Brookfield Renewable Partners (BEP)/media/Files/B/Brookfield...Tax profile of distributions Benefits...
Transcript of Brookfield Renewable Partners (BEP)/media/Files/B/Brookfield...Tax profile of distributions Benefits...
Brookfield Renewable Partners (BEP)
CORPORATE PROFILE
AUGUST 2020
2
Cautionary Statement Regarding Forward-Looking Statements
This presentation contains forward-looking statements and information, within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities
Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any
applicable Canadian securities regulations, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts,
projections, guidance or other statements that are not statements of fact. Forward-looking statements in this presentation include statements regarding the quality of Brookfield Renewable’s assets and the
resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance and payout ratios of FFO (as defined below), expected liquidity, the outlook in our core markets, including
North America, Europe, Latin America, China and India expected impact of inflation on revenue and FFO, target annual equity deployment, returns and costs reductions, future commissioning of assets, the
contracted nature of our portfolio, technology diversification, acquisition and investment opportunities, financing and refinancing opportunities, proceeds from opportunistically recycling capital, future energy
prices and demand for electricity, achieving long-term average generation, project development and capital expenditure costs, energy policies, economic growth, growth potential of the renewable asset class,
the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewable’s access to capital and liquidity. In some cases, forward-looking statements can be identified by the use of
words such as “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes”, “potentially”, “tends”, “continue”, “attempts”, “likely”, “primarily”, “approximately”, “endeavours”, “pursues”, “strives”,
“seeks”, “targets”, “believes”, “deliver”, “growth”, “advance” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be
taken, occur or be achieved. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information in this presentation
are based upon reasonable assumptions and expectations, we cannot assure you that such expectations will prove to have been correct. You should not place undue reliance on forward-looking statements
and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from
anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: changes to hydrology at our hydroelectric facilities, to
wind conditions at our wind energy facilities, to irradiance at our solar facilities or to weather generally, as a result of climate change or otherwise, at any of our facilities; volatility in supply and demand in the
energy markets; our inability to re-negotiate or replace expiring power purchase agreements on similar terms; increases in water rental costs (or similar fees) or changes to the regulation of water supply;
advances in technology that impair or eliminate the competitive advantage of our projects; an increase in the amount of uncontracted generation in our portfolio; industry risks relating to the power markets in
which we operate; the termination of, or a change to, the MRE balancing pool in Brazil; increased regulation of our operations; concessions and licenses expiring and not being renewed or replaced on similar
terms; our real property rights for wind and solar renewable energy facilities being adversely affected by the rights of lienholders and leaseholders that are superior to those granted to us; increases in the cost
of operating our plants; our failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failures, including relating to wind turbines and solar panels; dam failures and the
costs and potential liabilities associated with such failures; force majeure events; uninsurable losses and higher insurance premiums; adverse changes in currency exchange rates and our inability to effectively
manage foreign currency exposure; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; disputes, governmental and regulatory
investigations and litigation; counterparties to our contracts not fulfilling their obligations; the time and expense of enforcing contracts against non-performing counter-parties and the uncertainty of success; our
operations being affected by local communities; fraud, bribery, corruption, other illegal acts or inadequate or failed internal processes or systems; our reliance on computerized business systems, which could
expose us to cyber-attacks; newly developed technologies in which we invest not performing as anticipated; labor disruptions and economically unfavorable collective bargaining agreements; our inability to
finance our operations due to the status of the capital markets; operating and financial restrictions imposed on us by our loan, debt and security agreements; changes to our credit ratings; our inability to identify
sufficient investment opportunities and complete transactions; the growth of our portfolio and our inability to realize the expected benefits of our transactions or acquisitions; our inability to develop greenfield
projects or find new sites suitable for the development of greenfield projects; delays, cost overruns and other problems associated with the construction and operation of generating facilities and risks associated
with the arrangements we enter into with communities and joint venture partners; Brookfield Asset Management’s election not to source acquisition opportunities for us and our lack of access to all renewable
power acquisitions that Brookfield Asset Management identifies; we do not have control over all our operations or investments; political instability or changes in government policy, or unfamiliar cultural factors;
foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; changes to government policies that provide incentives for renewable energy; a decline in the value of
our investments in securities, including publicly traded securities of other companies; we are not subject to the same disclosure requirements as a U.S. domestic issuer; the separation of economic interest from
control within our organizational structure; future sales and issuances of our limited partnership units, preferred limited partnership units or securities exchangeable for our limited partnership units, or the
perception of such sales or issuances, could depress the trading price of our limited partnership units or preferred limited partnership units; the incurrence of debt at multiple levels within our organizational
structure; being deemed an “investment company” under the U.S. Investment Company Act of 1940; the risk that the effectiveness of our internal controls over financial reporting; our dependence on Brookfield
Asset Management and Brookfield Asset Management’s significant influence over us; the departure of some or all of Brookfield Asset Management’s key professionals; changes in how Brookfield Asset
Management elects to hold its ownership interests in Brookfield Renewable; Brookfield Asset Management acting in a way that is not in the best interests of Brookfield Renewable or our unitholders; and other
factors described in this prospectus, including those set forth under “Risk Factors” in our annual report on Form 20-F.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. The forward-looking statements represent our views as of the date of this presentation and should not be
relied upon as representing our views as of any subsequent date. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the
forward-looking statements, other than as required by applicable law. For further information on these known and unknown risks, please see “Risk Factors” included in our annual report on Form 20-F.
