Terra Innovatum Global N.V.

Greetings and welcome to the Terra Innovatum Global Third Quarter Fiscal Year 2025 Financial Results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Giordano Marici. Please go ahead.

Thank you and good morning, everyone. This is an exciting day for Terra Novatum, our first earning call as NASDAQ listed company following our successful business combination last month. I am pleased to introduce Alessandro Petruzzi, co-founder and chief executive officer, and Guillaume Moyen, our chief financial officer. You should have the earnings released across the wires this morning as well as the slides that will accompany our conversation. If not, you can find these documents in our investor relations website at investors.terremolatum.com. Please turn to slide two to review cautionary statements. As you're likely aware, during the formal presentation, as well as the Q&A session, management may make some forward-looking statements about our current plans, beliefs, and expectations. These states can apply to future events that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties, and other factors are provided in the earning release, as well as other documents filed by the company with the Securities and Exchange Commission, the SEC. These documents can be found on our website or at sec.gov. Now, if you will please turn to slide three, I'll turn the call to Alessandro to begin.

Alessandro? Thank you, Giordano, and good morning to all. It is a milestone moment for Terra Innovatum as we present our inaugural earning result as a public company. Terra Innovatum has developed what we believe is the industry's first commercial-ready micro-reactor design, the Solo micro-reactor. It is a 1-megawatt electric helium-cooled reactor powered by widely available low-enriched uranium fuels. Solo can run autonomously for 15 years without refueling or 45 years with two core swaps. One Solo powers the equivalent of approximately 200 average U.S. homes, making it ideal for distributed energy needs at data centers, hospitals, and industrial facilities. In October, we completed our business combination with GSRG, providing the capital and brand elevation to execute our go-to-market strategy. As a NASDAQ listed company, we are positioned to achieve NRC approval for our first of a kind reactor by 2027 and begin our commercialization by 2028. On slide 4, I would like to introduce our post-listing activities. We are fully funded to advance three critical work streams. First, advancing NRC licensing. Second, constructing our first of a kind reactor. And third, FOC operation, leading to subsequent commercialization and scaling of our commercial production. Our capital allies provide the resources to execute with discipline and confidence. And now moving on slide five, I would like to highlight our key differentiators. Solar is safe by physics. built from the shell component using existing oil-enriched uranium fuel. Our design is now complete. We do not need new R&D, and this streamlines licensing, reduces risk, and enables rapid deployment. Solar versatility provides electricity, process heat, and radioisotopes at the point of demand. Moving to slide six, as you know, we are experiencing strong regulatory tailwinds. The U.S. NRC and White House are accelerating advanced reactor approval. Beginning on October 1st, the NRC reduced the licensing fee by 50%, from $318 to $148 per hour, and this significantly lowers our licensing costs. But the NRC has also streamlined the microreactor approval that way, offering parallel licensing process with priority for solutions like ours. And now coming to slide seven, I would like to provide some licensing update. In January 2025, we submitted our regulatory engagement plan to NRC. We have submitted topical reports covering design, safety, fuel, and operation. NRC accepted for review our principle design criteria report in May, with the expected review target for completion by the end of 2025. We are pursuing an accelerated dual-track licensing process with the MRC for our first of a kind reactor, with construction permit and operating licensing activities proceeding in parallel. We expect FOC approval in 2027, followed by commercial license approval in 2028. Our confidence in this timeline is rooted in decades of know-how in the nuclear industry and licensing. and six years of now complete sole reactor design, which works using proline, component, and fuel. We have no new material or fuel type to validate, and our first-of-a-kind design is identical to our commercial unit, and this contributes to a faster commercialization license and deployment. This position definitely helps as the fastest commercial microreactor to the market. On slide eight, I would like now to provide some update on commercialization. We have signed MOU for up to 100 units, solo units, representing 1.9 billion in potential revenue. Since our last NASDAQ listing, we have seen accelerated customer imbalance, and our focus is now translating these MOU into binding order with the next 12 months. And now on slide nine, I would like to highlight on our Amarisco partnership. Amarisco is a leading U.S. energy infrastructure provider with 25 years of experience in distributed energy solutions for federal, state, and municipal customers. This partnership targets deployment of 50 solar reactors with U.S. focus on DOD and DOE side, plus commercial and global opportunities. This accelerated our access to shovel-ready projects aligned with federal energy security and mandates. And on slide 10, some update on FOC deployment. We have selected the Rock City Admiral Parkway in Illinois for our first-of-a-kind site. Rock City is a 6 million square foot underground industrial facility serving major retailers, food chains, and government archives. Deployment fork at the commercial industrial site demonstrate SOLO's real work readiness and it might immediately validate our business case. The mall include also an option for up to 50 additional SOLO deployment on site. Slide 11 and 12 showcase our supply chain network. We have adopted a public manufacturing model, partnering with establishing nuclear supplier rather than building internal facilities. This provides balance sheet flexibility, cost transparency, and rapid scalability. Partners include ATB Riva Calzoni, Paragon, TechSource, Conwar, and established fuel suppliers. ATB is a 100-year-old nuclear supplier with 646,000 square feet of nuclear-qualified manufacturer space and has begun preliminary construction activity for our first-of-a-kind a few weeks ago. our partner network can accommodate production of 400 solar reactors per year by the end of 2028. And this robust supply chain, combined with our capital light model, enable us to focus our resources on licensing, customer development, and execution. And with that foundation, I will now turn to Guillaume for our financial update. Guillaume, please.

