Brookfield Asset Management Corporate Profile

1. Brookfield Asset Management Inc. A Global Alternative Asset Management Company Focused on Property, Renewable Power, Infrastructure and Private Equity
Corporate Profile
May 2016

2. 2 Cautionary Note Concerning Forward- Looking Statements
This Corporate Profile 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, and
include words 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. ”
Notes, assumptions, and definitions can be found in the appendices.

3. 3 Overview

Our Business Page 4


Additional Information
‒Asset Management Fee Streams Page 13
‒Asset Management Growth Potential Page 17
‒Invested Capital Page 19
‒Contact Information Page 22




100-year history as a global investor, operator and leading asset manager of high
quality real assets

4. 4
Listed Partnerships
47%
Private Funds 35%
Public Markets
10%
Transaction and advisory
8%
Property
Renewable Power
Infrastructure
Private Equity
Other
Assets Under Management ~$240 Billion
•Focused on high quality real assets
•Diversified by asset class and region
Invested Capital ~$30 Billion
4
•Generates $1.2 billion of annualized
distributable cash flow

•~85% invested in listed entities
5
Fee Bearing Capital ~$114 Billion
2

•Generates ~$2 billion of annualized
fees and target carried interest


•700 investment professionals
•Diversified by product mix and strategy
1)Other AUM includes Public Markets AUM of $16.4 billion
2)Based on March 31, 2016 FBC of $104 billion adjusted to include $9.4 billion of client Commitments raised in April 2016
3)Fee revenue based on annualized fees, excludes target carried interest
4)Prior to corporate leverage; using IFRS values as at March 31, 2016. See page 23 for detailed definition of Invested Capital
5)Pro forma Brookfield Business Partners (“BBU”) spin-off expected on June 20, 2016
Property
Renewable Power
Infrastructure
Private Equity
Public Markets
BPY
BEP
BIP
BBU
Other holdings
BPY
BEP
BIP
BBU
Other Holdings
Invested Capital

Distributable Cash Flow

Brookfield by the Numbers
1
Fee Revenue Diversification:
3

5. 5
Interest expense (223)
Corporate costs (119)
(342)


LAST TWELVE MONTHS
MARCH 31,2016
FFO
2,3
Fee related earnings

$ 596
Realized carried interest

30
626
Listed investments 1,266
Unlisted assets

263
Disposition gains 892
2,421
Total $ 3,047
Total $ 2,705
Per share $ 2.64
Fee Bearing Capital /
IFRS Values
1
Summarized Financial Performance
Our asset management business, alongside our invested capital, continues to
generate meaningful returns for our shareholders
Asset Manager
Recurring long-term fees received
from managing our funds and
carried interests
Invested Capital
Capital deployed in managed funds and on a direct basis which generate cash distributions
Capitalization
Conservative long-term
capitalization represents
14% LTV on invested capital
1)As at March 31, 2016; fee bearing capital includes $9.4 billion of client commitments raised in April 2016
2)In millions, except per share amounts
3)A detailed definition of Funds from Operations (“FFO”) can be found on page 23
$114bn

$29bn
$8bn

6. 6
•Large scale capital allows us to
pursue large transactions where
capital is scarce
•Global presence and global
mandates provide breadth of
opportunities
•Operating expertise facilitates
underwriting and enhances returns
•Deep history of global real asset
investing
•Value oriented culture focused on
long term investment returns
•Ability to invest in and operate
multiple asset classes
AS AN INVESTOR
Our Competitive Advantages
Our business strategy is simple and leverages our competitive advantages: large
scale capital; global reach; operating businesses

•Large scale funds enable investors
to deploy large scale capital
•Flexibility to invest across multiple
products
•Operating capability is a key
differentiator
•Alignment of interests
•Excellent performance record
•Real asset expertise aligns with
growing capital allocations
•Transparent operating model and
public company governance

