Investor Presentation by jolinmilioncherie

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									Investor Presentation
  February 14 – 15, 2006
Safe harbor statement

        We would like to remind you that there will be forward
        looking statements made during this company
        presentation.


        The forward looking statements may differ materially from
        actual results and are subject to certain risks and
        uncertainties.


        The company does not intend to update any forward
        looking statements made during this presentation.




                                            2
Contents

       Tab
       1 Corporate overview
             • Growth company and growth industry
             • Diversified revenue streams
             • Economies of scale
       2 Legislative update
       3 Financial highlights
       4 Appendix 1 – Federal Family Education Loan Program “101”
       5 Appendix 2 – Executive biographies




                                     3
Our story
Who is Nelnet?

        We are a growth company in a growth industry
        with sustainable competitive advantages, including:


                 Diversified revenue streams

                 Economies of scale

                 High quality earnings




                                      5
 Growth industry
    Higher education enrollment (in millions)                                                       Annual cost of education1 ($000)
                                                                19.5
                                                             19.3                                                                                                         21.2
                                                         19.1
                                                     19.0
                                                 18.8
                                                                                                                                                                    20.5
                                                                                                                                                                                 Education
                                                                                                                                                             19.9
                                             18.6                                                                                                     19.4                       costs are
                                         18.4                                                                                                  19.1

                                                                                                                                                                                 projected to
                                    18.0
                                                                                                                          17.5
                                                                                                                                 18.0 18.0
                                                                                                                                                                                 increase at
                               17.7
                                                                                                                   16.7
                                                                                                                                                                                 double the rate
                          17.4
                                                                                                            16.0                                                                 of inflation.
                    17.1
                                                                                                     15.5
                16.9                                                                          15.3

                                                                                       14.7
          16.6                                                                  14.4



          '02    '03   '04E '05E '06E '07E '08E '09E '10E '11E '12E '13E '14E   '93    '94    '95     '96   '97    '98     '99    '00    '01    '02    '03    '04   '05    '06


      Average student loan balance ($)                                                  Student loan origination volume
                                                                                                                                                                     $71.8
                                                                                        ($ in billions)                                                         $67.6
                                                           $26,000
                                                                                                                                                        $63.8
                                                                                                                                                $60.2
                                                                                                                                        $56.8
                                              60%                                                                               $53.7
                                                                                                                        $52.1
                                   $16,250
                                                                                                                $45.4
                       91%                                                                         $39.7
                                                                                               $37.4
          $8,500



           '97                        '02                    '07E                               '00     '01      '02      '03 '04E '05E '06E '07E '08E '09E

Source: ED, Octameron Associates, NCES
1Annual average tuition at private, four-year institutions using constant 2005 dollars
                                                                                                            6
Growth company
 Net Student Loans
         (In billions)                                  Total Assets                $22.8
                                                            (In billions)

                                        $20.3
                                                                            $15.2
                                $13.5                            $11.9
                    $10.5                            $9.8
  $8.6




  2002               2003       2004    2005         2002         2003      2004    2005
                                        $649


   Total Equity                 $456
     (In millions)
                         $305
                                                    51% or $6.8 billion net
   $109                                             student loan asset growth
                                                    from a year ago
   2002                  2003    2004   2005



                                                7
Diversified revenue and asset generation streams
Products and services




 529 Plan Savings Plan         Enrollment management            Third Party Servicing
 Administration                    Foresite Solutions              Nelnet Loan Services
    Nebraska 529 Plan

                               E-commerce                       Private Loan Servicing
 Tuition Payment Plan              infiNET                         Firstmark
 Administration
     FACTS
                               School based channel             Canadian Loan Servicing
                                  Nelnet brands                   EDULINX
 College Planning Center          Branding partners
     Nelnet developed             Forward flow partners
                                                                Guaranty Agency Servicing
                               Direct to consumer channel         GuaranTec
 Direct Marketing and              Nelnet developed               College Access Network
 Student Recruiting
     Student Marketing Group   Software solutions
     National Honor Roll           IFA                          Collection Agency Services
                                   Charter                          Premiere Credit
                                   5280




                                                            8
Growing diversified loan origination platform                                                                         $8.5
  — Spot acquisitions
  — Branding & forward flow partners
  — Nelnet brands & consolidation                                                                                      $3.2
        (Dollars in billions)




                                                                                                      $4.1
                                                                                                        $0.2           $2.5
                                                                     $3.1
                                                                       $0.3                             $1.8
                                     $2.1
                                                                       $1.4
     $1.4                              $0.5
       $0.3                                                                                                            $2.8
                                       $1.1                                                             $2.1
       $1.0                                                            $1.4
                                       $0.5
       $0.1
      2001                             2002                            2003                            2004           2005


  Note: Direct channel excludes consolidation of existing assets. Information presented for 2002 and prior has been
        adjusted for estimated consolidations of our existing portfolio.




