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SANTANDER CONSUMER USA HOLDINGS INC. 2017 Analyst and Investor Day 02.23.2017

SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

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Page 1: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

SANTANDER CONSUMER USA HOLDINGS INC.2017 Analyst and Investor Day

02.23.2017

Page 2: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

2IMPORTANT INFORMATIONForward-Looking StatementsThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about ourexpectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking.These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should,will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in theseforward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties that are subject tochange based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factorsand elsewhere in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed by us with the U.S. Securities and Exchange Commission (SEC).Among the factors that could cause the forward-looking statements in this presentation and/or our financial performance to differ materially from that suggestedby the forward-looking statements are (a) the inherent limitations in internal controls over financial reporting; (b) our ability to remediate any material weaknessesin internal controls over financial reporting completely and in a timely manner; (c) continually changing federal, state, and local laws and regulations couldmaterially adversely affect our business; (d) adverse economic conditions in the United States and worldwide may negatively impact our results; (e) our businesscould suffer if our access to funding is reduced; (f) significant risks we face implementing our growth strategy, some of which are outside our control; (g)unexpected costs and delays in connection with exiting our personal lending business; (h) our agreement with Fiat Chrysler Automobiles US LLC may not result incurrently anticipated levels of growth and is subject to certain performance conditions that could result in termination of the agreement; (i) our business couldsuffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (j) our financial condition, liquidity, and results of operationsdepend on the credit performance of our loans; (k) loss of our key management or other personnel, or an inability to attract such management and personnel; (l)certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, theEuropean Central Bank, and the Federal Reserve, whose oversight and regulation may limit certain of our activities, including the timing and amount of dividendsand other limitations on our business; and (m) future changes in our relationship with Banco Santander that could adversely affect our operations. If one or moreof the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materiallyfrom those expressed in, or implied by, forward-looking information and statements. Therefore, we caution the reader not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the readershould not consider these factors to be a complete set of all potential risks or uncertainties. New factors emerge from time to time, and management cannotassess the impact of any such factor on our business or the extent to which any factor, or combination of factors, may cause results to differ materially from thosecontained in any forward-looking statement. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation toupdate any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statementsattributable to us are expressly qualified by these cautionary statements.

Page 3: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

3SPEAKERS

Jason KulasPresident and Chief Executive OfficerMr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July 2015. He was namedPresident in 2013 and was the Company’s Chief Financial Officer from 2007 to 2015. He also served on SC’s Board of Directors from 2007 to 2012. Mr. Kulas joined theCompany after serving as a Managing Director in investment banking for J.P. Morgan Securities Inc., where he was employed from 1995 to 2007. In addition to his currentservice on SC’s Board, he serves as a director of the nonprofit Santander Consumer USA, Inc. Foundation. Mr. Kulas received his Bachelor’s Degree in Chemistry fromSouthern Methodist University and his MBA from Texas Christian University.

Izzy DawoodChief Financial OfficerMr. Dawood began serving as the Company’s Chief Financial Officer in December 2015. Prior to joining SC, Mr. Dawood served as Executive Vice President and ChiefFinancial Officer of the Investment Services division of The Bank of New York Mellon Corporation (‘BNY Mellon’) since April 2013. He also served as Executive VicePresident and Director of Investor Relations and Financial Planning and Analysis of BNY Mellon from June 2009 to March 2013, and as Senior Vice President and GlobalHead of Corporate Development and Strategy of BNY Mellon from November 2006 to May 2009. Prior to his tenure at BNY Mellon, Mr. Dawood served in various seniorroles at Wachovia Corporation, where he was employed from 1994 to 2006, including Managing Director of Structured Treasury Activities and Managing Director ofCorporate Development. Mr. Dawood holds a Bachelor’s Degree in finance from St. John's University, Jamaica (Queens), New York and an MBA from the Wharton Schoolof Business at the University of Pennsylvania. Mr. Dawood is a Chartered Financial Analyst.

Rich MorrinChief Operating OfficerMr. Morrin was named the Company’s Chief Operating Officer in February 2016. He previously held the role of Executive Vice President of New Business at the Company, aposition he held since 2011. Prior to joining the Company, Mr. Morrin held a variety of management positions in 21 years of combined service at Ally Financial and GeneralMotors Acceptance Corp. During his tenure at Ally, he managed the commercial lending operations for Ally automotive dealers in the United States and Canada. Mr.Morrin holds a Bachelor’s Degree in Economics from the University of Pennsylvania and an MBA from the University of Virginia.

Andrew KangTreasurer and Executive Vice President, Capital MarketsMr. Kang has served as the Company’s Treasurer and Executive Vice President of Capital Markets at SC since September 2015. Prior to that role, he served as Vice Presidentof Capital Markets at SC from March 2010 to June 2014. During his career, Mr. Kang has also held the role of Treasurer at Exeter Finance Corp and various finance, treasuryand capital markets roles at HSBC Finance Corporation, Capital One Financial Corporation and Thomson Reuters. Mr. Kang received his Bachelor of Arts in Biology andPost-Baccalaureate Certificate in Accounting both from the University of Virginia.

Page 4: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

4

» Kalyan Seshan Chief Risk Officer

» Evan Black VP, Investor Relations

OTHER KEY ATTENDEES

» Fahmi Karam EVP, Strategy and Corporate Development

» Christopher Pfirrman Chief Legal Officer

Page 5: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

5AGENDA

9:45 a.m. – 10:25 a.m. SC TodayJason Kulas, President and Chief Executive Officer

10:25 a.m. – 10:55 a.m. Vehicle FinanceRich Morrin, Chief Operating Officer

10:55 a.m. – 11:20 a.m. Break and Q&A

11:20 a.m. – 11:40 a.m. Funding and LiquidityAndrew Kang, Treasurer and Executive Vice President, Capital Markets

11:40 a.m. – 12:15 p.m. Credit and FinanceIzzy Dawood, Chief Financial Officer

12:15 p.m. – 1:00 p.m. Lunch and Q&A

Page 6: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

SC TODAY

Jason Kulas, President and Chief Executive Officer

Page 7: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

7SC OVERVIEW

LEADERSHIP IN VEHICLE FINANCE S T R O N G A N D S TA B L E P E R F O R M A N C E T H R O U G H C YC L E S

STRONG AND GROWING CAPITAL BASE

DATA-DRIVEN UNDERWRITING DISCIPLINE

DEEP, SUSTAINED AND DIVERSE ACCESS TO FUNDING

PREFERRED LENDER FOR FIAT CHRYSLER (FCA)

