-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SQ12FqhyT2H6EolYtbkcQ+eE3YELFiYdSj0OfZnyQ6vK31J9VC0qBEb7i+9+eU6j xxP5SyJVkygTRxiUzjSDiw== 0000950123-01-503225.txt : 20010606 0000950123-01-503225.hdr.sgml : 20010606 ACCESSION NUMBER: 0000950123-01-503225 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20010531 FILED AS OF DATE: 20010605 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRASCAN CORP/ CENTRAL INDEX KEY: 0001001085 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 033-97038 FILM NUMBER: 1654253 BUSINESS ADDRESS: STREET 1: BCE PLACE 181 BAY ST STREET 2: STE 4400 PO BOX 762 CITY: TORONTO ONTARIO STATE: A6 BUSINESS PHONE: 4163639491 MAIL ADDRESS: STREET 1: HAYTHE & CURLEY STREET 2: 237 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: EDPERBRASCAN CORP DATE OF NAME CHANGE: 19970904 FORMER COMPANY: FORMER CONFORMED NAME: BRASCAN LTD DATE OF NAME CHANGE: 19950919 6-K 1 y49937e6-k.txt FORM 6-K 1 -------------------------- OMB Number: 3235-0116 Expires: March 31, 2000 Estimated average burden hours per response....9.90 -------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of May 2001 Brascan Corporation - -------------------------------------------------------------------------------- (Translation of registrant's name into English) BCE Place, 181 Bay Street, P.O. Box 762, Suite 4400, Toronto, Ontario M5J 2T3, CANADA - -------------------------------------------------------------------------------- (Address of principal executive office) [Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [ ] Form 40-F [X] [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [ ] No [X] [If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .] ------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BRASCAN CORPORATION ---------------------------------------- (Registrant) Date May 31, 2001 By /s/ Alan V. Dean ------------------------------- ------------------------------------- (Signature)* - --------------- Alan V. Dean *Print the name and title under the Senior Vice President signature of the signing officer. GENERAL INSTRUCTIONS A. RULE AS TO USE OF FORM 6-K. This form shall be used by foreign private issuers which are required to furnish reports pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934. B. INFORMATION AND DOCUMENT REQUIRED TO BE FURNISHED. Subject to General Instruction D herein, an issuer furnishing a report on this form shall furnish whatever information, not required to be furnished on Form 40-F or previously furnished, such issuer (i) makes or is required to make public pursuant to the law of the jurisdiction of its domicile or in which it is incorporated or organized, or (ii) files or is required to file with a stock exchange on which its securities are traded and which was made public by that exchange, or (iii) distributes or is required to distribute to its security holders. POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. SEC 1815 (4-97) 2 EXHIBIT LIST
Sequential Exhibit Description Page Number - ------- ----------- ----------- 99.1 First Quarter 2001 Interim Report 99.2 Press Release dated May 11, 2001 99.3 Press Release dated April 27, 2001 99.4 Press Release dated April 17, 2001 99.5 Press Release dated February 28, 2001 99.6 Press Release dated February 12, 2001
EX-99.1 2 y49937ex99-1.txt FIRST QUARTER 2001 INTERIM REPORT 1 BRASCAN Q1/2001 STOCK SYMBOL: BNN TSE/NYSE INTERIM REPORT TO SHAREHOLDERS FOR THE THREE MONTHS ENDED MARCH 31, 2001 FIRST QUARTER EARNINGS FROM CONTINUING OPERATIONS INCREASED TO $89 MILLION, AS HIGHER CONTRIBUTIONS FROM PROPERTY AND FINANCIAL OPERATIONS OFFSET LOWER CONTRIBUTIONS FROM NATURAL RESOURCE OPERATIONS. FELLOW SHAREHOLDERS: Earnings from Brascan's continuing operations for the three months ended March 31, 2001 increased to $89 million or $0.44 per share from $87 million or $0.43 per share in the first quarter of 2000. Total income for the first quarter of 2000 was $347 million, which included gains of $260 million. Lower natural resource product prices, the strike at the Sudbury nickel operations and a paper mill close-down charge were more than offset by higher earnings from the company's other operations, including property and security gains realized in the quarter. Brascan's participation in industry sectors which have different business cycles enabled it to generate strong earnings despite a slowdown in one key sector. The group continues to focus on improving productivity, strengthening its asset base and surfacing value for shareholders.
Three months ended March 31 CDN. MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 ============================================================================ GROUP REVENUES $ 3,212 $ 3,201 --------------------- INCOME FROM CONTINUING OPERATIONS $ 89 $ 87 Income and gain on sale of discontinued operations -- 260 --------------------- NET INCOME $ 89 $ 347 --------------------- PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE: Income from continuing operations $ 0.44 $ 0.43 Net income $ 0.44 $ 1.88 ============================================================================
2001 HIGHLIGHTS TO DATE > Over $400 million was invested during the first quarter in new properties and production facilities, as part of the company's program to expand its base of operations with high quality assets. > Over $300 million of group equity securities were repurchased at discounts to their underlying values, under the initiative started in 2000 to capture additional value for continuing shareholders. Q1/2001 INTERIM REPORT 1 2 > The privatization of Great Lakes Power Inc. was completed, allowing the cash generated from these operations to flow directly to Brascan. > The price of Brascan's common shares increased by 17% during the first quarter, as investors increased their interest in value stocks. OPERATIONS REVIEW PROPERTY OPERATIONS contributed $39 million in the first quarter of 2001, up from $22 million in the same period last year. This increase reflects improved returns from commercial properties as a result of the re-leasing programs completed during 2000, as well as a gain on the sale of a 49% interest in two office buildings in Boston, 53 and 75 State Street, to a subsidiary of Deutsche Bank, A.G. NATURAL RESOURCE OPERATIONS contributed $5 million in the quarter, down from $41 million last year. Mining and metals' earnings declined from $25 million to $7 million, mainly due to lower base metal prices and the impact of the strike at Falconbridge's nickel operations in Sudbury. A new three-year agreement was reached in February and full production is expected to resume by mid-year. These factors were partly offset by a tax recovery. The contribution from forest product operations declined from $16 million to a loss of $2 million, due mainly to lower lumber and oriented strandboard prices and a charge for closing down a paper mill related to the consolidation of Nexfor's US Midwest paper operations. ENERGY OPERATIONS contributed $20 million in the quarter, unchanged from last year. Higher revenues from energy marketing operations and the return to more normal water flows on the lower Mississippi River were offset by the impact of lower water flows this winter at the company's operations in northern Ontario and western Quebec. FINANCIAL AND OTHER OPERATIONS contributed $51 million in the quarter, up from $36 million last year, reflecting the growth in investment banking and management operations and a gain realized on the sale of Trilon's minority shareholdings in Brookfield Properties Corporation. The contribution from Brazilian operations remained unchanged at $4 million. BUSINESS DEVELOPMENTS Progress continued during the quarter on the multi-year capital investment program to expand the group's production base and long-term earnings potential. PROPERTY OPERATIONS > CIBC World Markets signed a 30-year lease for 100% of the space in 300 Madison Avenue, a 1.2 million square foot office building Brookfield is constructing in midtown Manhattan for completion in early 2004. > Brookfield acquired a 50% interest in the 1.8 million square foot Bay-Adelaide Centre office project in downtown Toronto. This includes a one million square foot office tower, which Brookfield plans to develop once major tenancies are secured. 2 BRASCAN CORPORATION 3 > Brookfield acquired a 25% interest in a partnership formed to refurbish and reposition the Hudson Bay Centre, a one million square foot office-retail complex in midtown Toronto. NATURAL RESOURCE OPERATIONS > Construction of the US$2.3 billion Antamina copper-zinc mine in Peru is virtually completed, with initial start-up scheduled in the third quarter and full production expected by the year end. > Noranda and Falconbridge agreed to acquire the Lomas Bayas copper mine and adjacent Fortuna de Cobre copper deposit in northern Chile, with closing expected in the second quarter. > Commercial production started at the $360 million Huntingdon high-speed aluminum mill in Tennessee. When all phases of the mill are completed, it will produce 100,000 tonnes of aluminum foil annually for industrial and packaging users. > Engineering and construction are 90% and 30% completed, respectively, on the $260 million Altonorte copper smelter expansion in Chile, which will nearly double its annual copper production to 290,000 tonnes and triple annual sulphuric acid output to 700,000 tonnes. > Construction continued on two projects to increase the group's panelboard production capacity - the new $185 million oriented strandboard mill in Barton, Alabama and a $40 million particleboard line installation at the Cowie mill in Scotland. ENERGY OPERATIONS > Great Lakes Hydro Income Fund acquired a 50% interest in Powell River Energy in British Columbia. This added 82 megawatts of capacity to the group's power production base, which now stands at 987 megawatts. > Construction commenced on four new hydroelectric generating stations in Ontario, British Columbia and southern Brazil, with an aggregate capacity of 121 megawatts. FINANCIAL SERVICES Progress was also made on several initiatives in the group's financial services operations. > Trilon's investment management affiliate, Highstreet Asset Management, issued $287 million of an innovative investment product, "Highstreet Years". > Trilon launched the $500 million Tricap Restructuring Fund to focus on corporate restructurings and turnaround situations. > Trilon agreed to purchase Brascan's 40% interest in its Brazilian financial services joint-venture, Banco Brascan, for US$41 million, thereby consolidating all the group's financial services under Trilon. CAPITAL REPURCHASE PROGRAM Progress also continued on the program to