Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Investor Presentation (April 2013)
25 slides from Brookfield's investor presentation, April 2013
Slide 1: Corporate Profile Fourth Quarter 2012
Corporate Profile Fourth Quarter 2012 Brookfield Asset Management Inc. A Global Alternative Asset Management Company Focused on Property, Renewable Power, Infrastructure and Private Equity
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements 1 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.
Slide 3: Experienced Investor and Manager
Experienced Investor and Manager 2 100 year history as a global investor, operator and asset manager Assets Under Management of high quality alternative assets >$175 billion • One of the largest global managers of real assets with over $175 billion under management ‒ Real estate − Infrastructure ‒ R
Slide 4: Experienced Investor and Manager: Leader in Alternative Investing
Experienced Investor and Manager 3 Leader in alternative investing across major asset classes that Real Assets Real Return are in demand by institutional investors seeking yield and Yield Enhanced Fixed Income Alternatives superior returns PROPERTY RENEWABLE POWER INFRASTRUCTURE PRIVATE EQUITY $103
Slide 5: Diversified Multi-Fund Platform
Diversified Multi-Fund Platform 4 Our clients have unparalleled flexibility to invest with us through flagship public entities and private funds across our real asset platforms Brookfield (BAM) 28% 65% ∼92.5% 100% Flagship Brookfield Brookfield Renewable Brookfield Brookfield Public Infrastructure P
Slide 6: Diversified Multi-Fund Platform (cont'd)
Diversified Multi-Fund Platform (cont’d) 5 Our flagship managed entities provide investors with access Total Flagship Entity Capitalization to global mandates in listed vehicles with attractive and growing distribution profiles >$27 billion Flagship Listed Managed Entities Brookfield Infrastructure
Slide 7: Diversified Multi-Fund Platform (cont'd)
Diversified Multi-Fund Platform (cont’d) 6 Our clients also invest with us in a diverse portfolio of New Funds in Marketing Additional 3rd Party Target Capital Raise private real estate, infrastructure and private equity funds across the risk-reward spectrum 6 $5 billion Established Private Funds As
Slide 8: Track Record of Strong Investment Performance
Track Record of Strong Investment Performance 7 Clients and investors in our fund strategies have been rewarded Committed to Private Funds with excellent historical returns $23 billion Committed/Pledged Capital 2 Vintage Gross IRR1,3 PRIVATE FUNDS (US$ millions) Core Plus & Value Add Real Estate $ 5
Slide 9: Client & Fee Bearing Capital
Client & Fee Bearing Capital 8 We have $60 billion of fee bearing capital under management Brookfield Principal Capital 2 alongside our $32 billion of capital, including nearly $10 billion of liquidity and “dry powder” to invest $32 billion FEE BEARING CAPITAL CLIENT DRY POWDER ∼$60 billion ∼$5.2 bi
Slide 10: Diverse Source of Client Capital Commitments
Diverse Source of Client Capital Commitments 9 We have a growing base of ~150 leading global Number of new private fund Clients invested in multiple private funds investors in our private funds, many invested in investors in 2012 multiple Brookfield funds > 30 ∼25 % PRIVATE CLIENT CAPITAL PRIVATE CL
Slide 11: Continued Growth in AUM
Continued Growth in AUM 10 We have achieved significant growth in our AUM through economic cycles TOTAL AUM GROWTH ($ billions) 17% $200 $180 $181 $160 $140 $152 $120 $121 $100 $108 $80 $94 $60 $79 $71 $40 $20 $0 2006 2007 2008 2009 2010 2011 2012
Slide 12: Momentum in Fee Revenues
Momentum in Fee Revenues 11 We have laid the groundwork for increasing our fee revenues Gross Profit Margin year over year 40% ASSET MANAGEMENT FEES1 $ Millions 2008-2012 500 $454 450 22% CAGR 400 350 $331 $294 300 $253 Annualized Base 250 Management Fees & IDRs3 $207 200 $415 million 150 Incentive
Slide 13: Embedded Growth in Recurring Fee Streams
Embedded Growth in Recurring Fee Streams 12 We have a significant opportunity to further increase the fees we earn as we continue to grow our assets under management and the distributions and capitalization of our flagship public entities Base Fees Carried Return PRIVATE FUNDS (bps) Interest Hurdles
Slide 14: Financial Strength
Financial Strength 13 We are very well positioned with a strong balance sheet and significant access to capital to maintain our growth momentum Significant Liquidity − >$4 billion of core liquidity to fund growth − Over $5 billion of capital from institutional partners Strong and Flexible − Over $50
Slide 15: Global Platform Positioned for Growth
Global Platform Positioned for Growth 14 And our global footprint is a key strategic advantage Number of Offices Number of Countries 100 20 • Unparalleled ability to source a broad scope of investment opportunities • Flexibility to allocate capital to the businesses or locations that offer the best
Slide 16: Why Brookfield?
