Presentation - Brookfield Asset Management

September 17, 2013 

INVESTOR 

DAY 

2013

Cautionary Note Regarding Forward-Looking Statements 

Note: This Presentation contains “forward-looking information” within the meaning of Canadian provincial securities laws and applicable regulations and “forwardlooking 

statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. We may make such 

statements in this Presentation, in filings with Canadian regulators or the Securities Exchange Commission (SEC), or in other communications. These forwardlooking 

statements include, among others, statements with respect to our financial and operating objectives and strategies to achieve those objectives, the 

performance of real assets, capital committed to our funds, our liquidity and ability to access and raise capital, our ability to allocate capital and capitalize on 

investment opportunities, the potential growth of our asset management business and the related revenue streams therefrom, the prospects for increasing our cash 

flow from or continued achievement of targeted returns on our investments, the development pipeline in our property, infrastructure, renewable power and private 

equity platforms, as well as the outlook for our businesses and other statements with respect to our beliefs, outlooks, plans, expectations, and intentions. 

Although we believe that our anticipated future results, performance or achievements expressed or implied by our forward-looking statements and information are 

based upon reasonable assumptions and expectations, the reader should not place undue reliance on our forward-looking statements and information because they 

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 achievements 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 our forward-looking statements and information include the 

following: economic and financial conditions in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and 

exchange rates; availability of equity and debt financing and refinancing; strategic actions including our ability to acquire and develop high quality assets; the ability 

to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; our ability to attract and retain suitable 

management; adverse hydrology conditions; the ability to continue to attract institutional investors to our funds; regulatory and political factors within the countries in 

which we operate; tenant renewal rates; availability of new tenants to fill office property vacancies; default or bankruptcy of counterparties to our contracts and 

leases; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other 

risks and factors detailed from time to time in our Management’s Discussion and Analysis of Financial Results under the heading “Business Environment and Risks” 

and in our form 40-F filed with the SEC as well as other documents filed by us with the securities regulators in Canada and the United States. 

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and 

information to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. 

Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may 

be as a result of new information, future events or otherwise. 

In this Presentation, we may use definitions that differ from the definitions used by other organizations. See page 140 for a non-exhaustive list of definitions used in 

this Presentation. The content of this Presentation includes certain qualifications, assumptions and notes set forth herein. You should refer to the latest annual 

report of Brookfield Asset Management and other continuous disclosure documents filed by Brookfield, available at www.sedar.gov and www.sec.gov/edgar, for 

more detailed information. 

Currency 

All dollar figures are in U.S. dollars, unless otherwise indicated. 

2 

| Brookfield Asset Management Inc.

Today’s Agenda 

Overview 

Real Assets 

Fundraising and Financial Results 

Bruce Flatt 

Kim Redding 

Brian Lawson 

Operations: 

Property 

Infrastructure 

Renewable Power 

Private Equity 

Summary and Questions 

Ric Clark 

Sam Pollock 

Sachin Shah 

Cyrus Madon 

Bruce Flatt 

3 


Overview 

Bruce Flatt

Our Goal 

is to be the leading asset manager 

of Real Assets 

utilizing our global operations to invest capital 

for clients at exceptional returns while 

protecting capital 

5 


And after 20 years of building, we are global, with 

100 offices or locations | ~600 investment professionals | ~24,000 operating employees 

CANADA 

$25 billion AUM 

UK & WESTERN EUROPE, 

AND THE MIDDLE EAST 


ASIA & AUSTRALASIA 


UNITED STATES 


SOUTH AMERICA 


6 


With a very simple business model 

Invest capital for clients on a value basis to earn 

exceptional risk adjusted returns 

Strategy 

Utilize our operating platforms and expertise to 

optimize returns 

Monetize assets when opportunities arise 

Objective 

In the process of delivering strong investment returns 

for clients, we are building a long-term stream of 

asset management fees for shareholders 

7 


And, our four pillar multi-fund strategy is now in place, 

but is continuing to mature. . . . . . . 

Brookfield 

(BAM) 

Flagship 

Public 

Issuers 


Property Partners 

(BPY) 

93% 65% 28% 100% 

Brookfield Renewable 

Energy Partners 

(BREP) 


Infrastructure Partners 

(BIP) 


Capital Partners 1 

Private 

Funds 


Property Funds 


Infrastructure Funds 


Private Equity Funds 

1) Privately held 

8 


$ 

As we continue to generate excess cash, 

we will utilize it to both: 

Broaden our asset management base, 

and 

Repurchase shares for value to shrink the denominator 

9 


Which positions us well for future growth 

As one of the largest global real asset managers 

There are only a few alternative asset managers with the track record, 

global platform and size that we possess 

Our global fundraising capacity and relationships with investors are 

excellent and expanding rapidly, allowing us to raise capital on a scale 

that few other managers can 

We have made substantial progress in establishing our strategy of 

creating flagship funds 

10 


And with excellent historical returns 1 . . . 

we continue to attract large amounts of capital from clients 

Vintages Gross IRR 2 

Flagship Listed Issuers 

Infrastructure (BIP) 3 2008 18% 

Renewable Energy (BREP) 4 1999 16% 

Property (BPY) 5 1989 16% 

Private Funds 

Opportunistic 2001 – 2012 26% 

Core Plus & Value Add 2003 – 2013 12% 

1) Prior performance is not indicative of future results and there can be no assurance that we will achieve comparable results or be able to avoid losses. 

2) Reflects the internal rate of return before fund expenses, management fees and carried interests for private funds and the compound annual growth rate for flagship listed funds. 

3) Performance since inception. 

4) Reflects performance since Brookfield Renewable Power Fund was listed in 1999. 

5) Reflects performance of underlying assets since 1989. 

11 


Strategic 

Opportunistic 

With respect to acquisitions of these assets, 

our investment strategies 

over the last five years, 

were focused on three investment themes 

12 


Over-leveraged developed markets 

Case study: 

• GGP 

• Babcock & Brown Infrastructure 

13 


The U.S. housing recovery 

Case study: 

• Norbord 

• Ainsworth 

• Brookfield Residential 

14 


and, natural gas related investments 

Case study: • Hydro plant acquisitions 

• Private equity investments related to natural gas 

15 


Strategic 

Opportunistic 

But we are now focused on three different themes 

which we expect to continue to be dominant 

over the next 36 months 

16 


A continued focus in Europe as the markets have 

“calmed” but asset sales must occur 

17 


The “unwind” of emerging markets 

as both currencies are down and capital is fleeing 

– generating value opportunities 

18 


And volatility in commodities, which leads to 

power, infrastructure and private equity opportunities 

19 


And the combination of our capital and operating resources 

positions us well to pursue these opportunities 

Our 600 investment professionals are around the world 

Generate a substantial pipeline of investments 

And should enable us to put our tens of billions of capital to work 

20 


So, we are well positioned for the future, with 

Strong access to capital with our fund platforms 

Momentum in private fundraising 

An established track record 

Many attractive investment opportunities 

Interests aligned with clients and investors 

21 


REAL ASSETS 

Kim Redding

Real assets are gaining institutional market share 

as traditional equity and fixed income investments no longer 

provide sufficient current income or growth potential 

Yields are low, 

Interest rates are rising, 

There could be inflation concerns, 

Growth is subdued, and 

Liability requirements are increasing 

Investors Are Seeking a New Alternative 

23 


As investors move beyond 

the “New Normal,” 

we expect Real Assets to become 

the . . . 

New Essential 

24 


Real Assets provide: 

stable cash flow streams… 

1 

Real Assets tend to generate stable cash flows 

supported by long-term agreements, 

often with pricing provisions that ensure a 

predictable and growing return over time 

25 


attractive current yields… 

2 

The relatively steady and predictable cash flows 

produced by Real Assets support 

attractive current income streams 

26 


and equity-like upside potential… 

3 

Leverage to economic growth 

enhances value on the upside 

27 


Leading to…..compelling absolute and relative returns… 

Over the last 10 years, Real Assets have produced 

impressive nominal and relative returns, 

outperforming both the global equity and global bond markets 

25.0% 

COMPARATIVE TOTAL RETURN HISTORY 

20.0% 

15.0% 

10.0% 

5.0% 

0.0% 

-5.0% 

1-Year 3-Year 5-Year 10-Year 

Bonds Timberlands Property Stocks Infrastructure Agrilands 

Source: MSCI, Barclays, Bloomberg, NCREIF, S&P Dow Jones Indices; data as of June 30, 2013. Performance of all cited indices is calculated on a total return basis with dividends 

reinvested. The indices do not include any expenses, fees or charges and are unmanaged and should not be considered investments. 

