Model Taps Four Revenue Streams
Terrestrial Energy’s Low - Capex Business Model Taps Four Revenue Streams Across the IMSR Plant’s 50+ year Lifecycle Note: Unit economics reflect Terrestrial Energy management estimates at NCP status. See appendix for further details. HCM II / Terrestrial Energy Investor Presentation 26 Delivery Mod
Slide 27: IMSR Plants Can Retrofit Existing Coal Plants
IMSR Plants can Uniquely “Retrofit” Existing Coal Plants for Carbon - free and Air Pollution - free Electricity Generation 1. US EIA, Electricity by source and CO2 emissions by source 2. US Department of Energy, Investigating Benefits and Challenges of Converting Retiring Coal Plants into Nuclear Pl
Slide 28: IMSR's Technological and Commercial Progress
IMSR’s Technological and Commercial Progress A B C D E HCM II / Terrestrial Energy Investor Presentation 28 Development program with a track record of milestones achieved Among market leaders in regulatory engagement and grant support First Gen IV reactor design to complete Canada’s CNSC Vendor Desi
Slide 29: A. Milestone Progress
A. Milestone Progress Systematic development program for IMSR with a track record of milestones achieved 2015 x Initiated regulatory program with Canadian Nuclear Safety Commission’s (CNSC) phased Vendor Design Review (VDR) process 2016 x U.S. Nuclear Regulatory Commission (USNRC) regulatory engagem
Slide 30: B. Among Market Leaders in Regulatory Engagement and Grant Support
B. Among Market Leaders in Regulatory Engagement and Grant Support Terrestrial Energy’s regulatory program started early with the commencement of the CNSC’s Vendor Design Review (VDR) process in 2016 – completed in 2023 HCM II / Terrestrial Energy Investor Presentation 30 Accepted an application for
Slide 31: C. Regulatory Review in Process in the U.S. and Complete in Canada
C . Regulatory Review in Process in the U . S . and Complete in Canada Terrestrial Energy successfully completed CNSC VDR in 2023, an industry first for Gen IV technology 1 The VDR concludes that “no fundamental barriers to licensing” IMSR for commercial use were identified National regulators cover
Slide 32: D. Contracts Entered into with Leading Suppliers
D. Contracts Entered into Today with Leading Group of Suppliers for Services and Components Plant & Infrastructure Nuclear fuel R&D Blue - chip service and major component suppliers support deployment readiness Graphite Awards and suppliers engineering and operations reputation inspire nuclear marke
Slide 33: E. Terrestrial Energy is Scaling Up its Project Pipeline
E. Terrestrial Energy is Scaling Up its Project Pipeline Market demand and policy developments are driving deployment in major markets Recent developments illustrate path - to - market, and strategy for fast deployment of an IMSR Plant fleet operating in the 2030s Mining H 2 Ammonia and hydrogen Dat
Slide 34: Transaction Overview
Transaction Overview
Slide 35: Transaction Highlights, Sources & Uses, Pro Forma Valuation
71.2% 17.7% 3.8% 4.4% 2.9% Terrestrial Rollover Equity PIPE Equity from Convertible Debt Public Shareholders Sponsor Shares Shares (M) Ownership % Rollover Equity Equity from Convertible Debt 3.73 2.9% Transaction Highlights Estimated Sources & Uses Uses ($M) Equity to Terrestrial $925 Equity from C
Slide 36: Investment Highlights Summary
from AI datacenter growth and decarbonization Innovative, early mover advantage for large economic upside technology and business model for revenue growth Seasoned, HCM II / Terrestrial Energy Investor Presentation 36
Slide 37: Appendix
Appendix
Slide 38: Industrial Process Heat in OECD Markets is Primary Market
High - temperature, High - quality Industrial Process Heat in OECD Markets is Terrestrial Energy’s Primary Market 1. US EIA, International Energy Outlook, World total primary energy consumption by region (reference case) 2. German Energy Agency (dena), Powerfuels in Industry: Process Heat (20% of al
Slide 39: Global Nuclear Electricity Generation in OECD Markets
