Accelerated disciplined growth and
diversification initiatives
MONTREAL, June 17, 2021 /CNW Telbec/ - Boralex Inc.
("Boralex" or the "Company") (TSX: BLX) today unveiled its updated
strategic plan and introduced new corporate objectives for 2025 at
its 2021 Investor Day. The Company continues to build on the four
key strategic directions of the plan launched in 2019: growth,
diversification, customers, and optimization. The strategic plan
also integrates Boralex's corporate social responsibility (CSR)
strategy. Focusing on these key areas will allow for
accelerated development of the wind and solar portfolios in the
high-potential markets already targeted by the Company and in new
markets in Europe and the United States, while also creating the
opportunity to introduce energy storage in regions where renewable
energy networks are the most developed.
Highlights of the strategic plan
- Significantly increase the share of solar power in the asset
and project portfolio and make a breakthrough in storage
- Position the United States as
our primary market for development and diversify our geographic
presence in Europe and other U.S.
states
- Accelerate the wind power development in Canada
- Optimize capital structure with a greater share of corporate
financing, including sustainable financing
- Expand our existing customer base to directly supply
electricity consuming industries interested in improving their
climate and societal footprint
- Integrate our corporate social responsibility (CSR) strategy,
including environmental, social and governance (ESG) priorities,
into Boralex's strategic directions
- Present 2025 corporate objectives including organic and
inorganic growth (see details on page 2)
The 2025 Strategic Plan presented describes the rapid and
significant changes in renewable energy development policies and
greenhouse gas emission reduction targets in some countries and
provinces, including Quebec,
several U.S. states, and some European countries. Boralex's
management has also reported strong demand for renewable energy
from environmentally conscious companies. These factors have
created a business environment that offers numerous opportunities
for growth, both organic and through acquisitions.
In this highly favourable context and supported by a strong
balance sheet, Boralex has announced its goal to double its
installed capacity under management and achieve a combined
EBITDA(A) of $800–850 million and discretionary cash flows of
$240–260 million by 2025, representing compound annual growth rates
ranging from 9–15% for all three performance measures.
"We are proud of the work our team has accomplished in preparing
this ambitious plan that will allow Boralex to accelerate its
development initiatives in the high-growth renewable energy sector.
This development will be carried out in a disciplined manner and
with the utmost respect for environmental, social and corporate
governance criteria, as our strategic plan integrates our corporate
social responsibility strategy. Our goal is to become the leading
CSR reference for our partners over the next few years by going
beyond renewable energy," said Patrick Decostre, President and
CEO of Boralex.
"Over the past 30 years, Boralex has developed a strong
corporate brand and significant competitive advantages, including
optimizing access to power grids, securing land sites, developing
large project portfolios and exercising strong financial
discipline. As our most recent internal survey indicates, our
employees are highly engaged, despite the pandemic. We will build
on all these strengths in deploying our plan and aim to achieve
"Employer of Choice" recognition during this period,"
added Patrick Decostre.
"We will continue to pursue disciplined growth through projects,
acquisitions and partnerships that meet specific criteria for an
improved asset portfolio with a return that meets the expectations
of our shareholders," explained Bruno Guilmette, Vice
President and Chief Financial Officer.
Boralex's strategic directions
1. Growth
- Accelerate organic growth to maximize future value creation
across our markets
- Make the United States our
priority market and extend our European presence by targeting a few
additional growth markets
- Complement our organic growth with targeted acquisitions
2. Diversification
- Increase our presence in the solar energy sector and
participate in the development of the storage markets
- Accelerate the development of our power marketing skills to
optimize our contract portfolio
3. Customers
- Develop and expand our existing customer base to directly
supply electricity-consuming industries interested in reducing
their carbon footprint
- Modify our business practices to focus on customer needs based
on geographical location
4. Optimization
- Optimize our assets and promote our organization's sustainable
performance culture
- Use corporate financing, including sustainable financing, and
partnerships to promote our growth
- Increase the efficiency of corporate services through
simplification, digitalization, and automation
Corporate objectives for 2025
- Double the installed capacity under management from 2.2 GW at
the end of 2020 to 4.4 GW by 2025 and reach 10–12 GW by 2030
- Be the leading CSR reference for our partners by going beyond
renewable energy
- Achieve $800–850 million in combined EBITDA(A) by 2025, an
annual increase of 9–11%, or 10–12% when normalizing for
exceptionally strong wind conditions in 2020
- Achieve $240–260 million in discretionary cash flows by 2025,
an annual increase of 10–12%, or 14–16% when normalizing for
exceptionally strong wind conditions in 2020
- Increase the portion of corporate financing, including
sustainable financing, and obtain an Investment Grade credit
rating for Boralex Inc.
- Reinvest 50–70% of discretionary cash flows in growth. The
Company currently anticipates that the quarterly dividend amount
per share will be maintained at $0.165 and that additional cash flows from the
Company's growth will be allocated primarily to its growth
initiatives.
Corporate social responsibility (CSR) strategy
Boralex took advantage of Investor Day to update its most recent
accomplishments and ongoing initiatives with respect to CSR. As
mentioned in the corporate objectives, Boralex aims to be the
leading CSR reference for its partners by going beyond renewable
energy. The Company intends to accelerate its Beyond
Renewable Energy approach, which includes ten
environmental, social and governance priorities, starting in
2021.
