Mr. Connor Teskey reports

BROOKFIELD RENEWABLE REPORTS RECORD FIRST QUARTER RESULTS

Brookfield Renewable Partners LP (BEP) has released its financial results for the three months ended March 31, 2024.

All amounts are in United States dollars unless otherwise indicated.

"We had a strong start to the year, delivering record results and executing on our business plans. We signed a landmark agreement with Microsoft, which expands on our longstanding partnership, to deliver over 10.5 gigawatts of additional renewable energy capacity to enable the growth of their AI [artificial intelligence]-powered cloud services business," said Connor Teskey, chief executive officer of Brookfield Renewable. "The agreement is a testament to our ability to deliver scale clean power solutions to our leading global corporate partners and the exponential demand we are seeing for renewable energy to support data centre development. During the quarter we were also successful advancing our development and growth activities, and are well positioned to deploy significant capital into a robust pipeline of attractive opportunities and build on our track record of value creation."

Brookfield Renewable reported FFO (funds from operations) of $296-million in the quarter, or 45 cents per unit, for the three months ended March 31, 2024, an 8-per-cent increase compared with the prior year. The strong results reflect solid resources across the company's hydro fleet, and the impact from development and growth initiatives. These results position Brookfield Renewable Partners well to deliver its target 10-per-cent-plus-FFO-per-unit growth for the year. After deducting non-cash depreciation and other expenses, the company's net loss attributable to unitholders for the three months ended March 31, 2024, was $120-million.

Key highlights:

• Advanced commercial priorities, including securing contracts to deliver an incremental approximately 5,200 gigawatt hours per year of generation in addition to the announced partnership with Microsoft.
• Continued to progress development activities during the quarter and expect to bring on approximately 7,000 megawatts of new renewable capacity this year.
• Progressed asset recycling activities that are expected to generate $3-billion of proceeds ($1.3-billion net to Brookfield Renewable) this year at attractive returns.
• Strengthened the company's balance sheet by executing approximately $6-billion of financings, ending the quarter with $4.4-billion of available liquidity to deploy into a very attractive investment environment.

The company is positioned as the leading clean power provider to the digitalizing global economy

As the accelerating global trends of cloud computing, digitalization and adoption of AI continue to drive significant growth in demand for power, Brookfield Renewable Partners is fortunate to be a key enabler of one of the most significant growth trends in recent history.

Demand for cloud computing and AI is incentivizing the leading technology companies to scale their investment in these areas, and the key requirements needed to deliver these products are computing power and energy. However, existing energy infrastructure is not enough, meaning sourcing additional sustainable renewable power at scale is on the critical path to growth for these companies.

In May, Brookfield Renewable Partners signed a landmark renewable energy framework agreement with Microsoft, furthering its strategic partnership, where it expects to deliver them over 10,500 megawatts of new renewable energy capacity in the United States and Europe between 2026 and 2030.

The first-of-its-kind agreement, which is almost eight times larger than the largest single corporate PPA (power purchase agreement) ever signed, will assist Microsoft's data centre growth and support its investment in AI-powered cloud services. The agreement positions the company well to deliver over 7,000 megawatts of new capacity annually through the end of the decade.

There are further opportunities to partner with Microsoft, with which the company is already set to deliver almost 1,000 megawatts of projects through 2025. The agreement includes provisions to increase its scope to deliver additional renewable energy capacity within the U.S. and Europe, and beyond to Asia-Pacific, India and Latin America.

The partnership is a testament to Brookfield Renewable's differentiated offering, which is characterized by the company's significant access to capital and credibility to deliver scale clean power solutions from itws extensive pipeline of advanced-stage projects, which are well positioned from an interconnection and permitting perspective in many key data centre markets globally.

While this partnership is a first-of-its-kind, given the significant scale of investment required to meet the increase in energy demand, Brookfield Renewable believes it is uniquely positioned to be a key enabler of growth for the largest technology players through similar arrangements. The company's access to scale capital, sizable development pipeline and ability to commission significant capacity concurrently to meet this demand differentiates the company as a partner.

Brookfield Renewable Partners is also uniquely positioned to provide a tailored solution to help address is customers' needs. Its ability to provide scale 24/7 clean power solutions through the combination of the company's large portfolio of existing hydro assets, its leading nuclear services business and other renewable power capacity from across the technology spectrum, also distinguishes Brookfield Renewable's offering -- this is translating to favourable contracting opportunities.

Operating results

Brookfield Renewable Partners generated FFO of $296-million, or 45 cents per unit, representing an 8-per-cent increase from the prior year, as the company benefited from its diverse operating assets and contribution from the company's growth and development activities.

Brookfield Renewable's hydro assets continue to exhibit strong cash flow resiliency, given its diversified asset base, inflation-linked power purchase agreements and ability to realize strong power prices. The company's hydroelectric segment delivered FFO of $193-million driven by solid resources across its fleet, which resulted in generation at 105 per cent of the long-term average, and strong all-in pricing.

Brookfield Renewable Partners' wind and solar segments generated a combined $148-million of FFO, benefiting from recently closed acquisitions and the commissioning of new projects. The company continues to execute on development, further diversifying its business and reducing quarter-over-quarter volatility.

The company's distributed energy and storage, and sustainable solutions segments, generated a combined $67-million of FFO. Brookfield Renewable continued to scale its distributed generation business with strong growth in its backlog of projects that the company expects to commission over the next few years, and benefited from the company's acquisition of Westinghouse, where Brookfield Renewable continues to see robust performance.

