Element Fleet Management Corporation · TSX:EFN
Element Fleet Management — Q4 2024 Earnings Presentation
24 slides from Element Fleet Management's earnings presentation, Feb 27, 2025
Slide 1: Full-Year & Q4 2024 Investor Presentation
Full-Year & Q4 2024 Investor Presentation Element Fleet Management (TSX: EFN)
Slide 2: Contents
• Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Slide 4 • Full-Year & Q4 2024 results . . . . . . . . . . . . . Slide 6 • Full-year 2024 actuals vs. guidance • Full-Year 2024 Highlights • Q4 Highlights Contents • Financial performance . . . . . . . . . . . . . . . . .
Slide 3: Forward-looking statements and disclaimer
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 b
Slide 4: Overview: Delivering for clients & shareholders
Overview: Delivering for clients & shareholders 2024 • Driven by our Purpose to Move the world through intelligent mobility, we delivered record results in 2024, within or above our 2024 guidance on all key metrics, except for originations • A commitment to enhancing the client experience and drivin
Slide 5: Overview: Well-positioned for 2025 and beyond
Overview: Well-positioned for 2025 and beyond 2025 • With strong business momentum, a resilient business model, and the benefits from investments made in 2024, Element is well-positioned to continue creating value for shareholders in 2025 and beyond • Reaffirming 2025 guidance for net revenue growth
Slide 6: Full-Year & Q4 2024 Results
Q O), OGelement Full-Year & Q4 2024 Results
Slide 7: Achieved 2024 guidance targets, except for originations
Achieved 2024 guidance targets, except for originations Key metrics FY 2024 Results1 FY 2024 Guidance Achieved $ USD million, except per share Net revenue $1,088 $1,060 – 1,080 Adjusted Operating margin2 55.3% 55.0% - 55.5% Adjusted operating income $601 $575 - 595 Adjusted EPS [basic] $1.12 $
Slide 8: 2024 Financial Highlights
Net revenue 2024 Financial Highlights $1B +13% Y/Y ($US millions) Services revenue Record results across key $596M +18% Y/Y metrics; building on our Adj. operating income1 commercial momentum $601M +13% Y/Y Services revenue grew 18% Adj. operating margin1 year-over-year driven largely by higher pene
Slide 9: Q4 2024 Financial Highlights
Net revenue Q4 2024 Financial Highlights $271M (3)% Q/Q +11% Y/Y ($US millions) Services revenue $161M +10% Q/Q +25% Y/Y Adj. operating income1 Double-digit year-over-year revenue growth $143M (11)% Q/Q +6% Y/Y Adj. operating margin1 Driven by 25% services revenue growth year-over- 52.9% (480)bps Q/
Slide 10: 2024 key financial metrics
2024 key financial metrics (US$millions, except per share) Adjusted1 Reported Key Metrics 2024 YoY 2024 YoY Services revenue $596 18% $596 18% Net financing revenue $449 9% $449 9% Syndication revenue $43 (6%) $43 (6%) Net revenue $1,088 13% $1,088 13% Operating expenses $486 13% $545 13% Operating
Slide 11: Q4 key financial metrics
Q4 key financial metrics (US$millions, except per share) Adjusted1 Reported Key Metrics Q4 2024 QoQ YoY Q4 2024 QoQ YoY Services revenue $161 10% 25% $162 10% 25% Net financing revenue $103 (11%) 1% $103 (11%) 1% Syndication revenue $6 (64%) (55%) $6 (64%) (55%) Net revenue $271 (3%) 11% $271 (3%) 1
Slide 12: Financial Performance
Q O), OGelement Financial Performance
Slide 13: Drivers of record net revenue in 2024
Drivers of record net revenue in 2024 • 2024 net revenue increased 13% percent year-over- year, led by the following factors: Net revenue and adjusted operating margin • Services revenue growth of 18% year-over-year; and Syndication revenue Services revenue net financing revenue growth of 9% year-ov
Slide 14: Double-digit services revenue growth
Double-digit services revenue growth Driven largely by: Q4 2023 to Q4 2024 services revenue • Higher penetration rates among existing clients • Higher utilization from new and existing clients 6.0 161.5 • Increased in-network volumes 170 160 11.3 0.5 150 14.0 129.7 140 US$M Progress on opportunities
Slide 15: Growing core VUM and service attachment rates
Growing core VUM and service attachment rates Multi-service VUM 4Q23 Single-service VUM 4Q24 • Growing Core VUM; up 4% in 2024, resulting from the addition of new clients from both earning share and converting self-managed fleets; and 77% 79% • Onboarding clients at a higher-than- average service of
Slide 16: Net financing revenue (NFR)
Net financing revenue (NFR) Q4 2023 to Q4 2024 NFR • Year-over-year increase in NFR in 2024 was 115 1% largely due to higher net earning assets 4.0 110 associated with higher originations across all 3.5 103.5 geographies 105 102.2 US$M (5.1) 100 (1.1) • This increase was partly offset by higher fund
Slide 17: Originations
Originations • 2024 originations grew 6% year-over-year, but were below 2024 guidance largely due to OEM ordering Originations (in millions) window delays during summer months and ongoing controlled allocations on key client models U.S. and Canada Mexico Australia and New Zealand 1,976 $2,000 • Clie
Slide 18: Syndication revenue
Syndication revenue $20 Syndication revenue (in millions) 17 • Syndicated $3.5 billion of assets in 2024; an increase of 40% 13 12 from 2023 $10 8 6 • Despite higher volumes, net revenue and yields in both 2024 and Q4 2024 were negatively impacted by: $0 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 The bulk synd
Slide 19: Adjusted operating expenses
Adjusted operating expenses Quarterly Adjusted Operating Expenses • Strong performance in 2024 allowed for & Adjusted Operating Margin acceleration of strategic investments to position us 150 118.9 121.7 118.2 127.5 60.0% 110.2 for sustained leadership and future success 100 55.0% • Pursuing these i
Slide 20: Low Risk & Resilient Business Model
Low Risk & Resilient Business Model
Slide 21: Low risk and resilient business
Low risk and resilient business The vast majority of our total debt is funding high-quality lease receivables, with historically low credit losses. In Q4 2024, our banking covenants changed from tangible leverage ratio (TLR) to debt-to-capital, a more meaningful measure of the Company’s leverage. ~1
Slide 22: Reaffirming 2025 Guidance
Q O), OGelement Reaffirming 2025 Guidance
Slide 23: 2025 Guidance
2025 Guidance1 • New client growth expected, including the continued (US$, except per Full-year 2025 Full-year 2025 conversion of self-managed fleets, and resilient share) guidance guidance client demand for our services & solutions to Net revenue 6.5 – 8.5% underpin full-year net revenue growth bet
Slide 24: Thank-you
Q O), OGelement Thank-you
Element Fleet Management — Q4 2024 Earnings Presentation on 6ix