                                                                                   9
Nelnet’s industry position
A company that is recognized as a market leader with economies of scale

        Top FFELP loan holders(1)                                                                       Top FFELP loan servicers(2)
        Top FFELP loan holders(1)                                                                       Top FFELP loan servicers(2)
          Rank      Manager                    ($bn)
                                                                                                        Rank      Manager                     ($bn)   Canadian serviced
               1    Sallie Mae                 $85.1
                                                                                                          1       Sallie Mae                  $96.0   portfolio $8 billion.
               2    Citibank                    21.5
                                                               $19.8 billion                              2       Nelnet                       21.2   Total full serviced
               3    Nelnet                      12.4                                                                                                  portfolio $35 billion
                                                               As of 12/31/2005                           3       AES (PHEAA)                  21.0
               4    First Union                 10.1
                                                                                                          4       ACS                          20.0     As of 12/31/2005
               5    Wells Fargo                   8.6
                                                                                                          5       Great Lakes Ed Loan Svcs     19.0
               6    Brazos                        7.5
                                                                                                          6       Citibank                     15.1
               7    College Loan Corp             6.3
                                                                                                                  Others                       61.4
               8    PHEAA                         5.4
                                                                     • Servicing efficiencies                     Industry Total             $254.0
               9    Southwest Student Svcs        4.7
            10       Goal Financial               4.0                • Financing efficiencies
        Top FFELP Stafford & Plus loan originators(3)                                                   Top FFELP loan consolidation originators(4)
        Top FFELP Stafford & Plus loan originators(3)                • Marketing breadth                Top FFELP loan consolidation originators(4)

         Rank      Manager                       ($bn)                                                   Rank      Manager                    ($bn)
           1       Sallie Mae                    $4.21                                                        1    Sallie Mae                $10.72
           2       Bank One                       3.93                                                        2    Nelnet                      2.97
           3       Citibank                       3.42                                                        3    Citibank                    2.73
                                                                                        (5)
                                                                       Payment Plans    (5)
           4       Nelnet                         2.84                 Payment Plans                          4    Collegiate Funding          2.27
           5       JP Morgan Chase                2.55
                                                              Rank     Manager                                5    College Loan Corp           1.97
           6       Bank of America                2.41
                                                                1      Facts                  650,000         6    Brazos                      1.76
           7       Wells Fargo                    2.25
                                                                2      AMS/SLMA               350,000         7    Goal Financial              1.69
           8       First Union National           1.89
           9       U.S. Bank                      1.12          3      TMS                    300,000         8    AELMAC/Southwest St.        1.54
          10       Access Group                   1.06          4      Key Bank                75,000         9    Education Lending Group     1.35
                                                                                                           10      Suntrust Bank                .75

 (1) Source: Nelnet and DOE as of September 30, 2004
 (2) Source: SLSA Servicing Volume Survey, December 31, 2004
 (3) Source: Nelnet and DOE as of September 30, 2004; Includes Nelnet franchise affiliated partners
 (4) Source: DOE as of September 30, 2004
 (5) Source: Nelnet based upon industry estimates as of December 31, 2005
                                                                                               10
Reauthorization process will create
changes to the program
    Higher education act (HEA) is reauthorized every five to six years
    Program changes resulted during this reauthorization process through S. 1932 (the Deficit Reduction Act of
    2005) including the following major provisions impacting our program
          Borrower interest rates – 6.8% Stafford and 8.5% PLUS fixed borrower interest rates for loans first
          disbursed on/after 7/1/2006. Retains current law for consolidation loan fixed interest rate calculation
          Lender yield – fixes PLUS SAP gap and rebates excess floor income on all loans disbursed on/after
          4/1/2006
          Annual loan limits – expands PLUS program to include graduate and professional students effective
          7/1/2006, increases 1st and 2nd year Stafford loan maximums to $3,500 and $4,500 and graduate
          unsubsidized Stafford maximum to $12,000 effective 7/1/2007
          Lender insurance – 97% guarantee for all loans first disbursed on/after 7/1/2006 and 99% exceptional
          performer for all loans effective 7/1/2006
          Additional – Extended the Taxpayer Teacher Protection Act 9.5% provisions permanently, In-school
          consolidations are no longer allowed and 9.5% loan recycling within tax-exempt debt eliminated for
          most lenders including Nelnet and phases it out for all lenders by 2010
    Changes will help ensure long-term viability of the program
    President signed S.1932 February 8, 2006 extending Title IV provisions of the HEA through 2012
    President’s FY 2007 Budget does not contain any recommended cuts to the student loan program


