# EDGAR Filing Document

**Accession Number:** 0001796209
**File Stem:** 0000950170-23-004864
**Filing Date:** 2023-2
**Character Count:** 76194
**Document Hash:** ee92fb944bf3e9a2a1f73d660b900eee
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-004864.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0000950170-23-004864

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** APi Group Corp
- **CENTRAL INDEX KEY:** 0001796209
- **STANDARD INDUSTRIAL CLASSIFICATION:** CONSTRUCTION SPECIAL TRADE CONTRACTORS [1700]
- **IRS NUMBER:** 981510303
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39275
- **FILM NUMBER:** 23678367

**BUSINESS ADDRESS:**
- **STREET 1:** C/O API GROUP, INC.
- **STREET 2:** 1100 OLD HIGHWAY 8 NW
- **CITY:** NEW BRIGHTON
- **STATE:** MN
- **ZIP:** 55112
- **BUSINESS PHONE:** 651-636-4320

**MAIL ADDRESS:**
- **STREET 1:** C/O API GROUP, INC.
- **STREET 2:** 1100 OLD HIGHWAY 8 NW
- **CITY:** NEW BRIGHTON
- **STATE:** MN
- **ZIP:** 55112

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** February 28, 2023<br>

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APi Group Corporation

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-39275 | 98-1510303 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 1100 Old Highway 8 NW |  |  |
| New Brighton**,** Minnesota |  | 55112 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** 651 636-4320<br>

N/A<br>

**(Former Name or Former Address, if Changed Since Last Report)**

**__________________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | APG | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On February 28, 2023, APi Group Corporation (the "Company") issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1.

The information furnished under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in any such filing, unless the Company expressly sets forth in such filing that such information is to be considered "filed" or incorporated by reference therein.

**Item 9.01 Financial Statements and Exhibits.**

**(d) Exhibits**

The following exhibit is being furnished as part of this Current Report on Form 8-K.

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| | |
|:---|:---|
| **Exhibit**<br>**No.** | <br>**Description** |
| 99.1 | [<u>Press Release issued by APi Group Corporation on February 28, 2023.</u>](apg-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | **APi Group Corporation** |
| Date: | February 28, 2023 | By:  | /s/ Kevin S. Krumm |
|  |  |  | Name: Kevin S. Krumm<br>Title: Chief Financial Officer |

---

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## Ex-99

**Exhibit 99.1**

![img23227469_0.jpg](img23227469_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**APi Group Reports Fourth Quarter and Fiscal Year 2022 Financial Results** 

-Reported net revenues increased by approximately 53% and 66% in the fourth quarter and full year, respectively-

-Net revenues increased on an organic basis by approximately 6% and 12% in the fourth quarter and full year, respectively-

-Reported and adjusted gross margin expansion of 255 and 319 basis points, respectively, in the fourth quarter-

-Reported diluted earnings per share of $0.04 and adjusted diluted earnings per share of $0.36 in the fourth quarter-

-Reported net income of $22 million and adjusted net income of $98 million in the fourth quarter-

-Net debt to adjusted EBITDA decreased to 3.1x as of the end of the fourth quarter-

New Brighton, Minnesota – February 28, 2023 – APi Group Corporation (NYSE: APG) ("APG", "APi" or the "Company") today reported its financial results for the three months and year ended December 31, 2022.

**<u>Fourth Quarter 2022 Highlights:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reported net revenues increased by 53.1% or $591 million to $1.7 billion compared to $1.1 billion in the prior year period, driven by revenue from acquisitions and strong organic growth in Safety Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net revenues increased on an organic basis by 5.8% compared to the prior year period, driven by continued growth in inspection, service, and monitoring revenue in Safety Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reported gross margin was 27.2%, representing a 255 basis point increase compared to prior year period reported gross margin of 24.6%. Adjusted gross margin was 27.8%, representing a 319 basis point increase compared to prior year period adjusted gross margin of 24.6%. Reported and adjusted gross margin expansion were driven by acquisitions in Safety Services, an improved mix of inspection, service and monitoring revenue and improved productivity in Specialty Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reported net income was $22 million, representing a $7 million increase from prior year period reported net income of $15 million driven by accretion from acquisitions in Safety Services and strong organic growth in Safety Services. Reported diluted EPS was $0.04, representing a $0.79 increase from prior year period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted net income was $98 million and adjusted diluted EPS was $0.36, representing a $0.07 increase from prior year period driven by accretion from acquisitions in Safety Services and strong organic growth in Safety Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA increased by 59.1% or $68 million to $183 million compared to $115 million in the prior year period, driven by acquisitions and strong organic growth in Safety Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA margin was 10.7%, representing a 40 basis point increase compared to prior year period adjusted EBITDA margin of 10.3%, driven by an improved mix of inspection, service and monitoring revenue and leverage on higher volumes

**<u>Fiscal Year 2022 Highlights:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reported net revenues increased by 66.4% or $2.6 billion to $6.6 billion compared to $3.9 billion in the prior year period, driven by revenue from acquisitions in Safety Services and strong organic growth in Safety and Specialty Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Net revenues increased on an organic basis by 12.2% compared to the prior year period, driven by continued growth in inspection, service and monitoring revenue in Safety Services as well as general market recovery in Safety and Specialty Services compared to the prior year period which was negatively impacted by the COVID-19 pandemic

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reported gross margin was 26.1%, representing a 230 basis point increase compared to prior year period reported gross margin of 23.8%. Adjusted gross margin was 26.8%, representing a 288 basis point increase compared to prior year period adjusted gross margin of 24.0%. Reported and adjusted gross margin expansion were driven by acquisitions in Safety Services, an improved mix of inspection, service, and monitoring revenue, and improved productivity in Specialty Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reported net income was $73 million, representing a $26 million increase from prior year period reported net income of $47 million driven by accretion from acquisitions in Safety Services and strong organic growth in Safety and Specialty Services. Reported diluted EPS was $0.10, representing a $0.77 increase from prior year period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted net income was $358 million and adjusted diluted EPS was $1.33, representing a $0.30 increase from prior year period driven by accretion from acquisitions in Safety Services and strong organic growth in Safety and Specialty Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA increased by 65.4% or $266 million to $673 million compared to $407 million in the prior year period, driven by acquisitions in Safety Services and strong organic growth in Safety and Specialty Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA margin was 10.3%, consistent with prior year period adjusted EBITDA margin of 10.3%, driven by an improved mix of inspection, service and monitoring revenue and leverage on higher volumes, offset by supply chain disruptions, inflation and mix from completed acquisitions causing downward pressure on margins

Russ Becker, APi's President and Chief Executive Officer stated: "2022 was a year of record financial results for APi. We delivered record net revenues, record adjusted EBITDA and record adjusted earnings per share in a challenging macro environment. We believe this once again demonstrates the stability of APi's recurring revenue, services focused business model, our ability to mitigate margin pressures that exist on a macro basis, and the ongoing execution of our strategy by our talented team members. Their ongoing leadership efforts continue to demonstrate that our leaders are a competitive advantage and help drive shareholder value.

