Slide 1: Preliminary 2008 Third Quarter Results
Preliminary 2008 Third Quarter Results November 5, 2008 9:00 AM EDT Contact GMAC Investor Relations at (866) 710-4623 or investor.relations@gmacfs.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements In the presentation that follows and related comments by GMAC LLC ("GMAC") management, the use of the words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursu
Slide 3: Table of Contents
Table of Contents GMAC Page 4 Global Auto Finance Page 6 Insurance Page 10 ResCap Page 12 Liquidity and Funding Page 18 Summary Page 22 Supplemental Page 23
Slide 4: GMAC: Third Quarter 2008 Performance Highlights
GMAC: Third Quarter 2008 Performance Highlights Q3 2008 consolidated loss of $2.5 billion ResCap performance characterized by credit-related losses and limited revenue opportunities due to deterioration in the domestic and international housing markets Insurance operations remained profitable North
Slide 5: GMAC: Net Income and Significant Items
GMAC: Net Income and Significant Items Notable Items (Pre-tax) Net Income by Segment * Includes Commercial Finance operating segment, 21% ownership of former commercial mortgage unit and other corporate activities.
Slide 6: Global Auto Finance: Key Metrics
Global Auto Finance: Key Metrics Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Net Income 593 398 395 554 137 258 -717 -294 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Used 1.4 2 2.1 2.3 1.9 2.1 2.7 2 New 10.8 12.3 14 14.5 13.4 12.9 12.4 11.3 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07
Slide 7: Global Auto Finance: Condensed Income Statement
Global Auto Finance: Condensed Income Statement
Slide 8: Global Auto Finance: Consumer Auto Loss Trends
Global Auto Finance: Consumer Auto Loss Trends Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Managed 0.0122 0.0113 0.0092 0.0101 0.0105 0.0134 0.014 0.0155 Net Retail Losses (% Avg Assets) Q3 2008 1.90% 0.28% 0.70% 1.52% 1.55% Q3 2007 1.19% 0.41% 0.35% 0.74% 1.01% Year over Year Change +71
Slide 9: Global Auto Finance: Auto Delinquency Trends
Global Auto Finance: Auto Delinquency Trends Loans > 30 Days Past Due Q3 2008 2.69% 1.43% 1.79% 3.88% 2.62% Q3 2007 2.69% 1.36% 2.04% 4.03% 2.63% Year over Year Change 0bps +7bps -25bps -15bps -1bps Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Managed 0.026132226 0.025186718 0.024565484 0
Slide 10: Insurance: Key Metrics
Insurance: Key Metrics Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Net Income 735 143 131 117 68 132 135 97 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Core 170 143 134 114 70 131 84 154 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Combined 0.925 0.91 0.902 0.953 0
Slide 11: Insurance: Condensed Income Statement
Insurance: Condensed Income Statement
Slide 12: ResCap: Key Messages
ResCap: Key Messages Operating and market environments Execution of strategic initiatives is reducing the balance sheet and lowering operating costs; however, current market conditions continue to pose problems Revenue opportunities are limited Credit-related costs are high Foreign currency has had
Slide 13: ResCap: Key Metrics
ResCap: Key Metrics Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Net income 83 -128 -910 -254 -2261 -921 -859 -1860 -1912 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Total HFI, net of Allowance 73.1 67.9 63.6 61 59 41.3 34.001 30.3 28.8 All Other 59.508191 72.2 6
Slide 14: ResCap: Condensed Income Statement
ResCap: Condensed Income Statement* *Income statement presentation (condensed) as it appears on a GMAC reported basis; results on a ResCap reported basis can be found on page 29 of this presentation.
