Brookfield Renewable Partners (BEP)/media/Files/B/... · Primary Font Colour Title Slide Font Light...

34
Brookfield Renewable Partners (BEP) CORPORATE PROFILE AUGUST 2017

Transcript of Brookfield Renewable Partners (BEP)/media/Files/B/... · Primary Font Colour Title Slide Font Light...

Brookfield Renewable Partners (BEP)

CORPORATE PROFILE

AUGUST 2017

2

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

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 ratio, future commissioning of assets, the contracted nature of our portfolio, technology

diversification, acquisition opportunities, financing and refinancing opportunities, 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. 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”, 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, the following: we are not subject to the same

disclosure requirements as a U.S. domestic issuer; the separation of economic interest from control or 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 effectiveness of our internal controls over financial reporting; changes to hydrology at our hydroelectric stations, to wind conditions at our wind

energy facilities or to crop supply or weather generally at any biomass cogeneration facility; counterparties to our contracts not fulfilling their obligations; increases in water rental costs (or similar fees) or

changes to the regulation of water supply; volatility in supply and demand in the energy market; the increasing amount of uncontracted generation in our portfolio; industry risks relating to the power markets in

which we operate; increased regulation of our operations; contracts, concessions and licenses expiring and not being renewed or replaced on similar terms; increases in the cost of operating our plants; our

failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failures; dam failures and the costs of repairing such failures; force majeure events; uninsurable losses; adverse

changes in currency exchange rates; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; disputes, governmental and regulatory

investigations and litigation; 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; advances in technology that impair or eliminate the competitive advantage of our projects; newly developed technologies in which we invest not performing as anticipated; labour disruptions

and economically unfavourable collective bargaining agreements; our inability to finance our operations due to the status of the capital markets; our inability to effectively manage our foreign currency exposure;

operating and financial restrictions imposed on us by our loan, debt and security agreements; changes in our credit ratings; changes to government regulations that provide incentives for renewable energy; 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; our inability to develop existing

sites or find new sites suitable for the development of greenfield projects; delays, cost overruns and other problems associated with the construction, development and operation of our generating facilities; 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; our lack of control over all our operations; our ability to issue equity or debt for future acquisitions and developments is dependent on capital markets;

foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; the departure of some or all of Brookfield Asset Management’s key professionals; our relationship with,

and our dependence on, Brookfield Asset Management and Brookfield Asset Management’s significant influence over us; and risks related to changes in how Brookfield Asset Management elects to hold its

ownership interests in the Partnership.

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 Form 20-F.

Cautionary Statement Regarding Use Of Non-IFRS Measures

This presentation contains references to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Funds From Operations (“FFO”) and Funds From Operations per Unit

(“FFO per Unit”), which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit

used by other entities. We believe that Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit are useful supplemental measures that may assist investors in assessing the financial

performance and the cash anticipated to be generated by our operating portfolio. Neither Adjusted EBITDA, Funds From Operations nor Funds From Operations per Unit should be considered as the sole

measure 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.

References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise.

All amounts are in U.S. dollars and presented on a consolidated basis unless otherwise specified.

3

Who We Are

4

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Leader in Renewable Generation

Z

261 power generating facilities

$26 billion TOTAL POWER ASSETS

15 markets in 7 countries

10,600 MEGAWATTS OF CAPACITY

Situated on 82 river systems

88% HYDROELECTRIC GENERATION

One of the largest public pure-play renewable businesses globally

100 years of experience in power generation

Full operating, development and power marketing capabilities

Over 2,000 operating employees

5

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Diversified Operating Portfolio

Cash flows are supported by a strong contract profile and are well diversified

by technology and geography

Hydro Wind Other

11%

North America Brazil Colombia Europe

65%

5%

15%

15%

Contracted Merchant

92%

8%

88%

Hydro

Focused Growing Global

Footprint Contracted

Cash Flows

1%

Based on LTA generation, proportionate to BEP

6

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Attractive Risk-Adjusted Returns

