Core Insights - Dividend growth stocks significantly outperform other dividend stocks, with dividend growers and initiators yielding 10.2% returns compared to 6.8% for those with no change and (0.9%) for cutters and eliminators [1] Group 1: Brookfield Renewable - Brookfield Renewable has consistently increased its dividend by at least 5% annually since its public listing in 2011, resulting in an annualized total return of 11.2% for investors [2] - The current dividend yield is 5.3%, supported by long-term contracts that index rates to inflation, which are expected to boost funds from operations (FFO) per share by 2% to 3% annually [3] - Organic growth drivers are projected to enhance FFO per share by 8% to 13% each year, allowing for a long-term dividend growth of 5% to 9% annually, potentially leading to double-digit total annualized returns [4] Group 2: Enbridge - Enbridge has a strong dividend history, having paid dividends for over 70 years and increased its payout at a 9% compound annual rate over the past 30 years, resulting in over 11% annualized total returns [5] - The current dividend yield is 6%, with stable cash flow generated from long-term contracts and government-regulated rate structures, allowing for a payout of 60% to 70% of cash flow [6] - Enbridge has a significant backlog of capital projects that are expected to grow cash flow per share by 3% annually through next year and at a 5% annual pace thereafter, supporting similar annual dividend growth [7][8]

Financial Reporting and Standards - Brookfield Renewable's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) [88]. - All dollar amounts are expressed in U.S. dollars unless otherwise indicated [89]. - The Management's Discussion and Analysis contains forward-looking information within the meaning of U.S. and Canadian securities laws [90]. - Certain comparative figures have been reclassified to conform to the current year's presentation [89]. - The company utilizes non-IFRS financial measures to explain its financial results [90]. - A reconciliation of the non-IFRS financial measures to the most comparable IFRS financial measures is available [90]. - The Management's Discussion and Analysis is provided as of February 28, 2025, for the year ended December 31, 2024 [86]. - Brookfield Renewable's financial statements are prepared in accordance with IFRS, requiring estimates and judgments related to assets, liabilities, revenues, and expenses [257]. Company Structure and Ownership - The ultimate parent of Brookfield Renewable is Brookfield Corporation, which includes Brookfield Asset Management [86]. - Holders of various units, including LP units and exchangeable shares, are collectively referred to as "Unitholders" [87]. Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.5 billion for the quarter [91]. - Revenues for 2024 reached $5,876 million, an increase of $838 million or 16.6% compared to 2023 [100]. - The company reported a net loss attributable to Unitholders of $464 million for the year ended December 31, 2024, compared to a loss of $100 million in 2023 [196]. - Funds From Operations totaled $1,217 million, or $1.83 per Unit, reflecting an increase from $1,095 million or $1.67 per Unit in the prior year [93]. - The company reported a significant increase in Adjusted EBITDA from $2,002 million in 2022 to $2,408 million in 2024, indicating a positive growth trend [162][164]. - In 2024, the company reported a net loss of $9 million compared to a net income of $616 million in 2023, and $138 million in 2022 [165]. Growth and Market Expansion - User data showed a growth of 20% in active users, totaling 10 million users by the end of the quarter [91]. - The company provided a future outlook with a revenue guidance of $1.6 billion for the next quarter, representing a 7% increase [91]. - The company is expanding its market presence in Asia, targeting a 25% increase in market share by the end of the fiscal year [91]. - The company deployed or committed to deploy $12.5 billion into growth initiatives, marking the largest investment year ever [94]. - The development pipeline now stands at approximately 200,000 MW, with a commissioning pace of nearly 7,000 MW per year, targeting a run rate of ~10,000 MW per annum by 2027 [95]. Capital Expenditures and Investments - Capital expenditures for the quarter were reported at $50 million, focusing on infrastructure improvements [91]. - The company announced a new research and development initiative with a budget of $10 million aimed at innovative product features [91]. - The company invested $3,733 million in the construction and development of renewable energy projects globally in 2024 [185]. - The company completed asset sales generating $2.8 billion, achieving average returns of approximately 25% IRR [97]. Liquidity and Financial Position - Liquidity position remains strong with available liquidity of $300 million [91]. - Available liquidity at year-end was $4,320 million, up from $4,121 million in 2023 [98]. - The company has $2.45 billion in committed revolving credit facilities available for investments and acquisitions [177]. - Cash flow from operating activities before changes totaled $1,562 million in 2024, an increase from $1,390 million in 2023 [179]. Operational Costs and Expenses - Direct operating costs rose to $2,580 million, an increase of $647 million compared to the prior year, primarily due to costs from newly acquired facilities [102]. - Interest expense increased to $1,988 million, reflecting a rise of $361 million compared to 2023, attributed to recent acquisitions and financing initiatives [103]. - Depreciation expenses for 2024 amounted to $2,010 million, while in 2023 it was $1,852 million, and in 2022 it was $1,583 million [162][163][164]. Renewable Energy Generation - Total renewable generation in 2024 was 30,947 GWh, up from 29,082 GWh in 2023, with total revenues increasing to $3,246 million from $2,826 million [140]. - Wind operations generated $484 million in Funds From Operations in 2024, an increase from $382 million in 2023, driven by newly acquired facilities and stronger generation [146]. - Utility-scale solar operations saw Funds From Operations rise to $349 million in 2024 from $261 million in 2023, benefiting from stronger generation and asset sales [147]. - Distributed energy & storage operations reported Funds From Operations of $186 million in 2024, up from $133 million in 2023, due to new facilities [148]. Risks and Challenges - The company faces risks from climate change affecting resource availability and electricity generation capacity [208]. - Future re-contracting of long-term contracts may not yield similar terms, impacting financial performance [214]. - The occurrence of dam failures could lead to significant capital expenditures and liabilities, impacting generating capacity and potentially resulting in new regulations [219]. - The company relies on third-party service providers for critical business functions, exposing it to risks from disruptions or cybersecurity threats [229]. Corporate Governance and Structure - Brookfield Corporation exercises substantial influence over Brookfield Renewable, impacting its management and operational decisions [253]. - The departure of key professionals from Brookfield could adversely affect the company's ability to achieve its objectives, as it relies on their skills and business contacts [255]. Future Outlook - The company plans to continue expanding its renewable energy portfolio and investing in new technologies to enhance operational efficiency and market presence [151]. - The company anticipates future demand growth for renewable energy in North America by 2028 to 2035, and in Colombia and Brazil by 2028 and 2030, respectively [273].