Global Nuclear Electricity Generation in OECD Markets Represents a Large Additional Market 1. McKinsey & Company, What will it take for nuclear power to meet the climate challenge? 2. US EIA, calculated share of nuclear electricity installed generating capacity OECD and World 3. Cost of constructing
Slide 40: IMSR Technology and Design Choices Drive Plant Economics
IMSR Technology and Design Choices Drive Plant Economics High thermal stability of molten salt enables safe high - temperature and low - pressure operation with high inherent safety This drives high capital and operating efficiencies, as well as power plant revenue and profitability Molten salt cool
Slide 41: Key Assumptions on Unit Economics
Key Assumptions on Unit Economics Unit economics reflects management’s estimates based on detailed cost engineering work with prospective customers in 2020 - 2021 (without inflation adjustments) as well as management’s collective expertise in industrial and nuclear engineering. Capital costs of Nth
Slide 42: Only Gen IV Reactors Operate at High Temperatures
Only Gen IV Reactors Operate at High Temperatures (>400 ƒ C) and have the Potential to Transform Nuclear Energy Use Generation I Prototype reactors • Based on U.S. Navy nuclear submarine propulsion or weapons production technology • Largely research and/or non - commercial Generation II Large commer
Slide 43: Illustrative IMSR Plant Unit Economics
Illustrative IMSR Plant Unit Economics (USD M) Revenue breakdown by phase $69 (10%) $144 (19%) $486 (62%) $75 (9.7%) $320 (24%) $1005 (76%) $389 (19%) $1,148 (55%) $486 (23%) IMSR fuel supply and services IMSR Core - unit supply and services Construction services & component procurement Pre - constr
Slide 44: IMSR Uses Inherent Safety
IMSR Plant technology and design incorporates inherent safety, with compelling cost and commercial advantages over legacy active and passive safety systems IMSR Uses Inherent Safety, Unlike Legacy Nuclear Technologies Control Fission heat generation is inherently load - following . IMSR fission powe
Slide 45: Advisory Board: Seasoned, Experienced Team
Advisory Board: Seasoned, Experienced Team Policy, Regulation and Environmental Technical, Industrial and Financial Ray O. Johnson, PhD Former CTO of Lockheed Martin Corporation • Served 9 years as SVP of Corporate Engineering, Technology and Operations and CTO of Lockheed Martin Corporation • PhD i
Slide 46: Glossary
Glossary Term Definition HCM II / Terrestrial Energy Investor Presentation 46 Base load The minimum amount of electric power delivered or required over a given time period at a steady rate. Core - unit The term to denote the vessel that contains the primary components of the IMSR, the reactor core,
Slide 47: Risk Factors (1/3)
Risk Factors (1/3) HCM II / Terrestrial Energy Investor Presentation 47 All references to “we,” “us,” “our” or the “Company” refer to the business of Terrestrial Energy Inc. and its affiliates. The risks presented below are certain of the general risks related to the business of the Company, HCM II
Slide 48: Risk Factors (2/3)
Risk Factors (2/3) HCM II / Terrestrial Energy Investor Presentation 48 23. If IMSR Plants do perform as expected, external factors such as grid connectivity issues may affect their output. Unplanned outages or prolonged downtime for maintenance and repair typically increase operation and maintenanc
Slide 49: Risk Factors (3/3)
Risk Factors (3/3) 49. The Company has not trained operators for the IMSR Plants to date. Commercial deployment will require the development and completion of appropriate training. If such training is more difficult, requires greater time, or is met with market resistance, the Company’s operations,
Slide 50: Making transformative nuclear energy a commercial reality
HCM II / Terrestrial Energy Investor Presentation | March 2025 Making transformative nuclear energy a commercial reality Investor brief Join us. www.terrestrialenergy.com