BBU - Earnings call transcript Q3 2020 | Brookfield Business Partners L.P.

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Operator

Welcome to the Brookfield Business Partners' Third Quarter 2020 Results Conference Call and Webcast.

As a reminder all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] Now I'd like to turn the conference call over to Alan Fleming, Vice President of Investor Relations. Please, go ahead Mr. Fleming.

Alan Fleming

morning. call. Brookfield good third Partners' and conference quarter you Welcome Business to XXXX Thank

begin, like our differ results we may to questions our Before known I'd and materially. make and responding that financial risks statements in to forward-looking in and statements. talking are performance unknown may about operating growth These and to initiatives we remind subject you future and

I Canada encourage the further the you review For risk information available with in known our are securities which factors, regulators website. and on U.S. filings our to on

call our Jaspreet to On over Officer. call Chief Officer; and will results provide then finish. business Clarios. I Turcotte, developments me and the Officer; Operating financial on the pass to with Denis the review Madon, will Cyrus today is Chief quarter on Financial quarter at will insight Executive to Cyrus Jaspreet give third in Chief Dehl, update Denis an

I'll We will call available your Cyrus. to over take then With be pass to the that, questions.

Cyrus Madon

Thanks, mind, last to and economic our resilience the of depths recovered the shutdown Alan. regions. last business the us today. efforts virtually our over overall transaction them well all across an market levels activity now Thanks The approaching that increase in everyone. with seeing many growth from served us months activity our we've Good operations our and are year. of all have joining of few similar for refocused With on in private morning,

and choose equity to businesses, provides acquire the underperforming arise. flexibility companies at provide financing to in invest acquire volatility give growth because which that conglomerates us impacted and rise We're evaluate they to to presence with carve-outs or Our And have been their been support opportunities. we different positions capitalization. debt few global public forms attractive by control positions looking or scale near-term levels approach investment opportunities and also companies regions or reviewing reduced can in where operate securities in to of we from value local quality we've our high a businesses demand. Recently, to could as us

to we efficient the businesses to company execution, way more insurer own publicly a low-risk in of the BBU. Buying businesses. Sagen. year. last Sagen we At private required speed to mortgage for late and the already banks is Canada's an grow time, held acquire Canadian add-on publicly the is entire for entered or to which in interest recently value was as would us to we allow During us have grow XX% certainty largest shares. to this October, our continued shares and the tender acquiring businesses In an and acquired and into the quarter, existing business, we controlling liked Genworth, Canada, held but didn't agreement seller the rebranded which we add acquire

in this subsidization offer programs. and for the block other banks is our natural government have initial shares at federal provided company. really same for our the control Canadian which a extension and book to investment So deferrals value paid last homeowners the held we the to through acquire year remaining of wage mortgage publicly support and value

more XXXX, will event absorb these ownership inevitably on BBU As to that this million of will $XXX we partners capital to is improving the which returns structure But expects private loss of capabilities half headroom its companies. these with both to first to pursuing and the shareholder and in reach portfolio currently enhance the come add-on sustained alongside this and of positioned a will its earned regulatory end, subject are programs the we loss our transaction can defaults We're our close operates efficiently support. transaction capital ratios the approximately an to and investment time, company, ratios opportunities run with of well to business fund temporary period Sagen to are a as enough We also increase believe losses. provide elevated portfolio. by XX%. increase. The that approval. business for in expected optimizing institutional

seeing are For Greenergy both our Ireland. in capital regions. an little of And integration to benefiting opportunities provide the provide area with BRK's is Brazil. to of from operations. extensive BRK the of located sites to access in a concession of recent surfacing water XX-year where distributor vertical purchase Maceió services of and million importance has you retail people like city context the businesses fuel and across of on scale these and fuel sponsorship quarter northeastern this XX acquisition a Maceió Greenergy's in in the agreement environment. in an add-on a country. of we operations to example increases to I'd X.X at city that signed in a during our our of bit already portfolio all Brazil India We're acquisition types This

time Brazil of Brazil the estimates change execute operational next requirement This manage required XX XX infrastructure in option build In handful will sector represents large-scale pipeline sewage years. place additional the some the we've the for business additional uncertainty in kilometers for water first of capital customer access growth service these generate plans continue to to addition going billion should businesses. is services, extend back the value water will is at we XXX,XXX plans install overall opportunities the X,XXX of to to types BRK private a hand residents the to sector major of of $XX capabilities today. we BRK of confident our that the collection the in growth come one market over that less attractive our with sanitation of to of Sanitation Getting to over projects. with the XX% been per and which companies compared to while investment investment BBU of the in new over capital overall a increased each recycling and The it intrinsic our driven expect providing residents capital than resilience was conditions in by Denis. to to opportunity. with and over supporting I'm future in value business. regulatory anticipate in Brazil. unit in provide XX% of BRK over potential a environment to to that connections in pleased very to We're to government With business near continue creation initiatives following that

