Brookfield Business Partners L P : Q1 2024 Supplemental Information

THREE MONTHS ENDED MARCH 31, 2024

Important Cautionary Notes

All amounts in this Supplemental Information are in U.S. dollars unless otherwise specified. Unless otherwise indicated, the statistical and financial data in this document is presented as at March 31, 2024.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

Note: This Supplemental Information contains "forward-looking information" within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws. 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, as well as regarding recently completed and proposed acquisitions, dispositions, and other transactions, and 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", "views", "potential", "likely" 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, investors and other readers 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 achievements 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: general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation and volatility in the financial markets; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; 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, hurricanes and pandemics/epidemics; the possible impact of international conflicts, wars and related 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 including those set forth in the "Risk Factors" section in our annual report for the year ended December 31, 2023 filed on Form 20-F.

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 and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake 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 the Use of Non-IFRS Measures

This Supplemental Information contains references to Non-IFRS measures. Adjusted EBITDA and Adjusted EBITDA margin are not generally accepted accounting measures under IFRS and therefore may differ from definitions used by other entities. We believe these are useful supplemental measures that may assist investors in assessing the financial performance of Brookfield Business Partners and its subsidiaries. However, Adjusted EBITDA and Adjusted EBITDA margin should not be considered in isolation from, or as a substitute 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. Unitholders' results include limited partnership units, redemption-exchange units, general partnership units, BBUC exchangeable shares and special limited partnership units. More detailed information on certain references made in this Supplemental Information will be available in our Management's Discussion and Analysis of Financial Condition and Results of Operations in our interim report for the first quarter ended March 31, 2024 furnished on Form 6-K.

2

Overview

3

Q1 2024 Highlights - Operating Performance

Key Performance Metrics

		Three Months Ended
		March 31,
US$ millions (except per unit amounts), unaudited		2024		2023
Net income (loss) attributable to Unitholders	$	48	$	74
Net income (loss) per limited partnership unit (1)		0.23		0.34
Adjusted EBITDA (2)		544		622

Statements of Operating Results by Segment

		Three Months Ended		Trailing Twelve
			Months Ended
		March 31,		March 31,
US$ millions, unaudited		2024		2023		2024		2023
Adjusted EBITDA by segment
Business Services	$	205	$	212	$	893	$	760
Infrastructure Services		143		225		771		889
Industrials		228		219		864		881
Corporate and Other		(32)		(34)		(115)		(139)
Adjusted EBITDA	$	544	$	622	$	2,413	$	2,391
Adjusted EFO by segment
Business Services	$	168	$	213	$	591	$	580
Infrastructure Services		72		86		2,056		460
Industrials		180		162		510		513
Corporate and Other		(89)		(80)		(344)		(227)

Financial Performance - Three Months Ended March 31, 2024

• Net income attributable to Unitholders for the three months ended March 31, 2024 was $48 million ($0.23 per limited partnership unit) compared to net income of $74 million ($0.34 per limited partnership unit) in the prior period.
• Adjusted EBITDA for the three months ended March 31, 2024 was $544 million compared to $622 million in the prior period, reflecting reduced contribution from our Infrastructure Services segment due to the disposition of our nuclear technology services operation. Excluding contribution from disposed operations, prior period Adjusted EBITDA was $548 million.
• Adjusted EBITDA margin increased to 21%, compared to 19% in the prior period (3).
• Adjusted EFO for the three months ended March 31, 2024 was $331 million ($1.53 per unit (4)) compared to $381 million ($1.75 per unit (4)) in the prior period. Excluding the impact of gain (loss) on acquisitions and dispositions, Adjusted EFO for the three months ended March 31, 2024 was $269 million ($1.24 per unit (4)) compared to $251 million ($1.16 per unit (4)) in the prior period.
• Liquidity at the corporate level for the three months ended March 31, 2024 was $1,592 million including $137 million of cash and financial assets, $1,430 million of availability on credit facilities and $25 million of remaining preferred equity commitment from Brookfield Corporation. Pro forma for announced and closed transactions corporate liquidity is approximately $1,590 million.

