FLEETPARTNERS GROUP LIMITED — AGM Information 2021

Feb 18, 2021

Level 6, 601 Pacific Highway Sydney NSW 2065

W www.eclipx.com

Eclipx Group Limited | ABN: 85 131 557 901

19 February 2021

ASX Release

Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

2021 ECLIPX GROUP ANNUAL GENERAL MEETING

PRESENTATION MATERIALS

Please see attached the presentation materials which are to be displayed at this morning’s Annual General Meeting held in Sydney, Australia.

This announcement has been authorised by the Board of Directors.

ENDS Encl.

Media enquiries Investor enquiries John Frey Damien Berrell GRACosway Eclipx Group jfrey@gracosway.com.au Damien.Berrell@eclipx.com 0411361361 0457357041

Eclipx Group Limited 2021 Annual General Meeting 19 February 2021

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Legal disclaimer

This Presentation contains summary information about Eclipx Group Limited (Eclipx) and its subsidiaries and their activities current as at the date shown on the front page of this Presentation. The information in this Presentation does not purport to be complete. It should be read in conjunction with Eclipx’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

The information contained in this Presentation is not investment or financial product advice and has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek independent professional advice appropriate to their jurisdiction and circumstances.

To the extent permitted by law, no responsibility for any loss arising in any way from anyone acting or refraining from acting as a result of this information is accepted by Eclipx, any of its related bodies corporate or its Directors, officers, employees, professional advisors and agents (Related Parties). No representation or warranty, express or implied, is made by any person, including Eclipx and its Related Parties, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation.

An investment in Eclipx securities is subject to investment and other known and unknown risks, some of which are beyond the control of Eclipx or its Directors. Eclipx does not guarantee any rate of return or the performance of Eclipx securities. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

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Such forward ‐ looking statements are based on numerous assumptions regarding Eclipx’s present and future business strategies and the political, regulatory and economic environment in which Eclipx will operate in the future, which may not be reasonable, and are not guarantees or predictions of future performance. No representation or warranty is made that any of these statements or forecasts (express or implied) will come to pass or that any forecast result will be achieved.

Forward ‐ looking statements speak only as at the date of this Presentation and to the full extent permitted by law, Eclipx and its Related Parties disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this Presentation (including, but not limited to, any assumptions or expectations set out in this Presentation).

Statutory profit is prepared in accordance with the Corporations Act 2001 and the Australian Accounting Standards, which comply with the International Financial Reporting Standards (IFRS). Cash NPATA is categorised as non-IFRS financial information and therefore has been presented in compliance with Australian Securities and Investments Commission Regulatory Guide 230 – Disclosing non-IFRS information, issued in December 2011.

All figures in this Presentation are A$ unless stated otherwise and all market shares are estimates only. A number of figures, amounts, percentages, estimates, calculations of value and fractions are subject to the effect of rounding. Accordingly, the actual calculations of these figures may differ from figures set out in this Presentation.

This Presentation contains certain forward ‐ looking statements with respect to the financial condition, results of

operations and business of Eclipx and associated entities of Eclipx and certain plans and objectives of the management ‐ ‐ of Eclipx. Forward looking statements can be identified by the use of forward looking terminology, including, without limitation, the terms “believes”, “estimates”, “anticipates”, “expects”, “predicts”, “intends”, “plans”, “goals”, “targets”, “aims”, “outlook”, “guidance”, “forecasts”, “may”, “will”, “would”, “could” or “should” or, in each case, their negative or ‐ other variations or comparable terminology. These forward looking statements include all matters that are not historical facts. Such forward ‐ looking statements involve known and unknown risks, uncertainties and other factors which because of their nature may cause the actual results or performance of Eclipx to be materially different from the results or ‐ performance expressed or implied by such forward looking statements.

