SEGMENTED INFORMATION

Brookfield Renewable’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the business, manage operations, and allocate resources based on the type of technology.

Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results, manages operations and allocates resources. The Colombia segment aggregates the financial results of its hydroelectric and cogeneration facilities. The Canada segment includes the financial results of Brookfield Renewable's strategic investment in TransAlta Corporation ("TransAlta"). The corporate segment represents all activity performed above the individual segments for the business.

Reporting to the CODM on the measures utilized to assess performance and allocate resources is provided on a proportionate basis. Information on a proportionate basis reflects Brookfield Renewable’s share from facilities which it accounts for using consolidation and the equity method whereby Brookfield Renewable either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a Unitholder (holders of the GP interest, Redeemable/Exchangeable partnership units, and LP Units) perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to Brookfield Renewable’s Unitholders.

Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate consolidation basis have been disclosed. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items include Brookfield Renewable’s proportionate share of earnings from equity-accounted investments attributable to each of the above-noted items, and exclude the proportionate share of earnings (loss) of consolidated investments not held by us apportioned to each of the above-noted items.

Brookfield Renewable does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent Brookfield Renewable’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish Brookfield Renewable’s legal claims or exposures to such items.

Brookfield Renewable reports its results in accordance with these segments and presents prior period segmented information in a consistent manner.

In accordance with IFRS 8, Operating Segments, Brookfield Renewable discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. Except as it relates to proportionate financial information discussed above, the accounting policies of the reportable segments are the same as those described in Note 1 – Basis of preparation and significant accounting policies. Brookfield Renewable analyzes the performance of its operating segments based on revenues, Adjusted EBITDA, and Funds From Operations.

Brookfield Renewable uses Adjusted EBITDA to assess the performance of its operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, distributions to preferred shareholders and preferred limited partners and other typical non-recurring items.

Brookfield Renewable uses Funds From Operations to assess the performance of its operations and is defined as Adjusted EBITDA less management service costs, interest and current income taxes, which is then adjusted for the cash portion of non-controlling interests and distributions to preferred shareholders and preferred limited partners.

The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles Brookfield Renewable’s proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2019:



	Attributable to Unitholders																						Contribution from equity accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage and Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage and Other		Corporate		Total
Revenues	905		234		237		223		95		37		20		183		87		—		2,021		(379	)	1,338		2,980
Other income	13		19		—		2		4		—		—		17		—		33		88		(17	)	(14	)	57
Direct operating costs	(286	)	(72	)	(93	)	(62	)	(32	)	(9	)	(4	)	(38	)	(46	)	(23	)	(665	)	108		(455	)	(1,012	)
Share of Adjusted EBITDA from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		288		26		314
Adjusted EBITDA	632		181		144		163		67		28		16		162		41		10		1,444		—		895
Management service costs	—		—		—		—		—		—		—		—		—		(108	)	(108	)	—		—		(108	)
Interest expense - borrowings	(156	)	(20	)	(34	)	(66	)	(17	)	(8	)	(5	)	(59	)	(13	)	(92	)	(470	)	104		(316	)	(682	)
Current income taxes	(7	)	(11	)	(9	)	(3	)	(2	)	(1	)	(1	)	—		(1	)	—		(35	)	9		(39	)	(65	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(44	)	(44	)	—		—		(44	)
Preferred equity	—		—		—		—		—		—		—		—		—		(26	)	(26	)	—		—		(26	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(113	)	(12	)	(125	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(528	)	(528	)
Funds From Operations	469		150		101		94		48		19		10		103		27		(260	)	761		—		—
Depreciation	(227	)	(84	)	(21	)	(157	)	(47	)	(17	)	(5	)	(65	)	(23	)	(4	)	(650	)	155		(303	)	(798	)
Foreign exchange and unrealized financial instrument loss	11		(5	)	(2	)	(2	)	(10	)	(3	)	1		1		(3	)	(18	)	(30	)	9		(12	)	(33	)
Deferred income tax recovery	(27	)	4		(4	)	24		11		—		—		15		—		46		69		(41	)	(14	)	14
Other	(76	)	(6	)	(2	)	(23	)	(9	)	2		—		(49	)	—		(46	)	(209	)	55		63		(91	)
Share of earnings from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(178	)	—		(178	)
Net income attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		266		266
Net income (loss) attributable to Unitholders⁽²⁾	150		59		72		(64	)	(7	)	1		6		5		1		(282	)	(59	)	—		—		(59	)

