Annual Meeting of Shareholders

Transcription

1 Annual Meeting of Shareholders F R I D AY, J U N E 1 5,

2 NOMINEES FOR ELECTION BY THE Class A Shareholders ELYSE ALLAN ANGELA BRALY MURILO FERREIRA RAFAEL MIRANDA 2

3 NOMINEES FOR ELECTION BY THE Class A Shareholders YOUSSEF NASR SEEK NGEE HUAT DIANA TAYLOR FRANK MCKENNA 3

4 NOMINEES FOR ELECTION BY THE Class B Shareholders JEFF BLIDNER JACK COCKWELL MARCEL COUTU BRUCE FLATT 4

5 NOMINEES FOR ELECTION BY THE Class B Shareholders ROBERT HARDING MAUREEN KEMPSTON DARKES BRIAN LAWSON LORD O DONNELL 5

6 Annual Meeting of Shareholders F R I D AY, J U N E 1 5,

7 1 2 3 REVIEW REAL ASSET ALLOCATIONS PRIORITIES 7

8 Review 1 8

9 Over the past year we... Raised $20 billion of fee bearing capital Achieved strong returns for clients Launched fundraising for latest series of flagship funds and new strategies Deployed $16 billion of capital 9

10 We raised $20 billion of capital over the last 12 months 1 Total Fee Bearing Capital 2 1 Capital Raised $113B +12% $127B +52% $3B $4B $13B Listed Partnership Private Funds Public Securities 1) LTM as at March 31, ) As at March 31, 2017 and March 31,

11 We recently launched our next flagship Real Estate and Private Equity funds US$ billions Previous Three Flagship Vintages Current Real Estate $1.0 $4.4 $9.0 $10B 1 + Private Equity $0.8 $1.0 $4.0 $7B 2 + Infrastructure $2.7 $7.0 $14.0 Launch late 2018/early ) Funds raised to date as at June 1st, ) Has not yet had a first close 11

12 And in response to investor demand, we ve also launched new products and strategies within areas of our expertise 1 2 PERPETUAL CORE FUNDS CREDIT FUNDS 12

13 Our private funds have achieved strong returns, enabling our client relationships to grow +94% 5-Year Target ~1, % ) As at March 31, ) As at March 31,

14 This has further diversified our investor base 1 57% NORTH AMERICA 23% ASIA & AUSTRALIA 10% MIDDLE EAST 10% EUROPE & OTHER 1) As at March 31, Private fund capital by geography 14

15 We have been busy putting this capital to work, deploying $16 billion of capital around the world over the past 12 months 1 35% NORTH AMERICA 55% SOUTH AMERICA 2% ASIA& OTHER 8% EUROPE 1) LTM as at March 31,

16 All of this has led to meaningful growth in operating results in the last year 1 Fee bearing capital 12% Fee related earnings 56% Annualized fees and target carry 20% Funds from operations 34% Cash available for distribution 53% 1) One year increase as at March 31,

17 Real Asset Allocations 17

18 Passive investing has provided decent returns over the past 20 years 1150% 950% 750% 550% 350% 7% Total Return 1 150% -50% ) Compound, dividends reinvested S&P 500 Returns 18

19 but returns from value investments in real assets have been better 1170% 16% Total Return 1 970% 770% 570% 370% 7% Total Return 1 170% -30% S&P 500 Returns BAM (NYSE) Returns 1) Compound, dividends reinvested 19

20 Real assets provide attractive long-term real returns They can earn good cash-on-cash yields They can be contracted for long durations Cash flows tend to adjust with inflation or by other means The private nature tends to reduce volatility Returns have been very attractive relative to other options available to institutions 20

21 A part of the reason for real asset manager growth is the increase in institutional capital ($trillions) 80 $80T $43T 1 20 $23T E 1) Sources: Willis Towers Watson Global Pension Assets Study, ; Preqin Sovereign Wealth Fund reports 2) Sources: Brookfield estimate; PwC The rising attractiveness of alternative asset classes for Sovereign Wealth Funds; OECD Pension Markets in Focus 21

22 But the most important piece has been increasing percentages allocated to real assets % 25% 40%+ 95% 75% 60% Real Assets/ Alternatives Equity/Fixed Income 1) Source: Willis Towers Watson Global Pension Assets Study, ) Brookfield estimate 22

