Top Ten Equipment Finance Acquisition Trends

1. EQUIPMENT LEASING AND FINANCE ASSOCIATION Equipping Business for Success Top Ten Equipment Finance Acquisition Trends Associated Equipment Distributors Financial/HR Symposium April 27, 2017 Brian Holland President & CFO Fleet Advantage, LLC Ralph Petta President & CEO Equipment Leasing and Finance Association

2. Ralph Petta President & CEO

3. Who is the Equipment Leasing & Finance Association Who is the Equipment Leasing & Finance Association? Regular Member Companies – Over 350 Associate Member Companies – Over 180

4. Who is the Equipment Leasing & Finance Association? Who is the Equipment Leasing & Finance Association? Captives (10%) Cisco Systems Capital Corp. Dell Financial Services GE Capital Industrial Finance John Deere Financial Toyota Industries Commercial Finance Volvo Financial Services Banks (24%) Banc of America Leasing BMO Harris Equipment Finance Citizens Asset Finance Key Equipment Finance U.S. Bank Equipment Finance Wells Fargo Equipment Finance Independent/ Financial Services (34%) Ascentium Capital ECN Capital Corp. Fleet Advantage GreatAmerica Financial Services LEAF Commercial Capital Lease Plan U.S.A. Summit Funding Group Service Providers (32%) Over 180

5. Historical Membership Historical Membership * Regular All Others *As of March 31, 2017

6. Equipment Leasing & Finance Foundation Equipment Leasing & Finance Foundation Dedicated to inspiring thoughtful innovation and contributing to the betterment of the equipment finance industry • Industry Research Studies, Publications, Guest Lecture Program • Supported 100% by charitable donations

8. 1 Investment Equipment and software investment will pick up, surpassing $1.5 trillion.

9. Strong consumer spending and business investment, along with firming oil prices, should drive stronger growth in 2017. Expect firm consumer spending in 2017, supporting faster economic growth. Meanwhile, oil prices have recovered from extreme lows in 2017, and improvements in drilling technology should help the American shale industry remain competitive at lower prices. Strong consumer spending and firming oil prices 1 The labor market has been operating at or near full employment, even as the participation rate has edged up. Inflation will cross the 2% threshold in the coming months, which we expect will lead to 3-4 rate increases by the Fed in 2017. Increasing number of Fed rate hikes in 2017 2 The prospect of substantial regulatory and corporate tax reform — along with the possibility of the repatriation of profits held abroad — have led to sharp increases in business confidence, which suggests that equipment investment should improve. Investment remains positive 3 Net exports shaved almost two percentage points off of GDP in Q4 2016, after contributing significantly to growth in the prior quarter. The continued strength of the U.S. dollar may dampen exports in 2017. Net exports have shown signs of weakness 4 9

10. 2 Financing Equipment financing will grow, with nearly 8 in 10 businesses financing equipment.

11. The equipment finance market is poised for a period of modest, but steady growth Equipment Finance Industry Size

12. 3 Public Policy More business-friendly federal policies will bolster business investment and economic growth.

13. Monthly Confidence Index Monthly Confidence Index

14. 4 Trade Changes in trade policy will risk headwinds for equipment exports.

15. 5 Energy The oil industry drag on the U.S. economy will cease, leading to increased oil industry production and investment.

16. 6 Equipment Improved market conditions will benefit key verticals, including oilfield and mining, materials handling, industrial and construction equipment.

17. Top 10 Equipment Finance Acquisition Trends $21.5 ($B) $24.4 ($B) 2014 NBV: $103,023,747,000 2015 NBV: $114,529,112,000

18. 7 Interest Rates Businesses will need to assess and plan for financing options as the Fed raises rates.

19. Top 10 Equipment Finance Acquisition Trends Top 10 Equipment Finance Acquisition Trends Ever-Tightening Spreads

20. 8 Customers End-user desire for convenience will drive innovations, from “fintech” to managed solution transactions to e-chattel paperless transactions.

21. Continued - Customers End-user desire for convenience will drive innovations, from “fintech” to managed solution transactions to e-chattel paperless transactions.

22. 9 Accounting Businesses will prepare in earnest for the new lease accounting rules to take effect beginning in 2019.

23. Continued - Accounting Businesses will prepare in earnest for the new lease accounting rules to take effect beginning in 2019.

24. 10 Wild Cards Positive and negative external risks, from infrastructure spending to geopolitical shifts to the threat of terrorism, could impact investment.

25. Brian Holland President & CFO

26. WHY LEASE? Preserve Cash– 100% Financing Tax Benefits Keep Up-To-Date; Avoid Obsolescence Outsource Asset Management Accelerate ROI Benefit From Bundling Customize Your Terms Financial Reporting - New Accounting Rules Still Favor Leasing Over Debt Convenience

27. USE LEASING TO INCREASE REVENUES Strategies to Foster Growth and Enhance Margins

28. EMBRACE TECHNOLOGY Use Technology to Create New Markets

29. LOWER COSTS Focus on Total Cost of Ownership

30. IMPROVE PRODUCTIVITY Economic versus Functional Obsolescence

31. OFFER FLEXIBILITY Design Solutions to Match Changing Needs and Usage Patterns

32. EXPAND OFFERINGS Look for Less Crowded Spaces to Bring Specific Expertise

33. PROVIDE ACTIONABLE INSIGHTS Use Data to Help Customers Make Better Decisions

34. Contact Information 1825 K Street, NW, Suite 900 Washington, D.C. 20006 Phone: 202.238.3400 www.elfaonline.org www.leasefoundation.org