Slide 1: Q1 2025 Investor Presentation
Q1 2025 Investor Presentation Element Fleet Management (TSX: EFN)
Slide 2: Contents
• Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Slide 4 • Q1 2025 results . . . . . . . . . . . . . . . . . . . . . . . . . . . . Slide 5 • Q1 Highlights • Financial performance . . . . . . . . . . . . . . . . . . Slide 8 Contents • Services revenue • VUM & service at
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: Continued growth momentum underpinned by the resilience of our business
Continued growth momentum underpinned by the resilience of our business • Strong Q1 2025 results highlight the robustness of our business model, as well as our financial and operational resilience, allowing us to effectively manage global trade challenges while supporting clients and driving results
Slide 5: Q1 2025 Results
Q O), OGelement Q1 2025 Results
Slide 6: Q1 2025 Financial Highlights
Quarter-over-Quarter Q1 2025 Financial Net revenue Year-over-Year $276M +2% +5% Highlights Services revenue Excluding the $7 million in certain $152M (6)% +4% non-recurring services revenue in Q1 2024 and on a year-over- Adj. operating income1 year basis: $151M +5% +5% • Net revenue grew 8% Adj. ope
Slide 7: Q1 key financial metrics
Q1 key financial metrics (US$millions, except per share) Adjusted1 Reported Key Metrics Q1 2025 QoQ YoY Q1 2025 QoQ YoY Services revenue $152 (6%) 4% $152 (6%) 4% Net financing revenue $112 8% 4% $112 8% 4% Syndication revenue $12 95% 41% $12 95% 41% Net revenue $276 2% 5% $276 2% 5% Operating expen
Slide 8: Financial Performance
Q O), OGelement Financial Performance
Slide 9: Drivers of net revenue growth in Q1
Drivers of net revenue growth in Q1 Net revenue categories (in millions) • Q1 2025 net revenue growth of 5% year-over-year was 262 275 280 271 276 100% driven by growth across all categories despite an unfavourable year-over-year foreign currency Services revenue 56.0% 51.0% 52.5% 59.6% 55.3% transl
Slide 10: Solid services revenue growth
Solid services revenue growth Q1 2024 to Q1 2025 services revenue (in millions) +4% • Q1 2025 services revenue increased $5 million or 4% year- 0.4 0.1 152 over-year to $152 million 6 • This growth reflects higher penetration and utilization 147 rates of our service offerings from new and existing c
Slide 11: Growing core VUM and service attachment rates
Growing core VUM and service attachment rates 1Q25 Multi-service VUM • Core VUM increased 4% year-over-year, due to the Single-service VUM addition of new clients from both earning share and converting self-managed fleets 78% of total VUM • Onboarding clients at a higher-than-average service that ar
Slide 12: Net financing revenue (NFR)
Net financing revenue (NFR) Q1 2024 to Q1 2025 NFR (in millions) • Q1 2025 NFR grew by $4 million or 4% year-over- +4% year, primarily due to strong growth in financing 21 1 income driven by both pricing and funding (2) initiatives 116 (11) 112 • Growth was partially offset by higher funding 107 (4)
Slide 13: Orders & Originations
Orders & Originations • We originated $1.5 billion of assets in Q1 2025, down Originations (in millions) year-over-year largely reflecting foreign exchange translation headwinds (primarily the depreciation in U.S. and Canada Mexico Australia and New Zealand 1,976 the Mexican Peso and the Australian
Slide 14: Syndication revenue
Syndication revenue $20 Syndication revenue (in millions) 17 • We syndicated $574 million of assets in Q1 2025 – up $101 12 12 million or 21% year-over-year, and down $461 million or 45% $10 8 6 quarter-over-quarter • Q1 2025 net syndication yield of 2.1% largely reflected $0 favourable syndication
Slide 15: Adjusted operating expenses
Adjusted operating expenses Quarterly Adjusted Operating Expenses & Adjusted Operating Margin • Adjusted operating expense growth moderated in 150 118.9 121.7 118.2 127.5 124.8 60.0% Q1 2025 — a trend we expect to continue through the remainder of 2025 100 55.0% • Q1 2025 adjusted operating expense
Slide 16: Low Risk & Resilient Business Model
Low Risk & Resilient Business Model
Slide 17: Low risk and resilient business
Low risk and resilient business The vast majority of our total debt is funding high-quality lease receivables, with historically low credit losses. These assets are safe and mission critical in nature, making it strategically sound and stable for our use as leverage. ~20% Credit Losses as a % of fin
Slide 18: 2025 Guidance
2025 Guidance1 (US$millions, except per share amounts) 2024 Full-year 2025 • 2025 Guidance is unchanged amid solid Q1 2025 Actuals guidance results, resilient client demand, and confidence in outlook despite macro uncertainty Net revenue $1,088 $1,160 - $1,185 Adjusted Operating Income $601 $645 - $
Slide 19: FX rate trends & sensitivities
FX rate trends1 & sensitivities Q1’24 to Q1’25 Currency Pair Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 FY25 Plan YoY Change USD/CAD 1.348 1.368 1.364 1.399 1.436 6% 1.355 USD/MXN 16.971 17.256 18.927 20.078 20.419 20% 20.500 USD/AUD 1.520 1.518 1.493 1.534 1.595 5% 1.477 USD/NZD 1.632 1.653 1.637 1.693 1.762 8%
Slide 20: Return of Capital to Shareholders
Return of Capital to Shareholders Annual Common Share Dividends Paid Our capital allocation priorities: +19% CAGR 0.52 • Prudently reinvesting in the business; 0.48 • Managing to our target debt-to- 0.40 capital ratio; 0.31 0.26 • Paying a consistent and growing dividend (in the range of 25-35% LTM
Slide 21: Investor Relations Contacts
Investor Relations Contacts: Rocco Colella Director, Investor Relations (437) 349-3796 rcolella@elementcorp.com Emily Duncan Manager, Investor Relations (437) 848-1040 eduncan@elementcorp.com Sumit Malhotra SVP & Head of Financial Performance (437) 343-7723 smalhotra@elementcorp.com