BROOKFIELD AUSTRALIA Corporate Profile Fourth Quarter 2012

Transcription

1 BROOKFIELD AUSTRALIA Corporate Profile Fourth Quarter 2012 Brookfield Asset Management Inc. A Global Alternative Asset Management Company Focused on Property, Renewable Power, Infrastructure and Private Equity

2 Cautionary Note Concerning Forward-Looking Statements 1 Note: This Corporate Profile contains forward-looking information within the meaning of Canadian provincial securities laws and other forwardlooking statements, within the meaning of certain securities laws including Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. We may make such statements in this profile, in other filings with Canadian regulators or the Securities Exchange Commission (SEC) or in other communications. These forward-looking statements include, among others, statements with respect to our financial and operating objectives and strategies to achieve those objectives, capital committed to our funds, our liquidity and ability to access and raise capital, our ability to capitalize on investment opportunities, the potential growth of our asset management business and the related revenue streams there from, the prospects for increasing our cash flow from or continued achievement of targeted returns on our investments, as well as the outlook for the Company s businesses and other statements with respect to our beliefs, outlooks, plans, expectations, and intentions. Although Brookfield Asset Management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: economic and financial conditions in the countries in which we do business; the behavior of financial markets including fluctuations in interest and exchange rates; availability of equity and debt financing; strategic actions including dispositions; the ability to effectively integrate acquisitions into existing operations and the ability to attain expected benefits; adverse hydrology conditions; regulatory and political factors within the countries in which the company operates; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time in the company s form 40-F filed with the Securities and Exchange Commission as well as other documents filed by the company with the securities regulators in Canada and the United States including in the Annual Information Form under the heading Business Environment and Risks. We caution that the forgoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Brookfield Asset Management, investors and others should carefully consider the forgoing factors and other uncertainties and potential events. The company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

3 Brookfield Asset Management

4 Experienced Investor and Manager 100 year history as a global investor, operator and asset manager of high quality alternative assets Assets Under Management 3 >$175 billion One of the largest global managers of real assets with over $175 billion under management Real estate Infrastructure Renewable energy Private equity Multi-fund platform to meet the diverse needs of our clients Private funds Flagship listed managed entities Public securities Leading global franchise with integrated investment, operating and financial teams in over 20 countries Strong track record of performance for clients and Brookfield investors Significant alignment of interests ~ 20%-40% invested alongside our clients in private funds and co-investments ~ 20% ownership of common shares by management and directors

5 Brookfield Asset Management An Overview 4 Over $175 billion of assets under management 100 offices or locations ~600 investment professionals ~24,000 operating employees Canada $25 billion AUM UK, Western Europe & Middle East $7 billion AUM Asia & Australasia $19 billion AUM United States $108 billion AUM South America $22 billion AUM

6 Experienced Investor and Manager Leader in alternative investing across major asset classes that are in demand by institutional investors seeking yield and superior returns 5 Real Assets Real Return Yield Enhanced Fixed Income Alternatives PROPERTY INFRASTRUCTURE RENEWABLE POWER PRIVATE EQUITY $103 billion $27 billion $19 billion $26 billion ~300 million sq. ft 1 : office, retail, opportunity and financial investments Ports, rails, toll roads, natural gas pipelines, transmission lines, timberlands and agrilands 195 hydro facilities, 7 wind farms ~5,700 MW Special situations and residential development 1) Includes active developments and current projects in planning

7 Diversified Multi-Fund Platform 6 Our clients have unparalleled flexibility to invest with us through flagship public entities and private funds across our real asset platforms Brookfield (BAM) Flagship Public Funds Brookfield Property Partners (BPY) % 65% 28% 100% Brookfield Renewable Energy Partners (BREP) Brookfield Infrastructure Partners (BIP) Brookfield Capital Partners 2,3 Private Institutional Funds Brookfield Property Funds Brookfield Infrastructure Funds Brookfield Private Equity Funds Operating Assets and Investments 1) Also owns interests in Brookfield Office Properties and General Growth Properties 2) Privately held 3) Also owns interests in Brookfield Residential Properties, Brookfield Incorporações and Norbord

