Slide 1: Preliminary 2008 First Quarter Earnings
Preliminary 2008 First Quarter Earnings April 29th, 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 11 ResCap Page 14 Liquidity and Funding Page 21 Summary Page 23 Supplemental Page 24
Slide 4: GMAC: First Quarter 2008 Performance Highlights
GMAC: First Quarter 2008 Performance Highlights Q1 2008 consolidated loss of $589 million, versus loss of $305 million in Q1 2007 Improved results in the U.S. mortgage unit were offset by valuation adjustments in ResCap's international and business lending units Auto Finance results were weaker larg
Slide 5: GMAC: Net Income and Significant Items
GMAC: Net Income and Significant Items 5 GMAC Consolidated Notable Items (Pre-tax) Net Income by Segment
Slide 6: Global Auto Finance: Key Metrics
Global Auto Finance: Key Metrics Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Net Income 154 285 593 398 395 554 137 258 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Used 1.5 1.4 1.4 2.1 2.1 2.3 1.9 2.1 New 12.9 18.8 10.8 12.3 14 14.5 13.4 12.9 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '0
Slide 7: Global Auto Finance: Condensed Income Statement
Global Auto Finance: Condensed Income Statement
Slide 8: Global Auto Finance: Auto Delinquency Trends
Global Auto Finance: Auto Delinquency Trends Loans > 30 Days Past Due Q1 2008 2.45% 1.36% 1.84% 3.75% 2.42% Q1 2007 2.51% 1.53% 2.38% 3.87% 2.52% Year over Year Change - 6bps - 17bps - 54bps - 12bps - 10bps Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Managed 0.024825941 0.026617552 0.026
Slide 9: Global Auto Finance: Consumer Auto Loss Trends
Global Auto Finance: Consumer Auto Loss Trends Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Managed 0.0097 0.0112 0.0122 0.0113 0.009 0.0102 0.0105 0.0134 Net Retail Losses (% Avg Assets) Q1 2008 1.57% 0.41% 0.69% 1.47% 1.34% Q1 2007 1.29% 0.55% 0.28% 1.10% 1.13% Year over Year Change + 2
Slide 10: Global Auto Finance: Restructuring Efforts
Global Auto Finance: Restructuring Efforts In February 2008, GMAC announced a plan to restructure its North American Auto Finance operations (NAO) NAO will consolidate 20 offices into 5 regional centers throughout the U.S. and Canada GMAC will incur restructuring charges of approximately $65-85 mill
Slide 11: Insurance: Key Metrics
Insurance: Key Metrics Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Net Income 80 183 735 143 131 117 68 132 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Core 85 126 170 143 134 114 70 131 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Combined 0.962 0.894 0.925 0.91 0
Slide 12: Insurance: Condensed Income Statement
Insurance: Condensed Income Statement
Slide 13: Insurance: Ownership Restructuring
Insurance: Ownership Restructuring On April 8, 2008, GMAC announced that it is implementing a plan related to its Insurance business, in the interest of maintaining the current financial strength rating (A-) by A. M. Best Plan includes a dividend by GMAC of 100% of the voting interest in its Insuran
Slide 14: ResCap: Key Messages
ResCap: Key Messages Weak global mortgage markets and diminished liquidity caused non-conforming loan and trading security losses in addition to increased funding costs Eliminated originations in markets with no secondary liquidity Tightened underwriting and credit standards Credit performance remai
Slide 15: ResCap: Key Metrics
ResCap: Key Metrics Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Net income 201 548 83 -128 -910 -254 -2261 -921 -859 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Total HFI, net of Allowance 72.7 71.4 73.1 67.9 63.6 61 59 41.3 34.001 All Other 49.26537 53.160608 5
Slide 16: 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 26 of this presentation. Included in Other income is a negative $2.2 billion valuation adjustment on certain assets offset by
Slide 17: ResCap: Nonprime and Prime Exposure
Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Nonprime 1.2 0.3 0.2 0.2 0.2 Prime 5.3 3.6 1.6 1.5 1.6 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, and subprime assets (Weighted