AS AN ASSET MANAGER

7. 7 Asset Management – Diversified Multi-Fund Strategy
•Allows institutional investors to invest
large amounts of capital
•Targetted and predetermined
investment strategies
•Long- term investment horizon
reducing reinvestment risk
•Diversified security portfolios leveraging our core expertise
•Flexible and scalable investment mandates
•Delegate tactical investment decisions
Our clients have tremendous flexibility to invest with us through Listed Partnerships,
Private Funds and Public Markets across our Real Asset operating businesses
Listed Partnerships

Private Funds

Public Markets

•Exchange traded and highly liquid
•Flexible capital allocation across
broad asset class
•Consistent distribution yield
•Perpetual investment horizon
$46 billion $52 billion
1
$16 billion
FEE BEARING CAPITAL – $114 billion
1
Brookfield Asset Management


1)Includes $9.4 billion of private fund capital raised in April 2016

8. 8
-
200
400
600
800
1,000
1,200
1,400
2012 2013 2014 2015 2016 Annul.
Asset Management – Financial Performance


LAST TWELVE MONTHS
MARCH 31,2016
2016

2015

Change

Fee Bearing Capital

$ 103,922
$ 93,208 $ 10,714
Base Fees

Listed Partnerships $ 362
$ 332 $ 30
Private Funds 367 231 136
Public Markets 108 100 8
837 663 174
Incentive Distributions

79
54 25
Other

117
74 43
Fee Revenues

1,033
791 242
Direct Costs

(437) (390) (47)
FRE $ 596 $ 401 $ 195
Fee Revenues (LTM)
1
Annualized fee revenues are now $1.2 billion; we also generate $800 million of target
carried interest annually, increasing our overall fee run rate to nearly $2.0 billion
Transaction & Advisory Base Fees

IDR’s
$353
$465
$672
$791
$1,033
$1,143
Performance Fees
49%
1)Excludes carried interest

9. 9 Invested Capital
~85% of our Invested Capital is held through listed securities, creating strong levels of
financial flexibility and increased transparency
1

•BPY, BEP and BIP are diversified entities with a portfolio of high quality
core plus return asset portfolios with stable cash flows that support stable
distributions
‒The high- quality nature of their asset base has a proven ability to
withstand economic downturns and they are financed on a long-term
investment grade basis
‒The operating performance of the three flagship listed entities is
economically and structurally independent from one another
‒They each participate in our opportunistic or value add private funds,
providing enhanced returns to the core plus portfolio and aligning
interests
•Brookfield Business Partners (BBU), our flagship listed issuer for owning
our business and industrial operations, should increase listed securities to
over 85%, enhancing balance sheet liquidity

•Listed investments distribute $1.2 billion
3
in annualized cash flow


INVESTED CAPITAL ~ $30 billion
2
BPY
BEP
BIP
Other

Unlisted

Listed Partnerships
Other listed


1)Pro-forma formation and partial spin- off of BBU
2)Using IFRS values as at March 31, 2016. See page 23 for detailed definition of Invested Capital
3)Annualized distributed cash flow based on ownership as at March 31, 2016
Unlisted

BBU

10. 10 Capitalization and Liquidity
We are well positioned with a strong balance sheet and significant access to capital to
maintain our growth momentum
1)Based on IFRS values

•$6.4 billion of core liquidity
to fund growth ($2.9 billion
at BAM itself)

•Nearly $10 billion of
committed capital from
institutional partners

•~$23 billion of balance
sheet capital held in listed
investments
•Over $60 billion of permanent equity capitalization (consolidated); debt to capitalization: corporate (14%), proportionate (47%)

•Debt capital primarily in the form of investment grade; long- term limited recourse financing
secured at the asset level

•Minimal cross collateralization and parental guarantees provides stability and risk mitigation

