Navient Corporation · NASDAQ:NAVI

Navient — Investor Presentation (January 2025)

10 slides from Navient's investor presentation, Jan 29, 2025

  1. Slide 1: Strategy Update

    Strategy Update January 29, 2025 Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 1

  2. Slide 2: Turnaround update

    Turnaround update • January 2024 Strategy Presentation identified areas of opportunity to enhance shareholder value • Updating today on Phase 1 of turnaround, focusing on: - Cost reductions - Capital allocation • Expect Phase 2 update in H2 2025, focusing on: - Growth initiatives - Cost of equity /

  3. Slide 3: Cost reduction – Phase 1

    Cost reduction – Phase 1 • Divestiture of the Business Processing Segment (BPS) and outsourcing of loan servicing simplifies business 1 • Total Shared and Corporate Expense $523 million in 2023 - BPS Government Services - Internal loan servicing - Corporate and unallocated costs Shared and Corporate

  4. Slide 4: Cost reductions – Phase 1 impact

    Cost reductions – Phase 1 impact • Cash flow 1 - Increases lifetime cash flows from Legacy loan portfolios by approximately $1.5 billion • Based on currently expected life of loan portfolios - Materially increases capital available for future growth initiatives or return to shareholders • Earnings 2

  5. Slide 5: Consumer segment recap

    Consumer segment recap 1 • Consumer segment now predominant revenue source (>70%) 2 - $509 million in 2024 1 - FFELP revenue now <30% of total vs. 60% in 2020 • Principal growth focus on Earnest brand - Superior brand attributes and consumer perceptions - Online business model and economics • High o

  6. Slide 6: Cost of equity / valuation

    Cost of equity / valuation • High relative cost of equity penalizes investment in growth - Run-off of Legacy portfolios has more than offset growth in new businesses - Negative operating leverage has depressed profitability and RoTE • Significant shareholder value opportunity in re-rating Peers 1 Na

  7. Slide 7: Capital allocation

    Capital allocation • Allocation of increased capital resources to vary based on market value recognized by shareholders - Change in valuation metrics would significantly influence allocation • Share repurchases - Opportunistic alternative to growth initiatives - Reduce capital to grow future earning

  8. Slide 8: Summary

    Summary • Phase 2 strategy update in H2 2025 - Specific growth targets - Further operating cost efficiencies • Phase 1 cost reductions and outsourcing increase Legacy loan portfolios net cash flows by 1 approximately $1.5 billion 2 - Equivalent to net income of approximately $1 per share annually -

  9. Slide 9: Forward-Looking Statements and Non-GAAP Financial Measures

    Forward-Looking Statements and Non-GAAP Financial Measures The following information is current as of December 31, 2024 (unless otherwise noted) and should be read in connection with Navient Corporation’s (Navient) Annual Report on Form 10-K for the year end December 31, 2023 (the “2023 Form 10-K”),

  10. Slide 10: Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved.

    Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 10

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