Slide 1: Corporate Profile May 2023
Brookfield Corporation C O R P O R AT E P R O F I L E M AY 2 0 2 3
Slide 2: Brookfield Corporation
Brookfield Corporation We own high-quality businesses that compound in value and generate strong risk-adjusted returns across market cycles 20-YEAR DISTRIBUTABLE TICKER1 EARNINGS3 RETURN2 (PER SHARE) BN 20% $3.25 • Targeting 20%+ annual earnings growth over the next five years, 15% over the long ter
Slide 3: Our Objective
Our Objective To deliver compound annual returns of 15%+ to shareholders over the long term Stable & Growing Strong Track Record of Conservatively Cash Flows Delivering Compound Financed Returns Generate annual free Maintain cash flow of Enhance returns by conservative $5 billion, growing at investi
Slide 4: Our Competitive Advantages
Our Competitive Advantages Our global presence, operating expertise and access to scale capital position us to thrive through market cycles Global offices Global Local Scale Reach Insights Capital 30+ 195K $135B Countries Operating Employees Capital 4
Slide 5: How We Create Value
How We Create Value We participate in increases in the free cash flow and capital appreciation of our businesses, and allocate the free cash flows we receive to enhance value Our Businesses Capital Allocation • Asset Management • Allocate excess cash flow • Insurance Solutions • Recycle capital • Op
Slide 6: Our Businesses
Brookfield Our Businesses
Slide 7: Business Overview
Business Overview BROOKFIELD CORPORATION (“BN”) $135B+ Capital Asset Insurance Operating Management Solutions Businesses $83B $8B $45B Leading global alternative Global insurance Portfolio of global, scale asset management solutions business operating champions business Management fees Life & annuit
Slide 8: Business Plans Chart a Path to Annual DE Growth of 20% Through 2027
Our Business Plans for Our Existing Businesses Chart a Path to Annual DE Growth of 20% Through 2027 Distributable Earnings $9.3B 20% CAGR $4.7B $3.7B 20221 20232 2027 Operating Businesses Asset Management Insurance Solutions 1. 2022 Distributable Earnings are presented proforma the distribution of t
Slide 9: Our Asset Management Business
Our Asset Management Business A leading global alternative asset manager with over $825B of AUM and over $400B of fee-bearing capital $83B Highlights Capital (75% of BAM + Carried Interest) • One of the largest global alternative investment businesses, with diversified offerings across Renewable Pow
Slide 10: Our Asset Management Business (cont'd)
Our Asset Management Business (cont’d) We invest in high-quality, essential assets and businesses that form the backbone of the global economy $834B Our Businesses by Fee-Bearing Capital Assets Under Management Renewable Power & Transition $53B Fee-Bearing Capital $432B Infrastructure $93B Operating
Slide 11: Our Asset Management Business (cont'd)
Our Asset Management Business (cont’d) What We Own • 75% of Brookfield Asset Management (BAM – NYSE/TSX) • All carried interest on funds raised through the end of Q2 2022; 33% of carry on funds raised thereafter • Principal investments in private funds managed by BAM How Value Is Created • Increase
Slide 12: Our Insurance Solutions Business
Our Insurance Solutions Business A leading provider of capital-based solutions to the insurance industry, offering a broad range of insurance products and services >$40B Highlights Investment Assets • Diverse and large-scale investment portfolio of over $40 billion • Low-risk insurance liabilities w
Slide 13: Our Insurance Solutions Business (cont'd)
Our Insurance Solutions Business (cont’d) What We Own • Investment1 in Brookfield Reinsurance Ltd (BNRE – NYSE/TSX) How Value Is Created • Acquire long-duration and predictable insurance liabilities that come with flexible investment portfolios • Proactively manage risk and cost of insurance liabili
Slide 14: Our Operating Businesses
Our Operating Businesses One of the largest pools of alternative assets invested in four global operating businesses Highlights 4 Global Champions • Own and operate a portfolio of irreplaceable real assets that help form the backbone of the global economy across Renewable Power & Transition, Infrast
Slide 15: Our Operating Businesses: What We Own
Our Operating Businesses: What We Own Four market-leading operating businesses with ~$45 billion of our capital invested across a portfolio of core inflation-linked real assets Renewable Power Infrastructure Private Equity Real Estate & Transition (“BIP” – NYSE/TSX) (“BBU” – NYSE/TSX) (“BPG” – Priva
Slide 16: Our Operating Businesses (cont'd)
Our Operating Businesses (cont’d) How Value Is Created • Increase the cash income generated by our Operating Businesses and capital appreciation via: ‒ Operational improvements focused on maximizing efficiency and productivity, and executing value-creating development and capital projects ‒ Discipli
