Corporate Profile

BROOKFIELD ASSET MANAGEMENT | Q4 2016

2

Cautionary Note Concerning Forward-Looking Statements

This Corporate Profile contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Asset Management and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Asset Management to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchanges rate; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; changes in tax laws, catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Brookfield Asset Management undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Notes, assumptions, and definitions can be found in the appendix.

3

Overview

115-year history as a global investor, operator and leading asset manager of high quality real assets

Our Business Page 4

Additional Information Asset Management Fee Streams Page 14

Asset Management Growth Potential Page 18

Invested Capital Page 20

Contact Information Page 23

4

Brookfield by the Numbers

Listed Partnerships 50%

Private Funds 41%

Public Securities 7%

Transaction and advisory 2%

Property 62%

Renewable Power 13%

Infrastructure 13%

Private Equity 8%

Other 4%

Assets Under Management: ~$250 Billion • Focused on high quality real assets • Diversified by asset class and region

Invested Capital: $31 Billion3

• Generates $1.3 billion of annualized distributable cash flow

• ~85% invested in listed entities

Fee Bearing Capital: $110 Billion • Generates $2 billion of annualized

fees and target carried interest • 700 investment professionals • Diversified by product mix and strategy

Property 35%

Infrastructure 32%

Renewable Power 13%

Private Equity 13%

Public Securities 7%

BPY 54%

BEP 12%

BIP 6%

BBU 6%

Other Listed 7%

Unlisted 15%

BPY 44%

BEP 26%

BIP 15%

BBU 2%

Other Listed 13%

Invested Capital Distributable Cash Flow

1

Fee Revenue Diversification2

1) Other includes Public Securities AUM of $11 billion 2) Fee revenue based on annualized fees; excludes target carried interest 3) Prior to corporate leverage; using IFRS values as at December 31, 2016. See page 24 for detailed definition of invested capital

5

Interest expense (241)

Corporate costs (122)

(363)

FOR THE PERIOD ENDED DEC. 31, 2016 ($ MILLIONS,

EXCEPT PER SHARE AMOUNTS) FFO3

Fee related earnings $ 712

Realized carried interest 149

861

Listed investments 1,782

Unlisted assets 34

Disposition gains 923

2,739

Total $ 3,600

Total $ 3,237

Per share $ 3.18

Summarized Financial Performance

Our asset management business, alongside our invested capital, continues to generate meaningful returns for our shareholders

1) Fee bearing capital 2) IFRS values 3) A detailed definition of funds from operations (“FFO”) can be found on page 24 4) Loan to value

Capitalization

Invested Capital

Capital Asset Manager

Recurring long-term fees received from managing our funds and

carried interests

Capital deployed in managed funds and on a direct basis

which generate cash distributions

Conservative long-term capitalization represents

14% LTV4 on invested capital

$110 Billion1

$31 Billion2

$9 Billion2

6

Our Competitive Advantages

Our business strategy is simple and leverages our competitive advantages: large-scale capital; global reach; operational expertise

As an Asset Investor

• Large-scale capital allows us to pursue large transactions where capital is scarce

• Global presence and global mandates provide breadth of opportunities

• Operating expertise facilitates underwriting and enhances returns

• Deep history of global real asset investing

• Value-oriented culture focused on long- term investment returns

• Ability to invest in and operate multiple asset classes

• Large scale funds enable investors to deploy large scale capital

• Flexibility to invest across multiple products

• Operating capability is a key differentiator

• Alignment of interests

• Excellent performance record

• Real asset expertise aligns with growing capital allocations

• Transparent operating model and public company governance

As an Asset Manager

7

Asset Management – Diversified Multi-Vehicle Strategy

Our clients have tremendous flexibility to invest with us through Listed Partnerships, Private Funds and Public Securities across our real asset operating businesses

$11 billion

Public Securities

$50 billion

Private Funds

• Allows institutional investors to invest large amounts of capital

• Targeted and predetermined investment strategies

• Long-term investment horizon reducing reinvestment risk

Brookfield Asset Management

$49 billion

Listed Partnerships

• Exchange-traded and highly liquid

• Flexible capital allocation across broad asset class

• Consistent distribution yield

• Perpetual investment horizon

Fee Bearing Capital – $110 billion

• Diversified security portfolios leveraging our core expertise

• Flexible and scalable investment mandates

• Delegate tactical investment decisions

8

2012 2013 2014 2015 2016 Ann.

