NuScale Power Corporation Class A

Good afternoon, everyone, and welcome to Newskill's fourth quarter and full year 2024 earnings results conference call. Today's call is being recorded. All participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. To ask a question at this time, please press star 1 on your telephone keypad. A replay of today's conference call will be available and accessible on Newskill's website at ir.newskillpower.com. The web replay will be available for 30 days following the earnings call. At this time for opening remarks, I would like to turn the call over to Scott Kozak, Director of Investor Relations. Please go ahead, Mr. Kozak.

Thank you, operator. Welcome to NuScale's fourth quarter and full year 2024 earning results conference call. With us today are John Hopkins, President and Chief Executive Officer, and Ramsey Hamady, Chief Financial Officer. On today's call, NuScale will provide an update on our 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 Form 10-K and subsequent SEC 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. Reflecting on 2024, our journey has been dynamic and rewarding, and I'm delighted by our achievements. We have significantly bolstered our financial standing, advance the commercialization of our pioneering small modular reactor technology, and lay the groundwork for sustainable long-term value creation. Shortly, Ramsey will provide insights into our financials. I'd like to start with key business updates. As illustrated on slide three, we are witnessing good progress for Willpower. As you may recall, Willpower plans to develop a six-module SMR power plant with a 462 megawatt of installed capacity on the site of a decommissioned coal-fired power plant in Dorches. NuScale is committed to supporting Romania's energy security and decarbonization initiatives. We are diligently progressing our responsibilities for Road Power Phase 2 funding engineering and design. This floor-led Feed Phase 2 provides meaningful revenue and cash flow for NuScale. Moving on to slide four, it's essential to emphasize that NuScale stands as the sole near-term deployable SMR currently available. In contrast, other recently announced SMR projects in the U.S. are focused on demonstration plants. Following construction, these demonstration plants will have to operate for a minimum of four years prior to the U.S. Nuclear Regulatory Commission, NRC, providing regulatory approval. which is required for commercial operation. New Scale has committed over $2 billion to develop and license our unique SMR technology, which has received design certification from the Nuclear Regulatory Commission. No other advanced reactor SMR design has submitted a standard design approval application or SCA to the NRC at this point. And these efforts remain years away from approval compared to our established timeline. Infra 1 energy plants powered by NuScale technology are primed for immediate commercial development. We're also making headway on a technology review of our operated SDA application with the NRC, aiming to increase power output per module from our previously NRC licensed 50 megawatt electric to 77 megawatt electric. This review is set to conclude by mid 2025. Our design upgrade is founded on the same rigorous safety principles and technical features already authenticated by the NRC in 2020. We believe that the 77 megawatt electric NuScale power module will cater to a broader spectrum of customers while enhancing economic efficiency. Now let's turn our attention to manufacturing. NuScale is clearly leading the industry in this critical element of commercialization. Our supply chain partner and strategic investor, Doosan Interability, has continued to make progress advancing the first six NuScale power modules, the only NRC-approved SMRs in production. More recently, this past quarter, in coordination with Doosan and our development partner, IntraOne Energy, advanced discussions with prospective customers seeking 12-module configurations led us to long-lead material items for an additional six modules. NuScale has 12 modules in production, a testament to the confidence we have in our customer pipeline and our commitment to 2030 delivery. We are advancing certain activities in manufacturing licensing to get ahead of potential bottlenecks and commercial deployable schedules. For example, global manufacturer Lima recently received an order to supply steam generator tubes for NuScale small module reactors. On slide five, there are images associated with our manufacturing progress. This includes the production of large forgings and the maturing of our control rod drive mechanism design. Key lessons from our manufacturing readiness work are incorporated into design to save time during production work and support deployment, shortening delivery schedules significantly. Coupled with our InterOne development partnership, NuScale's SMR technology is poised to move the exploding demand for clean energy across multiple sectors. As illustrated on slide six, near-term energy demand in the U.S. is expected to grow at levels we haven't seen in decades. A recent IHS energy forecast anticipates a six-times increase in growth for electricity demand in the next 20 years versus the growth of the prior 20 years. This significantly accelerated rate of electricity consumption in the coming decades will fundamentally change the landscape of power production. The projected growth spans various sectors and is driven by the reshoring of manufacturing and electrification of many industries, including oil and gas and chemicals. However, the primary driver is a 24-7 load required by artificial intelligence data centers. According to a December 2024 US Department of Energy report, data centers may triple their energy use in the next three years alone. Under that forecast, data centers could account for as much as 12% of the nation's electricity consumption by 2028. The world's largest technology companies are driving this