Revenue (TTM) 79.74M Revenue (Qtrly YoY Growth) EPS Diluted (Quarterly) EPS Diluted (Qtrly YoY Growth) N/A. Profitability. Revenue (Quarterly)

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1 Attractive VNR.TO is probably worth a deeper look. Price is low compared to sales, earnings or assets, and historical fundamentals look strong. Value Score Good (9/10) Fundamental Score Strong (8/10) Valuation from Historical Mult % under Key Statistics Price Nov 11, 20: Week High (Daily) Week Low (Daily) Market Cap M Enterprise Value M Revenue (TTM) 79.74M Revenue (Qtrly YoY Growth) N/A Net Income (Quarterly) M EPS Diluted (Quarterly) EPS Diluted (Qtrly YoY Growth) N/A PE Ratio (TTM) PS Ratio (TTM) Profit Margin (Quarterly) N/A Return on Equity (TTM) 7.75% Beta Company Description Exchange: TSX Sector: Utilities Industry: Utilities - Regulated Gas Valener Inc is engaged in distribution of regulated natural gas in Quebec and the distribution of electricity in Vermont. Price Performance, 5 Years VNR.TO Year Total Returns Performance Profitability VNR.TO 15.55% JE.TO % CFY.V 15.38% OEG.V % Revenue (Quarterly) Net Income (Quarterly) -1.78M M Total Expenses (Quarterly) 0.372M

2 Pro Value Score Good (9/10) VNR.TO has a good value score. It is likely selling at a low price given its performance. If the future looks like the past, this stock has promise. Value Score Components The items below are the key metrics in the Value Score. The bars beneath the metric show which quintile the company falls in compared to the whole market. For example, if a stock has 4 bars colored for Earnings Yield, it's earnings yield is between the 60th and 80th percentile in the market. Earnings Yield: 7.55% Earnings per share from the previous four quarters divided by the share price. Continuing Ops Earnings Yield: 7.55% Removes discontinued operations from the earnings yield figure to be more forward-looking. About the Value Score The Value Score is the most important element of the Y-Rating. It is highly historically predictive. Portfolios of stocks with a Value Score of 10 historically outperformed the S&P500 substantially, and portfolios of stocks with a score of 1 substantially underperformed the S&P 500. The Value Score is a composite score. It tells you how much you are getting in terms of profits, cash flows, assets, sales, etc. for the price that you pay. It is a relative measurement, so it says nothing about the overall level of the market. Rather, it answers the question: "Given the current market level, which stocks give you the most current value for your dollar of investment?" Tens are the most value, and 1s are the least. Use it to find companies that are selling at a low price relative to their assets and profits, but watch out for companies with a lot of uncertainty or bad prospects for the future (e.g. Pharma companies with expiring patents, industries on the decline, etc.). Adjusted Cash Earnings Yield: 8.14% Cash generated per dollar of investment. Calculated as net income plus depreciation and amortization per share divided by the share price. Historical Results This chart shows the value of $1 invested in portfolios of companies with different Value Scores, based on historical tests. Book to Market: Book value (historical cost) of a company's equity compared to its market capitalization. Dividends Yield: 5.76% Estimated annual dividends per share, divided by the current price per share. Market Cap to Sales Ratio: Market Cap divided by total revenues. Most useful for comparing companies within industries. Value score of companies in portfolio S&P

