Brookfield Renewable Partners Lp · TSX:BEP.UN
Brookfield Renewable Partners Lp — Investor Presentation (November 2019)
18 slides from Brookfield Renewable Partners Lp's investor presentation, November 2019
Slide 1: Brookfield Renewable Corporation (“BEPC”)
Brookfield Renewable Corporation (“BEPC”) NOVEMBER 2019
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 2
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 LP NYSE: BEPC1 TSX: BEPC1 • For the majority of unitholders, the stock split is non-taxable • Fractional shares will not be issued, so inves
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 Fully exchangeable Dividends/distributions at any time BEP BEPC (LIMITED PARTNERSHIP) (CANADIAN CORPORATION) Brookfield Renewable BEP LP units and BEPC shares are intended to be effectively economically equivalent 4
Slide 5: We see many benefits in establishing BEPC
We see many benefits in establishing BEPC Expanded investor base BEPC LISTED Broader index and ETF inclusion CORPORATION Tax advantages for some 5
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 tra
Slide 7: Benefits to establishing BEPC: broader index inclusion
Benefits to establishing BEPC: broader index inclusion Today, BEP LP’s most BEPC shares should be notable index eligible for inclusion into memberships include: additional indices and ETFs S&P/TSX Composite Index Russell Indices1 MSCI Indices1 1. Based on preliminary analysis, and subject to approva
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 Common dividend (certain investors) reporting slips Dividends are expected to be Annual Form 1099 (U.S.) eligible to be qualified for U.S. investors Annual Form T5 (Canada) “Eligible”
Slide 9: The market value of Brookfield Renewable will be unchanged
The market value of Brookfield Renewable will be unchanged PRE-SPLIT² POST-SPLIT Units/Share Market Cap Units/Shares Market Cap BEP LP 179 $ 7,727 179 $ 6,178 BEPC - - 78 2,692 RPUs & GP1 132 5,698 132 4,556 Total 311 $ 13,426 389 $ 13,426 BEPC will be created via an effective stock split with an in
Slide 10: 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 Minimal financial reporting implications 10
Slide 11: No impact to BEP’s financial statements and metrics
No impact to BEP’s financial statements and metrics • No change FFO • BEP LP through its control of BEPC will consolidate results going forward NAV • No change on combined basis Market Cap • No change on combined basis Dividends/Distributions • No change on combined basis Fees to BAM • No change on
Slide 12: 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 distribution will decrease, but since the aggregate number of units and BEPC shares outstanding increases proportionately, your aggregate distribution will be unchanged •
Slide 13: Tax Profile of Future Distributions
Tax Profile of Future Distributions BEP BEP BEP BEPC BEPC BEPC (U.S.) (Europe) (CAN) (U.S.) (Europe) (CAN) Investment income Composition Dividends only (interest, dividends, return of capital) Dividend Partially Partially Fully Fully Type N/A N/A Qualified¹ Eligible2 Qualified Eligible Tax Form K-1
Slide 14: Estimated Withholding Tax Distribution Profile: U.S. and European Investors
Estimated Withholding Tax Distribution Profile: U.S. and European Investors BEP BEPC Distribution % Withholding Dividend % Withholding Tax1 Tax1 Canadian Dividend 50% 15% 100% 15% Return of Capital 25% 0% - - (Canada or Bermuda) Bermuda Dividend 25% 0% - - Total 100% 7.5%2 100% 15% • Dividends from
Slide 15: Why are we not implementing a full conversion?
Why are we not implementing a full conversion? The continued existence of BEP LP alongside BEPC provides three key advantages: Allows us to issue May provide More cost-effective preferred units at a Canadian unitholders way to hold lower cost of capital with higher current investments in after-tax y
Slide 16: Is the BEPC float large enough?
Is the BEPC float large enough? • Estimated initial market float of $2.7 billion • Investment decisions into BEPC should take into account size of the whole organization ($13.4 billion market capitalization¹) • BEPC is expected to grow over time with: ‒ Follow-on equity issuances ‒ Potential for add
Slide 17: Expected BEPC Structure
Expected BEPC Structure BEP Public Brookfield Asset Management BEPC Public Investors Investors ~40% ~60%1 ~40% BEP Distribution BEPC Dividend Brookfield Renewable Partners (BEP) BEPC Brookfield Renewable Bermuda-based LP K-1/T-5013 issuer Dividend Corporation (BEPC) Canadian Corporation 1099/T5 issu
Slide 18: Notice to Recipients
Notice to Recipients All amounts are in U.S. dollars unless otherwise specified. Unless otherwise development of greenfield projects; delays, cost overruns and other problems complete information about the transaction. You may get these documents for indicated, the statistical and financial data in
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