As at March 31, 2024 and December 31, 2023 and for the

three months ended March 31, 2024 and 2023

____________________________________

(1)Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share (“IAS 33”). See Note 2(d) for further details.

____________________________________

(1)See Note 18 for additional information.

(a)Brookfield Business Corporation

Brookfield Business Corporation and its subsidiaries (the “company”) is an owner and operator of services and industrials operations on a global basis (the “businesses”). The company was formed as a corporation established under the Business Corporations Act (British Columbia) on June 21, 2021 and is a subsidiary of Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN) (the “partnership”, or collectively with its subsidiaries, excluding the company, “Brookfield Business Partners”). Brookfield Business Partners, the company and respective subsidiaries are referred to collectively as the “group”. Brookfield Corporation, formerly Brookfield Asset Management Inc. (“Brookfield Corporation” or together with its controlled subsidiaries, excluding the group, “Brookfield”), is the ultimate parent of the company and the group. Brookfield Business Partners holds all the issued and outstanding class B shares and class C shares of the company as at March 31, 2024. The registered head office of the company is 250 Vesey Street, New York, NY 10281, United States. The class A exchangeable subordinate voting shares (each, an “exchangeable share”) of the company are listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “BBUC”. The exchangeable shares are structured with the intention of being economically equivalent to the non-voting limited partnership units (“LP Units”) of the partnership. Given the economic equivalence, the market price of the exchangeable shares will be significantly impacted by the market price of the LP Units and the combined business performance of the company and Brookfield Business Partners as a whole.

(a)Statement of compliance

The unaudited interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim financial reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”). Accordingly, certain information and footnote disclosures normally included in the annual audited financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the IASB, have been omitted or condensed.

The unaudited interim condensed consolidated financial statements were approved by the Board of Directors and authorized for issue on May 6, 2024.

(b)Basis of presentation

These unaudited interim condensed consolidated financial statements should be read in conjunction with the company’s December 31, 2023 audited financial statements. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with the accounting policies disclosed in Note 2 of the December 31, 2023 audited financial statements, unless otherwise noted.

The results reported in these unaudited interim condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for an entire year. The policies set out below are consistently applied to all periods presented, unless otherwise noted.

All figures are presented in millions of U.S. dollars, unless otherwise noted.

The unaudited interim condensed consolidated financial statements have been prepared on the basis of historical cost except for certain financial instruments measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets.

(i)Global minimum top-up tax

(c)Consolidation

These unaudited interim condensed consolidated financial statements include the accounts of the company and its subsidiaries, which are the entities over which the company has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of the company’s subsidiaries are shown separately in equity in the unaudited interim condensed consolidated statements of financial position.

(d)Earnings per Share

The company’s basic and diluted earnings per share have not been presented in the unaudited interim condensed consolidated financial statements. As outlined in Note 5, exchangeable shares and class B shares are classified as financial liabilities, while class C shares are classified as financial liabilities but presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. As each share classification represents a financial liability, they do not constitute ordinary shares. Refer to the aforementioned note for further details.

(e)Critical accounting judgements and measurement uncertainty

The preparation of financial statements requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

(f)New accounting policies adopted

(i)Amendments to IAS 1 Presentation of financial statements (“IAS 1”)

(g)Future changes in accounting policies

The following table provides the details of financial instruments and their associated financial instrument classifications as at March 31, 2024:

____________________________________

(1)FVOCI includes derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 3(a) below.

(2)Includes derivative liabilities and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and other liabilities of $1,392 million.

(3)Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b), the class C shares meet certain qualifying criteria and are presented as equity instruments in accordance with IAS 32. See Note 21 for additional information.

Included in cash and cash equivalents as at March 31, 2024 is $280 million of cash (December 31, 2023: $374 million) and $463 million of cash equivalents (December 31, 2023: $398 million).

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2023:

____________________________________

(1)FVOCI includes derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 3(a) below.

(2)Includes derivative liabilities and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and other liabilities of $1,384 million.

(3)Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b), the class C shares meet certain qualifying criteria and are presented as equity instruments in accordance with IAS 32. See Note 21 for additional information.

