Brookfield Business Partners LP (BBU) 2024 Q3 法說會逐字稿

Welcome to the Brookfield Business Partners third-quarter 2024 results conference call and webcast. (Operator Instructions) The conference is being recorded. (Operator Instructions)

歡迎參加 Brookfield Business Partners 2024 年第三季業績電話會議和網路廣播。（操作員指示）會議正在錄音。（操作員說明）

Now I would like to turn the conference over to Alan Fleming, Head of Investor Relations. Please go ahead, Mr. Fleming.

現在我想將會議交給投資者關係主管艾倫‧弗萊明 (Alan Fleming)。請繼續，弗萊明先生。

Thank you, operator, and good morning. Before we begin, I'd like to remind you that in responding to questions and talking about our growth initiatives and our financial and operating performance, we may make forward-looking statements. These statements are subject to known and unknown risks, and future results may differ materially. For further information on known risk factors, I encourage you to review our filings with the securities regulators in Canada and the US, which are both available on our website.

謝謝您，接線員，早安。在開始之前，我想提醒您，在回答問題並談論我們的成長計劃以及我們的財務和營運表現時，我們可能會做出前瞻性陳述。這些陳述面臨已知和未知的風險，未來的結果可能會產生重大差異。有關已知風險因素的更多信息，我建議您查看我們向加拿大和美國證券監管機構提交的文件，這些文件都可以在我們的網站上找到。

We'll begin the call today with a business update from Anuj Ranjan, our Chief Executive Officer. Anuj will then turn the call over to Adrian Letts, Head of our Business Operations team, to provide an update on a few of our strategic initiatives. We'll end the call with Jaspreet Dehl, Chief Financial Officer, who will review our financial performance for the quarter. After we finish our prepared remarks, the team will then be available to take your questions.

今天的電話會議首先由我們的執行長 Anuj Ranjan 介紹業務最新情況。然後，Anuj 將把電話轉給我們的業務營運團隊負責人 Adrian Letts，以提供我們一些策略舉措的最新資訊。我們將結束與財務長 Jaspreet Dehl 的通話，他將審查我們本季的財務表現。在我們完成準備好的演講後，團隊將可以回答您的問題。

And with that, I'd now like to pass the call over to Anuj.

現在我想把電話轉給阿努吉。

Thanks, Alan, and good morning, everybody. Thank you for joining us on the call today. We had a good quarter, and we're pleased with the progress that we're making across our business.

謝謝艾倫，大家早安。感謝您今天加入我們的電話會議。我們度過了一個不錯的季度，我們對整個業務的進展感到滿意。

Our financial results this quarter were very strong with adjusted EBITDA increasing to $844 million. This includes a significant value of credits that Clarios is entitled to receive under the Inflation Reduction Act, which is focused on enhancing domestic supply chain and promoting critical manufacturing in the United States. This gives us the ability to create an even stronger business in the US and look for additional growth opportunities for the company.

我們本季的財務表現非常強勁，調整後 EBITDA 增至 8.44 億美元。這包括 Clarios 根據《通貨膨脹減少法案》有權獲得的大量信貸，該法案的重點是加強國內供應鏈和促進美國的關鍵製造業。這使我們有能力在美國創造更強大的業務，並為公司尋找額外的成長機會。

We've also been busy setting the stage for the continued growth of our business. We closed our acquisition of Network International, which we plan to combine with our existing operation Magnati to create the market-leading digital payments business in the region. Adrian will speak more about this shortly.

我們也一直忙於為業務的持續成長奠定基礎。我們完成了對 Network International 的收購，並計劃將其與我們現有的 Magnati 業務合併，以創造該地區市場領先的數位支付業務。阿德里安很快就會對此進行更多討論。

Meanwhile, on the capital recycling front, we generated more than $350 million of proceeds from distributions and monetizations, including the recently announced sale of a significant portion of Altera. We are also very encouraged by the progress we are making on our monetization plans at Clarios and should be able to provide a further update soon.

同時，在資本回收方面，我們透過分銷和貨幣化獲得了超過 3.5 億美元的收益，其中包括最近宣佈出售 Altera 的很大一部分。我們也對 Clarios 在貨幣化計劃方面取得的進展感到非常鼓舞，並且應該能夠很快提供進一步的更新。

Stepping back, since launching BBU, we've invested about $9 billion alongside Brookfield's private equity business to acquire high-quality mission critical and market-leading businesses. Most of these are great compounders of value in their own right, and we're making them even better as we execute our improvement plans, leveraging our private equity playbook, which has been developed and honed over the past 25 years.

退一步來說，自推出 BBU 以來，我們與 Brookfield 的私募股權業務一起投資了約 90 億美元，以收購高品質的關鍵任務和市場領先的企業。其中大多數本身就是具有巨大價值的複合物，我們在執行改進計劃時，利用我們在過去 25 年中開發和磨練的私募股權策略，使它們變得更好。

By selling at the right time, we can realize strong returns and reinvest the capital to continue compounding value. We've had great success doing this as a public company, realizing over $6 billion of proceeds from the sale of 20 businesses delivering a 3 times multiple of our capital and generating an IRR of approximately 30%. This is an exceptional composite track record and we're only just getting started.

透過在正確的時間出售，我們可以實現豐厚的回報並將資本再投資以繼續實現複利價值。作為一家上市公司，我們在這方面取得了巨大成功，透過出售 20 家企業獲得了超過 60 億美元的收益，資本額是我們的 3 倍，內部收益率約為 30%。這是一項出色的綜合業績記錄，而我們才剛開始。

Half of the businesses we own today were acquired over just the last three years, which means there's still a lot of runway to go as we execute our improvement plans. Most of these operations are larger scale and higher quality than the businesses we've sold, which means that the distribution should be larger and the proceeds that will come back to us in the future when we sell these businesses will be even greater.