Denis Turcotte

Cyrus. morning Thanks everyone. Good

the businesses work business respond teams help management to operations to business government to with of to the operations and to disruption to our localized and conditions continue minimize closely changes the Our global quickly them teams related of all our regulations pandemic. in

confident regions manage in pace in operate by transportation savings of deliver To at ability our Despite impact million our today challenges employees good challenges operating cost in are as these debottlenecking opportunities Key ensuring and over the year-end ensure on and have on $XXX U.S. capitalize to of through steadied technologies and $XXX Clarios and our all to highlight we of safeguarding across achieve million we EBITDA well production place plan the activities in to automotive and operations is uncertainty. in improvements. teams and Clarios initiatives and the on global focused as continues on positioned we annual generate operational The are processes creation efficiently to optimization to value these implemented current managing initial progress one have operations sourcing. focused including of our making periods we we as of remains track on importantly, our March-April are logistics of enhancements. recycling approximately batteries of recover. targeted through to optimizing intense strategic leading of environment our our manufacturer activity improvements We are in expected operations has the economic and and

company working the is its trends also for providing opportunities where longer of term industry excited that cars of road are Clarios. initiatives the growth The to are expected are XX% as and about great increases. company's organically of number number sales today on are We automotive the grow the aftermarket, a on the within with

providing requires and increased choice to tighten. over In for battery-powered next vehicles are consumers a moving tailwinds advanced to leader including a strengthened environmental leading features. batteries the the company. partner power demand in vehicle as manufacturers market demand addition technology. in leader strength In evolving critical also Power expected more platforms also Clarios' regulations towards on is response, for which double to as within years more safety to regulations to systems are for and the electrification demand power vehicle battery five powertrains every needs as batteries electric global Clarios. features vehicles plays and advanced its and auxiliary comfort where positive auto vehicle is more of Clarios driving meet safety the and these comfort evolution The electric is Clarios-type batteries opportunities battery automotive advanced global to

have and manufacturers most platforms. for Clarios' vehicle equipment Clarios under electric and vehicles integrate Volkswagen advanced next-generation electric battery is most to their several and platforms. working working We Currently, technologies been General to with with including global design batteries Motors, BMW closely their manufacturers also original vehicle into electric auto ships manufacturers

it growth Clarios I'll back across its potential. Jaspreet. its confident all continued to position expect maintain and that are leadership powertrains global We in to hand With

Jaspreet Dehl

the on per on recorded public We securities, a $X.XX the in Business economic of each of of now overview on or including to or investments $X.XX on was reported BRK during for an offset our mark-to-market unit. of partially financial performance unit excluding contributions The by compares year. an year. increase XXXX $X.XX generated one-time This million gains the $XXX I'm third Thanks, the of current $XXX quarter the included Denis. quarter, last $XX XXXX the $XXX the we per as This of assets going attributable of slowdown. company Ambiental due made. This to $X.XX increase benefit Company at a compared Services industrial to million. income the I'm per $XXX to prior The unitholders provide $XX third segment, our for Brookfield was million unitholders of operations over quarter for Partners segments. the in year of by to million industrial unit. for net Business net reduced offset gains quarter financial segment. Net our gain partially sale the excludes third loss a of in million from now EBITDA last loss per year. attributable impact through or going or was quarter. the have FFO million that go company dispositions prior was EBITDA gains to result the provisions loss to unit

position. increasing that manufacturers first Latin auto to amount place in the aftermarket for and prior led a in performed the America. cycle. the battery to year season and a in exceeded battery to by quarter. winter million Our peak liquidity battery $XXX reached of The levels as for sales as sufficient year Advanced growth through replacement their well vehicles the the This Despite focused strong in in ensure in increased production In third start-stop Europe very $XXX aftermarket pandemic, higher strong increased year to the levels. to expenses million. sales on have industrial recover prior of production and are ended in driven been company EBITDA during the the are Clarios that electrification in segment quarter generated slower near rebound inventory company EBITDA well but prior quarter of Clarios North levels manage and demand was demand an compared is quarter by contributed managing America,

