Brookfield Renewable Partners Lp · TSX:BEP.UN
Brookfield Renewable Partners Lp — IPO Roadshow (April 2020)
18 slides from Brookfield Renewable Partners Lp's IPO roadshow presentation, Apr 22, 2020
Slide 1: Brookfield Renewable Corporation (BEPC) April 2020
Brookfield Renewable Corporation (“BEPC”) April 2020
Slide 2: Giving investors flexibility to invest via the Partnership or a new Canadian corporation
We are giving investors the flexibility to invest in Brookfield Renewable either through the current Partnership or a newly-created Canadian corporation
Slide 3: BEPC will be a Canadian corporation, created via an effective stock split
BEPC will be a Canadian corporation, created via an effective stock split BEP LP unitholders will receive one (1) share of BEPC for every four (4) units of BEP NYSE: BEPC1 TSX: BEPC1 1) Subject to stock exchange and regulatory approvals. We expect the BEPC special distribution to close concurrently
Slide 4: BEPC shares are structured to be economically-equivalent to BEP units
BEPC shares are structured to be economically-equivalent to BEP units Identical Dividends/distributions Fully exchangeable at any time BEP (LIMITED PARTNERSHIP) Brookfield Renewable BEPC (CANADIAN CORPORATION) BEP LP units and BEPC shares are intended to be effectively economically equivalent
Slide 5: We see many benefits in establishing BEPC
We see many benefits in establishing BEPC Broader index and ETF inclusion Tax advantages for some Expanded investor base BEPC LISTED CORPORATION
Slide 6: Benefits to establishing BEPC: expanded investor base
Benefits to establishing BEPC: expanded investor base Opportunity to attract new investors that would not otherwise invest in limited partnerships due to tax reporting or other reasons BEPC is expected to expand our universe of potential investors U.S. retail investors Index funds / Exchange traded
Slide 7: Benefits to establishing BEPC: broader index inclusion
Benefits to establishing BEPC: broader index inclusion 1) Based on preliminary analysis, and subject to approval by index committees. Today, BEP’s most notable index memberships include: S&P/TSX Composite Index BEPC shares should be eligible for inclusion into additional indices and ETFs Russell Ind
Slide 8: Benefits to establishing BEPC: tax advantages for some investors
Benefits to establishing BEPC: tax advantages for some investors BEPC investors will receive: Higher after-tax yield (certain investors) Dividends are expected to be eligible to be qualified for U.S. non-corporate investors “Eligible dividends” for Canadian investors Common dividend reporting slips
Slide 9: BEPC expected to have minimal impact on Brookfield Renewable
BEPC expected to have minimal impact on Brookfield Renewable No incremental tax consequences No change in management oversight or governance No impact to credit ratings expected Immaterial administrative costs to maintain
Slide 10: No expected impact to BEP's financial statements and metrics
FFO No change BEP through its control of BEPC will consolidate results going forward NAV No change on combined basis Market Cap No expected change on combined basis Dividends/Distributions No change on combined basis Fees to BAM No change on combined basis No expected impact to BEP’s financial state
Slide 11: The value of your distributions will remain the same
The value of your distributions will remain the same The split is net neutral to distributions The per-unit value of each BEP unit distribution will decrease, but since the aggregate number of units and BEPC shares outstanding increases proportionately, your aggregate distribution will remain unchan
Slide 12: Tax Profile of Future Distributions
Tax Profile of Future Distributions Investors should consult with their tax advisors for personalized advice as individual circumstances vary For a U.S. resident unitholder, BEP’s estimated distribution is typically composed of qualified dividend income, ordinary dividend income and returns of capit
Slide 13: Estimated Withholding Tax Distribution Profile: U.S. and European Investors
Dividends from Canada are generally subject to Canadian withholding tax. For most taxable1 U.S. and European investors, such dividends are withheld at a rate of 15% We expect European and U.S. investors to be able to claim a foreign tax credit on their return, but this should be confirmed with an in
Slide 14: Why are we not implementing a full conversion?
Why are we not implementing a full conversion? The continued existence of BEP alongside BEPC provides three key advantages: May provide certain unitholders with higher current after-tax yields More cost-effective way to hold investments in certain jurisdictions Allows us to issue preferred units at
Slide 15: TerraForm Power Transaction
TerraForm Power Transaction In March, Brookfield Renewable and TERP entered into a definitive agreement for BEP and BEPC to acquire all the outstanding shares TERP, other than the 62% currently owned by Brookfield Renewable and its affiliates (the “TERP acquisition”) Each share of TERP not owned by
Slide 16: BEPC's initial market capitalization is expected to exceed $4 billion
BEPC’s initial market capitalization is expected to exceed $4 billion3 1) Redeemable Partnership Units held by Brookfield Asset Management as of December 31, 2019. 2) Figures calculated based on NYSE unit price of $42.90 at March 13, 2020. 3) Assumes TERP transaction is completed and all TERP shareh
Slide 17: BEPC Structure
BEPC Structure2 Brookfield Renewable Corporation (BEPC) Brookfield Renewable Partners L.P. (BEP) Bermuda-based LP K-1/T-5013 issuer 75% of voting interest BEPC Public Investors BEPC Dividend Dividends Canadian Corporation 1099-DIV/T5 issuer BEP Public Investors BEP Distribution Dividends Operating A
Slide 18: Notice to Recipients
Notice to Recipients All amounts are in U.S. dollars unless otherwise specified. CAUTIONARY STATEMENT REGARDING FORWARD- LOOKING STATEMENTS AND INFORMATION This presentation contains forward-looking statements and information within the meaning of Canadian provincial securities laws and “forward-loo
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