Elexicon Annual Reports

I am pleased to report on another busy year at Elexicon as we work towards how we best position ourselves for
the future, to maximize the opportunities before us in the energy sector, to add value to the communities we serve, and fulfil our responsibility and obligation to provide reliable and cost-effective electricity to enable economic and social growth. I would like to thank all the members of our board(s), management, and each and every employee in the organization for their continued dedicated work in enabling us to identify and execute on our strategy and fulfil our obligations to the communities we serve.

As with last year, we continue to be challenged with the spectre of economic uncertainty and a rising cost platform, as does everyone. In this framework, as an organization, we continue to make thoughtful and prudent investment in our electricity system for the benefit of all of our stakeholders, with a laser focus on our customers, our employees and our communities.

In our drive towards the future, Elexicon will undertake a large capital expenditure over a number of years not only in our grid proper but on upgrading our technology and taking full advantage of a range of innovative tools that will us to allow us to do an even better job delivering our services to our customers and the communities we serve. All of this is in the context of a continuously evolving electricity sector landscape and as we adapt to changing customer needs and new governmental requirements, as they arise.

Our continued strong financial performance in 2023 reflected our core strength in our local distribution company, Elexicon Energy Inc. Our ongoing efforts in the non-regulated operations through our innovative energy solutions provider, Elexicon Group Inc., has been a challenge and we continue to evaluate our available options to properly utilize our capital investment in the non-regulated sector opportunities.

From a purely financial perspective, we performed strongly in 2023, generating operating net income of $0.6M for the period of January 1 to December 31, 2023, invested $89.4M in the system infrastructure, increased total assets to $894.4M and our municipal shareholders benefited from distributions of earnings through annual dividends of $6.1M – with those funds supporting the shareholder communities we service.

Also, during 2023, we refreshed our board composition through retirements and the planned rotation of our director compliment with a focus on ensuring we have the best skills-based composition we can. We added four new directors, some of whom commenced their tenure on January 1, 2024, including three independent directors, and a mayor’s designate throughout the holding company and operating boards. In that regard, we welcome Kimberly Marshall, Mark Radha, Anne Marie Dunn and Mary Ann Dempster. For our departing directors, Leslie Rose, Doug Parker, Ron Chatterton, Dave McGregor, Paul Murphy and Adrian Foster, we thank them for their contributions during their respective terms. Our ongoing focus on Diversity, Equity and Inclusion, Indigenous Relations and Corporate, Environmental and Social Responsibility will remain an important component of our thinking and activities in 2024.

In 2023, and in light of these ongoing very difficult times for our vulnerable communities, we have continued our
strong history and our commitment to supporting those in our community who are at risk by providing financial and
community support. Elexicon Corporation’s Corporate Giving Program provided $360,000 to a total of 100 local charities. There has been a lot of great work done by the organization throughout the year in this regard, and is an excellent example of the character of the people that make up our great organization.

As we move into 2024, we look forward to the opportunities to refine and advance our strategy to empower our customers and communities through energy innovation for a cleaner, better future, and continue along our growth
trajectory, adopting innovative solutions to respond to new and existing challenges as we work towards the net zero mandate and our work with government and industry led initiatives.

Jim Macpherson
Chair of the Board of Directors
Elexicon Corporation