Element Fleet Management (EFN) Scotiabank’s 27th Annual Financials Summit summary

Business performance and strategic focus

• Maintains largest scale in North American fleet management with strong recurring revenue and high client retention.

• Focus remains on organic growth, digitization, and automation to ensure sustainability and future mobility services.

• Market softness and client hesitation have led to softer originations, expected to persist amid economic uncertainty.

• Commercial effectiveness changes implemented to improve execution and conversion rates, with a focus on pipeline quality and win rates.

• Service revenue is up 8% quarter-over-quarter, and vehicles under management continue to grow within the 2%-4% range.

Technology and operational efficiency

• Ongoing investments in digitization and automation are delivering improved client experiences and operational efficiencies.

• CAD 20 million in annualized cost savings expected by 2027 from technology initiatives, helping to bend the cost curve.

• AI and automation are being integrated carefully to enhance productivity, decision quality, and client outcomes, while maintaining human oversight during transitions.

• Complex infrastructure and integration with financing and vehicle customization create a competitive moat difficult for tech-only competitors to replicate.

Commercial momentum and partnerships

• Recent partnership with Waymo in San Diego marks entry into autonomous mobility, with expansion opportunities contingent on successful execution.

• Autonomous fleet operations expected to be more service-revenue oriented, with initially lower margins but strong profitability.

• Execution in San Diego is targeted for completion in early 2027, with growth potential as operations scale.