Asset Management – Financial Performance

Annualized fee revenues are now $1.2 billion; we also generate $860 million of target carried interest annually, increasing our overall fee run rate to over $2.0 billion

AS AT AND FOR THE PERIODS ENDED DEC. 31, 2016 ($ MILLIONS) 2016 2015 Change

Fee Bearing Capital $ 109,576 $ 94,262 $ 15,314

Base Fees

Listed Partnerships $ 418 $ 360 $ 58

Private Funds 495 309 186

Public Securities 92 111 (19)

1,005 780 225

Incentive Distributions 104 72 32

Other 33 20 13

Fee Revenues 1,142 872 270

Direct Costs (430) (376) (54)

Fee Related Earnings $ 712 $ 496 $ 216

Fee Revenues (Full Year)1

Transaction & Advisory Base Fees

IDRs

$437

$617

$763 $872

$1,142 $1,171

Performance Fees

1) Excludes carried interest 2) Annualized

DEC. 31, 2016 ($ MILLIONS)

2

44%

9

0-3 Years (5%)

4-7 Years (65%)

8+ Years (30%)2012 2013 2014 2015 2016

$13

$17 $18

$25

$40

$5

$9 $7

$9

$20

Earning Carry (43%)

Uninvested (50%)

Early Stage (7%)

Carry Eligible Capital ($40 Billion)1

AS AT DEC. 31, 2016

1) Estimate based on maturity date of funds currently generating deferred carried interest

Asset Management – Financial Performance

Carried interest represents our share of fund profits in our private funds. Carry eligible capital increased 60% over the last twelve months to $40 billion, positioning us well to continue to generate carry, with substantial upside

Invested Capital Uninvested Capital

Carry Eligible Capital AS AT DEC. 31 ($ BILLIONS)

Unrealized Carried Interest ($898 Million) – Realization Timeline AS AT DEC. 31, 2016

60%

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Invested Capital

~85% of our invested capital is held through listed securities, creating strong levels of financial flexibility and increased transparency1

• BPY, BEP and BIP are diversified entities with a portfolio of high quality,

core-plus return asset portfolios with stable cash flows that support stable distributions

‒ The high quality nature of their asset base has a proven ability to withstand economic downturns, and they are financed on a long-term investment grade basis

• BBU is our flagship listed issuer for owning our business and industrial operations, focused on capital reinvestment for long-term appreciation

• The operating performance of the four flagship listed entities is economically and structurally independent from one another

• They each participate in our opportunistic or value-add private funds, providing enhanced returns to the core-plus portfolio and alignment of interests

• Listed investments distribute $1.3 billion in annualized cash flow2

BPY

BEP

BIP

Other Listed

Unlisted

Listed Partnerships

1) Prior to corporate leverage; using IFRS values as at December 31, 2016. See page 24 for detailed definition of invested capital 2) Annualized distributed cash flow based on ownership and most recent distribution policies as at December 31, 2016

BBU

Invested Capital: $31 billion1

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Capitalization and Liquidity

We are well positioned with a strong balance sheet and significant access to capital to maintain our growth momentum

• $9 billion of core liquidity to fund growth ($3 billion at BAM itself)

• $19 billion of committed capital from institutional partners

• ~$26 billion of balance sheet capital held in listed securities

Strong and Flexible Capitalization

• ~$75 billion of permanent equity capitalization; debt to capitalization: corporate (14%), proportionate (47%)

• Debt capital primarily in the form of investment-grade, long-term limited recourse financing secured at the asset level