Slide 15: ResCap: Global Portfolio Credit Quality
ResCap: Global Portfolio Credit Quality Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 % MLFI net charge-offs to total 0.0016 0.002 0.0025 0.0033 0.0033 0.004 0.0073 0.0076 0.0041 0.0061 0.0066 0.0046 0.0067 0.0071 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07
Slide 16: ResCap: Nonprime and Prime Exposure
Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Nonprime 1.2 0.3 0.2 0.2 0.2 0.2 0.1 Prime 5.3 3.6 1.6 1.5 1.6 1.3 1.2 ResCap: Nonprime and Prime Exposure Prime and Other2 1) The nonprime category includes high FICO/high LTV loans, high FICO alternative attribute loans, purchased distressed assets,
Slide 17: ResCap: Capital and Liquidity
ResCap: Capital and Liquidity Total equity of $2.3 billion (9/30/08) GMAC contributed $93 million of ResCap bonds, with a market value of just over $50 million and forgave the related $2 million of accrued interest, as well as $102 million of debt, for a favorable impact to equity of $197 million Ta
Slide 18: Global Liquidity: GMAC Bank
Global Liquidity: GMAC Bank Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Assets 23.5 28.1 28.4 30.3 31.9 32.9 Deposit Liabilities 10.7 14.5 12.8 15.4 16.9 17.7 Continuing to grow GMAC Bank assets and deposits in line with FDIC guidelines Assets of $32.9 billion include $8.5 of assets at the auto divisi
Slide 19: Global Liquidity: Roll Forward
Global Liquidity: Roll Forward Cash fell $0.8 billion in the quarter mostly owing to debt maturities
Slide 20: GMAC: Funding Components
GMAC: Funding Components ‘September 30, 2008, Tune 30, 2008 rT ro \period ended in biions) ResCap Consolidated ResCap Consolidated [Short-term debt Commercial paper $0.2 $0.7 $0.3 st Demand notes 00 39 0.0 57| Bank loans and overdrafts 00 48 00 66 Repurchase agreements and other (a) 68 96 96 120] [T
Slide 21: GMAC: Committed Funding Facilities
GMAC: Committed Funding Facilities
Slide 22: Conclusion
Conclusion Due to current market and funding challenges, GMAC is pursuing a tough "self help" plan Restructuring ResCap and Auto Finance operations Refinanced bank commitments and ResCap liability structure Secured ownership of GMAC Bank for 10 years Shedding non-core operations Limiting origination
Slide 23: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES {03 2008 GMAC Preliminary Resuts 23
Slide 24: GMAC: Preliminary Q3 Consolidated Net Income Supplemental
GMAC: Preliminary Q3 Consolidated Net Income Supplemental
Slide 25: GMAC: Preliminary Consolidated Balance Sheet Supplemental
GMAC: Preliminary Consolidated Balance Sheet Supplemental
Slide 26: Global Auto Finance: Lease Residual Trends
Global Auto Finance: Lease Residual Trends U.S. and Canada Sales Proceeds as a % of Original ALG Estimate Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2005 101.8610783 104.3917374 108.0019965 109.6538096 108.9511979 105.8965373 104.3570196 106.4569628 105.0085612 101.6797595 101.1698672 102.87074
Slide 27: Auto Finance: Portfolio Composition Supplemental
Auto Finance: Portfolio Composition Supplemental North America Lease Portfolio by Vehicle Mix As of 9/30/08
Slide 28: Reconciliation of Insurance Core Earnings
Reconciliation of Insurance Core Earnings 1 Amount within premium tax and other expense in Forms 10-Q and 10-K. 2 Amount within investment income in Forms 10-Q and 10-K. Supplemental
Slide 29: ResCap: Income Statement
ResCap: Income Statement Note: Numbers may not foot due to rounding. Income statement presentation (condensed) as it appears on ResCap's reported basis; results as they appear on a GMAC reported basis can be found on page 14 of this presentation. Supplemental
Slide 30: ResCap: Mortgage Production
ResCap: Mortgage Production 1 International includes some nonprime production. 1 1 Supplemental Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Total Domestic 43.9 41.3 31 27.2 20.2 15.5 18.7 17 11.2 Total International 7.5 8 6.5 7.7 9.1 5.3 2.2 1 0.6 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '0
Slide 31: ResCap: Global HFS Portfolio
HFS and HFI Q3 08 transfers: HFS to HFI $260 million HFI to HFS $11 million ResCap: Global HFS Portfolio Q308 Prime Conforming 0.5 Prime Nonconforming 1.9 Nonprime 0.7 Prime Second-lien 0 Government 1 Q3 08 Non-Agency Public Securitizations 0.2 Agency 10.7 Non-Agency Whole Loans 2.3 Supplemental
Slide 32: ResCap: HFI Portfolio
ResCap: HFI Portfolio Q407 Non-Bank HFI 10.8 GMAC Bank HFI 15 159 Loans Fair Value - On-BS HFI Securitizations 16.3 Q3 08 Non-Bank HFI 7.3 GMAC Bank HFI 15.7 159 Loans Fair Value 2.2 On-BS HFI Securitizations 4.6 Q3 08 Non-Bank HFI 7.3 GMAC Bank HFI 15.7 159 Loans Fair Value 2.2 On-BS HFI Securitiza
Slide 33: ResCap: Q3 Significant Items
ResCap: Q3 Significant Items 1 Q3 and Q2 2008 "HFS Valuation" includes losses from certain nonconforming asset sales. Note: These amounts are classified according to ResCap's income statement presentation (includes Auto division of GMAC Bank). Supplemental