repurchase shares in Brascan and its affiliates, which commenced in 2000 to capture value for the benefit of the group's continuing shareholders. During the first quarter of 2001, $314 million of group securities were acquired. Q1/2001 INTERIM REPORT 3 4 > Trilon acquired 14.5 million of its common shares in January 2001 under a substantial issuer bid, increasing Brascan's ownership of Trilon to 71%. > Brascan acquired the outstanding 4.3 million publicly held common shares of Great Lakes Power Inc., following a going-private transaction approved by Great Lakes' shareholders on February 28, 2001. These shares were acquired in exchange for approximately $250,000 in cash and 3.9 million Class A common shares of Brascan. > Brascan acquired 682,500 of its Class A common shares during the quarter under its normal course issuer bid which concluded on April 2, 2001. Since this bid commenced in April 2000, a total of 5.5 million shares were acquired for $109.5 million at an average price per share of $19.95. As previously announced, Brascan received approval in April 2001 for a new one-year normal course issuer bid to purchase up to 5% of its Class A common shares. Purchases under this bid will be made through the facilities of The Toronto Stock Exchange and the New York Stock Exchange. CORPORATE AND OUTLOOK The regular quarterly dividend of $0.25 per share was declared payable on August 31, 2001 to Class A and Class B common shareholders of record at the close of business on August 1, 2001. Brascan has established solid business operations with quality assets in three value sectors - commercial properties, natural resources and power generation - as well as a strong and growing financial services business. The company will continue to enhance value through fostering a performance culture, by expanding its business base and by employing a value-adding approach to each of its actions. Brascan is determined to translate the significant values created in recent years into increased shareholder returns. Robert J. Harding Jack L. Cockwell Chairman President and Chief Executive Officer April 26, 2001 Note: This interim report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's continuous disclosure documents, including its 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 4 BRASCAN CORPORATION 5 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET
MARCH 31 December 31 MILLIONS 2001 2000 - ------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 199 $ 347 Securities 2,348 2,371 Accounts and notes receivable 2,714 2,833 Investments accounted for using equity method 3,681 3,654 Property, plant and equipment 2,146 2,018 Other assets 414 378 - ------------------------------------------------------------------------- $11,502 $11,601 ========================================================================= LIABILITIES Accounts payable and other $ 803 $ 812 Corporate borrowings 1,367 1,360 Subsidiary company borrowings 2,414 2,420 - ------------------------------------------------------------------------- 4,584 4,592 DEFERRED CREDITS 394 395 CAPITAL BASE Minority interests 1,494 1,701 Shareholders' equity (Note 3) 5,030 4,913 - ------------------------------------------------------------------------- 6,524 6,614 - ------------------------------------------------------------------------- $11,502 $11,601 =========================================================================
Q1/2001 INTERIM REPORT 5 6 CONSOLIDATED STATEMENT OF INCOME - -------------------------------------------------------------------------------
Three months ended March 31 MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 ======================================================================================== GROUP REVENUES $3,212 $3,201 Revenue of equity accounted affiliates 2,886 2,927 - ---------------------------------------------------------------------------------------- Consolidated revenues 326 274 Equity in pre-tax earnings of affiliates 66 106 - ---------------------------------------------------------------------------------------- INCOME BEFORE THE UNDERNOTED ITEMS 392 380 Operating expenses 165 143 Interest expense 72 65 Minority interests 37 34 Taxes and other provisions 29 51 - ---------------------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS 89 87 Income and gain on sale of discontinued operations (Note 5) -- 260 - ---------------------------------------------------------------------------------------- NET INCOME $ 89 $ 347 ======================================================================================== PER BASIC CLASS A AND CLASS B COMMON SHARE Income from continuing operations $ 0.44 $ 0.43 Net income $ 0.44 $ 1.93 ======================================================================================== PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE Income from continuing operations $ 0.44 $ 0.43 Net income $ 0.44 $ 1.88 ========================================================================================
CONSOLIDATED STATEMENT OF RETAINED EARNINGS - ----------------------------------------------------------------------------
Three months ended March 31 MILLIONS 2001 2000 ============================================================================ BALANCE, BEGINNING OF PERIOD $2,367 $1,938 Net income 89 347 - ---------------------------------------------------------------------------- 2,456 2,285 - ---------------------------------------------------------------------------- SHAREHOLDER DISTRIBUTIONS Convertible note interest 1 2 Preferred share dividends 11 10 Common share dividends 43 43 - ---------------------------------------------------------------------------- 55 55 - ---------------------------------------------------------------------------- BALANCE, END OF PERIOD $2,401 $2,230 ============================================================================
6 BRASCAN CORPORATION 7 CONSOLIDATED STATEMENT OF CASH FLOWS - --------------------------------------------------------------------------------
Three months ended March 31 MILLIONS 2001 2000 ======================================================================================== GROUP OPERATING CASH FLOWS $ 346 $ 471 Operating cash flows of equity accounted affiliates 236 368 - ---------------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW FROM OPERATIONS 110 103 - ---------------------------------------------------------------------------------------- FINANCING AND SHAREHOLDER DISTRIBUTIONS Corporate borrowings: Issuances -- 4 Repayments (54) (291) Subsidiary company borrowings: Issuances 123 20 Repayments (167) (6) Minority interests (176) -- Shares repurchased (17) -- Convertible note interest paid (1) (2) Dividends paid (54) (53) - ---------------------------------------------------------------------------------------- (346) (328) - ---------------------------------------------------------------------------------------- INVESTING Securities: Purchases (96) -- Sales 119 61 Loans and other receivables: Advanced (340) (468) Collected 467 129 Investment in property and equipment (126) (64) Corporate investments sold -- 619 Other 64 (58) - ---------------------------------------------------------------------------------------- 88 219 - ---------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Increase (Decrease) (148) (6) Balance, beginning of period 347 100 - ---------------------------------------------------------------------------------------- Balance, end of period $ 199 $ 94 ========================================================================================
Q1/2001 INTERIM REPORT 7 8 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF ACCOUNTING POLICIES Reference is made to the company's most recently issued Annual Report, which includes information necessary or useful to understanding the company's businesses and financial statement presentation. In particular, the company's significant accounting policies and practices are presented as Note 1 to the Consolidated Financial Statements included in that Report. The quarterly financial statements are unaudited. Financial information in this Report reflects any adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with generally accepted accounting principles in Canada. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. Certain prior year amounts have been restated or reclassified to conform to the current year's presentation. 2. CHANGE IN ACCOUNTING POLICIES This quarter, the company has adopted the new accounting standard issued by the Canadian Institute of Chartered Accountants on Earnings Per Share. The new section harmonizes Canadian standards with the United States standards for the calculation of diluted earnings per share. All earnings per share numbers have been retroactively restated and the changes are not significant. 3. SHAREHOLDERS' EQUITY
MARCH 31 December 31 MILLIONS 2001 2000 - ----------------------------------------------------------- Convertible notes $ 99 $ 99 Class A Preference shares 732 732 Class A and Class B common shares 4,199 4,082 - ----------------------------------------------------------- $5,030 $4,913 ===========================================================
4. SHARES OUTSTANDING
MARCH 31 December 31 2001 2000 - ------------------------------------------------------------------------------------- Class A common shares issued 172,548,083 169,290,683 Class B common shares issued 85,120 85,120 - ------------------------------------------------------------------------------------- 172,633,203 169,375,803 Reserved for conversion of subordinated notes 3,106,847 3,116,782 - ------------------------------------------------------------------------------------- Total fully diluted Class A and Class B common shares 175,740,050 172,492,585 ===================================================================================== Unexercised options 3,450,867 3,012,707 - ------------------------------------------------------------------------------------- Exercisable options 2,561,197 1,965,037 =====================================================================================
5. INCOME AND GAIN ON SALE OF DISCONTINUED OPERATIONS In March 2000, the company sold its investment in Canadian Hunter Exploration Inc. for gross proceeds of $619 million. After providing for taxes and other costs in connection with the sale, the company realized a net gain of $250 million. Brascan's share of Canadian Hunter's income in 2000 prior to its sale was $10 million. 8 BRASCAN CORPORATION 9 6. SEGMENTED INCOME STATEMENT The company's business segments are based on the industry sectors in which the company operates and uses to assess business decisions and operating performance.