Thank you, Alessandro, and good morning, everyone. Turning to slide 13 on financing, we completed our business combination with GSR3 on October 9th, generating $131 million in gross proceeds, or $109 million net of expenses. This fully funds our first-of-a-kind reactor licensing and construction activities, estimated at approximately $17 million. Our capital light fabless model means we have no requirement for major manufacturing facility investment in the near term. We scale production through our partner network. Our pro forma capital structure is now dead screen. On slide 14, regarding financial updates, for Q3 2025, our loss from operations was $2.3 million. As of September 30, we had $2,150,000 in cash. Strategic priorities appear on slide 15. First, convert our MOUs and advance discussions into committed orders through partnerships like Ameresco and internal business development led by our US team. Second, maintain our accelerated NRC licensing pace to achieve 2027 first-of-a-kind and 2028 commercial approvals. Third, strengthen our supply chain partnerships to support up to 400 units per year production capacity. I now turn back to Alessandro for closing remarks.

Thanks, Guillaume. These three priorities Converting MOU to orders, advancing NRC licensing, and strengthening our supply chain will guide our execution over the next 12 to 18 months. We are confident in our ability to deliver based on decades of industrial experience in the U.S. and abroad. And we have the right leadership team and board of directors in place to execute. Our independent board is led by Katrin Williams, former CEO of Ramatone, alongside Michael Howard, Chair of the World Energy Council, Rex Jackson, former CFO of ChargePoint, and Peter Hastings, former VP of Regulatory Affairs at Kairos Power. And finally on slide 16, We will be engaging with the investment community at upcoming conference hosted by Bank of America, Roth, OBS, Virali, Benchmark, Mizumo, and Trike Alu. We look forward to further dialogue with investors as we advance. We will also be attending industrial conference in the US and beyond. Stay tuned for more and look for updating our IR site. To conclude, We want to express our excitement in presenting our first in-vehicle as a public company. That innovation will remain fully focused on resisting our three corporate priorities. Advancing energy license to achieve our 2027 first of the kind and 2028 commercial milestones. Scaling our supply chain partnership and converting pipeline demand into binding customer orders. We have the capital. We have the team and the regulatory to succeed. Our mission is to deliver safe, reliable, and affordable zero-carbon energy solution to a rapidly transforming world. And we are on track to do exactly that. And with this operator, we are now ready to open the line for questions.

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star two. First question comes from Craig Shearer for Cleary Brothers. Please go ahead.

Good morning. So two for me. So first, between Amoresco and Rock City, Any thoughts on the greatest initial commercial deployment prospects as you look into 2028, 2029? And secondly, in terms of your cost of production and your supply chain relationships, could you opine on the scaled down of expenses from first of a kind to perhaps your first 50 units to scaled production at over 100 deployed?

Thank you, Craig. I'll leave this answer to Mr. Guillaume. Thank you, Alessandro. Good morning, Craig.

So I would say on the commercial side, at the moment we have two customers who are of different nature. is waiting for the first of a kind to be licensed and is ready to ramp up after that. So in terms of speed, we could expect that they will be first in line. But at the same time, we are also working with Amiresco, which has an option for 50 units to deploy with their own customer base. So not directly using them for their own operations, but more for deployments with own customer requirements. I would say at this point we don't have a very clear view of who will be first to place a firm order, but both are in a very good position to do that soon. And for the costing side, we've communicated a cost structure which is related to our estimated cost of production when we reach 1,000 units. so indicating that the total cost of production would be around 11.5 million dollars in total, with 3.5 million for the fuel and 8 for the rest of the construction, assembly and deployment of the reactor. This cost structure obviously is targeting a larger volume of production than what we will see just after the first of a kind. but we haven't released details of that, so I'm assuming that we will get more precise over the coming years, or the coming year if I can put it this way, to detail the cost structure and the way we will have secured the component costs and the manufacturing assembly.

