Element Fleet Management : Q1 2024 - Management Discussion & Analysis

Element Fleet Management Corp.

Management's Discussion and Analysis

March 31, 2024

The following management discussion and analysis ("MD&A") dated May 14, 2024, provides information management believes is relevant to an assessment and understanding of the consolidated financial condition and consolidated results of operations of Element Fleet Management Corp. (the "Company", "we" or "Element") as at and for the three-month period ended March 31, 2024. This MD&A should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements and accompanying notes as at and for the three-month period ended March 31, 2024 and the Company's latest annual information form (AIF) both filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.comand are incorporated by reference herein. All dollar amounts in this MD&A are expressed in U.S. dollars unless otherwise specified and all numbers are in thousands, unless otherwise specified or for per share amounts or percentages or ratios. Additional information relating to the Company is available on SEDAR at www.sedar.comand on the Company's website at www.elementfleet.com.The Company's functional currency is the Canadian dollar.

This MD&A refers to certain non-GAAP and supplemental financial measures, which we believe are useful in assessing our financial performance. Readers are cautioned that these measures do not have any standard meaning prescribed by GAAP under International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information related to non-GAAP measures and a reconciliation to their nearest IFRS measures, please read "IFRS to Non-GAAP Reconciliations" section at the end of this MD&A. Our Board of Directors has authorized this MD&A.

CAUTIONARY STATEMENT

THIS ANALYSIS HAS BEEN PREPARED TAKING INTO CONSIDERATION INFORMATION AVAILABLE TO MAY 14, 2024. CERTAIN STATEMENTS IN THIS MD&A, OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF APPLICABLE SECURITIES LAWS AND MAY CONTAIN FORWARD-LOOKING INFORMATION. SUCH STATEMENTS ARE BASED UPON ELEMENT'S AND ITS MANAGEMENT'S CURRENT INTERNAL EXPECTATIONS, ESTIMATES, PROJECTIONS, ASSUMPTIONS AND BELIEFS. THESE STATEMENTS MAY INCLUDE, WITHOUT LIMITATION, STATEMENTS REGARDING THE OPERATIONS, BUSINESS, FINANCIAL CONDITION, EXPECTED FINANCIAL RESULTS, PERFORMANCE, PROSPECTS, OPPORTUNITIES, PRIORITIES, TARGETS, GOALS, ONGOING OBJECTIVES, STRATEGIES AND OUTLOOK OF ELEMENT. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS THAT ARE PREDICTIVE IN NATURE, AND DEPEND UPON OR REFER TO FUTURE EVENTS OR CONDITIONS. IN SOME CASES, WORDS SUCH AS "PLAN", "EXPECT", "INTEND", "BELIEVE", "ANTICIPATE", "ESTIMATE", "TARGET", "PROJECT", "FORECAST", "MAY", "IMPROVE", "WILL", "POTENTIAL", "PROPOSED" AND OTHER SIMILAR WORDS, OR STATEMENTS THAT CERTAIN EVENTS OR CONDITIONS "MAY" OR "WILL" OCCUR ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION. FORWARD- LOOKING STATEMENTS (INCLUDING THOSE REGARDING FINANCIAL OUTLOOK) ARE PROVIDED FOR THE PURPOSES OF ASSISTING THE READER IN UNDERSTANDING ELEMENT AND ITS BUSINESS, OPERATIONS, RISKS, SUSTAINABILITY, FINANCIAL PERFORMANCE, FINANCIAL POSITION AND CASH FLOWS AS AT AND FOR THE PERIODS ENDED ON CERTAIN DATES AND TO PRESENT INFORMATION ABOUT MANAGEMENT'S CURRENT EXPECTATIONS AND PLANS RELATING TO THE FUTURE AND THE READER IS CAUTIONED THAT SUCH STATEMENTS MAY NOT BE APPROPRIATE FOR OTHER PURPOSES. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS OR EVENTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN THE FORWARD-LOOKING STATEMENTS OR INFORMATION. UNDUE RELIANCE SHOULD NOT BE PLACED ON THESE FORWARD-LOOKING STATEMENTS, AS THERE CAN BE NO ASSURANCE THAT THE PLANS, INTENTIONS OR EXPECTATIONS UPON WHICH THEY ARE BASED WILL OCCUR. BY ITS NATURE, FORWARD-LOOKING INFORMATION INVOLVES NUMEROUS ASSUMPTIONS, KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES, BOTH GENERAL AND SPECIFIC, THAT CONTRIBUTE TO THE POSSIBILITY THAT THE EXPECTATIONS, PREDICTIONS, FORECASTS, PROJECTIONS, CONCLUSIONS OR OTHER FORWARD-LOOKING STATEMENTS WILL NOT OCCUR OR PROVE ACCURATE, THAT ASSUMPTIONS MAY NOT BE CORRECT AND THAT OBJECTIVES, STRATEGIC GOALS AND PRIORITIES WILL NOT BE ACHIEVED. SUCH FORWARD-LOOKING STATEMENTS AND INFORMATION IN THIS MD&A SPEAK ONLY AS OF THE DATE OF THIS MD&A. THE FORWARD-LOOKING INFORMATION AND STATEMENTS CONTAINED IN THIS MD&A REFLECT SEVERAL MATERIAL FACTORS, EXPECTATIONS AND ASSUMPTIONS OF ELEMENT INCLUDING, WITHOUT LIMITATION: THAT ELEMENT WILL CONDUCT ITS OPERATIONS IN A MANNER CONSISTENT WITH ITS EXPECTATIONS AND, WHERE APPLICABLE, CONSISTENT WITH PAST PRACTICE; SUCCESSFUL IMPLEMENTATION OF STRATEGIC INITIATIVES AND THE EXPECTED BENEFITS AND COSTS OF SUCH INITIATIVES; ACCEPTABLE NEGOTIATIONS WITH THIRD PARTIES; THE CONTINUANCE OF EXISTING (AND IN CERTAIN CIRCUMSTANCES, THE IMPLEMENTATION OF PROPOSED) TAX AND REGULATORY REGIMES; EXPECTATIONS REGARDING GOVERNMENT POLICIES, LEGISLATION AND REGULATORY ACTIONS IN RESPECT OF SUSTAINABILITY AND RELATED MATTERS; CERTAIN COST ASSUMPTIONS; THE CONTINUED AVAILABILITY OF ADEQUATE DEBT AND/OR EQUITY FINANCING AND CASH FLOW TO FUND ITS CAPITAL AND OPERATING REQUIREMENTS AS NEEDED; THE EXTENT OF ITS ASSETS AND LIABILITIES; THE COMPANY'S NET FINANCING REVENUE YIELD ON AVERAGE NET EARNING ASSETS; GROWTH IN LEASE RECEIVABLES AND SERVICE INCOME;