(a)Hedging activities

The company uses foreign exchange derivative contracts to manage foreign currency exposures arising from net investments in foreign operations. For the three month period ended March 31, 2024, a pre-tax net gain of $10 million (March 31, 2023: pre-tax net loss of $11 million), was recorded in other comprehensive income for the effective portion of hedges of net investments in foreign operations. As at March 31, 2024, there was a derivative asset balance of $7 million (December 31, 2023: $1 million) and derivative liability balance of $36 million (December 31, 2023: $42 million) relating to derivative contracts designated as net investment hedges.

The company uses foreign exchange contracts and option contracts to hedge highly probable future transactions and interest rate contracts to hedge the cash flows on its floating rate borrowings. For the three month period ended March 31, 2024, a pre-tax net gain of $49 million (March 31, 2023: pre-tax net loss of $51 million) was recorded in other comprehensive income for the effective portion of cash flow hedges. As at March 31, 2024, there was derivative asset balance of $97 million (December 31, 2023: $54 million) and a derivative liability balance of $17 million (December 31, 2023: $6 million) relating to the derivative contracts designated as cash flow hedges.

(b)Fair value hierarchical levels – financial instruments

The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at March 31, 2024 and December 31, 2023:

There were no transfers between levels during the three months ended March 31, 2024.

The exchangeable shares and the class B shares are classified as liabilities due to their exchangeable and cash redemption features. Upon issuance, the exchangeable shares and the class B shares were recognized at their fair value. Subsequent to initial recognition, the exchangeable shares and the class B shares are recognized at amortized cost and remeasured to reflect changes in the contractual cash flows associated with the shares. These contractual cash flows are based on the price of one LP Unit.

During the three months ended March 31, 2024, 1 exchangeable share was exchanged into an LP Unit (March 31, 2023: 494). As at March 31, 2024, the exchangeable shares and the class B shares were remeasured to reflect the closing price of one LP Unit, which was $22.10 per unit. Remeasurement gains or losses associated with the exchangeable shares and class B shares are recorded in remeasurement of exchangeable and class B shares in the unaudited interim condensed consolidated statements of operating results. During the three months ended March 31, 2024, $5 million of dividends (March 31, 2023: $5 million of dividends) were declared on the outstanding exchangeable shares of the company and included in interest income (expense), net in the unaudited interim condensed consolidated statements of operating results.

The following table provides a continuity schedule of outstanding exchangeable shares, and the class B shares, along with the carrying value of the corresponding liability and remeasurement gains and losses:

Similar to the exchangeable shares and class B shares, the class C shares are classified as liabilities due to their cash redemption feature. However, the class C shares, the most subordinated class of all the company’s classes of common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. Refer to Note 21 for further details related to class C shares.

____________________________________

(1)See Note 22 for additional information.

Non-current billing rights primarily represent unbilled rights from the company’s water and wastewater operation in Brazil from revenues earned from the construction on public concession contracts classified as financial assets, which are recognized when there is an unconditional right to receive cash or other financial assets from the concession authority for the construction services.

The company’s construction operation has a retention balance, which comprises amounts that have been earned but held back until the satisfaction of certain conditions specified in the contract. The retention balance included in the current accounts and other receivable, net as at March 31, 2024 was $145 million (December 31, 2023: $120 million).

(a)Dispositions completed in the three months ended March 31, 2024

For the three months ended March 31, 2024, the company did not recognize any gains or losses on dispositions.

(b)Dispositions completed in the three months ended March 31, 2023

During February 2023, the company’s nuclear technology services operation, which was subsequently sold in November 2023, completed the sale of its power delivery business for gross proceeds of approximately $275 million, resulting in a gain of $14 million recorded in the unaudited interim condensed consolidated statements of operating results. See Note 9 for additional information.

The revenues and expenses related to the company’s nuclear technology services operation, which was company sold in November 2023, have been presented in the unaudited interim condensed consolidated statements of operating results for the three months ended March 31, 2023 as a discontinued operation.

Operating results of the discontinued operation for the three months ended March 31, 2024 and 2023 were as follows:

Net income (loss) attributable to Brookfield Business Partners and non-controlling interests for the three months ended March 31, 2024 and 2023 were as follows:

Comprehensive income (loss) attributable to Brookfield Business Partners and non-controlling interests for the three months ended March 31, 2024 and 2023 were as follows:

The net cash flows attributable to the operating, investing and financing activities of the discontinued operation for the three months ended March 31, 2024 and 2023 were as follows:

____________________________________

(1)See Note 16 for additional information.

