Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Bank of Montreal Luncheon Presentation 2006
34 slides from Brookfield's conference presentation, Sep 21, 2006
Slide 1: Bank of Montreal Luncheon Presentation
Bank of Montreal Luncheon Presentation September 21, 2006 Bruce Flatt, Chief Executive Officer Brian Lawson, Chief Financial Officer
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking information and other “forward looking statements”, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe,” “expect,” “an
Slide 3: Overview of Brookfield
Overview of Brookfield Brookfield is an asset manager focused on property, power and infrastructure assets with over $50 billion under management 3
Slide 4: Vision & Goal
Vision & Goal Vision To be a leading infrastructure asset manager Goal Enhance intrinsic value and increase cash flow per share by a compound 12-15% over the longer term 4
Slide 5: Current Assets Under Management
Current Assets Under Management $55 billion of assets under management Property Power Timber +$20 billion +$10 billion +$2 billion 70 million sq.ft. office 140 hydro power plants 2 million acres Transmission Infrastructure Specialty Funds Other Infrastructure +$3 billion +$24 billion +$2 billion 10,
Slide 6: Corporate Strategy
Corporate Strategy Build best in class operations to maximize values Expand sources of managed capital to enhance returns Seed funds with acquisitions and vend-ins Develop platforms in other sectors 6
Slide 7: Infrastructure Focus
Infrastructure Focus Sustainable and growing long-term cash flows Minimal sustaining capex requirements Value appreciation over time High barriers to entry Opportunities to capture price escalation 7
Slide 8: Benefits of Fund Model
Benefits of Fund Model Enhances returns through fee income Provides capital to pursue large scale transactions Reduces risk Generates predictable fee streams 8
Slide 9: Positive Market Drivers
Positive Market Drivers Continued “low” interest rates Institutions seeking yield Demand for fixed income alternatives 9
Slide 10: Our Competitive Advantages
Our Competitive Advantages Industry focus and operating expertise and platform Capital commitment Broad product offering Transparency 10
Slide 11: Recent Initiatives
Recent Initiatives Nearly $10 billion of assets under management added in the last 6 months US Core Office Fund Chilean Acadian Timber Brazilian Transmission Fund Income Fund Residential IPO Crystal River REIT Brazilian Retail Fund Real Estate Opportunity Fund 11
Slide 12: Selected Clients
Selected Clients Arca Investments Colorado PERS Australian Post GE Capital BC Investment Management General Motors Canada Pension Plan Board Norges Bank City of San Francisco Sun Life 12
Slide 13: Increasing Fund Fee Stream
Increasing Fund Fee Stream Fee Revenues $282 M $ Millions $199 M $131 M 2003 2004 2005 13
Slide 14: Operating Platform
Operating Platform Brookfield Asset Management Ni’ 14
Slide 15: Property
Property $20 billion of property assets 15
Slide 16: Property Highlights
Property Highlights 70 premier office properties, 55 million square feet Select, supply constrained markets with high barriers to entry High quality, diversified tenant base Long term lease profile limits market risk 16
Slide 17: Power
Power 140 hydroelectric generating stations ● 2 wind projects 17
Slide 18: Power Highlights
Power Highlights Low cost power production with no input costs Operational flexibility to optimize pricing Clean and environmentally preferred Long term revenue contracts 18
Slide 19: Timberlands
Timberlands 2 million acres of timberlands 19
Slide 20: Timberlands Highlights
Timberlands Highlights Renewable asset class Appreciates in value over time Generates long term sustainable cash flows Minimal ongoing capex 20
Slide 21: Transmission Infrastructure
Transmission Infrastructure 10,000 km of transmission lines 21
Slide 22: Transmission Infrastructure Highlights
Transmission Infrastructure Highlights Regulated rate base Stable and predictable cash flows Expected capacity upgrades provide further investment opportunities 22
Slide 23: Specialty Funds
Specialty Funds $24 billion of assets under management Bridge Lending Restructuring Real Estate Finance Public Securities 23
Slide 24: Investment Highlights
Investment Highlights Brookfield Asset Management Ni’ 24
Slide 25: Build shareholder value
Key Performance Objective Build shareholder value 12% - 15% growth per share in cash flow long term 25
Slide 26: Cash Flow Per Share
Cash Flow Per Share $2.19 $1.55 $1.43 $1.05 $0.91 2001 2002 2003 2004 2005 26
Slide 27: Cash Return on Equity
Cash Return on Equity 21% 19% 20% Goal 18% 16% 13% 2001 2002 2003 2004 2005 27
Slide 28: Strong Financial Position
Strong Financial Position Significant liquidity To fund growth Free cash flow $1 billion annually Strong and flexible Long term financing and permanent capitalization equity matched to long term assets Strong investment grade ratings 28
Slide 29: Strategic Priorities and Growth Opportunities
Strategic Priorities and Growth Opportunities 29 29
Slide 30: Strategic Priorities
Strategic Priorities Expand operating platforms Seed funds with new and existing assets Become leading infrastructure asset manager 30
Slide 31: Growth Opportunities
Growth Opportunities Organic growth Acquisitions Expanded geographic scope Expanded product scope 31
Slide 32: Summary
Summary Expanding network of institutional investors Strong operating platform in key industry sectors Asset classes favored by institutional investors Track record of acquiring quality assets for value Substantial annual free cash flow and liquidity 32
Slide 33: Q&A
Bank of Montreal Luncheon Presentation September 21, 2006 Q&A
Slide 34: Bank of Montreal Luncheon Presentation
Bank of Montreal Luncheon Presentation September 21, 2006 Bruce Flatt, Chief Executive Officer Brian Lawson, Chief Financial Officer
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