corporate profile - brookfield business partners · corporate profile may 2020. 2 bbu. nyse....

Brookfield Business Partners

CORPORATE PROFILE

MAY 2020

2

BBUNYSE

BBU.UNTSX

~$5BMARKET CAP1

Business Services and Industrials companyfocused on long-term capital appreciation

1) As at market close May 1, 2020

3

Our Strategy

Overall objective is to create long-term intrinsic value

Acquire Businesses on a

Value Basis

Operations-Oriented

Approach to Enhance Value

Monetize Mature Businesses &

Recycle Capital

4

Acquire and manage high quality operations globally

Target 15% to 20% return on investments with a focus on capital appreciation

• Broad investment mandate with flexibility to invest across multiple industries and through many forms

• Leverage Brookfield’s global expertise as an owner and operator of real assets

• Acquire market leaders and businesses with high barriers to entry and/or low production costs, add value through operational and other improvements

• Closely partnering with management teams for long term business success focused on profitability and sustainability of margins and cash flows

• Opportunistically recycle capital, selling interests in businesses when value is maximized

• Global sourcing capability and a proven track record over 30+ years of investing and managing businesses

5

Three primary operating segments

BusinessServices

• Residential mortgage insurance

• Healthcare services

• Road fuel distribution and marketing

• Construction services

• Others; real estate services, entertainment, fleet management, financial advisory and technology services

Industrials

• Advanced battery production

• Graphite electrode production

• Water / wastewater services

• Others; returnable plastic packaging, natural gas production, aggregates,oilfield services, auto parts

InfrastructureServices

• Services to the power generation industry

• Services to the offshore oil production industry

• Provider of work access scaffolding solutions

Leveraging Brookfield’s expertise as an owner and operator of real assets

$16B ASSETS $11B ASSETS $22B ASSETS

Note: Assets as at March 31, 2020

6

Global investment and operational team with a local presence

ASIA PACIFICSOUTH AMERICA

Global scale

Note: As at March 31, 2020

70,000+OPERATING EMPLOYEES

NORTH AMERICA

~130INVESTMENT PROFESSIONALS

EUROPE AND MIDDLE EAST

Corporate offices

$22BASSETS $14B

ASSETS

$5BASSETS

$8BASSETS

7

Our business has substantially increased in size and scale

Meaningful growth in EBITDA and cash flow over the past three years

Company FFO ($M)

Company EBITDA($M)

$252

$733

$1,102

2017 2018 2019

$240

$843

$1,213

2017 2018 2019

8

$445

$670

$285$820

BrandSafway

Clarios

GenworthCanada

Deployed ~$2.8 billion of capital and generated ~$1.0 billion of proceedsover the last 12 months1

Recycling capital to support growth

Monetizations and Distributions($M)

Deployed Capital($M)

1) As at March 31, 20202) Others includes Cardone, Ouro Verde, the acquisition of remaining interests in Altera Infrastructure, and investments in public securities

~$2.8B

Healthscope

Others2

~$250

~$760

~$1.0B

Distributions

Sales

9

As at

US$ MILLIONS, UNAUDITED March 31, 2020 December 31, 2019

Corporate cash and financial assets $ 241 $ 274

Committed corporate credit facilities 1,792 2,075

Total liquidity $ 2,033 $ 2,349

As at

US$ MILLIONS, UNAUDITED March 31, 2020 December 31, 2019

Business Services $ 732 $ 773

Infrastructure Services 2,616 2,208

Industrials 4,240 3,878

Corporate and Other 283 Nil

Total $ 7,871 $ 6,859

• $2.0 billion of total available liquidity

• Non-recourse debt held at the operating company level

• Principal sources of liquidity include:‒ Cash and public securities‒ Undrawn corporate credit facilities‒ Cash flows from our operations‒ Monetization of mature businesses‒ Access to capital markets

Significant liquidity to take advantage of market opportunities and support our businesses