1. Net income (loss) per limited partnership unit calculated as net income (loss) attributable to limited partners divided by the average number of limited partnership units outstanding which was 74.3 million for the three months ended March 31, 2024 (2023: 74.6 million).
2. Adjusted EBITDA is a non-IFRS measure and is a key measure of our financial performance that we use to assess operating results and our business performance. For further information on Adjusted EBITDA, see "Definitions"

	section at the end of this Supplemental Information.
3.	Represents Adjusted EBITDA as a percentage of BBU's proportionate share of revenues for the three months ended March 31, 2024 and March 31, 2023. Excludes contribution from our road fuels operation.	4
4.	Average number of units outstanding on a fully diluted time-weighted average basis for the three months ended March 31, 2024 was 217.0 million (2023: 217.3 million).

Q1 2024 Business Developments

Other Developments

• On February 27, 2024, we completed a $450 million upfinancing at our entertainment operation. Proceeds were used to fund a dividend to shareholders of which our share was approximately $62 million.
• On March 3, 2024, our road fuels distribution operation reached an agreement to sell its U.K. and European assets. The transaction is expected to close in Q3 2024, subject to customary closing conditions and regulatory approval.

Subsequent Events

• On April 12, 2024, our work access services operation completed the repricing of a $1.3 billion term loan at SOFR plus 4.50%, reducing the interest rate spread on the debt from SOFR plus 5.50%. Total proceeds raised of $1.5 billion were upsized from the original loan size of $1.3 billion and excess proceeds were used to repay the existing borrowings.
• On May 2, 2024, we reached an agreement to sell our Canadian aggregates production operation. Our share of proceeds is expected to be approximately $135 million. The sale is expected to close in Q3 2024, subject to customary closing conditions and regulatory approval.
• On May 2, 2024, the Board of Directors of the General Partner of the Partnership and BBUC declared a quarterly distribution and quarterly dividend in the amount of $0.0625 per unit and share, respectively, payable on June 28, 2024 to unitholders and shareholders of record as at the close of business on May 31, 2024.

5

Q1 2024 Highlights - Balance Sheet & Liquidity

Key Balance Sheet Metrics

					As at
					March 31,	December 31,
	US$ millions, unaudited				2024		2023
	Total assets			$	81,415	$	82,385
	Non-recourse borrowings in subsidiaries of
	Brookfield Business Partners (1)				40,013		40,809
	Corporate borrowings				1,870		1,440
	Total equity				18,400		18,532
Proportionate borrowings
	Business Services	$		5,329	$	5,813
	Infrastructure Services				2,990		3,118
	Industrials				4,168		4,203
	Corporate and Other				1,870		1,440
		$		14,357	$	14,574
Proportionate share of cash
	Business Services	$		569	$	749
	Infrastructure Services				167		189
	Industrials				318		224
	Corporate and Other				93		112
		$		1,147	$	1,274
Proportionate borrowings, net of cash
	Business Services	$		4,760	$	5,064
	Infrastructure Services				2,823		2,929
	Industrials				3,850		3,979
	Corporate and Other				1,777		1,328
		$		13,210	$	13,300

Corporate Liquidity

		As at
		March 31,		December 31,
US$ millions, unaudited		2024		2023
Corporate cash and financial assets	$	137	$	170
Committed corporate credit facilities		1,430		1,860
Perpetual preferred equity securities		25		25
Total liquidity	$	1,592	$	2,055

Pro Forma Corporate Liquidity

US$ millions, unaudited
Total corporate liquidity, December 31, 2023	$	2,055
Expenses, net of distributions and dispositions		(12)
Acquisitions and investments		(451)
Total corporate liquidity, March 31, 2024	$	1,592
Distributions, dispositions and other (2)		283
Acquisitions and investments (3)		(285)
Pro forma corporate liquidity, March 31, 2024	$	1,590

1.	Includes proportionate share of borrowings made under subscription facilities of Brookfield Funds that Brookfield Business Partners invests alongside.
2.	Primarily relates to proceeds receivable on recently announced monetizations.
3.	Relates to the remaining funding of recently announced and closed acquisitions and investments, subject to the timing of capital funding notices from Brookfield Funds that Brookfield Business Partners invests	6
	alongside.

