Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Scotia Financials Summit 2012
34 slides from Brookfield's conference presentation, Sep 6, 2012
Slide 1: Scotia Financials Summit | September 6, 2012
Brookfield Asset Management Inc. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Scotia Financials Summit | September 6, 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 global alternative asset manager PROPERTY RENEWABLE POWER INFRASTRUCTURE PRIVATE EQUITY Figuerora at Wilshire Aubrey, Hydro Facility Brookfield Rail Ainsworth Los Angeles Northern Ontario Australia Vancouver 2 | Brookfield Asset Management Inc.
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 $17 billion AUM United States $96 billion AUM South America $17 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 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% 27% Common Share Ticker: BAM The franchise is more valuable today and therefore we have even more potential to create value 5 | Brookfield Asset Management Inc.
Slide 7: Our Business Strategy is Simple
Our Business Strategy is Simple Increase fee bearing capital in listed and unlisted private fund strategies Strategy Invest capital on a value basis Utilize our operating platforms and expertise to optimize returns Objective Solid investment/operating returns and increasing asset management fees 6 |
Slide 8: Our clients have entrusted us with ~$50 billion in capital
Our clients have entrusted us with ∼$50 billion in capital Asset Class Investment Product Other Listed Issuers 2 $8 Private Private $17 $18 Funds Equity $18 Property Public $14 $11 $3 Securities $10 Infrastructure Renewable Power Listed Issuers1 1) Publicly listed entities that are externally manage
Slide 9: We have $32 billion of our capital that we invest alongside our clients
And we have $32 billion of our capital that we invest alongside our clients Corporate & Other $4.8 $7.7 Renewable Power Private Equity $4.5 $2.6 Infrastructure $12.1 Property 8 | Brookfield Asset Management Inc.
Slide 10: Differentiated as owner-operators of real assets
As an asset manager, we are differentiated as owner-operators of real assets Total Assets ($ billions) Commercial Property $ 88 Office, retail, opportunity, development and financial Renewable Power $ 18 Hydroelectric and wind facilities Infrastructure $ 20 Ports, rails, pipelines, transmission line
Slide 11: > 80 million sq. ft. of office properties
> 80 million sq. ft. of office properties World Financial Center, New York 10 | Brookfield Asset Management Inc.
Slide 12: ~165 million sq. ft. of retail malls
∼165 million sq. ft. of retail malls Ala Moana, Honolulu 11 | Brookfield Asset Management Inc.
Slide 13: ~170 hydroelectric power plants
∼170 hydroelectric power plants Gartshore, Quebec 12 | Brookfield Asset Management Inc.
Slide 14: 7 wind farms
7 wind farms Prince Wind Farm, Ontario 13 | Brookfield Asset Management Inc.
Slide 15: Utilities: Coal terminal, electricity transmission and energy distribution
Utilities: Coal terminal, electricity transmission and energy distribution Dalrymple Bay Coal Terminal, Australia 14 | Brookfield Asset Management Inc.
Slide 16: Transport & Energy: rails, ports, toll roads and energy distribution
Transport & Energy: rails, ports, toll roads and energy distribution/connections Brookfield Rail, Australia 15 | Brookfield Asset Management Inc.
Slide 17: ~3 million acres of timberlands
∼ 3 million acres of timberlands Longview Timberlands, Oregon 16 | Brookfield Asset Management Inc.