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 2

EXPECTATIONS REGARDING SYNDICATION; RATE OF COST INFLATION; APPLICABLE FOREIGN EXCHANGE RATES AND APPLICABLE INCOME TAX RATES; THE COMPANY'S FUNDING MIX; THE IMPACT OF VEHICLE MANUFACTURERS' ABILITY TO DELIVER VEHICLES; AND ANY IMPACTS OF PANDEMICS OR OTHER HEALTH THREATS ON INDUSTRY AND MARKET CONDITIONS. ELEMENT BELIEVES THE MATERIAL FACTORS, EXPECTATIONS AND ASSUMPTIONS REFLECTED IN THE FORWARD-LOOKING INFORMATION AND STATEMENTS ARE REASONABLE BUT NO ASSURANCE CAN BE GIVEN THAT THESE FACTORS, EXPECTATIONS AND ASSUMPTIONS WILL PROVE TO BE CORRECT.

FORWARD-LOOKING STATEMENTS AND INFORMATION IN THIS MD&A INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS WITH RESPECT TO: ELEMENT'S REVENUES, EXPENSES, RUN-RATE AND OPERATIONS, FUTURE CASH FLOWS, FINANCIAL CONDITION, OPERATING PERFORMANCE, SUSTAINABILITY PERFORMANCE AND TARGETS, FINANCIAL RATIOS, PROJECTED ASSET BASE AND CAPITAL STRUCTURE; ELEMENT'S EXPECTATIONS REGARDING THE IMPLEMENTATION OF STRATEGIC INITIATIVES AND THE EXPECTED BENEFITS AND COSTS OF SUCH INITIATIVES; ELEMENT'S EXPECTATIONS IN RESPECT OF ITS SUPPLY CHAIN AND THE TIMING AND VOLUME OF VEHICLE PRODUCTION; ELEMENT'S ABILITY TO RENEW OR REFINANCE CREDIT AND SECURITIZATION FACILITIES; ELEMENT'S STRATEGY TO IMPROVE AND OPTIMIZE THE CLIENT EXPERIENCE AND CLIENT ACQUISITION AND RETENTION; ELEMENT'S EXPECTATIONS REGARDING SYNDICATION; ELEMENT'S ANTICIPATED CASH NEEDS, CAPITAL REQUIREMENTS AND ITS NEEDS FOR ADDITIONAL FINANCING; ELEMENT'S FUTURE GROWTH PLANS; ELEMENT'S EXPECTATIONS REGARDING ITS ORIGINATION VOLUMES; ELEMENT'S ANTICIPATED DELINQUENCY RATES AND CREDIT LOSSES; ELEMENT'S ABILITY TO ATTRACT AND RETAIN PERSONNEL; ELEMENT'S TECHNOLOGY AND DATA, AND EXPECTED USES AND BENEFITS; ELEMENT'S COMPETITIVE POSITION AND ITS EXPECTATIONS REGARDING COMPETITION; ANTICIPATED TRENDS AND CHALLENGES IN ELEMENT'S BUSINESS AND THE MARKETS IN WHICH IT OPERATES; THE EVOLUTION OF ELEMENT'S BUSINESS AND THE FLEET MANAGEMENT INDUSTRY; ELEMENT'S GROWTH PROSPECTS AND ITS OBJECTIVES, VISION AND STRATEGIES; ELEMENT'S OPERATIONS AND ABILITY TO DRIVE OPERATIONAL EFFICIENCIES; ELEMENT'S ASSESSMENT AND EXPECTATIONS