Navient Corporation · NASDAQ:NAVI
Navient — Investor Presentation (April 2014)
23 slides from Navient's investor presentation, Apr 17, 2014
Slide 1: Investor Roadshow, Navient, April 2014
Exhibit 99.1 Exhibit Investor Navient April 2014 99.1 Roadshow
Slide 2: Forward-Looking Statements
Forward-Looking The Corporation Mae”) found facts, are risks financing adverse terms things: vendors; Mae and interest demand assumptions the Navient resources. — For Confidential Definition subject date unrealized, additional regulations following and and including of in with changes rate outcomes
Slide 3: Unaudited Pro Forma Condensed Financials note
-Navient Navient’s 2013. described The ended an Please Although formas. statements Confidential The independent, slide unaudited unaudited December refer Unaudited on Navient in historical ofto the page and Navient the pro consolidated previous publicly proprietary 31, 22 “Unaudited is forma Pro inf
Slide 4: The new name in loan management, servicing and asset recovery
The newour Helping Confidential name customers and inproprietary loan management, navigate information the path servicing to © financial 2014 andNavient, asset success recovery Inc. is All everything more rightsthan reserved. we 40stand yearsfor. in the Ourmaking. name symbolizes the expertise, expe
Slide 5: Experienced Management Team
Experienced Jack 30 Somsak 25 John 24 Tim Chief 21 Currently Oversaw Confidential years Hynes, Remondi, Kane, Executive Financial Operating Risk Chivavibul, of the implementation serves Officer financial Management and project Officer Officer as proprietary SLM’s activities services ofTeam Chief SVP
Slide 6: Separation Details: Tax-free Spin-Off
Separation Spin-Off Company Remaining Tax-free Transaction 1:1 Exchange Navient: Sallie Financial All Preferred Navient Timing When-Issued Record Distribution Regular Confidential distribution existing Mae: Date: & Way expects spin-off NASDAQ Company: securities Details Approvals Details Details Com
Slide 7: Strategic Focus: Two Distinct Businesses after Separation
Transaction Strategic Non-Bank Largest Asset Guarantor Student Pro Secured Regulatory For Confidential aForma description Recovery Private Education Assistance Debt Separation Focus Servicing Private Assets Status Entity and $ Education –Unsecured Leading Services proprietary of $148.4 No Education
Slide 8: Investment Highlights
Investment Large, $134bn Average 80% Efficient Largest 12mm Robust Superior Industry $35bn 1.9x Strong Significant Committed Meaningful Opportunistic Additional Note: For Confidential aunsecured of description Financial of customers high capital compliance education student remaining leading operati
Slide 9: High Quality, Fully Funded Education Loan Portfolio
High 97-98% 85% Fully Largest Seasoned Typically Integrated Total FFELP Private Balance Avg. % Note: For Confidential Consolidation Stafford Cosigner aof Loan Quality Education description integrated Financial Education portfolio 77% Portfolio holder of ($bn, non-dischargeable portfolio underwriting
Slide 10: Strong Private Education Credit Performance
Strong Private Low Navient’s Confidential Risk Private Credit: Credit as = Smart of and Charge-Off Education % 12/31/2013 proprietary ofOption, Portfolio Portfolio Rate Legacy Unaudited information Outstanding by Segment Traditional Credit . Pro ©Performance by Forma 2014 Segment Cosigned, Navient,
Slide 11: Large, Scalable Servicing Platform
100% 11% 80% 21.3% 27% 29% 60% 50% 12.6% 9.8% 40% 64% 57% 20% 5.4% 5.6% 10% 3.9% 2.6% 2.3% 1.0% 0% Dec Low Large Serviced Significant 100 80 60 (# 40 020 Payment 11 Servicing Demonstrated History 2011 2013 For Confidential 0$0 servicing $300 $200 20 15 510 2010 0% a25 07 2010 11% Risk 25% 29% 17.3%
Slide 12: Superior Servicing and Compliance Performance
Superior Average Navient 0.50% 0.60% 0.70% 0.80% 0.90% Source: Best-in-class ~250,000 $1.1 Servicing Robust Ability Demonstrated Confidential billion to compliance Department Competitor Quarterly Operating fewer business maintain inand performance; FFELP additional defaulted proprietary % and effici
Slide 13: Education Loan Portfolio Projected Cash Flows
Education Key -Over ~20 ~1.9x Significant Keys Portfolio Interest Continued Enhanced Capital Note: For Projected As FFELP Private Residual Total Combined *Floor Confidential incorrect. Highly Includes Continuing of ayear Portfolio $35bn Secured to description December Financial unsecured cash Credit
Slide 14: Conservative, Highly Funded Balance Sheet
Conservative High Funded ABS, Facilities, $134bn 80% 1Continued For Unsecured $2.8 $3.7 2014 $0.1 -Demonstrated Cash Confidential FFELP Private Strong 3$6.5bn Figures unsecured a$2.5 of Percentage 2015 flow description $58bn student to Pro capital of Term Consolidation Non-Consolidation $2.2 as Term
Slide 15: Focused on Strong Capital Generation and Return
Focused Strong Net Capital Common Share Growth 2014 Outlook –Economic Continue ~30% Return Portfolio 1Fee restructuring distribution) not Confidential 0.50% 12% Reported include anticipate Income businesses Standalonea1 Repurchase payout for predictable excess Generation Usage Release Opportunities
Slide 16: Leveraging Core Strengths to Drive Growth
Leveraging Large Capacity Flexibility Default Delinquency Industry Operating Customized Proven Regulatory Demonstrated Operational Confidential Scale track Prevention leading toEfficiency to Compliance Core process and Servicing and record and acquire compliance technical efficient asset proprietary
Slide 17: Growth Opportunities
Growth Multiple Description FFELP Focus Regulatory $150bn Private Ability Dormant $70bn Servicing Default Origination Department $2.0bn Asset Continue Non-ED State, School Expand Grow Over Confidential $200mn Recovery court market on of by Services Acquisition Education to management of into and Opp
Slide 18: Conclusion
1 Meaningful 65432Conclusion Confidential Large, high Efficient Superior Significant Strong capital operating and and and quality growth large return proprietary predictable scale performance asset opportunities servicing base information cash flow platform generation © 2014 Navient, Inc. All rights
Slide 19: Navient
NAVI=NT.
Slide 20: Appendix
Confidential and proprietary information © 2014 Navient, Inc. All rights reserved. 20 Appendix
Slide 21: Top Holders of FFELP Loans
Profit Top Lender Student Bank Total *Source: Confidential Ten Holders For-Profit of $34 $’s Loan America Not-For-Profit For-Profit Sallie inof and Billions Express FFELP Mae $75 proprietary $3.6 Holders 9/30/2013 Brazos Nelnet $3.6 U.S. Loans Holders Bank ofinformation $25.2 $8.7 FFELP estimates of
Slide 22: Pro Forma Condensed Balance Sheet and Income Statement
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 Differences
Navient Year “Core Net Pro Note: operations Confidential forma impact ended In Earnings” Unaudited accordance Navient “Core isof December and presented. derivative adjustments Earnings” proprietary GAAP Pro with 31, Forma As accounting Article 2013 net anet information result, to income Condensed in