Brookfield Renewable Partners (BEP) CORPORATE PROFILE FEBRUARY 6, 2020
Brookfield Renewable Partners (BEP)
CORPORATE PROFILE
FEBRUARY 6 , 2020
2
Cautionary Statement Regarding Forward-Looking Statements
This presentation contains forward-looking statements and information, within the meaning of Canadian 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, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts,
projections, guidance or other statements that are not statements of fact. Forward-looking statements in this presentation include statements regarding the quality of Brookfield Renewable’s assets and the
resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance and payout ratios of FFO (as defined below), expected liquidity, the outlook in our core markets, including
North America, Europe, Latin America, China and India expected impact of inflation on revenue and FFO, target annual equity deployment, returns and costs reductions, future commissioning of assets, the
contracted nature of our portfolio, technology diversification, acquisition and investment opportunities, financing and refinancing opportunities, proceeds from opportunistically recycling capital, future energy
prices and demand for electricity, achieving long-term average generation, project development and capital expenditure costs, energy policies, economic growth, growth potential of the renewable asset class,
the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewable’s access to capital and liquidity. In some cases, forward-looking statements can be identified by the use of
words such as “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes”, “potentially”, “tends”, “continue”, “attempts”, “likely”, “primarily”, “approximately”, “endeavours”, “pursues”, “strives”,
“seeks”, “targets”, “believes”, “deliver”, “growth”, “advance” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be
taken, occur or be achieved. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information in this presentation
are based upon reasonable assumptions and expectations, we cannot assure you that such expectations will prove to have been correct. You should not place undue reliance on forward-looking statements
and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements 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: changes to hydrology at our hydroelectric facilities, to
wind conditions at our wind energy facilities, to irradiance at our solar facilities or to weather generally, as a result of climate change or otherwise, at any of our facilities; volatility in supply and demand in the
energy markets; our inability to re-negotiate or replace expiring power purchase agreements on similar terms; increases in water rental costs (or similar fees) or changes to the regulation of water supply;
advances in technology that impair or eliminate the competitive advantage of our projects; an increase in the amount of uncontracted generation in our portfolio; industry risks relating to the power markets in
which we operate; the termination of, or a change to, the MRE balancing pool in Brazil; increased regulation of our operations; concessions and licenses expiring and not being renewed or replaced on similar
terms; our real property rights for wind and solar renewable energy facilities being adversely affected by the rights of lienholders and leaseholders that are superior to those granted to us; increases in the cost
of operating our plants; our failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failures, including relating to wind turbines and solar panels; dam failures and the
costs and potential liabilities associated with such failures; force majeure events; uninsurable losses and higher insurance premiums; adverse changes in currency exchange rates and our inability to effectively
manage foreign currency exposure; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; disputes, governmental and regulatory
investigations and litigation; counterparties to our contracts not fulfilling their obligations; the time and expense of enforcing contracts against non-performing counter-parties and the uncertainty of success; our
operations being affected by local communities; fraud, bribery, corruption, other illegal acts or inadequate or failed internal processes or systems; our reliance on computerized business systems, which could
expose us to cyber-attacks; newly developed technologies in which we invest not performing as anticipated; labor disruptions and economically unfavorable collective bargaining agreements; our inability to
finance our operations due to the status of the capital markets; operating and financial restrictions imposed on us by our loan, debt and security agreements; changes to our credit ratings; our inability to identify
sufficient investment opportunities and complete transactions; the growth of our portfolio and our inability to realize the expected benefits of our transactions or acquisitions; our inability to develop greenfield
projects or find new sites suitable for the development of greenfield projects; delays, cost overruns and other problems associated with the construction and operation of generating facilities and risks associated
with the arrangements we enter into with communities and joint venture partners; Brookfield Asset Management’s election not to source acquisition opportunities for us and our lack of access to all renewable
power acquisitions that Brookfield Asset Management identifies; we do not have control over all our operations or investments; political instability or changes in government policy, or unfamiliar cultural factors;
foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; changes to government policies that provide incentives for renewable energy; a decline in the value of
our investments in securities, including publicly traded securities of other companies; we are not subject to the same disclosure requirements as a U.S. domestic issuer; the separation of economic interest from
control within our organizational structure; future sales and issuances of our limited partnership units, preferred limited partnership units or securities exchangeable for our limited partnership units, or the
perception of such sales or issuances, could depress the trading price of our limited partnership units or preferred limited partnership units; the incurrence of debt at multiple levels within our organizational
structure; being deemed an “investment company” under the U.S. Investment Company Act of 1940; the risk that the effectiveness of our internal controls over financial reporting; our dependence on Brookfield
Asset Management and Brookfield Asset Management’s significant influence over us; the departure of some or all of Brookfield Asset Management’s key professionals; changes in how Brookfield Asset
Management elects to hold its ownership interests in Brookfield Renewable; Brookfield Asset Management acting in a way that is not in the best interests of Brookfield Renewable or our unitholders; and other
factors described in this prospectus, including those set forth under “Risk Factors” in our annual report on Form 20-F.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. The forward-looking statements represent our views as of the date of this presentation and should not be
relied upon as representing our views as of any subsequent date. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the
forward-looking statements, other than as required by applicable law. For further information on these known and unknown risks, please see “Risk Factors” included in our annual report on Form 20-F.
