Slide 1: Preliminary 2010 First Quarter Results
Contact GMAC Investor Relations at (866) 710-4623 or investor.relations@gmacfs.com Preliminary 2010 First Quarter Results May 3, 2010 10:00 AM EDT
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: Progress Year-To-Date
Progress Year-To-Date Improved Financial Performance Core pre-tax earnings (1) of $564 million in 1Q 10 Net income of $162 million Improving credit trends Expense reduction efforts producing results Streamlined platforms and divested certain non-core operations Positive impact from 4Q 09 mortgage ac
Slide 4: Rebranding as Ally Financial Transformation
Rebranding as Ally Financial Transformation GMAC Inc. to be rebranded as Ally Financial Inc. on May 10, 2010 Investing in a brand that is company-owned Supports efforts toward becoming more customer- focused 4
Slide 5: Strategic Objectives
Strategic Objectives Become the premier global auto finance provider for dealers and consumers Improve our cost structure and efficiency Demonstrate consistent and diversified access to capital markets Fully transition to a bank holding company model Improve our liquidity position by building a stab
Slide 6: First Quarter 2010 Review
First Quarter 2010 Review GMAC Inc. earned core pre-tax income (1) of $564 million and net income of $162 million in the first quarter Total revenue increase driven by higher margins, gains on asset sales and servicing income Provision expense down significantly while Allowance coverage ratios remai
Slide 7: Results by Segment
Results by Segment (1) Corporate and Other as presented includes Commercial Finance, certain equity investments and net impact from treasury ALM activities (2) See slide 19 for a listing of businesses classified as discontinued operations All four operating segments were profitable Global Automotive
Slide 8: Global Automotive Services
Global Automotive Services Global Automotive Services earned $846 million of pre-tax income from continuing operations compared to $309 million in the fourth quarter of 2009 Fifth consecutive profitable quarter from core auto business North American Operations key driver of results, with Internation
Slide 9: North American Automotive Finance
North American Automotive Finance North American segment reported pre-tax income of $653 million driven by lower provision expense and strong gains on loan sales GMAC’s retail penetration of both GM and Chrysler sales increased in the quarter Offering leases on select models Less than half of retail
Slide 10: International Automotive Finance
International Automotive Finance International Operations earned $10 million of pre-tax income compared to a loss of $146 million in 4Q 09 Provision expense declined driven by lower charge-off levels and improving recovery performance in Europe and Latin America Noninterest expense improved as wind-
Slide 11: Global Automotive Finance: Consumer Delinquency Trends
Delinquency trends in core auto portfolio declined in the first quarter Decline attributed to better vintage performance, improved collection processes and seasonal trends Collection efforts focused on Nuvell subprime portfolio, combined with seasonality, beginning to make headway as delinquent doll
Slide 12: Global Automotive Finance: Consumer Loss Trends
Global Automotive Finance: Consumer Loss Trends Losses down significantly in both core auto portfolio and Nuvell subprime portfolio Results reflect impact from improved underwriting policies Strong recoveries due to healthy used car market and improved collection/recovery processes and efforts 3Q 09
Slide 13: Global Automotive Finance: Credit Allowance Coverage Ratios
Global Automotive Finance: Credit Allowance Coverage Ratios North American consumer coverage ratios decreased in the first quarter Decrease primarily driven by continued runoff of our liquidating portfolios and by the inclusion of FAS 166/167 assets (approximately $7 billion as of 1/1/10) that are n
Slide 14: Insurance
Insurance Segment streamlined to focus primarily on dealer-centric products Extended service contracts Dealer inventory insurance Executed sale of U.S. property and casualty business Written premiums up in the first quarter Increase in vehicle service contracts Increase in government related contrac
Slide 15: Mortgage Operations
Mortgage Operations Mortgage Operations reported pre-tax income of $175 million in the first quarter ResCap, LLC legal entity earned net income of $110 million Progress made towards minimizing the risk of legacy mortgage business Signed agreement to sell European mortgage operations Executed whole l
Slide 16: ResCap, LLC: Update
ResCap, LLC: Update ResCap, LLC made further progress towards addressing legacy asset risk and standalone liquidity needs Agreement to sell European mortgage operations Select whole-loan sales Restructured servicer advance funding facility and sold $508 million of term ABS notes GMAC engaged two adv
Slide 17: Mortgage Operations: Credit Allowance Coverage Ratios
Mortgage Operations: Credit Allowance Coverage Ratios Consumer coverage relatively flat from the prior quarter as portfolio continues to perform in line with expectations Significant decrease from prior year primarily related to strategic actions taken during 4Q 09 Commercial coverage down relative
Slide 18: Corporate and Other