3 Pro Fundamental Score Strong (8/10) VNR.TO has a strong fundamental score. The company looks strong, but check failed tests carefully for possible weakness. The Fundamental Tests The fundamental tests shown below tend to be absolute positive or negative factors. These tests can be used to roughly gauge the fundamental health of the company. EPS Growth > 0: Pass Tests whether average earnings in the most recent years are higher than average earnings in previous years. Revenue Growth > 0: Pass Tests whether average revenue in the most recent years is higher than average revenue in previous years. Five Year Avg. ROE > 5%: Pass ROE = 5% means that a company earns 5 cents on every dollar invested by shareholders. VNR.TO's 5 yr. avg ROE is 5.60%. 10 Yr. Min Gross Margin > 0: Pass If a company fails this test, it has sold its goods or services below cost in a given year. 6% of companies currently pass this test. Book Value per Share Growth > 0: Pass Shrinking book value is often a negative sign since it is associated with shrinking assets. About the Fundamental Score The fundamental score is ten basic pass/fail tests which together give a sense of whether has a strong foundation to pay its bills and survive. It is helpful for identifying bad companies, but does not predict market-beating returns. Look for scores of 7 or higher to avoid bad companies, and look at individual pass/fail marks to find possible problem points for deeper investigation. Watch out for failed Fundamental Checks - if a company fails one, check some of its peer companies to see if they fail too (eg, many tech stocks do not pay dividends). If a company is different than its peers, find out why. Portfolios of companies with scores below 5 tend to perform very poorly. Portfolios of companies with scores of 5-6 underperform the S&P 500 slightly, but can have major winners and losers, so they should be considered carefully. Portfolios of companies with scores of 7 or higher tend to match the S&P 500 over long periods. Historical Results This chart shows value of $1 invested in portfolios with various Fundamental Score, based on historical tests. Current Ratio > 1: Fail Checks whether a company can cover its current liabilities with its current assets. VNR.TO's Current Ratio is D/E Ratio < 13: Pass Companies that take on heavy levels of debt can become insolvent. Look at those levels carefully. VNR.TO has a D/E Ratio of Long Term Avg. Cash Flow > 0: Pass VNR.TO has earned an average of M over the past 10 years or the life of the company (whichever is shorter). Long Term Debt < 5 x Net Income: Pass Companies that pass this test essentially can pay off their debt in 5 years. VNR.TO long term debt is times average net income. Fundamental score of companies in portfolio. 7 to 10 0 to 4 5 to 6 S&P 500 Never Missed a Dividend Payment: Fail Companies that are worried about earning power cannot pay dividends. VNR.TO has not consistently paid dividends over the past 10 years or the life of the company (whichever is shorter).

4 Pro Valuation from Historical Multiples 22.79% under Valuation from Historical Multiple Last Price 11/11/ : Valuation (Historical Mult.) PE Method PS Method VNR.TO's price is 22.79% under its historical valuation. YCharts recommends looking for recent developments that caused the market to be pessimistic. Valuation Method Details Below are the detailed calculations that comprise the valuation. PE Method This valuation method corrects for recent price changes by assuming that a company has a 'natural' PE Ratio based on history. It will generally show companies experiencing bad times relative to the recent past as undervalued and companies that have performed strongly relative to the recent past as overvalued. PE Ratio (5 year avg) PS Method x Earnings per Share = PE Method Val Price to Sales multiples are attractive for valuation because sales figures tend to be more stable than earnings. This means that valuations fluctuate less year-to-year with a PS multiple than a PE multiple. Still, be skeptical of this valuation when a company has experienced stellar recent growth. About the Valuation from Historical Multiples The Valuation from Historical Multiples compares the current valuation of the stock to the same company's historical valuation. For example, If investors used to pay $15 for $1 of earnings but now only pay $10 for $1 of earnings, the company looks undervalued relative to its past. It can be used as a reality check and reason to dig deeper into the news about a company. If a company is valued differently today than it was in the past, there must be a good reason. If you cannot find a convincing reason, consider making a purchase or sale. Watch out for companies with extremely positive or negative recent news, or companies with earnings or sales that frequently fluctuate. For such companies, earnings and sales multiples are unreliable measurements of valuation. For companies with temporary shocks affecting the current price, it will correctly predict when stocks are undervalued. When shocks affecting the current price are permanent, it will incorrectly predict valuations. PS Ratio (3 year avg) x Sales per Share = PS Method Val Valuation from Historical Multiples The fair value estimate is the average of the two valuations above. PE PS = Sum # of valuations 2 = Val (Hist. Mult.) 24.30

