Brookfield Asset Management Inc. 2020 ANNUAL REPORT This page is intentionally left blank Five-Year Financial Record AS AT AND FOR THE YEARS ENDED DEC. 31 2020 2019 2018 2017 2016 PER SHARE1 Dividends2 Cash $ 0.48 $ 0.43 $ 0.40 $ 0.37 $ 0.35 Special — — — 0.07 0.30 Net (loss) income (0.12) 1.73 2.27 0.89 1.03 Funds from operations3 3.27 2.71 2.90 2.49 2.12 Market trading price – NYSE1 41.27 38.53 25.57 29.03 20.01 1. Adjusted to reflect the three-for-two stock split effective April 1, 2020. 2. See Corporate Dividends on page 47. 3. See definition in the MD&A Glossary of Terms beginning on page 115. CONTENTS Brookfield at a Glance ......................................................................................................................................................... 3 Letter to Shareholders .........................................................................................................................................................6 Management’s Discussion & Analysis ..............................................................................................................................16 PART 1 – Our Business and Strategy ........................................................................................................................ 19 PART 2 – Review of Consolidated Financial Results �������������������������������������������������������������������������������������������������32 PART 3 – Operating Segment Results ������������������������������������������������������������������������������������������������������������������������50 PART 4 – Capitalization and Liquidity ������������������������������������������������������������������������������������������������������������������������78 PART 5 – Accounting Policies and Internal Controls ������������������������������������������������������������������������������������������������87 PART 6 – Business Environment and Risks ���������������������������������������������������������������������������������������������������������������96 Glossary of Terms �������������������������������������������������������������������������������������������������������������������������������������������������������115 Internal Control Over Financial Reporting .................................................................................................................... 121 Consolidated Financial Statements ................................................................................................................................126 Shareholder Information .................................................................................................................................................216 Board of Directors and Officers ......................................................................................................................................217 Throughout our interim report we use the following icons: Asset Real Renewable Infrastructure Private Residential Corporate Management Estate Power Equity Development Activities 2020 ANNUAL REPORT 2 Brookfield at a Glance We are a leading global alternative asset manager with $600 billion of assets under management, and a focus on investing in long-life, high-quality assets and businesses that help form the backbone of the global economy. Our goal is to enable the companies and assets we invest in, as well as the communities in which we operate, to thrive over the long term. We serve a broad range of institutional investors, sovereign wealth funds and individuals around the world. As stewards of the capital our investors entrust to us, we leverage our experience and deep operating expertise to create long-term value on their behalf, helping them meet their goals and protect their financial futures. Our capital structure is built to allow us to finance investments by drawing from various sources—including our own balance sheet, our publicly listed affiliates’ capital and capital from our institutional investors. This access to flexible, large-scale capital allows us to pursue transactions for our investors that are significant in size, generate attractive financial returns and cash flows, and support the growth of our asset management activities. Importantly, it also means that our capital is invested alongside that of our investors, ensuring that our interests are always aligned with theirs. At Brookfield, sound Environmental, Social and Governance (ESG) practices are integral to building resilient businesses and creating long-term value for our investors and stakeholders. These practices are routed in our philosophy of conducting business with a long-term perspective in a sustainable and ethical manner. This means operating with robust governance and other ESG principles and practices, and maintaining a disciplined focus on embedding these principles into all our activities. Our people remain the most important element of our business, and our culture is based on integrity, collaboration and discipline. We place a strong emphasis on diversity across all our businesses, because we recognize that our success depends on fostering a wide range of perspectives, experiences and world views. • Investment focus: We focus on real estate, infrastructure, renewable power, private equity and credit. • Diverse product offering: We offer core, core-plus, value-add, opportunistic/growth equity and credit strategies through closed-end and perpetual vehicles in both the public and private markets. • Focused investment strategies: We invest where we can bring our competitive advantages to bear, leveraging our global reach, access to large-scale capital and operational expertise. • Disciplined financing approach: We take a conservative approach to the use of leverage, ensuring we can preserve capital across all business cycles. • Sustainability: We are committed to ensuring that the assets and businesses we invest in are set up for long-term success, and we seek to have a positive impact on the environment and the communities in which we operate. “Brookfield,” the “company,” “we,” “us” or “our” refers to Brookfield Asset Management Inc. and its consolidated subsidiaries. The “Corporation” refers to our asset management business which is comprised of our asset management and corporate business segments. Our “invested capital” includes our “listed affiliates,” Brookfield Property Partners L.P., Brookfield Property REIT Inc., Brookfield Renewable Partners L.P., Brookfield Renewable Corporation, Brookfield Infrastructure Partners L.P., Brookfield Infrastructure Corporation and Brookfield Business Partners L.P., which are separate public issuers included within our Real Estate, Renewable Power, Infrastructure and Private Equity segments, respectively. We use “private funds” to refer to our real estate funds, infrastructure funds and private equity funds. Please refer to the Glossary of Terms beginning on page 115 which defines our key performance measures that we use to measure our business. 3 BROOKFIELD ASSET MANAGEMENT Brookfield at a Glance GLOBAL REACH CANADA EUROPE & MIDDLE EAST $48B AUM $106B AUM ~9,300 operating employees ~33,200 operating employees LONDON TORONTO NEW YORK LOS ANGELES SHANGHAI DUBAI HONG KONG MUMBAI SÃO PAULO SYDNEY UNITED STATES SOUTH AMERICA ASIA PACIFIC $330B AUM $43B AUM $75B AUM ~44,600 operating employees ~26,100 operating employees ~35,500 operating employees Brookfield Corporate Offices Oaktree Corporate Offices QUICK FACTS $600B+ $312B ASSETS UNDER FEE-BEARING MANAGEMENT CAPITAL ~1,000 30+ ~150,000 INVESTMENT COUNTRIES OPERATING PROFESSIONALS EMPLOYEES EXCHANGES NYSE: BAM TSX: BAM.A 2020 ANNUAL REPORT 4 Investment Principles Our approach to investing is disciplined and proven—reflecting our more than 100-year history as an owner- operator. We focus on value creation and capital preservation, investing opportunistically in high-quality assets and businesses within our areas of expertise, managing them proactively and financing them conservatively— with the goal of generating stable, predictable and growing cash flows for all our investors. We recognize that generating attractive risk-adjusted returns often requires taking a contrarian approach to evaluating assets, businesses, markets or sectors. Our business is anchored by a set of core investment principles that guide our decision-making and determine how we measure success: BUSINESS • Operate our business and conduct our relationships with integrity PHILOSOPHY • Attract and retain high-caliber individuals who will grow with us over the long term • Ensure our people think and act like owners in all their decisions • Treat our investor and shareholder money like it’s our own • Embed strong ESG principles throughout our operations to help us ensure that our business model is sustainable INVESTMENT • Acquire high-quality assets and businesses APPROACH • Invest on a value basis, with the goal of maximizing return on capital • Enhance the value of investments through our operating expertise • Build sustainable cash flows to provide certainty, reduce risk and lower our cost of capital MEASURES FOR • Evaluate total return on capital over the long term SUCCESS • Encourage calculated risks, but compare returns with risk • Sacrifice short-term profit, if necessary, to achieve long-term capital appreciation • Seek profitability rather than growth, as size does not necessarily add value 5 BROOKFIELD ASSET MANAGEMENT Letter to Shareholders OVERVIEW (AS OF FEBRUARY 11TH, 2021) We ended the year with the best quarter