Q4 2023 Innergex Renewable Energy Inc Earnings Call

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Good morning, ladies and gentlemen, thank you for standing by welcome to Interjects renewable energy 2023 fourth quarter and year end results conference call and webcast.

Operator: Good morning, ladies and gentlemen. Thank you for standing by.

Operator: Welcome to Innergex Renewable Energy's 2023 4th quarter and year-end results conference call and webcast. Bienvenue à la conférence téléphonique et à la webdéputation des résultats du quatrième trimestre et de l'exercice 2023 d'Innergex Énergie renouvelable. At this time, all participants are on the phone, and the internet is in listen-only mode.

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<unk> at this time all participants are on the phone and Internet are in listen only mode.

Operator: Following the presentation, we will conduct a question and answer session for analysts and institutional investors. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties here at the conference, please press star followed by zero for operator assistance at any time.

When the presentation, we will conduct a question and answer session for analysts and institutional investors and instructions will be provided at that time for you to queue up for questions.

If anyone has any difficulties here in the conference. Please press star followed by year for the operator assistance at any time I.

Operator: I would like to remind everyone that this conference call is being recorded. I will now turn the conference over to Najee Bedoun, Director of Investor Relations. Please go ahead.

I would like to remind everyone that this conference call is being recorded I will now turn the conference over to <unk> <unk> <unk>.

Director Investor Relations. Please go ahead.

Hello, everyone and thank you for joining us today.

Najee Bedoun: Hello, everyone, and thank you for joining us today. I'd like to specify that this conference will be held in English. Members of the media are invited to ask their questions by phone after this call. A presentation supporting today's discussion is available as we speak on the homepage of our website at www.innergex.com. This call contains forward-looking statements within the meaning of applicable securities laws. Although the Corporation believes that the expectations and assumptions on which forward-looking statements are based are reasonable... Thank you. Forward-looking information contained herein is made as of the date of this call, and the corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of events or circumstances occurring after the date hereof, unless so required by law. During this call, we will refer to financial measures that are not recognized according to international financial reporting standards.

I'd like to specify that this conference will be held in English members of the media are invited to other questions by phone after this call.

Presentation supporting today's discussion is available as we speak on the homepage with our website at Www Dot <unk> Dot com.

This call contains forward looking statements within the meaning of the applicable securities laws.

Although the corporation believes that the expectations and assumptions on which forward looking statements are based.

Unreasonable assumptions.

Assumptions under the current circumstances listeners are cautioned not to rely on duty on these forward looking statements is no assurance can be given that it will prove to be correct.

Forward looking information contained herein is made at the date of this call and the corporation does not undertake any obligation to update or revised any forward looking information whether as a result of events or circumstances occurring after the date Europe unless are required by law.

During this call we will refer to financial measures that are not recognized according to international financial reporting standards.

Michel Letelier: Please refer to the non-IFRS measure section of the MD&A for more information. On today's call, we will discuss our updated capital allocation strategy, which we announced via a separate press release yesterday evening, our Q4 and fiscal year 2023 results, and our 2024 guidance. Our speakers will be Michel Letelier, President and Chief Executive Officer, and Jean Trudel, Chief Financial Officer. I will now turn the conference over to Monsieur Le Deliaire. Thank you, Nanjie, and good morning.

Please refer to the non Ifr's measures section of the MBNA for more information.

On today's call, we will discuss our updated capital allocation strategy, which we announced via a separate press release yesterday evening.

Two four in fiscal year 2023 results.

R 2024 guidance.

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Chief Financial Officer, I will now turn the conference over to Mister <unk>.

Thank you and <unk> and good morning, Thank you for joining us.

Michel Letelier: Thank you for joining us. As Nancy mentioned yesterday evening, in addition to our earnings release, we announced an updated capital allocation strategy. After much consideration and comprehensive analysis, we have made the decision to focus our capital allocation strategy to support our growth. Specifically, we are establishing a target dividend payout ratio between 30 and 50 percent. Jean will provide details in this section.

As Nancy mentioned yesterday evening. In addition to our earnings release, we announced an updated capital location strategy.

After much consideration and comprehensive analyses, we have made the decision to focus our capital location strategy to support our growth.

Specifically, we are establishing a target dividend payout ratio between 30, and 50% shall we will provide the daily midsection.

Michel Letelier: Two key messages I would like you to take away are... We are shifting our focus to execute on significant greenfield development opportunities that we see ahead, which I will detail in a moment. As a result, we will be in a strong position to primarily sell funds for our organic growth going forward.

<unk> I would like you to take away. Our we are shifting our focus to execute on significant Greenfield development opportunity that we see ahead, which I will detail in a moment.

We will be in a strong position to prime leaf cell phones organic growth going forward.

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We are providing our strategy tour accidentally aggravate grow by updating our capital R location policy.

Michel Letelier: We are providing our strategy toward accelerated growth by updating our capital allocation policy. We are positioning ourselves to seize the unprecedented growth opportunity in our industry. We have never seen this level of growth for renewable energy development in the past. The strong market growth we are experiencing in our core market is creating a window of opportunity to capture new capacity driven by both government and corporate decarbonization goals. This is due to the deficit in energy needs and the increasing demand for clean power.

We are positioning ourselves to start to seize the on president drove opportunity in our industry.

We have never seen this level of growth for reading.

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They have not meant in the past.

The strong market growth, we are experiencing in our core market is creating a window of opportunity to capture new capacity.

Even by both government and corporate Decommunization goals.

This is due to the this is it an energy needs an increasing demand for clean power, we see a substantial run away or senior senior second and durable growth.

Michel Letelier: We see a substantial runway for significant and durable growth ahead. We are excited about the future of Innergex as we have multiple ways we can win in our market by pursuing profitable projects and delivering consistent free cash flow per share growth. We believe we can create value and deliver strong returns for our shareholders. We believe we are well positioned as a leading, diversified, global renewable energy IPP with scale. Our diversification and unique portfolio characteristics provide us with a solid foundation to execute on strong growth that we see ahead in our four core markets, which are Canada, the US, Chile, and France. Given our expertise, we are uniquely positioned to develop projects across all our existing technologies of hydro, wind, solar, and battery energy storage. Overall, our exposure to low-risk hydro markets positions us well to capture new opportunities while remaining a North American business. That's right.

We are excited about the future it'd be an orange X as we have multiple ways, we can win in our market.

By pursuing profitable project and deliver inconsistent free cash flow per share growth. We believe we can create value and deliver strong return for our shareholders.

Next line.

We believe we are will position as a leading diversified global reasonable I P. P width scale.

Our diversification and unique portfolio characteristic.

To us with a solid foundation to execute on strong growth that we see ahead, an hour for court market, which is Canada U S chilly and friends.

Given our expertise we are uniquely positioned to develop project across all our existing technology.

Wind solar and battery energy storage.

Overall, our exposure to low risk I grow market position us well to capture new opportunities while remaining in North American business.

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We want to take a moment to clearly state our key strength Athene rejects which will continue to support our success going forward.

Michel Letelier: We want to take a moment to clearly state our key strengths at Innergex, which will continue to support our success going forward. We have a well-seasoned leadership team with deep industry and market knowledge. It possesses the expertise of a full life cycle project developer that allows us to originate, develop, finance, and commission projects across various technologies and geographies, and efficiently execute projects of all types and sizes in our varied geographies. Our experience in forging enduring partnerships with First Nations and local communities is a unique advantage that makes us a leader in our space.

We have a world season leadership team with deep industry and market knowledge pluses the expertise of a full lifecycle projected lockhart.

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And efficiently execute project of all type and size in our garden.

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Our experience in forging enduring partnership with first nations and local community is at you and Nick advantage that make us leader in our space.

Michel Letelier: We have repeatedly been chosen as a partner of choice for developing and operating clean energy projects. We have developed a strong track record in this domain, which will remain critical to our success going forward. We are leveraging our experience working alongside partners to develop projects while respecting their rights and advancing economic reconciliation.

We have recently.

Been chosen as partner of choice for developing and operating clean energy project.

We have developed a strong track record does domain, which will remain critical to our success going forward.

We are living <unk>, our experience working alongside partners to develop project.

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We are leveraging our longstanding approach balancing.

Michel Letelier: We are leveraging our long-standing approach of balancing people, the planet, and prosperity by proposing projects that are beneficial to all. We also have extensive experience as an Assets Authority, self-operate, most of our approach. We have the know-how to efficiently operate our assets and the ability to quickly correct functional issues when they arise. Core to our expertise is also our top-tier portfolio of hydro hazards. This perpetual asset class provides long-term cash flow, supports our balance sheet, and distinguishes Innergex as a leading power producer...

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The proposed project that are beneficial to hall.

We also have extensive experience as asset so very true.

We self operate most of our project we have to know how to efficiently Oh 40 dollar asset and the ability to quickly correct.

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Gore to our expertise is also our top tier portfolio of hot hydro assets.

This perpetual asset class provide longterm cash flow support of our balance sheet and distinguish interject sensor lead in power producer.

Next line.

Our balanced growth strategy his focus on the Oregon.

Michel Letelier: Our balanced growth strategy is focused on organic opportunities and is based on three key areas. First, we want to continue to develop our creative projects at a sustainable pace. We will ramp up our development activity, primarily focusing on wind and solar assets in our core market, as well as complementary storage capacity. Hydro development also remains attractive as we are one of the few players who have the expertise to capitalize on future opportunities in this sector over time. www.innergex.com. We are going to remain focused on our key mark. We are prioritizing our development efforts in Canada and in the U.S., where we have established operating assets, a development portfolio, and significant operating experience. We see strong development potential, a favorable environment for construction and development, and strong government policy support.

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First we want to continue to develop at creative project at that sustainable pace.

Will ramp up our did lockman activities.

Finally, focusing on wind and solar assets not work for market.

As well as complimentary storage capacity.

Hydro development also remain attractive.

We are one of the few player who have the expertise to capitalize on the future of opportunities in the sector overtime.

Second.

We are going to remain focused on our key markets.