⁽¹⁾

Share of earnings from equity-accounted investments of $11 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $262 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



	Attributable to Unitholders																																	Contribution from equity accounted investments			Attributable to non- controlling interests			As per IFRS financials⁽¹⁾
	Hydroelectric									Wind												Solar			Storage and Other			Corporate			Total
(MILLIONS)	North America			Brazil			Colombia			North America			Europe			Brazil			Asia			Solar			Storage and Other			Corporate			Total
Revenues	$	893		$	244		$	216		$	219		$	73		$	42		$	12		$	146		$	85		$	—		$	1,930		$	(286	)	$	1,338		$	2,982
Other income	12			5			4			2			11			—			—			5			—			7			46			(7		)	11			50
Direct operating costs	(286		)	(76		)	(94		)	(64		)	(27		)	(9		)	(4		)	(34		)	(36		)	(23		)	(653		)	86			(469		)	(1,036		)
Share of Adjusted EBITDA from equity accounted investments	—			—			—			—			—			—			—			—			—			—			—			207			20			227
Adjusted EBITDA	619			173			126			157			57			33			8			117			49			(16		)	1,323			—			900
Management service costs	—			—			—			—			—			—			—			—			—			(80		)	(80		)	—			—			(80		)
Interest expense - borrowings	(172		)	(22		)	(38		)	(63		)	(17		)	(9		)	(4		)	(45		)	(17		)	(99		)	(486		)	82			(301		)	(705		)
Current income taxes	(4		)	(9		)	(2		)	(1		)	(2		)	—			1			—			—			—			(17		)	3			(16		)	(30		)
Distributions attributable to
Preferred limited partners equity	—			—			—			—			—			—			—			—			—			(38		)	(38		)	—			—			(38		)
Preferred equity	—			—			—			—			—			—			—			—			—			(26		)	(26		)	—			—			(26		)
Share of interest and cash taxes from equity accounted investments	—			—			—			—			—			—			—			—			—			—			—			(85		)	(12		)	(97		)
Share of Funds From Operations attributable to non-controlling interests	—			—			—			—			—			—			—			—			—			—			—			—			(571		)	(571		)
Funds From Operations	443			142			86			93			38			24			5			72			32			(259		)	676			—			—
Depreciation	(231		)	(136		)	(18		)	(122		)	(43		)	(13		)	(2		)	(40		)	(23		)	(2		)	(630		)	96			(285		)	(819		)
Foreign exchange and unrealized financial instrument loss	(1		)	(1		)	7			2			9			(10		)	3			(9		)	(2		)	—			(2		)	(3		)	(29		)	(34		)
Deferred income tax expense	(1		)	1			18			20			2			—			—			21			—			24			85			(50		)	54			89
Other	(21		)	(3		)	(6		)	(11		)	(1		)	—			(2		)	(11		)	(9		)	(23		)	(87		)	19			(14		)	(82		)
Share of earnings from equity accounted investments	—			—			—			—			—			—			—			—			—			—			—			(62		)	—			(62		)
Net income attributable to non-controlling interests	—			—			—			—			—			—			—			—			—			—			—			—			274			274
Net income (loss) attributable to Unitholders⁽²⁾	$	189		$	3		$	87		$	(18	)	$	5		$	1		$	4		$	33		$	(2	)	$	(260	)	$	42		$	—		$	—		$	42

⁽¹⁾

Share of earnings from equity-accounted investments of $68 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $297 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