The following table presents the change in the balance of property, plant and equipment for the three-month period ended March 31, 2024 and the twelve-month period ended December 31, 2023:

____________________________________

(1)Includes right-of-use assets of $228 million as at March 31, 2024 (December 31, 2023: $245 million).

The following table presents the change in the balance of intangible assets for the three-month period ended March 31, 2024 and the twelve-month period ended December 31, 2023:

Included within intangible assets are customer relationship intangible assets pertaining to continuing relationships with many of the company’s customers that contribute to the revenues and cash flows generated by the company’s respective operations. The company has recognized customer relationships from the acquisition of its dealer software and technology services operation in 2022. These customer relationships were valued at the date of acquisition using a multi-period excess earnings approach and have a carrying value of $3.2 billion as at March 31, 2024 with a remaining useful life of 14 years.

The following table presents the change in the balance of goodwill for the three-month period ended March 31, 2024 and the twelve-month period ended December 31, 2023:

The following table presents the change in the balance of equity accounted investments for the three-month period ended March 31, 2024 and the twelve-month period ended December 31, 2023:

____________________________________

(1)Includes financial liabilities of $1,296 million ($59 million current and $1,237 million non-current) as at March 31, 2024, and $1,345 million ($64 million current and $1,281 million non-current) as at December 31, 2023 related to a failed sale and leaseback of hospitals.

(2)See Note 16 for additional information.

Current and non-current non-recourse borrowings in subsidiaries of the company as at March 31, 2024, net of deferred financing costs, premiums and discounts were $303 million and $8,242 million (December 31, 2023: $793 million and $8,030 million). Non-recourse borrowings in subsidiaries of the company include borrowings made under subscription facilities of Brookfield-sponsored private equity funds.

The company has financing arrangements within its operating businesses that trade in public markets or are held at major financial institutions. The financing arrangements are primarily composed of term loans, credit facilities, and notes and debentures which are subject to fixed or floating rates. The majority of borrowings drawn are not subject to financial maintenance covenants, however, some are subject to fixed charge coverage, leverage ratios and minimum equity or liquidity covenants.

The company’s operations are currently in compliance with all covenant requirements, and the company continues to work with its subsidiaries to monitor performance against such covenant requirements.

The following tables present the changes in accumulated other comprehensive income (loss) reserves attributable to Brookfield Business Partners for the three-month period ended March 31, 2024 and 2023:

____________________________________

(1)Represents net investment hedges, cash flow hedges and other reserves.

____________________________________

(1)Represents net investment hedges, cash flow hedges and other reserves.

The company has no key employees or directors and does not remunerate key management personnel. Key decision makers of the company are all employees of the ultimate parent company or its subsidiaries, which provide management services under a master services agreement with Brookfield (the “Master Services Agreement”). Details of the allocations of costs incurred by Brookfield on behalf of the company are disclosed in Note 22.

Direct operating costs are costs incurred to earn revenues and include all attributable expenses. The following table presents direct operating costs by nature for the three months ended March 31, 2024 and 2023:

Other direct costs include freight, cost of construction expensed and expected credit loss provisions on financial assets.

(a)Revenues by type

The following table summarizes the company’s revenues by type of revenue for the three months ended March 31, 2024 and 2023.

(b)Timing of recognition of revenues from contracts with customers

The following table summarizes the company’s revenues by timing of revenue recognition for the total revenues from contracts with customers for the three months ended March 31, 2024 and March 31, 2023:

(c)Revenues by geography

The following table summarizes the company’s revenues by geography for revenues from contracts with customers for the three months ended March 31, 2024 and March 31, 2023:

The following table provides a continuity of the company’s outstanding equity for the three-month period ended March 31, 2024:

The company’s share capital is comprised of exchangeable shares, class B shares and class C shares. Due to the exchange feature of the exchangeable shares and the cash redemption feature of the class B and class C shares, the exchangeable shares, the class B shares, and the class C shares are classified as financial liabilities. However, the class C shares, the most subordinated of all of the company’s classes of common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. Refer to Note 5 for further details related to the exchangeable shares and the class B shares.

In the normal course of operations, the company entered into the transactions below with related parties. The ultimate parent of the company is Brookfield Corporation. Other related parties of the company represent Brookfield Corporation’s subsidiaries and operating entities.