REGARDING ITS ASSETS; ELEMENT'S BUSINESS STRATEGY; ELEMENT'S EXPECTATION REGARDING THE AVAILABILITY OF FUNDS FROM OPERATIONS, CASH FLOW GENERATION AND CAPITAL ALLOCATION; ELEMENT'S BUSINESS OUTLOOK AND OTHER EXPECTATIONS REGARDING FINANCING OR OPERATING PERFORMANCE METRICS; THE EVOLUTION OF OPERATIONS AND THE DEVELOPMENT OF PERFORMANCE INDICATORS, AND OTHER FINANCIAL PERFORMANCE METRICS; THE FUTURE FINANCIAL REPORTING OF ELEMENT; FUTURE DEMAND FOR ELEMENT'S SERVICES; ELEMENT'S BORROWING BASE; THE EXTENT, NATURE AND IMPACT OF ANY VALUE DRIVER TO CREATE, AND THE ABILITY TO GENERATE, PRE-TAXRUN-RATE OPERATING INCOME; ELEMENT'S ABILITY TO INCREASE TOTAL SHAREHOLDER RETURN; ELEMENT'S DIVIDEND POLICY AND THE PAYMENT OF FUTURE DIVIDENDS; ELEMENT'S EXPECTATIONS AND ABILITY TO REDEEM ITS PREFERRED SHARES; ELEMENT'S PROPOSED SHARE PURCHASES, INCLUDING THE NUMBER OF COMMON SHARES TO BE REPURCHASED, THE TIMING THEREOF AND TSX ACCEPTANCE OF ANY RENEWAL OF THE NORMAL COURSE ISSUER BID; ANY IMPACT THAT PANDEMICS OR OTHER HEALTH EVENTS MAY HAVE ON ELEMENT'S FINANCIAL CONDITION, OPERATING RESULTS AND CASH FLOWS; AND ELEMENT'S ABILITY TO PRE- FUND REDEMPTION OF ITS OUTSTANDING CONVERTIBLE DEBENTURES UPON THEIR MATURITY, IF REQUIRED. THE READER IS CAUTIONED TO CONSIDER THESE AND OTHER FACTORS, UNCERTAINTIES AND POTENTIAL EVENTS CAREFULLY AND NOT TO PUT UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS. INFORMATION CONTAINED IN FORWARD-LOOKING STATEMENTS IS BASED UPON CERTAIN MATERIAL ASSUMPTIONS THAT WERE APPLIED IN DRAWING A CONCLUSION OR MAKING A FORECAST OR PROJECTION, INCLUDING MANAGEMENT'S PERCEPTIONS OF HISTORICAL TRENDS, CURRENT CONDITIONS AND EXPECTED FUTURE DEVELOPMENTS, AS WELL AS OTHER CONSIDERATIONS THAT ARE BELIEVED TO BE APPROPRIATE IN THE CIRCUMSTANCES. ALTHOUGH ELEMENT BELIEVES THAT THE EXPECTATIONS REFLECTED IN THE FORWARD-LOOKING STATEMENTS ARE REASONABLE, THERE CAN BE NO ASSURANCE THAT SUCH EXPECTATIONS WILL PROVE TO BE CORRECT. ELEMENT CANNOT GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS. MOREOVER, NEITHER ELEMENT NOR ANY OTHER PERSON ASSUMES RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF THE FORWARD-LOOKING STATEMENTS AND INFORMATION.

