APi : Q1 2024 Financial Results

Q1 2024

Earnings Call

May 2, 2024

Forward Looking Statements and Disclaimers

Please note that in this presentation the Company may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of APi Group Corporation ("APi" or the "Company"). Such discussion and statements may contain words such as "expect," "anticipate," "will," "should," "believe," "intend," "plan," "estimate," "predict," "seek," "continue," "pro forma" "outlook," "may," "might," "should," "can have," "have," "likely," "potential," "target," "indicative," "illustrative," and variations of such words and similar expressions, and relate in this presentation, without limitation, to statements, beliefs, projections and expectations about future events. Such statements are based on the Company's expectations, intentions and projections regarding the Company's future performance, anticipated events or trends and other matters that are not historical facts

These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition, political risks, and other risks that may affect the Company's future performance, including the impacts of inflationary pressures and other macroeconomic factors on the Company's business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the materials and commodities the Company uses in its business and for which the Company bears the risk of such increases; (iii) risks associated with the Company's expanded international operations; (iv) failure to realize the anticipated benefits of the acquisition of the Chubb fire and security business and our ability to successfully execute the Company's bolt-on acquisition strategy to acquire other businesses and successfully integrate them into its operations; (v) failure to fully execute the Company's inspection first strategy or to realize the expected service revenue from such inspections; (vi) risks associated with the Company's decentralized business model and participation in joint ventures; (vii) improperly managed projects or project delays; (viii) adverse developments in the credit markets which could impact the Company's ability to secure financing in the future; (ix) the Company's substantial level of indebtedness; (x) risks associated with the Company's contract portfolio; (xi) changes in applicable laws or regulations; (xii) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (xiii) the impact of a global armed conflict; (xiv) the trading price of the Company's common stock, which may be positively or negatively impacted by market and economic conditions, the availability of the Company's common stock, the Company's financial performance or determinations following the date of this presentation to use the Company's funds for other purposes; (xv) geopolitical risks and (xvi) other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 under the heading "Risk Factors." Given these risks and uncertainties, you are cautioned not to place undue reliance on forward- looking statements. Additional information concerning these risks, uncertainties and other factors that could cause actual results to vary is, or will be, included in the periodic and other reports filed by the Company with the Securities and Exchange Commission. Forward-looking statements included in this presentation speak only as of the date hereof and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this presentation.

APi GROUP | BUILDING GREAT LEADERS®	2

Non-GAAP Financial Measures

This presentation contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this presentation and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company's management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company's performance using the same tools that management uses to evaluate the Company's past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers and (c) determine certain elements of management's incentive compensation (d) provide consistent period-to-period comparisons of the results. Specifically:

• The Company's management believes that adjusted gross profit, adjusted selling, general and administrative ("SG&A") expenses, adjusted net income, and adjusted earnings per share, which are non-GAAP financial measures that exclude business transformation and other expenses for the integration of acquired businesses, the impact and results of businesses classified as assets held-for-sale and businesses divested, and one-time and other events such as impairment charges, restructuring costs, transaction and other costs related to acquisitions, amortization of intangible assets, and non-service pension cost or benefit are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company's core ongoing operations.
• The Company discloses fixed currency net revenues and adjusted EBITDA ("FFX") on a consolidated basis or segment specific basis to provide a more complete understanding of underlying revenue and adjusted EBITDA trends by providing net revenues and adjusted EBITDA on a consistent basis. Under U.S. GAAP, income statement results are translated in U.S. Dollars at the average exchange rates for the period presented. Management believes that the fixed currency non-GAAP measures are useful in providing period-to-period comparisons of the results of the Company's operational performance, as it excludes the translation impact of exchange rate fluctuations on our international results. Fixed currency amounts included in this release are based on translation into U.S. dollars at the fixed foreign currency exchange rates established by management at the beginning of 2024.
• The Company also presents organic changes in net revenues on a consolidated basis or segment specific basis to provide a more complete understanding of underlying revenue trends by providing net revenues on a consistent basis as it excludes the impacts of material acquisitions, completed divestitures, and changes in foreign currency from year-over-year comparisons on reported net revenues, calculated as the difference between the reported net revenues for the current period and reported net revenues for the current period converted at fixed foreign currency exchange rates (excluding material acquisitions and divestitures). The remainder is divided by prior year fixed currency net revenues, excluding the impacts of completed divestitures.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. The Company supplements the reporting of its consolidated financial information with certain non-U.S. GAAP financial measures, including EBITDA and adjusted EBITDA, which is defined as EBITDA excluding the impact of certain non-cash and other specifically identified items ("adjusted EBITDA"). Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company's financial results and assess its prospects for future performance. The Company uses EBITDA and adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company's core operating results. Consolidated EBITDA is calculated in a manner consistent with segment EBITDA, which is a measure of segment profitability.