Balance sheet and liquidity

The company's financial position remains strong, with $4.4-billion of available liquidity enabling the company to deploy significant capital into growth.

During the quarter, Brookfield Renewable Partners further strengthened its balance sheet, executing almost $6-billion in financings. Globally, the company continues to see robust financing markets and has been actively extending maturities at attractive pricing with spreads near historic lows.

In January, the company issued $400-million of 30-year notes at 5.3 per cent and meaningfully extended its debt maturity profile. Later in the quarter, Brookfield Renewable Partners issued $150-million of fixed-rate perpetual subordinated notes, with proceeds being used to refinance outstanding preferred shares that were scheduled to reset in early April. The newly issued notes are 70 bps (basis points) cheaper than the reset rate of the outstanding preferred shares the company redeemed, saving the company almost $5-million over the next five years.

The market for the right type of renewable power assets continues to strengthen, as the outlook for interest rates has stabilized. Brookfield Renewable Partners' large and growing portfolio of contracted operating assets with fixed-rate non-recourse financing and pipeline of derisked projects are in high demand from lower-cost-of-capital buyers. Brookfield Renewable is fortunate to have launched a significant pipeline of asset sales into this environment, which it is advancing. In aggregate, Brookfield Renewable Partners is targeting to generate $3-billion of proceeds ($1.3-billion net to Brookfield Renewable) this year at attractive returns.

Considering public market conditions and the company's strong conviction in the intrinsic value of its business, Brookfield Renewable Partners allocated capital to repurchase its units in the quarter. In the last nine months, the company repurchased over four million units under its normal course issuer bid. Looking forward, the company will continue to allocate capital based on where it is seeing the best risk-adjusted returns, and remains confident it will continue to create meaningful value for its investors.

Distribution declaration

The next quarterly distribution in the amount of 35.5 cents per LP unit, is payable on June 28, 2024, to unitholders of record as at the close of business on May 31, 2024. In conjunction with the partnership's distribution declaration, the board of directors of Brookfield Renewable Corp. (BEPC) has declared an equivalent quarterly dividend of 35.5 cents per share, also payable on June 28, 2024, to shareholders of record as at the close of business on May 31, 2024. Brookfield Renewable targets a sustainable distribution, with increases targeted on average at 5 per cent to 9 per cent annually.

The quarterly dividends on the company's preferred shares and preferred LP units have also been declared.

Distribution currency option

The quarterly distributions payable on the company's units and BEPC shares are declared in United States dollars. Unitholders who are residents in the United States will receive payment in U.S. dollars and unitholders who are residents in Canada will receive the Canadian dollar equivalent unless they request otherwise. The Canadian dollar equivalent of the quarterly distribution will be based on the Bank of Canada daily average exchange rate on the record date or, if the record date falls on a weekend or holiday, on the Bank of Canada daily average exchange rate of the preceding business day.

Registered unitholders who are residents in Canada who wish to receive a U.S. dollar distribution and registered unitholders who are residents in the United States wishing to receive the Canadian dollar distribution equivalent should contact Brookfield Renewable's transfer agent, Computershare Trust Company of Canada, in writing at 100 University Ave., eigth floor, Toronto, Ont., M5J 2Y1, or by phone at 1-800-564-6253. Beneficial unitholders (that is, those holding their units in street name with their brokerage) should contact the broker with which their units are held.

Distribution reinvestment plan

Brookfield Renewable Partners maintains a distribution reinvestment plan (DRIP) which allows holders of the company's units who are residents in Canada to acquire additional LP units by reinvesting all or a portion of their cash distributions without paying commissions. Information on the DRIP, including details on how to enroll, is available on the company's website.

Additional information on Brookfield Renewable's distributions and preferred share dividends can be found on its website.

Brookfield Renewable Partners LP

Brookfield Renewable operates one of the world's largest publicly traded platforms for renewable power and sustainable solutions. Its renewable power portfolio consists of hydroelectric, wind, utility-scale solar and storage facilities in North America, South America, Europe and Asia. Its operating capacity totals almost 34,000 megawatts and its development pipeline stands at approximately 157,000 megawatts. The company's portfolio of sustainable solutions assets includes its investments in Westinghouse (a leading global nuclear services business), and a utility and independent power producer with operations in the Caribbean and Latin America, as well as both operating assets, and a development pipeline of carbon capture and storage capacity, agricultural renewable natural gas, and materials recycling.

Investors can access the portfolio either through Brookfield Renewable Partners, a Bermuda-based limited partnership, or Brookfield Renewable Corp., a Canadian corporation.

Brookfield Renewable is the flagship listed renewable power and transition company of Brookfield Asset Management, a leading global alternative asset manager with over $900-billion of assets under management.

Please note that Brookfield Renewable's previous audited annual and unaudited quarterly reports filed with the U.S. Securities and Exchange Commission and securities regulators in Canada, are available on its website, on the SEC's website and on SEDAR+'s website. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

Quarterly earnings call details

Investors, analysts and other interested parties can access Brookfield Renewable's first quarter 2024 results, as well as the letter to unitholders and supplemental information, on Brookfield Renewable's website.

The conference call can be accessed via webcast on May 3, 2024, at 8:30 a.m. Eastern Time.

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