Brookfield Renewable Partners LP · TSX:BEP.UN
Brookfield Renewable Partners LP — Investor Presentation (August 2021)
34 slides from Brookfield Renewable Partners LP's investor presentation, August 2021
Slide 1: Brookfield Renewable Corporate Profile
Brookfield Renewable C O R P O R AT E P R O F I L E AUGUST 2021
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 leader in decarbonization, with integrated operating platforms on four continents with operating, development and power marketing expertise M AR K E T S Y M B OL M AR K E T B R O O K F I E LD C AP I TAL I Z AT I O N PAR T I C I PAT I O N NYSE: BEP, BE
Slide 4: Decarbonization requires a whole economy transition
Decarbonization will require a whole economy transition and creates the greatest commercial opportunity of our time requiring $100+ trillion over the next three decades 4
Slide 5: Decarbonization Is a Global Goal
Decarbonization Is a Global Goal… 2020 saw increasing momentum 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 30% below 2005 le
Slide 6: Shared by All Key Stakeholders
…Shared by All Key Stakeholders We believe that changing consumer preferences and new climate policies are creating a significant commercial opportunity for experienced owner-operators • Nearly 130 governments have committed to net-zero targets GOVERNMENTS • Approximately 3,100 businesses have agree
Slide 7: Impacting All Industries
…Impacting All Industries ELECTRICITY TRANSPORTATION OIL, GAS AND COMMODITIES GRIDS ENERGY Renewables Electric vehicles, Green hydrogen Green steel and displacing coal batteries, storage and production and ammonia and gas charging carbon capture systems Electrification will drive the largest decarbo
Slide 8: Over 70% of emissions from power and energy sector
Over 70% of global greenhouse gas emissions can be traced back to the power generation and energy sector 8
Slide 9: $100+ Trillion Investment Opportunity To Decarbonize Energy Systems
$100+ Trillion Investment Opportunity To Decarbonize Energy Systems $3.5T $300B HISTORICAL PROJECTED Annual Investment Annual Investment in Renewable Power to Support Decarbonization Generation of Energy Systems Over the Next 30 Years Upscaling renewables remains critical to energy transition and mu
Slide 10: 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 10
Slide 11: Built Scale Across Continents with ~20 GW of Operating Assets
Built Scale Across 4 Continents with ~20 GW of Operating Assets Hydro Wind Solar Storage/Other EUROPE Distributed 3,600 MW Generation NORTH AMERICA 10,200 MW ASIA 1,200 MW SOUTH AMERICA 5,400 MW 11
Slide 12: Diverse Development Pipeline of ~31 GW
…And Established a Diverse Development Pipeline of ~31 GW EUROPE CANADA 9,000 MW 1,600 MW UNITED STATES ASIA-PACIFIC 9,300 MW 4,500 MW SOUTH AMERICA 7,100 MW 12
Slide 13: We Have Delivered Decarbonization and Energy Solutions for Years
… We Have Delivered Decarbonization and Energy Solutions for Years We have been investing for multiple decades in the acquisition, operations and development of clean energy and are increasingly focused on energy transition and decarbonization investments 2015 1980s Renewable Power Generation Energy
Slide 14: A Global Leader in Decarbonization
A Global Leader in Decarbonization 20 GW 31 GW OPERATING ASSETS DEVELOPMENT ASSETS currently avoiding with the potential to avoid 28M tCO2e 35M tCO2e equivalent to equivalent to 100% 6 million 100% 6 million of London’s vehicles of Houston’s homes’ annual removed from annual electricity use emission
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:
Slide 16: 20+ Year Track Record
20+ Year Track Record… …Of delivering growing distributions and long-term value for unitholders Annualized Total Return Since (As at Aug. 24, 2021) 5-Year Inception BEP (NYSE)1 26% 19% BEP (TSX)1 26% 18% S&P 500 Index1 18% 7% S&P 500 ESG Index1 17% 13% S&P Utilities Index1 10% 8% S&P/TSX Composite I
Slide 17: Our Strategy is Simple and Repeatable
