Brookfield Corporation · NYSE:BN
Brookfield — Shareholder Meeting (June 2022)
47 slides from Brookfield's shareholder meeting presentation, Jun 10, 2022
Slide 1: AGM Presentation
AGM Presentation Friday, June 10, 2022
Slide 2: Business of the Meeting
Business of the Meeting Frank McKenna, Chair of the Board 2
Slide 3: Agenda
Agenda Receiving the Consolidated Financial Statements Election of Directors Appointment of External Auditors Advisory Resolution on Approach to Executive Compensation Shareholder Proposal 3
Slide 4: Agenda
Agenda Receiving the Consolidated Financial Statements Election of Directors Appointment of External Auditors Advisory Resolution on Approach to Executive Compensation Shareholder Proposal 4
Slide 5: Nominees for Election by the Class A Shareholders
NOMINEES FOR ELECTION BY THE Class A Shareholders ELYSE ANGELA JANICE MAUREEN ALLAN BRALY FUKAKUSA KEMPSTON DARKES 5
Slide 6: Nominees for Election by the Class A Shareholders
NOMINEES FOR ELECTION BY THE Class A Shareholders HUTHAM NGEE HUAT DIANA FRANK OLAYAN SEEK TAYLOR MCKENNA 6
Slide 7: Nominees for Election by the Class B Shareholders
NOMINEES FOR ELECTION BY THE Class B Shareholders JEFFREY JACK MARCEL BRUCE BLIDNER COCKWELL COUTU FLATT 7
Slide 8: Nominees for Election by the Class B Shareholders
NOMINEES FOR ELECTION BY THE Class B Shareholders BRIAN HOWARD RAFAEL LORD LAWSON MARKS MIRANDA O’DONNELL 8
Slide 9: Agenda
Agenda Receiving the Consolidated Financial Statements Election of Directors cont’d Appointment of External Auditors Advisory Resolution on Approach to Executive Compensation Shareholder Proposal 9
Slide 10: Agenda
Agenda Receiving the Consolidated Financial Statements Election of Directors Appointment of External Auditors Advisory Resolution on Approach to Executive Compensation Shareholder Proposal 10
Slide 11: Agenda
Agenda Receiving the Consolidated Financial Statements Election of Directors Appointment of External Auditors Advisory Resolution on Approach to Executive Compensation Shareholder Proposal 11
Slide 12: Agenda
Agenda Receiving the Consolidated Financial Statements Election of Directors Appointment of External Auditors Advisory Resolution on Approach to Executive Compensation Shareholder Proposal 12
Slide 13: AGM Presentation
AGM Presentation Friday, June 10, 2022
Slide 14: Shareholder Presentation
Shareholder Presentation Nicholas Goodman, Chief Financial Officer 14
Slide 15: The Year in Review
Brookfield The Year in Review
Slide 16: Over the last year, we raised, invested and monetized
Over the last year, we… Raised Invested Monetized $71B $70B $37B of capital across of capital in high-quality through sales of our business investments globally mature assets Note: 1. For the last twelve months ended March 31, 2022. 16
Slide 17: Our fee-bearing capital continues to grow
Our fee-bearing capital continues to grow Q1 2021 Q1 2022 $319B $379B Fee-bearing capital increased by $60 billion or 19% over the last 12 months 1. See Notice to Recipients 17
Slide 18: We are on track to achieve our $100 billion flagship fundraising target
We are on track to achieve our $100 billion flagship fundraising target 18
Slide 19: Continue to grow our complementary product offering
And continue to grow our complementary product offering for both institutional and retail investors 19
Slide 20: We found many opportunities to deploy capital for value
We found many opportunities to deploy capital for value 20
Slide 21: Across a variety of geographies
Across a variety of geographies Renewable Power Infrastructure Private Equity & Transition Real Estate Inter Pipeline Modulaire Urban Grid alstria North America Europe & Asia Pacific North America Europe $4.5B $1.6B $650M $1.7B 21
Slide 22: Brookfield Reinsurance acquired American National Insurance
Brookfield Reinsurance acquired American National Insurance for $5.1 billion to build out our insurance business 22
Slide 23: Our Asset Management business is well-positioned for growth
Our Asset Management business is well-positioned for growth • Fee-bearing capital is continuously growing • Record levels of core liquidity • Strong monetization and capital recycling activity 23
Slide 24: Principal investments have continued to deliver strong returns
And our principal investments have continued to deliver strong compound annual returns • Generate annualized distributions of ~$3 billion • Provide downside protection and a steady source of cash flows • Further benefit from capital appreciation 24
Slide 25: Our cash flows continue to scale over time
Our cash flows continue to scale over time 5 years ago Today $2B $5B Note: 1. For the last twelve months ended March 31, 2018 and March 31, 2022. 25
Slide 26: Our liquidity is the strongest it has ever been
Our liquidity is the strongest it has ever been $30B $70B $100B Core liquidity Uncalled fund commitments Total liquidity Note: 1. Core liquidity has been adjusted pro-forma for the closing of American National and includes their cash, liquid investments and undrawn credit facilities. 2. Liquidity as
Slide 27: Liquidity continues to be bolstered