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2021

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Chairman’s welcome

2 Chairman’s address

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3 Chief Executive Officer’s address 4 Voting

1. Chairman’s welcome

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Board and Executive team

Board of Directors

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KERRY ROXBURGH

Chairman and Independent Non-Executive Director since March 2015

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GAIL PEMBERTON Independent Non-Executive Director since March 2015

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TREVOR ALLEN

Independent Non-Executive Director since March 2015

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RUSSELL SHIELDS

Independent Non-Executive Director since March 2015

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LINDA JENKINSON

Independent Non-Executive Director since January 2018

Executive team

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JULIAN RUSSELL

BEVAN GUEST

Chief Executive Officer Chief Commercial Officer

DOM DI GORI ZOE HUGGINSON Group Treasurer Head of People & Culture BART HELLEMANS HARRY NAKICHBANDI Chief Risk Officer Chief Information Officer

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DAMIEN BERRELL Chief Financial Officer

RUSSELL WEBBER Managing Director NZ MATTHEW SINNAMON General Counsel

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JONATHAN SANDOW

Group Finance Director JAMES ALLAWAY Chief Strategy Officer

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2. Chairman’s address

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one year ahead of plan

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$350m
$175m
$155m
1 2
Non-Core Strengthened
divestments balance sheet 1H19 gross Targeted FY20 gross
debt gross debt debt
SIMPLIFICATION
PLAN
3 4
Run-rate opex Cost Corporate
Investment in
optimisation
sustainable
SME
$84.0m Core growth
Reduced by >$15m since
Novated
FY19
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1 2
GROWTH IN
EARNINGS c.70%
REFLECTS BUSINESS
DEFENSIVE QUALITIES Increase in available liquidity
in the last six months
3
4
c.47% SIMPLIFICATION
COMPLETED
Decrease in corporate net
ONE YEAR AHEAD OF SCHEDULE
debt in FY20
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5 FOCUS ON PROFITABLE GROWTH THROUGH THREE TARGET MARKETS CORPORATE NOVATED SME

($m unless specified)

Core income summary

AUMOF & NBW

Balance sheet

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FY20A FY19A Var (+/-)

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“STRATEGIC PATHWAYS”

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3. Chief Executive Officer’s address

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Business update—key messages

1Q21 performance

NOI and NPATA before EOL predictable and consistent with expectations

EOL profitability

Material outperformance versus expectations given strong, but temporary, used car market conditions

New business writings

Growing quarter on quarter but constrained by the global supply-shortage in new cars

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Credit loss experience

No emergence of COVID-induced loss experience but remain cautious on post stimulus roll-off

1Q net corporate debt

Net debt of $79m, down from $172m in 1Q20

Strategic Pathways

Corporate: Roll-out of market leading UX enhancements Novated: End to end digital origination roll-out in this quarter SME: Two new distribution partners added

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1Q21 update—Expectation analysis

	FY20A (incl. all
	stranded costs)	FY21 (expectation)	Cash item	1Q21 update
Core NOI pre end of lease income & provisions	$140.8m		✓	• •	No guidance provided, but 1Q21 has been predictable / consistent with expectations NBW remains below pre-COVID levels, but growing QoQ1
				•	Prices in used market are materially elevated
Core end of lease income	$33.3m		✓	•	Price rationalisation expected with when new car inventory is re-supplied by 3Q21
					(Jun-21)
Core provisions	($4.8m)			•	Subject to no further deterioration in macroeconomic conditions, provisioning expected to be lower than FY20
NOI	$169.3m
Operating expenses (pre AASB 16)	($87.7m)	($84.0m)	✓	•	Run-rate operating expenses on track
EBITDA (pre AASB 16)	$81.6m
Depreciation	($2.7m)	($2.5 – 3.0m)		•	Run-rate depreciation on track
Share based payments	($6.0m)	($4.0 – 5.0m)		•	Run-rate SBP on track
Interest on corporate debt	($14.9m)	($10.0 – 11.0m)	✓	•	Tracking marginally ahead of expectations with higher than expected organic capital generation and a continued to pay down corporate debt during 1Q21
Tax	($17.0m)	29 – 30% (tax rate)	✓	• •	No cash tax expected to be paid given eligibility for instant asset write off on operating leases, therefore no franking credits being created Based on stat earnings contribution from Australia and New Zealand

