Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Investor Presentation (May 2012)
35 slides from Brookfield's investor presentation, May 2012
Slide 1: Brookfield Investor Presentation | May 2012
Brookfield Asset Management Inc. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Brookfield Investor Presentation | May 2012
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward-Looking Statements Note: This Presentation contains forward-looking information within the meaning of Canadian provincial securities laws and applicable regulations and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United St
Slide 3: Brookfield Today: $150 billion global alternative asset manager
Brookfield Today: $150 billion g global alternative asset manager g PROPERTY RENEWABLE POWER INFRASTRUCTURE PRIVATE EQUITY Figuerora att Wilshire Fi Wil hi Aubrey, A b H Hydro d F Facility ilit Brookfield B kfi ld R Railil Ainsworth Ai th Los Angeles Northern Ontario Australia Vancouver 2 | Brookfie
Slide 4: 100 offices across the globe, 500 investment professionals
100 offices across the globe 500 investment professionals and 23,000 operating employees UK, Western Europe & Canada Middle East Asia & Australasia $23 billion AUM $5 billion AUM $16 billion AUM United States $90 billion AUM $ South America $18 billion AUM 3 | Brookfield Asset Management Inc.
Slide 5: Our Primary Objective: 12%-15% compound annual growth
Our Primary Objective: 12% 15% compound annual growth in the underlying 12%-15% value of our business on a per share basis 2011: 14% 4 | Brookfield Asset Management Inc.
Slide 6: Track record of value creation for shareholders
Track record of value creation for shareholders: 20-Year 10-Year 3-Year 17% 20% 35% Common Share Ticker: BAM The franchise is more valuable todayy and therefore we have even more potential to create value 5 | Brookfield Asset Management Inc.
Slide 7: Our Business Model is Simple
Our Business Model is Simple Utilize our global reach to identify and acquire high quality real assets at favorable valuations Finance them on a long term, low risk basis Enhance the cash flows and value of these assets through our leading operating platforms to earn reliable reliable, attractive lo
Slide 8: We have a conservative capitalization, significant liquidity and access to multiple sources of capital
We have a conservative capitalization, significant liquidity and access to multiple sources of capital Significant Liquidity $4.2 billion $5.0 billion Core liquidity Un-invested client capital Conservative Debt Levels 15% 43% Corporate Proportionate Strong and Flexible $50 billion Debt financing is
Slide 9: As an asset manager, we are differentiated as owner-operators of real assets
As an asset manager, g , we are differentiated as owner-operators of real assets ($billions) Property $ 81 Office, retail, opportunity, development and financial Renewable Power $ 18 Hydroelectric and wind facilities Infrastructure $ 20 Ports, rails, pipelines, transmission lines, toll roads and tim
Slide 10: 85 million sq. ft. of office properties
85 million sq. ft. of office properties World Financial Center, New York 9 | Brookfield Asset Management Inc.
Slide 11: 165 million sq. ft. of retail malls
165 million sq. ft. of retail malls Ala Moana Moana, Honolulu 10 | Brookfield Asset Management Inc.
Slide 12: 170 hydroelectric power plants
170 hydroelectric power plants Gartshore Quebec Gartshore, 11 | Brookfield Asset Management Inc.
Slide 13: 7 wind farms
7 wind farms Prince Wind Farm, Ontario 12 | Brookfield Asset Management Inc.
Slide 14: Utilities: Coal terminal, electricity transmission and distribution
Utilities: Coal terminal, electricity transmission and d energy di distribution t ib ti Dalrymple Bay Coal Terminal, Australia 13 | Brookfield Asset Management Inc.
Slide 15: Transport & Energy: rails, ports, toll roads and energy distribution
Transport & Energy: rails, ports, toll roads and energy di t ib ti / distribution/connections ti Brookfield Rail, Australia 14 | Brookfield Asset Management Inc.
Slide 16: 3 million acres of timberlands
3 million acres of timberlands timberlands Longview Timberlands, Oregon 15 | Brookfield Asset Management Inc.