Three months ended March 31 MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 - ------------------------------------------------------------------------------------- REVENUES Property operations $ 39 $ 22 Natural resource operations 5 41 Energy operations 20 20 Financial and other operations 51 36 Investment and other income 20 20 - ------------------------------------------------------------------------------------- 135 139 - ------------------------------------------------------------------------------------- UNALLOCATED EXPENSES Interest expense 26 28 Minority interests 17 17 Operating and other costs 3 7 - ------------------------------------------------------------------------------------- 46 52 - ------------------------------------------------------------------------------------- EARNINGS FROM CONTINUING OPERATIONS 89 87 Income and gain on sale of discontinued operations -- 260 - ------------------------------------------------------------------------------------- NET INCOME $ 89 $347 ===================================================================================== EARNINGS PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE Income from continuing operations $0.44 $0.43 Net income $0.44 $1.88 =====================================================================================
7. SEGMENTED BALANCE SHEET ANALYSIS Brascan's segmented balance sheets, which show the equity investment in each business segment and the principal affiliates operating in each sector as at March 31, 2001 and December 31, 2000, were as follows:
MARCH 31 December 31 MILLIONS AFFILIATE 2001 2000 OPERATING ASSETS Property operations Brookfield $1,371 $1,332 Natural resource operations Noranda 1,796 1,809 Nexfor 400 400 Energy operations Great Lakes 802 692 Financial and other operations Trilon 1,405 1,376 Brascan Brazil 416 399 FINANCIAL AND OTHER ASSETS 1,082 1,137 - ---------------------------------------------------------------------------------- $7,272 $7,145 ================================================================================== LIABILITIES Accounts payable and other $ 51 $ 42 Company borrowings 1,367 1,360 - ---------------------------------------------------------------------------------- 1,418 1,402 DEFERRED CREDITS 218 224 CAPITAL BASE Minority interests 606 606 Shareholders' equity 5,030 4,913 - ---------------------------------------------------------------------------------- 5,636 5,519 - ---------------------------------------------------------------------------------- $7,272 $7,145 ==================================================================================
Q1/2001 INTERIM REPORT 9 10 8. NET ASSET VALUE The composition of the company's net asset value by business segment and the principal affiliates operating in each sector at March 31, 2001 and December 31, 2000 is set out in the following table:
NUMBER OF COMMON SHARES MARCH 31 December 31 MILLIONS AFFILIATE AND EQUIVALENTS 2001 2000 - ---------------------------------------------------------------------------------------------------------------------- OPERATING ASSETS Property operations Brookfield 78.1 $2,054 $2,062 Natural resource operations Noranda 94.1 1,491 1,407 Nexfor 48.8 351 337 Energy operations Great Lakes 121.1 1,678 1,534 Financial and other operations Trilon 106.1 1,432 1,247 Brascan Brazil 56.0 640 640 FINANCIAL AND OTHER ASSETS 1,082 1,137 - ---------------------------------------------------------------------------------------------------------------------- $8,728 $8,364 ====================================================================================================================== LOANS AND ACCOUNTS PAYABLE $1,418 $1,402 DEFERRED CREDITS 100 100 CAPITAL BASE Minority interests 606 606 Preference shares 732 732 Class A and Class B common shares and convertible notes 5,872 5,524 - ---------------------------------------------------------------------------------------------------------------------- $8,728 $8,364 ====================================================================================================================== PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE $33.42 $32.02 ======================================================================================================================
Net asset values are derived by valuing the company's publicly traded affiliates at their quoted market values at the end of the reporting period, and by valuing Brascan Brazil at a 25% discount from the estimated domestic market value. The net asset value of the company's investment in Great Lakes is after eliminating $744 million of affiliate preference shares and is based on the market price of this company's shares immediately prior to Brascan acquiring the minority shareholdings. These net asset values do not reflect underlying values or control premiums attributable to these businesses nor the transaction costs or taxes that may result from their sale. Restructuring and tax provisions are excluded in determining the underlying values, as these largely relate to accounting adjustments and tax timing differences. Currency and other general financial provisions of $100 million have, however, been deducted. Values used for the company's financial and other assets and loans and accounts payable are included at their recorded book values. 10 BRASCAN CORPORATION 11 QUARTERLY FINANCIAL STATISTICS
2001 2000 1999 ------ -------------------------------------- --------------------------------------- Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL (millions) Net income (1) $ 89 $ 91 $ 106 $ 104 $ 347 $ 203 $ 90 $ 72 $ 58 Shareholders' equity (2) $5,030 $4,913 $4,788 $4,817 $4,755 $4,462 $4,391 $4,356 $4,293 Common shares outstanding (2) 172.6 169.4 169.9 174.1 173.9 173.9 173.8 173.4 170.2 - ---------------------------------------------------------------------------------------------------------------------------- PER COMMON SHARE Net income (1),(3) $ 0.44 $ 0.45 $ 0.55 $ 0.53 $ 1.88 $ 1.08 $ 0.45 $ 0.35 $ 0.27 Dividends $ 0.25 $ 0.25 $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 $0.245 Book value (2),(3) $24.46 $24.24 $24.02 $23.61 $23.35 $21.72 $20.84 $20.70 $20.61 Share price (2) $25.75 $21.95 $19.60 $17.40 $18.00 $19.10 $20.80 $22.45 $17.90 ============================================================================================================================
1. Net income for Q1/2000 includes a net investment gain of $250 million or $1.40 per share on the sale of Canadian Hunter. Net income for Q4/1999 includes a deferred net investment gain of $110 million or $0.62 per share related principally to the company's investment in Trilon. 2. At quarter end. 3. Fully diluted. SHAREHOLDER INFORMATION STOCK EXCHANGE LISTINGS
- ------------------------------------------------------------------- Symbol Stock Exchange - ------------------------------------------------------------------- CLASS A LIMITED VOTING SHARES BNN.A Toronto, New York, Brussels CLASS A PREFERENCE SHARES: Series 1 BNN.PR.A Toronto Series 2 BNN.PR.B Toronto Series 3 BNN.PR.F Canadian Series 4 BNN.PR.C Toronto Series 8 BNN.PR.E Toronto
DIVIDEND RECORD AND PAYMENT DATES(1)
Record Date Payment Date - ---------------------------------------------------------------------------------------------------- CLASS A LIMITED VOTING SHARES First day of February, May, Last day of February, May August and November August and November CLASS A PREFERENCE SHARES: Series 1, 2 and 4 15th day of March, June Last day of March, June, September and December September and December Series 3 Second Wednesday of each month Thursday following second Wednesday of each month Series 8 15th day of January, April, First day of February, May, July and October August and November - ----------------------------------------------------------------------------------------------------
1. All dividends are subject to declaration by the Board of Directors. Q1/2001 INTERIM REPORT 11 12 BRASCAN BRASCAN CORPORATION is focussed on increasing shareholder value through owning businesses with leadership positions in the property, natural resources, energy and financial services industries. The Brascan group employs over 50,000 people in managing and operating more than 120 major properties and production facilities in North and South America and Europe. Brascan is listed on The Toronto Stock Exchange and the New York Stock Exchange under the symbol BNN. ENQUIRIES Enquiries relating to the operations of the company should be directed to the company's Head Office: BRASCAN CORPORATION Suite 4400, 181 Bay Street BCE Place, P.O. Box 762 Toronto, Ontario M5J 2T3 Telephone: 416-363-9491 Facsimile: 416-363-2856 Web Site: www.brascancorp.com e-mail: enquiries@brascancorp.com SHAREHOLDER AND GENERAL ENQUIRIES: Alan V. Dean Senior Vice-President, Public and Corporate Affairs Telephone: 416-956-5124 e-mail: adean@brascancorp.com Enquiries relating to dividends, address changes and share certificates should be directed to the company's Transfer Agent: CIBC MELLON TRUST COMPANY P.O. Box 7010, Adelaide Street Postal Station Toronto, Ontario M5C 2W9 Telephone: 416-643-5500 or 1-800-387-0825 (Toll free in Canada and U.S.A.) Facsimile: 416-643-5501 Web Site: www.cibcmellon.com e-mail: inquiries@cibcmellon.com INVESTOR ENQUIRIES: Katherine C. Vyse Vice-President, Investor Relations and Communications Telephone: 416-369-8246 e-mail: kvyse@brascancorp.com M. Diane Horton Director, Investor Relations Telephone: 416-956-5144 e-mail: dhorton@brascancorp.com EX-99.2 3 y49937ex99-2.txt PRESS RELEASE DATED MAY 11, 2001 1 BRASCAN NEWS RELEASE CORPORATION BRASCAN CORPORATION ANNOUNCES PURCHASE OF ADDITIONAL SHARES OF NEXFOR TORONTO, MAY 11, 2001 - Brascan Corporation announced today that it purchased an additional 2,300,000 common shares of Nexfor Inc. through a normal course purchase on The Toronto Stock Exchange. Nexfor is a North American producer of building products and specialty papers and the leading producer of wood-based panel products in the United Kingdom. Including purchases totalling 1,376,700 common shares made since December 31, 2000, Brascan has acquired 3,676,700 common shares of Nexfor during the current year, representing approximately 2.6% of the outstanding common shares of Nexfor. These purchases were made for investment purposes. Brascan now owns 51,080,674 Nexfor common shares, representing 36.3% of its outstanding common shares. * * * * * * * * * * BRASCAN CORPORATION is focussed on increasing shareholder value through owning businesses with leadership positions in the property, natural resources, energy and financial services industries. The Brascan group employs over 50,000 people in managing and operating more than 120 major properties and production facilities in North and South America and Europe. Brascan is listed on The Toronto Stock Exchange and the New York Stock Exchange under the symbol BNN. For more information, please visit our web site at www.brascancorp.com or contact the following individuals:
MEDIA: INVESTORS AND FINANCIAL ANALYSTS: Robert J. Harding Richard Legault Katherine C. Vyse Chairman Senior Vice-President and Vice-President, 416-363-9491 Chief Financial Officer Investor Relations 416-956-5183 416-369-8246
-30- EX-99.3 4 y49937ex99-3.txt PRESS RELEASE DATED APRIL 27, 2001 1 BRASCAN NEWS RELEASE STOCK SYMBOL: BNN TSE/NYSE A conference call has been arranged for investors and analysts to discuss Brascan's first quarter results with senior management on Monday, April 30 at 10:00 a.m. (E.S.T.). The call can be accessed by dialing 416-641-6696 (local and overseas) or 1-800-381-9619 (toll free in North America) at approximately 9:50 a.m. A taped rebroadcast of the teleconference will be available until May 14, 2001 by calling 416-626-4100 and entering reservation number 18585680. This conference call will also be Webcast live on our web site at www.brascancorp.com, where it will be archived for future reference. BRASCAN ANNOUNCES FIRST QUARTER EARNINGS OF $89 MILLION TORONTO, APRIL 27, 2001 - Brascan Corporation today announced earnings from continuing operations for the three months ended March 31, 2001 of $89 million or $0.44 per share up from $87 million or $0.43 per share in the first quarter of 2000. Higher contributions from Brascan's property and financial operations more than offset lower contributions from natural resource operations. Total income for the first quarter of 2000 was $347 million, which included gains of $260 million.