28 


…low volatility… 

The relative outperformance of Real Assets become even more impressive 

when viewed on a risk-adjusted basis 

1.80 

1.60 

1.40 

1.20 

1.00 

0.80 

0.60 

0.40 

0.20 

COMPARISON OF SHARPE RATIOS ACROSS ASSET CLASSES 

0.00 

Bonds Stocks Timberlands Property Infrastructure Agrilands 

Source: MSCI, Barclays, Bloomberg, NCREIF, S&P Dow Jones Indices; data as of June 30, 2013; Sharpe Ratio based upon 10-year average annualized total returns and standard 

deviations of performance; assumes a risk-free rate of 3.0%. Performance of all cited indices is calculated on a total return basis with dividends reinvested. The indices do not include 

any expenses, fees or charges and are unmanaged and should not be considered investments. 

29 


…portfolio diversification… 

The addition of Real Assets to a mixed-asset portfolio may lower overall 

volatility and enhance risk-adjusted returns 

CORRELATION OF REAL ASSET RETURNS WITH EQUITIES AND BONDS 

Equities 

Bonds 

Property 0.23 (0.08) 

Infrastructure (0.11) (0.05) 

Timberlands (0.05) 0.15 

Agrilands 0.11 (0.03) 

Source: MSCI, Barclays, Bloomberg, NCREIF, Preqin; represents correlation of quarterly returns for the Property, Timberlands and Agrilands index with the MSCI World Index 

(stocks) and the Barclays Global Aggregate Bond Index (bonds) from the first quarter of 2003, which is the earliest date for which data is available, through the second quarter of 

2013; the Infrastructure category represents the correlation of quarterly returns of the MSCI World Index (stocks) and the Barclays Global Aggregate Bond Index (bonds) with the 

Preqin Infrastructure Quarterly Index, which is a private infrastructure market data series, calculated using cash flow transactions and Net Asset Values as reported by over 130 

individual unlisted infrastructure partnerships; the Infrastructure category represents the correlation of returns from the first quarter of 2008, which is the earliest date for which data is 

available across all indices, through the fourth quarter of 2012. Please see the Definitions provided at the end of this presentation for a description of the indices utilized as proxies 

for each of the categories defined above. Performance of all cited indices is calculated on a total return basis with dividends reinvested. The indices do not include any expenses, 

fees or charges and are unmanaged and should not be considered investments. 

30 


…and a hedge against inflation 

Real Assets are long-lived, physical resources that provide 

a natural hedge against inflation 

0.40 

CORRELATION OF ASSET CLASSES WITH INFLATION 

0.30 

0.20 

0.10 

0.00 

-0.10 

-0.20 

Property Infrastructure Stocks Bonds 

Source: MSCI, Barclays, Bloomberg, NCREIF, S&P Dow Jones Indices, U.S. Bureau of Labor Statistics; data as of June 30, 2013; represents correlation of quarterly returns with 

historical CPI over the duration of data available for each index. Please see the Definitions provided at the end of this presentation for a description of the indices utilized as proxies 

for each of the categories defined above. Performance of all cited indices is calculated on a total return basis with dividends reinvested. The indices do not include any expenses, 

fees or charges and are unmanaged and should not be considered investments. 

31 


Cap rate spreads provide support 

Real Asset cap rates have maintained wide spreads to bond yields, 

which will provide valuation support as rates rise 

MOVEMENT OF CAP RATES RELATIVE TO BOND YIELDS 

11% 

10% 

9% 

8% 

7% 

6% 

5% 

4% 

3% 

Widest 

gap 

2% 

1% 

Dec-99 

Apr-00 

Aug-00 

Dec-00 

Apr-01 

Aug-01 

Dec-01 

Apr-02 

Aug-02 

Dec-02 

Apr-03 

Aug-03 

Dec-03 

Apr-04 

Aug-04 

Dec-04 

Apr-05 

Aug-05 

Dec-05 

Apr-06 

Aug-06 

Dec-06 

Apr-07 

Aug-07 

Dec-07 

Apr-08 

Aug-08 

Dec-08 

Apr-09 

Aug-09 

Dec-09 

Apr-10 

Aug-10 

Dec-10 

Apr-11 

Aug-11 

Dec-11 

Apr-12 

Aug-12 

Dec-12 

Apr-13 

U.S. Listed Property Average Implied Cap Rate U.S. 10-Year Treasury Rate U.S. Investment Grade Yield to Worst 

Source: Green Street Advisors, Barclays, Bloomberg, U.S. Federal Reserve; data as of June 30, 2013. 

32 


So, we believe Real Assets are uniquely positioned… 

…to generate attractive returns across various market cycles 

…to grow as a meaningful component of asset allocations 

…to become the New Essential 

33 


and therefore Real Assets are the place to be because, 

Revenue streams are impacted positively as business 

environment improves 

Fixed interest rate loans enhance equity returns 

Expenses grow slower than revenues 

Capitalization rates never decreased as much as fixed income 

investments so there is room to absorb increases in rates 

34 


Q & A

FUNDRAISING & FINANCIAL RESULTS 

Brian Lawson

Agenda 

• Review “GP” Momentum and Profitability 

• Strategy and Balance Sheet Visibility 

• Discuss Share Value Potential 

37 


Our business consists of two key components 

General Partner 

• ~$80 billion of capital managed 

• $987 million annualized fee base 1 

Invested Capital 

• $28 billion invested alongside clients and 

as principal 2 

• $2.1 billion of FFO on LTM basis 3 

Notes/Assumptions 

1) Based on current commitments and contractual arrangements. See slide 40 and 48. 

2) Based on base case valuation. 

3) Excludes unallocated interest and corporate costs. 

38 


We significantly increased fee bearing capital since year end 

$78B 

$60B 

31 

• Launch of BPY 

21 

23 

29 

• Private fund commitments 

16 18 

• New fund launches 

Dec. 2012 Jun. 2013 

Listed Issuers 

Private Funds 

Public Securities 

39 


As a result, fee related earnings have nearly doubled 

since June 2012 on an LTM basis and are tracking on an even 

higher annualized basis 

($ millions) 

2012 2013 

2013 

LTM 2 LTM 2 Annualized 3 

Management fees and IDRs $ 307 $ 442 $ 557 

Transaction and advisory 63 56 55 

370 498 612 

Direct expenses 236 278 310 

Fee related earnings 1 $ 134 $ 220 $ 302 

4 


1) Fee related earnings (“FRE”) consist of base management, transaction and advisory fees and incentive distributions (IDR’s) net of directly attributable operating costs. 

FRE do not include carried interests or similar performance based income. 

2) Twelve months ended June 30. 

3) Annualized based on capital in place as at June 30, 2013 and committed during July 2013. 

4) Based on simple average of 2011 and 2012 annual revenue. 

40 


And we have accumulated meaningful carried interests 

that have not yet been booked 

$765M 

$547M 

78 

47 

500 

687 

June 2012 June 2013 

Total Accumulated Carry 

$218M Increase 

Net of Direct Costs 


1) Management estimate of carried interest receivable under existing management arrangements based on fund valuations at the relevant date. 

2) Direct costs consist principally of associated long term incentive arrangements. 

3) $223 million increase including realized amounts and associated costs. 

