Brookfield Australia. A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property and Infrastructure Assets. Corporate Profile May 2011

Transcription

1 Brookfield Australia A GLOBAL ASSET MANAGEMENT COMPANY Focused on Property and Infrastructure Assets Corporate Profile May 2011

2 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 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 Australia 1

3 BROOKFIELD ASSET MANAGEMENT

4 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 Stable, growing cash flows and capital protection Operating expertise to enhance profitability and asset values Unique and diversified deal flow Strong investment execution capabilities and restructuring expertise Acquire assets at meaningful discounts to value React quickly to opportunities Willing to work through complex restructurings Expanding client capital under management Provides enhanced growth and additional capital to pursue acquisitions on an accretive basis Asset management fees to supplement operating cash flow per share Alignment of interests: through significant (19%) ownership of common stock by management and directors Solid capitalization, 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: 17% per annum; 10 year total return: 24% per annum) Shares currently trading below intrinsic value of $37.76 Brookfield Australia 3

5 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 (31/03/11): Stock Exchange Listings: Dividend Rate/Yield: Q Avg Daily Volume: Shares Outstanding: Stock Market Cap: NYSE, TSX, Euronext $0.52 per share /1.6% million shares million (diluted) $21 billion CAPITALIZATION Credit Ratings: Leverage: DBRS A(low) Moody s Baa2 Fitch BBB S&P A- Corporate 14% Group proportionate 45% 1 Based on March 2011 average share price SHARE VALUES BAM Share Price: (Quarter ending 31/03/11) High: US$33.90 Low: US$30.45 INTRINSIC VALUE 2 (31/03/11): Per Share: $37.76 COMMON SHARE PERFORMANCE 3 20-Year 10-Year 5-Year 1-Year BAM 16.9% 24.2% 8.5% 30.1% S&P % 3.3% 2.6% 15.6% 3 As of March 31, 2011, inclusive of dividends SHARE OWNERSHIP Management & Directors: 19% 2 Includes Net Tangible Value per share of $31.71 plus an asset management franchise value per share of $6.05 Brookfield Australia 4

6 Our Business Strategy Increase shareholder value by driving profitable growth while minimizing 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 client capital 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 capitalize 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 Grow through both acquisitions and development activity, as well as operational improvements Brookfield Australia 5

7 Focused Global Reach 100 offices or locations / 500 investment professionals / 18,000 operating employees Over $ 150 billion of assets under management GEOGRAPHIC FOOTPRINT Net Tangible Asset Value by Currency Other CANADA $21 billion AUM 3,000 Employees Property, Renewable Power & Infrastructure EUROPE & MIDDLE EAST $5 billion AUM 3,000 Employees Property & Infrastructure CAD 10% Brazil 20% 5% 50% USD 15% AUD U.S. $94 billion AUM 4,000 Employees Property, Renewable Power & Infrastructure SOUTH AMERICA $15 billion AUM 6,000 Employees Property, Renewable Power & Infrastructure ASIA & AUSTRALASIA $16 billion AUM 2,000 Employees Property & Infrastructure Brookfield Australia 6

8 Operating Platforms Emphasis on Real Assets Platform Renewable Power Hydroelectric Wind energy Commercial Properties Office, retail Development pipeline Infrastructure Utilities Transport & Energy Timberlands Residential and Agriculture Development Private Equity and Finance AUM Over $150B* Invested Capital $28B ±$16 billion $7.7 billion ±$69 billion $8.8 billion ±$17 billion $1.9 billion ±$15 billion $3.3 billion Description 167 hydroelectric power plants with ~4,300 MW capacity Two wind farms with combined 240 MW of capacity, and three wind projects totalling 367 MW ~87 million sq. ft. of office space and ~175 million sq. ft of retail space globally Premier facilities representing critical backbone of economic activity Ports, rail lines, energy transmission and timber Combination of regulated rate base and contracted revenues 60 million sq. ft. of residential condos 124,000 lots for residential land 370,000 acres of agricultural land ±$8 billion $2.2 billion Bridge lending, real estate finance and restructuring Public Securities ±$21 billion $ Fixed income, real estate and infrastructure securities * Includes $5 billion of cash and other assets Brookfield Australia 7