Slide 17: Capital Allocation
Brookfield Capital Allocation
Slide 18: Our Businesses Should Generate Significant Free Cash Flow
Our Businesses Should Generate Significant Free Cash Flow If we achieve our plan, we expect to generate ~$35 billion of free cash flow over the next five years Projected Free Cash Flow 2022–27 $35B Operating Businesses Asset Management Insurance Solutions 18
Slide 19: Capital Recycling
Capital Recycling We plan to recycle $10 billion+ of capital over the next 10 years from our real estate business into the broader franchise Core Residential Other MANHATTAN WEST, NEW YORK FIFTH + BROADWAY, NASHVILLE $15B $3B $7B Capital Capital Capital Hold Monetize (Natural fit for our Insurance M
Slide 20: Capital Allocation
Capital Allocation Our focus is on allocating the free cash flows we receive and executing on capital recycling to sustain long-term growth and returns We allocate free cash flow to create value in many ways: Invest in/alongside our Asset Management business Further scale our Insurance Solutions bus
Slide 21: Capital Allocation Could Add Meaningfully to Five-Year DE Growth
Capital Allocation Could Add Meaningfully to Our Five-Year Growth in DE Distributable Earnings $1.8 28% $12.6B CAGR $9.3B 20% Impact of CAGR Capital Allocation Base Business Growth $4.7B $3.7B 20221 20232 2027 2027 Existing Businesses 1. 2022 Distributable Earnings are presented proforma the distrib
Slide 22: Capital Allocation: How Value is Created & Measured
Capital Allocation: How Value is Created & Measured How Value Is Created • Increasing cash dividends to BN shareholders • Accretive share buybacks • Supporting the growth of our businesses • New strategic investments • Special dividends to BN shareholders Key Performance Metrics • Increase in distri
Slide 23: Conservative capitalization and strong liquidity
Underpinned by a conservative capitalization and strong liquidity We plan to maintain our significant liquidity to be opportunistic in this environment and defend against downside risks Conservative Strong Corporate Investment Grade Capitalization Liquidity Corporate Rating ~$70B ~$5B A- $12B long-t
Slide 24: Key Takeaways
Key Takeaways We are well positioned to continue delivering 15%+ total returns for shareholders over the long term Our Businesses • Our existing businesses are poised to deliver 15%+ earnings growth over the long term ‒ Our Asset Management business is positioned for its next phase of step-change gr
Slide 25: Appendix A: Our Capital
Brookfield Appendix A: Our Capital
Slide 26: Our Capital
Our Capital Our $135B+ of capital generates ~$4bn of cashflow per year before gains AS AT MAR. 31, 2023 (BILLIONS) Capital Annualized Cash Flow Asset Management Business BAM (75% ownership) $ 40 $ 1.6 Target Carried Interest, net (10x multiple) 25 - Accumulated Unrealized Carried Interest, net 6 - D
Slide 27: Appendix B: Our Operating Businesses
Appendix B: Our Operating Businesses 27
Slide 28: Renewable Power & Transition
Renewable Power & Transition We own ~50% of Brookfield Renewable Partners (BEP), a global leader in decarbonization as one of the few global, publicly traded renewable energy vehicles • Best-in-class assets across all major technologies, including hydro, wind, solar and storage facilities in North A
Slide 29: Infrastructure
Infrastructure We own ~30% of Brookfield Infrastructure Partners (BIP), one of the world’s largest owners and operators of critical global infrastructure assets • One of the few pure-play, publicly traded global infrastructure vehicles • Own Premier utilities, midstream, transport and data operation
Slide 30: Private Equity
Private Equity We own 65% of Brookfield Business Partners (BBU), a leading private equity investor that owns and operates high-quality businesses globally • Business comprises Large-scale, market-leading providers of essential products and services, generating high-quality and resilient cash flows •
Slide 31: Real Estate
Real Estate We own 100% of Brookfield Properties Group (BPG), one of the world's largest owners and operators of iconic properties in the world’s most dynamic markets • Diversified global portfolio spanning multiple asset classes, including office, retail and single and multifamily residential • Est
Slide 32: Real Estate (cont'd)
Real Estate (cont’d) Our business consists of an irreplaceable ‘core’ portfolio of trophy mixed-use precincts in global gateway cities, and a ‘transitional and development’ portfolio designed to enhance returns Transitional and Development Residential Core Land Development Other MANHATTAN WEST, NEW
Slide 33: Cautionary Statement Regarding the Use of Non-IFRS Measures
Cautionary Statement Regarding the Use of Non-IFRS Measures This presentation contains references to financial measures that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include Distributable Earnings (as defined below), its com