Element Fleet Management : Q3 2022 - Investor Presentation

Q3 2022 Results

Investor Presentation

Forward-looking statements and disclaimer

This presentation contains certain forward-looking statements and forward-looking information regarding Element Fleet Management Corp. ("Element") and its business which are based upon Element's current expectations, estimates, projections, assumptions and beliefs. In some cases, words such as "plan", "expect", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "target", "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. 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.

Forward-looking statements and information in this presentation may include, but are not limited to, statements with respect to, among other things, the impact that the COVID-19 pandemic may have on Element's financial condition, operating results and cash flows; the impact that manufacturers' production delays will have on Element's business; the objectives, vision and strategies of Element; the future financial reporting of Element; future cash flows, financial condition, financial performance, operating performance, financial ratios, projected asset base, capital structure and capital expenditures; Element's after-tax adjusted operating income per share and free cash flow per share; Element's expectations regarding revenue growth; Element's EV strategy and capabilities; global EV adoption rates; Element's anticipated dividend policy and plans for future dividends; Element's ability to deliver returns and benefits from its initiatives; client acquisition, retention and experience; relationships with suppliers; anticipated cash needs, capital requirements, need for and cost of additional financing and ability to access such financing; future assets; demand for services; Element's competitive position; anticipated trends and challenges in Element's business and the markets in which it operates; Element's ability to generate pre-taxrun-rate operating income; expectations regarding syndication; Element's ability to increase total shareholder return; Element's ability to pre-fund redemption of its outstanding convertible debentures upon their maturity; Element's ability to redeems its preferred shares; Element's dividend policy and the payment of future dividends; Element's proposed share purchases, including the number of common shares to be repurchased, the timing thereof and TSX acceptance of the normal course issuer bid and any renewal thereof; and expectations regarding credit ratings.

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 predictions, forecasts, projections and other forward-looking statements will not occur. Such forward-looking statements and information in this presentation speak only as of the date on the front of this presentation. The forward-looking information and statements contained in this presentation 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; acceptable negotiations with third parties; the general continuance of current or, where applicable, assumed industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax and regulatory regimes; 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; Element's net interest margin; expectations regarding syndication; growth in lease receivables and service income; assumed rate of cost inflation; assumed applicable foreign exchange rates and applicable income tax rates; Element's funding mix; terms of new instruments issued to refinance Element's 2024 convertible debentures; the reset rates for Element's outstanding preferred shares; the extent of its assets and liabilities; and the impact of vehicle manufactures' ability to deliver vehicles. 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.

The forward-looking events and circumstances discussed in this presentation may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Element, including risks regarding the fleet management and finance industries, economic factors, risks related to the addition of new clients, risks related to the payment of dividends, risks relating to business integration and many other factors beyond the control of Element. The COVID-19 pandemic has cast additional uncertainty on Element's expectations, estimates, projections, assumptions and beliefs. The duration, extent and severity of the impact the COVID-19 pandemic, including measures to prevent its spread, will have on Element's business remains uncertain and difficult to predict at this time. No forward-looking statement can be guaranteed and Element cannot guarantee future results, levels of activity, performance or achievements. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks applicable to Element can be found in Element's most recent Management Discussion and Analysis document as well as the most recent such document in respect of a full calendar year, and Element's Annual Information Form, each of which have been or will be filed on SEDAR and can be accessed at www.sedar.com. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element disclaims any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

An investment in the securities of Element involves significant risks. A discussion of some of the material risks affecting Element and its business appears under the heading "Risk Factors" in Element's Annual Information Form dated on March 1, 2022, and under the headings "Risk Management" and "Critical Accounting Policies and Estimates" in Element's Management Discussion and Analysis for the three- and nine-month periods ended September 30, 2022, all of which have or will have been filed on SEDAR and can be accessed at Element's profile on www.sedar.com. Prospective investors should carefully consider the risks associated with an investment in the securities of Element before deciding to purchase any such securities.

Unless the context otherwise requires, references to "$" are to Canadian dollars. Non-GAAP Measures

In this presentation, management presents measures that do not have a standardized meaning under IFRS and may not be comparable to similarly-named or any other non-GAAP measures presented by other organizations. Descriptions of the non-GAAP measures presented in this document can be found in Element's Management Discussion & Analysis that accompanies the financial statements for the most recent quarter or year, which have been filed on SEDAR (www.sedar.com).

