Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Investor Presentation (November 2012)
24 slides from Brookfield's investor presentation, November 2012
Slide 1: Corporate Profile | November 2012
Brookfield Asset Management Inc. A GLOBAL ALTERNATIVE ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Corporate Profile | November 2012
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. Se
Slide 3: Brookfield is a Global Alternative Asset Manager
Brookfield is a Global Alternative Asset Manager AUM of > $150 billion Funded with: $51 billion of client capital $32 billion of Brookfield principal capital Focus on high quality, Real estate real return assets Renewable energy Infrastructure Multiple product Private funds offerings
Slide 4: Today: Leading Global Franchise
Today: Leading Global Franchise 100 offices or locations | Over 500 investment professionals | 23,000 operating employees Canada UK W UK, Western t E Europe & $24 billion AUM Middle East Asia & Australasia $5 billion AUM $18 billion AUM United States $105 billion AUM South America $17 billion billi
Slide 5: Business Strategy and Objective
Business Strategy and Objective Our objective is to deliver 12% - 15% compound annual growth in the underlying value of our business on a per share basis over long term Objective gy Strategy Increase fee bearing capital in listed and unlisted private fund strategies Strategy Invest capital on a valu
Slide 6: Emphasis on “Real” Assets: Best in Class Operating Platforms
Emphasis on “Real” Assets: Best in Class Operating Platforms As an alternative asset manager manager, we are differentiated by our history and expertise as owner- operators of real assets on behalf of our fund clients and shareholders Assets Under Platform Management Description 280 million square
Slide 7: Flagship Public Entities + Private Funds
Flagship Public Entities + Private Funds We invest client capital in these assets through flagship public entities and flagship private funds in each of our real asset platforms Brookfield (BAM) 28% 68% ~90% 100% Public Brookfield Brookfield Renewable Brookfield Brookfield Infrastructure Partners En
Slide 8: Why Brookfield?
Why Brookfield? • Real assets – a foundation for stable, long-term returns and capital protection • Global platform provides a wide array of growth prospects – organic, acquisitions and development pipeline • Growing base of clients with third party capital under management and enhanced reputation a
Slide 9: Client Capital Under Management – ~$51 Billion
Client Capital Under Management – ~$51 Billion INVESTED CLIENT CAPITAL UN-INVESTED CLIENT CAPITAL $51 billion $5 6 billion $5.6 Other Listed Entities2 $8.7 Infrastructure $16.7 Private Funds $1.8 & Power $2.9 Property Public $14.7 Securities Private Equity $0.9 $10.7 Listed Issuers1 & Lending 1) Pu
Slide 10: Downside Protection with Upside Potential
Downside Protection with Upside Potential As at September 30, 2012 BROOKFIELD’S PRINCIPAL CAPITAL (millions, except per share amounts) Total Per Share $32 billion 2,3 Invested Capital 1,2 $ 23,015 23 015 $ 36 36.40 40 Oh Other $4.8 Asset management franchise 4 4,250 $ 6.46 $7.7 Power Private Equity
Slide 11: Significant Growth Opportunities
Significant Growth Opportunities Internal Growth Rollover of existing leases/contracts at higher market rates Increased contribution from “short-term” businesses as economy recovers Acquisitions Additional assets in core platforms Complementary platforms and/or new geographic markets Client
Slide 12: Recent Growth Initiatives
Recent Growth Initiatives ASSET MANAGEMENT Increased client and invested capital by $4.3 billion or 19% since year end. Q3 includes: A first close on one private fund Final closes on two private funds - private equity and multi-residential strategies Generated significant increase in fee revenue
Slide 13: Recent Growth Initiatives cont’d
Recent Growth Initiatives cont’d INFRASTRUCTURE Acquired remaining 45% of our Chilean toll road (AVN) for ~$590 million with institutional partners Acquired Enwave, a Toronto based district energy system, in partnership with institutional investors that serves commercial customers downtown for ~$300
Slide 14: Differentiated as An Alternative Asset Manager
Differentiated as An Alternative Asset Manager • Well capitalized • Integrated best-in-class operating platforms with global reach to leverage in-house expertise, deal flow flow, resources and market intelligence • Broad product offering within our areas of expertise Listed Managed Entities Private
Slide 15: Track Record of Strong Investment Performance
Track Record of Strong Investment Performance Committed/Pledged Capital 2 Vintage Gross IRR1,3 PRIVATE FUNDS (US$ millions) Core Plus & Value Add Real Estate $ 5,593 2004-2011 13% Infrastructure $ 4,824 2006-2010 16% Timber $ 2,126 2005-2012 5% B id L Bridge Lending di $ 2 2,873 873 2003 2009 2003-2
Slide 16: Private Funds – Capital Committed and LP Profile
Private Funds – Capital Committed and LP Profile CLIENT CAPITAL BY INVESTOR TYPE2 117 Number of LP fund investors Other 3 $17 B4 Client capital committed to our private funds Private Pension 6% 9% ~30% Clients invested in multiple private funds Insurance 4% Financial 5% 7 Average number of commitmen
Slide 17: Flagship Listed Managed Entities – In Profile
Flagship Listed Managed Entities – In Profile Brookfield Infrastructure Brookfield Renewable Brookfield Property Partners (BIP) Energy Partners (BEP) Partners (BPY) 2 Strategic Focus Utilities, Transportation and Hydroelectric and Office, Retail, Multifamily & Industrial Energy gy Wind Facilities an
Slide 18: In Summary
In Summary Brookfield is very well positioned in this environment • Substantial liquidity q y and consistent access to capital p with expanding p g client capital p • Focus on long life, real assets with stable and growing cash flows • Wide array of attractive investment opportunities opportunities,
Slide 19: Additional Information
ADDITIONAL INFORMATION 18 | Brookfield Asset Management Inc.
Slide 20: Diversified Portfolio of Funds and Strategies
Diversified Portfolio of Funds and Strategies Seven private funds in marketing in 2012 / 2013 seeking a further $5 billion from third party investors Committed Capital Year Opportunistic and Committed Capital Year Core Plus and Value Add1 ($millions) Formed Private Equity1 ($millions) Formed U.S. Of
Slide 21: Embedded Growth in Recurring Fee Streams
Embedded Growth in Recurring Fee Streams Base Fees Carried Return PRIVATE FUNDS (bps) Interest Hurdles Core and Value Add 100 – 150 18% 9% Opportunistic and Private Equity 150 – 200 20% 11% Weighted Average 125 – 150 19% 10% Return Base Fees Annual Incentive Hurdles FLAGSHIP PUBLIC ENTITIES (b
Slide 22: Global Industry Recognition
Global Industry Recognition 2012 IREN 2012 Investment Managers Guide #1 Real Estate Investment Manager Towers Watson 2012 Top Global Alternative Investment Managers (by AUM): - #2 Real Estate Manager #4 Top 100 Ranking #7 Infrastructure Manager INREV/ANREV 2012 Second Largest Global Real Estate Fund
Slide 23: Major Shareholders
Major Shareholders Management and directors own/control 20% of Brookfield, alongside other major institutional investors Major institutional investors with over 5 million Brookfield common shares(1): RBC Asset Management Third Avenue Management Blackrock Invesco Trimark Ltd./Van Kampen TD Asset Man
Slide 24: 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 Lawson Chief Financial Officer [email protected] (416) 363-9491 Derek Gorgi Senior Vice President, Finance derek.gorgi@brookfie
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