                                                               11
High quality earnings



     Conservative business approach with transparent accounting

             No gain on sale
             No dilutive stock options
             Balance sheet quality
             Limited intangibles




                                         12
Financial highlights
Solid historical growth of the balance sheet
Selected Balance Sheet Items                                                                                       Unaudited
(Dollars in thousands)                                    As of                As of              As of              As of
                                                       December 31,       December 31,         December 31,       December 31,
                            Assets                         2002                2003                2004               2005
Student loans receivable, net                      $        8,559,420          10,455,442          13,461,814          20,260,807
Cash, cash equivalents, and investments                      916,572            1,155,215           1,302,954           1,645,797
Goodwill                                                          2,551                2,551              8,522              99,535
Intangible assets, net                                        21,358                   9,079          11,987             153,117
Other assets                                                  266,682             309,899             374,728             639,366
   Total assets                                    $        9,766,583          11,932,186          15,160,005         22,798,622

            Liabilities and shareholders' equity
Bonds and notes payable                            $        9,447,682          11,366,458          14,300,606          21,673,620
Other liabilities                                            209,779              260,239            403,224             474,884
   Total liabilities                                        9,657,461          11,626,697          14,703,830         22,148,504

Minority interest in subsidiaries                                     -                    -                  -                626

Shareholders’ equity                                          109,122             305,489             456,175             649,492
   Total liabilities and shareholders' equity      $        9,766,583          11,932,186          15,160,005         22,798,622
Ratios:
Net student loans to total assets                             87.64%               87.62%             88.80%                 88.87%
Shareholders' equity to total assets                              1.12%                2.56%              3.01%              2.85%
Tangible equity to total assets                                   0.87%                2.46%              2.87%              1.74%


                                            Net student loan CAGR 33%
 Long-term issuer credit ratings:
 Standard & Poor’s BBB+/Moody’s Investor Service Baa2
                                                                          13
Financial highlights
Solid historical earnings growth

Condensed Income Statement                                                                                 Unaudited
(Dollars in thousands)                                 Year ended       Year ended         Year ended      Year ended
                                                      December 31,     December 31,       December 31,    December 31,
                                                          2002             2003               2004            2005
   Net interest income                            $         185,029            171,722         398,166         329,097
Less provision (recovery) for loan losses                     5,587             11,475            (529)          7,030
   Net interest income after provision (recovery)
   for loan losses                                          179,442            160,247         398,695         322,067
Other income:
 Loan servicing and other fee-based income*                 105,160            102,959          98,661         188,134
 Software services and other income*                         22,781             19,017          25,868          17,201
 Derivative mkt. value adj. and net settlements                (579)            (2,784)        (46,058)         78,846
   Total other income                                       127,362            119,192          78,471         284,181
Operating expenses:
 Salaries and benefits                                      106,874            124,273         133,667         172,732
 Other expenses                                             123,713            108,768         109,084         150,174
  Total operating expenses                                  230,587            233,041         242,751         322,906
   Income before income taxes                                76,217             46,398         234,415         283,342
Income tax expense                                           27,679             19,295          85,236         102,220
   Net income                                     $          48,538             27,103         149,179         181,122




