Slide 1: As of June 30, 2006
As of June 30, 2006
Slide 2: Cautionary Statement
Cautionary Statement Information included in the following slides is believed to be accurate, but is not necessarily complete. Such information should be reviewed in its appropriate context. The implication that historical trends will continue in the future, or that past performance is indicative of
Slide 3: Reference to Public Reports
Reference to Public Reports Any person considering an investment in securities issued by CPS is urged to review the materials filed by CPS with the U.S. Securities and Exchange Commission ("Commission"). Such materials may be found by inquiring of the Commission's EDGAR adh Page (http:/Avww.sec. gov
Slide 4: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. Y Specialty finance company focused on sub- prime auto market Y Established in 1991; IPO in 1992 Y Through June 30, 2006, approximately $6.6 billion in contract purchases from auto dealers ao)
Slide 5: Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. v As of June 30, 2006, managed portfolio of approximately $1.375 billion ¥ Irvine, California headquarters and three servicing branches in Virginia, Florida and Illinois v Approximately 710 employees > @
Slide 6: U.S. Auto Finance Market
U.S. Auto Finance Market vy 2004 US. auto financing = $392 billion® = $207 billion new; $185 billion used v¥ Company estimates 20%, or $78 billion is “sub- prime” v Historically fragmented market with few long-term dominant players v Significant barriers to entry é iS) (1) According to CNW Marketing
Slide 7: Major Market Participants
Major Market Participants v AmeriCredit v Wells Fargo v¥ Capital One v CitiFinancial ¥ Triad y¥ Chase Custom v HSBC/Household ¥ Manufacturers’ Captives
Slide 8: The CPS Landscape
Slide 9: The CPS Landscape
The CPS Landscape Contract Purchases for the six months ended June 30, 2006 v Pri i 0) Primarily factory real Cor svete franchised dealers Gig Be j iS) (1) Includes contract purchases of TFC, a subsidiary that targets enlisted members of U.. Armed Forces
Slide 10: The CPS Landscape
The CPS Landscape CPS’s risk-adjusted pricing results in program offerings covering a wide band of the credit spectrum New contract acquisitions for the six months ended June 30, 2006 vogm [MELE] Guteast | samo Preferred 12.3 19,980. 603 Super Alpha 15.3 19,372 517 Alpha Plus 17.0 17,545 S22, Alpha
Slide 11: The CPS Landscape Product Mix
15% 40% 25% 20% 25% 20% 13% 10% 5 oe The CPS Landscape Product Mix Patna GS) Spe Abhe — Abha Phe Macxy (Dena New contract acquisitions for the six months ended June 30, 2006
Slide 12: The CPS Landscape
The CPS Landscape — ue Securitization 2006-B v Primarily late model _ Principal Balances by 5S 25% ) Model Yt pre-owned vehicles Bec = 16% New 20% % Pre- = = 84% Pre-owned Aan 10% = 5% | = oy J 2006 2005 2004 2003 2002 2001Earlier 12 (Gy)
Slide 13: The CPS Landscape
¥ Affordable, basic transportation vehicles ¥ Average vehicle sales price of $15,680 y Average monthly payment of $382 for 63 months 13 © The CPS Landscape New contract acquisitions for six months ended June 30, 2006
Slide 14: The CPS Landscape
The CPS Landscape An emphasis on stable obligors with the ability to rehabilitate their credit profile Average age 37 years Average time in job 5 years Average time in residence 5 years Average household income $39,986 per year Percentage of homeowners 18% 1 G) ‘Mew contract acquisitions for the six
Slide 15: Contract Originations
Contract Originations yY Centralized contract originations at Irvine HQ = Maximizes control and efficiencies v Proprietary auto-decisioning system = Makes initial credit decision on approximately 90% of incoming applications = Enhances dealer service by shortening response time v Pre-funding verific
Slide 16: Contract Originations
Contract Originations Infrastructure to Support Significant Originations Volumes Since inception through June 30, 2006 the Company has originated aver $6.6 billion 1,200 1,000 800 2006 originations | through June Annual Volumes i ‘ 600 (fin millions) ¥ 400 200 i ee ee SS & So AS So § $ Ss s PS OP SS
Slide 17: Contract Servicing
Slide 18: Contract Servicing
Contract Servicing ¥ Early contact on past due accounts; commencing as early as first day after due date Y Workloads allocated based on specialization which enhances efficiencies ¥ Early stage workload supplemented by automated intelligent predictive dialer 18 ©
Slide 19: Supervision work queues by specialization
Supervision |[ Supervision || Supervision || Supervision |[ Supervision || Supervision Predictive || Front Back |} Military |] Insurance || Skip Dialer End End Claims Tracing 0-29days || 30-59days || 60-119 days Supervision || Supervision || Supervision | Supervision |[ Supervision Legal Bankruptcy