我們今天擁有的一半企業是在過去三年內收購的，這意味著我們在執行改進計劃時還有很長的路要走。這些業務大多比我們出售的業務規模更大、品質更高，這意味著分配應該更大，未來當我們出售這些業務時，回饋給我們的收益會更大。

While our trading prices increased nearly 70% since this time last year, our shares are still trading at a wide discount to intrinsic value. As rates continue to come down, our cash flows will grow, transaction activity will return and investors should resume value in our units on a fundamental basis. All of this is good for our business and should set the stage for further improvement in our trading performance as we continue to focus on compounding value for our shareholders.

儘管我們的交易價格自去年同期以來上漲了近 70%，但我們的股票交易價格仍較內在價值大幅折扣。隨著利率持續下降，我們的現金流將會成長，交易活動將會恢復，投資人應該從根本上恢復我們單位的價值。所有這些對我們的業務都有好處，並且隨著我們繼續專注於為股東創造複合價值，應該為進一步改善我們的交易績效奠定基礎。

Before I pass the call over to Adrian, I wanted to thank all of you who were able to join us in September at our Annual Investor Day. It was great to see so many familiar faces in the room and for anyone who is not able to join us, the webcast and materials are available on our website.

在我把電話轉給阿德里安之前，我想感謝所有能夠在 9 月參加我們的年度投資者日的人。很高興在房間裡看到這麼多熟悉的面孔，對於無法加入我們的人，可以在我們的網站上獲取網路廣播和材料。

And with that, I will now turn the call over to Adrian.

現在，我將把電話轉給阿德里安。

Thank you, Anuj, and good morning, everybody. It's great to be joining you this morning. As Anuj mentioned, we've made some great progress in our business over the past few months, including closing the acquisition of Network International and signing an agreement to sell Altera's shuttle tanker operations. Each provide an insight into our approach to value creation, which I thought I'd spend some time talking about today.

謝謝你，阿努吉，大家早安。很高興今天早上加入你們。正如 Anuj 所提到的，過去幾個月我們的業務取得了一些重大進展，包括完成對 Network International 的收購以及簽署出售 Altera 穿梭油輪業務的協議。每一個都提供了對我們價值創造方法的見解，我想我今天應該花一些時間來討論這一點。

So let's start with our acquisition of Network International. As a reminder, Network International is the market-leading digital payment services provider in the Middle East, servicing over 150,000 merchants, managing 18 million credit and debit cards on behalf of leading financial institutions and processing over $50 billion of payments annually.

讓我們從收購 Network International 開始。需要提醒的是，Network International 是中東市場領先的數位支付服務供應商，為超過 15 萬家商家提供服務，代表領先的金融機構管理 1,800 萬張信用卡和金融卡，每年處理超過 500 億美元的付款。

It's an incredible business, providing a mission-critical technology that allows both governments and merchants to securely process both on and off-line payments, thereby forming the backbone of the financial economies where it operates.

這是一項令人難以置信的業務，提供了一項關鍵任務技術，使政府和商家能夠安全地處理線上和線下支付，從而構成其營運所在金融經濟的支柱。

Network is also benefiting from massive secular tailwinds. Both revenue and profit have grown at an annual rate of more than 15% over the past two years, driven by underlying demographic growth in the region and the continuous shift from cash to card and online payments.

網路也受益於巨大的長期順風。過去兩年，在該地區人口成長以及從現金支付向銀行卡支付和線上支付的持續轉變的推動下，收入和利潤的年增長率均超過 15%。

Despite this, the business was never really well understood as a publicly listed Middle Eastern company on the London Stock Exchange, and the dislocation in the public price allowed us to acquire it for what we felt was very good value. But what also made this acquisition particularly interesting for us is that we already own Magnati, the second largest payment processor in the region.

儘管如此，作為一家在倫敦證券交易所上市的中東公司，該業務從未得到很好的理解，而公開價格的錯位使我們能夠以我們認為非常有價值的價格收購它。但讓這次收購對我們來說特別有趣的是，我們已經擁有該地區第二大支付處理商 Magnati。

Combining these two businesses creates a champion in the high-growth payment solution space. The combined platform will have unmatched scale and limited customer overlap. And with the majority of payment volume in the region now going through our pipes, we will have a tremendous data and information advantage, which will allow us to generate insights to improve both the product offering, but also the customer experience.

這兩項業務的結合創造了高成長支付解決方案領域的冠軍。合併後的平台將擁有無與倫比的規模和有限的客戶重疊。由於該地區的大部分支付量現在都透過我們的管道進行，我們將擁有巨大的數據和資訊優勢，這將使我們能夠產生洞察力，以改善產品供應和客戶體驗。

It's a tremendously exciting opportunity for us and the integration plans are progressing well. We've stood up a dedicated transformation office overseeing key work streams and have secured some recent wins across revenue, cost and CapEx optimization synergies. Our ability to execute complex carve-outs like what we did with Magnati and drive large-scale transformation makes us a partner of choice in these types of situations.

這對我們來說是一個非常令人興奮的機會，整合計畫進展順利。我們設立了專門的轉型辦公室來監督關鍵工作流程，並在收入、成本和資本支出優化協同效應方面取得了近期的一些成果。我們有能力執行複雜的剝離（就像我們對 Magnati 所做的那樣）並推動大規模轉型，這使我們成為此類情況下的首選合作夥伴。

Turning to Altera, which as you know, has been one of our tougher situations over the past several years, it's in these types of instances where our hands-on approach to value creation serves us exceptionally well, taking a longer-term view doubling down at the bottom and rolling up our sleeves to maximize our returns.

談到Altera，正如您所知，過去幾年來，Altera 一直是我們面臨的最困難的情況之一，正是在這種情況下，我們實踐價值創造的方法對我們非常有幫助，從更長遠的角度來看，我們加倍努力。

It's been nearly two years since Altera emerged from a process aimed at simplifying the capital structure and giving the business more flexibility to execute on its long-term growth plans. We've provided the business with additional capital to deleverage the balance sheet and put in place a comprehensive operating plan to improve performance and reposition operations.