        *Note: The amounts for other income have not been
        reclassified for the 2005 presentation
                                                                          14
Financial highlights
Base net income reconciliation
Selected Financial Data
(Dollars in thousands)                                                                                             Unaudited
                                                      Year ended         Year ended           Year ended          Year ended
                                                     December 31,       December 31,         December 31,        December 31,
                                                         2002                2003                2004                2005
GAAP net income                                  $           48,538             27,103             149,179            181,122
Base adjustments:
 Derivative market value adjustments                            600               1,183             11,918             (95,854)
 Amortization of intangible assets                           22,200              12,766              8,768               9,479
 Variable-rate floor income                                 (49,800)            (12,830)              (348)                  -
    Total base adjustments before income taxes              (27,000)                1,119           20,338             (86,375)
    Net tax effect                                           10,260                  (425)          (7,728)             32,823
    Total base adjustments                                  (16,740)                 694            12,610             (53,552)
Base net income                                  $           31,798             27,797             161,789            127,570

Earnings per share, basic and diluted:
  GAAP net income                                $              1.08                 0.60               2.78                3.37

  Base net income                              $                0.71                 0.61                3.02                2.37
  Special allowance yield adjustments (a)                       0.00                 0.00               (2.00)              (0.91)
  Base net income, excluding the special allowance
    yield adjustments (a)                      $                0.71                 0.61               1.02                1.46

(a) The special allowance yield adjustments are net of derivative settlements and taxes.
Note: 2003 net income included approximately $10.3 million ($8.3 million tax effected) of expenses related
to the initial public offering such as, contract terminations and non-cash compensation.




                                                                               15
Interest rate sensitivity
Fixed rate portfolio composition
    (Dollars in millions)                      Borrower/lender   Estimated                 December 31, 2005
                                                  weighted        variable                 balance of fixed rate
                                                average yield conversion rate*                   assets
    Assets earning at fixed rate:
       Fixed borrower rate bucket
           7-8%                                            7.51%               4.87%        $                384
           >8%                                             8.54%               5.90%        $              1,040
           9.5% Floor yield                                9.50%               6.86%        $              3,485
       Assets earning at fixed rate                                                         $              4,909



    Fixed rate liabilities and derivatives:
        Fixed rate debt                                                                     $                519
        Fixed rate swaps and derivatives                                                    $              3,838
          Total fixed rate liabilities and derivatives                                      $              4,357

    Percent of fixed rate portfolio funded with fixed rate liabilities and derivatives:
      Total                                                                                               88.8%

          *The estimated variable conversion rate is the estimated short-term interest rate at which loans would
          convert to variable rate.




                                                                     16
Fundamental value

        We are a growth company in a growth industry
        with sustainable competitive advantages, including:


                 Diversified revenue streams

                 Economies of scale

                 High quality earnings




                                      17
Questions and discussion


                      18
Appendix 1:
Federal Family Education Loan Program
Student Loans 101
Federal Family Education Loan Program (FFELP)
Student Loans 101
    Government guaranteed collateral
        Loans are originated under the FFELP
        Properly serviced FFELP student loans are entitled to at least a 98% guarantee (97% for
        loans first disbursed on/after 7/1/2006) from the US Department of Education (ED)…while a
        student loan servicer is designated as an Exceptional Performer, loans are guaranteed at
        100% of principal plus interest (99% on/after 7/1/2006)
        Guaranty agencies act as clearing houses to pay claims for the ED, however the ultimate
        credit risk lies with the US Government
    Government subsidized
        Generally, Stafford and PLUS borrowers pay a floating rate of interest; consolidation borrowers
        pay a fixed rate (Stafford, PLUS and Consolidation Borrower interest rates will be fixed for loans first
        disbursed on/after 7/1/2006)

        Through “Special Allowance Payments” (SAP) by the US Government, the holder of the loan (i.e.
        Nelnet) earns the greater of the borrower interest rate or the borrower interest rate plus the SAP
        margin (Effective for loans first disbursed on/after 4/1/2006, lenders will always earn the SAP rate…any
        excess interest will be rebated to the ED)

        SAP ensures holders of FFELP student loans receive a market rate of return even as interest
        rates fluctuate

    Repayment features
        Multiple Stafford and PLUS loans can be consolidated into one longer term (10-30 year
        repayment), with a fixed interest rate to the borrower. Consolidation loans are eligible
        for SAP which creates a variable rate loan to the holder in rising rate environments
        If returning to school or suffering financial hardship, borrowers have the option to defer
        payments for up to 3 years while interest
        continues to accrue
                                                            20
FFELP Student Loans 101
                        Mechanics                                                                               Rein
                                                                                                                    sura
                                                                                                                           nce
                                                                                                                               claim
                                                                                                               Rein
                                                                                       SAP / ISP                   sura
                                                                                                                          nce
                                                                                                                              $
                                   Payment of principal &
                                         interest                                                           Claim package