We are prioritizing hour they've lockman, the port in Canada, and the U S, where we have establish operating asset development portfolio and significant operating experience.

We see strong development potential favorable on for them and poor construction and development and strong government policies support.

Michel Letelier: We also continue to capture opportunities in France and in Chile, where we have established great development. Third, we will focus on optimizing value for our existing portfolio. This active portfolio management approach allows us to renew expiring PPAs and potentially repower certain assets. This will extend the cash flow profile of our existing portfolio and will also allow us to refinance certain assets, hence giving us more flexibility. Our team will find and secure profitable investment opportunities that will enhance our current portfolio and contribute to delivering additional value to our shareholders. Slide. Now we'll detail our approach to each of our key marks. Canada, our home base, is a large, rapidly growing, and highly attractive market for renewable energy. We have all the ingredients to be successful in Canada, like we have been in the past.

We also continue to capture opportunities in French and in Chile, where we have established a great development teams.

Church, we will focus on optimizing value for our existing portfolio.

<unk> portfolio management approach, although asked to renew expiring P P a and potentially repowerings circumstances.

Will extend the cash flow profile of our existing portfolio and will also Allah wants to refinance certain assets and giving us more flexibility.

Our team will find and seek your profitable investment opportunities that will enhance our current portfolio and contribute to delivering additional value to our shareholders.

Next slide.

Now will depending on our approach to each of our key market Canada.

Canada our homebase.

Represent a large rapidly growing and highly attractive market for mobile energy.

We have all the ingredients to be successful in Canada like we did in the past.

Michel Letelier: We see tremendous growth opportunity in the country over the next 10 plus years, which will make this region the primary growth engine for energy. Our team is actively developing projects to be submitted in the upcoming RFP to secure profitable greenfield opportunities and capture this wave of growth. We have significant experience developing projects and are a market leader. We will leverage our expertise to capture growth, supported by our strong relationship with First Nations communities and utility costs. These elements will allow us to execute on significant opportunities in Canada, backed by long-term, high-quality off-take agreements. Additionally, several provinces have taken meaningful steps to plan new RFPs and increase overall procurement of renewable energy. Hydro-Quebec is leading the way with its ambitious 2035 action plan. British Columbia, Saskatchewan, and Ontario have also established impressive targets to further deploy renewable energy solutions.

We see tremendous growth opportunity in the country over the next 10 plus year.

Which will make this region the prime legal engine for theater checks.

Our team are actively they've logging project to be submitted an upcoming rfps.

To seek your profitable greenfield opportunity and captured this wave of growth.

We add significant experience they've lopping project.

Or a market leader.

We will never reach our expertise to capture grow support is Bowers strong relationship with first nation communities and utility costumers.

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Backed by Longterm high quality Offtake agreement.

Several provinces I've taken meaningful step to plan you are b and increase overall procurement all for renewable energy.

Go back is leading the way with its ambitious 2035 action plan.

Columbia, Saskatchewan and Ontario.

Also establish impressive target do further deployed renewable energy solutions.

Interjects owns an oprah asset in most of these regions.

Michel Letelier: Innergex owns and operates assets in most of these regions, positioning us for continued growth. In the U.S., we are a construction project in Wyoming and Hawaii, while also looking at compelling renewable energy opportunities in selected areas. The passage of IRA is driving increasing investment into renewable sectors. Our focus is optimizing our footprint to concentrate on high-potential areas where we can leverage our greenfield capability. Our development approach and learning experience will allow us to selectively pursue creative projects, including in the large corporate PPMR. The market in France and in Chile also features very attractive opportunities for Innergex.

Sending us for continued growth.

Next line.

In the U S, where construction project in Wyoming in Hawaii.

Also looking at compelling renewable energy opportunity and selected market.

The passage of irate is driven increasing investment need to renewable sector.

Our focus is optimizing our footprint to concentrate on high potential area, where we can leverage our greenfield capabilities.

Our department approach and learning experience will I lost a select Italy.

Creative project, including in the large corporate P. P a market.

The market in Trenton in Chile also feature very at tractive opportunities were ignored checks.

Michel Letelier: We intend to continue bringing the Greenfield Project to life in both markets. Dear Friends, our growth is supported by our new strategic long-term partner, Crédit Agricole, and the strong growth outlook in the market for wind, solar, and battery storage. Chile, our main strategy since we entered the market was to have a diversified portfolio that can respond to capacity and energy demands for both utility and corporate costs. We are in a strong position to offer 100% renewable energy production on a 24-7 basis from a diversified fleet of assets with a strategic market footprint. Our recently commissioned storage project, coupled with the upcoming COD of our second best facility, will help us manage generation requirements and curtailment, while also capturing a healthy capacity payment and arbitrage on the market. We also recently renewed our corporate BPA at the Pampa Elvira Thermal Solar Facility with Codelco, and we expect to be able to sign new off-date agreements with the strong Chilean mining industry.

We intend to continue bringing Greenfield project to life in both market.

Friends, our growth is supported by our new strategy longterm partner change that to each one and a strong growth outlook into market for wind solar and battery storage.

And chili our main strategy since we entered the market wash do have a diversified portfolio that can respond to cap on the city and the energy call for bulk utility.

Corporate cost of it.

We are in a strong position to offer 100 per cent of renewable energy production on a 24 seven basis from a diversified fleet of asset with a strategy market footprint.

Our recently.

<unk> storage project, coupled with the outcome and see with yoga or second this facility will.

Help us manage decoration requirement and curtailment.

Also capturing a healthy captain to the payment and arbitrage on the market price.

We also recently renew our corporate V. P. A at the <unk> terminal solar facility with Codelco, and we expect to be able to sign you off dates like agreement with the strong Chilean mining industry.

Our market this vacation all the walls to capture complimentary and accretive grow with a park Trinity while remaining disciplined in our projects election.

Michel Letelier: Our market diversification allows us to capture complementary and accretive growth opportunities while remaining disciplined in our project selection. We are very active in securing development opportunities. We have a large and diversified prospective portfolio of over 10,000 gigawatts globally, which provides us with the opportunity to be selective in capturing accurate growth. We will continue to expand this portfolio, supported by our highly experienced... I am extremely confident in our ability to execute on this plan, supported by our new capital allocation strategy. I will now ask John to elaborate on the financial aspect of our allotment. Thank you, Michel. Good morning, everyone.

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We are very active in securing the laughing the options, we have a large and diversified perspective portfolio over 10000 gigawatt globally.

Which provide us with opportunities to be selected in capturing accurate quote.

We will continue to expand this portfolio supported by our highly experienced team.

I am extremely confident in our ability to excuse on this plan.

Supported by our new capital Y location strategy.

I will now ask John to elaborate on financial aspect of our law hopeless.

Thank you Michelle and good morning, everyone's so at interjects.

Jean Trudel: So at Innergex, our approach is based on a multi-step framework with rigorous controls to manage all aspects of the development cycle. Our guiding principles on risk management help us to understand and mitigate risk from project origination and assessment all the way through commissioning and ongoing operation. Being a long-term asset owner and operator is a key part of our success in greenfield development, and this approach to organic growth is core to our core strategy. As for our overall investment proposal... It is based on three key pillars.

Our approach is based on a multi step framework with rigorous controls to manage all aspects of the development cycle, our guiding principles on risk management help us to understand and mitigate risk from project origination an assessment all the way through commissioning an ongoing operations.

Being a long term asset owner and operator is a key part of our success in Greenfield development.

This approach to Oregon, and quote as courts are of course tried to.

As for our overall investment proportion.

It is based on three key pillars, firstly double digit target returns, we target achieving double digit after tax delivered I ours on invested capital.

Jean Trudel: Firstly, double-digit target returns. We target achieving double-digit after-tax leveraged IRs on our invested capital. Secondly, sustainable free cash flow per share growth. We can best create shoulder value by focusing on self-funded organic growth at high returns. Although it takes time for upfront greenfield investments to translate into growth because of the funding lag in infrastructure projects.

Secondly, sustainable free cash flow per share quote, we can best create shoulder value by focusing on self funded Oregon and growth at high returns.

Although it takes time for upfront greenfield investments to translate into growth because of the funding lag and infrastructure projects. We are increasing our development activities to have a steady pace of project development and deployment overtime.

Jean Trudel: We are increasing our development activities to have a steady pace of project development deployment over time. This should support a sustained pace of long-term growth on a per share basis. And thirdly, a 30% to 50% dividend payout range.

This should support a sustained pace.

Growth on a per share basis.

And 30, 32 50 per cent dividend payout range, we are providing a knicks. Please it targets payout range within which we expect to continue rewarding our shoulders would it helps you dividend.

Jean Trudel: We are providing an explicit target payout range within which we expect to continue rewarding our shareholders with a healthy dividend. Furthermore, we believe that this range is aligned with our organic growth strategy and should allow us to have enough retained free cash flow to reinvest in the significant growth we see ahead of us. Our goal is not only to build megawatts but to execute on projects where we see the best risk-adjusted return potential and where we feel confident in successfully delivering projects with a margin of safety. We will focus on quality over quantity in the disciplined pursuit of projects that meet our strict risk-adjusted return criteria. Next slide, please.

Furthermore, we believe that this range is aligned with our organic growth strategy and should allow us to have enough retained pre castro to reinvest the significant vote. We see ahead of us.

Our goal is not only to build megabytes, but to execute on projects, where we see the best risk adjusted return potential and where we feel confident and successful you did it bring projects with a margin of safety.

We will focus on quality over quantity.

The discipline pursuit of projects that meet our strict risk adjusted return criteria.

Next slide.

We also want to take some time to discuss our balance sheet management principles, which are based on three factors. Firstly prioritizing non recourse project that this important funding tool not only allows us to manage project risks, but also optimize the cost of capital and is.

Jean Trudel: We also want to take some time to discuss our balance sheet management principles, which are based on three factors. Firstly, prioritizing non-recourse project debt. This important funding tool not only allows us to manage project risks but also optimizes the cost of capital and is backed by the quality of our long-term contracts. Secondly, a conservative debt service coverage and amortization. We maintain high levels of debt service coverage, and most of our project debt is amortized over the remaining life of our PPA contract. This conservative approach allows us to manage our debts in a prudent manner and aligns our debt repayments with our cash flow profile.

