Brookfield has become a signatory to the Net Zero Asset Managers initiative ("NZAM"), to further our commitment to support the transition to a net zero carbon economy. NZAM is a group of international asset managers committed to supporting the goal of net zero GHG emissions by 2050 or sooner. To fulfill this commitment, our asset management business is commencing to take account of emissions, prioritize emissions reductions across Brookfield's businesses, and work towards publishing disclosures in line with ...

Financial Performance - Net income for the three months ended December 31, 2022, was $44 million, a significant decrease from $3,461 million in the same period of 2021[2] - Funds from Operations (FFO) for the year ended December 31, 2022, was $6,294 million, compared to $7,558 million in 2021, reflecting a decline of approximately 16.7%[11] - Revenues for the three months ended December 31, 2022, increased to $24,213 million, up from $21,787 million in the same period of 2021, representing a growth of about 11.1%[9] - Operating Funds from Operations for the three months ended December 31, 2022, was $1,135 million, down from $1,237 million in the same period of 2021[11] - Net (loss) income attributable to Brookfield shareholders for the three months ended December 31, 2022, was $(316) million, compared to $1,118 million in the same period of 2021[2] - The company reported equity accounted income of $273 million for the three months ended December 31, 2022, down from $633 million in the same period of 2021[9] - Distributable earnings for 2022 were $5.2 billion, with net income also at $5.2 billion, reflecting strong financial performance driven by asset management growth and insurance solutions[29] - Operating funds from operations (Operating FFO) reached $4.6 billion for the year, representing a 23% increase compared to the prior year[32] - Total DE for the quarter was $1.5 billion and $5.2 billion for the year[49] Assets and Liabilities - Total liabilities and equity as of December 31, 2022, amounted to $441,284 million, an increase from $391,003 million in 2021[8] - Total assets increased to $441.3 billion in 2022, up from $391.0 billion in 2021[41] - Approximately $37 billion of cash, financial assets, and undrawn credit lines are available, along with $87 billion of uncalled fund commitments[51] Growth and Investments - The company is well positioned to pursue significant opportunities for growth, supported by a conservatively capitalized balance sheet[4] - The asset management business generated fee-related earnings of $2.1 billion for the year, with inflows of $93 billion, contributing to a 26% increase in fee-related earnings excluding performance fees[36] - The company ended the year with approximately $125 billion of deployable capital for new investments[40] - The company successfully completed a distribution to shareholders and listed a 25% interest in its asset management business, adding approximately $40 billion of liquid assets[29] - The company acquired high-quality businesses and assets, including a $2.5 billion acquisition in audience measurement and a $3.1 billion portfolio of luxury hotels[39] - The acquisition of American National in May contributed to the growth in DE before realizations[47] - The company invested and/or committed $81 billion of capital to new investments during the year[58] Distributions and Shareholder Returns - Preferred share dividends for the year ended December 31, 2022, totaled $150 million, slightly up from $148 million in 2021[2] - Distributions from operating businesses totaled $2.6 billion for the year, marking a 20% increase compared to the previous year[38] - The company returned approximately $15 billion of capital to shareholders, including $686 million in open market share repurchases[52] Debt and Financing - A C$1 billion issuance of 10-year bonds at 5.43% was completed in December, along with a credit rating upgrade to A3 from Moody's[59] - The company maintains a conservatively capitalized balance sheet with no maturities until 2024[52] Other Financial Metrics - Direct costs for the three months ended December 31, 2022, were $18,218 million, compared to $16,631 million in 2021, indicating an increase of approximately 9.5%[9] - Realized carried interest for the year was $555 million, up from $715 million in the previous year[28] - Distributable Earnings ("DE") before realizations were $1.1 billion for the quarter and $4.3 billion for the year, representing a 24% increase compared to the prior year[47] - The asset management franchise delivered growth of 26% compared to the prior year, while distributions from operating businesses grew by 20%[47] - The company generated disposition gains of $360 million from the sale of principal investments during the year[50]

Brookfield 2021 ANNUAL R E P O R T Brookfield Asset Management Inc. FIVE-YEAR FINANCIAL RECORD | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------|-------|----------|-------|------------|-------|----------|-------|-------|-------| | AS AT AND FOR THE YEARS ENDED DEC. 31 | | 2021 | | 2020 | | 2019 | 2018 | | 2017 | | PER SHARE 1 | | | | | | | | | | | Net income (loss) | $ | 2.39 $ | | (0.12) $ | | 1.73 $ | 2.27 | $ | 0.89 | | Funds from opera ...