Pursuant to the Master Services Agreement, on a quarterly basis, the company and other service recipients (the “Service Recipients”) pay a base management fee, referred to as the Base Management Fee, to certain service providers (the “Service Providers”), equal to 0.3125% per quarter (1.25% annually) of the total capitalization of Brookfield Business Partners. For purposes of calculating the Base Management Fee, the total capitalization of Brookfield Business Partners is equal to the quarterly volume-weighted average trading price of an LP Unit on the principal stock exchange for the LP Units (based on trading volumes) multiplied by the number of LP Units outstanding at the end of the quarter (assuming full conversion of the Redemption-Exchange Units into LP Units of Brookfield Business Partners L.P.), plus the value of securities of the other service recipients (including the exchangeable shares) that are not held by Brookfield Business Partners, plus all outstanding debt with recourse to a service recipient, less all cash held by such entities.

The company is responsible for paying its proportionate share of the total Base Management Fee in connection with the Master Services Agreement. The Base Management Fee attributable to the company for the three month period ended March 31, 2024 was $6 million (March 31, 2023: $4 million). The expense related to the services received under the Master Services Agreement has been recorded as part of general and administrative expenses in the unaudited interim condensed consolidated statements of operating results.

An integral part of the company’s strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the company’s investment mandate. In the normal course of business, the group and institutional investors have made commitments to Brookfield-sponsored private equity funds, and in connection therewith, the group, together with institutional investors, has access to short-term financing using the private equity funds’ credit facilities to facilitate investments that Brookfield has determined to be in the group’s best interests.

In addition, Brookfield has entered into indemnity agreements with the company related to certain contracts that were in place prior to the creation of Brookfield Business Partners. Under these indemnity agreements, Brookfield has agreed to indemnify or refund the company, as appropriate, for the receipt of payments relating to such contracts.

The partnership has an agreement with Brookfield to subscribe for up to $1.5 billion of perpetual preferred equity securities of subsidiaries of the partnership (including subsidiaries of the company). Brookfield will have the right to cause the company or Brookfield Business Partners to redeem the preferred securities at par plus accrued and unpaid dividends to the extent of any net proceeds received by the company or Brookfield Business Partners from the issuance of equity, incurrence of indebtedness or sale of assets. Brookfield has the right to waive its redemption option. As at March 31, 2024, the amount subscribed from the company was $nil (December 31, 2023: $nil) and the amount subscribed from Brookfield Business Partners was $725 million (December 31, 2023: $725 million). The remaining capacity available on the commitment agreement with Brookfield is $25 million.

The company entered into two credit agreements with Brookfield Business Partners, one as borrower and one as lender, each providing for a 10-year revolving $1 billion credit facility to facilitate the movement of cash within the group. The credit facility permits the company to borrow up to $1 billion from Brookfield Business Partners and the other permits Brookfield Business Partners to borrow up to $1 billion from the company. Each credit facility contemplates potential deposit arrangements pursuant to which the lender thereunder would, with the consent of the borrower, deposit funds on a demand basis. As at March 31, 2024, the amount outstanding on deposit is $189 million payable to Brookfield Business Partners included in accounts payable and other (December 31, 2023: $135 million receivable from Brookfield Business Partners).

Brookfield Business Partners provided the company an equity commitment in the amount of $2 billion. The equity commitment may be called by the company in exchange for the issuance of a number of class C shares or preferred shares, as the case may be, to Brookfield Business Partners, corresponding to the amount of the equity commitment called divided (i) in the case of a subscription for class C shares, by the volume-weighted average of the trading price for one exchangeable share on the principal stock exchange on which the exchangeable shares are listed for the five (5) days immediately preceding the date of the call, and (ii) in the case of a subscription for preferred shares, by $25.00 per share. The equity commitment will be available in minimum amounts of $10 million and the amount available under the equity commitment will be reduced permanently by the amount so called. Before funds may be called on the equity commitment, a number of conditions precedent must be met, including that Brookfield Business Partners continues to control the company and has the ability to elect a majority of the Board of Directors.

From time to time, Brookfield may place funds on deposit with Brookfield Business Partners and the company, on terms approved by the independent directors of the company. Interest earned or incurred on such deposits is at market terms. As at March 31, 2024, the deposit from Brookfield was $nil (December 31, 2023: $nil) and the company incurred interest expense of $nil for the three months ended March 31, 2024 on these deposits (March 31, 2023: $nil).