• Minimal cross collateralization and parental guarantees provide stability and risk mitigation

Access to Capital

• Ability to raise third-party capital through publicly listed and private funds

• Investment grade ratings: S&P: A-; DBRS: A Low; Moody’s: Baa2

($ MILLIONS) 2016

Cash and financial assets $ 2,592

Undrawn committed credit facilities 6,375

Core Liquidity 8,967

Uncalled private fund commitments 19,904

Total Liquidity $ 28,871

Significant Liquidity

Maturity Average

Term

($ MILLIONS) Total 2017 2018 2019 2020 2020+ (Years)

Corporate borrowings

Term debt $ 4,500 $ 425 – $ 447 – $ 3,628 8

Revolving facilities – – – – – – 4

Corporate borrowings 4,500 425 – 447 – 3,628

Preferred shares 3,954 – – – – n//a perp.

$ 8,454 $ 425 – $ 447 – $ 3,628

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Why Invest in Brookfield Now?

• Strong fundraising and excellent track record

• High-growth fee streams provide stable cash flows and upside potential through performance fees

• Significant liquidity to fund future growth

• Flexibility to allocate capital to asset classes and markets that offer the most attractive risk-adjusted returns

• Diversified product offerings through multi-vehicle strategy

• Strong alignment of interests with shareholders and investors

• ~17% compound return over the past 20 years

Large Scale Capital

Global Presence

Operations Focus

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Additional Information

14

Performance NYSE / TSX

Total Return5 Distributions

5 Year Annualized (Per Unit)

Target Growth

Brookfield Infrastructure Partners BIP / BIP.UN 18% $ 1.74 5% – 9%

Brookfield Renewable Partners BEP / BEP.UN 8% 1.87 5% – 9%

Brookfield Property Partners BPY / BPY.UN 4% 1.18 5% – 8%

Brookfield Business Partners BBU / BBU.UN n/m 0.25 –6

1) Annual base fee to Brookfield Asset Management 2) Based on capitalization of partnership (market capitalization plus recourse debt, net of cash) 3) On increases in capitalization; initial capitalization for BPY and BEP is $11.5 billion and $8.1 billion, respectively 4) Return hurdle based on quarterly growth of market value of units, subject to a high watermark initially set at $25 per unit 5) As at Dec. 31, 2016; Source: Bloomberg; includes reinvestment of dividends. Brookfield Property Partners listed on NYSE April 2013; annualized return since inception 6) Brookfield Business Partners’ level of distribution is not intended to grow as the partnership intends to reinvest its capital. Returns will be based on capital appreciation

Base Management Fees Incentive Distribution Rights

Fee Structure Fixed

Base Fees Equity Enhancement

Fee (bps)2,3 Annual Incentive

Distributions Return Hurdles

(1st & 2nd)

Brookfield Infrastructure Partners – 1252 15% / 25% $0.81 / $0.88

Brookfield Renewable Partners $21M1 1253 15% / 25% $1.50 / $1.69

Brookfield Property Partners $50M1 1253 15% / 25% $1.10 / $1.20

Brookfield Business Partners – 1252 20% $25/unit4

Asset Management – Listed Partnerships

Listed Partnerships are permanent capital, high growth entities; we earn contractual base management and performance fees for managing these partnerships

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Performance1 Committed Capital2

($ BILLIONS) Vintages Gross Net

Core Plus & Value Add

Property $ 7 2004 – 2016 13% 12%

Infrastructure 27 2006 – 2016 15% 13%

Timberlands 3 2005 – 2012 6% 6%

Lending & Finance 8 2004 – 2016 13% 10%

Opportunistic

Property 21 2006 – 2015 22% 19%

Private Equity 6 2001 – 2015 23% 16%

1) As at December 31, 2016. Past performance is not indicative of future performance; for more information refer to page 16 2) Committed capital represents original committed/pledged capital of both Brookfield and third parties, including current capital available for commitments, capital raised

from funds in market and capital that may no longer be available given the mandate of each product 3) “Gross IRR” reflects IRRs before fund expenses, management fees, and carried interest (if any), which would reduce an investor’s return. “Net IRR” is calculated on a

fund level and not for any particular investor, and takes into account any such expenses, fees and carried interest (including any fees allocated to, or paid by, Brookfield and its affiliates as a limited partner based on applicable rates)

