Brookfield Asset Management 12 th Annual Investor Meeting September 28, 2016
Cautionary Note Regarding Forward-Looking Statements Forward-Looking Statements and Information This presentation contains “forward-looking information” within the meaning of Canadian provincial 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. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Asset Management and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. In some cases, forward-looking statements can be identified by terms such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Asset Management to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchanges rate; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; changes in tax laws, catastrophic events, 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 documents filed 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, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Brookfield Asset Management undertakes 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. Use of Non-IFRS Measures and Other This presentation contains references to financial measures which are not generally accepted accounting measures under IFRS and may differ from similar definitions used by other entities. We believe that these are useful supplemental measures that may assist investors in assessing our financial performance and the cash anticipated to be generated by our operations. Such measures should not be considered as the sole indicators of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. Certain values used in this presentation are for illustrative purposes and based on various factors that may or may not materialize, including past performance metrics that may not be indicative of future performance. References to Brookfield, Brookfield Asset Management or BAM are to Brookfield Asset Management Inc. together with its subsidiaries unless the context reflects otherwise. All amounts are in U.S. dollars unless otherwise specified. 2
Agenda Bruce Flatt 4 Chief Executive Officer Brian Lawson 45 Chief Financial Officer 3
Agenda Review of the past 12 months 1 The fundraising environment today 2 3 Our competitive advantages 4 The growth of our Funds 5 Where we are going from here 4
In the past 12 months we’ve made considerable progress in building our business into a leading global manager of Real Assets 5
We completed fundraising for our recent series of flagship funds, doubling the size of the predecessor funds Infrastructure $14 billion $2.7 $7.0 $9 billion $1.0 $4.4 Real Estate Private Equity $4 billion $0.8 $1.0 6
~150 new institutions invested in our funds, bringing the total to 425 – we believe we will achieve 1,000 in time +52% 425 +52% 280 2014 2016 7
…further diversifying our investor base 2016 Asia, 34% Europe & Other Middle East, 7% Australia 59% North America 1) As at June 30, 2016. Private fund capital by geography 8
We have deployed $16 billion of capital around the world over the past 12 months Peru South North 29% America America 49% 10% 12% India Germany Asia & Europe Other 1) LTM as at June 30, 2016 9
We continue to increase total assets under management TOTAL ASSETS UNDER MANAGEMENT ($billions) $243 11% $218 $192 $183 $158 2012 2013 2014 2015 2016 1) As at June 30 10
We completed the spin-off of Brookfield Business Partners Provides investors with the ability to invest directly in businesses within our private equity group Creates a permanent equity base for these businesses Establishes a currency to transact with 11
And achieved favourable results for our other listed partnerships Distribution growth Price appreciation Capitalization growth 12
Which has all led to meaningful growth in operating results 15% Fee bearing capital 50% Fee related earnings Annualized fees and target carry 41% 1) One year return as at June 30, 2016 13
We have achieved this by executing our simple and repeatable business model Source equity from clients seeking exposure to property and 1 infrastructure returns Use our access to large scale capital to invest on behalf of clients 2 Utilize our global reach to identify and acquire high-quality Real Assets 3 Finance assets on a long-term, low-risk basis 4 Enhance the cash flows and value of assets by leveraging our leading 5 operating businesses 14
Institutions continue to allocate increasing amounts of capital to Real Asset strategies 15
Traditional equity and fixed income investments no longer provide sufficient total returns Negative interest rates in Japan and Europe continue to put downward pressure on the long U.S. rate Global growth is slow so it looks like we will continue in a low interest rate environment for a while Institutional investors are in search of alternatives 16
We anticipate allocations of capital to Real Assets to grow substantially 2030 2016 40 2000 15 10 60 85 90 Real Assets Equity/Fixed Income 17
Shifts in portfolio allocations are being largely driven by… • Macroeconomic factors – continued slow growth and low interest rate environment • Continued acceptance of Real Assets as an asset class – with infrastructure investment growing at accelerated rates • Changes in regulation – increasing allocations to alternatives and foreign investments by Asian insurance companies and institutions 18
Allocation trends should continue, irrespective of interest rates • Interest rates should slowly move up in the U.S. • Our business model works very well even if rates trend higher • We have found that Real Assets retain their value across the cycle • Interest rates should rise only if the economy is improving… leading to growth in cash flow returns Returns on Real Assets remain extremely attractive in this environment 19
Sovereign investors are leading the way • Ability to commit large amounts of capital • Long-term, global mandates • Sophisticated and diverse strategies • Looking for partners to extend their reach And Real Assets have become well established as an asset class across most other institutions as well 20
We are well positioned as a partner of choice for Real Asset strategies 21
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