5 Performance Historical performance is a good guide for the future, but it is imperfect. Pay attention to a company's history, but be realistic about what you can project into the future. Earnings Yield vs Dividend Yield Yields show how much you are getting for the price you pay. For example, an earnings yield of 8% means that for every dollar you pay, you get 8 cents worth of current earnings. Take these numbers into account when buying to see if you are over-paying or getting a good deal. Earnings Yield (TTM) 7.55% Dividend Yield (TTM) 5.76% 5 Year Total Returns Performance Returns from price appreciation only give a partial view of the returns to an investor. This total returns chart shows the returns to an investor from both price appreciation and dividends (dividends are assumed to be reinvested). Price Total Return Price Reinvestment Strategy Return on Invested Capital (ROIC) tells you how much income a company earned after investing $1 in its business. The Payout Ratio tells what percentage of the company's income it pays to shareholders instead of reinvesting in its own growth. Watch out for companies that pay out very little when their ROIC is low. Return on Invested Capital (TTM) 6.76% Payout Ratio (TTM) 67.34% Price vs Earnings In the long run, the price and earnings of a company are correlated. If the two metrics are diverging, there should be a good reason why. Divergence without reason can signal danger or opportunity. Price EPS Diluted (TTM) Revenue and Earnings Growth Efficient Use of Assets Profit margins show what percentage of every dollar of sales turns into earnings. Asset Utilization shows how many dollars of sales a company gets for each dollar that the company invests in assets. Multiplying the two numbers together gives you Return on Assets which tells you approximately how efficiently the company invests money to earn more money. Profit Margin (Quarterly) Asset Utilization (TTM) Revenues show how much the company is selling to customers, while net income is what remains for shareholders after the company pays its expenses. Revenue growth often persists over time, but net income is more fickle. Watch closely to see if revenue and income grow at similar rates. Revenue (TTM) 79.74M Net Income (TTM) 58.92M

6 Valuation No matter how good a company is, if the price that you pay to buy it is too high, you won't make much money. These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time. Price Multiples Price Multiples show how much you get for the price you pay. They can fluctuate drastically over time. Looking at price multiples over time and comparing to those of competitors will help to triangulate a reasonable valuation. Enterprise Value Multiples Enterprise Value (EV) multiples tell you would get if you were to buy the whole company (including paying off all debt). Similar to price multiples, they can be compared across time and with peers. Price to Sales Ratio Tells you how much you are paying for one dollar of sales. VNR.TO JE.TO 0.31 CFY.V OEG.V EV / EBITDA Tells you how much you pay for one dollar of earnings before interest, taxes, depreciation and amortization if you were buying the whole company. VNR.TO JE.TO CFY.V OEG.V Price to Earnings Ratio Tells you how much you are paying for one dollar of earnings. VNR.TO JE.TO CFY.V OEG.V EV / Revenue Tells you how much you pay for one dollar of sales if you were buying the whole company. VNR.TO JE.TO CFY.V OEG.V Price to Book Tells you how much you are paying for one dollar of net assets (net assets is total assets - total liabilities). VNR.TO JE.TO CFY.V OEG.V EV / EBIT Tells you how much you pay for one dollar of earnings before interest and taxes if you were buying the whole company. VNR.TO JE.TO CFY.V OEG.V 6.050