Our Strategy is Simple and Repeatable Consistently leverage our global scale, reach and global operating and development capabilities to generate attractive long-term risk-adjusted returns 1 Invest or develop on a value basis 12–15% Returns 3 on Invested Capital 2 Monetize Optimize mature cash asset
Slide 18: Diverse High-Quality Cash Flows
Diverse High-Quality Cash Flows 11% 2% 15% 21% 15% Growing 14-year Technologically Global 50% Average PPA Diversified1 Footprint1 60% term2 17% 24% 85% Hydro Wind Utility Solar Energy Transition North America Europe Latin America Asia Contracted Merchant 1. Figures based on normalized revenue for th
Slide 19: Robust Balance Sheet
Robust Balance Sheet DEBT MATURITY LADDER BBB+ US$ Billions as at June 30, 2021 INVESTMENT GRADE BALANCE SHEET $5.0 $3.3 Billion $4.0 AVAILABLE LIQUIDITY With $9 Billion partner capital to invest along side $3.0 97%1 $2.0 FIXED RATE FINANCINGS Minimal exposure to rising interest rates $1.0 90% $
Slide 20: Supported by Deep Operational Expertise
Supported by Deep Operational Expertise Differentiated operating, development, commercial and business transformation capabilities are critical in driving value in our investments 3,000 140+ 6,000 5 24x7 OPERATING POW ER RENEW ABLE CENTRALIZED RENEW ABLE EMPLOYEES IN 21 MARKETING GENERATING CONTROL
Slide 21: With Multiple Levers for Cash Flow Growth
With Multiple Levers for Cash Flow Growth FFO PER-SHARE GROWTH Up to 9% 3–5% 10%+ 2–4% CAGR 1–2% 2010 2020 Inflation Margin Development M&A Growth 2 2025 Escalation Enhancement Pipeline 1 1. Assumes $250 million to $350 million of equity is deployed per annum to build out 450 MW to 700 MW per annum
Slide 22: 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 Strongest investment grade balance sheet and a
Slide 23: Appendix I – Investment Spotlights
Appendix I – Investment Spotlights 23
Slide 24: Investment Spotlight: TerraForm Power Merger
Investment Spotlight TerraForm Power Merger TRANSACTION OVERVIEW • Acquired controlling interest in TerraForm Power, one of the largest owners of wind and solar globally, following the bankruptcy of its sponsor in 2016 • Merged the remaining interest into Brookfield Renewable on an all-stock basis i
Slide 25: Investment Spotlight: U.S. Distributed Generation
Investment Spotlight U.S. Distributed Generation TRANSACTION OVERVIEW • Acquired a distributed generation (DG) development platform ‒ 360 MW of operating distributed solar across nearly 600 sites throughout the U.S. ‒ 700 MW under development and a dedicated development and PPA origination team • Po
Slide 26: 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 27: Investment Spotlight: Janauba Solar
Investment Spotlight Janauba Solar TRANSACTION OVERVIEW • 1,200 MW advanced solar development in Brazil • One of the largest solar developments globally • Expected total equity to complete project of ~$200 million VALUE-ENHANCING THESIS • Requires both development and energy marketing capabilities t
Slide 28: Appendix II – Environmental, Social and Governance (ESG)
Appendix II – Environmental, Social and Governance (ESG) 28
Slide 29: 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 30: 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. Since 2017, Brookfield Renewable has issued six green bonds for an aggregate value of over $2.5 billion. Citing BEP's environmental stewardship, comm
Slide 31: Appendix III – Corporate Structure
Appendix III – Corporate Structure 31
Slide 32: Indicative Corporate Structure
Indicative Corporate Structure Brookfield Asset Management1 (NYSE:BAM) BUSINESSES Real Estate Infrastructure Renewable Power Private Equity Credit – Oaktree2 Brookfield Brookfield Brookfield Brookfield Property Infrastructure Renewable Business AFFILIATES1 Partners3 Partners/Corp Partners/Corp Partn
Slide 33: 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 34: 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
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