• Revenues up 4% to $150.5 million in Q2 2020 compared with Q2 2019.
• Revenues Proportionate up 9% to $192.0 million in Q2 2020 compared with Q2 2019.
• Adjusted EBITDA stable at $105.3 million in Q2 2020 compared with Q2 2019.
• Adjusted EBITDA Proportionate up 10% to $140.0 million in Q2 2020 compared with Q2 2019.
• On May 14, 2020, Innergex completed the acquisition of a 68 MW solar farm in Chile.
• On July 15, 2020, Innergex completed the acquisition of six wind farms in Idaho, United States totalling 138 MW.
• Eight projects at an advanced development stage, including the new 225.6 MW wind project in Texas and a stand-alone 9 MWh battery storage project in France.

LONGUEUIL, QC, Aug. 4, 2020 /CNW Telbec/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") today released its operating and financial results for the second quarter ended June 30, 2020. The recent commissionings in the wind and solar segments contributed to posting increased results this quarter compared to the same period last year, despite the curtailment imposed by BC Hydro in the hydroelectric power generation segment.

"Along with the continued construction of Hillcrest and the good news that work resumed at Innavik, the past months were also very exciting in terms of development, with significant progress for our prospective and development projects," said Michel Letellier, President and Chief executive Officer of Innergex. "We made huge strides with our Griffin Trail wind project in Texas following the extension of the Production Tax Credit program. We also qualified two new solar and battery projects in the second Hawaii RFP, and we are rapidly progressing with multiple other promising projects in the Northeast and other parts of the United States. Our development efforts in France are beginning to pay off with the construction of the Yonne II wind farm, the development of our first stand-alone battery storage project and the advancement of other prospective projects. We are very optimistic for our future, which will combine our own development efforts with strategic acquisitions that will further solidify our balanced portfolio of assets. We recently completed two acquisitions that should have a positive impact on cash available for distribution and reduce pressure on our payout ratio."

Update on COVID-19
Innergex took numerous measures to protect employees, suppliers and business partners from COVID-19.

Power production activities have continued in all segments as they have been deemed essential service in every region where we operate.

BC Hydro sent curtailment notices for some hydro facilities for the period from May 22, 2020 and to July 20, 2020. BC Hydro cites the current COVID-19 pandemic and related governmental measures taken in response to it as constituting a "force majeure" event under the electricity purchase agreements ("EPAs"), and resulting in a situation in which BC Hydro is unable to accept or purchase energy under the EPAs. Innergex disputes that the current pandemic and related governmental measures in any way prevent BC Hydro from fulfilling its obligations to accept and purchase energy under the EPAs or enable it to invoke "force majeure" provisions under the EPAs to suspend these obligations. Innergex complied with BC Hydro's curtailment request, but did so under protest and will seek to enforce its rights under the EPAs.

Our renewable power production is sold mainly through power purchase agreements, which include sufficient protection to prevent for material reduction in demand, to solid counterparts and no credit issues are anticipated. As such, we do not intend to make any changes to our workforce and we intend to maintain salaries and benefits.

Construction activities at our Hillcrest solar project continued without interruption while construction activities for the Innavik hydro project and Yonne II wind project have resumed in July 2020.

Support to Surrounding Communities
To support communities surrounding our facilities and projects in all segments, the Corporation launched the "Time for Solidarity" campaign in March 2020.

The Corporation distributed $255,000 in total to local charities such as food banks, women shelters and relief organizations to alleviate the effects of the COVID-19 crisis. Employees were also invited to make personal donations to these charities and proudly raised $37,225. Such relief organizations included Centraide United Way, Ressort Gaspésie-Iles-de-la-Madeleine, BC First Nations Health Authority, BC Society of Transition Houses, Women in Need, BCAAFC - British Columbia Association of Aboriginal Friendship Centres, Moisson Montréal and Regroupement des centres d'amitié autochtones du Québec in Canada, the Wichita Falls Feeding America Food Bank, United Way and Hope Emergency Services in the United States, Restos du Coeur in France, and Red de Alimentos and Banco de Alimentos Bìobìo Solidario in Chile.

OPERATING RESULTS

The figures presented in this press release are for the continuing operations unless otherwise indicated.

