Brookfield Australia Corporate Profile · | Brookfield Australia 1 Important Notice Whilst every...

Brookfield Australia

A GLOBAL ASSET MANAGEMENT COMPANYFocused on Property and Infrastructure Assets

Corporate ProfileFebruary 2011

| Brookfield Australia 1

Important Notice

Whilst every effort is made to provide accurate and complete information, this presentation has been prepared in good faith, but no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation (any of which may change without notice).

To the maximum extent permitted by law Brookfield Asset Management Inc and its related bodies corporate and their directors, officers, employees, agents and advisers disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss, damage, cost or expense which may be suffered through use or reliance on anything contained in or omitted from this presentation.

To the extent that this presentation contains prospective financial information, that information has been based on current expectations about future events and is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information. Past performance is not indicative of future performance.

This presentation is not intended as personal advice and has been prepared for the purpose of providing information only without taking account of any particular investment objectives, financial situations or needs. It does not constitute an offer for the issue, sale or purchase of any securities, or any recommendation in relation to investing in assets.

Every effort has been made to ensure the accuracy of the financial information herein but it may be based on unaudited figures. You may find audited figures in the most recent annual and half year reports which are available on www.brookfield.com.

All amounts quoted in this presentation are GST exclusive unless otherwise stated.

Photographs in this presentation do not necessarily depict assets of Brookfield Asset Management Inc or funds managed by Brookfield Asset Management Inc.

© Brookfield Asset Management Inc

BROOKFIELD ASSET MANAGEMENT


Brookfield Investment Highlights

Over 100 years of experience investing, operating and managing high quality “real “ assets – property, renewable power and infrastructure

• World class operating platforms: focused on owning and managing high quality “real” assets– Generate stable growing cash flows and provide capital protection– Operating expertise optimises profitability and asset values– Unique and diversified deal flow

• Strong investment execution capabilities and restructuring expertise: enables us to acquire assets at meaningful discounts to value

– Able to react quickly to opportunities and invest – Willing to work through complex restructurings

• Expanding asset management franchise:– Provides enhanced growth and additional capital to pursue acquisitions on an accretive basis– Asset management income adds to cash flow per share

• Alignment of interests: through significant (17%) ownership of common stock by management and directors

• Solid capitalisation, substantial liquidity and prudent risk management: provide support and stability to existing businesses and enable continued growth through acquisitions and development activities

• Record of long-term value creation: through share price and dividends (20 year total return: 18.0% per annum; 10 year total return: 26% per annum)

• Shares currently trading below intrinsic value of $37.45


COMMON SHARE PERFORMANCE*

In Profile

Our primary objective is to generate attractive long-term returns on a per share basis from high quality assets that produce sustainable cash flows

STOCK INFORMATION (31/12/10):

Stock Exchange Listings:

Dividend Rate/Yield:

Q42010 Avg Daily Volume:

Shares Outstanding:

Stock Market Cap:

CAPITALISATION

Credit Ratings:

Leverage:

NYSE, TSX, Euronext

$0.52 per share /1.7%*

1.9 million shares

616.1 million (diluted)

$20 billion (31/12/10)

DBRS – A(low) Moody’s – Baa2

Fitch – BBB S&P – A-

Corporate – 14% LTV

Group proportionate – 44% LTV

SHARE VALUES

BAM Share Price: (Quarter ending 31/12/10)

High: US$33.29

Low: US$28.37

* Based on December 2010 average share price

INTRINSIC VALUE* (31/12/10):

Per Share: $37.45

SHARE OWNERSHIP

Management & Directors: 17%

20-Year 10-Year 5-Year 1-Year

BAM 18.0% 25.8% 10.9% 53.0%

S&P 500 9.1% 1.4% 2.3% 15.1%

* As of December 31, 2010, inclusive of dividends

* Includes Net Tangible Value per share of $30.96 plus $6.49 management estimate for asset management franchise value


Our Business Strategy

Increase shareholder value by driving profitable growth while minimising risk

• Build and maintain “best in class” operating platforms in “real assets” that form critical backbone of economic activity:

– Benefit from some form of barriers to entry, regulatory regime or other competitive advantage

– Generate high levels of growing sustainable cash flows and increases in per share value

• Finance assets on a conservative, long-term basis for downside protection through economic cycles

• Expand funds under management and foster strong client relationships to:

– Provide growth capital

– Enhance cash flows with asset management fees

• Actively manage our capital:

– Maintain high level of financial liquidity, execution capability and operational flexibility to capitalise on growth opportunities

– Judiciously and opportunistically reallocate capital among our businesses to increase returns

– Invest in times of distress and in complex situations which lessen competition

• Ability to grow through both acquisitions and development activity, as well as operational improvements


Focused Global Reach – 100 offices or location / 500 investment professionals / 18,000 operating employees

CANADA$20 billion AUM3,000 EmployeesProperty, Renewable Power & Infrastructure

U.S.$66 billion AUM4,000 EmployeesProperty, Renewable Power & Infrastructure

SOUTH AMERICA$15 billion AUM6,000 EmployeesProperty, Renewable Power & Infrastructure

EUROPE & MIDDLE EAST$4 billion AUM3,000 EmployeesProperty & Infrastructure

ASIA & AUSTRALASIA$16 billion AUM2,000 EmployeesProperty & Infrastructure

USD

AUD

Brazil

CAD

GBP

45%

15%

22%

13%6%

GEOGRAPHIC FOOTPRINT Net Tangible Asset Value by Currency


• Raised over $18 billion of third party capital in 2010 for growth investments, including $3 billion in private fundraising

• Major strides in global fundraising

— Achieved final close on six funds in 2010

— Three funds in fundraising with target commitments of $2.25 billion

— Four new fundraising initiatives underway with target commitments of $5-$6 billion

— Demonstrable growth in fee income

Increased annualised base management fees to $190 million

Generated $250 million in performance-based income

A Year of Growth

Power & Infrastructure Property

Private Equity & Finance

Corporate & Other Total

Private fundraising $ 1,800 $ 900 $ 300 $ − $ 3,000

Public market issuances 1,600 700 300 2,200 4,500

Debt issuances 3,000 5,500 300 600 9,100

Other − − − 900 1,500

Total $ 6,400 $ 7,100 $ 900 $ 3,700 $ 18,100


Operating Platforms – Emphasis on “Real” Assets

PlatformAUM –

Over $100BInvested

Capital – $26B Description

Renewable Power• Hydroelectric• Wind energy

±$16 billion $7.5 billion

• 167 hydroelectric power plants with ~4,300 MW capacity

• Two wind farms with combined 240 MW of capacity, and one 166 MW wind project under construction

Commercial Properties• Office, retail• Development pipeline

±$46 billion $6.9 billion• ~88 million sq. ft. of office space and

~74 million sq. ft of retail space globally

Infrastructure• Utilities• Transport & Energy• Timberlands

±$16 billion $1.9 billion

• Premier facilities representing critical backbone ofeconomic activity

• Ports, rail lines, energy transmission and timber• Combination of regulated rate base and contracted

revenues

Residential and AgricultureDevelopment

±$9 billion $3.2 billion• 81 million sq. ft. of residential condos• 122,000 lots for residential land• 370,000 acres of agricultural land

Private Equity and Finance

±$8 billion $2.2 billion • Bridge lending, real estate finance and restructuring

Public Securities ±$21 billion $ − • Fixed income, real estate and infrastructure securities

BROOKFIELD IN AUSTRALIA


Brookfield in Australia

• Brookfield has established two primary operating platforms in Australia, which align with our global strategy:

– Property (acquired in 2007)

• Leading commercial office portfolio and construction business

• A$8 billion AUM

– Infrastructure (acquired in 2009/2010):

• Diverse portfolio of critical infrastructure assets (ports, rail, transmission/distribution)

• A$5 billion AUM

• Business strategy for Australia:

– Own and operate high quality assets with significant barriers to entry that generate high levels of sustainable free cashflow

– Finance assets on a conservative, long term basis

– Pursue customer initiated projects within our operating platforms to deliver low-risk organic growth

