Boralex reports its best quarterly performance ever

Press Release

Montréal, Québec, May 11, 2016 – Boralex Inc. (”Boralex” or the “Corporation”) (TSX: BLX) reported its best quarterly performance ever with power production, revenues from energy sales and EBITDA(A) reaching historical highs. As a result, the Corporation generated net earnings attributable to shareholders of $20.6 million or $0.32 per share (basic). Besides the contribution of the eight new sites commissioned in 2015, quarterly results were driven by better wind conditions in France and in Ontario, improved water flow conditions at hydroelectric power stations in the United States and the strengthening of the euro and the U.S. dollar.

“Beyond these excellent results, we will continue to develop our pipeline and execute our projects rigorously. We’re also proud of the faith demonstrated by the financial community in Boralex and its outlook. The enhanced financial flexibility stemming from the recent refinancing arrangements will also help achieve the objective of growing our current installed capacity to 1,650 MW, a growth of more than 50% by the end of 2020,” commented Patrick Lemaire, President and Chief Executive Officer of Boralex at the release of the financial results.

Boralex also announced two new wind power projects in Canada, namely Port Ryerse in Ontario and Moose Lake in British Columbia. Construction on the 10 MW Port Ryerse project with a 20-year contract with IESO will begin during the second quarter of 2016. Its construction will require investments of approximately $38 million and Boralex estimates its annual EBITDA(A) at about $3.5 million. Commissioning is slated for the fourth quarter of 2016. Construction on the 15 MW Moose Lake project with a 40-year contract with BC Hydro will begin during the third quarter of 2016. Its construction will require investments of approximately $70 million and Boralex estimates its annual EBITDA(A) at about $5.0 million. Commissioning is slated for the end of 2017.

• These amounts are adjusted under proportionate consolidation and are non-IFRS measures. See the

Reconciliations between IFRS and Proportionate Consolidation and Non-IFRS Measures sections in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).

• EBITDA(A) consists of earnings before interest, taxes, amortization and depreciation, adjusted to include other items. For more details, see the Non-IFRS Measures section in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).

• This is a non-IFRS measure. For more details see the Non-IFRS Measures section in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).

For the quarter ended March 31, 2016, the Corporation recorded a 46% increase in revenues from energy sales to $106.0 million (or 34% to $122.4 million on a proportionate consolidation basis), with EBITDA(A) growing by 55% to $80.0 million (or by 45% to 90.4 million on a proportionate consolidation basis) and the EBITDA(A) margin increasing to 75% from 71% in 2015 (or to 74% from 68% on a proportionate consolidation basis).

Boralex’s cash flows from operations amounted to $59.6 million ($69.9 million on a proportionate consolidation basis), compared with $40.2 million ($42.8 million on a proportionate consolidation basis) for the three-month period ended March 31, 2015. Lastly, net earnings attributable to shareholders of Boralex stood at $20.6 million ($0.32 per share (basic)) compared with $5.3 million ($0.11 per share (basic)) in 2015. The net earnings are the same under proportionate consolidation.

In light of the steady growth in its results since the introduction of a dividend in early 2014 as well as its confidence regarding the future, in February 2016, the Board of Directors of Boralex authorized a 7.7% increase in the annual dividend to $0.56 per share. Accordingly, a dividend of $0.14 per share will be paid on June 15, 2016 to shareholders of record at the close of business on May 31, 2016.

Boralex also completed during the second quarter two large transactions that will significantly increase its financial flexibility. First, Boralex and its partners refinanced, under advantageous conditions, the Seigneurie de Beaupré Wind Farms 2 and 3, paving the way for the payment of a special distribution in the amount of $40 million to each of its partners during the second quarter of 2016. Second, Boralex renegotiated the refinancing of the $175 million revolving credit facility maturing in June 2018 by replacing it with a new agreement with an initial term of four years (April 2020) in the total amount of $360 million and including a $60 million letter of credit facility guaranteed by Export Development Canada (EDC).

Outlook

Fiscal 2016 will see solid growth in Boralex’s wind power segment operating results, as shown by the first quarter results. This growth will come largely from the full contribution of wind farms totalling 146 MW which began operations in 2015, of which 113 MW were commissioned in the fourth quarter. In addition, although they will only make a partial contribution to 2016 results, three other wind farms totalling 36 MW will also be commissioned during 2016, namely Touvent, Plateau de Savernat and Port Ryerse. Subject to the achievement of certain conditions, Boralex could also get a 25% economic interest in the 230 MW Niagara Region Wind Farm project in Ontario, whose commissioning is slated for the end of 2016.

Regarding development projects, besides the commissioning of these three sites, the coming year will above all be dedicated to the financing and construction of certain sites that are part of the 350 MW portfolio of projects acquired in France at the very end of fiscal 2015. The Corporation estimates that from this major project pipeline, over 150 MW could be commissioned in 2017 and 2018. Of this capacity, 79 MW is ready to build and construction of 57 MW of projects will begin in the second quarter of 2016 with commissioning slated for the second half of 2017. All these projects are all covered by long-term contracts with EDF (Électricité de France). The future plans do not include acquisition opportunities of sites in operation or at an advanced stage of development that could materialize in the meantime.

About Boralex

Boralex develops, builds and operates renewable energy power facilities in Canada, France 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 sustained growth by leveraging the expertise and diversification developed over the past 25 years.

Boralex’s shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB.A, respectively. More information is available at www.boralex.com or www.sedar.com.

Non-IFRS measures

The interim report contains a “Non-IFRS Measures” section. In order to assess the performance of its assets and reporting segments, Boralex uses EBITDA(A) and cash flows from operations as performance measures under IFRS and proportionate consolidation. EBITDA(A) represents of earnings before interest, taxes, depreciation and amortization, adjusted to include other items. Cash flows from operations are equal to net cash flows related to operating activities before change in non-cash items related to operating activities.

Management believes that these measures are widely accepted financial indicators used by investors to assess the operational performance of a company and its ability to generate cash through operations. These non-IFRS measures are derived primarily from the unaudited interim consolidated financial statements, but do not have a standardized meaning under IFRS; accordingly, they may not be comparable to similarly named measures used by other companies

Proportionate consolidation

The interim report also contains a section entitled, “Reconciliations between IFRS and Proportionate Consolidation,” in which the results of Joint Ventures 50% owned by Boralex are treated as if they were proportionately consolidated instead of being accounted for using the equity method as required by IFRS. Under proportionate consolidation, which is no longer permitted in accordance with IFRS, the items Interests in the Joint Ventures and Share in earnings of the Joint

Ventures are eliminated and replaced by Boralex’s share (50%) in all items in the financial statements (revenues, expenses, assets and liabilities). Since the information that Boralex uses to perform internal analyses and make strategic and operating decisions is compiled on a proportionate consolidation basis, management has considered it relevant to include the “Proportionate Consolidation” section to make it easier for investors to understand the concrete impacts of decisions made by the Corporation. Accordingly, tables included in this section reconcile IFRS data with data presented on a proportionate consolidation basis.

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For more information :

Media
Julie Cusson
Director, Public Affairs & Communications
Boralex inc.
(514) 985-1353
julie.cusson@boralex.com

Investors
Marc Jasmin
Investor Relations
Boralex inc.
(514) 284-9868
marc.jasmin@boralex.com

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