NuScale Power Corporation Class A

Thank you, Operator.

Welcome to NuScale's fourth quarter and full year 2023 earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer, and Ramsey Amity, Chief Financial Officer. On today's call, NuScale will provide an update on its business and discuss financial results. We will then open the phone lines for questions. This afternoon, we posted a set of supplemental slides on our investor relations website. As reflected in the safe harbor statements on slide two, the information set forth in the presentation and discussed during the course of our remarks in the subsequent Q&A session includes forward-looking statements, which reflect our current views of existing trends and are subject to a variety of risks and uncertainties. You can find a discussion of our risk factors, which could potentially contribute to such differences in our FCC filings on Form 10-K for our fiscal year 2023 and in our prior FCC filings. I'll now turn the call over to John Hopkins, NuScale's President and Chief Executive Officer. John?

Thank you, Scott, and good afternoon, everyone. First, I'd like to thank our shareholders for their continued support and belief in the future success of NuScale. I also want to recognize our global strategic partners who have invested significant time and capital into our advanced design, supply chain, and delivery capabilities. In addition, I'd like to express how incredibly proud I am of each and every NuScale employee for their dedication, fortitude, and commitment to our values and mission. Together, I believe we have the capacity to improve and advance global power production to meet the future energy demands of our communities and businesses with clean, safe, and highly innovative small-module reactor nuclear technology. When Dr. Jose Reyes, NuScale's founder and chief technology officer, started his pioneering work developing SMR technology, few could have anticipated the growth in demand for sustainable baseload, 24-7 carbon-free energy driven by power usage amongst data centers and AI, major industrial projects, transportation, and utility customers. Today, as seen on slide three, We have invested more than 1.8 billion to develop the Sole Small Margin Reactor, or SMR, nuclear technology approved by the U.S. Nuclear Regulatory Commission, or NRC. No other technology developer, as we know, even has a design certification application under review. And this process requires several years and many hundreds of millions of dollars of investment. Looking ahead, our principal objective at NuScale is on transitioning from R&D to the commercialization of our proprietary technology. In this effort, we have engaged with our commercial partner, InterOne Energy, to build a diverse global pipeline and deploy NuScale SMR-enabled plants worldwide. Additionally, with the investment and expertise of our strategic partners, we have de-risked the manufacturing supply chain while maintaining scope for localization of certain supplies. Moving to slide 4, last year we made important progress on regulatory and manufacturing milestones. Let's start with the regulatory. In July 2023, NuScale's standard design approval application for a 77 megawatt upright design was accepted for review by the U.S. Nuclear Regulatory Commission. The NRC frequently reviews power upgrade applications similar to our move from a 50 megawatt to a 77 megawatt design. But we expect the NRC's process to conclude within 24 months. There are no perceived challenges to the process or timeline. While the design is based on the same fundamental safety case and features approved by the NRC in 2020, we strongly believe the 77 megawatt NuScale power module supports a wider range of customers. In addition, we have worked tirelessly to advance our manufacturing readiness. As you recall, we placed our first long-lead material loader with Doosan Interability in March of 2023. And last month, we visited Doosan at their world-class factory in Korea. There, we had the opportunity to witness the tremendous investment Doosan has made in advancing our production capabilities. including developing specialized technologies to manufacture forges and other materials associated with the first NuScale power modules. The scale of their facilities is absolutely astounding, and we are grateful for their partnership. For all of us, it is thrilling to see NuScale technology come to life. Our Korean, Japanese, American, and other international supply chain relationships are true competitive advantages for NuScale. even more so when you consider that many of these partners are also strategic investors. For over 10 years, NuScale has been working directly and continuously with more than 23 uniquely capable suppliers to jointly progress our design for manufacturing readiness. These suppliers have provided unwavering support of our efforts, and as a result, NuScale's supply chain is leading the industry in terms of manufacturing readiness. In addition to these operational milestones, we have continued to deepen our customer relationships and expand our pipeline, as you see on slide five. First, I'll provide an update on Rural Power. In the near term, we are working to advance the phase two of the front-end engineering design or feed work. NuScale will be providing engineering support services to Fluor Corporation in this effort. Rural Power's partners, Nucleoelectric SA, Innova Power and Gas, are