Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Innergex Renewable Energy 2022 fall quarter and year-end results conference call and webcast. At this time, all participants on the phone and internet are in a listen-only mode. Following 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 hearing the conference, please press star followed by 0 for operator assistance at any time. I would like to remind everyone that this conference call is being recorded. I would now like to turn the conference over to Karine Vachon, Senior Director Communications. Please go ahead. Thank you. 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 home page of our website at www.innergex.com. This call contains forward-looking statements within the meaning of applicable securities law. Although the corporation believes that the expectations and assumptions on which forward-looking statements are based are reasonable under the current circumstances, listeners are cautioned not to rely solely on these forward-looking statements, as no assurance can be given that it will prove to be correct. Forward-looking information contained herein is made as of the date of this call. 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 under the International Financial Reporting Standards. Please refer to the Non-IFRS Measures section of the MD&A for more information. Our speakers today will be Mr. Jean Trudel, Chief Financial Officer, who will present Q4 and year-end results, and Mr. Michel Letellier, President and Chief Executive Officer, who will review our operational highlights. I now turn the conference over to Mr. Trudel. Good morning, everyone. I may take a little bit more time than usual today because I'd like to discuss our obviously financial results, but also the debt structure and the 2025 targets. First, I would like to start with a review of our actual performance versus our 2022 guidance. As you can see from the table, most of our 2022 targets were essentially met except for the production and the free cash flow per share targets. The low production is mainly due to exceptionally low hydrology levels in British Columbia during Q4 2022, but also to lower than expected generation within our three segments compared to our long-term average for the fourth quarter, but also for the year as a whole. In fact, only our solar facility in Ontario and our Quebec-based hydro and wind assets performed at or above expectations in Q4 and in 2022 as a whole. Revenues, Adjusted EBITDA and Adjusted EBITDA proportionate targets were essentially met thanks to the contribution of acquired assets in 2021 and 2022, and higher selling prices experienced mainly in Chile and at our Texas facilities. Next slide. As shown on slide six, even with a below expectation fourth quarter, our financial performance posted growth in 2022 compared to the normalized figures in 2021. Production was up 13% and revenues were up 26% at $871 million compared to the same period last year. This increase is mainly explained by the contribution of the 2021 and 2022 acquisitions, namely the remaining 50% interest in Energía Llaima and San Andrés, Licán and Aela in Chile, as well as Curtis Palmer in the U.S. The increase is also explained by the commissioning of the Griffin Trail and Hillcrest facilities, higher production from the facilities in Quebec, higher selling prices at the Phoebe Solar facility, and by the BC Hydro curtailment payments received in Q1 2022. For the year ended, operating, general, administrative and prospective project expenses were up 29% at $286 million compared with 2021. This increase is mainly attributable to the 2021 and 2022 acquisitions and asset commissionings, as mentioned earlier, as well as higher maintenance costs at some of the hydro facilities in BC following the floods that occurred at the end of 2021, and the impact of the 2022 Supplementary Budget Act in France. As a result, Adjusted EBITDA for the year reached $585 million, which represents a 24% increase compared to the same period last year. For the year, production proportionate was up 10%, revenues proportionate were up 22% at $996 million, almost a billion, and Adjusted EBITDA Proportionate reached $696 million which represents a 20% increase. The corporation recorded a net loss of $91 million for the year, compared with a net loss of $121 million in 2021 normalized. The variance was mainly due to the recognition of an aggregate $113 million share of impairment charges in the Flat Top and Shannon joint ventures located in Texas in 2021. These items were partly offset by the increases in depreciation and amortization and the finance costs attributable to recent acquisitions and commissioning. Continuing to the next slide. For the year 2022, the cash flows from operating activities totaled $430 million, which represents a $148 million increase compared to the normalized period last year. This increase was primarily explained by the incremental contribution from the acquisitions over the last two years and asset commissioning, the BC Hydro curtailment payments, as mentioned, the realized gains on financial instruments related to the issuance of green bonds for the Chilean facilities and the closing of the French acquisition, and the timing of interest payments for certain BC project debts in Q4 2022. These items were partly offset by an increase in finance costs paid, mainly related to the Griffin Trail and Hillcrest facilities commissioned in 2021 and to the issuance of the Green Bonds and the unfavorable settlement of the CB power hedge during 2022. The $36.5 million increase in Adjusted Free Cash Flow versus the normalized period last year resulted in a significant improvement to our Adjusted Payout Ratio, which amounted to 85% in 2022. When accounting for the $24.7 million investment into our greenfield portfolio of prospective projects, the payout ratio reaches 100% in 2022. Now I'd like to shed some light on our debt structure. Our key objective is to use an appropriate amount of leverage while keeping a comfortable capacity to service our debt from the cash flows generated by our asset base. Very typical to the infrastructure and renewable industry in order to maintain our investment-grade rating. Our debt structure reflects the high quality of our underlying assets and the high number of hydroelectric facilities that we own. It reflects also the long remaining weighted average life of our purchase, power purchase agreements, the fact that 90% of our cash flows are contracted on a long-term basis, and that our exposure to rising interest rate is minimal, with only 8% of consolidated debt at floating interest rates. If we start by looking at our total corporate debt, which stood at CAD 1.3 billion at year-end, and this includes the revolving credit facility, the unsecured loan, the convertible debt, and also the Altura loans. So this debt is supported by the cash flows from the business, but also supported directly by 19 diversified facilities, all free of project debts. These facilities have a remaining weighted average useful life of almost 35 years. 