Slide 1: 4Q and FY 2013 Earnings Presentation
4Q and FY 2013 Earnings Presentation Three Months and Twelve Months Ended December 31, 2013 March 11, 2014
Slide 2: Important Information
Important Information The following slides are part of a presentation by Springleaf Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides are c
Slide 3: Non-GAAP Financial Measures
Non‐GAAP Financial Measures We present core earnings as a “non‐GAAP financial measure” in this presentation. This measure is derived on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Please refer to the Appe
Slide 4: Highlights
Highlights ($ in mm) 4Q12 3Q13 4Q13 FY 2012 FY 2013 Consumer & Insurance(1) $15 $45 $40 $88 $204 Acquisitions & Servicing NA 28 36 NA 110 Pretax Core Earnings(2) $15 $73 $76 $88 $314 Estimated Income Taxes(3) (6) (25) (28) (33) (116) Core Earnings $9 $48 $48 $55 $198 Net Income (Loss) Attributable t
Slide 5: Springleaf Overview
Springleaf Overview Springleaf offers responsible alternatives for borrowers seeking affordable personal loans through a nationwide branch network and online platform – Fixed rate and fully amortizing, level monthly payments and no balloons or prepayment penalties Nationwide Footprint Branch Offic
Slide 6: Branch Receivables Growth and Scalability
Branch Receivables Growth and Scalability Proven History of Scalability Strong Consumer Receivables Growth Consumer Receivables Per Branch ($ mm)(1) Consumer Receivables ($ mm)(1) $4.0 $3,500 $3.8 $3,141 $3.6 $3,000 $2,545 $3.5 $3.4 $2,389 $2,414 $2,500 $3.1 $3.1 $2,000 $3.0 $1,500 $2.5 $1,000 $2.5
Slide 7: Growth in Average Receivables per Branch
Growth in Average Receivables per Branch Branches managing over $5 million of receivables have more than doubled since YE 2012 (47 → 113) Branches managing under $3 million of receivables have decreased ~50% since YE 2012 (498 → 258) Additional room for growth with minimal incremental investme
Slide 8: Consumer Loan Performance
Consumer Loan Performance Risk adjusted yield has grown almost 1000 bps over the last 5 years(1) Enhanced analytics driving real time risk‐adjusted pricing Risk Adjusted Yield Trending Up(1,2) 30.0% 25.8% 25.0% 24.1% 22.9% 21.7% 20.4% 20.0% 15.0% 12.1% 22.0% 15.6% 18.9% 20.5% 10.0% 5.0% 8.3% 6.1
Slide 9: Consumer Loan Performance - Credit
Consumer Loan Performance ‐ Credit Seasonality typically drives higher fourth quarter charge‐offs – Gross charge‐offs of 5.5% for 4Q13, representing a decline of 14 bps from 4Q12 – Recoveries in 2H13 lower due to the sale of previously charged‐off finance receivables in June 2013 Charge‐off Season
Slide 10: SpringCastle Portfolio
SpringCastle Portfolio Springleaf equity investment of $210 million at acquisition Portfolio has exhibited solid performance since April ’13 acquisition; servicing transferred to Springleaf in Sept. ‘13 – Pre‐tax earnings for 4Q13 and YTD 2013 of $36 million and $110 million, respectively; inclu
Slide 11: Mortgage Portfolio Overview at 12/31/13
Mortgage Portfolio Overview at 12/31/13 Agreement to sell $1 billion of real estate mortgage receivables; projected gain of approximately $55 million and projected net cash of approximately $800 million Total Mortgage Portfolio Sold Portfolio Remaining Portfolio Projected Net Cash(1): Projected Ne
Slide 12: Liquidity and Funding
