Slide 1: Preliminary 2007 Fourth Quarter and Full Year Earnings
Preliminary 2007 Fourth Quarter and Full Year Earnings February 5, 2008 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 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 1. GMAC Page 4 2- Global Auto Finance Page 6 3- Insurance Page 10 4- ResCap Page 12 5- Liquidity and Funding Page 18 6- Summary Page 19 7- Supplemental Page 20
Slide 4: 2007 - Fourth Quarter Performance Highlights
2007 - Fourth Quarter Performance Highlights Q4 2007 loss of $724 million, versus earnings of $1,016 million in Q4 2006 Loss driven by ResCap performance due to asset write downs and impairments, restructuring costs, weaker consumer credit. Partially offset by gains from the repurchase and retiremen
Slide 5: Net Income and Significant Items
Net Income and Significant Items GMAC Consolidated Significant Items Net Income by Segment
Slide 6: Global Auto Finance - Key Metrics
Global Auto Finance - Key Metrics Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Net Income 211 154 285 593 399 395 554 137 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Used 1.5 1.5 1.4 1.4 2.1 2.1 2.3 1.9 New 12.3 12.9 18.8 10.8 12.3 14 14.5 13.4 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '
Slide 7: Global Auto Finance - Condensed Income Statement
Global Auto Finance - Condensed Income Statement
Slide 8: Auto Delinquency Trends - Managed Portfolio
Auto Delinquency Trends - Managed Portfolio Loans > 30 Days Past Due Q4 2007 2.77% 1.36% 1.90% 4.06% 2.68% Q4 2006 2.62% 1.77% 2.44% 3.79% 2.61% Year over Year Change +15bps -41bps -54bps +27bps +7 bps North America Europe Asia Pacific Latin America Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q
Slide 9: Consumer Auto Loss Trends - Managed Net Retail Losses
Consumer Auto Loss Trends - Managed Net Retail Losses (% Avg Assets) YTD 2007 1.20% 0.32% 0.35% 1.04% 1.02% YTD 2006 1.20% 0.73% 0.33% 0.92% 1.10% Year over Year Change 0bps -41bps +2bps +12bps -8bps North America Europe Asia Pacific Latin America Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4
Slide 10: Insurance - Key Metrics
Insurance - Key Metrics Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Net Income 129 80 183 735 143 131 117 68 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Core 118 85 126 170 143 134 114 70 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Combined 0.913 0.962 0.894 0.925
Slide 11: Insurance - Condensed Income Statement
Insurance - Condensed Income Statement
Slide 12: ResCap Key Operating Issues
ResCap Key Operating Issues U.S. Residential Finance Reduced assets largely through nonprime deconsolidation removing $22 billion from the balance sheet in the fourth quarter Maintained prime conforming agency production while reducing nonprime and prime nonconforming production Servicing portfolio
Slide 13: ResCap - Key Metrics
ResCap - Key Metrics Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Net income 201 548 83 -128 -910 -254 -2261 -921 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Total HFI, net of Allowance 72.7 71.4 73.1 67.9 63.6 61 59 41.3 All Other 49.26537 53.160608 59.508191 67.658868 62.412
Slide 14: ResCap - Condensed Income Statement
ResCap - Condensed Income Statement *Income statement presentation (condensed) as it appears in GMAC's Form 10-K; results as they appear in ResCap's Form 10-K can be found on page 23 of this presentation.
Slide 15: ResCap - Nonprime and Prime Exposure
Q1 '07 Q2 '07 Q3 '07 Q4 '07 Nonprime 1.2 0.3 0.2 0.2 Prime 5.3 3.6 1.6 1.5 ResCap - Nonprime and Prime Exposure Prime and Other1 1) Prime and Other includes Prime Conforming, Prime Nonconforming, Prime Second-Lien, and Government. 2) The nonprime category includes high FICO/high LTV loans, high FICO
Slide 16: ResCap - Global Portfolio Credit Quality
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 % MLFI nonaccruals to total 0.084 0.083 0.092 0.105 0.119 0.14 0.141 0.127 ResCap - Global Portfolio Credit Quality Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 % MLFI net charge-offs to total 0.0016 0.002 0.0025 0.0033 0.0033 0.004
Slide 17: ResCap Capital and Liquidity
ResCap Capital and Liquidity Global ResCap cash and cash equivalents of $4.4 billion (12/31/07) ResCap cash declined compared to Q3 2007 for several reasons including: Cash expended on the Tender Offer to repurchase debt at a discount Incremental cash requirements to support inventory held in Intern
Slide 18: GMAC Liquidity
GMAC Liquidity The company's liquidity profile did not change materially in the quarter While cash and marketable securities are down, debt is also down *Includes highly liquid marketable securities at 9/30/2007 of $4.8 billion and $5.0 billion at 12/31/2007. **Changes in loans held for sale, gross
Slide 19: Summary: Challenging performance throughout 2007
Challenging performance throughout 2007 Losses in Q4 2007 are smaller than those in Q3 2007, showing that actions undertaken in 2007 are starting to produce results Restructured ResCap Tightened lending standards Reduced balance sheet Accelerated Auto Finance "originate to distribute" model Took app
Slide 20: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES ‘04 2007 and Ful-Year GMAC Preliminary Eamings Release 20
Slide 21: Preliminary Q4 Consolidated Net Income Supplemental
Preliminary Q4 Consolidated Net Income Supplemental
Slide 22: Preliminary Full Year Consolidated Net Income Supplemental
Preliminary Full Year Consolidated Net Income Supplemental
Slide 23: ResCap - Income Statement
ResCap - Income Statement* 1) Includes $521 million after-tax gain on retirement of debt in Q4 of 2007 as a result of the ResCap tender and debt purchased in open market transactions by GMAC and contributed to ResCap, which was subsequently retired. *Income statement presentation (condensed) as it a
Slide 24: Sale Proceeds on Lease Terminations - Managed U.S.
Sale Proceeds on Lease Terminations - Managed U.S. Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Net Income 16079 15425 14543 14962 15638 15992 15446 14886 Note: 36-month Leases (adjusted for Q4 2007 vehicle mix). Represents GMAC owned portfolio in the United States. Supplemental
Slide 25: Reconciliation of Insurance Core Earnings
Reconciliation of Insurance Core Earnings Amount within premium tax and other expense in Forms 10-Q and 10-K. Amount within investment income in Forms 10-Q and 10-K. Supplemental
Slide 26: ResCap Mortgage Production
ResCap Mortgage Production 1) International includes some nonprime production 1 1 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Total Domestic 43.9 41.2 31 27.2 20.2 15.6 Total International 7.5 8 6.5 7.7 9.1 5.3 Q106 Q206 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Prime Conforming 8.6 12 12 10.8 9.6 12.
Slide 27: ResCap - Global HFS Portfolio
During Q4 transferred $4.9 billion from HFS to HFI ResCap - Global HFS Portfolio 4Q07 Prime Conforming 3.1 Prime Nonconforming 5.4 Nonprime 2 Prime Second-lien 0.7 Government 0.8 1st Qtr Non-Agency Public Securitizations 1.7 Agency 13.5 Non-Agency Whole Loans 3.8 Supplemental 27
Slide 28: ResCap - Q4 Significant Items
ResCap - Q4 Significant Items Note: These amounts are classified according to ResCap's income statement presentation. Supplemental