Three months ended March 31 MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 ==================================================================================== GROUP REVENUES $3,212 $3,201 - ------------------------------------------------------------------------------------ INCOME FROM CONTINUING OPERATIONS $ 89 $ 87 Income and gain on sale of discontinued operations - 260 - ------------------------------------------------------------------------------------ NET INCOME $ 89 $ 347 - ------------------------------------------------------------------------------------ PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE: Income from continuing operations $0.44 $0.43 Net income $0.44 $1.88 ====================================================================================
2001 HIGHLIGHTS TO DATE > Over $400 million was invested during the first quarter in new properties and production facilities, as part of the company's program to expand its base of operations with high quality assets. > Over $300 million of group equity securities were repurchased at discounts to their underlying values, under the initiative started in 2000 to surface shareholder values across the group. > Brascan completed the privatization of Great Lakes Power Inc., which will now be operated as a wholly owned subsidiary of the company. > The price of Brascan's common shares grew by 17% during the first quarter, as investor interest in value stocks increased. BRASCAN'S CHAIRMAN, ROBERT HARDING, COMMENTED THAT: "OUR PARTICIPATION IN A NUMBER OF INDUSTRIES HAS ENABLED US TO GENERATE STRONG EARNINGS DESPITE A SLOWDOWN IN ONE KEY SECTOR. THE GROUP CONTINUES TO FOCUS ON IMPROVING PRODUCTIVITY, STRENGTHENING OUR ASSET BASE AND SURFACING VALUE FOR OUR SHAREHOLDERS." 2 OPERATIONS REVIEW PROPERTY OPERATIONS contributed $39 million in the first quarter of 2001, up from $22 million in the same period last year. This increase reflects improved returns from commercial properties as a result of the re-leasing programs completed during 2000, as well as a gain on the sale of a 49% interest in two office buildings in Boston, 53 and 75 State Street, to a subsidiary of Deutsche Bank, A.G. NATURAL RESOURCE OPERATIONS contributed $5 million in the quarter, down from $41 million last year. Mining and metals' earnings declined from $25 million to $7 million, mainly due to lower base metal prices and the impact of the strike at Falconbridge's nickel operations in Sudbury. A new three-year agreement was reached in February and full production is expected to resume by mid-year. These factors were partly offset by a tax recovery. The contribution from forest products' operations declined from $16 million to a loss of $2 million, due mainly to lower lumber and oriented strandboard prices and provisions related to the consolidation of Nexfor's US specialty paper operations. ENERGY OPERATIONS contributed $20 million in the quarter, unchanged from last year. Higher revenues from energy marketing operations and the return to more normal water flows on the lower Mississippi River were offset by the impact of lower water flows this winter at the company's operations in northern Ontario and western Quebec. FINANCIAL AND OTHER OPERATIONS contributed $51 million in the quarter, up from $36 million last year, reflecting the growth in investment banking and management operations and a gain realized on the sale of Trilon's minority shareholdings in Brookfield Properties Corporation. The contribution from Brazilian operations remained unchanged at $4 million. BUSINESS DEVELOPMENTS Progress continued during the quarter on the multi-year capital investment program to expand the group's production base and long-term earnings potential. Property Operations > CIBC World Markets signed a 30-year lease for 100% of the space in 300 Madison Avenue, a 1.2 million square foot office building Brookfield is constructing in midtown Manhattan for completion in early 2004. > Brookfield acquired a 50% interest in the 1.8 million square foot Bay-Adelaide Centre office project in downtown Toronto. This includes a one million square foot office tower, which Brookfield plans to develop on securing major tenancies. > Brookfield acquired a 25% interest in a partnership formed to refurbish and reposition the Hudson Bay Centre, a one million square foot office-retail complex in midtown Toronto. Natural Resource Operations > Construction of the US$2.3 billion Antamina copper-zinc mine in Peru is virtually completed, with initial start-up scheduled in the third quarter and full production expected by the year end. > Noranda and Falconbridge signed a letter of intent to acquire the Lomas Bayas copper mine and adjacent Fortuna de Cobre copper deposit in northern Chile, with closing expected in the second quarter. 2 BRASCAN CORPORATION 3 > Commercial production started at the $360 million Huntingdon high-speed aluminum mill in Tennessee. When all phases of the mill are completed, it will produce 100,000 tonnes of heavy gauge foil for industrial and packaging users. > Engineering and construction are 90% and 30% completed, respectively, on the $260 million Altonorte copper smelter expansion in Chile, which will nearly double its annual copper production to 290,000 tonnes and triple annual sulphuric acid output to 700,000 tonnes. > Construction continued on two projects to increase the group's panelboard production capacity - the new $230 million oriented strandboard mill in Barton, Alabama and a $40 million particleboard line installation at the Cowie mill in Scotland. Energy Operations > Great Lakes Hydro Income Fund acquired a 50% interest in Powell River Energy in British Columbia. This added 82 megawatts of capacity to the group's power production base, which now stands at 987 megawatts. > Construction commenced on four new hydroelectric generating stations in Ontario, British Columbia and southern Brazil, with an aggregate capacity of 121 megawatts. Financial Services Progress was also made on several initiatives in the group's financial services operations. > Trilon's investment management affiliate, Highstreet Asset Management, issued $287 million of an innovative investment product, "Highstreet Years". > Trilon launched the $500 million Tricap Restructuring Fund to focus on corporate restructurings and turnaround situations. > Brascan has agreed to sell its 40% interest in its Brazilian financial services joint-venture, Banco Brascan S.A., to Trilon for US$41 million, thereby consolidating all the group's financial services under Trilon. CAPITAL REPURCHASE PROGRAM Progress also continued on the program to repurchase shares in Brascan and its affiliates which commenced in 2000, to increase value for the benefit of the group's remaining shareholders. During the first quarter of 2001, $314 million of group securities were acquired: > Trilon acquired 14.5 million of its common shares in January 2001 under a substantial issuer bid, increasing Brascan's ownership of Trilon to 71%. > Brascan acquired the outstanding 4.3 million publicly held common shares of Great Lakes Power Inc., following a going-private transaction approved by Great Lakes' shareholders on February 28, 2001. These shares were acquired in exchange for $250,000 in cash and 3.9 million Class A common shares of Brascan. > Brascan acquired 682,500 of its Class A common shares during the quarter under its normal course issuer bid which concluded on April 2, 2001. Since this bid commenced in April 2000, a total of 5.5 million shares were acquired for $109.5 million at an average price per share of $19.95. FIRST QUARTER 2001 PRESS RELEASE 3 4 As previously announced, Brascan received approval for a new normal course issuer bid to purchase up to 8,652,276 of its Class A common shares, representing approximately 5% of the company's outstanding Class A shares. Purchases under this bid will be made through the facilities of The Toronto Stock Exchange and the New York Stock Exchange. The period of this bid is from April 19, 2001 to April 18, 2002. CORPORATE AND OUTLOOK The regular quarterly dividend of $0.25 per share was declared, payable on August 31, 2001 to Class A and Class B common shareholders of record at the close of business on August 1, 2001. ROBERT HARDING, BRASCAN'S CHAIRMAN, IN COMMENTING ON THE OUTLOOK FOR THE CURRENT YEAR, STATED THAT: "WE HAVE ESTABLISHED SOLID BUSINESS OPERATIONS WITH QUALITY ASSETS IN THREE VALUE SECTORS - COMMERCIAL PROPERTIES, NATURAL RESOURCES AND POWER GENERATION - AS WELL AS A STRONG AND GROWING FINANCIAL SERVICES BUSINESS. WE WILL CONTINUE TO ENHANCE VALUE THROUGH FOSTERING A PERFORMANCE CULTURE, BY EXPANDING OUR BUSINESS BASE AND BY EMPLOYING A VALUE-ADDING APPROACH TO EACH OF OUR ACTIONS. WE ARE DETERMINED TO TRANSLATE THE SIGNIFICANT VALUES CREATED IN RECENT YEARS INTO INCREASED SHAREHOLDER RETURNS." * * * * * * * Note: This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's continuous disclosure documents, including its 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. * * * * * * * BRASCAN CORPORATION is focussed on increasing shareholder value through owning businesses with leadership positions in the property, natural resources, energy and financial services industries. The Brascan group employs over 50,000 people in managing and operating more than 120 major properties and production facilities in North and South America and Europe. Brascan is listed on The Toronto Stock Exchange and the New York Stock Exchange under the symbol BNN. * * * * * * * For more information, please visit our web site at www.brascancorp.com or contact the following individuals:
MEDIA: INVESTOR AND FINANCIAL ANALYSTS: Robert J. Harding Richard Legault Katherine C. Vyse Chairman Senior Vice-President and Vice-President 416-363-9491 Chief Financial Officer Investor Relations 416-956-5183 416-369-8246
BRASCAN CORPORATION 4 5 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET
MARCH 31 December 31 MILLIONS 2001 2000 ========================================================================== ASSETS Cash and cash equivalents $ 199 $ 347 Securities 2,348 2,371 Accounts and notes receivable 2,714 2,833 Investments accounted for using equity method 3,681 3,654 Property, plant and equipment 2,146 2,018 Other assets 414 378 - -------------------------------------------------------------------------- $11,502 $11,601 ========================================================================== LIABILITIES Accounts payable and other $ 803 $ 812 Corporate borrowings 1,367 1,360 Subsidiary company borrowings 2,414 2,420 - -------------------------------------------------------------------------- 4,584 4,592 DEFERRED CREDITS 394 395 CAPITAL BASE Minority interests 1,494 1,701 Shareholders' equity (Note 3) 5,030 4,913 - -------------------------------------------------------------------------- 6,524 6,614 - -------------------------------------------------------------------------- $11,502 $11,601 ==========================================================================
FIRST QUARTER 2001 PRESS RELEASE 5 6 CONSOLIDATED STATEMENT OF INCOME
Three months ended March 31 MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 ========================================================================================= GROUP REVENUES $3,212 $3,201 Revenue of equity accounted affiliates 2,886 2,927 ------ ------ Consolidated revenues 326 274 Equity in pre-tax earnings of affiliates 66 106 - ----------------------------------------------------------------------------------------- INCOME BEFORE THE UNDERNOTED ITEMS 392 380 Operating expenses 165 143 Interest expense 72 65 Minority interests 37 34 Taxes and other provisions 29 51 - ----------------------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS 89 87 Income and gain on sale of discontinued operations (Note 5) -- 260 - ----------------------------------------------------------------------------------------- NET INCOME $ 89 $ 347 ========================================================================================= PER BASIC CLASS A AND CLASS B COMMON SHARE Income from continuing operations $ 0.44 $ 0.43 Net income $ 0.44 $ 1.93 ========================================================================================= PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE Income from continuing operations $ 0.44 $ 0.43 Net income $ 0.44 $ 1.88 =========================================================================================
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
Three months ended March 31 MILLIONS 2001 2000 ========================================================== BALANCE, BEGINNING OF PERIOD $2,367 $1,938 Net income 89 347 - ---------------------------------------------------------- 2,456 2,285 - ---------------------------------------------------------- SHAREHOLDER DISTRIBUTIONS Convertible note interest 1 2 Preferred share dividends 11 10 Common share dividends 43 43 - ---------------------------------------------------------- 55 55 - ---------------------------------------------------------- BALANCE, END OF PERIOD $2,401 $2,230 ==========================================================
6 BRASCAN CORPORATION 7 CONSOLIDATED STATEMENT OF CASH FLOWS
Three months ended March 31 MILLIONS 2001 2000 =============================================================================================== GROUP OPERATING CASH FLOWS $ 346 $ 471 Operating cash flows of equity accounted affiliates 236 368 - ----------------------------------------------------------------------------------------------- Consolidated cash flow from operations 110 103 - ----------------------------------------------------------------------------------------------- FINANCING AND SHAREHOLDER DISTRIBUTIONS Corporate borrowings: Issuances -- 4 Repayments (54) (291) Subsidiary company borrowings: Issuances 123 20 Repayments (167) (6) Minority interests (176) -- Shares repurchased (17) -- Convertible note interest paid (1) (2) Dividends paid (54) (53) - ----------------------------------------------------------------------------------------------- (346) (328) - ----------------------------------------------------------------------------------------------- INVESTING Securities: Purchases (96) -- Sales 119 61 Loans and other receivables: Advanced (340) (468) Collected 467 129 Investment in property and equipment (126) (64) Corporate investments sold -- 619 Other 64 (58) - ----------------------------------------------------------------------------------------------- 88 219 - ----------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Increase (Decrease) (148) (6) Balance, beginning of period 347 100 - ----------------------------------------------------------------------------------------------- Balance, end of period $ 199 $ 94 ===============================================================================================
FIRST QUARTER 2001 PRESS RELEASE 7 8 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF ACCOUNTING POLICIES Reference is made to the company's most recently issued Annual Report, which includes information necessary or useful to understanding the company's businesses and financial statement presentation. In particular, the company's significant accounting policies and practices are presented as Note 1 to the Consolidated Financial Statements included in that Report. The quarterly financial statements are unaudited. Financial information in this Report reflects any adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with generally accepted accounting principles ("GAAP") in Canada. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. Certain prior year amounts have been restated or reclassified to conform to the current year's presentation. 2. CHANGE IN ACCOUNTING POLICIES This quarter, the company has adopted the new accounting standard issued by the CICA on Earnings Per Share. The new section harmonizes Canadian standards with the United States standards for the calculation of diluted earnings per share. All earnings per share numbers have been retroactively restated and the changes are not significant. 3. SHAREHOLDERS' EQUITY
MARCH 31 December 31 MILLIONS 2001 2000 ======================================================================================= Convertible notes $ 99 $ 99 Class A Preference shares 732 732 Common Shares Class A and Class B 4,199 4,082 - --------------------------------------------------------------------------------------- $5,030 $4,913 =======================================================================================
4. SHARES OUTSTANDING
MARCH 31 December 31 2001 2000 ======================================================================================= Class A Common Shares issued 172,548,083 169,290,683 Class B Common Shares issued 85,120 85,120 - --------------------------------------------------------------------------------------- 172,633,203 169,375,803 Reserved for conversion of subordinated notes 3,106,847 3,116,782 - --------------------------------------------------------------------------------------- Total fully diluted Class A and Class B Common Shares 175,740,050 172,492,585 ======================================================================================= Unexercised options 3,450,867 3,012,707 - --------------------------------------------------------------------------------------- Exercisable options 2,561,197 1,965,037 =======================================================================================
5. INCOME AND GAIN ON SALE OF DISCONTINUED OPERATIONS In March 2000, the company sold its investment in Canadian Hunter Exploration Inc. for gross proceeds of $619 million. After providing for taxes and other costs in connection with the sale, the company realized a net gain of $250 million. Brascan's share of Canadian Hunter's income in 2000 prior to its sale was $10 million. 8 BRASCAN CORPORATION 9 6. SEGMENTED INCOME STATEMENT The company's business segments are based on the manner in which the company's businesses are organized and operating decisions and performance are assessed.
