Brookfield Asset Management Announces Strong Second Quarter Results

Aug 09, 2023

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^For^the^periods^ended^June³⁰	Three Months Ended						Twelve Months Ended
^{(US$ millions, except per share amounts)}		2023			2022			2023			2022
Fee-Related Earnings²	$	548		$	516		$	2,194		$	1,975
Add back: equity-based compensation costs and other income³		47			16			150			96
Less: cash taxes		(68	)		(21	)		(161	)		(75	)
Distributable Earnings²	$	527		$	511		$	2,183		$	1,996

Fee-related earnings per share	$	0.34		$	0.32		$	1.34		$	1.21
Distributable earnings per share	$	0.32		$	0.31		$	1.33		$	1.22

Net income attributable to Brookfield Asset Management	$	455		$	668		$	1,870		$	2,026

^{See endnotes}

End Notes
^1.	^{Reflects full period results unless otherwise noted on a 100% basis for Brookfield Asset Management, being Brookfield Asset Management ULC and its subsidiaries, including its share of the asset management activities of partly owned subsidiaries.}
^2.	^{See Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings on page 6 and Non-GAAP and Performance Measures section on page 8.}
^3.	^{Equity-based compensation costs and other income includes Brookfield Asset Management's portion of partly owned subsidiaries investment income, realized carried interest, and other income.}

Brookfield Asset Management Ltd. Statement of Financial Position

^Unaudited ^{As at} ^{(US$ millions)}	June 30 2023		December 31 2022
Assets
Cash and cash equivalents	$	12	$	1
Investments		2,305		2,378
Due from affiliates		810		782
Other assets		41		—
Total Assets	$	3,168	$	3,161

Liabilities
Accounts payable and other	$	766	$	781
Due to affiliates		168		3
Total Liabilities		934		784

Equity
Total Equity		2,234		2,377
Total Liabilities and Equity	$	3,168	$	3,161

Brookfield Asset Management Ltd. Statement of Operating Results

^Unaudited ^For^the^period^ended^June³⁰	Three Months Ended
^{(US$ millions, except per share amounts)}		2023

Equity accounted income	$	114
Compensation and other expenses		(5	)
Net Income	$	109

Net income per share of common stock
Diluted	$	0.28
Basic	$	0.28

Brookfield Asset Management Statement of Financial Position

^Unaudited
^{As at}		June 30		December 31
^{(US$ millions)}		2023		2022
Assets
Cash and cash equivalents	$	2,918	$	3,545
Accounts receivable and other		510		429
Investments		7,364		6,877
Due from affiliates		2,129		2,121
Deferred income tax assets and other assets		1,139		1,115
Total Assets	$	14,060	$	14,087

Liabilities
Accounts payable and other	$	1,685	$	1,842
Due to affiliates		890		811
Deferred income tax liabilities and other		2,047		1,828
		4,622		4,481
Equity
Total Equity		9,438		9,606

Total Liabilities, and Common Equity	$	14,060	$	14,087


Brookfield Asset Management Statement of Operating Results

^Unaudited ^For^{the periods ended June 30}	Three Months Ended
^{(US$ millions, except per share amounts)}		2023			2022
Revenues
Incentive distribution and management fee revenues	$	770		$	665
Carried interest income net of amounts attributable to Corporation		54			—
Other revenue		161			259
Total Revenues		985			924

Expenses
Compensation, operating, and general and administrative expenses		(348	)		(223	)
Interest expense		(5	)		(43	)
Total Expenses		(353	)		(266	)
Other income, net		75			251
Share of income from equity accounted investments		29			87
Income Before Taxes		736			996
Income tax expense		(156	)		(162	)
Net Income	$	580		$	834

Net income attributable to:
Brookfield Asset Management	$	455		$	668
Brookfield Corporation		125			166
Net income per share		580			834
Diluted	$	0.28		$	0.41
Basic	$	0.28		$	0.41

^1.	^{This adjustment removes the impact of income tax provisions (benefit) on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of our asset management business.}
^2.	^{This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings.}
^3.	^{These adjustments remove unrealized carried interest allocations and the associated compensation expense, which are excluded from Fee-Related Earnings as these items are unrealized in nature.}
^4.	^{These adjustments remove other income and expenses associated with non-cash fair value changes and remove interest and charges paid or received related to related party loans.}
^5.	^{This adjustment adds back other revenues earned that are non-cash in nature.}
^6.	^{These adjustments remove our share of partly owned subsidiaries’ earnings, including items 1) to 5) above and include its share of partly owned subsidiaries’ Fee-Related Earnings.}
^7.	^{This item adds back compensation costs that will be borne by affiliates and are non-cash in nature.}
^8.	^{This adjustment adds base management fees earned from funds that are eliminated upon consolidation and other items.}
^9.	^{Represents the impact of cash taxes paid by the business.}
^10.	^{This adjustment adds back equity-based compensation and other income associated with the Company's portion of partly owned subsidiaries’ investment income, realized carried interest and other income and other items.}

Communications & Media: Kerrie McHugh Hayes Tel: (212) 618-3469 Email: [email protected]	Investor Relations: Jason Fooks Tel: (866) 989-0311 Email: [email protected]