Key achievements and ongoing initiatives mentioned at the
Investor Day include the following:
Recent achievements
- Historic partnership with the Innu Nation in the 200 MW Apuiat
wind project in Quebec
- Implementation of new technologies to protect birds and bats
near certain wind farms
- Unconscious bias training in diversity and inclusion and a
webcast on mental health
- Significant progress in employee engagement based on the
results of the most recent annual survey
- Improved disclosure of executive compensation and increased
shareholding requirements for members of the management team
- Signing of the Solar Energy Industry Association Pledge,
a formal commitment against the use of forced labour in the solar
industry
Ongoing initiatives
- Production of the Company's carbon footprint report
- Analysis of the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)
- Review of health and safety targets and reporting
- Complete review of the procurement policy
- Implementation of various initiatives identified in the action
plans for all ten CSR priority issues
For more information on Boralex's strategic plan, visit the
"Investors" section at www.boralex.com.
About Boralex
At Boralex, we have been providing affordable renewable energy
accessible to everyone for over 30 years. As a leader in the
Canadian market and France's
largest independent producer of onshore wind power, we also have
facilities in the United States
and development projects in the United
Kingdom. Over the past five years, our installed capacity
has more than doubled to 2.5 GW. We are developing a portfolio of
wind, solar and storage projects of more than 2.7 GW, guided by our
values and our corporate social responsibility (CSR) approach.
Through profitable and sustainable growth, Boralex is actively
participating in the fight against global warming. Thanks to our
fearlessness, our discipline, our expertise and our diversity, we
continue to be an industry leader. Boralex's shares are listed on
the Toronto Stock Exchange under the ticker symbol BLX.
For more information, visit www.boralex.com or www.sedar.com.
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Disclaimer regarding forward-looking statements
Certain statements contained in this release, including those
related to results and performance for future periods, installed
capacity targets, EBITDA(A) and discretionary cash flows, the
Company's strategic plan, business model and growth strategy,
organic growth and growth through mergers and acquisitions,
obtaining an investment grade credit rating by 2025, maintaining a
quarterly dividend of $0.165 per
share, financial targets and corporate social responsibility (CSR)
objectives are forward-looking statements based on current
forecasts, as defined by securities legislation. Often, but not
always, forward-looking statements can be identified by the use of
words such as "expect," "anticipate," "evaluate," "estimate,"
"believe" or variations (including negative variations) of such
words, or by the use of words such as "towards," "about," "of the
opinion," "expected," "intended for," "potential," "plan,"
"continue" or similar words, including in their negative form, or
other comparable terms, or by the use of the future or conditional
tense.
Forward-looking statements are based on major assumptions,
including those about the Company's return on its projects, as
projected by management with respect to wind and other factors,
opportunities that may be available in the various sectors targeted
for growth or diversification, assumptions made about EBITDA(A)
margins, assumptions made about the sector realities and general
economic conditions, competition, exchange rates as well as the
availability of funding and partners. While the Company considers
these factors and assumptions to be reasonable, based on the
information currently available to the Company, they may prove to
be inaccurate.
Boralex wishes to clarify that, by their very nature,
forward-looking statements involve risks and uncertainties, and
that its results, or measures it adopts, could be significantly
different from those indicated or underlying those statements, or
could affect the degree to which a given forward–looking statement
is achieved. The main factors that may result in any significant
discrepancy between the Company's actual results and the
forward-looking financial information or expectations expressed in
forward-looking statements include the general impact of economic
conditions, fluctuations in various currencies, fluctuations in
energy prices, the Company's financing capacity, competition,
changes in general market conditions, industry regulations,
litigation and other regulatory issues related to projects in
operation or under development, as well as other factors listed in
the Company's filings with the various securities commissions.
Unless otherwise specified by the Company, forward-looking
statements do not take into account the effect that transactions,
non-recurring items or other exceptional items announced or
occurring after such statements have been made may have on the
Company's activities. There is no guarantee that the results,
performance or accomplishments, as expressed or implied in the
forward-looking statements, will materialize. Readers are therefore
urged not to rely unduly on these forward-looking statements.
Unless required by applicable securities legislation, Boralex's
management assumes no obligation to update or revise
forward-looking statements in light of new information, future
events or other changes.
Non-IFRS measures
EBITDA(A) represents earnings before interest, taxes and
depreciation, adjusted to exclude other items such as acquisition
costs, net loss on financial instruments and foreign exchange loss
(gain). EBITDA(A) is a non-IFRS measure and does not have a
standardized meaning under IFRS; accordingly, it may not be
comparable to similarly named measures used by other companies.
Discretionary cash flows are defined as net cash flows related
to operating activities before changes in "non-cash items related
to operating activities," less (i) distributions paid to
non–controlling interests (ii) additions to property, plant and
equipment (maintaining operations), and (iii) repayments on
non-current debt (projects); plus (iv) development costs (from the
statement of earnings (loss)). Discretionary cash flows are a
non-IFRS measure and do not have a standardized meaning under IFRS;
accordingly, they may not be comparable to similarly named measures
used by other companies.
For more information on EBITDA(A) and discretionary cash flows,
please refer to the "Non-IFRS measures" section of Boralex's 2020
annual report, available on Boralex's website (boralex.com) and on
SEDAR (sedar.com)
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SOURCE Boralex Inc.