Table of Contents
Who We Are Page 4
Portfolio Overview Page 16
Growth Page 21
Financial Profile Page 25
Appendix Page 29
3
4
Who We Are
5
Global Leader in Decarbonization
We have integrated operating platforms on four continents with operating,
development and power marketing expertise
NORTH AMERICA9,400 megawatts
$29 Billion in total power assets
SOUTH AMERICA4,800 megawatts
$11 Billion in total power assets
ASIA1,000 megawatts
$1 Billion in total power assets
EUROPE4,100 megawatts
$11 Billion in total power assets
5,301 power generating facilities
$52 billionTOTAL POWER ASSETS
27 markets in 17 countries
19,300MEGAWATTS OF CAPACITY
120 years of experience
3,000+OPERATING EMPLOYESS
6
Complementary Portfolio of High-Quality Assets
Uniquely complementary asset base spread across five technologies
Wind4,700 MW
Solar2,600 MW
DG800 MW
Storage2,700 MW
Hydro7,900 MW
Our portfolio has
significant storage
capacity and ability
to produce power at
all hours of the day
Our wind assets are
focused on areas
with scarcity value,
and built with Tier 1
turbine equipment
Diversified portfolio
across PV and CSP
technologies with
diverse and scalable
applications
We own one of the
largest C&I DG
portfolios in the U.S.,
giving us direct
access to our
customers
Our pumped storage
and battery assets
are able to produce
electricity during
peak hours, and
recharge when
prices are low
Brookfield Renewable also owns a ~580 megawatt portfolio of biomass and co-generation facilities
7
Long Track-Record of Delivering Attractive, Risk-Adjusted Returns
NYSE: BEP, BEPC
TSX: BEP.UN, BEPC
MARKET SYMBOL
~$19B1
MARKET
CAPITALIZATION
~57% Equity Interest; GP & Manager
BROOKFIELD
PARTICIPATION
UNIT PERFORMANCE
Annualized Total Return
(As at August 11, 2020) 1-Year 5-Year
Since
Inception
BEP (NYSE) 62% 21% 18%
BEP (TSX) 64% 22% 18%
S&P 500 Index 16% 12% 6%
S&P Utilities Index 2% 10% 8%
S&P/TSX Composite Index 4% 6% 6%
S&P/TSX Capped Utilities Index 13% 11% 10%
Includes dividend reinvestment
1) Combined market capitalization of BEP and BEPC. Based on the closing price on August 11, 2020.
2) Based on the closing price on August 11, 2020.
3) Distribution has been adjusted for the special distribution of BEPC shares effective July 30, 2020.
CAPITALIZATION
Credit Rating: S&P BBB+
Average debt term
to maturity:10 years
DISTRIBUTION PROFILE
Current Distribution3 $1.74 per unit
Implied Yield2 ~4.0%
Target Annual Growth 5 – 9%
8
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
BEP S&P 500 S&P Utilities
We have a Consistent Track Record of Strong Performance
18%BEP TOTAL
RETURN
BBB BBB+
$0.57PER UNIT
DISTRIBUTION
$1.00PER UNIT
DISTRIBUTION
$1.74PER UNIT
DISTRIBUTION
Total Returns
S&P Utilities Index: 8%
S&P 500 Index: 6%
Source: Bloomberg
1) Total return assuming reinvestment of dividends between November 1999 and August 2020.