Chubb continues to perform in-line with our expectations and delivered solid organic growth in 2022, despite macro headwinds. The integration is occurring swiftly, savings are significant, and we continue to be energized by the opportunities in front of us as the world's leading life safety and security services provider.

We entered 2023 with positive momentum on many fronts. Our backlog remains strong and was up approximately 9% as of December 2022 compared to the end of December 2021. We are confident that our focus on growing statutorily-required, higher margin, inspection, service and monitoring revenue, combined with our robust backlog and variable cost structure positions us well to prosper even if the macro environment continues to be volatile. We remain focused on being disciplined on project and customer selection and will continue to focus our efforts on growing the acyclical, recurring service revenue aspects of our portfolio."

APi Co-Chair James E. Lillie added: "APi's continued strong performance in the fourth quarter was the culmination of what was another outstanding year for APi in 2022. APi's double-digit growth in organic net revenues, combined with the acquisition of Chubb and the Company's ability to offset macro headwinds, allowed APi to produce record earnings and generate substantial free cash flow.

As reflected in the guidance we gave last week for 2023, we have strong momentum balanced across our global platform. Our leaders continue to build on historically strong execution, continue to mitigate macro challenges and are staying focused on operational excellence. APi will continue to remain agile, focused and adaptive as needed to create sustainable shareholder value by focusing on our long-term value creation targets. These include solid organic growth, target adjusted free cash flow conversion of 80%, adjusted EBITDA margin of 13%+ by 2025 and target net leverage ratio of 2.0 to 2.5x, which we expect to achieve near year-end 2023 supplemented by our recent $200 million reduction in our term loan debt. Everyone is excited about the opportunities in the year ahead and our ability to execute on our strategic plan."

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**<u>Conference Call</u>**

APi will hold a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Tuesday, February 28, 2023. Participants on the call will include Russell A. Becker, President and Chief Executive Officer; Kevin S. Krumm, Executive Vice President and Chief Financial Officer; and James E. Lillie and Sir Martin E. Franklin, Co-Chairs.

To listen to the call by telephone, please dial 800-343-4136 or 203-518-9843 and provide Conference ID 6468507. You may also attend and view the presentation (live or by replay) via webcast by accessing the following URL:

https://event.on24.com/wcc/r/4080924/F6495ADA7A66BD3125466D65A5B318AC

A replay of the call will be available shortly after completion of the live call/webcast via telephone at 800-723-2156 or 402-220-2660 or via the webcast link above.

**<u>About APi:</u>**

APi is a global, market-leading business services provider of life safety, security and specialty services with a substantial recurring revenue base and over 500 locations worldwide. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at <u>www.apigroupcorp.com</u>.

**Investor Relations Inquiries:**

Olivia Walton

Vice President of Investor Relations

Tel: +1 651-604-2773

Email: investorrelations@apigroupinc.us

**Media Contact:**

Liz Cohen

Kekst CNC

Tel: +1 212-521-4845

Email: Liz.Cohen@kekstcnc.com

**<u>Forward-Looking Statements and Disclaimers</u>**

Certain statements in this announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding the Company's future performance, anticipated events or trends and other matters that are not historical facts, including expectations regarding: (i) the Company's long-term targets, goals and strategies, including its pricing, focus on growing inspection, service and monitoring revenue, strong spend controls, and disciplined project and customer selection; (ii) the Company's outlook and expected 2023 financial performance and ability to execute on long-term goals; and (iii) the expected benefits of the acquisition of the Chubb fire and security business. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition and other risks that may affect the Company's future performance, inflationary pressures and other macroeconomic factors on the Company's business, markets, supply chain, customers and workforce, on the credit and financial markets, on the alignment of expenses and revenues and on the global economy generally; (ii) supply chain constraints and interruptions, and the resulting increases in the cost, or reductions in the supply, of the materials commodities and labor the Company uses in its business and for which the Company bears the risk of such increases; (iii) failure to realize the anticipated benefits of the acquisition of the Chubb fire and security business; (iv) changes in applicable laws or regulations; (v) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (vi) the impact of the conflict between Russia and Ukraine; and (vii) other risks and uncertainties. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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**<u>Non-GAAP Financial Measures</u>**

This press release contains non-U.S. GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company uses certain non-U.S. GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to shareholders and the investment community and in its internal evaluation and management of its businesses. The Company's management believes that these non-U.S. GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the Company's performance using the same tools that management uses to evaluate the Company's past performance, reportable business segments and prospects for future performance, (b) permit investors to compare the Company with its peers and (c) determine certain elements of management's incentive compensation. Specifically:

• The Company's management believes that adjusted gross profit, adjusted selling, general and administrative ("SG&A") expenses, adjusted net income, and adjusted earnings per share, which are non-GAAP financial measures that exclude business transformation and other expenses for the integration of acquired businesses, the impact and results of businesses classified as assets held-for-sale and businesses divested, and one-time and other events such as impairment charges, restructuring costs, transaction and other costs related to acquisitions, amortization of intangible assets, net COVID-19 relief, non-service pension benefit, severance related costs related to corporate leadership changes and certain tax benefits from the acquisition of APi Group, Inc. (the "APi Acquisition") are useful because they provide investors with a meaningful perspective on the current underlying performance of the Company's core ongoing operations.

• The Company also presents organic changes in net revenues on a consolidated basis or segment specific basis to provide a more complete understanding of underlying revenue trends by providing net revenues on a consistent basis as it excludes the impacts of material acquisitions, completed divestitures, and changes in foreign currency from year-over-year comparisons on reported net revenues, calculated as the difference between the reported net revenues for the current period and reported net revenues for the current period converted at the prior year average monthly exchange rates (excluding acquisitions and divestitures). The remainder is divided by the prior year net revenues, excluding the impacts of material acquisitions and completed divestitures.

