GlobeNewswire Inc | Feb 3, 2021 07:00AM EST

February 03, 2021

BROOKFIELD, NEWS, Feb. 03, 2021 (GLOBE NEWSWIRE) -- Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) today announced its results for the fourth quarter ended December 31, 2020.

2020 provided a unique backdrop to showcase the resilience and strength of our business, said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. We were also able to invest in high quality assets that were immediately accretive to our results. We are beginning 2021 with a robust liquidity position which will allow us to pursue attractive opportunities and convert them into meaningful investments.

For the three months For the year ended ended December 31, December 31,US$ millions (except per unit 2020 2019 2020 2019 amounts), unaudited^1Net income^2 $ 331 $ 23 $ 394 $ 233 ? per unit^3,4 $ 0.58 $ (0.06 ) $ 0.35 $ 0.06 FFO^5 $ 398 $ 358 $ 1,454 $ 1,384 ? per unit (split-adjusted)^6 $ 0.86 $ 0.77 $ 3.13 $ 3.06

Brookfield reported net income for the year of $394 million ($0.35 per unit) compared to $233 million ($0.06 per unit) in the prior year. Net income for the year benefited from organic growth across our regulated and contracted operations, contributions from recently completed acquisitions and a gain associated with the partial disposition of our Australian export terminal. These increases were partially offset by the impact of foreign exchange and higher depreciation associated with our annual revaluation process and new investments.

Funds from Operations (or FFO) for 2020 totaled $1.45 billion, compared to $1.38 billion in the prior year. This 5% increase reflects the highly regulated and contracted nature of our cash flows and embedded organic growth within the company. Results benefited from capital deployed across our segments and organic growth within our utilities, midstream and data segments. The single largest adverse impact on results was the depreciation of the Brazilian real, which reduced FFO by approximately $100 million relative to 2019.

Segment Performance

Our utilities segment generated FFO of $659 million in 2020, an annual increase of 6% after adjusting for the impact of a weaker Brazilian real. Our utility businesses performed well overall, reflecting the regulated and contractual frameworks under which we operate. Results benefited from inflation-indexation and $340million of capital commissioned into rate base during the last 12 months. These contributions were partially offset by delays in the recognition of certain connections revenue at our U.K. regulated distribution business.

FFO from our transport segment was $590 million, which was relatively consistent with the prior year despite a challenging environment and disruptions in global trade. The segment benefited from the initial contribution of our North American rail operation and LNG export terminal, solid volumes across our rail networks and favorable rent settlements at our U.K. port operation. These contributions were offset by lower volumes at our toll roads and container ports.

FFO from our midstream segment totaled $289 million, an increase of 18% compared to the prior year. Performance this year was excellent, with organic growth contributing 13% despite challenges in global energy markets. Our highly contracted cash flows were uninterrupted by the economic shutdowns and we benefited from robust transportation volumes and the commissioning of several new capital expenditure projects.

Our data segment delivered FFO of $196 million, an increase of almost 50% compared to the prior year. This step-change increase is the result of organic growth and approximately $1billion of capital deployed into various strategic growth initiatives over the last 24 months. With respect to our ongoing growth capital projects, we have commissioned 22 MW of capacity at our South American data center operation and constructed approximately 150,000 fiber plugs at our French telecom operation in the last year. Combined, these two projects will contribute additional annual EBITDA of $50million (BIPs share - approximately $10million).

The following table presents FFO by segment:

For the three months ended For the year ended December 31, December 31,US$ millions, unaudited 2020 2019 2020 2019 FFO by segment Utilities $ 168 $ 178 $ 659 $ 672 Transport 170 147 590 603 Midstream 86 64 289 244 Data 61 42 196 136 Corporate (87 ) (73 ) (280 ) (271 )FFO $ 398 $ 358 $ 1,454 $ 1,384

Update on Strategic Initiatives

We completed several important initiatives in 2020:

-- Deployed $2.5 billion in new investments and organic capital projects - Expanded our presence in Indias rapidly expanding data infrastructure sector with the acquisition of a large-scale portfolio of telecom towers and made an investment in a world class LNG export terminal that is contributing to global decarbonization efforts. -- Generated over $700 million through capital recycling Completed four sale processes and several asset-level financings that produced over $700 million of proceeds, resulting in an average after-tax IRR of approximately 20% and approximately three times multiple of capital.