Free Cash Flow and Payout Ratio

The following table summarizes elements to add or subtract to derive a normalized Free Cash Flow and Payout Ratio:

The Corporation considers the $73.8 million Free Cash Flow not to represent the current cash-generating capacity of its operations.

For the trailing twelve months ended June 30, 2020, the dividends on common shares declared by the Corporation amounted to 150% of Free Cash Flow, compared with 79% for the corresponding period last year. When normalizing for unfavourable one-off or non-recurrent items and timing of certain interest payments, the Corporation estimates its Payout Ratio to be 105% of its generated Free Cash Flow. These items include an unfavourable impact on the Adjusted EBITDA Proportionate stemming from the BC Hydro imposed curtailment during 2020, the timing of certain project loan interest payments which resulted in the Corporation having made 5 quarterly payments during the trailing four quarters, and an increase in quarterly dividends mainly related to the issuance of 34,636,823 common shares to Hydro-Québec under the private placement, while a large portion of the funds have yet to be invested in cash generating projects, or have been used towards recent acquisitions whose contributions to the Corporation's Free Cash Flow has not yet fully materialized. These items were partly offset by a concurrent decrease in the corporate revolving facilities interest expense related to the private placement by Hydro-Québec.

For the trailing twelve months ended June 30, 2020, the Corporation generated Free Cash Flow of $73.8 million, compared with $115.7 million for the corresponding period last year. The unfavourable variance in Free Cash Flow is due mainly to a decrease in Free Cash Flow attributable to discontinued operations, including the recovery of maintenance capital expenditures, following the sale of HS Orka in the second quarter of 2019, an unfavourable impact to Adjusted EBITDA Proportionate stemming from the BC Hydro imposed curtailment during 2020, timing of certain project loan interest payments which resulted in the Corporation having made 5 quarterly payments during the trailing four quarters and lower generation due to unfavourable weather conditions. These items were partly offset by the Free Cash Flow contribution of recently acquired and commissioned projects and lower interest payment on the corporate revolving facilities concurrent with the Hydro-Québec Private Placement.

On a forward-looking basis, when taking into account a full-year contribution of the two recently announced acquisitions, the full effect of the annualized dividend following the Hydro-Québec Private Placement and adding back the above described normalized items, the Corporation anticipates the Payout Ratio for the next twelve months to be around 100%.

"Considering the current outlook of the Corporation and the additional cash-generating capacity to be unlocked from our growth strategy combining acquisitions and project development using the untapped funds from the private placement of Hydro-Québec and current excess cash capacity, we are confident to attain a Payout Ratio below 100% in a near future," said Michel Letellier.

Three-month period ended June 30, 2020

Production increased 25% and Production Proportionate increased 21% compared with the same quarter last year.

• Production was 93% of the LTA:
• Hydroelectric facilities: 86% of their LTA;
• Wind farms: 102% of their LTA; and
• Solar farms: 89% of their LTA.

The 4% increase in revenues mainly stems from the commissioning of the Foard City wind farm and the Phoebe solar facility, higher revenues at the Quebec wind facilities from higher production and the acquisition of the Salvador solar farm in Chile on May 14, 2020 (the "Salvador Acquisition"). These items were partly offset by lower revenues from the hydro facilities in British Columbia attributable in part to lower production from five facilities due to the curtailment imposed by BC Hydro and to lower revenues from lower production at some Quebec hydro facilities and wind farms in France.

The Adjusted EBITDA is stable compared with the same quarter last year due mainly to higher contribution from the Quebec wind facilities explained by higher revenues and lower operational expenses, the commissioning of the Foard City wind farm and the Phoebe solar facility, higher contribution from the Ontario solar facility due to higher revenues and to the Salvador Acquisition, offset by the lower contribution from the hydro facilities in British Columbia and in Quebec and the lower contribution from the wind facilities in France.

The Adjusted EBITDA Margin decreased from 72.7% to 70.0% for the three-month period due mainly to a lower margin from the projects that were commissioned in 2019 and higher general and administrative expenses.