41 


We have tremendous momentum as an asset manager 

$14 billion of private fund capital raised in past twelve months 

Our listed issuer strategy is fully implemented 

We have a number of competitive advantages moving forward 

42 


. . . due to the many compelling attributes 

we offer to our clients 

SCALE OF 

CAPITAL 

Size of capital which few managers can compete with 

GLOBAL 

FOOTPRINT 

Utilized to identify and acquire high-quality assets for value 

OPERATING 

PLATFORMS 

Provides market intelligence and conviction 

RANGE OF 

STRATEGIES 

Ability to invest across the real asset spectrum 

ALIGNMENT 

Interests aligned with investors at every level 

CORPORATE 

GOVERNANCE 

Robust public company compliance and governance framework 

43 


Our dedicated fundraising group 

is critical to the organization 

~20 professionals supporting fundraising and servicing private fund investors globally 

San Francisco 

Toronto 

New York 

London 

Hong Kong 

Rio de Janeiro 

Sydney 

Note: 

Domicile of current investors highlighted in blue. 

Location of sales professionals labeled by name. 

44 


We have diversified our 

institutional investor base 

• Private Funds investor 

base of 200, an increase 

from ~40 in 2008 

• ~30% of clients invest in 

multiple Private Funds 

• $5 billion increase in 

commitments less than 

$200 million since 2008 

Committed Private Fund Capital by 

Size of Individual Commitments 

13% 

15% 

30% 

2008 Q2 2013 

Moving forward…our goal is to substantially increase 

fee bearing capital over the next five years 

$126B 

$78B 

49 

31 

47 

29 

18 

30 

2013 2018 


Private Funds 

Public Securities 

CAGR 

10% 


1) Listed entities target distribution growth: BPY – 4%; BREP – 4%; BIP – 5%. 

2) Listed entities equity issuances of $500 million each per annum for the next four years; $750 million each in 2018. 

3) Private fund and public security fee bearing capital growth at ~10% per annum. 

46 


Which more than triples our fee related earnings 

Total Revenues 

$1,350M 

Fee Related Earnings 

$675M 

$498M 

1,165 

47 

Management Fees 

IDR’s 

418 

56 

24 

Transactions and Advisory 

Fee Related Earnings (Net of Direct Costs) 

| Brookfield Asset Management Inc. 

70 

115 

$220M 

2013 2018 2013 2018 

CAGR 

(Fee related 

earnings) 

25% 


1) 2013 based on LTM; 2018 based on annualized results. 

2) Listed entity base fee of initial amount plus 125 bps on any increases in capitalization. 

3) Private funds target weighted average base fee of 135 bps by 2018. 

4) IDRs based on a 15% participation in distributions above initial threshold and 25% beyond a second threshold, determined on a per share basis. 

5) Assumes listed entity dividend growth at mid-point of target distribution growth rates.

And increases in private fund capital provide a greater 

opportunity to earn carried interests, if we meet returns 

Target Annualized Carried Interest 

$610M 

$268M 

45 

223 

$375M 

112 

263 

183 

427 

2013 LTM 2013 2018 

Target Carried Interest 

CAGR 18% 

Net of Direct Expenses 


1) 2018 target carried interest assumes average yield of approximately 200 bps, based on prescribed carried interest for private funds and target 

gross return. Includes only third party capital. 

48 


All of which leads to increased GP values 

($ millions) 2013 3 2018 4 

Fee related earnings $ 4,400 $ 12,600 

Carried interest, net 2,230 4,270 

6,630 16,870 

Accumulated carry, net 687 1,700 

GP values 1,2 $ 7,317 $ 18,570 

CAGR 20% 


1) Multiple of 20X net base fees and IDRs and 10X carried interest net of performance compensation accrual. 

2) Applied to third party fees and carried interests. 

3) Based on LTM results. 

4) Based on projected annualized results. 

49 


Our listed issuer strategy 

is in varying stages of development… 

Listed Private Ownership 

Infrastructure 

 

28% 

Power 

 

65% 

Property Launched 

 

93% 

Private Equity n/a 

 

n/a 

50 


. . . and gives us tremendous access to capital 

Listed issuers • Perpetual capital 

• Access to public capital markets 

Private funds • Committed long-term capital 

• Access to institutional capital 

51 


In addition, our listed issuer strategy has greatly simplified 

our balance sheet and increased transparency 

IFRS Value 

As at June 30, 2013 

($ billions) 

Deconsolidated 


Proforma 

Balance Sheet 1 Listed Unlisted 

Invested capital 

Real assets $ 18.9 $ 17.7 $ 1.2 

Private equity and services 3.8 2.0 1.8 

Corporate 1.5 1.0 0.5 

24.2 $ 20.7 $ 3.5 

Leverage (7.0) 

17.2 

General partner 0.2 

Equity $ 17.4 


1) Adjusted to reflect sales of Longview Fibre and Longview Timber, and contingent swap settlement, net of associated deferred taxes. 

52 


85% of invested capital is 

held through listed investments 


($ billions) 

Proforma 

IFRS 

Value 1 

Base 

Case 

Value 2 

Listed $ 20.7 $ 23.6 

Unlisted 3.5 4.2 

$ 24.2 $ 27.8 

Base Case Value 

3% 

12% 

85% 

Listed – Market values 2 

Unlisted – Appraisal basis 

Unlisted – Other basis 


1) Adjusted to reflect sales of Longview Fibre and Longview Timber and contingent swap settlement, net of associated deferred taxes. 

2) Based on September 13, 2013 quoted market values, with the exception of BPY which is presented at its IFRS value given short trading history. 

53 


Listed holdings provide visibility 

for investors and potential liquidity for our balance sheet 

($ billions) 


Proforma 

IFRS Value 1 

Base Case 

Value 2 

BPY $ 11.1 $ 11.1 

BREP 3.9 4.5 

BIP 1.4 2.1 

16.4 17.7 

Other 4.3 5.9 

$ 20.7 $ 23.6 


1) Based on June 30, 2013 balance sheet, adjusted to reflect sales of Longview Fibre and Longview Timber and contingent swap settlement, net of associated deferred taxes. 

2) Based on September 13, 2013 quoted market values, with the exception of BPY which is presented at its IFRS value given short trading history. 

54 


Unlisted assets represent only 15% of invested capital 

($ billions) 

Proforma 

IFRS 1 

Base Case 

Values 

Description of Asset 

Appraised value $ 1.5 $ 1.5 Commercial properties 2 

Sustainable resources 2 

Private equity investments 3 

Other businesses 2.6 3.3 Power contracts 4 

Service business 5 

Working capital 6 

Non-recourse 

financing 

(0.6) (0.6) 

$ 3.5 $ 4.2 


1) Adjusted to reflect sales of Longview Fibre and Longview Timber and contingent swap settlement, net of associated deferred taxes. 

2) Carried at appraised value on BAM financial statements. 

3) Appraised values reported to fund investors and audited annually. 

4) Base case value excludes deferred tax liabilities ($500 million) and deferred revenues ($200 million) that are included in IFRS values, and includes management estimate of 

value attributable to marketing initiatives and recontracting potential ($600 million) that are not included in IFRS values. 

5) Carried at historical value, and intangible assets tested for impairment quarterly. Base case value includes $200 million premium for property services franchise value. 

6) Base case value excludes deferred tax asset. 

55 


Furthermore…investing through listed entities provides us 

with the ability to redeploy substantial capital 


($ billions) 

Currently 

Held 

“Required” 

Hold 

“Surplus” 

Flagship issuers $ 17.7 $ 6.6 $ 11.1 

Other listed 5.9 3.0 2.9 

$ 23.6 $ 9.6 

$ 14.0 


1) Assumes 25% minimum ownership for listed issuers and 50% of other listed entities based on management’s assessment of business objectives. 