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We maintain high levels of debt service coverage.

Most of our project that is amortized over the remaining life of our P. P contracts.

This conservative approach allows us to manage our depth and a prudent manner and our lines are adept repayments, which with our cash flow profile.

Jean Trudel: This should allow us to capitalize on refinancing opportunities in our fleet as the amortization schedules of our hydro debt are well below the useful life of the asset. We have demonstrated our ability to do so in 2023, and we will do so again in 2024 with additional hydro refinancing. And thirdly, maintaining our investment rating, we remain committed to managing our corporate leverage to do so. Furthermore, we think it's important to discuss our leverage profile. Although it's easy to compare us to industry metrics at a high level, we believe that leverage should be based on a specific portfolio mix.

This should allow us to capitalize on refinancing Unfortunately teas and our feet.

Ah monetization schedules of our hydro that is well below the useful life of the assets. We have demonstrated our ability to do so in 2023, and we will do so again in 20th when you pour it with additional hydro refinancing.

And thirdly, maintaining our investment grade reading.

We remain committed to managing our corporate limits to do so.

Furthermore, we think it's important to discuss our leverage profile.

Although it's easy to compare us to industry metrics at a high level.

Believe that leverage should be based on specific portfolio mix.

Jean Trudel: In Innergex's case, given our elevated exposure to high-quality perpetual hydro assets, we can optimize our cost of capital and put incremental fixed-rate, low-risk, project-level debt on our balance sheet. This key advantage represents an attractive funding tool for us and supports our portfolio leverage. Overall, our approach allows us to prudently manage our debt. We have a balance sheet that is appropriate for our unique long-life asset mix and that supports further growth. Next slide, please.

Interjects case, given our elevated export are too high quality perpetual hydro assets, we can optimize our cost of capital and put incremental fixed rates low risk project level of debt on our balance sheet.

The ski advantage represents an attractive funding tool for us and supports our portfolio or whatever.

Overall approach allows us to prudency mandatory that we.

We have a balance sheet that is appropriate for a unique long life asset mix and that supports further goals.

Next slide please.

Going forward.

Jean Trudel: Going forward, our funding strategy will prioritize internal sources of capital to increase our capacity to self-fund organic growth. By revising our capital allocation priorities, we are choosing to emphasize greenfield development activities. It is important for us to be clear about this. The decision to realign our capital allocation strategy was not based on affordability.

Funding strategy prioritize internal sources of capital to increase our capacity to self fund organic quote.

By revising our cats all location priorities, we are choosing to emphasize greenfield development activity.

It is important for us to be clear about this.

Decision to realign our capital that location strategy was not based on affordability.

As you will see when we cover all our 20th 20th for guidance, we have the capacity to fully cover our actual dividend using cash flow from existing operations in the longterm outlook is positive.

Jean Trudel: As you will see when we discuss our 2024 guidance, we have the capacity to fully cover our actual dividend using cash flow from existing operations, and the long-term outlook is positive. In the context of the significant growth we see ahead, as highlighted earlier by Michel, we have taken bold and decisive action to increase our financial flexibility and accelerate our greenfield investment, while also reducing our reliance on external sources, both external issuances and or acquisitions of operating assets. Based on these updates, we expect to largely self-fund our growth investments from retained cash. While we strategically leverage capital recycling and refinancing tools, our guiding principles for portfolio management activities are as follows: First, value creation.

In the context of this significant growth, we see a head as I <unk> earlier by Michelle.

Have taken bold and this is if this action to increase our financial flexibility and accelerates our greenfield investments.

While also reducing our reliance on externalities.

External issuances and or acquisition of operating assets.

Based on these updates we expect to largely self fund our growth investments from retaining cash flows.

Wow, we strategically leverage capital recycling and refinancing tools.

Guiding principles on portfolio management activities are as follows.

First value creation, and 2020th Sweet crystallized value from our portfolio and friends and brought in a strategic partner.

Jean Trudel: In 2023, we crystallized value from our portfolio in France and brought in a strategic partner. This process allowed us to increase our investment economy. We see value in selective capital recycling and will look to reinforce our track record of value creation by pursuing further sell-down opportunities. Secondly, risk management and portfolio high-grading We also see capital recycling as a tool to manage exposure and risk, allowing us to recycle capital for certain regions or assets into new accretive growth.

This process allowed us to increase our investment economies.

We see value and seductive capital recycling and will look to reinforce her track record to value creation are pursuing further sell down Unfortunately.

Secondly, the risk management and portfolio high greeting.

We also see capital recycling as a tool to manage exposure and risk.

Allowing us to recycle capital for certain regions are assets into new accretive growth.

Jean Trudel: We could look to utilize capital recycling to exit non-core markets or divest low-performing assets, thus upgrading our overall portfolio quality, and 3rdE Funding, we see this type of initiative as supporting our self-funding ambitions, allowing us to continue to reinvest in new projects over time. In conclusion, we will continue to expand on our capital recycling success. By realigning our dividend policy in support of our strategic priorities, we are increasing our financial flexibility, freeing up around $75 million per year to support sustainable and self-funded growth. As an example, over a 10-year period, this additional and growing excess capital could enable 1,500 MW plus of incremental development on a 100% self-funded basis. Next slide.

We could look to use his eyes kept all reciting two exits non-core markets or divest nope performing assets does hydrating, our overall portfolio quality.

30 funding, we we see this type of initiative are supporting our self funding ambitions I'd only gnostic continued to reinvest in new projects overtime.

In conclusion, we will continue to expand on our capital recycling successes.

By realigning our dividend policy in support of our strategic parties, we are increasing our financial flexibility freeing up around $75 million per year to support sustainable and self funded quote.

As an example worth 10 year period, this additional and growing excess capital.

Enable 1500 megawatt plus of incremental development on the 100% self funded basis.

Next slide please.

If we think about our stated goal of securing 400 megawatts per year of new capacity.

Jean Trudel: If we think about our stated goal of securing 400 megawatts per year of new capacity, and we look out to 2030, we see a potential path to deliver on this goal. Here we illustrate how, by just taking our under-construction and under-development projects, coupled with the recent awarded Quebec wind projects, we are approximately 46 percent of the way towards adding 400 megawatts per year through 2030. If we think about this goal in the context of our existing 10.9 gigawatts and growing portfolio of identified projects, we believe that we have a highly visible organic growth outlook. Next slide, please.

And we look up to 2030, we see a potential path to deliver on this call.

Here, we illustrate how by just thinking are under construction and under development projects coupled with the recent awarded Quebec wind projects. We are approximately at 46% of the way towards adding 400 megawatts per year through 2030.

If you think about this goal in the context of our existing 10.9, gigawatts and growing portfolio of identified projects. We believe that we have a highly visible Oregon, you can quote outlook.

Next slide please.

In conclusion.

Jean Trudel: In conclusion, our revised capital allocation strategy will enable us to provide balanced returns to our shareholders, a dividend of $0.36 per share within a 30% to 50% target payout range, growing free cash flow per share from a creative greenfield opportunity, an opportunistic buyback of shares, and strategic capital recycling to create additional value. We will be focused on selectively developing high-quality projects in our core markets.

<unk> capital allocation strategy will enable us to provide balanced returns to our shoulders a.

Dividends are 36 cents per share within a 30 to 50 per cent target range.

Growing free cash flow per share from accretive greenfield abortion energies.

And unfortunately stick by backup sure and strategic capital reciting to create additional value.

We will be focused on selectively developing high quality projects in our call markets now.

Jean Trudel: Our disciplined approach and large pipeline of prospective projects mean we can be patient and monitor market conditions to maximize value creation. We will not invest in projects until we have a high visibility of being able to achieve our target returns by focusing on self-funded growth and quality over quantity. Given the time it takes to develop and construct projects, our organic growth strategy will require some time before it can translate into a free cash flow per share. Having said that, we are confident that this is the right path for Innergex going forward. Our recent successes in Quebec give us confidence that we can continue to create sustainable value for shareholders over the long term. Next slide, please. So, with that announcement, let's turn to our fourth quarter 2023 results.

Now a disciplined approach and large pipeline of prospective projects me, we can be patient and monetary market conditions to maximize value creation.

We will not invest in projects until we have a high visibility of being able to achieve our target returns.

By focusing on self funded growth and quality over quantity and given the time it takes to develop and construct projects organic growth strategy willing cause sometimes before that can translate into a free cash flow brush hurtful.

Having said that we are confident that this is the right path for interjects going forward.

Or a recent successes in Quebec gives us confidence that we can continue to create a sustainable value for shareholders over the long term.

Next I will.

With that announcement, they're starting to our fourth quarter 2020th Sweet results.

For the quarter, we posted good results with adjusted EBITDA proportionate of $186 million, representing a 30 per cent increase year over year.

<unk> was primarily driven by improving generation trends.

Particular to an hour I drew portfolio, where we saw generation improved to 104% of LTA versus the anomaly of 70 per cent of L. T. A excrete experienced in the port part of 2022.

Jean Trudel: For the quarter, we posted good results, with adjusted EBDA proportionate of $186 million, representing a 30% increase year-over-year. This growth was primarily driven by improving generation trends, particularly in our hydro portfolio, where we saw generation improve to 104% of LTA versus the anomaly of 70% of LTA experienced in the fourth quarter of 2022. Despite coming in 6% below LTA, our adjusted EBDA was in line with our expectations

Despite coming in 6% <unk> L. T E. R. Just the D V. D was in line with our expectations. This is because we had a favorable generation mix with higher production facilities with higher pricing, which mitigated the impact of lower than L. T. A production.

It's important to reinforce that hour diversification strategy is working well in that generation is not the only driving force of our results.

We also experienced healthy growth of 12% you over a year for just the D V D. A proportionate, which reached $735 million on a full year basis in 2023.