Why Brookfield? 15 • Strong competitive position as an alternative asset manager ‒ Broad offering of alternative asset strategies and products attractive to institutional investors ‒ Established track record of performance and increasing fee revenues ‒ Growing base of clients and enhanced reputation
Slide 17: Additional Information
Brookfield Additional Information ae
Slide 18: Appendix – Private Funds
Appendix – Private Funds 17 We have a diversified portfolio of established private funds and six in marketing seeking an additional $5 billion in third party capital Private Funds1 Historical Historical Committed Committed Capital Brookfield Year Opportunistic and Capital Brookfield Year Core Plus a
Slide 19: Appendix – Brookfield Recognition
Appendix – Brookfield Recognition 18 Brookfield’s performance and expertise has been recognized across our real asset platforms 2012 Private Equity Real Estate (PERE) North America Firm of the Year Infrastructure Investor Latin American Infrastructure Deal of the Year Institutional Real Estate Newsl
Slide 20: Appendix – Recent Growth Initiatives
Appendix – Recent Growth Initiatives 19 We expanded our asset management platform and announced or completed acquisitions and capital expansions totaling $11.5 billion in 2012 ASSET MANAGEMENT • Increased assets under management by 13% to $181 billion in 2012 • Raised $3.6 billion in new third party
Slide 21: Appendix – Recent Growth Initiatives (cont'd)
Appendix – Recent Growth Initiatives (cont’d) 20 PROPERTY PLATFORM • Completed distribution of Brookfield Property Partners to BAM shareholders and listing of units on the NYSE and TSX – April 15, 2013 • Completed the acquisition of a majority interest (81%) in ~$870 million private industrial prope
Slide 22: Appendix – Major Institutional Investors
Appendix – Major Institutional Investors 21 Management and directors own/control ~20% of Brookfield, alongside other major institutional investors Major institutional investors with over 5 million Brookfield common shares1 RBC Asset Management William Blair & Company Pyramis/Fidelity Third Avenue Ma
Slide 23: Appendix – Our Investment Principles
Appendix – Our Investment Principles 22 BUSINESS PHILOSOPHY • Build our businesses and all relationships based on integrity • 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 • Treat our clients’
Slide 24: Appendix – BAM Affiliate Ownership (Dec. 31, 2012)
Appendix – BAM Affiliate Ownership (Dec. 31, 2012) 23 Shares Held Brookfield’s Asset Classes (millions) Ownership Interests5 PROPERTY Brookfield Property Partners1 438 93% Brookfield Office Properties 263 49% / 59%V2 General Growth Properties 235.6 22% RENEWABLE POWER Brookfield Renewable Energy Par
Slide 25: Investor Relations Contacts
Appendix 24 Investor Relations Contacts Contact Title E-Mail Address Phone Number Brian Lawson Chief Financial Officer [email protected] (416) 363-9491 Derek Gorgi Senior Vice President, Finance [email protected] (416) 359-8590 Katherine Vyse Senior Vice President, katherine.vyse@
Brookfield Asset Management — Investor Presentation (April 2013) on 6ix