service overall GrafTech, quarter. in electrode on of by Moving for company steel challenges, to quarter Sales our focus cash global the business the network year on environment. has resilient during volume expansion the volumes quarter. in on contributed prices generated paying ongoing impact this remained will its current Despite million manufacturing BRK the were debt. current demand. generate and and in strong performance meaningful of customer continues the optimizing to GrafTech limited connections down decline the The flow EBITDA Ambiental with to its operations and producer. graphite and $XX impacted

generated which company segment, $XX Services Sagen million. of million. $XX reported Business our to of on EBITDA company EBITDA Moving

in rebound benefited deferrals defaults as in mortgage through for borrowers. were all and received states result public at was insurance continues where impacted quarter patient under government At safety business from agreements continuing costs prior quarter the a The result the mortgage agreements. levels Northern the Performance programs Beaches Healthscope, except supported activity demand a increased incur is restrictions and environment overall volumes New over of strong limited during and surgery for admissions have increased as driving and payments The year, we a other activity. Victoria, in results to elective these related exit the is where as saw the third patient additional health improvements positively measures. increased Hospital, in the lockdown private additional quarter. to by ramp-up to of current business increased state also

quarter, $XXX New million. pathology Healthscope sell will debt its at for agreed to the the go During Proceeds Zealand from Healthscope. towards business sale reduction

of performance have in during results Moving on quarter. result as in year. of normal services the U.K. $XX operations all the In government as increased quarter activity business. the in deals of the Multiplex Construction All near Victoria was state the to work impacted Strong regions the restrictions but construction government EBITDA levels. Australia earlier fluid to lifted, this the situation and across of as a project states Multiplex in the Multiplex the company returned our government all million. since improved to improved reported with were contributed restrictions pandemic. in operations remains other the Australia, impact

from quarter. plant segment continued savings results new the Moving servicing we generated the impact of initiatives the contributions EBITDA than projects. by partially plant operations were offset $XX quarter where business' lower during of Westinghouse positive cost Prior our benefited from Starting Infrastructure year ongoing $XXX higher company and the million on performance of of company Strong million. Services fund normal margins with result be generate reported reserves. liquidity to Westinghouse resilient EBITDA flow Westinghouse, significant plant well reversal cash the or support Westinghouse's targeted in performance for opportunities. range available of onetime future of to continues strong end the expect we BBU distributions extremely business the a within as to a our growth business. to EBITDA capitalized is to continues new free and to year and with for

our costs business company improved impact has improving, At scaffolding of ongoing workforce second The Moving in gradually towage align stable reduced BrandSafway levels portion which on with at $XX results. BrandSafway to sites its delayed strong of which levels its Activity million. results to U.S. and its contracted. and variable project has within EBITDA the Utilization to the operations. are nature Infrastructure activity be starts reported of solutions at BrandSafway allowed restrictions provider, despite customer shuttle are supporting Altera a as large continue quarter. tanker remains of the are utilization revenues since

units Altera levels. initiated preferred to notes are program During attractive the a quarter, repurchase outstanding at and trading which

$X.X quarter Turning and of corporate of of facility. to level securities ended the and liquidity, billion we liquidity at $X.X credit $XXX cash including the billion liquid undrawn million with approximately

within in provides the initiatives. ability capital liquidity our for use from will believe and fund with us from support well current And of repayment facilities, our monetization fund scale close comments operations. like operator that for over cash I'd turn future as the of this operations and call questions. from to of confident BBU as our working credit facilities growth We to existing and generate With remain size generated will the We our to businesses facilities growth. our operations acquisitions as the flexibility to scale bridge supports our on We our borrowings or both our larger of back and needs. the our support our use to

Operator

Dodge BMO Our comes first Instructions] from of question from line the Devin Markets. [Operator Capital

please. Your question

Devin Dodge

Thank Good everyone. you. morning

BBU number investors is get question, the around I look leverage. your So one on from

approach the to I have disruptions? us through my thoughts, that you flexibility to through own walk and market manage can leverage Now your have but you