Jean Trudel: This is because we had a favorable generation mix with higher production at facilities with higher prices, which mitigated the impact of lower-than-LTA production. It's important to reinforce that our diversification strategy is working well and that generation is not the only driving force of our results. We also experienced healthy growth of 12% year-over-year for adjusted EBDA proportionate, which reached $735 million on a full-year basis in 2023. This increase was mainly driven by recent acquisitions, improving production trends in our hydro segment, as well as contributions from newly commissioned assets. As for our cash flow, on a normalized basis, we would have generated between $197 and $212 million of free cash flows for the year.

This increase was mainly driven by recent acquisitions improving production trends in our hydro segment as well as contributions from new decommissioned assets.

As for our cash flow and the normalized basis.

[noise] would have generated between 197, two 212 million a pre kestrels for the year.

The major drivers of this increase compared to 20 twenty-two are similar to their previously noted elements, partially upset by higher principle debt repayments maintenance capex and pre Castro attribute it to noncontrolling interests.

On a normal basis or payout ratio would have been between 69 and 75 per cent.

So far in Q1 2024, we are seeing good generation from our assets, which are performing in line with our expectations.

Separate fee and a note yesterday, we also announced an M C. I V program.

This will allow us to unfortunate sickly buy back up to five per cent of our outstanding shows.

Next scientists so based on recent macroeconomic trends.

Jean Trudel: The major drivers of this increase compared to 2022 are similar to the previously noted elements, partially offset by higher principal debt repayments, maintenance capex, and free cash flow attributed to non-controlling interest. On a normalized basis, our payout ratio would have been between 69 and 75%. So far, in Q1 2024, we are seeing good generation from our assets, which are performing in line with our expectations. Separately, and of note, yesterday we also announced an NCIB program. This will allow us to opportunistically buy back up to 5% of our outstanding shares. Next slide, please.

And previously communicated elements and bedding impacting our path forward.

We believe it is prudent to withdraw our 2025 targets at this time.

Looking ahead, we want to provide an update on our financial targets, but in the meantime, we are introducing guidance for 2024.

For this fiscal year, we expect adjusted EBITDA proportionate to be in the range of 725 to 770 $75 million and freak out of school for a share before prospective expenses to be in the range of 70 to 85 cents per share.

The key assumptions behind our Twenty-twenty for guidance include production expectations and nine with L. T as an asset availability of approximately 95 per cent.

Overall, we expect to deliver muttering, both in 2024 with more pronounced growth in 2025, following the commissioning of our projects under construction.

Jean Trudel: So, based on recent macroeconomic trends and previously communicated elements impacting our path forward, we believe it is prudent to withdraw our 2025 targets at this time. Looking ahead, we want to provide an update on our financial targets, but in the meantime, we are introducing guidance for 2024. For this fiscal year, we expect Adjusted EBDA Proportionate to be in the range of $725-$775 million and Free Cash Flow per Share before prospective expenses to be in the range of $0.70-0.85 per share.

I will now give back the floor to Michelle flower, 20th 24, corporate parties and closing remarks.

He was.

Before we come to the presentation I would like to reinforce our focus area for the months ahead.

We will advance how're under construction project.

Largest among them being to 330 Meg.

Megawatt Boswell spring.

Wind project, which we expect to be commissioned by the end of 2024.

We are also focus on building Ellie Kuwait in Hawaii.

Meanwhile, in the development, we will participate in our feet across the various market in which we operate.

We expect a bit well over 500 megawatt of project into several RFP in 2024.

We are targeting capturing 400 megawatt of new capacity or from our bid. This year just like we did in 2023.

Michel Letelier: The key assumptions behind our 2024 guidance include production expectations in line with LTAs and asset availability of approximately 95%. Overall, we expect to deliver moderate growth in 2024 with more pronounced growth in 2025 following the commissioning of our projects under construction. I will now give back the floor to Michel for our 2024 Corporate Priorities and Closing Remarks. Thank you, John.

Finally, we will continue to strengthen our financial flexibility.

Next night.

I would like to highlight why we believe <unk> is it unique investment opportunity and why we are confident in our ability to continue to win into renewable energy market and deliver shareholder value.

First of all Interjects is 100% renewable energy project, they've Lopper annual parade or.

We have a high quality complementary portfolio of assets that aren't diversified across hydro wind solar and battery storage.

Michel Letelier: Before we conclude the presentation, I would like to reinforce our focus area for the month ahead. We will advance our under-construction projects, the largest among them being the 330-megawatt Boswell Spring wind project, which we expect to be commissioned by the end of 2024. We are also focused on building Alikowin for a while. Meanwhile, in this lab... We will participate in RFP across the various markets in which we operate. We expect to bid well over 500 megawatts of projects into several RFPs in 2024.

Our base of cream and monitor assets provides a unique advantage.

Our assets are also well balanced across geography widow operation in Canada.

U S, France and Chile.

This diversity of <unk>, our exposure to the resources.

Customer and contracting importunities.

Our asset art print them mentally supported by highly.

D. P. P. A that are indexed to inflation and generate longterm cash flow.

Finally, our disciplined execution on our growth strategy will enable us to deliver good long term shareholder return.

Michel Letelier: We are targeting capturing 400 megawatts of new capacity award from our bid this year, just like we did in 2020. Finally, we will continue to strengthen our financial flexibility.

It makes life.

I will close with our key take away from to these tragic update.

As we I know last night, we are taking strong action.

First you will discipline sustainable growth.

Michel Letelier: I would like to highlight why we believe Innergex is a unique investment opportunity and why we are confident in our ability to continue to win in the renewable energy market and deliver shareholder value. First of all, Innergex is a 100% renewable energy project developer and operator. We have a high-quality, complementary portfolio of assets that are diversified across hydro, wind, solar, and battery storage. Our base of premium hydro assets provides a unique... Our assets are also well balanced across geography, with operations in Canada, the U.S., France, and Chile. This diversifies our exposure to resources, customers, and contracting opportunities. Our assets are predominantly supported by highly... Quality PPA that are indexed to inflation and generate long-term cash. Finally, our disciplined execution on our growth strategy will enable us to deliver good long-term shareholder returns. I will close with our key takeaway from today's strategy meeting. As we announced last night, we are taking strong action... pursuing discipline and sustainable growth. We have made the decision to recalibrate our dividend payout ratio to allow for additional greenfield organic growth.

We have made the decision to recalibrate how are they are in and bail ratio.

Two out of four additional greenfield organic growth.

Our update capital allocation strategy include prioritizing our self funded model.

Increasing financial flexibility.

Finally, we will also look to optimize our existing portfolio of assets to create value.

As we begin to capture unprecedented opportunity in front of US we will remain discipline on executing unprofitable project that will generate sustainable cash per share growth.

I'm confident in our ability to create value for our shoulder shirt.

Borrowers solid track record of success that will continue to build on.

In the coming years.

With over three decades of industry experience and strong commitment to sustainable development through 100% renewable energy.

Interjects his front to pursue greenfield lapenta opportunities and.

And deliver compelling risk adjusted return on investment capital.

With that we will now move to the queue any session. Thank you.

Thank you, ladies and gentlemen, if you have a question.

Followed by the one on your Touchtone phone.

Acknowledging your request.

Michel Letelier: Our updated capital allocation strategy includes prioritizing our self-funded model and increasing financial flexibility. Finally, we will also look to optimize our existing portfolio of assets to create value. As we begin to capture the unprecedented growth opportunities in front of us, we will remain disciplined on executing on profitable projects that will generate sustainable cash flow per share growth. I'm confident in our ability to create value for our shareholders, supported by our solid track record of success that we'll continue to build on in the coming years, with over three decades of industry experience and a strong commitment to sustainable development through 100% renewable energy. Innergex is proud to pursue greenfield development opportunities and deliver compelling risk-adjusted return on investment capital. With that, we'll now move to the Q&A session. Thank you. Thank you. Ladies and gentlemen, if you have a question, please press star followed by the number on your touchtone phone. You will hear a three-tone prompt acknowledging your request. Your questions will be pulled in the order they are received. Please ensure you lift the handset before using a speakerphone before pressing any.

Questions will be put in the order they are.

[noise] received please ensure you left you left the hands.

Before using a speaker phone.

<unk>.

Your first question comes from David Cassata with Raymond James. Please go ahead.

Thanks morning, everyone.

Maybe a question just on your your refinancing initiatives I know that you have the three that you've already delivered and then another three that you've got them for 2024 in it but I think that leaves you with about a ladder I'm just curious.

Is there is there a level, where you want to keep a certain number of unlevered assets or you know how many more tranches of that could you do if any.

Yeah.

Good question.

The prison time, we have one initiative ongoing and if the refinancing of three additional hydro projects that are based in Quebec. So we're we're working on this initiative in 2024. So we expect to have you know what does it have something to announce on this later on.

The that's at the moment the only initiative, we have but of course you have other as <unk> pointed out we have other assets and so as we may see fit we may actually.

Other initiatives in the future too too.

To fund our activities.

Okay excellent. Thanks for that and then maybe there's one more from me just with your your comments around asset recycling I'm just I'm just curious if there's any call you confide in terms of what.

What your priorities might be there I know that you've got a lot of development stage projects and your last I'm wondering if any of those.

David Quezada: Your first question comes from David Quezada with Raymond James. Please go ahead. Thanks. Good morning, everyone.

You know in certain regions in the U S might be considered non-core or what what what kind of.

Will be the most likely assets that you could look at monetizing and what are the markets looking like today for those kind of assets.

David Quezada: Maybe a question just on your refinancing initiatives. I know that you have the three that you've already delivered and then another three that you've got for 2024, but I think that leaves you with about 11. I'm just curious.

Yes ooh.

Yes, no. There are several after that we have as you pointed out to our our guiding principle, but I guess when we think about capital recycling is to <unk> you know the value creation. So it needs to bring value as we've done in France, we done in Prince between 23, and then as I mentioned.

Earlier, we we we were trying to look at risk management, So high griding the value of our portfolio as we've done when we sold Iceland for example, the local ones Barton.