                                                                                                             98% guarantee
                                                           ds
                                                  f   un
                                              rse
 Financial aid & loan                       bu                                 tio
                                                                                   n
                                      Dis                                  lica
     application                                                         pp                             Lender requests guarantee
                                                                   n   a
                                                              oa
                                                      ie   dl
                                                 rtif
                                               Ce                                                           Guarantee issued



        FFELP Loans remain eligible for ED guarantee so long as servicers follow specified due diligence
        guidelines such as initiating certain collection procedures and maintaining accurate loan records
        Nelnet is one of the best performing servicers in the industry and has received the Exceptional
        Performance status by ED. Historical net losses due to ED guarantee ineligibility have ranged
        from 1/2 to 5 bps annually
        Special allowance payments (SAP) and interest subsidy payments (ISP) from the ED ensure that
        FFELP loan holders receive a market rate of return; while borrowers may pay either fixed or
        floating rates of interest, the holder receives the greater1 of the borrower interest rate
        and 90-day CP or 91-day T-bill plus a margin of 1.74% to 3.50% based on the type of
        loan (Stafford, PLUS, Consolidation), status of the loan (in-school, grace,
        repayment), and date of disbursement
  1) For loans disbursed on/after 4/1/2006 lenders will always earn the SAP rate,
  any excess interest will be rebated to ED
                                                                                                   21
FFELP Student Loans 101
Special allowance payment (SAP)
Subsidized and Unsubsidized Stafford Loans
Date of loan                         Annualized SAP rate
On or after 10/01/1981        T-Bill Rate less Applicable Interest Rate + 3.50%
On or after 11/16/1986        T-Bill Rate less Applicable Interest Rate + 3.25%
On or after 10/01/1992        T-Bill Rate less Applicable Interest Rate + 3.10%
On or after 07/01/1995        T-Bill Rate less Applicable Interest Rate + 3.10% (1)
On or after 07/01/1998        T-Bill Rate less Applicable Interest Rate + 2.80% (2)
On or after 01/01/2000        3 Month Commercial Paper Rate less Applicable
                              Interest Rate + 2.34% (3)
(1)   Substitute 2.5% in the formula while loans are in-school, grace or deferment status.
(2)   Substitute 2.2% in the formula while loans are in-school, grace or deferment status.
(3)   Substitute 1.74% in the formula while loans are in-school, grace, or deferment status.

PLUS, SLS and Consolidation Loans
Date of loan                            Annualized SAP rate
On or after 10/01/1992     T-Bill Rate less Applicable Interest Rate + 3.10%
On or after 01/01/2000     3 Month commercial Paper Rate less Applicable Interest Rate + 2.64%
                           (Consolidation loans are subject to a 1.05% annualized loan rebate fee)


Loans currently or previously financed with tax exempt bonds issued prior to 10/01/1993
T-Bill Rate less Applicable Interest Rate + 3.50%

                           2
The SAP may not be less than 9.5% less the Applicable Interest Rate.


                                                                    22
FFELP Student Loans 101
Description of 9.5% loans
       The Higher Education Act (the “Act”) spells out the 9.5% Floor SAP provisions
                Loans are called “9.5% Floor Loans” because the Act effectively establishes a minimum 9.5%
                rate of return on these loans
       FFELP loans currently or previously financed with tax-exempt bonds originally issued prior to October
       1, 1993 are eligible to receive 9.5% Floor SAP
       The performance of these 9.5% loans varies by interest rate environment:
                High interest rates:         9.5% Floor Loans loans earn only half SAP
                Low interest rates:          Potential for large excess spread between the 9.5% floor and
                                             prevailing interest rates

                              Timeline of 9.5% floor loan legislation



  Bill introduced in          General Accounting            Public Law 108-409           The temporary bill
  Congress to, among          Office published report       (H.R. 5186) eliminated       passed in October 2004
  other things, remove        describing, among other       payment of the 9.5%          became permanent as
  the 9.5% floor              things, provisions of the     floor SAP for new            part of the Deficit
  provisions in the           Act that permitted            loans previously             Reduction Act of 2005
  future                      growth of 9.5% Floor          financed with pre-           signed by the President
                              Loans among many              October 1, 1993 tax-         on 2/8/2006. Also
                              student loan industry         exempt bonds effective       eliminates 9.5% yield to
                              participants. Report          October 1, 2004              recycled loans in pre-
                              recommends Act be             through January 1,           1993 tax-exempt bonds
                              changed to eliminate          2006                         for majority of lenders
                              payment of 9.5% floor

