BBU - Earnings call transcript Q4 2021 | Brookfield Business Partners L.P.

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Operator

Welcome to the Brookfield Business Partners Fourth Quarter 2021 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 over to Alan Fleming, Senior Vice President of Investor Relations. Mr. ahead, go Please Fleming.

Alan Fleming

thank and you, morning operator. Good

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

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

business our on is Chief and the call Jaspreet Chief I to review call your pass then Officer; today with the our update over results. finish financial Madon, me questions. Officer; Joining provide turn Operating operations I’ll Cyrus. Denis activities. the on Cyrus available business Jaspreet Denis Executive us Cyrus call And over will our Turcotte, will give Financial to to of will and Chief the to then an an We’ll first be our update Dehl, that, take with recent on Officer.

Cyrus Madon

from $X.X six Thanks we of Thanks capital leading generated $X us today. of call from billion initiatives. the billion we very proceeds for capital, and for was Alan. our really recycling a of high about everyone. quality on XXXX busy coming invested acquire joining that year morning BBU businesses Good to us, billion market about $X

equity capital which In addition, BBU preferred Brookfield Asset $X to long-term Management recently strengthens of position. our committed further liquidity billion

existing to the on rate performance billion our operations $X created by when year. $XXX has for a year $X.X XXXX. million the up from with than of driven the EBITDA annually We now we EBITDA basis, adjusted prior are in increased increase really of increased billion, run our in over BBU the Adjusted more operations. Annual pleased XX% to performance

value growth creation smaller investment Dennis also global premium our footprint capital. acquire we increase to Cupa organic the businesses our non-discretionary on scale we've we higher strong cash acquisitions. our services, Group, a returns but what Each on Modulaire our Since of large talk businesses slate products. strengthen acquisitions we business and and a long stability. acquisition support on also plans to at a doing Cupa quality for coming operations in technology the reached generate of business is scale closed leading record agreement As position, given growth leading should by Last our months. each profile evolved a and yields of track and our business in footprint. in to strong cash past We're and is a games market us to demand, the early the fortunate what we've believe market will cash leading of and has term has acquired strong their implementing This will year through larger will we're reasonable price and growth we DexKo or generate and consistent week, grown, high have track lottery the either that Europe close replacement provide about will more of last these quality, of market stages potential capital. provider scientific exceptional business. Group for update, We're our value roofing has acquired supported We're of businesses our the over a global on continued our driven the focus returns. a be an leader the to Global corporations, later, to

pay distributions can contribute our million about BBU levels down be are debt, generating cash in operations to fund support business are today. generated growth our of cash new acquisition that distributions quarter, to growth, $XXX past up These our This to to In BBU. activities. should or support flows operations growth to flows substantial the used recurring addition to our

Towards paid $XXX business, by business in million. funded our dividend the cash, with insurer additional Residential was excess distribute we The share hope a end over our which to cash excess Mortgage Canadian million of the $XXX through the year, operate to time. continues dividends

to about of our services nuclear addition, flow. $XXX business our years, paid million technology In was line cash dividend In continues this $XXX operation million. generate prior with year-end, strong share

gaming million operations entertainment also Canadian a us and dividend. paid our addition, $XX In

our our profile within evolved, of the to value build operations. As business has continued we've also

of the past per creation the a of prices, of reasonable a at this their Most at businesses years. compound As unit enhancing by value has acquiring annual and result, achieved high performance. rate been five our increased has business quality over intrinsic XX% value

As we per business how about our we increase. grow, value intrinsic today. our continue continue will also to expect excited We're unit to positioned is

we're liquidity, weeks. which recent Our integrating completing paired to do surface in strong, sheet our existing hope operations our balance to providing the we initiatives accelerating spin focused growing our operations, are and in is entity, acquisitions, corporate the sources value of on of out our coming

I'm with it Denis. over that, to to hand So going

Denis Turcotte

business how this systematic of longer morning, large-scale ground to to investment continue in Thanks, in and globally support technology is enhance each wanted in capabilities, at SMRs, to globally underlying storage provides the strengthen operations. unlock With complete to we year have team, securing have build presence the approach wide over year market we of generation At its continues scaled to to size ensure flows. its digital team maintain and the Clarios, product, a services position XX value range consistently medium nuclear of and with An few leadership technology its to add-on supported people our differentiator management the through Cyrus. ability value a reactors half initiatives and this our practice. cash and ongoing operations markets. annualized of micro in our to and broaden our modular technology savings. to operations, teams in new with hands-on offering, energy with to of a its working operation APXXXX. to Good Westinghouse power now on the highlights grow everyone. cost eVinci on value targeted adjacent execute business operations I our million we've three works advanced our over important on R&D during service its growth, the and a improving capabilities acquisitions working closely of approximately tremendous been customers efforts our term, of for to up reactors with We touch $XXX and small the leading simply management illustrate the our past the