68% of corporate debts are fixed rate or benefiting from long-term interest hedging agreements. We have no debt maturity over the next two years. If we turn to the non-recourse project loans, they stood at $4.5 billion at year-end. It has essentially no exposure to rising interest rates, with 99% of these debts bearing fixed rate or fixed under long-term hedging agreements. 100% is amortized over a weighted average life of 17 years and is supported by obviously high quality and predictable cash flows. The tax equity financing is amortized over the next 7 years, mainly repaid via the generation of production tax credits. The repayment schedules of these non-recourse project loans are quite aggressive and are presently entirely embedded in our payout ratio calculation. On a consolidated basis, so corporate debt and the non-recourse project loans, the weighted average debt maturity equals the weighted average PPA remaining life at approximately 13 years versus a weighted average useful life of 37 years for our assets. When we talk about useful life, we use 75 years for our hydro assets from COD, 35 years for the solar assets from COD, and 30 years for the wind assets, even if we know that after these periods of time, these assets still have a valuable market value. Let's talk about our guidance. We are confident in achieving the growth targets of the strategic plan, given our execution track record and the maturity of our existing development activities. The Free Cash Flow per Share is a very key metric for us. We therefore reiterate our target Free Cash Flow per Share of $1.01 per share on the 2025 run rate basis. Compared to 2022, we have to bridge a $0.29 per share gap. How are we gonna do this? I guess $0.24 per share is expected to come from a combination of three things. Firstly, the recently announced M&A acquisition in Ontario, which is expected to close in the coming weeks. Our base business growth, mainly from inflating power purchase agreements, setting price. Thirdly, the already identified and de-risked projects under construction and under development. We have 368 MW under construction as we speak, and on top of that, we have 85 MW of battery systems. All of these projects under constructions are meant to be in service by the end of 2024, and some actually in 2023. We also have 240 MW identified projects under development. For a total of close to 610 MW that is either under construction or development. $0.05 accretion per share to come up with the 29 is expected to come from existing advanced stage greenfield developments or new M&A activity. As concluding remarks, even though our fourth quarter and yearly results were lower than expected in terms of production, our fundamentals remain strong. It's important also to note that this guidance is taking into account all the debt, the tax equity, and equity funding required to grow the portfolio and bring the projects under construction and projects under development assets in service, and does not rely on any potential rotation of capital initiatives that could help alleviate the per share dilution even further. On this, I will now give the floor to Michel for the quarterly and yearly operational and development review. Thank you. Thank you, Jean. Just a funny note, I guess we'll take a rain check on the next quarter for the hydrology. Very unusual to have seen such a bad hydrology and actually some weakness also across our portfolio. I would think this is just a little bit of a anomaly on long-term forecast. We're still confident on our long-term forecast for the entire portfolio. As you know, our strategy is to diversify through geography, technology, and at the end of the day, we should have a very stable and predictable long-term forecast, and hence having a secure cash flow coming from our portfolio. Let's hope that the last quarter was not the trend and that we're focusing on our long-term forecast as we always did. Thank you for covering the financial result. I'm here to just go back a little bit. We are at the end of the year, it's always interesting to have a quick look on what we have achieved in the last 12 months. Pretty busy in the sense that we have been acquiring facility, new facility. We have advanced a lot in our portfolio of prospective project. We've been also very successful in closing some very good acquisition that are going to contribute to the payout ratio going forward. We started the year with acquiring a 50-MW San Andrés facility in Chile. We also initiated two battery project in Chile, one with our existing Salvador facility. Since we just bought the San Andrés facility at the beginning of the year, we thought that the strategy to have battery there would be very interesting. Given the fact that we took the decision early on, we were able to secure a pretty competitive price for the battery, and hence, it looks really good in terms of future contribution in terms of financial contribution for us. As you know, we've seen, Jean as mentioning that, in some cases, you're seeing some weak production in Chilean solar, but it's also some curtailment that happens when, of course, you're producing in during the day. You all know that Chile is a very long and thin country. Given the fact that the Atacama Desert is probably one of the nicest place on Earth to produce solar. During the midday, it's creating a little bit of congestion on the distribution system. Hence the idea of putting battery there. We think that before this will be minimized by a new line, we'll have a fairly good long fairway to amortize and make good business sense on those batteries. Very happy on that, on that aspect. Also we have conclude on Aela wind portfolio. Remember, that's a 332 MW, and that is completing our strategy on portfolio approach for Chile. Remember that we wanted to have the three technology, actually the four technology now that we have initiated battery as well. For us, it's important in Chile to have this as a small, kind of a small utility. We have now the ability to