Table of Contents
Who We Are Page 4
Portfolio Overview Page 11
Growth Page 15
Financial Profile Page 21
Appendix Page 26
3
4
Who We Are
5
We are a multi-technology, globally
diversified, owner and operator of
renewable power assets
6
Leader in Renewable Generation
5,274 power generating facilities
$50 billionTOTAL POWER ASSETS
27 markets in 17 countries
19,000MEGAWATTS OF CAPACITY
Situated on 84 river systems
74%HYDROELECTRIC GENERATION
One of the largest public pure-play renewable businesses globally
120 years of experience in power generation
Full operating, development and power marketing capabilities
Over 2,800 operating employees
Simple Strategy with Proven Track Record of Success Through All Cycles
Acquire and develop high-quality
renewable power assets and businesses
below intrinsic value
Optimize cash flows by applying our
operating expertise to enhance value
Finance our businesses on an
investment grade basis
Recycle capital from mature,
de-risked assets
7
8
Portfolio Highlights
Diverse and High-Quality
Asset Base
Approximately 19,000 megawatts of hydro,
wind, solar, distributed generation and storage
capacity across four continents
Multiple Levers to
Grow Cash Flows
Proven and repeatable growth strategy
combining a value investment approach with
operating expertise and capital discipline
Cash Flow Resiliency
Through-the-Cycle
Robust balance sheet and access to global
capital markets ensures significant downside
protection
Proven
Track Record
20-year track record in the renewable power
sector, delivering 18% annualized returns to
unitholders since inception
9
Long Track-Record of Delivering Attractive, Risk-Adjusted Returns
Our objective is to deliver long-term total returns of 12% ‒ 15% to unitholders annually
~$16 Billion1
MARKET CAPITALIZATION
5% to 9% TARGET DISTRIBUTION GROWTH
BEP / BEP.UNNYSE / TSX DUAL LISTING
~4%1
DISTRIBUTION YIELD
Annualized Total Return 3 yr 5 yr Inception
BEP.UN (TSX) 22% 18% 17%
BEP (NYSE) 23% 15% 18%
S&P/TSX Composite 7% 6% 6%
S&P 500 15% 12% 6%
Source: Bloomberg, including reinvestment of dividends. At December 31, 2019
Annual DistributionPrice Performance
6%
CAGR
1.381.45 1.55 1.66
1.781.87
1.962.06
2.17
2012 2013 2014 2015 2016 2017 2018 2019 2020
1) As of December 31, 2019
10
Strong ESG Practices Create Long-Term Stakeholder Value
Our portfolio’s generation helps to displace ~27 million metric tons of carbon dioxide
annually, equivalent to 450 million trees planted
• Accelerate the
decarbonization of global
electricity grids through
our renewable power
portfolio
• Apply Task Force on
Climate-related Financial
Disclosures (TCFD)
framework to analyze
long-term climate change
risks
• Protect biodiversity
• Manage water and waste
resources
• Maintain a social license
to operate
• Health and safety – with a
focus on high-risk
incidents – prevention is a
top priority
• Proactively engage with
and give back to
communities in which we
operate
• Human capital initiatives
emphasizing diversity and
inclusion
Social
• Operate with high ethical
standards and a robust
policy framework (e.g. our
Code of Business Conduct
and Ethics, Anti-Bribery
and Anti-Corruption Policy)
• Integrate ESG into our
decision-making,
processes and
management systems
• Diverse Board of
Directors and executive
management team
• Asset and information
security
GovernanceEnvironmental
11
Portfolio Overview
12
Diversified Operating Portfolio with Stable Cash Flows
Cash flows are supported by a strong contract profile and are well diversified
by technology and geography
Hydro Wind Solar
21%
Contracted Merchant
95%
5%
74%
Hydro
Focused
Growing Global
Footprint
Contracted
Cash Flows
5%
Based on long-term average generation, proportionate to BEP
North America
Latin America & Asia
Europe
34%
4%
62%
13
Global Operations with Local Presence
We have integrated operating platforms on four continents with local operating and
power marketing expertise
NORTH AMERICA8,900 megawatts
$29 Billion in total power assets
SOUTH AMERICA4,900 megawatts
$13 Billion in total power assets
ASIA1,000 megawatts
$1 Billion in total power assets
EUROPE4,200 megawatts
$7 Billion in total power assets
14
Complementary Portfolio of High-Quality Assets
Uniquely complementary asset base spread across five technologies