organic improving In services Brazil addition, the a growth battery ago, our expectations in growth. Clarios' and the operation technologies at to position at and concessions capabilities, through led above At has business advanced several company’s of launch will to which and in forefront water positively effort compared automotive the doubled wastewater to concentrated electrification development impact strengthen we've of new our trends. pace are building years effectively customer management revenue project continue out which we and

products Brookfield supply consistent purchasing record its of with and the rebalancing year, recent also gaming chain driving operations. procurement Canadian plans acquisitions, our of implementing wanted a Working opened where working Europe. being through each are value team in more variances, strategy DexKo Its strong to value to we later gaps, manufacturers, some I of We've areas. to productivity, talk about leverage managed our supply scale facilities, purchasing has and equipment our applications. qualification plans North Woodbine facility at these initiatives, capabilities. open manufacturing optimize price drive to It Finally, operational and the and area In and operational correcting and and provider management with $X business improving systems platform, opportunities will manufacturing successfully DexKo a and growth, data during This which centralized programs. improve on to rationalization analytics its its and primarily leading trailer today challenges COVID-related businesses. and developed the redevelopment cost. very towable see engineering components our this footprint, by America management July, opportunities to a chain range to chassis, and venue is for year. including related targeting more allow delivery that we build develop of include only DexKo of in the track operational leverage With production of by with wide in efficiencies billion three for manufacturing of the main is track global and the and quality size for supplier expertise to to we're a pursuing Modulaire, have correcting integrated newly-redeveloped industry, distribution take introduced Pickering includes out to towable our entertainment the time axles, across appropriate, a

third M&A. The of area focus is

As has synergies. and by successful at mentioned, product on down core planned acquire acquisition we and the accretive markets support very reasonable similar Cyrus successful value and where we company's management and the through targeting businesses, been to in historically can acquisitions offering execution plan both multiples integration strategy value buy adjacent businesses

operating improvement drive business and space, expertise Moving growth, organic performance, leverage to main Brookfield's a Modulaire. and in Pacific. we this its areas; in to Building core, and plan Europe to leasing services this ESG, experience At is four growth in Asia off acquisitions. operational this meaningful

carbon employees, facilities, and cost, on customers. include us evolving program. plan initiatives Focusing services modular chain products optimizing growth of service help leveraging and value-added and commercial and manufacturing the safety strengthen ecosystem, space the quality. and company's margin the rollout requirements range times to company's competitiveness our network on light plan skills meet Brookfield by will support customer improve our performance. branches, improving broadening More the initiating our lean to focus Across development and We launching with assembly are reduced At and centralized initiatives high strategy, and lead offered customer the supply we footprint. the range our to manufacturing reduced the its reduce supporting via product margin for our procurement we to of expanding our sourcing training and XXX our

over support acquisitions product and new also service market And enhanced that, it Jaspreet. and into regions hand I'll to intend accretive Modulaire's We with growth expand to share through with to offerings. build

Jaspreet Dehl

and good Thanks everyone. morning, Denis

performance our to for or generated to results. services, increased billion earnings business XXXX Adjusted million, XXXX three improved Adjusted strong strong than results double billion $XXX to we from operations, adjusted compared across EBITDA each financial segments. noted, $XXX XXXX Cyrus $X.X $X.X with million. in we compared of generated As AEFO to In EBITDA XXXX. more of

of rates highs and normal. $XXX well record reached activity million residential EBITDA, default insurer Our below mortgage mortgage from remained that adjusted underwriting contributed benefiting that

surgical stable to adjusted contribute We housing in $XX during increase expect to once are in an Canadian financial strong strong, impact underlying price of remain and which million, Australia remained that moderate lockdowns at restrictions home for services hospitals are elective optimistic We're EBITDA the surgeries reported the will ongoing XXXX Healthcare on market year. in improvement Demand fundamentals over and our of impacting levels is but place, activity appreciation XXXX. activity despite activity restrictions restrictions lifted. which performance.