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&nbsp;&nbsp;&nbsp;&nbsp;• Earnings before interest, taxes, depreciation and amortization ("EBITDA") is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. The Company supplements the reporting of its consolidated financial information with certain non-U.S. GAAP financial measures, including EBITDA and adjusted EBITDA, which is defined as EBITDA excluding the impact of certain non-cash and other specifically identified items ("adjusted EBITDA"). Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenues. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company's financial results and assess its prospects for future performance. The Company uses EBITDA and adjusted EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company's core operating results. Consolidated EBITDA is calculated in a manner consistent with segment EBITDA, which is a measure of segment profitability. 

•  The Company presents free cash flow, adjusted free cash flow and adjusted free cash flow conversion, which are liquidity measures used by management as factors in determining the amount of cash that is available for working capital needs or other uses of cash, however, it does not represent residual cash flows available for discretionary expenditures. Free cash flow is defined as cash provided by (used in) operating activities less capital expenditures. Adjusted free cash flow is defined as cash provided by (used in) operating activities plus or minus events including, but not limited to, transaction and other costs related to acquisitions, business transformation and other expenses for the integration of acquired businesses, payments on acquired liabilities, payments made for restructuring programs, impacts of businesses classified as assets held-for-sale and businesses divested, and one-time and other events such as COVID-19 related payroll tax deferral and relief items. Adjusted free cash flow conversion is defined as adjusted free cash flow as a percentage of adjusted EBITDA. 

• The Company calculates its leverage ratio in accordance with its debt agreements which include different adjustments to EBITDA from those included in the adjusted EBITDA numbers reported externally.

While the Company believes these non-U.S. GAAP measures are useful in evaluating the Company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with U.S. GAAP. Additionally, these non-U.S. GAAP financial measures may differ from similar measures presented by other companies. A reconciliation of these non-U.S. GAAP financial measures is included later in this press release.

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| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Condensed Consolidated Statements of Operations (GAAP) | Condensed Consolidated Statements of Operations (GAAP) | Condensed Consolidated Statements of Operations (GAAP) | Condensed Consolidated Statements of Operations (GAAP) | Condensed Consolidated Statements of Operations (GAAP) |
| (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | (Amounts in millions, except per share data) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net revenues | $1703 | $1112 | $6558 | $3940 |
| Cost of revenues | 1240 | 838 | 4844 | 3001 |
| &nbsp;&nbsp;Gross profit | 463 | 274 | 1714 | 939 |
| Selling, general, and administrative expenses | 414 | 224 | 1552 | 803 |
| &nbsp;&nbsp;Operating income | 49 | 50 | 162 | 136 |
| Interest expense, net | 37 | 17 | 125 | 60 |
| (Gain) loss on extinguishment of debt, net |  |  | (5) | 9 |
| Non-service pension benefit | (10) |  | (42) |  |
| Investment income and other, net | (4) |  | (9) | (12) |
| &nbsp;&nbsp;Other expense, net | 23 | 17 | 69 | 57 |
| &nbsp;&nbsp;Income before income taxes | 26 | 33 | 93 | 79 |
| Income tax provision | 4 | 18 | 20 | 32 |
| &nbsp;&nbsp;Net income | $22 | $15 | $73 | $47 |
| Net income attributable to common shareholders: | Net income attributable to common shareholders: | Net income attributable to common shareholders: | Net income attributable to common shareholders: | Net income attributable to common shareholders: |
| &nbsp;&nbsp;Accrued stock dividend on Series A Preferred Stock |  | (184) |  | (184) |
| &nbsp;&nbsp;Stock dividend on Series B Preferred Stock | (11) |  | (44) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to common shareholders | $11 | $(169) | $29 | $(137) |
| **<u>Net income per common share</u>** |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.04 | $(0.75) | $0.10 | $(0.67) |
| &nbsp;&nbsp;Diluted | 0.04 | (0.75) | 0.10 | (0.67) |
| **<u>Weighted average shares outstanding</u>** |  |  |  |  |
| &nbsp;&nbsp;Basic | 234 | 225 | 233 | 206 |
| &nbsp;&nbsp;Diluted | 267 | 225 | 266 | 206 |

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| | | |
|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Condensed Consolidated Balance Sheets (GAAP) | Condensed Consolidated Balance Sheets (GAAP) | Condensed Consolidated Balance Sheets (GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) |
|  | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $605 | $1188 |
| &nbsp;&nbsp;Restricted cash | 2 | 302 |
| &nbsp;&nbsp;Accounts receivable, net | 1313 | 767 |
| &nbsp;&nbsp;Inventories | 163 | 69 |
| &nbsp;&nbsp;Contract assets | 459 | 217 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 110 | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2652 | 2626 |
| Property and equipment, net | 407 | 326 |
| Operating lease right of use assets | 222 | 101 |
| Goodwill | 2382 | 1106 |
| Intangible assets, net | 1784 | 882 |
| Deferred tax assets | 108 | 73 |
| Pension and post-retirement assets | 392 |  |
| Other assets | 144 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8091 | $5159 |
| **Liabilities, Redeemable Convertible Preferred Stock, and Shareholders' Equity** | **Liabilities, Redeemable Convertible Preferred Stock, and Shareholders' Equity** |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Short-term and current portion of long-term debt | $206 | $1 |
| &nbsp;&nbsp;Accounts payable | 490 | 236 |
| &nbsp;&nbsp;Accrued liabilities | 689 | 360 |
| &nbsp;&nbsp;Contract liabilities | 463 | 243 |
| &nbsp;&nbsp;Operating and finance leases | 73 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1921 | 867 |
| Long-term debt, less current portion | 2583 | 1766 |
| Pension and post-retirement obligations | 40 |  |
| Operating and finance leases | 166 | 79 |
| Deferred tax liabilities | 340 | 43 |
| Other noncurrent liabilities | 117 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 5167 | 2836 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total redeemable convertible preferred stock | 797 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 2127 | 2323 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, redeemable convertible preferred stock, and shareholders' equity | $8091 | $5159 |

