Brookfield Renewable Partners LP · TSX:BEP.UN
Brookfield Renewable Partners LP — Investor Presentation (September 2020)
35 slides from Brookfield Renewable Partners LP's investor presentation, September 2020
Slide 1: Brookfield Renewable Partners (BEP) Corporate Profile
Brookfield Renewable Partners (BEP) C O R P O R AT E P R O F I L E SEPTEMBER 2020
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: Table of Contents
Table of Contents Who We Are Page 4 Portfolio Overview Page 17 Growth Page 22 Financial Profile Page 26 Appendix Page 30 3
Slide 4: Who We Are
Brookfield Who We Are
Slide 5: Global Leader in Decarbonization
Global Leader in Decarbonization We have integrated operating platforms on four continents with operating, development and power marketing expertise EUROPE 4,100 megawatts $11 Billion in total power assets NORTH AMERICA 9,400 megawatts ASIA 1,000 megawatts $29 Billion in total power assets $1 Billio
Slide 6: Complementary Portfolio of High-Quality Assets
Complementary Portfolio of High-Quality Assets Uniquely complementary asset base spread across five technologies Hydro Wind Solar DG Storage 7,900 MW 4,700 MW 2,600 MW 800 MW 2,700 MW Our portfolio has Our wind assets are Diversified portfolio We own one of the Our pumped storage significant storage
Slide 7: Long Track-Record of Delivering Attractive, Risk-Adjusted Returns
Long Track-Record of Delivering Attractive, Risk-Adjusted Returns M AR K E T B R O O K F I E LD M AR K E T S Y M B O L C AP I TAL I Z AT I O N PAR T I C I PAT I O N NYSE: BEP, BEPC ~57% Equity Interest; GP ~$19B1 & Manager TSX: BEP.UN, BEPC CAPITALIZATION UNIT PERFORMANCE Credit Rating: S&P BBB+ Ann
Slide 8: Consistent Track Record of Strong Performance
We have a Consistent Track Record of Strong Performance BBB BBB+ $1.74 PER UNIT DISTRIBUTION 18% $1.00 BEP TOTAL PER UNIT RETURN DISTRIBUTION $0.57 PER UNIT DISTRIBUTION Total Returns S&P Utilities Index: 8% S&P 500 Index: 6% 2002 2014 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 9: Simple Strategy with Proven Track Record of Success Through Cycles
Simple Strategy with Proven Track Record of Success Through Cycles Acquire and develop high-quality assets and businesses that help decarbonize global electricity grids below intrinsic value Finance our businesses on an investment grade basis Optimize cash flows by applying our operating expertise t
Slide 10: Investment Highlights
Investment Highlights Attractive Multiple Levers to Sector Grow Cash Flows Strong ESG practices support global Proven and repeatable growth strategy decarbonization and create long-term combining a value investment approach value for stakeholders with operating expertise and capital discipline that
Slide 11: 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 12: The Global Opportunity For Renewable Investment is Growing
The Global Opportunity For Renewable Investment is Growing Driven by competitive cost structures and carbon reduction targets $10T $5T $2T INVESTMENT IN RANGE OF INVESTMENT OVER THE THE LAST NEXT DECADE 5 YEARS Source: Bloomberg New Energy Finance 12
Slide 13: Renewables are Now the Most Economic Sources of Bulk Power
Renewables are Now the Most Economic Sources of Bulk Power Levelized Cost of Energy $/MWh 140 Forecast 120 100 $/MWh 80 60 40 20 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Solar PV Solar OnshoreWind Onshore Wind Gas CCGT Source: Bloomberg New Energy Finance. 13
Slide 14: Strong Support for Decarbonization in Our Core Markets
Strong Support for Decarbonization in Our Core Markets NORTH AMERICA LATIN & EUROPE AMERICA • Growing carbon reduction and renewables • Economic growth driving electricity demand targets • Strong support for hydro • Declining subsidies and tax incentives for • Increasing build-out of solar and wind
Slide 15: 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 Accelerate the Maintain a social license to Operate with high ethical decarbonization of glob
Slide 16: Our Portfolio Helps Decarbonize the World
Our Portfolio Helps Decarbonize the World 28 MILLION tCO2e OF AVOIDED EMISSIONS, EQUIVALENT TO: 6 million 10 million 5 million 460 million nearly all vehicles tons of waste homes' trees planted of London, removed recycled electricity use England's from the instead of for one year emissions in road a
Slide 17: Portfolio Overview
Brookfield Portfolio Overview
Slide 18: Highest Quality Cash Flows in the Sector
We Have the Highest Quality Cash Flows in the Sector 7% 5% 27% Hydro Contracted Focused1 Cash Flows1 66% Cash flows are supported 95% by a strong contract Hydro Wind Solar Contracted Merchant profile and are well 6% diversified by technology 12% and geography Growing 15-year 30% Global 51% Average P
Slide 19: Diverse, Creditworthy Counterparties
