Mr. Cyrus Madon reports

BROOKFIELD BUSINESS PARTNERS REPORTS THIRD QUARTER 2023 RESULTS

Brookfield Business Partners LP has released financial results for the quarter ended Sept. 30, 2023.

"We had a strong third quarter and are pleased with our results," said Cyrus Madon, chief executive officer of Brookfield Business Partners. "We generated record quarterly adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] and reached an agreement to sell an interest in Everise, our technology services operation, at a valuation of 3.5 times our original investment. Our focus is on progressing initiatives to support our growth, including the sale of Westinghouse, which we expect to close imminently."

Net loss attributable to unitholders for the three months ended Sept. 30, 2023, was $44-million (20-cent loss per limited partnership unit) compared with net loss of $41-million (18-cent loss per limited partnership unit) in the prior period.

Adjusted EBITDA for the three months ended Sept. 30, 2023, was $655-million, compared with $611-million in the prior period, reflecting increased contribution from the company's business services and infrastructure services segments.

Operational update

Brookfield Business Partners' business services segment generated adjusted EBITDA of $238-million for the three months ended Sept. 30, 2023, compared with $213-million for the same period in 2022. Results benefited from increased contribution from the company's residential mortgage insurer and the company's dealer software and technology services operation. Current-period results included contribution from the company's rental car services operation that it acquired in October, 2022.

Brookfield Business Partners' infrastructure services segment generated adjusted EBITDA of $228-million for the three months ended Sept. 30, 2023, compared with $205-million during the same period in 2022. Increased contribution from modular building leasing services and improved performance at work access services was partially offset by the impact of reduced ownership at the company's lottery services operation.

Brookfield Business Partners' industrials segment generated adjusted EBITDA of $218-million for the three months ended Sept. 30, 2023, compared with $228-million during the same period in 2022. Strong performance at the company's advanced energy storage operation was offset by reduced contribution from graphite electrode operations and the company's Western Canadian energy-related operations.

Adjusted EFO (earnings from operations) for the three months ended Sept. 30, 2023, reflected increased contribution from the company's industrials and infrastructure services segments, offset by the impact of higher current tax in the company's business services segment and higher interest expense. Adjusted EFO in the current period included $70-million of net gains primarily related to the sale of the majority of the company's automotive aftermarket parts remanufacturing operation and public securities.

Strategic initiatives

Technology services operation

In October, 2023, Brookfield Business Partners reached an agreement to sell a portion of its interest in its technology services operation at a valuation of approximately 3.5 times what it paid for the business just over two years ago. Brookfield Business Partners' share of proceeds from the sale is expected to be approximately $120-million, representing an approximate two times realized multiple on the company's investment and Brookfield Business Partners will continue to hold a 17-per-cent ownership interest in the business. The transaction is expected to close in the first quarter of 2024.

Unit repurchase program

For the three months ended Sept. 30, 2023, the company repurchased 54,264 of Brookfield Business Partners units under its normal course issuer bid (NCIB).

Liquidity

Brookfield Business Partners ended the quarter with approximately $1.4-billion of liquidity at the corporate level, including $133-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 Dec. 29, 2023, to unitholders of record as at the close of business on Nov. 30, 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 & Filings.

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 Corp., a corporation, or Brookfield Business Partners, a limited partnership.

Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management's private equity group. Brookfield Asset Management is a leading global alternative asset manager with over $850-billion of assets under management.

Please note that Brookfield Business Partners' previous audited annual and unaudited quarterly reports have been filed on SEDAR and EDGAR and are available on its website under Reports & Filings. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

Conference call and quarterly earnings webcast details

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

The results call can be accessed by webcast on Nov. 3, 2023, at 9:30 a.m. Eastern Time, or participants can preregister on-line. Upon registering, participants will be emailed a dial-in number, direct passcode and unique PIN (personal identification number). A replay of the webcast will be available on Brookfield Business Partners' website.

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