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| | | |
|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Condensed Consolidated Statements of Cash Flows (GAAP) | Condensed Consolidated Statements of Cash Flows (GAAP) | Condensed Consolidated Statements of Cash Flows (GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;Net income | $73 | $47 |
| Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 304 | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges, net of cash paid | 22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (47) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 18 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit-sharing expense | 15 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | 67 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic pension benefit | (35) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on extinguishment of debt, net | (5) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 3 | 7 |
| &nbsp;&nbsp;Pension contributions | (34) |  |
| &nbsp;&nbsp;Changes in operating assets and liabilities, net of effects of acquisitions | (111) | (147) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 270 | 182 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;Acquisitions, net of cash acquired | (2839) | (86) |
| &nbsp;&nbsp;Purchases of property and equipment | (79) | (55) |
| &nbsp;&nbsp;Proceeds from sales of property, equipment, held for sale assets, and businesses | 17 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (2901) | (121) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;Proceeds from long-term borrowings | 1104 | 650 |
| &nbsp;&nbsp;Payments on long-term borrowings | (34) | (321) |
| &nbsp;&nbsp;Repurchases of long-term borrowings | (30) |  |
| &nbsp;&nbsp;Payments of debt issuance costs | (29) | (11) |
| &nbsp;&nbsp;Repurchases of common stock | (44) |  |
| &nbsp;&nbsp;Proceeds from equity issuances | 797 | 676 |
| &nbsp;&nbsp;Payments of acquisition-related consideration | (5) | (74) |
| &nbsp;&nbsp;Restricted shares tendered for taxes | (3) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 1756 | 917 |
| &nbsp;&nbsp;Effect of foreign currency exchange rate on cash, cash equivalents, and restricted cash | (9) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in cash, cash equivalents, and restricted cash | (884) | 976 |
| Cash, cash equivalents, and restricted cash, beginning of period | 1491 | 515 |
| Cash, cash equivalents, and restricted cash, end of period | $607 | $1491 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Organic change in net revenues (non-GAAP) | Organic change in net revenues (non-GAAP) | Organic change in net revenues (non-GAAP) | Organic change in net revenues (non-GAAP) | Organic change in net revenues (non-GAAP) | Organic change in net revenues (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| **Organic change in net revenues** | **Organic change in net revenues** | **Organic change in net revenues** | **Organic change in net revenues** | **Organic change in net revenues** | **Organic change in net revenues** |
|  | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2022** |
|  | **Net revenues** |  |  |  |  |
|  | **change** | **Acquisitions and** |  | **Foreign currency** | **Organic change in** |
|  | **(as reported)** | **divestitures, net (a)** |  | **translation (b)** | **net revenues (c)** |
| Safety Services | 111.1% | 94.8 | % | (1.8)% | 18.1% |
| Specialty Services | (8.9)% |  | ─ | (0.4)% | (8.5)% |
| &nbsp;&nbsp;**Consolidated** | **53.1%** | **48.4** | **%** | **(1.1)%** | **5.8%** |
|  |  |  |  |  | **.** |
|  | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** |
|  | **Net revenues** |  |  |  |  |
|  | **change** | **Acquisitions and** |  | **Foreign currency** | **Organic change in** |
|  | **(as reported)** | **divestitures, net (a)** |  | **translation (b)** | **net revenues (c)** |
| Safety Services | 120.0% | 104.3 | % | (1.4)% | 17.1% |
| Specialty Services | 6.4% |  | ─ | (0.2)% | 6.7% |
| &nbsp;&nbsp;**Consolidated** | **66.4%** | **55.0** | **%** | **(0.8)%** | **12.2%** |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to exclude net revenues from material acquisitions from their respective dates of acquisition until the first year anniversary from date of acquisition and net revenues from divestitures for all periods for businesses divested as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Represents the effect of foreign currency on reported net revenues excluding material acquisitions, calculated as the difference between the reported net revenues for the current period and reported net revenues for the current period converted at the prior year average monthly exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;(c)Organic change in net revenues provides a consistent basis for a year-over-year comparison in net revenues as it excludes the impacts of material acquisitions, divestitures, and the impact of changes due to foreign currency translation.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Gross profit and adjusted gross profit (non-GAAP) | Gross profit and adjusted gross profit (non-GAAP) | Gross profit and adjusted gross profit (non-GAAP) | Gross profit and adjusted gross profit (non-GAAP) | Gross profit and adjusted gross profit (non-GAAP) |
| SG&A and adjusted SG&A (non-GAAP) | SG&A and adjusted SG&A (non-GAAP) | SG&A and adjusted SG&A (non-GAAP) | SG&A and adjusted SG&A (non-GAAP) | SG&A and adjusted SG&A (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| **Adjusted gross profit** | **Adjusted gross profit** | **Adjusted gross profit** | **Adjusted gross profit** | **Adjusted gross profit** |
|  | **For the Three Months Ended<br>December 31,** | **For the Three Months Ended<br>December 31,** | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Gross profit (as reported) | $463 | $274 | $1714 | $939 |
| Adjustments to reconcile gross profit to adjusted gross profit: | Adjustments to reconcile gross profit to adjusted gross profit: | Adjustments to reconcile gross profit to adjusted gross profit: | Adjustments to reconcile gross profit to adjusted gross profit: | Adjustments to reconcile gross profit to adjusted gross profit: |
| &nbsp;&nbsp;Backlog amortization<br> (a) | 8 |  | 30 | 5 |
| &nbsp;&nbsp;Inventory step-up<br> (b) |  |  | 9 |  |
| &nbsp;&nbsp;Restructuring costs<br> (c) | 3 |  | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted gross profit | $474 | $274 | $1760 | $944 |
| Net revenues | $1703 | $1112 | $6558 | $3940 |
| &nbsp;&nbsp;Adjusted gross margin | 27.8% | 24.6% | 26.8% | 24.0% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Adjusted SG&A** | **Adjusted SG&A** | **Adjusted SG&A** | **Adjusted SG&A** | **Adjusted SG&A** |
|  | **For the Three Months Ended<br>December 31,** | **For the Three Months Ended<br>December 31,** | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Selling, general, and administrative expenses ("SG&A") (as reported) | $414 | $224 | $1552 | $803 |
| Adjustments to reconcile SG&A to adjusted SG&A: | Adjustments to reconcile SG&A to adjusted SG&A: | Adjustments to reconcile SG&A to adjusted SG&A: | Adjustments to reconcile SG&A to adjusted SG&A: | Adjustments to reconcile SG&A to adjusted SG&A: |
| &nbsp;&nbsp;Amortization of intangible assets<br> (d) | (54) | (32) | (197) | (122) |
| &nbsp;&nbsp;Contingent consideration and compensation<br> (e) | (1) | 2 | (9) | 7 |
| &nbsp;&nbsp;Business process transformation expenses<br> (f) | (8) | (10) | (22) | (35) |
| &nbsp;&nbsp;Acquisition expenses<br> (g) |  | (8) | (26) | (24) |
| &nbsp;&nbsp;Recent acquisition transition expenses<br> (h) | (32) |  | (95) |  |
| &nbsp;&nbsp;Integration and reorganization expenses<br> (i) |  |  | (9) |  |
| &nbsp;&nbsp;Restructuring costs<br> (c) | (9) |  | (23) |  |
| &nbsp;&nbsp;Divested businesses<br> (j) |  |  |  | (1) |
| &nbsp;&nbsp;COVID-19 relief at international subsidiaries, net<br> (k) | 2 |  | 2 |  |
| &nbsp;&nbsp;Corporate executive reorganization<br> (l) |  |  |  | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted SG&A expenses | $312 | $176 | $1173 | $622 |
| Net revenues | $1703 | $1112 | $6558 | $3940 |
| &nbsp;&nbsp;Adjusted SG&A as a % of net revenues | 18.3% | 15.8% | 17.9% | 15.8% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to reflect the addback of amortization expense related to backlog intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of costs related to the fair value step-up of acquired inventory.

