Slide 1: 3Q Earnings Release Supplement
3Q Earnings Release Supplement 2023 Refer to earnings release dated November 8, 2023 for further information
Slide 2: 3Q Safe Harbor Provision
3Q Safe Harbor Provision 2023 This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about FLEETCOR’s beliefs, assumptions, expectations and future performance, are forward-looking statem
Slide 3: 3Q Agenda
3Q Agenda 2023 3Q 2023 Results 4Q 2023 Guidance 2024 Setup Strategic Review Update Fleet Transformation Strategy Appendix
Slide 4: 3Q 2023 Results
3Q 2023 3Q 2023 Results
Slide 5: Our Take on the Quarter
3Q Our Take on the Quarter 2023 3Q results driven by Results demonstrate strength of diversified business: • Revenues up 9% YOY, to $971 million solid revenue and sales growth • EBITDA growth of 13%, to $529 million Up 16% at constant • Adjusted EPS of $4.49, up 6% YOY interest rates Fundamental tre
Slide 6: Revenue and Cash EPS Bridge vs Prior Year
1Q 3Q Revenue and Cash EPS Bridge vs Prior Year 2022 2023 $93 $22 $971 $893 $(20) $(17) 2019 Revenue +9% (in millions) YoY 3Q22 Core Change Macro 2 Acquisitions Divestiture 3Q23 $0.90 $0.10 $(0.06) $0.02 $0.01 $4.49 $4.24 $(0.44) $(0.28) Adjusted Net +6% Income Per Share1 YoY 4 5 3Q22 Core 3 Divesti
Slide 7: 3Q23 Guidance Proforma vs Actuals
1Q 3Q 3Q23 Guidance Proforma vs Actuals 2022 2023 Bridging from our August 2023 guidance...a divestiture, an acquisition and negative Q3 macro resulted in updated proforma Q3 guidance Q3 Actual $990 2019 $2 $971 $(12) $(8) $963 $(9) Proforma Guidance 3Q 23 Revenue (in millions) Q3 Guidance Russia Pb
Slide 8: Organic Revenue Growth
3Q 1Q Organic Revenue Growth1,2 2023 ($ in millions) FLEET CORPORATE PAYMENTS $381 $397 $257 $214 4% 20% +19% +32% +32% 3Q22 3Q23 3Q22 3Q23 Total BRAZIL 10% LODGING $141 $126 $129 $109 16% +9% 10% +39% 3Q22 3Q23 3Q22 3Q23 1. Non-GAAP financial measures. See appendix for reconciliation of non-GAAP me
Slide 9: Organic Revenue Growth Trends
1Q 3Q Organic Revenue Growth Trends1 2022 2023 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Fleet2 13% 5% 4% 2% 3% 6% 4% Corporate Payments 19% 18% 21% 20% 19% 22% 20% Brazil 20% 21% 15% 6% 18% 15% 16% Lodging 22% 41% 28% 14% 26% 14% 10% Other3 1% 44% 6% (8)% 2% (14)% 6% Total Organic Growth 15% 17% 13% 7% 12
Slide 10: Continued High Retention
1Q 3Q Continued High Retention* 2022 2023 Retention remains strong 92.9% 92.1% 91.2% 91.2% 91.2% 3Q22 4Q22 1Q23 2Q23 3Q23 *Based on volume relevant to business or product (e.g., gallons, spend, etc.) weighted by revenue; excludes European Private Label businesses, where FLEETCOR is a processor inste
Slide 11: Sales Performance Trends
1Q 3Q Sales Performance Trends* 2022 2023 Sales vs. Prior Year Strong new sales drive revenue growth 131% 124% 119% 120% 117% 3Q22 4Q22 1Q23 2Q23 3Q23 *Calculated based on estimated annualized revenue from new sales in the quarter sold, excludes divestitures FLEETCOR | 11
Slide 12: Balance Sheet Structured for Flexibility and Capacity
1Q 3Q Balance Sheet Structured for Flexibility and Capacity 2022 2023 Robust cash flow and opportunistic capital allocation Leverage Ratio (X) • Reported $529 million of EBITDA1 2.80 2.66 • Generated $335 million of free cash flow1,2 • Repurchased ~2 million shares for $530 million, including $450 m
Slide 13: 4Q 2023 Guidance
3Q 2023 4Q 2023 Guidance
Slide 14: 4Q Proforma Guidance