Jaspreet Dehl

Jaspreet. to leverage. walk approach I'm it's through our Yes happy Hi to Devin,

leverage within of we aware, think each of So operations. I our think you're financing businesses our and as

recourse we is must BBU a service that's our the the back perspective term up view BBU. to each their don't any and stand have our a from businesses with over to of guarantees own on businesses So of of guarantees acquisitions that longer level finance sustainable that across from the businesses able place. And We in cross our leverage. own leverage debt be any or any

bridge level, -- size our IndoStar basis. on We which as today credit financed been the recapitalization of funding the BBU. Plus. scale capital facilities our up between those we've in have we as long-term on the four we of those business BrandSafway, stand-alone And funding that grown don't drawdowns Superior Cardone keeping grown, we've of overall permanent and is every a at at year The view launched since done facilities, leverage acquisitions So place drawdowns is want And it's of At this business BBU. really any we operations. have and has like have drawing facilities. corporate all our the that our size do those really has growth initiatives our been started think with

facility So level. we growth start our from of our today receive businesses monetize a we as it's and scale BBU and businesses fund really distributions like that to we've the acquisition or distributions to provide using we ongoing number at the BBU, got get of And larger some businesses as Westinghouse to as Clarios. distributions or well as

BBU that but that also it. If repay able and of them. of businesses the size to being We think we service scale able around and you very just only comfortable generate have feel to the we this the about not proceeds when will at being bridge monetize debt corporate for any those level,

Devin Dodge

high-yield versus seeing to terms interest were debt ago? you to but debt. markets debt were that Okay. overview. high-yield the give Can now the markets pretty a perspective, good That's that. I that sense you also year a us pandemic, what favorable to from issuers for think attached rates Thanks Prior the for how look a both

Cyrus Madon

today make very conducive abundance an specific that's there that comments? is and that. very system to Jaspreet, conducive to more the been of have Well, refinancing we've into overall stimulus the been markets deal debt with I of don't open an comment today. if making, advantage taking I'll you are and any know all But look financial pumped capital

Jaspreet Dehl

on agree with No, track volume just annual current is see Yes. been was focused to sure has we're, that market couple been because still has did able environment of so towards XXXX. breaking I and the set that what still record. volume in issuance U.S. the are to tracking high-yield these And refinancings considered normally markets. the more a break conducive maybe it's market. record all-time of for lot refinancing. widen to things. But in do aware the loan we Cyrus said And especially spreads on has over A being what of, -- spreads in other that a the well I'm kind you're healthy financings is

a of Cyrus availability. activity there's there's executing a transactions don't lot And us. said, So we around impediment lot of think any on for as

Devin Dodge

just of at Maybe I helpful. one That's comments rate think On at one. the might mentioned have you last within range. the the Okay. that run it Jaspreet in year, might be that targeted Westinghouse, your end

confirm remaining is end that Just what to what targeted Like of do could up guess Westinghouse? at -- can that? that to you upper I then And you the range? put

Jaspreet Dehl

doing extremely resilient on comment that want don't XXXX. range. I yes Denis of know, do is has you else business the we've navigated we're our target as terms in of year. some encountered So been challenges it And improvements? kind operational tracking this of It's well the what that confirming we've EBITDA within exceptionally to through performed

Denis Turcotte

to run stretch an stretch Sure. that internally it of appears to track thought When we spite we as which get a well plan, of on by we we achieve what what trend XXXX. was being we're ambition more that was in goal, the EBITDA referred $XXX rate line closed internal that. to million launched And to XXX/XX

negative In course businesses rate is run you incremental the look that $XXX rate all took that we're the when in today And addition, a run we versus EBITDA. offsets otherwise. over, tracking of if net really at at inflation trailing XX-month and of already space million

exceed COVID this that on we're to really induced book from issue, aside is track So order to underwriting. quarter-by-quarter adjustment the a

Devin Dodge

Thanks, good over. turn hear. And to you. I’ll Thank

Operator

Thank you.

from line comes the Ho from Desjardins Capital. Gary Our of next question

Your please. question

Gary Ho

good Thanks and morning.