need. that it would spend approximately $80 billion in its 2025 fiscal year to build data centers for its booming artificial intelligence business. In addition, in December, Meta announced that it is seeking up to four gigawatts of new nuclear power to help meet the company's AI and sustainability objectives. And it's worth emphasizing that this is not about peaking demand. Data centers have both high capacity demand and high energy demand, so the challenge is multifaceted. Significant new energy sources are needed, both to produce enough power when usage is at its highest and to support sustained heavy levels of energy consumption over long duration. Yet, as seen in slide seven, the megawatts currently coming online in the U.S. are mainly intermittent sources and short-duration battery storage. Looking more closely at 2025, Plant capacity additions for three major U.S. grid operators include very limited dispatchable generation. Coupled with the reality of additional fossil fuel retirements, it is clear where nuclear, and SMARS in particular, can be a major game changer. We see massive opportunity to provide baseload clean energy. You cannot run a full-time grid on part-time power. And it's important to bear in mind that existing utilities are challenged to divert nuclear load from existing customers. In an era where more energy is necessary to fortify the U.S. electricity grid, power economic growth, and bolster America's global competitiveness, the need for new nuclear is a reality. And entities throughout our economy are taking notice. As we've discussed in the past few slides, the demand for nuclear has never been more pronounced. As viewed on slide eight, NuScale is seeing increased interest across the board from a variety of potential off-takers for different use cases. On the data center side, our commercialization partner, InterOne, is leading discussions with America's leading hyperscalers at the most senior levels. And conversations are focused on powering AI. These executives understand how attractive our site boundary emergency planning zone is enabling us to locate close to the end user. They also appreciate our off-grid capabilities. Critically, given the speed for which they need power, prospective customers recognize that NuScale is years ahead of other proposed SMR technologies, and they are attracted to IntraOne Energy's commercial model. which is structured to provide financial flexibility and mitigate deployment risk. Notably, conversations with hyperscalers are also driving increased engagement from the utilities that currently power them. Importantly, ENTRO-1 provides utilities and commercial consumers with a solution to get SMR-generated energy offtake without the need to capitalize, own, or operate a nuclear energy power plant. Switching gears for a minute, even as we drive our commercial initiatives, NuScale has not stopped innovating. As an example, our chief technology officer and co-founder, Dr. Jose Reyes, recently published a white paper illustrating why NuScale is well-positioned to benefit from the January 2025 Department of Treasury final regulations meant to boost domestic production of clean hydrogen fuel through tax credits. As noted on slide nine, this credit is worth up to $3 per kilogram of hydrogen production for those that can qualify, for example, by using NuScale. For over a decade, we have been exploring new hydrogen technologies with industrial partners in national labs that integrate a NuScale plant with high temperature and high pressure steam electrolyzers with the end goal of decarbonizing this important sector. Before I turn the call over to Ramsey, I want to touch on a few factors that we view as positive for NuScale. First, while Advanced Nuclear has long enjoyed bipartisan support, we are pleased by the new administration's enthusiasm and sense of urgency for new nuclear. Recently, Confirmed Energy Secretary Chris Wright has a deep understanding of the nuclear sector. committing that he wants to make it easier to research, invest, and build small-module reactors. In addition, a few weeks ago, President Trump established the National Energy Dominance Council, led by Secretary of Interior Borgman and Energy Secretary Wright. Within a 100-day timeframe, the Council advised on how best to improve processes for permitting, production, generation, transportation, and export of all forms of American energy. This will also include actions that each agency can take to increase energy production. Importantly, the executive order specifically prioritizes bringing small-mode reactors online. This effort is a strong step towards securing our energy future and ensuring the U.S. has the resources to meet demands that AI will place on our grid. Second, as we've discussed at length, our competitive strengths. Whether it's industrial electrification, process heat, or the rapidly escalating demand for the data economy, the reliable clean energy produced by NuScale's SMR technology plays a critical part in the energy solution of the future. Moreover, we are not burdened by the additional hurdles faced by non-light water reactor SMR technologies. So-called Generation 4 SMR technologies require high assay, low enriched uranium fuel, or HALU. Today, there is no supply chain for HALU. This fuel is not commercially available and production efforts are impeded by national security concerns. Given global diplomatic efforts to prevent proliferation in the absence of substantive recent investment, many experts believe HALU technologies could be a decade, if not more, away from commercialization. Lastly, I cannot end without emphasizing the incredible interest and demand for the technological and safety benefits of NuScale's SMR. Potential customers understand and appreciate what sets NuScale apart, including our partnership with InterOne Energy. I'm proud of where we are, and I'm looking forward to updating you on our progress over the course of 2025. Now, over to Ramsey for the financial update.