The 9% increase in Revenues Proportionate is mainly explained by the higher contribution of the Production Tax Credits (PTCs) from the commissioning of Foard City in September 2019, the contribution of the consolidated revenues, higher revenues at the Toba Montrose hydro facility in British Columbia and higher revenues at the Dokie wind facility. These items were partly offset by lower revenues from the hydro facilities in Chile and the Jimmie Creek hydro facility which was impacted by the curtailment imposed by BC Hydro as well as by a lower contribution from the Shannon and Flat Top wind farms due to unfavourable nodal prices.

The 10% increase in Adjusted EBITDA Proportionate is mainly due to the PTCs generated by the Foard City wind farm following its commissioning in September, partly offset by a lower contribution from the Flat Top and Shannon facilities due to lower revenues.

The Adjusted EBITDA Proportionate Margin increased from 72.3% to 72.9% for the three-month period mainly explained by a higher margin in the wind segment mostly due to the Foard City facility's PTCs which directly improve the margin, partly offset by higher general and administrative expenses.

For the three-month period ended June 30, 2020, the Corporation recorded a net loss from continuing operations of $1.6 million (basic and diluted net loss from continuing operations of $0.02 per share), compared with a net loss from continuing operations of $10.5 million (basic and diluted net loss from continuing operations of $0.07 per share) for the corresponding period in 2019. The $8.9 million variation can be explained by a $18.6 million increase in other income, a $9.5 million gain related to the change in fair value of financial instruments and a $3.0 million decrease in finance costs. These items were partly offset by a $10.4 million increase in depreciation and amortization and a $12.6 million increase in the share of loss of joint ventures and associates.

Adjusted Net Earnings from continuing operations for the three-month period ended June 30, 2020, was $4.5 million, compared with an Adjusted Net Loss from continuing operations of $2.7 million in 2019. The Adjusted Net Earnings from continuing operations excludes the impact of the unrealized portion of the change in fair value of financial instruments of $2.6 million, of the realized portion of the change in fair value of the Phoebe basis hedge of $0.8 million, of the realized loss on foreign exchange forward contracts of $0.8 million, of the income tax recovery related to above items of $0.2 million and of the share of unrealized portion of the change in fair value of financial instruments of joint ventures and associates, net of related income tax of $5.3 million.

Six-month period ended June 30, 2020
Production increased 27% and Production Proportionate increased 22% compared with the same quarter last year.

• Production was 93% of the LTA:
• Hydroelectric facilities: 85% of their LTA;
• Wind farms: 100% of their LTA; and
• Solar farms: 85% of their LTA.

The 4% increase in revenues mainly stems from the commissioning of the Foard City wind farm and the Phoebe solar facility, the Salvador Acquisition and to higher revenues from the France wind farms due to higher production. These items were partly offset by lower revenues from the hydro facilities in British Columbia due in part to the curtailment imposed by BC Hydro, to lower production and average selling prices at some hydro facilities in Quebec and to lower revenues from lower production at the Quebec wind facilities.

The 1% decrease in Adjusted EBITDA is due mainly to lower contribution from the hydro facilities in British Columbia mostly attributable to a net unfavourable impact of lower revenues over lower operational expenses and to lower contribution from the hydro facilities in Quebec explained by lower revenues and to lower contribution from the wind facilities in Quebec mostly attributable to a net unfavourable impact of lower revenues overs lower operational expenses. These items were partly offset by the commissioning of the Foard City wind farm and the Phoebe solar facility and higher contribution from the wind facilities in France due to higher revenues.

The Adjusted EBITDA Margin decreased from 73% to 69% for the six-month period due mainly to a lower margin from the projects that were commissioned in 2019 and higher general and administrative expenses.

The 10% increase in Revenues Proportionate is mainly explained by the higher contribution of the Production Tax Credits (PTCs) from the commissioning of Foard City in September 2019, the contribution of the consolidated revenues, higher revenues at the Toba Montrose hydro facility in British Columbia and higher revenues at the Dokie wind facility. These items were partly offset by lower revenues from the hydro facilities in Chile and the Jimmie Creek hydro facility which was impacted by the curtailment imposed by BC Hydro as well as by a lower contribution from the Shannon wind farm due to the unfavourable nodal prices over higher production.

The 9% increase in Adjusted EBITDA Proportionate is mainly due to the PTCs generated by the Foard City wind farm following its commissioning in September, partly offset by a lower contribution from the Shannon wind facility and the Jimmie Creek hydro facility.

