Apollo Global Management : 1Q 2024 Earnings Release

Apollo Global

Management, Inc.

Reports First Quarter

2024 Results

May 2, 2024

Apollo Reports First Quarter 2024 Results

New York, May 2, 2024 - Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") today reported results for the first quarter ended March 31, 2024.

Dividend

Apollo Global Management, Inc. has declared a cash dividend of $0.4625 per share of its Common Stock for the first quarter ended March 31, 2024. This dividend will be paid on May 31, 2024 to holders of record at the close of business on May 17, 2024.

Apollo Global Management, Inc. has also declared and set aside for payment a cash dividend of $0.8438 per share of its Mandatory Convertible Preferred Stock, which will be paid on July 31, 2024 to holders of record at the close of business on July 15, 2024.

The declaration and payment of dividends on the Common Stock and the 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 Call

Apollo will host a public audio webcast on Thursday, May 2, 2024 at 8:30 a.m. Eastern Time. During the webcast, members of Apollo's senior management team will review Apollo's financial results for the first quarter ended March 31, 2024.

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.

"Our solid FRE and SRE results in the first quarter were on-trend with normalized growth rates for the business. Capital formation and origination activity in the quarter were robust, with inflows and debt origination volume each totaling $40 billion. With visible momentum across the platform, we're confident in our ability to deliver on our financial targets for the year."

Marc Rowan

Chief Executive Officer

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at 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 return needs 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 March 31, 2024, Apollo had approximately $671 billion of assets under management. To learn more, please visit www.apollo.com.

Forward-Looking Statements

In 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, interest rate fluctuations and market conditions generally, 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 our annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 27, 2024, 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 revise 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 Contacts	For media inquiries please contact:
For investors please contact:
Noah Gunn	Joanna Rose
Global Head of Investor Relations	Global Head of Corporate Communications
Apollo Global Management, Inc.	Apollo Global Management, Inc.
212-822-0540	212-822-0491
[e-mail]	[e-mail]

Apollo Global

Management, Inc.

First Quarter 2024

Earnings

First Quarter 2024 Financial Highlights

• GAAP Net Income Attributable to Apollo Global Management, Inc. Common Stockholders was $1.4 billion for the quarter ended March 31, 2024, or $2.31 per share
• 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 $1.1 billion, or $1.72 per share, for the first quarter

	1Q'24	Per Share	LTM 1Q'24	Per Share
GAAP Financial Measures ($ in millions, except per share amounts)
Net Income Attributable to Apollo Global Management, Inc. Common Stockholders	$1,403	$2.31
Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts)
Fee Related Earnings ("FRE")	$462	$0.75	$1,833	$3.00
Spread Related Earnings ("SRE")	$817	$1.32	$3,237	$5.30
Fee and Spread Related Earnings	$1,279	$2.07	$5,070	$8.30
Principal Investing Income ("PII")	$21	$0.03	$96	$0.15
Adjusted Net Income ("ANI")	$1,064	$1.72	$4,301	$7.04
Assets Under Management ($ in billions)
Total Assets Under Management ("AUM")	$671
Fee-Generating AUM ("FGAUM")	$506
	1Q'24		LTM 1Q'24
Business Drivers ($ in billions)
Inflows	$40		$140
Gross Capital Deployment	$57		$172
Debt Origination	$40		$118

This presentation contains non-GAAP financial information and defined terms which are described on pages 31 to 35. The non-GAAP financial information contained herein is reconciled to GAAP financial information on pages 26 to 30. Per share calculations are based on end of period Adjusted Net Income Shares Outstanding. LTM 1Q'24 per share amounts represent the sum of the last four quarters. See page 21 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

GAAP Income Statement (Unaudited)

(In millions, except per share amounts)	1Q'23	4Q'23	1Q'24
Revenues
Asset Management
Management fees	$414	$444	$438
Advisory and transaction fees, net	155	141	169
Investment income (loss)	452	150	402
Incentive fees	15	21	26
Retirement Services
Premiums	96	3,586	101
Product charges	198	226	238
Net investment income	2,612	3,354	3,576
Investment related gains (losses)	1,065	2,621	1,677
Revenues of consolidated variable interest entities	281	495	411
Other revenues	13	8	2
Total Revenues
5,301	11,046	7,040
Expenses
Asset Management
Compensation and benefits	(670)	(979)	(667)
Interest expense	(31)	(47)	(51)
General, administrative and other	(197)	(229)	(240)
Retirement Services
Interest sensitive contract benefits	(1,289)	(2,595)	(2,884)
Future policy and other policy benefits	(466)	(4,088)	(543)
Market risk benefits remeasurement gains (losses)	(346)	(570)	154
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired	(138)	(186)	(207)
Policy and other operating expenses	(437)	(481)	(453)
Total Expenses
(3,574)	(9,175)	(4,891)
Other Income (Loss) - Asset Management
Net gains (losses) from investment activities	(2)	21	39
Net gains (losses) from investment activities of consolidated variable interest entities	34	35	25
Other income (loss), net	32	34	(26)
Total Other Income (Loss)	64	90	38
Income (loss) before income tax (provision) benefit	1,791	1,961	2,187
Income tax (provision) benefit1	(253)	1,620	(422)
Net income (loss)	1,538	3,581	1,765
Net (income) loss attributable to non-controlling interests	(528)	(825)	(338)
Net income (loss) attributable to Apollo Global Management, Inc.	1,010	2,756	1,427
Preferred stock dividends	-	(24)	(24)
Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders	$1,010	$2,732	$1,403
Earnings (Loss) per share
Net income (loss) attributable to Common Stockholders - Basic	$1.67	$4.53	$2.31
Net income (loss) attributable to Common Stockholders - Diluted	$1.66	$4.44	$2.28
Weighted average shares outstanding - Basic	584	584	588
Weighted average shares outstanding - Diluted	584	601	605

