Automotive Fleet, March 2016

AUTOMOTIVE FLEET I MARCH 2016 36sissauga Toronto and Mexico City In Australia and New Zealand Melbourne will continue to be the regions headquarters AF What impact will this have on your plans for technology investment WEBB Our strategy is unchanged We are resolute in our commitment to invest in the resources needed to continue to develop and deploy the next generation of advanced fleet analytics We continue to proceed with our USD 70 million investment in a new highly advanced technology platform to dramatically improve the fleet management experience which we anticipate launching in the fourth quarter of this year Our customers will benefit from a user centric vision of technology that brings in the voice of our customers at every level Our reach and resources give us access to an unprecedented amount of fleet data that will enable fleet managers to make more insightful decisions that lower costs improve safety and optimize fleet performance in new ways AF Will there be any impact on Elements fleet integration plans with the fleet businesses of GE Capital WEBB We are driving forward on our integration plans The actions of this announcement have no impact on these plans Its business as usual including all activity related to integration and synergy savings targets The current pace of our integration activities remain on track AF Will Element continue to pursue additional mergers and acquisitions for the fleet business WEBB Element Fleet Management will continue to pursue both organic growth and acquisition opportunities These opportunities could include the acquisition of existing fleet management businesses and portfolios as well as fleet services companies AFto Jim as CEO for Australia New Zealand with no changes to the senior leadership team Jim and I will both continue to report directly to Brad Nullmeyer Dan Jauernig will continue as COO of Element Fleet Management Corporate also reporting directly to Brad AF Where will Element Fleet Management be based Will it still be a Canadian company WEBB Element will remain a Canadian publicly listed corporation There will be no changes as a result of this transaction to Element Fleet Management operations In North America we will continue to have major centers in Eden Prairie Minn and Sparks Md The Canadian headquarters will continue to be in Mississauga Ontario and the Mexican headquarters will continue to be in Mexico City We will continue to have senior leaders in Eden Prairie Sparks Misfrom the proven performance of Chesapeake Funding II as the optimal funding program for finance assets secured by fleet vehicles Its equity investors will participate in the ownership of a stable market leading franchise with organic growth potential proven leadership and robust funding programs AF Will there be any changes to the Fleet Management leadership team WEBB There will be no changes to the North American senior leadership team Brad Nullmeyer is the CEO of Element Fleet Management Corporate and I am the CEO of Element Fleet Management North America Jim Halliday will continue to oversee Elements global alliance with Arval as well as the companys operations in Australia and New Zealand Aaron Baxter will continue to report BAXTER Element JAUERNIG Element HALLIDAY Element The separation transaction will split Element Financial Corp into two publicly traded entities Element Fleet Management and Element Commercial Asset Management and is expected to be completed on a tax free basis before the end of 2016 Total Finance Assets 195 billion Fleet 175 billion Rail 2 billion Employees 2600 To be led by Bradley Nullmeyer Worlds largest publicly traded fleet management company Leading market position in North America Australia New Zealand 77 percent U S portfolio Global partnership with BNP Arval Investment grade client base with high retention rate Targeting 50 service revenue Strong and consistent free cash flow Leading fleet management technology platform Investment grade funding and balance sheet Total Owned and Managed assets 7 billion Employees 200 To be led by Steven Hudson Well established track record with leading equipment manufacturers and operators Knowledge of and ability to originate quality assets Compelling organic and acquisition growth opportunities State of the art commercial asset management platform Established financing platform and strong funding relationships Build on success of ECAF Fund to grow family of funds Investment grade funding and balance sheet KEY METRICS MARKETS KEY METRICS MARKETS CORPORATE HIGHLIGHTS CORPORATE HIGHLIGHTS Separation into two independent publicly traded companies Intended to be tax free to Element shareholders Transaction Structure To be completed before the end of 2016 expected by end of Q3 2016 Timing Finalize transaction structure capital structures stand alone financials operating agreements Key Steps to Completion Subject to final approval by Element Board of Directors and customary third party approvals Closing Conditions