56 


Yet despite this progress…our share price still allows 

investors to buy into our franchise at a meaningful discount 

to base case share value 

IFRS 

Base Case Value 


($ billions, except per share amounts) Total Total Per Share 

General Partner (“GP”) $ ─ $ 7 $ 11 

Invested Capital (“LP”) 17 21 34 

$ 17 $ 28 $ 45 

Recent share price $ 36 

Discount 20% 

57 


We believe our base case represents 

a very conservative valuation 

Recent 

Share Price 

Base Case 

Value 

Potential 

Value 

$36 

$45 

58 


We intend to achieve premium values in several ways, 

which are not reflected in base case value 

More rapid expansion of fee bearing capital 

Enhanced investment returns through economic growth, 

operational improvements and development initiatives 

Redeployment of surplus capital 

59 


Base case GP projections assume 

relatively modest growth in capital 

Projected 2018 Values 

Growth rate 10% 15% 

FRE margin 50% 60% 50% 60% 

Fee bearing capital (billions) $ 126 $ 126 $ 155 $ 155 

Projected fee base 

Fee related earnings 675 815 845 1,010 

Target carry, net 427 427 550 550 

GP Valuation 1,2 (billions) $ 18.6 $ 21.3 $ 23.0 $ 26.4 

Per BAM share 3 $ 28 $ 33 $ 35 $ 40 

Base Case 

Potential Outcomes 


1) Including accumulated carry of $1.7 billion at 10% and $2.0 billion at 15%. 

2) Applied to third party fees and carried interests. See slide 49 for methodology. 

3) Assumes no change in shares outstanding. 

60 


Invested capital should benefit from 

economic growth and improved fundamentals 

Property – Increased occupancy and in-place rents 

Power – Higher energy prices and cost optimization 

Infrastructure – Pass through of inflation and GDP increases 

Private Equity – Continued growth in operating earnings from U.S. 

housing related business, capital recycling 

Across the business – Development and acquisition initiatives 

61 


Finally…our ability to reallocate capital 

allows us to invest at higher returns 

Expand our business…to accelerate growth of asset 

management activities…and fees 

and 

Stock buybacks…if our shares continue to trade at a 

meaningful discount 

62 


As in the past…we hope to exceed our target of a 

12-15% annualized return on invested capital 

Growth Rate 

2013 Base 

Case Values 

Potential 2018 Values 1 

10% 12.5% 15% 17.5% 

Invested 

Capital 

Per BAM Share 

$34 

$55 $61 $68 $76 


1) Determined by applying stated growth rates to 2013 base case LP value on a compound basis. 

63 


Putting these together, we have the potential to offer 

very attractive returns to shareholders 

Potential 2018 Values 

28 

33 

35 

40 

55 61 

68 

76 

BAM Potential Share Value 

$83 $94 $103 $116 

17% 19% 22% 

Total Return 2 

14% 

LP value per BAM share 2 

GP value per BAM share 


1) Refer to slide 60 for projected GP value assumptions and slide 63 for projected LP value assumptions. 

2) Assumes dividend growth rate of 7% from existing annualized dividend of $0.60 per share, relative to 2013 base case share value of $45. 

64 


Q & A

PROPERTY GROUP (“BPG”) 

Ric Clark

Agenda 

• Overview 

• Investment Profile & Performance 

• Investment Environment 

• Recent Initiatives 

• Growth Plans & Priorities 

67 


BPG is a leading global property asset manager… 

Global Investor 

Property Assets 

Performance 

$105B AUM 1 Over 300m sq.ft. ~16% gross IRR 

since 1989 

office, retail, 

multifamily and 

industrial assets 

1) Includes acquisition of IDI which has yet to close. 

68 


… with an established local presence in the 

world’s most dynamic property markets 

30 Offices | 250 Investment Professionals | 16,600 Operating Employees 

CANADA 


44 Professionals 

2,225 Employees 

UK & EUROPE 




AUSTRALIA 




UNITED STATES 




BRAZIL 




69 


BPG’s property platforms offer investors access to the firm’s 

market knowledge, execution capabilities, 

risk mitigation strategies and deal flow… 

Brookfield Property Group 

$105 BILLION 

OFFICE 

$38 BILLION 

RETAIL 

$48 BILLION 

MULTIFAMILY 

$7 BILLION 

INDUSTRIAL 

$3 BILLION (1) 

HOTEL & OTHER ASSETS 

$8 BILLION 

164 Properties 

96 million sq. ft. 

Development Potential 


174 Regional Malls 


$1.7B Re-Development 

Pipeline 

20,000 Owned Units 

52,000 Managed Units 

221 Industrial Properties 


Development Potential 


8 Hotels with 7,600 Rooms 

Office Properties 

Brazil Retail 

1) Includes acquisition of IDI which has yet to close. 

70 


… while BPG’s structure 

maximizes capital flexibility and efficiency 

BROOKFIELD PROPERTY GROUP 

Premier Asset Manager 

Brookfield Property Partners 

Brookfield Private Real Estate Funds 

$14 Billion of Fee-Bearing Capital 

• Flagship listed entity 

• NYSE / TSX listed 

• Owns interests in Brookfield’s real 

estate operating affiliates 

• Owns assets directly 

• Cornerstone LP investor in Brookfield 

sponsored real estate funds 

• $15 12 Billion active of funds Fee-Bearing Capital 

• 5 with active investment periods 

• 13 active funds 

• 5 active investment periods 

71 


With consistent growth across business cycles… 

2013 

$105B AUM 

13% CAGR 

1989 

$6B AUM 

Initiated 

Distressed 

Investing 

Launched 

Real Estate 

Fund Platform 

Launched 

Canadian 

Office Fund 

Launched 

Brazil Retail 

and U.S. 

Office Funds 

Established 

Australian 

Real Estate 

Platform 

Launched 

Real Estate 

Turnaround 

Fund to 

Capitalize on 

Global 

Distress 

Completed 

fundraising on 

$4.4 billion 

Global 

Opportunity 

Fund 

(“BSREP”) 

Launched 

Flagship 

Listed 

Property 

Entity 

$615 million $600 million $894 million $3.1 billion $4.1 billion $2.8 billion 

$1.5 billion 

committed to 

date 


Property 

Partners 

$12 billion 

1989 

2004 2005 2006 2007 2009 2013 

2013 

72 


…BPG has generated a track record of 

superior investment performance 

BROOKFIELD PROPERTY PARTNERS • $17 billion of equity invested since 1989 

• ~16% gross IRR 

PRIVATE REAL ESTATE FUNDS • $18 billion of equity raised in 13 funds since 2004 

• $13 billion of equity invested since 2004 

• 17% gross IRR 

CORE-PLUS & VALUE-ADD FUNDS • $6 billion of equity invested in 8 funds since 2004 


OPPORTUNISTIC FUNDS • $7 billion of equity invested in 5 funds since 2006 


73 


Now BPG’s private real estate funds platform has 

access to capital and ability to pursue deals 

across the risk-return spectrum 

($ billions as at Q2 2013) 

$18 

$16 

$2.7 

$14 

$12 

$4.4 

$10 

$8 

$6 

$10.9 

$4 

$2 

$0 

Core-Plus Value-add Finance Opportunistic Total 

Total Invested Capital Dry Powder Target Fund Raise 

74 


2013 was a transformative year, 

with significant growth in fee-bearing capital… 

($ millions) 

$250 

BASE MANAGEMENT FEES 1,2 

2008-2013E 

26% CAGR 

$200 

$150 

$100 

$50 

$0 

2008 2009 2010 2011 2012 2013E 

Private Funds 

Public Vehicles 

1) Fees prior to direct costs. 

2) Represents annualized figures based on actual fees of the first half of 2013. 

75 


… underpinned by the final close of BSREP, our flagship 

private real estate fund for opportunistic investment… 

• $4.4 billion final close, ahead of $3.5 billion initial target 

– BPY Investment: $1.3 billion 

– Third-party Investors: $3.1 billion 

• Largest pool of committed real estate capital raised by Brookfield 

• Second largest fund raised in the industry in 2013, and one of the largest real estate 

funds raised since 2007 

• Final close in July 2013 with 65 fund investors 

• Target 20+% returns 

76 


…and the launch of BPY, 

BPG’s flagship listed entity for commercial property investment. 