A wholly-owned subsidiary of the company fully and unconditionally guaranteed the obligations of Brookfield Business Partners under Brookfield Business Partners’ $2.3 billion bilateral credit facilities with global banks and its $1 billion revolving acquisition credit facility with Brookfield.

As at March 31, 2024, the company had a loan receivable of $1.1 billion from Brookfield Business Partners in connection with the proceeds received from the disposition of the company’s nuclear technology services operation. The loan receivable is non-interest bearing and is due on demand and included in accounts and other receivable, net.

Inclusive of those described above, the following table summarizes the transactions the company has entered into with related parties and balances the company has entered into for the three month periods ended March 31, 2024 and 2023:

____________________________________

(1)The company provides construction services to affiliates of Brookfield.

The company’s activities expose it to a variety of financial risks, including market risk (currency risk and interest rate risk) and liquidity risk. The company and its subsidiaries selectively use derivative financial instruments principally to manage these risks.

The aggregate fair values of the company’s derivative financial instruments are as follows:

Amounts paid and received for interest were reflected as operating cash flows in the unaudited interim condensed consolidated statements of cash flow.

Details of “Changes in non-cash working capital, net” on the unaudited interim condensed consolidated statements of cash flow are as follows:

(a)Distribution

On May 2, 2024, the Board of Directors declared a quarterly distribution in the amount of $0.0625 per exchangeable share, payable on June 28, 2024 to shareholders of record as at the close of business on May 31, 2024.

The following Management’s Discussion and Analysis (“MD&A”) is the responsibility of management of Brookfield Business Corporation (our “company”). This MD&A is dated May 6, 2024 and has been approved by the board of directors of our company (the “Board of Directors”) for issuance as of that date. The Board of Directors carries out its responsibility for review of this document principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication, approves this MD&A, pursuant to the authority delegated to it by the Board of Directors. The terms “we”, “us” and “our” refer to Brookfield Business Corporation, and our company’s direct and indirect operating entities as a group. This MD&A should be read in conjunction with our company’s most recently issued annual financial statements. Additional information is available on our website at https://bbu.brookfield.com/bbuc/overview, on SEDAR+’s website at www.sedarplus.ca and on EDGAR’s website at www.sec.gov.

The class A exchangeable subordinate voting shares (each, an “exchangeable share”) of our company are structured with the intention of being economically equivalent to the non-voting limited partnership units (“LP Units”) of Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN) (the “partnership”, the “parent company” or, collectively with its subsidiaries, but excluding our company, “Brookfield Business Partners”). Brookfield Business Partners, our company and respective subsidiaries are referred to collectively as our “group”. We believe economic equivalence is achieved through targeting identical dividends and distributions on the exchangeable shares and the LP Units and each exchangeable share being exchangeable at the option of the holder for one LP Unit of the partnership at any time. Given the economic equivalence, we expect that the market price of the exchangeable shares will be significantly impacted by the market price of the LP Units and the combined business performance of our company and Brookfield Business Partners as a whole. In addition to carefully considering the disclosure made in this document, shareholders are strongly encouraged to carefully review the partnership’s periodic reporting. The partnership is required to file reports, including annual reports on Form 20-F, and other information with the United States Securities and Exchange Commission (the “SEC”). The partnership’s SEC filings are available to the public from the SEC’s website at http://www.sec.gov. Copies of documents that have been filed with the Canadian securities authorities can be obtained at www.sedarplus.ca. Information about the partnership, including its SEC filings, is also available on its website at https://bbu.brookfield.com. The information found on, or accessible through, https://bbu.brookfield.com is not incorporated into and does not form a part of this MD&A.

In addition to historical information, this MD&A contains forward-looking statements. Readers are cautioned that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. See “Cautionary Statements Regarding Forward-Looking Statements”.

This MD&A 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, including the United States Private Securities Litigation Reform Act of 1995. 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 our group, 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 our group to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and result of operations and our plans and strategies may vary materially from those expressed in the forward-looking statements and forward-looking information herein.