EFFICIENT, SCALABLE, TECHNOLOGY-DRIVEN PLATFORM

COMPLIANCE, CUSTOMER AND EMPLOYEE FOCUSED CULTURE

BANCO SANTANDER S.A. OWNERSHIP AND SUPPORT

SIMPLE | PERSONAL | FAIR

Page 8: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

8

81995 1998 2000 2004 2006 2010 2011 2013 2014 – Current

Entrepreneurial partnership

(including Tom Dundon and

partners)founded in 1995

Entrepreneurialpartnershipmerged with

FirstCity

Merged with HBOS

HBOS and Drive Management

acquired remaining shares

of Drive

Banco Santander acquired majority

ownership

First subvented subprime

Chrysler deal in 2010 DDFS

Private equity sponsors invest

SC and Chrysler announced

Chrysler Capital operations

(1)

1 No primary proceeds

FCA Agreement/Organic Growth

SC HISTORY

Big Bank Ownership EntranceIndependent Ownership Private Equity Listed Company

SC’s fundamentals remain strong and the company is focused on maintaining disciplined underwriting standards to deliver strong returns, robust profitability and value to its shareholders through cycles

Inorganic Growth PhaseEntrepreneurial Phase Organic Growth Phase

2008 2011

Throughout its evolution, SC has remained a sustainable and profitable business

Page 9: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

9

Revenue1 $1.1B $2.1B $3.7B $5.0B

Average Managed Assets2 $4.0B $18.2B $25.5B $52.7B

FICO3 538 582 612 632

Employees4 1,120 3,300 4,100 5,100

Locations4 1 4 5 6

Customers 350K 2.1M 1.9M 2.7M

SC EVOLUTION

1 Interest on finance receivables and loans (figures prior to 2013 were not restated per the restatements filed on October 27, 2016) 2 Average Managed Assets comprises all assets including balance sheet and serviced for others3 Average FICO Originated4 Does not include third-party outsourced employees or locations

SC has experienced significant growth since 2007 through the acquisition or conversion of several portfolios and the agreement with Fiat Chrysler (FCA)

2007 2010 2013 2016Years

Page 10: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

10

VEHICLE FINANCE

LEVERAGING TECHNOLOGY IS INTEGRAL TO THE FOUR PILLARS OF OUR FOCUSED BUSINESS MODEL

DISCIPLINED APPROACH TO MARKETSIMPLE, PERSONAL, FAIR APPROACH TO

CUSTOMERS, EMPLOYEES AND ALL CONSTITUENCIES

SERVICED FOR OTHERS

FUNDING AND LIQUIDITY CULTURE OF COMPLIANCE

FOCUSED BUSINESS MODEL

Page 11: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

11

3.9%

4.3%

3.8%

3.6%

3.8%

4.0%

4.2%

4.4%

1H 2014 1H 2015 1H 2016

200520062007

2008

2009

2010

20112012

20132014

2015

-$1,000

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

RETAINED UNIT ECONOMICS BY ORIGINATION YEAR

Months on Book2

Underwriting discipline has resulted in every vintage being profitable in a competitive environment

First Half Vintage Performance3, Net Losses4

1 Cumulative fully-loaded Net Income by vintage (pre-tax) divided by total loans originated in that vintage2 Months on book depicts loans originated in specific vintage and may not reflect exact time on book3First half vintage describes January through June vintage performance through the end of December (for each respective year)4Auction fees excluded to align with U.S. GAAP reporting

Months on Book2

Cumulative Pre-Tax Net Income per unit by vintage year1

Page 12: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

12

5.2%

7.7%

7.8%

8.1%

8.2%

9.4%

12.7%

15.8%

16.6%

16.9%

21.1%

31.1%

Peer 10

Peer 6

Peer 11

Peer 5

Peer 9

Peer 7

Peer 8

SC

Peer 2

Peer 4

Peer 3

Peer 1

0.7%

0.7%

0.7%

0.7%

1.0%

1.1%

1.3%

1.3%

2.0%

2.6%

2.7%

8.3%

Peer 11

Peer 10

Peer 9

Peer 8

Peer 7

Peer 6

Peer 5

Peer 4

SC

Peer 3

Peer 2

Peer 1

PERFORMANCE VS PEERS

SC continues to demonstrate top tier returns and efficiency versus a broad set of peers

Return on Average Tangible Assets Return on Average Equity

Source: SNL Financial Peers in no particular order: SYF, ALLY, CFG, HBAN, TD-TSX, FITB, COF, OMF, CPSS, DFS, CACC

Peer Median: 9.4%Peer Median: 1.1%

67.0%

64.4%

61.8%

61.7%

60.6%

56.7%

51.8%

39.4%

33.3%

32.6%

31.1%

28.7%

Peer 11

Peer 10

Peer 8

Peer 7

Peer 9

Peer 5

Peer 6

Peer 3

Peer 4

SC

Peer 2

Peer 1

Efficiency Ratio

Peer Median: 56.7%

Page 13: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

13STATE OF THE CONSUMER

-8%

-4%

0%

4%

8%

12%

16%

2003 2004 2006 2007 2009 2010 2012 2013 2015 2016

Mortgage ConsumerConsumer Avg Mortgage Avg

3%

6%

133

107

76

0

20

40

60

80

100

120

140

2013 2014 2015 2016

Nearprime/prime Nearprime Subprime

U.S. Unemployment Rate (%) Consumer Confidence Index1

U.S. Total Mortgage and Consumer Debt Expansion Y/Y% ∆1 Consumer Debt to Income Levels By Type1,2

1 Deutsche Bank “The State of US Consumer Report” November 20162 Data through end of 3Q16

9% pre-crisis mortgage growth since 1950

5.3%

10.6%

9.1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2003 2004 2006 2007 2009 2010 2012 2013 2015 2016

Card Auto/Personal loans Student

7% pre-crisis consumer growth since 1950

4.7%

0%

2%

4%

6%

8%

10%

12%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Page 14: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

14

$797 $830$760

$684$632 $678

$726$822

$912$1,013

$

$200

$400

$600

$800

$1000

$1200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

16.5 16.113.2

10.4 11.6 12.714.4 15.5 16.5 17.4 17.5

13.0% 12.9% 11.0%9.0% 9.4% 10.7% 11.4% 11.6% 12.7% 12.9% 12.9%

0%

10%

20%

30%

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US New Auto Light Vehicle Sales Chrysler % Market Share(in millions)

Auto vehicle sales have recovered from the lows of 2009 / 2010 and are approaching all-time highs Fiat Chrysler continues to remain a large player demonstrating stable market share over the past few years

U.S. New Auto Light Vehicle Sales1

U.S. Total Auto Loan Outstandings3 ($ in Billions) % of New Vehicles Leased4

1 U.S. New Auto Light Vehicle Sales – Bureau of Economic Analysis2 Chrysler market share – AutoData3 Big Wheels, “2016 Big Wheels Auto Finance Data Report”. Note data based on top 100 companies by U.S. auto leases and loans outstanding, as of 2015.4 Experian, “State of the Automotive Finance Market Q3 2016”

2

STATE OF THE AUTOMOTIVE FINANCE MARKET

29.5%

9.4%

0%

5%

10%

15%

20%

25%

30%

35%

2009 2010 2011 2012 2013 2014 2015 2016

New Vehicles Leased % of Chrysler New Vehicles Leased

Page 15: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

15

ROA HURDLEBY LOAN

OFFER

Direct AutoChrysler

Nissan Motor Acceptance Corp.

