Q3 2023 Earnings Release

November 1, 2023Apollo Global Management, Inc. Reports Third Quarter 2023 Results~PAGE-BREAK~Amid challenging market conditions for many, the resilience and growth characteristics of our differentiated business model are evident.The combined strength of our leading Asset Management and Retirement Services franchises positions us well to benefit in the current environment while providing unparalleled alignment with our clients.These are the periods in which we excel, and we're on track to complete a strong year of execution.Apollo Reports Third Quarter 2023 ResultsNew York, November 1, 2023 - Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") today reported results for the third quarter ended September 30, 2023.DividendApollo Global Management, Inc. has declared a cash dividend of $0.43 per share of its Common Stock for the third quarter ended September 30, 2023.This dividend will be paid on November 30, 2023 to holders of record at the close of business on November 17, 2023.Apollo Global Management, Inc. has also declared and set aside for payment a cash dividend of $0.8438 per share of its 6.75% Series A Mandatory Convertible Preferred Stock, which will be paid on January 31, 2024 to holders of record at the close of business on January 15, 2024.The declaration and payment of dividends on the Common Stock and the 6.75% Series A Mandatory Convertible Preferred Stock are at the sole discretion of Apollo Global Management, Inc.'s board of directors.Apollo cannot assure its stockholders that they will receive any dividends in the future.Conference CallApollo will host a public audio webcast on Wednesday, November 1, 2023 at 8:30 a.m.EasteTime.During the webcast, members of Apollo's senior management team will review Apollo's financial results for the third quarter ended September 30, 2023.The webcast may be accessed at ir.apollo.com.For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event.Apollo distributes its earnings releases via its website and email distribution lists.Those interested in receiving firm updates by email can sign up for them at ir.apollo.com.Marc Rowan Chief Executive Officer~PAGE-BREAK~About ApolloApollo is a high-growth, global alternative asset manager.In our asset management business, we seek to provide our clients excess retuat every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity.For more than three decades, our investing expertise across our fully integrated platform has served the financial retuneeds of our clients and provided businesses with innovative capital solutions for growth.Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions.Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes.As of September 30, 2023, Apollo had approximately $631 billion of assets under management.To leamore, please visit www.apollo.com.Forward-Looking StatementsIn this press release, references to "Apollo," "we," "us," "our" and the "Company" refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require.This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.These statements include, but are not limited to, discussions related to Apollo's expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements.These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management.When used in this press release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements.Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, market conditions and interest rate fluctuations generally, the impact of COVID-19, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management's assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene's ability to maintain or improve financial strength ratings, the impact of Athene's reinsurers failing to meet their assumed obligations, Athene's ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others.We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 1, 2023, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov.These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC.We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.This press release does not constitute an offer of any Apollo fund.Investor and Media Relations ContactsFor investors please contact:Noah GunnGlobal Head of Investor RelationsApollo Global Management, [email protected] media inquiries please contact:Joanna RoseGlobal Head of Corporate CommunicationsApollo Global Management, [email protected]~PAGE-BREAK~Apollo Global Management, Inc. Third Quarter 2023 Earnings~PAGE-BREAK~3Q'23  Per Share  YTD'23  Per ShareGAAP Financial Measures ($ in millions, except per