BPY’s growth potential offers significant upside 

to asset management activities 

Capital Growth 

Internally Generated Organic Growth 

New Investments 

$14 

BPY Forecast Unit Value 

$7 

$3 

$2 

$2 

$4 

$44 

$58 

$26 

Intrinsic IFRS Value 

Cash Flow 

Growth 

Development 

Recycling of 

Capital 

Scale 

Acquisition 

Equity Issuance Intrinsic Value 

(5 years) 

Capital Growth 

(50bp) 

5 Year 5 Year Growth Unit 

Price Potential Potential 

77 


2013 has been a highly successful year 

for private fundraising… 

PRIVATE FUNDS 

Target 

Raise 

Capital Raised 

to Date 

% of 

Target Raise 

($ billions) 

BSREP $ 3.5 $ 4.4 124% 

DTLA 1.1 1.1 100% 

Funds in fundraising 3.2 0.9 29% 

Total $ 7.8 $ 6.4 82% 

78 


…. for investing… 

Highlights: 

• 2013 acquisitions of IDI, Verde Realty, Gazeley platforms and BSREP result in combined 

industrial assets valued at approximately $2.6 billion, making Brookfield a top industrial 

player with 221 properties totaling 62 million square feet 

PRIVATE FUNDS 

Launch 

% of 

Investment 

Period Elapsed 

Fund 

Size 

Capital 

Committed 

to Deals 

% Capital 

Deployed 

($ billions) 

Office n/a $ n/a $ 1.0 n/a 

Retail n/a n/a 0.1 n/a 

BSREP 2012 31% 4.4 1.5 35% 

Value-Add (Multifamily) 2011 72% 0.3 0.3 92% 

Finance Fund 2011 81% 0.4 0.3 68% 

Total $ 5.1 $ 3.2 

79 


… and for capital recycling 

Asset Sales Actual Expected Total 

($ billions) Gross Net Gross Net Gross Net 

Direct investments $ 1.3 $ 0.6 $ 0.5 $ 0.2 $ 1.8 $ 0.8 

Private funds 0.1 0.1 1.1 0.7 1.2 0.8 

Total $ 1.4 $ 0.7 $ 1.6 $ 0.9 $ 3.0 $ 1.6 

80 


Looking forward, the investment environment 

continues to yield attractive opportunities 

CANADA 

• Commodities-based economy that is weakening 

• Sound financial institutions 

• Development and select acquisition opportunities 

UK & EUROPE 

• Slow growth environment 

• Political situation remains fragile 

• Banking system de-leveraging 

• Opportunistic acquisitions 

UNITED STATES 

• Economic growth accelerating 

• Real estate fundamentals 

improving at different paces 

• Decreasing distress but still 

recapitalization opportunities 

BRAZIL 

• Slowing growth and stubbornly high inflation 

• Opportunities emerging as foreign capital 

leaves 

• Growth of middle-class fuelling demand 

AUSTRALIA 

• Commodities-based economy with sound 

financial institutions 

• “Flight to quality” pushing pricing for highquality 

assets 

• Development and select acquisition 

opportunities 

81 


Growth Plans & Priorities 

General 

• Pursue accretive acquisitions in the world’s most resilient markets 

• Manage funds to maximize value for all stakeholders 

• Ensure strong investment performance to drive ROE’s, incentive distributions and 

performance fees 

Brookfield Property Partners 

• Enhance shareholder base and analyst coverage 

• Seek transformative transactions to launch BPY 

• Reduce significance of public company investments 

Private Funds 

• Continue monetization of stabilized investments in mature funds 

• Continue to deploy $4.4 billion of dry powder in active funds 

82 


Q & A

INFRASTRUCTURE GROUP 

Sam Pollock

Agenda 

• Overview 

• Recent Accomplishments 

• Brookfield Infrastructure Partners L.P. 

• Financial Performance 

• Priorities 

85 


We are a leading global infrastructure asset manager 

11 Offices | Over 100 Corporate Professionals | 5,000 Operating Employees | $24 Billion AUM 

NORTH AMERICA 


EUROPE 


Transport 

30 ports, 3,200 km 

of toll roads and 

5,100 km of rail 

Utilities 

9,900 km of 

transmission lines 

and 2.5 million 

connections 

Energy 

Over 15,000 km 

of pipelines and 

300 million Bcf of 

storage capacity 

SOUTH AMERICA 


AUSTRALASIA 


Sustainable Resources 

More than 3 million 

acres of freehold 

timberlands 

86 


We operate a diversified multi-fund platform. . . 

Brookfield Infrastructure Group 

Brookfield Public Issuers 

Brookfield Private Funds 

Vehicle 

Market 

Cap 1 

($ millions) 

Brookfield’s 

Anchor 

Investment 

Strategy 

Committed 

Capital 

($ millions) 

Brookfield’s 

Anchor 

Investment 

Brookfield Infrastructure 

Partners L.P. $7,700 30% 

Acadian Timber Corp. 200 45% 

$7,900 

Global Infrastructure 2 $ 6,700 25%-40% 

Sustainable Resources 2,400 18%-31% 

Transmission 1,400 28% 

$10,500 

1) As of August 30, 2013. 

2) Includes capital raised in Funds that have not closed. 

87 


…and a matrix organization that leverages 

Brookfield’s operating platforms 

Infrastructure Investment Committee 

Average 27 years investment experience and 18 years with Brookfield 

CEO, Infrastructure BAM Corporate Country Heads 

Sector Managing Partners 


Transport Utilities Energy Sustainable Resources 

Regional Investment & Asset Management Teams 


North America Europe South America Australasia 

Extensive Resources from Brookfield’s Infrastructure Operating Platform 

6,000 local infrastructure operating professionals globally 

Corporate Group 

Senior Operations 

Executives 

Development and 

Construction 

Economic Analysis 

88 


To date, our flagship private funds 

and public vehicles have performed very well 

FLAGSHIP LISTED ENTITIES 

Market 

Annualized Total Return 

Ticker Symbol Capitalization Vintage 1 Yr 3 Yr 5 Yr 

($ millions) 

Brookfield Infrastructure Partners BIP $ 7,700 2008 15% 39% 20% 

Acadian Timber Corporation ADN 200 2009 18% 37% 12% 

FLAGSHIP PRIVATE FUNDS & INVESTMENTS 

Committed/ 

Pledged Capital 

($ millions) 

Vintage 

Gross 

IRR 

Net 

IRR 

Americas Infrastructure $ 2,655 2010 17% 12% 

Timberlands 2,400 2008 – 2013 8% 7% 

Transmission 1,400 2007 15% 14% 

Notes and Assumptions: See slide 138-139. 

89 


Here are some of our recent accomplishments 

• Raised $5.7 billion of capital from institutional investors and equity markets 

• Sold $4.7 billion of timber and non-core assets 

• Completed $5.5 billion of debt financings at attractive terms 

• Increased Brookfield Infrastructure Partner’s FFO by 62% year over year 

• $4.9 billion of assets acquired in the past 12 months 

90 


Some significant investments in the last 12 months are… 

Brookfield Rail Expansion 

Brazilian Toll Roads 

5,100 km of tracks 

3,200 km, 9 concessions 

A$600 million $2.2 billion 

UK Regulated Distribution 

District Energy 

Over 1 million connections Serves over 180 customers in urban CBDs 1 

91 

| Brookfield Asset Management Inc. 

$1.3 billion $600 million 2 

1) Central Business District (“CBD”). 

2) Includes capital invested and committed to transactions that are expected to close by end of year.

It remains a compelling time to invest 

in the infrastructure sector 

• Significant opportunities to deploy capital at good values 

– Commodities pullback 

– Excess capacity in global container vessel market 

– Deleveraging of construction companies 

– Emerging markets are capital constrained 

• Government privatization – global phenomena 

… and we have $6.7 billion of ‘dry powder’ to invest 

92 


Brookfield Infrastructure Partners offers an 

attractive risk-adjusted total return 

SECURE DISTRIBUTION: 

Profile 

~4.7% yield 1 

Current distribution 

~55% of FFO 

Low payout ratio 

Credit rating BBB+ 

Conservative capital structure 

High quality cash flow 

~90% 

Regulated or contracted 

~70% 

Indexed to inflation 

~60% 

With no volume risk 

LONG-TERM DISTRIBUTION GROWTH: 

• Strong organic growth prospects 

• Incremental returns from new investments 

• ~$2.5 billion of system-wide liquidity 2 

1) Calculated on the basis of quarterly distribution of $0.43 per unit and the closing price on the NYSE on August 1, 2013. 