Financial Performance - Revenues for 2024 reached $5,876 million, an increase of 16.6% compared to $5,038 million in 2023[523] - Net loss attributable to Unitholders was $464 million, or $0.89 per LP unit, compared to a loss of $100 million, or $0.32 per LP unit in the previous year[524] - Proportionate Adjusted EBITDA increased to $2,408 million from $2,182 million, reflecting a growth of 10.4%[523] - Funds From Operations (FFO) increased to $1,217 million in 2024, up from $1,095 million in 2023, and $1,005 million in 2022, reflecting a growth of approximately 11% year-over-year[596] - The company reported a total net income of $616 million for 2023, compared to a net loss of $335 million in 2022[594] - In 2024, the company reported a net loss of $9 million compared to a net income of $616 million in 2023, and $138 million in 2022[596] Liquidity and Capitalization - Available liquidity at the end of 2024 was $4,320 million, up from $4,121 million in 2023[523] - As of December 31, 2024, the company had total capitalization of $78,616 million, with a debt-to-total capitalization ratio of 43%[603] - The company has $2.45 billion in committed revolving credit facilities available for investments and acquisitions[609] - Total cash flow provided by operating activities for 2024 was $1,562 million, an increase of 12.3% from $1,390 million in 2023[611] Investments and Growth Initiatives - The company deployed or committed to deploy $12.5 billion into growth initiatives, marking the largest investment year ever[525] - The development pipeline now stands at approximately 200,000 MW, with a commissioning pace of nearly 7,000 MW per year, targeting a run rate of ~10,000 MW by 2027[526] - The company invested $1,368 million in structured investments and equity accounted investments in 2024, including a 12% interest in a 3.5 GW offshore wind portfolio in the U.K.[616] - The company plans to acquire a diversified operating and development platform in the U.S. for approximately $950 million, with an enterprise value of $1,735 million[669] Asset Management - Total assets increased to $94,809 million in 2024 from $76,128 million in 2023, reflecting significant growth in property, plant, and equipment[542] - Property, plant and equipment increased to $73.5 billion as of December 31, 2024, up from $64.0 billion in 2023, representing a $9.5 billion increase[543] - The company completed asset sales generating $2.8 billion, achieving an average return of approximately 25% IRR[528] - Assets held for sale totaled $2,049 million, including a 25% interest in 2 GW of pumped storage facilities in the U.K. and a 1,004 MW portfolio of wind and solar assets in India[544] Operational Performance - The total generation for Brookfield Renewable in 2024 was 30,947 GWh, compared to 29,082 GWh in 2023, reflecting an increase in renewable energy output[571] - Wind operations generated Funds From Operations of $484 million in 2024, compared to $382 million in 2023, benefiting from newly acquired facilities[577] - Utility-scale solar operations reported Funds From Operations of $349 million in 2024, up from $261 million in 2023, aided by stronger generation and asset sales[578] - Adjusted EBITDA for hydroelectric operations was $902 million in 2024, down from $1,017 million in 2023, primarily due to lower generation[572] Debt and Interest Expenses - Interest expense increased to $1,988 million, up 22.2% from $1,627 million in 2023, due to acquisitions and financing initiatives[534] - The company’s total borrowings increased to $34,390 million in 2024 from $29,702 million in 2023[628] - The weighted-average interest rate for corporate borrowings in 2024 is 5.4%, with total borrowings of $14,549 million[605] Shareholder Returns - Incentive distributions declared during the year amounted to $128 million, an increase from $111 million in 2023[559] - The company increased distributions to $1.42 per LP unit in 2024, representing a 5.2% increase from $1.35 in 2023[613] - Brookfield Renewable repurchased 2,279,654 LP units in 2024 at a total cost of $52 million, compared to 1,856,044 units for $43 million in 2023[569] Market and Economic Outlook - The company expects power prices in Brazil and Colombia to rise due to the need for new supply to meet growing demand[598] - Brookfield Renewable anticipates future demand growth for renewable energy in North America by 2028 to 2035, in Colombia by 2030, and in Brazil by 2028[655] Risk Management - The company is focused on managing financial risks including electricity price, foreign currency, interest rate, credit, and liquidity risks[635] - Approximately 91% of the company's debt is non-recourse, indicating a strong focus on maintaining an investment-grade balance sheet[603] Corporate Structure and Reporting - Brookfield Renewable's operations are segmented into six categories: hydroelectric, wind, utility-scale solar, distributed energy and storage, sustainable solutions, and corporate[684] - The company recognizes that generation levels are affected by hydrology, wind, and irradiance conditions, but expects long-term averages to remain reliable indicators of performance[680]

Year Ended December 31, 2024 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Supplemental Information 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 ...

Brookfield Renewable Partners L.P. Limited Partnership Units (NYSE:BEP) Q3 2024 Earnings Conference Call November 8, 2024 8:30 AM ET Company Participants Connor Teskey - Chief Executive Officer Ignacio Gomez-Acebo - Managing Director, Renewable Power & Transition Wyatt Hartley - Chief Financial Officer Conference Call Participants Sean Steuart - TD Securities Robert Hope - Scotiabank Nelson Ng - RBC Capital Markets Rupert Merer - National Bank Mark Jarvi - CIBC William Grippin - UBS Operator Thank you for s ...

```markdown [Our Operations](index=3&type=section&id=Our_Operations) Brookfield Renewable operates a diversified global portfolio of approximately **35,200 MW** renewable power and **200,000 MW** development pipeline, including sustainable solutions like CCS and RNG - The company's renewable power portfolio has an operating capacity of approximately **35,200 MW** and a development pipeline of approximately **200,000 MW**[3](index=3&type=chunk) - The sustainable solutions portfolio includes investments in a nuclear services business, carbon capture and storage (CCS) with **57 TMTPA** operating capacity and a **20 MMTPA** development pipeline, and renewable natural gas (RNG) with **4 million MMBtu** operating capacity and an **8.1 million MMBtu** development pipeline[3](index=3&type=chunk) Portfolio Capacity by Technology (as of September 30, 2024) | Technology | Capacity (MW) | Annualized LTA (GWh) | Storage Capacity (GWh) | | :--- | :--- | :--- | :--- | | Hydroelectric | 8,306 | 38,111 | 7,523 | | Wind | 11,802 | 35,565 | — | | Utility-scale solar | 7,641 | 16,319 | — | | Distributed generation & storage | 6,032 | 4,087 | 5,220 | | **Total Renewable Power** | **33,781** | **94,082** | **12,743** | Annualized Long-Term Average (LTA) Generation by Quarter (Consolidated, GWh) | Quarter | Hydroelectric | Wind | Utility-scale solar | Distributed generation & storage | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Q1 | 9,513 | 9,174 | 3,470 | 923 | 23,080 | | Q2 | 10,198 | 9,147 | 4,609 | 1,189 | 25,143 | | Q3 | 8,583 | 7,901 | 4,838 | 1,128 | 22,450 | | Q4 | 9,817 | 9,343 | 3,402 | 847 | 23,409 | | **Total** | **38,111** | **35,565** | **16,319** | **4,087** | **94,082** | [Letter to Unitholders](index=6&type=section&id=Letter_to_Unitholders) The CEO reports strong Q3 operating results with **11% FFO per unit growth**, driven by strategic growth investments, asset recycling, and capitalizing on accelerating electricity demand from digitalization and AI Q3 2024 Highlights | Metric | Value | Source | | :--- | :--- | :--- | | FFO ($M) | 278 | 11% increase from prior year | | FFO per Unit ($) | 0.42 | | | Capital Deployed/Committed ($B) | 2.3 ($0.5 net) | Further business diversification | | New Capacity Commissioned (MW) | ~1,200 | Record ~7,000 MW expected for the full year | | Year-to-Date Asset Sale Proceeds ($B) | Over 2.3 ($1.0 net) | ~25% IRR, 2.5x multiple on invested capital | - The energy demand outlook is accelerating, with power becoming a bottleneck for data center and AI development. The company is well-positioned with a **200,000 MW** renewable project pipeline, **90%** of which is in top ten data center markets[8](index=8&type=chunk)[10](index=10&type=chunk) - Significant asset recycling activities were executed, demonstrating a strong market for high-quality renewable assets: - **Saeta (Spain/Portugal):** Sold for **$730 million** (**$430 million net**), generating **3.0x** invested capital over a six-year hold - **First Hydro (U.K.):** Interest sold for **$350 million** (**$100 million net**), generating over **3.5x** invested capital since 2017 - **Shepherds Flat (U.S. Wind):** **50%** interest sold for **$415 million** (**$105 million net**), generating almost **2.0x** invested capital on the portion sold - **India Portfolio:** Agreement to sell a **~1,600 MW** portfolio, completing the first full-cycle investment in the country[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - New growth investments were made in sectors with de-risked cash flows: - **Offshore Wind:** Partnered with Ørsted to acquire a **12%** interest in a **~3,500 MW** operating portfolio in the U.K. for **~$2.3 billion** enterprise value - **eFuels:** Strategic partnership with Infinium to invest up to **$1.1 billion**, funding a fully-contracted production facility in West Texas[28](index=28&type=chunk)[31](index=31&type=chunk) - The company maintains a strong balance sheet with **$4.6 billion** of available liquidity and expects to achieve its **10%+ FFO per unit growth target** for 2024[14](index=14&type=chunk)[32](index=32&type=chunk)[37](index=37&type=chunk) [Our Competitive Strengths](index=11&type=section&id=Our_Competitive_Strengths) Brookfield Renewable, a leading decarbonization business, leverages its diversified portfolio, strong financial profile, and disciplined investment approach to deliver consistent distribution growth - The company is one of the largest public decarbonization businesses with a 23-year track record, **~35,200 MW** of installed capacity, and a **~200,000 MW** development pipeline[42](index=42&type=chunk) - Maintains a strong financial profile with an investment-grade rating, **$4.6 billion** in available liquidity, and a conservative financing strategy where **~90%** of debt is non-recourse and fixed-rate[45](index=45&type=chunk) - The portfolio is diverse and high-quality, with hydroelectric power being a premium technology due to its long life and high cash margins. Wind and solar offer exposure to the fastest-growing renewable sectors[47](index=47&type=chunk) - The business is focused on delivering **5% to 9%** annual distribution growth, funded by internally generated cash flows, inflation escalations in contracts, and accretive acquisitions[47](index=47&type=chunk) [Management's Discussion and Analysis](index=14&type=section&id=Management%27s_Discussion_and_Analysis) The MD&A reviews Brookfield Renewable's Q3 and YTD 2024 financial and operational performance, covering consolidated and proportionate results, liquidity, and critical accounting policies, including non-IFRS measures [Part 1 – Q3 2024 Highlights](index=15&type=section&id=Part_1_%E2%80%93_Q3_2024_Highlights) Q3 2024 saw FFO reach **$278 million** (**$0.42 per Unit**), driven by acquisitions and new projects, supported by **$4.6 billion** liquidity, **$2.3 billion** in asset sales, and a **200,000 MW** development pipeline Q3 2024 Select Financial & Operational Information | Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues ($M) | 1,470 | 1,179 | 4,444 | 3,715 | | Net loss attributable to Unitholders ($M) | (181) | (64) | (455) | (135) | | Funds From Operations ($M) | 278 | 253 | 913 | 840 | | FFO per Unit ($) | 0.42 | 0.38 | 1.38 | 1.29 | | Capacity (MW) | 35,225 | 25,902 | 35,225 | 25,902 | - FFO of **$278 million** was driven by contributions from acquisitions, over **5,300 MW** of new development projects reaching commercial operation in the past 12 months, and strong all-in pricing[54](index=54&type=chunk) - Year-to-date asset sales exceeded **$2.3 billion** (**$1 billion net** to Brookfield Renewable), generating a **~25% IRR**. Key sales include a Spanish/Portuguese platform, a partial sale of a U.S. wind portfolio, and a U.K. pumped storage joint venture[55](index=55&type=chunk) - Committed to deploy **$2.3 billion** of capital (**$500 million net**), including a partnership with an eFuels manufacturer and an agreement to acquire a **12%** interest in a **~3.5 GW** U.K. offshore wind portfolio[57](index=57&type=chunk) - The development pipeline now stands at **200,000 MW**, with **~7,000 MW** expected to be commissioned in 2024, adding approximately **$90 million** of annual incremental FFO[58](index=58&type=chunk) [Part 2 – Financial Performance Review on Consolidated Information](index=18&type=section&id=Part_2_%E2%80%93_Financial_Performance_Review_on_Consolidated_Information) Q3 2024 revenues increased to **$1.47 billion**, but higher costs led to a **$39 million** net loss, while nine-month revenues grew to **$4.44 billion** resulting in a **$197 million** net loss Consolidated Financial Summary (in millions) | Item | Three months ended Sep 30, 2024 | Three months ended Sep 30, 2023 | Nine months ended Sep 30, 2024 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues ($M) | 1,470 | 1,179 | 4,444 | 3,715 | | Direct operating costs ($M) | (623) | (496) | (1,875) | (1,322) | | Interest expense ($M) | (514) | (370) | (1,479) | (1,166) | | Depreciation ($M) | (514) | (448) | (1,533) | (1,335) | | **Net income (loss) ($M)** | **(39)** | **24** | **(197)** | **352** | - **Q3 2024 vs Q3 2023:** Revenue increased by **$291 million** due to growth and inflation, but this was offset by a **$127 million** increase in direct operating costs and a **$144 million** increase in interest expense, resulting in a **$63 million** decrease in net income[61](index=61&type=chunk) - **Nine Months 2024 vs 2023:** Revenue increased by **$729 million**, primarily from acquisitions. This was offset by a **$553 million** rise in operating costs and a **$313 million** increase in interest expense, leading to a **$549 million** decrease in net income[63](index=63&type=chunk) [Part 3 – Additional Consolidated Financial Information](index=20&type=section&id=Part_3_%E2%80%93_Additional_Consolidated_Financial_Information) As of September 30, 2024, total assets were **$75.2 billion**, with **$2.6 billion** in assets held for sale, alongside details on related party transactions, BEPC reorganization, and equity structure Summary Consolidated Statements of Financial Position (in millions) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total assets ($M) | 75,173 | 76,128 | | Property, plant and equipment, at fair value ($M) | 61,389 | 64,005 | | Assets held for sale ($M) | 2,643 | — | | Total liabilities and equity ($M) | 75,173 | 76,128 | | Corporate borrowings ($M) | 4,160 | 2,833 | | Non-recourse borrowings ($M) | 25,307 | 26,869 | - Assets held for sale as of September 30, 2024, totaled **$2.64 billion**, including portfolios in the U.S., Brazil, U.K., Spain, Portugal, and India[67](index=67&type=chunk) - A corporate reorganization (the "Arrangement") is planned for BEPC to address proposed changes to Canadian tax law, expected to complete in **Q4 2024**[69](index=69&type=chunk)[257](index=257&type=chunk) - During the nine months ended September 30, 2024, the company repurchased and cancelled **2,279,654 LP units** for a total cost of **$52 million**[80](index=80&type=chunk) [Part 4 – Financial Performance Review on Proportionate