Strong growth in first quarter results due to 38% increase in wind power production in France

Highlights of the first quarter of 2020

• Combined EBITDA(A) of $169 million, up $15 million, 10% higher than in the first quarter of 2019 and discretionary cash flows of $68 million, up 59% over the $44 million recorded in the first quarter of 2019.
• Combined wind power production higher than anticipated(1) and higher than corresponding quarterly production in 2019
• Total wind power production: Up 12% vs anticipated production and up 9% vs 2019.
• Wind power production in France: Up 31% vs anticipated production and up 38% vs 2019.
• 250 MW in projects selected in calls for tenders
• 180 MW in solar projects selected in New York State in the U.S.
• 70 MW in solar and wind projects awarded in France.
• 312 MW in the Growth Path and 2,593 MW in the project development pipeline.
• Boralex signed its first corporate power purchase agreement (corporate PPA) and commissioned its first energy storage unit
• Five-year contract starting on January 1, 2021 signed with a major CAC 40 industrial group in France for an existing wind farm coming to the end of its EDF contract.
• Commissioning of a 2 MW storage unit at an operating wind farm in France.
• Continuing operations under COVID-19 business continuity plan
• Boralex's operations have been designated essential by all governments in locations where the company operates.
• Employees have been working remotely since the week of March 9. Site operations and maintenance teams have been reorganized and are following the business continuity plan.
• 97% of Boralex's production is under contract with well-defined conditions, so the Corporation will continue to generate expected cash flows.
• Boralex has over $250 million in unused credit under its revolving credit facility and letter of credit facility as at March 31, 2020.

MONTRÉAL, May 6, 2020 /CNW Telbec/ - For the three-month period ended March 31, 2020, Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) recorded growth of 13% (10%(2)) in EBITDA(A) and 46% (21%) in net earnings attributable to shareholders of Boralex. This increase stems from higher revenues from energy sales from comparable sites and the contribution from sites commissioned over the past year.

"The growth in our results reflects the strong increase in wind power production in France and the contribution from four wind farms and two hydroelectric power stations totalling 95 MW commissioned in 2019," said Patrick Lemaire, President and Chief Executive Officer of Boralex. "For the second consecutive quarter, comparable production at our wind farms in France was considerably higher than in the corresponding period last year and anticipated production."

"The first quarter of 2020 was also the period in which COVID-19 spread rapidly around the world, with a devastating impact on the lives of people everywhere. I want to thank our employees and their families for their solidarity and the effort they have put into maintaining both production and our assets during this difficult period. I also want to thank all of our suppliers and other business partners for their unswerving support during this crisis."

With respect to the Corporation's development activities, Mr. Lemaire added "We are very proud of having been selected in request for proposals in France and New York State, in the United States for solar and wind projects totalling 250 MW. We are actively pursuing the development of our portfolio of projects and with our strong balance sheet and cash flows we will not only be able to get through the current crisis but also taking advantage of interesting acquisition or partnership opportunities that could arise in the coming months."

In the 2020 first quarter, Boralex produced 1,533 GWh (1,837 GWh) of electricity, up 19% (9%) compared with 1,284 GWh (1,679 GWh) in the same quarter of 2019. The production increase was particularly notable in the wind power segment in France, which was 38% higher than in the first quarter of 2019 and 31% higher than anticipated. Production in the hydroelectric power segment was also up by 25% compared to the same quarter in 2019 and 12% higher than anticipated.

For the three-month period ended March 31, 2020, revenues generated by energy sales rose to $200 million ($232 million), up $28 million ($18 million) or 16% (9%) compared with results for the corresponding quarter of 2019. This increase stems both from the expansion of the Corporation's operating base and the higher production by wind farms in France, given the more favourable wind conditions compared to the first quarter 2019.

For the first quarter of 2020, the Corporation recorded consolidated EBITDA(A) of $149 million ($169 million), up by $18 million ($15 million) or 13% (10%) compared to the corresponding quarter of 2019.

As noted above, this increase stems from the positive differences resulting from the contribution of sites commissioned in the past year, including the repowering of the Buckingham hydroelectric power station in Québec, as well as the increase in production volume by comparable assets versus last year.

Overall, for the three-month period ended March 31, 2020, Boralex recorded net earnings of $44 million ($37 million), versus net earnings of $31 million ($31 million) for the same period in 2019. As shown in the above table, this resulted in net earnings attributable to shareholders of Boralex of $41 million ($34 million) or $0.43($0.35) per share (basic and diluted), compared to net earnings attributable to shareholders of Boralex of $29 million ($29 million) or $0.31($0.31) per share (diluted) for the first quarter of 2019. This increase is due to the increase in EBITDA(A) recorded during the quarter as indicated above.

Outlook

In 2019, Boralex's management announced the strategic plan which will steer its actions to achieve its financial objectives for 2023. This plan is a continuation of the actions undertaken to date in sectors with high growth potential and for which the Corporation has developed solid expertise. It also includes supplementary initiatives to diversify and optimize operations and revenue sources.

The plan sets out four main strategic directions and three financial objectives and is based on a rigorous analysis of the market evolution and trends in the renewable energy sector. The plan also reflects the view that a profound and rapid transformation of the industry is under way, driven mainly by many technological innovations.

To successfully implement its strategic plan and achieve its financial objectives, the Corporation relies on its solid expertise in developing small and medium-sized projects, which is a key advantage for seizing opportunities in increasingly competitive markets, particularly the solar power market.

Boralex is implementing its strategic plan based on growth potential in the markets in which it operates.

