Financial Data and Key Metrics Changes - Adjusted EBITDA for 2021 increased to $1.8 billion, up from $1.4 billion in 2020, reflecting strong performance across all segments [21][23] - Annual adjusted EBITDA on a run rate basis has now increased to more than $2 billion, significantly up from $215 million when the company was created in 2016 [8][12] - The company ended the year with $2.2 billion of corporate liquidity, bolstered by a recent commitment from Brookfield Asset Management for $1 billion of long-term preferred equity capital [25][26] Business Line Data and Key Metrics Changes - Business services segment generated adjusted EBITDA of $561 million in 2021, more than double compared to 2020 [21] - The residential mortgage insurer contributed $265 million of adjusted EBITDA, benefiting from record underwriting activity [21] - Advanced energy storage operations reported adjusted EBITDA of $784 million, driven by strong aftermarket demand [23] - The water and wastewater operation in Brazil saw a 15% increase in performance compared to 2020 [24] Market Data and Key Metrics Changes - The Canadian housing market is expected to remain stable in 2022, supported by strong underlying fundamentals and moderate home price appreciation [21] - The healthcare services segment in Australia reported adjusted EBITDA of $69 million, showing improvement despite ongoing lockdown impacts [22] Company Strategy and Development Direction - The company plans to continue focusing on acquiring high-quality businesses with strong growth potential and high cash returns [8][12] - Recent acquisitions, including DexKo Global and Modulaire Group, are expected to enhance the company's global footprint and operational capabilities [9][10] - The company is also focused on integrating recent acquisitions and accelerating initiatives to surface value in existing operations [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting a pivot in investor interest from technology-oriented growth to value [33] - The company anticipates continued growth in adjusted EBITDA and cash flows, supported by strong operational performance and strategic acquisitions [12][21] - Management highlighted the importance of maintaining strong ESG practices and recently published an inaugural ESG report [26] Other Important Information - The company generated approximately $350 million in distributions to support growth activities, with significant dividends from its Canadian Residential Mortgage insurer and nuclear technology services operation [11][25] - The intrinsic value per unit of the business has increased at a compound annual rate of 18% over the past five years [12] Q&A Session Summary Question: Potential for upside in Altera due to oil prices - Management noted that the current oil price environment is favorable, encouraging customers to extract more, but cautioned against providing specific forecasts due to volatility [28] Question: Value generation thesis for Cupa acquisition - Management sees opportunities to improve processing yields and expand supply through incremental acquisitions, enhancing the company's market position [30] Question: Market conditions for monetizing assets - Management indicated that the current environment is better for monetization compared to previous periods, with a shift towards value-oriented investments [33] Question: Thoughts on financing approach with BAM - Management emphasized the flexibility of the financing arrangement, allowing for capital drawdown as needed without incurring costs when idle [36] Question: Growth opportunities in Westinghouse's environmental services division - Management highlighted significant growth potential in this area, supported by a strong leadership team and strategic acquisitions [38] Question: Impact of higher interest rates on financing costs - Management has been proactive in refinancing to lock in lower rates and has hedged a significant portion of floating rate exposure [42][44] Question: Inflationary pressures on costs - Management acknowledged cost pressures across various categories but noted that price increases have generally offset these costs [50][52] Question: Update on Sagen's underwriting activity - Management expects normalization in underwriting activity but believes strong housing market fundamentals will support ongoing demand [75] Question: Clarios' advanced battery sales as a percentage of revenue - Management noted strong aftermarket demand for advanced batteries but did not provide an exact percentage of revenue [80] Question: Altera's vessel redeployments - Management emphasized the need for certainty in contractual relationships moving forward, focusing on recovery and returns [83]