Just much half maybe quarter. the strong to gauge can. first Any just if of would results pent-up get just first this contributed from comments Clarios on sustainability want on trying the quarter's to the in of this How one of I be I guess any results. to the QX an year the demand I if helpful. results there update

Jaspreet Dehl

Hi, Gary, I it's I mean, can. can off and start answer Jaspreet. Denis, Cyrus

quarter. keep strong very you I a our results. mind had in and XXXX Clarios QX remind will So just

year inventory costs write-up. our last the and price include purchase comparable to So related quarter higher did accounting

the in QX end So need with have you're volumes normalize when the the you rebounded We that been been the sales have prior do towards rebound and at that -- looking performance. strongly. saw in of quite to But year. quicker for quarter-over-quarter strong QX. volumes of aftermarket aside, line rebound impact the

the of sustainable high also driving So that PP&E with the additional I pandemic that we to the a and more equipment. the operations related is are exceptionally changes, on volumes costs business haven't will this we impact do kind incurring the business. like kind of shift seen And results mention that cleaning, dealing level is think quarter. this for

elevated next continue So we the that do impact expect quarter. some see to costs we'll into of

Gary Ho

question for perhaps then And next my I Cyrus. guess Okay.

it higher you Just whether changed capital might how where impact deployment and to capital? wondering marketplace potentially or on the U.S. just election monetization or decide your may in the connectivity may taxes decisions, not invest

Cyrus Madon

our decision-making, it as relates as it's going to deployment on capital We any relates impact to to monetizations. don't or have think it

Gary Ho

just might Okay. just the next recent Multiplex given impact how there? in And QX? comments impact Any that operations that on the Multiplex, then might how question U.K., restrictions in maybe

Cyrus Madon

Yes.

face economic in where today compared essential an substantially U.K. been in of service then has be the So shutdown. to construction end QX. has in continues it lockdowns the the of to and recovered beginning announced very since in And and QX was even Multiplex U.K. more of deemed recently

but less to it's say. costs is with some some would I increased running today, as running full far as more tilt or it restrictions reasonably So usual, well business compared the aware is quite with running we're

So, been we'll made of are and if to we have but aware wait restrictions haven't there further see any.

Gary Ho

the just block question through goes you Okay. Genworth XXX% versus mentioned And Sagen it can more a cap only owning differently what you of targets Can now? can on kind transaction or you efficiently my you elaborate any just with us? private taking you Can running transaction. control do better share then The structure. elaborate the last on

Cyrus Madon

Yes.

but So, -- but say would we to safe at don't capital specific typically deploy which in have have and would not efficient effectively looking targets would be more leverage. company. structure we're alternatives a some That not it more would typically leverage I a in you long-term public see

to So, to. strong needs have the regulatory that, requirements be -- of to obviously, done. we work we more within the to do business context there's very we But think have adhere

a So, exploring we're things. few different

Gary Ho

my Okay, it. great. questions. are Those Appreciate

Operator

Thank you.

Our line Geoff comes Kwan the next Capital. of question from from RBC

Your question please.

Geoff Kwan

good Hi, morning.

what largest take at plays Just when when you the at be say over upside But two what uncertainty you you three drivers look greatest them recognizing a next to future your of of year, the there's on would be think the that have the look EBITDA? how always the be company out. upside? investments would And the going or

Cyrus Madon

want -- take that. me Jaspreet you Geoff let while -- to thinking look Jaspreet Sure. about just

we back we overall. composure the businesses think and and working BBU that's of we're enhance believe ones. five Let to or one me all which have change But which of all don't feel magnitude earnings. very say there's we of upside have sit the on larger going We strongly all about EBITDA six probably to

Jaspreet Dehl

Yes.

Cyrus So, reiterate said. I what

and business. businesses single we have that operational are for talk the management public the teams We we're teams don't working every plans operating business are discussed really management on portfolio in team all things is company on are what our or to of We those our typically BBU, our working along that we're it But businesses executing for move the disclosures. with operations more larger about plans. our if focused needle going the

in we've About executed, has delever it bit accelerated now. a a it, business others. pandemic implementing think put little the a will of prong sale had I owned on plan the robust one about over operational Pathology business Healthscope, business. year improvements was pause which the initiatives a also but if And So, which pretty help around of We those some the of we've has the Healthscope.

months to some of expect refocus we the we the talked impact costs So, continued. that there's see able out we're Clarios think about don't the Denis million our and of the specifically because fact offsetting the pandemic. of we over business talked will XX year. $XXX working has that work XX hopefully we bottom-line improvements enhancements can this all the million We yet that of as on upside pandemic and that And be And are execute $XXX incurring on. these those of that should in related be and coming the of that about are do to execution beneficial. to stabilizes of additional next in business reengage a the lot that that

Clarios to of significant will the We've Westinghouse. cost and the has So, medium one a enhanced again continue at as to we've And team as we Westinghouse, those, things growth where over then normalize work done lot a the businesses of should done again, really continues see are four move there definitely always more the on to if that on ones on see there's be opportunities other focused we'll transformational and line say, the continuing term. top growth EBITDA initiatives. activities. those quite been for bit. We're execute the management I'd also but the also larger us. be on needle looking acquisitions. initiatives, tuck-in We've The to