Slide 18: High quality real assets are in demand by institutional investors
High quality real assets are in demand by 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 bond yie
Slide 19: Providing access to assets through flagship public entities and private funds
Our strategy is to provide access to these assets to “partners” through flagship public entities and flagship private funds in each of our real asset platforms Brookfield (BAM) 28% 68% ~90% 100% Flagship Brookfield Brookfield Renewable Brookfield Brookfield Infrastructure Partners Energy Partners Pr
Slide 20: Broad range of public and private product offerings
We offer our clients a broad range of public and private product offerings within our areas of expertise to meet their needs Listed Managed Entities Private Funds Number 3 flagship listed entities1 27 established funds 3 niche funds 9 in marketing Total Market Cap / ∼ $28 billion1 ∼$25 billion Commi
Slide 21: Launch of Brookfield Property Partners
The final step in our strategy is the near term launch of our publicly listed, global flagship real estate company, Brookfield Property Partners • Partial spin-off to BAM shareholders, as a special dividend – like BIP in 2008 • Own and operate our income producing property businesses – which since 1
Slide 22: Initially, BPY will have interests in over 250 million sq. ft.
Initially, BPY will have interests in over 250 million sq. ft. of properties BROOKFIELD PROPERTY PARTNERS ∼$80 Billion AUM OFFICE RETAIL MULTIFAMILY & OPPORTUNITY $35 Billion AUM $38 Billion AUM INDUSTRIAL $5 Billion AUM $1 Billion AUM 127 Properties 178 Properties 83 million sq. ft. 163 million sq.
Slide 23: Significant benefits for Brookfield shareholders
Significant benefits for Brookfield shareholders Strong access to capital to fuel growth as listed entity We retain significant upside in the business Ongoing and growing management and incentive fees Enhanced profile as an asset manager Value recognition for commercial property assets 22 | Brookfie
Slide 24: Growth Opportunities
Growth Opportunities 23 | Brookfield Asset Management Inc.
Slide 25: We are well positioned for growth
We are well positioned for growth 1 Favourable environment 2 Global footprint 3 Momentum in private fund raising 4 Strong investment performance 5 Attractive investment opportunities Acquisitions Organic Growth Development 24 | Brookfield Asset Management Inc.
Slide 26: 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, interest rate and restructuring expertise currency markets are volatile • Deleveraging r
Slide 27: A Global Footprint
A Global Footprint • 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 • Access to a larger pool of international investors • Ability to meet the needs of our interna
Slide 28: Momentum in Private Fund Raising
Momentum in Private Fund Raising 9 funds in marketing with target of additional 3rd party capital of $4 billion Over 30 professional marketing funds to institutional investors globally Increasing recognition as leading asset manager 2012: #4 Alternative 2012: #1 Real Estate Asset Manager Investment
Slide 29: Strong Investment Performance
Strong Investment Performance Committed/Pledged Capital (2) (US$ millions) Vintage Gross IRR(1,3) PRIVATE FUNDS (1) Core Plus & Value Add Real Estate $ 5,421 2004-2011 12% Infrastructure $ 4,824 2006-2010 15% Timber $ 2,126 2005-2012 6% Bridge Lending $ 2,873 2003-2009 13% Opportunistic Real Estate
Slide 30: Attractive Investment Opportunities
Attractive Investment Opportunities • Assets being sold to achieve deleveraging (Europe & U.S.) Acquisitions • Opportunities to add value through operational improvements • Investments that benefit from favourable growth profile • Existing assets positioned to benefit from economic growth Organic Gr
Slide 31: ~$5 billion invested in growth opportunities in last several months
Attractive Investment Opportunities ~$5 billion invested in growth opportunities in last several months Where We See Opportunities Recent Investments South America • Acquiring in joint venture a 60% interest in 3,200 km Brazilian toll road Infrastructure • Agreed to acquire remaining 45% of Chilean
Slide 32: Bottom Line: Why Brookfield?
Bottom Line: Why Brookfield? 31 | Brookfield Asset Management Inc.
Slide 33: Well Positioned for Continued Growth
Well Positioned for Continued Growth • Substantial liquidity and access to capital • World class operating platforms with global footprint • Long life real assets with growing cash flows • Momentum in fund raising • Attractive investment opportunities • Interests aligned with clients and investors 3
Slide 34: Scotia Financials Summit | September 6, 2012
Brookfield Asset Management Inc. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Scotia Financials Summit | September 6, 2012
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