Brookfield Renewable INVESTOR DAY SEPTEMBER 24, 2020 Agenda 3 - PowerPoint PPT Presentation

Brookfield Renewable INVESTOR DAY SEPTEMBER 24, 2020

Agenda 3 Looking Ahead Sachin Shah, Chief Executive Officer 24 Our Long-Term Approach Connor Teskey, Chief Investment Officer 41 Financial Update Wyatt Hartley, Chief Financial Officer 56 Key Takeaways and Q&A Sachin Shah, Chief Executive Officer

Looking Ahead SACHIN SHAH CHIEF EXECUTIVE OFFICER 3

Decarbonization is a global objective 4

Carbon reduction is universal There is still a long path to meeting carbon-free targets globally NET-ZERO CARBON 38% 37% 32% 28% 28% 19% California New York E.U. U.K. India China Current Renewables Generation Other Generation 2050 Renewables Target 5 Source: Bloomberg New Energy Finance

Increasingly ambitious corporate targets 2040 2025 Amazon : net zero carbon emissions Amazon, Wal-Mart, and Nike: General Motors: 100% renewable 100% renewable 2030 2050 Microsoft: carbon negative Microsoft: remove historical carbon emissions H&M: 100% renewable Johnson & Johnson: 100% renewable 6

Wind and solar are the cheapest sources of bulk generation LEVELIZED COST OF ENERGY 140 120 100 80 $/MWh 60 40 20 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 PV Solar Onshore Wind CCGT 7 Source: Bloomberg New Energy Finance

How has the recession impacted these trends? 8

U.S. electricity generation is down 5% 9 Source: U.S. Energy Information Administration (EIA).

Over the same period, fossil fuel generation is down 10% 10 Source: U.S. Energy Information Administration (EIA).

Renewable generation is up 14% 11 Source: U.S. Energy Information Administration (EIA).

Investors signed up to Principles for Responsible Investment $100 AUM (TRILLIONS USD) $80 20%+ $60 $40 $20 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 12 Source: UNPRI; Scotiabank GBM.

Significant capital will be invested into renewables $10T $5T $2T INVESTMENT IN PROJECTED RANGE OF INVESTMENT OVER THE THE LAST NEXT DECADE 5 YEARS Source: Bloomberg New Energy Finance.

Our leading and differentiated business is very well positioned… 14

…with over $50 billion of operating renewables 15

Growing distributions $1.74 6% CAGR $0.57 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 16 Note: distribution amounts have been adjusted for the special distribution of BEPC shares effective July 30, 2020.

Strong balance sheet BBB+ $3.4B Investment grade Available balance sheet liquidity 17

Best-in-class carbon avoidance 6 Million Nearly All 5 Million Vehicles off the London’s Homes’ annual road annually annual electricity use generation 18 Note: figures above equivalent to BEP’s operating portfolio, which avoids 28 million tons of CO 2 annually.

A simple, repeatable strategy 19

Invest on a value basis Operational turnarounds Carve-out transactions Development Restructuring Capital solutions 20

Use our operating expertise to help businesses thrive Sustainability Additionality Transition 21

Our approach 1 Invest on a value basis 12–15% Returns Long-term Impact 3 2 Monetize Sustain mature Add assets Transition 22

20+ year track record BBB BBB+ 18% BEP Total Return Total Return S&P 500 Index: 6% Total Return S&P 500 ESG Index: 11% 1999 2020 BEP S&P 500 S&P 500 ESG 1. Source: Bloomberg 2. Chart indicates share price performance including reinvestment of dividends. 23 3. BEP and S&P 500 Index returns since 11/30/1999. S&P 500 ESG Index returns since its inception on 4/30/2010.

Our Long-Term Approach CONNOR TESKEY CHIEF INVESTMENT OFFICER 24

Over the next five years… Consistent Expanded Growing Approach Capabilities Market …we are increasing our targeted annual equity deployment to $800M–1B 25

Doing this through a consistent and balanced approach OPERATIONAL APPROACH CAPITAL ALLOCATION • Deep value • Long-term focus • Contrarian • Partnership approach • Complex or large-scale transactions • ESG-oriented • Perpetual improvement 26

Value and growth through decarbonization Additionality Transition Sustainability 27

Sustainability | Preserve and enhance existing renewable assets Additionality Transition Sustainability Improved cash flows and de-risked investments through long-term sustainable operating principles 28

