Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Shareholder Meeting (May 2012)
22 slides from Brookfield's shareholder meeting presentation, May 10, 2012
Slide 1: Annual & Special Meeting | May 10, 2012
Annual & Special Meeting | May 10, 2012 Global Alternative Manager in Real Assets | Property, Power, Infrastructure, Private Equity Nominees For Election By The Class A Shareholders M Marcel l Coutu C t Maureen K M Kempston t L Lance Liebman Li b J k Mi Jack Mintz t Darkes 2 | Brookfield Asset Manag
Slide 2: Nominees For Election By The Class A Shareholders
Nominees For Election By The Class A Shareholders Y Youssef fNNasr J James P Pattison tti Di Diana Taylor T l F Frank k McKenna M K 3 | Brookfield Asset Management Inc. Nominees For Election By The Class B Shareholders J kC Jack Cockwell k ll T Trevor Eyton E t B Bruce Fl Flatt tt J James G Gray 4 |
Slide 3: Nominees For Election By The Class B Shareholders
Nominees For Election By The Class B Shareholders R b tH Robert Harding di D id Kerr David K Phil Li Lind d G George Taylor T l 5 | Brookfield Asset Management Inc. Annual & Special Meeting | May 10, 2012 Global Alternative Manager in Real Assets | Property, Power, Infrastructure, Private Equity
Slide 4: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Note: This presentation contains forward-looking information within the meaning of Canadian provincial securities laws and other “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section
Slide 5: Our 2011 return was 14%
We have 100 offices across the globe with 500 investment professionals and 23,000 operating employees UK, Western Europe & Canada Middle East Asia & Australasia $23 billion AUM $5 billion AUM $16 billion AUM United States $90 billion AUM South America $18 billion AUM 9 | Brookfield Asset Management
Slide 6: We differentiate ourselves as owner-operators of real assets
Our Business Model is Simple Utilize our global reach to identify and acquire high quality real assets at favourable valuations Finance them on a long-term, low risk basis Enhance the cash flows and value of these assets through our leading operating platforms Expand client capital under management
Slide 7: 88 million sq. ft. of office properties
88 million sq. ft. of office properties World Financial Center, New York 13 | Brookfield Asset Management Inc. 165 million sq. ft. of retail malls Ala Moana, Honolulu 14 | Brookfield Asset Management Inc.
Slide 8: 170 hydroelectric power plants
170 hydroelectric power plants Gartshore, Quebec 15 | Brookfield Asset Management Inc. 7 wind farms Prince Wind Farm, Ontario 16 | Brookfield Asset Management Inc.
Slide 9: The largest metallurgical coal shipping facility in the world
The largest metallurgical coal shipping facility in the world 17 | Brookfield Asset Management Inc. 5,100 kilometres of rail tracks in Western Australia 18 | Brookfield Asset Management Inc.
Slide 10: 3 million acres of timber and agrilands
3 million acres of ttimber imber and agrilands 19 | Brookfield Asset Management Inc. And, high quality real assets are in demand by institutional investors Th offer They ff favourable f bl long-term, l t risk i k adjusted dj t d returns t generating cash and capital returns, with lower volatility, a
Slide 11: Our strategy is to provide access to these assets to partners
Our strategy is to provide access to these assets to “partners” through flagship public entities and private funds in each of our real asset platforms Brookfield (BAM) 28% 68% 90% 100% Public Brookfield Brookfield Renewable Brookfield Brookfield Infrastructure Partners Energy Partners Property Partn
Slide 12: Initially, BPY will have interests in over 250 million sq. ft. of properties
Initially, BPY will have interests in over 250 million sq. ft. of properties BROOKFIELD PROPERTY PARTNERS $72 Billion AUM OFFICE RETAIL MULTIFAMILY & OPPORTUNITY $35 Billion AUM $33 Billion AUM INDUSTRIAL $3 Billion AUM $1 Billion AUM 126 Properties 184 Properties 82 million sq. ft. 163 million sq.
Slide 13: Value Creation
Value Creation Value Creation Total Return = { + Funds from Operations Valuation Gains Objective +12% on a per share basis 26 | Brookfield Asset Management Inc.
Slide 14: Three Interconnected Parts of the Business
Three Interconnected Parts of the Business Intrinsic Value FFO ($ billions) to Brookfield 2011 Descriptions Manager $ 4 $ 0 25 0.25 • Client capital under management Principal Capital 30 1.36 • Brookfield capital invested alongside clients • Related services such as construction and Services 2 0.15
Slide 15: We continue to expand client base of leading global clients
We continue to expand client base of leading global clients Client Capital by Investor Type Other Private Pension 7% 9% Insurance 8% 53% Public Pension / Super-Annuation Financial 10% 13% Sovereign Wealth 29 | Brookfield Asset Management Inc. Our track record of strong investment performance for our
Slide 16: Where do we grow from here?
Where do we grow from here? Expanding Capital Higher Base Fees + + Favourable Fund Performance + = Carried Interest + Cash Flow Growth Incentive Distributions 31 | Brookfield Asset Management Inc. Where do we grow from here? Favourable Track Record + Reduced Competition + = Highly Scalable Strong Mo
Slide 17: Brookfield's Principal Capital
Brookfield’s Principal Capital $30 billion total1 Office Property 20% 28% Renewable Power Other Property 3% Retail Property 16% 16% Private Equity 9% 8% Infrastructure Corporate 1. Prior to corporate leverage 33 | Brookfield Asset Management Inc. $30 billion of net tangible asset value invested in o
Slide 18: Where do we grow from here?
Where do we grow from here? “Organic” Growth • Positioned to benefit from economic growth Existing • Real return = increasing cash flows Assets • Several businesses highly correlated to U.S. housing recovery 35 | Brookfield Asset Management Inc. Where do we grow from here? Acquisitions and Developme
Slide 19: We invested $8 billion in growth opportunities in 2011
We invested $8 billion in growth opportunities in 2011 37 | Brookfield Asset Management Inc. We have a multi-billion $ development pipeline Infrastructure ~$5 billion of projects Renewable Power 2,000 MW of hydro and wind developments Property ~9 million square feet 38 | Brookfield Asset Management
Slide 20: Q1 2012 Results
Q1 2012 Results US millions (except per share amounts) 2012 2011 Consolidated net income $ 720 $ 570 For Brookfield shareholders – Net income 416 278 – Funds from operations 283 231 Per Brookfield share – Total return $ 1.13 $ 0.69 – Net income 0.60 0.41 – Funds from operations 0.40 0.33 – Dividend
Slide 21: Well Positioned for Growth
Well Positioned for Growth 1) Substantial liquidity and access to capital 2) World class operating platforms with a global footprint 3) Long life real assets with growing cash flows 4) Momentum in fund raising 5) Att ti investment Attractive i t t opportunities t iti 6) Alignment with clients and in
Slide 22: Annual & Special Meeting | May 10, 2012
Annual & Special Meeting | May 10, 2012 Global Alternative Manager in Real Assets | Property, Power, Infrastructure, Private Equity
Brookfield Asset Management — Shareholder Meeting (May 2012) on 6ix