	Attributable to Unitholders																				Contribution from equity accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Storage and Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Solar		Storage and Other		Corporate		Total
Revenues	945		243		191		161		46		26		8		59		—		1,679		(74	)	1,020		2,625
Other income	1		12		2		—		—		—		—		6		19		40		(11	)	18		47
Direct operating costs	(281	)	(77	)	(94	)	(42	)	(20	)	(4	)	(2	)	(32	)	(25	)	(577	)	28		(429	)	(978	)
Share of Adjusted EBITDA from equity accounted investments	—		—		—		—		—		—		—		—		—		—		57		—		57
Adjusted EBITDA	665		178		99		119		26		22		6		33		(6	)	1,142		—		609
Management service costs	—		—		—		—		—		—		—		—		(82	)	(82	)	—		—		(82	)
Interest expense - borrowings	(180	)	(18	)	(42	)	(45	)	(10	)	(6	)	(3	)	(14	)	(89	)	(407	)	21		(246	)	(632	)
Current income taxes	1		(12	)	(5	)	—		(1	)	—		(1	)	—		—		(18	)	1		(22	)	(39	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		(28	)	(28	)	—		—		(28	)
Preferred equity	—		—		—		—		—		—		—		—		(26	)	(26	)	—		—		(26	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		(22	)	—		(22	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		(341	)	(341	)
Funds From Operations	486		148		52		74		15		16		2		19		(231	)	581		—		—
Depreciation	(220	)	(142	)	(26	)	(90	)	(25	)	(7	)	(4	)	(25	)	—		(539	)	22		(265	)	(782	)
Foreign exchange and unrealized financial instrument loss	(12	)	(3	)	(3	)	1		(14	)	—		(1	)	—		(15	)	(47	)	2		(1	)	(46	)
Deferred income tax expense (recovery)	(67	)	2		(10	)	28		5		—		1		—		16		(25	)	(3	)	(21	)	(49	)
Other	(17	)	(8	)	6		(4	)	4		2		(3	)	—		(6	)	(26	)	12		(1	)	(15	)
Share of earnings from equity accounted investments	—		—		—		—		—		—		—		—		—		—		(33	)	—		(33	)
Net income attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		288		288
Net income (loss) attributable to Unitholders⁽²⁾	170		(3	)	19		9		(15	)	11		(5	)	(6	)	(236	)	(56	)	—		—		(56	)

⁽¹⁾

Share of earnings from equity-accounted investments of $2 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $53 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

The following table presents information on a segmented basis about certain items in Brookfield Renewable’s statement of financial position:



	Attributable to Unitholders																							Contribution from equity accounted investments			Attributable to non- controlling interests		As per IFRS financials
	Hydroelectric						Wind								Solar		Storage and Other		Corporate			Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia
As at December 31, 2019:
Cash and cash equivalents	$	10	$	7	$	10	$	18	$	21	$	2	$	5	$	63	$	6	$	1		$	143	$	(89	)	$	61	$	115
Property, plant and equipment, at fair value	11,488		1,938		1,773		2,556		628		368		187		2,018		732		—			21,688		(4,147		)	13,173		30,714
Total assets	12,218		2,126		2,027		2,705		692		391		233		2,266		780		103			23,541		(2,872		)	15,022		35,691
Total borrowings	3,070		208		449		1,221		326		71		124		1,470		235		2,107			9,281		(2,157		)	3,880		11,004
Other liabilities	2,877		148		499		597		100		10		28		335		31		248			4,873		(715		)	2,398		6,556
For the year ended December 31, 2019:
Additions to property, plant and equipment	112		41		13		121		21		3		—		—		26		3			340		(121		)	144		363
As at December 31, 2018:
Cash and cash equivalents	$	6	$	37	$	7	$	30	$	29	$	5	$	2	$	41	$	9	$	3		$	169	(81		)	$	85	$	173
Property, plant and equipment, at fair value	11,498		1,907		1,609		2,480		819		348		36		1,354		686		(9		)	20,728		(3,529		)	11,826		29,025
Total assets	12,125		2,105		1,868		2,554		939		379		56		1,650		746		161			22,583		(2,483		)	14,003		34,103
Total borrowings	2,995		198		419		1,210		463		75		31		1,021		249		2,328			8,989		(1,972		)	3,701		10,718
Other liabilities	2,764		150		434		536		124		7		3		255		31		211			4,515		(511		)	2,175		6,179
For the year ended December 31, 2018:
Additions to property, plant and equipment	96		30		7		11		10		—		—		9		3		6			172		(16		)	145		301