Navient Corporation · NASDAQ:NAVI

Navient — SFVegas 2022

23 slides from Navient's conference presentation, July 2022

  1. Slide 1: SFVegas 2022 - Investor Presentation

    SFVegas 2022 - Investor Presentation July 2022

  2. Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures

    Forward-Looking Statements; Non-GAAP Financial Measures The following information is current as of March 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 ended December 31, 2021 (the “2021 Form 10-K”), fil

  3. Slide 3: We are the leader in education loan management and business processing solutions

    We are the leader in education loan management and business processing solutions for education, healthcare and government clients at the federal, state and local levels We help our clients and millions of Americans achieve financial success through our services and support, leveraging our 45+ years

  4. Slide 4: Federal Education Loans Segment “Core Earnings” Basis

    Federal Education Loans Segment “Core Earnings” Basis Selected Financial Information and Ratios 1st Quarter 2022 Highlights ($ In millions) Q1 22 Q4 21 Q1 21 Federal Education Segment net interest margin 1.04 0.99% 0.97% Q1 22 Net Interest Margin: 104 basis points Q1 22 Annualized Charge-off Rate: 7

  5. Slide 5: Consumer Lending Segment “Core Earnings” Basis

    Consumer Lending Segment “Core Earnings” Basis Selected Financial Information and Ratios 1st Quarter 2022 Highlights ($ In millions) Q1 22 Q4 21 Q1 21 Consumer Lending Segment net interest margin 2.80% 2.76% 2.99% Q1 22 Net Interest Margin: 280 basis points Q1 22 Annualized Charge-off Rate : 138 bas

  6. Slide 6: Business Processing Segment “Core Earnings” Basis

    Business Processing Segment “Core Earnings” Basis Selected Financial Information and Ratios 1st Quarter 2022 Highlights ($ In millions) Q1 22 Q4 21 Q1 21 Business Processing Government Services $49 $54 $63 Q1 22 EBITDA Margin 1: 20% Healthcare RCM Services $45 $57 $62 • Revenue of $94 million, as pa

  7. Slide 7: Originating Education Loans is an Attractive Opportunity

    Originating Education Loans 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 expe

  8. Slide 8: Funding & Liquidity

    Funding & Liquidity Confidential and proprietary information © 2022 Navient Solutions, LLC. All rights reserved. 8

  9. Slide 9: Secured Funding

    Secured Funding Navient is an active ABS issuer. • $1.6B YTD ABS issuance in 2022 2020 YE ABS Issuance ($’s in Millions) 2021 YE ABS Issuance ($’s in millions) 1 GM Financial $13,632 Auto 1 Santander $18,634 Auto 2 Ford $12,018 Auto 2 GM Financial $13,413 Auto 3 Santander $11,101 Auto 3 Toyota $10,8

  10. Slide 10: Private Education Loan ABS Issuance Characteristics

    Private Education Loan ABS Issuance 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 • Senior and subordinate notes and board - Seasoned assets benefi

  11. Slide 11: Private Education Loan ABS Transactions

    Private Education Loan ABS Transactions NAVSL 2022-B NAVSL 2022-A Pricing Date: May 17, 2022 February 1, 2022 Settlement Date: May 25, 2022 February 10, 2022 Issuance $714,600,000 $951,900,000 Amount: Collateral: Private Education Refi Loans Private Education Refi Loans Prepayment 20% CPR 20% CPR Sp

  12. Slide 12: Navient Private Education Loan Programs

    Navient Private Education Loan Programs Smart Option Undergrad/Grad/ Med/Law/MBA Direct-to-Consumer (DTC) Origination Channel School School Direct-to-Consumer Typical Borrower Student Student Student Typical Co-signer Parent Parent Parent $10k avg orig bal, 10 yr avg term, in-school $10k avg orig ba

  13. Slide 13: Navient Private Education Loan Programs

    Navient Private Education Loan Programs Consolidation (Legacy) Private Education Refi Private Education Origination (In-School) Origination Channel Lender Lender School College Graduates & Select Non- Typical Borrower College Graduates Student Graduates Typical Co-signer Parent Parent Parent $15k av

  14. Slide 14: FFELP ABS Issuance Characteristics

    FFELP ABS Issuance Characteristics FFELP ABS Transaction Features Collateral Characteristics • Issue size of $500M+ • Guarantee of underlying collateral insulates bondholders from most risk of • Senior and subordinate notes loss of principal 1 • Amortizing tranches with 1 to 10(+) year average lives

  15. Slide 15: FFELP ABS Transactions

    FFELP ABS Transactions NAVSL 2021-3 NAVSL 2021-2 Pricing Date: October 14, 2021 April 12, 2021 Settlement October 28, 2021 April 22, 2021 Date: Issuance $978,500,000 $1,011,600,000 Amount: U.S. Government Guaranteed U.S. Government Guaranteed Collateral: FFELP Consolidation and FFELP Non-Consolidati

  16. Slide 16: FFELP Loan Program Characteristics

    FFELP Loan Program Characteristics Parameter Subsidized Stafford Unsubsidized Stafford PLUS/Grad PLUS Consolidation Borrower Student Student Parents or Graduate Students Student or Parents Needs Based Yes No No N/A Federal Guarantee of Principal 97 - 100% 97 - 100% 97 - 100% 97 - 100% and Accrued In

  17. Slide 17: Navient Private Education Trusts

    Navient 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

  18. Slide 18: Navient Continues to Advance Environmental, Social and Governance Initiatives

    Navient Continues to Advance Environmental, Social and Governance Initiatives Social Initiatives Environmental Initiatives Community partnerships • Ongoing efforts to reduce already low carbon footprint • National partnership with Boys & Girls Clubs of America to • Enterprise-wide emphasis on electr

  19. Slide 19: Navient Corporation Appendix

    Navient Corporation Appendix Confidential and proprietary information © 2022 Navient Solutions, LLC. All rights reserved. 19

  20. Slide 20: 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

  21. Slide 21: Notes on Non-GAAP Financial Measures

    Notes on Non-GAAP Financial Measures (Dollars in Millions) 4. Earnings before Interest, Taxes, Depreciation and Amortization Expense (“EBITDA”) – This metric measures the operating performance of the Business Processing segment and is used by management and our equity investors to monitor operating

  22. Slide 22: Differences Between Core Earnings and GAAP

    Differences Between Core Earnings and GAAP Quarters Ended Core Earnings adjustments to GAAP: Mar. 31, Dec. 31, Mar. 31, (Dollars in Millions) 2022 2021 2021 GAAP net income (loss) $255 ($11) $370 Net impact of derivative accounting (159) (85) (91) Net impact of goodwill and acquired intangible asset

  23. Slide 23: Investor Relations Website

    Investor Relations Website www.navient.com/investors www.navient.com/abs • NAVI / SLM student loan trust data (Debt/asset backed securities – NAVI / SLM Student Loan Trusts) - Static pool information – detailed portfolio stratifications by trust as of the cutoff date - Accrued interest factors - Qua

Navient — SFVegas 2022 on 6ix