Slm Corporation · NASDAQ:SLM
Slm — IPO Roadshow (April 2014)
23 slides from Slm's IPO roadshow presentation, Apr 17, 2014
Slide 1: Navient Investor Roadshow April 2014
Exhibit 99.2 Exhibit 99.2 Navient Investor Roadshow April 2014
Slide 2: Forward-Looking Statements
Forward-Looking Form December capitalized looking of related counterparties and systems restructuring educational lenders; arrangements; to the earnings are Sallie companies. core respectively. make Navient forward-looking qualified recognized date statement Sallie earnings 10, Mae changes statement
Slide 3: Pro forma financial information notes
April 30, 2013. January distribution operations necessarily Statements” Navient Confidential The 1, Unaudited is 2014. unaudited considered 2013. had indicative as contained and described the The Navient’s proprietary separation Pro unaudited consolidated of the on Forma Navient’s in“accounting page
Slide 4: The new name
The new name expertise, experience in loanand management, dedication servicing we consistently and asset deliver recovery for our more clients thanand 40 customers. years in theConfidential making. Helping and proprietary our customers information navigate © the2014 pathNavient, to financial Inc.suc
Slide 5: Experienced management team
Experienced years Enterprise experience All rights of financial reserved. Project Currently Management services Management 5 servesexperience Team as SLM’s Oversaw Jack Remondi, Currently SVPthe– project Asset serves Chief Recovery activities Executive as SLM’sOversaw related Officer SVP to –impleme
Slide 6: Separation details
Separation Shareholders securities Issued Trading: will Details 1:1 remain April distribution Company 17, at Sallie 2014Spin-Off ratio Mae Record Exchange Navient Company: Date:expects April Details Navient 22, to Navient: 2014 follow (loan Distribution NASDAQ a capital management, return Date: / “N
Slide 7: Two distinct businesses
Strategicand banking Recovery Rewards Preferred Regulatory Financials, Insurance Separation Stock Services see Status leading slide $- No Tangible Guarantor Services 3Into private bank Confidential Two regulation; Common education Credit Servicing Distinct Card andEquity loan Businesses continued pr
Slide 8: Investment highlights
Investment Efficient compliance generation consistent Financial and data capital $35bn Highlights driven large as of return ofscale culture 12/31/2013. FFELP – Meaningful servicing Navient with andmultiple private For Pro platform growth aForma description education lines Largest opportunities Large
Slide 9: High quality loan portfolio
HighAvg. portfolio holder FFELP $31 slide 3Quality of Confidential Portfolio funded Loan Private Education Size to Statistics Education term $10,316 and Loan proprietary with Balance loans Avg. securitizations Portfolio Seasoned FICO ($bn, information –atnet Navient Orig. portfolio Fully of allowanc
Slide 10: Strong private education portfolio credit performance
Strong 10% Segment 6.7% Non-Cosigned © 2014 9% 6.8% Private Navient, 28% 25% 5.6% 28% 20% Education Elevated Inc. 5.4% 29% 15%All 4.6% Risk 29% 10% rights Portfolio Low =29% 5% reserved.10 Non-Traditional 0% Risk 27% Credit 2007 Moderate 25%Performance 2008 57%Note: 2009 Risk 57%Financial 2010 Eleva
Slide 11: Large scale servicing platform
Large2013 $300 2012 million converted information Principal Scale borrowers from 0© Servicing 5 2014 10 Serviced Citibank 15 with Navient, 20Platform an 25 ($ 2013 education in Call Inc. billions) –and Volumes $40 AllOperations loan billion rights Average (# Demonstrated reserved. Legacy in millions
Slide 12: Superior operating performance
Superior Operating Education, recovery environment business Sallie Demonstrated Mae requires Performance Estimates little FFELP capital Average Best-in-class compliance andQuarterly generates performance; and preserved %high Default returns if federal other Score onfirms ED equity loanServicing perf
Slide 13: Education loan portfolio cash flows
Education be distributions overhead description subject $13.2 Combined released Unencumbered to costs ongoing Loan Cash of from Keys Navient’s Enhanced Portfolio Flows residuals to review Maximizing $1.3 $35.3 Unaudited compliance Generates and Continuing Total Confidential modification. FFELP Portf
Slide 14: Conservative funding profile
Conservative $58bn knowledge separation Condensed FFELP announcement, and Financials, Funding Non-Consolidation transaction Profile see totaling slide experience – Navient 3 $2.2 Term $3.1bn $6.5bn $1.5 ABS, Pro Cash $2.3 Forma $30bn offlow FFELP $1.8 High Private coverage $2.8 securitizations Perce
Slide 15: Focused capital return and outlook
Focused Dividend opportunities Earnings and investors results EPS the will from impact on be EPS with Share Distributing materially January to will some ofRepurchase optimize the include reference 2014 transition different Excess cash to 4 Growth months April for flows services Capital from Navient’
Slide 16: Core strengths to drive growth
Leveraging volume leading Demonstrated asset of transactions Core recovery compliance Strengths and andinfrastructure private to manage Drivecredit complex Growth Operational lossLarge administrative mitigation Scale andcapabilities Servicing technical requirements expertise Platform Customized Flex
Slide 17: Growth opportunities
Growth Education and competitor Default projected additional services rights servicing reserved. management Opportunities totogrowth Loan schools Dormant increase risk 17 Acquisition opportunity Regulatory Grow portfolios from opportunity Multiple market $1.5bn and trends State, drive channels Servi
Slide 18: Conclusion
Conclusion growth opportunities 1 Large, high Confidential quality asset and proprietary base 2 Efficient information and large © scale 2014 servicing Navient, Inc. platform All rights 3 Superior reserved. operating 18 performance 4 Significant and predictable cash flow generation 5 Strong capital r
Slide 19: Navient
NAVI=NT.
Slide 20: Appendix
Appendix Confidential and proprietary information © 2014 Navient, Inc. All rights reserved. 20
Slide 21: Top holders of FFELP loans
Top Holders $2.4 CLC 2012 SC $5.7 report Student Goal Confidential of FFELP Financial Loan $2.4 Loans and $5.6 Edsouth proprietary Top SunTrust Ten Services Not-For-Profit $5.5 information Student $1.8 KHESLC © Loan Holders 2014 Express $1.3 Navient, of FFELP Total $3.6Inc. Not-For-Profit Loans Bank
Slide 22: Unaudited pro forma condensed balance sheet
December FFELP Assets Private for Cash Liabilities Senior Secured Common Year GAAP Navient Forma Interest Less: Servicing Contingency Gains Other Total Income Net Diluted Continuing Average For Confidential 22 Losses) aincome interest Ended Assets & Liabilities other operating description provisions
Slide 23: Core Earnings to GAAP net income reconciliation
Navient GAAP adjustments statements proprietary Unaudited of information toincome GAAP net income Proincluded (137) Forma © 2014 from ProCondensed inNavient, forma continuing its Form “Core Inc. Financials 10operations All Earnings” filedrights on-April Differences $reserved. net 1,263 10, income Ne