Jean Trudel: You know, is there a level where you want to keep a certain number of unlevered assets or, you know, how many more tranches of that could you do, if any? Yeah, good question. And at the present time, we have one initiative ongoing, and it's the refinancing of three additional hydro projects that are based in Quebec. So we're working on this initiative for 2024. So we expect to have something to announce on this later on. That's, at the moment, the only initiative we have.

Last year, and and some development assets and then why that we've sold as well. So there are unfortunately seasoned as it makes it to do this again in 20th when you're poor or future years, and the third guiding principle is really funding. So it needs to be used at substantial that needs to being us funding as we did a nice and and friends. For example, so you're right. There are other assets and we're looking at this in with this.

Angle.

Thanks, I appreciate that I'll I'll turn it over.

Your next question comes from Sean Stewart with T. D. Please go ahead.

Thank you good morning, Uhm I just want to follow up on on David Good morning follow up on David's question with respect to.

Jean Trudel: But of course, we have other, as you pointed out, we have other unlevered assets. And so, as we may see fit, we may actually enact other initiatives in the future to fund our activities. Okay, excellent. Thanks for that. And then maybe just one more for me, just with your comments around asset recycling. I'm just curious if there's any color you can find in terms of what your priorities might be there. I know that you've got a lot of development stage products in the US. I'm wondering if any of those, you know, in certain regions in the U.S. might be considered non-core or what, you know, what, what kind.

The liquidity position. So you ended the year with available liquidity of around 630 million and you've articulated the under construction pipeline the advanced development pipeline and and I guess the target of four to 500 megawatts of year per year of development.

What what do you think the rate liquidity needs to be quarter to quarter to have comfort.

That you can advance those opportunities and and I guess I'm just trying to gauge that with.

Seemingly have a reasonable liquidity cushion now, especially with the lower dividend.

You know is there a potential that you can delay some of these refinancing opportunities or asset recycling opportunities to wait for better market conditions, Uhm, what and how does that play into it sort of an optimal liquor.

Jean Trudel: What would be the most likely assets that you could look to monetize, and what are the markets looking like today for those kinds of assets? Yes, so I guess there are several assets that we have, as you pointed out. So, our guiding principles, I guess, when we think about capital recycling are first, you know, value creation. So, it needs to bring value, as we've done in France, you know, as we did in France in 2023. And then, as I mentioned earlier, we're trying to look at risk management. So, increasing the value of our portfolio, as we did when we sold Iceland, for example, or Kokomo and Spartan last year, and some development assets in Hawaii that we sold as well.

Liquidity target quarter to quarter for the company, yes, it's a very good question. So this is exactly you fundamentally the reasons for our new kept on vacation, we Wanna have flexibility and this is brings brings us additional flexibility to actually allow us to time refinancings or I said sell down or you know so that we're not actually stuck.

<unk> in a in a in a space, where we have to to do something so where we can be more patient we can be more flexible and right. Now we tried to self on all our operations and we don't foresee the need for additional capital as you pointed out we have a good amount of liquidity right now so with this additional portfolio of hydro refinancing.

<unk> I mean, we'll be we'll be in a good spot.

And I think that the last update was 80 million in incremental proceeds from hydro refinancing is that still the the right number.

That's that's still a good proxy.

Jean Trudel: So, there are opportunities in our asset mix to do this again in 2024 or in future years. And the third guiding principle is really funding. So, it needs to be substantial and needs to bring us funding, as we did in Iceland and France, for example. So, you're right, there are other assets, and we're looking at this from this angle. Thanks, John. I appreciate that. Your next question comes from Sean Stewart with TD. Please go ahead. Thank you. Good morning. I just want to follow up on David's. Good morning.

Okay.

Next question <unk> M C. I D. I presume that's not just there as a placeholder.

And your your shares of reacting positively out of the gate. This morning, but can you give thoughts on.

And your assessment of intrinsic value versus where the shares are trading now and.

Commitment to the NCI b at these levels.

It it will be also a decision of the board we have established the.

N T I beat to be opportunistic and and taking.

The investment our share obviously, we as you you you can understand that we see a lot of growth opportunity, but obviously, if we if we can have the opportunity to buy back some of our shares this is going to be accretive right away on the casual per share basis. So we will.

Sean Steuart: Follow up on David's question with respect to the liquidity position. So, you ended the year with available liquidity of around $630 million, and you've articulated the underconstruction pipeline, the advanced development pipeline, and I guess the target of 400 to 500 megawatts per year of development. What do you think the right amount of liquidity needs to be, quarter to quarter, to have comfort that you can advance those opportunities? And I guess I'm just trying to gauge that with, you seemingly have a reasonable liquidity cushion now, especially with the lower dividend. Is there potential that you can delay some of these refinancing opportunities or asset recycling opportunities to wait for better market conditions? What and how does that play into sort of an optimal situation?

Monetize the.

Evolution on the market and be in contact with our board of directors to see Oh aggressive we can be with that program.

[noise] understood. Okay. That's all I have for now thank you very much.

Thank you so.

Your next question comes from.

Car Mark.

<unk>.

Thanks, Good morning.

Jean Trudel: Yes, it's a very good question. So, this is exactly, fundamentally, the reason for our new capital allocation. We want to have flexibility, and this brings us additional flexibility to actually allow us to time refinancings or asset sell-downs so that we're not actually stuck in a space where we have to do something. So, we can be more patient; we can be more flexible. And right now, we try to self-fund all our operations, and we don't foresee the need for additional capital.

Please provide your date of extra clarity on your overall growth objectives.

Is the self funding mechanisms say 400 megawatts of gross kakashi free or the ultimate goal or are you guys also gonna be looking at other opportunities and considering those it gets so I guess, a little bit more color on but.

Funding of that for the road.

Yeah, I'll I'll I'll take the first half and perhaps cause I will will contribute to the funding am part, but we have put this 400 megawatt of opportunity or gold I.

I think that there's.

More opportunity in all the market you heard me talking about Canada, you West Julian France. What we have also said is that we want to be disciplined we want a wind project that are profitable Ah. So that's why we're limiting our goals today at 400 that doesn't mean that we will not.

Jean Trudel: As you pointed out, we have a good amount of liquidity right now. So, with this additional portfolio of hydro refinancing, we'll be in a good spot. And I think that the last update was $80 million in incremental proceeds from hydro refinancing. Is that still the right number? Yeah, that's still a good proxy.

For a few more but will be selective we want to make sure that the project that we will be winning will be profitable now in terms of financing do you support the entity. If we have a success you were her job we will be looking towards recycling, we have more flexible.

Michel Letelier: Okay, next question, the NCIB, I presume that's not just there as a placeholder. And your shares are reacting positively out of the gate this morning. Can you give thoughts on... in your assessment of intrinsic value versus where the shares are trading now and commitment to the NCAB at these levels. It will also be a decision of the board. We have established the NCIB to be opportunistic in taking the investment of our share.

<unk> with the dividend but.

Having good project with good return has never been an issue to get funding bike partner or sell down piece of them. So what we are focusing is making sure that the the project, we will be winning will be profitable.

Sean Steuart: Obviously, as you can understand, we see a lot of growth opportunity, but obviously, if we can have the opportunity to buy back some of our shares, this is going to be accretive right away on the cash flow per share basis. So, we will monetize. Thank you very much. Okay, that's all I have for now. Thank you very much. Your next question comes from Nick Boychuk on Cormark. Please go ahead. Thanks. Good morning.

Watson.

Okay. That's great. Thanks, and on that profitability my follow up is going to be about how you prioritize your nose.

Are you seeing a different returned profile by region or asset type and if you can explain how you're thinking about ranking those priorities.

That'd be a good color.

I I think that we have a very special position in in in Canada, I think that we have proven in the past that ER Interconnects has been very successful developing in Canada.

Nick Boychuk: I'm going to ask you to please provide a bit of extra clarity on your overall growth objectives. Is the self-funding mechanism of, say, 400 megawatts of gross capacity per year the ultimate goal? Or are you guys also going to be looking at other opportunities and considering those? And if so, what are you doing to address that?

Most of the project in Canada will required to have some form of of a partnership with first nation communities. That's something that we have done in the past and we are very good at doing this is giving us I think.

Michel Letelier: I guess a little bit more color on the funding of that further out. Yeah, I'll take the first half, and perhaps Jean will contribute to the funding part. But we have put this 400 megawatt of opportunity or gold out there. I think that there is.

Leadership position and and unique ability.

We had value in Canada that doesn't mean that we will not be active indeed auto market I think that we have a better.

Michel Letelier: More opportunities in all the markets. You heard me talking about Canada, the US, Chile, and France. What we have also said is that we want to be disciplined. We want to win projects that are profitable. So, that's why we're limiting our goals today to 400.

I guess hedge in Canada to create value flower shoulder U S has great opportunity, France as you.

<unk>, we have created quite a bit of the value in our portfolio has been shown to sell down to 60, Jackie Cuz Chili is on on a good path, we stick to our strategy of adding a portfolio I'm confident that we will be winning rfps and chili in the next few months.

Michel Letelier: That doesn't mean that we will not pursue more, but we'll be selective. We want to make sure that the project that we are winning will be profitable. Now, in terms of financing these opportunities, if we have success, you heard John, we will be looking toward recycling.

Some great opportunity going down there as well so but to your point I think that where we can create a more value perhaps is in Canada and the quality also off the P. P. A.

Michel Letelier: We have more flexibility with the dividend, but having good projects with good returns has never been an issue to get funding by partners or sell down a piece of that. So what we are focusing on is making sure that the project we will be winning will be profitable. www. Innergex.com Okay, that's great.

Right. There are 25, 30, 35 years index P. P. A take or pay so that's the type of P. P and we like as well.

Okay, so to clarify an opportunity a wind opportunity in Quebec like for like would have a higher potential return profile or more favorable characteristics to you guys been say boswell wind expansion or some new form of acid in the U S journey.

Michel Letelier: Thanks. And on that profitability, my follow-up was going to be about how you're prioritizing. Are you seeing a different return profile by region or asset type? And if you could explain how you're thinking about ranking those priorities, I think that'd be a good color.

Generally speaking is that a fair assumption to make.