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 following:

•the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation, commodity prices, and volatility in the financial markets;

•business competition, including competition for acquisition opportunities;

•strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom;

•restrictions on our ability to engage in certain activities or make distributions due to our indebtedness;

•global equity and capital markets and the availability of equity and debt financing and refinancing within these markets;

•political instability and unfamiliar cultural factors;

•changes to our credit ratings;

•technological change;

•the ability to obtain insurance for our business operations;

•labor disruptions and economically unfavorable collective bargaining agreements;

•litigation;

•investments in jurisdictions with less developed legal systems;

•our group does not have control over all of the businesses in which we own investments;

•changes to the market price of any investments in public companies;

•our compliance with environmental laws and the broader impacts of climate change;

•our group’s reliance on computerized business systems, which could expose our group to cyber-attacks;

•federal, state and foreign anti-corruption and trade sanctions laws and restrictions on foreign direct investment applicable to us and our group’s operating businesses create the potential for significant liabilities and penalties, the inability to complete transactions, imposition of significant costs and burdens, and reputational harm;

•operational or business risks that are specific to any of our operating businesses;

•reliance on third party service providers;

•Brookfield’s significant influence over our group;

•the lack of an obligation of Brookfield to source acquisition opportunities to our group;

•the departure of some or all of Brookfield’s professionals;

•the Master Services Agreement and our group’s other arrangements with Brookfield do not impose on Brookfield any fiduciary duties to act in the best interests of our shareholders;

•conflicts of interest between our company and our shareholders, on the one hand, and Brookfield, on the other hand;

•our arrangements with Brookfield may contain terms that are less favorable than those which otherwise might have been with unrelated parties;

•the limited liability of, and our company’s indemnification of, the Service Providers;

•control of our company, the partnership or the general partner of the partnership may change without unitholder or shareholder consent;

•Brookfield may increase its ownership in our company;

•our company is not entitled to terminate the Master Services Agreement and the general partner of the partnership may be unable or unwilling to do so;

•Brookfield’s relationship with Oaktree Capital Group, LLC, together with its affiliates;

•the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits;

•our company may become regulated as an investment company under the U.S. Investment Company Act of 1940, as amended;

•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;

•the effectiveness of our internal controls over financial reporting;

•the market price of the exchangeable shares and units may be volatile;

•future sales or issuances of our securities will result in dilution of existing holders and even the perception of such sales or issuances taking place could depress the trading price of the exchangeable shares;

•limits on shareholders’ ability to obtain favorable judicial forum for disputes related to Brookfield Business Partners or to enforce judgements against our group;

•operational and reputational risks;

•technological change;

•changes in government policy and legislation;

•governmental investigations;

•litigation;

•changes in tax law and practice;

•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 on Form 20-F for the year ended December 31, 2023 (our “2023 Annual Report”).

The 2024 Canadian federal budget included potential changes to the tax rules relating to mutual fund corporations. We are aware of the potential changes and are continuing to consider them, but we currently do not expect them to materially impact our business or investors.

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.

For a more comprehensive list of risks and uncertainties, please refer to our 2023 Annual Report under the heading “Risk Factors” available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. New risk factors may arise from time to time and it is not possible to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of our company to be materially different from those contained in forward-looking statements or information. Given these risks, assumptions and uncertainties, the reader should not place undue reliance on forward-looking statements or information as a prediction of actual results. Although the forward-looking statements and information contained in this MD&A are based upon what we believe to be reasonable assumptions, we cannot assure investors that actual results will be consistent with these forward-looking statements and information. 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, except as required by law.

The financial information in this MD&A is derived from the financial information included in the unaudited interim condensed consolidated financial statements of our company, prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”), and using the accounting policies our company applied in its annual consolidated financial statements as at and for the year ended December 31, 2023, except for the impact of the adoption of the new accounting policies and standards described within the New Accounting Policies Adopted section of this MD&A. All defined terms are also described in the annual consolidated financial statements. The unaudited interim condensed consolidated financial statements are prepared on a going concern basis and have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated. The unaudited interim condensed consolidated financial statements include the accounts of our company and its consolidated subsidiaries, which are the entities over which our company has control. Our nuclear technology services operation sold in November 2023 has been presented as a discontinued operation.