2) Pro-forma for proceeds from sale of Australasian regulated distribution operation. 

93 


We have established a solid track record of 

FFO/unit and distribution growth 

BROOKFIELD INFRASTRUCTURE PARTNERS 

FFO/Unit 

Growth 

34% 

$3.29 1 

$2.41 $2.41 

$1.79 

13% 

$1.72 

Distribution/ 

Unit Growth 

$1.32 

$1.50 

$1.06 $1.10 

$1.03 

2009 2010 2011 2012 2013 

FFO/Unit 

Distribution/Unit 

Distributions/Unit 

1) H1 annualized. 

94 


Brookfield Infrastructure Partners has the ability to achieve 

FFO per unit growth over the long term of ~10% annually 

Internally Generated Organic Growth 

New 

Investments 

~2% 

~2-3% 

~1-2% 

~3-4% 

Inflation 

Surplus 

Capacity 

Cash Flows 

Re-invested 

New 

Investments 

95 


We have tremendous momentum going into 2014 

($ billions) 2011 2012 2013E 1 

Capital raised during year $ 0.8 $ 1.0 $ 5.7 

Capital deployed/committed 2 0.9 2.8 1.1 

Fee-bearing capital 3 9.5 11.8 15.4 

Dry powder 2.5 1.3 6.7 

1) Represents actual figures for first half 2013 and Brookfield’s estimates. 

2) Includes capital invested and committed to transactions that are expected to close by end of year. 

3) Committed third party private fund capital and 100% of the market capitalization of publicly listed funds. 

96 


Our GP revenues have grown at a 

four-year CAGR of almost 45% 

ASSET MANAGEMENT FEES 1,2 

($ millions) 

$200 

$165 

$132 

$81 

$48 

2009A 2010A 2011A 2012A 2013E 

Base - Public Vehicles Base - Private Funds Incentive Distributions Performance 

1) Fees prior to direct costs. 

2) Represents actual figures for the first half of 2013 and Brookfield’s estimates. 

97 


Where we go from here 

• Deploy $6.7 billion of dry powder 

• Raise capital for flagship funds 

• Expand investment footprint and teams into new markets 

• Establish a flagship public sustainable resources vehicle 

98 


Q & A

RENEWABLE POWER GROUP 

Sachin Shah

Agenda 

• Overview and Strategy 

• Fund Track Record 

• Investment Performance 

• The Market and our Growth 

• Priorities 

101 | Brookfield Asset Management Inc.

We manage Renewable Power Assets on a global basis 

• One of the largest public pure-play renewable power businesses in the world 

• 1,200 operating employees 

• Predominantly hydro portfolio 

$20B 

5,900 84% 

ASSETS UNDER 

MANAGEMENT 

MEGAWATTS 

OF CAPACITY 

HYDROELECTRIC 

GENERATION 

206 generating facilities 12 markets in 3 countries Situated on 69 river systems 


Our objective is to deliver gross returns of 12-15% 

for investors in our managed funds 

Deploy capital into 

hydroelectric and 

wind opportunities 

globally 

Maintain strong 

margins 

across the cycle 

Preserve strong 

balance sheet and 

high levels of 

liquidity 

• Single assets and portfolios 

• Build expertise in new 

markets and technologies 

• Advance development 

pipeline 

• Optimize assets and control 

costs (< inflation) 

• Expect to benefit from rising 

power prices 

• Lock in value through 

Power Purchase Agreements 

• Investment grade 

balance sheet 

• Diverse sources of capital 

(public and private) 


Our record of performance is strong 

• 14 years of rising distributions and consistent growth 

• 16% annualized total return since 1999 

• Growth every year through M&A and development 

– Focused on North America and Brazil 

16% Annualized 


Resulting in favourable investment performance 

in our managed funds 

Geographic 

Focus 

AUM 

Capital Under 

Management 

Vintage 

Gross 

IRR 1 

($ billions) ($ billions) 

LISTED ISSUERS 

BRPF 

(TSX: BRC) 

BREP 

(NYSE, TSX: BEP) 

Canada $ 5 $ 2.1 1999 – 2011 16% 

Global $ 17 $ 7.6 2011 – present 15% 

DIRECT HOLDINGS 

U.S. and Brazil Americas $ 11 $ 4.0 2001 – 2011 26% 

1) Past performance is not indicative of future results, and there can be no assurance that comparable future results will be achieved. 

Any expenses, management fees and carried interest applicable to the Funds will reduce an investor’s returns. 


We continue to expand our managed capital and fees 

($ billions, except fees) 2010 2011 2012 2013 E 1 

Fee-bearing capital 

- Listed issuers $ 2.1 $ 7.0 $ 10.1 $ 10.0 

- Private funds 0.5 0.5 0.8 2.4 

Base Management Fees 2 n/a 20 M 39 M 72 M 

1) 2013 amounts are as at June 30, 2013. 

2) Fees are presented on an annualized basis for our listed issuers. 


Renewable Power is a Compelling Asset Class 

• Aging infrastructure and need for new supply 

– Most U.S. markets will have reserve margin issues by end of the decade 

– Average age of coal facilities in NEPOOL and PJM is ~ 47 years 

• Diversification of fuel risk 

– Approximately 40% of current U.S. power generation comes from coal and 

30% from gas 

– Natural gas alone cannot displace coal 

– Renewables (hydro, wind) are becoming increasingly important to diversify the 

supply mix 

• Favourable regulatory environment and widespread acceptance of climate change 

– 64 countries (including every EU country) have national targets for renewable 

energy supply 

– 37 U.S. states and nine Canadian provinces have RPS 1 or policy goals 

1) Renewable Power Standard 


Very Large and Growing Investable Universe 

• Global renewable installed capacity is growing by about 100 GW or $200 billion of new 

supply per year 

• Generation is projected to reach 6,400 TWh in 2017 from 4,540 TWh in 2011 

• Costs, production and reliability continue to improve 

RENEWABLE ELECTRICITY GENERATION: GLOBAL INSTALLED CAPACITY (GW) 

Source: BP Statistical Review of World Energy (June 2013 Edition) 

108 | Brookfield Asset Management Inc. 

TWh – terawatt hours GW - gigawatts

Investment Outlook – North America 

MARKET ENVIRONMENT 

INVESTMENT THESIS 

• Historically low power price 

environment (~$40/MWh) 

• Opportunity to buy for deep value 

(50% of replacement cost) 

• Aging infrastructure and coal 

retirement 

• Renewables are an attractive 

alternative 

• Slow economic recovery 

• Rising power prices will provide 

growing cash flows and value 

MWh– megawatt hours 


Investment Outlook – Brazil 



• Over 30 years of sustained 4% to 5% 

demand growth 

• Significant new investment needed 

(current $R entry point attractive) 

• New supply coming from expensive 

thermal generation 

• Power prices are rising and low cost 

hydros will benefit 

• Full employment and lower than 

expected GDP growth 

• Resolving electricity infrastructure 

bottlenecks will contribute to higher 

productivity and growth 


Investment Outlook – Europe 



• Balance sheet and liquidity pressures 

(Government, Utilities) 

• Asset disposition programs and 

opportunities to buy for value 

• Strong recognition and support for 

renewables 

• Need for new investment to displace 

coal and nuclear 

• Regulatory pressures in certain 

countries 

• Focus on countries with low sovereign 

risk and stable renewable policies 


̶ 

̶ 

M&A Expertise 

ORIGINATION & 

EXECUTION 

FUNDING 

COMMERCIAL & 

TECHNICAL ASSESSMENT 

Pipeline 

• Reviewed $20 billion of transactions in last 12 months 

• Executed on $2 billion of transactions in our core markets 

with BREP and private equity capital 

Strong Balance Sheet 

and Robust Liquidity 

• Investment grade balance sheet 

• NYSE / TSX listed – access to equity markets 

• $3 billion capital pool available to fund near-term 

opportunities 

BREP: $1 billion 

Private Equity: $2 billion 

Target Return 

• 12% to 15% returns 


Development Growth 

PROJECT 

IDENTIFICATION 

LICENSING & 

REGULATORY 

ENGINEERING & 

TECHNICAL 

STAKEHOLDER 

RELATIONS 

Pipeline 

Capital 

• 1,800 MW development pipeline 

• Predominantly hydro and wind 

• Built over 20 hydro and wind projects on scope, schedule and 

budget since 2003 

• $1.3 billion of projects on scope, schedule and budget over last 

18 months 

• Targeting $500 million of capital investment over next five years 

and generate $75 - $100 million of additional FFO for BREP 

Target Return 

• 15% to 20% returns 


Brookfield Renewable Energy Partners offers 

attractive risk-adjusted total returns 

SECURE DISTRIBUTION: 