Strong balance sheet position

CORPORATE L IQUIDITY

PROPORTIONAL NON-RECOURSE BORROWINGS

10

Our Business Operations

11

15%

36%

49%

BusinessServices

Industrials


Portfolio diversified across sectors and regions

Our business at a glance

COMPANY FFO1

TRAILING 12 MONTHS ENDED MARCH 31, 2020COMPANY EBITDA1

TRAILING 12 MONTHS ENDED MARCH 31, 2020

1) Total Company EBITDA and FFO includes the Corporate and Other segment. Calculation of segment percentage excludes Corporate and Other segment

39%

28%

33%

BusinessServices

Industrials


$1.2B $1.1B

12

H E AL T H C AR E

Leading private hospital provider in Australia and largest pathology provider in New Zealand

Leading global construction company delivering landmark real estate assets

C O N S T R U C TI ON S E R V I C E S

R E S ID E N T IAL M O R TGAG E I N S U R AN C E

Largest private sector residential mortgage insurer in Canada

Services leveraging expertise around real asset value chain

Business Services

O T H E R S

Road fuels, real estate services, entertainment, fleet management, financial advisory and technology services

13

Leading provider of critical offshore oil & gas transportation and production services

Leading provider of services to more than half the world’s nuclear power generation facilities

S E R V IC E S T O N U C LE AR P O WE R I N D U S T R Y

Leading service providers to large scale infrastructure assets

Infrastructure Services

Leading provider of work access, forming and shoring solutions, and specialty services

S E R V IC E S T O I N D U S TR IAL AN D C OM M E R C IAL F AC I L I T IE S

S E R V IC E S T O O F F S H OR E O I L P R O D U C T IO N

14

AU T O M OTIV E B AT T E R IE S

Leading global manufacturer of advanced automotive battery technologies

High barriers to entry or low production costs leveraging operational expertise

Industrials

A leading global graphite electrode manufacturer for electric arc furnace steelmaking

G R AP H I TE E L E C TR OD E P R O D U C T IO N

W AT E R & W AS T E WAT E R S E R V IC E S

O T H E R S

Returnable packaging producer, natural gas production, aggregates, oilfield services, auto parts

Largest private water and wastewater services company in Brazil

15

Approach to Operations

16

BBU Investment TeamsBusiness Services

Infrastructure Services Industrials

BBU Business Ops TeamNorth

AmericaSouth

America Europe APAC

Timing & Negotiations

Transaction Structuring

Closing

Aligning expertise to drive portfolio company value

Due Diligence

Transaction Structuring

Business Plan & Strategy

Governance Strategy Business Planning

Performance Improvement

Acquisition Operations Management

PORTFOLIO COMPANY

Monetization

17

Our approach to Environment, Social, Governance (“ESG”)

Our ESG principles are embedded throughout our operations and help to ensure that our business model will be sustainable well into the future

• Since acquisition BRK has implemented a Work Safety Management system and reduced high-risk activities

Employee Safety• Every year doctors and nursing staff volunteer with the

charity ‘Smile for ME’ to perform life-changing surgeries in the Philippines for ~80 children with cleft palate and cleft lip deformities

Hea l thscope

Community

BRK Ambienta l

ENSURE THE WELL-BEING AND SAFETY

OF EMPLOYEES

BE GOOD STEWARDSIN THE COMMUNITIES

IN WHICH WE OPERATE

MITIGATE THE IMPACTOF OUR OPERATIONS

ON THE ENVIRONMENT

CONDUCT BUSINESSACCORDING TO THE HIGHEST

ETHICAL AND LEGAL STANDARDS

PROVIDER OF CLEAN WATER AND WASTEWATER SERVICES TO 15 MILLION PEOPLE IN BRAZIL

PRIVATE HOSPITAL OPERATOR IN AUSTRALIAAND PATHOLOGY PROVIDER IN NEW ZEALAND

2017 2019 2017 2019

# Total Accidents Severity Rate

-10%-38%

18

We consider ESG factors across all stages of the investment lifecycle

We implement ESG principles as appropriate for each investment based on the business’ activity, location and industry of operation