7 Competitors Comparing a company's operating statistics to those of competitors helps you to benchmark performance. While excellent for detecting competitive strengths and weaknesses, consider carefully if there are short-term or long-term trends affecting the whole industry. 1 Year Total Returns Comparison This total returns chart shows the returns to an investor from both price appreciation and dividends (dividends are assumed to be reinvested). Here are Valener's total returns compared to the market and some of its peers. High historical total returns are excellent- especially if you held the stock at the time - but returns can change direction quickly. To predict future performance, looking at the business is more important than looking at historic returns. VNR.TO 15.55% CFY.V 15.38% JE.TO % OEG.V % Management Effectiveness Receivables Turnover (Quarterly) Return on Equity (TTM) 7.75% 9.31% % % Return on Assets (TTM) 6.41% 2.88% 32.92% -6.62% Return on Invested Capital (TTM) 6.76% 4.51% 314.7% % Stock Price Performance Beta (4) Month Price Returns (Daily) -9.46% -9.09% 3.11% 19.72% Year to Date Price Returns (Daily) 4.16% % % 41.67% 1 Year Price Returns (Daily) 9.58% 15.38% % % 3 Year Price Returns (Daily) 22.06% -4.76% -5.28% % Income Statement Y-Ratings Y-Rating Attractive Unrated Unrated Avoid Value Score 9/10 N/A 5/10 N/A Fundamental Score 8/10 8/10 6/10 2/10 Valuation from Hist. Mult % 19.77% N/A N/A Current Valuation Market Cap (1) M 18.40M M 10.25M Enterprise Value M 46.35M 1.531B 7.563M PE Ratio (TTM) (2) PEG Ratio (TTM) PS Ratio (TTM) (3) Price to Book Value EV to EBITDA (TTM) EV to EBIT (TTM) Operating Earnings Yield (TTM) (2) 10.76% 48.01% 15.50% Dividend Yield (TTM) (2) 5.76% % 0.00 Profitability Profit Margin (Quarterly) (MRQ) -2.51% 53.12% 8.42% Operating Margin (TTM) 97.39% 14.28% 4.80% % EBITDA Margin (TTM) 88.97% 16.31% 13.25% 7.48% Asset Utilization (TTM) Gross Profit Margin (Quarterly) 39.18% 18.11% 12.40% (MRQ) Revenue (TTM) 79.74M 63.40M 4.071B 26.09M Revenue (Quarterly YoY Growth) 12.91% -3.71% 41.95% EBITDA (TTM) 70.95M 10.34M M 1.952M Balance Sheet Cash and Short Term Investments 0.536M 13.45M 87.37M 4.111M (Quarterly) Book Value (Per Share) (MRQ) Tangible Book Value (Per Share) Book Value (Quarterly) (MRQ) M 32.99M M M Tangible Book Value (Quarterly) M 32.60M M 8.949M Shares Outstanding (MRQ) 38.58M 61.34M M 24.12M Debt to Equity Ratio (Quarterly) (MRQ) (5) Current Ratio (Quarterly) (MRQ) Total Assets (Quarterly) M106.55M 1.229B 33.11M Total Liabilities (Quarterly) M 73.56M 1.421B 23.02M Notes About Statistics: TTM: Trailing twelve months EBITDA: Earnings before interest, taxes, depreciation and amortization EBIT: Earnings before interest and taxes MRQ: Most recent quarter 1 Shares outstanding from most recent quarter, current price as of report creation 2 TTM financial data, current price as of report creation 3 MRQ financial data, current price as of report creation 4 Calculated using 60 months of monthly returns, or the life of the stock, whichever is shorter (no calculations made for stocks with lives shorter than 36 months)

8 5 Equity taken at book value

9 Income Statement Revenue (TTM): 79.74M Total Expenses (TTM): 2.082M Net Income (TTM): 58.92M Income Operating Revenue 39.23M M M 21.77M 42.78M 1.764M M 45.60M 43.49M M Revenue 39.23M M M 21.77M 42.78M 1.764M M 45.60M 43.49M M Gross Profit 39.23M M M General and Administrative Expense M M M M M M M M M M SG&A Expense M M M M M M M M M M Total Operating Expenses M M M M M M M M M M Operating Income 38.69M M M 21.21M 42.20M 1.211M M 44.97M 42.85M M Non-Operating Interest Expense M M M M M M M M M M Net Non-Operating Interest Income Expense M M M M M M M M M M Non-Operating Income M M M M M 1.875M M M M M Other Income and Expenses M M M M M 1.875M M M M M Net Interest Income M M M M M M M M M M Pre-Tax Income 38.22M M M 19.25M 39.29M 2.660M M 44.47M 39.45M M Provision for Income Taxes 8.078M M M 3.546M 2.411M M M 4.238M 9.721M M Income from Continuing Operations 30.15M M -5.50M 15.71M 36.88M 2.912M M 40.23M 29.73M M Preferred Stock Dividend 1.088M 1.088M 1.086M 1.088M 1.088M 1.088M 1.086M 1.088M 1.088M 1.088M Net Income 30.15M M -5.50M 15.71M 36.88M 2.912M M 40.23M 29.73M M Normalized Income 30.15M M -5.50M 15.71M 36.88M 2.912M M 40.23M 29.73M M EBITDA 38.60M M M 19.63M 39.64M 3.086M M 45.00M 39.98M M EBIT 38.60M M M 19.63M 39.64M 3.086M M 45.00M 39.98M M Basic EPS EPS Basic from Continuing Operations Normalized Basic EPS EPS Basic Diluted EPS EPS Diluted from Continuing Operations Normalized Diluted EPS EPS Diluted Shares Data Average Basic Shares Outstanding 37.88M 37.95M 38.03M 38.11M 38.19M 38.26M 38.35M 38.43M 38.50M 38.56M Average Diluted Shares Outstanding 37.88M 37.95M 38.03M 38.11M 38.19M 38.26M 38.35M 38.43M 38.50M 38.56M Dividend Per Share