8 Global Platform Positioned for Growth And our global footprint is a key strategic advantage Number of Offices 100 Number of Countries 20 7 Unparalleled ability to source a broad scope of investment opportunities Flexibility to allocate capital to the businesses or locations that offer the best risk based return Ability to develop diverse funds and strategies to meet the needs of our growing global client base Access to a larger pool of international investors Diversified cash flows

9 Diverse Source of Client Capital Commitments We have a growing base of ~150 leading global investors in our private funds, many invested in multiple Brookfield funds Number of new private fund investors in 2012 > 30 8 Clients invested in multiple private funds 25 % PRIVATE CLIENT CAPITAL BY INVESTOR TYPE 1 Other 2 PRIVATE CLIENT CAPITAL BY GEOGRAPHY 1 South America Private Pension 9% Insurance 4% Financial 5% 7% 61% Public Pension / Superannuation Europe & Middle East 13% 10% Australia 9% 5% 65% North America Sovereign Wealth 14% Asia Pacific 11% 1) Based on dollars committed 2) Family Office/High Net Worth/Consultant

10 Client & Fee Bearing Capital 9 We have $60 billion of fee bearing capital under management alongside our $32 billion of capital, including nearly $10 billion of liquidity and dry powder to invest Brookfield Principal Capital 2 $32 billion FEE BEARING CAPITAL $60 billion UNINVESTED/AVAILABLE CLIENT CAPITAL $5.2 billion Public Securities $15.5 $23.2 Private Funds Private Equity Infrastructure $1.0 $1.2 $3.0 Property $21.3 Listed Issuers 1 1) Publicly listed entities that are externally managed by Brookfield (eg. Brookfield Renewable Energy Partners, Brookfield Infrastructure Partners) 2) Excludes asset management franchise value, and includes incremental values and excludes deferred income taxes

11 Track Record of Strong Investment Performance 10 Clients and investors in our fund strategies have been rewarded with excellent historical returns Committed to Private Funds $23 billion Committed/Pledged Capital 2 Vintage Gross IRR 1,3 PRIVATE FUNDS (US$ millions) Core Plus & Value Add Real Estate $ 5, % Infrastructure $ 4, % Timber $ 2, % Bridge Lending $ 2, % Opportunistic Real Estate $ 9, % Private Equity $ 2, % FLAGSHIP LISTED ENTITIES CAGR 1 Yr 3Yr 5 Yr BIP $ 7, % 35% BREP C$ 7, % 22% 14% BPY 4 $ 12, ) Reflects performance from initial investment date to December 31, ) Committed/Pledged Capital includes original committed/pledged capital, including current capital available for commitments and capital that may no longer be available given the mandate and limitations of each product 3) Gross IRR reflects the internal rate of return before fund expenses, management fees and carried interest. List of funds can be found on page 23. Investment performance has not been included where the funds initial investment is within 12 months of the performance calculation date. 4) BPY spun-off to Brookfield shareholders through a special distribution of an ~ 7.5% interest on April 15, 2013

12 Brookfield Recognition 11 Brookfield s performance and expertise has been recognised across our real asset platforms 2012 Private Equity Real Estate (PERE) North America Firm of the Year Infrastructure Investor Latin American Infrastructure Deal of the Year Institutional Real Estate Newsletter Top Real Estate Investment Manager by AUM Towers Watson Second Largest Global Real Estate Manager INREV/ANREV Second Largest Global Real Estate Fund Manager Preqin Top Consistent Performing Real Estate Manager 2011 Infrastructure Investor North American Fund Manager of the Year Pension and Investment Fastest Growing Money Manager (>$10 billion) Preqin #1 Private Equity Fund Manager in Latin America (aggregate capital raised ) 2010 Private Equity Real Estate Global and North American Deal of the Year Preqin Top Consistent Performing Real Estate Manager 2009 Private Equity Real Estate Global Firm of the Year Private Equity Real Estate Global Fundraise of the Year