&nbsp;&nbsp;&nbsp;&nbsp;(c)Adjustment to reflect the elimination of expenses associated with restructuring programs.

&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjustment to reflect the addback of amortization expense.

&nbsp;&nbsp;&nbsp;&nbsp;(e)Adjustment to reflect the elimination of the expense, or reversal of previously recorded expense, attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;(f)Adjustment to reflect the elimination of non-operational costs related to business process transformation, including system and process development costs and implementation of processes and compliance programs related to the Sarbanes-Oxley Act of 2002.

&nbsp;&nbsp;&nbsp;&nbsp;(g)Adjustment to reflect the elimination of potential and completed acquisition-related expenses.

&nbsp;&nbsp;&nbsp;&nbsp;(h)Adjustment to reflect the elimination of expenses associated with the transition of newly acquired businesses from prior ownership into APi Group.

&nbsp;&nbsp;&nbsp;&nbsp;(i)Adjustment to reflect the elimination of expenses related to the integration and reorganization of newly acquired businesses.

&nbsp;&nbsp;&nbsp;&nbsp;(j)Adjustment to reflect the elimination of amounts related to businesses divested and classified as held-for-sale.

&nbsp;&nbsp;&nbsp;&nbsp;(k)Adjustment to reflect the elimination of income in international subsidiaries related to COVID-19 relief, net of severance costs.

&nbsp;&nbsp;&nbsp;&nbsp;(l)Adjustment to reflect the elimination of costs related to non-recurring severance related costs resulting from corporate leadership changes.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| EBITDA and adjusted EBITDA (non-GAAP) | EBITDA and adjusted EBITDA (non-GAAP) | EBITDA and adjusted EBITDA (non-GAAP) | EBITDA and adjusted EBITDA (non-GAAP) | EBITDA and adjusted EBITDA (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended<br>December 31,** | **For the Three Months Ended<br>December 31,** | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net income (as reported) | $22 | $15 | $73 | $47 |
| Adjustments to reconcile net income to EBITDA: |  |  |  |  |
| &nbsp;&nbsp;Interest expense, net | 37 | 17 | 125 | 60 |
| &nbsp;&nbsp;Income tax provision | 4 | 18 | 20 | 32 |
| &nbsp;&nbsp;Depreciation and amortization | 79 | 48 | 304 | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $142 | $98 | $522 | $341 |
| Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: |  |  |  |
| &nbsp;&nbsp;Contingent consideration and compensation<br> (a) | 1 | (2) | 9 | (7) |
| &nbsp;&nbsp;Non-service pension benefit<br> (b) | (10) |  | (42) |  |
| &nbsp;&nbsp;Inventory step-up<br> (c) |  |  | 9 |  |
| &nbsp;&nbsp;Business process transformation expenses<br> (d) | 8 | 10 | 22 | 35 |
| &nbsp;&nbsp;Acquisition expenses<br> (e) |  | 9 | 26 | 26 |
| &nbsp;&nbsp;Recent acquisition transition expenses<br> (f) | 32 |  | 95 |  |
| &nbsp;&nbsp;Integration and reorganization expenses<br> (g) |  |  | 9 |  |
| &nbsp;&nbsp;Restructuring costs<br> (h) | 12 |  | 30 |  |
| &nbsp;&nbsp;(Gain) loss on extinguishment of debt, net<br> (i) |  |  | (5) | 9 |
| &nbsp;&nbsp;Divested businesses<br> (j) |  |  |  | (1) |
| &nbsp;&nbsp;COVID-19 relief at international subsidiaries, net<br> (k) | (2) |  | (2) | (2) |
| &nbsp;&nbsp;Corporate executive reorganization<br> (l) |  |  |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $183 | $115 | $673 | $407 |
| Net revenues | $1703 | $1112 | $6558 | $3940 |
| &nbsp;&nbsp;Adjusted EBITDA as a % of net revenues | 10.7% | 10.3% | 10.3% | 10.3% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to reflect the elimination of the expense, or reversal of previously recorded expense, attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of non-service pension benefit, which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses of the pension programs assumed as part of the Chubb acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;(c)Adjustment to reflect the elimination of costs related to the fair value step-up of acquired inventory.

&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjustment to reflect the elimination of non-operational costs related to business process transformation, including system and process development costs and implementation of processes and compliance programs related to the Sarbanes-Oxley Act of 2002.

&nbsp;&nbsp;&nbsp;&nbsp;(e)Adjustment to reflect the elimination of potential and completed acquisition-related expenses.

&nbsp;&nbsp;&nbsp;&nbsp;(f)Adjustment to reflect the elimination of expenses associated with the transition of newly acquired businesses from prior ownership into APi Group.

&nbsp;&nbsp;&nbsp;&nbsp;(g)Adjustment to reflect the elimination of expenses related to the integration and reorganization of newly acquired businesses.

&nbsp;&nbsp;&nbsp;&nbsp;(h)Adjustment to reflect the elimination of expenses associated with restructuring programs.

&nbsp;&nbsp;&nbsp;&nbsp;(i)Adjustment to reflect the elimination of (gain)/loss on extinguishment of debt resulting from early repayments and repurchases of long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;(j)Adjustment to reflect the elimination of amounts related to businesses divested and classified as held-for-sale, inclusive of impairment charges and gain/(loss) on sale.

&nbsp;&nbsp;&nbsp;&nbsp;(k)Adjustment to reflect the elimination of miscellaneous income in international subsidiaries related to COVID-19 relief, net of severance costs.

