Constellation Software : Q1 2024 Management Discussion and Analysis

CONSTELLATION SOFTWARE INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")

The following discussion and analysis should be read in conjunction with the Unaudited Condensed Consolidated Interim Financial Statements for the three month period ended March 31, 2024, which we prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS). Certain information included herein is forward-looking and based upon assumptions and anticipated results that are subject to uncertainties. Should one or more of these uncertainties materialize or should the underlying assumptions prove incorrect, actual results may vary significantly from those expected. See "Forward-Looking Statements" and "Risks and Uncertainties".

Unless otherwise indicated, all dollar amounts are expressed in U.S. dollars. All references to "$" are to U.S. dollars and all references to "C$" are to Canadian dollars. Due to rounding, certain totals and subtotals may not foot and certain percentages may not reconcile.

Additional information about Constellation Software Inc. (the "Company", "Constellation" or "CSI"), including our most recently filed Annual Information Form ("AIF"), is available on SEDAR at www.sedarplus.ca.

Forward Looking Statements

Certain statements in this report may contain "forward looking" statements that involve risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Words such as "may", "will", "expect", "believe", "plan", "intend", "should", "anticipate" and other similar terminology are intended to identify forward looking statements. These statements reflect current assumptions and expectations regarding future events and operating performance as of the date of this MD&A May 10, 2024. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements, including, but not limited to, the factors discussed under "Risks and Uncertainties". Although the forward looking statements contained in this MD&A are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this MD&A and the Company assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances. This report should be viewed in conjunction with the Company's other publicly available filings, copies of which can be obtained electronically on SEDAR at www.sedarplus.ca.

Non-IFRS Measures

This MD&A includes certain measures which have not been prepared in accordance with IFRS such as Free cash flow available to shareholders.

Free cash flow available to shareholders ''FCFA2S'' refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, the IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our hurdle rate.

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FCFA2S is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities. See ''Results of Operations -Free cash flow available to shareholders" for a reconciliation of FCFA2S to net cash flows from operating activities.

Overview

We acquire, manage and build vertical market software ("VMS") businesses. Generally, these businesses provide mission critical software solutions that address the specific needs of our customers in particular markets. Our focus on acquiring businesses with growth potential, managing them well and then building them, has allowed us to generate significant cash flows and revenue growth during the past several years.

Our revenue consists primarily of software license fees, maintenance and other recurring fees, professional service fees and hardware sales. Software license revenue is comprised of non-recurring license fees charged for the use of software products licensed under multiple-year or perpetual arrangements. Maintenance and other recurring revenue primarily consists of fees charged for customer support on software products post-delivery and also includes recurring fees derived from combined software/support contracts, transaction revenues, managed services associated with CSI software that has been sold to the customer, and hosted software-as-a-service products. Professional service revenue consists of fees charged for implementation services, custom programming, product training, certain managed services, and consulting. Hardware and other revenue includes the resale of third party hardware as part of customized solutions, as well as sales of hardware assembled internally and the reimbursement of travel costs. Our customers typically purchase a combination of software, maintenance, professional services and hardware, although the type, mix and quantity of each vary by customer and by product.

Expenses consist primarily of staff costs, the cost of hardware, third party licenses, maintenance and professional services to fulfill our customer arrangements, travel and occupancy costs, depreciation, and other general operating expenses.

Preferred Share Investment in Lumine

On February 22 and 23, 2023 (as part of a series of transactions relating to the acquisition of WideOrbit Inc. ("WideOrbit")), the Company's subsidiary, Lumine Group Inc. ("Lumine"), completed a corporate reorganization. At the beginning of the period, the Company owned 63,582,712 preferred shares ("Lumine Preferred Shares") in the capital of the Company's subsidiary, Lumine. The Lumine Preferred Shares were non-voting and under certain conditions were redeemable at the option of CSI for a redemption price of $21.74 (the "Initial Face Value") per share. The redemption price was to either be settled in cash or through the issuance of a variable number of subordinate voting shares of Lumine ("Lumine Subordinate Voting Shares") based on the terms of the Lumine Preferred Shares, or any combination thereof. The Lumine Preferred Shares were also convertible into Lumine Subordinate Voting Shares at a conversion ratio of 1:2.4302106 at any time. The Lumine Preferred Shares entitled CSI to a fixed annual cumulative dividend of 5% per annum on the Initial Face Value.