23 We believe allocation trends should continue, irrespective of interest rates Interest rates should slowly move up in the U.S. Our business works even better at higher rates We have found that Real Assets retain their value across the cycle Interest rates should rise only if the economy is improving leading to growth in cash flow returns Returns on Real Assets remain extremely attractive in this environment 23

24 We are well positioned as a partner of choice for Real Asset strategies 24

25 We have a number of competitive strengths 115 years of operating experience 80,000+ employees Multiple fund offerings Established governance and client service capabilities Large scale capital ~$285 billion of assets under management Global presence 30+ countries Strong track record proven investment results 25

26 Our team is expanding 2018 ~80,000 OPERATING EMPLOYEES 2008 ~17,000 OPERATING EMPLOYEES 26

27 We provide three distinct offerings, which appeal to a broad range of investors Listed Partnerships $56 billion Private Funds $56 billion Public Securities $15 billion $127 BILLION FEE BEARING CAPITAL 1 1) As at March 31,

28 In an industry headed towards +$80 trillion 1 by 2020s, we have already established the backbone to manage this growth Strong governance and compliance model Focus on client service capabilities 1) Sources: PwC The rising attractiveness of alternative asset classes for Sovereign Wealth Funds; OECD Pension Markets in Focus 28

29 We continue to identify many attractive investment opportunities 29

30 General renewable power portfolio $1.4 billion LARGE SCALE CAPITAL North & South America and Asia GLOBAL REACH Renewable Team OPERATING CAPABILITIES 30

31 Global provider of infrastructure services to the nuclear power generation industry 1 $4.6 billion LARGE SCALE CAPITAL U.S., Europe and Asia GLOBAL REACH Private Equity Team OPERATING CAPABILITIES 1) Not yet closed 31

32 India office portfolio $900 million LARGE SCALE CAPITAL India GLOBAL REACH Real Estate Team OPERATING CAPABILITIES 32

33 Natural gas distribution system $304 million LARGE SCALE CAPITAL Colombia GLOBAL REACH Infrastructure Team OPERATING CAPABILITIES 33

34 Marine energy services business $750 million LARGE SCALE CAPITAL North Sea, Brazil and Canada GLOBAL REACH Private Equity Team OPERATING CAPABILITIES 34

35 Student housing portfolio in the U.K. 520 million LARGE SCALE CAPITAL U.K. GLOBAL REACH Real Estate Team OPERATING CAPABILITIES 35

36 Much of this capital is in private funds, where we have a strong track record across the Real Asset investible universe Vintage Gross IRR 1 Opportunistic Real Estate % Private Equity % Core Plus and Value-add Real Estate % Infrastructure % Sustainable Resources % Credit % 1) As at March 31, Past performance is not indicative of future performance. Excludes co-investments, separately managed accounts and open-ended funds. Reflects IRR before fund expenses, management fees and carried interest (if any), which would reduce an investor s return 36

37 Priorities 3 37

38 Looking ahead, we are focused on five things Enhancing returns and asset values Maintaining excellent client service and expanding our investor base Sourcing deals and investing $22 billion of fund commitments at or above target returns Doubling our private funds business in the next five years Optimizing value of listed issuers 38

39 Q&A 39

40 Cautionary Note Regarding Forward-Looking Statements Forward-Looking Statements and Information This presentation contains forward-looking information within the meaning of Canadian provincial securities laws and forward-looking statements within the meaning of 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. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Asset Management and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. In some cases, forward-looking statements can be identified by terms such as expects, anticipates, plans, believes, estimates, seeks, intends, targets, projects, forecasts or negative versions thereof and other similar expressions, or future or conditional verbs such as may, will, should, would and could. Although we believe that our 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, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Asset Management 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, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchanges rate; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; changes in tax laws, catastrophic events, 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 our documents filed with the securities regulators in Canada and the United States. We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Brookfield Asset Management 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. Use of Non-IFRS Measures and Other This presentation contains references to financial measures which are not generally accepted accounting measures under IFRS and may differ from similar definitions used by other entities. We believe that these are useful supplemental measures that may assist investors in assessing our financial performance and the cash anticipated to be generated by our operations. Such measures should not be considered as the sole indicators of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. Certain values used in this presentation are for illustrative purposes and based on various factors that may or may not materialize, including past performance metrics that may not be indicative of future performance. References to Brookfield, Brookfield Asset Management or BAM are to Brookfield Asset Management Inc. together with its subsidiaries unless the context reflects otherwise. All amounts are in U.S. dollars unless otherwise specified. 40

41 Annual Meeting of Shareholders F R I D AY, J U N E 1 5,