Profile 

~5.4% yield 

Current distribution 

92% of generation 

Contracted and 

inflation-linked 

$32 NAV 

Trades at 

discount 

BBB credit rating 

Conservative capital 

structure 

High quality cash flow 

$575 million 

Annual FFO 

~65% of FFO 

Payout ratio 

3-5% 

Dividend growth target 

INVESTMENT ATTRIBUTES: 

• Highest quality asset class (hydro) with strong growth prospects and total return profile 

• 2 TWh of generation acquired at bottom of market with significant upside 

• $3 billion of available capital to fund growth 

• Annualized total return since inception 16% 


Brookfield Renewable Energy Partners – 

positioned for strong organic growth 

Retained 

Cash Flow 

• $100 million of cash flow retained annually in BREP to reinvest 

• Potential to increase BREP’s FFO by 2% to 3% annually 

Price Upside 

• Acquired 2 TWh at bottom of market (~ $40/MWh) in last 12 months 

• Significant upside optionality to rising prices and 8-10% FFO yields 

while we wait 

• Every $10/MWh rise in power prices increases BREP’s FFO by 3.5% 

Margin 

Enhancement 

• PPAs 1 provide for inflation-based revenue escalation 

• 14 year track record of beating inflation on costs 

1) Power Purchase Agreements 


Where we go from here 

• Take advantage of large scale opportunities to deploy capital 

– Historically low price environment in America 

– Need for infrastructure in Brazil 

– Distress in Europe 

• Re-contract PPA maturities and merchant exposures at accretive prices 

• Raise capital from assets through refinancing activities and maintain high levels of liquidity 

• Maintain our investment grade, non-recourse financing strategy and our credit ratings 


Q & A

PRIVATE EQUITY GROUP 

Cyrus Madon

Agenda 

• Private Equity Group Overview 

• Industry and Portfolio Overview 

• Current Investment Themes 

• Monetizations 

• Private Equity Outlook and Environment 

• Summary 

119 


Overview 

Brookfield’s Private Equity Group focuses on value investing 

• Traditional private equity approach in industries where we 

have expertise 

• Distress investing with an objective to control or influence 

• History of sourcing great transactions throughout market cycles 

• Strong operational skills are a significant differentiator 

120 


Assets under management has increased to 

nearly $8 billion 

Brookfield Private Equity Group 

Brookfield Private Funds 

$3.5B of AUM 

Directly Held Investments 

$4.2B of AUM 

• $2.9 billion of capital raised across three private equity funds 

• Capital raised from the first two funds is fully deployed; Fund III capital is over 45% deployed 

• Recently raised additional co-investment capital of approximately $500 million 

• Future funds will be larger 

Over time, a greater proportion of assets under management will be held through funds 

121 


We have a dedicated and growing investment team 

with extensive experience 

• Senior team and investment committee have an 

average 25 years of experience 

• Investment professionals in Canada, U.S., UK 

and Brazil 

NUMBER OF 

INVESTMENT PROFESSIONALS 

• Dedicated operations team is highly experienced in 

operational value-add and turnarounds 

– Deep operating bench across Brookfield 

businesses 

– Increasing presence in UK to pursue 

dislocation in European markets, and adding 

a dedicated team in Australia 

6 

13 

35 

2001 2006 2013 

122 


Brookfield Private Equity Group has generated 

consistently strong results 

• Net outperformance of 16% versus the S&P 500 over 12 years 

• Top quartile performance among North American private equity funds 1 

• Fund performance continuing to improve as portfolio matures 

• No realized losses to date 

REALIZED/SUBSTANTIALLY REALIZED INVESTMENTS 2 

10 investments 

REALIZED AND UNREALIZED INVESTMENTS 

All investments 

27.3% 

3.0x 

$2.3B 

20.2% 

$0.8B 

4.3% 

Capital Invested 

Total Value 

Brookfield PE 

Funds (Gross) 

Brookfield PE 

Funds (Net) 

S&P 500 

1) Source: Report by LP Capital. 

2) Includes only fully realized investments and investments which have been substantially monetized. 

123 


We have a consistent and proven approach to investing 

over decades and throughout market cycles 

ACQUIRE FOR VALUE 

Invest at a discount to intrinsic value 

ACQUIRE GREAT ASSETS 

Look for great assets that are undermanaged 

FOCUS ON OPERATIONS 

Generate returns by altering business strategies and repositioning businesses 

MITIGATE MARKET TIMING 

TARGET SELECT 

TRANSACTIONS 

Use different approaches in order to make successful investments during all market 

environments 

Pursue transactions where asset values are less transparent 

INVEST WITH CONFIDENCE 

Focus on industry sectors we know well, enabling us to take a contrarian view 

REDUCE FINANCIAL RISK 

Reduce volatility and risk by ensuring companies have sustainable capital structures 

124 


Our deal sourcing capability is a 

distinct advantage in identifying opportunities 

• Pro-active approach to sourcing/screening – leveraging Brookfield’s global platforms 

which have 600 professionals worldwide 

• We reviewed over 50 investment opportunities during the last 12 months 

• Three of these became investments, one will close in the coming weeks, and several 

others are currently being pursued 

• Distress debt knowledge provides a differentiated approach 

• Long-standing relationships throughout the investment community 

125 


Industry Overview 

FOREST PRODUCTS 

BUILDING PRODUCTS 

BUSINESS AND 

FINANCIAL SERVICES 

CONSTRUCTION 

AND ENGINEERING 

PACKAGING AND 

SPECIALTY PAPER 

METALS AND 

MINING 

ENERGY 

126 


Portfolio Overview 

127 


Portfolio performance continues to improve 

LTM REVENUE GROWTH 

LTM EBITDA GROWTH 

4% 

5% 

4% 

24% 24% 

32% 

2% 

3% 

16% 

0% 

Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 

Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 

Note: Revenue and EBITDA growth are for fund portfolio investments. 

128 


Meaningful Growth in Fees 

BASE MANAGEMENT FEES 1 

($ millions) 

PERFORMANCE FEES 1,2 

($ millions) 

28 

32 

318 

20 

21 

22 

246 

178 182 

80 

76 

79 

13 20 20 

2009 2010 2011 2012 2013F 

2009 2010 2011 2012 H1-13 

Cumulative realized performance fees 

Cumulative performance fees 

1) Base management and performance fees include amounts related to Brookfield's investments in funds but do not include any amounts accrued in relation to direct 

investments and Brookfield's co-investment capital. 

2) Performance fees are not recorded in Brookfield's IFRS financial statements as realized until they are no longer subject to clawback. 