On March 25, 2024, all of the Lumine Preferred Shares were automatically converted into Lumine Subordinate Voting Shares, and additional Lumine Subordinate Voting Shares were issued in satisfaction of the amounts owing in connection with the accrued dividends on the Lumine Preferred Shares. As of March 31, 2024, CSI holds 157,553,539 Lumine Subordinate Voting Shares.

Subsequent to the conversion, CSI continues to consolidate Lumine and now reflects an equity interest of

61.40% (December 31, 2023 - 0%) in Lumine and a non-controlling interest of 38.60% (December 31, 2023 - 100%).

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Results of Operations

(In millions of dollars, except percentages and per share amounts) Unaudited

Revenue

Expenses

Amortization of intangible assets Foreign exchange (gain) loss

IRGA / TSS membership liability revaluation charge Finance and other expense (income)

Bargain purchase gain

Impairment of intangible and other non-financial assets Redeemable preferred securities expense (income) Finance costs

Income before income taxes

Income tax expense (recovery)

Current income tax expense (recovery)

Deferred income tax expense (recovery)

Income tax expense (recovery)

Net income (loss) attributable to:

Common shareholders of CSI

Non-controlling interests

Net income (loss)

Net cash flows from operating activities Free cash flow available to shareholders

Weighted average number of shares outstanding

Basic and diluted

Net income (loss) per share

Basic and diluted

Net cash flows from operating activities per share Basic and diluted

Free cash flow available to shareholders per share Basic and diluted

Cash dividends declared per share

Basic and diluted

NM - Not meaningful

Three months ended Period-Over-Period

	March 31,		Change
	2024		2023		$	%
	2,353		1,919		434	23%
	1,800		1,502		298	20%
	242		193		50	26%
	(18)		10		(29)	NM
	81		39		42	108%
	(9)		(7)		(1)	20%
	(2)		(1)		(1)	153%
	10		2		8	472%
	58		188		(130)	-69%
	67		36		30	84%
	125		(43)		168	NM
	127		103		24	23%
	(75)		(62)		(12)	20%
	52		40		12	29%
	105		94		11	11%
	(31)		(177)		146	-82%
	74		(83)		156	NM
	737		632		104	16%
	446		453		(7)	-2%
	21.2		21.2
$	4.95	$	4.44	$	0.51	11%
$	34.76	$	29.85	$	4.91	16%
$	21.04	$	21.37	$	(0.33)	-2%
$	1.00	$	1.00	$	-	0%

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

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Comparison of the first quarter ended March 31, 2024 and 2023

Revenue:

Total revenue for the quarter ended March 31, 2024 was $2,353 million, an increase of 23%, or $434 million, compared to $1,919 million for the comparable period in 2023. The increase is primarily attributable to growth from acquisitions as the Company experienced organic growth of 4% in the quarter, 3% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each company in the financial period following acquisition compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by Constellation. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

The following table displays the breakdown of our revenue according to revenue type:

Licenses Professional services Hardware and other Maintenance and other recurring

$M - Millions of dollars

				Q123
Three months	Period-Over-	Proforma	Organic
ended March 31,	Period Change	Adj.	Growth
				(Note 1)
2024	2023	$	%	$	%
	($ in millions, except percentages)
88	81	7	8%	15	-8%
470	411	58	14%	65	-1%
59	57	2	4%	9	-11%
1,737	1,369	368	27%	255	7%
2,353	1,919	434	23%	344	4%

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

Note 1: Estimated pre-acquisition revenues for the three months ended March 31, 2023 from companies acquired after December 30, 2023. (Obtained from unaudited vendor financial information.)