In addition, we recently reached an agreement to sell our North American district energy business in two separate transactions for total consideration of $4.1 billion on an enterprise value basis. Net proceeds to BIP are expected to be approximately $950 million. We will earn an IRR of over 30% on our investment and a multiple of invested capital of over six times.

Distribution and Dividend Increase

The Board of Directors has declared a quarterly distribution in the amount of $0.51 per unit, payable on March 31, 2021 to unitholders of record as at the close of business on February 26, 2021. This distribution represents a 5% increase compared to the prior year. The regular quarterly dividends on the Cumulative Class A Preferred Limited Partnership Units, Series 1, Series 3, Series 5, Series 7, Series 9, Series 11, Series 13 and Series 14 have also been declared, as well as the dividend for BIP Investment Corporation Senior Preferred Shares, Series 1. In conjunction with the Partnerships distribution declaration, the Board of Directors of BIPC has declared an equivalent quarterly dividend of $0.51 per share, also payable on March 31, 2021 to shareholders of record as at the close of business on February 26, 2021.

Additional Information

The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein.

Brookfield Infrastructures Letter to Unitholders and Supplemental Information are available at www.brookfield.com/infrastructure.

Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further information is available at www.brookfield.com/infrastructure.

Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with approximately $600billion of assets under management. For more information, go to www.brookfield.com.

Please note that Brookfield Infrastructure Partners previous audited annual and unaudited quarterly reports have been filed on SEDAR and Edgar, and can also be found in the shareholders section of its website at www.brookfield.com/infrastructure. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please contact:

Media: Investors:Claire Holland Kate WhiteSenior Vice President, Communications Manager, Investor RelationsTel: (416) 369-8236 Tel: (416) 956-5183Email: claire.holland@brookfield.com Email: kate.white@brookfield.com

Conference Call and Quarterly Earnings Details

Investors, analysts and other interested parties can access Brookfield Infrastructures 2020 Year-End Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Infrastructures website under the Investor Relations section at www.brookfield.com/infrastructure.

The conference call can be accessed via webcast on February 3, 2021 at 9:00 a.m. Eastern Time at https://edge.media-server.com/mmc/p.63nh6f4w or via teleconference at 1-866-688-9459 toll free in North America. For overseas calls please dial +1-409-216-0834, at approximately 8:50 a.m. Eastern Time. A recording of the teleconference can be accessed at 1-855-859-2056 or +1-404-357-3406 (Conference ID: 4178742).

Note: This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. The words will, target, future, growth, expect, believe, may, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release may include statements regarding expansion of Brookfield Infrastructures business, the likelihood and timing of successfully completing the transactions referred to in this news release, statements with respect to our assets tending to appreciate in value over time, the future performance of acquired businesses and growth initiatives, the commissioning of our capital backlog, the pursuit of projects in our pipeline, the level of distribution growth over the next several years and our expectations regarding returns to our unitholders as a result of such growth. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products and services, the ability to achieve growth within Brookfield Infrastructures businesses and in particular completion on time and on budget of various large capital projects, which themselves depend on access to capital and continuing favourable commodity prices, and our ability to achieve the milestones necessary to deliver the targeted returns to our unitholders, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the impact of health pandemics such as the COVID-19 on our business and operations, the ability to effectively complete transactions in the competitive infrastructure space (including the ability to complete announced and potential transactions that may be subject to conditions precedent, and the inability to reach final agreement with counterparties to transactions referred to in this press release as being currently pursued, given that there can be no assurance that any such transaction will be agreed to or completed) and to integrate acquisitions into existing operations, the future performance of these acquisitions, changes in technology which have the potential to disrupt the business and industries in which we invest, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the documents filed by Brookfield Infrastructure with the securities regulators in Canada and the United States including under Risk Factors in Brookfield Infrastructures most recent Annual Report on Form 20-F and other risks and factors that are described therein. Except as required by law, Brookfield Infrastructure undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructures results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, and class A shares of BIPC.