Slide 20: Successful Acquisitions
20 Successful Acquisitions Date and Entity Purchase Price Comments ¥ $380 million portfolio MEN Financial March 2002 ee : oe Sinan ¥ $174 million negative rp. .2 million goodwill ; ¥ $150 million portfolio ‘The Finance May 2003 oe : paces Osean CPS maintains presence in BEY etait TEC military niche
Slide 21: Portfolio Financing
Portfolio Financing ¥ Two short-term warehouse facilities aggregating $350 million ¥ Quarterly “AAA” rated asset-backed securities provide long- term matched funding ¥ Use of multiple bond insurers enhances liquidity and structural flexibility ¥ Sale of subordinated tranches increases liquidity or ©
Slide 22: Portfolio Financing
Inancing Portfolio F The Company has been a regular issuer af rated ABS since 1994 Through Q2 2006: 41 deals aggregating over 84.6 billion $ in millions = Outstanding Balance = Original Balance n ©
Slide 23: Other Financing
Other Financing (8 in thousands) Outstanding at June 30, 2006 — Terms Comments : 8.36% Pa. B related ABS u Senior Debt — 11.75% $40,000 [Affiliate cf! 7006 an 1007 ll ane orca joe # since 1998 Levine Leichtman| — maturities aren Sub. Debt — Wid uae 9.15% Sueireeetaiee : effective Renewable Notes | W
Slide 24: Total Managed Portfolio
Total Managed Portfolio Steady Growth over Last Five Years ($ in millions) y 4 $1,375 mm sigoo. sizoo. ipo $595 mm. = ye00- | ay | | szapmy = OF Baines Set = OnBunee ae Deco Over 90% is Now On Balance Sheet 4 ©
Slide 25: Total Managed Portfolio
Total Managed Portfolio Composition by Source ($ in millions) y $1,375 mm ” 7 = sizoo. 4 = “gee Pay $595 mm a Bae 200 ore Ze ‘or a Z = He . 454 Ap = Deco Dees Decot Dees Primary Driver of Growth is CPS “Organic” Contract Purchases 25 ©
Slide 26: Asset Performance: Average Annual Net Credit Losses
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Asset Performance Average Annual Net Credit Losses Consistent Performance and Positive Trends MEN recoveries now exceed incremental losse: » @ Re cl s - » s s oe a s Sasson © Q2 2006
Slide 27: Asset Performance
Asset Performance Receivables and Repo Inventory 30 Plus Days Past Due Three quarter rolling averages 9.00% aa 8.00% y 7.00% 6.00% 5.00% 4.00% 3.00% cPs 2.00% ———— 1.00% 0.00% LESS SLIP SSIS SLES LG VI ID IY Ah bch OG £ se RICO Sr LN CN AN xn © Consistent Performance and Positive Trends ‘eMirMtrmcac
Slide 28: Asset Performance
Asset Performance Average ABS Pool Cumulative Net Credit Losses as of June 30, 2006 Consistent Performance and Positive Trends 14.00% —1997 12.00% — 1998 — —2001 10.00% —2002 —2003 8.00% 2004 2005 6.00% 4.00% [ h Pane __ABS pools from 2003 onward exhibit substantially better performance. 0.00% 28 i)
Slide 29: Asset Performance
Asset Performance Auction Values for Repossession Sales Have Steadily Improved (1) 50% 40% 30% 20% 7 10% + 2o* Va A) © CPS Portfolio > e POR S ° aes na cs ve er 7 (1) Net liquidation proceeds a percentage of the net balance at the time of sale of the vehicle
Slide 30: Asset Performance
Asset Performance Repossession Sales for CPS Portfolio in Q2 2006 Y Least fuel efficient vehicles comprised less than 10% of all vehicles sold 2% Y Full-size SUV's and sae 25% trucks sold for 51% ofcontractbalance 16% ws, 46% for other vehicles 4% % 3% 33% Compact Car © Full-size Car a Full-size SUV
Slide 31: Summary Balance Sheets
Summary Balance Sheets (8 in thousands) Tune 30, December 31, December 31 2006 2005 2004 Assets Cash $ 11,942 $ 17,789 $ 14,366 Restricted Cash 207,881 157,662 125,113 Finance receivables, net of allowance 1,191,733 913,576 550,191 Residual interest in securitizations 20,656 25,220 50,430 Other Asse
Slide 32: Summary Statements of Operations
Summary Statements of Operations (8 in thousands) Six Months Ended Year Ended June 30, June 30, December 31, December 31, 2006 005 2005 2004 Reveres Interest income $ 63,039 $ 40522 $ 171834 $105,818 Servicing fees 799 1,795 6,647 12,480 Other income 3,395 5,459 15,216 14,304 67,233 41,796 193,697 1
Slide 33: Investment Merits
Investment Merits ¥ Market participant since 1991; CPS has weathered industry turbulence to remain one of the few independent public auto finance companies ¥ Attractive industry fundamentals ¥ Disciplined approach to credit quality and servicing ¥ Demonstrated growth in new contract acquisitions and
Slide 34: Investment Merits
Investment Merits ¥ Diverse sources of funding y¥ Recurring revenue model and sound quality of earnings ¥ Operating leverage through economies of scale ¥ Opportunistic, successful acquisitions ¥ Stable senior management team with significant equity ownership — senior management, including vice presi
Slide 35: Consumer Portfolio Services, Inc.