year. XXXX. Our the recovered strong execution reported of Australia. for Backlog the UK construction the business benefited project from and $X.X in $X.X billion end adjusted to in million increased billion significantly XXXX, from $XX and EBITDA of at Performance

to after-tax We $XXX from Moving included million $XXX electrode of XXXX on partial of segments. in $XXX to compared adjusted in improved to our graphite and $XXX in investment million EBITDA million the securities. sale for our of Adjusted XXXX. operations million, gains and generated EFO public industrial

The water of services Adjusted outage adjusted the end plant nearing of XX% our as EBITDA and despite initiatives. finally, operation to XXXX this is million segment reported XXXX reduced labor advanced Access Strong The in new million impact offset $XXX and projects from to and million demand reduced XXXX increased execution million. Brazil million as strong during our activity $XXX generating XXXX. $XXX for on benefited to is energy in some higher the to and adjusted $XXX our operations results ongoing network reported cost and and well contributed debt EBITDA equipment performed performed costs. aftermarket by management during on business EBITDA the Work XXXX. more completion in well in volumes of saving year. adjusted wastewater in generated $XXX levels EFO cash manufacturers down fall production XXXX storage volumes $XXX paid cost shortages. Growing impacted million. well flows infrastructure than Performance Performance continued compared Nuclear focus technology markets improved season, million. reflecting from higher and a quarter. Services and services for of compared of contributed auto original business activity adjusted of And $XX EBITDA Our in expansion. improving

fourth quarter its acquired in scaffolding Germany, Europe. market XXXX, a into new During provider the presence full-service in business which the markets end expands

oil Performance million. services price of profit-sharing operations offshore in reported customers. Our EBITDA the to the year from oil volumes of half tied production agreements $XXX second adjusted of benefited and

liquidity. We of corporate to the with ended turning year $X.X billion liquidity. Now

Just future recently, X% fund which Brookfield perpetual agreed activities Management, liquidity be unitholder, $X and to they billion our for our majority further us our to subscribe Asset enhances available to of arise. securities will preferred as to sponsor equity growth up

note to I close, wanted around ESG I briefly of our communication efforts programs. continued Before our

recently practices This inaugural aligned relevant on is prepared initiatives ESG and strong the we our our on the operator focus published operations ongoing call highlights that with that, business report I'd with and like an our questions. and available on committed are for back to within to report. website. comments And out over commitment, ESG close ESG We and our turn

Operator

[Operator Instructions].

with Markets. Capital Our RBC comes Geoff from first question Kwan

Geoffrey Kwan

My kind morning. in on good upside of there was little a first about of how Altera. talked bit The improvements Hi, question given supplement prices. oil was

in Just demand you of upside potential and the pricing actual also was this in of much oil -- quantify kind the Altera more for the markets of how strength can much in help may but services provides? in terms wondering how for the then does participate of that could broadly, business better terms how

Denis Turcotte

longer. try in and here. maybe Denis our more I'd with would short to medium clearly, respond and least I Well, extract promoting the oil order that price of it's in -- in it where to sorry, respond it’s extract it's very always reverse term, good the customers is, for a environment, to at

that the So welcome to tailwind a as we medium run. in see short

not As questions I type ability volatile of wanting the of you operations always, And anything an in two above far are generate. And of you amount it. false two of incremental the sense of as we give to really it though first suggestive of again, wouldn't that could are sense a that, forecast category. forward that responding probably to that in a your but there EBITDA want guidance incremental to to plan business company's on be give is

Geoffrey Kwan

Okay.

you kind in terms talk acquisition, what was of you Cupa how the On are of the to thesis able to value? plan of kind about generate

Denis Turcotte

source such low Well, yields automation there of the materials, we product improve in are probably is has run yields. from of knows techniques that Having we he's run worked think some actual the end we've of and processing entrepreneur. as actually can operationally. at the with because them, it and think see you quite noticed this look are a individual product. to a that, -- We to technology high-quality couple business, finished when business commercially areas been by we've how demonstrated in said both Cupa. This We exceptional the

a and can think grow, although to supply growth. We of improving he's product that. them is up help track what demonstrated global premium is incremental secure opportunities see great strengthen we already locked this we more acquisition and of by some company, also this record see upon XX% supply We

Geoffrey Kwan

but within it kind the a ball, your as that to over market the monetizing, active potential your to portfolio? question always you in obviously, past to kind investments monetize right and new little active making of bit thanks. take Okay, they last A be my BBU very the of you it's assets look has do on buying predict, just hard less how been And at conditions going see now year. crystal know