Unaudited Interim Condensed Consolidated Financial Statements [Consolidated Statements of Financial Position](index=3&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets **$53.76 billion**, liabilities **$42.66 billion**, and equity **$11.10 billion** as of Sep 30, 2021, slightly decreased from year-end 2020 Consolidated Statement of Financial Position (US$ Millions) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $14,219 | $14,493 | | **Total Non-Current Assets** | $39,541 | $40,253 | | **Total Assets** | **$53,760** | **$54,746** | | **Total Current Liabilities** | $13,336 | $12,133 | | **Total Non-Current Liabilities** | $29,326 | $31,276 | | **Total Liabilities** | **$42,662** | **$43,409** | | **Total Equity** | **$11,098** | **$11,337** | | **Total Liabilities and Equity** | **$53,760** | **$54,746** | [Consolidated Statements of Operating Results](index=4&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Operating%20Results) Nine-month net income surged to **$2.04 billion** from **$200 million** in 2020, driven by a **$1.82 billion** disposition gain and **20% revenue growth** Operating Results Highlights (US$ Millions) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $12,043 | $10,070 | $33,107 | $27,586 | | **Direct operating costs** | ($11,155) | ($9,269) | ($30,682) | ($25,526) | | **Gain on acquisitions/dispositions, net** | $0 | $0 | $1,823 | $179 | | **Income before income tax** | $288 | $195 | $2,222 | $243 | | **Net income (loss)** | **$300** | **$85** | **$2,038** | **$200** | | **Net income (loss) attributable to Limited partners** | $46 | ($10) | $277 | ($136) | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Nine-month comprehensive income was **$1.94 billion**, a reversal from a **$348 million** loss in 2020, driven by strong net income Comprehensive Income (Loss) (US$ Millions) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $300 | $85 | $2,038 | $200 | | **Other comprehensive income (loss)** | ($318) | $192 | ($102) | ($548) | | **Comprehensive income (loss)** | **($18)** | **$277** | **$1,936** | **($348)** | [Consolidated Statements of Changes in Equity](index=6&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by **$239 million** to **$11.10 billion** as of Sep 30, 2021, due to distributions and ownership changes offsetting comprehensive income - Total equity decreased by **$239 million** during the first nine months of 2021, from **$11,337 million** to **$11,098 million**[16](index=16&type=chunk) - Key drivers of the equity change included a total comprehensive income of **$1,936 million**, offset by distributions of **$1,766 million** and ownership changes resulting in a decrease of **$1,740 million**[16](index=16&type=chunk) [Consolidated Statements of Cash Flow](index=7&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Nine-month operating cash flow was **$1.45 billion**, down from **$3.07 billion** in 2020, resulting in a net **$352 million** decrease in cash and cash equivalents Cash Flow Summary (US$ Millions) | Activity | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | | **Cash from operating activities** | $1,450 | $3,074 | | **Cash from (used in) investing activities** | ($569) | ($1,767) | | **Cash from (used in) financing activities** | ($1,233) | ($358) | | **Change during the period** | ($352) | $949 | | **Balance, end of period** | $2,371 | $2,815 | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial items, covering acquisitions, dispositions, segment reporting, borrowings, equity, and related party transactions [Note 3: Acquisition of Businesses](index=12&type=section&id=NOTE%203.%20ACQUISITION%20OF%20BUSINESSES) In 2021, the partnership acquired **Aldo** for **$104 million** cash and **Everise** for **$80 million** cash, resulting in significant goodwill - Acquired **Aldo** Componentes Eletrônicos LTDA ("**Aldo**"), a Brazilian solar power solutions distributor, on **August 31, 2021**. The partnership's economic interest is **35%**, with cash consideration of **$104 million** and contingent consideration of **$116 million**. The acquisition resulted in **$445 million** of goodwill[36](index=36&type=chunk)[37](index=37&type=chunk) - Acquired **Everise** Holdings Pte Ltd. ("**Everise**"), a business process outsourcing company, on **January 8, 2021**. The partnership's economic interest is **36%**, with cash consideration of **$80 million** and contingent consideration of **$23 million**. The acquisition resulted in **$290 million** of goodwill[41](index=41&type=chunk)[42](index=42&type=chunk) [Note 8: Dispositions](index=18&type=section&id=NOTE%208.%20DISPOSITIONS) A net gain on dispositions of **$1.82 billion** was recognized for the nine months ended Sep 30, 2021, primarily from a **$1.76 billion** pre-tax gain on graphite electrode operations - A net gain on dispositions of **$1,823 million** was recognized for the nine months ended Sep 30, 2021, primarily from the partial disposition of the investment in its graphite electrode operations[72](index=72&type=chunk) - On **March 1, 2021**, the sale of additional shares in its graphite electrode operations decreased the partnership's voting interest to **37%**, resulting in deconsolidation and a pre-tax gain of **$1,764 million**[74](index=74&type=chunk) [Note 16: Borrowings](index=23&type=section&id=NOTE%2016.