secure long-term contract and serve corporate contract in the future. We also have been very happy to commission the Tonnerre Battery energy storage system in France. That technology, if you remember, it comings from EVLO, a division of Hydro-Québec. We were glad to be the first customer to put that new technology on service. Very proud of having been able to secure the PPA for Boswell Spring. We'll talk about it. This is the biggest project for this year. It's a 320 MW net power purchase agreement because it's 330, but then we have about 10 MW loss on the line to our point of injection in the system. Very, very interesting project. We are pretty confident also that with the new rules regarding the PTC adder, both on local content and community adder, we think that Boswell Spring will be able to benefit from those two. it's too early to conclude and bank on those two upgrade. If ever they appear, this is going to boost the return materially for Boswell Spring project. At the end of the year, we concluded on consolidating two portfolio, one in France. you know that we bought the 30% minority interest in France. That was for making a little bit of a consolidation and giving us more flexibility to develop future initiative in France. We did also the acquisition of the remaining 37% outstanding share in Mountain Air Wind portfolio. We were really happy with the outcome of that performance of that portfolio in Idaho. For us, it seems to be logic to, Well, I guess, simplify the structure and profit from the fairly good cash on cash on that portfolio. Pretty busy year. Now, if we switch on page 13, you have a map there on our activities, construction and advance project. Our intention is, of course, to deliver on those advance project. Innavik construction will be finalized and construction should be done, and COD, I mean, should be done by July. Boswell Spring, we have started the construction. All the finalizing document and annex are being finalized for our balance of plant and EPC construction activities. Very, very bullish on this project. As I mentioned, it's going to be fast construction. We're hoping to be in service by late next year. We are planning for a Q4 COD. Working for that for the moment. Everything seems to be green-light on that date for us to be able to have Boswell in COD late next year. Palomino, as you know, we're working towards a COD date. We were hoping to be mid-2025, but it seems that with the congestion on interconnection queue in PJM, they're having a hard time being able to interconnect us. To a date that would be earlier than the end of 2025. This hence our guidance for COD in 2025. but the demand for renewable energy in Ohio is still very strong, so very positive on securing a good outcome for the price for our price of electricity for Palomino. stay tuned, but we're heading towards the end of 2025 for Palomino. Now, if I mentioned the battery storage in Salvador and San Andres. Remember that Salvador battery storage has been included in the refinancing of our Chilean portfolio. this will be fairly accretive to our cash on cash once this battery will be on service. right now, we're heading towards something in August to be in service. San Andres will be in COD by the end of the year. Equipped with those two battery, we think we'll be making good money on the arbitrage. Just to give you a perspective in Chile these days, midday, sometimes we are even curtail in the North of Chile. In the rest of the day, the electricity run between $90 to sometimes $200 per MWh. The arbitrage is huge. We have not made our decision on that wide spread, but if that spread remain, this battery will be very, very profitable for us in the first few years until they are going to build a new line to basically minimize this curtailment. Frontera and Racua is a very small addition that we are going to probably start construction somewhere this year or early next year, but it's very small increment on our existing facility. Frontera and San Carlos, if you remember San Carlos is the same river as Frontera. The idea there is that I said many time, we need to have a long-term PPA in order to take the decision to do those two. Those are material project. Together, they are over 250 MW. We want to have a strong out, well, offtake here, I'm sorry, to take the decision to start the construction. It makes sense. We advanced also on the permitting of San Carlos. Remember that these would also have a four to five hours storage ability. That would be very good in a market like Chile. Going to Hawaii, busy quarter also on Hawaii. We've been actually happy to submit it together with HECO our price increase to the PUC just yesterday. Material increase in line with what we've seen lately being accepted with the PUC. We're expecting a decision in roughly 90 days for that. Construction is still slow until we have the green light. We're very hopeful that we'll have the green light. HECO has supported our demand, this is a very good outcome. We will have the final answer by the PUC in the matter of 90 days, hopefully. [Aleko PIO] is still, if you remember, we had a contested case there, we're fighting that. An outcome we're not sure. I think we're very positive on it. We have gone through the hearings and all the administrative activities that rely on, well, that the system rely on. We'll see on PIO how the outcome will be. France is busy. As you know, Europe has had some great policy towards more and more renewable. As you know, France is complicated in terms of getting all the permit, but we're working hard there. We're advancing quite a bit. We have had another 3-5 project to our prospective pipeline. France is still a very strong market. It just, it takes time, as you know, to develop project in France. Our initiative that started about five years ago are starting to create some great opportunity for us. I guess that this is the actual advanced project and construction activities. I'm very, very excited about the opportunity that lies in front of us. We are seeing a lot of RFPs activities, and very happy to report that Quebec, as we said in the last call, is going to be super active. We are going to see a lot of new and future RFP for Quebec. Hence our focus now is to create a lot of opportunity for us. We have had quite a bit of MW of perspective in the last quarter, and our intention is to show you also some more activities. We're working on four or five great opportunity to add to our prospective project right now. People are on the ground and working hard. Quebec is going to be