Brookfield Renewable Partners LP · TSX:BEP.UN
Brookfield Renewable Partners LP — Investor Presentation (November 2021)
35 slides from Brookfield Renewable Partners LP's investor presentation, November 2021
Slide 1: Brookfield Renewable Corporate Profile November 2021
Brookfield Renewable C O R P O R AT E P R O F I L E NOVEMBER 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 clean energy supermajor, with integrated operating platforms on four continents with operating, development and power marketing expertise P O R T F OL I O 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:
Slide 4: Decarbonization will create an unparalleled commercial opportunity
Decarbonization will create an unparalleled commercial opportunity requiring $150+ trillion over the next three decades 4
Slide 5: 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 6: 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 131 Countries Companies 3067 3x 6x 992 21 Jan 2020 Jul 2021 Jan 2020 Jul 2021 $88T Emissions Covered by Financial Net Zero
Slide 7: We are at the beginning of a whole-economy transition
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 7
Slide 8: Clean energy and electrification are the first, largest and most impactful steps
Clean energy and electrification are the first, largest and most impactful steps ~75% of emissions are attributed to energy and power generation Global GHG Emissions 5% 3% Industrial Processes Waste 19% Agriculture, Forestry 73% & Land Use Energy and Power Generation 24% Energy in Industry 18% Energ
Slide 9: 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. 9
Slide 10: 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 11: 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 11
Slide 12: A global clean energy supermajor
A global clean energy supermajor • Global scale and reach Europe • Leadership in all major North 14,200 technologies America MW 23,700 MW • Leading operating Asia and development Pacific capabilities. 5,800 MW • Investment-grade South America balance sheet 12,500 MW • Best-in-class growth capabiliti
Slide 13: Leading platforms across all major technologies
Leading platforms across all major technologies Hydro Wind Solar Transition 8,000 MW 5,200 MW 2,600 MW 4,800 MW Operational Operational Operational Operational 2,600 MW 9,000 MW 19,300 MW 4,800 MW Development Development Development Development 13
Slide 14: We have delivered significant decarbonization
We have delivered significant decarbonization 21 GW 36 GW OPERATING ASSETS DEVELOPMENT ASSETS currently avoiding with the potential to avoid 28M tCO2e 39M tCO2e equivalent to equivalent to 100% 6 million 100% 7 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 2021 Distribution: $1.22 6% CAGR 18% BEP TOTAL RETURN 2001 Total Returns Distribution: $0.38 Alerian MLP Index: 9% S&P Utilities Index: 8% S&P 500 Index: 7% BEP AMZ S5UTIL SPX Tot
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 3,000 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% 13% 16% 19% 16% Growing 14-year Technologically 49% Global Average PPA Diversified1 Footprint1 16% term2 63% 22% 84% Hydro Wind Utility Solar Energy Transition North America Europe Latin America Asia Contracted Merchant 1. Figures based on normalized revenu
Slide 20: Underpinned by a strong balance sheet with ample liquidity
Underpinned by a strong balance sheet with ample liquidity BBB+ $3.3B Investment-grade Available balance sheet liquidity 20
Slide 21: We target annual equity deployment of $1–1.2 billion
We target annual equity 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 equity deployment of $1 – 1.2 billion over the
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: 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 25: Appendix I – Investment Spotlights
Appendix I – Investment Spotlights 25
Slide 26: 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 27: 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 28: 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 29: 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 30: Appendix II – Environmental, Social and Governance (ESG)
Appendix II – Environmental, Social and Governance (ESG) 30
Slide 31: 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 32: 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 $2.9 billion. Citing BEP's environmental stewardship, comm
Slide 33: Appendix III – Corporate Structure
Appendix III – Corporate Structure 33
Slide 34: 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 35: 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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