&nbsp;&nbsp;&nbsp;&nbsp;(l)Adjustment to reflect the elimination of costs related to non-recurring severance related costs resulting from corporate leadership changes.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Income (loss) before income tax, net income (loss) and EPS and | Income (loss) before income tax, net income (loss) and EPS and | Income (loss) before income tax, net income (loss) and EPS and | Income (loss) before income tax, net income (loss) and EPS and | Income (loss) before income tax, net income (loss) and EPS and |
| Adjusted income before income tax, net income (loss) and EPS (non-GAAP) | Adjusted income before income tax, net income (loss) and EPS (non-GAAP) | Adjusted income before income tax, net income (loss) and EPS (non-GAAP) | Adjusted income before income tax, net income (loss) and EPS (non-GAAP) | Adjusted income before income tax, net income (loss) and EPS (non-GAAP) |
| (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | (Amounts in millions, except per share data) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Income before income tax provision (as reported) | $26 | $33 | $93 | $79 |
| Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: | Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: | Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: | Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: | Adjustments to reconcile income before income tax provision to adjusted income before income tax provision: |
| &nbsp;&nbsp;Amortization of intangible assets<br> (a) | 62 | 32 | 227 | 127 |
| &nbsp;&nbsp;Contingent consideration and compensation<br> (b) | 1 | (2) | 9 | (7) |
| &nbsp;&nbsp;Non-service pension benefit<br> (c) | (10) |  | (42) |  |
| &nbsp;&nbsp;Inventory step-up<br> (d) |  |  | 9 |  |
| &nbsp;&nbsp;Business process transformation expenses<br> (e) | 8 | 10 | 22 | 35 |
| &nbsp;&nbsp;Acquisition expenses<br> (f) |  | 13 | 26 | 30 |
| &nbsp;&nbsp;Recent acquisition transition expenses<br> (g) | 32 |  | 95 |  |
| &nbsp;&nbsp;Integration and reorganization expenses<br> (h) |  |  | 9 |  |
| &nbsp;&nbsp;Restructuring costs<br> (i) | 12 |  | 30 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on extinguishment of debt, net<br> (j) |  |  | (5) | 9 |
| &nbsp;&nbsp;Divested businesses<br> (k) |  |  |  | (1) |
| &nbsp;&nbsp;COVID-19 relief at international subsidiaries, net<br> (l) | (2) |  | (2) | (2) |
| &nbsp;&nbsp;Corporate executive reorganization<br> (m) |  |  |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted income before income tax provision | $129 | $86 | $471 | $276 |
| Income tax provision (as reported) | $4 | $18 | $20 | $32 |
| Adjustments to reconcile income tax provision to adjusted income tax provision: | Adjustments to reconcile income tax provision to adjusted income tax provision: | Adjustments to reconcile income tax provision to adjusted income tax provision: | Adjustments to reconcile income tax provision to adjusted income tax provision: | Adjustments to reconcile income tax provision to adjusted income tax provision: |
| &nbsp;&nbsp;Income tax provision adjustment<br> (n) | 27 | 2 | 93 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted income tax provision | $31 | $20 | $113 | $58 |
| Adjusted income before income tax provision | 129 | 86 | $471 | $276 |
| Adjusted income tax provision | 31 | 20 | 113 | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income | $98 | $66 | $358 | $218 |
| Diluted weighted average shares outstanding (as reported) | 267 | 225 | 266 | 206 |
| Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: | Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: | Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: | Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: | Adjustments to reconcile diluted weighted average shares outstanding to adjusted diluted weighted average shares outstanding: |
| &nbsp;&nbsp;Dilutive impact of shares from GAAP net loss<br> (o) |  |  |  | 1 |
| &nbsp;&nbsp;Dilutive impact of Series A Preferred Stock<br> (p) | 4 | 4 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted diluted weighted average shares outstanding | 271 | 229 | 270 | 211 |
| Adjusted diluted EPS | $0.36 | $0.29 | $1.33 | $1.03 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to reflect the addback of pre-tax amortization expense related to intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of the expense, or reversal of previously recorded expense, attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Adjustment to reflect the elimination of non-service pension benefit, which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses of the pension programs assumed as part of the Chubb acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjustment to reflect the elimination of costs related to the fair value step-up of acquired inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Adjustment to reflect the elimination of non-operational costs related to business process transformation, including system and process development costs and implementation of processes and compliance programs related to the Sarbanes-Oxley Act of 2002.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Adjustment to reflect the elimination of potential and completed acquisition-related expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Adjustment to reflect the elimination of expenses associated with the transition of newly acquired businesses from prior ownership into APi Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Adjustment to reflect the elimination of integration and reorganization expenses associated with acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Adjustment to reflect the elimination of expenses associated with restructuring programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Adjustment to reflect the elimination of (gain)/loss on extinguishment of debt resulting from early repayments and repurchases of long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Adjustment to reflect the elimination of amounts related to businesses divested and classified as held-for-sale, inclusive of impairment charges and gain/(loss) on sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Adjustment to reflect the elimination of miscellaneous income at international subsidiaries related to COVID-19 relief, net of severance costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)Adjustment to reflect the elimination of costs related to non-recurring severance related costs resulting from corporate leadership changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Adjustment to reflect an adjusted effective cash tax rate of 24% for the three months and year ended December 31, 2022 and 21% for the year ended December 31, 2021 applied to resulting adjusted pre-tax income inclusive of the adjustments shown above. The adjustment for the three months ended December 31, 2021 is the amount required to adjust the year period to 21%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)Adjustment to add the dilutive impact of options, RSUs, and warrants which were anti-dilutive and excluded from the diluted weighted average shares outstanding (as reported).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)Adjustment for the three months and year ended December 31, 2022 and 2021 reflects addition of the dilutive impact of 4 million shares associated with the deemed conversion of Series A Preferred Stock.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended<br>December 31,** | **For the Three Months Ended<br>December 31,** | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2022 (a)** | **2021 (a)** | **2022 (a)** | **2021 (a)** |
| **Safety Services** |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $1201 | $569 | $4575 | $2080 |
| &nbsp;&nbsp;Adjusted gross profit | 389 | 176 | 1432 | 655 |
| &nbsp;&nbsp;Adjusted EBITDA | 158 | 77 | 559 | 291 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted gross margin | 32.4% | 30.9% | 31.3% | 31.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA as a % of net revenues | 13.2% | 13.5% | 12.2% | 14.0% |
| **Specialty Services** |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $510 | $560 | $2030 | $1907 |
| &nbsp;&nbsp;Adjusted gross profit | 85 | 98 | 328 | 289 |
| &nbsp;&nbsp;Adjusted EBITDA | 53 | 66 | 210 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted gross margin | 16.7% | 17.5% | 16.2% | 15.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA as a % of net revenues | 10.4% | 11.8% | 10.3% | 10.2% |
| Total net revenues before corporate and eliminations<br> (b) | $1711 | $1129 | $6605 | $3987 |
| Total adjusted EBITDA before corporate and eliminations<br> (b) | 211 | 143 | 769 | 486 |
| Adjusted EBITDA as a % of net revenues before corporate and eliminations<br> (b) | 12.3% | 12.7% | 11.6% | 12.2% |
| **Corporate and Eliminations** |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $(8) | $(17) | $(47) | $(47) |
| &nbsp;&nbsp;Adjusted EBITDA | (28) | (28) | (96) | (79) |
| **Total Consolidated** |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $1703 | $1112 | $6558 | $3940 |
| &nbsp;&nbsp;Adjusted gross profit | 474 | 274 | 1760 | 944 |
| &nbsp;&nbsp;Adjusted EBITDA | 183 | 115 | 673 | 407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted gross margin | 27.8% | 24.6% | 26.8% | 24.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA as a % of net revenues | 10.7% | 10.3% | 10.3% | 10.3% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Information derived from non-GAAP reconciliations included elsewhere in this press release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Calculated from results of the Company's operating segments shown above, excluding Corporate and Eliminations.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended<br>December 31,** | **For the Three Months Ended<br>December 31,** | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Safety Services** |  |  |  |  |
| Safety Services EBITDA | $132 | $74 | $492 | $287 |
| Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: |  |  |
| &nbsp;&nbsp;Contingent consideration and compensation<br> (a) | 1 |  | 5 | 2 |
| &nbsp;&nbsp;Non-service pension benefit<br> (b) | (10) |  | (42) |  |
| &nbsp;&nbsp;Inventory step-up<br> (c) |  |  | 9 |  |
| &nbsp;&nbsp;Business process transformation expenses<br> (d) | 1 | 2 | 3 | 3 |
| &nbsp;&nbsp;Recent acquisition transition expenses<br> (e) | 24 |  | 57 |  |
| &nbsp;&nbsp;Integration and reorganization expenses<br> (f) |  |  | 7 |  |
| &nbsp;&nbsp;Restructuring costs<br> (g) | 12 |  | 30 |  |
| &nbsp;&nbsp;COVID-19 relief at international subsidiaries, net<br> (h) | (2) |  | (2) | (2) |
| &nbsp;&nbsp;Acquisition expenses<br> (j) |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Safety Services adjusted EBITDA | $158 | $77 | $559 | $291 |
| **Specialty Services** |  |  |  |  |
| Specialty Services EBITDA | $53 | $68 | $206 | $205 |
| Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: |  |  |
| &nbsp;&nbsp;Contingent consideration and compensation<br> (a) |  | (2) | 4 | (9) |
| &nbsp;&nbsp;Divested businesses<br> (i) |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Specialty Services adjusted EBITDA | $53 | $66 | $210 | $195 |
| **Corporate and Eliminations** |  |  |  |  |
| Corporate and Eliminations EBITDA | $(43) | $(44) | $(176) | $(151) |
| Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: | Adjustments to reconcile EBITDA to adjusted EBITDA: |  |  |
| &nbsp;&nbsp;Business process transformation expenses<br> (d) | 7 | 8 | 19 | 32 |
| &nbsp;&nbsp;Acquisition expenses<br> (j) |  | 8 | 26 | 25 |
| &nbsp;&nbsp;Recent acquisition transition expenses<br> (e) | 8 |  | 38 |  |
| &nbsp;&nbsp;Integration and reorganization expenses<br> (f) |  |  | 2 |  |
| &nbsp;&nbsp;(Gain) loss on extinguishment of debt, net<br> (k) |  |  | (5) | 9 |
| &nbsp;&nbsp;Corporate executive reorganization<br> (l) |  |  |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and Eliminations adjusted EBITDA | $(28) | $(28) | $(96) | $(79) |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to reflect the elimination of the expense, or reversal of previously recorded expense, attributable to deferred consideration to prior owners of acquired businesses not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of non-service pension benefit, which consists of interest cost, expected return on plan assets and amortization of actuarial gains/losses of the pension programs assumed as part of the Chubb acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Adjustment to reflect the elimination of costs related to the fair value step-up of acquired inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjustment to reflect the elimination of non-operational costs related to business process transformation, including system and process development costs and implementation of processes and compliance programs related to the Sarbanes-Oxley Act of 2002.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Adjustment to reflect the elimination of expenses associated with the transition of newly acquired businesses from prior ownership into APi Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Adjustment to reflect the elimination of integration and reorganization expenses associated with acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Adjustment to reflect the elimination of expenses associated with restructuring programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Adjustment to reflect the elimination of miscellaneous income in international subsidiaries related to COVID-19 relief, net of severance costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Adjustment to reflect the elimination of amounts related to businesses divested and classified as held-for-sale, inclusive of impairment charges and gain/(loss) on sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Adjustment to reflect the elimination of potential and completed acquisition-related expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Adjustment to reflect the elimination of (gain) loss on extinguishment of debt resulting from early repayments and repurchases of long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Adjustment to reflect the elimination of costs related to non-recurring severance related costs resulting from corporate leadership changes.