Typical Fee Structure Base Fees

(bps) Carried Interest

Target Return

Return Hurdles

Core Plus and Value Add 100 – 150 ∼18% 10% – 15% ∼9%

Opportunistic and Private Equity 150 – 190 ∼20% 18% – 25% ∼11%

Asset Management – Private Funds

Private funds generate long-term contractual base fees and have the opportunity to earn carried interest upon exceeding pre-determined return hurdles

IRRs3

16

Asset Management – Private Funds1

AS AT DEC. 31, 2016 ($ MILLIONS) Committed

Capital Brookfield

Particpation2 Year

Formed

Brookfield Property Funds

Opportunistic

Real Estate Opportunity I $240 52% 2006

Real Estate Opportunity II $260 29% 2007

Real Estate Turnaround $5,570 18% 2009

Strategic Real Estate Partners I * $4,350 31% 2012

Strategic Real Estate Partners II * $9,000 26% 2015

Brazil Retail Property $990 35% 2006

India Real Estate Opportunity Partners $282 – 2014

Thayer VI $312 48% 2014

Core Plus

Canadian Office C$1,045 21% 2005

U.S. Office $2,220 83% 2006

DTLA $1,100 45% 2013

Open-ended Core Real Estate3 $1,100 45% 2013

Value Add / Finance

U.S. Multifamily Value Add I $325 13% 2011

U.S. Multifamily Value Add II $805 37% 2014

Real Estate Finance I $600 33% 2004

Real Estate Finance II $730 27% 2007

Real Estate Finance III $420 12% 2011

Real Estate Finance IV $1,375 18% 2014

Peninsula Brookfield India Real Estate $95 – 2013

AS AT DEC. 31, 2016 ($ MILLIONS) Committed

Capital Brookfield

Participation2 Year

Formed

Brookfield Infrastructure Funds

Value Add

Global Infrastructure I * $2,660 25% 2009

Global Infrastructure II * $7,000 40% 2013

Global Infrastructure III * $14,000 29% 2016

Colombia Infrastructure $360 28% 2009

Private Utility $1,370 28% 2006

Sustainable Resources

West Coast Timber $530 – 2005

Timberlands Fund V $1,002 25% 2012

Brazil Timber I $280 18% 2008

Brazil Timber II $270 19% 2012

Brazil Agriculture I $330 31% 2009

Brazil Agriculture II $500 22% 2015

Brookfield Private Equity Funds

Opportunistic / Lending

Capital Partners II * C$1,000 40% 2006

Capital Partners III * $1,000 25% 2010

Capital Partners IV * $4,000 25% 2015

* Flagship funds 1) Includes active investment vehicles managed by Brookfield, including non-securities and certain investment vehicles that do not qualify as private funds for regulatory

purposes. Excludes funds currently in the market and fully divested funds 2) Brookfield participation includes commitments from Brookfield Asset Management, Brookfield Property Partners, Brookfield Renewable Partners, Brookfield Infrastructure

Partners and Brookfield Business Partners 3) Perpetual fund

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Performance1,2,3 Net Portfolio Returns

Long-only equity strategies Global real estate 15.6%

Global infrastructure 15.3%

Long/short strategies Global real estate 12.9%

Global infrastructure 8.5%

1) As at December 31, 2016; Net portfolio returns represent annualized returns since inception of each respective strategy; Inception dates are as follows: Global real estate long-only – December 31, 2008; Global infrastructure long-only – December 31, 2008; Global real estate long/short – July 31, 2002; Global infrastructure long/short – May 31, 2008

