GlobeNewswire Inc | Nov 9, 2020 06:41AM EST

November 09, 2020

BROOKFIELD, NEWS, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) today announced its results for the third quarter ended September 30, 2020.

Our businesses continued to demonstrate their resilience during the third quarter, with each segment delivering solid operating results. We have also benefited from the completion of two highly cash-generative investments that align with our current strategic focus, said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure Partners. Looking ahead, we anticipate 2021 will be a year of meaningful growth for Brookfield Infrastructure. Our very strong liquidity position, along with the positive momentum being generated by our capital recycling program, should enhance our ability to execute on compelling opportunities.

For the three months For the nine months ended September ended September 30 30US$ millions (except per unit amounts), 2020 2019 2020 2019unaudited^1Net income^2 $ 5 $ 82 $ 63 $ 210? per unit^3,4 $ (0.12 ) $ 0.06 $ (0.22 ) $ 0.13FFO^5 $ $ 338 $ 1,056 $ 1,026 365? per unit (split-adjusted)^6 $ $ 0.73 $ $ 2.29 0.79 2.27

Net income attributable to the partnership for the three-month period ended September 30, 2020 was $5million, compared to $82 million for the same period in the prior year. After adjusting for the impact of a weaker Brazilian real, performance improved across all operating segments, reflecting organic growth and contributions from recently completed acquisitions. These positive impacts were more than offset by fair value adjustments related to our corporate hedging program which resulted in a loss of $60 million in the current period, compared to a gain of $60 million recorded in the prior year.

Funds from operations for the quarter grew by 8% on a year-over-year basis, primarily driven by strong performance within our utility, energy, and data infrastructure segments. Our business grew organically from inflation-indexation on 75% of our total revenues and the commissioning of $650 million of new capital projects in the last 12 months. Results for the period also include the initial contribution of recently completed new investments. Consistent with the prior quarter, the depreciation of the Brazilian real had the single largest negative impact on results, reducing FFO by $30 million relative to the same period in 2019.

Segment Performance

Our utilities segment generated FFO of $139 million, which represents a 6% increase over the prior year after adjusting for the impact of weaker foreign currencies. In general, our regulated and contracted utilities are performing well in the current environment. Underlying results in the quarter benefited from inflation-indexation, approximately $300 million of capital added to rate base and the contribution from our North American regulated transmission business acquired in late 2019.

FFO from our transport segment totaled $135 million, an increase of 5% compared to the prior year despite some softness in our volumes related to the economic shutdowns. Favorable results benefited from a rent settlement at our U.K. port operation, higher agricultural volumes across our rail networks and the contribution of our North American rail operation which was acquired in late 2019.

FFO from our energy segment totaled $115 million, a meaningful increase compared to the prior year quarter of $100 million. Performance across our midstream assets was ahead of the prior year as our highly contracted cash flows have been unimpacted in the current environment. Our distributed energy businesses grew by approximately 20% relative to the prior year after removing the contribution from our Australian district energy business that was sold last November. This growth was driven by strong performance at our North American residential infrastructure business which added 58,000 of annuity-based rental contracts in the last year.

Our fast-growing data infrastructure segment delivered FFO of $50 million, which represents an increase of nearly 40% compared to the prior year. We have continued to expand our global data transmission and distribution portfolio and this step-change increase in FFO reflects several new investments completed in the last 12 months. Results for the quarter include the partial period contribution from the acquisition of 135,000 telecom towers in India and capital deployed in our data distribution businesses in the U.K. and New Zealand.

The following table presents FFO by segment:

For the three months For the nine months ended September 30 ended September 30US$ millions, 2020 2019 2020 2019 unauditedFFO by segment Utilities $ $ 145 $ 415 $ 425 139Transport 135 128 363 402 Energy 100 303 115 336Data Infrastructure 36 135 94 50Corporate ) (71 ) (193 ) (198 ) (74FFO $ $ 338 $ 1,056 $ 1,026 365

Update on Strategic Initiatives

During the quarter, we closed two acquisitions that will contribute significantly to results going forward:

-- Indian Telecom Towers In August, we closed the acquisition of 135,000 operational telecom towers from Reliance Jio. We invested approximately $3.4 billion of equity (BIPs share approximately $600million). Reliance Jio is the anchor tenant under a 30-year Master Services Agreement, which provides a contracted cash flow profile with substantial downside protection. Our business plan involves building out the portfolio to 175,000 towers in the near term. -- U.S. LNG Export Facility In September, we acquired an interest in Cheniere Energy Partners L.P. (Cheniere) at an equity value of $1.5 billion (BIPs share approximately $425million). Cheniere owns Sabine Pass Liquefaction, LLC, a world class LNG export facility with 85% of revenue generated under long-term contracts. These contracts are secured with globally diversified and highly creditworthy counterparties. The recently constructed facility has ample expansion capacity to meet rising demand for low-cost U.S. LNG as global decarbonization efforts increase.