It's a fair assumption I think the quality of the P. P. A with the candy and utility are more flexible although in the U S. I think that the inflation link P. P. A will have to be the norm. It has been independent longterm P P a which utility.

Michel Letelier: I think that we have a very special position in Canada. I think that we have proven in the past that Innergex has been very successful in developing in Canada. You know that most of the projects in Canada will require some sort of partnership with First Nations and communities. That's something that we have done in the past, and we are very good at doing. This is giving us, I think, a leadership position and a unique ability to create value in Canada. That doesn't mean that we will not be active in other markets. I think that we have a better...

Have very little inflation embedded in them and this is something that we don't like I think that this.

This.

This way of signing P. P. A in the in the states.

You'll have to change because.

It's not fair for I P. P to take the full risk of future inflation for the next door to years.

Michel Letelier: I guess hedge in Canada to create value for our shoulder. The US has a great opportunity, France, as you have seen, we have created quite a bit of value in our portfolio, as shown by the sell-down to Crédit Agricole. Chile is on a good path.

Got it that's perfect Express yourself.

Okay.

Okay. Next question comes from Rupert Mirror with M. B, Yes. Please go ahead.

Hi, good morning.

Anyway.

Michel Letelier: We stick to our strategy of adding a portfolio, and I'm confident that we will be winning RFPs in Chile in the next few months. There's some great opportunities going down there as well. But to your point, I think that where we can create more value, perhaps, is in Canada, and the quality of the PPA is also great. They're 25, 30, 35 years index PPA, take or pay. So that's the type of PPA we like as well. To clarify, a wind opportunity in Quebec, like-for-like, would have a higher potential return profile or more favorable characteristics to you guys than, say, Boswell's wind expansion or some new form of asset in the U.S.? Generally speaking, is that a fair assumption to make?

Asking.

Two 2024.

It looks like.

3% at the midpoint actually.

Basing it on.

Production.

Had such.

Headwinds in 2023 can you walk us.

Sean.

Basically flat.

2024.

If you've got some growth too I imagine the effectiveness.

Yeah I know.

We we took a prudent approach.

There are a few things in 2023 that will not be true to 20th when he for some for example, we've adjusted the L. T of some of our assets downward.

To reflect you know the.

It's to recall production of certain assets that needed to be adjusted so that represents about 20 million.

Revenue down you over a year just that aspect.

And I think it's important to be prudent right right now so we've put some contingency in our numbers.

Nick Boychuk: It's a fair assumption. I think the quality of the PPA with the Canadian utility is more flexible, although in the U.S. I think that inflation-linked PPAs will have to be the norm. As has been the case in the past, long-term PPAs with utility have very little inflation embedded in them, and this is something that we don't like. This way of signing PPA in the States will have to change because it's not fair for IPPs to take the full risk of future inflation for the next 30 years. That's perfect.

Alright, perfect that prudence, so we're comfortable with that guidance now we we part is you know we will have calls every quarter will updates potentially does guidance, if we see fit in the coming year.

We really believe that the L. T that we have today are are are real I mean, we believe in that number that we've just adjusted down sightsee.

And we so that's that's why the guidance is based on that L. T. A.

Uhm.

But a pie.

He reviewed the financial statements.

Q for reporting.

Same as they were.

Rupert M. Merer: Thanks. Your next question comes from Rupert Merer with NBF. Please go ahead.

So.

Yeah, we.

While we adjusted in two steps when we did the transaction and friends, we adjusted the French portfolio down so that was reflected in Q3 and two four and 420 24, where I'd just being down five hydro assets in D. C. So it's an additional 110 giga watt hour of adjustments.

Rupert M. Merer: Renewable Energy. Let's start by... It looks like it's going to take a while. NASA Jet Propulsion Laboratory, California Institute of Technology. Thank you.

Jean Trudel: Thank you. Thank you. Yeah, no.

Jean Trudel: So we took a prudent approach. There are a few things in 2023 that will not be true in 2024. So, for example, we've adjusted the LTA of some of our assets downward to reflect the historical production of certain assets that needed to be adjusted.

In 2024, so in total it's 170 gigawatt hour adjustment to L. T a.

60 was done in Q3 in 110 done now in in 2024.

Put that in perspective, one per cent.

That would be.

So that's about 1.61 0.7 per cent down on the L T a but yeah.

Jean Trudel: So that represents about $20 million of revenue down year over year, just that aspect. And I think it's important to be prudent right now. So we've put some contingency in our numbers to reflect that prudence. And we're comfortable with that guidance now. We, Rupert, as you know, we will have calls every quarter. We'll potentially update this guidance if we see fit in the coming year. We really believe that the LTA that we have today is real.

You have to realize we're taking down D. L. T. Eight out of two areas, where our pricing is actually more limited than the average so the revenue impact is a bit greater when you're just diesel tas versus other M th.

So the total impact of do suggest meant prints and N. B C is is 20 million on a yearly basis, a bourbon and also Rupert we've been prudent also we know us assumption on spot Martin merchant pricing.

We could be proven to be wrong in the sense that we're seeing strong Ah merchant pricing emerging.

Jean Trudel: I mean, we believe in that number that we've just adjusted down slightly. And we, so that's why the guidance is based on that LTA. Bye.

After this summer and chili so.

<unk> has been pretty good last year, so well.

Jean Trudel: Thank you. Yeah, well, we adjusted in two steps. When we did the transaction in France, we adjusted the French portfolio down.

We'll see what I think the message that is providing you is that we want to be prudent we're putting a a a.

Jean Trudel: So, that was reflected in Q3 and Q4. And for 2024, we're adjusting down five hydro assets in BC. So, it's an additional 110 gigawatt hours of adjustments in 2024. So, in total, it's 170 gigawatt hours of adjustments to LTA.

Forecast for 2024.

Why don't we just took calendar 2025, so I think that we want to be prudent we wanna perhaps on.

Under promise and over achieve in the future. So this is.

This is reason I agree with you that when we look at what we have done in 2020 tree based on 90, 90% L. T. A.

Jean Trudel: 60 were done in Q3 and 110 are done now in 2024. So that's about 1.6%, 1.7% down on LTA. But... You have to realize we're taking the LTA out of two areas where our pricing is actually more limited than the average, so the revenue impact is a bit greater when you adjust these LTAs versus other LTAs. So the total impact of this adjustment, France and B.C., is $20 million in revenue on a yearly basis.

Our guidance seems to be.

Very prudent.

Alright, thanks, thanks for that color.

Lee.

He can give a little more color on the impairment in particular.

Uh-huh.

Hawaii.

Impairment.

While you're taking that impairment, but also a little more color.

How much more.

Invest in that project and how much has been invested so far.

Yeah, so and at age Katie impairments, it's a bit it's a bit of an academic process right. It's an impairment testing every year that we do.

And you know there's a couple of factors that impacted the value on our book Firstly the yields environment is increasing so these assets that or with a thin margin of error R.

Jean Trudel: And also, Rupert, we've been prudent in our assumption on spot merchant pricing. We could be proven to be wrong in the sense that we're seeing strong merchant pricing emerging after the summer in Chile, and our cost was pretty good last year. We'll see.

Are impacted so we I think we as you know has been.

Seeking seeing some difficulties with this the the return on that project with Iced tea challenge and now with yielding environment going up.

It's it's it's hard to keep the book value. The other thing as well is that he co. The difficulty of equal makes it more difficult to put that on the project at competitive rates. So when you look at the project on a standalone basis, the cost of capital for that project that has increased as well so.

Jean Trudel: But I think the message that Jean is providing you is that we want to be prudent. We're putting in a forecast for 2024 while we just took out 2025. So I think that we want to be prudent. We want to perhaps under-promise and over-achieve in the future. So, this is the reason. I agree with you that when we look at what we have done in 2023, based on 90% LTA, our guidance seems to be very prudent. I'm Robert Stewart.

It was I think very prudent it's very conservative too.

Take such impairment in H K a.

At the moment, we have about 110 million invested in H K.

There's about about.

About 90 million left to invest to build a project to C V D.

So so that's that's an H game.

Operator: Thanks for watching. And please, subscribe to our channel. And we'll see you next time.

Thanks for the color.

Think things.

Your next question comes from Mark Jarvie with C. I D. C. Please go ahead.

Yeah. Thanks for everyone. So it's almost like you've talked about the 400 megawatts and development pipeline just trying to understand what hold you back from providing a medium term targets you Congressman like you're close to having a framework for it but what would you need to see is it is it the RP results and when would you be able to provide something to the.

Jean Trudel: Bye-bye. Yeah, so at HK, the impairment is a bit of an academic process, right? It's impairment testing every year that we do, and, you know, there are a couple of factors that impact the value of our book. Firstly, the yield environment is increasing, so these assets that were with a thin margin of error are impacted. So Eloquii, as you know, has been seeing some difficulties with this.

The market, where they can kind of really see where the girl says go into the next three to five years and sort of back into the cell phone and model I guess.

Oh that that that's a fair question Mark I I think that we will be coming to the market explaining a little bit more we we just wanted to take a little bit more time, making sure that we have a better view on what's going on in all the rfps that were <unk>.

Jean Trudel: The return on that project was actually challenged, and now with the yielding environment going up, it's hard to keep the book value. The other thing as well is that HECO, the difficulty of HECO, makes it more difficult to put debt on the project at competitive rates. So, when you look at the project on a stand-alone basis, the cost of capital for that project has increased as well. So, it was, I think, very prudent; it's very conservative to take such an improvement on HK.

Owing to participate we didn't want to rush to give you guys a guidance that was not based on.

Tool numbers that we are seeing in the marketplace. We're very very bullishness, you can hear me, saying Ah amongst the ability for us to be successful in future bit, but we wanted to take a little bit more time to make sure that the guidance that we will be providing will be more.

Jean Trudel: At the moment, we have about $110 million invested in HK. There's about $90 million left to invest to build a project to COD. So, that's on HK.

Sure I guess informed with the actual data from the existing activities development activities that we're doing.

Mark Jarvie: Thank you. Your next question comes from Mark Jarvie with CIBC. Please go ahead.