2) Net of management fees 3) Past performance is not indicative of future performance

Public Securities

The Public Securities Group specializes in listed real asset investment opportunities globally, in both equity and debt

• Actively managed strategies offered through separately managed accounts, mutual funds, UCITS funds, closed-end funds and private hedge funds

• Significant investor base managed on behalf of institutional and retail investors

Infrastructure Equities

Infrastructure

Real Estate

Fixed Income

~$10.6 Billion FEE BEARING CAPITAL

18

Asset Management – Fee Bearing Capital Growth

We continue to increase fee bearing capital through our multi-product platform and are well positioned for continued growth; we currently have four funds in the market seeking to raise ~$5 billion of client capital

As at December 31, 2016 Notes/Assumptions on fee bearing capital growth: 1) Listed partnerships’ midpoint of target distribution growth: BPY – 6.5%; BEP – 7.0%; BIP – 7.0% and $10 billion of preferred units or debt issuance over the next five years.

Assumes no change in units outstanding 2) Private funds: raise two additional series of flagship funds ($40 billion) and $10 billion of new and/or niche products over the next five years 3) Public securities grows at ~10% per annum

$191

Actual Interpolated Potential1

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

($ Billions)

• We target 12% growth in fee bearing capital over the long term:

‒ Experiencing accelerated growth in private fund capital raises

‒ Listed partnership capital expands with distribution increases, capital issuances and M&A activity

• ~90% of fee bearing capital is perpetual from listed partnerships or long life private funds (10 – 12 years)

$110

Q3 2016

2021

+12% CAGR

19

Asset Management – Fee Related Earnings Growth

Fee related earnings have significant leverage to growth in fee bearing capital; increasing at a much faster rate than fee bearing capital

$1,455

Q4 LTM Actual

Interpolated Potential1

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$712

Q4 2016 LTM Actual

• New capital earns higher base-management fees:

Greater emphasis on higher return value add and opportunistic strategies

Increases in partnership capital yields 125 bps compared to lower flat fee on initial capitalization

Public Securities Group moving to higher fee equity strategies

• Incentive distributions increase at a ~31% CAGR over the next five years

2021

As at December 31, 2016 Notes/Assumptions on fee bearing capital growth: 1) Listed partnerships midpoint of target distribution growth: BPY – 6.5%; BEP – 7.0%; BIP – 7.0% and $10 billion of preferred units or debt issuance over the next five years.

Assumes no change in units outstanding 2) Private funds: raise two additional series of flagship funds ($40 billion) and $10 billion of new and/or niche products over the next five years 3) Public securities grows at ~10% per annum

($ Millions)

+15% CAGR

20

Invested Capital – Simple and Transparent Operating Model

Brookfield Asset Management (BAM)

62%2

Brookfield Property Partners

(BPY)

Brookfield Investment

Management (Public Securities Group)

61%

Brookfield Renewable Partners

(BEP)

30%

Brookfield Infrastructure

Partners (BIP)

1) Includes residential development operations, directly held real assets, and financial assets 2) Economic ownership interest 3) Portfolios of fixed income and equity securities managed on behalf of clients

75%

Brookfield Business Partners

(BBU)

Directly Held Investments1

Public Securities

Funds3

Brookfield Private Equity

Funds

Brookfield Property Funds

Funds Renewable Power Infrastructure

Core Office Core Retail

Opportunistic

Utilities Transport

Energy Sustainable Resources

Communications

Private Equity Industrial and Energy

Business Services

Hydroelectric Wind

Corporate Credit Infrastructure Securities Real Estate Securities

Securitized Credit

100%

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Invested Capital – Listed Partnerships

~85% of our invested capital is invested in our publicly traded listed partnerships, which target increasing annual distributions and long-term total returns of 12%–15%

Brookfield Property Partners (NYSE/TSX: BPY, BPY.UN)