The Adjusted EBITDA Proportionate Margin decreased from 72.1% to 71.8% for the six-month period mainly explained by a lower margin from the solar segment due to the Phoebe facility and higher general and administrative expenses, partly offset by a favorable impact of higher production by facilities with a better margin.

For the six-month period ended June 30, 2020, the Corporation recorded a net loss from continuing operations of $48.5 million (basic and diluted net loss from continuing operations of $0.36 per share), compared with a net loss from continuing operations of $14.9 million (basic and diluted net loss from continuing operations of $0.14 per share) for the corresponding period in 2019. The $33.6 million variation can be explained by a $25.7 million increase in the share of loss of joint ventures and associates, a $23.5 million loss related to the change in fair value of financial instruments, a $17.5 million increase in depreciation and amortization and a $4.3 million increase in finance costs. These items were partly offset by a $42.8 million increase in other net revenues and a $2.7 million decrease in Adjusted EBITDA.

Adjusted Net Loss from continuing operations for the six-month period ended June 30, 2020, was $4.1 million, compared with $14.0 million in 2019. The Adjusted Net Loss from continuing operations excludes the impact of the unrealized portion of the change in fair value of financial instruments of $12.8 million, of the realized portion of the change in fair value of the Phoebe basis hedge of $18.8 million, of the realized loss on foreign exchange forward contracts of $0.8 million, of the income tax recovery related to above items of $5.2 million and of the share of unrealized portion of the change in fair value of financial instruments of joint ventures and associates, net of related income tax of $18.8 million.

SECOND QUARTER OPERATIONAL HIGHLIGHTS

Salvador Acquisition
On May 14, 2020, the Corporation completed the acquisition of the 68 MW PV Salvador SpA ("Salvador") solar photovoltaic farm in Chile (the "Salvador Acquisition"), as well as 11-year demand-based power purchase agreements (the "PPAs Acquisition") covering a total electricity generation of 54,6 GWh/year. The Salvador Acquisition and the PPAs Acquisition were purchased at a net price of US$47.4 million ($66.7 million) and US$18.7 million ($26.3 million) respectively. Salvador is expected to generate 182.2 GWh annually and reach an Adjusted EBITDA of US$8.0 million ($11.3 million) in 2021. Salvador was commissioned in 2014 and delivers its total output to the Sistema Interconectado Central (SIC) power grid, where it receives a merchant market price. The transaction also includes the transfer of 11-year demand-based PPAs with Empresa Eléctrica ERNC 1 S.A., a power trading company, to Innergex. These PPAs, which are volume-regulated on a timeblock basis could benefit Energía Llaima SpA, a joint venture of which Innergex owns a 50% interest. The total net purchase price of US$66.1 million ($93.0 million) will be financed entirely from Innergex revolving credit facilities. The project and the PPAs acquired are free of project debt.

Construction Activities

Hillcrest Solar Project (Ohio)
All mobilization activities are completed and all major work activities well underway. Overall, the project is approximately 37% complete. Pile driving, tracker installation and module installation are ongoing with multiple crews on each activity and over 300 total personnel on site. Pile and tracker deliveries are over 70% complete and 180 MW_DC of PV modules have now arrived on-site. Substation work is underway with completion expected in August. Commercial operation is scheduled for late Q4 2020.

Innavik Hydro Project (Quebec)
EPC contract was signed. On June 16, 2020, the Nunavik Regional Board of Health and Social Services and Kativik Regional Government ("KRG") have lifted some restrictions and allowed the construction sector to reopen on July 6, 2020 under certain conditions. With all the terms and conditions of our Certificates of Authorization completed, all construction permits required to commence construction received and all KRG Return to Work Protocol terms and conditions accepted, the contractual Notice to Proceed was sent on July 7, 2020. Mobilization on site to achieve construction work started on July 7, 2020.

Yonne II Wind Project (France)
Construction work began in July 2020. Craning pads and storage area construction is now completed and access roads were reinforced. Work on the foundations has begun and should be completed in early September. Commercial operation is scheduled for late Q1 2021.

