Onemain Holdings, Inc. · NYSE:OMF
Onemain — Debt Investor Presentation (February 2022)
29 slides from Onemain's debt investor presentation, February 2022
Slide 1: OneMain Social ABS Framework: Supporting Financial Wellness in Rural America
OneMain Social ABS Framework: Supporting Financial Wellness in Rural America February 2022
Slide 2: Important Information
Important Information This presentation does not constitute, or form part of, any offer or invitation to purchase, underwrite, subscribe for or otherwise acquire or dispose of, or any solicitation of any offer to purchase, underwrite, subscribe for or otherwise acquire or dispose of, any debt or oth
Slide 3: Rural and Lower Income Americans Need Responsible Credit
Rural and Lower Income Americans Need Responsible Credit
Slide 4: Our Social ABS Framework builds upon our commitment to support underserved borrowers
Our Social ABS Framework builds upon our commitment to support underserved borrowers RATIONALE Broadens OneMain’s Social Bond program to ABS Promoting financial inclusion in rural communities to lower income borrowers by providing equitable access to credit Underserved Underserved Areas Social Areas
Slide 5: Lower Income Households in Rural Communities lack access to responsible credit
Lower Income Households in Rural Communities lack access to responsible credit USDA1 Federal Reserve2 George Mason University3 • Fewer retail mainstream lending • 65% of adults with family • Lower income borrowers often options, often with exclusionary income less than $50,000 were face credit ratio
Slide 6: Rural America faces challenges
Rural America faces challenges USDA’s Economic Research Service points to fundamental challenges that affect employment, income, and access to essential services1 • Population ‒ Population decreased by 1% (‘10-’20) in rural areas vs. a 9% increase in metro areas ‒ Higher outmigration and historicall
Slide 7: Recent data suggests Rural America is struggling
Recent data suggests Rural America is struggling Rural employment yet to recover from GFC levels1,2 Labor Force Participation Rate; ages 25-541,3 10.0 84% 6.0 83% 2.0 82% 81% -2.0 80% -6.0 79% -10.0 78% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2007 2008 2009 2010 2011 2012 20
Slide 8: Lower Income households have less access to responsible credit and basic financial services
Lower Income households have less access to responsible credit and basic financial services As many as 100MM people live in lower income, economically vulnerable households1 Uneven Access to Credit for Lower Income Consumers1 • Lower income consumers have less access to affordable credit, often turn
Slide 9: OneMain Supports Rural and Lower Income America
OneMain Supports Rural and Lower Income America
Slide 10: OneMain supports Rural America
OneMain supports Rural America of OneMain customers 69% 33% of OneMain customers live in rural areas and have an annual net have an annual net income ≤$50,000 per income ≤$50,000 per year year 46% 89% of Americans live within of OneMain customers 25 miles of a OneMain live in rural areas branch1 ~1,
Slide 11: OneMain serves Rural Communities and Lower Incomes with our extensive branch network
OneMain serves Rural Communities and Lower Incomes with our extensive branch network ▪ 40%+ of rural areas lost bank branches from 2012 to 20171, exacerbating existing challenges – Loan default rates rise when borrowers are not in same geographic market as lender2 – Lack of access to responsible cre
Slide 12: We provide responsible, affordable and transparent lending
We provide responsible, affordable and transparent lending OneMain’s mission is to improve the financial well-being of hardworking Americans by offering responsible transparent financial products • Payments that fit each unique situation and household budget Affordability • Self-cap rates at 36%, ev
Slide 13: Our customers are hardworking Americans
Our customers are hardworking Americans Customer Attributes1 Use of Loan Proceeds 3 Other ~10 YEARS ~40% Family related 12% Debt consolidation 13% 33% In same residence Homeowners ~$45,000 Home repair 12% ~50% 11% 18% Annual net income 2 Auto related Unexpected household Same job for expenses Employ
Slide 14: Social ABS Framework population receives same fair, affordable terms
Social ABS Framework population receives same fair, affordable terms OneMain is committed to the communities in which our team members and customers live and work, evidenced in part by our portfolio being over indexed to supporting rural areas1 Selected attributes as of Total Eligible Rural Lower In