%20BORROWINGS) As of Sep 30, 2021, **$751 million** was drawn on corporate credit facilities, with **$1.32 billion** available, and non-recourse subsidiary borrowings totaled **$21.34 billion** Borrowings Summary (US$ Millions) | Borrowing Type | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Corporate borrowings** | $751 | $310 | | **Non-recourse subsidiary borrowings** | $21,338 | $23,166 | - The partnership has a **$500 million** revolving acquisition credit facility with Brookfield, which remained undrawn as of September 30, 2021. This facility was subsequently increased to **$1.0 billion**[94](index=94&type=chunk) [Note 17: Related Party Transactions](index=24&type=section&id=NOTE%2017.%20RELATED%20PARTY%20TRANSACTIONS) For the nine months ended Sep 30, 2021, Brookfield received a **$65 million** base management fee and a **$79 million** incentive distribution - The base management fee paid to Brookfield was **$24 million** for Q3 2021 and **$65 million** for the first nine months of 2021[101](index=101&type=chunk) - An incentive distribution of **$79 million** was paid to Brookfield for the nine months ended September 30, 2021[102](index=102&type=chunk) [Note 22: Revenues](index=28&type=section&id=NOTE%2022.%20REVENUES) Nine-month revenues reached **$33.11 billion**, with Business Services contributing **$21.61 billion** and the United Kingdom being the largest market at **$13.46 billion** Revenues by Segment - 9 Months Ended Sep 30, 2021 (US$ Millions) | Segment | Revenue | | :--- | :--- | | Business services | $21,612 | | Infrastructure services | $3,185 | | Industrials | $8,310 | | **Total** | **$33,107** | Revenues by Geography - 9 Months Ended Sep 30, 2021 (US$ Millions) | Geography | Revenue | | :--- | :--- | | United Kingdom | $13,460 | | United States of America | $4,661 | | Europe | $4,890 | | Australia | $3,380 | | Canada | $2,845 | | Other | $3,871 | | **Total** | **$33,107** | [Note 23: Segment Information](index=31&type=section&id=NOTE%2023.%20SEGMENT%20INFORMATION) Segment reporting was realigned, renaming Company FFO to **Adjusted FFO**, which totaled **$1.18 billion** attributable to unitholders for the nine months, with Industrials as the largest contributor - The partnership realigned segment reporting, changing the name of its key performance measure from Company FFO to **Adjusted Funds From Operations ("Adjusted FFO")**. The calculation method remains unchanged[146](index=146&type=chunk) Adjusted FFO by Segment - 9 Months Ended Sep 30, 2021 (US$ Millions) | Segment | Adjusted FFO | | :--- | :--- | | Business services | $272 | | Infrastructure services | $236 | | Industrials | $738 | | Corporate and other | ($69) | | **Total attributable to Unitholders** | **$1,177** | [Note 26: Subsequent Events](index=37&type=section&id=NOTE%2026.%20SUBSEQUENT%20EVENTS) Post-quarter, the partnership acquired **DexKo Global Inc.** for **$3.4 billion** and declared a quarterly distribution of **$0.0625** per unit - On **October 4, 2021**, the partnership completed the acquisition of **DexKo Global Inc.** for **$3.4 billion**, funding approximately **$395 million** for a **35%** ownership interest[170](index=170&type=chunk) - A quarterly distribution of **$0.0625** per unit was declared on **November 4, 2021**, payable on **December 31, 2021**[171](index=171&type=chunk) Management's Discussion and Analysis of Financial Condition and Results of Operations [Overview of Our Business](index=41&type=section&id=Overview%20of%20Our%20Business) Brookfield Business Partners operates high-quality businesses across four segments, with Business Services being the largest by assets (**$21.0 billion**) and nine-month revenues (**$21.6 billion**) - The partnership's operations are organized into four segments: - **Business services**: Includes residential mortgage insurance, healthcare, road fuels, construction, and financial services - **Infrastructure services**: Includes nuclear technology, offshore oil, and work access services - **Industrials**: Includes advanced energy storage, graphite electrodes, water/wastewater operations, and natural gas production - **Corporate and other**: Includes corporate cash and liquidity management[190](index=190&type=chunk) Assets and Revenues by Segment (as of Sep 30, 2021, US$ Millions) | Operating Segment | Assets | 9-Month Revenues | | :--- | :--- | :--- | | Business services | $21,025 | $21,612 | | Infrastructure services | $10,353 | $3,185 | | Industrials | $22,274 | $8,310 | | Corporate and other | $108 | $0 | | **Total** | **$53,760** | **$33,107** | [Developments in Our Business](index=46&type=section&id=Developments%20in%20Our%20Business) Since June 30, 2021, the partnership acquired **Aldo** and **DexKo**, and signed an agreement to acquire **Scientific Games' lottery business** for approximately **$5.8 billion** - Completed the acquisition of **Aldo**, a Brazilian solar power distributor, on **August 31, 2021**[224](index=224&type=chunk) - Completed the acquisition of **DexKo**, a manufacturer of engineered components, for **$3.4 billion** on **October 4, 2021**[225](index=225&type=chunk) - Signed an agreement to acquire **Scientific Games