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2022** | **For the Three Months Ended December 31, 2021** | **For the Three Months Ended December 31, 2021** | **For the Three Months Ended December 31, 2021** |
|  | **As Reported** | **Adjustments** | **As Adjusted** | **As Reported** | **Adjustments** | **As Adjusted** |
| **Safety Services** | **Safety Services** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $1201 | $— | $1201 | $569 | $— | $569 |
| &nbsp;&nbsp;Cost of revenues | 823 | (8) (a) | 812 | 393 |  | 393 |
|  |  | (3) (b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $378 | $11 | $389 | $176 | $— | $176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 31.5% |  | 32.4% | 30.9% |  | 30.9% |
| **Specialty Services** | **Specialty Services** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $510 | $— | $510 | $560 | $— | $560 |
| &nbsp;&nbsp;Cost of revenues | 425 |  | 425 | 462 |  | 462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $85 | $- | $85 | $98 | $— | $98 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 16.7% |  | 16.7% | 17.5% |  | 17.5% |
| **Corporate and Eliminations** | **Corporate and Eliminations** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $(8) | $— | $(8) | $(17) | $— | $(17) |
| &nbsp;&nbsp;Cost of revenues | (8) |  | (8) | (17) |  | (17) |
| **Total Consolidated** | **Total Consolidated** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $1703 | $— | $1703 | $1112 | $— | $1112 |
| &nbsp;&nbsp;Cost of revenues | 1240 | (8) (a) | 1229 | 838 |  | 838 |
|  |  | (3) (b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $463 | $11 | $474 | $274 | $— | $274 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 27.2% |  | 27.8% | 24.6% |  | 24.6% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to reflect the addback of amortization expense related to backlog intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of expenses associated with restructuring programs.