References to the Partnership are to Brookfield Infrastructure Partners L.P.

-- Please refer to page 12 for results of Brookfield Infrastructure Corporation. -- Includes net income attributable to limited partners, the general partner, and non-controlling interests Redeemable Partnership Units held by Brookfield, Exchange LP Units, and class A shares of BIPC. -- Average number of limited partnership units outstanding on a time weighted average basis for the three and twelve-month period ended December31, 2020 were 295.4 million and 294.7 million, respectively (2019 293.5 million and 285.6 million). Earnings per limited partnership unit have been adjusted to reflect the dilutive impact of the special distribution. -- Results in a loss on a per unit basis for the three-month period ended December 31, 2019 as allocation of net income is reduced by preferred unit and incentive distributions. -- FFO is defined as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, and non-cash valuation gains or losses. A reconciliation of net income to FFO is available on page 9 of this press release. -- Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redeemable partnership units held by Brookfield, Exchange LP units, and class A shares of BIPC for limited partnership units, as if the special distribution had been completed prior to the periods presented, for the three and twelve-month periods ended December31, 2020 were 465.0million and 464.9 million, respectively (2019 464.8million and 452.9million). Average number of units outstanding on a fully diluted time weighted average basis, excluding the impact of the special distribution, for the three and twelve-month periods ended December31, 2020 were 418.5million and 418.4 million, respectively (2019 418.3million and 407.6million).

Brookfield Infrastructure Partners L.P. Consolidated Statements of Financial Position

As ofUS$ millions, unaudited Dec 31, Dec 31, 2020 2019 Assets Cash and cash equivalents $ 867 $ 827 Corporate financial assets 425 149 Property, plant and equipment and investment 32,102 23,429 propertiesIntangible assets and goodwill 18,401 20,939 Investments in associates and joint ventures 5,528 4,967 Deferred income taxes and other 4,008 5,997 Total assets $ 61,331 $ 56,308 Liabilities and partnership capital Corporate borrowings $ 3,158 $ 2,475 Non-recourse borrowings 20,020 18,544 Financial liabilities 3,374 2,173 Deferred income taxes and other 13,106 10,939 Partnership capital Limited partners 4,233 5,048 General partner 19 24 Non-controlling interest attributable to: Redeemable partnership units held by Brookfield 1,687 2,039 Class A shares of BIPC and Exchange LP units 650 18 Interest of others in operating subsidiaries 13,954 14,113 Preferred unitholders 1,130 935 Total partnership capital 21,673 22,177 Total liabilities and partnership capital $ 61,331 $ 56,308

Brookfield Infrastructure Partners L.P.Consolidated Statements of Operating Results

For the three months For the twelve months ended December 31 ended December 31US$ millions, except per unit 2020 2019 2020 2019 information, unaudited Revenues $ 2,534 $ 1,655 $ 8,885 $ 6,597 Direct operating costs (1,356 ) (907 ) (4,843 ) (3,395 )General and administrative (93 ) (79 ) (312 ) (279 )expenseDepreciation and amortization (519 ) (282 ) (1,705 ) (1,214 )expense 566 387 2,025 1,709 Interest expense (372 ) (222 ) (1,179 ) (904 )Share of earnings from associates 55 136 131 224 and joint venturesMark-to-market on hedging items (73 ) (47 ) (16 ) 57 Other income (expense) 452 (144 ) 234 (158 )Income before income tax 628 110 1,195 928 Income tax expense Current (54 ) (70 ) (237 ) (250 )Deferred ? (14 ) (54 ) (28 )Net income 574 26 904 650 Non-controlling interest of (243 ) (3 ) (510 ) (417 )others in operating subsidiariesNet income attributable to $ 331 $ 23 $ 394 $ 233 partnership Attributable to: Limited partners $ 182 $ (13 ) $ 141 $ 52 General partner 46 41 183 159 Non-controlling interest ? )redeemable partnership units held 74 (5 55 22 by BrookfieldNon-controlling interest ? classA shares of Brookfield 28 ? 14 ? Infrastructure CorporationNon-controlling interest ? 1 ? 1 ? exchange LP unitsBasic and diluted earnings per unit attributable to:Limited partners^1 $ 0.58 $ (0.06 ) $ 0.35 $ 0.06

-- Average number of limited partnership units outstanding on a time weighted average basis for the three and twelve-month period ended December31, 2020 were 295.4million and 294.7million, respectively (2019 293.5million and 285.6million). Earnings per limited partnership unit have been adjusted to reflect the dilutive impact of the special distribution.