•
Ability to raise third party capital through publicly listed and private funds

•Investment grade ratings: S&P: A-; DBRS: A Low; Moody’s: Baa2
(MILLIONS)
Q1’16

Cash and
financial assets

$ 2,082
Undrawn committed
credit facilities

4,287
Core Liquidity 6,369
Uncalled private fund
commitments
9,643
Total Liquidity $ 16,012
Strong and Flexible Capitalization Significant Liquidity
Access to Capital
Total 2016 2017 2018 2019 2020+
Average
Terms
Corporate borrowings 4,329$ $ 231 430$ -$ 463$ 3,205$ 8 years
Preferred shares 3,739 - - - - n/a perp.
8,068$ 231$ 430$ -$ 463$ 3,205$
AS AT MAR.31, 2016
(MILLIONS)
Maturity

11. 11
Strong fundraising and excellent track record

High growth fee streams providing stable cash flows and upside
potential through performance fees

Significant liquidity to fund future growth

Flexibility to allocate capital to asset classes and markets that
offer the best return

Diversified product offerings through multi-fund strategy

Strong alignment with Shareholders and Clients

~18% compound return over the past 20 years
Large Scale
Capital
Global
Presence
Operations
Focus
Why invest in Brookfield now?

12. Additional Information

13. 13

PERFORMANCE
NYSE / TSX
Total Return
6
Distributions
5 Year
Annualized
(Per Unit)
Target
Growth
Brookfield Infrastructure Partners

BIP / BIP.UN 19% $ 2.28 5% to 9%
Brookfield Renewable Partners

BEP / BEP.UN 10% 1.78 5% to 9%
Brookfield Property Partners

BPY / BPY.UN 8% 1.12 5% to 8%
Brookfield Business Partners

BBU / BBU.UN – 0.25 –
7
1)Annual base fee to Brookfield Asset Management
2)Based on capitalization of partnership (market capitalization plus recourse debt, net of cash)
3)On increases in capitalization; i nitial capitalization for BPY and BEP is $11.5 billion and $8.1 billion, respectively
4)Brookfield Business Partners to be spun- off to shareholders through a special distribution on June 20, 2016
5)Return hurdle based on quarterly growth of market value of units, subject to a high watermark initially set at $25 per unit
6)As at March 31, 2016, Source: Bloomberg, includes reinvestment of dividends. Brookfield Property Partners listed on NYSE April 2013; annualized return since inception
7)
Brookfield Business Partner’s level of distribution is not intended to grow as the partnership intends to reinvest its capital. Returns will be based on capital appreciation

Base Management Fees Incentive Distribution Rights
FEE STRUCTURE

Fixed
Base Fees
Equity
Enhancement
Fee (bps)
2,3
Annual Incentive
Distributions
Return
Hurdles
(1
st
& 2
nd
)
Brookfield Infrastructure Partners – 125
2
15% / 25% $1.22 / $1.32
Brookfield Renewable Partners $21M
1
125
3
15% / 25% $1.50 / $1.69
Brookfield Property Partners $50M
1
125
3
15% / 25% $1.10 / $1.20
Brookfield Business Partners
4
– 125
2
20% $25/unit
5
Asset Management – Listed Partnerships
Listed Partnerships are permanent capital, high growth entities; we earn contractual
base management and performance fees for managing these partnerships

14. 14
PERFORMANCE
1
Committed Capital
2

(US$ billions) Vintages Gross Net
Core Plus & Value Add
Property

$ 6 2004 – 2013 14% 12%
Infrastructure 12 2006 – 2013 15% 13%
Timberlands 3 2005 – 2012 7% 6%
Lending & Finance

6 2004 – 2014 13% 11%
Opportunistic
Property 19 2006 – 2015 23% 20%
Private Equity 6 2001 – 2015 23% 15%
1)As of March 31, 2016. Past performance is not indicative of future performance, for more information refer to page 15
2)Committed capital represents original committed/pledged capital, including current capital available for commitments, capital raised from funds in market and capital that may no
longer be available given the mandate of each product