Our objective is to deliver long-term total returns of 12% ‒ 15%

to shareholders annually

~$10.5 Billion MARKET CAPITALIZATION

5% ‒ 9% DISTRIBUTION GROWTH

BEP / BEP.UN NYSE / TSX DUAL LISTING

~5.5% DISTRIBUTION YIELD

Annualized Total Return1 1 yr 3 yr 5 yr

BEP.UN (TSX) 14% 16% 14%

BEP (NYSE) 14% 9% 8%

S&P/TSX Composite 11% 3% 9%

S&P 500 18% 10% 15%

1) Source: Bloomberg, including reinvestment of dividends. At June 30, 2017

$1.38

$1.45

$1.55

$1.66

$1.78

$1.87

2012 2013 2014 2015 2016 2017

Annual Distribution Price Performance

6.2%

CAGR

7

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Multiple Levers to Drive Growth

Targeted annual distribution increases of 5% ‒ 9% are supported by organic

cash flow growth and proprietary project development

Position the business

for revenue growth

• Manage power and ancillary

sales to benefit from market

volatility

• Power Purchase Agreements

rolling off at below market prices

• Opportunity to capture revenue

upside from our merchant US

hydro generation

Opportunity to further grow per

unit cash flows

• Inflation escalation embedded in

our revenues

• Track record of margin

expansion

• Proprietary development

pipeline that we continue to build

out at premium returns

Projected to deliver 5% – 9%

annual per unit cash flow growth

Organic levers to grow

cash flow

• Large investible universe

• We leverage our global footprint

to source accretive transactions

• Adopt a contrarian approach,

taking advantage of capital

scarcity, to earn outsized returns

Target $600 million of annual

BEP equity deployment

Deploying capital into

global renewable

opportunities

Underpinned by an investment grade balance sheet, significant liquidity

and proven access to capital

8

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Investment Highlights

Best in class renewable portfolio providing stable cash flow growth and

long-term capital appreciation with strong downside protection

Largest independently owned

hydroelectric portfolio globally

Highest value renewable resource with significant

barriers to entry

Stable contracted cash flows

with growing operating margins

92% contracted revenue profile, with 16 year

inflation-linked, contract term*

Robust balance sheet and

access to global capital markets

Over $2 billion of available liquidity to grow the

business accretively

Proven track record of value

creation for shareholders

6% compound distribution growth, supported by

per-unit cash flow growth, delivering a 14%

annualized total return since inception

*Proportionate to BEP

9

High Quality Assets

10

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Global Operations with Local Presence

We have integrated operating platforms on three continents with local operating and

power marketing expertise

BRAZIL 430 employees

$3 Billion in total power assets

COLOMBIA 680 employees

$5 Billion in total power assets

NORTH AMERICA 1,100 employees

$17 Billion in total power assets

EUROPE 115 employees

$1 Billion in total power assets

4,850MW 840MW 215MW

900MW 150MW 175MW

2,700MW 300MW

480MW

Legend:

Hydro

Wind

Other

11

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

High Quality Assets and Low Risk Profile

Diversified

Operations

• Invested in 7 countries over 3 continents

‒ Geographic diversity reduces exposure to regulatory risk and

currencies

• 261 generating stations spread across 82 river systems

‒ Low correlation between watersheds limits exposure to hydrology

‒ Market mechanisms in place to provide volume stability

Scarce, Irreplaceable

Assets with High

Barriers to Entry

• Highly regulated environment

• Significant build / replacement cost

• Site availability limited by physical and environmental constraints

• Significant operating expertise required

‒ Power marketing, scheduling / dispatch, regulatory compliance

• Long term customer contracts

Predictable

Cash Flows • Adjusted EBITDA margins > 70%

• Low sustaining CAPEX

• 92% contracted cash flows with creditworthy counterparties*

• Embedded contract escalation linked to local inflation indices

Real Assets,

Proven Technologies • Perpetual hydroelectric dams

• Utility scale wind farms

• Biomass as a complementary technology

*Proportionate to BEP

12

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Highly Contracted Cash Flows

