Brookfield Renewable Corporation · NYSE:BEPC
Brookfield Renewable — Brookfield Renewable Partners L.P. Limited Partnership Units — Q2 2019 Earnings Presentation
37 slides from Brookfield Renewable's earnings presentation, Jul 31, 2019
Slide 1: Q2 2019 Supplemental Information
BROOKFIELD RENEWABLE PARTNERS L.P. Q2 2019 Supplemental Information For the Three and Six months ended June 30, 2019
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Supplemental Information contains forward-looking statements and information, within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amende
Slide 3: Q2 2019 Highlights
Q2 2019 Highlights Three months ended 2019 2018 Six months ended 2019 2018 7.6 TWh $230M 35% (MILLIONS, EXCEPT AS NOTED) PROPORTIONATE FUNDS FROM YOY FFO PER Operational Information GENERATION OPERATIONS UNIT GROWTH Capacity (MW) 17,482 17,364 17,482 17,364 PERFORMANCE HIGHLIGHTS Total generation (G
Slide 4: Q2 2019 Highlights (cont'd)
Q2 2019 Highlights (cont’d) OPERATIONS GROWTH AND DEVELOPMENT • Continued to focus on extending our contract profile • Together with our institutional partners, we completed the following: – In Colombia, we contracted ~1,114 GWh/year, including individual contracts with up to five years in duration
Slide 5: About Brookfield Renewable
About Brookfield Renewable One of the largest public pure-play renewable businesses globally 120 years of experience in power generation Full operating, development and power marketing capabilities Over 2,500 operating employees $47 billion TOTAL POWER ASSETS 17,500 75% HYDROELECTRIC GENERATION MEGA
Slide 6: Overview of Our Operations
Overview of Our Operations Storage River Capacity LTA(1) Capacity Long-term Average Generation by Source of Energy As at June 30, 2019 Systems Facilities (MW) (GWh) (GWh) (proportionate basis) Hydroelectric North America United States 30 136 2,885 11,982 2,523 Solar 4% Canada 19 33 1,361 5,177 1,261
Slide 7: Generation and Financial Review for the Three Months Ended June 30
Generation and Financial Review for the Three Months Ended June 30 7
Slide 8: Performance Measurement
Performance Measurement Segmented Information Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia).
Slide 9: Proportionate Results for the Three Months Ended June 30
Proportionate Results for the Three Months Ended June 30 For each operating segment, this Supplemental Information outlines Brookfield Renewable’s proportionate share of results in order to demonstrate the impact of key value drivers of each operating segment on the partnership’s overall performance
Slide 10: Hydroelectric Operations on Proportionate Basis
Hydroelectric Operations on Proportionate Basis FINANCIAL RESULTS 6,061 GWh $226M FFO increased 25% or $45 million to $226 million PROPORTIONATE GENERATION FFO • FFO at our North American business was $168 million versus $123 The following table presents our proportionate results for the three milli
Slide 11: Wind Operations on Proportionate Basis
Wind Operations on Proportionate Basis FINANCIAL RESULTS 1,164 GWh $39M FFO increased 15% or $5 million to $39 million PROPORTIONATE GENERATION FFO • FFO at our North American business was $23 million versus $24 The following table presents our proportionate results for the three million in the prio
Slide 12: Solar, Storage & Other and Corporate on Proportionate Basis
Solar, Storage & Other and Corporate on Proportionate Basis The following table presents our proportionate results for our solar The following table presents Corporate results for the three months business the three and six months ended June 30: ended June 30: Three months ended Six months ended Thr
Slide 13: Distribution Payout Ratio
Distribution Payout Ratio Our objective is to pay a distribution that is sustainable on a long-term basis while retaining sufficient liquidity within our operations to fund growth. We fund our growth initiatives through a combination of preferred equity and corporate debt issuances, asset sales and
Slide 14: Capitalization and Available Liquidity
Capitalization and Available Liquidity CAPITALIZATION AVAILABLE LIQUIDITY A key element of our financing strategy is to raise the majority We operate with sufficient liquidity to enable us to fund of our debt in the form of asset-specific, non-recourse growth initiatives, capital expenditures, distr
Slide 15: Borrowings
Borrowings The following table summarizes our undiscounted principal and scheduled amortization repayments on a proportionate basis: Balance of (MILLIONS) 2019 2020 2021 2022 2023 Thereafter Total Principal repayments Corporate borrowings(1) — 344 — 305 — 1,353 2,002 Non-recourse borrowings Credit f
Slide 16: Contract Profile
Contract Profile The following table sets out our contracts over the next five years for generation output in North America, Europe, and other countries in Asia and Africa on a proportionate basis, assuming long-term average. The table excludes Brazil and Colombia, where we would expect the energy a
Slide 17: Assets Under Construction
Assets Under Construction The following table summarizes the 131 MW of assets currently under construction and the expected FFO on an annualized basis: Expected Annualized Country / Capacity date of expected FFO Project Name Region Technology (MW) commission (millions) GLP Rooftop JV China Solar 30
Slide 18: Proportionate Results for the Six Months Ended June 30
Proportionate Results for the Six Months Ended June 30 For each operating segment, this Supplemental Information outlines Brookfield Renewable’s proportionate share of results in order to demonstrate the impact of key value drivers of each operating segment on the partnership’s overall performance.
