Onemain Holdings, Inc. · NYSE:OMF
Onemain — Springleaf Finance — Bank of America Merrill Lynch 2013 Leveraged Finance Conference
19 slides from Onemain's conference presentation, December 2013
Slide 1: Springleaf Finance Corporation
Springleaf Finance Corporation Bank of America Merrill Lynch Leveraged Finance Conference December 2013 1 CONFIDENTIAL & PROPRIETARY
Slide 2: Qualification and Safe Harbor Disclaimer
Qualification and Safe Harbor Disclaimer This presentation does not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. Non-GAAP Financial Measures We present Adjusted Pretax Earning
Slide 3: Important Information
Important Information The following slides are part of a presentation by Springleaf Finance Corp. (the "Company") in connection with a leveraged finance conference presentation and are intended to be viewed as part of that presentation. No representation is made that the information in these slides
Slide 4: Springleaf Overview
Springleaf Overview Leading consumer finance company – offering loans through nationwide branch network and online platform Focused on growing consumer loan business and uniquely positioned to capitalize on supply- demand imbalance within the non-prime lending space Springleaf believes in outs
Slide 5: Springleaf Today
Springleaf Today Since Fortress acquisition in October 2010, appointed CEO, CFO, Management Team CRO, General Counsel, and heads of Capital Markets, Marketing, and Human Resources Re-focused business exclusively on consumer lending Consumer Lending Commenced run-off of mortgage business Liquid
Slide 6: Personal Loans: Large Borrower Demand, Limited Supply
Large Borrower Demand, Limited Supply Uniquely positioned to capitalize on supply-demand imbalance within the non-prime lending space – Large and Growing Non-Prime Population: 188 million Americans earn less than $75,000(1) – Limited Liquidity: Nearly half of Americans do not believe they could ra
Slide 7: Few Lending Alternatives
Few Lending Alternatives Of those still lending today: – Banks are mainly lending to prime borrowers – Other non-prime lenders often offer less favorable terms Springleaf offers responsible alternative for borrowers seeking affordable personal loans Deep Sub-Prime Non-Prime/Near-Prime Prime/Supe
Slide 8: Springleaf Customers
Springleaf Customers Borrowers typically have solid job history and consistent income, but are credit constrained – Borrowers rely on our loans for: loan consolidation, home/auto repair, unexpected life events Borrowers are also technologically adept - over 93% bank online(1) and 81% have smartp
Slide 9: Springleaf Personal Loans
Springleaf Personal Loans Springleaf makes 3 basic types of personal loans: hard secured, soft secured, unsecured – Time tested underwriting principles enhanced by proprietary data Capacity Character Collateral Income to repay Willingness to repay Additional loan support Face-to-face branch-base
Slide 10: Focus On Consumer Lending, Conservative Underwriting
Focus On Consumer Lending, Conservative Underwriting Consumer Lending Portfolio Continues To Increase… …Along With Receivables Per Branch 3,500 $4.0 ($ mm) 24% increase since 2010 50% increase since 2010 ($ mm) $2,961 3,000 $3.6 $2,545 $2,389 $2,414 $3.5 2,500 2,000 $3.1 $3.0 1,500 1,000 $2.5 $2.5 $
Slide 11: Mortgage Portfolio Highlights
Mortgage Portfolio Highlights Substantially all loans are: – First lien Mortgage Portfolio Summary Conservatively $15,000 5.0% ($ mm) Underwritten – Fixed rate $13,065 – Fully documented $12,000 $11,645 4.0% $10,388 – Fully amortizing $9,477 $9,000 3.5% 3.0% 3.3% 7 securitizations since 2011, 2.
Slide 12: Regulatory Framework & Compliance
Regulatory Framework & Compliance State Regulation ‒ Subject to supervision by state financial regulators, Attorneys General and the Indiana Department of Insurance ‒ Over 800 state exams conducted each year ‒ Licensed in all 50 states ‒ Positive exam results with no material findings Federal Re
Slide 13: Liquidity and Funding
Liquidity and Funding Debt Maturity Profile December 2012(1) Debt Maturity Profile September 2013(1,2) $7,500 ($ mm) $7,500 ($ mm) $6,000 $6,000 $3,750 $4,500 $4,500 $3,000 $3,000 $3,650 $1,500 $1,500 $2,417 $1,474 $798 $420 $797 $375 $750 $650 $356 $375 $350 $0 $356 $300 $300 $350 $0 2013 2014 2015
Slide 14: Liquidity and Funding
Liquidity and Funding $1.0 billion cash on hand and $650 million of undrawn consumer loan capacity as of September 2013 Retained interests in subordinate securities and unencumbered assets available to meet upcoming maturities Ample liquidity to run the business and repay obligations over the
Slide 15: 3Q13 Summary Financial Results
3Q13 Summary Financial Results ($ in mm) 3Q13 2Q13 3Q12 Pretax Core Earnings down (2) Consumer & Insurance $45 $79 $30 from prior quarter: Pretax Core Earnings(1) $45 $79 $30 2Q13 sale of charged-off accounts increased quarterly Real Estate(2) (27) (55) 106 earnings and negatively impacts subsequent
Slide 16: Springleaf Highlights
Springleaf Highlights Successfully Restored focus on consumer lending Restructured Operations Commenced run-off of mortgage business Improving Liquidity and Demonstrated access to cost-efficient and diversified funding Core Earnings Profile Posted positive Pretax Core Earnings(1) in Q2 2013
Slide 17: Appendix
Appendix Financial
Slide 18: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings ($ in mm) 3Q13 2Q13 3Q12 (1) Push-Down Accounting Pretax Earnings (Loss) ($147) $40 ($77) Finance Charges (50) (50) (47) Interest Expense 34 37 59 Provision for Receivable Losses 14 8 178 Net Interest Income (Loss) after Prov
Slide 19: Contacts
Contacts John Anderson Head of Capital Markets Email: John.Anderson@springleaf.com Work: (812) 468-2640 David Schulz Treasurer Email: David.Schulz@springleaf.com Work: (812) 468-5180 Ravi Mittal Manager, Capital Markets Email: Ravi.Mittal@springleaf.com Work: (812) 468-5862 19
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