1Q 3Q 4Q 23 Proforma Guidance 2022 2023 Bridging implied 4Q guidance provided in August to the current environment, reflecting changes in scope and macro, results in a net headwind of $40 million revenue and $0.35 Cash EPS Q4 Guidance $1,008 2019 $10 $(30) $1 $968 $968 $(21) 4Q 23 Proforma Guidance
Slide 15: Revised Full Year Guidance
3Q 1Q Revised Full Year Guidance ($ in millions, except for per share data; growth at the midpoint) 2023 Our revised guidance adjusts for the impact of our Russia disposition, PayByPhone acquisition and macro 2H Impact of August Proforma August Updated Scope & Macro Guidance1 Guidance Guidance1 Chan
Slide 16: Q3 & Q4 Year-over-Year Growth
3Q 1Q Q3 & Q4 Year-over-Year Growth 2023 Accelerating growth in the second half of 2023 provides strong momentum into 2024 +9% +10% Q3 YoY Q4 YoY $971 $968 $893 $884 Revenue (in millions) 1 3Q22 3Q23 4Q22 4Q23G +6% +11% Q3 YoY Q4 YoY $4.49 $4.49 $4.24 $4.04 Cash EPS2 1 3Q22 3Q23 4Q22 4Q23G 1. Growth
Slide 17: 2024 Setup
3Q 2023 2024 Setup
Slide 18: 2024 Setup
3Q 2024 Setup 2023 Our 2024 preliminary setup is encouraging • Outlooking the macro environment neutral to slightly positive in 2024 • Expecting 9%-11% organic revenue growth1 • Lower bad debt • Profit drivers below EBITDA look neutral to positive: ◦ Lower interest expense ◦ Stable tax rate ◦ Share
Slide 19: Strategic Review Update
3Q 2023 Strategic Review Update
Slide 20: Strategic Review Objectives
3Q Strategic Review Objectives 2023 The goal of our strategic review is two-fold: to simplify the company and to evaluate separation options Simplification Plans Separation Alternatives • Exit non-core businesses • Pure "Sum of the Parts" spin ◦ Russia • Sale of a segment ◦ Prepaid • Merge with Stra
Slide 21: Strategic Review Progress Report
3Q Strategic Review Progress Report 2023 Made significant progress over the last 6 months...however, a narrow set of separation alternatives remain under review Simplification Outcomes Separation Status • Sold Russia mid-August, used proceeds • Pure SOTP spin - Not pursuing for ASR ◦ Insufficient va
Slide 22: Fleet Transformation Strategy
3Q 2023 Fleet Transformation Strategy
Slide 23: Fleet Transformation Strategy
3Q Fleet Transformation Strategy 2023 Our Fleet transformation strategy centers around 3 big ideas... 1 Corporate Fleet + Payments Couple our fleet products with our corporate payments solutions to attract new prospects 2 EV Help clients manage ICE or EV commercial vehicles and maintain our existing
Slide 24: New Fleet Products: Business Card + Fuel Card in One
3Q New Fleet Products … Business Card + Fuel Card in One 2023 2 in 1 fuel card + business card specifically for lower middle market “field-based businesses” Corpay One … Fuel + Business Expense Card Fuel Card Business Card One Account The Modern Business Card program for field-based businesses. Incl
Slide 25: 3-in-1 EV Solution Chargepass
3Q 3-in-1 EV Solution 2023 We’ve launched Chargepass, our UK-leading 3 in 1 commercial fleet solution, helping clients manage their fleets during the energy transition, regardless of the type of commercial vehicles in their fleet Chargepass® Fuel On Road At Home Purchases EV Charging EV Charging 20,
Slide 26: UK EV Economics
3Q UK EV Economics 2023 FLEETCOR continues to observe higher levels of EV revenue per vehicle from UK B2B customers with both ICE and EV solutions UK EV Economics* Revenue £ thousands Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 EV 25 41 54 73 100 132 180 267 339 432 525 ICE 457
