Slide 1: Second Quarter 2007 Preliminary Earnings
Exhibit 99.2 2:30 30, Exhibit 2007 Preliminary July PM Second 99.2 2007 ET Quarter Earnings 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: 2007 – Second Quarter Performance Highlights
2007 – Second Quarter Performance Highlights Q2 2007 net income of $293 million, vs. earnings of $787 million in Q2 2006 • Earnings improvement of $598 million from Q1 2007 • Excluding ResCap, Q2 net income doubled year-over-year Results at ResCap improved despite continuing pressure in the U.S. res
Slide 4: Second Quarter Net Income
Second Quarter Net Income Memo: ($ millions) Q2 2007 Q2 2006 Change Q1 2007 Global Automotive Finance $382 $137 $245 $396 Insurance 131 80 51 143 Other* 34 22 12 66 Net income before ResCap 547 239 308 605 ResCap** (254) 548 (802) (910) Consolidated net income $293 $787 ($494) ($305) * Includes Comm
Slide 5: Second Quarter Pre-tax Income
Second Quarter Pre-tax Income Memo: ($ millions) Q2 2007 Q2 2006 Change Q1 2007 Global Automotive Finance $431 $124 $307 $436 Insurance 188 117 71 191 Other* 37 27 10 69 Pre-tax income before ResCap 656 268 388 696 ResCap** (204) 879 (1,083) (851) Consolidated pre-tax income 452 1,147 (695) (155) Ta
Slide 6: ResCap – Q2 2007 Key Metrics
ResCap – Q2 2007 Key Metrics • US mortgage market remains volatile and U.S. Residential credit has weakened as expected Finance • Actions taken to reduce nonprime exposure and limit nonprime production helped performance • Nonprime warehouse exposure greatly reduced Business & Warehouse • Business l
Slide 7: ResCap – Nonprime Risk
ResCap – Nonprime Risk Reduced nonprime exposure: • Held for Sale portfolio decreased through sales and lower production • Steady asset run-off in the Held for Investment portfolio • Successful loan restructuring / sales in the warehouse lending business Loan Servicing Portfolio Warehouse Lending Re
Slide 8: ResCap – U.S. HFS Portfolio
ResCap – U.S. HFS Portfolio During the second quarter, ResCap originated $27.2 billion • Originated $0.7 billion of nonprime product compared to $6.1 billion in Q2 2006 Total Q2 2007 sales were $25.8 billion U.S. nonprime HFS is $1.9 billion, a decrease of $1.2 billion from $3.1 billion at Q1 Q2 200
Slide 9: ResCap – U.S. HFI Portfolio
ResCap – U.S. HFI Portfolio U.S. HFI portfolio declined by $2.4 billion during Q2 • Nonprime decreased $3.1 billion to $41.9 billion or 70% of the portfolio • Prime increased $633 million to $17.6 billion or 30% of the portfolio; driven by strategy to grow prime loan portfolio U.S. nonprime HFI redu
Slide 10: ResCap – Warehouse Lending & Servicing
ResCap – Warehouse Lending & Servicing Warehouse Receivables: • Warehouse Lending Receivables declined to $3.9 billion – Nonprime exposure only $0.3 billion, or 8% of Warehouse Lending Receivables – Nonprime exposure decreased by approximately $0.7 billion or 70% from approximately $1.0 billion at 3
Slide 11: ResCap – Business Lending & International
ResCap – Business Lending & International Business Lending • Business remains profitable even as weakness in the U.S. housing market continues to pose significant challenges to the homebuilding industry • Lending in healthcare and resort finance helped to offset weaknesses within residential constru
Slide 12: ResCap - Held for Investment Portfolio - Credit Quality
ResCap - Held for Investment Portfolio - Credit Quality Nonaccrual Loans as a % of total MLHFI * • Asset quality weaker due to continuing 14.0% slow housing market and stress in 11.9% nonprime mortgage market 10.5% 9.2% 9.1% 9.2% 9.0% 9.2% • Nonprime assets continue to drive 8.4% 8.3% increase in de
Slide 13: ResCap - Lending Receivables - Credit Quality
ResCap - Lending Receivables - Credit Quality • Warehouse lending customers began Nonaccrual Loans as a % of experiencing severe stress during Q4 Total Lending Receivables 2006 and continued into the Q2 2007 10.9% • The significant decrease in nonaccrual 9.3% loans was due to loan restructurings and
Slide 14: ResCap – Liquidity
ResCap – Liquidity ($ in billions) 6/30/07 3/31/07 Cash and Cash Equivalents $3.7 $2.6 Unused Bank Facilities 10.7 8.6 * Unused Conduit Capacity 84.8 56.3 Unused Whole Loan Facilities 6.6 4.6 Total Available Liquidity $105.8 $72.1 * MINT I was established in Q2 2007 and increased outstanding liquidi
Slide 15: ResCap – 2007 Outlook
ResCap – 2007 Outlook Q2 results, while still weak, showed a marked improvement compared to Q1 results despite challenging conditions in the U.S. mortgage market • Multiple actions taken to mitigate risk have begun to show results • Business lending operations stable despite certain credit concerns
Slide 16: Auto Finance – Q2 2007 Key Metrics