自從Altera完成旨在簡化資本結構並賦予業務更大靈活性以執行其長期成長計畫的流程以來，已經過去近兩年了。我們為該企業提供了額外的資本以去槓桿化資產負債表，並制定了全面的營運計劃以提高績效並重新定位營運。

Since then, the outlook for Altera has dramatically improved, driven by recovering customer sentiment, a renewed focus on offshore field developments and the benefits of an inflationary environment, which has increased the value of Altera's assets and allowed it to contract at higher prices.

此後，在客戶信心恢復、對海上油田開發的重新關注以及通貨膨脹環境的好處的推動下，Altera 的前景顯著改善，這增加了 Altera 資產的價值並使其能夠以更高的價格收縮。

On the back of this, last year, the business entered into long-term contracts for the redeployment of two floating production storage and offloading vessels on new field developments providing increased certainty to its longer-term earnings and cash flow. It also successfully completed a debt refinancing, which lowered the cost of its borrowings and has continued divesting non-core assets to pay down debt.

在此背景下，去年，該公司簽訂了長期合同，在新油田開發項目上重新部署兩艘浮式生產儲卸船，為其長期盈利和現金流提供了更大的確定性。它還成功完成了債務再融資，降低了借款成本，並繼續剝離非核心資產以償還債務。

With the business on a much better footing today, just this week, we reached an agreement to sell Altera's shuttle tanker operations for total consideration of about $1.9 billion. BBU's share of net proceeds is expected to be $265 million.

隨著今天的業務基礎好得多，就在本週，我們達成協議，以約 19 億美元的總價出售 Altera 的穿梭油輪業務。基頻單元淨收益份額預計為 2.65 億美元。

This is an excellent outcome, and none of this would have been possible two years ago but by being patient and leaning into our operational capabilities, we are able to support the business and find a path to maximize value as we continue working towards realizing additional proceeds from the sale of other units of the business.

這是一個很好的結果，這一切在兩年前都是不可能的，但透過耐心並依靠我們的營運能力，我們能夠支持業務並找到一條實現價值最大化的途徑，同時我們繼續努力實現額外收益來自出售其他業務單位。

With that, I'll hand it over to Jaspreet for a review of the financial performance in the quarter.

這樣，我將把它交給 Jaspreet 來審查本季的財務表現。

Thanks, Adrian, and good morning, everyone. Third quarter adjusted EBITDA was $844 million compared to $655 million in the prior year. Current period results included a $296 million benefit recorded at our advanced energy storage operations. These benefits are production credits for the 12 months ended September 30, 2024, which the business is entitled to claim under the US Inflation Reduction Act and the applicable regulations which were finalized last month.

謝謝阿德里安，大家早安。第三季調整後 EBITDA 為 8.44 億美元，去年同期為 6.55 億美元。本期業績包括我們先進的儲能業務記錄的 2.96 億美元收益。這些福利是截至 2024 年 9 月 30 日的 12 個月的生產信用，企業有權根據美國通貨膨脹減少法案和上個月最終確定的適用法規索取這些信用。

On a same-store basis after adjusting for acquisitions and dispositions and the benefit recorded at Clarios during the quarter, adjusted EBITDA was in line with prior year. While overall business performance has been stable, we saw some softness in select markets.

在本季收購和處置以及 Clarios 記錄的效益進行調整後，以同店計算，調整後的 EBITDA 與上年持平。雖然整體業務表現一直穩定，但我們在某些​​市場看到了一些疲軟的情況。

At our engineered components manufacturer, we're seeing weaker sales volumes and we expect demand will normalize next year. The situation at our health care services operation on Australia is much more challenging, where the business has an unsustainable cost structure primarily due to wage inflation in the industry.

在我們的工程零件製造商，我們看到銷量疲軟，預計明年需求將正常化。我們在澳洲的醫療保健服務業務的情況更具挑戰性，該業務的成本結構不可持續，主要是由於該行業的工資上漲。

Adjusted EFO for the quarter was $582 million, which included $131 million of net gains primarily related to the disposition of our road fuel operation and the deconsolidation of our payment processing services operations in our Business Services segment.

本季調整後的 EFO 為 5.82 億美元，其中包括 1.31 億美元的淨收益，主要與我們的道路燃料業務的處置以及商業服務部門支付處理服務業務的分拆有關。

Turning to our segment performance. Our Industrial segment generated $500 million of third quarter adjusted EBITDA. Underlying performance was supported by growing contributions from our Brazilian water and wastewater services operations, driven by higher billing rates as well as strong contribution from our advanced energy operations. Prior period results included contributions from disposed operations, including our Canadian aggregates production business, which was sold in June.

轉向我們的細分市場表現。我們的工業部門第三季調整後 EBITDA 產生了 5 億美元。我們的巴西供水和污水處理服務業務的貢獻不斷增長，而計費率的提高以及我們先進的能源業務的強勁貢獻推動了基本業績的成長。前期業績包括已處置業務的貢獻，其中包括我們於 6 月出售的加拿大骨材生產業務。

Moving to our Business Services segment. We generated third quarter adjusted EBITDA of $228 million. Prior period included contribution from our road fuels operation, which was sold in July. Our residential mortgage insurer is performing well and benefited from higher insurance revenue and investment income.

轉向我們的商業服務部門。第三季調整後 EBITDA 為 2.28 億美元。上期包括我們的道路燃料業務的貢獻，該業務已於 7 月出售。我們的住宅抵押貸款保險公司表現良好，並受益於較高的保險收入和投資收入。

Housing fundamentals in Canada remain balanced in most regions, and forecasts indicate that prices are expected to increase next year as mortgage rates come down. Results at our dealer software and technology services operation included the impact of higher costs as the business accelerates its modernization and technology upgrade activities.