– Leverage our presence and capabilities in the region to lead expansion into Asia


Tasmania

Queensland

Western Australia

Commercial Properties .9 m sqf

Brookfield Rail 5,200 km rail network

Construction workbook $2,628m

Residential projects 3,745 lots

45 units

Victoria

New South Wales

Brookfield in Australia and New Zealand

Commercial Properties 1.6 m sqf

DBCT 85 mtpa coal terminal

Construction workbook $598m

Residential projects 1,017 units

2,407 lots


Construction workbook $957m

Residential projects 1,230 lots

Brookfield Utilities 8,700 connections


Construction workbook $1,138m

Residential projects 1,533 units

• AUM: $13 billion

• ~2,200 operating employees incl. 65 investment professionals

• 7 Offices/locations

South Australia

Residential 111 units

New Zealand

Powerco 420,000 connections

Commercial Property 2.6 m sqf


Recent Initiatives - Australia

• Created a leading diversified global infrastructure platform through the acquisition of the remaining 60% of Australian infrastructure company to create a leading, diversified global infrastructure platform which:

– Significantly expands our international infrastructure franchise, positioning Brookfield Infrastructure with increased scale and growth opportunities

– Substantially enhances the trading liquidity of Brookfield Infrastructure in a combined entity with a market capitalisation of more than $3 billion

– Simplifies the ownership structure of our infrastructure business

• Reorganised global office business in sale of portfolio of 16 Australian office properties to Brookfield Office Properties (BPO):

– Established BPO as a pure-play global listed office business

– Rationalised and strengthened our global office platform under one entity – creates efficiencies

– Properties are 98% leased with a seven year average lease term and 4% growth in rental revenues

• Completed nearly $2 billion of financings across the commercial, residential and infrastructure businesses to further strengthen the capital structure across the Group.


Operating Platforms – Australia

PlatformAUM –

A$13 billion Description

Infrastructure• Utilities • Fee for Service

±$5 billion

• Diversified portfolio of high-quality transport and energy infrastructure assets with significant barriers to entry

• Conservative capital structure• Attractive organic growth opportunities• Dividend yield supported by strong underlying cashflows

Commercial Properties• Office, retail• Development pipeline

±$6 billion

• 37 properties, comprising over 1 million sqm in Australia’s top markets• High rents, high occupancy levels and long-term leases to Government

and institutional grade tenants• Steady cashflow from stable operating income• 2 development projects under construction with 4 in the pipeline totalling

more than 3.28 million sqf of development potential

Construction and Services• Construction and

Development• Engineering and

Infrastructure

±$1.5 billion

• Total work in hand of $5.4 billion across Australia• Integrated real estate, facilities management and project management

services across the commercial property, infrastructure and residential market sectors

• More than 2,000,000 sqm and 2,000 leases/licences managed on behalf of external clients

Residential Development• Apartments• Communities

±$0.5 billion• 10 apartment projects with development potential of more than 3,000

units• 8 communities projects comprised of more than 11,000 lots


Significant Growth Opportunities

Acquisitions

Internal Growth− Locked-in contracts and regulated rate base businesses− Rollover of existing leases/contracts at higher market rates− Increased contribution as economy recovers

Asset Management

− Growing institutional base of clients− Global team of 25 professionals− Strong governance and transparency− Wide range of product offerings attractive to investors

Development

− Additional assets in core platforms

− Complementary platforms

− New geographic markets

− Property: 1.8 M sq. ft. Development pipeline;− Infrastructure: Upgrades, expansions and new large scale

developments to meet increased demand


Flagship Assets – Commercial, Infrastructure, Construction, Residential

ConstructionFiona Stanley Hospital, Perth

InfrastructureDalrymple Bay Coal Terminal (DBCT), North Queensland

PropertyCity Square, Perth

ResidentialVale masterplannedcommunity, WA

Situated in a prime Perth CBD address, the premium-grade 45 level tower will be the new premises for BHP Billiton. Comprising 76,000sqm, the tower will reflect the latest in corporate workplace design. The heritage buildings along St Georges Terrace and the podium at the base of the tower will offer unique office accommodation and boutique retail . City Square is targeting construction completion at the end of 2011.

