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.

• Positioned to benefit from a normalizing rate environment, with $40M in annual interest savings expected from lower base rates.

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 20% EBITDA margin, with 6% same-store EBITDA growth and 100 bps margin expansion.

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

• Generated $2.2B in proceeds from nine monetizations and $2B from capital recycling initiatives in the past year, with realized IRRs up to 60%+ on select exits.

• Targeting $2B of capital recycling proceeds over the next two years and $800M+ in annual free cash flow within 3-5 years.

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