Onemain Holdings, Inc. · NYSE:OMF

Onemain — J.P. Morgan FinTech & Specialty Finance Forum 2016

29 slides from Onemain's conference presentation, Nov 30, 2016

  1. Slide 1: Lending Made Personal

    Se OneMain. Lending Made Personal OneMain Holdings, Inc. (NYSE: OMF) J.P. Morgan FinTech & Specialty Finance Forum November 30, 2016 po . vee OneMain. Lending Made Personal

  2. Slide 2: Important Information: Forward-Looking Statements

    4 5 ow OneMain. Important Information Lending Made Personal Cautionary Note Regarding Forward-Looking Statements cpa: appes oe ly. elev sats ‘Stes tose mens "pans’ poets od sm epesons hare or conven uh would” -shoue “el "may: ow are mended ent forwar aig sleet Import

  3. Slide 3: Important Information: Use of Non-GAAP Financial Measures

    4 5 ow OneMain. Important Information Lending Made Personal Use of Non-GAAP Financial Measures

  4. Slide 4: The Leading Consumer Finance Company

    <e 5 eo? OneMain. The Leading C Finance C Lending Made Personal OneMain is America’s premier consumer finance company Leading National Footprint Company Overview®) 88% of Americans live within driving distance of us = 1,800+ branches in 44 states = $13.5B Consumer & Insurance (“C&I”) receivables* =

  5. Slide 5: Our Business Model

    Ss OneMain. Our Business Model Lending Made Personal Our business model 10% unk d returns Our Business Model = Disciplined underwriting = Scale drives operating leverage = Balanced receivables growth = Target 20%+ return on equity and modest tangible leverage (5 — 7x) Consistent Unlevered Returns“)

  6. Slide 6: Disciplined Underwriting

    a7 OneMain. Disciplined Underwriting Lending Made Personal Springleaf underwriting has been tested through multiple credit cycles Springleaf net charge-offs have averaged ~5.5% over the last 20 years 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  7. Slide 7: Providing Credit to Working Americans

    ae . "ae OneMain. Providing Credit to Working Americans Lending Made Personal omer Demographics" Financial Condition Age 49 years Borrower Income $47,700 Homeowner 53% Average FICO™ 622 Time in Residence 12 years Have a Checking Account” 95% Current Job for >5 Years 65% Have a Credit Card 62% Borrow

  8. Slide 8: Our Products are Differentiated

    ys 5 Ya OneMain. Our Products are Differentiated Lending Made Personal Loans designed to meet the financial needs of Working Americans P| saa ‘OneMain Delt Personal loan | saad Auto Repair Consolidation 12% 37% ‘Avg. Subprime ) OneMain Auto Loan Credit Card '$500- $2,500 Average APR Household ils 21

  9. Slide 9: Acquisition Creates Value

    a * “ss OneMain. Acquisition Creates Value Lending Made Personal Ce ing branch in ion unlocks ial potential earnings Pre-acquisition Profile! $3.75 -$4.00 Wii, in. il $3.60 - $3.70 ae Onehain DSpringleat es __ Receivables (>) 28 Growth 220%) 17% — Secured Gsm) Lending Operatin ~ pense Ratios 13% 201

  10. Slide 10: 3Q16 Financial Performance

    ae ° “a OneMain. 3Q16 Financial Performance Lending Made Personal {Sinmlins, except per share statstes) Delivering strong unlevered returns of 10%+ Earnings Summary C&I Return on Receivables Trends*”) 3Q16 2016 + 3Q15 1016 2Q16 3016 Consumer & Insurance* $196 $210 $77, ‘Revenue 28.3% © 28.2% 28.1% A

  11. Slide 11: Disciplined Underwriting

    ry ow OneMain. Disciplined Underwriting Lending Made Personal Shift toward secured lending expected to enhance future credit performance Secured Loan Share of C&I Portfolio C&I Net Charge-Off Ratio* Outlook 72-76% % 12/31/2015, 9/30/2016 12/31/2017 Est. ‘2018E LTM Net Charge-Off Ratio by Product!) S