加拿大大部分地區的房屋基本面保持平衡，預測表明，隨著抵押貸款利率下降，明年價格預計將上漲。我們的經銷商軟體和技術服務營運的結果包括隨著業務加速其現代化和技術升級活動而導致成本上升的影響。

Finally, our Infrastructure Services segment generated $146 million of adjusted EBITDA compared to $228 million last year. Prior year included $77 million of contributions from Nuclear Technology Services, which was sold last November. Results benefited from strong performance at our offshore oil services operation.

最後，我們的基礎設施服務部門產生了 1.46 億美元的調整後 EBITDA，而去年為 2.28 億美元。去年 11 月，核子科技服務公司出售了 7,700 萬美元的捐款。業績得益於我們海上石油服務業務的強勁表現。

Performance at our lottery services operations saw some impact from the push out of terminal deliveries in the quarter and lower-sized jackpot levels, which resulted in softer industry volumes compared to last year. The business is positioned for several potential commercial wins over the next few quarters that should contribute meaningful incremental growth.

我們的彩券服務業務的業績受到本季終端交付的延遲和頭獎金額降低的影響，導致業界銷售量較去年疲軟。該業務預計將在未來幾季取得幾項潛在的商業勝利，從而帶來有意義的增量成長。

Turning to our balance sheet. We ended the quarter with $1.6 billion of liquidity at the corporate level, which is pro-forma for recent and announced acquisitions and realizations. Our near-term focus is to reduce borrowings at our corporate credit facility, which we've drawn as a bridge to fund a portion of our recent acquisition activity.

轉向我們的資產負債表。本季結束時，我們公司層級的流動性為 16 億美元，這是最近和宣布的收購和變現的預估值。我們近期的重點是減少公司信貸安排的借款，我們將其作為為我們最近的部分收購活動提供資金的橋樑。

We'll also continue to invest in strategic acquisitions to grow our business, reinvest in our existing operations to generate incremental returns and opportunistically repurchase our units where it will enhance intrinsic value of our units.

我們也將繼續投資於策略性收購以發展我們的業務，再投資於我們現有的業務以產生增量回報，並伺機回購我們的單位，從而提高我們單位的內在價值。

With that, I'd like to turn the call back over to the operator for questions.

這樣，我想將電話轉回給接線員詢問問題。

(Operator Instructions) Gary Ho, Desjardins Capital Markets.

（操作員指令）Gary Ho，Desjardins 資本市場。

Maybe just to start off on the topic of this Inflation Reduction Act benefit. Just wondering how sustainable this amount is looking out and just thoughts on any chats or chats with consultants and whatnot in terms of kind of the new Trump administration coming in, whether there could be any changes on this.

也許只是從《減少通貨膨脹法案》福利的話題開始。只是想知道這個數字的可持續性如何，以及對任何聊天或與顧問的聊天的思考，以及新川普政府的到來，是否會對此做出任何改變。

Thanks, Gary. It's Anuj here. I'll start, and then I'll let Jaspreet chime in further as well. So Clarios is entitled to these credits under regulations, which were recently finalized in October but are effective as of January 2023. And the credits are effectively to incentivize domestic manufacturing and production in the United States, which includes the production of energy storage and batteries.

謝謝，加里。這裡是阿努吉。我先開始，然後讓 Jaspreet 進一步插話。因此，Clarios 有權根據法規獲得這些積分，這些法規最近於 10 月最終確定，但自 2023 年 1 月起生效。這些信貸有效地激勵了美國的國內製造和生產，其中包括儲能和電池的生產。

So based on the regulations and what the business naturally does in our current production levels, we expect the annual benefit for the business to be similar. And that is a view we've taken in, of course, consultation with our advisers.

因此，根據法規以及企業在當前生產水準下的自然行為，我們預期企業的年度效益將相似。當然，這是我們在與顧問協商後採納的觀點。

Okay. And then Anuj while I have you, I don't want to put you on the spot on Clarios but you keep that with a further update soon comment. Maybe your thoughts on how your team is thinking about the current IPO environment, especially now with the US election behind us. Is perhaps a dual listing a consideration for that asset?

好的。然後，Anuj，雖然我有你，但我不想讓你在 Clarios 上陷入困境，但你會盡快發表進一步的更新評論。也許您對您的團隊如何看待當前 IPO 環境的想法，尤其是現在美國大選已經過去。該資產是否可能考慮雙重上市？

We're keeping all options open with Clarios. But as you know, we've had a -- we're process running for some time. It's actually been quite robust. And what I can say right now is that we're very encouraged by the conversations we're having with various parties. So we should have a further update, hopefully soon.

我們對 Clarios 保留所有選項。但如您所知，我們的流程已經運作了一段時間。它實際上非常強大。我現在可以說的是，我們對與各方的對話感到非常鼓舞。所以我們應該有進一步的更新，希望很快。

Okay. And then maybe just last question on Altera. So it sounds like you sold the tanker business. Can you give us maybe some perspective on what this represents as a total and in terms of kind of what's left of Altera, how much debt is left? I basically remember there's some kind of lease structure, not sure if that's in your proportionate debt number. And then in terms of the stub, maybe just walk us through kind of how we should think about that?

好的。然後也許是關於 Altera 的最後一個問題。聽起來你好像賣掉油輪生意了。您能給我們一些關於這代表什麼的看法嗎？我基本上記得有某種租賃結構，不確定這是否包含在您的相應債務數字中。然後就存根而言，也許只是引導我們了解我們應該如何思考這一點？

Gary, it's Jaspreet. I'll take that. So the shuttle tanker business from an EBITDA perspective is about half of the business. So we're selling about half of the business, and we'll get back about a little bit less than half of our invested capital in Altera.

