Mr. Michel Letellier reports

INNERGEX REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 RESULTS

Innergex Renewable Energy Inc. has released financial results for the fourth quarter and fiscal year ended Dec. 31, 2023.

Michel Letellier, president and chief executive officer, said: "We are very pleased to deliver better results for the fourth quarter and fiscal year 2023, while also progressing on our strategic growth initiatives. During the fourth quarter, we commissioned our 50-megawatt/250-megawatt-hour (five hours) Salvador battery energy storage facility in Chile and started delivering energy at the Innavik hydro facility, providing further portfolio diversification and allowing us to generate attractive risk-adjusted returns on invested capital.

"We took pro-active steps to strengthen our financial position and ensure that we have the necessary financial flexibility required to execute our growth strategy. With the financing for the Boswell Springs project, our partnership with Credit Agricole Assurances in France and our financing of three unlevered hydro assets, we are well positioned to continue to invest in greenfield development across our key markets. While making progress with our construction projects, we continue to win new project awards, which serve to validate our value proposition and ultimately support our growth trajectory."

Mr. Letellier commented: "At this time and with our 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 gigawatts and will remain disciplined in directing the additional capital toward projects that meet our risk-adjusted return objectives."

2025 targets and 2024 guidance

As a result of recent macroeconomic trends, Innergex is withdrawing its previously provided 2025 financial targets.

Innergex is establishing guidance with full-year 2024 adjusted earnings before interest, taxes, depreciation and amortization proportionately expected to be in the range of $725.0-million to $775.0-million, and full-year 2024 free cash flow per share expected to be in the range of 70 cents to 85 cents. These projections assume production at 100-per-cent LTA target at our operating facilities, as well as 95-per-cent asset availability.

Jean Trudel, chief financial officer, commented: "Innergex is well positioned to benefit from rapidly increasing demand for renewable energy, and our portfolio diversification strategy should help mitigate resource variability over the long term. We maintain an optimistic outlook as we are managing our operations and development efforts to optimize performance. We remain focused on delivering sustainable and profitable growth to create value on a per-share basis."

Subsequent events

On Jan. 26, 2024, Innergex announced that it was selected by Hydro-Quebec for two projects: a 100-megawatt community wind project in partnership with the regional county municipality of Lotbiniere and the Abenaki councils of Odanak and Wolinak, and a 300-megawatt community wind project led by the Innu Council of Pessamit, with the participation of the regional county municipality of Manicouagan. Commercial operation is scheduled for 2028 and 2029, respectively. The power purchase agreements, to be signed in 2024 with Hydro-Quebec, are expected to be structured as 30-year take-or-pay contracts, indexed to a predefined percentage of the Consumer Price Index.

Dividend declaration

On Feb. 21, 2024, the board of directors approved an update to its capital allocation strategy and revised its annual dividend for 2024 to 36 cents per common share to support its growth ambitions.

Dividends will be paid by the corporation on April 15, 2024.

Appointment to the board of directors

Innergex is pleased to announce the appointment of Marc-Andre Aube on its board of directors, effective Dec. 1, 2023. Mr. Aube is the president and chief executive officer of Walter Surface Technologies, a Canadian company providing innovative solutions for the global metal working industry. The company was founded in 1952 and is established in seven countries throughout North America, South America and Europe. Prior to joining Walter Surface Technologies, Mr. Aube was president and chief operating officer of GardaWorld Security Solutions -- Canada. He also cumulates many years of experience in various industry sectors, including chemicals with Nalco Canada, oil and gas with Petro-Canada, and finance with the Caisse de depot et placement du Quebec and Scotia Capital Inc. Mr. Aube has completed his CFA designation, and holds an MBA from HEC Montreal and an engineering degree from Ecole Polytechnique de Montreal.

"We are pleased to welcome Mr. Aube to our board of directors," said Daniel Lafrance, chairman of the board of directors of Innergex. "We are confident that his impressive professional background, his deep management knowledge of multinational companies, and his expertise in financing and investments activities will enhance the overall proficiency of the board. We are confident in his ability to contribute significantly to the discussions in the interest of our shareholders."

Additional information

Innergex's fourth quarter 2023 and year-end 2023 audited consolidated financial statements, the notes thereto, and management's discussion and analysis can be obtained on SEDAR+ and in the investors section of the corporation's website.

Conference call and webcast

The corporation will hold a conference call and webcast on Thursday, Feb. 22, 2024, at 9 a.m. EST. Investors and financial analysts are invited to listen to the conference by dialling 1-888-390-0605 or 416-764-8609 or visiting the corporation's website. Journalists, as well as the public, can listen to this conference call through listen mode only. 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 citizen 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 megawatts) and an energy storage capacity of 409 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 megawatts (gross 826 megawatts) and an energy storage capacity of 295 megawatt-hours, 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 megawatts. 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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