Okay, thank you.

Once again, if you would like to ask a question, please press star 1 on your telephone keypad. Next question, Ryan.

Hey, guys.

Thanks for taking my questions. So in order to hit the 2027 FOAC milestone, when do you think you need to submit an application with the NRC, and what are some of the steps that you need to take to get there?

Thank you, Ryan. Definitely the milestones we have next year in 2026 is the submittal of the Preliminary Safety Analysis Report, which is at the basis to get the construction permit in the middle of 2027. We are already advancing with USNRSE through several submissions of topical reports and white papers through which we anticipated to USNRSE topics of relevance for their review. This is just a part of the two-step licensing process, as you know. The other is related with the operating license, which we plan to get by the end of 2027. We started discussion with USNRC in order to see what we can submit, even for the operating licensing starting from the beginning of next year, through, again, the same technical process. and tools of topical paper and white papers, topical report and white papers. What is the grid confidence we have stay in the completion of the design of our reactor and associated safety assessment analysis, which causes the background of our confidence in delivering on time the topical reports and the final analysis report to USNRC.

Great. Appreciate that. And then on the customer side, for what types of applications are you seeing the most interest, and how are you thinking about the international opportunity relative to the demand you're seeing in the US?

Okay. In terms of that, I can say that the visibility of Solo is really unique. As you know, we can go from one megawatt electric to several megawatts, thanks to the modularity. And we can provide electricity, but also heat and the radioisotopes. I can tell you that, to me, the targets stay in big player, because anyway, big players are the ones that are Really looking for energy like data center. And in that sense, our solution, thanks to the modularity is Very welcome from data center modularity helps them to basically realize the redundancy requests in terms of reliability of power, and from the other side, a law also to accompany the growth of the data center with the growth of our unit in terms of the possibility to provide electricity. But also the small industry like semence, like uh glass production or paper tissue are something that are of very high interest for us we had a lot of uh discussion with them and in that sense that sector of the market is unique because thanks to our small size we are the only one among the competitors that can arrive there great i appreciate all that detail turn it back thanks

We have a follow-up from Greg here.

Yes, on the commercialization, I had a quick question about thoughts on customizing the mix of power and thermal provided for specific applications. Does this always need to be bespoke, or once you penetrate a specific industry, like, I don't know, mining or hospitals, Are the needs pretty consistent once you're heavily involved in an industry?

So maybe I will take this one briefly.

The ability to replicate the way we are addressing the needs of customers is, I would say, very straightforward the moment we have our first contract. So if I can take the example of Rock City, because this is the one we were talking about earlier and which is maybe a very good example of that. We are in a position to work on supplying electricity for their applications, which are mainly, let's say, very large cold storage underground. and they are asking us to also use the decay heat of the reactor to defreeze these equipments, because these fridges are generating a certain amount of ice on their own system, which is reducing their performance. So in practical terms, once we have a way to operate that with RockCD, we can move the same type of solution to other operators of large coal storage facilities. The same discussion is occurring when we talk to people operating remotely on the mining side, typically. We know that they need the power for their existing operation, but we also give them the opportunity to increase the electrification of their operations. and we know that by doing that we have a sort of very replicable model in terms of reusing it in different contexts. Maybe the last aspect which I can mention is maybe more on the industrial side of the equation. Alessandro was referring to the paper tissue industry, but you can have the same logic for the cement industry. industrial operations which are also using cogeneration so they see the benefit of the electricity supply but they can also use the decay heat for for part of their industrial process and that gives us a very strong in this case that we can replicate systematically with each operator obviously the size and shape of the the way they will use it will will vary but Pretty much the usage of Solo can be replicated in every location for industries which are relatively standardized like the ones I mentioned.

Thank you.

Thank you. I would like to turn the floor over to Alessandro for closing remarks.

Thank you again for joining us today as we close out our first admin course as a public company. We remain focused on advancing licensing, scaling our partnership, and converting our strong pipeline. If you have any follow-up questions, please don't hesitate to reach out at tervair at allianceadvisor.com. And thank you again, everyone.

This concludes today's teleconference. You may disconnect your lines at this time. And thank you for your participation.