Slide 15: Successful borrower outcomes across our portfolio
Successful borrower outcomes across our portfolio 30+ Delinquency1 Net Charge-offs1 5.0% 5.0% 5.2% 4.8% Total OMF PL Population Rural/Lower Income Total OMF PL Population Rural/Lower Income Highlights A loan you can afford: our ability-to-pay analysis results in lower delinquency and charge-off rate
Slide 16: Social ABS Framework vs. Typical OMFIT Collateral
Social ABS Framework vs. Typical OMFIT Collateral • With our ability-to-pay underwriting, our rural lower income customers received loans they can afford • Cohorts perform in-line with a typical OMFIT collateral pool • Cumulative net loss performance across all vintages best in-class across consumer
Slide 17: Social ABS Framework
OneMain Financial. Social ABS Framework
Slide 18: OneMain Social ABS Framework
OneMain Social ABS Framework After OneMain published a Social Bond Framework in June 2021, this new Social ABS Framework is an extension of our Corporate Social Responsibility strategy • In accordance with the SBPs, the net proceeds of any designated offering of Social ABS (the “Designated ABS Socia
Slide 19: Framework aligns with ICMA and UN goals
Framework aligns with ICMA and UN goals Alignment with 2021 ICMA Social Bond Principles (“SBP”) and UN Sustainable Development Goals (“SDG”) ICMA SBP Alignment Category 1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as
Slide 20: S&P Global Ratings – Second Party Opinion
S&P Global Ratings – Second Party Opinion In our view, OneMain's ABS Social Bond Framework, published on Feb. 8, 2022, is aligned with Social Bond Principles, ICMA, 2021. The ABS Social Bond Framework aligns with OneMain's sustainability objectives to support socioeconomic progress and the financial
Slide 21: OneMain Corporate Social Responsibility
OneMain Corporate Social Responsibility
Slide 22: Our approach to CSR is a natural extension of our mission
Our approach to CSR is a natural extension of our mission OneMain is committed to providing responsible lending solutions to help our customers meet their financial needs and improve their financial well-being Mission: to improve the financial well-being of hardworking Americans Customers Communitie
Slide 23: We are committed to our customers & communities
We are committed to our customers & communities Helped our approximately 55,000 customers in Introduced a new financial education program for Kentucky affected by the December 2021 high school students called “Money Launchpad” tornados with borrower assistance tools and team in partnership with Ever
Slide 24: We focus on financial literacy, online and in our communities
We focus on financial literacy, online and in our communities Featured Articles Guidebooks Community Town Halls Micro-courses Budgeting Tools $267 $320 $427 $480 $199 $239 $318 $358 $166 $199 $265 $298 $147 $176 $235 $264 Note: This calculator is provided only for educational purposes. OneMain does
Slide 25: Our customers reflect the diversity of Americans
Our customers reflect the diversity of Americans and often come to us with a need that isn’t being met Race Gender Generation 18% 37% 47% 28% 14% 52% 62% 3% 27% 2% 3% 2% Caucasian African American Gen Z (<24) Male Female Millenials (25-43) Hispanic Asian Gen X (44-55) Other Baby Boomers (56-74) Grea
Slide 26: Supplier diversity is fundamental to our business
Supplier diversity is fundamental to our business “In 2018, we began partnering with OneMain Financial to deliver strategic value and provide complete risk visibility, remediation prioritization and collaboration across teams. We couldn’t be happier working with OneMain teams. OneMain's leadership i
Slide 27: Appendix
Appendix OneMain Financial.
Slide 28: How we define Rural/Lower Income
How we define Rural/Lower Income Rural America Lower Income America ▪ OneMain uses Claritas Prizm Methodology - originally ▪ OneMain defines “Lower Income” as annual net income of developed in 1976, with multiple ≤$50,000 improvements/refinements ‒ Annual net income represents take-home pay, net of
Slide 29: OneMain Social Bond Overview
OneMain Social Bond Overview Issued $750MM Social Bond in 2021… first by a U.S. based High Yield issuer Demonstrates our commitment to underserved communities that need responsible credit Offering Terms • $750MM bond with 2027 maturity at 3.50% coupon • Proceeds financing a portfolio of OMF loans wi
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