STRATEGIC DECISION TO EITHER RETAIN LOAN ON BALANCE SHEET OR SELL LOAN TO MAXIMIZE RISK-ADJUSTED RETURNS

ABUNDANT ORIGINATION OPPORTUNITIES

SC has significant access to applications via direct and indirect channels to drive volume

Indirect Auto

15,000+ Dealer

Network

5. Rehashes performed systemically and exceptions approved by underwriters

4. Risk-based pricing to achieve target ROA

3. Systemic underwriting and pricing

2. Pre-bureau check and dedupe

1. Application received

Page 16: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

16

3.4

5.46.8

6.1 6.5 6.3 6.2

0.7

1.1

1.01.3

1.4 1.4 1.5

1.8

2.9 2.7 2.5

2

4

6

8

10

12

2010 2011 2012 2013 2014 2015 2016

Applications By Channel(in Millions)

Indirect Direct Chrysler

APPLICATION GROWTH

1 Direct auto lending platform, RoadLoans.com2 Chrysler includes lease applications

9.3

Application volumes have grown over time and stabilized at historically high levels

4.1

6.5

7.8

10.810.5

10.2

Page 17: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

17

SELL

(Nonprime) (Near-Prime) (Prime/Super-Prime)

Decision

Assets held for investment at origination Once assets have aged, assets may

be sold

Loans pass through hold versus sell decisioning process

Assets designated as held for sale (HFS) at origination

Provisions More upfront provisioning, higher

yielding assets, higher ongoing reserve percentage

Mix of high and low provisioning/ yielding assets

No provision required for HFS

Funding Strategy

Assets pledged to conduit facilities/warehouses

Securitized on-balance sheet via DRIVE and SDART platforms

Assets pledged to conduit facilities/warehouses Sold through one-time sales, flow

sales or CCART securitization platform Securitized on-balance sheet via

DRIVE and SDART securitization platform

Assets pledged to conduit facilities/warehouses

Sold through one-time sales, flow sales or CCART securitization platform

RETAIN

STRATEGIC APPROACH TO PORTFOLIO OPTIMIZATION

Leverage historical expertise in nonprime to retain higher margin assets, while also being uniquely positioned to sell assetsthrough flow agreements. SC retains servicing rights on assets sold, creating a steady stream of capital-efficient fee income.

Page 18: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

18BANCO SANTANDER FLOW AGREEMENT

Benefits

Overview

Duration – Two-year flow agreement between SC and Banco Santander (including optional renewal)

Collateral – Certain retail loan assets originated by SC

First transaction expected in Q1 2017

Market-driven credit terms

Banco Santander to provide SC with warehouse facility

Provides a stable, consistent funding source

Economics in line with current experience and offer a more stable funding solution

Expected to be beneficial to FCA relationship by increasing Chrysler penetration

Provides access to attractive ROA assets for Banco Santander

Banco Santander flow agreement is expected to improve competitiveness of Chrysler Capital and provide a stable platform for asset sales

Page 19: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

19

Funding Sources ($ billions) – Year-End 2016

Highlights

Ability to issue and sell AAA through BB bonds

Top-tier rating agency relationships

Santander support

Funding Efficiency

14 external lenders in committed third-party revolving facilities as of 2016 year-end SC has been the largest issuer of Auto loan ABS in the U.S. since 2015

200+ distinct investors participate in SC’s platform Santander Holdings USA commitment increased from $1.5 billion to $3.0 billion in 2016

FUNDING AND LIQUIDITY OVERVIEW

Diversified and resilient funding platform

Cost of funds advantage

Public Securitizations,

$13.5

Third-Party Revolving,

$10.4

Privately Issued Amortizing Notes, $8.2

Santander Related

Funding, $6.3

Page 20: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

20CONSUMER ADVOCACY AND COMPLIANCE

PROGRAM COMPONENTS

Compliance Technology

GovernanceRisk Assessment

Program

Policies, Procedures, &

Related Controls

Compliance Testing & Monitoring

Reporting & Communication

Compliance Training

Compliance Technology

SC’s robust regulatory compliance

risk management

program

Regulatory Interaction & Coordination

Culture of Compliance begins with tone from the top and permeates three lines of defense

Committed to excellence and exceeding regulatory expectations and industry standards

Focus on internal controls and identify inherent risks

Business is responsible for compliance proactively identifying, assessing, reporting and mitigating compliance and reputational risks with federal and state laws and regulations

Compliance professionals and other senior executives with large bank experience are in key leadership roles providing guidance and effective challenge to the business

SC is building a great business for all key stakeholders. Compliance excellence is key to achieving long term, sustainable and differentiated success.

SIMPLE | PERSONAL | FAIR

Page 21: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

21CUSTOMER FOCUS

Ideas Into Action

Launched employee campaign in 2016

Encourage employees to submit ideas to improve processes and better serve our customers

Office of Consumer Practices

Complaint Management

Formal group formed in 2016

Analyzes complaint trends

Reviews complaint data and helps implement industry best practices

Initiated first customer surveys in late 2016

Intakes, researches and resolves complaints while also analyzing the root cause and refines processes or products as needed

Ensures a wider variety of customer needs are being addressed

Broadened definition of complaint in early 2017 ensures a full spectrum of customer needs are being addressed and handled appropriately

Page 22: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

VEHICLE FINANCE

Rich Morrin, Chief Operating Officer

Page 23: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

23ORIGINATIONS OVERVIEW

$22 BILLION AUTO ORIGINATIONSM O R E T H A N 5 , 1 0 0 E M P L O Y E E S 1

MORE THAN TEN MILLION APPLICATIONS

MULTIPLE AUTO ORIGINATION CHANNELS

900,000+ UNITS ORIGINATED

DIRECT AND INDIRECT RETAIL LOAN, LEASE AND FLOORPLAN

FROM JANUARY 2016 DECEMBER 2016

FCA AGREEMENT

SCALE | DIVERSITY1 Excludes contingent employees

Page 24: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

24VEHICLE FINANCE

Pricing Principles and Considerations A

Originations and Dealer Performance Management B

Servicing Efficiencies and Capabilities C

Page 25: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

25

CBAPRICING PRINCIPLES

Credit Score

Payment To Income (PTI)

Loan To Value (LTV)

LTV Credit Limit

PTI Credit Limit

Actual Results Below ROA TargetAdjust Price

Low/High Penetration

Evaluate Terms

Actual Results Above ROA

TargetEvaluate Terms

SC utilizes a dynamic risk-based approach which is continuously refined based on return and penetration experience

Credit actions to address risk-layered segments

Seasonal strategies (e.g. Tax Season Programs)

Price adjustments to reflect declining recovery rates

Pricing strategy reflects residual risk on leases

Price increases in tandem with rising interest rates and cost of funds

Pricing adjustments continually optimize originations based upon up-to-date market intelligence and capture rates

Credit policy adjustments based upon up-to-date information available to ensure SC is within risk appetite

Deal Structure Policy Limits (LTV/PTI)

Dealer Programs to foster loyalty / incent profitable growth

Harness consumer behavior insights from non-traditional data and historical loan performance to develop pricing strategies and risk management

Proactively Adjust to Changes in Environment

Key Levers

Illustrative View of Buy Box and Considerations

Page 26: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

26

SC’s marginal cost is minimized due to its scale, efficiency and experience

Rising interest rates have a greater impact on consumer affordability as payment to income (PTI) increases

SC may see upward pressure on delinquencies due to marginally higher PTI

A portion of the population of nonprime is constrained by internal and external factors including deal structure, interest rates, customer affordability, dealer discount, down payment, etc.