129 


We are focused on select investment themes 

INVESTMENT THEME 

RECENT INVESTMENTS 

Distressed Sellers 

• Depressed natural gas prices have forced E&P 

companies to sell assets 

Corporate Carve Outs 

• Assets trading at a significant discount due to 

operational weakness 

Commodities Weakness 

• Financing markets are closed for commodity 

producers and related businesses 

• Distress opportunities in merchant power 

generation 

Capital Markets Weakness 

• Privatize out of favour E&P companies 

130 


We have completed $1.3 billion of monetizations 

over the past 12 months, realizing substantial gains 

for investors and locking in strong performance 

• Longview Fibre 

• Ainsworth Lumber 

• Western Forest Products 

• Norbord 

• Armtec 

131 


Successful Monetizations 

LONGVIEW FIBRE 

• Originally purchased in 2007 

• Increased EBITDA from $40 million to $160 million through multi-year operational 

turnaround 

• Sold Longview in July 2013 for $1 billion 

• Realized cumulative proceeds of over $1.1 billion, generating an IRR of 70% and an 

investment multiple of 10x 

132 


Successful Monetizations 

AINSWORTH LUMBER 

• Brookfield led the recapitalization of Ainsworth Lumber, a North American OSB producer 

in 2006 

• Thesis: acquire high quality assets amid a housing slowdown and depressed prices 

• Undertook a major repositioning of the business 

• The ensuing recession enabled us to increase our stake at very attractive prices 

• Recently entered into a definitive agreement to sell Ainsworth to Louisiana Pacific 

Corporation 

• Brookfield to receive cash and share proceeds of approximately $500 million 

133 


The current outlook and 

environment is favourable for our business 

CURRENT MACRO OUTLOOK 

• U.S. economic recovery ongoing – but growth is slow 

• European bank deleveraging 

• Housing continues positive trend 

• Unsustainably low interest rate environment 

• Cheap energy is driving manufacturing and chemicals 

in the U.S. 

• Capital markets are strong – good market for exits 

• Opportunities for corporate carve outs as companies reposition 

• Mining and metals, natural gas and merchant power generation remain out of favour 

134 


The Brookfield Private Equity Group provides 

excellent investment opportunities for our clients 

• Proven team 

• Differentiated approach 

• Strong track record and history of value creation 

• Deep and broad operations experience 

• Attractive fundamentals for our business approach 

• Strong networks across Brookfield with strategic counterparties, 

lenders and intermediaries 

135 


Q & A


Q & A

Notes, Assumptions and Definitions 

• The following indices have been utilized to measure and represent the performance of Real Assets, unless otherwise noted. 

Property: NCREIF Property Index (data availability begins in 1Q 1978) 

Infrastructure: Dow Jones Brookfield Global Infrastructure Composite Index (4Q 2002) 

Timberlands: NCREIF Timberland Index (1Q 1987) 

Agrilands: NCREIF Farmland Index (1Q 1991) 

Stocks: MSCI World Index (1Q 1978) 

Bonds: Barclays Global Aggregate Bond Index (1Q 1990) 

• While a reliable index of Renewable Power performance with a meaningful track record does not yet exist, these assets are considered to be part of the global infrastructure 

investible universe, as they share many of the same underlying drivers of supply and demand. Accordingly, we believe the results produced by an analysis of global infrastructure 

performance offer a valuable representation for Renewable Power assets. 

• The NCREIF Property Index is a quarterly time series composite total rate of return measure of investment performance of a very large pool of individual commercial real estate 

properties acquired in the private market for investment purposes only. All properties in the NPI have been acquired, at least in part, on behalf of tax-exempt institutional investors 

- the great majority being pension funds. As such, all properties are held in a fiduciary environment. 

• The Dow Jones Brookfield Global Infrastructure Composite Index is calculated and maintained by S&P Dow Jones Indices and comprises infrastructure companies with at least 

70% of its annual cash flows derived from owning and operating infrastructure assets, including master limited partnerships. Any comparisons, assertions and conclusions 

regarding the performance of the Dow Jones Brookfield Global Infrastructure Composite Index during the time period prior to its initial calculation on July 14, 2008 is based on 

back-testing (i.e., calculations of how the index might have performed during that time period if the index had existed). Back-tested performance information is hypothetical and 

based on index methodology applied and calculated by S&P Dow Jones Indices and is provided solely for information purposes. 

• The NCREIF Timberland Index is a quarterly time series composite return measure of investment performance of a large pool of individual timber properties acquired in the private 

market for investment purposes only. All properties in the Timberland Index have been acquired, at least in part, on behalf of tax-exempt institutional investors - the great majority 

being pension funds. As such, all properties are held in a fiduciary environment. 

• The NCREIF Farmland Index is a quarterly time series composite return measure of investment performance of a large pool of individual agricultural properties acquired in the 

private market for investment purposes only. All properties in the Farmland Index have been acquired, at least in part, on behalf of tax-exempt institutional investors - the great 

majority being pension funds. As such, all properties are held in a fiduciary environment. 

• The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. 

• The Barclays Global Aggregate Bond Index is a market capitalization-weighted index, comprising globally traded investment grade bonds. The index includes government 

securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturities of the bonds in the index 

are more than one year. 

• The S&P 500 Total Return Index is the total return version of the S&P 500 Index. Dividends are reinvested on a daily basis and the base date for the index is January 1, 1988. All 

regular cash dividends are assumed reinvested in the S&P 500 Index on the ex-date. Special cash dividends trigger a price adjustment in the price return index. 

• The Barclays U.S. Aggregate Bond Index is a market capitalization-weighted index, comprising investment grade bonds traded on U.S. exchanges. The index includes 

government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturities of the bonds 

in the index are more than one year. 

• The Preqin Infrastructure Quarterly Index is calculated on a quarterly basis using data from Preqin's Infrastructure Online product. The models use quarterly cash flow transactions 

and NAVs reported for over 130 individual unlisted infrastructure partnerships. 

• Sharpe Ratio is a measure of the excess return (or risk premium) per unit of risk (measured by standard deviation) in an investment asset or a trading strategy. 

• Standard Deviation measures the degree to which an investment’s return varies from its mean return. 

138 


• Committed/Pledged Capital includes original committed/pledged capital, including current capital available for commitments and capital that may no longer be available given the 

mandate and limitations of each product. 

• Performance reflects the investments' performance from initial investment/commissioning date to June 30, 2013. Past performance is not indicative of future results, and there 

can be no assurance that comparable future results will be achieved. There can be no assurance that unrealized investments will generate comparable results or that BIF will be 

able to avoid losses. Any fund expenses, management fees and carried interest applicable to the Fund will reduce an investor’s returns. 

• “Gross IRR” reflects performance before fund expenses, management fees, and carried interest. "Net IRR" reflects performance taking into account expense and fees. 

• Values ascribed to unrealized proceeds as of June 30, 2013 and used in determining performance results are based on assumptions that management believes are fair and 

reasonable under the circumstances. The actual returns on unrealized investments will depend on among other factors, future operating results, the value of the asset and 

market conditions at the time of dispositions, any related transactions costs and the time and manner of sale, all of which may differ from the assumptions on which the valuations 

contained herein are based. Accordingly, the actual realized returns on these unrealized investments may differ materially from the returns shown herein. The material 

assumptions made by management that were applied in determining the values and the material factors that could cause actual results to differ materially will be provided upon 

request. 

Base Case Valuation Reconciliation to Q2-2013 Deconsolidated IFRS Values 

Fair Value Adjustments 

June 30, 2013 

($ billions) 

Deconsolidated 

IFRS 

Dispositions & 

Swap Settlement 

Proforma 

IFRS 

Listed 

Appraisal 

& Other 

Base Case 

Valuation 

General Partner $ 0.2 $ ─ $ 0.2 $ ─ $ 7.1 $ 7.3 


Real Assets 

BPY 11.1 ─ 11.1 ─ ─ 11.1 

BREP 3.9 ─ 3.9 0.6 ─ 4.5 

BIP 1.4 ─ 1.4 0.7 ─ 2.1 

Other 3.2 (0.7) 2.5 ─ 1.3 3.8 

19.6 (0.7) 18.9 1.3 1.3 21.5 

Private Equity and Services 3.7 0.1 3.8 1.5 0.3 5.6 

Corporate 1.2 0.3 1.5 ─ (0.8) 0.7 

24.5 (0.3) 24.2 2.8 0.8 27.8 

Leverage (8.0) 1.0 (7.0) ─ ─ (7.0) 

Invested Capital 16.5 0.7 17.2 2.8 0.8 20.8 

Common Equity $ 16.7 $ 0.7 $ 17.4 $ 2.8 $ 7.9 $ 28.1 

Per Share $ 27 $ 28 $ 45 

139 



INVESTOR 

DAY 

2013

Presentation - Brookfield Asset Management

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