Slide 19: Appendix 1 – Reconciliation of Non-IFRS Measures
Appendix 1 – Reconciliation of Non-IFRS Measures 19
Slide 20: Segment Reconciliation on a Proportionate Basis – Three Months Ended June 30, 2019
Segment Reconciliation on a Proportionate Basis – Three Months Ended June 30, 2019 The following table reflects Adjusted EBITDA, FFO and CAFD and provides reconciliation to IFRS financial data for the three months ended June 30, 2019: Attributable to Unitholders Contribution Attributable Hydroelectr
Slide 21: Segment Reconciliation on a Proportionate Basis – Three Months Ended June 30, 2018
Segment Reconciliation on a Proportionate Basis – Three Months Ended June 30, 2018 The following table reflects Adjusted EBITDA, FFO and CAFD and provides reconciliation to IFRS financial data for the three months ended June 30, 2018: Attributable to Unitholders Contribution Attributable Hydroelectr
Slide 22: Per Unit Reconciliation – Three Months Ended June 30
Per Unit Reconciliation– Three Months Ended June 30 The following table reconciles net income (loss) attributable to Limited partners’ equity and earnings per LP Unit, the most directly comparable IFRS measures, to Funds From Operations, and Funds From Operations per Unit, both non-IFRS financial me
Slide 23: Segment Reconciliation on a Proportionate Basis – Six Months Ended June 30, 2019
Segment Reconciliation on a Proportionate Basis – Six Months Ended June 30, 2019 The following table reflects Adjusted EBITDA, FFO and CAFD and provides reconciliation to IFRS financial data for the six months ended June 30, 2019: Attributable to Unitholders Contribution Attributable Hydroelectric W
Slide 24: Segment Reconciliation on a Proportionate Basis – Six Months Ended June 30, 2018
Segment Reconciliation on a Proportionate Basis – Six Months Ended June 30, 2018 The following table reflects Adjusted EBITDA, FFO and CAFD and provides reconciliation to IFRS financial data for the six months ended June 30, 2018: Attributable to Unitholders Contribution Attributable Hydroelectric W
Slide 25: Per Unit Reconciliation – Six Months Ended June 30
Per Unit Reconciliation – Six Months Ended June 30 The following table reconciles net income attributable to Limited partners’ equity and earnings per LP Unit, the most directly comparable IFRS measures, to Funds From Operations, and Funds From Operations per Unit, both non-IFRS financial metrics fo
Slide 26: Segment Proportionate Balance Sheet
Segment Proportionate Balance Sheet Attributable to Unitholders Contribution Attributable Storage from equity to non- As per and accounted controlling IFRS (MILLIONS) Hydro Wind Solar Other Corporate Total investments interests financials As at June 30, 2019 Cash and cash equivalents 77 63 31 13 — 1
Slide 27: Appendix 2 – Consolidated Information
Appendix 2 – Consolidated Information 27
Slide 28: Consolidated Results – Three Months Ended June 30
Consolidated Results – Three Months Ended June 30 (GWh) (MILLIONS) Actual Generation LTA Generation Revenues Adjusted EBITDA Funds From Operations 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Hydroelectric North America United States 4,069 3,266 3,474 3,474 $ 236 $ 210 $ 167 $ 145 $ 94 $ 77 Can
Slide 29: Consolidated Results – Six Months Ended June 30
Consolidated Results – Six Months Ended June 30 (GWh) (MILLIONS) Actual Generation LTA Generation Revenues Adjusted EBITDA Funds From Operations 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Hydroelectric North America United States 8,223 6,788 6,878 6,878 $ 491 $ 440 $ 354 $ 307 $ 192 $ 162 Can
Slide 30: Appendix 3 – Additional Information
Appendix 3 – Additional Information 30
Slide 31: Annualized Proportionate Long-term Average Generation
Annualized Proportionate Long-term Average Generation GENERATION (GWh) (1) Q1 Q2 Q3 Q4 Total Hydroelectric North America United States 2,223 2,364 1,469 1,953 8,009 Canada 1,007 1,219 974 959 4,159 3,230 3,583 2,443 2,912 12,168 Colombia 798 869 851 967 3,485 Brazil 988 998 1,009 1,008 4,003 5,016 5
Slide 32: Annualized Long-term Average Generation
Annualized Long-term Average Generation GENERATION (GWh) (1) Q1 Q2 Q3 Q4 Total Hydroelectric North America United States 3,404 3,474 2,178 2,926 11,982 Canada 1,228 1,508 1,223 1,218 5,177 4,632 4,982 3,401 4,144 17,159 Colombia 3,316 3,612 3,535 4,022 14,485 Brazil 1,215 1,228 1,241 1,240 4,924 9,1
Slide 33: Appendix 4 – Presentation to Stakeholders and Performance Measurement
Appendix 4 – Presentation to Stakeholders and Performance Measurement 33
Slide 34: Presentation to Stakeholders
Presentation to Stakeholders Actual and Long-term Average Generation For assets acquired, disposed or reaching commercial operation during the period, reported generation is calculated from the acquisition, disposition or commercial operation date and is not annualized. As it relates to Colombia onl
Slide 35: Performance Measurement
Performance Measurement One of our primary business objectives is to generate reliable and growing cash flows while minimizing risk for the benefit of all stakeholders. We monitor our performance in this regard through four key metrics – i) Net Income (Loss), ii) Adjusted Earnings Before Interest, T
Slide 36: Performance Measurement
Performance Measurement • Cash Available for Distribution – Cash Available for Distribution is a non-IFRS measure used by investors to analyze net earnings from operations without the effects of certain volatile items that generally have no current financial impact or items not directly related to t
Slide 37: BEP BEP.UN
NYSE: BEP TSX: BEP.UN https://bep.brookfield.com 37
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