Disciplined Development in Key Markets Growth, Yield and Long-term Value Investor Presentation September 2019 BLX and BLX.DB.A – Toronto Stock Exchange
Disclaimer Forward-looking statements Some of the statements contained in this presentation including those regarding future results and performance strategic plan business model growth strategy revenues diversification optimization development in the solar sector and storage expansion of targeted customers through signature of contracts directly with companies consuming electricity sale of minority interests and 2023 financial objectives are forward-looking statements based on current expectations within the meaning of securities legislation. Boralex would like to point out that by their very nature forward-looking statements involve risks and uncertainties such that its results or the measures 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. 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. Combined basis – 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% to 59.96%) in the financial statement items of the Interests (revenues expenses assets liabilities etc.). See the Non- IFRS measures section in the Second Quarter 2019 Interim Report for more information. Other non-IFRS measures This presentation contains certain financial measures that are not in accordance with International Financial Reporting Standard ("IFRS"). In order to assess the performance of its assets and reporting segments Boralex uses the terms "EBITDA" "EBITDA(A)" " "cash flows from operations" "net debt ratio" "discretionary cash flows" and "payout ratio" . For more information please refer to Boralex’s MD&A. General The data expressed as a percentage is calculated using amounts in thousands of dollars. 2
Agenda Why Invest in Boralex? 1. A Unique Positioning in Key Markets. 2. A Strong Growth Profile. 3. A Well-Defined Strategic Plan with a Strong Development Pipeline. 4. Solid Financial Position and Predictable Cash Flows. 5. Attractive Valuation. 3
1. A Unique Positioning in Key Markets Capacity Breakdown by Operating Segment Target Capacity Breakdown by Geographic Segment Target 4
1. A Unique Positioning in Key Markets Pursuing Development the Boralex Way 1. Success in developing small to mid-size projects. 2. Development focused in key markets with more complex processes creating barriers to entry for larger players. 3. Boots-on-the-ground approach with development team actively involved from day one. 4. Experience with strategic and financial partnerships as well as acquisitions. 5. Strong values and culture of respect for employees, communities and environment (ESG-focused by nature). 5
Experienced Leadership Team Julie Patrick Patrick Marie-Josée Cusson Lemaire Decostre Arsenault Vice President President and Vice President and Vice President Public and Chief Executive Officer Chief Operating Officer Talent and Culture Corporate Affairs Pascal Bruno Nicolas Hugues Hurtubise Guilmette Wolff Girardin Vice President Vice President Vice President Vice President Chief Legal Officer and and Chief and General Manager Development Corporate Secretary Financial Officer Boralex Europe • Complementary backgroud, leadership style and experience. • New CFO brings additional expertise in transactions and financing. • Creation of new COO role to optimize operations and development activities. • New Vice President and General Manager Boralex Europe brings additional expertise in sales development 6 operations and supplier relationships.
1. A Unique Positioning in Key Markets Our Approach to ESG 1. ESG is part of our DNA: Boralex is by nature socially responsible and environmentally friendly. We have also acquired a reputation of partner of choice for local municipalities and Indigenous 2. communities . 3. Our ESG framework: GRI and SASB. 4. 4,152 GWh of electricity produced in 2018 by Boralex is equivalent to a reduction of 214,000 tons of CO ₂ emissions. Boralex adheres to Equator Principles and Universal Declaration of Human Rights . 5. 6. Partnerships with universities & chairs to improve knowledge and reduce our environmental. impacts: WWF, HEC Montreal, École nationale supérieure de paysage in France, Réseau CIVAM . Employee Brand – A strong team of over 420 employees with many skills working for Boralex in 7. North America and Europe. 8. Strong focus on health and safety: 1 lost time incident on 700,000 worked hours in 2018. 9. Sustainable Procurement Charter. Governance – Board: 10. • 4 women out of 11 directors. • Mix of long standing and new Members. • Board Members bringing different skills. • Board Members age: - 6 below 60 years old. - 4 between 60-69 years old. • All independent Members, except for CEO; Chairman fully independent. • Independent consultant for HR Committee. • Code of ethics. 7 • Clawback policy adopted on Dec. 14, 2017.
2. A Strong Growth Profile Compound Annual Growth Rate: Installed Capacity: 16% EBITDA(A): 24% Market Capitalization: 29% Dividends: 26% 8
2. A Strong Growth Profile A good balance between organic growth and acquisitions 2 003 MW +1 065 MW 40% organically 60% acquisitions 938 MW 2014 YTD-2019 + 429 MW organic + 636 MW acquisition 7% average yearly growth 10% average yearly growth 9
3. Well Defined Strategic Plan • Boralex’s strategic plan and financial objectives for 2023 sets out four main strategic directions and three financial objectives. • This plan is a continuation of the actions undertaken to date in sectors with high growth potential and for which Boralex has developed solid expertise. • The plan also includes complementary initiatives to diversify and optimize operations and revenue sources. 10
3. Well Defined Strategic Plan Attractive Market Growth in France Supported by the Energy Transition Law Energy 2019 2023 2028 WIND 15.3 GW 24.6 GW 35 GW Around 2 GW/year SOLAR PV 9 GW 20 GW 37 GW Around 2 GW/year Massive nuclear power reduction till 2035. 50% of nuclear power by 2035 versus 75% today; 14 nuclear plants to be closed by 2035. 11
3. Well Defined Strategic Plan Strong Market Potential in the New York Market Targets and policy drivers Previous policy Green New Deal* Mandate % of renewables by 2030 50% 70% Mandate 100% renewables n/a 2040 Onshore wind Doubling new large-scale solar resources through the CES. Expected 1,500 MW-2,000 MW to be procured by Utility scale solar NYSERDA each year until 2023.** Distributed solar 3,000 MW by 2023 6,000 MW by 2025 Battery storage 1,500 MW by 2025 3,000 MW by 2030 Offshore wind 2,400 MW by 2030 9,000 MW by 2035 * Since June 2019. ** Under the previous CES order the target was for 800-1 000 MW/year although NYSERDA procured twice as much in the last two auctions. 12
3. Well Defined Strategic Plan New York is a good fit for Boralex … • Boralex already operates 7 power plants in New York and is well perceived in the communities in which it operates; • Proximity to Boralex’s development offices in Canada; • Boralex can create value in using its experience in complex / long development cycle projects; • Growing market with strong social and political support ; • High electricity demand and barriers to entry; • Boralex’s diversification goals to solar and storage are well aligned with current and anticipated government policies; • NY is one of the most populous and affluent US regions with a large number of potential C&I energy users supporting Boralex’s goal to diversify its customer base . 13
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