Liquidity and Funding Strong and stable liquidity position Term Loan – ~$430 million cash on hand 6% – $1bn committed undrawn funding capacity from 3 Consumer Total Debt: Securitizations(2) Unsecured/ $12.7bn(4) money‐center banks Hybrid 24% 40% Deep and diversified funding sources Driving dow
Slide 13: 4Q13 Summary Financial Results
4Q13 Summary Financial Results ($ in mm) 4Q12 3Q13 4Q13 FY 2012 FY 2013 Consumer & Insurance(1) $15 $45 $40 $88 $204 Acquisitions & Servicing NA 28 36 NA 110 Pretax Core Earnings(2) $15 $73 $76 $88 $314 Estimated Income Taxes(3) (6) (25) (28) (33) (116) Core Earnings $9 $48 $48 $55 $198 Net Income (
Slide 14: 2014 Guidance
2014 Guidance Core Consumer Operations(1) FY 2013A FY 2014E Range Consumer Net Finance Receivables at YE $3.14bn $3.60bn — $3.75bn Consumer Yield 25.84% 26.75% — 27.25% Consumer Risk Adjusted Yield(2) 22.03% 22.00% — 23.00% SpringCastle Pretax Earnings $110mm $85mm — $105mm (1) Net Finance Receivabl
Slide 15: Financial Supplement
Financial Supplement PDSpringleaf 15
Slide 16: Consolidated Income Statement (PGAAP)
Consolidated Income Statement (PGAAP) (unaudited, in millions, except per share statistics) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Interest Income $580 $585 $417 $2,158 $1,706 2 Interest Expense (220) (228) (239) (920) (1,068) 3 Provision for Finance Receivable Losses (192) (159) (110) (532) (338) 4 Net I
Slide 17: Core Earnings (Non-GAAP)
Core Earnings (Non‐GAAP) (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Interest Income $364 $351 $156 $1,212 $585 2 Interest Expense (65) (60) (40) (221) (141) 3 Provision for Finance Receivable Losses (119) (99) (44) (250) (91) 4 Net Interest Income after Provision 180 192 72 741 353 5
Slide 18: Core: Consumer & Insurance Segment (Historical)
Core: Consumer & Insurance Segment (Historical) (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Interest Income $201 $188 $156 $721 $585 2 Interest Expense (38) (38) (40) (149) (141) 3 Provision for Finance Receivable Losses (65) (38) (44) (117) (91) 4 Net Interest Income after Provision 9
Slide 19: Core: Acquisitions & Servicing Segment
Core: Acquisitions & Servicing Segment (unaudited, in millions) 4Q13 3Q13 2Q13 FY 2013 1 Interest Income $161 $163 $167 $491 2 Interest Expense (25) (22) (25) (72) 3 Provision for Finance Receivable Losses (54) (61) (18) (133) 4 Net Interest Income after Provision 82 80 124 286 5 Servicing Fees 19 1
Slide 20: Non-Core: Real Estate Segment (Historical)
Non‐Core: Real Estate Segment (Historical) (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Interest Income $162 $171 $194 $698 $823 2 Interest Expense (120) (131) (157) (543) (672) 3 Provision ‐ TDR (44) (28) (54) (190) (150) 4 Provision ‐ Non‐TDR (24) (15) (23) (71) 99 5 Net Interest Inco
Slide 21: Non-Core: Other (Historical)
Non‐Core: Other (Historical) (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 Interest Income $9 $10 $17 $46 $100 2 Interest Expense (4) (3) (8) (15) (34) 3 Provision for Finance Receivable Losses (3) (3) (2) 0 (10) 4 Net Interest Income after Provision 2 4 7 31 56 5 Investment Income 0 (0)
Slide 22: Reconciliation – Push-Down Accounting to Historical / Pretax Core Earnings
Reconciliation – Push‐Down Accounting to Historical / Pretax Core Earnings (unaudited, in millions) 4Q13 3Q13 4Q12 FY 2013 FY 2012 1 1 Push‐Down Accounting Pretax Earnings $11 ($120) ($97) ($36) ($307) 2 Interest Income (46) (52) (52) (202) (198) 3 Interest Expense 34 33 37 141 221 4 Provision for F