2018 annual and fourth-quarter results: Record growth in installed capacity and dividend of Boralex

PRESS RELEASE

For immediate release

Record growth in installed capacity and dividend of Boralex in 2018

Release of 2018 annual and fourth-quarter results

• • Increase of 486 MW or 33% in installed capacity in a single fiscal year and target of 2,000 MW in installed capacity expected to be reached in 2019 instead of 2020.

• • Improved operating results driven primarily by newly acquired and commissioned wind farms.

  • o Revenues from energy sales of $471 million ($549 million)1, up 14% (16%) compared with 2017.

  • o EBITDA(A) of $298 million ($354 million), up 8% (11%) compared with fiscal 2017.

• • 10% increase in declared dividends since the beginning of the fiscal year reflecting growth prospects and an expanded operating base.

• • Production of approximately 3,415 GWh of renewable energy which contributed to reducing greenhouse gas emissions. The equivalent power generated from fossil fuels would have meant 214,000 tonnes of CO2 emissions.

Montréal, March 1, 2019 - For the fiscal year ended December 31, 2018, Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) once again announces improved operating results compared with the previous year. Growth in revenues from energy sales and EBITDA(A) was largely driven by contributions from newly acquired or commissioned power stations. As a result, expansion in the operating base offset the decline in production at Canadian and U.S. hydroelectric power stations, less favourable wind conditions in France in the second and third quarters and increases in development and other expenses related to the expansion.

"Over the past year, we've made tremendous progress implementing our growth strategy. For instance, we grew installed capacity by 486 MW-a record for a single fiscal year. We closed two large-scale acquisitions whose integration will yield significant operating synergies in Québec and France. With the projects under construction, we expect to achieve our 2,000 MW target in 2019, one year ahead of schedule," said Patrick Lemaire, Boralex's President and Chief Executive Officer

1 The figures in brackets show the results on a Combined basis in comparison to those disclosed in accordance with IFRS. See "Combined - Non-IFRS measure" below.

"Given a growth environment in which we will achieve our objective ahead of schedule and rapid change and growth in development opportunities as well as renewable energy technologies, we've embarked on our strategic planning update. Once planning is complete, our new targets will be unveiled, building on the business model underpinning our success to date," said Mr. Lemaire.

Mr. Lemaire added that the wind power segment is poised to remain a key growth vector for Boralex. "While it's true wind conditions fell shy of expectations in 2018, the experts believe those shortfalls to be within historical variances, not to mention that they narrowed in the last few months of the year. As a result, we're confident our French wind farm network will continue to strengthen the Corporation's financial performance in the medium and long term, especially given the constant growth in development opportunities and our expertise in the area."

Fiscal 2018

Operational highlights

In fiscal 2018, Boralex generated 3,415 GWh (4,152 GWh) of electricity, up 9% (13%) from 3,129 GWh (3,675 GWh) in fiscal 2017. Excluding contributions from newly acquired or commissioned power stations, production at existing power stations fell 4% in fiscal 2018 compared with last year. The decline mainly came from Canadian and U.S. hydroelectric power stations, where aggregate production was down 11%.

Production at existing wind farms in France and Canada was relatively unchanged from a year earlier, where stronger performance in the first quarter and a return to normal wind conditions in the fourth quarter offset unfavourable differences from the third quarter.

Financial highlights

Years ended December 31
(in millions of dollars, unless otherwise specified)	2018	2017	2018	2017
	IFRS		Combined(1)
Production (GWh)(2) Revenues from energy sales EBITDA(A)(3) EBITDA(A) margin (%) Net earnings (loss) Net earnings (loss) attributable to shareholders Per share - basic and diluted Net cash flows related to operating activities Cash flows from operations(4)	3,415 471 298 63 (44) (36) (0.45) 202 192	3,129 414 276 67 10 22 0.29 145 195	4,152	3,675
			549	473
			354	319
			64 (44) (36) (0.45)	67 10 22 0.29
			235 208	162 210

• (1) These amounts are adjusted on a Combined basis and are non-IFRS measures. See the Non-IFRS measures section in the Annual Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).

• (2) Production (GWh) including the 168 GWh power limitation at the Niagara Region Wind Farm, 153 GWh of which was covered by compensation paid to Boralex, would have totalled 3,583 GWh for the year ended December 31, 2018 (4,320 GWh on a Combined basis).

• (3) 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 Annual Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).

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

For fiscal 2018, Boralex generated revenues from energy sales of $471 million ($549 million), up 14% (16%) compared with 2017. EBITDA(A) amounted to $298 million ($354 million) up 8% (11%) from $276 million ($319 million) a year ago. Excluding $9 million in non-recurring items during the year 2018 mainly consisting of outlays for development rights and non-production penalties, EBITDA(A) for fiscal 2018 would have been $307 million ($363 million).

Cash flows from operations totalled $192 million ($208 million) for fiscal 2018, down slightly from $195 million ($210) for the previous year.

For fiscal 2018, the Corporation reported a net loss attributable to shareholders of $36 million ($36 million) or $0.45 ($0.45) per share (basic and diluted), compared with net earnings attributable to shareholders of $22 million ($22 million) or $0.29 ($0.29) per share (basic and diluted) for the previous year. The unfavourable difference of $58 million year over year resulted primarily from increases of $44 million in amortization expense, $19 million in financial expenses, $5 million in acquisition costs, and $15 million in impairment losses on property, plant and equipment and intangible assets, partially offset by increases of $22 million in EBITDA(A) and $6 million in tax recovery.

Fourth quarter of 2018

• • Five French wind farms commissioned with a capacity of 89 MW.

• • Improved wind conditions in France, with speeds getting closer to long-term averages during the quarter.