Corporate and Other Results continue to be impacted by amortization of OID from bond exchanges OID amortization impacted by acceleration of expense resulting from certain liability management transactions in the first quarter OID amortization expense will moderate significantly after 2011 Provision
Slide 19: Discontinued Operations
Discontinued Operations GMAC continues to streamline operations and divest non-core operations Closed sale of U.S. property and casualty insurance business, North American factoring business and full service leasing businesses in Australia and Poland Reached agreement to sell the Continental Europea
Slide 20: Liquidity
Liquidity GMAC’s current funding strategy is designed to support stable capital and liquidity during all economic cycles 1)Expanded use of cost efficient funding at Ally Bank results in less reliance on wholesale funding Over 60% of new auto originations were funded at the bank level Net deposits gr
Slide 21: Deposits
Ally and ResMor total deposits increased to $32.0 billion (excluding certain intercompany deposits) as of 3/31/2010 Retail deposits at Ally Bank expanded to 60% of total deposits in 1Q 10 from 37% in 2008 Focus on building stable deposit base driven by compelling brand and strong value proposition A
Slide 22: Capital Ratios
Capital Ratios See slide 32 for further details on capital numbers stated above Implementation of FAS 166/167 resulted in an increase of GAAP assets of approximately $7 billion and $12 billion in auto and mortgage assets, respectively, as of January 1, 2010 GMAC has elected the regulatory agency def
Slide 23: Summary
Summary All four operating segments were profitable Improving credit trends Expanded auto finance franchise Re-entered unsecured market Reached several important agreements to further contain legacy mortgage risk Significant Progress in First Quarter Continued Focus on Strategic Objectives Become th
Slide 24: Supplemental Charts
Supplemental Charts 10.2010 GMAC Prtminay Rests 2 GMAC Frmancint SERVICES
Slide 25: GMAC: Preliminary Consolidated Condensed Income Statement
GMAC: Preliminary Consolidated Condensed Income Statement Supplemental ($ millions) 1Q 10 4Q 09 1Q 09 4Q 09 1Q 09 Total financing revenue and other interest income 3,160 $ 3,106 $ 3,610 $ 54 $ (450) $ Interest expense 1,760 1,760 2,076 - (316) Depreciation expense on operating lease assets 656 741 1
Slide 26: NAO: Condensed Income Statement
NAO: Condensed Income Statement Supplemental ($ millions) 1Q 10 4Q 09 1Q 09 4Q 09 1Q 09 Total financing revenue and other interest income 2,095 $ 2,064 $ 2,400 $ 31 $ (305) $ Interest expense 575 534 572 41 3 Depreciation expense on operating lease assets (1) 607 700 968 (93) (361) Net financing rev
Slide 27: IO: Condensed Income Statement
IO: Condensed Income Statement Supplemental ($ millions) 1Q 10 4Q 09 1Q 09 4Q 09 1Q 09 Total financing revenue and other interest income 487 $ 557 $ 608 $ (70) $ (121) $ Interest expense 246 295 367 (49) (121) Depreciation expense on operating lease assets 49 40 89 9 (40) Net financing revenue 192 2
Slide 28: Mortgage Operations: Condensed Income Statement
Mortgage Operations: Condensed Income Statement Supplemental ($ millions) 1Q 10 4Q 09 1Q 09 4Q 09 1Q 09 Total financing revenue and other interest income 503 $ 464 $ 551 $ 39 $ (48) $ Interest expense 343 402 429 (59) (86) Net financing revenue 160 62 122 98 38 Servicing fees (1) 326 314 341 12 (15)
Slide 29: Corporate and Other: Condensed Income Statement
Corporate and Other: Condensed Income Statement Supplemental 29 ($ millions) 1Q 10 4Q 09 1Q 09 4Q 09 1Q 09 Net financing loss (1)(4) (552) $ (560) $ (707) $ 8 $ 155 $ Gain (loss) on mortgage and automotive loans, net - 8 (3) (8) 3 (Loss) gain on extinguishment of debt (2) (5) (118) (3) 639 (115) (75
Slide 30: GMAC: Preliminary Consolidated Condensed Balance Sheet
GMAC: Preliminary Consolidated Condensed Balance Sheet Supplemental 30 ($ millions) 3/31/10 12/31/09 3/31/09 12/31/09 3/31/09 Cash and cash equivalents 14,670 $ 14,788 $ 13,333 $ (118) $ 1,337 $ Trading securities 144 739 816 (595) (672) Investment securities 11,651 12,158 6,776 (507) 4,875 Loans he
Slide 31: ResCap, LLC: Key Financial Information
ResCap, LLC: Key Financial Information ResCap, LLC met its covenants with tangible net worth of $426 million at the end of the first quarter (1) For the purpose of ResCap’s tangible net worth covenants, consolidated tangible net worth is defined as the company’s consolidated equity, excluding intang
Slide 32: Capital Measures
Capital Measures Supplemental Capital 3/31/2010 Preliminary 12/31/2009 Shareholders’ Equity 20.5 $ 20.8 $ Less: Goodwill and certain other intangibles (0.5) (0.5) Unrealized (gain) loss and other adjustments (0.5) (0.4) Trust Preferred Securities 2.5 2.5 Total Tier 1 Capital 22.1 22.4 Total Tier 1 C
Slide 33: GMAC Unsecured Long-Term Debt Maturity Profile
GMAC Unsecured Long-Term Debt Maturity Profile Supplemental Note: Scheduled maturities of ResCap unsecured long-term debt are as follows: $1,284 million in 2010; $209 million in 2011; $357 million in 2012; $527 million in 2013; $96 million in 2014; and $112 million in 2015 and thereafter. These matu
Slide 34: Ownership Structure
Ownership Structure Supplemental Common Ownership as of 3/31/2010 US Treasury 56.3% Cerberus 14.9% 3rd Party Investors 12.2% GM Trust 9.9% GM 6.7% ($ millions) Series Owner Liquidation Preference Book Value Trust Preferred Securities (1) U.S. Treasury $2,667.0 $2,540.0 Series F-2 Mandatory Convertib