Partnership Capital

Units and Shares Outstanding

As at

	March 31,	December 31,	March 31,
	2024	2023	2023
Limited partnership units	74,281,764	74,281,763	74,612,997
Redemption-exchange units	69,705,497	69,705,497	69,705,497
BBUC exchangeable shares	72,954,449	72,954,450	72,955,091
General partnership and special
limited partnership units	8	8	8
Total outstanding	216,941,718	216,941,718	217,273,593

Partnership Capital Structure(1)

			As at
		March 31,		December 31,
US$ millions (except price and unit amount), unaudited		2024		2023
Partnership units outstanding (in millions) (2)		144.0		144.0
Price (3)	$	22.16	$	20.64
Partnership market capitalization	$	3,191	$	2,972
BBUC exchangeable shares outstanding (in millions)		73.0		73.0
Price (3)	$	24.14	$	23.28
BBUC market capitalization	$	1,762	$	1,699
Total market capitalization	$	4,953	$	4,671
Preferred securities		725		725
Proportionate non-recourse borrowings, net of cash		11,433		11,972
Corporate borrowings, net of cash		1,777		1,328
Enterprise value (EV)	$	18,888	$	18,696

Incentive Distribution Right

• The special limited partner is entitled to an incentive distribution calculated as 20% of the increase in the market value of the LP Units on a fully exchanged basis (assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares) over an initial threshold based on the volume-weighted average price of the LP Units, subject to a high-water mark. The incentive distribution is recorded as a distribution in equity once approved by the Board of Directors of the Partnership's General Partner.
• During the first quarter of 2024, the volume-weighted average price per limited partnership unit was $21.53, which was below the incentive distribution threshold of $31.53 per limited partnership unit. This resulted in an incentive distribution of $nil.

Normal Course Issuer Bid ("NCIB")

• Under our NCIB, Brookfield Business Partners and its affiliates are authorized to repurchase annually up to 5% of their issued and outstanding limited partnership units, or 3,730,658 LP units, including up to 14,522 units on the TSX during any trading day. Brookfield Business Partners and its affiliates can make block purchases that exceed this daily purchase restriction, subject to the annual aggregate limit.

1. The table presents supplemental measures to assist users in understanding and evaluating the partnership's capital structure.

2.	Partnership units outstanding are inclusive of limited partnership units, redemption-exchange units, special limited partnership units and general partnership units.	7
3.	TSX: BBU.UN translated to USD at March 31, 2024 and December 31, 2023, respectively at the closing CAD-USD foreign exchange rate. NYSE: BBUC at March 31, 2024 and December 31, 2023, respectively.

Operating Segments

8

Our Operations

• Our strategy is to acquire and manage high-quality operations that provide essential products and services and benefit from a strong competitive position.
• We target long-term capital appreciation driven by both organic growth and acquisitions where we can apply our expertise to improve operations and enhance cash flows.
• Our business is principally focused on activities and operations where the broader Brookfield platform provides us with a competitive advantage.
• The table below presents our economic ownership interest in our significant operations. Adjusted EBITDA and Adjusted EFO presented in this Supplemental Information represent our proportionate share based on our economic ownership interest in our underlying operations.