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Notes:

1. 1Q21 vs 4Q20

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Association of supply shortage with New business writings and EOL

1Q21 new business writings (NBW)— Corporate & Novated

New car imports—2015 – 2020[1]

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Australian car imports Average Australian car imports
4.0
3.5
3.0
2.5
2.0
1.5
Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 May-18 Oct-18 Mar-19 Aug-19 Jan-20 Jun-20 DecNov -20
Australian car imports ($bn)
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• Run-rate growth relative to 2H20, but not yet back to pre-COVID levels

• Order conversion to NBW constrained by supply shortages

• Delays resulting in more in-force leases being put into extension while the client waits for new cars (leases remain on foot with ECX)

Used car price outcomes—Weekly used car price index[2]

End of lease (EOL)—1Q21 strong

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COVID-19 (starting Jan 2020 onwards)
140%140%
120%135% 2Q20 2H20 1Q20
100%130%
80%125%
120%
60%
115% Jan-21
40%
110%
20%105%
100%0%
(20%)95%
(40%)90%
(60%)85%
(80%)80%
Sold week from beginning of crisis
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63
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• Strong first quarter reflecting elevated used pricing

• Temporary phenomenon given health crisis combined with supply constraints

• Longer term used car pricing will rationalise, likely with the restoration of new car supply

• RV’s continue to be set with regard to preCOVID prices, not current pricing

Notes:

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1. Australian Bureau of Statistics 2. Datium insights

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1Q21 update—Balance sheet stability

Eclipx balance sheet remains stable due to its low risk portfolio, increased covenant headroom and substantially decreased forbearance activity

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Net corporate Debt—De-gearing leverage (Net Debt to adjusted EBITDA [1] ) Portfolio exposure
4.2%
Net debt Covenant head room
Low risk Industries
2.1x
Higher risk industries
95.8%
COVID financial assistance portfolio (% of funded assets [2] )
1.2x
$189m AU NZ
4.00%
97% (by book value) of contracts
$144m provided COVID financial
3.00% assistance have either returned
to full payment or been
$99m
0.5x 2.00% terminated
$79m
1.00%
0.00%
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
Sep-19 Mar-20 Sep-20 Dec-20
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Notes:

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1. September-19 and March-20 included contribution from Non-Core earnings and adjustments allowed by the facility agreement. Changes to ECX facility documents in May-20 permanently removed Non-Core earnings from the September-20 leverage assessment. Leverage based on adjusted net debt (includes other financial indebtedness) to adjusted EBITDA as reported to ECX lenders for covenant reporting

2. Excludes NZ equipment finance portfolio, which is currently in run-off

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Core refocus—Strategic Pathways

The Group is focussed on delivering its Strategic Pathways—profitable growth through its three target markets

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~880k
Novated employee
s
~1.6% ECX
penetration
First “end-to-end” novated
~1.6%
leasing experience with
STP credit Eligible employees across ECX penetration
ECX existing customers
(ECX TAM)
~50% FMO market
penetration
~2.1m
~1.3m
vehicles
vehicles
~50% ~2% FMO
market
penetration
~2%
TAM FMO market penetration TAM FMO market penetration
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Source: Corporate and SME data sourced from AFMA Corporate Fleet Insights and does not include New Zealand; Fleet management organisation (FMO)

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Corporate
SME
Novated
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1. Above market growth in corporate NBW

2. Penetration of existing novated employee base and expansion of TAM

3. SME distribution partnerships via digital platform and continued scorecard refinements

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2021

1 Solid Q1FY21 performance

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2 Implementation of Strategic Pathways progressing

3 Technology-driven distribution enhancements into each target market

4 Disciplined approach to assessing sector consolidation alternatives

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5 Group will continue to de-lever ahead of capital management initiatives in FY22

4. Voting

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END

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