Slm Corporation · NASDAQ:SLM
Slm — Merger or Acquisition (May 2013)
11 slides from Slm's merger presentation, May 29, 2013
Slide 1: Separating to Enhance Value and Increase Growth Potential
Exhibit 99.2 Separating to Enhance Value and Increase Growth Potential MAY 29, 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This investor presentation contains “forward-looking statements” and information based on management’s current expectations as of the date of this release, including the planned separation of Sallie Mae’s portfolios holding federally guaranteed and private education loans,
Slide 3: Sallie Mae's Progress Post-2008
Sallie Mae’s Progress Post-2008 Major achievements across all facets of the business: Liquidity, Earnings, Capital Management, Credit Quality & Operations Built leading private education lending platform Consistent access to low-cost funds through ABS issuance and consumer deposits Significantly red
Slide 4: Separate Into Two Distinct Businesses
Separate Into Two Distinct Businesses NewCo Sallie Mae Bank Strategic Leading education loan management Leading private education loan origination Focus company franchise – retains Sallie Mae brand Key FFELP Loan Portfolio Largest Private Education Loan Originator Non-Bank Private Education Loan Por
Slide 5: Rationale for Separation of Businesses
Rationale for Separation of Businesses Provide greater visibility into the financial and operating performance of each business Allocate capital in a more efficient and customized manner for each business Create strategic flexibility and increase management focus Attract a more focused shareholder b
Slide 6: Key Business Metrics & Financial Attributes
Key Business Metrics & Financial Attributes $ in billions, except per share amounts NewCo Sallie Mae Bank Key Financial Total Assets Total Assets $164.8 $9.9 Metrics FFELP Loans $118.1 Private Loans $5.9 Private Loans $31.6 Other Assets $4.0 Other Assets $15.1 Deposits $7.8 Unsecured Debt $17.9 Capi
Slide 7: NewCo Profile
NewCo Profile Strategy Strengths Expand leading education loan portfolio Leading market share and infrastructure manager, servicer, and collection business well-positioned for evolving market place Maintain stable dividend and actively Substantial institutional knowledge and manage capital structure
Slide 8: NewCo Profile
NewCo Profile $ in billions NewCo Net Assets Projected Life of Loan Cash Flows Net Assets FFELP Cash Flows Secured FFELP Net Assets $6.4 Secured Residual $9.4 Secured Private Net Assets 6.7 Floor 2.8 Net Tangible Assets 7.9 Servicing 4.9 Total Net Assets $21.0 Total Secured $17.0 Unencumbered $0.9 U
Slide 9: Sallie Mae Bank Profile
Sallie Mae Bank Profile Strategy Strengths Help families save and pay for college The most-recognized brands in the through responsible loan, insurance, and education loan industry savings products Leading market share (~47%) in private Continue to grow the market leading loan originations Private E
Slide 10: Sallie Mae Bank Profile
Sallie Mae Bank Profile Balance Sheet Overview Private Education Loan Growth Assets Loan Origination FFELP Loans $1.1 $4.0 Private EducationLoans 5.9 $3.3 $2.7 Other $2.3 2.9 Total Assets $9.9 Liabilities 2010 2011 2012 2013E Bank Deposits $7.8 Origination Market Share (%) Other Liabilities 0.5 Tota
Slide 11: Proposed Transaction Details
Proposed Transaction Details The separation would be effected via a tax-free spin-off to Sallie Mae shareholders Proposed Upon completion of the transaction, Sallie Mae’s then current shareholders would own 100% of the Transaction common stock of both NewCo and Sallie Mae Bank, each of which would b