Brookfield Infrastructure Partners L.P.Consolidated Statements of Cash Flows

For the three For the twelve months months ended December 31 ended December 31US$ millions, unaudited 2020 2019 2020 2019 Operating Activities Net income $ 574 $ 26 $ 904 $ 650 Adjusted for the following items: Earnings from investments inassociates and joint ventures, net (39 ) (48 ) 36 30 of distributions receivedDepreciation and amortization 519 282 1,705 1,214 expenseMark-to-market on hedging items, (344 ) 147 51 153 provisions and otherDeferred income tax expense ? 14 54 28 Change in non-cash working capital, (293 ) (8 ) (220 ) 68 netCash from operating activities 417 413 2,530 2,143 Investing Activities Net investments in: Operating and held for sale assets (37 ) (7,787 ) (2,660 ) (9,999 )Associates ? (115 ) (369 ) (404 )Long-lived assets (456 ) (329 ) (1,426 ) (1,144 )Financial assets 71 231 (237 ) 102 Net settlements of foreign exchange ? 14 83 73 contractsCash used by investing activities (422 ) (7,986 ) (4,609 ) (11,372 ) Financing Activities Distributions to limited and general (286 ) (263 ) (1,134 ) (1,027 )partnersNet borrowings: Corporate 185 330 629 398 Subsidiary 736 2,615 1,119 3,573 Deposit received from parent ? ? 545 ? Net preferred units and preferred ? ? 195 72 shares issuedNet partnership units issued 2 2 9 781 Net capital provided by (824 ) 5,019 763 5,745 non-controlling interest and otherCash (used by) from financing (187 ) 7,703 2,126 9,542 activities Cash and cash equivalents Change during the period $ (192 ) $ 130 $ 47 $ 313 Cash reclassified as held for sale ? 3 ? (13 )Impact of foreign exchange on cash 47 17 (7 ) (13 )Balance, beginning of period 1,012 677 827 540 Balance, end of period $ 867 $ 827 $ 867 $ 827

Brookfield Infrastructure Partners L.P.Statements of Funds from Operations

For the three months For the twelve months ended December 31 ended December 31US$ millions, unaudited 2020 2019 2020 2019 Adjusted EBITDA Utilities $ 218 $ 223 $ 854 $ 850 Transport 237 202 806 833 Midstream 110 86 379 320 Data 92 54 266 175 Corporate (93 ) (79 ) (312 ) (279 )Total 564 486 1,993 1,899 Financing costs (188 ) (146 ) (623 ) (585 )Other income 22 18 84 70 Funds from operations (FFO) 398 358 1,454 1,384 Depreciation and amortization (326 ) (222 ) (1,034 ) (895 )Deferred taxes and other items 259 (113 ) (26 ) (256 )Net income attributable to the $ 331 $ 23 $ 394 $ 233 partnership

Notes:Funds from operations in this statement is on a segmented basis and represents the operations of Brookfield Infrastructure net of charges associated with related liabilities and non-controlling interests. Adjusted EBITDA is defined as FFO excluding the impact of interest expense and other income or expenses. Net income attributable to the partnership includes net income attributable to limited partners, the general partner, and non-controlling interests redeemable partnership units held by Brookfield, Exchange LP Units and class A shares of BIPC.

The Statements of Funds from Operations above are prepared on a basis that is consistent with the Partnerships Supplemental Information and differs from net income as presented in Brookfield Infrastructures Consolidated Statements of Operating Results on page 7 of this release, which is prepared in accordance with IFRS. Management uses funds from operations (FFO) as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing Brookfield Infrastructures results.