加里，我是賈斯普雷特。我會接受的。因此，從 EBITDA 角度來看，穿梭油輪業務約佔該業務的一半。因此，我們將出售大約一半的業務，並且我們將收回大約不到一半的 Altera 投資資本。

And then we're going to continue to hold the FPSO business, which is the largest part of what will remain. And in that business, there's the vessels which we've talked about before, the seven vessels, but the Knarr and the Voyageur are two that we talked about before that have long-term contracts. And then in addition to the FPSO, there's also some other non-core assets within the business that we hope we can monetize.

然後我們將繼續持有 FPSO 業務，這是剩下的業務中最大的一部分。在這項業務中，有我們之前討論過的七艘船，但「Knarr」號和「Voyageur」號是我們之前討論過的兩艘擁有長期合約的船。除了FPSO之外，我們還希望業務中還有一些其他非核心資產可以貨幣化。

So I'd say we're quite encouraged just by the industry dynamics. We ran a process, quite a robust process. There is interest in the assets and that culminated to the sale of the shuttle tanker, but we're continuing to look at opportunities for the balance of the business. In terms of debt, at the end of the quarter, net debt at Altera was a little bit shy of $600 million at our share, I think about $550 million, $575 million.

所以我想說，我們對產業動態感到非常鼓舞。我們運行了一個流程，一個非常強大的流程。人們對這些資產很感興趣，最終導致了穿梭油輪的出售，但我們仍在繼續尋找業務平衡的機會。就債務而言，截至本季末，以我們的份額計算，Altera 的淨債務略低於 6 億美元，我認為約為 5.5 億美元、5.75 億美元。

And the overall debt within the shuttle tanker business is say about half or a little bit less than half of that. So we do think that with the balance of the business, we could sell that, pay off the debt, and it should leave some equity proceeds.

穿梭油輪業務的總債務大約是其中的一半或略低於一半。因此，我們確實認為，隨著業務的平衡，我們可以出售它，償還債務，並且應該留下一些股權收益。

Devin Dodge, BMO Capital Markets.

Devin Dodge，BMO 資本市場。

Just wondering if you could talk a bit about the broader environment for monetization. Just with interest rates coming down, it should be a better environment for exits, but I was just trying to get a sense for how this is evolving, both in terms of the sectors or types of assets where you're seeing interest, but also the types of buyers that are coming forward.

只是想知道您是否可以談論更廣泛的貨幣化環境。隨著利率的下降，這應該是一個更好的退出環境，但我只是想了解這種情況是如何演變的，無論是在您感興趣的行業或資產類型方面，還是在您感興趣的領域或資產類型方面，以及即將出現的買家類型。

Sure. Devin, I can start, and then I'll let Anuj comment. So I'd say in terms of kind of the overall monetization environment, like things are looking pretty positive, I'd say just generally. The M&A environment seems to be a lot more robust. The credit markets have been open for a while, but most of the credit market activity we've seen this year has been kind of refinancings and repricing’s.

當然。Devin，我可以開始，然後我會讓 Anuj 發表評論。因此，我想說的是，就整體貨幣化環境而言，事情看起來非常積極，我想說的是一般情況。併購環境似乎更加強勁。信貸市場已經開放了一段時間，但我們今年看到的大部分信貸市場活動都是再融資和重新定價。

The M&A market has been light but it does feel like there's a lot more activity. And we can see that broadly in the market, but also in our own pipeline, a lot more of our deals seem more actionable and are moving forward quicker, I'd say, than we've seen over the last 12 to 18 months.

併購市場一直很清淡，但感覺確實有更多的活動。我們可以看到，在整個市場中，而且在我們自己的管道中，我們的更多交易似乎比過去 12 到 18 個月的情況更可行，而且進展得更快。

The IPO markets seem kind of a little bit more stable as well. We've seen a number of IPOs in the market. I'd say with the US election behind us and the rate cut that we saw on Thursday, it sets up the market quite well for more M&A activity and specifically monetization. So we're quite encouraged.

IPO 市場似乎也更穩定一些。我們在市場上看到了許多首次公開發行(IPO)。我想說，隨著美國大選的結束以及我們週四看到的降息，這為更多的併購活動，特別是貨幣化奠定了良好的市場基礎。所以我們很受鼓舞。

The Altera process, that was the second part of your question around where we're seeing interest. Like I said, the IPO markets are -- seem to be coming back and seem to be robust. Rates seem to be going down, which will be constructive.

Altera 工藝，這是您對我們感興趣的問題的第二部分。正如我所說，IPO 市場似乎正在復蘇，而且似乎很強勁。利率似乎正在下降，這將是建設性的。

The Altera sale, the shuttle tanker businesses for -- to a strategic, and we've talked about this before, that is our preferred kind of exit though we've got the capability to monetize in various ways. So it does feel like on all fronts, the monetization and the general M&A market is starting to come back quite strong.

Altera 的出售、穿梭油輪業務的策略，我們之前已經討論過這一點，這是我們首選的退出方式，儘管我們有能力以各種方式貨幣化。因此，從各方面來看，貨幣化和整體併購市場確實開始強勁復甦。

Okay. Good color. And then second question, Scientific Games, Jaspreet, I think you talked about this a bit in your open comments. But just wondering if you could provide a bit more color on the headwinds that you saw in the quarter, like if you expect these to persist? And there was mention of some commercial wins there. Just wondering if you're able to scale the potential upside for us.

好的。顏色好。然後是第二個問題，Scientific Games，Jaspreet，我想您在公開評論中談到了這一點。但只是想知道您是否可以對本季度看到的不利因素提供更多信息，例如您是否預計這些不利因素會持續存在？其中也提到了一些商業勝利。只是想知道您是否能夠為我們擴大潛在的優勢。

So I'll start. It's Adrian speaking. So look, in terms of US retail sales, there were some softness. Some of that was to do with the particularly elevated levels that we saw last year in terms of jackpot sizes, which we think encourages buying at the retail stores.