Information](index=26&type=section&id=Part_4_%E2%80%93_Financial_Performance_Review_on_Proportionate_Information) Proportionate FFO for Q3 2024 increased to **$278 million**, driven by solar and distributed energy growth, offsetting declines in hydroelectric and wind, with **93%** of 2024 generation contracted Proportionate Results for the Three Months Ended September 30 (in millions) | Segment | Revenues 2024 ($M) | Adjusted EBITDA 2024 ($M) | FFO 2024 ($M) | FFO 2023 ($M) | | :--- | :--- | :--- | :--- | :--- | | Hydroelectric | 343 | 199 | 96 | 129 | | Wind | 133 | 109 | 80 | 95 | | Utility-scale solar | 145 | 158 | 127 | 51 | | Distributed energy & storage | 64 | 95 | 85 | 29 | | Sustainable solutions | 119 | 32 | 30 | 9 | | Corporate | — | (7) | (140) | (60) | | **Total** | **804** | **586** | **278** | **253** | - The hydroelectric segment's FFO decreased to **$96 million** from **$129 million** YoY, mainly due to lower resources in North America[84](index=84&type=chunk)[85](index=85&type=chunk) - The utility-scale solar segment's FFO increased significantly to **$127 million** from **$51 million** YoY, driven by newly acquired and commissioned facilities and stronger generation[90](index=90&type=chunk) - The company's power portfolio has a weighted-average remaining contract duration of **13 years**. For the remainder of 2024, **93%** of generation is contracted, decreasing to **80%** by 2028[101](index=101&type=chunk)[102](index=102&type=chunk) Reconciliation of Net Income (loss) to Funds From Operations (FFO) (in millions) | Line Item | Three months ended Sep 30, 2024 ($M) | Three months ended Sep 30, 2023 ($M) | | :--- | :--- | :--- | | Net income (loss) ($M) | (39) | 24 | | Depreciation ($M) | 514 | 448 | | Foreign exchange and financial instruments gain ($M) | (186) | (114) | | Other adjustments ($M) | 142 | 9 | | Amount attributable to equity accounted investments and non-controlling interest ($M) | (182) | (126) | | **Funds From Operations ($M)** | **278** | **253** | [Part 5 – Liquidity and Capital Resources](index=34&type=section&id=Part_5_%E2%80%93_Liquidity_and_Capital_Resources) Brookfield Renewable maintains **$4.6 billion** in liquidity, with **89%** non-recourse debt, and for nine months, operating cash flow was **$1.05 billion**, financing provided **$1.90 billion**, and investing used **$2.74 billion**, resulting in a **$187 million** increase in cash Capitalization Summary (as of September 30, 2024) | Metric | Corporate (%) | Consolidated (%) | | :--- | :--- | :--- | | Debt-to-total capitalization | 25 | 45 | | Debt-to-total capitalization (market value) | 13 | 39 | - Total available liquidity as of September 30, 2024, was **$4.55 billion**, comprising **$564 million** in cash, **$166 million** in marketable securities, and available credit facilities[106](index=106&type=chunk) Summary of Consolidated Cash Flows (Nine months ended Sep 30, in millions) | Activity | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | | **Operating activities ($M)** | **1,053** | **1,408** | | **Financing activities ($M)** | **1,901** | **520** | | **Investing activities ($M)** | **(2,739)** | **(1,906)** | | Foreign exchange (loss) on cash ($M) | (28) | 14 | | **Increase in cash and cash equivalents ($M)** | **187** | **36** | - For the nine months ended Sep 30, 2024, investing activities included **$2.6 billion** for investment in property, plant, and equipment and **$109 million** for acquisitions, net of cash[114](index=114&type=chunk)[116](index=116&type=chunk) [Part 6 – Selected Quarterly Information](index=42&type=section&id=Part_6_%E2%80%93_Selected_Quarterly_Information) This section presents unaudited quarterly financial trends for the past eight quarters, highlighting FFO's general upward trend from **$225 million** in Q4 2022 to **$278 million** in Q3 2024, along with proportionate results Summary of Historical Quarterly Results (in millions, except per unit data) | Metric | Q3 2024 ($M) | Q2 2024 ($M) | Q1 2024 ($M) | Q4 2023 ($M) | Q3 2023 ($M) | Q2 2023 ($M) | Q1 2023 ($M) | Q4 2022 ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | 1,470 | 1,482 | 1,492 | 1,323 | 1,179 | 1,205 | 1,331 | 1,196 | | Net loss attributable to Unitholders | (181) | (154) | (120) | 35 | (64) | (39) | (32) | (82) | | Funds From Operations | 278 | 339 | 296 | 255 | 253 | 312 | 275 | 225 | | FFO per Unit ($) | 0.42 | 0.51 | 0.45 | 0.38 | 0.38 | 0.48 | 0.43 | 0.35 | Proportionate Results for the Nine Months Ended September 30 (in millions) | Segment | Revenues 2024 ($M) | Adjusted EBITDA 2024 ($M) | FFO 2024 ($M) | FFO 2023 ($M) | | :--- | :--- | :--- | :--- | :--- | | Hydroelectric | 1,165 | 723 | 425 | 519 | | Wind | 457 | 366 | 270 | 279 | | Utility-scale solar | 358 | 365 | 279 | 168 | | **Total** | **2,509** | **1,790** | **913** | **840** | [Part 7 – Critical Estimates, Accounting Policies and Internal Controls](index=47&type=section&id=Part_7_%E2%80%93_Critical_Estimates_Accounting_Policies_and_Internal_Controls) The company's IFRS financial statements rely on critical estimates for asset valuation and taxes, with recent IAS amendments having no material impact, and no material changes to internal controls - Critical accounting estimates relate to the valuation of property, plant and equipment, financial instruments, deferred income tax liabilities, and goodwill, which rely on assumptions about future electricity prices, discount rates, and generation levels[134](index=134&type=chunk) - The company adopted amendments to IAS 12 (Pillar Two model rules) and IAS 1 (Presentation of Financial Statements) effective **January 1, 2024**, with no material impact noted[135](index=135&type=chunk)[136](index=136&type=chunk) - No material changes were made to internal control over financial reporting during the nine months ended September 30, 2024[138](index=138&type=chunk) [Part 8 – Presentation to Stakeholders and Performance Measurement](index=49&type=section&id=Part_8_%E2%80%93_Presentation_to_Stakeholders_and_Performance_Measurement) This section outlines Brookfield Renewable's reporting framework, including equity presentation, generation calculations, and the use of non-IFRS performance metrics like Adjusted EBITDA and FFO on a proportionate basis - The company uses non-IFRS measures like **Adjusted EBITDA** and **Funds From Operations (FFO)** to assess performance, as management believes they better reflect the underlying business by excluding certain non-cash or volatile items[147](index=147&type=chunk)[153](index=153&type=chunk) - Results are reported on a proportionate basis, which reflects Brookfield Renewable's economic share from all investments (consolidated and equity-accounted) to provide a perspective aligned with unitholder interests[149](index=149&type=chunk) - The company's operations are segmented by technology: 1) hydroelectric, 2) wind, 3) utility-scale solar, 4) distributed energy and storage, 5) sustainable solutions, and 6) corporate[147](index=147&type=chunk) [Part 9 – Cautionary Statements](index=53&type=section&id=Part_9_%E2%80%93_Cautionary_Statements) This section provides cautionary statements regarding forward-looking information, which is subject to risks, and clarifies that non-IFRS measures like Adjusted EBITDA and FFO are supplemental and not directly comparable - Forward-looking statements in the report are subject to risks and uncertainties, including economic conditions, energy market volatility, regulatory changes, and equipment failures, which could cause actual results to differ materially[156](index=156&type=chunk) - Non-IFRS measures like **Adjusted EBITDA** and **Funds From Operations** are used as supplemental measures and may not be comparable to similar measures used by other entities[159](index=159&type=chunk) [Consolidated Financial Statements](index=55&type=section&id=Consolidated_Financial_Statements) This section presents the unaudited interim consolidated financial statements for