Three months ended March 31 MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 =================================================================================== REVENUES Property operations $ 39 $ 22 Natural resource operations 5 41 Energy operations 20 20 Financial and other operations 51 36 Investment and other income 20 20 - ----------------------------------------------------------------------------------- 135 139 - ----------------------------------------------------------------------------------- UNALLOCATED EXPENSES Interest expense 26 28 Minority interests 17 17 Operating and other costs 3 7 - ----------------------------------------------------------------------------------- 46 52 - ----------------------------------------------------------------------------------- EARNINGS FROM CONTINUING OPERATIONS 89 87 Income and gain on sale of discontinued operations -- 260 - ----------------------------------------------------------------------------------- NET INCOME $ 89 $ 347 =================================================================================== EARNINGS PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE Income from continuing operations $0.44 $0.43 Net income $0.44 $1.88 ===================================================================================
7. SEGMENTED BALANCE SHEET ANALYSIS Brascan's segmented balance sheet, which shows the equity investment in each business sector and the principal affiliates operating in each sector as at March 31, 2001 and December 31, 2000, was as follows:
MARCH 31 December 31 MILLIONS 2001 2000 ==================================================================================== OPERATING ASSETS AFFILIATE Property operations Brookfield $1,371 $1,332 Natural resource operations Noranda 1,796 1,809 Nexfor 400 400 Energy operations Great Lakes 802 692 Financial and other operations Trilon 1,405 1,376 Brascan Brazil 416 399 FINANCIAL AND OTHER ASSETS 1,082 1,137 - ------------------------------------------------------------------------------------ $7,272 $7,145 ==================================================================================== LIABILITIES Accounts payable and other $ 51 $ 42 Company borrowings 1,367 1,360 - ------------------------------------------------------------------------------------ 1,418 1,402 DEFERRED CREDITS 218 224 CAPITAL BASE Minority interests 606 606 Shareholders' equity 5,030 4,913 - ------------------------------------------------------------------------------------ 5,636 5,519 - ------------------------------------------------------------------------------------ $7,272 $7,145 ====================================================================================
FIRST QUARTER 2001 PRESS RELEASE 9 10 8. NET ASSET VALUE The composition of the company's net asset value by business sector and the principal affiliates operating in each sector at March 31, 2001 and December 31, 2000 is set out in the following table:
MARCH 31 December 31 MILLIONS 2001 2000 ==================================================================================== OPERATING ASSETS AFFILIATE Property operations Brookfield $2,054 $2,062 Natural resource operations Noranda 1,491 1,407 Nexfor 351 337 Energy operations Great Lakes 1,678 1,534 Financial and other operations Trilon 1,432 1,247 Brascan Brazil 640 640 FINANCIAL AND OTHER ASSETS 1,082 1,137 - ------------------------------------------------------------------------------------ $8,728 $8,364 ==================================================================================== LOANS AND ACCOUNTS PAYABLE $1,418 $1,402 DEFERRED CREDITS 100 100 CAPITAL BASE Minority interests 606 606 Preference shares 732 732 Class A and Class B common shares and convertible notes 5,872 5,524 - ------------------------------------------------------------------------------------ $8,728 $8,364 ==================================================================================== PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE $33.42 $32.02 ====================================================================================
Net asset values are derived by valuing the company's publicly traded affiliates at their quoted market values at the end of the reporting period, and by valuing Brascan Brazil at a 25% discount from the estimated domestic market value. Accordingly, the values do not reflect any control premiums attributable to these companies nor the transaction costs or taxes that may result from the sale of these investments. The net asset value of the company's investment in Great Lakes is after deducting $744 million of affiliate preference shares and is based on the market price of its shares immediately prior to Brascan's acquisition of the minority shareholdings. Restructuring and tax provisions are excluded in determining the underlying values, as these largely relate to accounting adjustments and tax timing differences. Currency and other general financial provisions of $100 million have, however, been deducted. Values used for the company's financial and other assets and loans and accounts payable are included at their recorded book values. - 30 - 10 BRASCAN CORPORATION EX-99.4 5 y49937ex99-4.txt PRESS RELEASE DATED APRIL 17, 2001 1 BRASCAN NEWS RELEASE CORPORATION BRASCAN CORPORATION ANNOUNCES NORMAL COURSE ISSUER BID TORONTO, APRIL 17, 2001 - Brascan Corporation announced today that it has received approval from The Toronto Stock Exchange for its proposed normal course issuer bid to purchase up to 8,652,276 Class A Limited Voting Shares (the "Class A Shares") representing approximately 5% of the 173,045,521 currently outstanding Class A Shares. Purchases pursuant to the bid will be made through the facilities of The Toronto Stock Exchange and the New York Stock Exchange. The period of the normal course issuer bid will be from April 19, 2001 to April 18, 2002, or such earlier date as Brascan may complete its purchases. The prices which Brascan will pay for any Class A Shares purchased through the facilities of the Exchange will be the market price of the Class A Shares at the time of acquisition. Any Class A Shares acquired by Brascan will be cancelled. Under a previous normal course issuer bid which ran from April 3, 2000 to April 2, 2001, Brascan purchased 5,485,700 Class A shares through open market purchases on The Toronto Stock Exchange. During 2000, Brascan also acquired $50 million of its Series II Convertible Notes, equivalent to 1.6 million Class A Shares. Brascan believes that from time to time, the market prices of its Class A Shares may not fully reflect the value of its business and its future business prospects. The company believes that its outstanding Class A Shares currently represent an attractive investment to Brascan and an appropriate and desirable use of its available funds. * * * * * * * * * * BRASCAN CORPORATION is focused on increasing shareholder value through its ownership interests in businesses with leadership positions in the property, natural resources, energy and financial services industries. The Brascan group employs over 50,000 people in managing and operating more than 120 major production facilities in North and South America and Europe. Brascan is listed on The Toronto Stock Exchange and the New York Stock Exchange under the symbol BNN. For more information, please visit our web site at www.brascancorp.com or contact the following individuals:
MEDIA: INVESTORS AND FINANCIAL ANALYSTS: Robert J. Harding Richard Legault Katherine C. Vyse Chairman Senior Vice-President and Vice-President, 416-363-9491 Chief Financial Officer Investor Relations 416-956-5183 416-369-8246
EX-99.5 6 y49937ex99-5.txt PRESS RELEASE DATED FEBRUARY 28, 2001 1 BRASCAN GREAT LAKES POWER NEWS RELEASE GREAT LAKES POWER SHAREHOLDERS' APPROVE OFFER BY BRASCAN CORPORATION TORONTO, FEBRUARY 28, 2001 - Great Lakes Power Inc. and Brascan Corporation (BNN: TSE, NYSE) today announced that the shareholders of Great Lakes Power approved the going private transaction of Great Lakes Power proposed by Brascan, its majority shareholder, at a special meeting of shareholders held this afternoon. Over 99% of the shareholders that voted approved the transaction. Shareholders of Great Lakes Power will receive either cash (by way of redeemable preferred shares) or Class A common shares of Brascan following the completion of the transaction. Registered shareholders of Great Lakes Power are asked to submit their shares to its transfer agent, CIBC Mellon Trust Company, as soon as possible. Non-registered shareholders should consult their brokers. The transaction is expected to be completed on or about March 1, 2001. Cash of approximately Cdn $ - and approximately - million Class A common shares of Brascan are expected to be distributed to the minority shareholders of Great Lakes Power in March on receipt by the transfer agent of certificates evidencing ownership of their Great Lakes Power shares. As a result of this vote, Great Lakes Power will apply to have its common shares (GLZ) delisted from The Toronto Stock Exchange. * * * * * * * * * * BRASCAN CORPORATION and its affiliates operate in the property, natural resources, energy and financial services sectors, employing over 50,000 people in managing and operating more than 120 major properties and production facilities located throughout North and South America. Brascan is listed on The Toronto Stock Exchange and the New York Stock Exchange under the symbol BNN. GREAT LAKES POWER INC. generates, transmits and distributes electricity from operations across Canada and in the southern United States. For more information, please contact: BRASCAN CORPORATION GREAT LAKES POWER INC. Robert J. Harding Edward C. Kress Chairman Chairman and Chief Executive Officer 416-363-9491 416-956-5140 WEB SITE: www.brascancorp.com ENQUIRIES: ENQUIRIES@BRASCANCORP.COM -30- EX-99.6 7 y49937ex99-6.txt PRESS RELESE DATED FEBRUARY 12, 2001 1 BRASCAN NEWS RELEASE STOCK SYMBOL: BNN TSE/NYSE A conference call has been arranged for investors and analysts to discuss Brascan's year end results with senior management on MONDAY FEBRUARY 12 AT 10:00 A.M. The call can be accessed by dialing 416-641-6699 (local and overseas) or 1-800-381-7839 (toll free in North America) at approximately 9:50 a.m. A taped rebroadcast of the teleconference will be available until February 26, 2001 by calling 416-626-4100 and entering reservation number 17786511. This conference call will also be Webcast live on our web site at www.brascancorp.com, where it will be archived for future reference. A supplementary information package is also available on our web site under "Press Releases". BRASCAN ANNOUNCES RECORD EARNINGS OF $648 MILLION TORONTO, FEBRUARY 12, 2001 - Brascan Corporation today announced record earnings for the year ended December 31, 2000 of $648 million or $3.41 per share. These results, both before and after investment gains, are the highest in the company's history. 2000 HIGHLIGHTS - Earnings from continuing operations increased 36% to $388 million or $1.96 per share. - Progress continued to be made across the group on productivity programs, increasing operating income by 19% to $481 million. - Over $2.1 billion was invested during 2000 in new mining, forest products, commercial property and energy assets to expand the group's production base. - Over $800 million of group equity securities were repurchased at discounts to their underlying values. - In total, the underlying values of Brascan's common shares was enhanced by approximately $750 million through the group's value adding initiatives. BRASCAN'S CHAIRMAN, ROBERT HARDING, COMMENTED THAT: "SUCCESS WITH OUR PROFIT MARGIN IMPROVEMENT PROGRAM AND ATTENTION TO ADDING VALUE TO EACH OF OUR CORE OPERATIONS PRODUCED SIGNIFICANT RESULTS FOR THE YEAR AND POSITIONED US FOR FURTHER IMPROVEMENT BEYOND 2000." 2 2 FINANCIAL HIGHLIGHTS