experienced plant owners and operators in the nuclear space. Additionally, both the Romanian and U.S. governments are highly engaged in the process. As proposed, FEED Phase 2 work will include site characterization and regulatory analysis, and the development of a site-specific schedule and budget estimates for project execution. While NuScale contracted directly with RowPower to complete FEED Phase 1, NuScale is serving as a subcontractor and floor corporation for Row Power Feed Phase 2. Moving on to Standard Power, in October 2023, Standard Power announced their selection of NuScale's SMR technology, along with their need for a one-stop-shop solution to develop and execute their projects. As you recall, Standard Power is a provider of infrastructure as a service to advanced data processing companies. As part of their responsibility, Standard Power are currently working to line up the initial phase of financing towards two SMR plants. Each will be powered by 12 new scale power modules producing nearly two gigawatts of energy at sites in Ohio and Pennsylvania. A project this size has a significant amount of detail to be confirmed and structured before a project begins construction. And those discussions are ongoing. We'll keep our investors and partners updated on this progress. While we are moving full speed ahead with other opportunities in our business development pipeline, we remind our investors that given the scope and impact of these projects, discussions are detailed, deliberated, and staged in their progression. Looking at the demand environment more broadly, the need for clean, reliable power is far outpacing new supply coming online. As you see on slide six, electrification of the transportation, building, technology, and industrial segments is contributing to a so-called land grab. As the electric power industry prepares for a tripling of U.S. demand by 2050, this comes into even greater focus when you consider that the U.S. is on track to close half of its coal-fired generation capacity by 2026. Just 15 years after it reached its peak in 2011, the retirement of such baseload power, largely replaced by renewables, are making grids increasingly vulnerable to intermittency. Reinforcing and expanding the power grid remains an important opportunity for NuScale. Drilling down deeper, I'd like to spotlight a fast emerging opportunity in the technology sector. Simply put, each tech company in the world is investing heavily in hyperscale data processing infrastructure. Furthermore, these planned data centers are enormous energy consumers. Securing access to green 24-7 reliable power is critical for them to get site permitting and fulfill their clean energy commitments. As you see on slide seven, data center electricity consumption is expected to triple between 2020 and 2030, which is astonishing. That increase alone is equivalent to the electricity used by 40 million U.S. homes in a year, or almost a third of the total homes in America. NuScale is in discussions with major data center operators today. We see firsthand the significant interest from this group for dedicated, reliable, clean power solutions. Despite the growing demand, many potential customers are not necessarily interested in owning or operating their own nuclear power plants. That's where our partnership with IntraOne comes in. IntraOne will serve as a project developer and bring together the total package of our new scale technology with their capabilities in construction, financing, operation, and ownership. This one-stop shop solution has opened the aperture for customers considering SMRs and their energy portfolios. Early conversations are very encouraging, and we believe this partnership has changed the commercial trajectory of NuScale. Next, I will discuss our prospects with industrial companies, including a specific emphasis on using process heat to produce commercial scale clean chemical production, which you see on slide eight. NuScale enjoys numerous decisive advantages relative to both SMR technology competitors as well as other energy sources related to safety, siting, off-grid capabilities, and capacity factors, and more. Continuing on slide nine, NuScale enables clean chemical production, providing a safe, clean, reliable baseload source of energy with a very small land footprint. Our emergency planning zone allows us to co-locate with production facilities. This positions us very favorably with speaking with respective customers. We are currently engaged in eight separate funded projects related to NuScale integrated energy systems for chemical production. In fact, next week, Dr. Reyes will be speaking at the World Petrochemical Conference in Houston. We are the only nuclear company to have received an invitation and reflects our leadership amongst this customer group. Given rising demand for power and the tax credits available for advanced nuclear in the IRA, we anticipate adoption of our technology to accelerate. We continue to have constructive, highly positive, and ongoing dialogues with major utilities, industrial, and technology companies as well as local and national governments in the U.S. and globally. In summary, we have significant opportunities in front of us as we continue to build momentum, grow our business, and deliver on our commitments, and we are well positioned to capitalize in the year ahead. Now, I'll hand it over to Ramsey to provide our financial update. Ramsey?