Segment	Description	Select Operations		Economic Ownership
	Interest (1)
		Ÿ Residential Mortgage Insurer ("Sagen")	Ÿ	41%
	Service businesses including residential	Ÿ	Dealer Software and Technology Services Operation ("CDK Global")		26%
Business Services	mortgage insurance, dealer software and	Ÿ
technology services, healthcare services, fleet
	management and car rental services and other	Ÿ	Healthcare Services ("Healthscope")	Ÿ	28%
		Ÿ Fleet Management and Car Rental Services ("Unidas")	Ÿ	35%
	Infrastructure businesses servicing large-scale	Ÿ Lottery Services Operation ("Scientific Games")	Ÿ	33%
Infrastructure
infrastructure assets, including lottery services,	Ÿ	Modular Building Leasing Services ("Modulaire")	Ÿ	28%
Services	modular building leasing services, offshore oil
	services and other	Ÿ	Offshore Oil Services ("Altera")	Ÿ	53%
Industrials	Industrial businesses including advanced energy	Ÿ	Advanced Energy Storage Operation ("Clarios")	Ÿ	28%
storage operations, engineered components
	manufacturing and other	Ÿ	Engineered Components Manufacturing ("DexKo")	Ÿ	33%

1.

As at March 31, 2024.

9

Business Services

The following table presents our proportionate share of our Business Services segment financial results:

		Three Months Ended
		March 31(1),
US$ millions, unaudited		2024		2023
Revenues	$	2,183	$	2,210
Direct operating costs		(1,957)		(1,967)
General and administrative expenses		(38)		(45)
Equity accounted Adjusted EBITDA		17		14
Adjusted EBITDA	$	205	$	212
Gain (loss) on acquisitions / dispositions, net		15		67
Gain (loss) on acquisitions / dispositions, net recorded in
equity		-		6
Other income (expense), net		49		-
Interest income (expense), net		(71)		(61)
Current income tax (expense) recovery		(21)		(8)
Equity accounted interest, tax and other expense		(9)		(3)
Adjusted EFO	$	168	$	213

The following table presents select balance sheet information of our Business Services segment on a proportionate basis:

		As at
		March 31,	December 31,
US$ millions, unaudited		2024		2023
Cash	$	569	$	749
Non-recourse borrowings in subsidiaries of Brookfield		5,329		5,813
Business Partners
Proportionate borrowings, net of cash	$	4,760	$	5,064
Equity attributable to Unitholders		3,880		3,418

Financial Results - Three Months Ended March 31, 2024

• Adjusted EBITDA for the three months ended March 31, 2024 was $205 million compared to $212 million in the prior period.
• • Our residential mortgage insurer generated $55 million of Adjusted EBITDA in Q1 2024, compared to $47 million in Q1 2023. Performance benefited from higher recognition of insurance revenue during the quarter driven by favorable economic assumptions including resilient home prices and low levels of unemployment. Losses on claims increased compared to prior period but remain below historical average levels. The business continues to generate strong levels of cash flow and is prepared to manage the impact of higher expected losses through the balance of the year.
  • Dealer software and technology services generated $63 million of Adjusted EBITDA in Q1 2024, compared to $49 million in Q1 2023. Strong business performance was driven by higher levels of recurring revenue and progress achieved on our value creation plans which contributed to increased margin performance. Results also reflect the impact of our higher ownership compared to the prior period, partially offset by lost contribution from the sale of a non-core division servicing the heavy equipment sector in May 2023.
  • Healthcare services generated $9 million of Adjusted EBITDA in Q1 2024, compared to $14 million in Q1 2023. Lower hospital admissions, the mix of patient activity and higher overall costs continue to impact results.
  • Results at our construction operation included increased costs on a project in Australia nearing completion which contributed to the overall decrease in segment Adjusted EBITDA compared to the prior period.
• Adjusted EFO decreased by $45 million, primarily due to higher current income tax expense from our residential mortgage insurer and dealer software and technology services, combined with higher interest expense.
• • Current period included $50 million of other income related to a distribution at our entertainment operations. Prior period included a $67 million net gain recognized on the disposition of our residential property management operation.

1. Adjusted EBITDA margin in our Business Services segment excluding results from our road fuels operation was 16% and 17% in Q1 2024 and Q1 2023, respectively.	10