Wind4,600 MW
Solar2,300 MW
DG780 MW
Storage2,700 MW
Hydro7,900 MW
Our portfolio has
significant storage
capacity and ability
to produce power at
all hours of the day
Our wind assets are
focused on areas
with scarcity value,
and built with Tier 1
turbine equipment
Diversified portfolio
across PV and CSP
technologies with
diverse and scalable
applications
We own one of the
largest C&I DG
portfolios in the U.S.,
giving us direct
access to our
customers
Our pumped storage
and battery assets
are able to produce
electricity during
peak hours, and
recharge when
prices are low
Brookfield Renewable also owns a ~590 megawatt portfolio of biomass and co-generation facilities
15
Growth
LATIN
AMERICA
• Economic growth driving electricity demand
• Strong support for hydro
• Increasing build-out of solar and wind
NORTH AMERICA
& EUROPE
• Growing renewables targets
• Declining subsidies and tax incentives for
wind and solar
• Rising renewables penetration combined with
nuclear and coal retirements
INDIA
• Economy will likely double in size over the
next decade
• Growing push to build-out hydro, wind and
solar capacity
• Reduced reliance on imported oil and coal
CHINA
• Significant renewables build-out to combat
pollution however, expansion of transmission
infrastructure has not kept pace
• Subsidies for wind and solar are disappearing
and credit is tightening
• Trade war with U.S. could have currency
implications
Favourable Outlook in Our Core Markets
16
17
Significant Investment Opportunity in Renewable Power
With up to $11 trillion of new investment needed to move to a carbon-free world
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Today 30% Renewables 50% Renewables 100% Renewables
Incremental Renewable Additions and Investment Sizegigawatts
Current Renewables Capacity Incremental Renewables Needed to Meet Target
$850
billion
$5
trillion
$11
trillion
1) Core markets include Canada, U.S., Brazil, Colombia, U.K., Republic of Ireland, Spain, Portugal, India and China
2) Current renewables capacity excludes hydroelectric, and includes wind, solar, biomass, geothermal and marine technologies
3) Assumes a $1,500 per kilowatt new-build cost for renewables and a 40% capacity factor
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Organic Cash Flow Growth
BEP is focused on delivering 5% to 9% distribution growth annually on a per unit
basis from organic initiatives and fully funded by internally generated cash flows
Lever
Expected Annual
FFO Growth
Expected 5 Year
FFO Contribution Detail
Inflation
Escalation1% to 2% ~$75 million ~40% of our revenues have embedded inflation indexation
Re-Contracting 1% to 2% ~$40 million Limited downside risk to PPA maturities in North America
plus exposure to rising power prices in Brazil and Colombia
Cost Reduction 1% to 2% ~$65 million Targeting cost reductions of $2/MWh
Development &
Repowering3% to 5% ~$125 million
Targeting to build 1,000 MW from our proprietary
development pipeline over the next five years at premium
returns
FFO per Unit
Growth
Potential
6% to 11% ~$305 million We do not rely on M&A to achieve our
distribution growth target
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Assets Under Construction
The following table summarizes the 717 MW of assets currently under construction and the expected
FFO on an annualized basis:
Project Name County/Region Technology Capacity (MW)
Expected date of
commission
Annualized
expected FFO
(millions)1
GLP Rooftop JV China Solar 63 Q1 2020 1
Knockawarriga II Ireland Wind 8 Q1 2020 1
Foz do Estrela Brazil Hydroelectric 30 Q2 2021 6
Bear Swamp
(Unit Upgrade)
North
America
Pumped
Storage66 Q2 2021 3
X-Elio North AmericaNorth
AmericaSolar 401 Q1-Q3 2020 3
X-Elio Europe Spain Solar 135 Q3 2020 1
X-Elio Asia Japan Solar 14 Q2 2020 1
Total 717 ~$16M
We are also advancing hydroelectric, wind, solar and distributed generation construction projects across
four continents, including 1,380 MW (570 MW net to Brookfield Renewable) of advanced stage
projects through final permitting and securing a route-to-market, including re-powering projects in the
New York, California and Hawaii, Once commissioned, these facilities are expected to contribute over
$56 million in FFO on an annualized basis.