10 Balance Sheet Total Assets (Quarterly): M Total Liabilities (Quarterly): M Shareholders Equity (Quarterly): M Assets Cash 1.671M M M 1.692M 2.469M 3.028M 1.449M 3.105M 5.088M M Cash and Equivalents 1.671M M M 1.692M 2.469M 3.028M 1.449M 3.105M 5.088M M Cash and Short Term Investments 1.671M M M 1.692M 2.469M 3.028M 1.449M 3.105M 5.088M M Accounts Receivable 1.035M M Other Receivables 12.71M 12.33M 13.29M 14.07M Total Receivables 12.89M 12.70M 15.71M 14.73M 12.65M 13.66M 13.71M 14.28M 14.37M 14.39M Current Deferred Tax Assets M M M M Other Current Assets M M M M M M M M M M Total Current Assets 14.60M 13.86M 16.60M 16.45M 15.14M 16.70M 15.91M 17.48M 19.48M 14.94M Long Term Investments M M M M M M M M M M Long Term Deferred Assets 4.318M 3.177M 2.018M M M M M M M 0.125M Total Long Term Assets M M M M M M M M M M Total Assets M M M M M M M M M M Liabilities Dividends Payable 10.56M 10.58M 10.60M 10.62M 11.02M 11.04M 11.06M 11.47M 11.49M 11.50M Current Tax Payable 6.172M 3.646M 5.586M 5.267M 1.375M 7.743M 5.263M Total Payables 16.73M 14.22M 10.60M 10.62M 16.61M 16.31M 11.06M 12.84M 19.23M 16.77M Payables and Accrued Expenses 17.02M 14.51M 11.52M 11.34M 17.12M 16.59M 11.51M 13.20M 19.67M 17.04M Current Deferred Liabilities M M M 1.135M 1.006M Current Deferred Tax Liability M M M 1.135M 1.006M Other Current Liability 3.868M 6.629M 8.038M Total Current Liabilities 17.24M 14.51M 11.81M 11.34M 17.94M 17.72M 12.52M 17.07M 26.30M 25.07M Non-Current Portion of Long Term 71.22M 69.22M 66.78M 69.83M 63.44M 99.50M M M M 92.22M Debt Non-Current Portion of LTD and 71.22M 69.22M 66.78M 69.83M 63.44M 99.50M M M M 92.22M Capital Lease Obligation Long Term Deferred Tax Liabilities 21.85M 20.92M 23.69M 23.22M 21.80M 23.30M 26.50M 29.10M 27.65M 26.60M Non-Current Deferred Liabilities 21.85M 20.92M 23.69M 23.22M 21.80M 23.30M 26.50M 29.10M 27.65M 26.60M Derivative Contract Liabilities M 3.904M 1.925M 3.951M Total Long Term Liabilities 93.07M 90.14M 90.47M 94.51M 89.14M M M M M M Total Liabilities M M M M M M M M M M Shareholder's Equity Total Capital Stock M M 97.48M Retained Earnings 8.751M M M M 9.537M 1.025M M M M M Additional Paid In Capital M M M M M M M M Preferred Stock 97.48M Accrued Comprehensive Inc M M M M 16.20M 17.43M 26.52M 44.72M 25.05M 20.52M Shareholders Equity M M M M M M M M M M