SOME OF THE RISKS AND OTHER FACTORS, SOME OF WHICH ARE BEYOND ELEMENT'S CONTROL, WHICH COULD CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE FORWARD-LOOKING STATEMENTS AND INFORMATION CONTAINED IN THIS MD&A, INCLUDE, BUT ARE NOT LIMITED TO, THOSE SET FORTH UNDER THE HEADING "RISK MANAGEMENT" HEREIN AND UNDER THE HEADING "RISK FACTORS" IN ELEMENT'S ANNUAL INFORMATION FORM FOR THE YEAR ENDED DECEMBER 31, 2023. READERS ARE CAUTIONED THAT SUCH RISK FACTORS ARE NOT EXHAUSTIVE. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS MD&A ARE EXPRESSLY QUALIFIED BY THIS CAUTIONARY STATEMENT. OTHER THAN AS SPECIFICALLY REQUIRED BY APPLICABLE CANADIAN LAW, ELEMENT UNDERTAKES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENT TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE ON WHICH SUCH STATEMENT IS MADE, OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR RESULTS, OR OTHERWISE.

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 3

Table of Contents

Selected Financial Highlights	5	Liquidity	21
		Cash flow	21
Company Overview	6	Leverage	22
		Credit and debt facilities	22
Strategic Initiatives Update	7	Capital Resources	26
		Capitalization	26
Effect of Foreign Currency Exchange	8	Normal Course Issuer Bids	28
		Credit Ratings	28
Global Balanced Scorecard	8	Risk Management & Risk Factors	29
Our Clients	9
Our Business	10	Economic Conditions & Outlook	30
Our People	11
Quarterly Results of Operations	13	Critical Accounting Policies & Estimates	33
Summary of Quarterly Information	17	Future Accounting Changes	34
Financial Position	18	Internal Control over Disclosure and	34
	Financial Reporting
Portfolio Details	19	IFRS to Non-GAAP Reconciliations	35
		Updated Share Information	43

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 4

Selected Financial Highlights

For the three-month period ended

(in US$000's except per share amounts unless	March 31,	December 31,	March 31,	Q1 2024	Q1 2024
otherwise noted)	2024	2023	2023	vs Q4 2023	vs Q1 2023
	US$	US$	US$	US$	US$
Reported results
Servicing income, net	147,053	129,657	115,482	17,396	31,571
Net financing revenue	107,178	102,211	98,225	4,967	8,953
Syndication revenue, net	8,226	13,261	10,945	(5,035)	(2,719)
Net revenue	262,457	245,129	224,652	17,328	37,805
Operating expenses	132,499	134,085	115,204	(1,586)	17,295
Operating income1	129,958	111,044	109,448	18,914	20,510
Operating margin2	49.5 %	45.3 %	48.7 %	4.2 %	0.8 %
Total expenses	139,478	141,716	122,719	(2,238)	16,759
Income before income taxes	122,979	103,413	101,933	19,566	21,046
Net Income	93,817	81,567	78,687	12,250	15,130
Earnings per share (EPS) - basic	0.23	0.20	0.19	0.03	0.04
Earnings per share (EPS) - diluted	0.23	0.19	0.18	0.04	0.05
Earnings per share (EPS) - basic [$CAD]	0.31	0.27	0.26	0.04	0.05
Earnings per share (EPS) - diluted [$CAD]	0.31	0.26	0.25	0.05	0.06
Adjusted results4
Adjusted net revenue	262,457	245,129	224,652	17,328	37,805
Adjusted operating expenses3	118,850	110,201	102,379	8,649	16,471
Adjusted operating income (AOI)1	143,607	134,928	122,273	8,679	21,334
Adjusted operating margin2	54.7 %	55.0 %	54.4 %	(0.3)%	0.3 %
Adjusted net income	108,423	99,806	93,539	8,617	14,884
Adjusted EPS [basic]	0.27	0.25	0.23	0.02	0.04
Adjusted EPS [diluted]	0.26	0.24	0.22	0.02	0.04
Adjusted EPS [basic] [$CAD]	0.36	0.33	0.31	0.03	0.05
Adjusted EPS [diluted] [$CAD]	0.35	0.33	0.30	0.02	0.05
Other highlights
Originations (excluding Armada)4	1,541,883	1,489,595	1,404,647	52,288	137,236
Vehicles under management (VUM)4 - end of period	1,490	1,485	1,541	5	(51)
Adjusted free cash flow per share4	0.35	0.29	0.28	0.06	0.07
Adjusted free cash flow per share [$CAD]	0.47	0.40	0.37	0.07	0.10
Weighted average common shares outstanding - basic	389,161	389,115	392,220	46	(3,059)
Weighted average common shares outstanding - diluted	404,118	404,068	408,966	50	(4,848)
Dividends declared per common share [$CAD]	0.12	0.12	0.10	-	0.02
Return on equity (ROE)	12.7 %	12.4 %	11.8 %	0.3 %	0.9 %