• Invest in high quality real estate assets in the world’s most dynamic markets • Core office and retail is 92% and 96% leased, respectively • ~85% core office and retail assets target 10%–15% total returns, and ~15% opportunistic

assets target 20% total returns; current distribution yield of ~5%

Brookfield Infrastructure Partners (NYSE/TSX: BIP, BIP.UN)

• A premier portfolio of high quality, long life infrastructure assets across utilities, transport, energy and communications infrastructure in North and South America, Australia, and Europe

• Target 12% – 15% total returns; with a 5% current distribution yield • High quality cash flows; ~90% of cash flows regulated or contracted, ~70% indexed to

inflation and ~60% with no volume risk

Brookfield Renewable Partners (NYSE/TSX: BEP, BEP.UN)

• One of the world’s largest publicly traded, pure-play renewable power platforms • Predominantly hydroelectric portfolio, with ~80% of generation from hydro, complemented

by wind facilities and other renewable asset classes across North and South America, and Europe; ~90% of 2017 generation is contracted

• Target long-term total returns of 12%–15%, ~6% current distribution yield

Brookfield Business Partners (NYSE/TSX: BBU, BBU.UN)

• A business services and industrials company focused on long-term capital appreciation • Target long-term total returns of ~15% • Acquire businesses on a value basis, with a focus of out-of-favour sectors; enhance value

of operations through organic growth; realize value and recycle capital opportunistically

22

Invested Capital – Holdings

Our $31 billion of invested capital provides high levels of financial flexibility and substantial debt coverage

1) Quoted value based on December 31, 2016 public pricing 2) Excludes realized disposition gains 3) Annualized distributed cash flow is based on current distribution policies 4) Includes $658 million of cash and cash equivalents and $549 million of financial assets, net of deposits 5) Estimated 8% annualized total return on weighted average balance

Invested Capital FFO2 Distributed Cash Flow

(Annualized)3 Invested Capital - Breakdown No. of Units Quoted1 IFRS Three Months LTM Listed Investments

Brookfield Property Partneres

488 $ 10,727 $ 15,371 $ 179 $ 635 $ 576 BPY Preferred Shares n/a 1,265 1,265 19 76 76

11,992 16,636 198 711 652 Brookfield Renewable Partners 183 5,448 3,793 31 249 343 Brookfield Infrastructure Partners 110 3,690 1,934 66 254 192 Brookfield Business Partners 81 1,946 1,865 43 177 20 Financial assets4 Various 1,207 1,207 82 151 97 Other Investments Norbord 35 884 276 43 133 11 Acadian Timber 8 100 79 2 7 6 Other Listed Various 516 516 47 100 —

$ 25,783 26,306 512 1,782 $ 1,321 Unlisted Investments

Residential development 2,679 75 63 Energy marketing 1,033 (5) (69) Other 980 2 40

4,692 72 34

$ 30,998 $ 584 $ 1,816

5

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Investor Relations Contacts

Contact Title E-Mail Address Phone Number

Brian Lawson Chief Financial Office brian.lawson@brookfield.com (416) 363-9491

Dennis Blasutti Vice President, Finance dennis.blasutti@brookfield.com (416) 369-5741

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Appendix – Notes, Assumptions, and Definitions

Fee Bearing Capital represents the capital committed, pledged or invested in our listed partnerships, private funds, and public securities that we manage, which entitle us to earn fee revenues and/or carried interest. Fee bearing capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts. Fee Revenues include base management fees, incentive distributions, performance fees and transaction and advisory fees presented within our asset management segment. Fee revenues exclude carried interest. Fee Related Earnings (“FRE”) are comprised of fee revenues less direct costs (other than costs related to carried interests). FRE gross margin is equal to FRE as a percentage of Fee Revenues. Base Management Fees are determined by contractual arrangements, are typically equal to a percentage of fee bearing capital, are accrued quarterly, include base fees earned on fee bearing capital from both clients and ourselves and are typically earned on both called and uncalled amounts. Incentive Distributions (“IDRs”) are determined by contractual arrangements and are paid to us by our three primary listed partnerships and represent a portion of distributions paid by a listed partnership above a pre-determined threshold. Performance Fees are paid to us when we exceed pre-determined investment returns on certain portfolios managed in our public securities activities. Performance fees are typically determined on an annual basis and are not subject to “clawback” in future years. Carried Interest is a contractual arrangement whereby we receive a fixed percentage of investment gains generated within a private fund provided that the investors receive a pre-determined minimum return. Carried interest is typically paid towards the end of the life of a fund after the capital has been returned to investors and may be subject to “clawback” until all investments have been monetized and minimum investment returns are sufficiently assured. We defer recognition of carried interest in our financial statements until they are no longer subject to adjustment based on future events. Unlike fees and incentive distributions, we only include carried interest earned in respect of third-party capital when determining our segment results.