13 Recent Growth Initiatives 12 We expanded our asset management platform and announced or completed acquisitions and capital expansions totaling $11.5 billion in 2012 ASSET MANAGEMENT Increased assets under management by 13% to $181 billion in 2012 Raised $3.6 billion in new third party capital during the year Increased annualized base management and incentive distributions by 38% to $415 million Earned $344 million in performance fees, of which $34 million was realized Progressed marketing of six private funds seeking and additional $5 billion of third party capital CLOSED one fund and achieved first and subsequent closes on four of our private funds Enwave District Energy Toronto Wound up our first fund with an overall gross IRR of 31% INFRASTRUCTURE PLATFORM Invested $170 million to increase our ownership in our Chilean toll road (AVN) to 50% Completed $300 million investment in Brazilian toll road platform Acquired Enwave, a Toronto based district energy system, in partnership with institutional investors that serves commercial customers downtown for Brookfield investment of $75 million Completed the recapitalization of Inexus Group, a regulated distribution utility in the UK, and merged it with our existing business for a total investment of $525 million Arteris Toll Road, Brazil

14 Recent Growth Initiatives (cont d) 13 PROPERTY PLATFORM Announced distribution of Brookfield Property Partners to BAM shareholders and listing of units on the NYSE and TSX April 15, 2013 Completed the acquisition of a majority interest (81%) in ~$870 million private industrial property business (Verde) with 113 industrial properties in U.S. and Mexico totaling ~ 18 million sq. ft. Acquired with partners, an Australian property developer (Thakral) with $1 billion of assets, including a prime office site in Sydney and a portfolio of hotels, retail and commercial properties and other development projects Verde - San Antonio Expanded our industrial property portfolio, acquiring with partners, eight Class A industrial properties totaling 2.6 million square feet in five major U.S. industrial markets. Increased to 87.5% our ownership interest in Bishopsgate development, a 950,000 square foot office tower planned for central London, UK Acquired multi-residential portfolio of 19 apartment communities in the U.S. for total enterprise value of $414 million, bringing our multifamily portfolio to 15,600 units Launched two major development projects totaling nearly 6 million square feet: Manhattan West (New York) and Bay Adelaide Centre East (Toronto) RENEWABLE POWER PLATFORM Acquired a portfolio of four hydroelectric facilities in Tennessee and North Carolina from Alcoa with installed capacity of ~ 380 MW for $600 million Acquired 19 hydroelectric facilities totaling 351 MW of capacity in New England for total enterprise value of $760 million Acquired 93% of the outstanding shares of Western Wind Energy, a company with a portfolio of three wind facilities in California and a wind-solar facility in Arizona, subsequent to quarter end Cheoah, North Carolina

15 Brookfield Australia

16 Operating Platforms - Australia A diverse portfolio of commercial property, infrastructure and private equity including construction, residential and property services. Number of Offices 4 15 Number of Employees 2,500 PROPERTY INFRASTRUCTURE POWER PRIVATE EQUITY $9.1 billion $7.2 billion $3.2 billion 33 properties comprising over 11 million sqf in Australia s top markets and a portfolio of hotels Diversified portfolio of highquality transport and energy infrastructure assets with significant barriers to entry Currently no power assets in Australia Construction workbook - $6.0B. Residential 1,500 apartment units and 2,500 residential lots Property Services - 25 million sqf and 2,000 leases managed on behalf of clients. 1) Includes active developments and current projects in planning

17 Flagship Assets Property, Power, Infrastructure 16 Property Infrastructure Construction Brookfield Place, Perth 76,000 sqm office tower leased to BHP Billiton, PwC and Barrick Gold. Dalrymple Bay Coal Terminal (DBCT), North Queensland One of the world s largest coal terminals, accounting for 8% of the total global seaborne coal exports Fiona Stanley Hospital, Perth 783 bed hospital with state of the art emergency centre to support a trauma centre, burns unit, mental health unit and cancer services. One Shelley Street, Sydney 33,000 sqm A-grade commercial office building leased to Macquarie Group. Brookfield Rail 5,100km rail network in the south west of WA. Royal Randwick Race Course, Sydney World class redevelopment to include new grandstand, theatre of the horses parade ring, 1,000 seat ballroom and recreational areas.

