Brookfield Corporation · NYSE:BN
Brookfield — Shareholder Meeting (June 2023)
47 slides from Brookfield's shareholder meeting presentation, Jun 9, 2023
Slide 1: AGM Presentation
AGM Presentation BROOKFIELD CORPORATION FRIDAY, JUNE 9, 2023
Slide 2: Business of the Meeting
Business of the Meeting FRANK MCKENNA CHAIR OF THE BOARD 2
Slide 3: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 4: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 5: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 6: Nominees for Election by the Class A Shareholders
Nominees for Election by the Class A Shareholders ELYSE ANGELA JANICE MAUREEN ALLAN BRALY FUKAKUSA KEMPSTON DARKES 6
Slide 7: Nominees for Election by the Class A Shareholders
Nominees for Election by the Class A Shareholders HUTHAM DIANA FRANK OLAYAN TAYLOR MCKENNA 7
Slide 8: Nominees for Election by the Class B Shareholders
Nominees for Election by the Class B Shareholders JEFFREY JACK BRUCE BRIAN BLIDNER COCKWELL FLATT LAWSON 8
Slide 9: Nominees for Election by the Class B Shareholders
Nominees for Election by the Class B Shareholders HOWARD RAFAEL LORD MARKS MIRANDA O’DONNELL 9
Slide 10: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 11: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 12: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 13: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 14: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 15: Agenda
Agenda Receiving the Consolidated Resolution on Amendment to the 01 Financial Statements 06 Escrowed Stock Plan Resolution on Brookfield Special Resolution on Decrease 02 in Number of Directors 07 Reinsurance Ltd Restricted Stock Plan 03 Election of Directors 08 Shareholder Proposal 04 Appointment o
Slide 16: AGM Presentation
AGM Presentation BROOKFIELD CORPORATION FRIDAY, JUNE 9, 2023
Slide 17: Shareholder Presentation
Shareholder Presentation NICHOLAS GOODMAN PRESIDENT 17
Slide 18: Agenda
Agenda 01 Key Takeaways 02 Year in Review 03 Looking Forward 04 In Summary 18
Slide 19: 1. Key Takeaways
Brookfield 1. Key Takeaways
Slide 20: Key takeaways: targeting 20%+ annual earnings growth over five years
We continue to target 20%+ annual earnings growth over the next 5 years We are set up to sustain growth over the longer term, with the separate listing of our Manager creating added optionality Our Asset Management business is positioned for its next phase of step-change growth Our Insurance Solutio
Slide 21: 2. Year in Review
Brookfield 2. Year in Review
Slide 22: We had an excellent last 12 months…
We had an excellent last 12 months… Our manager raised ~$100 billion of capital We grew our insurance assets to ~$45 billion Our operating businesses grew earnings in aggregate by 25%, and same-store net operating income from our Real Estate business grew by 5% Generated ~$5 billion of distributable
Slide 23: Our Asset Management Business continues to perform well
Our Asset Management Business continues to perform well Record fundraising year with significant capital raised across our strategies Fee-bearing capital increased by 14% over the last twelve months to $432 billion and continues to grow at a robust pace Generated $3 billion of distributable earnings
Slide 24: We continue to scale our Insurance Solutions Business
We continue to scale our Insurance Solutions Business Redeployed $7 billion+ of our liquid, short-duration investment portfolio into higher yielding investments, with the portfolio now earning an average yield over 5% Generate $700 million of annualized distributable earnings today Integrated Americ
Slide 25: Our Operating Businesses continue to be resilient
Our Operating Businesses continue to be resilient We own one of the largest portfolios of cash generating inflation-protected assets in the world Generated $1.5 billion of distributable earnings supported by strong underlying earnings growth Further benefited from capital appreciation from the compo
Slide 26: Our distributable earnings continue to scale
Our distributable earnings continue to scale 5 years ago Today $2B $5B Note: Annualized distributable earnings before realizations plus disposition gains and realized carried interest, net as at and for the twelve months ended March 31, 2019 and March 31, 2023. 26
Slide 27: We completed the special distribution of our asset management business
We completed the special distribution of our asset management business in December last year 27
Slide 28: Returning a record $15 billion of capital to shareholders