Cyrus Madon

here. great Hey is Look it Jeff, Cyrus question. a

benefit ago -- is I look ago the think a say, even the actually technology-oriented And appears bit was think was we interest we a value. for from a now the ironically to as monetize environment months down technology-oriented that road. I'll some us. be, investor or to quite what better pivot should to There year it things than in growth six from us

Geoffrey Kwan

you. thank Okay,

Operator

Capital Dodge Devin BMO next Markets. comes Our from with question

Devin Dodge

to on agreement wanted I potential for started Thanks. with the process. BAM get the

thought the the this adding maybe such some walk or credit the considered through process you why under could as versus the public the other equity can have Just accessing right was of that options for capacity facility us you or markets? prep approach

Cyrus Madon

Devin, Look to draw done Yes. the flexibility. gives here it we when We us nice about we've what draw want is thing it it. maximum

it equity of sitting we majority with in alternatives just various thought of don't Obviously, context is reasonable sponsor support cost and cost We there considered our it that idle our and shows drawn capital. have a and And the of the drag the no negative have market. here. there's owner. to pricing we So from

and So for is equity we asset But instance a the all it's perpetual. It's otherwise, come for raise down those BBU redeemable an doesn't an the due. thought great financing reasons, it in this road. or of sale

So great outcome for it's us. a

Devin Dodge

that. for Thanks Okay.

like to expand So It terms growth for to of work? there. there's building speak opportunities where maybe talent you to to environmental the and more Can base been are of you over concerted of type division switching go just seems business effort gears part the after that this Westinghouse. a in services the of the

Denis Turcotte

have think, as we significant well as here, it Denis do both Denis That's that in now. growth position. that opportunities arrived Shaker as hired was We We're area. here. been out opportunity, He figuring organizational expand Fragmin, We capabilities correct. to President how also -- America months Sam tremendous this very that's area at Europe. looking about restructure. North with he, some to acquisition I with in to sorry, And in through been focused record Yes, -- strategically comes he's nine CEO, some see domestically space. with at with recently there he's a division. an of since track changes our And made Patrick as us, along

a and of feel the team focus, and attention we area an it's we getting So good about lot have in really place.

Devin Dodge

XXXX is about maybe Ember or the Okay, update this gas in natural potential book Can seems the XXXX prices for versus or we XXXX. could should you very last least be or in us strength frame the a hedge be how one, benefit business? general for a name don't Resources, talk one year but that. look, looks just thanks this at And perhaps maybe on just a it often, like

Jaspreet Dehl

is and take Cyrus to and add this hey, that I'll Jaspreet Yes, can it.

So there's at operation Ember. great upside as dependent really you've with noted, gas prices mean, a gas but tremendous eco natural pricing. a profitability and on it's natural I on

that for gas So positive in been of and prices hedging of the make very We've on just we're the appropriately that to the been kind environment, given current haven't over very sure changed last where mindful number approach. natural our Ember. it's years, we gas, exposure have

we've XXXX. half cash Ember about, this XX% flow for it, of all, see So at generation. and all But I hedged see improved the call year got to in for exposure gas year our free the significantly we and profitability after XX% natural should about

Now we'll period probably tailwinds use a so. that near after for business there's kind the term, this cash business, of flow of to delever time definitely in the but quite

Devin Dodge

will over. I that. turn for thanks Okay, it

Operator

from comes Gary with Our Desjardins next question Ho Capital.

Gary Ho

the is for Maybe first morning. question Jaspreet. Good Great.

basis have of Just impacts any cost impacts looking sensitivities or point you how things, out your that on cash the looking rates. XX a remind of XX higher you the or run side move, kind financing on how us out? flows Can just that

Jaspreet Dehl

great Yeah, the question environment. given a no, current that’s just

volatility been businesses. and on have rate all very the and rates our been with focused of portfolio we exposure So, working in impact for interest of

thing of few a manage say companies. within just I'd rate our the impact refinancing kind done of first is things we've movements. interest So to the

that's [ph] did at in lower operations. and rate that's then run basis entertainment and rates. a I'd business. at again a XXXX annual say, in refinancing And So couple repricing geared in One we share for not And million on of consolidated I Similarly, know Kona of all Westinghouse recently, our and the these then our XXXX. refinancing total. locking the overall, most the probably in savings were $XX Clarios at at that's about towards

we've thing that sure other making mindful very The grade of exposure. hedging been is we're floating

businesses of couple debt And At and is our exposure the rate $XXX in the about million where there's where related of about we're down to today, hedged. debt. down So close Clarios, year is piece really either to floating delevering. of book that's we're a other we this unhedged businesses XX% paying paid