Q3 and YTD 2024, prepared under IFRS, including statements of financial position, income, comprehensive income, changes in equity, and cash flows [Consolidated Statements of Financial Position](index=55&type=section&id=Consolidated_Statements_of_Financial_Position) As of September 30, 2024, total assets were **$75.17 billion**, total liabilities **$47.22 billion** (including **$25.31 billion** non-recourse borrowings), and total equity **$27.95 billion** Consolidated Balance Sheet Summary (in millions) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets ($M)** | **75,173** | **76,128** | | Cash and cash equivalents ($M) | 1,266 | 1,141 | | Property, plant and equipment, at fair value ($M) | 61,389 | 64,005 | | Assets held for sale ($M) | 2,643 | — | | **Total Liabilities ($M)** | **47,220** | **46,149** | | Corporate borrowings ($M) | 4,160 | 2,833 | | Non-recourse borrowings ($M) | 25,307 | 26,869 | | **Total Equity ($M)** | **27,953** | **29,979** | [Consolidated Statements of Income (Loss)](index=56&type=section&id=Consolidated_Statements_of_Income_%28Loss%29) Q3 2024 saw a net loss of **$39 million** on **$1.47 billion** revenue, while the nine-month period resulted in a **$197 million** net loss on **$4.44 billion** revenue, with a **$0.32** basic loss per LP unit for Q3 Consolidated Income Statement Summary (in millions) | Metric | Three months ended Sep 30, 2024 ($M) | Nine months ended Sep 30, 2024 ($M) | | :--- | :--- | :--- | | Revenues | 1,470 | 4,444 | | Direct operating costs | (623) | (1,875) | | Interest expense | (514) | (1,479) | | Depreciation | (514) | (1,533) | | **Net income (loss)** | **(39)** | **(197)** | | Net loss attributable to Limited partners' equity | (92) | (238) | | **Basic and diluted loss per LP unit ($)** | **(0.32)** | **(0.83)** | [Consolidated Statements of Comprehensive Income (Loss)](index=57&type=section&id=Consolidated_Statements_of_Comprehensive_Income_%28Loss%29) Q3 2024 comprehensive income was **$192 million**, a positive shift from prior year, while the nine-month period reported a **$1.19 billion** comprehensive loss, largely due to foreign currency translation Consolidated Comprehensive Income (Loss) Summary (in millions) | Metric | Three months ended Sep 30, 2024 ($M) | Nine months ended Sep 30, 2024 ($M) | | :--- | :--- | :--- | | Net income (loss) | (39) | (197) | | Other comprehensive income (loss) | 231 | (993) | | **Comprehensive income (loss)** | **192** | **(1,190)** | [Consolidated Statements of Changes in Equity](index=58&type=section&id=Consolidated_Statements_of_Changes_in_Equity) Total equity decreased by **$2.03 billion** to **$27.95 billion** as of September 30, 2024, primarily due to net loss, other comprehensive losses, and **$1.38 billion** in distributions - Total equity decreased by **$2.03 billion** during the first nine months of 2024, from **$29.98 billion** to **$27.95 billion**[170](index=170&type=chunk) - Key drivers of the equity decrease were the net loss (**$197M**), other comprehensive loss (**$993M**), and distributions declared (**$1,376M**)[170](index=170&type=chunk) [Consolidated Statements of Cash Flows](index=60&type=section&id=Consolidated_Statements_of_Cash_Flows) For the nine months ended September 30, 2024, operating cash flow was **$1.05 billion**, financing activities provided **$1.90 billion**, and investing activities used **$2.74 billion**, resulting in a **$187 million** increase in cash Consolidated Cash Flow Summary (Nine months ended Sep 30, in millions) | Activity | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | | **Operating activities ($M)** | **1,053** | **1,408** | | **Financing activities ($M)** | **1,901** | **520** | | **Investing activities ($M)** | **(2,739)** | **(1,906)** | | Foreign exchange (loss) on cash ($M) | (28) | 14 | | **Increase in cash and cash equivalents ($M)** | **187** | **36** | [Notes to the Unaudited Interim Consolidated Financial Statements](index=61&type=section&id=Notes_to_the_Unaudited_Interim_Consolidated_Financial_Statements) The notes provide detailed explanations of accounting policies and figures, covering acquisitions, asset disposals, **$2.6 billion** in assets held for sale, risk management, segment information, borrowings, and related party transactions - **Note 2 (Acquisitions):** Completed the acquisition of a **74%** interest in an India wind portfolio (**524 MW** operating, **2.75 GW** pipeline) and a South Korea distributed generation platform (**103 MW** operating/under construction, **2.2 GW** pipeline)[183](index=183&type=chunk)[184](index=184&type=chunk) - **Note 4 (Assets Held for Sale):** As of Sep 30, 2024, **$2.64 billion** in assets were classified as held for sale, including portfolios in the U.S., Brazil, U.K., Spain, and India[190](index=190&type=chunk) - **Note 9 (Borrowings):** Corporate borrowings increased to **$4.16 billion** from **$2.83 billion** at year-end 2023, partly due to new medium-term note issuances. Non-recourse borrowings decreased slightly to **$25.31 billion**[222](index=222&type=chunk)[227](index=227&type=chunk) - **Note 19 (Commitments):** The company has outstanding capital expenditure commitments of **$3.67 billion**, primarily for growth initiatives[250](index=250&type=chunk) - **Note 22 (Subsequent Events):** After the quarter, the company agreed to acquire a **12%** interest in a **~3.5 GW** U.K. offshore wind portfolio for an enterprise value of **~$2.3 billion** and agreed to sell a **1.6 GW** portfolio of wind and solar assets in India[261](index=261&type=chunk) ```

Financial Data and Key Metrics - The company delivered record funds from operations (FFO) of $339 million in Q2 2024, up 9% year-over-year, or $0.51 per unit [22] - The company invested nearly $9 billion in growth opportunities, with $1 billion net to Brookfield Renewable, a record for the business [5] - The company expects to commission approximately 7 gigawatts of new capacity in 2024, adding $90 million of annual incremental FFO [24] - The company has $4.4 billion of available liquidity and expects to generate $3 billion ($1.3 billion net) in proceeds from asset sales in 2024 [25] Business Line Data and Key Metrics - The hydro fleet benefited from strong pricing due to accelerating demand for clean power [23] - Wind and solar segments saw growth from recent platform additions in North America, the UK, and India [23] - The distributed Energy Storage and Sustainable Solutions segments continued to show meaningful growth [23] - The company commissioned approximately 1.4 gigawatts of new capacity in Q2 2024 [5] - The company now has over 230,000 megawatts in its development pipeline, with 65,000 megawatts in advanced stages [11] Market Data and Key Metrics - Data center demand is driving unprecedented electricity demand, with data centers expected to account for 10-20% of global and US electricity consumption by the end of the decade [7] - The global installed capacity for electricity generation is expected to more than double over the next 20 years [7] - Wind and solar accounted for approximately 13% of global electricity consumption in 2023, up from a negligible portion two decades ago [8] - The cost of solar and wind has decreased by 90% and 65%, respectively, over the last 15 years [9] Company Strategy and Industry Competition - The company is focused on acquiring high-quality platforms in core markets with advanced pipelines to meet current customer demand [30] - The company is leveraging its large operating fleet and expansive development pipeline to position itself as a key enabler of the technology sector [11] - The company is investing in battery energy storage systems, with cost reductions driving increased demand [13] - The company is focused on delivering 12-15% long-term total returns by prudently deploying capital and executing operating initiatives [27] Management Commentary on Operating Environment and Future Outlook - The company sees a constructive market