Ally Financial Inc. · NYSE:ALLY
Ally Financial — Goldman Sachs US Financial Services Conference 2015
15 slides from Ally Financial's conference presentation, Dec 8, 2015
Slide 1: Goldman Sachs US Financial Services Conference 2015
Ally Financial Inc. Goldman Sachs US Financial Services Conference 2015 December 8, 2015 1
Slide 2: Forward-Looking Statements and Additional Information
Forward-Looking Statements and Additional Information The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. In the presentation th
Slide 3: Achieved Objectives from 2014 GS Conference
Achieved Objectives from 2014 GS Conference P Facilitate U.S. Treasury Exit P Execute Path to 9-11% Core ROTCE P Improve Funding Costs − Interest expense on LT debt down over $200 million YTD P Achieve mid 40% Adjusted Efficiency Ratio P Redeploy Capital to Improve Profitability − Addressed $2.6 bil
Slide 4: Delivered Improved and Consistent Profitability
Delivered Improved and Consistent Profitability Core Pre Tax Income(1) Core ROTCE(1) ($ millions) 9.1% 9.1% 9.2% $490 8.2% $467 $435 $431 7.1% $396 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 Adjusted Earnings Per Share(1) Adjusted TBV Per Share(1) $0.53 $0.52 $24.3 $0.51 $0.46 $23.7
Slide 5: Capital Management
Capital Management • Ally has executed significant capital actions to drive further shareholder value – Addressed inefficiencies in liability and capital structure Capital Redeployment Actions Approved Actions through 2Q 16 Subsequent CCAR 2015 Total Approval Outstanding Request ($ b illions) as of
Slide 6: Auto Finance Update
Auto Finance Update • Leveraged competitive advantages to Auto Originations by Product thrive despite a competitive ($ billions) environment and loss of GM subvented $40.2 $41.0 ~$40 $38.7 business $37.3 $31.6 $9.0 $9.6 $11.7 $9.9 ~$14 $4.7 – Strong dealer relationships $3.9 $7.3 $8.4 $10.6 $11.3 ~$
Slide 7: Auto Finance Diversification
Auto Finance Diversification Strong Application Flow and Disciplined Approval Rate (Applications #MM; Approval Rate Indexed to 2010 level) 100 99 95 92 90 89 ~23% CAGR ~10.5 9.1 7.8 6.7 ~51% 45% 5.6 41% 35% 3.7 29% 20% 18% ~19% 22% 23% 26% 49% 41% 40% 37% ~30% 60% 2010 2011 2012 2013 2014 2015 Est.
Slide 8: Predictability of Retail Auto Losses
Predictability of Retail Auto Losses Auto loans are predictable based on various attributes Cumulative Net Losses - Example segment: 64-72 month, 660-699 FICO, 96-100 LTV 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 201 1 201 2 201 3 201 4 Note: Retail auto
Slide 9: Retail Auto Historical Losses
Retail Auto Historical Losses Variation in losses typically driven by unemployment 2.50% 10.0% 9.0% 2.00% 8.0% 7.0% Unemployment 1.50% 6.0% Losses 3Q 2015 coverage rate 5.0% 1.27% 1.00% 4.0% 3.0% 0.50% 2.0% 1.0% 0.00% 0.0% Months 7 1 1 4 1 4 7 4 7 7 1 1 4 1 4 7 4 7 7 1 4 4 7 7 1 1 4 4 7 7 1 1 4 10 1
Slide 10: Strength of Deposit Funding
Strength of Deposit Funding • $1.8 billion of retail deposit growth in 3Q and Diversified Funding Profile expect to exceed $6.5 billion of growth in 2015 FHLB • Surpassed the 1 million customer milestone 5% – Grew customer base 16% YoY Secured Debt 31% • Continue to build strong franchise and brand
Slide 11: Future of Ally
Future of Ally Ally’s auto finance business and strong dealer relationships will remain the P core to our success P Growing deposit base provides cost effective and stable funding P Leveraging innovative culture, strong brand and proven digital capabilities P Focused on continued customer growth, pa
Slide 12: Positioned for Operational Expansion
Positioned for Operational Expansion Expand Existing Business • Continue to expand retail auto lending – Expand dealer relationships and deepen penetration within traditional channels – Expand digital interaction – Consumer behavior and use of technology in the vehicle purchase process is evolving •
Slide 13: Dedicated to Driving Shareholder Value
Dedicated to Driving Shareholder Value Unique opportunity combining both operational growth and continued financial restructuring Improving Returns: Drive towards 10% Core ROTCE and maintain mid 40% Adjusted Efficiency Ratio EPS Growth: Expect annual EPS CAGR of 15% +/- Business Growth: Long runway
Slide 14: Supplemental
Supplemental CONFIDENTIAL 14
Slide 15: Notes on non-GAAP and other financial measures
Supplemental Notes on non-GAAP and other financial measures ($ in millions, unless noted otherwise) Core Pre-Tax Income Calculation 3Q 15 2Q 15 1Q 15 4Q 14 3Q 14 Net financing revenue (ex. OID) $ 981 $ 927 $ 860 $ 835 $ 936 Total other revenue (ex. OID) 332 368 440 370 375 Total net revenue (ex. OID
Ally Financial — Goldman Sachs US Financial Services Conference 2015 on 6ix