Three months ended Year ended December 31 December 31 Cdn.$ millions, except per share amounts 2000 1999 2000 1999 GROUP REVENUES $3,613 $3,494 $13,524 $12,729 --------------------------------------- INCOME FROM CONTINUING OPERATIONS $ 91 $ 81 $ 388 $ 286 Income from discontinued operations -- 12 10 27 Gain on sale of discontinued operations -- 110 250 110 --------------------------------------- NET INCOME $ 91 $ 203 $ 648 $ 423 --------------------------------------- PER FULLY DILUTED CLASS A AND CLASS B COMMON SHARE: Income from continuing operations Net income $ 0.45 $ 0.40 $ 1.96 $ 1.38 $ 0.45 $ 1.08 $ 3.41 $ 2.15 ---------------------------------------
Shareholders' equity increased to $4.9 billion at the end of December 2000, 38% higher than five years ago after distributing $1.1 billion as shareholder dividends and for share repurchases. OPERATING RESULTS Operating income for 2000, before investment and other income, increased to $481 million from $404 million in 1999, with all of the company's businesses reporting improved results. BRASCAN'S PROPERTY OPERATIONS contributed $111 million, up from $100 million 1999. Strong industry fundamentals in most of Brookfield's commercial property and housing markets increased its operating cash flows for 2000 by 23% to $474 million, of which Brascan's share was $228 million. Brookfield increased the returns from its commercial property portfolio through proactive re-leasing and lease restructurings of more than five million square feet of space during 2000. NATURAL RESOURCES OPERATIONS contributed $148 million to operating income, up 40% from $106 million last year due mainly to productivity improvements, higher prices for nickel and aluminum and a turnaround in pulp and paper markets. The first group of projects completed under Noranda's Six Sigma productivity improvement program improved Noranda's pre-tax 2000 earnings by $34 million, and a second phase of 149 new projects is now under way. ENERGY POWER OPERATIONS contributed $68 million, up from $66 million last year. Growth in power revenues in Ontario and Quebec was offset by the impact of unusually dry conditions in the US Midwest on power operations in Louisiana. FINANCIAL AND OTHER OPERATIONS contributed $154 million, up from $132 million last year, reflecting increased business activity in Trilon's financial advisory and brokerage services and higher investment yields, as well as an improvement in Brascan's Brazilian operations. 3 3 BUSINESS DEVELOPMENT INITIATIVES Each of the group's businesses is actively engaged in enhancing its core operations through developing and acquiring new high quality production facilities and businesses, many of which utilize new and emerging technologies. The proprietary magnesium technology developed by Noranda has been installed at its new Magnola plant in Quebec, which recently started to produce metal on a continuous basis. Nexfor completed a $68 million acquisition of New Brunswick-based Juniper Lumber Company, which provides an entry into the high-growth I-joist engineered lumber business. Great Lakes is applying new technologies to upgrade and expand the generating capacity of its hydroelectric stations in northern Ontario. Through its Maclaren Energy affiliate, Great Lakes also entered the energy marketing business in the northeastern United States using advanced control systems. Brookfield and Trilon announced the formation of a real estate technology partnership with two financial partners to provide venture capital for emerging technology-based product and service initiatives for real estate companies and their tenants. Trilon launched the $100 million Trilon Opportunity Fund, a private equity fund to invest in start-up companies with new and emerging technologies that have established partnerships with strong industry leaders. Trilon also expanded its asset management activities through a US$200 million investment in The Imagine Group, a finite-risk reinsurance company based in Bermuda. CAPITAL INVESTMENT PROGRAM Progress continued on the multi-year capital investment program to expand the group's production base and long-term earning potential. BROOKFIELD added four major office towers in western Canada to its property portfolio, including the 2.6 million square foot Bankers Hall complex in Calgary, and is proceeding with the development of a 1.2 million square foot office building in midtown Manhattan for the headquarters of a major financial institution. In January 2001, Brookfield announced an agreement to acquire a 50% interest in the 1.8 million square foot Bay-Adelaide mixed-use development project in downtown Toronto. NORANDA is well advanced on its capital investment program to expand its mining and metallurgical production base. Projects substantially completed this year include the Bell Allard copper zinc mine in Northern Quebec, the CCR copper refinery expansion in Montreal and the New Madrid aluminum smelter expansion in Missouri. Progress is well under way on four other major projects - the Magnola magnesium plant in Quebec, the Huntingdon high-speed aluminium foil mill in Tennessee, the Antamina copper-zinc mine in northern Peru and the Altonorte copper smelter expansion in Chile. Construction of the Kidd Creek Deep Mine in northern Ontario has been approved and feasibility studies are being carried out for the recently discovered high-grade zinc deposit in the Matagami region of Quebec and the Koniambo nickel deposit in New Caledonia. 4 4 NEXFOR'S program to expand its panelboard operations continued with the completion of the Joanna oriented strandboard mill in South Carolina and the expansion of its OSB mill in Inverness, Scotland. Construction is well under way on a second new OSB mill in Alabama, Nexfor's sixth in North America, and the expansion of its panelboard mill in Cowie, Scotland will commence shortly. GREAT LAKES announced a $500 million capital investment program, an integral part of a strategic plan to double earnings from the group's power generating business over the next five years by developing and acquiring hydroelectric facilities with water storage capacity and expanding its power transmission interconnections. Projects under way and in the active feasibility stage include the High Falls generating station redevelopment in northern Ontario, the acquisition of two hydroelectric stations in British Columbia and the development of five hydroelectric stations in southern Brazil. Further details on the major projects now under development in the group's capital investment program are included on page 8 of this release. SURFACING SHAREHOLDER VALUE With the progress made recently in expanding the group's production base and increasing returns from existing operations, attention is being focussed on translating the rising underlying values created in each area of the company's businesses into higher share prices for the benefit of investors. Towards this end, group companies repurchased $827 million of their shares at discounts to their underlying values, adding approximately $150 million to the value of Brascan's common shares. Major repurchases included: - Brascan repurchased convertible notes and 4.8 million Class A common shares for $132 million during 2000. - Brookfield acquired all of the minority shareholdings of Carma Corporation and increased its ownership of Gentra to 85% during 2000. - Trilon acquired 14.5 million of its shares in January 2001, increasing Brascan's ownership of Trilon to 71%. - Brascan made an offer to acquire 100% of Great Lakes, which is expected to be approved by Great Lakes' shareholders on February 28, 2001. New efforts are also being made to expand the company's investor base by communicating its recent progress to current and prospective investors. As part of this initiative, the company listed its Class A common shares on the New York Stock Exchange on December 20, 2000, expanding its ability to reach out to investors across North America. 5 5 CORPORATE AND OUTLOOK The regular quarterly dividend of $0.25 per share was declared, payable on May 31, 2001 to Class A and B common shareholders of record at the close of business on May 1, 2001. ROBERT HARDING, BRASCAN'S CHAIRMAN, IN COMMENTING ON THE OUTLOOK FOR THE CURRENT YEAR, STATED THAT: "WE HAVE ESTABLISHED LEADING POSITIONS IN THREE VALUE SECTORS - - COMMERCIAL PROPERTIES, NATURAL RESOURCES AND HYDROELECTRICITY - AS WELL AS A STRONG AND GROWING FINANCIAL SERVICES BUSINESS. WE WILL CONTINUE TO ENHANCE VALUE THROUGH FOSTERING A PERFORMANCE CULTURE, BY EXPANDING OUR BUSINESS BASE AND BY EMPLOYING A VALUE-ADDING APPROACH TO EACH OF OUR ACTIONS. WE ARE DETERMINED TO TRANSLATE THE SIGNIFICANT VALUES CREATED IN RECENT YEARS INTO INCREASED SHAREHOLDER RETURNS." * * * * * * * * * * Note: This news release contains forward-looking statements concerning the company's business and operations. The company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the company's most recent Annual Information Form for a description of the major risk factors. * * * * * * * * * * BRASCAN CORPORATION and its affiliates provide a diversified range of products and services to their customers and clients. The group employs over 50,000 people in managing and operating more than 120 major production facilities and properties. Brascan is focussed on increasing shareholder value through its ownership interests in businesses with leadership positions in the natural resources, commercial properties, energy and financial services industries operating throughout North and South America. The company is listed on The Toronto Stock Exchange and the New York Stock Exchange under the symbol BNN. For more information, please contact one of the following individuals or visit our web site.