Annualized Fee Base and Target Carry is a non-IFRS measure that consists of annualized fees plus target carried interest.

‒ Annualized fees include annualized base management fees which are determined by the contractual fee rate multiplied by the current level of fee bearing capital, annualized incentive distributions based on our listed partnerships current annual distribution policies, annualized transaction and advisory fees which are equal to a simple average of the last two years’ revenue, annualized performance fees earned from public securities which is equal to a simple average of the last two years’ revenues, and target carried interest.

‒ Target carried interest is a mechanical calculation that is intended to represent the annualized carried interest we would earn on third-party private fund capital subject to carried interest on the assumption that we achieve the targeted returns on the private funds. It is determined by multiplying the target gross return of a fund, less the base management fee, by the percentage carried interest to which we are entitled to, multiplied by the amount of third-party capital, and by the utilization factor.

LTM represents last twelve months of financial data. Funds from Operations (“FFO”) is a key measure of our financial performance and we use FFO to assess operating results and our businesses performance on a segmented basis. We define FFO as net income prior to fair value changes, depreciation and amortization, deferred income taxes and transaction costs. When determining FFO, we include our proportionate share of the FFO of equity accounted investments on a fully diluted basis. FFO and its per share equivalent are non-IFRS measures which do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The most directly comparable IFRS financial measure is net income. Please refer to the “Reconciliation of Net Income to FFO” contained in the Supplemental Information posted and maintained on our website for the relevant period.

Invested Capital is the amount of common equity allocated to a business segment or business line within a segment. This measure is intended to present the net assets associated with FFO of the segment. Invested capital is equal to common equity by segment, an IFRS measure contained in the filed Interim Report and Annual Report for the relevant period. The private funds performance summary on page 13 sets forth the aggregate performance of our private investment funds by strategy (collectively, the “Funds”) that Brookfield is currently managing or has previously managed, and is intended to illustrate Brookfield’s experience in managing funds. Committed capital includes original committed/pledged capital, including current capital available for commitments and capital that may no longer be available given the mandate of each product. Gross Internal Rate of Return (“Gross IRR”) reflects the annualized performance before fund expenses, management fees and carried interest. “Net IRR” reflects annualized performance taking into account fund expenses, management fees and carried interest and are calculated on a fund level and not for any individual investor. Fund investors will likely have different performance returns than those used to aggregate net performance herein due to varying economic terms. In certain funds, Brookfield and its affiliates do not pay management fees or carried interest as a limited partner, which would otherwise result in lower returns, as such Brookfield has included a notional fee on Sponsor capital as if it were a third party investor. Gross IRR and Net IRR by strategy reflect the aggregate equity invested, realized and unrealized proceeds, fund expenses, management fees and carried interest, in the funds currency, if applicable, for the respective private investment vehicle. Aggregate performance includes certain funds that are not eligible for performance fees or “carried interest” and excludes funds’ in marketing or funds closed within 12 months of the performance calculation date. Prior performance is not indicative of future results and there can be no guarantee that future funds or investments will achieve comparable results or be able to avoid losses. Gross IRR and Net IRR reflect performance from the funds’ initial investment date to September 30, 2016.