APi GROUP | BUILDING GREAT LEADERS®	3

Non-GAAP Financial Measures (cont'd)

• The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash, however, it does not represent residual cash flows available for discretionary expenditures. Free cash flow is defined as cash provided by (used in) operating activities less capital expenditures. Adjusted free cash flow is defined as cash provided by (used in) operating activities plus or minus events including, but not limited to, transaction and other costs related to acquisitions, business transformation and other expenses for the integration of acquired businesses, payments on acquired liabilities, payments made for restructuring programs, impacts of businesses classified as assets held-for-sale and businesses divested, one-time and other events such as post-measurement period purchase accounting adjustments for acquisitions and public offerings, and COVID-19 related payroll tax deferral and relief items. Adjusted free cash flow conversion is defined as adjusted free cash flow as a percentage of adjusted EBITDA.
• The Company calculates its leverage ratio in accordance with its debt agreements which include different adjustments to EBITDA from those included in the adjusted EBITDA numbers reported externally.

While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies. A reconciliation of these non-U.S. GAAP financial measures is included later in this presentation.

The Company does not provide reconciliations of forward-lookingnon-U.S. GAAP adjusted EBITDA and growth in organic net revenues to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisitions and divestitures, business transformation and other expenses for the integration of acquired businesses, one-time and other events such as impairment charges, transaction and other costs related to acquisitions, restructuring costs, amortization of intangible assets, and other charges reflected in the Company's reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.

APi GROUP | BUILDING GREAT LEADERS®	4

APi's "13/60/80" Shareholder Value Creation Framework

Building Great Leaders

• The safety, health, and well-being of each of our leaders is our #1 value
• Everyone, everywhere is a leader
• Best-in-classfield leaders
• Paying for performance
• ESG & diversity, equity and inclusion
• Team Engagement

Generating Free Cash Flow

• Targeting long-term80% adjusted free cash flow conversion and net leverage ratio of approximately 2.5x
• Driving organic growth: people, tools, innovation
• Pursuing accretive M&A and portfolio optimization

Our vision is to be the

#1 People-First Company and

#1 in Business Performance in our Industry

Growing Revenue

• Delivering long-term organic revenue growth above industry average
• Inspection first go-to-market strategy
• Expanding share with new and existing customers
• Fully leveraging our global platform

Expanding Margins

• 13%+ Adjusted EBITDA Margin by 2025
• Improving mix with long-term target of 60%+ of revenue from inspection, service and monitoring
• Pricing initiatives and disciplined project and customer selection
• Systems, scale, leverage and operational excellence including procurement
• Chubb value capture

APi GROUP | BUILDING GREAT LEADERS®	5

First Quarter 2024 Performance Highlights

First quarter net revenues of $1.6 billion, a decrease of 0.8%

Organic net revenue decline of 1.4% in the first quarter (compared to organic growth of approximately 12% in Q1 2023) which was driven by disciplined customer and project selection and lower revenues from declining material cost pass through

Adjusted gross margin expansion of 390 basis points in the first quarter

First quarter adjusted EBITDA of $175 million, representing adjusted EBITDA margin expansion of 180 basis points to a record 10.9% adjusted EBITDA margin

Adjusted diluted earnings per share in the first quarter of $0.34, up 36.0%

First quarter adjusted free cash flow of $12 million, representing 7% conversion in our seasonally lowest quarter for free cash flow

Note: Refer to Appendix for a reconciliation of non-GAAP measures to most directly comparable GAAP measures.