a busy place for us in the next few years. We have entered into a joint venture with Kruger Energy to submit some storage proposal in the Ontario RFP. We'll see. It's going to be a crowded market for that RFP, but I think we have a nice project to present. It's a little bit over 100 MW of storage in the Chatham County in Ontario. Saskatchewan has announced also an RFP. As you know, we've been busy in Saskatchewan in the past, so we're recycling some of our project to submit future RFP in Saskatchewan. New Brunswick has announced a 200 MW wind RFP, so we have some good project also in New Brunswick. BC hasn't announced anything, but as you know, my view is that BC will wake up one day with a very big headache in order to decarbonize the economy. Sooner or later, BC will see some more activities. Of course, when we're going back to the U.S., we're seeing a ton of RFP activities. We are answering calls with our project in Colorado called Mile High. That's going to be a 150 MW solar coupled with batteries as an option. Very competitive, very crowded RFPs, but I think we will see more activities in Colorado. Also, we'll be submitting some proposal with Wautoma to a potential client. Seattle City Light has also a request of interest, and we will be submitting Wautoma in that project. Been also active in the Minnesota area, creating another potential project around 300 MW solar. As you can see, our teams in all our country and markets are very busy. This is what makes me very positive toward the future. A lot of demand for renewable energy are going to be in front of us, and our teams are on the ground ready to answer and creating a lot of opportunity for us in the near future. I guess that on final note, very happy to come back in acquisition in Canada. You've seen in our announcement on the Sault Ste. Marie solar portfolio. It's 60 MW with good PPA. Very, very happy to have had the opportunity to be successful in an acquisition in Canada. That's adding also on geography. Ontario, it's not a market that we're very present. We have some solar, as you know, and some hydro. Adding solar in Ontario is a good diversification on our portfolio. On that, I would open up the questions. Thank you. Ladies and gentlemen, if you have a question, please press the star followed by the 1 on your touchtone phone. You will hear a tone acknowledging your request. Your questions will be pulled in the order they are received. Please ensure you lift the handset if you're using a speakerphone before pressing any keys. Your first question comes from Rupert Merer from National Bank. Please go ahead. Hi. Good morning. Hey, good morning, Rupert. Michel, if I can start with you on debt structure and cash flow targets. With 68% corporate debt fixed rate, how much of a headwind are you seeing from higher interest rates this year on your CAFD per share? Can you talk about what's baked into your 2025 targets? So we have about $400 million that's unhedged on the corporate facility. Right now we're expecting rates that we've expected rates as we've seen them in, I guess since November. It hasn't moved much upward. Of course, if rates were to increase, while you can do the math, like every 1% would be a $4 million headwind to us. What's baked into your 2025 target as far as the interest rates go? I can get back to you with the exact figure, Rupert. All right. Yeah. I think we have lowered a little bit the interest rate. Our expectation is short-term rate will ease past 2023. Yeah, but. Going to 2024, but we can't remember how much we discounted it. Overall, how much are you relying on hedges versus fixed rate? Can you give some color on the mechanics of the hedges and how those, maybe the settlements are feeding through to operating cash flow? Yeah. When we have hedges on interest rates, it depends on the base rate for the underlying debt. In some cases it's LIBOR, or in some cases it's BA. We will swap, and the payment is on a monthly basis, usually like selling on a monthly basis. You would record the... Yeah. Michel, if I can ask about your battery systems in Chile, how much confidence do you have that they will be in place by the timelines you gave us, I think August for the first one? Give us a little more color on the market. Are you seeing many other batteries coming in close to you? Is there any chance that you're going to see enough storage capacity to move the market price or the arbitrage opportunity in the next few years? Yeah. Okay. Actually, we have inverter being already delivered on site, and the BESS container are coming, starting mid-March. Very confident it's Mitsubishi commitment. Actually, we were hoping to have them delivered at the beginning. It was supposed to come in November and December, and Mitsubishi is exposed to liquidity damages. Not huge, but they will be liable for liquid damages. They have already acknowledged that. They have this motivation to continue delivering the containers. The first wave of container are due to come mid-March. We're very confident that August, unless there's a bug on, you know, commissioning these battery. We think that Mitsubishi has the experience to be efficient in the commissioning. That's why we were aiming at August. We might see earlier availability. For San Andrés, the container are scheduled to come later during the summertime. COD by the end of the Q4 is still our target. Mitsubishi hasn't give us any new date, so we think that this is fairly firm. That being said, you never know with project. We may be delayed a few weeks, but we're very confident on this. To answer your question, well, the there's a line that is supposed to be built from the north to get to Santiago, and this line is supposed to be commissioned 2028, 2029. You know, giving the difficulties to build new lines in anywhere in the world, we think that this will not happen before 2030, 2031. Nonetheless, even if that line is built, I'm giving you some guidance on how profitable these battery can be in Chile. We were the first to initiate this activities, and we had secured the price of the battery probably 20%-25% lower than the price of today. There's not that many new announcement on battery in the north of Chile. I would say that these battery are not necessarily relying on a long-term basis on this arbitrage. We want to have a portfolio approach, as I mentioned, in Chile. And right now, the long-term price for electricity in Chile is going to average between $55 and $60 and being fully indexed. The idea is to build out of that amount on average. You know, you could probably