in Brazil not hedging got But cost The hedged, not a strong is that. it's of protection. maturities like XX% approximately kind book and of of five-year economical where X.X% to debt which we're hedging overall provides So our long outside And maturity. hedge. that, we've we're today just the of not is average

we're hedging portfolio going mindful So the good we've we're be rates, that making to got protection within rising against moving rates. sure and forward,

that's probably million term at saw raised bonds and cost rates this at the had for morning we gaming unsecured less raised in and of billion loans. about X%. And favorable $XXX that financing $X.X we scientific a You was than balance the in then that

still we're of with very so to financing execute our able rates good outcome. pleased at that kind quite So

Gary Ho

And just fixed remind is the how much versus Jaspreet, of can total floating debt your rate, floating? us you

Jaspreet Dehl

fixed floating the hedging where today, debt About done on of of a that we've plus rate is XX% all rate is that XX% fixed we've and combination got exposure.

Gary Ho

Okay. Got it.

talent. remarks, a my their that you talk seeing? hear thoughts market, helpful. kind that mentioned the prepared think of you're -- of being impact one, needing any others about the maybe BrandSafway all in on most, businesses brand wanted guess, Can of That's kind I companies I couple your these for this you're out seeing but then you I the comp question second Okay. just to comments to Denis. retain bump your inflationary And up to in

Denis Turcotte

Sure.

blanket it We The structure amount as logistics, all, permanent for labor, to as there's there. general logistics categories that across example, it's that on Coast delivery, talent what looking of pressure. pressure container the probably for, cost there transportation, that labor, we're $X,XXX, in varies in be I form cost materials, mean depending you're I'd whether all a our or businesses. cost is of and sense most example of again to year shipping commentary, say inflation as from increases XX things that's First see our pressure, of look the but containers. to great $X,XXX of is the ago, we U.S. believe, transitory containers an a in I ago prices, shipping see like the range. category side a Asia West degree The months you

peaked I think container seven down $X,XXX six now to a months ago. $XX,XXX They're they range. container around in the $X,XXX to

start So of in indicators what pressures you can beginning. solutions to as as root see the inflationary see of I leading those to those causes the

I Now around we of example. thing is see ton the same coil. for Steel good peak of, materials. Steel hot-rolled a off record pricing $X,XXX around a think,

down. Now down the yesterday, and in going although I've it that for it he around down, they're was company was hot and spoke is been steel business, I talking to with confidence to that stay $X,XXX band going there.

that. the importantly, margins macroeconomic see that we to and put maintain margins, able, time. I and There over determined root doing more across we're increases because I cause a to our not maintain required. are it's them these back -- increase things been to trend most those line of think prices we've to in wins our We're resetting So businesses, result, price us. think the things But and we have is customers as to understand are our

Gary Ho

what all or see they of put compression lag not? in in have increases, terms results some the or margin been we in those should And price

Denis Turcotte

people as of increase. out a general to again, you lag to nobody have see have and go because bit you Well, -- conversations comment, and have price a always a wants

that and help to relationships maintain have build customers time. understand with to them why, and your to you your working So takes

businesses, to lag in basis. we the are the our you're naturally results statements. businesses, seeing a occur financial those looking time But that for occurs cascade that on is So through results the our as inputs there if quarter-to-quarter

Gary Ho

early past One, then And businesses like side. kind if you think just over turnaround remove the on sense. know commodity to there. some some year. just And sneak there's some touch then in, two challenges I signs Cardone, moves. seeing that's one look a of makes the you of Altera I That to can of the mentioned I exposure want Okay. just more on

this opportune maybe could are? asset oil to monetize where an Now be that given prices time

Denis Turcotte

for business will management bring the our We we and mix a solid back they got plan. But will that's that rapidly it the driven I strategy They COVID up driven Cardone on team We're in higher got products continue focused commercial is have it to ahead turnaround no control, again, and think doubt just go organized Sure, confident not got that, miles We've very what properly, a increases put move encouraged and management see. by on product there would thought as and a we're guess, been it's adjust business. plan and challenging actually towards are we've place. something Having to properly, the improvements. to that of to we they can that's that, have semi haven't. we stable, margin, which said more those miles we're future-oriented, as it seeing executed I but more driven got still more and we've sized improve. miles got call properly, that that business really the to and surprise downside, it control, we frankly, the raw

utilization working provide price as improve definitely we balance As sheet macro some And execute we and at kind in Kowa in and the through, the see sharing looking bring in how all, working time on developed short optimistic on business model that in but manage We're team higher business, to management successful sector The benefit opportunities Australia. of been this feeling of and these customers the on to opportunities. the need couple to what's of of North to we're to of there. we're exploring everything. midterm and call working with asset company that. business if because is changes around very Altera, takes can FPSO utilization off equipment about more what are We saving asset-light Brazil and change to savings of to cost we those short a development. Sea midterm And in addition, cost that. in going optimize The securing has far the that company business the

