Brookfield Business Partners Investor Meeting September 28, 2016
Cautionary Note Regarding Forward-Looking Statements Forward-Looking Statements and Information This presentation 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 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 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. Use of Non-IFRS Measures and Other This presentation contains references to financial measures which are not generally accepted accounting measures under IFRS and may differ from similar definitions used by other entities. We believe that these are useful supplemental measures that may assist investors in assessing our financial performance and the cash anticipated to be generated by our operations. Such measures should not be considered as the sole indicators 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. Certain values used in this presentation are for illustrative purposes and based on various factors that may or may not materialize, including past performance metrics that may not be indicative of future performance. References to Brookfield Business Partners or BBU are to Brookfield Business Partners LP together with its subsidiaries unless the context reflects otherwise. All amounts are in U.S. dollars unless otherwise specified. 2
Table of Contents Overview 4 CYRUS MADON, CEO Our Operations 10 Construction and Business Services JON HAICK, HEAD OF SERVICES 27 Energy JIM REID, HEAD OF ENERGY 35 Industrials PETER GORDON, HEAD OF INDUSTRIALS Financials 43 CRAIG LAURIE, CFO Looking Forward 51 CYRUS MADON, CEO Q & A 59 3
Overview CYRUS MADON 4
Brookfield Business Partners is a business services & industrials company focused on long-term capital appreciation NYSE: BBU TSX: BBU.UN MARKET SYMBOL 5
Our business has diversified operations … Industrials Business Services Provide construction Provide business Energy supply Industrial and related services services to global chain operations: manufacturing globally, including: clients, including: operations: • Oil & Gas Production – low • Design • Real Estate • Graphite Electrode cost, low decline, Services Production • Program long-life assets • Logistics • Pre-cast Concrete Management • Oilfield Services Construction • Procurement • Facilities Products Management • Aggregates • Financial Services • Specialty Metals 6
Leveraging Brookfield’s history as an owner and operator of real assets • Focus on owning and operating high-quality businesses • Target long-term growth • Invest where we have a competitive advantage • Flexibility to invest in multiple industries in a variety of forms 7
And well positioned to create value and grow… • Strong balance sheet and access to capital • Experienced management team • Global presence • Long-term track record of strong returns 8
…with an ability to deploy capital across the globe 50+ 5 PRIVATE EQUITY INVESTMENT CONTINENTS PROFESSIONALS 9
Construction Services JON HAICK 10
Construction Services Operates under the Multiplex brand A l eading construction contractor in Australia, the UK and the Middle East and recently expanded to Canada and India ~$70 billion CURRENT AND COMPLETED PROJECTS ~1,000 PROJECTS DELIVERED $7 billion+ BACKLOG 100+ PROJECTS 50 Martin Place, Sydney 11
Our business has attractive attributes… Steady earnings • Long term track record of sustained earnings and Steady Earnings and cash flows & Cash Flows cash flow • Top tier public and private clients (many of whom Diverse Diverse Client are recurring) client base Base • Client diversity improves earnings stability • Core markets are stable with encouraging growth Attractive Geographi Attractive prospects geographic markets Markets • Geographic diversity improves earnings stability • Established subcontractor networks developed over many years of successful delivery Deep Relationships Deep relationships • Difficult to replicate as we have grown with subcontractors with Supply Chain • Mitigates risk in delivery • Established culture focused on health and safety 12
...which has allowed us to complete distinct projects across a wide range of sectors COMMERCIAL RESIDENTIAL SOCIAL ~250 PROJECTS ~600 PROJECTS ~150 PROJECTS 1 VALUE: ~$15 BILLION 1 1 VALUE: ~$40 BILLION VALUE: ~$15 BILLION Fiona Stanley Hospital, Australia The Tower – One St George Wharf, UK Brookfield Place, Australia 1) Historic values converted into U.S. dollars and indexed to inflation 13
We have created significant value through organic growth… # OF PROJECTS BACKLOG $ in billions 14% 104 $7.3 21% $6.4 86 1 1 2014 2016 2014 2016 1) As of June 30, 2016 14
...and looking forward our backlog is diversified and robust BACKLOG BY SECTOR BACKLOG BY REGION $7.3 BILLION $7.3 BILLION Government 1% Office Middle East Australia Residential 18% 24% 26% Canada 2% 44% 10% Tourism & Retail Leisure 36% 29% 6% 4% Health UK Education 15
We are building skylines in… Australia Australia 108, Melbourne • 1.5 million sq. ft. luxury residential tower located on Melbourne’s south riverbank • Tallest residential tower in the southern hemisphere • Expected completion Q3 2020 101 1,100 320 FLOORS RESIDENCES METRES 16
…in the UK One Blackfriars Road, London • 760,000 sq. ft. luxury residential tower • Includes retail, public piazza, spa pool, leisure facilities • Expected completion Q4 2017 50 161 274 170 FLOORS HOTEL ROOMS RESIDENCES METRES 17
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