Lottery business** for approximately **$5.8 billion**, with an expected closing in **Q2 2022**[226](index=226&type=chunk) [Consolidated Results of Operations](index=48&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Results%20of%20Operations) Q3 2021 net income increased to **$300 million** from **$85 million**, while nine-month net income surged to **$2.04 billion** from **$200 million**, largely due to a **$1.82 billion** disposition gain and **20% revenue growth** - Nine-month net income increased to **$2,038 million** in 2021 from **$200 million** in 2020, primarily due to gains recognized on the partial disposals of the graphite electrode operations[236](index=236&type=chunk) - Nine-month revenues increased by **$5.5 billion** (**20%**) to **$33.1 billion** in 2021, mainly from higher volumes and prices in road fuels operations and contributions from advanced energy storage operations[238](index=238&type=chunk)[239](index=239&type=chunk) - A net gain on acquisitions/dispositions of **$1,823 million** was recorded in the first nine months of 2021, compared to **$179 million** in the same period of 2020[247](index=247&type=chunk) [Review of Consolidated Financial Position](index=52&type=section&id=Review%20of%20Consolidated%20Financial%20Position) Total assets were **$53.8 billion** as of Sep 30, 2021, marked by a **$1.1 billion** decrease in PP&E and a **$355 million** increase in Goodwill from acquisitions - Property, plant & equipment (PP&E) decreased by **$1.1 billion**, primarily due to the deconsolidation of the graphite electrode operations[264](index=264&type=chunk) - Goodwill increased by **$355 million**, driven by the acquisitions of the solar power solutions and technology services operations[268](index=268&type=chunk) - During the nine months ended September 30, 2021, the partnership repurchased and canceled **1,186,919 LP Units** under its normal course issuer bid[272](index=272&type=chunk)[111](index=111&type=chunk) [Segment Analysis](index=55&type=section&id=Segment%20Analysis) Q3 2021 **Adjusted EBITDA** increased to **$443 million** from **$381 million**, and **Adjusted FFO** rose to **$276 million** from **$208 million**, with nine-month **Adjusted FFO** more than doubling to **$1.18 billion** Adjusted EBITDA and Adjusted FFO (US$ Millions) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $443 | $381 | $1,211 | $961 | | **Adjusted FFO** | $276 | $208 | $1,177 | $575 | [Business Services](index=58&type=section&id=Business%20services) **Adjusted EBITDA** for Business Services increased to **$163 million** in Q3 2021 from **$96 million**, driven by strong residential mortgage insurer performance and improved construction operations Business Services Performance (US$ Millions) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $163 | $96 | $412 | $179 | | **Adjusted FFO** | $109 | $62 | $272 | $143 | [Infrastructure Services](index=59&type=section&id=Infrastructure%20services) Infrastructure Services' **Adjusted EBITDA** was stable at **$140 million** for Q3 2021, while **Adjusted FFO** increased to **$91 million** from **$78 million** due to lower interest expenses Infrastructure Services Performance (US$ Millions) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $140 | $142 | $401 | $446 | | **Adjusted FFO** | $91 | $78 | $236 | $269 | [Industrials](index=60&type=section&id=Industrials) Industrials' **Adjusted EBITDA** increased to **$171 million** in Q3 2021 from **$166 million**, driven by advanced energy storage, while nine-month **Adjusted FFO** surged to **$738 million** from **$205 million** due to disposition gains Industrials Performance (US$ Millions) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted EBITDA** | $171 | $166 | $488 | $409 | | **Adjusted FFO** | $101 | $86 | $738 | $205 | [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) The partnership maintains strong liquidity with **$27.6 billion** total borrowing capacity, **$22.1 billion** drawn, and a net debt-to-capitalization ratio of **64%** Net Debt-to-Capitalization | Metric (US$ Millions) | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Net debt** | $19,718 | $21,033 | | **Total equity** | $11,098 | $11,337 | | **Total capital and net debt** | $30,816 | $32,370 | | **Net debt-to-capitalization ratio** | 64% | 65% | - At September 30, 2021, the partnership had **$1,324 million** available on its bilateral credit facilities and an undrawn **$500 million** revolving acquisition credit facility with Brookfield[325](index=325&type=chunk)[326](index=326&type=chunk)

Brookfield Business Partners L.P. (NYSE:BBU) Q3 2021 Results Conference Call November 5, 2021 11:00 AM ET Company Participants Alan Fleming - SVP, IR Cyrus Madon - CEO Denis Turcotte - COO Jaspreet Dehl - CFO Conference Call Participants Geoff Kwan - RBC Capital Markets Devin Dodge - BMO Capital Markets Gary Ho - Desjardins Capital Jaeme Gloyn - National Bank Matthew Weekes - iA Capital Markets Operator Welcome to the Brookfield Business Partners Third Quarter 2021 Results Conference Call and Webcast. As a ...