Distribution and Dividend Declaration

The Board of Directors has declared a quarterly distribution in the amount of $0.485 per unit, payable on December 31, 2020 to unitholders of record as at the close of business on November 30, 2020. The regular quarterly dividends on the Cumulative Class A Preferred Limited Partnership Units, Series 1, Series 3, Series5, Series 7, Series 9, Series 11 and Series 13 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 $0.485 per share, also payable on December 31, 2020 to shareholders of record as at the close of business on November30, 2020.

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, energy and data infrastructure 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 $575 billion 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 Third Quarter 2020 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 November 9, 2020 at 9:00 a.m. Eastern Time at https://edge.media-server.com/mmc/p/3627oqw7 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: 8748907).

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.

1. Please refer to page 11 for results of Brookfield Infrastructure Corporation.

2. 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.

3. Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month period ended September 30, 2020 were 295.3 million and 294.5 million, respectively (2019 290.9 million and 282.9 million).

4. Results in a loss on a per unit basis for the three and nine-month periods ended September 30, 2020 as allocation of net income is reduced by preferred unit and incentive distributions.

5. 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 8 of this release.

6. 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 nine-month periods ended September 30, 2020 were 464.9 million and 464.9 million, respectively (2019 460.7 million and 448.9million). Average number of units outstanding on a fully diluted time weighted average basis, excluding the impact of the special distribution, for the three and nine-month periods ended September 30, 2020 were 418.5 million and 418.4 million, respectively (2019 414.6 million and 404.0 million).

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

As of September Dec 31,US$ millions, unaudited 30, 2020 2019 Assets Cash and cash equivalents $ 1,012 $ 827Financial assets 404 149Property, plant and equipment and investment properties 28,450 23,429Intangible assets 13,084 14,386Investments in associates and joint ventures 4,700 4,967Goodwill 6,269 6,553Deferred income taxes and other 4,221 5,997Total assets $ 58,140 $ 56,308 Liabilities and partnership capital Corporate borrowings $ 2,882 $ 2,475Non-recourse borrowings 20,604 18,544Financial liabilities 3,387 2,173Deferred income taxes and other 10,625 10,939 Partnership capital Limited partners 3,695 5,048General partner 17 24Non-controlling interest attributable to: Redeemable partnership units held by Brookfield 1,466 2,039Class A shares of BIPC and Exchange LP units 566 18Interest of others in operating subsidiaries 13,768 14,113Preferred unitholders 1,130 935Total partnership capital 20,642 22,177Total liabilities and partnership capital $ 58,140 $ 56,308

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

US$ millions, except per For the three months For the nine monthsunit information, ended September 30 ended September 30unaudited 2020 2019 2020 2019 Revenues $ 2,209 $ 1,664 $ 6,351 $ 4,942 Direct operating costs (1,185 ) (850 ) ) (2,488 ) (3,487General and (86 ) (75 ) (219 ) (200 )administrative expenseDepreciation and (411 ) (317 ) ) (932 )amortization expense (1,186 527 422 1,322 1,459Interest expense (278 ) (229 ) (807 ) (682 )Share of earnings fromassociates and joint 17 36 76 88 venturesMark-to-market on hedging (66 ) 70 104 items 57Other income (expense) 16 (36 ) ) (14 ) (218Income before income tax 216 263 818 567Income tax (expense) recoveryCurrent (70 ) (55 ) ) (180 ) (183Deferred 2 (3 ) ) (14 ) (54Net income 148 205 624 330Non-controlling interestof others in operating (143 ) (123 ) (267 ) (414 )subsidiariesNet income attributable $ 5 $ 82 $ $ 210 to partnership 63 Attributable to: Limited partners (26 ) 29 ) 65 (41General partner 46 41 118 137Non-controlling interest ? redeemable partnership (11 ) 12 (19 ) 27 units heldby BrookfieldNon-controlling interest? class A shares of ) ? ) ? Brookfield Infrastructure (4 (14CorporationBasic and diluted (loss)earnings per unit attributable to:Limited partners^1 $ (0.12 ) $ 0.06 $ ) $ 0.13 (0.22

-- Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month period ended September 30, 2020 were 295.3 million and 294.5 million, respectively (2019 290.9 million and 282.9 million). Earnings (loss) 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 nine months months US$ millions, unaudited ended September 30 ended September 30 2020 2019 2020 2019 Operating Activities Net income $ 148 $ 205 $ $ 624 330Adjusted for the following items: Earnings from investments inassociates and joint ventures, net 3 46 75 78 of distributions receivedDepreciation and amortization expense 411 317 1,186 932 Mark-to-market on hedging items, 130 (4 ) 395 6 provisions and otherDeferred income tax (recovery) (2 ) 3 54 14 expenseChange in non-cash working capital, 86 22 73 76 netCash from operating activities 776 589 2,113 1,730 Investing Activities Net investments in: Operating assets ) (22 ) (2,683 ) (2,212 ) (3,405Associates ) (424 ) (309 ) (289 ) (309Long-lived assets ) (302 ) ) (815 ) (328 (970Financial assets ) (90 ) ) (129 ) (52 (308Net settlements of foreign exchange 23 59 contracts ? 83Cash used by investing activities ) (815 ) (4,187 ) (3,386 ) (4,094 Financing Activities Distributions to limited and general ) (263 ) (848 ) (764 )partners (283Net (repayments) borrowings: Corporate ) 578 444 68 (221Subsidiary 111 958 152 383Deposit received from (repaid to) (823 ) ? parent 545 545Net preferred units and preferred ? 72 shares issued 195 195Net partnership units issued 2 803 779 7Net capital provided by non-controlling (164 ) 1,587 726 interest and other 2,545Cash from financing activities 242 2,313 1,839 2,935 Cash and cash equivalents Change during the period $ ) $ 16 $ $ 183 (383 239Cash reclassified as held for sale (16 ) ? (16 ) ?Impact of foreign exchange on cash (38 ) (54 ) (30 ) 15Balance, beginning of period 1,380 715 540 827Balance, end of period $ 1,012 $ 677 $ $ 677 1,012

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

For the three months For the nine months ended September 30 ended September 30US$ millions, 2020 2019 2020 2019 unaudited Adjusted EBITDAUtilities $ 185 $ 190 $ $ 561 552Transport 171 174 547 482Energy 150 128 378 441Data 65 46 121 Infrastructure 174Corporate (86 ) (75 ) ) (200 ) (219Total 485 463 1,430 1,407 Financing (136 ) (145 ) ) (439 )costs (435Other income 16 20 58 61Funds fromoperations 365 338 1,056 1,026 (FFO) Depreciation and (239 ) (219 ) (708 ) (673 )amortizationDeferred taxesand other (121 ) (37 ) (285 ) (143 )itemsNet incomeattributable $ $ 82 $ $ 210 to the 5 63partnership

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 6 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 nine months ended September 30 ended September 30US$, unaudited 2020 2019 2020 2019 Earnings per limited $ (0.12 ) $ 0.06 $ (0.22 ) $ 0.13 partnership unit^1Add back or deduct the following:Depreciation and 0.51 0.48 1.50 amortization 1.52Deferred taxes and other 0.40 0.19 items 0.97 0.66FFO per unit^2 $ 0.79 $ 0.73 $ $ 2.29 2.27



Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month periods ended September 30, 20201. was 295.3 million and 294.5 million, respectively (2019 ? 290.9 million and 282.9 million). Earnings (loss) 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 nine-month periods ended2. September 30, 2020 was 464.9 million and 464.9 million, respectively (2019 ? 460.7 million and 448.9 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 nine-month period ended September 30, 2020, were 418.5 million and 418.4 million, respectively (2019 ? 414.6million and 404.0 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 6 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 of September 30, Dec 31,US$ millions, unaudited 2020 2019 Assets Operating groups Utilities $ 1,802 $ 2,178Transport 3,578 3,991Energy 2,953 3,128Data Infrastructure 1,832 1,318Cash and cash equivalents 435 273 $ 10,600 $ 10,888 Liabilities Corporate borrowings $ 2,882 $ 2,475Other liabilities 1,974 1,284 4,856 3,759Capitalization Partnership capital 5,744 7,129 $ 10,600 $ 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 5 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 Reports Third 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 $0.485 per class A exchangeable subordinate voting share of BIPC (a Share), payable on December 31, 2020 to shareholders of record as at the close of business on November 30, 2020. 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 nine months ended September 30 ended September 30US$ millions, unaudited^1 2020 2019 2020 2019Net (loss) income attributable $ (301 ) $ 50 $ (450 ) $ 146to the PartnershipFFO^2 $ $ 109 $ $ 322 99 296

BIPC reported net losses for the quarter of $301 million compared to net income of $50 million in the same period during the prior year. Results for the current quarter 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 companys exchangeable shares that are classified as liabilities under IFRS, and the impact of foreign exchange.

