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.