Brookfield Renewable Partners LP · TSX:BEP.UN
Brookfield Renewable Partners LP — Investor Presentation (February 2022)
37 slides from Brookfield Renewable Partners LP's investor presentation, February 2022
Slide 1: Brookfield Renewable Corporate Profile February 2022
Brookfield Renewable C O R P O R AT E P R O F I L E FEBRUARY 2022
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation 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 amended, Section 2
Slide 3: Overview of Brookfield Renewable
Overview of Brookfield Renewable We are a global clean energy supermajor, with integrated operating platforms on four continents with operating, development and power marketing expertise PORTFOLIO S Y M BO L & B R O O K F I E LD M AR K E T C AP PAR T I C I PAT I O N Operational: ~21 GW NYSE: BEP, BE
Slide 4: A global clean energy supermajor
A global clean energy supermajor • Global scale and reach Europe • Leadership in all major North 21,700 technologies America MW 43,300 MW • Leading operating Asia and development Pacific capabilities 5,100 MW • Investment-grade South America balance sheet 12,600 MW • Best-in-class growth capabilitie
Slide 5: Leading platforms across all major technologies
Leading platforms across all major technologies Hydro Wind Solar Transition 8,100 MW 5,400 MW 2,600 MW 4,900 MW Operational Operational Operational Operational 2,600 MW 8,800 MW 34,800 MW 15,300 MW Development Development Development Development 5
Slide 6: Decarbonization will create an unparalleled commercial opportunity
Decarbonization will create an unparalleled commercial opportunity requiring $150+ trillion over the next three decades 6
Slide 7: Decarbonization is a global imperative
Decarbonization is a global imperative Momentum has increased among some of the largest carbon-emitting governments to adopt ambitious climate plans and targets U.K. committed to emissions reductions of Canada committed to reduce at least 68% below 1990 levels by 2030 emissions by 40-45% below 2005
Slide 8: Commitments to net zero are accelerating
Commitments to net zero are accelerating Changing consumer preferences and new climate policies are creating a significant commercial opportunity for experienced owner-operators 140 5230 Countries Companies 5x 7x 21 992 Jan 2020 Nov 2021 Jan 2020 Nov 2021 Emissions Covered by 90% $130T Financial Net
Slide 9: Beginning of a whole-economy transition impacting all sectors
We are at the beginning of a whole-economy transition impacting all sectors Electricity Transport Oil, gas and Commodities grids energy Renewables EV, batteries, Green hydrogen Green steel and displacing coal storage and and carbon ammonia and heavy fuels charging capture systems 9
Slide 10: Clean energy and electrification are the first, largest steps
Clean energy and electrification are the first, largest and most impactful steps ~76% of emissions are attributed to energy and power generation Global GHG Emissions 6% 3% Industrial Processes Waste 15% Agriculture, Forestry 76% & Land Use Energy and Power Generation 32% Energy from Electricity 6% E
Slide 11: Wind and solar offer actionable and economic solutions now
Wind and solar offer actionable and economic solutions now And will be even more compelling in the future 200 150 $ per MWh 100 50 0 2014 2021 2030 Solar PV Onshore Wind Gas Coal Post 2021 assumes $50/tonne carbon price. Source: Bloomberg New Energy Finance 11
Slide 12: Enormous investment is required
Enormous investment is required $3.5-5T $300B Historical Projected Annual Investment Annual Investment to Support in Renewable Power Decarbonization of Energy Generation Systems Over the Next 30 Years Source: IPCC, International Energy Agency (IEA), Global Financial Markets Association (GFMA), and B
Slide 13: Reducing CO2, an unprecedented commercial opportunity
Reducing CO2, an unprecedented commercial opportunity… …that will require significant capital and deep operational expertise Expertise in Clean Energy Deep Operating and Development Capabilities Global Reach Proven and Repeatable Growth Strategy Access to Capital and Strong Balance Sheet 13
Slide 14: We have delivered significant decarbonization
We have delivered significant decarbonization 21 GW 62 GW OPERATING ASSETS DEVELOPMENT ASSETS currently avoiding with the potential to avoid 29M tCO2e 48M tCO2e equivalent to equivalent to 100% 6 million 100% 9 million of London’s vehicles of New York homes’ annual removed from City’s electricity us
Slide 15: Across multiple industries
Across multiple industries Signed agreements with corporate offtakers across all major industries, including many of the largest counterparties by market capitalization in the world Utilities: Partnering on renewable transformations, clean energy conversions, and decarbonization Energy Companies: Pr
Slide 16: A 20 year+ track record of strong performance
A 20 year+ track record of strong performance… …and delivering growing distributions and long-term value for unitholders 2022 Distribution: $1.28 6% CAGR 17% BEP TOTAL RETURN 2001 Total Returns Distribution: $0.38 Alerian MLP Index: 9% S&P Utilities Index: 8% S&P 500 Index: 7% Total return assuming
Slide 17: We are differentiated
We are differentiated Using our competitive advantages to generate 12–15% returns Global Clean Energy Scale Reach Capabilities 17
Slide 18: Supported by deep development and operational expertise
Supported by deep development and operational expertise Multifaceted capabilities are critical to providing value-add solutions 3,200 Operating and Strong Global Five Centralized Equipment Development Employees Relationships with Control Centers Procurement Across 21 Offices Top-Tier OEMs Fully inte