• Power is largely sold under long-term, fixed price, inflation linked contracts with an average

proportionate term of 16 years

‒ The majority of PPAs are structured as take-or-pay contracts (no minimum volume risk) with

investment grade counterparties with long-standing credit histories

• In Brazil and Colombia, power prices will continue to be supported by the need to build new supply to

serve growing demand, and contracting is the only current mechanism to buy and sell power

‒ We therefore expect to capture rising prices as we re-contract over the medium term

• We expect to re-contract expiring PPAs at levels equal to or higher than roll off prices

‒ Current all-in power prices exceed our underwriting targets supporting embedded upside in our

cash flows

Generation

(GWh)

Remaining

2017 2018 2019 2020 2021

Contracted

United States 3,547 7,464 6,817 6,817 6,609

Canada 2,958 6,248 6,248 4,781 4,288

Europe 214 458 458 404 398

6,719 14,170 13,523 12,002 11,295

Uncontracted 318 1,531 2,178 3,699 4,406

LTA 7,037 15,701 15,701 15,701 15,701

% of generation 95% 90% 86% 76% 72%

84%

5%

11%

Investment Grade Non-Investment Grade Not Rated

PPA Counterparty Ratings

Amounts proportionate to BEP

Note: The table above excludes Brazil and Colombia where we would expect the energy associated with

maturing contracts to be re-contracted in the normal course given the construct of the respective power

markets, and to maintain a contracted profile of approximately 90% and 70%, respectively.

13

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Best in Class Hydro Portfolio

We have a strong track record as a responsible owner, operator and

developer of hydroelectric generation facilities

• Started investing in hydro over 20 years ago, prior to market

deregulation in North America

• Hydroelectric generation is the highest value renewable asset

class

• Our operating platforms position us to create value:

‒ Centralized system control

‒ Ability to sell power in multiple markets

‒ Optimization of resource through storage and ability to

sell during peak demand periods

‒ Geographic diversity spread over 82 river systems

• Significant barriers to entry requiring deep operational

knowledge and marketing expertise

Pezzi Rio Grande do Sul, Brazil

White Pine, United States

14

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Modern Portfolio of High Quality Wind Assets

Wind energy is one of the fastest growing and lowest cost sources of new

renewable generation which complements our hydro portfolio

• Since developing our first wind farm in 2006, we have built a

high-quality wind business

‒ Focused in areas with scarcity value

‒ Located in high-value power markets

‒ Benefit from long-term, utility-grade PPAs

‒ Tier 1 turbine equipment (GE, Siemens, Vestas,

Enercon, Nordex)

‒ In-house and full-scope turbine maintenance strategies

• Strategy has been to focus on project development or buying

for value

• Brookfield now operates 36 wind facilities with an installed

capacity of ~1,500 MW in six countries

Prince Wind Farm, Canada

Sorne Wind Farm, Ireland

15

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Deep Operational Expertise

2,000 EXPERIENCED

OPERATORS

140 POWER MARKETING

EXPERTS

4 REGIONAL CONTROL

CENTERS

Generation Management,

Planning and Dispatch

Asset Integration

Asset Integration

Asset Integration Regulatory Expertise

Asset Integration National

System Control

Energy Marketing Expertise

Engineering and

Development

Asset Integration

Stakeholder Engagement

Asset Integration

Health, Safety, Security and

Environmental

16

Organic Growth

17

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Organic Cash Flow Growth

BEP is focused on delivering 5% to 9% cash flow growth annually on a per

unit basis

• Growth target can be achieved from organic initiatives and fully funded by internally

generated cash flow

‒ We do not rely on M&A to achieve cash flow growth targets

‒ This does not account for the embedded optionality of our 2.5 TWh merchant hydro

portfolio in the United States where each $10/MWh increase in revenue translates

to $25 million in incremental FFO

Embedded

Inflation

Escalation

(1% to 2%)