Diverse, Creditworthy Counterparties Diverse high-quality customer base provides strong downside protection, safeguarding our cash flows Highly diversified customer base comprised of over 600 high-quality counterparties insulating our business Diverse Customer from single counterparty risk Base Our
Slide 20: We Simultaneously Grew and De-risked our Cash Flows
We Simultaneously Grew and De-risked our Cash Flows $0.87 ~$2.50+ FFO PER UNIT FFO PER UNIT 10%+ CAGR 3% 13% 7% 2% 10% 9% New York 16% 33% 3% New England 2010 5% 2020 7% 32% MISO 6% 5% 6% PJM 51% 4% 8% 13% Today a ~20% below LTA-hydrology year in any single market would have less than a 2% impact on
Slide 21: Diversified our Foreign Currency Exposure
…And Diversified our Foreign Currency Exposure 2010 FX Exposure 2020 FX Exposure Post-Hedging Post-Hedging Brazil 32% 25% Across multiple currencies Fully Fully Hedged Hedged 68% 75% In the event of a 10% depreciation in any single currency, we have only 1% FFO exposure 21
Slide 22: Growth
Brookfield Growth
Slide 23: Organic Cash Flow Growth
Organic Cash Flow Growth BEP is focused on delivering 5% to 9% distribution growth annually on a per unit basis from organic initiatives and fully funded by internally generated cash flows Expected Annual Lever FFO Growth Detail Inflation 1% to 2% ~40% of our revenues have embedded inflation Escalat
Slide 24: Robust Development Pipeline
Robust Development Pipeline Given our scale, diversity, and global nature, we are uniquely positioned to partner with governments and businesses to help them achieve their decarbonization goals • We have an 18,000 MW development pipeline diversified across multiple technologies and geographies, incl
Slide 25: Proven Track Record of Capital Deployment
Proven Track Record of Capital Deployment Deployed ~$4 billion of BEP equity since 2014 $billions $2.0 $1.5 $1.0 $0.5 $0.0 Hydro Wind Solar Other North America Latin America Europe Asia We have developed or acquired 14,000 MW of capacity across technologies and geographies 25
Slide 26: Financial Profile
Brookfield Financial Profile
Slide 27: Robust Balance Sheet
Robust Balance Sheet Profroma Debt BBB+ Maturity Ladder $billions, as at June 30,2020 INVESTMENT GRADE BALANCE SHEET $6.0 Highest rating in the sector with non-amortizing corporate debt fully supported by perpetual $5.0 hydro portfolio 10 YEARS $4.0 AVERAGE DEBT TERM TO MATURITY Well laddered debt p
Slide 28: Multiple Funding Levers
Access to Deep Pool of Capital Significant Liquidity Partner Capital We currently have ~$3.4 billion1 We have access to ~$5 billion of of available liquidity partner capital to invest alongside Multiple Funding Levers Diversified Access to Track Record of Capital Markets Capital Recycling We have ra
Slide 29: Key Takeaways
Key Takeaways ATTRACTIVE SECTOR STRATEGY Strong ESG practices support global Proven and repeatable strategy combining decarbonization and create long-term a value investment approach with value for stakeholders operating expertise and capital discipline that has delivered 18% to unitholders since in
Slide 30: Appendix
Brookfield Appendix
Slide 31: Indicative Corporate Structure
Indicative Corporate Structure Brookfield Asset Management (NYSE:BAM) BUSINESSES Real Estate Infrastructure Renewable Power Private Equity Credit4 Brookfield Brookfield Brookfield Brookfield Property Infrastructure Renewable Business Oaktree AFFILIATES1 Partners Partners Partners Partners (Private 6
Slide 32: Governance
Governance EXECUTIVE LEADERSHIP Sachin Shah Chief Executive Officer Wyatt Hartley Chief Financial Officer Jennifer Mazin General Counsel Ruth Kent Chief Operating Officer Brookfield Renewable has entered into a Master Services Agreement with Brookfield Asset Management • Provides comprehensive suite
Slide 33: Favorable Structure Relative to Master Limited Partnerships
Favorable Structure Relative to Master Limited Partnerships • Brookfield Renewable is a Bermuda-based publicly traded partnership that indirectly owns holding corporations in the U.S., Canada and other jurisdictions. Brookfield Renewable is not a U.S. MLP • Chart below shows a comparison of Brookfie
Slide 34: 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, BEP has issued four green bonds through project-level financings for an aggregate value of over $1.6 billion. Citing BEP's environmental
Slide 35: Notice to Recipients
Notice to Recipients Additional Information and Where to Find It This presentation is neither a solicitation of a proxy nor a substitute for any proxy statement or other filings that may be made with the SEC. Any solicitation will only be made through materials filed with the SEC. Nonetheless, this
Brookfield Renewable Partners — Investor Presentation (September 2020) on 6ix