Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Investor Presentation (December 2010)
33 slides from Brookfield's investor presentation, December 2010
Slide 1: Corporate Profile
Brookfield Asset Management Inc. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Corporate Profile December 2010
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements Note: This Corporate Profile contains forward-looking information within the meaning of Canadian provincial securities laws and other “forward- looking statements”, within the meaning of certain securities laws including Section 27A of the U.S. S
Slide 3: Why Brookfield
Why Brookfield Q&A
Slide 4: Brookfield Investment Highlights
Brookfield Investment Highlights Over 100 years of experience investing, operating and managing high quality “real “ assets – property, renewable power and infrastructure World class operating platforms: focused on owning and managing high quality “real” assets – Generate stable growing cash flows
Slide 5: In Profile
In Profile Our primary objective is to generate attractive long-term returns on a per share basis from high quality assets that produce sustainable cash flows STOCK INFORMATION CAPITALIZATION Stock Exchange Listings: NYSE, TSX, Euronext Credit Ratings: DBRS – A(low) Moody’s – Baa2 Dividend Rate/Yiel
Slide 6: Our Business Strategy
Our Business Strategy Increase share values by creating growth, while minimizing risk Build and maintain “best in class” operating platforms to manage “real assets” that generate high levels of growing sustainable cash flows and increases in per share value Expand funds under management and fost
Slide 7: Unique Attractiveness of "Real Assets"
Unique Attractiveness of “Real Assets” Real Return. Yield Enhanced. Fixed Income Alternative Favourable long-term, risk adjusted returns generating both cash and capital returns – Long-term, predictable and sustainable cash flows • Allows for a stable financing profile – Tangible, long-duration as
Slide 8: Focused Global Reach
Focused Global Reach Geographic Currency Distribution* Other 3% GBP 100 offices or locations 5% 400 investment professionals CAD 19% 15,000 operating employees 39% USD BRL 19% 15% AUD Canada/U.S. UK/Europe Asia/Middle East Brazil/Chile Australia/New Zealand Renewable Power Real Estate Infrastruct
Slide 9: Operating Platforms – Emphasis on "Real" Assets
Operating Platforms – Emphasis on “Real” Assets AUM(1) – Invested Platform Over $100B Capital – $22B Description • 165 hydroelectric power plants with Renewable Power ~4 000 MW capacity ~4,000 • Hydroelectric ±$16 billion $7.5 billion • Two wind farms with combined 240 MW of • Wind energy capacity C
Slide 10: Investing and Restructuring Capabilities
Investing and Restructuring Capabilities Our real asset platforms benefit from more than 35 years experience in restructuring, transaction execution and operating capabilities across industry sectors Industrial & Natural Estate Resou Risk a age e t Management Real E urces Deal Structuring Sourcing E
Slide 11: Financial Profile
Financial Profile We are differentiated as an asset manager by the significant capital we invest alongside our clients and co-investors, and our diversified sources of capital Brookfield has invested $22 billion of capital alongside co-investors ASSETS UNDER MANAGEMENT SOURCES OF CAPITAL BROOKFI
Slide 12: Recent Initiatives
Recent Initiatives Acquired remaining 60% of Australian infrastructure company to create a leading, diversified global infrastructure platform which: – Significantly g y expands p our international infrastructure franchise, p positioning g Brookfield Infrastructure with increased scale and growth
Slide 13: Recent Initiatives cont'd
Recent Initiatives cont’d Completed $2.2 billion of new financings at attractive rates: Amount Type Entity (millions) Coupon Property Mortgage Brookfield Office Properties $ 800 3.89% Perpetual Preferred Shares Brookfield Asset Management 250 4.50% Perpetual Preferred Shares Brookfield Office Prop
Slide 14: Tangible Value – Downside Protection with Upside Potential
Tangible Value – Downside Protection with Upside Potential IFRS “book” values based on recent valuations of most physical assets on the balance sheet; excludes inventories and certain cost accounted investments: As at September 30, 2010 (millions, except per share amounts) Total Per Share Pre tax
Slide 15: Intrinsic Value Growth
Intrinsic Value Growth Continue growth of asset management franchise Reallocate capital and compound cash flows at higher returns Enhance cash flow and values of existing assets The tangible value of our assets - $30.99 per share (Sept. 30, 2010) 14 | Brookfield Asset Management Inc.