TYPICAL FEE STRUCTURE

Base Fees
(bps)
Carried
Interest
Target
Return
Return
Hurdles
Core Plus and Value Add 100 – 150 ∼18% 10% to 15% ∼9%
Opportunistic and Private Equity 150 – 190 ∼20% 18% to 25% ∼11%
Asset Management – Private Funds
Private Funds generate long- term contractual base fees and have the opportunity to
earn carried interest upon exceeding pre- determined return hurdles
IRR

15. 15 Asset Management – Private Funds
1
Committed
Capital
2
Brookfield
(%)
3
Year
Formed
BROOKFIELD PROPERTY FUNDS
Opportunistic
Real Estate Opportunity I $240 52% 2006
Real Estate Opportunity II $260 29% 2007
Real Estate Turnaround $5,570 18% 2009
Strategic Real Estate Partners I * $4,350 31% 2012
Strategic Real Estate Partners II * $9,000 26% 2015
Brazil Retail Property $990 35% 2006
India Real Estate Opportunity Partners $282 - 2014
Thayer VI $312 48% 2014
Core Plus
Canadian Office C$1,045 21% 2005
U.S. Office $2,220 83% 2006
DTLA $1,100 45% 2013
Value Add / Finance
U.S. Multifamily Value Add I $325 13% 2011
U.S. Multifamily Value Add II $805 37% 2014
Real Estate Finance I $600 33% 2004
Real Estate Finance II $730 27% 2007
Real Estate Finance III $420 12% 2011
Real Estate Finance IV $1,375 18% 2014
Peninsula Brookfield India Real Estate $95 - 2013
Committed
Capital
2
Brookfield
(%)
3
Year
Formed
BROOKFIELD INFRASTRUCTURE FUNDS
Value Add
Global Infrastructure I * $2,660 25% 2009
Global Infrastructure II * $7,000 40% 2013
Colombia Infrastructure $360 28% 2009
Private Utility $1,370 28% 2006
Sustainable Resources
West Coast Timber $530 - 2005
Timberlands Fund V $1,002 25% 2012
Brazil Timber I $280 18% 2008
Brazil Timber II $270 19% 2012
Brazil Agriculture I $330 31% 2009
Brazil Agriculture II $500 22% 2015
BROOKFIELD PRIVATE EQUITY FUNDS
Opportunistic/Lending
Capital Partners II * C$1,000 40% 2006
Capital Partners III * $1,000 25% 2010
Capital Partners IV * $4,000 29% 2015
Bridge Lending III C$1,450 14% 2009
* Flagship funds. (1) Includes active investment vehicles managed by Brookfield, including non- securities and certain investment vehicles that do not qualify as private funds for
regulatory purposes. Excludes funds currently in the market and fully divested funds. (2) Brookfield participation includes commitments from; Brookfield Asset Management,
Brookfield Property Partners, Brookfield Renewable Partners, Brookfield Infrastructure Partners and Brookfield Business Partners

16. 16
Real
Estate
Equities
Fixed
Income
PERFORMANCE
1,2,3
Net Portfolio
Returns

Long-only equity strategies
Global real estate

17.0%
Global infrastructure 15.9%
Long/short strategies
Global real estate 15.8%
Global infrastructure 7.7%
1)As of March 31, 2016; Net portfolio returns represent annualized returns since inception of each respective strategy; Inception dates are as follows: Global real estate long- only –
December 31, 2008; Global infrastructure long- only – December 31, 2008; Global real estate long/short – July 31, 2002; Global infrastructure long/short – May 31, 2008
2)Net of management fees
3)
Past performance is not indicative of future performance



Asset Management – Public Markets
Public Markets focus on Real Asset listed investment opportunities globally, in both
equity and debt
Actively managed strategies offered through separately managed
accounts, mutual funds, UCITS funds, closed- end funds and private
hedge funds
Significant investor base managed on behalf of institutional and
retail investors
Fee Bearing Capital: ~$16 billion
Infrastructure
Equities

17. 17 Asset Management – Fee Bearing Capital Growth
We continue to increase fee bearing capital through our multi-product platform and are
well positioned for continued growth; we currently have five funds in the market
seeking to raise an additional $5 billion of client capital



