Brookfield Business Partners LP Q4 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : I'll start with a -- Just going to start with a question on capital deployment. We're clearly in a period, there's a lot of M&A activity. I think the release mentioned that new investment activity for BBU continue to accelerate. Just can you walk us through that pipeline and where you're seeing the most opportunities?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Okay. That's a good rundown. Maybe just switching gears over to Westinghouse. I mean Denis gave a really good update there. Just wondering, like this business seems to be migrating towards being one of your mature investments, if it isn't there already. I guess in terms of positioning Westinghouse for potential sales, do you think -- or do you feel like there's more work to be done around tuck-in M&A, either geographically or rounding out that service offering, such as adding more decommissioning capabilities?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Okay. Okay. And maybe just one last one on BrandSafway. This is a business that's been a bit challenged in 2020. Jaspreet touched on some of this. But just trying to get a sense for how this business is performing relative to the underwriting assumptions? And have you started to see signs of a demand pickup as we look a little bit deeper into 2021?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : It was -- we started to see a demand turn as we think about 2021.

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Congrats on the good quarter.

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : My first question was the investments that you made in the public securities that you purchased last year, you've sold some of that and booked some of the gains. Obviously, the markets have done very well off the lows. I'm just wondering if the securities that were sold, like would they have been in companies where you feel that there's unlikely to be some sort of, call it, major investment or acquisition at some point in the future?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Okay. When I was looking at Genworth or Sagen's results yesterday, it was noted that they've entered into a number of new relationships, I guess, in the past a little bit. And these would be companies that are within the BAM, call it, broader empire like Oaktree, the public securities team (inaudible) and whatnot. So essentially driving synergy opportunities across the Brookfield -- broader Brookfield Portfolio. From your perspective, how we describe the incremental growth -- potential growth opportunity of these, call it, cross synergies within BBU's portfolio, whether or not they're within BBU's owned companies doing business with each other or ones that would be involved within the broader, again, Brookfield entity?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Okay. And just my last question is, you've talked in the past about some investments as -- I don't know if it's platform companies, but essentially, companies that you could own over the long term, and Multiplex would be an example of that. Looking at the portfolio today, would there be other companies that you would kind of fit into that category?

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Maybe just going back to the Westinghouse discussion. It sounds like you're very comfortable with the $800 million EBITDA outlook. Maybe can you talk about what initiatives or tuck-ins can be done to move this target above $800 million? And what would a loose guide scenario be for that asset?

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Okay. That's helpful. And then maybe just touching on Clarios a little bit. I think delivered a pretty solid quarter. I know you provided the $300 million cost guidance. How do you think about the advanced battery and higher margin potential, I think that's outside of the $300 million. Is this something immaterial? Or should we start to bake some of that -- those benefit in any guidepost there would be helpful?

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Okay. Perfect. That's helpful. And then maybe just my last question, it looks like there's some more units repurchased in the quarter. What's your outlook at the current share price?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Related to Multiplex, I believe you mentioned that the current backlog is $9 billion. Can you confirm that number and then also frame that relative to previous quarters or even previous years at this time?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Okay. Great. With respect to the public securities, maybe just a quick refresh for my benefit. The investment in the public securities business primarily to get closer to certain companies that you like and may eventually look to invest in? Or is it primarily just to sort of trade the market given the deep discounts at the time? And what are the plans for realization on that portfolio? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2021 / 4:00PM, BBU_u.TO - Q4 2020 Brookfield Business Partners LP Earnings Call

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Okay. Great. And last one, just around the corporate borrowings sitting at about $600 million today. What's the view for using those credit facilities in upcoming transactions and monetizations? Can you just give us a near-term outlook for corporate leverage?