A port facility which exports metallurgical and thermal coal mined in the Bowen Basin region of Queensland, Australia, a region with one of the lowest cost and most prolific series of coal deposits in the world.

One of the largest coal terminals, accounting for 8% of the total global seaborne coal exports and 21% of global metallurgical seaborne coal exports.

The $2 billion Fiona Stanley Hospital is the biggest building infrastructure project ever undertaken by the State Government.

The 783 bed hospital will include a state of the art emergency centre to support a major trauma centre, burns unit , mental health unit, and comprehensive cancer services.

Construction is on time and on budget. Practical completion is anticipated to be December 2013.

A 4,500 lot suburb covering 540 ha in Western Australia’s Swan Valley. On completion will have a population of approx 10,500. When completed, Vale will have two retail precincts totalling 9,000sqm, a mixture of primary, high and private schools, cafes, childcare and recreational facilities, as well as a 22 ha bush plan area and a 32 ha conservation area.


Flagship Assets – Commercial, Infrastructure, Construction, Residential

ConstructionHilton Surfers Paradise Hotel and Residences

InfrastructureWestnet Rail, Western Australia

PropertyOne Shelley Street, Sydney

ResidentialPortside Wharf, Brisbane

The property is an A-grade commercial office building with a nine-level tower plus rooftop terrace, ground floor with retail, commercial lobby and office space at level 1, and basement parking for 268 vehicles. The property is located in the King Street Wharf precinct in close proximity to Wynyard bus and rail interchanges and is surrounded by retail and restaurants at King Street Wharf. The property has a 6 Star Green Star Office Design v2 rating.

WestNet Rail is a rail infrastructure owner and rail provider with a long term arrangement to lease track from the WA Government. WestNet Rail operates approximately 5,1000 km standard, narrow and dual gauge network in the south west of WA. It is a regulated monopoly with largely stable revenue streams through long term access agreements with a blue chip customer base.

The first premium full service hotel to open on the Gold Coast in 10 years. Features two towers which offer a mix of residential apartments, Hilton Hotel suites and street level retain emporium.Orchid Tower – 224 residence and 169 hotel suites.Boulevard Tower – 186 apartments and retail precinct on lower levels.

Home to the Brisbane International Cruise Terminal, Portside Wharf is a master planned urban village located directly on the Brisbane River. Encompassing 7,500 sqm of open space, Portside Wharf is a vibrant residential, shopping and entertainment precinct featuring waterfront dining, apartments, boutique stores, specialty and convenience shopping, cafes and a Dendy cinema.


In Summary

Brookfield is very well positioned in this environment

• Substantial liquidity and consistent access to capital

• Focus on real assets with inflation hedge characteristics

• Wide array of attractive investment opportunities, including a pipeline of organic growth initiatives

• World class operating platforms with dedicated professional operating and investment teams

• Enhanced profile with institutional clients and favorable track record

APPENDIX


Committed to Sustainable Development

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 star NABERS(1) energy rating across the BOPA portfolio, forecast to increase to an average of 4.75 in 2011

– Average 3.75 NABERS(1) water rating across the BOPA properties which have been rated

– Average 5 Star Green Star (2) design across all sites developed from 2003.

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– Built some of Australia’s most significant 6 star green star buildings such as Macquarie Group Building

(Sydney), Energy Australia Learning Centre (Sydney), Melbourne Convention Centre (Melbourne).

– Conducting Australia’s largest performance study with University of Technology Sydney to independently measure sustainability impacts on building performance, tenant experience and occupant value.

(1) NABERS – National Australian Built Environment Rating System. Provides 1 to 5 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.


Investor Relations Contacts

Contact Title E-Mail Address Phone Number

Brian Kingston Senior Managing Partner [email protected] +61 2 9692 2801+61 438 145 251

Russell Proutt Chief Financial Officer [email protected] +61 2 9322 2704

+61 400 378 622

Kerrie Muskens Head of Marketing and Communications

[email protected] +61 2 9322 2753

+61 410 535 250

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