Brookfield Renewable Partners (BEP) Investor Day 2024 summary

Macroeconomic and Strategic Outlook

• Falling interest rates and stabilized inflation are reviving liquidity and transaction activity, supporting a soft economic landing and multi-year tailwinds, especially for interest-sensitive sectors.

• Growth is driven by global expansion, local presence in 30 countries, and operational expertise, enabling unique access to opportunities and competitive advantages.

• Investment focus is on decarbonization, digitalization, and deglobalization, with trillions expected to be invested over the next 25 years, primarily by private enterprise and global corporations.

• Regional focus remains on the U.S. for its scale and risk profile, with growing activity in India, Australia, Asia, and Europe; Japan is seen as an emerging opportunity.

• The company leverages its owner-operator roots, emphasizing operational agility and value creation in complex or misfinanced assets.

Strategic Vision and Value Creation

• Focused on generating strong long-term returns through a repeatable value creation playbook emphasizing operational improvement, commercial execution, and strategic positioning.

• BBU serves as an extension of Brookfield's private equity strategy for public investors, leveraging a 20+ year track record with $44B invested and $38B realized proceeds, achieving a 27% gross IRR and 21% net IRR.

• Over half of current operations were acquired in the last three years, with acquisitions made at an average 10x EBITDA multiple versus a 15x market average.

• Value creation is in early stages for recent acquisitions, targeting significant EBITDA and value uplift by 2027.

• The approach centers on acquiring high-quality businesses, enhancing operations, recycling capital, and compounding value.

Business Performance and Financial Highlights

• Achieved record EBITDA margins of 20%, completed nine monetizations, and generated $2.2 billion in proceeds, with same-store EBITDA up 6% year-over-year.

• Adjusted EBITDA increased from $1B in 2019 to $2.3B today, with margins rising 1,000 bps over five years.

• Adjusted EFO grew at a 45% CAGR to $2.9B, with per unit EFO up 35% CAGR to $13.45 since 2016.

• $2B generated from capital recycling initiatives in the past year, with realized IRRs up to 60%+ on select exits.

• Since inception, BBU has exited 20 businesses, generating $6 billion in proceeds and a 30% IRR.