11 Cash Flow Cash from Operations (Quarterly): 15.00M Cash from Investing (Quarterly): 19.40M Cash from Financing (Quarterly): M Cash Flow - Operations Net Income 30.15M M -5.50M 15.71M 36.88M 2.912M M 40.23M 29.73M M Gain (Loss) on Investment Securities M M 4.087M Earnings Loss from Eq. Investments M 60.72M M M M 70.46M M M M M Operating Gains Losses M 60.72M M M M 68.48M M M M M Deferred Taxes 1.488M 1.497M 2.053M 1.962M M 1.614M 2.190M 1.932M 2.561M M Other Noncash Items 24.46M M 22.49M M M M 59.30M M M M Change in Receivables M M M M M M 3.285M 1.970M M M Change in Payables and Accrued Expense M M M M M M M M M M Change in Other Working Cap 7.097M M M M 8.137M M M M 8.340M M Changes in Working Capital 5.499M M M M 7.054M M M 1.796M 6.454M M Cash from Operations 10.85M 12.64M 11.88M 11.03M 16.85M 13.47M 21.55M 11.52M 12.38M 14.99M Cash Flow - Investing Net Divestitures (Acquisitions) M M M M M M M M 19.40M Net Other Investing Changes M M M M Cash from Investing M M M M M M M M 19.40M Cash Flow - Financing Net Change in Long Term Debt M M M 2.996M M 35.99M 21.48M M M M Net Debt Issuance M M M 2.996M M 35.99M 21.48M M M M Total Common Dividends Paid M M M M M M Total Preferred Dividends Paid M M M M M M M M M M Total Dividends Paid M M M M M M M M M M Cash from Financing M M M M M 26.24M 11.86M M M M Ending Cash Beginning Cash 1.062M 1.671M M M 1.692M 2.469M 3.028M 1.449M 3.105M 5.088M Change in Cash M M M M M M M 1.656M 1.983M M Ending Cash 1.671M M M 1.692M 2.469M 3.028M 1.449M 3.105M 5.088M M Additional Items Issuance of Debt M 89.44M 67.50M 70.50M 64.05M 99.99M M M M M Debt Repayment M M M M M M M M M M

12 The YCharts Rating System How it Works The Rating system involves three key elements that combine together to create one attractiveness rating - the Y-Rating. To see how those elements work, take some time to look through the key indicators: Value Score (p.2), Fundamental Score (p.3), Valuation from Historical Multiples (p.4) The Y-Rating Why Ratings are Different From Analysts Some YCharts followers are concerned that our attractiveness ratings sometimes disagree with those of analysts and their own perceptions. First, consider the record of analysts. There is a great deal of research showing that analysts are overly optimistic about the stocks that they cover. Consider the image below, which shows the percentage of stocks in the S&P 500 with a mean rating of "Sell" or "Hold/Sell." As you can see, the numbers never top 10%, meaning that analysts rated more than 90% of stocks "Hold," "Hold/Buy" or "Buy" at all times during the past 14 years. Percent of S&P 500 stocks with mean analyst rating of 'Sell' or 'Hold/Sell' The Y-Rating is a single summary score that takes into account our 3 key indicators: Value Score, Fundamental Check, and Valuation (Historical Multiples). In a glance, it will give you a sense of the safety and return possibility of the stock. Be aware that it will often miss stocks with a huge potential for gains because big gains are correlated with high risk. Also, it sometimes misses the decline of industries which were profitable for long periods of time. To receive an overall "Attractive" rating, a stock must: Receive a Value Score of 9 or 10 Receive a Fundamental Check score of 7 or higher Have a Historical Value greater than its current price To receive an overall "Avoid" rating, a stock only needs to have "Weak" fundamentals - a Fundamental Check score of 4 or lower. We rate all other companies "Neutral," since based on our testing we do not have strong quantitatively-backed reason to believe that they will underperform or outperform the market significantly as part of a portfolio That might be alright if analysts consistently picked winners in their "Buy" category. There is some evidence that top analysts can pick winners, but those analysts are rare, and finding them is arguably as difficult as finding winning stocks. Further, there is strong evidence from scholarly research that analysts are over-optimistic about future prices and long term growth rates. Our system, on the other hand, was built based on intensive study and rigorous testing. We searched for relationships between stock prices and company financials that predicted returns over long periods of time. We documented predictive relationships and can now direct you to companies that look similar to those that historically grew in value. While there is no way to guarantee that what worked in the past will work equally well in the future, we view it as the best possible starting point.