For comparative purposes the table below shows the quarterly organic growth as compared to the same period in the prior year by revenue type since Q1 2022. Note that the estimated revenues achieved by acquired companies in the corresponding financial period preceding the date of acquisition by Constellation may be updated in the quarter following the quarter they were acquired resulting in slight variances to previously reported figures.

				Quarter Ended
	Mar. 31	Jun. 30	Sep. 30	Dec. 31	Mar. 31	Jun. 30	Sep. 30	Dec. 31	Mar. 31
	2022	2022	2022	2022	2023	2023	2023	2023	2024
Licenses	-13%	-21%	-16%	-7%	-9%	-1%	-7%	15%	-8%
Professional services	-5%	-8%	-7%	-9%	0%	1%	7%	4%	-1%
Hardware and other	-5%	-8%	-7%	36%	-1%	3%	10%	-18%	-11%
Maintenance and other recurring	4%	1%	-1%	1%	4%	6%	9%	7%	7%
Revenue	1%	-2%	-3%	-1%	2%	4%	7%	6%	4%

The following table shows the same information adjusting for the impact of foreign exchange movements.

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					Quarter Ended
	Mar. 31	Jun. 30	Sep. 30	Dec. 31	Mar. 31	Jun. 30	Sep. 30	Dec. 31	Mar. 31
	2022	2022	2022	2022	2023	2023	2023	2023	2024
Licenses	-11%	-17%	-11%	-3%	-7%	-1%	-9%	13%	-9%
Professional services	-2%	-3%	-2%	-5%	3%	1%	4%	2%	-2%
Hardware and other	-3%	-4%	1%	44%	2%	3%	6%	-20%	-12%
Maintenance and other recurring	7%	6%	5%	6%	6%	7%	7%	6%	6%
Revenue	4%	2%	2%	4%	5%	5%	5%	4%	3%

Expenses:

The following table displays the breakdown of our expenses:

	Three months ended	Period-Over-
	March 31,	Period Change
	2024	2023	$	%
Expenses	($ in millions, except percentages)
Staff	1,293	1,068	225	21%
Hardware	35	35	(0)	-1%
Third party license, maintenance
and professional services	215	185	30	16%
Occupancy	14	13	1	7%
Travel, Telecommunications, Supplies & Software
and equipment	112	89	23	26%
Professional fees	38	36	3	7%
Other, net	50	38	12	31%
Depreciation	44	39	5	13%
	1,800	1,502	298	20%

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

Overall expenses for the quarter ended March 31, 2024 increased 20%, or $298 million to $1,800 million, compared to $1,502 million during the same period in 2023. As a percentage of total revenue, expenses equalled 76% for the quarter ended March 31, 2024 and 78% for the same period in 2023. The change in valuation of the US dollar against most major currencies in which the Company transacts business resulted in an approximate 1% increase in expenses for the three months ended March 31, 2024 compared to the first quarter of 2023.

Staff expense - Staff expenses increased 21% or $225 million for the quarter ended March 31, 2024 over the same period in 2023. Staff expense can be broken down into five key operating departments: Professional Services, Maintenance, Research and Development, Sales and Marketing, and General and Administrative. Included within staff expenses for each of the above five departments are personnel and related costs associated with providing the necessary services. The table below compares the period over period variances.

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	Three months ended	Period-Over-
	March 31,	Period Change
	2024	2023	$	%
	($ in millions, except percentages)
Professional services	287	254	33	13%
Maintenance	246	202	44	22%
Research and development	360	285	75	26%
Sales and marketing	156	133	23	17%
General and administrative	243	193	50	26%
	1,293	1,068	225	21%

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

The increase in staff expenses for the quarter ended March 31, 2024 was primarily due to the growth in the number of employees compared to the same period in 2023 primarily due to acquisitions. Staff expenses in the first quarter of every year are typically higher as a percentage of revenue as compared to other quarters, largely attributable to increased payroll tax costs associated with our annual bonus payments that are made in the month of March.