Geoff Kwan

there's downturn? And color just during downturn? any last if you you've you underperforming carve-outs mentioned anywhere Okay. have financing reviewing you would question just any bought companies discussions How that can general, during the maybe those may securities would think And if have then companies I have securities been specific then Cyrus the my purchased since on these have of was many other you with in that companies public companies had and needs. that quarter

Cyrus Madon

Yes.

a they those So in. not get out very there reach. that them securities Not couple of are value sure anywhere keeps the or running we're with interested we'll if become in of particular may

great On that hand our if the we'll profit other on make investment a happens.

or back to are what it's may -- the category, there's they couple many may a say So not if in you're But they're to. -- happen. describe several there to hard on and to like And me decided for things in yes their came It front. I opportunities others. homes probably get mean that's that And from alluding bounced I'd back have the you how to region. back are every everybody M&A seeing quickly summer we seems work.

to normal. normally that's But down. mean up halt it of every really, really mean in all we and we I just came we in what in things opportunities them. are really things seeing picked I a not transaction, which picked slowed QX. up you it QX and transactions. on don't we're have because a and everywhere, announce sudden we're operate, a working we That's see. region on doesn't mean rest they assured, Now -- And working

don't We -- don't are. just they for don't we the reason because pull our decide to one meet another We threshold. just or trigger

up. picked has activity really So

Geoff Kwan

Thank great. you. Okay,

Operator

Capital. of next Priebe comes the Nick CIBC Our question from from line

Your question please.

Nick Priebe

commentary Multiplex and thanks. the of Okay, on performance Good U.K. the there. based the operations Appreciate morning.

I of for you support that be or change million. $XX to evolution approximately activity $XX last Just previously will that business? amount the required of million any think that has given update, the levels earmarked the estimate been you and there had the capital business since

Jaspreet Dehl

Hi Yes. Nick.

the team as year. capital specifically and Multiplex and any closely flow really just we're this to in provided haven't of fluidity U.K., you through the support with given working we quarter cash the to kind the But of monitoring in management kind market requirements. the So uncertainty alluded or

they're business the So and provided. range working as support we're need up some completing same had It's ends the if -- still needing capital. we in of some projects the that still

So there. changed nothing has

Nick Priebe

Okay.

Okay. second acquisition related That's helpful. just a Genworth. then investment And in to on the financing question

the level the investment of you is at the credit look given draw cash size fund the inference on amount would Just that corporate that of investment? exceeds to that corporate to facility there the

Jaspreet Dehl

right. Yes that's

on of $X.X got availability we've -- facilities. will credit We billion our

to that close we've close that next But the prior facility the half of line Unless will fund credit that expect we got kind the the in on to there's to happen on draw of or transaction. to look monetization we'd capacity first it other that. So events year.

Nick Priebe

the bridge quick the I of long-term as be activity it. intent used permanent more follow-up. source facilities Got funding. And then, of of as credit investment a corporate as necessarily a just to Okay. not understand facilitate a to

the curious I'm you on corporate a length I in question. in time, So this what level short-term up of general end debt just being source a position guess, the But that comfortable do that for be net financing? of a and leaning you at bit as acquisition of event a is would facility

Jaspreet Dehl

monetization businesses? have back and pay comfortable line? What timing don't quite we don't tell like, six profile? it of or monetization I with our the feel is line, way. that. have and focused couldn't a think like, pipeline really comfortable we don't I in distribution bridge on that in the draw comfortably you we we is really that we're on months, We we XX can around months what's we What Are the going that anything on

So there's long real no of kind would on how we date down. expiration something draw

Nick Priebe

Yes.

Okay

Cyrus Madon

and And as and we what we to we monetizations. with our that the we be debt that seeing have today that given next what comfortable. and potential We're might amount plan see time entirely level deploy what some we're the capital the stay in at for period have of we look could year very and -- comfortable and of plan

Nick Priebe

Yes.

it That’s for questions. taking me. the for enough. Fair Okay. Thanks

Operator

Thank you.

from of comes Our question Suisse. Crédit line next Kuske Andrew from the

Your question, please.

