Onemain Holdings, Inc. · NYSE:OMF
Onemain — Debt Investor Presentation (June 2016)
22 slides from Onemain's debt investor presentation, Jun 15, 2016
Slide 1: Direct Auto Program Investor Presentation
Direct Auto Program ea ve Investor Presentation OneMain Holdings, Inc. nein.
Slide 2: The Leading Consumer Finance Company
ar P va OneMain. The Leading Consumer Finance Company Lending Made Personal (- V $13.2 of branch receivables to over 2 million customers! a) ¥ 87% of Americans live within 25 miles of one of OneMain’s 1,837 branches) \.“ Four central servicing center facilities complement branch network ( Y Ability-
Slide 3: OneMain Overview
car 4 * vat OneMain. OneMain Overview Lending Made Personal = OneMain Holdings bri two leading = Successful Direct Auto business launched in 2014 at Springleaf and in 2016 at inane OneMain = With 1,800+ locations and 10,000+ team the f millions of Americans = NYSE listed (OMF) current market cap of
Slide 4: Strong Business Model Built on Simple Concepts
4 OneMain. Strong Business Model Built on Lending Made Personal Simple Concepts = Local with — Borrowers visit branch to close loan — Verify Income — Inspect and photograph collateral = 100+ years of consumer lending — Underwrite to each customer’s ability to pay Fully licensed in every state we do
Slide 5: Significant Addressable Consumer Market
$%OneMain. Significant Addressable Consumer Lending Made Personal Market = Americans have over $3.4T in consumer debt!) = 63% of U.S. households do not have at least $1,000 in savings”), and more than 40% of households have n ) 0 emergency savings") to credit for a large portion of the American popu
Slide 6: Customer Demographics
ae * vat OneMain. Customer Demographics Lending Made Personal %OneMain. JSpringleat Financial Customer base representative of American population Age Siyr. 49 yr. He 59% = OneMain and Springleaf have similar borrower omeowners yrs. yrs. rofiles ) ‘$46,000 ‘$46,000 = Borrowers typically have stable j
Slide 7: Loan Products
car 4 ta¢ OneMain. Loan Products Lending Made Personal Springleaf Q1 2016 Originations®) Springleaf Direct Auto Portfolio Top 10 Vehicles Direct Hard Age Avg Loan Auto Secured — Unsecured Rank Model Make Balance SILVERADO Chevy $15,224 ‘Avg. Loan Size $14,930 $6,662 $4,592 2 fORDeise: «said 14601 Si
Slide 8: Direct Auto Lending
oe vg OneMain. ; ; = Matbieclld Direct Auto Lending .ct Auto was launched in 2014 as an extension of Springleaf’s Hard Secured Personal Loan Product; citerieg borrowers a larger, lower rate product Business led by a team of ired primarily from Wells Fargo Borrowers must pass our = Di igination model
Slide 9: Experienced Auto Management Team
“9 OneMain. Lending Made Personal Experienced Auto Management Team Leadership Team picosats nen coo EVP Auto Lending asec Background * COO for Global Lending Services (2012-2014) (automotive subprime lender) Respon: S Manoges the Direct Auto Product, Wells Fargo Direct Lending Operations from 1986-
Slide 10: Nationwide Centralized Operations
ae OneMain. ; ; ; ; (wing iaiePecon, Nationwide Centralized Operations 1 Pre-Acq. Footprint Y/; Current Expanded ; ootprint® Centralized Operational hts 5 Over 1,200 central underwriting and servicing FTEs compliment our 1,800+ branch network i6states 5 geographically diverse centers = All 60+ delin
Slide 11: Rigorous Borrower Underwriting
car 4 ° ratOneMain. Rigorous Borrower Underwriting Lending Made Personal —. — _Charact — Collateral ——, {__income/ability to pay} (_witingness to pay} (_ Additional foan'support _} Application = Customer information is collected in person, over the ph online Sourcing . ditional data used to build th