Key Risks and Opportunities

• BRIBERY AND CORRUPTION RISK

• HEALTH AND SAFETY RISKS

• ETHICAL CONSIDERATIONS

• ENVIRONMENTAL MATTERS

• ENERGY EFFICIENCY IMPROVEMENTS

• CODE OF CONDUCT

• ANTI-BRIBERY AND CORRUPTION POLICY

• CYBER SECURITY PROGRAM

• WHISTLEBLOWER HOTLINE

• OTHERS

PRE-ACQUISITION

• Identify relevant material ESG risks and opportunities during due diligence

• Present findings to the Investment Committee

ACQUISITIONONBOARDING

• Create a tailored integration plan including ESG matters

• Establish governance framework and reporting protocols

ONGOINGOVERSIGHT

• Track ESG key performance indicators, risks and opportunities

• Share best practices across our portfolio companies

Governance Framework

19

LTMMarch 31, 2018

2019 Year-EndRun Rate

Long-TermUpside Potential

Case Study: Westinghouse Electric Company

Leading provider of services to the nuclear power industry

• Largest services provider to global nuclear power fleet with a large installed base and long-term contracted cash flows, acquired for value out of bankruptcy

• Leverage Brookfield’s expertise in renewable power• Implement profitability improvement initiatives to reduce

costs and improve organizational responsiveness• Optimize efficiency of supply chain• Align sales resources to improve commercial terms• Enhance and expand service offering

• $600 million run rate EBITDA achieved at year end 2019• Realized $590 million in distributions ($260 million net to

BBU) to date, returning over 60% of equity invested

O V E R V IE W

Investment Date: 2018

Purchase Price: $4 billion

BBU Invested Equity: $405 million

BBU Ownership Interest: ~44%

Operating Segment: Infrastructure Services

I N V E S TM E N T T H E S I S

V AL U E C R E AT I ON

P R O GR E S S T O D AT E

Annualized EBITDA1

($M)

1) Actual results may vary materially and are subject to market conditions and other factors

$440M

~$600M

$700M - $800M

20

$247$144 $121

$46 ($3) $96

$1,205

$1,048

2012 2013 2014 2015 2016 2017 2018 2019

Case Study: GrafTech

Leading producer of graphite electrodes used in electric arc furnace steel production

• A vertically integrated, low cost producer of graphite electrodes with high barriers to entry, opportunistically acquired at a low point in the cycle

• Rationalized capacity and refocused business on core electrode manufacturing production

• Implemented $100 million in cost savings• Capitalized on improving market conditions with

execution of multi-year take-or-pay sales agreements

• Generated $1.3 billion of proceeds from IPO, distributions and share buybacks

• Realized ~4x multiple of invested capital• BBU’s 26% ownership stake is currently valued at

~$550 million1



P R O GR E S S T O D AT E

1) As at market close May 1, 20202) Current BBU ownership interest is 26%

Adjusted EBITDA($M)

Pre-BBU Ownership


Purchase Price: $1.25 billion


BBU Initial Ownership Interest: 34%2

Operating Segment: Industrials

O V E R V IE W

21

Appendix I: Financial Disclosure

22

Selected segmented financial information

S T AT E M E N T S O F F I N AN C I AL P O S IT I ONS T AT E M E N TS O F O P E R AT I N G R E S U L TS 1,2

1) Company FFO is a non-IFRS measure which does not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Company FFO is calculated as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, non-cash gains or losses as appropriate, and other items. Company FFO is presented net to unitholders. When determining Company FFO, we include our proportionate share of Company FFO of equity accounted investments. For further information on Company FFO see “Definitions” at the back of the Corporate Profile.

2) Company EBITDA is non-IFRS measure which does not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Company FFO is further adjusted as Company EBITDA to exclude the impact of realized disposition gains (losses), interest income (expense), current income taxes, the impact of realized disposition gains (losses), current income taxes and interest income (expense) related to equity accounted investments, and other items. Company EBITDA is presented net to unitholders. When determining Company EBITDA, we include our proportionate share of Company EBITDA of equity accounted investments.