那我就開始吧。說話的是阿德里安。因此，就美國零售銷售而言，存在一些疲軟。其中一些與我們去年看到的頭獎金額特別高的水平有關，我們認為這鼓勵了在零售商店購買。

In terms of the wins, you're absolutely right. There was two. There's a new iLottery contract in Delaware and then there's a systems and technology contract in Ohio. But I'll hand over to Jaspreet in terms of the value that we anticipate from that.

就勝利而言，你是絕對正確的。有兩個。特拉華州有一份新的 iLottery 合同，俄亥俄州還有一份系統和技術合約。但我將把我們預期的價值交給 Jaspreet。

Yes. Maybe the only thing I'd add -- a couple of points I'd add is there was softness in the quarter, but the team is doing a really good job on kind of operational improvements, managing costs. So they're executing on that. And on an annualized basis, we haven't seen the full benefit of that. So we do think that the business is quite well set up there.

是的。也許我唯一要補充的是——我要補充的幾點是本季表現疲軟，但團隊在營運改善和成本管理方面做得非常好。所以他們正在執行這一點。從年化角度來看，我們還沒有看到它的全部好處。所以我們確實認為那裡的業務發展得很好。

Also on the top line, we've talked about this before. Over the last 12 months, they've won a number of contracts. But it does take time to onboard the new contracts when you win one. And so it takes a little bit of time to onboard and get the revenue flowing.

同樣在最重要的方面，我們之前已經討論過這一點。在過去的 12 個月裡，他們贏得了許多合約。但當你贏得一份新合約時，確實需要時間來簽訂新合約。因此，需要一點時間來加入並獲得收入流動。

So we won the UK lottery contract last year. We're not seeing the full benefit of that in our revenues yet, the Ohio and Delaware contracts as well as a number of others that the business has won. I think they're going to start -- some of them will start generating revenue and cash flows for us next year, and some of them will be the year after.

所以我們去年贏得了英國彩票合約。我們還沒有看到這對我們的收入、俄亥俄州和特拉華州合約以及該公司贏得的其他一些合約的全部好處。我認為它們將會開始——其中一些將在明年開始為我們創造收入和現金流，其中一些將在後年開始。

But I'd say if you step back, we're seeing strong growth in the business through the new commercial wins and through the cost optimization initiatives. So on a run rate basis, we think this business is still going to generate kind of strong EBITDA and cash flows kind of in line with the underwriting when we bought the business.

但我想說，如果你退後一步，我們會看到透過新的商業勝利和成本優化舉措，業務實現了強勁增長。因此，在運行率的基礎上，我們認為該業務仍將產生強勁的 EBITDA 和現金流，與我們購買該業務時的承銷情況一致。

(Operator Instructions) Robert Kwan, RBC Capital Markets.

（操作員指令）Robert Kwan，RBC 資本市場。

If I can just -- back on the Brookfield Asset Management call, there was a description around just this transaction environment being a strong market for both buying assets and selling assets. Although some of those comments seem to be a little bit more skewed to a stable businesses. So can you just talk about though how you're seeing like your commentary specific to BBU's strategy and the businesses you own?

如果可以的話，回到布魯克菲爾德資產管理公司的電話會議上，有一個關於這種交易環境的描述，它是購買資產和出售資產的強大市場。儘管其中一些評論似乎更傾向於穩定的企業。那麼您能否談談您對 BBU 策略和您擁有的業務的評論有何看法？

Why don't I start and just taking on from what Jaspreet just said, I'd say the market environment is quite enabling right now for transaction activity. And it is around stable businesses, which is very similar to what we buy and what we own in BBU. So businesses that generate sustainable recurring cash flow and have a good growth profile in front of them.

我為什麼不開始，按照 Jaspreet 剛才所說的話，我想說，目前的市場環境非常有利於交易活動。它圍繞著穩定的業務，這與我們在 BBU 購買和擁有的業務非常相似。因此，企業必須能夠產生可持續的經常性現金流，並具有良好的成長前景。

Obviously, financing is available, which helps dramatically. And as rates come off, we should see transaction activity continue to tick up. But the other thing that we've noticed is in the 10 businesses we've sold over the last 18 months, strategic bid what Jaspreet referenced is completely, which is true is back. And strategics are buying good businesses that, again, generate cash flow that they want to own.

顯然，融資是可行的，這有很大幫助。隨著利率下降，我們應該會看到交易活動繼續增加。但我們注意到的另一件事是，在過去 18 個月我們出售的 10 家企業中，Jaspreet 提到的策略性收購完全是真實的，這又回來了。策略投資者正在購買優秀的企業，這些企業能夠再次產生他們想要擁有的現金流。

And in many of our sales processes, whether it's Altera, whether it's Greenergy, including some of the ones that we have going right now, we have seen significant strategic interest. And that's been very encouraging for the businesses we own.

在我們的許多銷售流程中，無論是 Altera 還是 Greenergy，包括我們現在正在進行的一些銷售流程，我們都看到了重大的策略利益。這對我們擁有的企業來說非常令人鼓舞。

At the same time, the growth opportunities are also quite exciting. And I'd say that there is -- we, as a Brookfield, as a broader Brookfield and then the private equity group have been looking at investments and making acquisitions and for BBU, again, based on our capital priorities, we'll always have a balanced approach, and we'll possibly look at new investments as well.

同時，成長機會也相當令人興奮。我想說的是，我們，作為布魯克菲爾德，作為更廣泛的布魯克菲爾德，然後私募股權集團一直在考慮投資和收購，對於 BBU，再次，根據我們的資本優先事項，我們將始終有一個平衡的方法，我們也可能會考慮新的投資。

That's great. I guess just on the new investment side of things, you noted the increased involvement from strategics. And then when you pair that with your commentary that your most recent investments have generally been higher quality than the ones you've been selling, does that then change in the cycle? Do you think there may be greater opportunities for assets or businesses that need just a little bit more work? Or would you expect to continue to target the higher quality businesses?

