Brookfield Renewable Corporation Q1 FY2025 earnings call

• The fundamentals for energy remain strong with digitalization and reindustrialization driving accelerating demand, and renewables are a critical part of the solution to meet energy demand. - The business had strong financial results, with successful commissioning of new capacity, progress on commercial initiatives like securing incremental generation contracts, and scaling of capital recycling activities. - Committed or deployed $4.6 billion, including the completion of Neoen's privatization and acquisition of National Grid Renewables. - Closed sales of stakes in First Hydro and parts of the India portfolio, generating strong returns, and reached agreements to sell additional stakes. - Well-equipped to navigate supply chain challenges with a global diversified portfolio and procurement network, leveraging scale, global relationships, and focus on domestic U.S. manufacturing.

Brookfield Renewables had a strong first quarter. Adjusting for very strong hydro generation in the prior year, FFO per unit was up 15% versus the prior year period, and on an all-in basis, FFO per unit was up 7% year-over-year. The hydroelectric segment benefits from favorable all-in pricing with robust demand for clean power and is well-positioned for a strong second quarter in 2025. The wind and solar segments performed well, benefiting from newly commissioned capacity and the closing of investments in Neoen and Ørsted. The distributed energy, storage and sustainable solution segments delivered strong performance with FFO more than doubling from the prior year, driven by solid performance and accretive capital recycling. Westinghouse continues to perform well with growing demand for nuclear power.

• Remain well-positioned to capitalize on the current market bifurcation, acquiring for value and monetizing de-risked renewables platforms and assets. - Expect to continue delivering on growth and return targets, leveraging the strong underlying demand for power and the company's capabilities. -看好在能源需求强劲及自身优势下，持续实现良好的增长和回报，利用市场分化继续获取价值并 monetize 相关资产。

• Tariffs on goods introduce market volatility that could impact the renewable sector. - Supply chain challenges and potential delays in permitting could affect the pace of development and operations.

Q: Nelson Ng asked about permitting in the U.S. and Microsoft framework agreement.

A: Connor Teskey responded that permitting for onshore wind on federal lands is a small portion of the portfolio and not materially impactful to the business. Microsoft is the largest framework agreement, and there is interest in additional framework agreements with other parties.

Q: Sean Stewart asked about North America solar pipeline and equipment security.

A: Connor Teskey said the vast majority of the U.S. solar advanced stage pipeline has secured equipment and is not exposed to recent tariff announcements.

Q: Robert Hope asked about recontracting hydro capacity and public market acquisition opportunities.

A: Connor Teskey said hydro contracting pulls forward attractive up financing opportunities, and public market acquisition opportunities are primarily North American with market consolidation creating such opportunities.

Q: Mark Jarvi asked about tariff risk management and equipment availability outside the U.S.

A: Connor Teskey and Hannah Labuschagne responded that tariffs create some inefficiency but the global nature of the business provides a material offset, and equipment availability in other regions benefits development.

Q: Christine Cho asked about contract clauses for tariffs and project timing.

A: Connor Teskey and Hannah Labuschagne explained that projects are de-risked when revenue, financing, and CapEx are locked in, and contracts have clauses to handle changes with minimal delay.

Q: Benjamin Pham asked about Neoen acquisition integration and sustainable solutions segment.

A: Connor Teskey said near-term priorities for Neoen include accelerating development, integrating into the platform, and selling mature assets. Patrick Taylor spoke about the year-over-year changes in the sustainable solutions segment, and Connor Teskey discussed Westinghouse's positive outlook with growing nuclear demand.