Brookfield Business Partners L.P. (NYSE:BBU) Q2 2021 Earnings Conference Call August 6, 2021 11:00 AM ET Company Participants Alan Fleming – Senior Vice President of Investor Relations Cyrus Madon – Chief Executive Officer Denis Turcotte – Chief Operating Officer Jaspreet Dehl – Chief Financial Officer Conference Call Participants Geoff Kwan – RBC Capital Gary Ho – Desjardins Capital Markets Nik Priebe – CIBC Capital Markets Dimitry Khmelnitsky – Veritas Operator Welcome to the Brookfield Business Partners ...

Brookfield Business Partners L.P. (NYSE:BBU) Q1 2021 Earnings Conference Call May 5, 2021 11:00 AM ET Company Participants Alan Fleming - Vice President, Investor Relations Cyrus Madon - Chief Executive Officer Denis Turcotte - Chief Operating Officer Jaspreet Dehl - Chief Financial Officer Conference Call Participants Devin Dodge - BMO Geoff Kwan - RBC Capital Markets Gary Ho - Desjardins Andrew Kuske - Credit Suisse Nik Priebe - CIBC Capital Markets Jaeme Gloyn - National Bank Operator Thank you for stand ...

Financial Performance Highlights - Company EBITDA increased to $423 million in Q4 2020, up from $342 million in Q4 2019, driven by acquisitions [11] - Company FFO increased to $295 million in Q4 2020, compared to $243 million in Q4 2019, including gains from dispositions [11] - Net loss attributable to unitholders was $85 million, compared to net income of $105 million in 2019, impacted by impairments [12] Balance Sheet and Liquidity - Total assets increased to $54746 million as of December 31, 2020, from $51751 million at the end of 2019, due to acquisitions [12] - Corporate liquidity stood at $2517 million as of December 31, 2020, including $552 million in cash and financial assets and $1965 million in undrawn credit facilities [17] - Corporate borrowings were $610 million as of December 31, 2020, compared to $nil at the end of 2019 [32] Segment Performance - Business Services' Company EBITDA increased to $92 million in Q4 2020 from $51 million in Q4 2019, driven by acquisitions [15] - Infrastructure Services' Company EBITDA increased to $156 million in Q4 2020 from $106 million in Q4 2019, driven by Westinghouse and Altera [15] - Industrials' Company EBITDA decreased to $195 million in Q4 2020 from $215 million in Q4 2019, impacted by lower GrafTech contributions [15] Capital Management - 881245 units were repurchased under the Normal Course Issuer Bid (NCIB) during the quarter [17] - The volume weighted average price per unit was $3375, below the incentive distribution threshold of $4196 per unit, resulting in no incentive distribution [51]

Brookfield Business Partners L.P. (NYSE:BBU) Q4 2020 Earnings Conference Call February 5, 2021 11:00 AM ET Company Participants Alan Fleming - Vice President, Investor Relations Cyrus Madon - Chief Executive Officer Denis Turcotte - Chief Operating Officer Jaspreet Dehl - Chief Financial Officer Conference Call Participants Devin Dodge - BMO Capital Markets Geoff Kwan - RBC Capital Markets Andrew Kuske - Credit Suisse Gary Ho - Desjardins Jaeme Gloyn - National Bank Financial Operator Welcome to the Brookfi ...

Brookfield Business Partners L.P. (NYSE:BBU) Q3 2020 Earnings Conference Call November 3, 2020 11:00 AM ET Company Participants Alan Fleming - Vice President of Investor Relations Cyrus Madon - Chief Executive Officer Denis Turcotte - Chief Operating Officer Jaspreet Dehl - Chief Financial Officer Conference Call Participants Devin Dodge - BMO Capital Markets Gary Ho - Desjardins Capital Geoff Kwan - RBC Capital Nick Priebe - CIBC Capital Andrew Kuske - Crédit Suisse Rupert Merer - National Bank Operator We ...