Hardware expenses - Hardware expenses decreased 1% or $0.2 million for the quarter ended March 31, 2024 over the same period in 2023, as compared to the 4% increase in hardware and other revenue for the same periods. Hardware margin for the three months ended March 31, 2024 was 41% as compared to 39% for the same period in 2023.

Third party license, maintenance and professional services expenses - Third party license, maintenance and professional services expenses increased 16% or $30 million for the quarter ended March 31, 2024 over the same period in 2023. The increase is primarily due to third party license, maintenance and professional services expenses of acquired businesses.

Occupancy expenses - Occupancy expenses increased 7% or $1 million for the quarter ended March 31, 2024 over the same period in 2023. This increase is primarily due to the occupancy expenses of acquired businesses as certain existing businesses are reducing office space as a result of the increase in remote working environments.

Travel, Telecommunications, Supplies & Software and equipment expenses - Travel, Telecommunications, Supplies & Software and equipment expenses increased 26% or $23 million for the quarter ended March 31, 2024 over the same period in 2023. The increase in these expenses is primarily due to expenses incurred by acquired businesses.

Professional fees - Professional fees increased 7% or $3 million for the quarter ended March 31, 2024 over the same period in 2023. There are no individually material reasons contributing to this variance.

Other, net - Other expenses increased 31% or $12 million for the quarter ended March 31, 2024 over the same period in 2023. The following table provides a further breakdown of expenses within this category.

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	Three months ended	Period-Over-Period
	March 31,	Change
	2024	2023	$	%
	($ in millions, except percentages)
Advertising and promotion	31	25	7	28%
Recruitment and training	10	10	0	5%
Bad debt expense	1	4	(3)	-67%
R&D tax credits	(13)	(8)	(5)	71%
Contingent consideration	11	0	10	NM
Other expense, net	9	7	2	35%
	50	38	12	31%
NM - Not meaningful

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

The contingent consideration expense amounts recorded for the three months ended March 31, 2024 related to an increase (decrease) in anticipated acquisition earnout payment accruals primarily as a result of increases (decreases) to revenue forecasts for the associated acquisitions. Revenue forecasts are updated on a quarterly basis and the related anticipated acquisition earnout payment accruals are updated accordingly.

There are no individually material reasons contributing to the remaining variances.

Depreciation - Depreciation of property and equipment and right of use assets increased 13% or $5 million for the quarter ended March 31, 2024 over the same period in 2023. The increases are primarily due to the depreciation expense associated with acquired businesses.

Other Income and Expenses:

The following table displays the breakdown of our other income and expenses:

	Three months ended	Period-Over-
	March 31,	Period Change
	2024	2023	$	%
	($ in millions, except percentages)
Amortization of intangible assets	242	193	50	26%
Foreign exchange (gain) loss	(18)	10	(29)	NM
IRGA / TSS membership liability revaluation charge	81	39	42	108%
Finance and other expense (income)	(9)	(7)	(1)	20%
Bargain purchase gain	(2)	(1)	(1)	153%
Impairment of intangible and other non-financial assets	10	2	8	472%
Redeemable preferred securities expense (income)	58	188	(130)	-69%
Finance costs	67	36	30	84%
Income tax expense (recovery)	52	40	12	29%
NM - Not meaningful	480	500	(20)	-4%

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

Amortization of intangible assets - Amortization of intangible assets increased 26% or $50 million for the quarter ended March 31, 2024 over the same period in 2023. The increase in amortization expense is primarily attributable to an increase in the carrying amount of our intangible asset balance over the twelve-month period ended March 31, 2024 as a result of acquisitions completed during this twelve-month period.

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Foreign exchange - Most of our businesses are organized geographically so many of our expenses are incurred in the same currency as our revenues, which mitigates some of our exposure to currency fluctuations. For the quarter ended March 31, 2024, we realized a foreign exchange gain of $18 million compared to a loss of $10 million for the same period in 2023. The following table provides a breakdown of these amounts.