Consumer refinance opportunities diminish resulting in slightly longer asset lives

Expect increased competition from banks on non-subvented volume (near-term)

Consumer is price sensitive and demand for subvention programs is likely to increase (long-term)

SC’s pricing moves in line with rising interest rates match funding new originations to prevailing interest rates without significant lag

CBAPRICING CONSIDERATION | INTEREST RATE ENVIRONMENT

Nonprime

Prime

Page 27: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

27

42%

44%

46%

48%

50%

52%

54%

56%

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4

Top Ten vs. Others

Others - Combined Top 10 - Combined

Top ten lenders have lost market share since the beginning of 2015

Competitors outside of the Top 10 continue to gain market share

SC maintains disciplined underwriting standards in a competitive environment

1 Loan only – new and used combined; all FICOs; current view aggregates subsidiaries under the larger US captive arm (e.g. Toyota/Lexus)

INDUSTRY MARKET SHARE TRENDS

Retail Market Share1

CBA

Page 28: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

28

586 588612

639625 632

Wtd. Avg FICO

Origination Characteristics1

UNDERWRITING TRENDS - ORIGINATIONS

1 Characteristics shown are for individually acquired retail installment contracts at time of origination

2015 2016

Wtd. Avg FICO 625 632

Wtd. Loan to Value 106.1% 104.7%

Wtd. Payment to Income 10.7% 10.2%

Wtd. Term 70 70

Wtd. Avg Yield 15.2% 14.1%

New % (RICs) 52.8% 54.2%

Average Amount Financed $21,862 $21,667

SC has remained consistent in its underwriting discipline. Proactive changes in 2016 are expected to improve risk profile.

CBA

10.6%10.2%

6970

60

62

64

66

68

70

72

0%

2%

4%

6%

8%

10%

12%

2011 2012 2013 2014 2015 2016

Wtd. Payment to Income Wtd. Term

Page 29: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

29DEALER MANAGEMENT

Dealer Performance Management (DPM) – Dealer Performance Metrics

Dealer Performance Management (DPM) – Credit Performance Metrics

The assessment of dealer performance is based on metrics such as:

Misrepresentation frequency

Number of consumer complaints

Negative media coverage

Volume spikes

Regulatory compliance failures

SC’s DPM Process continuously monitors and evaluates dealers based on credit performance metrics to identify issues as early as possible and ultimately mitigate risk for the Company and the customer.

Early performance indicators

Delinquency trends

Loss vs. expectations

SC continuously enhances dealer management oversight and monitors several metrics to assess dealer behavior and credit performance

CBA

Page 30: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

30SERVICING OVERVIEW

$52 BILLION ASSETS SERVICEDM O R E T H A N 2 . 7 M I L L I O N C U S T O M E R S

172 MILLION INBOUND/OUTBOUND CUSTOMER CALLS

SIX SERVICED FOR OTHERS RELATIONSHIPS

2.2% EXPENSE RATIO

$156 MILLION SERVICING FEE INCOME

FROM JANUARY 2016 DECEMBER 2016

$14 BILLION CUSTOMER PAYMENTS COLLECTED

TECHNOLOGY | SCALE | CUSTOMER FOCUS

Page 31: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

31

Acquisition and Conversion History (Inorganic Assets)

Nine different portfolio conversions from seven unique platforms

3.4 million accounts

Inherited five new locations

More than 1,000 new associates

Two private-label platforms

Santander Consumer USA

Preferred lending relationship - Chrysler Capital (2013)

Six current third-party servicing relationships

Allows consistent communication regarding trends, compliance and best practices amongst industry peers

Dedicated team to ensure all requests/needs of partners are met

CBAPROVEN TRACK RECORD & SCALABILITY IN LOAN SERVICING

Current State Serviced for Others (Organic Assets)

SC converted or acquired more than $34 billion in assets in the last financial downturn to drive scale

Page 32: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

32

SC has built an industry-leading loan servicing platform that maximizes efficiency and employs robust systemic controls to drive superior customer experience

CBAINDUSTRY LEADING SERVICING AND EFFICIENCY

Peer Standard SC

Point and click dialing

Systemic time zone dialing controls with state restrictions for predictive and manual dialing

100% Call recording

Record on demand ability

Data mining/analytics of recordings

Real-time call intervention

Review of set number of associate calls for QA

100% of right person contacts and left messages scored

System integrations with repo, insurance, impounds, and remarketing

End to end servicing platform

Page 33: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

33

Note: SCI utilizes SC’s U.S. based call centers to perform a portion of customer and account services and early stage collections on performing accounts. SCI pays vendor services fee to SC for these services.

Note: SCI will have the ability to expand capacity up to 500 as needed

**All figures as of 12/31/2016**

CBAGEOGRAPHIC AND TIME-ZONE DIVERSIFICATION

SC has capacity to accommodate anticipated growth in its servicing business through recent expansions in Mesa, Denver, and San Juan

Page 34: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

34

Moves monthly payments to the end of the loan, extending the original maturity of the contract (maximum of eight months extended for the life of the loan)

Majority of extensions are two monthly payments

Reduces a customer’s payment for a temporary time period (no more than six months)

Any permanent change in the original contract terms including principal, interest or term of the contract

Extension

Temporary Reduction in Payment Plan (TRIPP)

Other Modifications

In the event of a temporary hardship SC agents are trained to offer assistance primarily via an extension or TRIPP1

All loans are scored to provide segmentation by performing a cash flow/sustainability analysis, which creates an exception process for loans with a low probability of performing post modification is granted

CBALOAN MODIFICATIONS

1 TRIPP – Temporary Reduction in Payment Plan

SC utilizes multiple tools to drive a customer-centric approach

Page 35: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

35

1 Graphs are normalized for Portfolio Sales

SC maintains a disciplined approach to the utilization of tools

Tools become available for usage at six months on book

Consistent application of treatment across delinquency buckets

Migration to TRIPP is primary driver for increase in earlier delinquency life-cycle