                                                                    23
FFELP Student Loans 101
Loan limits
       Stafford Loans - Subsidized and Unsubsidized

       $   2,625 - 1st academic year undergraduate ($3,500 effective 7/1/2007)
       $   3,500 - 2nd academic year undergraduate ($4,500 effective 7/1/2007)
       $   5,500 - per academic year remaining undergraduate
       $   8,500 – per graduate academic year

       Graduate and independent undergraduate students are also eligible for
       additional Unsubsidized Stafford Loan Funds.
       $ 4,000 – 1st and 2nd academic year undergraduates
       $ 5,500 – additional academic years of undergraduate
       $ 10,000 – graduate students ($12,000 effective 7/1/2007)

       $ 46,000 – Maximum aggregate undergraduate borrowing

       $138,500 – Maximum aggregate undergraduate and graduate borrowing
                  ($140,500 effective 7/1/2007)

       Loan limits for PLUS Loans

       PLUS Loans made on or after 07/01/1993 are limited only by the student’s
       unmet need (Eligibility extended to graduate students effective 7/1/2006)



                                                     24
FFELP Student Loans 101
Borrower interest rates
      Stafford Subsidized and Unsubsidized Loans:
      Borrower interest rate for loans originated on or after 07/01/1998 and before 07/01/2006
      Calculation:
      Adjusted annually, based upon last auction in May of the bond equivalent rate of 91-day
      U.S. Treasury bills plus 1.7% per annum for in-school, grace and deferment, plus 2.3%
      per annum during repayment, not to exceed 8.25%. Currently 4.70% and 5.30%
      (6.8% fixed rate for loans first disbursed on/after 7/1/2006)
      PLUS Loans:
      Borrower interest rate for loans originated on or after 07/01/1998 and before 07/01/2006
      Calculation:
      Adjusted annually, based upon last auction in May of the bond equivalent rate of 91-day U.S.
      Treasury bills plus 3.1% per annum, not to exceed 9%, currently 6.10%
      (8.5% fixed rate for loans first disbursed on/after 7/1/2006)
      Consolidation Loans:
      Borrower interest rate for loans originated from applications received
      on or after 10/01/1998
      Calculation:
      Will be equal to the lesser of 8.25% or the weighted average of the interest rates
      on the loans being consolidated, rounded to the nearest higher 1/8th of 1%.


                                                       25
FFELP Student Loans 101
Overview of the payment and guarantee process

        US student loans are ultimately 98% to 100% guaranteed by the US Government
        (97% for loans first disbursed on/after 7/1/2006)
        Guaranty agencies will reimburse the lender 98% (97% for loans first disbursed
        on/after 7/1/2006) or for exceptional performers 100% (99% for claims filed on/after
        7/1/2006) if the borrower defaults as long as the servicing has been done properly
        If the guaranty agency becomes insolvent, the federal government is required to pay
        lender claims directly or reassign the guarantee obligation to another agency
        As per section 432(o) of the Higher Education Act, 20 U.S.C.S. §1082(o):
        CONSEQUENCES OF GUARANTY AGENCY INSOLVENCY. – In the event that the
        Secretary has determined that a guaranty agency is unable to meet its insurance
        obligations under this part, the holder of loans insured by the guaranty agency may
        submit insurance claims directly to the Secretary and the Secretary shall pay to the
        holder the full insurance obligation of the guaranty agency, in accordance with
        insurance requirements no more stringent than those of the guaranty agency. Such
        arrangements shall continue until the Secretary is satisfied that the insurance
        obligations have been transferred to another guarantor who can meet those
        obligations or a successor will assume the outstanding insurance obligations




                                                   26
FFELP Student Loans 101
Flow chart of loss protection for investors in structured debt transactions




                                             27
Appendix 2:
Executive biographies

Key Contacts:
Mike Dunlap         Chairman & Co-CEO         402.458.3032
Steve Butterfield   Vice-Chairman & Co-CEO 480.947.7703
Jeff Noordhoek      President                 402.458.3072
Terry Heimes        CFO                       402.458.2303
Cheryl Watson       CCO, Investor Relations   317.469.2064
Jim Kruger          Controller                402.458.2304
Sheila Odom         Director, Corp. Comm.     402.458.2329