Our business generated FFO of $99 million for the quarter, representing a 4% increase over the same period during the prior year after adjusting for a weaker Brazilian real. FFO in the current quarter 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.

1. 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 March30, 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 March30, 2020.

2. 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 16of this release.

Brookfield Infrastructure Corporation Consolidated Statements of Financial Position

As of September Dec 31,US$ millions, unaudited 30, 2020 2019 Assets Cash and cash equivalents $ 250 $ 204Accounts receivable and other 339 390Financial assets 44 29Property, plant and equipment 4,558 4,497Intangible assets 2,738 3,936Goodwill 488 667Deferred tax asset and other 142 130Total assets $ 8,559 $ 9,853 Liabilities and Equity Accounts payable and other $ 478 $ 487Exchangeable and class B shares 2,142 ?Non-recourse borrowings 3,215 3,526Loans payable to Brookfield Infrastructure 1,130 ?Financial liabilities 1,026 1,008Deferred tax liabilities and other 1,378 1,555 Equity Equity in net assets attributable to the (1,879 ) 1,654PartnershipNon-controlling interest 1,069 1,623Total equity (810 ) 3,277Total liabilities and equity $ 8,559 $ 9,853

Brookfield Infrastructure CorporationConsolidated Statements of Operating Results

For the three For the nineUS$ millions, unaudited months months ended September 30 ended September 30 2020 2019 2020 2019 Revenues $ 349 $ 406 $ 1,055 $ 1,213 Direct operating costs ) (61 ) ) (177 ) (60 (176General and administrative expense (9 ) (8 ) ) (21 ) (23Depreciation and amortization expense (69 ) (75 ) ) (231 ) (212 262 784 211 644Interest expense (59 ) (39 ) ) (120 ) (153Mark-to-market on hedging items and (14 ) (3 ) ) (4 )foreign currency revaluation (36Remeasurement of exchangeable and class (292 ) ? ) ? B shares (432Other expense (7 ) (11 ) ) (32 ) (32(Loss) income before income tax (161 ) 209 ) 628 (9Income tax expense Current (44 ) (44 ) ) (131 ) (123Deferred (17 ) (24 ) ) (72 ) (83Net (loss) income $ ) $ 141 $ ) $ 425 (222 (215 Attributable to: Partnership (301 ) 50 (450 ) 146 Non-controlling interest 79 91 235 279

Brookfield Infrastructure CorporationConsolidated Statements of Cash Flows

For the nine For the three months months US$ millions, unaudited ended September 30 ended September 30 2020 2019 2020 2019 Operating Activities Net (loss) income $ ) $ 141 $ ) $ 425 (222 (215Adjusted for the following items:Depreciation and 75 231 amortization expense 69 212Mark-to-market on hedging 25 7 34 items and other 73Remeasurement of exchangeable and class B 292 ? 432 ? sharesDeferred income tax 17 24 72 expense 83Change in non-cash 91 95 working capital, net 56 ?Cash from operating 237 338 857 activities 585 Investing Activities Purchase of long-lived ) (110 ) ) (308 )assets, net of disposals (107 (291Cash used by investing ) (110 ) ) (308 )activities (107 (291 Financing Activities Distributions to (75 ) (131 ) ) (335 )non-controlling interest (263Distributions to, net of contributions from, the ? (64 ) (33 ) (136 )PartnershipProceeds from borrowings 59 167 50 485Repayments of borrowings ) ? ) (41 ) (3 (383Cash used by financing (28 ) (136 ) ) (345 )activities (194 Cash and cash equivalents Change during the period $ 102 $ 92 $ $ 204 100Impact of foreign ) (19 ) ) (18 )exchange on cash (13 (54Balance, beginning of 161 212 99 period 204Balance, end of period $ 250 $ 285 $ $ 285 250

Brookfield Infrastructure CorporationStatements of Funds from Operations

For the three months For the nine months ended September 30, ended September 30US$millions, 2020 2019 2020 2019 unaudited Adjusted EBITDAUtilities $ 135 $ 148 $ $ 436 401Corporate (9 ) (8 ) ) (21 ) (23Total 126 140 378 415 Financing (17 ) (20 ) ) (60 )costs (53Other income (10 ) (11 ) ) (33 ) (29Funds from operations 99 109 296 322 (FFO) Depreciation and (37 ) (35 ) (111 ) (109 )amortizationDeferred taxes and (363 ) (24 ) (635 ) (67 )other itemsNet (loss)income attributable $ (301 ) $ 50 $ (450 ) $ 146 to thePartnership

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 14 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.