CORPORATE PROFILEAUGUST 2016
Brookfield Business Partners
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Brookfield Business Partners
Important Cautionary Notes
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities.
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 June 30, 2016.
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 ofSection 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 StatesPrivate 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 andinternational 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 uponreasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknownrisks, 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 unanticipatedimpact 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 foreignexchanges rate; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; theability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to reportfinancial 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, catastrophicevents, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed fromtime to time in our documents filed with the securities regulators in Canada and the United States.
Statements relating to “reserves” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that thereserves 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 shouldcarefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Brookfield Business Partners undertakes no obligation to publiclyupdate 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 Company FFO. When determining Company FFO, we include our unitholders’ proportionate share of Company FFO for equityaccounted investments. Company FFO is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Company FFO or Funds fromOperations used by other entities. We believe that this is a useful supplemental measure that may assist investors in assessing the financial performance of Brookfield BusinessPartners and its subsidiaries. Company FFO should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for,analysis of our financial statements prepared in accordance with IFRS.
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Brookfield Business Partners
OVERVIEW
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Brookfield Business Partners
Overview of Brookfield Business Partners
KEY ATTRIBUTES
• Focus on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs
• We target long-term growth, either organic growth of our current operations or acquisitions where our operational expertise can surface value and enhance earnings
• Our business is principally focused on operations where the broader Brookfield platform provides us with a competitive advantage, and where we are able to leverage the history and pedigree of Brookfield as an owner and operator of real assets
• We have flexibility to invest in multiple industries in a variety of forms, meaning we may acquire debt or equity securities, or provide financing to companies, in addition to business acquisitions
Business services and industrials company focused onlong-term capital appreciation
NYSE: BBU
TSX: BBU.UN
Market Symbol
$2.1 Billion
Equity
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Brookfield Business Partners
Business Services
Initial Operations in Two Primary Segments
Provide business services to global clients, including:
• Real Estate Services
• Logistics
• Facilities Management
• Financial Services
Energy supply chain operations:
• Oil & Gas Production – low cost, low decline, long-life assets
• Oilfield Services
Operations in North America and Australia
Industrial manufacturing operations comprised of primarily:
• Graphite Electrode Production
• Pre-cast Concrete Construction Products
• Aggregates
• Specialty Metals
Industrials
Provide construction and related services globally, including:
• Design
• Program Management
• Procurement
Operations in Australia, the Middle East, Europe, Canada and India
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Brookfield Business Partners
Q2-16 Financial Snapshot
BOOK EQUITY $2.1 BILLION1,2 TOTAL ASSETS $8.1 BILLION
FFO $58 MILLION2,3
1. As of June 30, 2016 2. Attributable to parent company prior to the Spin-off on June 20, 2016 and to limited partnership unitholders, general partnership
unitholders, and redemption-exchange unitholders post Spin-off. Post Spin-off, equity is also attributable to preferred shareholders and Special LP unitholders.
3. Three months ending June 30, 2016
Corporate 12%
Energy16%
ConstructionServices
39%
Other Industrials
17%Other
BusinessServices
16%
Energy23%
ConstructionServices
28%
Other Industrials
28%
Other BusinessServices
18%
Energy4%
ConstructionServices
56%
Other BusinessServices
24%
TOTAL REVENUES $2.0 BILLION3
Corporate3%
$1.1
$0.5
$0.1
$0.3
$0
$1,500
Construction OtherBusinessSevices
Energy OtherIndustrials
US$
BIL
LIO
NS
$25
$15 $17
$2 ($1)
-$5
$20
$45
Construction OtherBusinessSevices
Energy OtherIndustrials
Corporate
US$
MIL
LIO
NS
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Brookfield Business Partners
Global Operations
1. As of June 30, 2016
NORTH AMERICA
EUROPE
AUSTRALIA
MIDDLE EAST
ASSETS $4.6 Billion
ASSETS $1.1 Billion
ASSETS $1.6 Billion
ASSETS $0.8 Billion
Locations Assets
200+ $8.1 Billion1
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Brookfield Business Partners
Value Proposition – Long Term Capital Appreciation
We target a 15% to 20% average return on our investments
BUSINESS STRATEGY
• Target acquisitions of high quality businesses on a value basis or in “out-of-favor” sectors
• Active management approach to enhance value of our operations by focusing on profitability, product margins and cash flows or through sale of non-core assets
• Surface value of hidden assets and realize value of our operations when they can be maximized
• Opportunistically recycle capital
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Brookfield Business Partners
Liquidity and Capital Resources
We manage our liquidity and capital requirements through:
• Cash flows from operations
• Opportunistically monetizing mature assets and operations
• Strategically refinancing existing debt and incurring additional debt
Brookfield Business Partners maintains a strong balance sheetwith ample liquidity and a net debt to capitalization ratio of 28%
MANAGING LIQUIDITY
We finance our assets principally at the operating company level with debt that generally does not have recourse against either our company or to our other operations
• Maturities ranging from 1 to 7 years
• Weighted average maturity is 2.2 years and weighted average interest rate is 3.8%
• These borrowings typically include customary covenants based on a fixed charge coverage ratio and debt to EBITDA ratios
We have no net debt at the corporate level
Limited recourse for performance bonds and construction guarantees
FINANCING ASSETS
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Brookfield Business Partners
OPERATING SEGMENTS