US$ MILLIONS, UNAUDITED

As of

Mar. 31, 2020 Dec. 31, 2019Proportionate non-recourseborrowings, net of cash

Business Services $ 346 $ 429Infrastructure Services 2,455 2,009Industrials 4,000 3,686Corporate and Other 245 (63)

Proportionate non-recourse borrowings, net of cash $ 7,046 $ 6,061

Equity attributable to unitholdersby segment

Business Services $ 1,779 $ 2,161Infrastructure Services 724 470Industrials 781 947Corporate and Other (223) 214

Equity attributable to unitholders $ 3,061 $ 3,792

Three monthsended Mar. 31

Trailing twelve months ended Mar. 31

US$ MILLIONS, UNAUDITED 2020 2019 2020 2019Company EBITDA

by segmentBusiness Services $ 19 $ 45 $ 195 $ 144Infrastructure Services 156 135 489 393Industrials 145 107 657 457Corporate and Other (26) (21) (100) (76)

Company EBITDA $ 294 $ 266 $ 1,241 $ 918

Company FFOby segment

Business Services $ 42 $ 32 $ 442 $ 146Infrastructure Services 104 102 316 273Industrials 57 81 369 439Corporate and Other (9) (10) (36) (58)

Company FFO1 $ 194 $ 205 $ 1,091 $ 800

23

Significant portfolio companies

Summary of notable portfolio companies

1) As at March 31, 2020, does not include impact of subsequent events2) A portion of Brookfield Business Partners’ investment may be syndicated to other institutional investors

Segment Description Notable Portfolio Companies Economic Interest1

Business ServicesService businesses in commercial and residentialreal estate, mortgage insurance, construction,health services and fuel distribution and marketing

Bridgemarq • 28%

Multiplex • 100%

Healthscope • 28%2

Greenergy • 18%

Genworth Canada • 24%

Ouro Verde • 35%

One Toronto • 14%

Infrastructure ServicesInfrastructure businesses servicing the powergeneration, offshore oil production industries andIndustrial and commercial facilities

Westinghouse • 44%

Altera Infrastructure • 43%

BrandSafway • 17%2

IndustrialsIndustrial businesses including manufacturing,water and wastewater services, natural gasproduction, and metals and mining

GrafTech International • 26%

BRK Ambiental • 26%

Clarios • 28%2

Schoeller Allibert • 14%

Ember Resources • 46%

CWC Energy Services • 54%

Cardone • 78%

24

Acquisitions

Summary of acquisitions since spin-off1,2

Segment Portfolio Company Acquisition Date Invested Capital1 Economic Interest2

Business Services

Greenergy3 May 2017 $88 million 18%

One Toronto January 2018 $6 million 14%

Imagine October 2018 $21 million 31%

Healthscope June 2019 $285 million 28%4

Ouro Verde July 2019 $45 million 35%

Genworth Canada December 2019 $670 million 24%

Infrastructure Services

Altera Infrastructure September 2017 $427 million 43%

Westinghouse August 2018 $405 million 44%

BrandSafway January 2020 $445 million 17%4

Industrials

BRK Ambiental April 2017 $383 million 26%

Schoeller Allibert May 2018 $45 million 14%

Clarios April 2019 $820 million 28%4

Cardone5 February 2020 $232 million 78%

1) Figures are presented net to Brookfield Business Partners L.P.2) As at March 31, 2020, does not include impact of subsequent events, unless otherwise noted3) Includes fuel marketing business, which was acquired in July 20174) A portion of Brookfield Business Partners’ investment may be syndicated to other institutional investors5) Previously accounted for as a financial asset

25

Appendix II: Recent Significant Acquisitions

26

IPO 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Book Equity per ShareDividend Reinvestment per Share

Genworth Canada

Largest private residential mortgage insurer in Canada

• Leading essential service provider of mortgage default insurance to the Canadian banking industry

• Highly regulated industry provides natural barriers to entry

• History of generating stable long-term cash flows throughout business and housing cycles

• Additional income earned from ~$4 billion investment portfolio

• Acquired for value from highly motivated seller

• Leverage Brookfield’s residential real estate expertise and relationships to grow market share

• Optimize the capital structure and enhance the returns earned on its investment portfolio


V AL U E C R E AT I ON O P P O R TU N I T IE S

Investment Date: December 2019



BBU Ownership Interest: 24%

Operating Segment: Business Services

O V E R V IE W

Historical Shareholder Value Creation (C$/share)1

$19

$91

1) Value Creation includes book value and accumulated value from dividends, assuming dividend reinvestment at historical book value per share equal to an implied annual return of 13%. Dollar per share values represent market price of one share bought at IPO and at December 31, 2019 assuming reinvestment of dividends at historical market prices.