• Calculated as net revenue less operating expenses.

• Calculated as operating income divided by net revenue.

• Adjusted operating expenses are calculated as operating expenses less one-time strategic initiatives costs, share-based compensation

and amortization of convertible debenture discount.

• Considered to be a non-GAAP or supplemental financial measures, which do not have any standard meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "IFRS to Non-GAAP Reconciliations" section in this MD&A. The Company utilizes non-GAAP or supplemental financial measures, such as adjusted results, originations and VUM to assess its businesses and to measure performance. To arrive at adjusted results, the Company adjusts reported results for "adjusting items".

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 5

Company Overview

Element Fleet Management Corp. ("Element") is the largest publicly traded, pure-play automotive fleet manager in the world. We provide a full range of fleet services and solutions to a growing base of loyal, world- class clients - corporations, governments and not for profits - across North America, Australia and New Zealand.

Our services address every aspect of clients' fleet requirements, from vehicle acquisition, maintenance, accidents and remarketing, to integrating EV's and managing the complexity of gradual fleet electrification. Clients benefit from our expertise as one of the largest fleet solutions providers in our markets, offering economies of scale and insight used to reduce fleet operating costs, improve productivity of both vehicles and their drivers, and improve performance.

Element has 1.5 million vehicles under management (March, 31, 2024).

We utilize various revenue levers to deliver revenue growth. These include:

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 6

Strategic Initiatives Update

As previously disclosed, we plan to optimize our business further by centralizing accountability for our U.S. and Canadian leasing operations and establishing a strategic sourcing presence in Asia.

We continue to expect these initiatives to generate between $30 - $45 million (CAD $40 - $60 million) of run- rate net revenue, and between $22 - $37 million (CAD $30 - $50 million) of run-rate adjusted operating income ("AOI"), by full-year 2028. The above initiatives require approximately $22 million (total) (CAD $30 million) in non-recurring setup costs, of which $2.1 million were incurred in Q1 2024 (Q1 2023 - nil). In 2023, we incurred $13.7 million, in aggregate, in such costs. The remaining non-recurring setup costs of approximately $6.3 million are expected to be incurred in Q2 2024.

Additionally, we are prioritizing digitization and automation initiatives to enable future growth and drive operational efficiencies.

Centralizing accountability for U.S. and Canadian leasing

In late March 2024, we entered into a lease agreement with Union Investment and Hines for premier and LEED Platinum-certified office space in Dublin's city center. This transaction marks a significant milestone in the establishment of our new centralized leasing function in Ireland. This initiative remains on track to be operational by mid-2024.

Strategic sourcing

On April 24, 2024, we commenced operations in Singapore, marking a significant milestone in our ongoing strategic initiative to enhance our global procurement capabilities and strategic sourcing relationships in Asia. Concurrently, we entered into a collaboration agreement with BYD, the world's leading new energy vehicle manufacturer and power battery supplier.

This newly formed relationship with BYD reinforces a shared commitment to advancing sustainable, zero- emission solutions in the fleet management industry. Partnering with a global leader like BYD also underscores our commitment to innovation and sustainability in fleet management in Asia and across the world. It also complements our global alliance with Arval, further demonstrating our dedication to promoting decarbonization efforts worldwide.

