Slide 1: Preliminary 2009 Fourth Quarter Results
Preliminary 2009 Fourth Quarter Results February 4, 2010 9:00 AM EST 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 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: GMAC: Overview
GMAC: Overview During 2009, GMAC made significant progress towards achieving these objectives and is positioned for improved results going forward: Auto Finance Franchise : Added a new OEM partner, was profitable in each quarter of 2009 and gained market share throughout the year Capital : Improved
Slide 4: GMAC: Fourth Quarter 2009 Highlights
Fourth quarter results impacted by the following significant items: GMAC: Fourth Quarter 2009 Highlights Key Statistics ($ millions) 4Q 09 3Q 09 4Q 08 (1) 3Q 09 4Q 08 Net financing revenue 603 $ 571 $ (426) $ 32 $ 1,029 $ Provision for loan losses (2) 3,432 $ 682 $ 1,251 $ 2,750 $ 2,181 $ Net (loss)
Slide 5: GMAC: Revised Segment Reporting View
GMAC: Revised Segment Reporting View GMAC implemented a Funds Transfer Pricing (“FTP”) methodology in the fourth quarter to further align with industry and bank holding company best practices Revised segment results reflect the central management of interest rate risk Insulates the business segments
Slide 6: GMAC: Results by Segment
GMAC: Results by Segment (1) Corporate and Other includes Commercial Finance, equity investments, amortization of original issue discount from GMAC bond exchange and net impact from ALM activities (2) See slide 23 for a detailed listing of businesses classified as discontinued operations (3) Net los
Slide 7: Global Automotive Services: Highlights
Global Automotive Services: Highlights Global Automotive Services earned $309 million of pre-tax income from continuing operations compared to $420 million in the third quarter Improved net financing revenue driven by strong remarketing gains offset by: Loss in International Operations related to ce
Slide 8: North American Automotive Finance: Highlights
North American Automotive Finance: Highlights Overall U.S. auto market sales were down 13% quarter-over-quarter due to impact of “cash for clunkers” in third quarter Leasing impact is minimal but growing Used car values moderated slightly in 4Q 2009 due to seasonal trends but performing above recent
Slide 9: North American Automotive Finance: Condensed Income Statement
North American Automotive Finance: Condensed Income Statement ($ millions) 4Q 09 3Q 09 4Q 08 3Q 09 4Q 08 Total financing revenue and other interest income 2,064 $ 2,182 $ 2,581 $ (118) $ (517) $ Interest expense 534 556 767 (22) (233) Depreciation expense on operating lease assets (1) 700 843 1,281
Slide 10: International Automotive Finance: Highlights
International Automotive Finance: Highlights International Auto Operations have been streamlined to focus on five main countries (listed below) Approximately 85% of new originations come from these countries Eight additional operations classified as discontinued and marked in 4Q (see page 23) Strong
Slide 11: International Automotive Finance: Condensed Income Statement
International Automotive Finance: Condensed Income Statement ($ millions) 4Q 09 3Q 09 4Q 08 3Q 09 4Q 08 Total financing revenue and other interest income 568 $ 596 $ 808 $ (28) $ (240) $ Interest expense 295 314 537 (19) (242) Depreciation expense on operating lease assets 40 51 61 (11) (21) Impairm
Slide 12: Global Automotive Finance: Consumer Delinquency Trends
Delinquency trends in the core auto portfolio have stabilized over the past three quarters Our legacy subprime Nuvell portfolio is contributing approximately 38% of North American delinquent balances $4 billion portfolio is expected to run off to approximately $2 billion by the end of 2010 Global Au