Gary Ho

perfect. That’s Okay, comments. those for me. it Thanks for

Operator

question with Jaeme Gloyn next Bank. Our from National comes

Jaeme Gloyn

thanks. morning. Yeah, Good

is two various some has but there's track a like businesses are about excess any companies. from just capital, forward? here distributions other of nice what going of more question talk the Westinghouse like that Can building First there. its record some those distributions probably there have you're Sagen businesses and expecting some type the distributions some recurring might is would on then they I forward released and believe more Looks for you look for going

Cyrus Madon

Yes.

Cyrus can consistently cash So the years. free type we Westinghouse few we've seeing here. think think -- generate that the last of I been it's Look, Westinghouse

is company. that the pull for there business still a subject to of to quite time. And As in Sagen, yes, reserves out would expect regulatory obviously, the approval, bit we excess over of

Jaeme Gloyn

Kono distribution want that out It recurring And One that the some have more this type in nature? businesses businesses looked quarter, have but like any might call [ph] a that more profiles. to you other of

Cyrus Madon

cash do our look, we -- for And flow. be to lot pay of case chosen Yes, what have Clarius example. that one a generate that there of them, are would we've several so down. is in debt businesses

free would $XXX-plus think quite if is, we business. in this start the substantial any That $XXX-ish debt would company, that thing out right pulling decide may million to cash that we time, business seen the growth within all distributions it's do, think may have of which during year, we was to our the -- generation course, may of make, point we At to want investments for you subject BBU. million I be a down. decide paid regular of the and to

Jaeme Gloyn

Okay, great.

of at liquidity forma stands start still or sits been the terms on of around In as the least the active it company position XXXX. of here And actions, today, looks like the it it has billion $X.X pro the buyback all so. at

buybacks? to some stands So and it could pull the and the position today accelerate how buyback about as on that are you you thinking dam maybe liquidity

Cyrus Madon

been we've doing. what Well, look, we -- you've seen

facilities always financing to in proceeds buying. just has credit them. that when and with continue see continue been capital of place, down keep growing. And to course, our opportunities we don't units, we've from compelling And comfortable ample with And between the two we added position. we'll between ongoing investment flexibility certainly, put this distributions companies, our compelling posture companies monetization choose value we making in that We're road. Our very that see our when we've that, we'll need the our got the to from

Jaeme Gloyn

Thank Okay, very you great. much.

Operator

from Our Nick question with next Markets. CIBC Capital comes Priebe

Nikolaus Priebe

thanks. Yeah,

a with earnings the strong this underlying I start in out QX. bit That the to quarterly is be Westinghouse on what wanted bottom really of but from quarter. headline there variability investment from long question the there, think contribution as that Just a stood can out organic some understand how transient influences? top to more that you about of over expect or rate term, achieve like of growth these line you would we should strip

Denis Turcotte

here. Denis

everybody to just quarters some can versus defer that's basis previous seasonality customers for And I it because year-over-year sometimes comment work, pull in year. you etcetera. tend is a think on saw about think of natural the and important with the business, understand there first that QX to work Your managing this forward, we is what

far we a four overall three believe million when as $XXX business over of EBITDA to year bought business, we go said over period. through this as the we As time, would

are We there.

we updated also and business through that to this continue year year We everybody we EBITDA. ago $XXX annualized as could optimistic are of a year, that million drive a a about will growth bring we half

you move basis on very Again, we confident. remain strong team next you or have management can three the committed bring as and million going very two we through that the have an but a organic over this little remain incremental years. They in more company $XXX place. amounts get a forward, very, challenging, conviction imagine, we're As to

Nikolaus Priebe

thing I Okay. about to pipeline bolt-on acquisitions. more I talk And the could the wanted you about ask hoping was other little for was bit a

that with now bit Can us that tell those some you value DexKo and you strategy well. Westinghouse as creation of for investments? and at active contributing about a how more little see to been You've

