Onemain Holdings, Inc. · NYSE:OMF

Onemain — Springleaf Holdings — Barclays Leveraged Finance Conference 2014

14 slides from Onemain's conference presentation, May 14, 2014

  1. Slide 1: Springleaf Holdings, Inc. - Barclays Leveraged Finance Conference

    Springleaf Holdings, Inc. Barclays Leveraged Finance Conference May 2014 CONFIDENTIAL & PROPRIETARY 1

  2. Slide 2: Qualification and Safe Harbor Disclaimer

    Qualification and Safe Harbor Disclaimer This presentation does not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. Non-GAAP Financial Measures We present Core Earnings (Historic

  3. Slide 3: Springleaf Overview

    Springleaf Overview  For over 90 years Springleaf has offered responsible alternatives for borrowers seeking affordable personal loans – Fixed rate and fully amortizing loans with level monthly payments and no balloons or prepayment penalties – Over 830 branches across 26 states; 72% have been open

  4. Slide 4: Large Non-prime Borrower Demand, Limited Lender Supply

    Large Non-prime Borrower Demand, Limited Lender Supply  Uniquely positioned to capitalize on supply-demand imbalance within the non-prime lending space  Large and Growing Non-Prime Population: 122 million Americans earn less than $72,000(1)  Limited Liquidity: 40% of Americans do not believe they

  5. Slide 5: Few Lending Alternatives for Non-prime / Near-prime Market

    Few Lending Alternatives for Non-prime / Near-prime Market  Of those institutions still lending today: – Banks mainly lending to prime borrowers – Payday lenders under intense regulatory scrutiny  Springleaf offers a responsible alternative for borrowers seeking convenient and affordable personal

  6. Slide 6: Springleaf Personal Loan Underwriting

    Springleaf Personal Loan Underwriting Capacity Character Collateral Income/ability to repay Willingness to repay Additional loan support  Time tested underwriting principles produce consistently strong performance  Springleaf's rigorous underwriting and risk scores are managed centrally to maintai

  7. Slide 7: Springleaf Customer Profile

    Springleaf Customer Profile  Borrowers typically have consistent income and solid job history but are often credit or liquidity constrained – Borrowers rely on our loans for: • Loan Consolidations • Home/Auto Repair • Medical Bills • Unexpected Life Events  Borrowers are under-banked not unbanked

  8. Slide 8: Springleaf Personal Loan Profile

    Springleaf Personal Loan Profile Springleaf makes 3 types of personal loans Customer distribution (1)    Hard Secured: predominantly by automobiles (first lien)  59% Present Customers  Soft Secured: collateralized by untitled consumer assets  32% New Customers (e.g. household goods)  9% Forme

  9. Slide 9: Consistent Performance Through Multiple Economic Cycles

    Consistent Performance Through Multiple Economic Cycles Portfolio Delinquencies Compare Favorably… …And So Do Portfolio Losses 5.18% 3.66% 4.93% 2.98% 3.81% (1) (3) 2.60% Subprime Auto (2) Private Label Card (2) Springleaf charge-offs have withstood multiple economic cycles 20.0% Bankruptcy Reform E

  10. Slide 10: Expanding Risk Adjusted Yield

    Expanding Risk Adjusted Yield  Risk adjusted yield has grown almost 1000 bps over the last 5 years, including an increase of 60 bps q-o-q(1)  Enhanced analytics driving real time risk-adjusted pricing Gross Yield Continues to Trend Up (1,2) 30.0% 26.3% 26.9% 25.8% 25.4% 25.0% 24.1% 22.9% 20.0% 15.

  11. Slide 11: Regulatory Framework & Compliance

    Regulatory Framework & Compliance  State Regulation  Subject to supervision by state financial regulators and the Indiana Department of Insurance  Over 800 state exams conducted each year  Licensed in all 50 states  Positive exam results with no material findings  Federal Regulation  CFPB wil

  12. Slide 12: Liquidity and Funding

    Liquidity and Funding As of 3/31/14  Strong and stable liquidity position – ~$760 million cash on hand as of 3/31/14 Diversified Funding Sources – $1bn committed undrawn funding capacity ABS Consumer from 3 money-center banks Securitizations(1,2) Unsecured/ RMBS 26% Hybrid – $350mm annual net cash

  13. Slide 13: Q1 Earnings Highlights

    Q1 Earnings Highlights ($ in thousands) 1Q14 4Q13 1Q13 Consumer & Insurance(1) $48,822 $41,015 $40,231 Acquisitions & Servicing(2) 30,658 35,831 0 Pretax Core Earnings(3) $79,480 $76,846 $40,231 Estimated Income Taxes(4) (29,408) (28,433) (14,885) Core Earnings $50,072 $48,413 $25,346 Net Income (Lo

  14. Slide 14: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings

    Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings (unaudited, in thousands) 1Q14 4Q13 1Q13 1 1 Push-Down Accounting Pretax Income (Loss) Attributable to Springleaf $82,842 $12,542 ($13,877) 2 Interest Income (36,867) (45,976) (50,180) 3 Interest Expense 28,560 34,898 35,336

Springleaf Holdings — Barclays Leveraged Finance Conference 2014 on 6ix