                                 28
Biographies
 Michael S. Dunlap, 42, is Nelnet’s Chairman and Co-Chief Executive Officer. From December 2001 until August 2003, Mr. Dunlap served as
 Nelnet’s President and sole Chief Executive Officer, and from January 1996 to December 2001, he served as Chairman of Nelnet’s predecessor.
 Mr. Dunlap has been a member of the Nelnet Board of Directors since 1989. Mr. Dunlap is currently the Chairman of the Board, InfoVisa, and non-
 executive Chairman of Union Bank and Trust Company, a Nelnet affiliate where he has held various positions for approximately 20 years, including
 Chief Executive Officer. Mr. Dunlap is also a Director and President of Farmers & Merchants Investment Inc., the parent of Union Bank and Trust
 Company and a Nelnet affiliate. Mr. Dunlap serves on the President’s Community Council for Union College and the Board of Directors for the
 University of Nebraska Foundation. He currently serves as Chairman of the Education Committee of the Young Presidents’ Organization, Nebraska
 Chapter. In addition, Mr. Dunlap is a member of the Board of Directors of First National Life Insurance Company USA, Linweld, Inc., Capital
 Casualty Company, and BankFirst of Norfolk. Mr. Dunlap is a member of the Nebraska State Bar Association. He received a B.S. degree in
 Finance and Accounting in 1986 and a J.D. degree from the University of Nebraska in 1988.


 Stephen F. Butterfield, 53, has served as Nelnet’s Co-Chief Executive Officer since August 2003, and as the Vice Chairman since March
 2000. He served as Vice Chairman and a Director of Nelnet’s predecessor since January 1996. Mr. Butterfield is responsible for managing our
 capital market relationships and investor relations. Mr. Butterfield directs our overall management and direction, including asset purchasing,
 marketing of corporate services, and coordination of our capital market activities. Mr. Butterfield has been involved in the student loan industry
 since January 1989, first as president of a for-profit student loan secondary marketing facility located in Scottsdale, Arizona, and second as
 president of the Student Loan Acquisition Authority of Arizona, a non-profit secondary marketing facility in Scottsdale, Arizona. Prior to his work in
 the student loan industry, Mr. Butterfield spent 15 years as an investment banker, the last four years of which for Boettcher and Company,
 specializing in municipal finance. Mr. Butterfield received his B.S. degree in business administration from Arizona State University.


 Jeffrey R. Noordhoek, 39, is Nelnet’s President. In this role, Mr. Noordhoek has broad oversight responsibilities of Nelnet, Inc. and focuses
 on strategic planning and growth initiatives with Co-Chief Executive Officers Mike Dunlap and Steve Butterfield. In addition, he oversees Nelnet's
 Merger and Acquisitions, Capital Markets, Investor Relations, Government and Industry Relations, and Corporate Communications departments.
 Noordhoek most recently served as Nelnet's Chief Capital Markets Officer, and has been an integral member of Nelnet's capital markets
 group since 1996. Previously, Mr. Noordhoek served as Senior Vice President of National Education Loan Network Inc, a
 subsidiary of Nelnet, until October 2002. Prior to that, he served as a Vice President of Nelnet's predecessor Union Financial
 Services, Inc. Before joining Nelnet, Mr. Noordhoek served seven years in various capacities, including as a Senior Associate
 for State Street Capital Corporation where he assisted in the establishment of commercial paper conduit financing vehicles.
 While at State Street, Mr. Noordhoek worked at its offices in Luxembourg, Toronto, and Boston and successfully executed
 securitizations in numerous asset classes. Mr. Noordhoek earned a B.S. degree in business administration from the
 University of Nebraska in 1988 and an M.B.A. from Boston University in 1996.



