Ally Financial Inc. · NYSE:ALLY
Ally Financial — GMAC — Shareholder Meeting (April 2010)
16 slides from Ally Financial's shareholder meeting presentation, Apr 23, 2010
Slide 1: Annual Shareholders' Meeting
Contact GMAC Investor Relations at (866) 710-4623 or investor.relations@gmacfs.com Annual Shareholders’ Meeting
Slide 2: Forward-Looking Statements
Forward-Looking Statements In the presentation that follows and related comments by GMAC Inc. (“GMAC”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “explore,” “positions,” “in
Slide 3: Transformational Year
Transformational Year In 2009, GMAC made significant progress transforming the Company and positioning itself for improved results going forward: Auto Finance Franchise: Regained market share, added a new OEM relationship, achieved profitability in each quarter of 2009 and began an orderly dispositi
Slide 4: Full Year 2009 Financial Results
Core pre-tax earnings (1) remained weak in 2009 but improved from 2008 levels Weak economic conditions (high unemployment and declining home prices) High levels of credit losses and continued reserve build in auto, mortgage and commercial finance portfolios Strategic mortgage actions (revaluation of
Slide 5: 2009 Full Year Results by Segment
2009 Full Year Results by Segment Global Automotive Services profitability improved significantly in 2009; driven by improving results in North American Operations Mortgage Operations results continued to be weak and were impacted by the strategic actions taken in 4Q Inc/(Dec) vs. FY 2009 FY 2008 FY
Slide 6: Global Automotive Services
Global Automotive Services North American Operations Origination volumes improved, increased penetration of GM and Chrysler financing volume Lease impairments in 2008 did not recur Used car prices improved, resulting in reduced loss severity and higher remarketing gains International Operations Stre
Slide 7: Global Auto Finance: Consumer Delinquency Trends
Delinquency trends in the core auto portfolio stabilized in the second half of 2009 Legacy subprime Nuvell portfolio significantly impacting delinquent balances Ratios impacted by declining portfolio balances Global Auto Finance: Consumer Delinquency Trends Global Delinquencies - Managed Retail Cont
Slide 8: Global Auto Finance: Consumer Loss Trends
Global Auto Finance: Consumer Loss Trends Annualized credit losses were elevated in 2009 due to overall weak economic conditions Continued stress in subprime Nuvell portfolio Loss severity improved in 2009 due to strong used car prices Global Annualized Credit Losses - Managed Retail Contracts ($ mi
Slide 9: Mortgage Operations
Mortgage Operations Focused on de-risking legacy mortgage portfolio Pre-tax loss of $7.3 billion driven by: 4Q strategic actions -- mortgages with $9.0 billion of UPB reclassified as held for sale and written down by $3.3 billion $2.3 billion credit loss provision expense (excluding 4Q strategic act
Slide 10: Fourth Quarter Strategic Mortgage Actions
In the 4th Quarter, GMAC took several strategic actions to address challenges in the legacy mortgage business, which were designed to: Minimize impact of future ResCap issues and position GMAC for improved financial performance Accelerate access to the capital markets Position GMAC to explore strate
Slide 11: Liquidity
Liquidity GMAC’s liquidity profile has significantly improved over the past year Building lower cost deposit base Grew deposits by $11 billion in 2009 Parent company liquidity grew to $31.4 billion at 12/31/09 $8.9 billion in cash $12.5 billion available based on existing collateral Improved access
Slide 12: Capital
Capital Total capital base has improved despite absorbing losses while working through legacy assets Total Risk Based Capital Ratio of 15.5% Balance sheet has been reduced by $120 billion since 2006 Sale and wind down of legacy mortgage assets Divestiture of non-core assets/divisions Continued focus
Slide 13: Conclusion
Conclusion Objectives Capitalize on opportunities in the auto finance business Drive critical focus on profitability Demonstrate improved access to the capital markets Transition fully to bank holding company model Expand use of deposits and other cost efficient funding at Ally Bank Explore strategi
Slide 14: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES 2010 GHAC Annual Shareholders’ Meeting 14
Slide 15: Core Earnings Walk Supplemental
Core Earnings Walk Supplemental ($ millions) 2009 2008 Inc / (Dec) Total net revenue (less OID and bond exchange gains) 7,404 $ 3,975 $ 3,429 $ Provision for loan losses 6,043 3,410 2,633 Noninterest expense 8,156 8,649 (493) Core pre-tax (loss) income (6,795) $ (8,084) $ 1,289 $ OID amortization (1
Slide 16: Capital Measures as of 12/31/09 Supplemental
Capital Measures as of 12/31/09 Supplemental Capital 12/31/2009 3/31/2009 Shareholders’ Equity 20.8 $ 22.0 $ Less: Goodwill and certain other intangibles (0.5) (1.4) Unrealized (gain) loss and other adjustments (0.4) (0.1) Trust Preferred Securities 2.5 - Total Tier 1 Capital 22.4 20.5 Total Tier 1