SUBSEQUENT EVENT

Acquisition of six wind farms in Idaho, United States
On July 15, 2020, the Corporation completed the acquisition of all the Class B shares of a portfolio of six operating wind farms in Elmore County, Idaho in the United States (the "Mountain Air Acquisition") for a purchase price of US$56.8 million (CAN$77.3 million). The six 23 MW wind farms, Cold Springs, Desert Meadow, Hammett Hill, Mainline, Ryegrass and Two Ponds, have a total installed capacity of 138 MW and were fully commissioned in December 2012. The wind turbines are currently under a full scope Service Maintenance Agreement, and all wind farms have power purchase agreements with Idaho Power Company, a power utility rated BBB by Standard & Poor's, for 100% of their capacity over a remaining period of approximately 12.5 years. The Mountain Air Acquisition is expected to produce a gross estimated long-term average of 331 GWh per year and a US$21.1 million (CAN$28.7 million) projected adjusted EBITDA for 2021. The Class B shares will provide Innergex with additional cash immediately available for distribution representing 62.25% of the project free cash flow. Following cash distributions to the tax equity partner, the distributions receivable by Innergex would be approximately US$6.1 million (CAN$8.3 million). The Class A shares will remain the property of the tax equity partner. The existing US$111.1 million (CAN$151.3 million) long-term non-recourse project-level financing amortized over the next 12 years remains in place.

DIVIDEND DECLARATION

The following dividends will be paid by the Corporation on October 15, 2020:

ADDITIONAL INFORMATION
Innergex's 2020 second quarter unaudited condensed interim consolidated financial statements, the notes thereto and the Management's Discussion and Analysis can be obtained on SEDAR at www.sedar.com and in the "Investors" section of the Corporation's website at www.innergex.com.

CONFERENCE CALL AND WEBCAST
The Corporation will hold a conference call and webcast on Wednesday August 5, 2020, at 10 AM (EDT). Investors and financial analysts are invited to access the conference by dialing 1 888 231-8191 or 647 427-7450 or via https://bit.ly/2OoGY5Z or the Corporation's website at www.innergex.com. Journalists as well as the public may access this conference call via a listen mode only. A replay of the conference call will be available after the event on the Corporation's website.

About Innergex Renewable Energy Inc.
For 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 75 operating facilities with an aggregate net installed capacity of 2,742 MW (gross 3,694 MW) and an energy storage capacity of 150 MWh, including 37 hydroelectric facilities, 32 wind farms and six solar farms. Innergex also holds interests in eight projects under development, three of which are under construction, with a net installed capacity of 520 MW (gross 594 MW) and an energy storage capacity of 189 MWh, as well as prospective projects at different stages of development with an aggregate gross capacity totaling 6,906 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.

Non-IFRS measures disclaimer
The unaudited consolidated financial statements for the six-month period ended June 30, 2020, have been prepared in accordance with International Financial Reporting Standards ("IFRS"). However, some measures referred to in this press release are not recognized measures under IFRS and therefore may not be comparable to those presented by other issuers. 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 the comparison of results over different periods. Innergex's share of Revenues of joint ventures and associates, Revenues Proportionate, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Proportionate, Adjusted EBITDA Proportionate Margin, Innergex's share of Adjusted EBITDA of joint ventures and associates, Adjusted Net Earnings (Loss) from Continuing Operations, Free Cash Flow, Adjusted Free Cash Flow, Payout Ratio and Adjusted Payout Ratio are not measures recognized by IFRS and have no standardized meaning prescribed by IFRS.

Revenues Proportionate
References in this document to "Innergex's share of Revenues of joint ventures and associates" are to Innergex's equity interest in the joint ventures and associates' Revenues. Readers are cautioned that Innergex's share of Revenues of joint ventures and associates should not be construed as an alternative to Revenues, as determined in accordance with IFRS.

References in this document to "Revenues Proportionate" are to Revenues plus Innergex's share of Revenues of the joint ventures and associates, other revenues related to PTCs, and Innergex's share of the operating joint ventures' and associates' other revenues related to PTCs. Innergex believes that the presentation of this measure enhances the understanding of the Corporation's operating performance. Readers are cautioned that Revenues Proportionate should not be construed as an alternative to Revenues, as determined in accordance with IFRS.