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) | Adjusted Segment Financial Information (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2022** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** |
|  | **As Reported** | **Adjustments** | **As Adjusted** | **As Reported** | **Adjustments** | **As Adjusted** |
| **Safety Services** | **Safety Services** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $4575 | $— | $4575 | $2080 | $— | $2080 |
| &nbsp;&nbsp;Cost of revenues | 3186 | (27) (a) | 3143 | 1426 | (1) (a) | 1425 |
|  |  | (9) (b) |  |  |  |  |
|  |  | (7) (c) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $1389 | $43 | $1432 | $654 | $1 | $655 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 30.4% |  | 31.3% | 31.4% |  | 31.5% |
| **Specialty Services** | **Specialty Services** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $2030 | $— | $2030 | $1907 | $— | $1907 |
| &nbsp;&nbsp;Cost of revenues | 1705 | (3) (a) | 1702 | 1622 | (4) (a) | 1618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $325 | $3 | $328 | $285 | $4 | $289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 16.0% |  | 16.2% | 14.9% |  | 15.2% |
| **Corporate and Eliminations** | **Corporate and Eliminations** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $(47) | $— | $(47) | $(47) | $— | $(47) |
| &nbsp;&nbsp;Cost of revenues | (47) |  | (47) | (47) |  | (47) |
| **Total Consolidated** | **Total Consolidated** |  |  |  |  |  |
| &nbsp;&nbsp;Net revenues | $6558 | $— | $6558 | $3940 | $— | $3940 |
| &nbsp;&nbsp;Cost of revenues | 4844 | (30) (a) | 4798 | 3001 | (5) (a) | 2996 |
|  |  | (9) (b) |  |  |  |  |
|  |  | (7) (c) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | $1714 | $46 | $1760 | $939 | $5 | $944 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 26.1% |  | 26.8% | 23.8% |  | 24.0% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustment to reflect the addback of amortization expense related to backlog intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of costs related to the fair value step-up of acquired inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Adjustment to reflect the elimination of expenses associated with restructuring programs.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** | **APi Group Corporation** |
| Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures | Reconciliations of GAAP to Non-GAAP Financial Measures |
| Free cash flow and adjusted free cash flow and conversion (non-GAAP) | Free cash flow and adjusted free cash flow and conversion (non-GAAP) | Free cash flow and adjusted free cash flow and conversion (non-GAAP) | Free cash flow and adjusted free cash flow and conversion (non-GAAP) | Free cash flow and adjusted free cash flow and conversion (non-GAAP) |
| (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) | (Amounts in millions) |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | **For the Three Months Ended December 31,** | **For the Three Months Ended December 31,** | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net cash provided by operating activities<br> (a) | $188 | $114 | $270 | $182 |
| Less: Purchases of property and equipment<br> (a) | (19) | (12) | (79) | (55) |
| &nbsp;&nbsp;Free cash flow | $169 | $102 | $191 | $127 |
| Add (deduct): Cash payments (sources) related to following items: | Add (deduct): Cash payments (sources) related to following items: | Add (deduct): Cash payments (sources) related to following items: |  |  |
| &nbsp;&nbsp;Contingent compensation<br> (b) | $— | $1 | $3 | $20 |
| &nbsp;&nbsp;Pension contributions<br> (c) |  |  | 27 |  |
| &nbsp;&nbsp;Business process transformation expenses<br> (d) | 8 | 10 | 22 | 35 |
| &nbsp;&nbsp;Acquisition costs<br> (e) | 1 | 7 | 35 | 24 |
| &nbsp;&nbsp;Recent acquisition transition expenses<br> (f) | 31 |  | 95 |  |
| &nbsp;&nbsp;Integration and reorganization expenses<br> (g) | 2 |  | 14 |  |
| &nbsp;&nbsp;Restructuring payments<br> (h) | 2 |  | 8 |  |
| &nbsp;&nbsp;COVID-19 relief at international subsidiaries, net<br> (i) | (2) |  | (2) | (2) |
| &nbsp;&nbsp;Payroll tax deferral<br> (j) | 11 | 19 | 11 | 19 |
| &nbsp;&nbsp;Payments on acquired liabilities<br> (k) | 8 |  | 8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted free cash flow | $230 | $139 | $412 | $223 |
| Adjusted EBITDA<br> (l) | $183 | $115 | $673 | $407 |
| &nbsp;&nbsp;Adjusted free cash flow conversion | 125.7% | 120.9% | 61.2% | 54.8% |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Operating cash flows and purchases of property and equipment for the year ended December 31, 2022 and 2021 are as reported. Amounts for the three months ended December 31, 2021 and 2022 are calculated as the year ended less the amounts reported for the nine months ended September 30, 2022 and 2021, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Adjustment to reflect the elimination of deferred payments to prior owners of acquired businesses not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Adjustment to reflect the elimination of initial pension contribution payment related to the Chubb acquisition not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Adjustment to reflect the elimination of operating cash used for non-operational costs related to business process transformation, including system and process development costs and implementation of processes and compliance programs related to the Sarbanes-Oxley Act of 2002.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Adjustment to reflect the elimination of potential and completed acquisition-related costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Adjustment to reflect the elimination of expenses associated with the transition of newly acquired businesses from prior ownership into APi Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Adjustment to reflect the elimination of integration and reorganization expenses associated with newly acquired businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Adjustment to reflect payments made for restructuring programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Adjustment to reflect the elimination of cash received in international subsidiaries for COVID-19 relief, net of severance costs paid, not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Adjustment reflects the elimination of operating cash for the impact of the Coronavirus Aid Relief and Economic Security (CARES) Act. During the first quarter of 2020, the CARES Act was passed, allowing the Company to defer the payment of the employer's share of Social Security taxes until December 2021 and December 2022. In December 2021 and 2022, payments were made on a portion of the amount deferred in 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Adjustment to reflect the elimination of the impact of payments made on acquired liabilities, which are not expected to continue or recur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Adjusted EBITDA derived from non-GAAP reconciliations included elsewhere in this press release.

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