CBAAPPLICATION OF MODIFICATION TOOLS

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16

<= 0 5.26% 5.13% 2.21% 2.21% 4.50% 4.04% 2.40% 3.31% 9.12% 11.00% 10.16% 9.63%

1-59 74.79% 76.51% 74.27% 74.43% 71.84% 75.30% 76.83% 76.58% 71.64% 72.95% 73.27% 73.79%

>= 60 19.95% 18.36% 23.53% 23.36% 23.66% 20.66% 20.77% 20.11% 19.25% 16.06% 16.58% 16.58%

0%

20%

40%

60%

80%

100%

Tool Utilization by Delinquency at time of event1

Disciplined approach and consistency in SC’s usage of modification tools

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 13.83% 17.43% 18.00% 17.81% 15.98% 15.54% 13.55% 14.54% 15.82% 16.15% 15.56% 14.53%

2014 13.55% 17.27% 16.66% 16.09% 14.83% 14.59% 13.80% 13.88% 15.34% 16.79% 16.60% 13.70%

2015 13.16% 19.87% 19.61% 17.71% 16.71% 15.35% 14.35% 13.83% 13.87% 13.47% 14.53% 13.63%

2016 13.89% 17.15% 16.06% 14.94%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Tool Utilization by Origination Vintage at 9 Months on Book1

Page 36: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

36MULTIPLE LEVERS FOR GROWTH

Serviced for Others

Scalable platform

Capital-efficient business model

Banco Santander Agreement

Core

Chrysler

Continue to realize the full value of the relationship

Dealer VIP national rollout in 2017

SC has increased dealer receivable originations (“floorplan”) more than 60% compared to 2015

Banco Santander forward flow agreement

Incremental opportunities exist for SC’s mature platform

Improved liquidity positions to be opportunistic through credit cycles

Strategic approach to portfolio optimization focused on retaining most profitable assets

SC is executing on its organic growth opportunities without sacrificing underwriting discipline

Page 37: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

FUNDING AND LIQUIDITY

Andrew Kang, Treasurer and Executive Vice President, Capital Markets

Page 38: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

38LIQUIDITY OVERVIEW

$38 BILLION IN COMMITTED LIQUIDITYM O R E T H A N 2 0 0 U N I Q U E I N V E S T O R S

66 TOTAL TRANSACTIONS SINCE 2007

THREE SECURITIZATION PLATFORMS

PARENT COMPANY SUPPORT

LEADING AUTO ABS ISSUER

14 LENDER RELATIONSHIPS

Page 39: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

39

FundingA

Interest Rate Risk Management B

2016 Accomplishments and 2017 OutlookC

FUNDING AND LIQUIDITY OVERVIEW

Page 40: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

40

$19.2

$23.9 $23.2

$31.1$34.4 $35.9

$38.4

$0

$10

$20

$30

$40

2010 2011 2012 2013 2014 2015 2016

CBACOMMITTED LIQUIDITY

Santander support totaling $6.3 billion; SHUSA commitment increased from $1.5 to $3.0 billion in Q4 2016

14 financial institution relationships with more than $18 billion in total commitments from third parties

Issued and sold $8.3 billion in bonds across three distinct platforms in 2016

SC has grown liquidity through diverse funding sources

($ in billions)

Page 41: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

41

CBAABS MARKET OVERVIEW

Of the $65 billion auto ABS issued in 2016, SC has issued 25% of the $26 billion subprime segment Both prime and nonprime ABS credit spreads improved through the end of 2016 and have continued to tighten in 2017

2016 Retail Auto Loan ABS Market Share1

Source: Wells Fargo Research

Prime Auto AAA & BBB Spreads Subprime Auto AAA & BBB SpreadsSource: Wells Fargo Research

Source: JP Morgan

Historical Auto Loan & Lease ABS Issuance Volumes ($B)1

1 As of December 31, 2016

Santander Consumer USA, 14%

Other, 86%

SC is a leading issuer of auto ABS

3743

39 39

21 2227 26

15 16 1814.5

8 9 118

0

10

20

30

40

50

2013 2014 2015 2016Prime Subprime Lease SC

0

50

100

150

200

250

300

Subprime AAA (2yr) Subprime BBB (3yr)

0

50

100

150

200

250

300

Prime AAA (2yr) Prime BBB (3 yr)

Page 42: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

42

CBASECURITIZATION PERFORMANCE

SC’s nonprime securitization platform has demonstrated consistent losses in current vintages Through the crisis, SC’s nonprime securitization platform did not breach any net loss triggers

Consistency in SC’s securitization performance drives stronger execution

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55

13.1%

1 Data as of 12/31/2016 for SDART vintages from 2010-20162 Illustrative approximation for SDART 2016-23 Approximation of S&P, Moodys and Fitch4 SDART 2007 deals only structured through AAA. The BBB break is reflective of the 18.50-19.50% Rating Agency Loss Assumption and BBB 1.7x structuring multiple

BBB Break-Even Cumulative Net Loss at Closing2

Cumulative Net Loss (2010-Present) 1

17.50% of CNL Cushion

Rating Agency Loss Assumptions3

Cumulative Net Loss (2007 Transactions)

23.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

1 5 9 13 17 21 25 29 33 37 41 45

SDART 2007-1 SDART 2007-2 SDART 2007-3

BBB Break-Even Cumulative Net Loss at Closing4

6% of CNL Cushion

Page 43: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

43

CBASC MAINTAINS THREE DISTINCT ABS PLATFORMS

CCART DRIVESDART

Trust Chrysler Capital Auto Receivables Trust

Santander Drive AutoReceivables Trust

Drive Auto Receivables Trust

Launched 2013 2007 20151

Issuance Total2 $6.1 BN $42.5 BN $6.5 BN

Total # of Transactions2,3 8 51 7

2016 Issuance2 $1.8b $3.4b $3.1b

Weighted Average FICO4 712 600 551

APR5 7.86% 15.90% 18.79%

Rating Agency Loss Expectation5 5.5% - 6.0% 17.0% 27.0% - 28.0%

Advance Rate5 93.0% 85.0% 76.5%

Weighted Average Life5 1.92 years 1.68 years 1.53 years

Weighted Average Spread5 0.83% 1.01% 1.90%

Weighted Average COF5 1.97% 2.07% 3.17%

1 Re-launched in 20152 As of December 31, 20163 Inclusive of both SEC-registered and 144A transactions4 Approximate weighted average Non-Zero FICO; from most recent transactions5 Approximate, from most recent transactions

Page 44: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

44

CBALIQUIDITY AND RATINGS

0

100

200

300

400

500

600

700

800

900

Mill

ions

of D

olla

rs T

rade

d

SDART DRIVE CCART ACAR AMCAR CPS EART

The strength of SC sponsorship, long history, large transaction sizes, regular issuance and high-level of secondary-market liquidity Experience in the capital markets going back to 1998 with 84 transactions totaling over $55 billion in issuance CCART, SDART and DRIVE have a proven track record of rating agency upgrades No SC auto loan bond has ever been downgraded for performance reasons