Unrealized foreign exchange (gain) loss related to:

• revaluation of intercompany loans between entities with differing functional currencies (1)
• revaulation of the Company's unsecured subordinated floating rate debentures as a result of the appreciation (depreciation) of the Canadian dollar against the US dollar.
• revaluation of the liability associated with the IRGA (Euro denominated liability)

Remaining foreign exchange (gain) loss

NM - Not meaningful

Three months ended	Period-Over-Period
March 31,	Change
2024	2023	$	%
($ in millions, except percentages)
3	3	1	23%
(9)	0	(9)	NM
(14)	8	(23)	NM
2	(1)	3	NM
(18)	10	(29)	NM

Due to rounding, certain totals may not foot and certain percentages may not reconcile.

1. Offsetting amounts recorded in other comprehensive income. Net impact to Total comprehensive income for each period is nil.

The remaining foreign exchange gains and losses per the table above are primarily related to the unrealized foreign exchange translation gains and losses of certain non-US dollar denominated working capital balances to US dollars as a result of the depreciation or appreciation of the US dollar.

IRGA / TSS membership liability revaluation charge - On December 23, 2014, in accordance with the terms of the purchase and sale agreement for the initial acquisition of TSS (as defined below) by CSI, and on the basis of the term sheets attached thereto, Constellation and the Joday Group, among others, entered into a Members Agreement (the "Members Agreement") pursuant to which the Joday Group acquired 33.29% of the voting interests in Constellation Software Netherlands Holding Coöperatief U.A. (which was renamed to Topicus.com Coöperatief U.A.), a subsidiary of Constellation and the indirect owner of 100% of TSS at the time of the acquisition. Total proceeds from this transaction was €39 million ($49 million).

On January 5, 2021, the Members Agreement was terminated in conjunction with the acquisition of Topicus.com B.V., the reorganization of Topicus Coop and the execution of the IRGA. The IRGA was established to create certain contractual obligations of the parties in respect of the governance of Topicus and Topicus Coop. As of December 31, 2023 the Joday Group's interest in Topicus Coop comprised 39,331,284 Topicus Coop Ordinary Units ("Topicus Coop Units") resulting in an interest of 30.29% in Topicus Coop. The IRGA provides for transfer restrictions in respect of the Topicus Coop Units. See "Liability of CSI under the terms of the IRGA" below for further details.

The valuation of the IRGA liability (previously the TSS membership liability) increased by approximately 13% or $81 million from Q4 2023. The increase is primarily the result of the growth in TSS' trailing twelve month maintenance revenue on a pro-forma basis (primarily due to acquisitions). Maintenance revenue and net tangible assets are the two main drivers in the calculation of the liability. The liability recorded on the balance sheet decreased by 3% or $19 million over the three month period ended March 31, 2024 from $635 million to $616 million as a result of the revaluation charge of $81 million, less a distribution to the Joday Group of $63 million, a payment pursuant to an exercised call option of $22 million and a $14 million foreign exchange gain. The IRGA /

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TSS membership liability is denominated in Euros and the Euro depreciated 2% versus the US dollar during the three months ended March 31, 2024.

Finance and other expense (income) - Finance and other expense (income) for the three months ended March 31, 2024 was income of $9 million compared to income of $7 million for the same period in 2023. The following table provides a further breakdown of expenses (income) within this category.

		Three months ended March 31,
		2024		2023
Interest income on cash	$	(6)	$	(1)
(Increase) decrease in the fair value of equity securities held for trading		3		(4)
Share in net (income) loss of equity investee		0		(0)
Finance and other income		(6)		(3)
Finance and other expense (income)	$	(9)	$	(7)

Bargain purchase gain - Bargain purchase gains totalling $2 million were recorded in the three months ended March 31, 2024 compared to $1 million for the same period in 2023 relating to acquisitions made in the respective periods. The gains resulted from the fact that the fair value of the separately identifiable assets and liabilities acquired exceeded the total consideration paid, principally due to the acquisition of certain assets that will benefit the Company that had limited value to the sellers.