Adjusted EBITDA and Adjusted EBITDA Margin
References in this document to "Adjusted EBITDA" are to net earnings (loss) from continuing operations, to which are added (deducted) income tax expense (recovery), finance costs, depreciation and amortization, other net (revenues) expenses, share of (earnings) loss of joint ventures and associates and change in fair value of financial instruments. Innergex believes that the presentation of this measure enhances the understanding of the Corporation's operating performance. Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings, as determined in accordance with IFRS.

References in this document to "Adjusted EBITDA Margin" are to Adjusted EBITDA divided by revenues. Innergex believes that the presentation of this measure enhances the understanding of the Corporation's operating performance.

Adjusted EBITDA Proportionate
References in this document to "Innergex's share of Adjusted EBITDA of the joint ventures and associates" are to Innergex's equity interest in the joint ventures' and associates' Adjusted EBITDA.

References in this document to "Adjusted EBITDA Proportionate" are to Adjusted EBITDA plus Innergex's share of Adjusted EBITDA of the operating joint ventures and associates, other revenues related to PTCs, and Innergex's share of the operating joint ventures' and associates' other revenues related to PTCs. Innergex believes that the presentation of this measure enhances the understanding of the Corporation's operating performance. Readers are cautioned that Adjusted EBITDA Proportionate should not be construed as an alternative to net earnings, as determined in accordance with IFRS.

References in this document to "Adjusted EBITDA Proportionate Margin" are to Adjusted EBITDA Proportionate divided by Revenues Proportionate. Innergex believes that the presentation of this measure enhances the understanding of the Corporation's operating performance.

During the year ended December 31, 2019, upon commissioning of the Foard City wind project, the Adjusted EBITDA Proportionate measure was changed to reflect PTC generation from the Corporation's wind facilities and from its joint ventures' and associates' wind facilities. PTCs represent an important factor to a U.S. wind project's financial performance and have been a major driver to determining their economic feasibility. PTCs are currently used, for the most part, as an element of the principal repayment of the Corporation's tax equity financing.

Adjusted Net Earnings (Loss) from Continuing Operations
References to "Adjusted Net Earnings (Loss) from Continuing Operations" are to net earnings or losses from continuing operations of the Corporation, to which the following elements are added (subtracted): change in fair value of financial instruments; income tax expense (recovery) related to the above items; and the share of change in fair value on financial instruments of joint ventures and associates, net of related tax. Innergex uses derivative financial instruments to hedge its exposure to various risks. Accounting for derivatives under IFRS requires that all derivatives are marked-to-market with changes in the mark-to-market of the derivatives for which hedge accounting is not applied, being taken to the profit and loss account. The application of this accounting standard results in a significant amount of profit and loss volatility arising from the use of derivatives that are not designated for hedge accounting. The Adjusted Net Earnings (Loss) from Continuing Operations of the Corporation aims to eliminate the impact of the mark-to-market rules on derivatives on the profit and loss of the Corporation. Innergex believes the analysis and presentation of net earnings or loss on this basis enhances understanding of the Corporation's operating performance. Readers are cautioned that Adjusted Net Earnings (Loss) from Continuing Operations should not be construed as an alternative to net earnings, as determined in accordance with IFRS.

Free Cash Flow and Payout Ratio
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 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), 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. Innergex believes that presentation of this measure enhances the understanding of the Corporation's cash generation capabilities, its ability to sustain current dividends and dividend increases and its ability to fund its growth. Readers are cautioned that Free Cash Flow should not be construed as an alternative to cash flows from operating activities, as determined in accordance with IFRS.

References to "Adjusted Free Cash Flow" are to Free Cash Flow excluding prospective project expenses and non-recurring items.

References to "Payout Ratio" are to dividends declared on common shares divided by Free Cash Flow. Innergex believes that this is a measure of its ability to sustain current dividends and dividend increases as well as its ability to fund its growth.

References to "Adjusted Payout Ratio" are to dividends declared on common shares divided by Adjusted Free Cash Flow after the impact of the DRIP.

Production Proportionate
References in this document to "Innergex's share of Production of the joint ventures and associates" are to Innergex's equity interest in the joint ventures' and associates' Production.