27

BrandSafway

Leading provider of access, forming and shoring solutions and specialized services

• Largest player with 16% share in fragmented market and leader in safety, innovation, productivity and engineering

• Durable cash flows with ~70% of revenue from recurring maintenance, turnaround, sustaining capital and refurbs

• Resilient business model with diversified end market, geographic exposure and low customer concentration

• Improvements to organizational model, commercial operations, project execution and procurement

• Cost savings from synergies of the recent acquisition of three large legacy businesses

• Revenue growth initiatives building on strong, customer-centric culture

• M&A opportunities as “acquirer of choice” in a fragmented industry


V AL U E C R E AT I ON O P P O R TU N I T IE SRevenue by End Market

Investment Date: January 2020




Operating Segment: Infrastructure Services

70%

30%Commercial

Industrial

O V E R V IE W

28

Appendix III: Significant Dispositions Over the Last Twelve Months

29

North American Palladium

Sale of pure play palladium producer for ~$145 million in 2019

• Acquired high-quality assets for value through a rescue financing and subsequent recapitalization at the onset of a supply-demand dislocation for palladium

• Implementation of a new underground mining method to increase production and lower costs, doubled mill throughput, expanded proved and probable reserves by 89%

• Benefited from palladium prices that doubled during our ownership

• Achieved over 30x increase in run-rate EBITDA and repaid debt in full

• ~$145 million in net proceeds to BBU including ~$15 million from secondary sale and ~$130 million from sale to Implatsin December 2019

• Realized a 3.3x multiple of invested capital and IRR of 26%



M O N ET IZ AT I O N

Adjusted EBITDA(C$M)

Investment Date: 2015 - 2019


BBU Initial Ownership Interest: 23%

Operating Segment: Industrials

$5

$168

2016 2018

O V E R V IE W

26%IRR

3.3xMULTIPLE OF

INVESTED CAPITAL

30

BGIS

Sale of global facilities management business for $1 billion in May 2019

• Facilities management business with high-quality customer base and long-term contracts and that leverages Brookfield’s real estate expertise, acquired through a carve-out

• Executed organic and bolt-on acquisition growth strategy to expand size, scale, service offering and geographic footprint

• Established a leading global facilities management provider, managing more than 320 million square feet of real estate across more than 30,000 global locations

• Sale to CCMP generated net proceeds of $171 millionfor BBU

• 70% of invested capital received in distributions over the past 4 years

• Realized 3.5x multiple of invested capital and IRR of ~45%








~45%IRR

3.5xMULTIPLE OF

INVESTED CAPITAL

O V E R V IE W

31

BGRS

Sale of global executive relocations business in June 2019

• Carve-out and consolidation to create one of the largest global outsourced executive relocation businesses servicing high quality corporate and government clients

• Growth through acquisitions and service line expansion to become a global leader in mobility services

• Enhanced profitability through increased focus on operational efficiency and customer service

• Sale to Relo Group generated net proceeds of $231 million for BBU

• Realized IRR of 20%+




Investment Timeline: ~20 years



O V E R V IE W

20%+IRR

~$230MNET PROCEEDS

TO BBU

32

Appendix IV: Governance

33

Structure

• Brookfield Business Partners has entered into a Master Services Agreement with Brookfield Asset Management

‒ Annual base management fee equal to 1.25% of total capitalization of Brookfield Business Partners

• Brookfield Asset Management entitled to incentive distributions equal to 20% of an increase in the volume weighted average unit price of BBU over an established incentive distribution threshold

‒ Current incentive distribution threshold is $41.96/unit

Note: For further information regarding the arrangements refer to the Management Services Agreement available in the public filings of Brookfield Business Partners in the U.S. and Canada

