NuScale Plant Market

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1 NuScale Plant Market Biggs Porter Chief Financial Officer - Fluor NuScale Exposition August 20-21, 2015

2 Fluor Corporation Acquired majority interest in NuScale in October 2011 One of the world s leading publicly traded engineering, procurement, construction, maintenance, and project management companies #136 in the FORTUNE 500 (2015) More than 1,000 projects annually, serving more than 600 clients in 66 countries More than 43,000 employees worldwide Offices in more than 28 countries on 6 continents Over 100 years of experience Fluor Corporate Headquarters Dallas, Texas Revenue New awards Backlog $21.5 billion $28.8 billion $42.5 billion Investment Grade Credit Ratings: S&P A- Moody s A3 Fitch A- 2

3 Why Invest in NuScale? Huge addressable market. NuScale is about efficient, modular construction. Fluor excels at bringing large capital projects to fruition. NuScale is simple, safe and economic. Growing worldwide demand for Carbon-Free Generation. 3

4 SMR Market Potential UK NNL* calculated the potential SMR market to be approximately 65-85GW by 2035, GW excluding Russia *UK National Nuclear Laboratory SMR Feasibility Study, December 2014 This is equivalent to NuScale Power Modules (NPMs) At 25% market share, and 10 year deployment timeframe, NPM / year At 36 NPM / year, approximately 1000 workers dedicated to machining, assembling and testing NPMs 4

5 SMRs & the Clean Power Plan (CPP) EPA issued its proposed Clean Power Plan to regulate CO2 emissions from existing power plants under section 111(d) of the Clean Air Act The CPP issued varying, state-specific targets but the rule is not prescriptive about how to meet the targets The CPP is tough on coal plants, the largest and highest rate emitters, and many will have to close CPP glide path matches well with NuScale first deployment in 2023 Base load power will have to come from nuclear power, CCGT or renewables + storage Renewables + storage is currently too expensive to be used for base load demand Utilities will resist becoming overly dependent on natural gas as a fuel source 32% reduction in GHG from affected EGUs is ~100 GW of coal which could be replaced by a combination of renewables, energy efficiency and nuclear. 100 GW represents 2000 NuScale Power Modules or MWe plants UK NNL forecast for US is 15 GW of SMR deployment by

6 SMR Market Potential Exelon CEO Chris Crane, New nuclear plants being built in a competitive market is not in our future, unfortunately we see the shorter capital cycle and the potential advantage of an SMR being the only thing that could come in and save the day... Nuclear Energy Assembly, May 2015 Senator Lisa Murkowski, There is also great opportunity for new forms of nuclear energy on the horizon. I have long supported and advocated for the development and deployment of small modular reactors. The potential for this technology in my home state of Alaska is very exciting the size, power potential, and ability to add unit by unit could be a game changer for small, remote communities that currently pay extremely high energy costs or to supply power to our military bases. Nuclear Energy Assembly, May

7 Why Invest in NuScale? NuScale has the potential to be larger than Fluor is today. 7

8 The Element of Nu

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