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Biographies
 Terry J. Heimes, 41, has served as our Chief Financial Officer and as Executive Director in charge of Finance since March 2001. He is
 responsible for the coordination of all financial and accounting functions. Active in our strategic planning and direction, Mr. Heimes oversees the
 preparation and issuance of financial statements, corporate accounting/tax matters, and our asset-backed securitization and warehousing
 activities. Mr. Heimes served as our Director from March 2001 until August 2003. In October 1998, in connection with the conversion
 and acquisition of NEBHELP, Mr. Heimes became the vice president of finance of National Education Loan Network, Inc., a
 subsidiary of Nelnet. Prior to joining NEBHELP, Mr. Heimes worked for the public accounting firm of KPMG LLP in Lincoln,
 Nebraska, through 1992 as a manager in the audit department. Mr. Heimes graduated magna cum laude from the University
 of Nebraska-Kearney with a B.S. degree in business administration with an emphasis in accounting in 1986.



 Cheryl E Watson, 44, is Nelnet’s Chief Communications Officer and is responsible for the company’s debt and equity investor relationships,
 government and industry relations and corporate communications. She serves as the company's site executive for the Indianapolis office, and also
 provides oversight to the company's subsidiary Premiere Credit. Watson also participates in the company's strategic planning and capital markets
 initiatives. Ms. Watson has served on the Nelnet Board of Directors from April 2002 until August 2003. Ms. Watson has held financial service
 positions in education lending and private industry for over 20 years, including 13 years at Sallie Mae. Ms. Watson has extensive background in
 developing, negotiating, and managing financial instruments. Prior to joining Nelnet, she served as a consultant for a venture capital firm pursuing
 investment in education finance companies. At Sallie Mae Ms. Watson held several high profile positions before becoming President and Chief
 Financial Officer of USA Group Secondary Market Services and concurrently serving as Vice President and Treasurer of Sallie Mae Servicing,
 LLP. Ms. Watson currently serves on the Board of Directors for the Greater Indianapolis Area YMCA, Indiana Wesleyan PACE, Central Indiana
 Junior Achievement Experiential Learning Foundation, and as Treasurer for the Riverview Hospital Foundation. She earned a B.S. degree with a
 major in accounting from Indiana University in 1985, is a Certified Public Accountant, a member of the American Institute of Certified Public
 Accountants and the Indiana CPA Society, and the National Investor Relations Institute.




                                                                              30
Biographies
 James D. Kruger, 42, is Nelnet’s Executive Director and Controller. He is responsible for coordination of all financial accounting functions.
 Mr. Kruger oversees the preparation and issuance of financial statements, corporate accounting/tax matters, and our asset-backed
 securitization and warehousing activities. Mr. Kruger served as Director from March 2001 until August 2003. In October 1998,
 in connection with the conversion and acquisition of NEBHELP, Mr. Kruger became the Assistant Vice President of Finance of
 National Education Loan Network, Inc., a subsidiary of Nelnet. Prior to joining NEBHELP, Mr. Kruger worked for the public
 accounting firm of KPMG LLP in Lincoln, Nebraska, through 1994 as a Senior Manager in the audit department. Mr. Kruger
 graduated from the University of Nebraska in 1986 with a B.S. degree in business administration with an
 emphasis in accounting.




 Sheila Odom, 37, Director of Corporate Communications and Investor Relations. She joined Nelnet as Director of Corporate
 Communications in June 2001. In December of 2001, Ms. Odom acquired responsibility for the company’s Marketing
 Communications and Branding departments. After joining Nelnet’s Investor Relations team in January of 2005, Odom continues
 to oversee Nelnet’s internal and external Corporate Communications, Public Relations, and Media Relations. Odom serves as
 the Site Executive for Nelnet’s Lincoln, Nebraska office, is a member of the company’s Disclosure committee, and serves as Vice
 President and a Board member for the Nelnet Foundation. Ms. Odom previously served seven years as Director of Marketing
 Communications for the Harrington Group, a privately held firm operating lines of business in financial services, marketing, and
 educational publishing. Ms. Odom is credited for calling national attention to the Harrington Group’s financial products through
 interviews with CNBC television, the New York Times, the Los Angeles Times, Entrepreneur, Business Start-Ups, and additional
 financial publications. Prior to joining the Harrington Group, Ms. Odom directed the public relations, public education, and
 professional education activities of a state chapter of the American Cancer Society. In addition to a number of civic volunteer
 positions, Ms. Odom serves on the Junior Achievement of Lincoln Board of Directors, and is a member of the National Investor
 Relations Institute. She holds a Bachelor of Arts degree from Iowa State University and is currently pursuing a Master’s degree
 from Bellevue University.




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