2) Distribution amounts have been adjusted for the special distribution of BEPC shares effective July 30, 2020.
9
Simple Strategy with Proven Track Record of Success Through Cycles
Acquire and develop high-quality
assets and businesses that help decarbonize
global electricity grids below intrinsic value
Optimize cash flows by applying our
operating expertise to enhance value
Finance our businesses on an
investment grade basis
Recycle capital from mature,
de-risked assets
10
Investment Highlights
Diverse and High-Quality
Cash Flows
19,300 megawatts of renewable capacity
across multiple technologies and
continents, supported by a strong
contract profile and best-in-class assets
Multiple Levers to
Grow Cash Flows
Proven and repeatable growth strategy
combining a value investment approach
with operating expertise and capital
discipline that has delivered 18% to
unitholders since inception
Strong Financial
Position
Robust balance sheet and access to
diverse sources of capital ensures
significant downside protection
Attractive
Sector
Strong ESG practices support global
decarbonization and create long-term
value for stakeholders
11
The Global Opportunity For Renewable Investment is Growing
Source: Bloomberg New Energy Finance
$2T
$5T
$10T
INVESTMENT IN
THE LAST
5 YEARS
RANGE OF INVESTMENT OVER THE
NEXT DECADE
Driven by competitive cost structures and carbon reduction targets
Renewables are Now the Most Economic Sources of Bulk Power
Forecast
0
20
40
60
80
100
120
140
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$/M
Wh
Levelized Cost of Energy$/MWh
PV Solar Onshore Wind CCGTSolar Onshore Wind Gas
12
Source: Bloomberg New Energy Finance.
13
Strong Support for Decarbonization in Our Core Markets
LATIN
AMERICA
• Economic growth driving electricity demand
• Strong support for hydro
• Increasing build-out of solar and wind
NORTH AMERICA
& EUROPE
• Growing carbon reduction and renewables
targets
• Declining subsidies and tax incentives for
wind and solar
• Rising renewables penetration combined with
nuclear and coal retirements
INDIA
• Economy will likely double in size over the
next decade
• Growing push to build-out wind, solar and
hydro capacity
• Reduced reliance on imported oil and coal
CHINA
• Significant renewables build-out to combat
pollution however, expansion of transmission
infrastructure has not kept pace
• Subsidies for wind and solar are disappearing
• Trade war with U.S. could have currency
implications
14
Strong ESG Practices Create Long-Term Stakeholder Value
Accelerate the
decarbonization of global
electricity grids through our
renewable power portfolio
Apply Task Force on Climate-
related Financial Disclosures
(TCFD) framework to analyze
long-term climate change
risks
Protect biodiversity
Manage water and waste
resources
Maintain a social license to
operate
Health and safety – with a
focus on high-risk incidents –
prevention is a top priority
Proactively engage with and
give back to communities in
which we operate
Human capital initiatives
emphasizing diversity and
inclusion
Social
Operate with high ethical
standards and a robust
policy framework (e.g. our
Code of Business Conduct and
Ethics, Anti-Bribery and Anti-
Corruption Policy)
Integrate ESG into our
decision-making, processes
and management systems
Diverse Board of Directors
and executive management
team
Asset and information security
GovernanceEnvironmental
Maintaining a social license to operate is central to preserving capital,
mitigating risk and creating long term value
15
Our Portfolio Helps Decarbonize the World
28 MILLION tCO2e OF AVOIDED EMISSIONS, EQUIVALENT TO:
6 million 10 million 5 million 460 million nearly all
vehicles
removed
from the
road annually
tons of waste
recycled
instead of
landfilled
homes'
electricity use
for one year
trees planted of London,
England's
emissions in
one year
16
Portfolio Overview
We Have the Highest Quality Cash Flows in the Sector
1) All figures are pro forma the TERP transaction and based on long-term average generation, proportionate to BEP.
2) Figures are pro forma the TERP transaction and based on revenue, proportionate to BEP. Excludes financial contracts and 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.