Expected

Margin

Expansion

(1% to 2%)

Advanced

Development

Pipeline

(3% to 5%)

FFO per Unit

Growth

Potential

(5% to 9%)

+ + =

7,000 MW 6,000 1,000

Early Advanced

40%

50%

10%

Hydro Wind Other

Development Pipeline

18

Focused on growing and advancing our development pipeline

as a source of future growth at outsized returns

30%

50%

20%

North America LATAM Europe

Development Stage Technology Region

19

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Construction and Advanced Projects

In addition to the assets listed above, we have 154 MW of construction-ready projects

expected to contribute an additional $25 to $30 million to FFO annually

We have over 300 MW of construction and construction-ready assets expected

to contribute $45-50 million of annualized FFO once commissioned

Project Region Technology Capacity (MW)

Expected

Commissioning

Expected

Annualized FFO

($ Million)

Serra dos Cavalinhos1 Brazil Hydro 25 Q1-2017 5.7

Crockandun² Europe Wind 15 Q2-2017 1.5

Shantavny Europe Wind 16 Q3-2017 0.9

Silea – Verde 4A Brazil Hydro 28 Q3-2017 2.8

Slievecallan Europe Wind 28 Q4-2017 2.8

Ballyhoura Europe Wind 19 Q1-2018 1.5

Silea – Verde 4 Brazil Hydro 19 Q3-2018 2.0

Tralorg Europe Wind 19 Q4-2019 3.4

Total 169 ~$21 M

1. Commissioned January 25, 2017

2. Commissioned May 1, 2017

20

Growth

21

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Strong Track Record of Growth

Since 2012, we have developed and acquired 6,300MW, deploying over $2.4 billion of

BEP equity at accretive returns

Targeting annual equity deployment of ~$500 - $600 million in high quality assets

that present the opportunity to deliver 12% to 15% annual returns

• Continued global investment in renewables is creating a large investible universe

• We utilise our global network of investment professionals to originate acquisition

opportunities

• Adopt a contrarian approach, identifying value opportunities where scarcity of capital

reduces competition

• Leverage our deep operating expertise to diligence and underwrite assets

• Seeking to enhance our footprint in existing technologies while cautiously expanding into

new technologies and geographies

22

Financial Profile

23

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Robust Balance Sheet

$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

2017 2018 2019 2020 2021 After

Non-Recourse Maturities Recourse Maturities

Debt Maturity Ladder ($BILLIONS)

Significant Liquidity

• $1.6 billion committed corporate credit facility through 2022

• 70% long-term target FFO payout ratio, significant free cash flows

• Diverse funding sources with access to public and private markets

Staggered Debt Maturities

• No material near-term maturities

• Project debt has an average remaining term of 9 years on a

proportionate basis

• ~80% proportionate, fixed rate with minimal floating rate exposure

funded in local currency

Conservative Capitalization

• 38% consolidated debt-to-capitalization ratio

• Primarily asset level debt, 78% of which is non-recourse to BEP

• Investment grade credit ratings with S&P and DBRS

24

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Conservative Capitalization

• BEP has consistently maintained a conservative

debt to capitalization ratio

• Our high quality cash flow and strong remittance

characteristics underscore our investment

grade ratings

• The use of primarily non-recourse, fixed rate

financings provides strong protection and credit

stability to BEP lenders and investors

BBB+ BBB(high)

• “We believe BEP’s hydroelectric generation enjoys strong

competitive interconnections to a diverse pool of power

markets, and the availability of water storage facilities that

enhance the partnership’s operational flexibility and

profitability.”

• “We view BEP’s liquidity as adequate. The company has had

good relationships with its banks and generally good standing

in the credit markets.”

* S&P Research Update: August 16, 2017

• “The Company’s long-term power sales contract (91% of generation

on a proportionate basis in 2016) are expected to continue to provide

stability and support in earnings over the medium term while

renewable resources and production volume will continue to be key

drivers of revenue and profit.”