Slide 17: High quality real assets are in demand by institutional investors
High g qquality y real assets are in demand byy institutional investors Real Return. Yield Enhanced. Fixed Income Alternative Favourable, long term, risk adjusted returns generating cash and capital returns Lower volatility Inflation hedge attributes Institutions need to earn more than government bo
Slide 18: Our strategy is to provide access to these assets to partners through flagship public entities and private funds
Our strategy is to provide access to these assets to “ t “partners” ” through th h flagship fl hi public bli entities titi andd flflagship hi private i t funds in each of our real asset platforms Brookfield (BAM) 28% 68% 90% 100% Public Brookfield Brookfield Renewable Brookfield Brookfield Infrastru
Slide 19: The next step is the proposed launch of Brookfield Property Partners
The next step is the proposed launch of our publicly listed, global flagship company, Brookfield Property Partners • Like BIP in 2008, it is being created through the partial spin-off to BAM shareholders, as a special dividend • This business will own and operate our income producing property busine
Slide 20: Initially, BPY will have interests in over 250 million sq. ft. of properties
Initially, BPY will have interests in over 250 million illi sq. ft ft. off properties ti BROOKFIELD PROPERTY PARTNERS $72 Billion AUM OFFICE RETAIL MULTIFAMILY & OPPORTUNITY $35 Billion AUM $33 Billion AUM INDUSTRIAL $3 Billion AUM $1 Billion AUM 126 Properties 184 Properties 82 million illi sq. ft
Slide 21: Significant benefits for Brookfield shareholders
Significant benefits for Brookfield shareholders S Strong access to capital to fuel f growth as listed entity We retain significant g upside p in the business Ongoing and growing management and incentive fees Enhanced profile as an asset manager Value recognition for commercial property assets 20 |
Slide 22: Our clients have entrusted us with $47 billion in capital
Our clients have entrusted us with $47 billion in capital Asset Class Investment Product Other Listed Issuers 2 $8 Private Private $18 Funds $16 Property $16 Equity Public $14 $11 $3 Securities $9 Infrastructure Renewable Power Listed Issuers 1 1) Publicly listed entities that are externally manage
Slide 23: We have $32 billion of our capital that we invest alongside our clients
And we have $$32 billion of our capital p that we invest alongside our clients p Corporate & Other $7.8 Renewable Power $4.8 Pri ate Eq Private Equity it $4 6 $4.6 $2.6 $11.9 Property Infrastructure 22 | Brookfield Asset Management Inc.
Slide 24: Our Growth Story
Our Growth Story 23 | Brookfield Asset Management Inc.
Slide 25: An Environment That Favours Brookfield
An Environment That Favours Brookfield Macro Challenges Brookfield Opportunity • U.S. economy still shaky • Track record of investing through economic turmoil • Europe is unstable • Significant depth of • Stock Stock, interest rate and restructuring expertise currency markets are volatile • Delevera
Slide 26: A Global Footprint
A Global Footprint p • Ability to allocate capital to the business or location which offers best risk/reward • Indirect access to “emerging” growth markets • Never “forced” to invest where capital is plenty • A Access to t a larger l pooll off international i t ti l iinvestors t • Ability to meet th
Slide 27: Expanding client base of leading global institutional clients
Expanding p g client base of leading ggglobal institutional clients: 25% invested in multiple funds and strategies CLIENT CAPITAL BY INVESTOR TYPE (1) CLIENT CAPITAL BY GEOGRAPHY (1) Other2 Europe South America Private Pension 7% & Middle East 5% 9% 10% Public Australia Insurance 9% 8% 53% Pension
Slide 28: Continued Expansion in Private Funds
Continued Expansion p in Private Funds 8 funds u ds in marketing a et g with t target ta get cap capital ta raise a se o of $5 b billion o Over 30 professional marketing funds to institutional investors globally Increasing recognition as leading asset manager: 2012: #1 Real Estate Investment Manager
Slide 29: Track record of strong investment performance for our private funds
Track record of strong investment performance for our private funds Committed Capital (millions) Vintage Gross IRR1,2 Core Plus & Value-Add Real Estate $ 5 5,336 336 2004 – 2011 12% Infrastructure 4,824 2006 – 2010 16% Timber 2,126 2005 – 2012 6% Bridge Lending 3,384 2003 – 2011 14% Opportunistic Re
Slide 30: Attractive Investment Opportunities
Attractive Investment Opportunities $8 billion invested in growth opportunities in 2011 Where We See Opportunities Brookfield Investment Examples South America • Majority interest in 33 km toll road in Chile Infrastructure and Power • Electricity distribution utility in Colombia • 1h hydro d ffacili
Slide 31: Organic Growth
Organic” Growth • Positioned to benefit from economic growth Existing • Real return = increasing cash flows Assets • Several S lb businesses i hi highly hl correlated l t d tto U.S. housing recovery 30 | Brookfield Asset Management Inc.
Slide 32: We have a multi-billion $ development pipeline
We have a multi-billion $ development pipeline – global expansions & new development projects Infrastructure $5 billion project value for investments in: • utilities rate base • rail and ports expansions North America, Australia, Chile, UK Renewable Power 2,000 MW of early stage hydro and wind deve
Slide 33: Bottom Line: Why Brookfield?
Bottom Line: Why Brookfield? 32 | Brookfield Asset Management Inc.
Slide 34: Well Positioned for Growth
Well Positioned for Growth • Substantial liquidity and access to capital • World class operating platforms with global footprint • L Long lif life reall assets t with ith growing i cash h flflows • Momentum in fund raising • Attractive investment opportunities • Interests aligned with clients and in
Slide 35: Brookfield Investor Presentation | May 2012
Brookfield Asset Management Inc. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Brookfield Investor Presentation | May 2012
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