produce solar around $25- $30, wind around $50, new hydro around $65, and then battery around $80. If you mix all that, then you end up with a $55. This is why we are talking about portfolio approach. The battery is just another piece of the puzzle for us to be able to sign long-term contract. We will be taking advantage of the really high volatility that we're seeing right now. If this volatility fade, we'll embed the cost of the battery into our calculation to basically sign long-term contract. This is how we think for Chile. Great. Thanks for the color. Your next question comes from Sean Steuart from TD Securities. Please go ahead. Thank you. Good morning. Good morning. First question. This is typically the period where you guys would give 2023 guidance. We see that wasn't provided. Any context on maybe your reluctance to give guidance for 2023, or should we just think about this as the 2025 guidance is intact, and that's what we should orient our thinking around? Yeah, I'll let Jean answer, but you're right. I mean, our focus, and I don't wanna sound like a famous politician in Ontario, a buck for a beer. Here it's a buck per share. This is our target for 2025. I must say that you hear us talk about Boswell being a very strong contributor for our cash flow. Boswell is going to come in 2024. The battery are coming late also in 2024. This year, we don't have a lot of new COD. Basically, we'd like to make the bridge of this year toward 2025. Of course, the big increase in the Cash Flow per Share is coming in the year of late 2024 and in the run rate of 2025. This is why we haven't put a lot of emphasis in 2023. If things are good, in a sense, if we have an average year and we don't, you know, suffer any bad situation, we should do better in terms of Payout Ratio than 2022. Slightly better as you've seen, because we have done also some acquisition. Our main target is really 2025. We want to provide you guidance on and build our strategy to have $1 per share by 2025. There's no hiding agenda in not providing guidance in 2023. It's just that it will not be materially very different than 2022 in the sense that we're hoping to improve on the payout ratio, but not super materially, because like I said, the big contributor are coming later. That makes sense. Okay. Thanks for that. Last quarter, you'd mentioned your thoughts around funding were evolving, given pressure on the share price, and you'd mentioned that asset recycling is more front of mind in terms of raising capital and you guys have sold off some currency hedges. Any broader thoughts on asset sale opportunities over the near to midterm to bolster your funding position? Well, we said that. And I don't wanna create a huge expectation, but we said that a transaction like one of our peers in France might be considered depending on the capital cost. We think that Europe, even though the cost of capital has gone up, is still lower than North America. There's maybe a little bit of arbitrage to do there. You've seen that we have acquired the 30% on our minority interest in the portfolio in France, the structure was a little bit complicated. It was through a corporation in Canada, so it was not super clean for potentially a European partner. That was also part of the strategy to basically clean up the structure so that if we are considering an investment from a European base, it would be a lot cleaner. Multiple on portfolio, on prospective project in Europe are multiple on value that what we are seeing in North America. If we want to create a little bit of value added, this is probably where we would be heading. Yeah. Maybe if I can add, there's value added also to not only recycle, one asset, but to recycle a participation in a platform. Like, development platforms are very sought after, that's something that we may entertain, obviously, in 2023. Yep. That makes sense. Okay, that's all I have for now. Thanks very much, guys. Thank you. Thank you, Stuart. Your next question comes from Nicholas Boychuk from Cormark Securities. Please go ahead. Thanks. Good morning. A little bit of color. Good morning. -on the M&A opportunity, would be appreciated. Interesting to hear that the Ontario acquisition was kind of to get you into new markets. Is that the strategy moving forward? Is there a specific, you know, sort of shopping list of other markets or technologies that you'd be looking at here? We'd love to. We've been successful in buying hydro, if you remember, with Curtis Palmer. We'd love to be able to buy hydro, but it depends on the price and depends on the location. It's always interesting. If there's some opportunity there, we are always very interested, especially if there's some, I guess, repair or upgrades on hydro. We've been pretty good in doing this over the years, so we could probably have a value added in those type of project. No, we're looking to opportunities that make sense. As you know, we're using M&A more specifically to help us bridge the pressure on our payout ratio while having a decent return compared to the risk and taking advantage of the diversification also on geography is always welcome. There's all kinds of opportunity in South America as well. We're mindful of our existing position. But as our portfolio grows and our COD are coming in, we may still have a little bit of room to look into South America as well. Europe is difficult, Nick, in terms of cost of capital You just heard me saying that, the cost of capital in Europe is probably a lot lower than what we can see in North America, and certainly a lot lower than what we can see in South America. Okay, that's great. Thanks. Just on South America, as a quick follow-up, would it be more expansion in Chile, or could that actually become almost a platform for you to leverage into other attractive regions? You're right. I mean, we have now a strong presence in Chile with a very good team. We're getting stronger there. Yeah, it could be a platform to look into other market. That being said, we said that Peru has always been on our radar, but right now it's a little bit busy in terms of political problems. We would be very careful on that market. We said that also Uruguay might have some. It's a small market, but very, very stable with good opportunity on long-term PPA. That might also be an interesting market. Argentina, Brazil, Colombia are quite, we're not very comfortable with those markets. Peru, Uruguay might be some target. Like I said, Peru is a little bit complicated these days, but there's still opportunity in Chile that makes sense