Innergex Renewable Energy : Investor Presentation - June 2017

(TSX: INE)

JUNE 2017

This document contains forward-looking information within the meaning of securities legislations ("Forward-Looking Information"), which can generally be identified by the use of words such as "approximately", "may", "will", "could", "believes", "expects", "intends", "should", "plans", "potential", "project", "anticipates", "estimates", "scheduled" or "forecasts", or other comparable terminology that states that certain events will or will not occur. It represents the estimates and expectations of the Corporation relating to future results and developments as of the date of this document. It includes future-oriented financial information, such as projected Adjusted EBITDA, estimated project costs and expected project financing, Free Cash Flow and Payout Ratio to inform readers of the potential financial impact of commissioning existing development projects. This information may not be appropriate for other purposes. Forward-Looking Information in this document is based on certain key assumptions made by the Corporation, including those concerning hydrology, wind regimes and solar irradiation, performance of operating facilities, financial market conditions, and the Corporation's success in developing new facilities.

The material risks and uncertainties that may cause actual results and developments to be materially different from current expressed Forward-Looking Information are referred to in the Corporation's Annual Information Form in the "Risk Factors" section and include, without limitation: the ability of the Corporation to execute its strategy for building shareholder value; its ability to raise additional capital and the state of capital markets; liquidity risks related to derivative financial instruments; variability in hydrology, wind regimes and solar irradiation; delays and cost overruns in the design and construction of projects, uncertainty surrounding the development of new facilities; variability of installation performance and related penalties; and the ability to secure new power purchase agreements or to renew existing ones. The principal assumptions, risks and uncertainties concerning specific Forward-Looking Information contained in this document are more fully outlined on page 23.

Although the Corporation believes that the expectations and assumptions on which forward-looking information is based are reasonable, readers of this document are cautioned not to rely unduly on this Forward-Looking Information since no assurance can be given that it will prove to be correct. 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 of this document, unless required by legislation.

Adjusted EBITDA, Free Cash Flow and Payout Ratio are not measures recognized by International Financial Reporting Standards (IFRS) and have no meaning prescribed by it. References to "Adjusted EBITDA" are to revenues less operating expenses, general and administrative expenses and prospective project expenses. References to "Free Cash Flow" are to cash flows from operating activities before changes in non-cash operating working capital items, less maintenance capital expenditures net of proceeds from disposals, scheduled debt principal payments, preferred share dividends declared and the portion of Free Cash Flow attributed to non-controlling interests, plus cash receipts by the Harrison Hydro L.P. for the wheeling services to be provided to other facilities owned by the Corporation over the course of their power purchase agreement, plus or minus other elements that are not representative of the Corporation's long-term cash generating capacity, such as transaction costs related to realized acquisitions (which are financed at the time of the acquisition) and realized losses or gains on derivative financial instruments used to hedge the interest rate on project-level debt or the exchange rate on equipment purchases. References to "Payout Ratio" are to dividends declared on common shares divided by Free Cash Flow. Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings and Free Cash Flow should not be construed as an alternative to cash flows from operating activities, as determined in accordance with IFRS.

Innergex believes that these indicators are important, as they provide management and the reader with additional information about the Corporation's production and cash generation capabilities, its ability to sustain current dividends and dividend increases and its ability to fund its growth. These indicators also facilitate comparison of results over different periods.

• Innergex is a leading independent renewable power producer based in Canada

  HISTORY

  FOUNDED 1990

  FIRST IPO 2003

  FIRST LISTING IN THE S&P/TSX COMPOSITE INDEX 2013

  SOURCES OF RENEWABLE ENERGY HYDRO WIND SOLAR

  INSTALLED CAPACITY 1,758 MW (1,063 MW NET)

  MARKETS QUEBEC, ONTARIO AND BRITISH COLUMBIA, CANADA FRANCE IDAHO, USA

  PUBLIC LISTING TSX:INE

  DIVIDEND / YIELD $0.66 4.5%

  INVESTMENT GRADE CREDIT RATING BBB- (S&P)

  MARKET CAP* $1.6 billion ENTERPRISE VALUE $4.6 billion

  SERIES A PREFERRED SHARES INE.PR.A

  SERIES C PREFERRED SHARES INE.PR.C

  4.25% CONVERTIBLE DEBENTURES INE.DB.A

  *As at March 31, 2017.

  HIGHLIGHTS
• Consistent and predictable cash flows

  from high quality, long-life contracted assets

• Pure play in renewable energy

  with a focus on hydro assets

• Long and successful history

  with over 25 years in developing, owning and operating run-of-river hydroelectric facilities, wind farms and solar photovoltaic farms

• Strong management

  cumulating many years of experience with Innergex and in the industry, with specific development and operations experience, engineering expertise, and financial acumen

• Growth

  from projects currently under development in Canada and from an international expansion strategy into Europe, USA and Latin America

• Dividend

  that is sustainable and growing

• Low-risk business model with a stable and growing dividend