Cyrus Madon

Sure. comments I'll Dennis, want add start It's Cyrus. on then you and if to specifics. Maybe

and stand-alone the all proposition can acquisitions. our cannot comes find business, value the Denis, in this these we buyer specifically. if business' that creation customers. of bolt-on when footprint improve opportunity look where the of often of we synergies and bulk And a that you really product improve about is make the of value know to where we drive don't we type I to want mix, talk can businesses, the the all improve the for For And

Denis Turcotte

synergies side. most the case, the also but think revenue that's absolutely the side, I on cost are and prevalent, on Well,

of when you For our that example, things imagine. the on that you confidence we to they customers can back franchise we've the with our in at bolted interacting kind if capability since so us, Westinghouse, incremental trust and have business, bring bought look we, with

huge I ago the able think As there embedded the incremental which, that I up are that team because and top way had three saw plan. a business jewel Rolls-Royce see acquisition higher none from products actually to growth we five that that of example folding a And year phenomenal business when reasons, kind of they've business value-added. for just And within of is aside and on seller weeks variety that they're a it organically acquisition. we to given that of in the or opportunity of the how margins and our a to services Again, grow get foundation line, that for to our the synergies created we're have in that just Westinghouse services, tell acquisition, natural recent now targeting incremental what of But is bring four the was with truly that the in as a they in a none current there. I just digital in the And was of think positioning. digital ours. forming you, and cash frankly, platform I meeting was I've that got is Cranberry I of underwritten is was demonstration

just think So when synergistic, about growth. on focused driving you really the are are line in typical we cash incrementally organic cost addition, that top savings

Cyrus Madon

letter, again. a number it's our acquirer acquisitions you since announced in we favorable of letter, flows we it's to our of of serial incremental about wrote in company and our very investment, our DexKo, which spoke mentioned That is expect acquisition company, the we in equity made And values sure. that cash at been for case driving value company Cyrus we highly a has Look, the about DexKo. in that

Nikolaus Priebe

you. That’s from pass That’s will I line. good color. Thank it the okay. me. Understood,

Operator

Dimitry comes Veritas. with Our from question next Khmelnitsky

Dimitry Khmelnitsky

taking my Hi, and for thanks questions.

to I'd about ask Sagen. is like question First

see sustainable, So a in particularly on as how and you have is it XXXX premium XXXX? in seen I whether XXXX as And income, remarkable growth wonder, sustainable in do well that being XXXX. written rising just

Jaspreet Dehl

add Denis Jaspreet. it's can Dimitry, I'll to and take Cyrus Hi then it. and that

right, XXXX record by is overall underwriting both market very saw is And and and been we view, and expect that underwriting activity extremely QX housing strong And well, is coming premiums Canada. new demand for We've look as we have forward, some supported in normalized. strong that, going normalize. you're years in XXXX seeing market So that the seen Sagen. we have activity seen new we're healthy, to as we in our

few has underwriting housing historically? probably think not term the that the levels Having the normal biggest more shortage is that, demand. going seen demand as to years and so But underwriting we of The and just we're there supply -- in seen do last is and it to the go two sustainable stabilize, to the not of level but normalize and with will back and expecting but is levels. the supply XXXX kind kind strong remain misbalance And XXXX of things on a they side. we've fundamentals, level, market said we're supportive piece level same still between housing of the long business expect more we that. a driving normalized So very

Dimitry Khmelnitsky

Okay, awesome, And BrandSafway. the question you. thank is and on other Healthscope

why QX EBITDA compared just as operations? for to I'm curious So those FFO declined in two

Jaspreet Dehl

type on FFO, pathology we which when Healthscope, that sold year FFO. would between sold a higher so QX FFO And business, in EBITDA last or similar on QX any FFO to the and and events unusual been and additive didn't and we have generated sale, EBITDA XXXX. business. a was gain our led we year, of included in This have other for gain between Yes, we

So of we and and see saw more the similar impact of a interest normal didn't you kind taxes. pickup,

taxes. On BrandSafway, think by Healthscope. driven I was that the So really differential is

what's think taxes. differential overall offline conversation have earnings an think that and the performance taxes. deeper was change the reason I in financial driving happy this performance, to give you higher the taxable So and But I for and and exact were year, go

Dimitry Khmelnitsky

And the Clarios. proportion advanced Could sales of us with you. then the Awesome, XXXX? as of a is question thank percentage revenue on update other you please battery for

Jaspreet Dehl

to a driven the the that's be advanced especially the a seeing have the in replacement cycle don't that the aftermarket business cars But off coming is the kind battery, and exact I of we're battery towards they're aftermarket. now of new driving the aftermarket, really especially had So the to percentage the top seeing that in advanced up demand seeing more of Dmitry. been in sales, And by demand of in very what strong. generation we're batteries that the replacement. advanced trend We're continues

volume the I shift for a definitely margin comp. percentage that's exact But and perspective positive don't from know the the been So of a business.