for us. We could act. Awesome. Thank you. Thank you. Your next question comes from Nelson Ng from RBC Capital Markets. Please go ahead. Great. Thanks. Good morning, everyone. Hello, Nelson. Hi. first question relates to the Ontario solar acquisition. Could you just provide a bit of background on that acquisition? Like, I presume it was a competitive process. Are you expecting to realize any synergies there? like, I was just wondering what the strategic value to you is from those assets. Like, are there opportunities to add batteries there? Yeah. There's possibility to have batteries there, but this location is not rated very high for ISO, so and therefore might not be as competitive, but down the road, it might change. Funny enough, that region is really interesting in decarbonizing their economy. Sault Ste. Marie, actually, the city office to develop economic development reached out to us, and they have great initiative in the area. As you know, it's heavy industrial in this part of the world, so there's potentially some interesting development in the future in that area. Yeah, we could probably also help a little bit on the operation side. We already have some activities in Ontario, but I guess that it's the quality of the cash flow that we were also looking and the diversification, solar in this part of the country, we have no exposure. Both the quality of the cash flow, upfront cash flow for at least 11 years was what we were interested in, and the diversification. Being present in that area, like I said, present a lot of opportunity to decarbonize the heavy industry. They will be potentially talk to talk about hydrogen in this neck of the wood. There's some, like I said, heavy industry that might benefit on the long term. It's diversification, having a presence in that area of Ontario is something that potentially on the future development might help. Good. Thanks for the color. Just moving on to Hawaii. Obviously, you started off with four projects, costs have increased for the projects. You're moving ahead with or you've submitted a new PPA for or PPA price for one of the projects, Halei-ko... I don't know how to pronounce Yeah. I'm struggling with, Nelson as well. Hale Kuawehi. Maybe it's not that easy. Yeah ...to pronounce. You mentioned that you have canceled the contracts for two of the projects, right? You're obviously looking to move ahead with two of them, and you've canceled the projects for the other two. I think in your MD&A, you mentioned that you're canceling two of the projects because of higher costs, because of cost escalation. Can you just describe or give a bit of color as to, like, obviously, costs have increased for all four projects. Why are you sticking with two and canceling two? It's a good point. Hale Kuawehi was more advanced, and we had initiated with HECO a renegotiation of, on the price. It took a long time. HECO is doing a great job in the sense that they cannot accept a price increase in the range of over 50% likely. They're going through all our assumption from the day we were bidding towards what happened in the supply change and inflation. They're working diligently, and it takes time. Then you have probably 90 days at the PUC. Then why we have decided together with HECO they basically agreed that we could cancel Kahana and Barbers Point in the view that RFP 3 was coming. We could not submitted this project in RFP 3 if we were still under the contract. Together with HECO, we decided to cancel the existing PPA because the likelihood that we would have been able to negotiate with them going through PUC, and then if something was wrong, we would have missed the opportunity or the window to bid into the RFP 3. All the assumption and even the PUC expectation on the price of RFP 3 is much higher than the historical price of RFP 1 or RFP 2. We thought that we had a better chance to rebid, actually, this project in the RFP 3 to create a little bit more value for us. That's the reason behind it. Until you have the certainty on the repricing, your existing contract is still alive. We would have been bound by the obligations of the existing contracts as well under Kahana and Barbers. Yeah. It was more interesting to terminate them without penalty and rebid than to incur potentially a PUC, you know, negative decision from the PUC and remain with these, PPAs in place. Yeah. Paeahu, why we have kept Paeahu is that two stakeholder have, well, twice, stakeholder have had the ability to challenge this in court, the PUC decision and on the EPA. Having that EPA, I think we can renegotiate down the road. The Paeahu location is very desirable for HECO, so they were willing to support the existing PPA and eventually some price increase through the PUC. I would say that if we're, if we win in court, then the EPA would be, I guess, protected for a future challenge. That's why we also kept the Paeahu because we have invested in the permitting and the contestation process in court. Those are the reasons. Okay. That's great color. Just one last question, moving to Boswell. Can you just give a bit more color on how that project will be financed? Obviously, tax equity is involved. Are you using. Yes ...some non-recourse debt? I think you mentioned that about $40 million U.S. of sponsor equity or your equity has already been invested. Yeah. The total debt, you know, make a very long story, but having the ability to have the back leverage because this is a 30 years PPA, we were happily surprised to see how banks and have proposed us some structure. We could leverage it up to 88%-90%, roughly. 