Studsvik (SVIK) Investor update summary

Strategic partnership and project overview

• A landmark agreement was signed with GE Vernova Hitachi, Samsung C & T, and DS Investment Partners to develop a 1.2 GW nuclear power project in Sweden, focusing on four BWRX-300 SMR units at either Nyköping or Valdemarsvik, with the first unit expected to be operational in the mid to late 2030s.

• The agreement is exclusive for a fixed period, with immediate joint development work covering commercial, technical, regulatory, and financing activities.

• A joint project company will be established by 2027 to oversee development, financing, construction, ownership, and operation, with roles divided among partners.

• The phased, multi-unit approach aims to standardize processes, improve cost and productivity, and maximize Swedish industrial participation and supply chain development.

• The BWRX-300 SMR, already under construction in Canada, was chosen for its proven technology, maturity, and established licensing basis.

Financial and operational implications

• No material financial impact is expected for 2026; development spending and investment details for 2027 and beyond are yet to be determined.

• Studsvik’s role spans developer, site owner, and service provider, with potential long-term revenue from core services and optional investment in the project company.

• Revenue streams may arise from selling services to the SPV and possible equity participation, but specifics will depend on future agreements.

• The project is designed to create long-term opportunities for domestic services and supply chains, supporting both initial and future nuclear deployments.

• If the project does not proceed to final investment, Studsvik retains its site and regulatory positions, with limited financial exposure due to a capital-light approach.

Market and regulatory context

• Swedish electricity demand is projected to double by 2050, driving the need for new nuclear capacity.

• The government supports new nuclear with concessional loans and a two-way Contract for Difference, providing revenue security and reducing project risk.

• Sweden's new legislation and state financing framework enable new nuclear development, with a five-phase process from site screening to operation.

• The project leverages Sweden’s favorable regulatory and financing frameworks to attract global partners and private capital.

• The supportive Swedish framework includes state loans, two-way Contracts for Difference, and risk/profit sharing to encourage investment.