And continues to be bolstered through Fee-related Realized Disposition Distributions earnings carried interest gains 27
Slide 28: Looking Forward
Looking Forward 28
Slide 29: The interest rate environment is favorable for our business
The interest rate environment today is favorable for our business, and this will continue to be the case even with rising rates 29
Slide 30: One of the largest portfolios of inflation-protected assets
We own and manage one of the largest portfolios of cash generating inflation- protected assets in the world 30
Slide 31: Our operations have proven to be inflation protected
The characteristics of our operations have proven to be inflation protected Highly cash Essential products High-quality Conservative generative and service investments capital structure providers with inflation-linked contracts 31
Slide 32: Targeting to double the size and value of the business
We are targeting to double the size and value of the business over the next five years 32
Slide 33: Fee-bearing capital expected to more than double in five years
Fee-bearing capital is expected to more than double over the next five years1 $830B $379B $127B 5 Years Ago Today Target in 5 years 1. See Notice to Recipients 33
Slide 34: Principal investments positioned to grow and provide stable cash flows
And our principal investments are well positioned to continue to grow and provide stable cash flows $72 billion 14% IRR ~$3B ~$3B Over ~35 years Annual dividends Annual value appreciation 34
Slide 35: Distributable earnings should grow to $11 billion annually
If we achieve our plan, distributable earnings should grow to $11 billion annually AS AT JUNE 30 ($ billions) 20211 20262 Fee-related earnings $ 1.7 $ 3.2 Distributions from investments 2.0 4.1 Other costs (0.6) (0.5) Distributable earnings, before realizations 3.1 6.8 Realized carried interest, net
Slide 36: Broad sources of growth
Broad sources of growth • Deepening existing relationships • Originating new relationships • Expanding distribution channels • Developing new complementary investment strategies 36
Slide 37: Stronger client relationships position us well for fundraising
Stronger client relationships position us well for fundraising Average Commitments Across Top 25 LPs • We aim to double our average commitments across our top 25 LPs in the next five years 2x • Continued cross-selling represents a large untapped opportunity $4B • New fund offerings have been a $1B p
Slide 38: Development of new investment strategies and funds
Development of new investment strategies and funds Recently Released In Progress Transition Fund Infrastructure & PE Secondaries Special Investments Long-Dated PE Fund Real Estate Secondaries Global High-Yield Responsible Fund Technology Partners Hedge Solutions Wealth Hybrid/Semi-Liquid Credit Chan
Slide 39: Our ESG Principles are integrated into our investment process
Our ESG Principles are integrated into our investment process Mitigate the Ensure the Uphold strong Be good impact of our well-being and governance corporate operations on safety of practices citizens the environment employees 39
Slide 40: In summary
In summary • Our operating businesses are performing well and have demonstrated their resiliency • Our asset management franchise and client base continues to grow • We are well positioned to take advantage of the current and future environment • We have inflation protected assets that can perform e
Slide 41: Asset Management business will be listed with 25% distributed to shareholders
Our Asset Management business will be listed with 25% distributed to shareholders 41
Slide 42: The distribution will allow us to
The distribution will allow us to • Have a dedicated, decentralized management team with a singular focus • Provide optionality for growth Additional Details: • We do not expect any impacts to our corporate credit ratings • We expect to complete the distribution by the end of this year, on a tax-fre
Slide 43: In conclusion, we are focused on four things
In conclusion, we are focused on four things… • Maintaining sufficient liquidity across all parts of our business • Remaining disciplined when assessing investment opportunities • Deploying capital for value and delivering long-term returns to our investors • Setting ourselves up for long-term growt
Slide 44: Q&A
Q&A Brookfield
Slide 45: Thank You
Thank You Brookfield
Slide 46: Notice to Readers
Notice to Readers Brookfield is not making any offer or invitation of any kind by communication of this document to the recipient and under no circumstances is it to be construed as a prospectus or an advertisement. Except where otherwise indicated herein, the information provided herein is based on
Slide 47: Notice to Readers cont'd
Notice to Readers cont’d CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES This presentation contains references to financial metrics that are calculated and presented using methodologies other than in accordance with International Financial Reporting Standards (“IFRS”), as issued by the Inter