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Brookfield Business Partners
Construction Services
Provide construction and related services globally,including design, program management and procurement
Leading international contractor operating in Australia, Europe, the Middle East, Canada and India
• Operates under the Multiplex banner• Extensive development and construction capability to drive
value creation• Focus on commercial and residential buildings, social
infrastructure and mixed-use properties• Landmark projects include One St. George Wharf in London,
King Street Wharf in Sydney and Emirates Towers in Dubai
PROFILE
KING STREET WHARF, SYDNEY
Workbook Continents
$14 Billion + 4Project Backlog
$7 Billion +
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Brookfield Business Partners
Other Business Services
Commercial & residential real estate services
Broad exposure for our unitholders to the commercial and residential real estate services sectors
• Offering a suite of services across the service value chain for real estate and other real assets including brokerage services, appraisals, relocation services and facilities management
• Global client base including government agencies and large corporations
• Providing superior service levels and operating platforms that are global in scale
Square feet of managed real estate
300 Million +Continents
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PROFILE
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Brookfield Business Partners
Energy
Oil and gas exploration & production (E&P) and energy related services
Our energy businesses operate across the supply chain including exploration and production, and well and drilling services
• We operate in Western Canada with an orientation toward long-life, low-cost reserves located at shallow depths, and in Australia where we are focused on long-life, contracted natural gas reserves and high return offshore oil projects
• Our contract drilling and well servicing business operates in Western Canada where we have the infrastructure to meet the changing needs of our upstream customers and respond to technological developments in the drilling space
Boe/d Production Gas Production
100,000+ ~80%Oil Production
~20%
PROFILE
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Brookfield Business Partners
CountriesOperating Locations
Other Industrials
Industrial manufacturing and metals & mining
Our industrial manufacturing and metals & mining operations leverage Brookfield’s expertise as an owner and operator of real assets
• Industrial manufacturing operations are low-cost producers with high barriers to entry due to market position, required operational expertise, or capital intensity
• Metals & mining operations are specialty, niche commodity producers that supply local and global markets
PROFILE
40+ 7
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Brookfield Business Partners
US$ MILLIONS
As of
Jun. 30, 2016 Dec. 31, 2015
Total assets by segmentConstruction Services $ 2,304 $ 2,125Other Business Services 1,484 1,429Energy 1,848 1,867Other Industrials 2,249 2,214Corporate and Other 262 −
Total assets $ 8,147 $ 7,635
Debt by segmentConstruction Services $ 23 $ 18Other Business Services 450 503Energy 785 808Other Industrials 800 745Corporate and Other − −
Borrowings $ 2,058 $ 2,074Net equity attributable to unitholdersby segment
Construction Services $ 847 $ 745Other Business Services 322 309Energy 326 315Other Industrials 363 418Corporate and Other 261 −
Equity attributable to unitholders1 $ 2,119 $ 1,787
Selected Segmented Statements of Operations andStatements of Financial Position Information
US$ MILLIONS
Three months ended Jun. 30
Six months ended Jun. 30
2016 2015 2016 2015
Revenue by segmentConstruction Services $ 1,119 $ 904 $ 2,007 $ 1,600Other Business Services 482 490 933 760Energy 63 85 129 176Other Industrials 344 151 616 240Corporate and Other − − − −
Revenue $ 2,008 $ 1,630 $ 3,685 $ 2,776
Direct operating costs by segment
Construction Services $ 1,082 $ 877 $ 1,938 $ 1,531Other Business Services 429 443 847 692Energy 44 53 87 108Other Industrials 309 111 561 176Corporate and Other 1 − 1 −
Direct operating costs $ 1,865 $ 1,484 $ 3,434 $ 2,507
Company FFO by segmentConstruction Services $ 25 $ 17 $ 47 $ 44Other Business Services 15 14 17 16Energy 17 2 35 12Other Industrials 2 8 (3) 11Corporate and Other (1) − (1) −
Company FFO1,2 $ 58 $ 41 $ 95 $ 83
1. Attributable to parent company prior to the Spin-off on June 20, 2016 and to limited partnership unitholders, general partnership unitholders, and redemption-exchange unitholders post Spin-off. Post Spin-off, equity is also attributable to preferred shareholders and Special LP unitholders.
2. Company FFO is a non-IFRS measure and is calculated as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, non-cash gains or losses and other items. When determining Company FFO, we include our proportionate share of Company FFO of equity accounted investment. For further information on Company FFO see “Use of Non IFRS Measures” on page 1 of the Prospectus
STATEMENTS OF OPERATIONS STATEMENTS OF FINANCIAL POSITION
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Brookfield Business Partners
SENIOR MANAGEMENT TEAM
Cyrus Madon Chief Executive Officer Jon Haick Head of Services
Craig Laurie Chief Financial Officer Peter Gordon Head of Industrials
Joe Freedman Senior Managing Partner Jim Reid Head of Energy
Jaspreet Dehl Senior Vice President
• Brookfield Business Partners has entered into a Master Services Agreement with Brookfield Asset Management‒ Provides a comprehensive suite of services to Brookfield Business Partners‒ Base management fee equal to 1.25% annually of total capitalization of Brookfield Business
Partners
• Brookfield is entitled to receive incentive distributions based on a 20% increase in the unit price of BBU over the initial threshold of $25/unit
Governance
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Brookfield Business Partners
For investor-related information please call our Investor Line:
North America 1-866-989-0311Global 1-416-363-9491
Email: [email protected]
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Brookfield Business Partners
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 operating results and 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 and other items. Company FFO is presented net to unitholders, ornet to parent company. When determining Company FFO, we include our proportionate share of Company FFO of equity accounted investment. For further information on Company FFO see “Use of Non IFRS Measures” on page 1 of the Prospectus.
• Equity attributable to unitholders is exclusive of the equity interest of others in our operating subsidiaries.
• Net Income attributable to unitholders is exclusive of the net income attributable to others in our operating subsidiaries.
• EBITDA is defined as net income before interest, taxes, depreciation and amortization