34

Governance

Cyrus Madon Chief Executive Officer

Jaspreet Dehl Chief Financial Officer

Denis Turcotte Chief Operating Officer

SENIOR MANAGEMENT TEAM

INVESTOR RELATIONS CONTACT

Alan Fleming

North America 1-866-989-0311Global +1-416-645-2736Email: [email protected]

35

Definitions and Use of Non-IFRS Measures

• Company Funds From Operations (Company FFO), where applicable, is a key measure of our financial performance and we use Company FFO to assess our business performance. Company FFO is a non-IFRS measure which does not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Company FFO is calculated as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, non-cash gains or losses as appropriate, and other items. Company FFO is presented net to unitholders. When determining Company FFO, we include our proportionate share of Company FFO of equity accounted investments. For further information on Company FFO see “Use of Non IFRS Measures” of the 2019 20-F.

• Company EBITDA, is a key measure of our financial performance and we use Company EBITDA to assess operating results and our business performance. Company EBITDA is non-IFRS measure which does not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Company FFO is further adjusted as Company EBITDA to exclude the impact of realized disposition gains (losses), interest income (expense), current income taxes, the impact of realized disposition gains (losses), current income taxes and interest income (expense) related to equity accounted investments, and other items. Company EBITDA is presented net to unitholders. When determining Company EBITDA, we include our proportionate share of Company EBITDA of equity accounted investments. For further information on Company EBITDA see “Use of Non-IFRS Measures” of the 2019 20-F.

• Equity attributable to unitholders is exclusive of the equity interest of others in our operating subsidiaries

• Unitholders are defined as the parent company prior to the Spin-off on June 20, 2016 and as limited partnership unitholders, general partnership unitholders, special limited partnership unitholders and redemption-exchange unitholders post Spin-off.

1) For further information regarding the arrangements refer to the Management Services Agreement available in the public filings of Brookfield Business Partners in the U.S. and Canada

36

Important Cautionary Notes

All amounts are in U.S. dollars unless otherwise specified. Unless otherwise indicated, the statistical and financial data in this document is presented as of March 31, 2020.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATIONThis 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 Business Partners and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. In some cases, forward-looking statements can be identified by terms 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 Business Partners L.P. and its subsidiaries 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, including as a result of the recent novel coronavirus outbreak (“COVID-19”); the behavior of financial markets, including fluctuations in interest and foreign exchange rates; 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 ability to appropriately manage human capital; 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; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes, and hurricanes and pandemics/epidemics; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

In addition, our future results may be impacted by COVID-19 and the related global reduction in commerce and travel and substantial volatility in stock markets worldwide, which may result in a decrease of cash flows and impairment losses and/or revaluations on our investments and assets, and we may be unable to achieve our expected returns. See “Risks Associated with the COVID-19 Pandemic” in the “Risks and Uncertainties” section included in our Management’s Discussion and Analysis of Financial Condition and Results of Operations for the first quarter ended March 31, 2020 to be made available.

Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described herein can be profitably produced in the future. We qualify any and all of our forward-looking statements by these cautionary factors.

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 Business Partners 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.

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURESThis Corporate Profile contains references to Non-IFRS Measures. When determining Company FFO and Company EBITDA, we include our unitholders’ proportionate share of Company FFO and Company EBITDA for equity accounted investments. Company FFO and Company EBITDA are not generally accepted accounting measures under IFRS and therefore may differ from definitions used by other entities. We believe these metrics are useful supplemental measures that may assist investors in assessing the financial performance of Brookfield Business Partners and its subsidiaries. However, Company FFO and Company EBITDA should not be considered in isolation from, or as substitutes for, analysis of our financial statements prepared in accordance with IFRS.

References to Brookfield Business Partners are to Brookfield Business Partners L.P. together with its subsidiaries, controlled affiliates and operating entities. Brookfield Business Partners’ results include publicly held limited partnership units, redemption-exchange units, general partnership units and special limited partnership units. More detailed information on certain references made in this corporate profile will be available in our Management’s Discussion and Analysis of Financial Condition and Results of Operations for the quarter ended March 31, 2020.

corporate profile - brookfield business partners · corporate profile may 2020. 2 bbu. nyse....

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