Hydro Wind Solar
27%Hydro
Focused1
Contracted
Cash Flows1
7%
North America Latin America & Asia Europe
30%
6%
64%
12%
37%
51%
10 years or fewer 11-19 years 20 years or more
66%
15-year
Average PPA
Term2
Growing
Global
Footprint1
Cash flows are supported
by a strong contract
profile and are well
diversified by technology
and geography
Contracted Merchant
95%
5%
17
18
Diverse, Creditworthy Counterparties
Diverse Customer
Base
Highly diversified customer base
comprised of over 600 high-quality
counterparties insulating our business
from single counterparty risk
Our single largest non-government third-
party customer represents 2% of
generation
Creditworthy
Counterparties
Counterparties comprised primarily of
strong investment grade public power
authorities or utilities
Diverse high-quality customer base provides strong downside protection,
safeguarding our cash flows
19
We Simultaneously Grew and De-risked our Cash Flows
Today a ~20% below LTA-hydrology year in any single market
would have less than a 2% impact on our FFO
10%
32%
13%8%
6%
6%
5%
3%
9%
7% 2%13%
51%
33%
3%
~$2.50+FFO PER UNIT
$0.87FFO PER UNIT
Canada Hydro U.S. Hydro Brazil Hydro Colombia HydroCanada Wind U.S. Wind Europe Wind LatAm & Asia WindEurope & Asia Solar North America Solar Storage & Other
2010 2020
10%+CAGR
New York
16%
New England
7%
MISO
5%
PJM
4%
Forecasted figures based on LTA and proforma TERP transaction.
20
Fully Hedged 75%
25%
Across
multiple
currencies
…And Diversified our Foreign Currency Exposure
Brazil32%
Fully Hedged68%
2010 FX Exposure
Post-Hedging
2020 FX Exposure
Post-Hedging
In the event of a 10% depreciation in any single currency, we have only 1% FFO exposure
21
Growth
22
Organic Cash Flow Growth
BEP is focused on delivering 5% to 9% distribution growth annually on a per unit
basis from organic initiatives and fully funded by internally generated cash flows
Lever
Expected Annual
FFO Growth Detail
Inflation
Escalation1% to 2% ~40% of our revenues have embedded inflation
indexation
Re-Contracting 1% to 2%Limited downside risk to PPA maturities in North
America plus exposure to rising power prices in
Brazil and Colombia
Cost Reduction 1% to 2% Targeting cost reductions of $2/MWh
Development &
Repowering3% to 5%
Targeting to build 1,000 MW from our proprietary
development pipeline over the next five years at
premium returns
FFO per Unit
Growth
Potential
6% to 11% We do not rely on M&A to achieve our
distribution growth target
23
Robust Development Pipeline
Hydro Other Wind Solar Storage
Given our scale, diversity, and global nature, we are uniquely positioned to partner
with governments and businesses to help them achieve their decarbonization goals
• We have an 18,000 MW development pipeline diversified across multiple
technologies and geographies, including approximately 2,400 MW under
construction
• With our development pipeline, we would create enough carbon free power to
displace an additional 25 million metric tons of carbon dioxide per year
North America Latam Asia Europe
18,000 MW 18,000 MW
24
Proven Track Record of Capital Deployment
We have developed or acquired 14,000 MW of capacity
across technologies and geographies
Deployed ~$4 billion of BEP equity since 2014$billions
$0.0
$0.5
$1.0
$1.5
$2.0
Hydro Wind Solar Other
North America Latin America Europe Asia
25
Financial Profile
26
Robust Balance Sheet
BBB+INVESTMENT GRADE BALANCE SHEET
10 YEARSAVERAGE DEBT TERM TO MATURITY
~80%NON-RECOURSE FINANCINGS
Highest rating in the sector with non-amortizing
corporate debt fully supported by perpetual
hydro portfolio
Well laddered debt profile with no material
maturities in the next five years or deferred
financing structures like converts or tax equity
Structured on an investment grade basis with
attractive covenant packages that are free from
financial maintenance covenants
~90%FIXED RATE FINANCINGS
Minimal interest rate exposure, with only 7% of
our debt in North America and EU exposed to
rising interest rates
12.1xDECONSOLIDATED
INTEREST
COVERAGE
17%DEBT TO
CAPITALIZATION -
CORPORATE
Figures and table are as at June 20th pro forma the issuance of our C$425m Series 13
MTN and redemption of our C$400m Series 8 MTN
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2020 2021 2022 2023 2024 After
Profroma Debt Maturity Ladder
$billions, as at June 30,2020
Non-Recourse Maturities Recourse Maturities
27
Access to Deep Pool of Capital
Significant Liquidity Partner Capital
Diversified Access to
Capital MarketsTrack Record of
Capital Recycling
We currently have ~$3.4 billion1
of available liquidity
We have access to ~$5 billion of
partner capital to invest alongside
We have raised ~$3.8 billion2 in
corporate debt and equity (preferred
and common) since 2015
Raised ~$1.2 billion in proceeds in
the last two years through
opportunistic capital recycling
Multiple
Funding
Levers
1) Available liquidity is adjusted for the acquisition of a 38% interest in TerraForm Power, Inc. completed on July 31, 2020
2) Corporate debt issuances include our C$425m Series 14 notes that closed in August 2020