Consistent Rating Agency UpgradesStrong Secondary Market Liquidity1

TRACE reporting reflects original face amount of bonds1 Source: Bloomberg December 31, 2016

DRIVESDART CCART

Deal Count

Notches Upgraded

Deal Count

Notches Upgraded

Deal Count

Notches Upgraded

2013 Deals 5 199 n/a n/a 2 342014 Deals 5 160 n/a n/a 2 412015 Deals 5 43 4 30 2 152016 Deals 2 4 2 4 1 5Total 17 406 6 34 7 95

Secondary market liquidity and ratings continue to drive investor demand

Page 45: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

45

CBAINTEREST RATE RISK MANAGEMENT

SC structurally matches its fixed-rate assets via securitizations and interest rate swaps which significantly decrease exposure to interest rate fluctuations

CORE ASSET FIXED/FLOATING RATE COMPOSITION (%)

CORE LIABILITY FIXED/FLOATING RATE COMPOSITION (%)

LIABILITY FIXED/FLOATING RATE COMPOSITION WITH DERIVATIVES (%)

PREDOMINANTLY FIXED ASSETS AND

MAJORITY FLOATING RATE

LIABILITIES

1 Market Value of Equity (+100bps)2 Net Interest Income (+100bps)* As of December 31, 2016

SC proactively manages interest rate risk through interest rate swaps

Core Assets nearly all fixed rate

Core Liabilities majority floating rate but are duration matched via securitizations

Interest Rate Swaps used to mitigate earnings and valuation risk of changing interest rates

Derivatives reduce the 12 Month NII sensitivity of +100bp change in interest rates from ($125MM) to ($59MM)

INTEREST RATES SWAPS BETTER ALIGN INTEREST

RATE RISK PROFILE

,

,

Page 46: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

46

CBAACCOMPLISHMENTS AND INITIATIVES

2016 Accomplishments

Two new revolving warehouse facilities established in 2016, including one new lender

$5.2 billion in new term financings with existing lenders for both auto loan and lease

2017 Initiatives

Banco Santander flow agreement

Lease funding including additional private term financing and potential ABS platform to fund leases

Additional residual/equity financings

Additional commitments for “ineligible” and “off-the-run” assets

Maximize public ABS and private bank financing markets as a continued diversification of funding

Regulatory

Additional SEC shelf registration (currently only SDART is registered)

Regulation AB II implementation

Loan level data reporting requirements

Risk Retention requirements for all new auto ABS

Page 47: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

CREDIT & FINANCE

Izzy Dawood, Chief Financial Officer

Page 48: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

48FINANCE OVERVIEW

$6.5 BILLION IN REVENUEA P P R O X I M AT E LY $ 7 6 0 M I L L I O N N E T I N C O M E

2.0% RETURN ON AVERAGE ASSETS

$38+ BILLION IN ASSETS

15.8% RETURN ON AVERAGE EQUITY

13.4% COMMON EQUITY TIER 1 RATIO

FROM JANUARY 2016 DECEMBER 2016

2.2% EXPENSE RATIO

Page 49: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

49

Performance and CreditA

Capital and IncomeB

Recent Developments and OutlookC

CREDIT & FINANCE UPDATE

Page 50: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

50REVENUE CONSISTENCY

Breadth and depth of origination channels drive ability to generate revenue. Recent growth in revenue driven by growth in leasing assets.

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Total Interest & Other Income (Less PL) Total Interest & Other Income (Less PL & Lease)

($MM)

1 Total interest income and other income (Leased Vehicle Income, Servicing Fee Income and Fees Commissions Other (auto only))2PL – Personal Lending

CBA

Page 51: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

51CONSISTENT CAPITAL GENERATION

1 Common Equity Tier 1 (CET1) Capital Ratio begins with Stockholders’ Equity and then adjusts for AOCI, Goodwill/Intangibles, DTAs, cash flow hedges and other regulatory exclusions over Risk-Weighted Assets; Non-GAAP measure

2Tangible Common Equity to Tangible Assets is defined as the ratio of Total Equity, excluding Goodwill and Intangible Assets, to Total Assets, excluding Goodwill and Intangible Assets; Non-GAAP measure, reconciliation in the Appendix

Tangible Assets $36,342 $37,661 $38,383 $38,665 $38,432

Tangible Common Equity $4,325 $4,497 $4,769 $5,011 $5,132

11.2%12.1%

12.6%13.1% 13.4%

11.9% 11.9%12.4%

13.0% 13.4%

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

CET1 TCE/TA

$ in millions

1 2

Strong ability to generate earnings and capital, while growing assets

CBA

Page 52: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

52

20161 <640 (Nonprime and Other)3 >640 (Near – Super-Prime) Total

Volume ($ Billions) $9,970 $2,756 $12,727

% Total 78.3% 21.6% 100.0%

Modeled Effective Yield 17.0% 9.5% 15.4%

Adjusted Net Charge-off Ratio 7.6% 5.2% 7.1%

Expected Risk Adjusted Yield2 9.4% 4.3% 8.4%

20151 <640 (Nonprime and Other)3 >640 ( Near – Super-Prime) Total

Volume ($ Billions) $14,260 $2,270 $16,531

% Total 86.3% 13.7% 100.0%

Modeled Effective Yield 17.9% 10.4% 16.9%

Adjusted Net Charge-off Ratio 9.0% 4.9% 8.5%

Expected Risk Adjusted Yield2 8.9% 5.5% 8.4%

RISK ADJUSTED RETURNS – RETAINED

1 Performance through December 31, 2015 and through 20162 Expected Risk Adjusted Yield is a forward-looking non-GAAP financial measure. See appendix for details.3 Other includes loans with limited bureau attributes and commercial loans

In 2016 SC maintained consistent risk adjusted yields (versus 2015) with a higher quality credit profile resulting in a lower net charge-off ratio and lower originated yields

CBA

Page 53: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

53EARLY CREDIT PERFORMANCE INDICATORS

2014 20.8% 24.8% 24.5% 24.6% 23.8% 24.0% 25.2% 25.2% 23.3% 23.3% 22.6%2015 18.0% 27.0% 27.6% 26.4% 25.6% 25.4% 26.6% 25.7% 23.8% 21.3% 20.1%2016 19.9% 24.6% 24.1% 23.1% 22.3% 22.3%

2014 9.0% 10.8% 10.5% 10.7% 10.2% 10.4% 11.0% 11.0% 9.9% 9.7% 9.5%2015 7.2% 12.2% 12.7% 12.5% 12.0% 12.0% 12.8% 12.3% 10.8% 8.9% 8.4%2016 8.9% 11.1% 11.3% 10.8% 10.3% 10.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Jan Feb Mar Apr Jun Jul Aug Sep Oct Nov Dec

Ever 60+ DPD1 at 6 Months on Book2

2014 2015 20160.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan Feb Mar Apr Jun Jul Aug Sep Oct Nov Dec

Ever 30+ DPD1 at 6 Months on Book2

2014 2015 2016

Early performance indicators are key drivers of loss performance expectations

CBA

1DPD = Days past due2Ever delinquent 30+, 60+ days includes voluntary repo, retained auto loans only. Percentages reflect percent of monthly originations.