Slide 18: 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 % MLFI net charge-offs to total 0.0016 0.002 0.0025 0.0033 0.0033 0.004 0.0073 0.0076 0.0041 0.0046 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 % Lending Receivables nonaccruals
Slide 19: ResCap: Capital and Liquidity
ResCap: Capital and Liquidity Global ResCap cash and cash equivalents of $4.2 billion (3/31/08) ResCap cash declined $0.2 billion compared to Q4 2007: Decline in collateral values financed on secured lines Delays in executing asset sales given market disruptions Total equity of $5.8 billion allowed
Slide 20: GMAC: Overview of GMAC Bank
GMAC: Overview of GMAC Bank Expanded use of GMAC Bank Prime conforming and government production have increased significantly GMAC Bank maintains access to FHLB and retail deposits Total FHLB borrowing capacity of $12.9 billion ($2.2 billion of which is unused) Total deposits increased by $2.5 billi
Slide 21: GMAC: Liquidity
GMAC: Liquidity Cash fell $4.1 billion in the quarter due largely to debt repurchases and retirements, as well as increased originations *Includes certain marketable securities of $5.0 billion at 12/31/2007and $3.8 billion at 3/31/2008. **Changes in loans held for sale, gross finance receivables and
Slide 22: GMAC: Renewal of GMAC and ResCap Bank Facilities
GMAC: Renewal of GMAC and ResCap Bank Facilities Certain GMAC and ResCap syndicated bank facilities will expire or mature in June and July 2008 $3 billion GMAC 364-day unsecured revolving credit facility (June) $12 billion GMAC New Center Asset Trust secured facility (June) $875 million ResCap 364-d
Slide 23: Summary
Summary Capital markets and credit headwinds have persisted in 2008 and expanded into other markets Cost of funds and mark-to-market pressures continue to be significant challenges We expect earnings to be constrained in the current environment As a result, we are pursuing the following actions in Q
Slide 24: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES ‘Qt 2008 GMAC Preiminary Earnings Release 24
Slide 25: GMAC: Preliminary Q1 Consolidated Net Income Supplemental
GMAC: Preliminary Q1 Consolidated Net Income Supplemental Included in Other income is a negative $2.2 billion valuation adjustment on certain assets offset by a favorable $2.15 billion on related debt instruments, for both of which we elected fair value treatment under SFAS No. 159.
Slide 26: ResCap: Income Statement
ResCap: Income Statement SFAS 159 impact netted in Other Income Includes gain on extinguishment of debt of $480 million (pre-tax) in the first quarter of 2008 as a result of the Open Market Repurchase of ResCap debt made by GMAC with a face value of $1.2 billion. NOTES: Numbers may not foot due to r
Slide 27: 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 Total Domestic 43.9 41.2 31 27.2 20.2 15.5 18.7 Total International 7.5 8 6.5 7.7 9.1 5.3 2.2 Q106 Q206 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Pr
Slide 28: ResCap: Global HFS Portfolio
HFS and HFI Q1 08 transfers: HFS to HFI $446 million HFI to HFS $1.5 billion ResCap: Global HFS Portfolio 4Q07 Prime Conforming 2.9 Prime Nonconforming 4.9 Nonprime 2.6 Prime Second-lien 0.4 Government 1 1st Qtr Non-Agency Public Securitizations 1 Agency 15.7 Non-Agency Whole Loans 2.8 Supplemental
Slide 29: ResCap: Q1 Significant Items
ResCap: Q1 Significant Items Note: These amounts are classified according to ResCap's income statement presentation (includes Auto Bank). Supplemental 29
Slide 30: NAO: Sale Proceeds on Lease Terminations - Managed U.S.
NAO: Sale Proceeds on Lease Terminations - Managed U.S. Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Net Income 14930 14020 14504 14974 15512 15041 14508 14245 Note: 36-month Leases (adjusted for Q1 2008 vehicle mix). Represents GMAC owned portfolio in the United States. Supplemental
Slide 31: 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