Brookfield Infrastructure Partners L.P.Statements of Funds from Operations per Unit

For the three months For the twelve months ended December 31 ended December 31US$, unaudited 2020 2019 2020 2019 Earnings per limited partnership $ 0.58 $ (0.06 ) $ 0.35 $ 0.06 unit^1Add back or deduct the following:Depreciation and amortization 0.70 0.48 2.22 1.98 Deferred taxes and other items (0.42 ) 0.35 0.56 1.02 FFO per unit^2 $ 0.86 $ 0.77 $ 3.13 $ 3.06

-- Average number of limited partnership units outstanding on a time weighted average basis for the three and twelve-month periods ended December31, 2020 were 295.4million and 294.7million, respectively (2019 293.5million and 285.6million). Earnings per limited partnership unit have been adjusted to reflect the dilutive impact of the special distribution. -- Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redeemable partnership units held by Brookfield, Exchange LP units, and class A shares of BIPC for limited partnership units, as if the special distribution had been completed prior to the periods presented, for the three and twelve-month periods ended December31, 2020 were 465.0 million and 464.9 million, respectively (2019 464.8 million and 452.9 million). Average number of units outstanding on a fully diluted time weighted average basis, excluding the impact of the special distribution, for the three and twelve-month periods ended December31, 2020 were 418.5 million and 418.4 million, respectively (2019 418.3 million and 407.6 million).

Notes:The Statements of Funds from Operations per unit above are prepared on a basis that is consistent with the Partnerships Supplemental Information and differs from net income per limited partnership unit as presented in Brookfield Infrastructures Consolidated Statements of Operating Results on page 7 of this release, which is prepared in accordance with IFRS. Management uses funds from operations per unit (FFO per unit) as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing Brookfield Infrastructures results.

Brookfield Infrastructure Partners L.P. Statements of Partnership Capital

As ofUS$ millions, unaudited Dec 31, 2020 Dec 31, 2019 Assets Operating groups Utilities $ 2,896 $ 3,112 Transport 4,209 4,058 Midstream 2,245 2,127 Data 1,995 1,318 Corporate cash and cash equivalents 464 273 $ 11,809 $ 10,888 Liabilities Corporate borrowings $ 3,158 $ 2,475 Other liabilities 2,062 1,284 5,220 3,759 Capitalization Partnership capital 6,589 7,129 $ 11,809 $ 10,888

Notes:Partnership capital in these statements represents Brookfield Infrastructures investments in its operations on a segmented basis, net of underlying liabilities and non-controlling interests, and includes partnership capital attributable to limited partners, the general partner and non-controlling interests redeemable partnership units held by Brookfield, Exchange LP Units, and class A shares of BIPC.

The Statements of Partnership Capital above are prepared on a basis that is consistent with the Partnerships Supplemental Information and differs from the Brookfield Infrastructures Consolidated Statements of Financial Position on page 6 of this release, which is prepared in accordance with IFRS. Readers are encouraged to consider both bases of presentation in assessing Brookfield Infrastructure's financial position.

Brookfield Infrastructure Corporation ReportsFourth Quarter 2020 Results

The Board of Directors of Brookfield Infrastructure Corporation (BIPC or our company) (NYSE, TSX: BIPC) today has declared a quarterly dividend in the amount of $0.51 per class A exchangeable subordinate voting share of BIPC (a Share), payable on March 31, 2021 to shareholders of record as at the close of business on February 26, 2021. This dividend is identical in amount per Share and has identical record and payment dates to the quarterly distribution announced today by BIP on BIPs units.

The Shares of BIPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of Brookfield Infrastructure Partnership L.P. (BIP or the Partnership) (NYSE: BIP; TSX: BIP.UN). We believe economic equivalence is achieved through identical dividends and distributions on the Shares and BIPs units and each Share being exchangeable at the option of the holder for one BIP unit at any time. Given the economic equivalence, we expect that the market price of the Shares will be significantly impacted by the market price of BIPs units and the combined business performance of our company and BIP as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review BIPs letter to unitholders, supplemental information and its other continuous disclosure filings. BIPs letter to unitholders and supplemental information are available at www.brookfield.com/infrastructure. Copies of the Partnerships continuous disclosure filings are available electronically on EDGAR on the SECs website at www.sec.gov or on SEDAR at www.sedar.com.