  12. Slide 12: Integration Activities To Date

    Ss OneMain. Lending Made Personal Integration Activities To Date Integration Activities Our branches focus on personal loan origination and servicing Realigned HQ and field management Aligned credit underwriting and customer offerings Rebranded Springleaf to OneMain Introduced Direct Auto and mercha

  13. Slide 13: Remaining Integration Activities

    S@ OneMain. . Remaining Integration Activities Lending Made Personal Our branches focus on personal loan origination and servicing Integration Activities Integration Impacts 1Q17 planned actions Expected impacts * Potential increase in 30-89 day delinquencies at OneMain Loan origination and servicin

  14. Slide 14: Opportunities for Growth

    e 7 Ya OneMain. Opportunities for Growth Lending Made Personal Completing branch integration expected to accelerate receivables growth Borrower Demand Increased Bookings Expanded Product Suite * Applications have grown = Early Direct Auto results = New systems expected to ~10% annually since 2013 su

  15. Slide 15: Compelling Investment Opportunity

    ae ° "ae OneMain. Compelling Investment Opportunity Lending Made Personal Our business model is g 10% returns C&I Adjusted Diluted EPS* Our Business Model = Execute on growth opportunity = Scale drives operating leverage Target 20%+ return on equity and modest tangible leverage (5 — 7x by 2H18) 2018

  16. Slide 16: Lending Made Personal

    $% OneMain. Le ing Made Personal

  17. Slide 17: Consolidated Income Statement

    1e < ; 27 OneMain. Consolidated Income Statement Lending Made Personal (GAAP) Finance Charges $763 $m $785 $643 $22 $4,870 sig 7 18 46 a 5 # 6 a1 50, a7] [_4930 1973] Interest Expense (215) (210) (226) (215) a7) (715) (3) fool for Ri ia (263) (214) te) (483) (79) (716) (423) Ea 33, 408 (8) a7] [9 #1

  18. Slide 18: Consolidated Balance Sheets

    & OneMain. Consolidated Balance Sheets Lending Made Personal (GAAP) Prior to 310-30 Policy change {unaudited in milions) 9/30/16 6/30/16 3/31/16 12/31/15 12/31/15 Cash and Cash etiie $658 sma s7i6 $939 $939 Investment Se 1,788 1,744 1.872 1,867 1,867 Hine Tecslaes sonal Loans & i Sales Finance 13,66

  19. Slide 19: Reconciliation of Non-GAAP Measures

    Ty ' ee OneMain. Reconciliation of Non-GAAP Measures Lending Made Personal (unaudited miions) 3016 2036 1016 4035 3015 Pretax Income (Loss) Atvibutable toOMH- GAAP basis $33 $12 $224 ($331) (s12) (5353) $735 GAAP to Segment Accounting Basis Adjustments: Interest Income oe 106 136 100 a) 9 (9) Intere

  20. Slide 20: Reconciliation of Non-GAAP Measures

    Ss OneMain. Lending Made Personal Reconciliation of Non-GAAP Measures (unaudited, n millions) Adjustments: [Net Loss on Repurchases and Repayments of Debt ie nee oe Related Transaction and Integration Expenses, est hatnanes Co Ajman: "Net Loss on Repurchases and Repayments of Debt Net os on Fir Valu

  21. Slide 21: Reconciliation of Non-GAAP Measures

    Lending Made Personal a7 OneMain. Reconciliation of Non-GAAP Measures (unaudited, n millions) 306 4035 3015 "Net Finance Receivables Consumer & insurance $13,485 $13,304 $12,984 $12,954 saoaa fenin & Servicing ° 0 0 1,703 1,789 “ a 210 29 sad 565, san 7 30 35 a 43 B72 13561 15,263 Gar] Segment to GA