Auto Finance – Q2 2007 Key Metrics • New and used originations up over Originations year-ago levels, with used originations increasing roughly 50% • Credit performance remains near Credit Losses historically low levels • Residual performance remains strong Lease Residuals compared to 2006 levels • I
Slide 17: Auto Finance – Consumer Originations
Auto Finance – Consumer Originations Q2 2007 new vehicle originations rose versus Q2 2006 levels • Increased used vehicle originations by roughly 50% • Posted modest growth in new vehicle originations • Enrolled 2,400 diversified dealers year to date to participate in retail programs under National
Slide 18: Auto Finance – Consumer Credit Quality
Auto Finance – Consumer Credit Quality Delinquencies as a % of serviced retail assets 30 days or more past due 2.5% 2.3% 2.4% 2.4% 2.3% • Delinquencies mostly flat 2.3% 2.2% 2.3% year over year and 2.2% 2.1% comparable versus historically low levels Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 Annua
Slide 19: Insurance – Q2 2007 Key Metrics
Insurance – Q2 2007 Key Metrics • Continued growth in international Written Revenue* markets offset by decline in the competitive U.S. insurance market • Strong underwriting results driven by Underwriting Results higher earned premiums and lower loss experience. Improved combined ratio of 90.2% in Q
Slide 20: Insurance – Consolidated Earnings
Insurance – Consolidated Earnings Core earnings continue to show growth, driven in part by favorable loss experience on vehicle service contracts and dealer inventory insurance ($ millions) Q2 2007 Q2 2006 Change Core Earnings1 $134 $85 $49 2 Capital Gains 1 2 (1) 3 Interest Expense (4) (7) 3 Net In
Slide 21: Global Liquidity
Global Liquidity ($ billions) 6/30/07 3/31/07 Cash and Marketable Securities* $18 $13 Unused Bank Facilities 25 31 Unused Conduit Capacity** 118 86 Unused Whole Loan Facility 43 44 Total Available Liquidity $203 $174 * Includes $5.3B and $3.2B cash invested in a portfolio of highly liquid marketable
Slide 22: GM Exposure
GM Exposure Secured Exposure Unsecured Exposure ($ billions) ($ billions) $6.2-$10.2* $4.1 $2.1 $1.9 $1.9 $6.2 $1.1 $1.2 $1.1 9/30/2005 12/31/2006 3/31/2007 6/30/2007 9/30/2005 12/31/2006 3/31/2007 6/30/2007 * Represents $4 billion undrawn credit line that expired on Sept. 30, 2006 Certain unsecured
Slide 23: Growth Initiatives
Growth Initiatives Encouraging progress leveraging GM relationships and experience to facilitate growth of diversified wholesale and retail auto finance business • Maintaining our commitment to grow business with GM and GM dealers • Enrolled 2,400 diversified dealers year to date to participate in N
Slide 24: Summary
Summary Solid performance in light of tough environment • Losses at ResCap more than offset by strong performances at Auto Finance and Insurance • Sharp reduction in ResCap’s nonprime exposure rendered company less vulnerable to U.S. mortgage market volatility • Given continued risks in U.S. residen
Slide 25: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES
Slide 26: ResCap – Condensed Income Statement
ResCap – Condensed Income Statement ($ millions) Q2 2007 Q2 2006 Revenue Total financing revenue $1,667 $1,821 Interest expense (1,610) (1,558) Provision for credit losses (327) (123) Net financing (loss) revenue (270) 140 Mortgage servicing fees 452 387 Servicing asset valuation and hedge activitie
Slide 27: Auto Finance – Condensed Income Statement
Auto Finance – Condensed Income Statement ($ millions) Q2 2007 Q2 2006 Revenue Consumer $1,399 $1,367 Commercial 443 419 Operating Leases 1,729 2,023 Total financing revenue 3,571 3,809 Interest expense (2,098) (2,437) Provision for credit losses (103) (152) Net financing revenue 1,370 1,220 Servici
Slide 28: Insurance – Condensed Income Statement
Insurance – Condensed Income Statement ($ millions) Q2 2007 Q2 2006 Revenue Insurance premiums and service revenue earned $1,042 $1,042 Investment income 81 84 Other income 43 31 Total Insurance premiums and other income 1,166 1,157 Insurance losses and loss adjustment expenses (563) (653) Acquisiti
Slide 29: Reconciliation of Managed to Serviced Assets
Reconciliation of Managed to Serviced Assets Retail Auto Finance ($ millions) 6/30/07 3/31/07 12/31/06 9/30/06 6/30/06 On-balance sheet assets $58,973 $60,773 $61,105 $65,962 $62,394 Off-balance sheet securitized assets 7,564 5,632 6,591 4,391 5,108 Managed assets 66,537 66,406 67,696 70,353 67,503
Slide 30: Reconciliation of Insurance Core Earnings
Reconciliation of Insurance Core Earnings ($ millions) Q2 2007 Q2 2006 Net Income $131 $80 Add: Pre-tax interest expense1 5 10 2 Less: Pre-tax capital gains 1 2 Add: Estimated taxes on interest expense & capital gains (1) (3) Core Earnings $134 $85 1. Amount within premium tax and other expense in F