2016 early performance indicators show trends consistent with 2014 and better performance than 2015

Page 54: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

54VINTAGE VERSUS PORTFOLIO LOSS PERFORMANCE

2016 early loss performance better than 2015. However, portfolio effect is driving an increase in the charge-off ratio.

4.1%5.4%

6.2%6.7%

7.9%

2.0%

4.0%

6.0%

8.0%

10.0%

2012 2013 2014 2015 2016

Retail Installment Contracts Net Charge-Offs (Portfolio View)

CBA

Early indications show the first half of the 2016 vintage is outperforming 2015 on a vintage basis On a portfolio basis, net charge-off ratio is higher as larger 2015 vintage ages and drives losses

*Retained originations only1First half vintage describes January through June vintage performance through the end of December, for each respective year2Auction fees excluded to align with U.S. GAAP reporting

3.9%

4.3%

3.8%

3.6%

3.8%

4.0%

4.2%

4.4%

1H 2014 1H 2015 1H 2016

First Half Vintage Performance1, Net Losses2

Page 55: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

55

CBAPORTFOLIO, LOSS AND DELINQUENCY SCENARIO ANALYSIS

Meaningful changes in origination volume will impact reported metrics and can mask vintage performance

• Scenario 1 – $200mm monthly originations with no growth or decline in originations volume

• Scenario 2 – $200mm originations in month one, growing by an additional $5mm per month

• Scenario 3 – $200mm originations in month one, decreasing by $5mm per month

1 Portfolio balance in millions

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1 3 5 7 9 11 13 15 17 19 21 23

Net Credit Loss Ratio

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1 3 5 7 9 11 13 15 17 19 21 23

Portfolio Balance1

0.0%

5.0%

10.0%

15.0%

20.0%

1 3 5 7 9 11 13 15 17 19 21 23

30+ Delinquency

Page 56: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

56COMMON MODIFICATION TYPES AND TDR1 CRITERIA

Moves customer’s monthly payments to the end of the loan, extending the original maturity of the contract (maximum of eight months extended for the life of the loan are permitted)

Majority of extensions are of two monthly payments qualifies

TDR Criteria: Two separate extensions or a single extension of three or more months

Reduces a customer’s payment for a temporary time period (no more than six months permitted)

TDR Criteria: Any instance immediately qualifies

Any permanent change in the original contract terms including principal, interest or maturity of the contract due to customer’s financial difficulty

TDR Criteria: Any instance immediately qualifies

Extension

Temporary Reduction in Payment Plan (TRIPP)

Other Modifications

1 Troubled debt restructuring (TDR)

CBAAccounting guidelines for TDRs drive allowance for loan loss. Modification performance not affected by

allowance treatment.

Page 57: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

57TDR DISTRIBUTION TRENDS

TRIPPs immediately qualify as TDRs increasing the balance of TDRs outstanding

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

0%

20%

40%

60%

80%

100%

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

% o

f Por

tfol

io w

ith T

DR

% o

f Too

l Usa

ge

Retained Portfolio TDRs

Extensions (Left Axis) Other TRIPP TDR % of Portfolio (Right Axis)

TDR balances have grown since 2014 and TRIPPs have grown as a percentage of the TDR balance

CBA

1 TDR definitional change to redefine items classified as Total Debt Restructuring

1

Page 58: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

58

2014 TDR Vintage112 Months

Charge-Off Rate18 Months

Charge-Off Rate24 Months

Charge-Off Rate24 Months Paid Off %

24 Months Active %

Extension 31% 41% 51% 8% 41%TRIPP 10% 18% 26% 20% 54%Other 23% 33% 38% 12% 50%Total 26% 35% 45% 10% 45%

*2014 TDR vintage through Dec-14

TDR Performance Since Classification

MODIFICATION PERFORMANCE

Performance of TRIPPs are better relative to other modification types

CBA

1 Reflects loans that were classified as TDRs in 2014

Up to six payments can be temporarily reduced for a TRIPP modification All accounts have to be current for six months to qualify for a modification TRIPPs are immediately classified as TDRs

Page 59: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

59

2015 TDR Vintage112 Months

Charge-Off Rate18 Months

Charge-Off Rate12 Month Paid Off %

12 Month Active %

% of TDR Portfolio

Extension 32% 43% 4% 64% 60%TRIPP 12% 21% 10% 78% 38%Other 30% 34% 4% 66% 2%Total 26% 36% 6% 68% 100%

*12 Month 2015 TDR vintage through Dec-15*18 Month 2015 TDR vintage through Jun-16

2016 TDR Vintage112 Months

Charge-Off Rate18 Months

Charge-Off Rate12 Month Paid Off %

12 Month Active %

% of TDR Portfolio

Extension 30% N/A 5% 66% 65%TRIPP 14% N/A 9% 77% 34%Other 29% N/A 4% 67% 2%Total 24% N/A 7% 70% 100%

*2016 TDR vintage through Dec-16

TDR Performance Since Classification

TDR Performance Since Classification

MODIFICATION PERFORMANCE WITHIN TDR VINTAGES

The 2016 TDR vintage performance is marginally better than 2015

CBA

1 Reflects loans that were classified as TDRs in 2015 and 2016

Page 60: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

60TDR BALANCE COMPOSITION BY VINTAGE

Growth of TDRs from 2015 vintage is outpacing decline of TDRs from 2013 vintage

$2.3 $2.2

$1.1 $1.0 $0.9 $0.8 $0.7 $0.6

$1.9 $2.1

$2.1 $2.0$1.9 $1.8

$1.7 $1.5

$0.3$0.7

$1.1 $1.5 $1.7$1.8

$1.8$1.8

$4.6

$5.0

$4.3 $0.2 $0.7 $1.2 $1.6

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

TDR

Port

folio

Bal

ance

Origination Vintage

TDR Balance by Origination Vintage $

2012 & Older 2013 2014 2015 2016

$4.6$4.7

$5.0$5.3

$5.6

CBA

Page 61: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

61ALLOWANCE SENSITIVITY TO TDRs

Changes to TDR balances drive higher variances to allowance relative to changes in the TDR coverage ratio

CBA

($MM)

TDR Coverage Ratio

Change Q4 TDR UPB 28.3% 28.5% 28.8% 29.0% 29.3%

($400) $5,200 $141 $128 $115 $102 $89

($200) $5,400 $85 $71 $58 $44 $31

– $5,600 $28 $14 $3,4111,2 ($14) ($28)

$200 $5,800 ($29) ($43) ($58) ($72) ($87)

$400 $6,000 ($85) ($100) ($115) ($130) ($145)

Sensitivity of Allowance for Credit Loss to Changes in TDR Balance and Coverage Ratio ($MM)

1 Allowance for Retail installment contracts held for investment, credit Loss as of 12/31/20162 The TDR impairment portion of the allowance is $1.6 billion

Page 62: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

62ROA PERFORMANCE OVER ASSET LIFE (ILLUSTRATIVE)

1 Illustrative of a vintage from 2014, performance of any other vintage will be affected by factors such as credit mix, recovery rates, prepayment speeds, cost of funds, etc.

