Mr. Cyrus Madon reports

BROOKFIELD BUSINESS PARTNERS REPORTS FIRST QUARTER 2023 RESULTS

Brookfield Business Partners LP has released its financial results for the quarter ended March 31, 2023.

"We generated solid financial results to start the year supported by the quality of our operations and continued progress on our value creation initiatives," said Cyrus Madon, chief executive officer of Brookfield Business Partners. "Our focus is on continuing to surface value within our operations and advancing monetization activities, including the sale of Westinghouse, which is on track to close later this year."

Net income attributable to unitholders for the three months ended March 31, 2023, was $74-million (34 cents per limited partnership unit), compared with net income of $16-million (10 cents per limited partnership unit) in the prior period.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended March 31, 2023, was $622-million, compared with $486-million in the prior period, reflecting increased contribution from the company's infrastructure services and business services segments.

Operational update

An attached table presents adjusted EBITDA by segment.

The company's infrastructure services segment generated adjusted EBITDA of $225-million for the three months ended March 31, 2023, compared with $208-million during the same period in 2022. Results benefited from the contribution of lottery services which it acquired in April, 2022, partially offset by reduced contribution from offshore oil services.

The company's industrials segment generated adjusted EBITDA of $219-million for the three months ended March 31, 2023, compared with $217-million during the same period in 2022. Increased performance at its advanced energy storage operation driven by higher overall battery volumes was offset by reduced contribution from graphite electrode operations during the quarter.

The company's business services segment generated adjusted EBITDA of $212-million for the three months ended March 31, 2023, compared with $94-million for the same period in 2022. Results benefited from the contribution of recent acquisitions and improved performance at its Indian non-bank financial services operation. Current period results included contribution from dealer software and technology services and its Australian residential mortgage lender which it acquired in July, 2022, and May, 2022, respectively.

An attached table presents adjusted EFO by segment.

Adjusted EFO for the three months ended March 31, 2023, reflected increased contributions from the company's business services and industrials operating segments. Adjusted EFO in the current period included approximately $130-million of net gains primarily related to the sale of public securities and its residential property management operation.

Strategic initiatives:

• Capital Recycling: The company recently received approval from the Committee on Foreign Investment in the United States (CFIUS) for the sale of Westinghouse and is progressing other regulatory approvals required to close the transaction which is expected in the third quarter of 2023. During the quarter, it sold public securities and its residential property management operation. Its share of total net proceeds from these sales was approximately $195-million.
• Refinancings: Subsequent to quarter-end, Clarios, the company's advanced energy storage operation, received commitments for and priced a $2.75-billion term loan at SOFR (secured overnight financing rate) plus 3.75 per cent maturing in 2030 and $750-million in senior secured notes with a coupon of 6.75 per cent maturing in 2028. Total proceeds raised of $3.5-billion were upsized from the initial offering of $1.5-billion. Proceeds from the offering will be used to repay the existing term loan facility maturing in 2026 which as a result extends maturities through 2030 with virtually no increase to the overall cost of borrowings.
• Unit repurchase program: For the quarter ended March 31, 2023, Brookfield Corp., the parent company of Brookfield Business Partners, purchased 374,533 of Brookfield Business Partners LP units. As an affiliate, Brookfield's unit purchases were completed under the company's normal course issuer bid (NCIB).

Liquidity

The company ended the quarter with approximately $1.6-billion of liquidity at the corporate level, including $282-million of cash and liquid securities and $1.3-billion of availability on its term credit facilities.

Distribution

The board of directors has declared a quarterly distribution in the amount of 6.25 cents per unit, payable on June 30, 2023, to unitholders of record as at the close of business on May 31, 2023.

Additional information

The board has reviewed and approved this news release, including the summarized unaudited consolidated financial statements contained herein.

Brookfield Business Partners' letter to unitholders and the supplemental information are available on its website under reports and filings.

About Brookfield Business Partners LP

Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in the company either through Brookfield Business, a corporation, or Brookfield Business Partners, a limited partnership.

Conference call and quarterly earnings webcast details

Investors, analysts and other interested parties can access Brookfield Business Partners' first quarter 2023 results, as well as the letter to unitholders and supplemental information, on its website under reports and filings.

The results call can be accessed through webcast on May 5, 2023, at 10:30 a.m. ET. Upon registering, participants will be e-mailed a dial-in number, direct passcode and unique PIN. A replay of the webcast will be available on-line.

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