Michel Letelier: Yeah, thanks to everyone. Jean-Michel, you talked about the 400 megawatts and the development pipeline. Just trying to understand, what holds you back from providing the medium-term targets? You kind of seem like you're close to having a framework for it, but what would you need to see?

So is that something you think happens in 2024 is that unfortunately 25, when he has a sort of formal plan.

I don't want to commit right now 2024 will be very busy will be answering rfps in Canada in at least three provinces, if not for France and in Chile.

Michel Letelier: Is it the RFP results? And when would you be able to provide something to the market where they can kind of really see where the growth is going over the next three to five years, and sort of back into the self-funded model, I guess? That's a fair question, Mark.

Some things happen, it's probably going to be the end of 2024 or very early in 2025.

Michel Letelier: I think that we will be coming to the market explaining a little bit more. We just wanted to take a little bit more time, making sure that we have a better view of what's going on in all the RFPs that we are going to participate in. We didn't want to rush to give you guys guidance that was not based on actual numbers that we are seeing in the marketplace. We're very, very bullish, as you can hear me saying, about the ability for us to be successful in future bids. But we wanted to take a little bit more time to make sure that the guidance that we will be providing will be more, I guess, informed by actual data from the existing activities and development activities that we're doing. So is that something you think will happen in 2024?

Got it and then.

Retained cast them to give them being lowered getting back to a certain normalized generation kind of implies you should have cash flow retained of around $100 million annually me a bit more.

How do you see the equity deployment in 2024, and 2025 shaping up like do you actually has the projects in line.

Ploy dot amount of equity every year, whereas you said may be drawn there's a bit of a leg that development projects and the appointment might not really start to move until.

Later in 25 26 timeframe.

Yeah right now we're we're fully funded an hour construction activities. So these projects at the focus were on like two two.

Those are self funded.

As we gain new projects. We you know we intend to self fund as well so it it really depends on how successful. We are as you know now we've won the last two rfps in Quebec, We want every project that we've been a very good return proposal. So if it keeps.

Michel Letelier: Is that more 2025 when you have a sort of formal plan? I don't want to commit right now, 2024 will be very busy; we'll be answering RFPs in Canada in at least three provinces, if not four, France, and Chile. If some things happen, it's probably going to be the end of 2024 or very early in 2025.

If it keeps saying if we keep delivering that way I mean, we'll we'll start the.

You know looking at the way to fund these activities in 2025.

Jean Trudel: Got it. And then the retained cash from the dividend being lower, and getting back to a sort of normalized generation kind of implies you should have cash flow retained of around $100 million annually, maybe a bit more. How do you see the equity deployment in 2024 and 2025 shaping up? Like, do you actually have the projects in line to deploy that amount of equity every year? Or, as you said, maybe, John, there's a bit of a lag; the development projects and the equity deployment might not really start to move until later in the 2025, 2026 time frame. Yeah, right now, we're fully funded on our construction activities, so these projects that's the focus we're on, those are self-funded. As we gain new projects, we intend to self-fund as well, so it really depends on how successful we are. As you know, now we've won the last. We won every project that we bid on at a very good return proposal, so if we keep delivering that way, we'll start looking at the way to fund these activities in 2025. But I guess that Mark, one question is really clear.

But I guess that mark.

One question is really clear, we're not going to use that cash to acquire existing operating facility.

We've.

We're moving away from that strategy.

Going too focused on green feel organic growth.

Got it.

So I'm just I'm just trying to.

Mm you too you've got a couple of other projects.

I'm not sure you have two years.

Clear equity you'd need so I'm, just I'm wondering whether or not there's actually some some excess cash it'll be there what do you do with that is that just pay down more of the credit facilities for kind of thing that was a great way to think about that retain cash over the next few years.

Yeah. So so we always manage.

First of all we manage always to keep our investment grade rating. So with we I've accessed gas then maybe you start buying back as a as in Optionality that we have those as well now that we've put the NCIC back.

What kind would be prudent we want to manage to keep our flexibility.

Option analogies.

Maintaining our investment grade rating so.

That's a guy the guide rails, we have I guess.

Give me just one one <unk> so what would be the equity expected actually investments, which 124. This year I'm gonna projects you have in hand.

Well, we were all in the fact that Boswell currently funded yeah, Yep Yep Yep Yep.

So so the our activities are pretty funded we're looking at eventually putting the instrument on the M. U two that we've recently won.

And but that's that's it I mean, we don't we don't have equity need at the moment not in the short term.

Got it okay. Thank you both.

Michel Letelier: We're not going to use that cash to acquire an existing operating facility. We're moving away from that strategy. We're going to focus on Greenfield Organic. Got it.

Thank you.

Your next question comes from.

With the Army C capital markets. Please go ahead.

Great. Thanks, and good morning, everyone.

Good morning, So just to follow up questions Uhm. So you talked about Ah I guess, the 20th 23 24 bridge with with Rupert.

Jean Trudel: So I'm just trying to, you know, with the MU2, you've got a couple other projects, but I'm not sure you have two years of clear equity needs. So I'm just wondering whether or not there's actually some excess cash that'll be there. And what do you do with that?

And your flag that it was.

Relatively conservative Imprudent, I presume I guess one.

Factor that could be pushing that you've got that down is higher prospective project casket in that it sounds like you're gonna be pretty busy this year.

Could you just comment on.

You have what you've budgeted for prospective projects. This year cause I think it was about $27 million 2023.

Yeah.

It will it should be close to 40 at what we have in the budget. It's a it's a ramping up and that's a good question Nelson as soon as that our team has been built up you don't built in Auburn overnight tend to team we've been increasing our.

Mark Jarvie: Is that just going to pay down more of the credit facilities? I'm just trying to think of the right way to think about that retained cash over the next two years. Yeah, so we always manage.

Jean Trudel: First of all, we always manage to keep our investment grade rating, right? So if we have excess cash, then maybe share buying back is an optionality that we have as well, now that we've put the NCIB back. We need to be prudent; we want to manage to keep our flexibility, and optionalities. Maintaining our investment grade rating, so. That's the guide rails we have, I guess.

Prospective expenses in the last five years going from roughly 10 million dollar two last year as you mentioned twenty-seven now we're focusing close to 40 $40 million for these here one has to understand that this has to be kind of in line with the amount of team that we have on the ground and this is why we're also.

Jean Trudel: And just one sort of follow-up, so what would be the expected equity investment for 2024 this year on the projects you have in hand? Well, given the fact that Boswell is fully funded, yeah, yeah, yeah, yeah. So, our activities are fully funded. We're looking at eventually putting the debt instrument on the MU2 that we recently won. But that's it, I mean, we don't have an equity need at the moment, not in the short term. Got it. Okay. Thank you both.

Pretty optimistic is that we are building the team. So we have now more boots underground it can deliver more more project and you will see an increase activities and prospective project getting in too early stage and Dan mid in advance that's the that's the strategy.

As you're going to see more project being the chipped in those categories. The.

Jean Trudel: Thank you. Your next question comes from Nelson Ng with RBC Capital Markets. Please go ahead.

The advance bucket, which is obviously the one that has more probably the ability to get into.

Nelson Ng: Great, thanks and good morning. I'm going to need a follow-up. So just a few follow-up questions. So you talked about, I guess, 2023-2024, and you fly better.

The development project and then eventually under construction. This is what you have to focus is our ability to create more and more prospective approach ick pipeline and certainly focusing more on advance a sector. The earliest day.

Jean Trudel: I presume, I guess, one factor that could be pushing the EBITDA down is higher. Could you just comment on... you have what you've budgeted for. Transcribed by https://otter.ai because I think it was about 27.

Age is always early stage those are the the incoming project that will have to go through the development activities, but what we are going to focus is to see the turd bucket the advance projects, they're going to be ready to bid into rfps and like I said, there will be a lot of activities in Canada.

Jean Trudel: Yeah, it should be close to $40 million, what we have in the budget. It's ramping up, and that's a good question, Nelson, in the sense that our team has been built up. You don't build an overnight team.

Michel Letelier: We've been increasing our prospective expenses in the last five years, going from roughly $10 million to last year, as you mentioned, $27 million. Now we're focusing close to $40 million for this year. One has to understand that this has to be kind of in line with the amount of people that we have on the ground, and this is why we're also pretty optimistic, because we are building the team.

But the three older market are very active as well.

And I'm one of your slides you mentioned that you'll be bidding over 500 megawatts, but you expect to win about 400 megawatts. So that's.

Close to an 80% success rate.

I would say that the.

500 to 500 is very very prudish, [laughter] and that's just for 2024, yeah yeah.

Rfp's come we may bid a much greater number of megawatts as well in the future years.

Okay got it.

And then I also had another follow up question on Hawaii. So.

Michel Letelier: So we now have more boots on the ground that can deliver more and more projects, and you will see an increased activity in prospective projects getting into early-stage and then mid- and advanced. That's a strategy-wide, as you're going to see more projects being chipped in in those categories. The advanced bucket, which is obviously the one that has more probability of getting into a development project and then eventually under construction, this is what you have to focus on is our ability to create more and more prospective project pipelines and certainly focus more on the advanced sector. The early stage is always the early stage. Those are the incoming projects that will have to go through development activities, but what we are going to focus on is the third bucket, the advanced projects. They're going to be ready to bid on RFPs, and like I said, there will be a lot of activity in Canada, but the three other markets are very active as well. And in one of your slides, you mentioned that you'll be bidding over 500 megawatts. 400 megawatts, so that's. I would say that the 500 is very, very conservative.

Just so that I'm understanding it correctly, so the H K project will cost.

About 200 million in total of which is $110 has been invested.

But you <unk>.

Written down $94 million.

So far that's right.

And is that mainly due to unforeseen costs or is it or was it more of that.

Kind of academic exercise or you're you're talking to like [laughter].

Yeah. My other shows won't like me, if I say academics like this but it's a mix of things that Nelson of course, we've seen increased costs and as you know we were successful in.

Negotiating or a P P with equal to capture a better price to actually mitigate some of that increased cost.

But not all of it.

And then the effects of an interest rate rising the the the quality of the P. P being I guess diminished with the he goes issues.

