Mr. Anuj Ranjan reports

BROOKFIELD BUSINESS PARTNERS REPORTS NET INCOME OF $1.4 BILLION IN THE QUARTER

Brookfield Business Partners LP has released financial results for the year ended Dec. 31, 2023.

"We had a successful 2023, achieving strong business performance and generating over $2-billion of proceeds from capital recycling initiatives which further enhances our liquidity position," said Anuj Ranjan, chief executive officer of Brookfield Business Partners. "As we look to the future, the quality of our operations is the best in our history and supports a strong setup for continued value creation."

Net income attributable to unitholders for the year ended Dec. 31, 2023, was $1,405-million ($6.49 per limited partnership unit) compared with net income of $98-million (48 cents per limited partnership unit) in the prior year. Current-year results include net gains primarily related to the sale of the company's nuclear technology services operation.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the year ended Dec. 31, 2023, was $2,491-million compared with $2,254-million for the year ended Dec. 31, 2022, reflecting increased contribution from the company's business services segment, improved performance of operations and contribution from recent acquisitions.

Operational update

The business services segment generated adjusted EBITDA of $900-million in 2023, compared with $641-million in 2022. Results benefited from improved performance of operations on a same-store basis, including increased contribution from Brookfield Business Partners' residential mortgage insurer. Current-year results include a full year of contribution from the company's dealer software and technology services operation, rental car services operation, and Australian residential mortgage lender which it acquired during 2022.

The industrials segment generated adjusted EBITDA of $855-million in 2023, compared with $879-million in 2022. Strong performance at the company's advanced energy storage operation was offset by reduced contribution from graphite electrode operations and its Western Canadian energy-related operations.

The infrastructure services segment generated adjusted EBITDA of $853-million in 2023, compared with $872-million in 2022. Increased contribution from Brookfield Business Partners' lottery services operation which it acquired in April, 2022, was offset by reduced contribution from its nuclear technology services operation which it sold in November, 2023.

Adjusted EFO (earnings from operations) for the year ended Dec. 31, 2023, reflected increased contribution from all three operating segments. Adjusted EFO in the current year included $2,006-million in after-tax net gains primarily related to the sale of Brookfield Business Partners' nuclear technology services operation in the infrastructure services segment and the sale of public securities in the industrials segment. Prior-year results included after-tax gains of $57-million primarily related to the partial sale of public securities in the industrials segment.

Strategic initiatives:

• Leadership transition: On Feb. 1, the board of directors of Brookfield Business Partners formally appointed Mr. Ranjan chief executive officer of Brookfield Business Partners. In addition, Cyrus Madon was appointed executive chairman, where he will continue to serve as an executive officer and maintain his role on the investment committee of Brookfield Business Partners. He will also join the board of directors as executive chairman. Jeffrey Blidner will step down as board chairman and remain a member of the board of directors.
• Capital recycling: During the quarter Brookfield Business Partners completed the sale of Westinghouse, its nuclear technology services operation, and the partial sale of its interest in Everise, its technology services operation. It also sold a portion of its investments in public securities, including common shares of GrafTech, reducing its current ownership interest in the business to approximately 3 per cent. Brookfield Business Partners' share of aggregate net proceeds from these sales during the quarter and since the start of the year was approximately $1.6-billion.
• Real estate services operation: In December the company agreed to sell its general partner interest and residential real estate brokerage portfolio to Bridgemarq, a publicly listed real estate services and brokerage business. In exchange it agreed to take back limited partnership units in the public entity which will increase its ownership interest to approximately 42 per cent. The transaction is expected to close in the second quarter of 2024, subject to shareholder approval.
• Unit repurchase program: For the year ended Dec. 31, 2023, the company repurchased and cancelled 331,875 units of Brookfield Business Partners. Brookfield Corp., the parent company of Brookfield Business Partners, purchased an additional 374,533 units. As an affiliate, Brookfield's unit purchases were completed under Brookfield Business Partners' normal course issuer bid (NCIB).

Liquidity

During the quarter, Brookfield Business Partners redeemed $750-million of preferred securities held by Brookfield and repaid $580-million of borrowings on its corporate credit facilities.

Brookfield Business Partners ended the year with approximately $2,055-million of liquidity at the corporate level, including $170-million of cash and liquid securities, $25-million of remaining commitment from Brookfield for preferred equity securities, and $1,860-million of availability on Brookfield Business Partners' corporate credit facilities.

Distribution

The board of directors has declared a quarterly distribution in the amount of 6.25 cents per unit, payable on March 28, 2024, to unitholders of record as at the close of business on Feb. 29, 2024. This dividend is identical in amount per share and has identical record and payment dates to the quarterly distribution declared by the board of directors of the general partner of Brookfield Business Partners on its units.

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.

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.

Conference call and 2023 earnings webcast details

Investors, analysts and other interested parties can access Brookfield Business Partners' 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 via webcast on Feb. 2, 2024, at 10 a.m. Eastern Time, or participants can preregister on-line. 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 Brookfield Business Partners' website.

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