Since closing on X-Elio, our total development pipeline increased to approximately 13,000 MW, further
diversifying our pipeline across technologies and geographies.
1) Proportionate to BEP
20
Proven Track Record of Capital Deployment
Since 2014, we have developed or acquired 14,000 MW of capacity
across technologies and geographies
$0.0
$0.5
$1.0
$1.5
$2.0
Hydro Wind Solar Other
Tho
usands
North America Latin America Europe Asia
Deployed $3.5 billion of BEP equity since 2014$billions
21
Financial Profile
Robust Balance Sheet
Debt Maturity Ladder$billions, as at December 31, 2019BBB+
INVESTMENT GRADE BALANCE SHEET
10 YEARSAVERAGE PROJECT DEBT TERM TO MATURITY
~80%NON-RECOURSE FINANCINGS
Highest rating in the sector with non-amortizing
corporate debt fully supported by perpetual
hydro portfolio
Well laddered debt profile with no material
maturities in the next 4 years or deferred financing
structures like converts or tax equity
Structured on an investment grade basis with
attractive covenant packages that are free from
financial maintenance covenants
~90%FIXED RATE FINANCINGS
Minimal interest rate exposure, with only 5% of
our debt in North America and EU exposed to
rising interest rates
~9.3xDECONSOLIDATED
INTEREST
COVERAGE
16%DEBT TO
CAPITALIZATION -
CORPORATE
22
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
2020 2021 2022 2023 2024 After
Non-Recourse Maturities Recourse Maturities
Access to Deep Pool of Capital
Significant Liquidity Partner Capital
Diversified Access to
Capital MarketsTrack Record of
Capital Recycling
We currently have ~$2.7 billion
of available liquidity
We have access to ~$5 billion of
partner capital to invest alongside
We have raised ~$3.3 billion in
corporate debt and equity (preferred
and common) since 2015
Raised ~$1.1 billion in proceeds in
the last two years through
opportunistic capital recycling
Multiple
Funding
Levers
23
Key Takeaways…
24
STRATEGY
Proven and repeatable strategy combining
a value investment approach with
operating expertise and capital discipline
GLOBAL SCALE
Global scale across 4 continents affords
us significant flexibility in moving capital
across the world
MULTI-TECHNOLOGY
Multi-technology platforms in hydro, wind,
solar, distributed generation and storage
allows us to be nimble with our capital
TRACK RECORD
20 year track record in the renewables
space, delivering 18% annualized returns
to unitholders
25
Contacts
Contact Title Email
Sachin Shah Chief Executive Officer [email protected]
Wyatt Hartley Chief Financial Officer [email protected]
Robin Kooyman Senior Vice President, Investor Relations [email protected]
26
Appendix
27
Corporate Structure
63%
Brookfield
Business
Partners (BBU)
Brookfield Asset Management (BAM)
~$63B Market Cap¹ (TSX, NYSE)
51%
Brookfield
Property
Partners (BPY)
30%
Brookfield
Infrastructure
Partners (BIP)
60%5
Brookfield
Renewable
Partners(BEP)2
Private Fund LPs⁴
Company
A
Company
B
Company
C
Company
D
25%³
75%³
1) Based on closing price on the NYSE on December 31, 2019
2) BEP generally funds Brookfield’s commitment to renewables transactions in Private Funds
3) Indicative figure only, and subject to transaction size, co-investment, and other considerations
4) Indicative third-party commitments
5) On a fully-exchanged basis
28
Governance
EXECUTIVE LEADERSHIP
Sachin Shah Chief Executive Officer
Wyatt Hartley Chief Financial Officer
Jennifer Mazin General Counsel
Ruth Kent Chief Operating Officer
Brookfield Renewable has entered into a Master Services Agreement with Brookfield Asset Management
• Provides comprehensive suite of services to Brookfield Renewable Partners
• Base management fee of $20 million adjusted annually for inflation
• Equity enhancement fee equal to 1.25% of the increase in BEP’s capitalization
Incentive distributions based upon increases in distributions paid to unitholders over pre-defined thresholds (Master
Limited Partnerships (MLP) structure)
• 15% participation by Brookfield in distributions over $0.375/unit per quarter
• 25% participation by Brookfield in distributions over $0.4225/unit per quarter
Brookfield Renewable’s general partner has a majority of independent directors