Makes the cost of capital on that project different than what we are originally anticipated. So it's it's harder to quit construction deaths or a longterm depth or tax equity as well as a bit more demanding in these circumstances. So it affects the economy makes up their project and.

And so we took the the right down we took a conservative right down I have to say so we preferred to.

Nelson Ng: And that's just for 2024. Yeah, yeah. As the RFPs come, we may bid a much greater number of megawatts as well in the future years. And then I just had another follow-up question on Hawaii. So... so that I'm understanding. So the HK project will cost about $200 million in total, of which $110 million has been invested.

You know to be more conservative in that regard so hence the the end result.

Okay and then just one last question the the trip is still in place.

Yeah reason why he chose to kind of keep that in place cause obviously.

It's a bit diluted but you also yeah, maybe that could cause offset that trip.

So the trip.

Yeah. So the drip is a service to our shoulders really that we provide it's if you look in the in the financial statements of 2020th we it's been used only to the tune of two and a half million. So it's it's very marginal and where we're gonna be looking at you know the options to actually use the trip by.

Jean Trudel: Bye. Thank you. And is that mainly due to, like, costs, or is it more of that?

Jean Trudel: Yeah, and my auditors won't like me if I say academics like this, but it's a mix of things at Nelson. Of course, we've seen increased costs, and as you know, we were successful in renegotiating our PPA with HECO to capture a better price to actually mitigate some of that increased cost. But not all of it.

Buying on the market market shares on the market instead of.

Of issuing from the <unk>.

You sure. So the effect is really minimal.

At the end of the day, Yeah, we considered.

Taking it out, but it's like saying, it's a little bit of a of a service too small investor that you know sometimes when do you have a small position, it's kind of hard to track checks being.

Jean Trudel: And then the effect of interest rates rising, the quality of the PPE being, I guess, diminished with HECO's issues, makes the cost of capital on that project different than what we originally anticipated. So, it's harder to get construction debt or long-term debt, or tax equity, as well, is a bit more demanding in these circumstances. So, it affects the economics of the project, and so we took a conservative write-down, I have to say. So we prefer to be more conservative in that regard.

Everybody has to your investment ability, so, but yeah like giant, saying, we we decided to keep it because it's so very marginal.

And the idea of buying on the market is probably what we're going to do.

Okay, great et cetera on how to leave it there.

Thank goodness.

Ladies and gentlemen, if there are any.

Additional questions at this time, please press star followed by the one.

If you are using a speaker phone.

Before pressing I need to see the next question.

<unk> comes from.

Nelson Ng: So hence the end result. Okay. And then just one last question: is the DRIP still in place?

With <unk>. Please go ahead.

Hi.

I have a question.

Good morning, I have a question around maybe the timing of it is.

Jean Trudel: I chose to kind of keep that in place, because there's obviously... dilutive, but you also have your NSAB there to offset that. So the drip.

Surgeon to to recalibrate and changing <unk> location.

Could you could you comment on where.

You are bored and turn off I started to seriously look at Recalibration.

Jean Trudel: The DRIP is a service to our shareholders that we provide. If you look at the financial statement of 2023, it's been used only to the tune of $2.5 million. It's very marginal. We're going to be looking at the options to actually use the DRIP by buying shares on the market instead of issuing new shares. So the effect is really minimal at the end of the day.

And then can you also comment was there anything anything else the board.

Consider to.

Surface value in your stomach up outside of the Ah dividend reset.

I think that I will not comment on when it's always something that the board is concerned about always trying to have the best location of capital and I guess it you know the the payout ratio is a little bit of a seizure the the the income trust.

Jean Trudel: And the idea of buying on the market is probably what we're going to do. Great. Thanks, everyone.

Area. It didn't it doesn't fit very well I think that what's what we we decided where we have this great possibility of growth and.

Ben Pham: Thank you. Ladies and gentlemen, if there are any additional questions at this time, please press star followed by 1. As a reminder, if you are using a speakerphone, please lift the handset before pressing any button. Your next question comes from Ben Pham with BMO. Please go ahead.

And we have had some challenge in terms of long term average in the last couple of years. So the payout ratio was always a little bit of pressure.

Ben Pham: Thank you. Hi. I had a question... Good morning. I have a question around maybe the timing of your decision to recalibrate Tangent Kappa allocation.

Given the state of the of the production. So we we basically take the view that the it's the best strategy for US is too focused on taking that dividend and put it into work in our organic grow opportunity.

Michel Letelier: Can you comment on when you or the board internally started to seriously look at recalibration? And I can also comment, was there anything else the board did? might have considered to surface value in your stock outside of the dividend reset. I think that I will not comment on when; it's always something that the Board is concerned about always trying to have the best allocation of capital, and I guess the payout ratio is a little bit of a vestige of the income trust era; it doesn't fit very well. I think that's what we decided, where we have this great possibility of growth and we have had some challenges in terms of the long-term average in the last couple of years. So the payout ratio was always a little bit of a pressure given the state of production.

This is definitly of what has been driven into the decision of taking this new policy is the.

Unprecedented opportunities that we see in our marketplace.

You can find me and it's it's really a value creation anglicize like we went through here.

We saw the airport and she's ahead, and we thought about how to maximize value to shareholders and capturing that growth having more flexibility to do so was the best course of action.

But that doesn't mean that we will be treating and then spending that that that money I think that we are very clear we wanted to focus and create value with these initiatives and that's what we're going to be we wanna be disciplined we have a lot of opportunity will be Jerry.

Michel Letelier: So we basically take the view that it's the best strategy for us to focus on taking that dividend and putting it into work in our organic growth opportunity. This is definitely what has been driven into the decision of taking this new policy is the unprecedented opportunity that we see in our market. If I may add, it's really a value creation exercise that we went through here. We saw the opportunities ahead, and we thought about how to maximize value for shareholders, and capturing that growth, having more flexibility to do so, was the best course of action. But that doesn't mean that we will be freeing up and then spending that money. I think that we are very clear about what we want to focus on and create value with these initiatives, and that's what we're going to do. We want to be disciplined.

Picking the project that we want to win.

And can you comment.

Did you consider anything else.

<unk> maybe.

And I should say on the hot side or.

And a salary at partnership with a pension plan per capita was was that our areas that you get evaluated.

The board is always looking and asking management do provide alternative Ah, but I think that getting the low market.

Michel Letelier: We have a lot of opportunity. We'll be cherry-picking the projects that we want to work on. And can you comment? Did you consider anything else?

Or challenging market. These days in terms of value of assets of reasonable asset.

Ben Pham: Thank you. David Quezada, Innergex Renewable Energy Inc. And I should say on the hydro side, or... an accelerated partnership of a pension plan for capital. Were there other areas that you had evaluated?

We thought that trading our own greenfield organic growth once the best the best way to go yeah on the longterm as well right. So it's a it's a it's a decision.

Jean Trudel: The board is always looking and asking management to provide alternatives, but I think that given the low market or challenging market these days in terms of the value of renewable assets, we thought that creating our own greenfield organic growth was the best way to go. And in the long term as well, so it's a decision that will survive just a single asset sale, for example. This is giving us flexibility for the coming decade and not just a one-year, one-time event as an asset sale would represent. Asset recycling, we've talked about this, and we'll look into this to self-fund ourselves, but strategically speaking, the decision we just took now is for the long-duration profile. And maybe the last one for me, you mentioned accelerated growth and there were comments around self-funding the growth, but I think you've added an even capital recycling too with, If you have growth exceeding the self-funding model, I think that seems to be the message you're giving. But what if growth exceeds those two buckets? Do you put a lid on CapEx?

That will survive just a single asset sell it for example, this is giving us ticks ability for the coming decade, and not just a one year one time event as in that's itself represents asset sales recycling. We've talked about this will look into this too installed fund ourselves, but it was strategically speaking the decision that we just took now is.

As for the long duration.

Profile.

Okay and May maybe the last one for me.

And you mentioned that.

Alrighty <unk>, there's comments around south funding.

<unk>, but I think.

And even capital of recycling too with.

If you have <unk>. This all funding model I think that's that seems to be the message that you're having.

But what if growth.

Exceeds those two buckets. So you put a lid on capex and pulled.

Pullback projects if you reach.

Decision, where you may need to issue equity.

Well, we're not saying that it will never issue equity.

But I don't think we have any need for the near the near future to issue a week, we'd eat that's the message we're saying if we're super successful then we have a lot of great project with great Ah Ah Ah creative growth, we may consider down the road eventually to issue equity but.

Michel Letelier: Pull back projects if you reach a decision where you may need to issue equity. Well, we're not saying that we'll never issue equity then, but I don't think we have any need in the near future to issue equity. That's the message we're saying. If we're super successful and we have a lot of great projects with great creative growth, we may consider down the road eventually to issue equity. But, you know, being a public company... That could happen, but what we're seeing is that we will not use equity as we did in the past to finance existing and mature projects. Instead, we'll be focusing on our ability to create accretive growth per share in our organic pipeline of development. If we're too successful, that's a good problem. It's not a big issue to sell down or sell projects that have a good cash flow profile.

Being a public companies.

That could happen, but what we're seeing what we're saying is that we will not use equally as we did in the past due finance existing and mature project will be focusing on our ability to create accretive growth per share in our organic.

A pipeline of development, if we're we're too successful.

Good provenance, that's a good problem, usually it's not a big issue to settle down or sell project that have good casual profiles.

Okay alright, thank you.

Thank you.

Mr <unk>.

There are no further questions at this time.

Ben Pham: Okay, all right, thank you. Thank you. Mr. Bedouin, there are no further questions at this time. Thank you for joining us everyone today and for your interest in Innergex. We look forward to updating you on our continued progress next quarter. Thank you. Thank you, everybody. Thank you very much. Ladies and gentlemen, you may now disconnect your line.

Thank you for joining us everyone today and for your interest and energize. We look forward to updating you on our continued progress next quarter. Thank you. Thank you everybody. Thank you very much.

Ladies and gentlemen, you may now disconnect your lines.

Uh-huh.

[music].

Okay.

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