Slide 19: We have diverse high-quality cash flows
We have diverse high-quality cash flows 2% 10% 13% 19% 15% Growing 15-year Technologically Global 50% Average PPA Diversified1 Footprint1 15% term2 64% 22% 90% Hydro Wind Utility Solar Energy Transition North America Europe Latin America Asia Contracted Merchant 1. Figures based on revenue adjusted
Slide 20: Strong balance sheet with ample liquidity
Underpinned by a strong balance sheet with ample liquidity BBB+ $4.1B Investment-grade Available balance sheet liquidity 20
Slide 21: Target annual capital deployment of $1–1.2 billion
We target annual capital deployment for the next five years at $1 – 1.2 billion 21
Slide 22: Diverse sources to fund growth over the next 5 years
With diverse sources to fund growth over the next 5 years ~$1,000M ~$1,000M Corporate Debt Preferred Units ~$1,500M Asset-Level Up-Financings $6B ~$300M ~$2,200M Retained Cash Flows Asset Sales Projected available pools of capital based on target annual capital deployment of $1 – 1.2 billion over th
Slide 23: Multiple levers to deliver 10%+ FFO per-unit growth
And multiple levers to deliver 10%+ FFO per-unit growth 10%+ FFO per- unit growth 1–2% 2–4% 3–5% Up to 9% Inflation Margin Development M&A Escalation Enhancement Pipeline Activities 2021 2026 23
Slide 24: We have secured 9 GW of development over the next three years
We have secured 9 GW of development over the next three years Upside potential from the balance of our 62 GW global development pipeline 3x 2x 2017 2018 2019 2020 2021 2022F 2023F 2024F Solar Wind Hydro Transition Capacity in gigawatts (cumulative since 2003) 24
Slide 25: Key Takeaways
Key Takeaways Leader in renewable energy and decarbonization technology Proven track record of growth across all major technologies Global platform with diverse development pipeline Deep customer relationships, focused on delivering compelling solutions Strong investment grade balance sheet and acce
Slide 26: Appendix I – Investment Spotlights
Appendix I – Investment Spotlights 26
Slide 27: Investment Spotlight: Urban Grid
Investment Spotlight Urban Grid TRANSACTION OVERVIEW • Leading utility-scale solar developer in the U.S. with a 20,000- megawatt development pipeline; 13,000 megawatts solar and 7,000 megawatts storage • Pipeline includes 2,000 megawatts of under construction or ready-to-build solar projects and an
Slide 28: Business Spotlight: Distributed Generation
Business Spotlight Distributed Generation OVERVIEW • Entered the distributed generation (“DG”) space in 2017 • Our global DG operating assets have grown to over 1,400 megawatts that are contracted under long-term contracts • Access to a high-quality 6,400-megawatt global development pipeline inclusi
Slide 29: Investment Spotlight: Shepherds Flat
Investment Spotlight Shepherds Flat TRANSACTION OVERVIEW • Acquired the Shepherds Flat wind farm, an 845 megawatt fully contracted wind generation facility located in Oregon • The project, which is fully contracted with a high-quality offtaker, is one of the largest onshore wind projects in the Unit
Slide 30: Capital Recycling Spotlight: Irish Wind
Capital Recycling Spotlight Irish Wind TRANSACTION OVERVIEW • Acquired in 2014 • Onshore wind portfolio consisted of operating and development assets VALUE-ENHANCING THESIS • Doubled operating capacity to 700 MW • Established 1 GW development pipeline • Built fully integrated platform in the region
Slide 31: Appendix II – Environmental, Social and Governance (ESG)
Appendix II – Environmental, Social and Governance (ESG) 31
Slide 32: Strong ESG Practices Create Long-Term Stakeholder Value
Strong ESG Practices Create Long-Term Stakeholder Value Maintaining a social license to operate is central to preserving capital, mitigating risk and creating long term value Environmental Social Governance • Leader in decarbonization with • Highest standards of health • ESG integrated into decision
Slide 33: Leader in Green Energy & Sustainability
Leader in Green Energy & Sustainability BEP is the largest member by market capitalization of the S&P/TSX Renewable Energy and Clean Technology Index Our group has also been significantly involved in green finance, with Brookfield Renewable having to date raised approximately $10 billion in corporat
Slide 34: Appendix III – Corporate Structure
Appendix III – Corporate Structure 34
Slide 35: Governance
Governance SENIOR MANAGEMENT TEAM Mark Carney Vice Chair Sachin Shah Vice Chair Connor Teskey Chief Executive Officer Wyatt Hartley Chief Financial Officer Jennifer Mazin General Counsel Ruth Kent Chief Operating Officer • Brookfield Renewable is a party to a Master Services Agreement with Brookfiel
Slide 36: Ability to Invest Through a Canadian Corporation
Ability to Invest Through a Canadian Corporation Brookfield Renewable Corporation (NYSE, TSX: BEPC), a subsidiary of BEP L.P., was created to offer an economically equivalent security to BEP L.P., but in the form of a more traditional corporate structure BEPC BEP • Distributions are identical in amo
Slide 37: Endnotes
Endnotes • FFO is a non-IFRS measure defined in “Part 9 – Presentation to Stakeholders and Performance Measurement” in the Management’s Discussion and Analysis in the 2021 Annual Report. For historical FFO, refer to “Part 4 – Financial Performance Review On Proportionate Information” in the Manageme
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