Navient : Strategic Update Tear Sheet

Published: 2025-02-28 12:48:56 ET NAVI

Strategy Update

In January 2024 Navient announced strategic actions to simplify the company, reduce its expense base and enhance flexibility.

Phase 1

Focusing on cost reductions and capital allocation

Phase 1 Cost Reductions

Navient focused on reducing the expense base supporting its loan portfolios and non-growth businesses.

Phase 1 decisions set Navient on a path where this expense base can be reduced by approximately $400 million 1. The expenses related to Earnest, our consumer lending business, are expected to correlate

with origination volume and any future growth initiatives.

Full Year 2023 Core Earnings Total Expenses i

$825 million

Excluding Regulatory & Restructuring Expenses

$105 million

Excluding Earnest-related Expenses

$ 98 million

Total Shared and Corporate Expense

$622 million

Less Healthcare Services-related Expenses

$ 99 million

Total Shared and Corporate Expense2

$523 million

Less Government Services-related Expenses

$186 million

Less expected additional cost reductions

$133 million

Adjusted Continuing Expense Base i

$204 million

Phase 2

Focusing on growth initiatives, cost of equity / valuation, and additional cost reductions

Expect a Phase 2 update in H2 2025.

1 Reduction estimates are based on full-year 2023 expenses when excluding growth potential in the consumer lending segment as well as regulatory and restructuring costs.

2 As reported in the January 30, 2025 Strategy Update Presentation

Published February 24, 2025

FORWARD-LOOKING STATEMENTS AND DISCLAIMER

The following information is current as of December 31, 2024 (unless otherwise noted) and should be read in connection with Navient Corporation's "Navient" Annual Report on 2023 Form 10-K for the year end December 31, 2023 (the "2023 Form 10-K"), filed by Navient with the Securities and Exchange Commission (the "SEC") on February 26, 2024 and subsequent reports filed by Navient with the SEC. Definitions for capitalized terms in this presentation not defined herein can be found in the 2023 Form 10-K. This presentation contains "forward-looking statements," within the meaning of the federal securities law, about our business, and prospectus and other information that is based on management's current expectations as of the date of this presentation. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements and often contain words such as "expect," "assume," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "may," "could," "should," "goals," or "target." Such statements are based on management's expectations as of the date of this release and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Navient 2023 Form 10-K and subsequent reports filed by Navient with the SEC. The preparation of our consolidated financial statements also requires management to make certain estimates and assumptions including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect and actual results could differ materially. All forward-looking statements contained in this release are qualified by these cautionary statements and are made only as of the date of this release. The company does not undertake any obligation to update or revise these forward-looking statements except as required by law.

Disclaimer

Navient Corporation published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 17:46:49.601.