environment for renewables, with demand outpacing supply driven by data center demand and broader electrification [6] - The company expects to deliver double-digit FFO per unit growth for the year [5] - The company is well-positioned to benefit from the growing demand for clean energy solutions, particularly from technology companies and industrial customers [12] - The company is optimistic about the future of battery storage, with cost declines and increasing demand driving growth [13] Other Important Information - The company announced a proposed acquisition of Neoen, valued at $6.7 billion equity value, which will enhance its position in core renewables markets [17] - Neoen brings over 8 gigawatts of operating or under-construction assets and a 20-gigawatt advanced-stage development pipeline [19] - The company secured 20-year capacity contracts for 800 megawatts of battery storage in Ontario and began construction on 220 megawatts of battery storage in Texas [14] Q&A Session Summary Question: Advanced Development Pipeline Growth - The company explained that the increase in the advanced development pipeline to 65 gigawatts was due to acquisitions and a refined categorization process [28] - The company expects to ramp up annual commissioning capacity to around 10 gigawatts over the next few years [29] Question: Flexible Gas-Fired Power Strategy - The company reiterated its focus on renewable technologies but acknowledged that gas will play a role in the electricity mix to meet growing demand [31] Question: Solar and Battery Storage Dominance - The company confirmed that solar and battery storage are expected to dominate its development pipeline due to cost competitiveness and demand [34] Question: New Market Opportunities - The company is not actively seeking new markets but remains opportunistic, with growth expected primarily in existing regions [36] Question: Asset Sale Dynamics - The company highlighted a robust market for high-quality cash-generative assets, with strong demand from strategic buyers [41] Question: Technology Company Partnerships - The company is seeing increased interest from corporate buyers for renewable energy solutions, similar to its framework agreement with Microsoft [44] Question: Neoen Acquisition and Competition Review - The company is working through regulatory approvals for the Neoen acquisition, with no significant surprises expected [48] Question: PJM Auction Exposure - The company has a strong position in the PJM market, with the recent capacity auction providing a tailwind for future revenue [50] Question: Distributed Generation Expansion - The company remains cautious about residential distributed generation but sees potential in commercial and industrial markets [54] Question: Larger M&A Deals - The company has the capacity and appetite for larger M&A deals, with a strong funding plan in place [57] Question: Interest Rates and M&A Activity - The company noted that declining interest rates and tight credit spreads are driving increased M&A activity [59] Question: FFO Growth Target - The company expects to achieve its 10% FFO per unit growth target for 2024, despite some nuances in Q2 results [61] Question: Wind and Solar Portfolio Pricing - The company attributed the year-on-year decline in average price per megawatt hour to regulatory impacts in Spain and lower PPA prices for new assets [71]

Financial Performance - Revenues for Q2 2024 were $1.482 billion, a 23% increase compared to $1.205 billion in Q2 2023[85] - Net loss attributable to Unitholders for Q2 2024 was $154 million, compared to $39 million in Q2 2023[85] - Proportionate Adjusted EBITDA for Q2 2024 was $629 million, up 7.3% from $586 million in Q2 2023[85] - Revenues for Q2 2024 totaled $1,482 million, a $277 million increase compared to the same period in 2023, driven by business growth, inflation escalation, and high asset availability[96] - Net loss for Q2 2024 was $88 million, a $239 million decrease compared to the prior year, primarily due to increased costs and foreign exchange impacts[96] - Total revenues for the three and six months ended June 30, 2024 were $1,482 million and $2,974 million, respectively, compared to $1,205 million and $2,536 million in 2023[161] - Net income (loss) attributable to Unitholders for Q2 2024 was $(154) million, compared to $(39) million in Q2 2023[166] - Basic loss per LP unit for Q2 2024 was $(0.28), compared to $(0.10) in Q2 2023[166] - Distribution per LP unit for Q2 2024 was $0.36, consistent with Q2 2023[166] - Net loss attributable to Unitholders for the three months ended June 30, 2024, was $39 million[211] - Revenues totaled $2,974 million, an increase of $438 million (17.3%) year-over-year, driven by business growth, inflation escalation, and high asset availability[217] - Net loss decreased by $486 million (75.5%) to $158 million, influenced by foreign exchange impacts and operational changes[217] - Consolidated revenue for the three months ended June 30, 2024, was $1,482 million, a 23% increase from $1,205 million in 2023[237] - Wind segment revenue for the three months ended June 30, 2024, was $424 million, a 47% increase from $289 million in 2023[237] - Utility-scale solar revenue for the three months ended June 30, 2024, was $259 million, a 49% increase from $174 million in 2023[237] - Hydroelectric revenue for the three months ended June 30, 2024, was $682 million, a 6% increase from $644 million in 2023[237] - Distributed energy & storage revenue for the three months ended June 30, 2024, was $113 million, a 23% increase from $92 million in 2023[237] Operational Metrics - Total generation capacity reached 34,189 MW in Q2 2024, a 32.2% increase from 25,859 MW in Q2 2023[85] - Brookfield Renewable secured contracts for an incremental 2,700 GWh/year of generation, with ~90% contracted to corporate customers[87] - The company's development pipeline stands at over 200 GW, with 65 GW at an advanced stage, and expects to commission 7 GW of new capacity in 2024[95] - Recently acquired and commissioned facilities contributed 3,957 GWh of generation and $221 million to revenues, partially offset by asset sales reducing generation by 76 GWh and revenues by $7 million[96] - Total generation for Q2 2024 was 20,602 GWh, compared to 17,798 GWh in Q2 2023[166] - Proportionate generation for the six months ended June 30, 2024 was 16,759 GWh, up from 15,650 GWh in 2023[167] - Generation (GWh) – actual was 395 for the three months ended June 30, 2024[127] - The company's power portfolio has a weighted-average remaining contract duration of 13 years on a proportionate basis, with contracted profiles of approximately 90% in Brazil and 80% in Colombia[136] - Secured generation under financial contracts includes 553 GWh for 2024, 1,322 GWh for 2025, 967 GWh for 2026, 725 GWh for 2027, and 63 GWh for 2028[136] - Weighted-average remaining contract durations are 14 years in North America, 14 years in Europe, 10 years in Brazil, 4 years in Colombia, and 15 years across remaining jurisdictions[136] - Contracted generation as a percentage of total generation on a proportionate basis is 90% for 2024, decreasing to 78% by 2028[137] - Economic exposure of contracted generation is distributed as: power authorities (35%), distribution companies (23%), commercial & industrial users (31%), and Brookfield (11%)[136] Liquidity and Financing - The company has $4.4 billion of available liquidity and executed $1.7 billion of project-level financings in Q2 2024[87] - Brookfield Renewable issued $150 million of perpetual subordinated notes at a fixed rate of 7.25% in Q1 2024[108] - The company has a $400 million committed unsecured revolving credit facility from Brookfield Corporation, with no draws during the current period[102] - Brookfield Renewable redeemed all outstanding Series 15 Preferred Units for C$175 million in Q2 2024[109] - Available liquidity stands at $4,425 million as of June 30, 2024, including $559 million in cash and cash equivalents[141] - Weighted-average interest rates for corporate borrowings are 6.6% for credit facilities, 5.9% for commercial paper, and 4.5% for medium-term notes[142] - Proportionate non-recourse borrowings total $11,247 million with a weighted-average interest rate of 5.4% and term of 11 years[142] - The company issued C$300 million Series 18 and C$100 million Series 17 medium-term notes on July 17, 2024[139][141] - Total debt principal repayments and scheduled amortization as of June 30, 2024, amount to $14.408 billion, with $3.161 billion from medium-term notes and $4.484 billion from non-recourse borrowings[144] - Capital expenditures are funded through operational cash flow and non-recourse debt, with $2.45 billion in committed revolving credit facilities available for investments and acquisitions[145] - Cash flows from operating activities for the six months ended June 30, 2024, totaled $555 million, compared to $1.045 billion in 2023[147] - Cash flows from financing activities for the six months ended June 30, 2024, were $1.329 billion, driven by corporate and non-recourse financings, including $297 million from medium-term notes and $150 million from perpetual green subordinated notes[149] - Distributions to Unitholders increased by 5.2% to $1.42 per LP unit annually, with $531 million paid in the first six months of 2024[149] - Cash flows used in investing activities for the six months ended June 30, 2024, were $1.729 billion, including $1.660 billion invested in property, plant, and equipment for renewable energy projects[157] - The company invested in 3,770 MW of wind, solar, distributed generation, and storage projects in the U.S., 660 MW in Brazil, and 1,070 MW in India during the first six months of 2024[157] - Proceeds from asset sales in the first six months of 2024 totaled $283 million, including the sale of a 30 MW hydroelectric asset and a 60 MW battery storage asset in the U.S.[157] - Brookfield Renewable issued C$300 million of Series 18 medium-term notes with a fixed interest rate of 4.96% and a maturity date of October 30, 2034[187] - Brookfield Renewable issued C$100 million of Series 17 medium-term notes with a fixed interest rate of 5.32% and a maturity date of January 10, 2054[187] - Brookfield Renewable issued $150 million of perpetual subordinated notes at a fixed rate of 7.25% during the first quarter of 2024[256] - Distributions paid on perpetual subordinated notes during the six months ended June 30, 2024, totaled $17 million, compared to $14 million in 2023[256] - Brookfield Renewable redeemed all outstanding Series 15 Preferred Limited Partnership units for C$175 million during the quarter[257] - No Class A Preferred Limited Partnership Units were repurchased during the three and six months ended June 30, 2024[257] - Brookfield Renewable has $3.7 billion in capital expenditure commitments as of June 30, 2024, with $2.1 billion payable in 2024, $1.173 billion in 2025, $488 million from 2026 to 2028, and $3 million thereafter[272] - Brookfield Renewable has issued letters of credit totaling $2.006 billion as of June 30, 2024, including $115 million with institutional partners and $1.891 billion through subsidiaries[278] - Brookfield Renewable has a $400 million committed unsecured revolving credit facility provided by Brookfield Corporation, maturing in December 2024, with no draws during the current period[280] - Brookfield Renewable has $431 million in borrowings from Brookfield Reinsurance as of June 30, 2024, classified as due to related party[280] Acquisitions and Investments - Brookfield Renewable agreed to acquire a 53% stake in Neoen for $6.7 billion, adding 8 GW of operating and in-construction assets[88] - Brookfield Renewable deployed or committed to deploy $8.6 billion of capital globally, including acquisitions in India, South Korea, and Australia[88] - The company will become one of the largest battery developers with 2,300 MW of operating and under-construction capacity after closing the Neoen acquisition[89] - Brookfield Renewable acquired a 75% interest in a renewables development platform in Australia with over 2 GW of wind and co-located battery projects for $162 million ($32 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a 74% interest in a wind-focused commercial and industrial renewable business in India with 500 MW of operating assets and a 3 GW development pipeline for $89 million ($18 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a fully integrated solar-focused renewables platform in South Korea with 103 MW of distributed generation assets and a 2.2 GW development pipeline for $17 million ($3.4 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a 70% interest in a 238 MW portfolio of utility-scale solar development assets in South Korea for $13 million ($3 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a 150 MW wind facility in China for $42 million ($8 million net to Brookfield Renewable)[187] - Brookfield Renewable increased its total interest in Powen to approximately 50% (10% net to Brookfield Renewable) through a subscription for additional shares[187] - Brookfield Renewable plans to acquire wind projects in China with capacities of 102 MW and 350 MW, with considerations of CNY 116 million ($16 million) and CNY 790 million ($109 million) respectively, both expected to close in Q4 2024[274] - In Brazil, Brookfield Renewable is developing 829 MW and operating 13 MW of distributed energy and storage projects, with a consideration of R$340 million ($60 million), expected to close between 2024 and 2026[274] - Brookfield Renewable is involved in a European acquisition with an enterprise value of €6.1 billion ($6.7 billion) for Neon, targeting 23 GW of development and 5 GW of operating capacity, with an expected close in Q4 2024[274] - In India, Brookfield Renewable is acquiring 524 MW of operating capacity and 2.75 GW of development capacity for $89 million, with an expected close in Q3 2024[274] Segment Performance - Proportionate revenue for hydroelectric operations in Q2 2024 was $381 million, down from $398 million in Q2 2023[116] - Proportionate Adjusted EBITDA for hydroelectric operations in Q2 2024 was $231 million, down from $270 million in Q2 2023[116] - Proportionate Funds From Operations for hydroelectric operations in Q2 2024 was $136 million, down from $171 million in Q2 2023[116] - Proportionate revenue for wind operations in Q2 2024 was $154 million, up from $129 million in Q2 2023[120] - Proportionate Funds From Operations for utility-scale solar operations in Q2 2024 was $91 million, up from $77 million in Q2 2023[126] - Proportionate Funds From Operations for sustainable solutions in Q2 2024 was $42 million, up from $10 million in Q2 2023[123] - Proportionate total revenue for Q2 2024 was $830 million, up from $719 million in Q2 2023[115] - Revenue for the distributed energy & sustainable solutions business was $61 million for the three months ended June 30, 2024[127] - Adjusted EBITDA for the distributed energy & sustainable solutions business was $54 million for the three months ended June 30, 2024[127] - Funds From Operations for the distributed energy & sustainable solutions business was $44 million for the three months ended June 30, 2024[127] - Revenue for the three months ended June 30, 2024, was $114 million compared to $14 million in 2023[127] - Adjusted EBITDA for the three months ended June 30, 2024, was $51 million compared to $11 million in 2023[127] - Funds From Operations for the three months ended June 30, 2024, was $42 million compared to $10 million in 2023[127] - Adjusted EBITDA attributable to Unitholders was $629 million for the three months ended June 30, 2024[130] - Funds From Operations was $339 million for the three months ended June 30, 2024, compared to $312 million in 2023[134] - Basic loss per LP unit was $(0.28) for the three months ended June 30, 2024, compared to $(0.10) in 