References in this document to "Production Proportionate" are to Production plus Innergex's share of Production of the joint ventures and associates. Innergex believes that the presentation of this measure enhances the understanding of the Corporation's operating performance.

Forward-Looking Information
To inform readers of the Corporation's future prospects, this press release contains forward-looking information within the meaning of applicable securities laws ("Forward-Looking Information"), including the Corporation's power production, prospective projects, successful development, construction and financing (including tax equity funding) of the projects under construction and the advanced-stage prospective projects, sources and impact of funding, project acquisitions, execution of non-recourse project-level financing (including the timing and amount thereof), and strategic, operational and financial benefits and accretion expected to result from such acquisitions, business strategy, future development and growth prospects (including expected growth opportunities under the Strategic Alliance), business integration, governance, business outlook, objectives, plans and strategic priorities, and other statements that are not historical facts. Forward-Looking Information can generally be identified by the use of words such as "approximately", "may", "will", "could", "believes", "expects", "intends", "should", "would", "plans", "potential", "project", "anticipates", "estimates", "scheduled" or "forecasts", or other comparable terms that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results as of the date of this press release.

Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the Corporation's expected production, the estimated project costs, projected revenues, projected Adjusted EBITDA and projected Adjusted EBITDA Proportionate, Projected Free Cash Flow and intention to pay dividend quarterly, the estimated project size, costs and schedule, including obtainment of permits, start of construction, work conducted and start of commercial operation for Development Projects and Prospective Projects, The Corporation's intent to submit projects under Requests for Proposals, the qualification of U.S. projects for PTCs and ITCs and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, of the expected commissioning of Development Projects, of the potential financial impact of completed and future acquisitions and of the Corporation's ability to sustain current dividends and to fund its growth. Such information may not be appropriate for other purposes.

Forward-looking Information is based on certain key assumptions made by Innergex, including, without restrictions, assumptions concerning  project performance, economic, financial and financial market conditions, expectations and assumptions concerning availability of capital resources and timely performance by third-parties of contractual obligations, receipt of regulatory approvals and the divestiture of select assets. Although Innergex believes that the expectations and assumptions on which such forward-looking information is based are reasonable, under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that they will prove to be correct. The forward-looking information contained in this press release is made as of the date hereof and Innergex 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.

Since forward-looking information addresses future events and conditions, it is by its very nature subject to inherent risks and uncertainties. Forward-looking information involves risks and uncertainties that may cause actual results or performance to be materially different from those expressed, implied or presented by the forward-looking information. These include, but are not limited to, the risks associated with the ability of Innergex to execute its strategy for building shareholder value, its ability to raise additional capital and the state of the capital markets, liquidity risks related to derivative financial instruments, variability in hydrology, wind regimes and solar irradiation, uncertainties surrounding the development of new facilities, interest rate fluctuations and refinancing risks, financial leverage and restrictive covenants governing current and future indebtedness, failure to realize the anticipated benefits of such acquisitions, variability of installations performance and related penalties, foreign exchange fluctuations and the fact that revenues from certain facilities will vary based on the market (or spot) price of electricity.

To combat the spread of the COVID-19, authorities in all regions where we operate have put in place restrictive measures for businesses. However, these measures have not impacted the Corporation in a material way to date as electricity production has been deemed essential service in every region where we operate. Only BC Hydro sent curtailment notices for some hydro facilities that the Corporation disputes. Our renewable power production is sold mainly through PPAs to solid counterparts. It is not excluded that current or future restrictive measures might have an adverse effect on the financial stability of the Corporation's suppliers and other partners, or on the Corporation's operating results and financial position. The issuance of permits and authorizations, negotiations and finalizations of agreements with regards to development and acquisition projects, construction activities and procurement of equipment could be adversely impacted by the COVID-19 restrictive measures.

The following table outlines Forward-looking information contained in this press release, the principal assumptions used to derive this information and the principal risks and uncertainties that could cause actual results to differ materially from this information.

Although the Corporation believes that the expectations and assumptions on which Forward-Looking Information is based are reasonable, readers of this press release are cautioned not to rely unduly on this Forward-Looking Information since no assurance can be given that they will prove to be correct. The forward-looking statements contained in this press release are made as of the date hereof and Innergex undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Innergex Renewable Energy Inc.

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