Slide 13: Global Automotive Finance: Consumer Loss Trends
Global Automotive Finance: Consumer Loss Trends Losses were elevated in the fourth quarter due to continued weak economic conditions, seasonal trends and slightly higher loss severity Continued stress in subprime Nuvell portfolio in 4Q Global Annualized Credit Losses - Managed Retail Contracts North
Slide 14: Global Automotive Finance: Credit Allowance Coverage Ratios
Global Automotive Finance: Credit Allowance Coverage Ratios North American and International consumer coverage ratios increased slightly in the fourth quarter Over half of North American allowance balance is attributed to the Nuvell portfolio Commercial coverage ratio is flat relative to the prior q
Slide 15: Insurance: Condensed Income Statement and Highlights
Insurance: Condensed Income Statement and Highlights Segment streamlined to focus primarily on dealer-centric products Extended service contracts Dealer inventory insurance U.K. P&C and U.S. P&C business now included in discontinued operations Written and earned premiums lower due to lower dealer in
Slide 16: Mortgage Operations: Highlights
Mortgage Operations: Highlights Mortgage Operations includes ResCap, LLC as well as the mortgage activities of Ally Bank and ResMor Trust Pre-tax loss of $4.0 billion from continuing operations for the quarter, primarily driven by the fourth quarter actions previously announced: $2.6 billion of mark
Slide 17: Mortgage Operations: Highlights
Mortgage Operations: Highlights Originations increased to $18.1 billion in the fourth quarter from $15.9 billion in the third quarter driven by higher conforming loan production Conforming and government loans comprised 98% of new domestic originations GMAC is the fifth largest mortgage servicer in
Slide 18: Mortgage Operations: Condensed Income Statement
Mortgage Operations: Condensed Income Statement ($ millions) 4Q 09 3Q 09 4Q 08 3Q 09 4Q 08 Total financing revenue and other interest income 466 $ 490 $ 637 $ (24) $ (171) $ Interest expense 400 362 618 38 (218) Net financing revenue 66 128 19 (62) 47 Servicing fees (1) 315 326 333 (11) (18) Servici
Slide 19: Mortgage Operations: Credit Allowance Coverage Ratios
Mortgage Operations: Credit Allowance Coverage Ratios Strategic actions expected to reduce the level of future provision expense Credit allowance balance down in 4Q 2009 due to transfers to HFS Consumer coverage ratio up based on macroeconomic uncertainty and continued stress within the housing indu
Slide 20: Mortgage Operations: HFI Portfolio
Mortgage Operations: HFI Portfolio ($ billions) HFI as of 9/30 Reclassification to HFS (1) Additional Movement to Disc Ops Amortization and Other Activity HFI as of 12/31 Ally Bank (2) 13.1 $ 2.7 $ - $ 0.7 $ 9.7 $ ResMor 0.2 - - - 0.3 ResCap, LLC 7.9 3.8 1.7 0.5 1.8 Total Mortgage Operations 21.2 $
Slide 21: ResCap, LLC: Balance Sheet Analysis
ResCap, LLC: Balance Sheet Analysis $12.0 billion Cash, accounting and other less value sensitive assets $7.3 billion Assets carried at fair or net realizable value Cash and Cash Equivalents 0.8 $ Accounts Receivable (Servicing Advances, etc) 2.5 Securitized Assets (1) 5.8 Derivatives and Derivative
Slide 22: Corporate and Other: Condensed Income Statement
Corporate and Other: Condensed Income Statement Note: Corporate and Other includes Commercial Finance, equity investments, amortization of original issue discount from GMAC bond exchange and net impact from ALM activities ($ millions) 4Q 09 3Q 09 4Q 08 3Q 09 4Q 08 Net financing loss (1)(5) (576) $ (
Slide 23: GMAC: Discontinued Operations