那太棒了。我想就在新的投資方面，您注意到策略參與的增加。然後，當您將這一點與您最近的投資通常比您一直在出售的投資品質更高的評論結合起來時，這種情況會在周期中發生變化嗎？您認為只需要多做一點工作的資產或企業可能會有更大的機會嗎？或者您希望繼續瞄準更高品質的業務？

So we've always -- it's a great question. Look, we've always prioritized looking at higher-quality businesses or businesses with the potential to be very high quality. But where there's a value creation component that we can deliver, that is usually kind of quite unique to us or whether there is a situation around the business that causes some complexity for why we think we can buy for value.

所以我們一直——這是一個很好的問題。看，我們始終優先考慮更高品質的企業或具有極高品質潛力的企業。但是，如果我們可以提供價值創造組件，那麼這通常對我們來說是非常獨特的，或者業務周圍是否存在某種情況，導致我們認為我們可以購買有價值的東西變得有些複雜。

Network was a great example of that being listed in London but owning a leading Middle Eastern payments provider, it just wasn't getting the right value treatment for the quality of business it was. And the fact that we own the number two player that Adrian talked about, Magnati, gave us a huge value creation potential that no one else had. So it's not that we're not buying very high-quality businesses. We're just buying them where they're undeservingly unloved and we're able to do something with the business that probably nobody else can.

Network 是倫敦上市的一個很好的例子，但它擁有一家領先的中東支付提供商，但它的業務品質卻沒有得到正確的價值對待。事實上，我們擁有阿德里安談到的第二號球員馬格納蒂，這給了我們巨大的價值創造潛力，這是其他人所沒有的。所以這並不是說我們沒有購買非常高品質的企業。我們只是在它們不值得被愛的地方購買它們，並且我們能夠對業務做一些其他人可能做不到的事情。

Dimitry, Veritas.

迪米特里、維里塔斯。

So on road fuel operation, can you please remind us how much EBITDA in the EFO did it contribute on a quarterly basis?

那麼在道路燃油運作方面，您能否提醒我們每季在 EFO 中貢獻了多少 EBITDA？

Dimitry, we don't break out the EBITDA in the EFO book (technical difficulty) separately. But it's not -- it hasn't been a meaningful EBITDA contribution from our Business Services segment. (technical difficulty)

Dimitry，我們在 EFO 書中（技術難度）沒有單獨列出 EBITDA。但事實並非如此——我們的商業服務部門並沒有對 EBITDA 做出有意義的貢獻。（技術難度）

Okay. And then on the $350 million of proceeds from distributions and announced monetization, I wonder if you can break it down by components, so distribution versus the monetizations?

好的。然後，關於來自發行和宣布的貨幣化的 3.5 億美元收益，我想知道您是否可以按組成部分將其細分，即發行與硬幣化？

Sure. I can maybe comment on some of the larger pieces of it. So the largest piece is the cash that will come in from the sale of Altera, so that's about $265 million. It includes the proceeds from the sale of Greenergy that we received as well as ongoing distributions from some of our businesses, the largest of which is Sagen.

當然。我也許可以對其中一些較大的部分發表評論。因此，最大的一塊是出售 Altera 所獲得的現金，大約是 2.65 億美元。它包括我們收到的出售 Greenergy 的收益以及我們一些業務（其中最大的是 Sagen）持續分配的收益。

And so now in this distributions from Sagen, they are not included in EFO. Are they?

因此，現在在 Sagen 的發行版中，它們不包含在 EFO 中。他們是嗎？

In EFO, it includes kind of EBITDA less the cash interest and cash taxes. So it's a proxy for, let's say, free cash flow in the business, and there's not a lot of maintenance CapEx at Sagen. But I'd say it's not a direct correlation, but it's a good proxy. I'd say on full cycle run rate basis, Sagen should generate CAD500 million to CAD600 million of free cash flow, and we own 41% in BBU.

在 EFO 中，它包括 EBITDA 減去現金利息和現金稅。因此，它可以代表業務中的自由現金流，而且 Sagen 的維護資本支出並不多。但我想說這不是直接相關，但它是一個很好的代理。我想說，在全週期運行率的基礎上，Sagen 應該產生 5 億至 6 億加元的自由現金流，我們擁有 BBU 41% 的股份。

Right. Yes. So I'm just trying to understand the difference between distributions from Sagen, which I think, as you alluded they are if you will, not part of the EFO because you just pick up your share of EFO from Sagen when you report results, but then, for example, there was up-financing at Toronto One and that was included in EFO. So I'm just trying to understand the difference.

正確的。是的。所以我只是想了解 Sagen 發行版之間的差異，我認為，正如您所提到的，如果您願意的話，它們不是 EFO 的一部分，因為您在報告結果時只是從 Sagen 獲得了 EFO 份額，但然後，例如，多倫多一號(Toronto One) 進行了追加融資，並包含在EFO 中。所以我只是想理解其中的差異。

So the EFO of Sagen is a proxy for how much cash the business is generating. So we are -- like that's the cash generation in the business and the business does kind of a dividend distribution from that cash. So versus One Toronto, which was a dividend recap, and in that instance, the dividend income that came into us, we recorded One Toronto as an equity-accounted investment. I'm happy to go through the numbers in detail with you off-line if that's -- .

因此，Sagen 的 EFO 可以代表企業產生的現金量。所以我們——這就是企業的現金產生，而企業則是從這些現金中進行股利分配。因此，與 One Toronto 相比，One Toronto 是一項股息回顧，在這種情況下，即我們收到的股息收入，我們將 One Toronto 記錄為一項股權投資。如果可以的話，我很樂意與您離線詳細查看這些數字——。

Awesome. Yes. Okay. Perfect. That will be great. And then sorry, I just didn't catch on your remarks related to $350 million in proceeds in the distributions. You mentioned $165 million. What was that related to?