Dimitry Khmelnitsky

Yes, follow understood, And to questions the thanks asked. were that a on on up previous lot. then inflation, just

Just costs and curious sufficient they whether material whether far, to for offset implemented price increases thus lag? were higher normalizing the time after labor

Denis Turcotte

vast the cases, it of more In has than majority offset.

Dimitry Khmelnitsky

vessel one spoke asked this. I would Got redeployments you there's a more, to I has to lot. arrangements? it, are remember the obtain, trying already us been in I differ thanks kind details last prior of more can from those to you of contracts questions Altera. lot in wondering And about past wanted if then And you what about the and that how with just give the a question ask does was some practice, and what mean do

Denis Turcotte

differ is nature the requirement very our but contracts in the similar, Well, where of for are certainty. they

assets. a would renew tremendous ESG, it assumption put a opportunities And as the other be I they where assets, would think partial the individuals the a or that was there kind of and amount not to common since -- gone our and the would just life bought past of out. of through capital the these and of be exercised studying contract dynamics, our I'd into competitors on industry to consequences practice in -- them business, and/ industry renew that around asset shift these reposition that options the, we panned has seems that to would has say, general

we So recovery in now contractual returns. to relationships being incremental that and careful business have capital we the around any are forward, need put very certainty moving any we

Operator

next Weekes comes iA Markets. Matthew question from Our Capital with

Matthew Weekes

my taking for Thanks morning. question. Good

I'm owned all It distribution on The acquisition. number facilities like just a like the first estate there, centers, processing wondering things real owned? that. in if or facilities, it's of transaction there's if Cupa looks was there's an that

Cyrus Madon

a estate There's here. it's the mining primary real in it lot owns the it not -- a business. that's owned rights of Cyrus and the asset Obviously, there. owns, not There's that

Matthew Weekes

sustainability forward. ESG companies and exposure in positive acquiring the of trends looks trends considerations, another on builds going material, acquisition to of little what that is question we and just like Okay, with have that the thank transactions products. on which terms it And broad Modulaire, you. saw sort bit It more a natural

forward? pipeline looking the acquisitions the you're going of now, at right future Given expect this to continue trend do you opportunities be to in

Cyrus Madon

to as certainly a it's think trend, be will certainly Well, serious but something. to a so don't we're looking strong go it want at I consideration say a I whenever it's far consideration.

Matthew Weekes

trends outlook And demand Omicron go thank margins any strong Okay, here, forward we kind there, impact on might there marketing business? think I you is during lot businesses seeing side seeing are talked have the haven't broad wondering a the the what for you fuels today you. on the seen tailwinds the seeing just strong and of or we and business. retail quarter from what are that I distribution was you of one you're and road kind about the variant, mobility just trends as of

Jaspreet Dehl

it hi Jaspreet. is Yeah,

volume-driven the it it is supply the especially, side, business. at on business, a So is fuels road

the the some from wasn't the kind So did seen lockdowns quarter There as last some UK. It some substantial. of the and didn't and of we in impact in in quarters of impact and year. prior it a volumes was the QX have in But see we've Omicron substantial things.

been the the robust performing through And a and well. retail big has sustained broadly, in supply on oil say using stations strong is part that margins very focused margins profitability of this side. tailwinds, then But that there's decreased despite and I'd Canada on volumes. and business. through gas have the more higher business is Retail some been side, So on in overall, business And ESG-related production. cooking used biofuels fuel the tailwinds taking definitely the around

focused for that that expanding kind capacity we to sure production the expanding on we're of are the growth side and make and opportunity that So of business.

Matthew Weekes

me. Okay, thank that. you. on for Appreciate That’s you. everything Thank the commentary

Operator

the like question-and-answer session. closing call to today's remarks. concludes back for turn I'd That

Cyrus Madon

you quarter. for much to very you Thanks forward next talking to you. We look Thank participating. of all

Operator

This concludes Thank today's call. for participating. conference you

may disconnect. You now

Brookfield Business Partners (BBU) 4 Feb 222021 Q4 Earnings call transcript