Slide 1: SFVegas 2023 Investor Presentation
NAVIZENT SFVegas 2023 Investor Presentation February 2023 NASDAQ: NAVI
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements; Non-GAAP Financial Measures The following information is current as of December 31, 2022 (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, 2022 (the “2022 Form 10-K”),
Slide 3: Navient provides technology-enabled education finance and business processing solutions
Navient provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success Our customer-focused, data-driven services deliver exceptional results for clients in education, health care and government Originations
Slide 4: Business Processing, Consumer Lending, Federal Education Loans
Consumer Lending Business Processing Federal Education Loans Total revenue of Originated Generated $138 million $169 million $70 million in reflects our continued of high-quality Private revenue success in managing Education Loans interest rate risk Revenue from In-School originations trad
Slide 5: Federal Education Loans Segment
Federal Education Loans Segment Selected Financial Information and Ratios 4th Quarter & Full Year 2022 Highlights Q4 22 Q4 21 2022 2021 Federal Education Loans ($ In millions) Q4 22 Net Interest Margin: 94 bps Segment net interest margin 0.94% 0.99% 1.01% 0.99% Q4 22 Annualized Net Charge-off Rate:
Slide 6: Consumer Lending Segment
Consumer Lending Segment Selected Financial Information and Ratios 4th Quarter & Full Year 2022 Highlights Q4 22 Q4 21 2022 2021 Consumer Lending ($ In millions) Q4 22 Net Interest Margin: 287 bps Segment net interest margin 2.87% 2.76% 2.81% 2.92% Q4 22 Annualized Net Charge-off Rate : 156 bps Cons
Slide 7: Business Processing Segment
Business Processing Segment Selected Financial Information and Ratios 4th Quarter & Full Year 2022 Highlights ($ In millions) Q4 22 Q4 21 2022 2021 Business Processing Government Services $39 $54 $187 $258 Revenue Q4 22 EBITDA Margin 1: 11% Healthcare RCM Services FY 22 EBITDA Margin 1: 16% $31 $57
Slide 8: Conservatively Managing Capital Structure
Conservatively Managing Capital Structure Long-Term Conservative Funding Approach Managing Unsecured Debt Maturities • Important to maintain our credit ratings which (par value, $ in billions) support ongoing access to the unsecured debt market • We pursue opportunities to repurchase debt in the ope
Slide 9: Education Loan Portfolio Cash Flows
Education Loan Portfolio Cash Flows Projected Projected Life Life of of Loan Loan Cash Cash Flows Flows over over ~20 ~20 Years Years Enhancing Cash Flows $’s in Billions • Generated $1.9 billion of cash flows in FY22 FFELP Cash Flows 12/31/2022 Secured • Returned $0.5 billion to shareholders throug
Slide 10: Navient: A Culture of ESG
Navient: A Culture of ESG • National partnership with Boys & Girls Clubs of America to bring career and college planning resources to support equity for youth • 4 hours paid time each month – equivalent to 6 days per year – for employees to volunteer in their communities • Participant in the Carbon
Slide 11: Navient Student Loan Comparison
Navient Student Loan Comparison In-School Private ReFi Private FFELP1 Education Student Loans Education Student Loans Borrower Student or Parent Student or Parent Student or Parent Co-Signer None Typical Not Typical Lender Eligible banks and private lenders Banks and other private sector lenders Ban
Slide 12: FFELP ABS Characteristics
FFELP ABS Characteristics FFELP ABS Transaction Features Collateral Characteristics • Issue size of $500M+ • Guarantee of underlying collateral insulates bondholders from most risk of loss of principal 1 • Senior and subordinate notes • Amortizing tranches with 1 to 10(+) year • Typically non-discha
Slide 13: Education Lending is an Attractive Opportunity
Education Lending is an Attractive Opportunity Sizable Market With Attractive Yields 1 Leveraging Our Existing Infrastructure to Generate Value Estimated Total Market Annual Originations 2 and Yields ($’s in billions) • Private Education Refinance Loans: Grad PLUS - Using our data and expertise to d
Slide 14: Private Education Loan ABS Characteristics
Private Education Loan ABS Characteristics Private Education Loan ABS Transaction Features Collateral Characteristics • Issue size of $500M+ • Collateralized by loans made to students and parents to fund college tuition, room and • Senior and subordinate notes board - Seasoned assets benefiting from
Slide 15: Private Education Trusts
Private Education Trusts As of the respective cutoff dates for each transaction 2020-2022YTD Navient Issuance Program NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV NAV 20-A 20-B 20-C 20-D 20-E 20-F 20-G 20-H 20-I 21-A 21-B 21-C 21-D 21-E 21-F 21-G 22-A 22-B Bond Amount ($mil) 6
Slide 16: Navient Corporation Appendix
Navient Corporation Appendix Confidential and proprietary information © 2023 Navient Solutions, LLC. All rights reserved. 16
Slide 17: Notes on Non-GAAP Financial Measures
Notes on Non-GAAP Financial Measures (Dollars in Millions) In addition to financial results reported on a GAAP basis, Navient also provides certain performance measures which are non-GAAP financial measures. The following non-GAAP financial measures are presented within this Presentation: 1. Core Ea
Slide 18: Notes on Non-GAAP Financial Measures
Notes on Non-GAAP Financial Measures (Dollars in Millions) 4. Core Earnings Efficiency Ratio – The Core Earnings Efficiency Ratio measures the company’s Adjusted Core Earnings expenses, which exclude restructuring and regulatory-related expenses, relative to its Adjusted Core Earnings revenue. This
Slide 19: Differences Between Core Earnings and GAAP
Differences Between Core Earnings and GAAP Quarters Ended Years Ended Core Earnings adjustments to GAAP: Dec. 31, Dec. 31, 2022 2021 (Dollars in Millions) 2022 2021 GAAP net income (loss) $105 ($11) $645 $717 Net impact of derivative accounting (1) (85) (266) (235) Net impact of goodwill and acquire
Slide 20: Investor Relations Website
Investor Relations Website www.navient.com/investors www.navient.com/abs • Environmental Social Governance (ESG) information - Navient Corporate Social Responsibility • Student loan asset-backed security (ABS) trust data - Static pool information – detailed portfolio stratifications by trust as of t
Slide 21: Confidential and proprietary information © 2023 Navient Solutions, LLC. All rights reserved.
Confidential and proprietary information © 2023 Navient Solutions, LLC. All rights reserved. 21