Results

The net income and Funds from Operations (FFO) of BIPC is fully attributed to the Partnership and the earnings of BIPC are fully captured in the Partnerships financial statements and results.

For the three months For the year ended ended December 31, December 31,US$ millions, unaudited^1 2020 2019 2020 2019 Net (loss) income attributable $ (102 ) $ 51 $ (552 ) $ 197 to the PartnershipFFO^2 $ 105 $ 110 $ 401 $ 432

BIPC reported a net loss for the year of $552 million compared to net income of $197 million in the prior year. Earnings for the current year benefited from capital commissioned into rate base at our U.K. regulated distribution business and inflation-indexation at our Brazilian regulated gas transmission business. These positive impacts were more than offset by revaluation losses recognized on our Shares that are classified as liabilities under IFRS, and the impact of foreign exchange.

Our business generated FFO of $401 million for the year, representing a 4% increase over the prior year after adjusting for a weaker Brazilian real. Results benefited from inflationary-indexation and additions to rate base, however these positive factors were more than offset by the impacts of foreign exchange and lower connections activity at our U.K. regulated distribution business.

Note: This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. The words believe, expect, will derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release include statements regarding the impact of the market price of BIPs units and the combined business performance of our company and BIP as a whole on the market price of the Shares. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products and services, the ability to achieve growth within Brookfield Infrastructures businesses and in particular completion on time and on budget of various large capital projects, which themselves depend on access to capital and continuing favorable commodity prices, and our ability to achieve the milestones necessary to deliver the targeted returns to our unitholders, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the ability to effectively complete transactions in the competitive infrastructure space (including the ability to complete announced and potential transactions that may be subject to conditions precedent, and the inability to reach final agreement with counterparties to transactions being currently pursued, given that there can be no assurance that any such transaction will be agreed to or completed) and to integrate acquisitions into existing operations, the future performance of these acquisitions, changes in technology which have the potential to disrupt the business and industries in which we invest, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the U.S. registration statement on Form F-1 and Canadian prospectus filed in connection with the distribution of the Shares on March 31, 2020 with securities regulators in Canada and the United States and the documents incorporated by reference therein, including under Risk Factors in the Partnerships most recent Annual Report on Form 20-F and other risks and factors that are described therein and in other documents filed by the Partnership and BIPC with the securities regulators in Canada and the United States. Except as required by law, Brookfield Infrastructure Corporation undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

-- Brookfield Infrastructure Corporation was established on August 30, 2019 by the Partnership. On March 30, 2020, the Partnership contributed its regulated utilities businesses in Brazil and the U.K. to our company.For the periods prior to March 30, 2020, the financial statements represent a combined carve-out of the assets, liabilities, revenues, expenses, and cash flows of the businesses that were contributed to our company effective March 30, 2020. -- FFO is defined as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, and non-cash valuation gains or losses. We also exclude from FFO dividends paid on exchangeable shares of our company that are presented as interest expense, as well as interest expense on loans payable to the Partnership which represent the Partnerships investment in our company. A reconciliation of net income to FFO is available on page 17 of this release.

Brookfield Infrastructure Corporation Consolidated Statements of Financial Position

As ofUS$ millions, unaudited Dec 31, Dec 31, 2020 2019 Assets Cash and cash equivalents $ 192 $ 204 Accounts receivable and other 394 390 Property, plant and equipment 5,111 4,497 Intangible assets 2,948 3,936 Goodwill 528 667 Deferred tax asset and other 171 159 Total assets $ 9,344 $ 9,853 Liabilities and Equity Accounts payable and other $ 505 $ 487 Exchangeable and class B shares 2,221 ? Non-recourse borrowings 3,477 3,526 Loans payable to Brookfield Infrastructure 1,143 ? Financial liabilities 1,031 1,008 Deferred tax liabilities and other 1,539 1,555 Equity Equity in net assets attributable to the (1,722 ) 1,654 PartnershipNon-controlling interest 1,150 1,623 Total equity (572 ) 3,277 Total liabilities and equity $ 9,344 $ 9,853

