Mr. Patrick Decostre reports

BORALEX ADDS SIGNIFICANT VOLUME OF 468 MW TO ITS PORTFOLIO OF PROJECTS UNDER DEVELOPMENT AND CONSTRUCTION, WHICH REACHED 6 GW IN THE FIRST QUARTER OF 2023

Boralex Inc. has provided an update on the substantial growth of its project portfolio and a significant increase in production on a combined basis in the first quarter of 2023.

Highlights

• Addition of 238 MW of wind and solar projects and 230 MW of storage projects to the early stage of the project portfolio in the first quarter of 2023
  • Wind projects in Europe totalling 117 MW.
  • Solar projects in the United States and Europe totalling 121 MW.
  • Storage projects in Ontario totalling 230 MW.
• Production up 1 per cent (22 per cent on a Combined basis 4 ) 1 compared to Q1 2022 due to assets commissioning and favourable wind conditions in France which offset unfavorable wind conditions in Canada. The increase on a Combined basis comes from the integration of the wind farms acquired in the United States in late 2022, production 1 per cent (1 per cent) above anticipated 2 for Q1
  • Wind: up 4 per cent (29 per cent) from Q1 2022 and equal to (4 per cent below) anticipated production for Q1.
  • Hydroelectric: up 10 per cent from Q1 2022 and 18 per cent above anticipated production for Q1.
  • Solar: down 12 per cent from Q1 2022 and 3 per cent below anticipated production for Q1.
• EBITDA(A) 3 for the first quarter of 2023 down 1 per cent (up 5 per cent) and operating income down 16 per cent (up 1 per cent) from the same quarter of 2022
  • EBITDA(A) of $171 million ($192 million) in Q1 2023, down $2 million (up $9 million) from Q1 2022. EBITDA(A) for the first quarter of 2022 included an amount of $16 million attributable to certain contracts for which Boralex had to record a provision in Q3 2022 following the implementation of the 2022 Supplementary Budget Act in France.
• Operating income of $77 million ($106 million) for Q1 2023, down $14 million (up $1 million) from Q1 2022.
• • Higher net cash flows related to operating activities but lower discretionary cash flows 4 in Q1- 2023
  • Net cash flows related to operating activities of $244 million in Q1, up $107 million from Q1 2022.
  • Cash flows from operations4 of $141 million in Q1, $5 million higher than in Q1 2022.
  • Discretionary cash flows of $65 million in Q1, down $12 million from Q1 2022. As indicated for EBITDA(A), cash flows for Q1 2022 included an additional $16 million attributable to certain contracts in France.
• Sustained financial flexibility and balance sheet strength
  • More than $330 million in available cash resources and authorized financing facilities4 as at March 31, 2023. An amount of $77 million under the revolving credit facility will be transferred to the letter of credit facility guaranteed by Export Development Canada, which was increased by $125 million bringing its total authorized amount to $200 million in April 2023.
  • Net debt to total capitalization ratio of 38 per cent as at March 31, 2023, compared to 40 per cent at the end of 2022.

"In the first quarter, we continued to implement our 2025 Strategic Plan initiatives, including through the addition of large development projects to our project portfolio and the integration of the two acquisitions completed in 2022," said Patrick Decostre, President and Chief Executive Officer of Boralex. "The first quarter was also marked by the announcement of new programs to help accelerate the energy transition and new tendering programs in our key markets, particularly in Quebec and elsewhere in Canada."

"In the coming quarters, we will carry on with our plan to optimize revenues through a combination of corporate power purchase agreements, bidding on long-term contracts in requests for proposals and selling into the day-ahead market, particularly in France, where prices remain high. We intend to continue optimizing our capital structure by arranging specific financing for our ready-to- build projects and to make progress on integrating our many ESG initiatives into our day-to-day operation activities," added Mr. Decostre.

In the first quarter of 2023, Boralex produced 1,696 GWh (2,286 GWh) of electricity, 1 per cent (22 per cent) more than the 1,681 GWh (1,875 GWh) produced in the same quarter of 2022. The increase on a Consolidated basis is coming from the commissioning of wind and solar farms in France, favourable wind conditions in France and favourable water flow conditions in North America, which more than compensated for unfavourable wind conditions in Canada. On a Combined basis the increase is attributable to the integration of the wind farm acquisition in the United States. For the three-month period ended March 31, 2023, revenues from energy sales and feed-in premiums totalled $298 million ($328 million), 31 per cent (32 per cent) more than in the first quarter of 2022. The increase is attributable to the contribution of the US acquisition and commissioning of assets, as well as to the higher production and high electricity prices in France. EBITDA(A)3 amounted to $171 million ($192 million), 1 per cent less (5 per cent more) than in the first quarter of 2022. The slight decrease in EBITDA(A) is attributable to lower production from Canadian wind farms and new regulations on certain contracts in France. It should be noted that in the first quarter of 2022, EBITDA(A) included an amount of $16 million attributable to certain contracts for which Boralex had to record a provision in the third quarter of 2022 following the publication of the 2022 Supplementary Budget Act in France. The increase seen on a combined basis is attributable to the wind farms acquisition in the United States. Operating income amounted to $77 million ($106 million), which compares to $91 million ($105 million) for the same quarter of 2022.

Outlook

Boralex's 2025 Strategic Plan is built around the same four strategic directions as the plan launched in 2019 - growth, diversification, customers and optimization - and six corporate targets. The details of the plan, which also sets out Boralex's corporate social responsibility strategy, are found in the Company's annual report. Highlights of the main achievements for the quarter ended March 31, 2023, in relation to the 2025 Strategic Plan can be found in the 2023 Interim Report 1 , available in the Investors section of the Boralex website. In the coming quarters, Boralex will continue to work on its various initiatives under the strategic plan, including project development, analysis of acquisition targets and optimization of power sales and operating costs.

Finally, to pursue its organic growth, the Company has a pipeline of projects at various stages of development defined on the basis of clearly identified criteria, totalling 4,293 MW in wind and solar projects and 1,050 MW in energy storage projects, as well as a Growth Path of 618 MW wind and solar projects and a 3 MW storage project.

Dividend declaration

The Company's Board of Directors has authorized and announced a quarterly dividend of $0.1650 per common share. This dividend will be paid on June 15, 2023, to shareholders of record at the close of business on May 31, 2023. Boralex designates this dividend as an "eligible dividend" pursuant to paragraph 89(14) of the Income Tax Act (Canada) and all provincial legislation applicable to eligible dividends.

About Boralex

At Boralex, we have been providing affordable renewable energy accessible to everyone for over 30 years. As a leader in the Canadian market and France's largest independent producer of onshore wind power, we also have facilities in the United States and development projects in the United Kingdom. Over the past five years, our installed capacity has more than doubled to over 3 GW. We are developing a portfolio of over 6 GW in wind, solar and storage projects, guided by our values and our corporate social responsibility (CSR) approach. Through profitable and sustainable growth, Boralex is actively participating in the fight against global warming. Thanks to our fearlessness, our discipline, our expertise and our diversity, we continue to be an industry leader. Boralex's shares are listed on the Toronto Stock Exchange under the ticker symbol BLX.

We seek Safe Harbor.