CBALifetime pre-tax cash ROA is approximately 4%, however, ROA declines as a vintage ages.

Higher levels of interest income earlier in the vintage as a higher percentage of loans are performing Later periods have higher losses and lower balances impacting ROA

3.9%

6.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80

Months on Book

Monthly Pre-Tax Cash ROA1

ROA Monthly Loss

Page 63: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

63

CBACAPITAL GENERATION CAPABILITY (ILLUSTRATIVE)

Differences in originations (portfolio effect), accounting estimates and gains/losses on sale will impact reported ROA and EPS in a particular calendar year

Lifetime EPS2

$36B $40B

$2.65 $2.95

$1.99 $2.21

Pre-tax Target Returns3,4

Lifetime Income5 Lifetime EPS2

$38B1

4% $1.52B $2.80

3% $1.14B $2.10

1 Approximate loan and lease balance as of year end 20162 Assuming 2016 tax rate of 34.0% and current share count of 358,281,0003 Retained auto only. Includes interest income, losses, cost of funds, expenses, fees and excludes provision for loan loss and gain/loss on sale4 Average return over life of assets5 Pre-tax income

Variability of returns driven by multiple factors such as credit mix and competition Changes in level of income and capital generation also impacted by ability to deploy balance sheet capacity

+ Serviced for others

Page 64: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

64BOOK VALUE ACCRETION

$2.1 $2.2$2.7

$3.5$4.4

$5.2$0.9$1.4

$2.1

$2.9

$3.2

$3.4

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

2011 2012 2013 2014 2015 2016

Total Equity Plus Allowance for Credit Loss (Reserves)

ALL Reserve ($,B) Tot Eq ($, B)

($ in

bill

ions

)

$3.0$3.6

$4.8

$6.4

$7.6

$8.6

CBA

Allowance Book Value

Consistent and profitable origination model continues to drive book value growth. Allowance levels provide greater cushion for losses which improves the credit profile and benefits funding access.

Page 65: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

65

Peer 1

Peer 2

Peer 3

SC, 0.96x

Peer 4

Peer 5

Peer 6

Peer 7

Peer 8

Peer 9

Peer 10

Peer 11

y = 8.7957x + 0.4907R² = 0.466

0.00x

0.50x

1.00x

1.50x

2.00x

2.50x

3.00x

3.50x

4.00x

0% 5% 10% 15% 20% 25% 30% 35%

P/TB

V1

2016 ROAE1

VALUATION GAP

Source: SNL Financial, FactSetNote: Peer set selected based upon size of auto portfolio, similar business model, or auto lender1 ROAE = Net Income / (Average Equity less Intangible Assets)2 Peers in no particular order: SYF, ALLY, CFG, HBAN, TD-TSX, FITB, COF, OMF, CPSS, DFS, CACC

Demonstrated ability to generate book value and strong return on equity performance warrants higher valuation based on market observation

CBA

Page 66: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

66LEASE RESIDUAL VALUES CBA

SC uses market and proprietary data to support a disciplined approach to establishing lease residual values

Illustrative Residual Value Example

$10,000$10,500

$14,500

($500) $600

$400

$1,500

$2,500

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

Base ALG SC Adjustment MileageAdjustment

Other Adjustment Contract ResidualLess Incentives

and Taxes("CRLIT")

FCA ResidualIncentive

Govt. Electric TaxBenefit

Contract ResidualValue

Page 67: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

67LEASE RESIDUAL PERFORMANCE

*Disposition data retrieved on 2017-02-02; includes Early Term and Full Term dispositions*Residual performance represents post risk share (included fees collected and paid)*Residual performance represents total SC lease portfolio

More than 105,000 lease dispositions since inception (Q2 2013) resulting in more than a 3% gain to CRLIT (or approximately $70 million)

CBA

$2

$7 $7

$3 $4

$12

$19

$11 103%

104%

103%

102%102%

103%

105%

103%

$-

$5

$10

$15

$20

$25

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q498%

100%

102%

104%

106%

108%

Leas

e Re

turn

s (P

ost R

isk S

hare

) Mill

ions

Liquidation Quarter

% Gain/(Loss) vs CRLIT

Lease Returns (Post Risk Share)

Gain/(Loss) as % of CRLIT

Page 68: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

68MATERIAL WEAKNESS REMEDIATION PROGRESS

Material Weakness Planning Control Execution Validation

Accounting (GAAP) Application and Controls

• Application of effective interest method for accretion

• Methodology to estimate credit loss allowance

• Review of new, unusual or significant transactions

• Loans modified as TDRs

• Statement of Cash Flows

Models/Governance

• Models used to estimate the credit loss allowance

• Models used to estimate discount accretion

Overall Control Environment

• Controls, Risks, Monitoring

• Review Financial Disclosures

`

`

`

` Not yet started In-progressLegend

`

`

`

`

Completed

CBA

Page 69: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

69

• Continued focus on operational efficiency and disciplined underwriting to maximize volume and profitability

• Leverage scale and technology advantage

• Recognize benefits of Banco Santander flow agreement

2017 PRIORITIES

• Focus on continuous improvement in compliance

• Simple, Personal, Fair approach with customers, employees and all third parties

VEHICLE FINANCE

SERVICED FOR OTHERS

FUNDING AND LIQUIDITY

CULTURE OF COMPLIANCE

• Optimize diverse sources of liquidity

• Maintain leadership in ABS markets

Page 70: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

QUESTION & ANSWER SESSION

Page 71: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

APPENDIX

Page 72: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July

72RECONCILIATION OF NON-GAAP MEASURES

See slide 52: SC non-GAAP language

“Expected Risk Adjusted Yield” is a forward-looking non-GAAP measure that the Company believes is helpful to readers in evaluating the estimated profitability of retained loans from certain origination periods. The Expected Risk Adjusted Yield has two components:

(1) The “Modeled Effective Yield” is the calculated yield at origination (including discount, subvention, etc.) updated in consideration of interest on loans that may not be received due to delinquency and charge-off. (2) The “Adjusted Net Charge-Off Ratio” reflects the expected net charge-off at origination and is subsequently updated for performance at approximately 12 months on book.”

These figures have been calculated per proprietary models

Page 73: SANTANDER CONSUMER USA HOLDINGS INC...Mr. Kulas has served as Santander Consumer USA Holdings Inc.’s (SC) Chief Executive Officer and a member of our Board of Directors since July