• “BEP’s key deconsolidated credit metrics remain supportive of the

current rating. This reflects relatively low debt at the corporate level

and solid gross operating cash flow from projects”

* DBRS Rating Report: May 17, 2017

38% DEBT TO TOTAL

CAPITALIZATION

~3.0X CONSOLIDATED EBITDA /

INTEREST COVERAGE

~7.0X REMITTED CASH FLOW /

INTEREST COVERAGE

4.5% AVERAGE INTEREST RATE ON

CORPORATE BORROWINGS

25

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Investment Recap

Best in class renewable portfolio providing stable cash flow growth and long-term

capital appreciation with strong downside protection

Largest independently owned hydroelectric portfolio globally Highest value renewable resource with significant barriers to entry

Stable contracted cash flows with growing operating margins Upside tied to economic growth and identified margin expansion

Robust balance sheet and access to global capital markets Approximately $2 billion of available liquidity to grow the business accretively

Proven track record of value creation for shareholders 6% compound dividend growth and 15% annualized total return since 2011

26

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Contacts

Contact Title Email

Sachin Shah Chief Executive Officer [email protected]

Nick Goodman Chief Financial Officer [email protected]

Claire Holland Media & Communications [email protected]

Divya Biyani Investor Relations [email protected]

27

Appendix

28

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

BEP Generation Overview

As at June 30, 2017

River

Systems Facilities

Capacity

(MW)

LTA

(GWh)1

Storage

(GWh)

Hydroelectric

North America2 50 170 4,847 17,775 4,879

Colombia3 6 6 2,732 14,476 3,703

Brazil4 26 42 899 4,647 ‒

82 218 8,478 36,898 8,582

Wind5

North America 10 840 2,310

Europe 21 478 1,220

Brazil 5 150 588

36 1,468 4,118

Other6 6 690 385

Total 82 261 10,636 41,401 8,582

1) LTA is calculated on a consolidated and an annualized basis from the beginning of the year, regardless of the acquisition or commercial operation date.

2) North America hydroelectric LTA is the expected average level of generation, as obtained from the results of a simulation based on historical inflow data performed over a period of typically

30 years

3) Colombia hydroelectric LTA is the expected average level of generation, as obtained from the results of a simulation based on historical inflow data performed over a period of typically

20 years. Colombia includes generation from both hydroelectric and Co-gen facilities.

4) Hydroelectric assets located in Brazil benefit from a market framework which levelizes generation risk across producers

5) Wind LTA is the expected average level of generation, as obtained from the results based on simulated historical wind speed data performed over a period of typically 10 years

6) Includes one Co-gen plant in Colombia (300 MW), two Co-gen plants in North America (215 MW) and four biomass facilities in Brazil (175 MW)

29

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Hydro Assets

We own and operate 218 hydro facilities with 8,500MW of capacity on 82 river

systems

North America

• 1,361 MW across 33 hydro facilities in Canada, fully

contracted with investment grade counterparties

• 3,486 MW across 137 hydro facilities in the USA, over

80% currently under contract with strategic exposure to

rising prices in our core markets

Colombia

• 2,732 MW across 6 hydro facilities

• Modern, utility grade assets recently commissioned by the

Colombian government

• Over 70% under contract in a short-term, mandatory

rolling contract market

Brazil

• 899 MW across 42 hydro facilities

• Predominantly small hydro (<30 MW) facilities that benefit

from transmission discounts

• ~90% under contract with large DISCOs and industrial

consumers

Key attributes

• High cash margins

• Non-intermittent power

• Zero fuel input cost

• Significant barriers to entry

• Centrally operated by regional system

control centres

• ~8,500GWh of storage capability

30

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Wind Assets

We own and operate 36 wind facilities with approximately 1,500MW of capacity

North America

• 406 MW across 3 wind facilities in Canada

• 434 MW across 7 wind facilities in the USA

• Portfolio predominantly built by BEP over the past 10 years

• Over 95% contracted and weighted average duration of 14 years remaining

Europe

• 355 MW across 19 wind facilities in Ireland and Northern Ireland

• 123 MW across 2 wind facilities in Portugal

• Over 95% contracted and weighted average duration of 9 years remaining

• Primarily contracted with government offtakes through REFIT programs

Brazil

• 150 MW across 5 wind facilities in Bahia

• Highest wind resource region in northern Brazil with above average capacity factors