Source: 2015 BAM Investor Day, as at June 30, 2015
Notes/Assumptions:
1)Fee bearing capital growth: 1) Listed partnerships midpoint of target distribution growth: BPY – 6.5%; BEP – 7.0%; BIP – 7.0%, 2) Listed partnerships capital issuance of $500
million each per annum for the next two years and $750 million each per annum thereafter, and 3) Private funds and public markets fee bearing capital growth at ~10% per
annum.
$160
$99
+10%
CAGR
Actual Interpolated Potential
1
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
($ billions)

•We target 10% growth in fee bearing capital
over the long-term:
•Experiencing accelerated growth in
private fund capital raises
•Listed partnership capital expands
with distribution increases, capital
issuances and M&A activity
•80% of fee bearing capital is perpetual
listed partnerships or long life private funds
(10-12 years)
$114
April 2016

18. 18
$1,130
Asset Management – Fee Related Earnings Growth
Fee related earnings have significant leverage to growth in fee bearing capital;
increasing at a much faster rate than fee bearing capital


Source: 2015 BAM Investor Day, as at June 30, 2015
Notes/Assumptions:
1)Fee related earnings growth: i) 2016– 2020 based on projected annualized results, ii) Listed partnerships base fee of initial amount plus 125 bps on any increases in
capitalization, iii) Private funds target weighted average base fee of 135 bps by 2020, iv) IDRs based on a 15% participation in distributions above initial threshold and 25%
beyond a second threshold, determined on a per share basis, and v) assumes listed entity dividend growth at mid- point of target distribution growth rates.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
$440
($ millions)
+21%
CAGR

•New capital earns higher base
management fees:
•Greater emphasis on higher return
value add and opportunistic
strategies
•Increases in partnership capital yields
125 bps compared to lower flat fee
on initial capitalization
•Public securities group moving to
higher fee equity strategies
•Incentive distributions increase at a ~36%
CAGR over the next 5 years
Q2-15
LTM Actual
Interpolated Potential
1
Q1-16
LTM Actual
$596

19. 19
62%
2
63% 78%
3
30%
Brookfield
Asset Management

(BAM)
Brookfield
Property Partners
(BPY)

Brookfield
Business Partners
(BBU)

Brookfield
Renewable Partners
(BEP)
1)Includes residential development operations, directly held real assets, and financial assets
2)Economic ownership interest
3)Estimated; to be 78% following spin- off and special distribution to shareholders on June 20, 2016
4)Portfolios of fixed income and equity securities managed on behalf of clients

Directly Held
Investments
1
Brookfield
Property
Funds

Brookfield
Private Equity
Funds
Public
Market
Funds
4
Core Office
Core Retail
Opportunistic
Utilities
Transport
Energy
Sustainable Resources
Communications
Private Equity
Industrial and Energy
Business Services
Hydroelectric
Wind
Brookfield
Infrastructure Partners
(BIP)
Brookfield
Investment
Management
(BIM)
Corporate Credit
Infrastructure Securities
Real Estate Securities
Securitized Credit
Fund Renewable Power Infrastructure
Invested Capital – Simple and Transparent Operating Model

20. 20 Invested Capital – Listed Partnerships
~85% of our invested capital is invested in our publicly traded listed partnerships;
which target increasing annual distributions and long- term total returns of 12%–15%
Brookfield
Property
Partners
(NYSE: BPY)