Our company is a Canadian corporation established by Brookfield Business Partners as an alternative vehicle for investors who prefer investing in our group’s operations through a corporate structure. Each exchangeable share of our company is exchangeable at the option of the holder for one LP Unit or its cash equivalent and structured with the intention of providing an economic return equivalent to one LP Unit. Through our operating subsidiaries, we own and operate high-quality services and industrial operations that benefit from barriers to entry and/or are low-cost producers. We seek to build value by pursuing an operations-oriented approach to enhancing cash flows and opportunistically recycling capital to grow our existing operations and make new acquisitions. We strive to ensure that all our operations have a clear, concise business strategy built on competitive advantages, while focusing on profitability and the sustainability of cash flows.

The table below summarizes our results of operations for the three month periods ended March 31, 2024 and 2023:

For the three months ended March 31, 2024, net loss from continuing operations decreased by $8 million to $174 million, compared to a net loss of $182 million for the three months ended March 31, 2023. Current period results included a remeasurement loss on our exchangeable shares and class B shares that are classified as liabilities under International Financial Reporting Standards (“IFRS”). As at March 31, 2024, the exchangeable shares and class B shares were remeasured to reflect the closing price of $22.10 per unit.

Net income (loss) from discontinued operations for the three months ended March 31, 2023 relates to our former investment in nuclear technology services operation which was sold in November 2023.

For the three months ended March 31, 2024, net loss was $174 million, with $150 million of net loss attributable to Brookfield Business Partners. For the three months ended March 31, 2023, net loss was $185 million, with $140 million of net loss attributable to Brookfield Business Partners.

Revenues for the three months ended March 31, 2024 of $1,865 million were in line with revenues for the three months ended March 31, 2023. Results benefited from strong business performance driven by higher levels of recurring revenues at our dealer software and technology services operation and higher revenues in our construction operation, offset by lower contributions from our healthcare services and our water and wastewater operation.

For the three months ended March 31, 2024, direct operating costs increased by $36 million to $1,652 million, compared to $1,616 million for the three months ended March 31, 2023. The increase was primarily due to increased costs at our construction operation on a project in Australia nearing completion.

For the three months ended March 31, 2024, general and administrative expenses increased by $3 million to $64 million, compared to $61 million for the three months ended March 31, 2023.

For the three months ended March 31, 2024, interest expense, net decreased by $2 million to $210 million, compared to $212 million for the three months ended March 31, 2023. The decrease was primarily due to interest cost savings at our dealer software and technology services operation as a result of a refinancing completed in the prior year. Interest expense includes $5 million of dividends accrued on the exchangeable shares (March 31, 2023: $5 million).

For the three months ended March 31, 2024, the remeasurement loss on exchangeable shares and class B shares was $111 million compared to a remeasurement loss of $121 million for the three months ended March 31, 2023. The exchangeable shares and class B shares were remeasured to reflect the closing price of one LP Unit, $22.10 per unit as at March 31, 2024.

For the three months ended March 31, 2024, net other expense decreased by $27 million to $11 million, compared to net other expense of $38 million for the three months ended March 31, 2023. For the three months ended March 31, 2024, the components of other income (expense), net include $10 million of net revaluation gains and $21 million of other expenses. For the three months ended March 31, 2023, the components of other income (expense), net include $27 million of business separation expenses, stand-up costs and restructuring charges, $5 million in transaction costs and $6 million of other expenses.

For the three months ended March 31, 2024, current income tax expense increased by $34 million to $44 million, compared to current income tax expense of $10 million for the three months ended March 31, 2023. The increase in current income tax expense was primarily due to an increase in tax resulting from higher taxable income within our dealer software and technology services operation. Deferred income tax recovery for the three months ended March 31, 2024 increased by $41 million to $54 million, compared to deferred income tax recovery of $13 million for the three months ended March 31, 2023. The increase in deferred income tax recovery was primarily due to the recognition of tax attributes generated within our dealer software and technology services operation.

Total revenues and net income (loss) for the eight most recent quarters were as follows:

Revenues and operating costs vary from quarter to quarter primarily due to acquisitions and dispositions of businesses, fluctuations in foreign exchange rates, business and economic cycles, weather and seasonality, broader economic factors and commodity market volatility. Net income is impacted by periodic monetization gains, impairment losses and gains or losses on remeasurement of exchangeable shares.

The following table is a summary of the unaudited interim condensed consolidated statements of financial position as at March 31, 2024 and December 31, 2023: