Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Merger or Acquisition (October 2009)
22 slides from Brookfield's merger presentation, October 2009
Slide 1: Brookfield's Proposed Investment in Babcock & Brown Infrastructure
Brookfield Asset Management Inc. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property, Renewable Power and Infrastructure Assets Brookfield’s Proposed Investment in Babcock & Brown Infrastructure Investor Presentation October 2009
Slide 2: Cautionary Note Regarding Forward-looking Information and Third-Party Information
Cautionary Note Regarding Forward-looking Information and Third-Party Information This presentation regarding Brookfield Asset Management’s (“Brookfield”) proposed investment in Babcock & Brown Infrastructure (“BBI”) contains forward-looking information within the meaning of Canadian provincial secu
Slide 3: Overview of the Transaction
Overview of the Transaction
Slide 4: The Opportunity
The Opportunity Brookfield Asset Management has agreed to sponsor the asset restructuring and recapitalization of Babcock & Brown Infrastructure (“BBI”) – US$8 billion infrastructure company listed on the ASX – Owner of premier transportation and utility assets primarily in Australia, UK, Europe and
Slide 5: The Transaction
The Transaction The comprehensive recapitalization is designed to reduce debt and appropriately position BBI in the current market environment. 1 A$625 million placement to Brookfield (35%1) A$1.5 billion Equity A$625 million placement to new and existing institutional investors (“Institutional Plac
Slide 6: Background to the Recapitalization
Background to the Recapitalization BBI is currently struggling with excessive leverage levels and significant near-term maturities BBI had A$8.9 billion in proportional debt, including A$1.2 billion in corporate level debt, and proportional debt leverage1 of 98%, as at June 30, 2009 Brookfield’s res
Slide 7: Summarized Impact of Recapitalization
Summarized Impact of Recapitalization As a result, BBI’s capitalization and financial profile will be significantly strengthened: – Proportional debt leverage1 of 68% (down from 98%) – Projected interest coverage of 2.2 times based on EBITDA – Elimination of all corporate debt obligations obligation
Slide 8: Timeline For Transaction Close
Timeline For Transaction Close 8 October Mid-to-late Late November The US$1.8 Billion November Prime Recapitalization and BBI securityholder Infrastructure Restructuring of BBI meetings to approve expected to begin is announced Recapitalization trading on ASX Closing is subject to satisfaction of a
Slide 9: Summary of Brookfield Investment
Summary of Brookfield Investment Interest Approx. Investment by Approx Asset Description (%) Brookfield BBI Australian-based publicly traded 35%-40%1 US$635 million (to be renamed Infrastructure Fund Prime Infrastructure)) DBCT World-class coal terminal ~50%2 US$265 million PD Ports UK landlord port
Slide 10: Overview of Assets Under Management
Overview of Assets Under Management PD Ports* Euroports DBCT* Teesport is the Portfolio of third largest port concession port by tonnage in the businesses in UK and largest in strategic One of the northeast European world’s largest England locations coal export IEG t terminals i l WestNet Rail Power
Slide 11: Diversified Portfolio of High Quality Assets
Diversified Portfolio of High Quality Assets1 P fil by Profile b Asset A t P fil by Profile b Sector S t P fil by Profile b Geography G h CSC** 2% AET&D** DBCT* Energy PD Ports* 22% Europe 17% Infra. 6% 20% 21% Tas Gas Transport WNR Aus/NZ 1% 46% North IEG 10% 57% Utilities America 6% 33% 23% NGPL P
Slide 12: Stable Cash Flow and Growth Post Recap
Stable Cash Flow and Growth Post Recap Stable & Predictable Cash Flow Opportunities for Growth Ownership NGPL Diversity of high creditworthy customers, with top 10 customers Geographic proximity to emerging shale gas basin provides BBI (Prime): making up over 60% of the transmission and storage reve
Slide 13: Brookfield's Growing Infrastructure Asset Base
Brookfield’s Growing Infrastructure Asset Base Transforms Brookfield’s infrastructure platform and positions it as one of the leading infrastructure asset managers Assets Under Management Current Brookfield Profile1 Pro Forma Brookfield + BBI Advisory Infrastructure Advisory Infrastructure Services
Slide 14: Appendix – Asset Investments
Appendix – Asset Investments
Slide 15: Dalrymple Bay Coal Terminal (DBCT)
Dalrymple Bay Coal Terminal (DBCT) Asset Description Location Description: DBCT is one of the world’s largest export coal terminal through which metallurgical and thermal coal mined in the Bowen Basin region g of Queensland, Australia is exported to China and elsewhere. Location: Queensland, Austral
Slide 16: PD Ports (PDP)
PD Ports (PDP) Asset Description Locations Description: PDP owns and operates the Port of Tees and Hartlepool (“Teesport”) which is the UK’s 3rd largest port by tonnage. PDP’s business also includes the operation of Port (SHA) a number of other ports (including a container terminal at Port operator
Slide 17: Natural Gas Pipeline Company of America (NGPL)
Natural Gas Pipeline Company of America (NGPL) Asset Description Locations Description: NGPL is one of the largest natural gas transmission pipeline and storage systems in the U.S., with over 15,600 kilometres and delivers ~2.2Tcf of natural gas to end users per annum. NGPL’s system provides peak da
Slide 18: WestNet Rail (WNR)
WestNet Rail (WNR) Asset Description Locations Description: WNR is a rail infrastructure owner and rail access provider in Western Australia (WA) and is a critical transport link in the region. WNR has a 49-year rail lease (commenced in 2000) from the WA Government. WNR maintains and operates the tr
Slide 19: Powerco
Powerco Overview of Powerco Powerco Revenue Sources Description: Powerco is New Zealand’s second largest electricity and Year ended June 30, 2009 gas distribution business with over 410,000 connections across a service area of over 39,000 square kilometres in Gas revenue New Zealand. Powerco’s busin
Slide 20: International Energy Group (IEG)
International Energy Group (IEG) Overview of IEG IEG Business Location Description: UK-based company that operates in two core business lines: – Independent I d d t Utility Utilit C Connections ti P Provider: id O Owns and operates “last mile” natural gas and electricity networks connecting consumer
Slide 21: Euroports
Euroports Overview Location of Port Assets Description: Euroports owns a large diversified portfolio of port concession businesses in key strategic locations in Europe and China, handling over 50 different types of products. Locations: Europe (17) and China (1) Proposed BBI (Prime Infrastructure): 6
Slide 22: Tasmanian Gas Network (Tas Gas)
Tasmanian Gas Network (Tas Gas) Overview Tasmanian Gas Network Locations Description: Tas Gas comprises a natural gas retail business and 727 kilometres natural gas distribution network. Gas supplied by the sub sea Tasmanian Gas Pipeline. Location: Tasmania, Australia Proposed BBI (Prime Infrastruct
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