share amounts)Net Income Attributable to Apollo Global Management, Inc. Common Stockholders  $660  $1.10  $2,269  $3.77Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts)Fee Related Earnings ("FRE")  $472  $0.77  $1,311  $2.18Spread Related Earnings ("SRE")  $873  $1.43  $2,360  $3.92Fee and Spread Related Earnings  $1,345  $2.20  $3,671  $6.10Principal Investing Income ("PII")  $4  $0.01  $32  $0.05Adjusted Net Income ("ANI")  $1,045  $1.71  $2,900  $4.83Assets Under Management ($ in billions)Total Assets Under Management ("AUM")  $631Fee-Generating AUM ("FGAUM")  $468 3Q'23  LTM 3Q'23Business Drivers ($ in billions)Inflows  $33  $153Gross Capital Deployment  $36  $142Debt Origination  $23  $91Third Quarter 2023 Financial Highlights• GAAP Net Income Attributable to Apollo Global Management, Inc. Common Stockholders was $660 million for the quarter ended September 30, 2023, or $1.10 per share, and $2.9 billion over the last four quarters• Apollo's primary non-GAAP earnings metric, Adjusted Net Income, which represents the sum of FRE, SRE, and PII, less HoldCo interest and other financing costs and taxes, totaled $1.0 billion, or $1.71 per share, for the third quarterNote: 2022 amounts throughout this document have been retrospectively adjusted in accordance with the requirements of the adoption guidance of the accounting standard relating to Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This presentation contains non-GAAP financial information and defined terms which are described on pages 32 to 36. The non-GAAP financial information contained herein is reconciled to GAAP financial information on pages 27 to 31. Per share calculations are based on end of period Adjusted Net Income Shares Outstanding. YTD'23 per share amounts represent the sum of the last three quarters. See page 22 for the share reconciliation. "NM" as used throughout this presentation indicates data has not been presented as it was deemed not meaningful, unless the context otherwise provides.  1~PAGE-BREAK~(In millions, except per share amounts)  3Q'22  2Q'23  3Q'23  YTD'22  YTD'23RevenuesAsset ManagementManagement fees  $389  $452  $462  $1,100  $1,328Advisory and transaction fees, net  110  170  157  286  482Investment income (loss)  (31)  138  292  475  882Incentive fees  9  26  18  17  59Retirement ServicesPremiums  3,045  9,041  26  10,769  9,163Product charges  184  207  217  525  622Net investment income  2,033  2,948  3,166  5,667  8,726Investment related gains (losses)  (2,847)  366  (2,624)  (12,822)  (1,193)Revenues of consolidated variable interest entities  114  347  318  148  946Other revenues  (27)  7  563  (38)  583Total Revenues  2,979  13,702  2,595  6,127  21,598ExpensesAsset ManagementCompensation and benefits  (386)  (516)  (557)  (1,429)  (1,743)Interest expense  (31)  (31)  (36)  (94)  (98)General, administrative and other  (167)  (226)  (220)  (472)  (643)Retirement ServicesInterest sensitive contract benefits  (171)  (2,012)  (333)  581  (3,634)Future policy and other policy benefits  (3,270)  (9,512)  (368)  (11,230)  (10,346)Market risk benefits remeasurement gains (losses)  458  71  441  1,689  166Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired  (112)  (153)  (211)  (318)  (502)Policy and other operating expenses  (342)  (452)  (467)  (985)  (1,356)Total Expenses  (4,021)  (12,831)  (1,751)  (12,258)  (18,156)Other Income (Loss) - Asset ManagementNet gains (losses) from investment activities  (16)  20  (32)  164  (14)Net gains (losses) from investment activities of consolidated variable interest entities  85  12  49  465  95Other income (loss), net  28  48  22  26  102Total Other Income (Loss)  97  80  39  655  183Income (loss) before income tax (provision) benefit  (945)  951  883  (5,476)  3,625Income tax (provision) benefit  96  (201)  (243)  962  (697)Net income (loss)  (849)  750  640  (4,514)  2,928Net (income) loss attributable to non-controlling interests  286  (151)  42  1,913  (637)Net income (loss) attributable to Apollo Global Management, Inc.  (563)  599  682  (2,601)  2,291Preferred stock dividends  -  -  (22)  -  (22)Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders  $(563)  $599  $660  $(2,601)  $2,269Earnings (Loss) per shareNet income (loss) attributable to Common Stockholders - Basic  $(0.98)  $1.00  $1.10  $(4.51)  $3.77Net income (loss) attributable to Common Stockholders - Diluted  $(0.98)  $1.00  $1.10  $(4.51)  $3.75Weighted average shares outstanding - Basic  584  579  579  585  581Weighted average shares outstanding - Diluted  584  579  579  585  582GAAP Income Statement (Unaudited)2~PAGE-BREAK~Strong third quarter results reflect continued execution against 2023 targets• Record quarterly FRE of $472 million driven by solid management fee growth, record quarterly capital solutions fees, and well controlled expenses, together generating significant margin expansion• Record quarterly SRE of $873 million driven by solid organic growth and strong new business profitability• Together, FRE and SRE of $1.3 billion in the third quarter showcase the resilient and growing earnings power of the Asset Management and Retirement Services businesses• Total AUM of $631 billion benefited from total inflows of $33 billion in the third quarterContinued progress on three strategic growth pillars• Origination: Debt origination volume totaled $23 billion in the third quarter, run-rating near a $100bn annualized rate, aided by an increasing contribution from platform origination• Global Wealth: Fundraising from individual investors remains on track to exceed last year's level, driven by an expanding product suite and distribution reach, as well as strong investment performance• Capital Solutions: Generated record quarterly fee revenue from robust capital deployment activity within Yield and Equity strategiesThird Quarter 2023 Business Highlights ✓✓3~PAGE-BREAK~($ in millions, except per share amounts)  3Q'22  2Q'23  3Q'23  YTD'22  YTD'23Management fees  $546  $620  $648  $1,573  $1,845Capital solutions fees and other, net  105  138  146  272  422Fee-related performance fees  20  35  40  46  102Fee-related compensation  (194)  (212)  (212)  (556)  (635)Non-compensation expenses  (112)  (139)  (150)  (319)  (423)Fee Related Earnings   $365  $442  $472  $1,016  $1,311Net investment spread  832  1,045  1,100  2,305  3,066Other operating expenses  (117)  (117)  (121)  (335)  (362)Interest and other financing costs  (73)  (129)  (106)  (199)  (344)Spread Related Earnings  $642  $799  $873  $1,771  $2,360Fee and Spread Related Earnings  $1,007  $1,241  $1,345  $2,787  $3,671Principal Investing Income   $50  $20  $4  $257  $32Segment Income  $1,057  $1,261  $1,349  $3,044  $3,703HoldCo interest and other financing costs  (29)  (20)  (36)  (103)  (77)Taxes and related payables  (178)  (231)  (268)  (598)  (726)Adjusted Net Income  $850  $1,010  $1,045  $2,343  $2,900ANI per share  $1.42  $1.70  $1.71  $3.91  $4.831.Represents interest and other financing costs related to Apollo Global Management, Inc. not attributable to any specific segment.HoldCo interest and other financing costs for 3Q'23 includes $21 million related to the redemption of Apollo Asset Management's Series A and Series B Preferred Stock, representing the difference between the book value and the redemption value.Total Segment Earnings4~PAGE-BREAK~($ in millions, except per share amounts)  3Q'22  2Q'23  3Q'23  YTD'22  YTD'23Management fees  $546  $620  $648  $1,573  $1,845Capital solutions fees and other, net  105  138  146  272  422Fee-related performance fees  20  35  40  46  102Fee-related compensation  (194)  (212)  (212)  (556)  (635)Non-compensation expenses  (112)  (139)  (150)  (319)  (423)Fee Related Earnings   $365  $442  $472  $1,016  $1,311Net investment spread  832  1,045  1,100  2,305  3,066Other operating expenses  (117)  (117)  (121)  (335)  (362)Interest and other financing costs  (73)  (129)  (106)  (199)  (344)Normalization of alternative investment income to 11%  82  75  96  66  319Other notable items  (42)  -  (90)  (3)  (115)Spread Related Earnings - Normalized  $682  $874  $879  $1,834  $2,564Fee and Spread Related Earnings - Normalized  $1,047  $1,316  $1,351  $2,850  $3,875Principal Investing Income   $50  $20  $4  $257  $32Segment Income - Normalized  $1,097  $1,336  $1,355  $3,107  $3,907HoldCo interest and other financing costs  (29)  (20)  (36)  (103)  (77)Taxes and related payables  (186)  (247)  (269)  (611)  (769)Adjusted Net Income - Normalized  $882  $1,069  $1,050  $2,393  $3,061ANI per share - Normalized  $1.47  $1.80  $1.72  $3.99  $5.10Total Segment Earnings - Normalizing Spread Related Earnings1. See page 13 for more information on normalization of alternative investment income. 2. Other notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. 3. Spread Related Earnings - Normalized reflects adjustments to exclude notable items and normalize alternative investment income to an 11% long-term return.   5~PAGE-BREAK~Segment Details~PAGE-BREAK~

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Apollo Global Management Inc. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 10:31:58 UTC.