MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL RESULTS Our Management’s Discussion and Analysis (“MD&A”) is provided to enable a reader to assess our results of operations and  financial condition for the fiscal year ended December 31, 2013. This MD&A should be read in conjunction with our 2013  annual consolidated financial statements and related notes and is dated March 28, 2014. Unless the context indicates otherwise,  references in this Report to the “Corporation” refer to Brookfield Asset Management Inc., and references to “Brookfield,” “us,”  “we,” “our” or “the company” refer to the Corporation and its direct and indirect subsidiaries and consolidated entities. All  amounts are in U.S. dollars, and are based on financial statements prepared in accordance with International Financial Reporting  Standards (“IFRS”), as issued by the International Accounting Standards Board unless otherwise noted. Additional information about the company, including our 2013 Annual Information Form, is available free of charge on our  website at www.brookfield.com, on the Canadian Securities Administrators’ website at www.sedar.com and on the EDGAR  section of the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. Part 2  provides an overview of our annual and fourth quarter financial results utilizing key financial measures contained in our  Consolidated Statements of Operations, Other Comprehensive Income and Consolidated Balance Sheets over the past three  years including a discussion of variances between the periods. Part 3  is a discussion of the results of our various operating segments based on key financial measures, including certain  non-IFRS measures such as Funds from Operations and Net Operating Income. We also utilize key operating metrics in the  discussion. Part 4  reviews our capitalization and liquidity profile. Part 5  discusses our operating capabilities and a number of key risks associated with our business and our issued securities.  Further information on risks is contained in our Annual Information Form. Part 6  contains additional information on our accounting policies, internal control environment and related party transactions. STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND USE OF NON-IFRS MEASURES This Report to Shareholders contains forward-looking information within the meaning of Canadian provincial securities laws  and applicable regulations and “forward-looking statements” within the meaning of the “safe harbour” provisions of the United  States Private Securities Litigation Reform Act of 1995. We may make such statements in the Report, in other filings with  Canadian regulators or the U.S. Securities and Exchange Commission or in other communications. See “Cautionary Statement  Regarding Forward-Looking Statements and Information” on page 146.  We disclose a number of financial measures in this Report that are calculated and presented using methodologies other than  in accordance with IFRS. We utilize these measures in managing the business, including performance measurement, capital  allocation and valuation purposes and believe that providing these performance measures on a supplemental basis to our IFRS  results is helpful to investors in assessing the overall performance of our businesses. These financial measures should not be  considered as a substitute for similar financial measures calculated in accordance with IFRS. We caution readers that these non- IFRS financial measures may differ from the calculations disclosed by other businesses, and as a result, may not be comparable  to similar measures presented by others. Reconciliations of these non-IFRS financial measures to this most directly comparable  financial measures calculated and presented in accordance with IFRS, where applicable, are included within this MD&A. Information contained in or otherwise accessible through the websites mentioned does not form part of this Report. All references in this Report to websites are inactive textual references  and are not incorporated by reference. 2013 ANNUAL REPORT 11 Organization of the MD&A PART 1 – Overview and Outlook  Our Business  12 Strategy and Value Creation  13 Economic and Market Review and Outlook  14 Basis of Presentation and Use of Non-IFRS Measures  16 PART 2 – Financial Performance  Review  Selected Annual Financial Information 18 Annual Financial Performance  19 Financial Profile  26 Quarterly Financial Performance  31 Corporate Dividends  33 PART 3 – Operating Segment Results  Basis of Presentation  34  Results by Operating Segment  36 Asset Management 37 Property 40 Renewable Energy  43 Infrastructure 45 Private Equity  47 Residential Development  Service Activities  48 Corporate Activities  49 PART 4 – Capitalization and Liquidity  Financing Strategy  50 Capitalization Interest Rate Profile  55 Liquidity 56 Review of Consolidated Statement  of Cash Flows  57 Contractual Obligations  58 Exposures to Selected Financial  Instruments 58 PART 5 – Operating Capabilities,  Environment and Risks  Operating Capabilities 59 Risk Management  Business Environment and Risks  60 PART 6 – Additional Information Accounting Policies and Internal Controls  72 Related Party Transactions  76 Part 1  provides an overview of our business, including a discussion of our strategy, and the economic environment and outlook  at the time of writing. This section also contains information on the basis of presentation of financial information contained in  the MD&A and key financial measures.