2023[134] - North America segment reported a net income of $119 million, while the Corporate segment incurred a net loss of $216 million, resulting in a total net loss of $158 million[169] - Adjusted EBITDA attributable to Unitholders was $1,204 million, with North America contributing $371 million and Corporate contributing $33 million[169] - Depreciation expenses totaled $1,019 million, with the largest contributions from Utility-scale Wind ($406 million) and Hydroelectric ($207 million)[169] - Funds From Operations for the six months ended June 30, 2024, were $635 million, compared to $587 million in the same period in 2023[173] - Basic loss per LP unit for the six months ended June 30, 2024, was $(0.51), compared to $(0.20) in the same period in 2023[174] - Average units outstanding for the six months ended June 30, 2024, were 664.1 million, up from 647.8 million in 2023[173] - Funds From Operations (FFO) for North America was $97 million, down from $114 million due to lower generation and currency weakening[225] - FFO for distributed energy & sustainable solutions was $44 million, slightly down from $45 million, impacted by lower same-store generation[227] - Total revenues for the six months ended June 30, 2024, were $2,974 million, with North America contributing $559 million, Hydroelectric Brazil $112 million, Colombia $151 million, and Wind $324 million[232] - Funds From Operations (FFO) for the period totaled $635 million, with significant contributions from North America ($234 million), Wind ($190 million), and Utility-scale solar ($152 million)[232] - Total assets as of June 30, 2024, amounted to $73,799 million, including $15,916 million in North America, $1,682 million in Hydroelectric Brazil, and $6,569 million in Wind[235] - Property, plant, and equipment stood at $61,826 million, with North America accounting for $14,851 million, Hydroelectric Brazil $1,353 million, and Wind $5,734 million[235] - Total liabilities as of June 30, 2024, were $45,818 million, with North America representing $9,074 million, Hydroelectric Brazil $542 million, and Wind $4,410 million[235] - Cash and cash equivalents increased to $1,236 million as of June 30, 2024, from $1,141 million at December 31, 2023[235] - Direct operating costs for the six months ended June 30, 2024, were $1,252 million, with North America accounting for $204 million, Hydroelectric Brazil $37 million, and Wind $118 million[232] - Interest expense for the period was $965 million, with North America contributing $134 million, Hydroelectric Brazil $8 million, and Wind $60 million[232] - Current income taxes for the six months ended June 30, 2024, totaled $44 million, with North America accounting for $3 million, Hydroelectric Brazil $3 million, and Wind $7 million[232] - Foreign exchange and financial instrument gain for the period was $236 million[232] Asset and Liability Management - Property, plant and equipment decreased by $2.2 billion to $61.8 billion as of June 30, 2024, due to asset disposals, currency fluctuations, and depreciation[99] - Assets held for sale totaled $412 million as of June 30, 2024, including wind assets in the UK, hydroelectric assets in Brazil, and distributed generation assets in the U.S.[100] - Brookfield Renewable completed the sale of a 30 MW hydroelectric asset, an 85 MW biomass portfolio, and a 60 MW battery storage asset in Q2 2024[100] - Total LP units on a fully-exchanged basis decreased to 659,181,663 as of June 30, 2024, from 661,303,805 at the end of

Financial Data and Key Metrics Changes - The company generated record funds from operations (FFO) of $296 million in Q1 2024, representing an 8% year-over-year increase, equating to $0.45 per unit [15] - The company is positioned to achieve its target of over 10% FFO per unit growth for the year [15] Business Line Data and Key Metrics Changes - The hydro assets demonstrated strong cash flow resiliency due to a diversified asset base and inflation-linked power purchase agreements [15] - The Wind and Solar segments benefited from recent acquisitions, including Deriva and OnPath, contributing positively to overall performance [15] - The Distributed Energy and Storage segment saw growth from recent development activities, while the Sustainable Solutions segment performed well due to contributions from Westinghouse [15] Market Data and Key Metrics Changes - Global renewable capacity additions grew by 50% in 2023 compared to the previous year, indicating a strong market demand for renewable energy [11] - The demand for power is expected to increase significantly due to trends in digitalization, electrification, and the growth of AI and cloud computing [10][11] Company Strategy and Development Direction - The company has signed a landmark renewable energy framework agreement with Microsoft to deliver over 10.5 gigawatts of new renewable energy capacity in the U.S. and Europe between 2026 and 2030 [5][6] - The strategy focuses on building leading platforms across key power markets globally, leveraging local relationships for permitting and interconnection [5][8] - The company aims to expand its partnerships with major technology players and is well-positioned to meet the increasing energy demand from these sectors [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant growth in demand for power driven by cloud computing and AI, indicating a favorable environment for renewable energy developers [3][10] - The company remains optimistic about capital deployment accelerating throughout the year, supported by a robust growth pipeline and favorable market conditions [13][14] - Management expressed confidence in achieving long-term total returns of 12% to 15% for investors [18] Other Important Information - The company executed nearly $6 billion in financing during the quarter, taking advantage of low pricing spreads [16] - The company has a strong balance sheet with $4.4 billion in available liquidity, positioning it to capitalize on growth opportunities [17] - The company is targeting to generate $3 billion in proceeds from asset recycling, with $1.3 billion net to Brookfield Renewable expected this year [14] Q&A Session Summary Question: Details on the Microsoft agreement and focus between North America and Europe - The majority of the agreement's focus is on the United States, aligning with the largest data center markets [19][20] Question: Impact of U.S. trade actions on solar panel imports - The company has diversified its procurement sources and does not foresee current trade actions slowing its growth profile [21][22][23] Question: Market opportunity for power and data - There is a significant imbalance between supply and demand for clean power, with a meaningful portion of growth expected from the tech sector [25][26] Question: Terms of the framework agreement with Microsoft - The agreement includes long-term contracts, typically 15 to 20 years, with inflation-linked pricing [28][29] Question: Development capacity and potential for other agreements - The company has the capacity to pursue additional framework agreements beyond the one with Microsoft [35][36] Question: Capital recycling and market dynamics - The company is seeing strong demand for high-quality derisked assets and expects to meet its capital recycling targets [40][44] Question: Framework agreement's influence on M&A pursuits - The agreement with Microsoft reinforces the company's strategy of acquiring high-quality pipelines in critical markets [47][48] Question: Competition in providing renewable packages - The company differentiates itself through capital access, operational capabilities, and an existing pipeline of projects [51][52] Question: Buy versus build dynamics in the market - The company sees opportunities for both investing and capital recycling, with a robust pipeline for growth [54]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 20-F o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commiss ...