Navient (NAVI) Strategy update presentation summary

Turnaround strategy and phases

• Initial focus on cost reductions and capital allocation, with growth initiatives and further cost reductions planned for Phase 2 in H2 2025.

• Phase 1 includes divestiture of the Business Processing Segment and outsourcing of loan servicing to simplify operations.

Cost reduction impact

• Phase 1 reduces shared and corporate expenses by $119 million, with further reductions expected in Phase 2.

• Increases lifetime cash flows from legacy loan portfolios by approximately $1.5 billion.

• Raises net income by about $1 per share annually and lowers the operating break-even by $120 million per year.

• Lower break-even is equivalent to adding $10 billion in new consumer loans without extra capital.

Consumer segment focus

• Consumer segment now generates over 70% of revenue, up from 40% in 2020.

• Earnest brand is the main growth focus, leveraging strong brand attributes and an online business model.

• Additional capital is being tested for deployment into new and existing products.