APi GROUP | BUILDING GREAT LEADERS®	6

First Quarter 2024 Financial Results Overview

THREE MONTHS ENDED MARCH 31, 2024

NET REVENUES

Total: $1.6 billion(1)

24%

76%

ADJUSTED GROSS PROFIT

Total: $492 million

14%

86%

ADJUSTED EBITDA

Total: $208 million(1)

16%

84%

Safety Services

Specialty Services

Notes:	Refer to Appendix for a reconciliation of non-GAAP measures to most directly comparable GAAP measures.
(1)	Excludes Corporate and Eliminations.
APi GROUP | BUILDING GREAT LEADERS®	7

Key Financial and Operating Metrics

THREE MONTHS ENDED MARCH 31,

($ in millions, except per share figures)	2024	2023	YoY Change	YoY (FFX)(a)
Net Revenues	$1,601	$1,614	(0.8)%	(1.2)%
Organic Net Revenue Growth (b)				(1.4)%
Adjusted Gross Profit	$ 492	$ 432	+ 13.9%
Adjusted Gross Margin	30.7%	26.8%	+ 390 bps
Adjusted EBITDA	$ 175	$ 147	+ 19.0%	+ 19.0%
Adjusted EBITDA Margin	10.9%	9.1%	+ 180 bps
Adjusted Net Income	$ 94	$ 69	+ 36.2%
Adjusted Diluted EPS	$ 0.34	$ 0.25	+ 36.0%
Operating Cash Flow	$ 7	$ (1)	NM
Adjusted Free Cash Flow	$ 12	$ 0	NM
Adjusted Free Cash Flow Conversion	6.9%	−	NM
NM = Not Meaningful.

Notes: Refer to Appendix for a reconciliation of non-GAAP measures to most directly comparable GAAP measures.

1. Amount represents the year-over-year change when comparing both years after eliminating the impact of fluctuations in foreign currency rates by translating foreign currency denominated results at fixed foreign currency ("FFX") rates for both periods.
2. Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, divestitures, and the impact of changes due to foreign currency translation.

APi GROUP | BUILDING GREAT LEADERS®	8

Key Segment Financial and Operating Metrics

THREE MONTHS ENDED MARCH 31,

		Safety Services				Specialty Services
($ in millions)	2024	2023	YoY	YoY	2024	2023	YoY	YoY
Change	(FFX)(a)	Change	(FFX)(a)
Net Revenues	$ 1,214	$ 1,191	+ 1.9%	+ 1.5%	$ 389	$ 430	(9.5)%	(9.5)%
Organic Net Revenue Growth (b)				+ 0.2%					(7.4)%
Adjusted Gross Profit	$ 423	$ 375	+ 12.8%		$ 69	$ 57	+ 21.1%
Adjusted Gross Margin	34.8%	31.5%	+ 330 bps		17.7%	13.3%	+ 440 bps
Adjusted EBITDA	$ 174	$ 147	+ 18.4%	+ 17.6%	$ 34	$ 28	+ 21.4%	+ 21.4%
Adjusted EBITDA Margin	14.3%	12.3%	+ 200 bps		8.7%	6.5%	+ 220 bps

Notes: Refer to Appendix for a reconciliation of non-GAAP measures to most directly comparable GAAP measures.

1. Amount represents the year-over-year change when comparing both years after eliminating the impact of fluctuations in foreign currency rates by translating foreign currency denominated results at fixed foreign currency ("FFX") rates for both periods.
2. Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, divestitures, and the impact of changes due to foreign currency translation.

APi GROUP | BUILDING GREAT LEADERS®	9

Q2 and Full Year 2024 Guidance

Continue to expect full year net revenue to range from $7.05 to $7.25 billion, adjusted EBITDA to range from $855 to $905 million, and adjusted free cash flow conversion for the year to be approximately 70%

This guidance has not been adjusted to include the impact from the announced Elevated acquisition, the divestiture announced this quarter, and the headwind from foreign exchange movements since our initial guidance announced on February 28, 2024

Based on current foreign exchange rates, we expect an ~$35 million headwind on revenue and ~$5 million headwind on adjusted EBITDA from foreign exchange movements since our initial February 28, 2024 guidance

		Q2 2024	FY 2024
	Net Revenues	$1,750 to $1,800 million	$7,050 to $7,250 million
	Net Revenue Growth versus Last Year	(1)% - 2%	2% - 5%
	Net Revenue Organic Growth	(1)% - 2%	2% - 5%
	Adjusted EBITDA	$220 to $235 million	$855 to $905 million
	Adjusted EBITDA Growth versus Last Year	8% - 16%	9% - 16%
	Adjusted EBITDA Growth at Fixed Currencies	9% - 16%	9% - 16%
	Adjusted Free Cash Flow Conversion		Approximately 70%
APi GROUP | BUILDING GREAT LEADERS®				10