Mr. Michel Letellier reports

INNERGEX UPDATES ITS CAPITAL ALLOCATION STRATEGY

Innergex Renewable Energy Inc.'s board of directors has approved an update to its capital allocation strategy, specifically as it pertains to its dividend to support its long-term growth objectives. The change will be applicable to the next dividend payment on April 15, 2024, to shareholders of record on March 28, 2024.

The updated capital allocation strategy, which recalibrates the dividend and introduces a new payout ratio target range, will prioritize a self-financed model, increase financial flexibility and allow for additional growth investments in greenfield projects. The global renewable energy sector, particularly in the corporation's core markets, is offering an unprecedented number of opportunities driven by growing energy demand and decarbonization trends. Innergex's significant competitive advantages, including its record of community partnerships, will allow the corporation to execute on its balanced growth strategy. This strategy consists of maintaining a sustainable pace of accretive development, focusing on core markets and optimizing returns on operating assets.

With its new dividend payout ratio target range of 30 per cent to 50 per cent of free cash flow and its revised annual dividend for 2024 of 36 cents per common share, Innergex expects to free up approximately $75-million annually to support its growth ambitions.

Michel Letellier, president and chief executive officer, commented: "Our well-developed capabilities in hydro, wind, solar and battery energy storage technologies, combined with our long-term experience efficiently operating renewable energy assets, will enable us to continue to achieve organic growth in our markets. We are extremely proud of our global diversified portfolio of high-quality assets which underpins our long-term cash flow profile and supports our balance sheet. Looking ahead, Innergex is excited about the accelerating path of decarbonization and to capitalize on these rapidly expanding opportunities. It is imperative for Innergex to ensure that its capital allocation priorities are strategically aligned with its ambitions to generate sustainable long-term returns for its shareholders. At this time and with an eye to the future, we have pro-actively decided to pivot our strategy toward accelerated growth by unlocking capital to support greenfield development opportunities. Innergex has a robust development portfolio of over 10 GW and will remain disciplined in directing the additional capital toward projects that meet our risk-adjusted return criteria."

Key highlights

• Calibrating Innergex's target dividend payout ratio to 30 per cent to 50 per cent of free cash flow to support its long-term growth objectives;
• Based on the annual dividend for 2024 of 36 cents per common share, the corporation expects to free up approximately $75-million annually for reinvestment purposes;
• Increasing investments in greenfield development and prioritizing organic growth in Innergex's four markets, with specific focus on North America;
• Capital allocation choices designed to enable self-financing of organic investments while delivering sustainable growth.

Conference call and webcast

Innergex president and chief executive officer Michel Letellier and chief financial officer Jean Trudel will provide additional details of the corporation's capital allocation strategy as part of the previously scheduled fourth quarter and fiscal year 2023 earnings conference call and webcast on Thursday, Feb. 22, 2024, at 9 a.m. ET. Investors and financial analysts are invited to access the conference by dialling 1-888-390-0605 or 416-764-8609 or the corporation's website. Journalists, as well as the public, can access this conference call via a listen-only mode. A replay of the conference call will be available after the event on the corporation's website.

About Innergex Renewable Energy Inc.

For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity, which led to Innergex being recognized as Canada's best corporate citizens in 2023 by Corporate Knights. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile, and manages a large portfolio of high-quality assets currently consisting of interests in 87 operating facilities with an aggregate net installed capacity of 3,600 megawatts (gross 4,234 MW) and an energy storage capacity of 409 MWh (megawatt-hours), including 41 hydroelectric facilities, 35 wind facilities, nine solar facilities and two battery energy storage facilities. Innergex also holds interests in 10 projects under development with a net installed capacity of 728 MW (gross 826 MW) and an energy storage capacity of 295 MWh, four of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 10,071 MW. Its approach to building shareholder value is to generate sustainable cash flows and provide an attractive risk-adjusted return on invested capital.

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