In Europe, France's wind power market could grow 1.85 GW per year to 2028; the ground-mounted solar segment also has strong growth potential, with a government-targeted additional capacity of about 2 GW per year by 2028, according to France's Pluriannual Energy Program published on April 23, 2020.

In North America, in the USA, New York State Green New Deal is targeting an increase in solar power development from 1.7 GW in 2019 to 6 GW in 2023, which is more than 1 GW per year on average. This market has been targeted by Boralex for its future development, in keeping with the strategic diversification as indicated in the chart.

The Corporation has a portfolio of projects at various stages of development, based on clearly defined criteria, for a total of 2,593 MW and a Growth Path of 312 MW. These projects put the Corporation in a very good position to reach its target capacity of 2,800 MW in 2023 as indicated in the following chart.

To ensure implementation of the strategic plan translates into disciplined growth while creating value for shareholders, Boralex management is monitoring three criteria selected as financial objectives.

For the first quarter 2020, discretionary cash flows amounted to $68 million, up 59% over the $44 million recorded in the same period in 2019. This improvement is attributable to better operational results and the contribution from sites acquired and commissioned over the past year,to various initiative to optimize the capital structure, and to a disciplined approach to investments. For the twelve-month period ended March 31, 2020, discretionary cash flows amounted to $144 million. It is important to mention that over the past two quarters, our discretionary cash flows benefited from wind power production that was considerably higher than anticipated in France.

The dividend paid to shareholders over the twelve-month period ended March 31, 2020 equalled a payout ratio of 43%, in line with the target payout ratio of 40% - 60% set in accordance with the Corporation's 2023 financial objectives. Lastly, at the end of the first quarter of 2020, Boralex's installed capacity was 2,040 MW.

Dividend declaration

The Corporation's Board of Directors has authorized and declared a quarterly dividend of $0.1650 per common share to be paid on June 15, 2020 to shareholders of record at the close of business on May 29, 2020. Boralex has designated this dividend as an eligible dividend within the meaning of section 89.14 of the Income Tax Act (Canada) and all provisions of provincial laws applicable to eligible dividends.

About Boralex

Boralex develops, builds and operates renewable energy power facilities in Canada, France, the United Kingdom and the United States. A leader in the Canadian market and France's largest independent producer of onshore wind power, the Corporation is recognized for its solid experience in optimizing its asset base in four power generation types-wind, hydroelectric, thermal and solar. Boralex ensures sustainable growth by leveraging the expertise and diversification developed for 30 years. Boralex's shares are listed on the Toronto Stock Exchange under the ticker symbol BLX. More information is available at www.boralex.com or www.sedar.com. Follow us on Facebook, LinkedIn and Twitter.

Caution regarding forward-looking statements

Some of the statements contained in this press release, including those regarding future results and performance, the strategic plan, business model and the Corporation's growth strategy, financial objectives and renewable energy production projects in the portfolio or on the Corporation's Growth Path, are forward-looking statements based on current expectations, within the meaning of securities legislation.

The forward-looking statements are based on material assumptions, including the following: assumptions about the performance the Corporation will obtain from its projects, based on management's estimates and expectations with respect to factors related to wind and other factors; opportunities that may arise in the various sectors targeted for growth or diversification; assumptions made about EBITDA(A) margins; assumptions made about the situation in the sector and the economic situation in general, competition and the availability of financing and partners. Although the Corporation believes that these factors and assumptions are reasonable based on the information currently available, they may prove to be inaccurate.

Boralex would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results or the measure it adopts could differ materially from those indicated by or underlying these statements, or could have an impact on the degree of realization of a particular forward-looking statement.

The main factors that could lead to a material difference between the Corporation's actual results and the forward-looking financial information or expectations set forth in the forward-looking statements include the general impact of economic conditions, currency fluctuations, volatility in energy selling prices, the Corporation's financial capacity, competition, changes in general market conditions, the regulations governing the industry, regulatory disputes and other issues related to projects in operation or under development, as well as certain other factors described in the documents filed by the Corporation with the different securities commissions.

Unless otherwise specified by the Corporation, the forward-looking statements do not take into account the possible impact on its activities, transactions, non-recurring items or other exceptional items announced or occurring after the statements are made. There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by forward-looking statements. The reader is cautioned not to place undue reliance on such forward-looking statements.

Unless required to do so under applicable securities legislation, Boralex management does not assume any obligation to update or revise forward-looking statements to reflect new information, future events or other changes.

The data expressed as a percentage is calculated using amounts in thousands of dollars.

Combined - Non-IFRS measure

The combined information ("Combined") presented above and in the MD&A of the Corporation resulted from the combination of the financial information of Boralex Inc. ("Boralex" or the "Corporation") under IFRS and the share of the financial information of the Interests. The Interests represent significant investments by Boralex and although IFRS does not permit the consolidation of their financial information within that of Boralex, management considers that information on a Combined basis is useful data to evaluate the Corporation's performance. In order to prepare the Combined information, Boralex first prepares its financial statements and those of the Interests in accordance with IFRS. Then, the Interests in Joint Ventures and associates, Share in earnings of the Joint Ventures and associates and Distributions received from the Joint Ventures and associates line items are replaced by Boralex's respective share (ranging from 50.00% to 59.96%) in the financial statement items of the Interests (revenues, expenses, assets, liabilities, etc.). For greater detail, see the Interests in the Joint Ventures and associates note in the audited annual consolidated financial statements for the year ended December 31, 2019.

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