驚人的。是的。好的。完美的。那太好了。抱歉，我只是沒聽清楚您關於 3.5 億美元收益分配的言論。你提到了1.65億美元。那與什麼有關？

That number is kind of our total forecasted. It includes the forecasted distribution. So $265 million of that is Altera proceeds that we're going to get in. And then it includes the Greenergy and then other distributions, Sagen.

這個數字是我們預測的總數。它包括預測分佈。因此，我們將獲得其中 2.65 億美元的 Altera 收益。然後它包括 Greenergy 以及其他發行版 Sagen。

Right. Okay. Awesome. And then on Altera, the sale of the shuttle tanker segment. So the -- as you exactly pointed out $265 million of proceeds, is that proceeds to equity net of any debt repayments or these are your gross share of proceeds?

正確的。好的。驚人的。然後是 Altera，出售穿梭油輪業務。那麼，正如您確切指出的 2.65 億美元收益，這是扣除任何債務償還後的股權收益，還是您的總收益份額？

It's net. It's the net cash that will come up to BBU on equity.

是淨的。淨現金將計入 BBU 的股本。

Okay. Understood. And based on your previous comments on the question that was asked earlier, I think you suggested that approximately half of the $800 million worth of equity at your share, invested in Altera, that relates to the shuttle tanker business. Did I catch it correct? Or there was nuances there?

好的。明白了。根據您先前對先前提出的問題的評論，我認為您建議將您所持股份的價值 8 億美元的股權中大約一半投資於與穿梭油輪業務相關的 Altera。我聽對了嗎？或其中存在細微差別？

So it's a little bit less than half that we will realize once the shuttle tanker proceeds are in. So there's -- we've gotten some interest income from the business along the way. Just interest cash distributions on some of our investment in Altera and then you add to that the $265 million that will come in from the shuttle tanker. And it will give us back a little bit less than half of the capital.

因此，一旦太空梭收益到達，我們將意識到的數字還不到一半。所以，我們一路上從業務中獲得了一些利息收入。只需支付我們在 Altera 的部分投資的現金分配利息，然後再加上來自穿梭油輪的 2.65 億美元。它將返還給我們不到一半的資本。

Okay. Because if I compare the $265 million in net equity proceeds versus the $400 million investment -- invested, that would imply essentially a loss, economic loss on the disposition.

好的。因為如果我將 2.65 億美元的淨股本收益與 4 億美元的投資進行比較，這基本上意味著處置方面的損失，即經濟損失。

So, I'm not sure -- can you say that again?

所以，我不確定——你能再說一次嗎？

Yes. So if you invested $400 million in equity essentially, give or take, in the shuttle business and compare that to proceeds of $265 million you received on sale, then wouldn't that imply an economic loss on sale?

是的。因此，如果您實質上在太空梭業務上投入了4 億美元的股權（無論給予還是接受），並將其與您透過出售獲得的2.65 億美元收益進行比較，那麼這是否意味著出售帶來了經濟損失？

So it's not -- I don't think you can take kind of the $800 million that we invested in Altera and just divide it by two because the total investment in Altera was for the whole business. The way we're looking at it is our total capital in the business is about $800 million.

所以，我認為你不能將我們在 Altera 投資的 8 億美元除以二，因為 Altera 的總投資是針對整個業務的。我們的看法是，我們的業務總資本約為 8 億美元。

At this point, with the $265 million of proceeds we'll get from the shuttle tanker business, the interest cash that we've gotten along the way on our holdings will give us back a little bit less than half of that $800 million.

此時，我們將從穿梭油輪業務中獲得 2.65 億美元的收益，而我們從持有的資產中獲得的利息現金將為我們帶來略低於這 8 億美元的一半的收益。

And then we'll continue to hold about half -- the business that's generating about half of the EBITDA, which is the FPSO and the FSO as well as an accommodation unit. So there's still quite a bit of unrealized value in the business that we're going to work to unlock.

然後我們將繼續持有大約一半的業務，即產生大約一半 EBITDA 的業務，即 FPSO 和 FSO 以及住宿單位。因此，我們將努力釋放業務中仍有相當多未實現的價值。

Okay, awesome. And then on the CDK, did you provide any discounts versus the prior contracted price to the two North American publicly traded dealerships that you renewed the contracts with?

好吧，太棒了。然後在 CDK 上，您是否向與您續約的兩家北美上市經銷商提供了與先前合約價格相比的任何折扣？

So look, we're having live negotiations with all of our customers on contracts, and there's always some give and take. We can't specifically speak to any one contractor or what specific discounts we might have given to one particular, -- two particular customers. But I'd say, generally, the contracts that we've been signing have been kind of at reasonable margins that we would expect the business to kind of generate on new contracts.

所以看，我們正在與所有客戶就合約進行現場談判，並且總是有一些讓步。我們無法具體與任何一位承包商交談，也無法具體談論我們可能向一位特定的、兩位特定的客戶提供哪些具體折扣。但我想說，一般來說，我們已經簽署的合約的利潤率是合理的，我們希望業務能夠在新合約上產生這種利潤。

I'm showing no further questions. So with that, I'll hand the call back over to CEO, Anuj Ranjan, for closing remarks.

我沒有再提出任何問題。因此，我將把電話轉回給執行長 Anuj Ranjan，讓其致閉幕詞。

Thank you, everyone, and I look forward to seeing you on the next quarter.

謝謝大家，我期待下個季度見到你們。

Ladies and gentlemen, thank you for participating. This concludes today's program, and you may now disconnect.

女士們、先生們，感謝您的參與。今天的節目到此結束，您現在可以斷開連線了。