Slide 12: Highly Effective Servicing Model
4% OneMain. Lending Made Personal Highly Effective Servicing Model Branch Processes Local presence and personal relationship: Merchant referrals Loan applications/processing Documentation and verification Personal loan underwriting Loan closing and funding Relationship management <60+ days past due
Slide 13: Direct Auto: All 30+ Day Delinquency Outcomes
4% On eMain, Direct Auto: All 30+ Day Delinquency Lending Made Personal Outcomes ee 5 Feb16 Mart6 __ [oat Wowie | CesT Sepis =CurrfiomPayment| ao% | 88% | 180% 184% sRollsime | 00% | 0% | 9.0% 1956 follbener 0% | a0% | 1.0% a7 = Payols 008 | 00% | 2.0% 14% moter aon | oom | Ls ox = Banleuptey 0.0% |
Slide 14: Time Tested Credit Performance
car 4 ° vg OneMain. - mis Prabal Time Tested Performance Our extensive underwriting and servicing experience has generated robust credit performance through cycles Net Charge-off% 12% 5.99% 2.61% 2% 0% + 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ©2013 «2014 =«2015 a e) Direct
Slide 15: Auto ABS Industry Comps
4% OneMain. Lending Made Personal Auto ABS Industry Comps (BoneMain § @crs Gp omic’ FLAGSHIP ‘OneMain CPS2016-B __WLAKE 2016-2 AMCAR 2016-2__ FCAT 2011 rt Originations 100.0% 0.5% - - 14.7% 25.6% 28.1% 0.0% 99.5% 100.0% 100.0% 85.3% 74.8% 71.9% ct ‘Avg. Curent Loan Bal $14,930 $15,879 $10,945 $18,71
Slide 16: Springleaf Direct vs. Indirect Performance
8% OneMain. Springleaf Direct vs. Indirect Lending Made Personal Perf ormance = Direct A ts : Indirect (MeIGN4) 7.00% 6.00% 5.67% 5.00% 5.10% 4.02% 4.00% 20% 2.92% 2.00% 1.00% 1.17% 0.00% Indirect - CarFinance === Indirect - Flagship += Indirect - SDART === Indirect - First Investors —— Direct - Fir
Slide 17: Springleaf Direct Auto Performance
4 OneMain. Lending Made Personal Springleaf Direct Auto Performance Direct Auto Cumulative Losses by Quarterly Vintage") 7.00% 2.00% 1.66% 1.17% 1.00% 0.65% OTT. 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 siezm = SaesM— $204M. $220M $236M $175M (Smilions) | ene?) | Current % Outstanding ?)
Slide 18: Appendix
$f OneMain. Lending Made Personal A Pp p' en dix
Slide 19: Direct Auto Loan Illustration
S ; vat OneMain. Direct Auto Loan Illustration Lending Made Personal . vehicle) = The charts below illustrate the four product types using Cash-Out Refi (72%) Free & Clear (19%) mp fox sazan0 rox s2gqn0 ‘av, Balance: $11,553 = “Avg, Balance: $16,632 ‘ve, WAC: 18.05% vga 169 ex s24qn0 = ‘avg. ATV: 11
Slide 20: Servicing and Loss Mitigation Tools
ry : a? OneMain. Servicing and Loss Mitigation Tools Lending Made Personal Customer Service / Loss Mitigation no * Deli is = Shi ion of loan . : Customer a pieieiption ability to resume making full * Borrowers must be able to * Addresses short term cash flow reduction of ‘nccme * Cannot exceed 1 cur
Slide 21: Compliance and Regulation
ae . raOneMain. rpg Compliance and Regulation Lending Made Personal £ Regulatory Approach Cc. pb 1. Licensed in every state we do business Fair Lending 2. Voluntarily cap loans at 36% Fair Servicing 3. No Madden v. Midland risk Fair Products CFPB Consumer Lending Larger Participant Rules = June 2015
Slide 22: Liquidity and Funding
“9 OneMain. Liquidity and Funding Lending Made Personal Revolving Term ABS, and multi-year revolving Bank Conduits Liquidity Funding Diversity $0.8B in cash and cash equivalents as of 3/31/2016 — Add’! $0.6B cash from Lendmark sale in 2Q16 Forward funding from existing revolving term ABS $4.75B of c
OneMain Holdings — Debt Investor Presentation (June 2016) on 6ix