Impairment of intangible and other non-financial assets - An impairment expense of $10 million was recorded in the three month period ended March 31, 2024 compared to $2 million for the same period in 2023. The expenses relate to businesses that have been unable to achieve the goals established in their respective investment theses.

Redeemable preferred securities expense - The redeemable preferred securities expense for the three month period ended March 31, 2024 was $58 million compared to $188 million for the same period in 2023. In conjunction with the acquisition of WideOrbit, Lumine issued 10,204,294 special shares of Lumine (the "Lumine Special Shares" or the "Preferred Securities") to the sellers of WideOrbit for an initial subscription price of approximately $222 million. Holders of the Preferred Securities were entitled to convert some or all of their Preferred Securities into Lumine Subordinate Voting Shares on the basis of 3.4302106 Lumine Subordinate Voting Shares per Preferred Security, at any time.

The Preferred Securities were recorded at fair value at the end of each reporting period. The change in fair value of the Preferred Securities was recorded as redeemable preferred securities expense (income) in the consolidated statements of income (loss). Based on the Preferred Securities conversion right, the value of the Preferred Securities was primarily dependent on the price movement of Lumine's Subordinate Voting Shares. The holders of the Lumine Special Shares were also entitled to a fixed annual cumulative dividend of 5% per annum.

On March 25, 2024, all of the Lumine Special Shares were automatically converted into Lumine Subordinate Voting Shares, and additional Lumine Subordinate Voting Shares were issued in satisfaction of the amounts owing in connection with the accrued dividends on Lumine Special Shares. Specifically, a total of 35,076,193 Lumine Subordinate Voting Shares were issued.

Finance costs - Finance costs for the quarter ended March 31, 2024 increased $30 million to $67 million, compared to $36 million for the same period in 2023 primarily a result of an increase in the average debt outstanding in Q1 2024 as compared to Q1 2023, and an increase in interest rates.

Income taxes - We operate globally and we calculate our tax provision in each of the jurisdictions in which we conduct business. Our effective tax rate on a consolidated basis is, therefore, affected by the realization and

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anticipated relative profitability of our operations in those various jurisdictions, as well as different tax rates that apply and our ability to utilize tax losses and other credits. For the quarter ended March 31, 2024, income tax expense increased $12 million to $52 million compared to $40 million for the same period in 2023. Current tax expense has historically approximated our cash tax rate however the quarterly expense can sometimes fall outside of the annual range due to out of period adjustments. Current tax expense reflects gross taxes before the application of R&D tax credits which are classified as part of "other, net" expenses in the statement of income (loss). The Company's consolidated effective tax rate in respect of continuing operations for the three months ended March 31, 2024 was 41% (-95% for the three months ended March 31, 2023). The Q1 2024 and 2023 effective tax rates are impacted by the redeemable preferred securities expense, which is not deductible for tax purposes.

Constellation is subject to tax audits in the countries in which the Company carries on business globally. These tax audits could result in additional tax expense in future periods relating to historical filings. Reviews by tax authorities generally focus on, but are not limited to, the validity of the Company's inter-company transactions, including financing and transfer pricing policies which generally involve subjective areas of taxation and a significant degree of judgment. If any of these tax authorities are successful with their challenges, the Company's income tax expense may be adversely affected and Constellation could also be subject to interest and penalty charges.

Net Income and Earnings per Share:

Net income attributable to common shareholders of CSI for the quarter ended March 31, 2024 was $105 million compared to $94 million for the same period in 2023. On a per share basis this translated into net income per basic and diluted share of $4.95 in the quarter ended March 31, 2024 compared to $4.44 for the same period in 2023. There was no change in the number of shares outstanding.

Net cash flows from operating activities ("CFO"):

For the quarter ended March 31, 2024, CFO increased $104 million to $737 million compared to $632 million for the same period in 2023 representing an increase of 16%.

Free cash flow available to shareholders ("FCFA2S"):

For the quarter ended March 31, 2024, FCFA2S decreased $7 million to $446 million compared to $453 million for the same period in 2023 representing a decrease of 2%.

The following table reconciles FCFA2S to net cash flows from operating activities:

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