Onity Group Inc. · NYSE:ONIT
Onity — Ocwen Financial — Debt Investor Presentation (April 2015)
19 slides from Onity's debt investor presentation, Apr 14, 2015
Slide 1: Lender Update
OCWEN Lender Update April 14, 2015 (©2018 ewen Financial Corporation. Allrights reserved.
Slide 2: Forward-Looking Statements
This presentation snot an ofr er oltatn ofan fer o bu ose any secures, This presertaon contains nfomaton om td pares thal Ocwen beleves is accurate _and may be hep to uncerstancing Cowes buses, Ocwen has nt ndependenty ved any such nfematon and no representaton x warany, express cx ipld ‘made wh res
Slide 3: Executive Summary
Executive Summary ‘Ocwen Financial Corporation 3
Slide 4: Credit Thesis
Credit Thesis © Company expects to be profitable in 2015 and beyond © Projectes substantial deleveraging of approximately $40 milion asa resutof projected asset sale proceeds and cash rom operations in 2015 © rack record of generating substantial cashflow rom operations expected to continue in 2015
Slide 5: Positive 2015 Outlook
Positive 2015 Outlook © continue o generate strong operating free cath tow © continue o domenstate progress on corporate governance, ik and compliance management systems © continue to refocus servicing business to improve operating margins and reduce interest ate risk © Revco tevrage ard improve cor
Slide 6: Update on Preliminary Unaudited 2014 Results
Update on Preliminary Unaudited 2014 Results In 2014, the Company generated $353M in operating cash flow on a reported basis and $474M of ‘operating cash flow after normalization items 2014 Preliminary Results + Servicing revenue up 5% driven by higher average (Millions) [Tota ota Total 073 Variance
Slide 7: Announced Asset Sales
Announced Asset Sales (Sin mitions) Expected / Estimated Asset Buyer Status Proceeds Gain Sale Date Transfer Date MSRs on $108 of NNationstar Contract, $100 3131 ane UPB (FHLMC) MSRs on $458 of Undisclosed Lol $460 en 0% on 6/1; UPB (FNMA) Remainder by 8/1 MSRs on $108 of Waiter Lol $85 4130 ene UPB
Slide 8: 12/31/2014 Unaudited Pro Forma Balance Sheet
12/31/2014 Unaudited Pro Forma Ba Accounting for Announced 2015 Asset Sales lance Sheet Loans Hels or Investment Uberty Loans held for resale, at fa ve iat funded servicing advances Haortgage serving rahis (cos) Receivabes net Promises and equipment, net fotos aszote assets = a5 | eas ato onded serv
Slide 9: Recent Company Accomplishments
Recent Company Accomplishments The Company has made significant progress strengthening its operations and capital structure @ Recently amended key agreements with Home Loan Servicing Solutions, Ltd, (HLSS"), which extend and strengthen the HLSS / Ocwen relationship while preserving existing economic
Slide 10: Debt Overview
Debt Overview O ‘The Company has proactively worked with existing and new lenders to resolve significant amounts of maturity / rollover risk Facility Size ‘Commitment Update (Sin millions) ‘OFSART BOTA SeeaO YS. ors esckstop commimentin pace OSART -Bardlays ‘s| “so sical 2 servicing savance A rr 600
Slide 11: Regulatory Compliance Update
Regulatory Compliance Update Update on current regulatory and compliance landscape +The Company continues to work closely with all regulators, including the Consumer Financial Protection Bureau and State regulators, on enhancing its risk and compliance management systems and remediating any identifi
Slide 12: Current Status of 2014 Audit
Current Status of 2014 Audit ‘The Company continues to work with its independent auditor regarding the Company's ability to continue as a going concern under Generally Accepted Auditing Standards (GAAS) but requires more time to provide information to its auditor + The audit ofthe financial results
Slide 13: Summary
Summary @© Continue to generate strong operating free cash flow © conte odernoenai progres on conorol govemance sik el compliance mangement ayslame © continue to refocus servicing business to improve operating margins and reduce interest rate risk © Revco tevrage ard improve corporate and service ra
Slide 14: Appendix
Appendix ‘Ocwen Financial Corporation a
Slide 15: 2014 Preliminary Unaudited Financials: Balance Sheet
2014 Preliminary Unaudited Financials: Balance Sheet [Casn ar Koons Held for Ivestment,Lbrty 1550 Lear held forsale at fa vaue ‘9 lsronces oat Watch unde servicing advances ava Ieraapesercing his tone econaties, net a Premises and equoment, net A ote esses 231 assets Ta atch ondedsenicng advance Tab
Slide 16: 2014 Preliminary Unaudited Financials: Income Statement
2014 Preliminary Unaudited Financials: Income Statement [Servicing and subservicing fees $ 7.604 [Gain (loss) on loans held forsale, net 134 lother revenues 83 [Revenue 2a [Compensation and benefits 416 lAmortizaton 250 Servicing and origination 203 [Technology and communications ‘67 Professional se
Slide 17: 2014 Preliminary Unaudited Financials: Cash Flow Statement
2014 Preliminary Unaudited Financials: Cash Flow Statement Thame > ay Jamertizatin of mortgage servicing rights "250, loeeeciton 2 cai oss. on sae of one & MER fir value changes «a Loan hls or esl, net @) JDecreaze in advances and match funded advances m2 20 loner incising OTA valuation allowance) s
Slide 18: Normalized Pre-Tax Income Summary
Normalized Pre-Tax Income Summary me Summary (Sin Millon: [GAAP Income Before Income Taxes Ss (443s 353 [Transition and Transaction Related 42 187 LegavSettiement Expense 186 60 IGoodwill Impairment 420 Discontinued/Sold Operations : i) Funding Related Expenses 1 35 IMSR-Related FV Change rR (43) lo
Slide 19: Consolidated Statement of Cash Flows — Normalized
Consolidated Statement of Cash Flows — Normalized Adjusted Cash Flow from Operations Calculation [Cash Provided by Operating Activities (A) $s 353]8 384 Decrease in Advances and Match Funded Advances (B) 202 295 Funding Eticiency (C) 62% 77% Reduction of Match Funded Libiles (D=B°C) 181 225 [Adjuste
Ocwen Financial — Debt Investor Presentation (April 2015) on 6ix