9. Yeah, up to 90%. I mean, 90%. Hence, if you make the calculation, our equity contribution is just over $50 million on this case, a little slightly over $50. Actually very aptly surprised. We've already committed and invested. It's already drawn under the revolving credit line, like for a large part of that, as we mentioned in the press release, back in January. There's no more equity on till the financing is due. We're still investing a little bit of money through LNTP in advancing the construction stage. As soon as the financing will be done, we'll be able to actually recapture our equity because we're going to have the ability to have the equity being contributed at the end. Actually, one of the first draw from the financing will enable us to recapture the equity that we already have put in the range of over CAD 60 million, I think, on the forecast. Also the interesting thing is that it does not include any potential upside from benefiting from a 10% adder to the PTC. If we will see the ruling, it's still delayed in coming out. If this works, it's gonna be a great outcome also for Boswell. Yeah. Go ahead, yes. Sorry. What's the split between tax equity versus back leverage debt in that 80%- 90%? I had... Yeah. Tax equity is roughly $290 million and back leverage $190 million. Okay. Roughly. A little bit over that. Back leverage will be close to $ 200 million. Thanks. All right. Thanks for all the color. I'll leave it there. Your next question comes from Ben Pham from BMO. Please go ahead. Hello, Ben. Hey, morning. Hey, morning. I wanna go back to your comments on 2023, and I wanted to clarify. When you say that you don't expect much change, I'm guessing you're referring to the Free Cash Flow per Share metric? Yeah. Yeah. Yeah. Yes. Yeah. Yeah. Of course, we'll have more EBITDA. Well, there is an increment, right? Because on Free Cash Flow per Share because of acquisitions. As Michel mentioned, I guess the largest portion of the increment will come out of, you know, Boswell and the other CODs that we mentioned on the... There's a, an improvement from 2022. Also it depends on that last part of the plan. If the M&A, the other M&A comes in earlier than later, maybe the increment would come in also in 2023. Okay. I think, I think you've put out some at least directional benefits for cash flow into 2023 of acquisitions, all the other stuff you've mentioned. Hydro conditions were well below that hopefully should recover. What about some of the, maybe the headwinds then? I would just think your free cash flow should be up quite a bit in 2023 with those two drivers. Is there maybe some headwinds that I'm not thinking about more? No, no. We don't wanna create some uncertainty on this, Ben. It's just that we've been burned last year in having seen the bad hydrology that we've seen in BC. We just wanna be a little bit more conservative. Of course, when we're looking at quarters and quarters, it's difficult to, there's so many variables as you know. We didn't wanna put ourselves too tight. There's some moving pieces also on the exchange rate, the U.S. exchange rate. It seems to improve. We might see a little bit more improvement on that sense too. We'd love to see a good year in terms of long-term forecast. That would be very welcome. Last year was difficult. That's why we're just a little bit more cautious on that aspect. I mean, 2023, if things are right, we should see an improvement as you're mentioning. Okay. That makes sense. Are you able to? I know maybe it's not an easy calculation. Like, If you assume long-term average for 2022, what do you think your payout ratio would have been? Oh, it would have been good. Because we haven't done that calculation, but it would have been a lot better. Yeah. Okay. Got it. Maybe, my last one, may I update on... Not necessarily equity needs, but you had that $0.5 billion at one Investor Day. It sounds like Boswell, you can take on a bit more debt. You've monetized some items in there. Is that amount lower now than as you go forward? Probably a little bit lower. As Jean has alluded, we already have advance on the contribution from M&A, so we might not have to be that, I wouldn't say aggressive, but we might not need that much M&A to reach the dollar. On the other end, if the transaction makes sense and they are accretive on the long-term value as well, so we might. I know that we have had some pushback on this from investor and you guys on our forecast of saying that we will need equity to complete our program. Again, if you believe on this dollar and perhaps even more cash flow per share, that's a huge accretion in terms of cash flow per share. I think that if we are delivering on that path and go beyond 2025 on that same path, I think we're creating a lot of value, and it's a mix of good M&A and being also good on creating value on our pipeline of development and executing on this pipeline to create value and then put project on COD. It's a good mix. We always said that if we wanna stay with dividend, we have to be creative a little bit because we wanna grow, we wanna grow fast. Of course, if we grow and we invest in our pipeline of new projects. Now, this year in our budget, we're talking about CAD 36 million of new money going towards our pipeline. It's fairly aggressive in a sense that, if we're successful in this endeavor, we're creating, hopefully, a lot of value on the long term. Using very, very pointed and acquisition that have a focus on good quality project, I think it's a good recipe. Hopefully, we'll be delivering on this. The honors is on us to deliver on the plan and convince you and the investor that our plan is strong. This is what we are going to focus. Okay. Thank you. I guess just, approximately, like, if we had, like, worked to the long-term average and using just a very rough average, pricing range, obviously, it depends on which area you produce, but, we'd have probably something more than, like, in the $40 million-$50 million more, revenues if we had hit the long-term average. It's a rough estimate. Okay. Don't quote me on it. Okay. Roughly. Quite significant then. Okay. Thank you very much. Yeah. Your next question comes from Naji Baydoun from iA Capital Markets. Please go ahead. Hi. Good morning. Good morning, Naji. I just wanted to go back on, uh, the question of, uh, sort of financing. Liquidity is gonna be a bit tighter now perform on the Ontario acquisition. Just in terms of capital recycling, can you provide a bit more color on timing? What do you think is more likely at this point, a development partner, just straight asset sell downs or maybe a portfolio sell down? Well, like I said, these things can take time. Even if we wanted to do it right away, probably closing would be in Q3, most likely. Like I said, we wouldn't like to sell hydro, even though there's a great value in hydro. As you know, we love to have the diversification, and hydro is not easy to build, so hydro wouldn't be a first on the line. Like I said, if you look at the cost of capital around the world, Europe is probably the lowest, and they're also very willing to pay for a premium for platforms. I think that I said it enough. There's not that many portfolio that we have that fits those criteria. Okay. Very, very clear. Just talking about Quebec, I mean, Hydro-Québec canceled the RFPs that was supposed to be launched last year. I think they mentioned that they're gonna focus on maybe a new mechanism to add, you know, about 3- 4 GW of new wind, you know, through the end of the decade. Can you provide