Brookfield Infrastructure Partners
(NYSE: BIP)
Brookfield Renewable Partners
(NYSE: BEP)
•A premier portfolio of high quality, long-life infrastructure assets across utilities, transport,
energy and communications in North and South America, Australia, and Europe
•Targetting 12-15% total returns; with a 5% current distribution yield
•High quality cash flows; ~90% of cash flows regulated or contracted, ~70% indexed to
inflation and ~60% with no volume risk
•One of the world’s largest publicly traded, pure- play renewable power platforms
•Predominantly hydroelectric portfolio, with ~80% of generation from hydro, complemented
by wind facilities and other renewable asset classes across North America, Latin America
and Europe; ~90% of 2016 generation is contracted
•Target long-term total returns of 12%–15%, with a ~6% current distribution yield
Brookfield Business Partners
(NYSE: BBU)
•A business services and industrials company focused on long-term capital appreciation
•Target long-term total returns of ~15%
•Acquire businesses on a value basis, with a focus of out -of-favour sectors; enhance value
of operations by focusing on organic growth; realize value and recycle capital
opportunistically
•Invest in the high quality real estate assets in the world’s most dynamic markets,
‒Core office and retail is 92% and 95% leased, respectively
•~85% core office & retail assets targetting 10% to 15% total returns, and ~15% opportunistic
assets targetting 20% total returns; current distribution yield of ~5%

21. 21
Our ~$30 billion of invested capital provides high levels of financial flexibility and
substantial debt coverage
Invested Capital – Holdings
1)Quoted value based on March 31, 2016 public pricing
2)Excludes realized disposition gains
3)Annualized distributed cash flow is based on current distribution policies
4)Includes $992 million of cash and cash equivalents and $448 million of financial assets, net of deposits
5)Estimated 8% annualized total return on weighted average balance
6)Pro-forma formation of Brookfield Business Partners
7)Includes assets held in our private equity private funds which are reported to our fund partners on a fair value basis that exce ed our IFRS values by $115 million in aggregate.
Private fund fair values are audited annually and provided to private fund clients on a quarterly basis

No. of UnitsQuoted
1
IFRS Three Months LTM
Listed partnerships
Brookfield Property Partners 483 11,191$ 14,821$ 140$ 562$ 541$
Brookfield Renewable Partners 172 5,162 3,527 114 291 307
Brookfield Infrastructure Partners 68 2,868 1,610 63 231 155
Other listed investments
BPY Preferred Shares n/a 1,275 1,275 19 76 76
Norbord 35 696 227 19 45 11
Acadian Timber 8 116 81 2 8 6
Other listed Various 295 295 17 40 31
Financial assets
4
Various 1,440 1,440 34 13 75
23,043$ 23,276 408 1,266 1,202$
Unlisted
Residential development 2,433 (15) 118
Brookfield Business Partners
6
1,844 36 202
Energy marketing 1,065 (46) (96)
Other
7
879 12 39
6,221 (13) 263
29,497$ 395$ 1,529$
AS AT AND FOR THE PERIODS ENDED MAR. 31, 2016
(MILLIONS)
Invested Capital FFO
2
Distributed
Cash Flow
(Annualized)
3
5

22. 22 Investor Relations Contacts
Contact Title E-Mail Address Phone Number
Brian Lawson Chief Financial Officer [email protected] (416) 363- 9491
Derek Gorgi Senior Vice President, Finance [email protected] (416) 359- 8590
Karly Dyck Director, Finance [email protected] (416) 956- 5194