• Average age off assets is less than 5 years

• Over 80% of generation under contract until 2033

Key attributes

• High cash margins

• Zero fuel input cost

• Centrally operated by regional system

control centres

• Relatively low build cost and improving

turbine efficiency

• Minimal ongoing capex requirements

• Simple to operate and outsourced O&M

providers are available to financial

buyers supporting our capital recycling

program

31

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Corporate Structure

75%

Brookfield

Business

Partners (BBU)

Brookfield Asset Management (BAM)

~$39b Market Cap¹ (TSX, NYSE)

Management 20%

62%

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

30%³

70%²

1) Based on closing price on the NYSE on June 30, 2017

2) BEP funds Brookfield’s commitment to renewables transactions in Private Funds

3) Subject to transaction size, co-investment, and other considerations

4) Third-party commitments

5) Approximate and reflective of ownership following 2017 equity issuance

32

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Governance

SENIOR MANAGEMENT TEAM

Sachin Shah Chief Executive Officer

Nick Goodman Chief Financial 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 shareholders 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 with its unitholders

33

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Favourable Structure Relative to MLPs

Brookfield Renewable is committed to structuring its operations to avoid

generating 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. MLP1

• Chart below shows a comparison of Brookfield Renewable versus an MLP¹

1) MLP is Master Limited Partnership

2) Not all MLP’s are the same. This represents Brookfield’s understanding of common features with these types of vehicles

3) UBTI is unrelated business taxable income

4) ECI is effectively connected income

5) Source: Management estimates based on Barclays Capital Master Limited Partnerships MLP Trader Weekly

Brookfield Renewable MLP2

Type of entity Publicly traded partnership Publicly traded partnership

UBTI3 No Yes

ECI4 No Yes

U.S. tax slip issued K1 K1

Tax profile of distributions Benefits from return of capital Benefits from depreciation

Payout ratio ~70% of FFO 80%-90% of distributable cash flow5

Incentive distributions 25% maximum 50% maximum

34

Primary Font Colour

Title Slide Font

Light Background

R17 G17 B17

Dark Backdrop

R255 G255 B255

Business Group Colours

Real Estate

R71 G151 B181

Infrastructure

R83 G55 B82

Renewable

R92 G153 B121

Private Equity

R230 G203 B140

R244 G124 B16

R77 G77 B77

R200 G200 B200

R17 G17 B17

Logo & Divider Slide Font

R15 G53 B87

PRIMARY PALETTE

SECONDARY PALETTE

Sub-headers & Emphasis Text

R64 G126 B182

Leader in Green Energy & Sustainability

BEP is the largest member by market capitalization of the S&P/TSX Renewable Energy and Clean

Technology Index.

BEP issued its inaugural green bond in July 2017, a US$475 million project financing secured

against its 360MW White Pine hydroelectric portfolio. Citing BEP's environmental stewardship,

commitment to renewable power, and use of proceeds towards renewable power generation, the

green bond received an E-1 Green Evaluation score from S&P - the highest on its scale.

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 52 hydro facilities across the US, more than any other operator,

making it the U.S. leader in low impact hydropower generation.

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.

The Brookfield Environmental Education Center was established in Guarani, Minas Gerais, Brazil,

from a partnership between Brookfield Energia Renovável and the local community. The project

aims to provide the entire population of the Pomba River Valley a place to develop environmental

education projects. To make the project sustainable, the local community was trained to manage

the Environmental Education Center and created a non-governmental organization to do it.