Brookfield Renewable’s governance is structured to provide significant alignment of interests between Brookfield
Asset Management and unitholders
29
Favourable Structure Relative to Master Limited Partnerships
Brookfield Renewable has not and is not expected to generate UBTI and ECI
• Brookfield Renewable is a Bermuda-based publicly traded partnership that indirectly
owns holding corporations in the U.S., Canada and other jurisdictions. Brookfield
Renewable is not a U.S. MLP
• Chart below shows a comparison of Brookfield Renewable versus an MLP
1) Not all MLP’s are the same. This represents Brookfield’s understanding of common features with these types of vehicles
2) UBTI is unrelated business taxable income
3) ECI is effectively connected income
4) Source: Management estimates based on Barclays Capital Master Limited Partnerships MLP Trader Weekly
Brookfield Renewable MLP1
Type of entity Publicly traded partnership Publicly traded partnership
UBTI2 No Yes
ECI3 No Yes
U.S. tax slip issued K1 K1
Tax profile of distributions Benefits from return of capital Benefits from depreciation
Target payout ratio ~70% of FFO 80%-90% of distributable cash flow4
Incentive distributions 25% maximum 50% maximum
30
Leader in Green Energy & Sustainability
BEP is the largest member by market capitalization of the S&P/TSX Renewable Energy and Clean
Technology Index.
Since 2017, BEP has issued four green bonds through project-level financings for an aggregate
value of over $1.6 billion. Citing BEP's environmental stewardship, commitment to renewable
power, and use of proceeds towards renewable power generation, the green bonds received E-1
Green Evaluation scores from S&P - the highest on its scale.
BEP issued two corporate-level green bonds to date – C$300 million in 2018 and C$600 million in
2019 – under its Green Bond Framework with proceeds to be used to finance and/or refinance
investments in renewable power generation and to support the development of clean energy
technologies. A third-party opinion from Sustainalytics deemed the Framework to be credible and
impactful.
BEP is committed to sustainable development principles that reduce the impact of our operations
and help to manage the underlying water resources efficiently. Low Impact Hydropower Institute
(LIHI) certification is a voluntary certification program designed to help identify and provide market
incentives for hydropower operations that are minimizing their environmental impacts. BEP has
received LIHI certification for 55 hydro facilities across the US, more than any other operator,
making it the U.S. leader in low impact hydropower generation.1
The Environmental Choice Program is a comprehensive national program sponsored by
Environment Canada. It certifies manufacturers and suppliers that produce products and services
that are less harmful to the environment. These bear the EcoLogo registered trademark. 22 of our
hydroelectric facilities in Ontario, Quebec, and British Columbia meet the strict standards of the
Environmental Choice Program.
1) This product includes Low Impact Hydropower from facilities certified by the Low Impact Hydropower Institute (an independent non-profit organization) to have environmental impacts
in key areas below levels the Institute considers acceptable for hydropower facilities. For more information about the certification, please visit www.lowimpacthydro.org.
31
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
- 50 100 150 200 250
Generation (TWh)
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Lowest Carbon Footprint in the Sector
• Our carbon footprint is one of the
lowest compared to peers in the
electricity generation industry
• Our primary renewable sources –
water, wind and sunlight result in
very low GHG emissions
• BEP generates approximately 50
TWh of clean energy annually,
displacing ~27 million metric tons
of carbon dioxide emissions
annually
‒ Equivalent to 450 million
trees planted
Mill
ion T
onnes o
f C
O2 E
quiv
ale
nt
Em
issio
ns (
tCO
2e)
Source: Public company filings/disclosures
Note: Brookfield Renewable Partners emissions calculated based on GHG Protocol methodology
GHG Emissions(million tCO2e) / Generation (TWh)