Brookfield Infrastructure CorporationConsolidated Statements of Operating Results

For the three For the twelve months months ended December 31 ended December 31US$ millions, unaudited 2020 2019 2020 2019 Revenues $ 375 $ 406 $ 1,430 $ 1,619 Direct operating costs (68 ) (67 ) (244 ) (244 )General and administrative expense (10 ) (9 ) (33 ) (30 )Depreciation and amortization (71 ) (77 ) (283 ) (308 )expense 226 253 870 1,037 Interest expense (61 ) (36 ) (214 ) (156 )Mark-to-market on hedging items and (25 ) 9 (61 ) 5 foreign currencyrevaluationRemeasurement of exchangeable and (79 ) ? (511 ) ? class B sharesOther expense (15 ) (12 ) (47 ) (44 )Income before income tax 46 214 37 842 Income tax expense Current (44 ) (44 ) (167 ) (175 )Deferred (19 ) (25 ) (102 ) (97 )Net (loss) income $ (17 ) $ 145 $ (232 ) $ 570 Attributable to: Partnership $ (102 ) $ 51 $ (552 ) $ 197 Non-controlling interest 85 94 320 373

Brookfield Infrastructure CorporationConsolidated Statements of Cash Flows

For the three For the twelve months months ended December 31 ended December 31US$ millions, unaudited 2020 2019 2020 2019 Operating Activities Net (loss) income $ (17 ) $ 145 $ (232 ) $ 570 Adjusted for the following items: Depreciation and amortization expense 71 77 283 308 Mark-to-market on hedging items and other 37 1 110 35 Remeasurement of exchangeable and class B 79 ? 511 ? sharesDeferred income tax expense 19 25 102 97 Change in non-cash working capital, net (44 ) (22 ) (44 ) 73 Cash from operating activities 145 226 730 1,083 Investing Activities Purchase of long-lived assets, net of (108 ) (133 ) (399 ) (441 )disposalsCash used by investing activities (108 ) (133 ) (399 ) (441 ) Financing Activities Distributions to non-controlling interest (173 ) (190 ) (436 ) (525 )Distributions to, net of contributions ? (114 ) (33 ) (250 )from, the PartnershipProceeds from borrowings 66 149 551 316 Repayments of borrowings (16 ) (14 ) (399 ) (55 )Cash used by financing activities (123 ) (169 ) (317 ) (514 ) Cash and cash equivalents Change during the period $ (86 ) $ (76 ) $ 14 $ 128 Impact of foreign exchange on cash 28 (5 ) (26 ) (23 )Balance, beginning of period 250 285 204 99 Balance, end of period $ 192 $ 204 $ 192 $ 204

Brookfield Infrastructure CorporationStatements of Funds from Operations

For the three months For the twelve months ended December 31 ended December 31US$ millions, unaudited 2020 2019 2020 2019 Adjusted EBITDA Utilities $ 144 $ 149 $ 545 $ 585 Corporate (10 ) (9 ) (33 ) (30 )Total 134 140 512 555 Financing costs (18 ) (20 ) (71 ) (80 )Other income (11 ) (10 ) (40 ) (43 )Funds from operations (FFO) 105 110 401 432 Depreciation and amortization (40 ) (39 ) (151 ) (148 )Deferred taxes and other items (167 ) (20 ) (802 ) (87 )Net (loss) income attributable $ (102 ) $ 51 $ (552 ) $ 197 to the Partnership

Notes:

Funds from operations in this statement is on a segmented basis and represents the operations of Brookfield Infrastructure Corporation net of charges associated with related liabilities and non-controlling interests. Adjusted EBITDA is defined as FFO excluding the impact of interest expense and other income or expenses. Net income attributable to shareholders includes net income attributable to the Partnership prior to and after the special distribution.

The Statements of Funds from Operations above are prepared on a basis that differs from net income as presented in Brookfield Infrastructure Corporations Consolidated Statements of Operating Results on page 15 of this release, which is prepared in accordance with IFRS. Management uses FFO as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing our companys results.