23. 23 Appendix – Notes, Assumptions, and Definitions
Definitions and Notes
• Fee Bearing Capital represents the capital committed, pledged or invested in our listed partnerships, private funds, and public markets that we manage which entitle us to earn fee revenues and/or carried
interests. Fee bearing capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts
• Fee Revenues include base management fees, incentive distributions, performance fees and transaction and advisory fees presented within our asset management segment. Fee revenues exclude
carried interest
• Fee Related Earnings (“FRE”) is comprised of fee revenues less direct costs (other than costs related to carried interests). FRE gross margin is equal to FRE as a percentage of Fee Revenues
• Base Management Fees are determined by contractual arrangements, are typically equal to a percentage of Fee Bearing Capital, are accrued quarterly, include base fees earned on fee bearing capital
from both clients and ourselves and are typically earned on both called and uncalled amounts
• Incentive Distributions (IDRs) are determined by contractual arrangements and are paid to us by our three primary listed partnerships and represent a portion of distributions paid by a listed partnership
above a pre-determined threshold
• Performance Fees are paid to us when we exceed pre-determined investment returns on certain portfolios managed in our public markets activities. Performance fees are typically determined on an annual
basis and are not subject to “clawback” in future years
• Carried Interests are contractual arrangements whereby we receive a fixed percentage of investment gains generated within a private fund provided that the investors receive a pre-determined minimum
return. Carried interests are typically paid towards the end of the life of a fund after the capital has been returned to investors and may be subject to “clawback” until all investments have been monetized
and minimum investment returns are sufficiently assured. We defer recognition of carried interests in our financial statements until they are no longer subject to adjustment based on future events. Unlike
fees and incentive distributions, we only include carried interests earned in respect of third-party capital when determining our segment results
• Annualized fee base and target carry is a non-IFRS measure that consists of annualized fees plus target carried interest
‒Annualized fees include annualized base management fees which are determined by the contractual fee rate multiplied by the current level of fee bearing capital, annualized incentive distributions
based on our listed partnerships current annual distribution policies, annualized transaction and advisory fees which are equal to a simple average of the last two years’ revenue, annualized
performance fees earned from public markets which is equal to a simple average of the last two years’ revenues, and target carried interest
‒Target carried interest is a mechanical calculation that is intended to represent the annualized carried interest we would earn on third-party private fund capital subject to carried interest on the
assumption that we achieve the targetted returns on the private funds. It is determined by multiplying the target gross return of a fund, less the base management fee, by the percentage carried
interest to which we are entitled to, multiplied by the amount of third-party capital, and by the utilization factor
• LTM represents last twelve months of financial data
• Funds from Operations (“FFO”) is a key measure of our financial performance and we use FFO to assess operating results and our businesses performance on a segmented basis. We define FFO as net
income prior to fair value changes, depreciation and amortization, deferred income taxes and transaction costs. When determining FFO, we include our proportionate share of the FFO of equity accounted
investments on a fully diluted basis. FFO and its per share equivalent are non-IFRS measures which do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar
measures presented by other companies. The most directly comparable IFRS financial measure is net income. Please refer to the “Reconciliation of Net Income to FFO” contained in the Supplemental
Information posted and maintained on our website for the relevant period
• Invested Capital is the amount of common equity allocated to a business segment or business line within a segment. This measure is intended to present the net assets associated with FFO of the
segment. Invested capital is equal to common equity by segment, an IFRS measure contained in the filed Interim Report and Annual Report for the relevant period
•
The private funds performance summary on page 13 sets forth the aggregate performance of our private investment funds by strategy (collectively, the “Funds”) that Brookfield is currently managing or has
previously managed, and is intended to illustrate Brookfield’s experience in managing funds. Committed capital includes original committed/pledged capital, including current capital available for
commitments and capital that may no longer be available given the mandate of each product. Gross Internal Rate of Return (“Gross IRR”) reflects the annualized performance before fund expenses,
management fees and carried interest. “Net IRR” reflects annualized performance taking into account fund expenses, management fees and carried interest and are calculated on a fund level and not for
any individual investor. Fund investors will likely have different performance returns than those used to aggregate net performance herein due to varying economic terms. In certain funds, Brookfield and its
affiliates do not pay management fees or carried interest as a limited partner, which would otherwise result in lower returns, as such Brookfield has included a notional fee on Sponsor capital as if it were a
third party investor. Gross IRR and Net IRR by strategy reflect the aggregate equity invested, realized and unrealized proceeds, fund expenses, management fees and carried interest, in the funds
currency, if applicable, for the respective private investment vehicle. Aggregate performance includes certain funds that are not eligible for performance fees or “carried interest” and excludes funds’ in
marketing or funds closed within 12 months of the performance calculation date. Prior performance is not indicative of future results and there can be no guarantee that future funds or investments will
achieve comparable results or be able to avoid losses. Gross IRR and Net IRR reflect performance from the funds’ initial investment date to March 31, 2016