1

Overview

The largest pure-play automotive fleet manager in the world, Element (TSX: EFN) is a global B2B and B2G services company

$1.33

Free Cash Flow

per Share1

54.9%

Operating

Margin1

17.8%

Return on

Equity2

• Market leader in North America and Australia / New Zealand
• Resilient recurring revenues from a growing base of loyal, blue-chip clients across 700+ industries and 5 countries
• Industry-leadingscalable operating platform with minimal capex requirements
• Ample free cash flow being returned to shareholders by way of ongoing share buybacks and growing common dividends
• Transparent, accountable, proven management team with track record of creating value for shareholders
• Attractive industry dynamics including high barriers to entry

1.	Last twelve months as of September 30, 2022	2
2.	Pre-tax return on common equity as of September 30, 2022.

Overview

Our resilient, growing business consistently delivers strong free cash flow and financial performance throughout economic cycles

1	Essential business	• Fleet vehicles are essential for our clients to sustain revenues and/or meet
services provider	stakeholder needs, ensuring continuity of demand for, and utilization of, our services
2	Compelling	• We leverage our scale - purchasing power & data - to reduce the total cost of fleet
value proposition	operations for our clients, who outsource management of their vehicles to Element,
thereby eliminating in-house administrative burden
	3	Organic revenue	• 55-65% of our addressable market is unserved, meaning prospective clients currently
growth runway	self-manage their fleets and have never experienced the cost-saving and productivity-
enhancing benefits of outsourced fleet management
	4	High	• Outsourced business services are virtually never repatriated. The nature of our
client retention	relationships with our clients translate into high switching costs and thus, very low
client turnover: we are approaching 99% annual client revenue retention globally
5	Widely distributed	• Our company serves thousands of clients in over 700 industries, with operations
client base	across five sizable geographies - mitigating risks of exposure to sectoral and
regional business cycles
6	Scalable	• Our transformed, industry-leading service platform underpins >50% operating margins
operating platform	that magnify net revenue growth into superior operating income growth
7	Capital-lighter	• Our capital-lighter business model leverages services revenue growth and fleet asset
business model	syndication to enhance returns on equity
8	Excess	• The tax attributes of automotive assets drastically reduce our cash tax burden.
free cash flow	Combined with minimal capex required to sustain our operations, Element's free cash
flow per share consistently exceeds our reported earnings per share

3

Guidance

Strong performance in 2022

is expected to continue and improve in 2023

The continued advancement of our three strategic growth priorities coupled with favourable tailwinds (including the waning impact of the pandemic, the gradual increase in OEM deliveries, and inflation) are fueling strong performance in 2022, which is expected to continue and improve in 2023.

Augmenting our strong, sustainable organic growth this year are net revenues (totaling ~$25 million) that we do not expect to generate in future years. There was ~$17 of such revenue in the third quarter, $8 million in the second quarter, none in the first quarter, and we do not expect any in the fourth quarter. Our 2022 "organic" results exclude this $25 million.

Full-year 2022 expected reported results	Full-year 2022 expected "organic" results
• $1,080-1,100 million net revenue = 10-12%year-over-year growth	• $1,055-1,075 million net revenue = 7.5-9.5%year-over-year growth
• 54-55% operating margin	• 53-54% operating margin
• $580-600 million adj. operating income = 13-17%year-over-year growth	• $555-575 million adj. operating income = 8-12%year-over-year growth
• $1.03-1.07 adjusted EPS1 = 22-27%year-over-year growth	• $0.98-1.03 adjusted EPS1 = 17-22%year-over-year growth
• $1.27-1.32 FCF per share1 = 21-26%year-over-year growth	• $1.20-1.25 FCF per share1 = 15-20%year-over-year growth

Full-year 2023 results guidance2,3

• $1,140-1,170million net revenue = 6-9%year-over-year growth
• 54-55%operating margin
• $615-645million adj. operating income = 7-12%year-over-year growth
• $1.12-1.17Adjusted EPS1 = 9-14%year-over-year growth
• $1.45-1.50FCF per share1 = 16-20%year-over-year growth
• $7.5-8.0billion originations = 25-35%year-over-year growth
• $4.0-4.5billion syndication volume = 35-50%year-over-year growth

1. Adjusted EPS and FCF per share guidance is based on a 390-400 million weighted average common share count for full-year 2022, and 385-395 for full-year 2023.

2.	Based on a CAD:USD exchange rate of 1.29:1.	4
3.	2023 year-over-year growth rates are implied based on our expectation of full-year 2022 "organic" performance at or near the top-end of our 2022 expected

"organic" results ranges.