  22. Slide 22: Consumer and Insurance Segment

    Ss OneMain. Lending Made Personal Consumer and Insurance Segment (non-GAAP) (unaudited, in millions, except pe share statistics) 3016 2016 1016 qs 3015 Fis Fis Finance Charges $827 $817 $807 3621 $293 $1,439 $916 0 4 2 4% ° 43 ° a Bi 9 ca 2s3] [4,482 316] Interest Expense (as) (285) (175) (223) (aa)

  23. Slide 23: Acquisitions and Servicing Segment

    Acquisitions and Servicing Segment a7 OneMain. Lending Made Personal (non-GAAP) conti = = ee Interest income Py Py sie sus $163 $515 Interest xp ° ° (20) (20) (2) (en @) Provision for Finance Recetvabe Losses ° ° as) 5) 05) (69) (105) a a B 76) [308 358] Investment ° ° 0 ° ° s 5 Portfolio Servicing

  24. Slide 24: Real Estate Segment

    & OneMain. Real Estate Segment Lending Made Personal (non-GAAP) ort = = ee Finance Charges a sa sa sa sue sss 54 7 3 3 4 3 3 2 10 as 15 16 7 [ Ce 406 } Interest fxpense ® rm) 3) (5) (38) (212 59) Provision forFinance Receivable losses « @) @) 6) 4 2 (228 a a o (2a) am] [aay 175) Investment ° 1 ° 9 a

  25. Slide 25: Other

    “OneMain. Other Lending Made Personal (non-GAAP) (nasi miions) 3036 a6 a6 4035 sas Interestincome st st st 7 Interest Expense 0 a @ (25) 56) @) Provision fr Finance Receivable Losses ° ° o @) 0 o o @ Gs] (a 3] other ° ° ° ° ° 1 o 0 o a [ o a] Operating Expenses a @ 1 a (5) a Other z Adjusted Pretax

  26. Slide 26: Consumer & Insurance Pro forma Reconciliation

    2*One Main. consumer & Insurance Pro forma Reconciliation aie Made Personal (unaudited, n millions) 3016 2016 1016 40s 3015 [GAAP Pretax income (Loss) Attributable to OMH § $208 $331) (312) Acquisition & Servicing 2 Q (26) (28) (20) al Estate / Other 8 8 B 39 @ Netosson Repurchases and Repayment of

  27. Slide 27: Consumer & Insurance Pro forma Financials

    a7 OneMain. Lending Made Personal Consumer & Insurance Pro forma Financials (unaudited, n millions) 3016 21 1016 as 01s Finance Charges $827 $817 $807 $799 $818 ° a e 0 Ea oo a oo Interest Expense (a1) (185) (75) (260) (161) rge-Orts (236) (259) (27) 03 Recoveries 23 20 ‘Net Charge Offs 10) B31) 54)

  28. Slide 28: Consumer & Insurance Pro forma Metrics

    e 5 e@ OneMain. Consumer & Insurance Pro forma Metrics Lending Made Personal (unaudited, n millions) 4as sas Revenue 28.1% 28: 283% 28% 235% ‘Net charge-offs” (6.2%) (7.0%) (75%) (6.5%) (55%) 2% 2%. 208% Ed BOK Operating Expenses (9.2%) (10.0%) (10.3%) (10.8%) (10.7%) RoR 0% 1%. 105% Interest Expens

  29. Slide 29: Consumer & Insurance Unlevered Metrics

    Ss OneMain. Lending Made Personal Consumer & Insurance Unlevered Metrics (unaudited, in millions) 2011 2012 2013 2014 2015 Revenue $2,784 $2,867 $3,061 $3,385 $3,613 Net Charge-Offs (598) (571) (591) (67) (819) [Risk Adjusted Margin 2,186 2296 2,470 2,708 798 ‘Operating Expense (2,234) (2,169) (3,22

OneMain Holdings — J.P. Morgan FinTech & Specialty Finance Forum 2016 on 6ix