Andrew Kuske

fine Good look over of has and the dialogue the to other a of might seen really And up people the fall. have how now, of on back to question But around largely where in. probably activity bid the are the the you course is we're you just snap world? or mentioned there's from the world of you're Could so, thought app since Cyrus ramped has level where the May-June. bid-ask for what How you. The is of beginning give waves that's morning. flavor and economy on and changing year? just evolved changed if seeing a people the the expectations, conversations March as how areas second in April you and us come a the year wave COVID, period where in that back work. in In now flows. But seeing say everything we've Thank obviously,

Cyrus Madon

Yes.

very more industry. have of it get public and you our spread opened And other are varies have narrower. wide. have companies can today. many have to say, pickup companies they're you're across unless simply done, selling desperate in economies look bid-ask like there, you transaction spread sort economies the is that look, the is And up. been own directly businesses difficult a Buyers very generally. at don't pretty see by activity bid-ask generating recovered, because companies So have much board are markets, And or And something circumstances, shape, In you COVID. in confidence industries M&A have in if and and are the be companies feel the I'll bottom. up decent seeing impacted recovered, would profitability, head And sellers on it I'd say, volumes large by those the at

Andrew Kuske

that would overall on and that portfolio? helpful. about baseline of then, the maybe, Is you the a the torque returns that That's BBU composition How And the Eddie then, think maybe a your then basis? do composition to bit remainder businesses flows there some as of and you is overall that provide hit question, portfolio on a you think businesses desire? but return related about that about risk. them way pretty Okay. higher slightly a XX% more of really more potential, XX% being but the that number maybe think portfolio cash own, Steady bit you And a level

Cyrus Madon

Look, for I earnings generally we fine, them just plus them. going years are NAV have just probably bit over to I can substantial. of is as we growth needle. be businesses potential to And the BBU be, would three want describe them up portfolio, businesses very they there where all torque to and they're our if two, they'll the And move get other of would next and not that agree smaller the resilient but XX%, the the to a fair XX% strong

Andrew Kuske

I Finally can. if

economic existing relates as for at think it Just businesses franchises you've assumptions? How add-on the businesses. to with you to And at clearly Or that looking enhancing it's that one you're returns. overall some about doing really add-on business? on add-on do look actually when do impact it question how that the But future. added-on of your your you're impact economics got if the stand-alone sale or the whether business a in trade now an underwriting you does IPO right that of

Cyrus Madon

the or these We Obviously are we just synergies. bolt-ons looking at have benefit add-ons stand-alone of economics. with

we the for So But to of we look create that that's lot have. particular they it. at tend any value incremental a business way

Andrew Kuske

Okay. you. Thank

Operator

the And question you. Merer Thank final our from today of Rupert line for comes National Bank. from

Your question, please.

Rupert Merer

Hi, good morning.

into risks wave on think your As we they think pandemic, little a March. this? imagine second some here are And control? But in around But regional. about that quite how your about there than to your should move were should is all we operations probably You operations? better headwinds impact are of positioned How are I potential a of we us of gave color Multiplex.

Cyrus Madon

I couple for do businesses a to of of period. But see ones really period short there the time. for time, you'll a over of always is Well, encourage a have while was think did what just it larger I slow performed at our very And risks of you our are down period control. how side short nine-month very would look a

businesses call do services. essential essential all So rolling short very The certainly and lockdowns a our larger let's lift if because going of of Clarios and our battery. virtually businesses are without providing are to slowdowns, it's can't or there be it very all products very world

deliver road on able be needs possible. whether nuclear world car capacity mean every and being And COVID the imagine plants to just anything to not goods power hospital need Australia And needs the the Just or it's for refilled. world it's else. not truck I around

down. they can't So shut just

think that's So should about it. the way you

Rupert Merer

talk the great. your your then can business you Sagen Okay, and plans on color there? plans after internationally? some for And that to updates Any completing secondly, about gave you grow acquisition,

Cyrus Madon

Yes.

point. that our at to turned this haven't attention We

Rupert Merer

there. very right, Thank leave good. All it I’ll you.

Operator

Thank to like does the you. hand today's program. the This remarks. question-and-answer conclude I'd Cyrus further back to of for any Madon program session

Cyrus Madon

speaking Thank joining your quarter. you next time us. you for forward look with and Appreciate to

Operator

ladies in today's for This you, conference. your program. participation does and gentlemen Thank conclude the

day. now disconnect. You Good may

Brookfield Business Partners (BBU) 3 Nov 202020 Q3 Earnings call transcript