We also welcomed Christine Lee Barber, Head of Asia Operations, to lead our operations in Singapore. She brings in-depth knowledge and expertise within the region, and will be accountable for strategic sourcing and relationship management in order to solidify and expand our relationships with Asian-based original equipment manufacturers (OEMs).

Digitization and automation

We continue to advance our digital and automation initiatives to elevate the client experience, improve operational efficiency, and deepen client relationships with a focus on growing capital-light service revenues. We strive to position ourselves as a leading industry player in supporting clients to navigate the rapidly evolving mobility and vehicle connectivity landscape efficiently.

We are modernizing our technology platform and business processes to accelerate innovation and deliver value for our clients. These forward-looking investments in Element's and our clients' future include transitioning towards more agile, scalable, and secure cloud-based solutions and creating a globally unified, digitally enabled technology platform that strives to further streamline operations. Investments in Ordering, Collateral Services, and Enterprise Resource Planning are being made to deliver superior client experiences and support when and where clients, drivers, partners, and employees need them most.

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 7

Effect of Foreign Currency Exchange Rate Changes

Effective this quarter, we transitioned all our financial reporting currency from the Canadian dollar to the U.S. dollar. The Company cautions readers that the transition to U.S. dollar reporting does not entirely eliminate foreign exchange fluctuations from its financial performance. We are exposed to fluctuations in certain foreign currencies from operations we conduct in Mexico, Australia, New Zealand, and Canada. We performed a foreign exchange sensitivity analysis to assess potential mitigating actions. Additionally, we institute certain designated hedges that further mitigate the effects of FX exposure on our financial performance. Notwithstanding, our assets, liabilities, and foreign operating results do fluctuate as a result of fluctuations in these currencies against the reporting currency, now being the U.S. dollar. Based on our analysis, a 1% of depreciation (appreciation) in the value of the U.S. dollar against all of the Mexican peso, Australian dollar, New Zealand dollar, and Canadian dollar simultaneously would be expected to increase (decrease) adjusted operating income by approximately $3.9 million, on an annualized basis.

Items impacting our Unaudited Interim Condensed Consolidated Statements of Operations are translated to U.S. Dollars using average exchange rates for the respective quarterly period. For items impacting our Unaudited Interim Condensed Consolidated Statements of Financial Position, period end rates are used for currency translation purposes.

Global Balanced Scorecard

We use a global balanced scorecard ("Global BSC") strategy and performance management system, which forges tight alignment and focus throughout the Company, resulting in the rapid advancement of our strategic objectives. The balanced scorecard frames Element in four dimensions, each representing one of our main pillars: our clients, business, employees, and investors.

We either achieved or outperformed on all of our Global BSC metrics in Q1 2024.

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 8

Global Balanced Scorecard

Our Clients

Earning our clients' loyalty

Elevating the client and driver experience remains a strategic focus for us. One of the key indicators of our success in delivering an exceptional client experience is our Net Promoter Score (NPS).

Our global NPS rose to a record level of 48 at the end of Q1 2024; up from 41 at the end of 2023. This increase can be attributed in part to a methodology adjustment made this quarter, where we began to assign equal weight to all client responses, previously revenue-weighted (under previous methodology, NPS was 45 at the end of 2023). NPS scores rose in all regions, highlighting the consistency of the elevated client experience.

This quarter also saw record levels of client engagement. Client feedback regarding the ease of doing business with us remains very positive, validating our ability to continuously deliver the right outcomes for our clients as their priorities evolve.

Creating compelling value for our clients

Our global Strategic Advisory Services (SAS) team is committed to delivering substantial value to our clients. It does this by proactively identifying the unique challenges and opportunities within each clients' fleet and responding with solutions and strategies tailored to their specific needs. As trusted advisors, the SAS team (i) has long-term engagement with clients, (ii) provides comprehensive guidance that allows clients to anticipate uncertainties and risks, and (iii) provides recommendations based on specialized knowledge and years of expertise.

In Q1 2024, our SAS team, in collaboration with our global alliance partner Arval, launched the Global Fleet Barometer. The Global Fleet Barometer provides a comprehensive view of the evolving fleet landscape across 30 countries, serving as a valuable benchmark for organizations looking to make strategic and informed decisions. Additionally, it highlights industry trends, helping position us as strategic advisors to our clients. Our SAS team also continues to invest a substantial amount of time advising our clients on the EV landscape and providing guidance on approaches to transitioning from internal combustion engine (ICE) - powered vehicles to EVs.

