Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Shareholder Meeting (April 2006)
20 slides from Brookfield's shareholder meeting presentation, Apr 28, 2006
Slide 1: Annual & Special Meeting – Class A Nominees
Annual & Special Meeting April 28, 2006 Nominees for Election by the Class A shareholders: Marcel Coutu William Dimma Lance Liebman Roy MacLaren 1
Slide 2: Nominees for Election by Class A and Class B Shareholders
Nominees for Election by the Class A shareholders: Wallace McCain Jack Mintz James Pattison George Taylor Nominees for Election by the Class B shareholders: James Blanchard James Gray Philip Lind Jack Cockwell 2
Slide 3: Nominees for Election by the Class B Shareholders
Nominees for Election by the Class B shareholders: Trevor Eyton David Kerr Robert Harding Bruce Flatt Annual & Special Meeting April 28, 2006 3
Slide 4: Management Presentation and Forward Looking Statement
Management Presentation Corporate Overview Katherine Vyse Asset Management Model Bruce Robertson Strategic Priorities and Q&A Bruce Flatt Forward Looking Statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Slide 5: Overview of Brookfield
Overview of Brookfield Brookfield Asset Management is focused on property, power and infrastructure assets totaling $50 billion under management Property $16 billion of property assets 5
Slide 6: Power, Timber and Infrastructure
Power 135 hydroelectric generating stations Timber and Infrastructure 2 million acres of timberlands 2,400 km of transmission 6
Slide 7: Build Shareholder Value
Specialty Funds Bridge Restructuring Real Estate Public Lending Finance Securities Key Performance Objective Build shareholder value 12% growth per share in cash flow long term 7
Slide 8: 2005 Review: Property Investments
2005 Review 15 Property Investments 16 million square feet 8
Slide 9: Power Investments and Timber Investments
Power Investments 15 hydroelectric facilities ● 820 megawatts Timber Investments 625,000 acres of timberlands ● Acadian Timber Fund 9
Slide 10: Specialty Funds and Cash Flow Per Share
Specialty Funds Added $18 billion of assets under management Cash Flow Per Share $3.28 $2.32 $2.14 $1.58 $1.37 2001 2002 2003 2004 2005 10
Slide 11: Cash Return on Equity and Long-Term Share Price Performance
Cash Return on Equity 21% 19% 20% Goal 18% 16% 13% 2001 2002 2003 2004 2005 Long-Term Share Price Performance Common Share Price Compound Growth* As of April, 2006 Years BAM S&P TSX 10 20% 10% 10% 20 16% 11% 9% * Includes dividends 11
Slide 12: Q1 2006 Review
Q1 2006 Review Cash flow from operations $307 M Cash flow per share $0.75 Net income $179 M Strategic Focus Build on asset management platform to establish Brookfield as “asset manager of choice” 12
Slide 13: Asset Management Model: Specialized Fund Strategy
Asset Management Model 25 Specialized Fund Strategy Infrastructure Assets Specialized Funds Long term, Management and sustainable performance fees cash flows 13
Slide 14: Asset Characteristics and Positive Market Drivers
Asset Characteristics Sustainable cash flow Minimal ongoing capex Value appreciation Barriers to entry Premium pricing Positive Market Drivers Continued “low” interest rates Institutions seeking yield Fixed income alternatives 14
Slide 15: Competitive Advantages and Methods of Fund Growth
Competitive Advantages Operating expertise Capital commitment Track record Prompt decision making Methods of Fund Growth Examples 1. Seed with existing assets Acadian Timber Core Canadian Office Fund 2. Single purpose fund Island Timberlands 3. Committed capital Real Estate Finance Fund 15
Slide 16: Benefits to Brookfield and Selected Clients
Benefits to Brookfield Leverages operational expertise Capital for larger transactions Reduces risk Predictable cash flows Enhances shareholder returns Selected Clients Arca Investments Colorado PERS Australian Post GE Capital BC Investment Management General Motors Canada Pension Plan Board Norges
Slide 17: Increasing Fund Fee Stream
Increasing Fund Fee Stream Fee Revenues $282 M $ Millions $199 M $131 M 2003 2004 2005 Strategic Priorities 34 17
Slide 18: Strategic Priorities and Challenges Ahead
Strategic Priorities Expand operating platforms Invest cash resources Seed funds with existing assets Maintain balance sheet flexibility Become “Asset Manager of Choice” Challenges Ahead Demand for high quality assets Risks of larger transactions Maintaining competitive advantages 18
Slide 19: Growth Opportunities and Summary
Growth Opportunities Organic growth Acquisitions Developments Expanded geographic scope Corporate initiatives Summary Expanding network of institutional investors Strong operating platform in key industry sectors Asset classes favored by institutional investors Track record of acquiring quality asse
Slide 20: Q&A
Annual & Special Meeting April 28, 2006 Q&A Annual & Special Meeting April 28, 2006 20
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