MEDIA: INVESTORS AND FINANCIAL ANALYSTS: Robert J. Harding Richard Legault Katherine C. Vyse Chairman Senior Vice-President and Vice-President, 416-363-9491 Chief Financial Officer Investor Relations 416-956-5183 416-369-8246
WEB SITE: www.brascancorp.com 6 6 BRASCAN CONSOLIDATED FINANCIAL STATEMENTS(1) CONSOLIDATED STATEMENT OF INCOME
Year ended December 31 Cdn.$ millions, except per share amounts 2000 1999 - ------------------------------------------------------------------ GROUP REVENUES $13,524 $12,729 REVENUE OF EQUITY ACCOUNTED AFFILIATES 12,330 11,652 ------------------- CONSOLIDATED REVENUES 1,194 1,077 Equity in pre-tax earnings of affiliates 376 290 ------------------- INCOME BEFORE THE UNDERNOTED ITEMS 1,570 1,367 Operating expenses 608 561 Interest expense 276 262 Minority interests 147 130 Taxes and other provisions 151 128 ------------------- INCOME FROM CONTINUING OPERATIONS 388 286 Income from discontinued operations 10 27 Gain on sale of discontinued operations 250 110 - ------------------------------------------------------------------ NET INCOME $ 648 $ 423 ================================================================== PER CLASS A AND CLASS B COMMON SHARE Income from continuing operations $ 1.96 $ 1.38 Net income $ 3.41 $ 2.15 ==================================================================
CONSOLIDATED BALANCE SHEET
DEC. 31 Dec. 31 Cdn.$ millions 2000 1999 - --------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 347 $ 100 Securities 2,371 2,509 Loans and other receivables 2,833 2,691 Corporate investments 3,654 3,614 Property and equipment 2,018 1,832 Other assets 378 314 - --------------------------------------------------------------------------------- $11,601 $11,060 ================================================================================= LIABILITIES Accounts payable and other $ 812 $ 639 Corporate borrowings 1,360 1,718 Subsidiary company borrowings 2,420 2,161 ----------------------- 4,592 4,518 DEFERRED CREDITS 395 332 CAPITAL BASE Minority interests 1,701 1,596 Shareholders' equity(2, 3) 4,913 4,614 ----------------------- 6,614 6,210 - --------------------------------------------------------------------------------- $11,601 $11,060 =================================================================================
7 7 CONSOLIDATED STATEMENT OF CASH FLOW
Year ended December 31 Cdn.$ millions 2000 1999 - --------------------------------------------------------------------------------- GROUP OPERATING CASH FLOWS $ 1,708 $ 1,546 Operating cash flows of equity accounted affiliates 1,265 1,147 ------------------------ CONSOLIDATED CASH FLOW FROM OPERATIONS 443 399 ------------------------ FINANCING AND SHAREHOLDER DISTRIBUTIONS Corporate borrowings, net (382) 85 Subsidiary company borrowings, net 198 30 Minority interests 48 (109) Convertible notes repurchased (40) -- Shares issued -- 1 Shares repurchased (92) -- Convertible note interest paid (6) (9) Common and preferred share dividends (213) (208) ------------------------ (487) (210) ------------------------ INVESTING Securities 139 (46) Loans and other receivables, net (230) 21 Investment in property and equipment (201) (115) Corporate investments sold 594 -- Other (11) (99) ------------------------ 291 (239) - --------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Increase (Decrease) 247 (50) Balance, beginning of year 100 150 - --------------------------------------------------------------------------------- Balance, end of year $347 $100 =================================================================================
NOTES: 1. These financial statements should be read in conjunction with the Notes to the Company's audited Consolidated Financial Statements for the year ended December 31, 2000 and 1999. 2. SHAREHOLDERS' EQUITY
DEC. 31 Dec. 31 Cdn.$ millions 2000 1999 - -------------------------------------------------------------------------------- Convertible Notes $ 99 $ 152 Class A Preference Shares 732 732 Common Shares Class A and Class B 4,082 3,730 - -------------------------------------------------------------------------------- $ 4,913 4,614 ================================================================================
3. SHARES OUTSTANDING
DEC. 31 Dec. 31 2000 1999 - -------------------------------------------------------------------------------- Class A Shares issued 169,290,683 173,756,186 Class B Shares issued 85,120 85,120 - -------------------------------------------------------------------------------- 169,375,803 173,841,306 Reserved for conversion of subordinated notes 3,116,782 4,839,073 - -------------------------------------------------------------------------------- Total fully diluted shares 172,492,585 178,680,379 ================================================================================ Unexercised Options 3,012,707 2,959,407 - -------------------------------------------------------------------------------- Exercisable Options 1,965,037 2,272,787 - --------------------------------------------------------------------------------
8 8 BRASCAN SEGMENTED FINANCIAL STATEMENTS(1) SEGMENTED STATEMENT OF INCOME
Three months ended Year ended December 31 December 31 Cdn.$ millions, except per share amounts 2000 1999 2000 1999 - -------------------------------------------------------------------------------------- GROUP REVENUES $ 3,613 $ 3,494 $13,524 $12,729 -------------------------------------------- OPERATING INCOME Property operations 30 36 111 100 Natural resource operations 25 44 148 106 Energy operations 12 10 68 66 Financial and other operations 42 33 154 132 Investment and other income 26 21 113 91 -------------------------------------------- 135 144 594 495 -------------------------------------------- UNALLOCATED EXPENSES Interest expense 26 27 106 111 Minority interests 17 17 67 68 Operating and other costs 2 2 8 8 Taxes and other provisions (1) 17 25 22 -------------------------------------------- 44 63 206 209 -------------------------------------------- INCOME FROM CONTINUING OPERATIONS 91 81 388 286 Income from discontinued operations -- 12 10 27 Gain on sale of discontinued operations -- 110 250 110 - -------------------------------------------------------------------------------------- NET INCOME $ 91 $ 203 $ 648 $ 423 ====================================================================================== PER CLASS A & CLASS B COMMON SHARE Income from continuing operations $ 0.45 $ 0.40 $ 1.96 $ 1.38 Net income $ 0.45 $ 1.08 $ 3.41 $ 2.15 ======================================================================================
SEGMENTED BALANCE SHEET
DEC. 31 Dec. 31 Cdn.$ millions 2000 1999 - ------------------------------------------------------------------------------------ PROPERTY OPERATIONS Brookfield Properties Corporation $1,332 $1,226 NATURAL RESOURCE OPERATIONS Noranda Inc. 1,809 1,787 Nexfor Inc. 400 377 ENERGY OPERATIONS Great Lakes Power Inc. 692 664 FINANCIAL AND OTHER OPERATIONS Trilon Financial Corporation 1,376 1,303 Brascan Brazil Ltd. 399 330 FINANCIAL AND OTHER ASSETS 1,137 1,481 - ------------------------------------------------------------------------------------ $7,145 $7,168 - ------------------------------------------------------------------------------------ LIABILITIES Accounts payable and other $ 42 $ 51 Corporate borrowings 1,360 1,718 ------------------------------ 1,402 1,769 DEFERRED CREDITS 224 179 CAPITAL BASE Minority interests 606 606 Shareholders' equity 4,913 4,614 ------------------------------ 5,519 5,220 - ------------------------------------------------------------------------------------ $7,145 $7,168 ====================================================================================
NET ASSET VALUE
Market Net Asset Number of Values Values Common Shares February 9 February 9 millions, except per share amounts and Equivalents 2001 2001 - -------------------------------------------------------------------------------------- PROPERTY OPERATIONS Brookfield Properties Corporation 78.1 $26.05 $2,034 NATURAL RESOURCE OPERATIONS Noranda Inc. 94.1 16.90 1,590 Nexfor Inc. 47.4 6.95 329 ENERGY OPERATIONS Great Lakes Power Inc. 116.8 21.00 1,709 FINANCIAL AND OTHER OPERATIONS Trilon Financial Corporation 106.1 13.05 1,385 Brascan Brazil Ltd. 56.0 11.43 640 FINANCIAL AND OTHER ASSETS 1,137 - -------------------------------------------------------------------------------------- $8,824 ====================================================================================== LOANS AND ACCOUNTS PAYABLE $1,402 DEFERRED CREDITS 100 CAPITAL BASE Minority interests 606 Preference shares 732 Common shares and convertible notes 5,984 - -------------------------------------------------------------------------------------- $8,824 - -------------------------------------------------------------------------------------- PER CLASS A AND CLASS B COMMON SHARE $34.69 ======================================================================================
NOTE: 1. SEGMENTED FINANCIAL STATEMENTS These financial statements reflect the company's publicly traded operating affiliates and Brascan Brazil on an equity basis. 9 8 BRASCAN CAPITAL INVESTMENT PROGRAM SUMMARY OF MAJOR PROJECTS COMMERCIAL PROPERTIES 300 Madison Avenue, Planning is now under way for a 1.2 million square foot office building development at 42nd Street and New York Madison Avenue in New York City. The building, to be fully leased prior to construction, is being designed for the international headquarters of a major financial institution. Bankers Hall, Calgary Construction of the second tower at the 2.6 million square foot Bankers Hall office complex in Calgary, acquired in May 2000, has been completed and 60% of the remaining vacant space has been leased. Bay-Adelaide Centre, Brookfield has announced an agreement to acquire a 50% interest in this 1.8 million square foot Toronto mixed-use project in downtown Toronto. The first phase, a 1.0 million square foot office tower, will begin construction this year subject to the necessary pre-leasing. MINES Antamina, Peru Construction of the US$2.3 billion Antamina copper-zinc project in northern Peru is proceeding on budget and ahead of schedule. This mine will be one of the world's largest producers of copper and zinc ores when it starts commercial production in 2002. Kidd Creek, Ontario Development of the Kidd Creek Deep Mine in northern Ontario has been approved, to allow access to over 12 million additional tonnes of copper, zinc and silver ore. When completed in 2004, this will be the world's deepest base metal mine. Matagami, Quebec A feasibility study has commenced on developing a new zinc mine at Noranda's Matagami mining camp in northern Quebec, where three zinc-rich massive sulphide deposits have been discovered containing over 5 million tonnes of high grade, near surface reserves. METALLURGICAL FACILITIES Magnola, Quebec Construction of a 63,000 tonne magnesium metal plant in Danville, Quebec is now complete and the first magnesium ingots have been poured. When in full production in 2001, this plant will be the largest and one of the lowest cost producers of this strong, light-weight metal. Huntingdon, Tennessee Construction of the US$240 million high-speed aluminium foil plant in Tennessee is proceeding on schedule, for a production start in early 2001. This project will have an annual capacity of 90,000 tonnes and increase Noranda's foil production capacity by 75%. Altonorte, Chile Construction has begun on a US$170 million expansion of the Altonorte copper smelter near Antofagasta, Chile, which will increase the smelter's annual copper production to 290,000 tonnes and sulphuric acid production to 700,000 tonnes. PANELBOARD MILLS Huguley, Alabama Construction has started on the new US$120 million Barton OSB mill in Alabama, its sixth in North America, for completion in 2001. This will make Nexfor one of the world's largest producers of this building product, with an aggregate annual production capacity of 2.7 billion square feet. Cowie, Scotland A $40 million rebuild of one particleboard line will commence this year to install a continuous press and new recycled wood processing facility. This project will reposition the Cowie panelboard mill as a leading low-cost producer of flooring products for the UK market. HYDROELECTRIC STATIONS High Falls, Ontario Construction will commence this spring on the $75 million High Falls generating facilities in northern Ontario, which will increase its peak power generating capability and its installed capacity to 45 megawatts by 2002. Powell River Energy, The Great Lakes Hydro Income Fund has acquired a 50% interest in two hydroelectric generating stations British Columbia with capacity of 82 megawatts in southwestern British Columbia for $56 million. Passo do Meio, Site development has begun on the 50%-owned 30 megawatt Passo do Meio hydroelectric generating station Southern Brazil in the State of Rio Grande do Sul.
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