Slide 27: Fleetcor's New Consumer Vehicle Payments Business
3Q Fleetcor's New Consumer Vehicle Payments Business 2023 We have a 4-pronged approach to create a big Consumer Vehicle Payments business Base 1 Start with a big consumer user base (MAU) with an “anchor” service … eg, like digital parking) One Account 2 Add applications (eg, insurance) over time to
Slide 28: Proof Point: Brazil
3Q Proof Point … Brazil 2023 Our Brazil business is a case study of our consumer vision - we started solely as a toll payments business and have since successfully transformed it into a broader ‘vehicle payments’ business Expanded Network: Vehicle Payment Solutions Fuel Parking Approximately 60% use
Slide 29: Vehicle Payments Revenue Opportunity
3Q Vehicle Payments Revenue Opportunity 2023 We aspire to accelerate Vehicle Payments revenue into the low “double digits” annually … creating a $1B Consumer Vehicle Payments business over the mid-term Vehicle Payments Opportunity Opportunity USDm 2023 E 2027 E Growth CAGR '% B2B 1. Fleet $1,300 $1,
Slide 30: Appendix: About Non-GAAP Financial Measures
1Q 3Q Appendix 2022 2023 About Non-GAAP Financial Measures This presentation includes certain measures described below that are non-GAAP financial measures. Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash share based compensation expense related to share based com
Slide 31: Digital Parking Acquisition
3Q Digital Parking Acquisition 2023 We have acquired PayByPhone, the #2 global digital parking provider. It provides a foundation to build our consumer business … and a way to accelerate EV penetration Acquisition Thesis Attractive core business with favorable tailwinds Industry riding digital trans
Slide 32: Reconciliation of Net Income to Adjusted Net Income
1Q 3Q Reconciliation of Net Income to Adjusted Net Income* 2022 2023 ($ in millions, except per share amounts) Three Months Ended September 30, 2023 2022 Net income $271 $249 Stock based compensation 29 34 Amortization1 58 56 Integration and deal related costs 9 5 Legal settlements/litigation 1 3 Re
Slide 33: Reconciliation of Net Income to EBITDA
1Q 3Q Reconciliation of Net Income to EBITDA* 2022 2023 ($ in millions) Three Months Ended September 30, 2023 2022 Net income $271 $249 Provision for income taxes 99 91 Interest expense, net 88 45 Other (income) expense (13) 4 Depreciation and amortization 85 77 Other operating, net (1) — EBITDA $52
Slide 34: Calculation of Organic Growth
1Q 3Q Calculation of Organic Growth* 2022 2023 ($ in millions) 1Q23 ORGANIC GROWTH 2Q23 ORGANIC GROWTH 3Q23 ORGANIC GROWTH 2023 2022 Pro 2023 2022 Pro 2023 2022 Pro SEGMENT Macro Adj3 forma2 % Macro Adj3 forma2 % Macro Adj3 forma2 % Fleet $365 $353 3% $400 $379 6% $397 $381 4% Corporate Payments 235
Slide 35: Calculation of Organic Growth
1Q 3Q Calculation of Organic Growth* 2022 2023 ($ in millions) 1Q22 ORGANIC GROWTH 2Q22 ORGANIC GROWTH 3Q22 ORGANIC GROWTH 4Q22 ORGANIC GROWTH 2022 2021 Pro 2022 2021 Pro 2022 2021 Pro 2022 2021 Pro SEGMENT Macro Adj3 forma2 % Macro Adj3 forma2 % Macro Adj3 forma2 % Macro Adj3 forma2 % Fleet $333 $2
Slide 36: Calculation of Organic Growth - Excluding Russia
1Q 3Q Calculation of Organic Growth*- Excluding Russia 2022 2023 ($ in millions) 1Q23 ORGANIC GROWTH 2Q23 ORGANIC GROWTH 3Q23 ORGANIC GROWTH 2023 2022 Pro 2023 2022 Pro 2023 2022 Pro SEGMENT Macro Adj2 forma1 % Macro Adj2 forma1 % Macro Adj2 forma1 % Fleet $339 $334 2% $362 $351 3% $376 $364 3% Cons