9 BROOKFIELD IN AUSTRALIA

10 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 Brookfield Australia 9

11 Operating Platforms Australia Platform Infrastructure Utilities Fee for Service Commercial Properties Office, retail Development pipeline AUM A$13B ±$5 billion ±$6 billion Description 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 37 properties, comprising over 11 million sqf 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 1 development project under construction with 3 in the pipeline totalling more than 1.6 million sqf of development potential Construction Construction and Development Engineering and Infrastructure ±$1.5 billion Total work in hand of $5.4 billion across Australia Residential Development Apartments Communities Services Real Estate Facilities Management Project Management ±$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 Integrated real estate, facilities management and project management services across the commercial property, infrastructure and residential market sectors More than 22 million sqf and 2,000 leases/licences managed on behalf of external clients Brookfield Australia 10

12 Brookfield in Australia and New Zealand AUM: $13 billion ~2,200 operating employees incl. 65 investment professionals 7 Offices/locations Queensland Commercial Properties 1.6 m sqf DBCT 85 mtpa coal terminal Construction workbook $598m Residential projects 1,017 units 2,407 lots New South Wales Commercial Properties 6.5 m sqf Construction workbook $1,138m Residential projects 1,533 units Western Australia Commercial Properties 1.2 m sqf Brookfield Rail 5,200 km rail network Construction workbook $2,628m Residential projects 3,745 lots 45 units Victoria Commercial Properties 2.3 m sqf Construction workbook $957m Residential projects 1,230 lots Residential South Australia 111 units Tasmania New Zealand Powerco 420,000 connections Commercial Property 2.2 m sqf Brookfield Utilities 8,700 connections Brookfield Australia 11

13 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 $3.7 billion of financings in the last 12 months (June 2010 May 2011) across the commercial, residential and infrastructure businesses to further strengthen the capital structure across the Group. Brookfield Australia 12

14 Significant Growth Opportunities Internal Growth Organic Growth Initiatives Acquisitions Locked-in contracts and regulated rate base businesses Rollover of existing leases/contracts at higher market rates Increased contribution from short-term businesses as economy recovers Power: Nearly 500 MW of hydro & wind under/near construction Property: 1.6 M sq. ft. of active developments; 88% leased Infrastructure: Upgrades, expansions and new large scale developments to meet increased demand Additional assets in core platforms Complementary platforms New geographic markets Asset Management Increasing base of management and performance fees Expanding base of institutional clients Pipeline of product offerings attractive to investors Brookfield Australia 13

15 Flagship Assets Commercial, Infrastructure, Construction, Residential Property City Square, Perth Infrastructure Dalrymple Bay Coal Terminal (DBCT), North Queensland Construction Fiona Stanley Hospital, Perth Residential Vale masterplanned community, 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 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 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. Brookfield Australia 14

16 Flagship Assets Commercial, Infrastructure, Construction, Residential Property One Shelley Street, Sydney Infrastructure Brookfield Rail, Western Australia Construction Hilton Surfers Paradise Hotel and Residences Residential Portside 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. Brookfield Rail is a rail infrastructure owner and rail provider with a long term arrangement to lease track from the WA Government. Brookfield Rail operates approximately 5,100 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. Brookfield Australia 15

17 Active Development Pipeline PROPERTY City Square, Perth Latest in corporate workplace design and state-of-the-art building enhancements Construction program is on track with completion targeted for early % leased BHP, PwC and Barrick Gold. Retail leasing commenced City Square South, Perth Acquired in October 2010 Potential to develop 30,000 sqm commercial office tower 405 Bourke Street, Melbourne Initial planning approval in 2009 Improved development plan to be submitted in 2011 Bishops See North, Perth Planning approved for approximately 45,000 sqm development Potential to build up to 70,000 sqm INFRASTRUCTURE Brookfield Rail upgrade and expansion Expansion into mid-west in support of the iron-ore fields provides major growth opportunities Potential rail expansion serving two customers with significant iron-ore projects projected to: o Increase throughput by 14 million tonnes per annum o Double current EBITDA of Brookfield Rail at capital costs of ~ A$500 million o Generate unlevered return on investment of more than 15% Brookfield Australia 16

18 In Summary Brookfield is very well positioned in this environment Substantial liquidity and consistent access to capital with expanding client 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 Brookfield Australia 17

19 APPENDIX

20 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 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. Brookfield Australia 19

21 Investor Relations Contacts Contact Title Address Phone Number Brian Kingston Senior Managing Partner Russell Proutt Chief Financial Officer russell.proutt@au.brookfield.com Kerrie Muskens Head of Marketing and Communications kerrie.muskens@au.brookfield.com Brookfield Australia 20