Sustainability | A differentiated approach to ownership Operating expertise Global standards Ongoing investment Social focus Strongly capitalized Enhanced returns Stable sponsor 29

Sustainability | Not in the community, but part of the community Maintaining a social license to operate is central to preserving capital, mitigating risk and creating long-term value KIDWIND PROGRAM ‘NAMGIS FIRST NATIONS LA GUAJIRA WIND PROJECT IRELAND PARTNERSHIP COLOMBIA CANADA 30

Additionality | Accretively growing our assets Additionality Transition Sustainability Expanding and delivering our 18,000 MW development pipeline at premium returns 31

Additionality | Enhancing our development capabilities Local development teams 2015 across the globe 3 GW Delivery from concept to commercialization Flexible commercial strategy focused on relationships 2020 Ability to manage large-scale 18 GW projects Advantage from global procurement platform North America Latam Asia Europe 32

Additionality | Strong track record of development activities 2 GW ~$4B 50M developed invested trees planted 15–20% returns 8% 16% 17% 4% 28% 46% 2 GW 2 GW 34% 47% Solar Wind Hydro Storage & Other North America Latam Asia Europe 33 Note: 50 million trees planted is equivalent to 2 GW developed, which avoids approximately 3 million tons of CO 2 annually.

Additionality | Ramped up our solar development activities 2015 2020 Utility scale 0 GW 9 GW C&I rooftop 0 GW 1 GW Total solar pipeline 0 GW 10 GW 15–20%+ returns 34

Additionality | Best-in-class carbon avoidance 5 Million 100% 100% Vehicles off the Paris’ annual CO 2 generated by road annually generation Apple or half of BP 35 Note: figures above equivalent to BEP’s development pipeline, which would avoid 23 million tons of CO 2 annually.

Transition | Accelerate energy transition initiatives Additionality Transition Sustainability Provide capital and solutions to drive carbon reduction initiatives 36

Transition | Investing in key sectors and businesses Distributed TransAlta New Asset Generation Investment Classes Local businesses Corporations seeking Green hydrogen looking to to transition and green decarbonize businesses data centers 37

Transition | Global partners in decarbonization 38

We are the partner of choice to support governments and businesses in achieving their decarbonization goals 39

In summary 1 Invest on a value basis 12–15% Returns Long-term Impact 3 2 Monetize Sustain mature Add assets Transition 40

Financial Update WYATT HARTLEY CHIEF FINANCIAL OFFICER 41

Our business is well positioned to continue to deliver solid growth through all economic cycles 42

Underpinned by a strong balance sheet with ample liquidity BBB+ ~85% 14-year INVESTMENT NON-RECOURSE AVERAGE GRADE DEBT CORPORATE DEBT DURATION ~$3.4 billion of available liquidity 43

Highly resilient cash flows CONTRACTED 15-year average PPA term DE-RISKED No single market >10% DIVERSIFIED 600+ investment-grade counterparties LIMITED FX EXPOSURE 75% fully hedged 44

A strong track record of FFO per-unit growth 10+% CAGR 2010 2020F $0.72 FFO ~$2.00+ FFO per unit per unit 45 Note: 2020 FFO per unit reflects the last twelve months and is pro forma the TERP transaction.

Proven resilience through the current global shutdown ~98% ~$1B $2B+ Executed ASSET LIQUIDITY CAPITAL STRATEGIC AVAILABILITY ADDED DEPLOYED MERGER 46

Merger with TERP has many immediate benefits Simplified ownership structure Immediately cash accretive Expands portfolio in North America and Western Europe Strengthens contract profile 47

Access to flexible and diverse sources of funding Asset-level Preferred Capital equity and recycling up-financings corporate debt Funding plan does not require common equity issuances 48

Leaders in sustainable finance $200M $1,300M PREFERRED SECURITIES CORPORATE GREEN BONDS >$4 $50M $2,500M BILLION SUSTAINABILITY- PROJECT-LEVEL LINKED LOAN GREEN BONDS 49

Broadening our investor base We completed the launch of BEPC, which has been well received by the market Russell 2000/3000 Increased float Completed special and FTSE Global through TERP distribution merger 50

Growing development activities enhance the visibility of organic cash flow growth over the next five years 51

Target 6–11% FFO per-unit growth through operational levers Embedded Expected Development FFO Per-Unit Inflation Margin Pipeline Growth Escalation Expansion Potential 1–2% 2–4% 6–11% 3–5% 52