Slide 16: Significant Growth Opportunities
Significant Growth Opportunities Additional assets in core platforms Acquisitions Complementary platforms New geographic markets Locked-in contracts and regulated rate base businesses Internal Growth Rollover of existing leases/contracts at higher market rates Increased contribution as e
Slide 17: Operations
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Slide 18: Flagship Assets – Property, Power, Infrastructure
Flagship Assets – Property, Power, Infrastructure Property Renewable Power Infrastructure World Financial Center, New York Lièvre Operations, Quebec Dalrymple Bay Coal Terminal (("DBCT"), DBCT ), Australia Located at the forefront of Lower Located in western Quebec, along the Manhattan with over eig
Slide 19: Flagship Assets – Property, Power, Infrastructure
Flagship Assets – Property, Power, Infrastructure Property Renewable Power Infrastructure Southern Cross East, Australia Brazil Transelec, Chile Southern Cross East Tower is a landmark The power generation facilities are located The largest electricity transmission A-grade office building located in
Slide 20: Financial Strength, Liquidity and Flexibility
Financial Strength, Liquidity and Flexibility
Slide 21: Financial Strength, Liquidity and Flexibility
Financial Strength, g , Liquidity q y and Flexibility y ~$4 billion of core liquidity to fund growth Significant Liquidity Access to additional $8 billion of capital from institutional partners Free Cash Flow ~ $1.5 billion annually / $3 billion total group cash flow $30 billion of permanent
Slide 22: Conservative Capitalization
Conservative Capitalization Structured to enhance returns while minimizing risk 14% (corporate) and 41% (group proportionate) Investment grade strategy Over 80% of group debt has no recourse to Finance primarily at asset level and on Brookfield non-resource basis Readily manageable maturit
Slide 23: Asset Management
Asset Management
Slide 24: Compelling Private Fund Offerings
Compelling Private Fund Offerings Broad product mix with substantial institutional investor backing – A series of differentiated private funds and investment programs – Over $22 billion of institutional capital commitments, including more than $6 billion from Brookfield – Over 80 institutional fun
Slide 25: Diversity of Global Institutional Investors in Private Funds
Diversity y of Global Institutional Investors in Private Funds Third-Party Capital by Investor Type (1) Third-Party Capital by Geography (1) 7% Corporate Pension Family Office & Other Consultant 5% Australia A li & Asia Banks/ 4% Investment & 27% Financial 6% 49% Public P Pension i 63% North Insuran
Slide 26: Established Funds
Established Funds Strong track record of creating value through core, value add and opportunistic strategies Core and Value Add Year Formed Opportunity and Private Equity Year Formed U.S. Office 2006 Real Estate Opportunity 2006 Canadian Office 2005 Real Estate Opportunity II 2007 West Coast Timberl
Slide 27: Summary
Whi bags Pr id
Slide 28: In Summary
In Summary Brookfield is very well positioned in this environment Substantial liquidity and consistent access to capital Wide array of attractive investment opportunities World class operating p gpplatforms with dedicated p professional operating p g and investment teams Enhanced profile wit
Slide 29: Additional Information
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Slide 30: Investment Principles
Investment Principles BUSINESS PHILOSOPHY Build B ild th the b business i andd allll th the relationships l ti hi b based d on iintegrity t it Attract and retain high calibre individuals who will grow with us over the long term Ensure our people think and act like owners in all their decisions
Slide 31: Major Shareholders
Major Shareholders Management and directors own/control 17% of Brookfield, alongside other major institutional investors Major institutional investors, owning over 5 million Brookfield common shares: RBC Asset Management Davis Selected Advisers TD Asset Management/TD Securities McLean Budden Third A
Slide 32: Committed to Sustainable Development
Committed to Sustainable Development Environmental leadership One of the world’s leading asset managers, with a unique focus on renewable power assets, world-class commercial properties and a strong involvement in the community, as well as a demonstrated commitment to sustainable development Sus
Slide 33: Investor Relations Contacts
Investor Relations Contacts Contact Title E-Mail Address Phone Number Bruce Flatt Chief Executive Officer [email protected] (416) 363-9491 (212) 417-7000 Brian a Lawson a so Chief C e Financial a ca O Officer ce [email protected] b a a so @b oo e d co ((416) 6) 363 363-9491 9 9 Sachin S
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