18 Active Development Pipeline 17 PROPERTY Four commercial property development projects in advanced planning 215,000 sqm o Sydney, Melbourne and Perth INFRASTRUCTURE Multiple projects with total development value of over $5 billion o o Rail expansion Ports expansion

19 Recent Highlights - Australia 18 Brookfield Australia highlights for the last 12 months include: Acquired Thakral Holdings Group with a portfolio of hotels, retail and commercial properties including a prime office site in the Sydney CBD. Merged the local operations of Brookfield Multiplex Services with Johnson Controls Global WorkPlace Solutions (GWS) to create Brookfield Johnson Controls Invested more than $1 billion of capital to further expand our property and infrastructure operations Increased Australian construction work in hand to $6.4 billion across commercial property, engineering and infrastructure Completed more than $4 billion of financings across the property, infrastructure and funds businesses to further strengthen the capital structure across the Group

20 In Summary 19 We are very well positioned with a strong balance sheet and significant access to capital to maintain our growth momentum Significant Liquidity >$4 billion of core liquidity to fund growth Over $5 billion of capital from institutional partners Strong and Flexible Capitalization Over $50 billion of permanent equity capitalization Conservative debt levels Long-term financing Strong investment grade ratings Access to Capital Ability to raise third party capital through publicly listed and private funds Continued favourable access to market with lower reference rates mitigating higher spreads

21 Additional Information

22 Why Brookfield? 21 Strong competitive position as an alternative asset manager Broad offering of alternative asset strategies and products attractive to institutional investors Established track record of performance and increasing fee revenues Growing base of clients and enhanced reputation as a leading alternative asset manager Proven track record of long term value creation for shareholders through share performance over time and measured as total return per annum COMMON SHARE PERFORMANCE (Dec 31, 2012 incl. dividends) 20-Year 10-Year 3-Year 1-Year BAM 19% 22% 20% 35% S&P 500 8% 7% 11% 16% Global operating platform provides a wide array of growth prospects organic, acquisitions and development Solid capitalization, substantial liquidity and prudent risk management

23 Committed to Sustainable Development 22 ENVIRONMENTAL LEADERSHIP Brookfield Australia has a unique focus on infrastructure assets, world-class commercial properties, a strong involvement in the community, as well as a demonstrated commitment to sustainable development Properties Features, systems and programs that foster energy efficiency Average 4.7 star NABERS (1) energy rating across the BOPA portfolio + Average 3.7 star NABERS (1) water rating across the BOPA properties which have been rated + Average 5.2 Star Green Star (2) design across the BOPA properties which have been rated Founding partner in the City Of Sydney s Better Buildings Partnership - a collaboration of some of Sydney's leading public, private and institutional landlords. The Partnership aims to improve the sustainability performance of existing commercial and public sector buildings across Sydney's local government area. INFRASTRUCTURE Voluntary participation in the Carbon Disclosure Project Active engagement and support of the local communities in which we operate As a result of climate change, there are significant opportunities in the region including moves to rail transport over road, increased demand for gas as fuel for heating and power generation and carbon capture, transport and storage CONSTRUCTION Successfully delivered 23 projects with 31 Green Star ratings (design and as built), in excess of one million sqm of ESD Star-rated space with an equivalent project value of over $4.4 billion. Built some of Australia s most significant Green Star buildings such as One Shelley Street, Tyree Energy Technologies Building, Energy Australia Learning Centre (all Sydney), Brookfield Place (Perth) and Melbourne Convention Centre. Partnering with Universities and Industry leaders to independently measure sustainability impacts on building performance, tenant experience and occupant value. (1) NABERS National Australian Built Environment Rating System. Provides 1 to 6 star rating for energy, water, waste and indoor air quality. (2) Green Star Design and As Built Rating Tool. Provides 1 to 6 stars for new construction similar to LEED in USA and Canada. + excludes 108 St Georges Terrace, Perth

24 Appendix 23 Investor Relations Contacts Contact Title Address Phone Number Bill Powell Chief Executive Officer Russell Proutt Chief Financial Officer russell.proutt@au.brookfield.com Kerrie Muskens Head of Marketing and Communications kerrie.muskens@au.brookfield.com