Slide 37: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2023
1Q 3Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2023 2022 2023 ($ in millions) 2023 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 3Q23 2Q23 1Q23 3Q22 2Q22 1Q22 FLEET Pro forma and macro adjusted $ 397 $ 400 $ 365 $ 381 $ 379 $ 353 Impact of acquisitions/dispositions — — — 14 (2) (
Slide 38: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2023
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2023 2023 2022 (continued, in millions) 2023 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 3Q23 2Q23 1Q23 3Q22 2Q22 1Q22 3 OTHER Pro forma and macro adjusted $ 71 $ 56 $ 58 $ 66 $ 66 $ 57 Impact of acquisitions/dispositions — — — — —
Slide 39: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2022
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2022 2023 2022 ($ in millions) 2022 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 FLEET Pro forma and macro adjusted $ 357 $ 358 $ 351 $ 333 $ 351 $ 343 $ 333 $ 295 Impact of acquisitions/dispo
Slide 40: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2022
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2022 2023 2022 (continued, in millions) 2022 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 3 OTHER Pro forma and macro adjusted $ 64 $ 68 $ 66 $ 57 $ 70 $ 63 $ 46 $ 56 Impact of acquisitions/di
Slide 41: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2021
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2021 2023 2022 ($ in millions) 2022 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 FLEET Pro forma and macro adjusted $ 323 $ 324 $ 334 $ 305 $ 295 $ 294 $ 278 $ 328 Impact of acquisitions/dispo
Slide 42: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2021
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2021 2023 2022 (continued, in millions) 2022 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 3 OTHER Pro forma and macro adjusted $ 70 $ 63 $ 46 $ 56 $ 61 $ 53 $ 39 $ 58 Impact of acquisitions/di
Slide 43: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2022 Excluding Russia
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2023 2022 Excluding Russia3 (continued, in millions) 2023 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 3Q23 2Q23 1Q23 3Q22 2Q22 1Q22 FLEET Pro forma and macro adjusted $ 376 $ 362 $ 339 $ 364 $ 351 $ 334 Impact of acquisitions/dispo
Slide 44: Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2022 Excluding Russia
3Q 1Q Reconciliation of Non-GAAP to GAAP Revenue by Segment - 2023 2022 Excluding Russia3 (continued, in millions) 2022 Organic Revenue Growth* Macro Adjusted1 Pro Forma2 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 FLEET Pro forma and macro adjusted $ 329 $ 332 $ 328 $ 313 $ 328 $ 322 $ 314 $ 278 Impact
Slide 45: Reconciliation of Non-GAAP Guidance Measures
3Q 1Q Reconciliation of Non-GAAP Guidance Measures 2023 2022 (in millions, except per share amounts) 4Q 2023 GUIDANCE Low* High* Net income $ 251 $ 275 Net income per diluted share $ 3.42 $ 3.72 Stock based compensation 29 29 Amortization 59 59 Other 5 5 Total pre-tax adjustments 93 93 Income taxes
Slide 46: Guidance Assumptions
3Q 1Q Guidance Assumptions 2023 2022 ASSUMPTIONS FOR 2023 For the Fourth Quarter ◦ Weighted average U.S. fuel prices of $3.96 per gallon ◦ Market spreads unfavorable to the fourth quarter of 2022 ◦ Foreign exchange rates equal to the monthly average for October 2023 ◦ Fourth quarter revenues of $953