any updates on some maybe negotiations you're having with them? What do you, if you think this development is good or bad for you? No, I think it's a great, It's a small setback, but I think the strategy is better. I think that Hydro-Québec wants to make sure that they are providing guidance on where they can interconnect the new project at a reasonable cost and at a reasonable timing. They're focused on trying to bring the first wave of project and being interconnected quickly. The second wave will take a little bit more time. You know, in developing material project in Quebec or anywhere in the world, it takes roughly. Especially in Quebec, you have winter, so it takes at least two years to build projects and transmission line upgrades and new expansion can take three, four, five years if you include the permitting. That's why Hydro-Québec, they need that energy quickly. They would love to have energy by 2026, 2027. Hence, they're refocused on saying and providing our industry to places where they want the energy. We, we've been proactively thinking about this and trying to have our best estimate where Hydro-Québec would be more interested in having a new early interconnection. That's how we have been focusing on our energy. The best estimate that we have is that they are going to produce this map of the area of interest, probably by the end of March, beginning of April. From there, they are going to probably provide 6-8 months, nine months for the industry to prepare bids. That's how my best guess. Of course, this is just my personal estimate, estimation, but it's probably the case. They may also want to have some RFP, but potentially also some direct negotiation with some potential partner. They've done that in the past, we might benefit from that as well. We certainly are in a good position to take advantage of the both strategy. Maybe just a final question on this. I guess the departure of Hydro-Québec CEO doesn't really change anything for you in terms of your role and the growth of the market in the province. Based on what you're saying, maybe FID on a project is probably delayed till next year and COD won't be before 2027 or 2028. Like I said, it's difficult to have new project. Maybe some might be able to be in service in 2026. If you do the math, it takes two years to permit and two years to build. Very difficult to do something before four years. Yeah. If they provide the green light by, let's say, the end of this year, you had four years. 28. 27. May... End of 2026 is stretching. Very stretching. Yeah. Okay, exactly. Okay. Got it. Thank you very much. Thanks. Ladies and gentlemen, if there are any additional questions at this time, please press the star followed by the one. As a reminder, if you're using a speaker phone, please lift the handset before pressing any keys. Your next question comes from Mark Jarvi from CIBC Capital Markets. Please go ahead. Hey, Mark. Yeah. Good morning. Thanks for fitting me in. Yeah. Good morning. Yeah, just on the $1 of free cash flow per share, which is the same number you gave at investor day. Since then, you've announced some tuck-in deals that are creative. Boswell financing looks a little bit better. Why would that not move? Were the transactions that you completed already kinda contemplated in the $1 in terms of M&A-driven growth? Anything change in terms of financing assumptions or sell down? Mark, give us a break. You know, we started from roughly 50, two years ago. Now we're doubling that. I'll take a rain... Well, yeah, if we can do better, we'll do better. I think it's 50% increase in less than three, four years is not bad as a growth on that aspect. You're right, Mark, right? Some M&A was in the plan. We're doing the M&A that we were actually hoping to do. We're almost completed in that, in that sense 'cause we only need like CAD 0.04 or CAD 0.05 more of M&A to complete the plan. The other factor also that we need to think about is that when we did the plan, our share price was higher. Share price is a bit lower now, so we account for that as well. There's a bit of a dilution effect also because of the share price. We're trying to beat the plan. As Michel says, I guess if we can track on it and get the CAD 1 share in 2025 run rate, that'd be great. The good thing I think is, and I guess just to paraphrase myself, but like we have less and less reliance on M&A to achieve the plan as we stand today compared to like one year ago or two years ago. No, under-understood. Obviously, it's a much better number than where we stand today or a couple of years ago. I just want to understand whether or not the announced transactions were additive or kind of already contemplated. It seems like they're sort of contemplated already. Last question for me, just on when we think about the proceeds from a potential asset sale, is it all the fund growth or would there be some deleveraging? Are you comfortable with where debt stands right now? I'm just trying to understand what would be ultimate use of proceeds from potential asset sales. Yeah. Of course, we like to have a little bit more margin on the debt side. We're committed to keep Fitch so that sale recycling could probably go towards lowering the. Well, you would sell the funds from operations, right? You get like a nice amount upfront, but you need to consider to keep the ratios in good check. Yes, there would be the application of some of that funding towards reducing the debt, the RCF. Provide a little bit more flexibility. This revolver, as you know, Mark, is very flexible. We're using it, and it's always nice to have a little bit of margin on that aspect to. You know, it helps when we could make small acquisitions, tuck it up, and then park that financing there for a while. We have also to, you know, to look into we're resigning some contract in BC and in Quebec. There's also, like Jean is saying, there's quite a bit of facility supporting that revolver that potentially could be put into a project finance. Depending on the price of not the price, but the yield on such a thing, we might consider flipping some of our assets into a non-recourse. That aspect would help on Fitch because then it would not be re-coursed on the corporate level. That's another alternative for, you know, keeping a good rating for us. Okay. Thanks, Michel. Thanks, Jean. Thank you. Mrs. Vashon, there are no further questions at this time. Thank you very much, everybody, and we'll see you in a bit in May. Yeah. Thank you, everyone. Thanks. Ladies and gentlemen, you may now disconnect your lines.