• • Improved operating results driven primarily by newly acquired and commissioned power stations.

  • o Revenues from energy sales of $145 million ($178 million)2, up 13% (21%)

    compared with 2017.

  • o EBITDA(A) of $98 million ($121 million), up 5% (17%) compared with 2017.

  • o Cash flows from operations of $71 million ($84 million), up 4% (5%)

    compared with 2017.

• • Results affected by increases in development costs and other expansion-related expenses, as well as to a number of non-recurring items for the quarter.

2 The figures in brackets show the results on a Combined basis in comparison to those disclosed in accordance with IFRS. See "Combined - Non-IFRS measure" below.

Operational highlights

In the fourth quarter of 2018, Boralex generated 1,065 GWh (1,389 GWh) of electricity compared with 871 GWh (1,042 GWh) for the same quarter of 2017. Excluding contributions from newly acquired and commissioned power stations, production at existing power stations remained relatively stable between the periods, particularly as a result of a return of weather conditions closer to seasonal norms at existing wind farms.

Financial highlights

Three-month periods ended December 31
(in millions of dollars, unless otherwise specified)	2018	2017	2018	2017
	IFRS		Combined(1)
Production (GWh)(2) Revenues from energy sales EBITDA(A)(3) EBITDA(A) margin (%) Net earnings Net earnings attributable to shareholders Per share - basic Per share - diluted Net cash flows related to operating activities Cash flows from operations(4)	1,065 145 98 68 6 6 0.06 0.06 23 71	871 129 93 72 28 26 0.34 0.32 17 69	1,389	1,042
			178 121 68 6 6 0.06 0.06	147 104 70 28 26 0.34 0.32
			52	27
			84	80

Notes (1), (3) and (4) are identical to those in the table above.

(2) Production (GWh) including the 41 GWh power limitation at the Niagara Region Wind Farm, which was covered by compensation paid to Boralex, would have totalled 1,106 GWh for the three-month period ended December 31, 2018 (1,430 GWh on a Combined basis).

For the fourth quarter of 2018, Boralex generated revenues from energy sales of $145 million ($178 million), up 13% (21%) compared with the same period in 2017. EBITDA(A) for the quarter totalled $98 million ($121 million), up 5% (17%) from $93 million ($104 million) for the same quarter of 2017. Excluding $7 million in non-recurring items recorded in the fourth quarter related to outlays for development rights and non-production penalties, EBITDA(A) would have been $105 million ($128 million).

Cash flows from operations totalled $71 million ($84 million) for the fourth quarter of 2018, a level comparable to the year-over-year result of $69 million ($80 million).

In light of the foregoing, the Corporation reported net earnings attributable to shareholders amounting to $6 million ($6 million) or $0.06 ($0.06) per share (basic and diluted) for the fourth quarter of 2018, compared with net earnings attributable to shareholders of $26 million ($26 million) or $0.34 ($0.34) per share (basic) and $0.32 ($0.32) per share (diluted) for the same period of 2017. In spite of a $5 million increase in EBITDA(A), the year-over-year decline resulted primarily in a $15 million increase in amortization expense, a $6 million increase in financial expenses and in an $8 million decrease in tax recovery.

Outlook

Projects under construction or ready to build are set to contribute of 126 MW of additional capacity in fiscal 2019 and 2020, for a total installed capacity of 2,068 MW by the end of 2020, without counting the additional projects that may emerge from the Corporation's pipeline.

To pursue its growth, Boralex also has a portfolio of potential projects at various stages of development totalling over 1,000 MW in France and a 50% participation in a 300 MW portfolio in Scotland.

In France, in light of its long-term presence and deep knowledge of this market, the Corporation has numerous strengths to capitalize on the favourable environment in developing renewable energy, particularly wind power. The Corporation will actively participate in the tendering system, under which an installed capacity of 3,400 MW in onshore wind power will be awarded under 20-year contracts by the end of 2020.

Dividend declaration

The Corporation's Board of Directors has authorized and declared a quarterly dividend of $0.1650 per common share to be paid on March 15, 2019 to shareholders of record at the close of business on February 28, 2018. Boralex has designated this dividend as an eligible dividend within the meaning of section 89.14 of the Income Tax Act (Canada) and all provisions of provincial laws applicable to eligible dividends.

Note that following the signing of the agreement to acquire Invenergy's interests in five wind farms in Québec and given the confidence inspired by the outlook for the Corporation, Boralex's Board of Directors had conditionally authorized, upon closing of the transaction, a increase in the annual dividend of 4.8% to $0.66 per share from $0.63 per share (to $0.1650 per share from $0.1575 per share on a quarterly basis). With this second increase since the beginning of fiscal 2018, effective on September 14, 2018, declared dividends increased by a total of 10% in 2018. Boralex is thus maintaining its dividend policy which ultimately aims to distribute from 40% to 60% of its discretionary cash flows.

About Boralex

Boralex develops, builds and operates renewable energy power facilities in Canada, France, the United Kingdom 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 sustainable 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 atwww.boralex.com orwww.sedar.com.Follow us onFacebook,LinkedIn andTwitter.

Caution regarding forward-looking statements

Some of the statements contained in this press release, including those regarding future results and performance, 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. The main factors that could lead to a material difference between the Corporation's actual results and the forward-looking financial information or expectations set forth in the forward-looking statements include, but are not limited to, the general impact of economic conditions, currency fluctuations, volatility in energy selling prices, the Corporation's financing capacity, competition, changes in general market conditions, the regulations governing the industry and raw material price increases and availability, regulatory disputes and other issues related to projects in operation or under development, well as certain other factors described in the documents filed by the Corporation with the different securities commissions.