28
ATTRACTIVE SECTOR
Strong ESG practices support global
decarbonization and create long-term
value for stakeholders
HIGH-QUALITY CASH FLOWS
Stable cash flows from diverse global, multi-
technology platform, supported by a strong
contract profile and best-in-class assets
Key TakeawaysKey Takeaways
STRATEGY
Proven and repeatable strategy combining
a value investment approach with
operating expertise and capital discipline
that has delivered 18% to unitholders since
inception
FINANCIAL PROFILE
Robust balance sheet with high levels of
liquidity and access to diverse, scale
capital
29
Appendix
30
Indicative Corporate Structure
1. BAM ownership figures as of June 30, 2020.
2. Economic ownership interest on a fully diluted basis.
3. Portfolios of fixed income and equity securities managed on behalf of clients.
4. Includes Oaktree and other alternative investments. Oaktree also has real estate and infrastructure products.
5. On a fully exchanged basis and inclusive of BAM secondary offering announced on May 26, 2020.
Brookfield Asset Management(NYSE:BAM)
Infrastructure
Real Estate
Real Estate
Real Estate
Brookfield
Property
Partners
(NASDAQ: BPY)
53%2
Sustainable
Resources
Renewable Power
Brookfield
Renewable
Partners
(NYSE: BEP)
57%5
Infrastructure
Infrastructure
Brookfield
Infrastructure
Partners
(NYSE: BIP)
30%
Real Asset
Credit
Private Equity
Private Equity
Brookfield
Business
Partners
(NYSE: BBU)
63%
Credit
Credit4
Credit
Oaktree
(Private 62%)
PUBLIC
SECURITIES3
BUSINESSES
PRIVATE
FUNDS
AFFILIATES1
31
Governance
EXECUTIVE LEADERSHIP
Sachin Shah Chief Executive Officer
Wyatt Hartley Chief Financial Officer
Jennifer Mazin General Counsel
Ruth Kent Chief Operating Officer
Brookfield Renewable has entered into a Master Services Agreement with Brookfield Asset Management
• Provides comprehensive suite of services to Brookfield Renewable Partners
• Base management fee of $20 million adjusted annually for inflation
• Equity enhancement fee equal to 1.25% of the increase in BEP’s capitalization
Incentive distributions based upon increases in distributions paid to unitholders over pre-defined thresholds (Master
Limited Partnerships (MLP) structure)
• 15% participation by Brookfield in distributions over $0.375/unit per quarter
• 25% participation by Brookfield in distributions over $0.4225/unit per quarter
Brookfield Renewable’s general partner has a majority of independent directors
Brookfield Renewable’s governance is structured to provide significant alignment of interests between Brookfield
Asset Management and unitholders
32
Favorable Structure Relative to Master Limited Partnerships
Brookfield Renewable has not and is not expected to generate UBTI and ECI
• Brookfield Renewable is a Bermuda-based publicly traded partnership that indirectly
owns holding corporations in the U.S., Canada and other jurisdictions. Brookfield
Renewable is not a U.S. MLP
• Chart below shows a comparison of Brookfield Renewable versus an MLP
1) Not all MLP’s are the same. This represents Brookfield’s understanding of common features with these types of vehicles
2) UBTI is unrelated business taxable income
3) ECI is effectively connected income
4) Source: Management estimates based on Barclays Capital Master Limited Partnerships MLP Trader Weekly
Brookfield Renewable MLP1
Type of entity Publicly traded partnership Publicly traded partnership
UBTI2 No Yes
ECI3 No Yes
U.S. tax slip issued K1 K1
Tax profile of distributions Benefits from return of capital Benefits from depreciation
Target payout ratio ~70% of FFO 80%-90% of distributable cash flow4
Incentive distributions 25% maximum 50% maximum
33
Leader in Green Energy & Sustainability
BEP is the largest member by market capitalization of the S&P/TSX Renewable Energy and Clean
Technology Index.