GMAC: Discontinued Operations (1) Corporate and Other includes Commercial Finance, equity investments, amortization of original issue discount from GMAC bond exchange and net impact from ALM activities Impact of Discontinued Operations, net of tax Inc/(Dec) vs. ($ millions) 4Q 09 3Q 09 3Q 09 North A
Slide 24: GMAC: Liquidity
(1) Includes TLGP issuance of $2.9B in 4Q 2009 (2) Excludes any non-cash changes (3) GMAC Consolidated includes Insurance, ResCap, and Ally Bank (4) Includes approximately $5.1 billion and $5.2 billion of overnight funds on deposit at Ally Bank from GMAC Inc. as of 12/31/09 and 9/30/09, respectively
Slide 25: GMAC: Liquidity Sources
Ally Bank in the U.S. and ResMor Trust in Canada provide funding flexibility for GMAC through deposit-taking capabilities Net deposits grew again in the fourth quarter as we continued to build on the strength of the Ally brand promise Introduced a customer-friendly online checking account in January
Slide 26: GMAC: Capital Ratios
GMAC: Capital Ratios See slide 32 for further details on capital numbers stated above Implementation of FAS 166/167 will result in an increase of GAAP assets by approximately $7 billion and $13 billion in auto and mortgage assets, respectively as of January 1, 2010 GMAC has elected the regulatory ag
Slide 27: GMAC: Outlook
GMAC: Outlook 2010 Objectives Capitalize on opportunities in the auto finance business Demonstrate improved access to the capital markets Grow deposit base at Ally Bank Drive critical focus on profitability Explore strategic alternatives to maximize value of mortgage operations and further limit ris
Slide 28: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES “40 2009 GMAC Preliminary Resuts 28
Slide 29: GMAC: Preliminary Consolidated Condensed Income Statement
GMAC: Preliminary Consolidated Condensed Income Statement Supplemental ($ millions) 4Q 09 3Q 09 4Q 08 3Q 09 4Q 08 Total financing revenue and other interest income 3,108 $ 3,278 $ 4,078 $ (170) $ (970) $ Interest expense 1,764 1,813 2,752 (49) (988) Depreciation expense on operating lease assets 741
Slide 30: GMAC: Preliminary Consolidated Condensed Balance Sheet
GMAC: Preliminary Consolidated Condensed Balance Sheet Supplemental Increase/ (Decrease) vs. ($ millions) 12/31/09 12/31/08 12/31/08 Cash and cash equivalents 14,788 $ 15,151 $ (363) $ Trading securities 739 1,207 (468) Investment securities 12,158 6,237 5,921 Loans held-for-sale 20,625 7,919 12,706
Slide 31: ResCap, LLC: Key Financial Information
ResCap, LLC: Key Financial Information ResCap, LLC met its covenants with tangible net worth of $275 million at the end of the fourth quarter (1) Year-end 2009 HFI consists primarily of non-recourse securitized loans (2) For the purpose of ResCap’s tangible net worth covenants, consolidated tangible
Slide 32: GMAC: Capital Measures as of 12/31/09
GMAC: Capital Measures as of 12/31/09 Supplemental Capital 12/31/2009 9/30/2009 Shareholders’ Equity 20.8 $ 24.9 $ Less: Goodwill and certain other intangibles (0.5) (0.7) Unrealized (gain) loss and other adjustments (0.4) (0.5) Trust Preferred Securities 2.5 n/a Total Tier 1 Capital 22.4 23.8 Total
Slide 33: GMAC: Term Debt Maturity Profile
GMAC: Term Debt Maturity Profile Supplemental Note: Numbers may not foot due to rounding. Maturities are as of 12/31/2009 and reflect par value of debt. Excludes original issue discount of $4.4 billion, and collateralized borrowings in securitization trusts representing mortgage lending related debt
Slide 34: GMAC: Ownership Structure
GMAC: Ownership Structure Supplemental Common Ownership as of 12/31/2009 US Treasury 56.3% Cerberus 14.9% 3rd Party Investors 12.2% GM Trust 9.9% GM 6.7% ($ millions) Series Owner Liquidation Preference Book Value Trust Preferred Securities (1) U.S. Treasury $2,667.0 $2,540.0 Series F-2 Mandatory Co