Returning a record $15 billion of capital to shareholders over the past year Note: For the last twelve months ended March 31, 2023. 28
Slide 29: Our liquidity is very strong today
Our liquidity is very strong today $34B $79B $113B Core liquidity Uncalled fund Total liquidity commitments Note: Liquidity as of March 31, 2023. 29
Slide 30: 3. Looking Forward
Brookfield 3. Looking Forward
Slide 31: Perpetual capital base of over $135 billion across a diversified portfolio
We have a perpetual capital base of over $135 billion across a diversified portfolio of high-quality businesses Brookfield Corporation BROOKFIELD CORPORATION (“BN”) (“BN”) $135B+ Capital Asset Management Insurance Solutions Operating Businesses (BAM) (BNRE) (BEP/BIP/BBU/BPG) $83B $8B $45B Leading gl
Slide 32: Targeting to grow earnings of existing businesses by 20% per year
We are targeting to grow the earnings of our existing businesses by 20% per year over the next five years 32
Slide 33: Business Plans Chart a Path to Annual DE Growth of 20% Through 2027
Our Business Plans for Our Existing Businesses Chart a Path to Annual DE Growth of 20% Through 2027 Distributable Earnings $9.3B 20% CAGR $4.7B $3.7B 20221 20232 2027 Operating Businesses Asset Management Insurance Solutions 1. 2022 Distributable Earnings are presented proforma the distribution of t
Slide 34: Our Businesses Should Generate Significant Free Cash Flow
Our Businesses Should Generate Significant Free Cash Flow If we achieve our plan, we expect to generate ~$35 billion of free cash flow over the next five years Projected Free Cash Flow 2022–27 $35B Operating Businesses Asset Management Insurance Solutions 34
Slide 35: Capital Recycling
Capital Recycling In addition, we plan to recycle $10 billion+ of capital over the next 10 years from our real estate business into the broader franchise Core Residential Other MANHATTAN WEST, NEW YORK FIFTH + BROADWAY, NASHVILLE $15B $3B $7B Capital Capital Capital Hold Monetize (Natural fit for In
Slide 36: The environment today is challenging for many, but opportunities are coming
The environment today is challenging for many, but opportunities are coming for the strong 36
Slide 37: Now more than ever our funding model is a massive differentiator
Now more than ever our funding model is a massive differentiator Maintain vast Strong access Financings are recourse capital resources to additional capital only to assets, not the Corporation 37
Slide 38: Strategic investment opportunities that few can execute
Which allows us to pursue strategic investment opportunities that few can execute 38
Slide 39: Emerging from this period in a better position than we entered
And should enable us to emerge from this period in a better position than we entered 39
Slide 40: Capital Allocation
Capital Allocation Our focus is on allocating the free cash flows we receive and executing on capital recycling to sustain long-term growth and returns Invest in/alongside our Asset Management business Further scale our Insurance Solutions business Invest alongside our Operating Businesses in large,
Slide 41: Capital Allocation Could Add Meaningfully to Our Five-Year Growth in DE
Capital Allocation Could Add Meaningfully to Our Five-Year Growth in DE Distributable Earnings 28% CAGR $12.6B 20% CAGR $3.3B $9.3B Base Impact Business Growth of Capital Allocation $4.7B $3.7B 20221 20232 2027 2027 Existing Businesses 1. 2022 Distributable Earnings are presented proforma the distri
Slide 42: 4. In Summary
Brookfield 4, In Summary
Slide 43: In summary, we are focused on…
In summary, we are focused on… Delivering 15%+ total returns and earnings growth over the long term Maintaining sufficient liquidity across all parts of our business Remaining disciplined when assessing investment opportunities Deploying capital for value and delivering long-term returns to our inve
Slide 44: Q&A
Brookfield Q&A
Slide 45: Thank You
Brookfield Thank You
Slide 46: Notice to Recipients
Notice to Recipients Brookfield is not making any offer or invitation of any kind by communication of this document to the recipient and under no circumstances is it to be construed as a prospectus or an advertisement. Except where otherwise indicated herein, the information provided herein is based
Slide 47: Notice to Recipients (cont'd)
Notice to Recipients (cont’d) CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES This presentation contains references to financial metrics that are calculated and presented using methodologies other than in accordance with International Financial Reporting Standards (“IFRS”), as issued by the