Since 2017, BEP has issued four green bonds through project-level financings for an aggregate
value of over $1.6 billion. Citing BEP's environmental stewardship, commitment to renewable
power, and use of proceeds towards renewable power generation, the green bonds received E-1
Green Evaluation scores from S&P - the highest on its scale.
BEP has issued five corporate-level green bonds to date – C$300 million in 2018, C$600 million in
2019, and C$175, C$175, and C$425 million in 2020 as well as a $200 million perpetual preferred
unit issuance in 2020 – under its Green Bond and Preferred Securities Framework with proceeds
to be used to finance and/or refinance investments in renewable power generation and to support
the development of clean energy technologies. A third-party opinion from Sustainalytics deemed
the Framework to be credible and impactful.
BEP is committed to sustainable development principles that reduce the impact of our operations
and help to manage the underlying water resources efficiently. Low Impact Hydropower Institute
(LIHI) certification is a voluntary certification program designed to help identify and provide market
incentives for hydropower operations that are minimizing their environmental impacts. BEP has
received LIHI certification for 65 hydro facilities across the US, more than any other operator,
making it the U.S. leader in low impact hydropower generation.1
The Environmental Choice Program is a comprehensive national program sponsored by
Environment Canada. It certifies manufacturers and suppliers that produce products and services
that are less harmful to the environment. These bear the EcoLogo registered trademark. 22 of our
hydroelectric facilities in Ontario, Quebec, and British Columbia meet the strict standards of the
Environmental Choice Program.
1) This product includes Low Impact Hydropower from facilities certified by the Low Impact Hydropower Institute (an independent non-profit organization) to have environmental impacts
in key areas below levels the Institute considers acceptable for hydropower facilities. For more information about the certification, please visit www.lowimpacthydro.org.
34
Notice to Recipients
Additional Information and Where to Find It
This presentation is neither a solicitation of a proxy nor a substitute for any proxy statement or other filings that may be made with the SEC. Any solicitation will only be made through
materials filed with the SEC. Nonetheless, this presentation may be deemed to be solicitation material in respect of the transaction by Brookfield Renewable Partners L.P. (“BEP”),
Brookfield Renewable Corporation (“BEPC”) and TerraForm Power, Inc. (“TERP” or “TerraForm Power”). BEP and BEPC have filed relevant materials with the SEC, including a
registration statement on Form F-1/F-4 (File Nos. 333-234614 and 333-234614-01) (the “F-1/F-4”), as filed with the SEC as an amendment to Form F-1, that includes a proxy
statement of TerraForm Power and also constitutes a prospectus of BEP and BEPC. On June 29, 2020, the SEC declared the F-1/F-4 effective. TerraForm Power commenced
mailing the definitive proxy statement/prospectus to stockholders of TerraForm Power on or about June 29, 2020. This presentation is not a substitute for the registration statement,
proxy statement/prospectus or any other documents that BEP, BEPC or TerraForm Power may file with the SEC or send to stockholders in connection with the transaction.
STOCKHOLDERS OF TERRAFORM POWER ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE DEFINITIVE PROXY
STATEMENT/PROSPECTUS, WHICH WAS ALSO FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION.
Investors and security holders may obtain copies of the F-1/F-4, including the proxy statement/prospectus relating to the TERP acquisition, the prospectus relating to the special
distribution of BEPC exchangeable shares and other documents filed with the SEC free of charge at the SEC’s website, http://www.sec.gov. Copies of documents filed with the SEC
by Terraform Power are available free of charge on Terraform Power’s website at http://www.terraform.com/. Copies of documents filed with the SEC by BEP and BEPC are available
free of charge on BEP’s website at http://bep.brookfield.com/.
Participants in Solicitation
TerraForm Power and its directors and executive officers, BEPC and its directors and executive officers, and BEP and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the holders of TerraForm Power common stock in respect of the transaction. Information about the directors and executive officers of
TerraForm Power is set forth on its website at http://www.terraformpower.com/. Information about the directors and executive officers of BEP is set forth on its website at
http://bep.brookfield.com/. Information about the directors and executive officers of BEPC is set forth on the F-1/F-4. Investors may obtain additional information regarding the
interests of such participants by reading the proxy statement/prospectus regarding the TERP acquisition. You may obtain free copies of these documents as described in the
preceding paragraph.
Non Solicitation
No securities regulatory authority has either approved or disapproved of the contents of this presentation. This presentation shall not constitute an offer to sell or the solicitation of an
offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act of 1933, as amended.