In Q1 2024, our SAS team identified and shared with clients over $332 million of fleet-operating-cost savings opportunities, of which approximately $28 million in value were "actioned" by clients.

Enabling client fleet electrification

Our clients continue to leverage Arc by Element, our end-to-end electric vehicle fleet solution. In Q1 2024, we added multiple depot and home charging engagements to the pipeline of in-flight pilots and client engagements. We also recently completed a pilot for new payment capabilities for public charging, which we intend to roll out later in 2024. This will provide clients with broader access to public charging networks in Canada and the US. We expect the continued focus on decarbonization to expand the level of client engagement on fleet electrification in 2024.

To further enhance the scale of our solutions and integrate with our core systems, we also completed multiple rounds of technology upgrades. These enhancements are designed to more fully incorporate electric vehicles (EVs) and charging stations into both our internal systems and driver and client facing applications. These capabilities will be rolled out over the course of 2024, ensuring that our clients and internal teams have comprehensive access to the insights available from EVs and charging infrastructure. To elevate the advisory support we provide for clients, we have also developed new training modules aimed at supporting change management with our clients and drivers. These training modules also support continuous education for our internal Element team.

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 9

Global Balanced Scorecard

Our Business

Consistently meeting service commitments

In Q1 2024, our maintenance team continued to drive savings per transaction for our clients. This achievement reflects our team's strategic approach to managing repair orders, utilizing expertise and tools to drive down our clients' total cost of fleet operations.

Our dedication to safety and efficiency is reflected in this quarter's rollout of an online EV driver training series. Designed for both new and experienced EV drivers, the program aims to improve safety and vehicle performance, covering topics like driving dynamics, range planning, and battery optimization. This initiative further reinforces our commitment to supporting our clients' fleet electrification goals.

Continuously improving the way we work

Our rebranded Continuous Improvement and Automation team (previously Continuous Improvement Group) remains committed to driving innovation, process optimization and automation. To achieve its goals, the team leverages the latest technological advancements, including Artificial Intelligence and Machine Learning tools.

The introduction of new automation solutions has saved more than 31,000 employee hours in Q1 2024. The implementation of our automation solutions has significantly boosted operational efficiency, elevating both employee and client experiences. By automating routine tasks, our teams can concentrate on strategic and client-centric activities.

Prudently managing our risks

Our Enterprise Risk Council (the "Council") is a cross-functional group led by our Chief Financial Officer. Risk owners from across Element regularly update the Council on their risks, the steps to mitigate these risks, and any potential emerging trends. In 2024, we are committed to updating our risk universe to reflect the current landscape, further embedding a culture of risk awareness throughout our organization. We will review our inventory of compliance risks, ensuring ownership is attributed to individuals responsible for daily operations, rather than defaulting to executive-level appointments for all areas. This approach not only enhances accountability but also aligns with our dedication to precision and clarity in managing our risk profile.

During Q1 2024, we updated our Enterprise Composite Risk Index (ECRI) to reflect the current environment, which evaluates risks impacting revenue, credit and collections, operations, treasury, information technology and people. The ECRI remains aligned with our Risk Appetite Statements, providing clear metrics and thresholds for effective risk management.

Sustainability: Fostering positive environmental and social outcomes and maintaining goodgovernance

In Q1 2024, we advanced on our commitment to sustainable, ethical, and transparent practices. We deepened our commitment to long-term sustainable actions to reduce emissions with our commitment to the Science-based targets initiative (SBTi). This marks an important step toward setting science-based emissions reduction targets across our facilities, business operations, and supply chain.

Further accomplishments in Q1 2024 include:

• We achieved a B score on the CDP Climate Change questionnaire, which is higher than the North American regional average. Our CDP score acknowledges that we are taking action on climate issues.
• In Maryland, we moved into a modern, energy efficient office. Our Owings Mills office is LEED for Interior Design and Construction (LEED IC+C) Gold Certified ensuring better air quality, energy and water efficiency. We purchased 2,595 MWh of Green-e Certified Renewable Energy Credits (RECs)

March 31, 2024

| Element Fleet Management Corp.

Management's Discussion and Analysis | 10