1. 4Q'23 includes a one-time tax benefit of $1.8 billion resulting from the establishment of deferred tax assets related to the Government of Bermuda's enactment of the Corporate Income Tax Act of 2023.	2

First Quarter 2024 Business Highlights

✓	Delivered solid first quarter results across both the Asset Management and Retirement Services businesses

• FRE of $462 million driven by solid growth in fee related revenues
• SRE of $817 million driven by robust organic growth and strong profitability
• Combined, FRE and SRE totaled $1.3 billion in the first quarter, increasing 18% year-over-year and showcasing the predictable and growing earnings power of the combined business model
• Total AUM of $671 billion benefited from inflows of $40 billion in the first quarter and $140 billion over the last twelve months, driving a 12% increase year-over-year

	Continued execution on three strategic growth pillars
	• Origination: Record quarterly debt origination volume of $40 billion, with platforms contributing more than
✓	half of the total
• Global Wealth: Solid fundraising activity from individual investors across more than twenty discrete
	products with a growing contribution from Apollo's diversified semi-liquid product suite
	• Capital Solutions: Near-record quarterly fee revenue driven primarily by debt-related investment activity
	in the first quarter

3

Total Segment Earnings

($ in millions, except per share amounts)	1Q'23	4Q'23
Management fees	$577	$635
Capital solutions fees and other, net	138	116
Fee-related performance fees	27	44
Fee-related compensation	(211)	(200)
Non-compensation expenses	(134)	(138)
Fee Related Earnings	$397	$457
Net investment spread	921	959
Other operating expenses	(124)	(119)
Interest and other financing costs	(109)	(92)
Spread Related Earnings	$688	$748
Fee and Spread Related Earnings	$1,085	$1,205
Principal Investing Income	$8	$51
Segment Income	$1,093	$1,256
HoldCo interest and other financing costs1	(21)	(11)
Taxes and related payables	(227)	(63)
Adjusted Net Income	$845	$1,182
ANI per share	$1.42	$1.91

1. Represents interest and other financing costs related to Apollo Global Management, Inc. not attributable to any specific segment.

1Q'24 $652 141 46 (220) (157) $462 1,022 (114) (91) $817

$1,279

$21

$1,300

(15)

(221)

$1,064

$1.72

LTM 1Q'23 $2,206 488

85

(790)

(492)

$1,497

3,286

(477)

(326)

$2,483

$3,980

$105

$4,085

(104)

(807)

$3,174

$5.31

LTM 1Q'24 $2,555 541

165

(844)

(584)

$1,833

4,126

(471)

(418)

$3,237

$5,070

$96

$5,166

(82)

(783)

$4,301

$7.04

4

Total Segment Earnings, Excluding Notable Items

($ in millions, except per share amounts)	1Q'23	4Q'23
Management fees	$577	$635
Capital solutions fees and other, net	138	116
Fee-related performance fees	27	44
Fee-related compensation	(211)	(200)
Non-compensation expenses	(134)	(138)
Fee Related Earnings	$397	$457
Net investment spread	921	959
Other operating expenses	(124)	(119)
Interest and other financing costs	(109)	(92)
Notable items	(25)	-
Spread Related Earnings, Excluding Notable Items	$663	$748
Fee and Spread Related Earnings, Excluding Notable Items	$1,060	$1,205
Principal Investing Income	$8	$51
Segment Income, Excluding Notable Items	$1,068	$1,256
HoldCo interest and other financing costs	(21)	(11)
Taxes and related payables	(222)	(63)
Adjusted Net Income, Excluding Notable Items	$825	$1,182
ANI per share, Excluding Notable Items	$1.38	$1.91

1Q'24 $652 141 46 (220) (157) $462 1,022 (114) (91)

-

$817

$1,279

$21

$1,300

(15)

(221)

$1,064

$1.72

LTM 1Q'23 $2,206 488

85

(790)

(492)

$1,497

3,286

(477)

(326)

(41)

$2,442

$3,939

$105

$4,044

(104)

(799)

$3,141

$5.24

LTM 1Q'24 $2,555 541

165

(844)

(584)

$1,833

4,126

(471)

(418)

(90)

$3,147

$4,980

$96

$5,076

(82)

(764)

$4,230

$6.92

Note: Notable Items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. As a supplemental item, the Company provides the difference between management's long-term expectation of generating an 11% average annual return and reported alternative net investment income. See page 10 for further details.

5

Segment Details