Slide 1: Preliminary 2009 Second Quarter Results
Preliminary 2009 Second Quarter Results August 4, 2009 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 Inc. (“GMAC”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “purs
Slide 3: Table of Contents
Table of Contents GMAC Page 4 Global Auto Finance Page 8 Insurance Page 17 Mortgage Operations Page 20 Corporate & Other Page 24 Global Capital and Liquidity Page 25 Conclusion Page 29 Supplemental Page 30 3
Slide 4: GMAC: Significant Recent Events
4/09 Became preferred provider of financing for Chrysler dealers and customers 5/09 Received $3.5 billion capital investment from U.S. Treasury towards “stress test” requirements 5/09 Received $4.0 billion capital investment from U.S. Treasury to support Chrysler lending 5/09 Rebranded GMAC Bank as
Slide 5: GMAC: Second Quarter 2009 Summary
GMAC: Second Quarter 2009 Summary GMAC lost $3.9 billion, versus a loss of $2.5 billion in Q2 2008 GMAC accomplished critical strategic actions which created several significant charges driving the quarter Positive trends during the quarter expected to form the foundation of future results Mortgage
Slide 6: GMAC: Net Income by Segment
GMAC: Net Income by Segment 1 - Corporate and Other segment includes Commercial Finance, equity investments and other corporate activities. Global Auto Finance results driven by improved U.S. used vehicle market, partially offset by weaker credit trends and pressure on financing revenue Loss at Insu
Slide 7: GMAC: Tax Impact of Incorporation
GMAC: Tax Impact of Incorporation On June 30, 2009, GMAC LLC converted from a pass-through entity into a Delaware Corporation through a statutory conversion and was re-named GMAC Inc. The purpose of converting GMAC LLC to a Corporation was to: Create a more flexible capital structure Facilitate impl
Slide 8: Auto Finance: Key Messages
Global Auto Finance: Key Messages Despite pressures from the recession, Auto Finance operations had a $346 million pretax profit Used vehicle prices improved in the U.S. during the quarter Increased proceeds on off-lease vehicles versus carrying values drove $134 million of gains Higher prices also
Slide 9: Auto Finance: Chrysler Financing
Global Auto Finance: Chrysler Financing GMAC was chosen as the preferred provider to finance Chrysler vehicles 4-year agreement to provide incentivized retail financing with limited exclusivity and preferred provider for wholesale financing GMAC received $4 billion of capital from the U.S. Treasury
Slide 10: Auto Finance: GM Bankruptcy
Global Auto Finance: GM Bankruptcy General Motors Company , a new entity created to purchase select assets out of the GM bankruptcy, purchased a substantial portion of General Motors Corporation assets on July 10, 2009, including all of GM Corporation’s stake in GMAC GM Company also assumed all the
Slide 11: Global Auto Finance: Key Metrics
$5.6 Global Auto Finance: Key Metrics ($ bil) All tables include North American and International Operations except where noted. Origination and asset base figures include auto loans and leases. 1 - U.S. scheduled lease terminations on a managed basis by termination year - all lease terms, all vehic
Slide 12: Auto Finance: Condensed Income Statement
Global Auto Finance: Condensed Income Statement Notable Items (Pre-Tax) MEMO: Q2 2009 net loss includes ($1,051) million charge associated with conversion to a Corporation; excluding the charge, net income would be $324 million. ($ millions) Q2 2009 Q2 2008 Revenue Total financing revenue and other
Slide 13: Auto Finance: Coverage Ratios
Global Auto Finance: Coverage Ratios Q2 2009 consumer coverage ratios largely held steady versus year ago levels Lower severities in North America are largely offsetting weak economic trends Q2 2009 commercial coverage ratios increased sharply year over year based on lower industry sales and general
Slide 14: Auto Finance: Consumer Loss Trends
Global Auto Finance: Consumer Loss Trends Net Retail Losses (% Avg Assets) Q2 2009 2.60% 1.05% 1.02% 1.94% 2.24% Q2 2008 1.68% 0.38% 0.57 % 1.51% 1.40% Year over Year Change +92bps +67bps +45bps +43bps +84bps North Asia Latin America EuropePacific America Global Losses are up significantly year over
Slide 15: Auto Finance: Consumer Delinquency Trends
Global Auto Finance: Consumer Delinquency Trends Loans > 30 Days Past Due Q2 2009 3.74% 1.56% 1.73% 4.81% 3.44% Q2 2008 2.31% 1.36% 2.02% 4.05% 2.39% Year over Year Change +143bps +20bps -29bps +76bps +105bps North Asia Latin AmericaEuropePacific America Global Shrinking portfolios in North America
Slide 16: Auto Finance: North American Loss Severity
Global Auto Finance : North American Loss Severity Lower severity in Q2 2009 due to improved used vehicle prices Loss per Vehicle (Serviced basis) $9,077 $9,730 $10,087 $11,760 $12,747 $11,246 $11,062 $10,398 $6,000 $8,000 $10,000 $12,000 $14,000 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '
Slide 17: Insurance: Key Messages
Insurance: Key Messages Q2 2009 pre-tax loss of $476 million versus pre-tax income of $193 million in Q2 2008 largely reflects goodwill impairment of $607 million at consumer P&C insurance business Excluding the goodwill impairment, Insurance pre-tax income was $131 million for Q2 2009 Written premi
Slide 18: Insurance: Key Metrics
Insurance: Key Metrics ($ mil) Cession of premium related to reinsurance and exclusion of other sold operations 1 - See supplemental chart on slide 35 for a reconciliation of core earnings to GAAP income. 2 - Combined ratio represents the sum of all incurred losses and expenses (excluding interest a
Slide 19: Insurance: Condensed Income Statement
Insurance: Condensed Income Statement Notable Items (Pre-Tax) MEMO: Q2 2009 net loss includes $1 million benefit associated with conversion to a Corporation; excluding the benefit, net loss would be ($516) million. 1 – Q2 2009 pre-tax income excluding $607 million goodwill impairment would be $131 m
Slide 20: Mortgage Operations: Key Messages
Mortgage Operations: Key Messages Mortgage Operations includes all of GMAC’s residential real estate finance activities: ResCap LLC and the mortgage activities of Ally Bank and ResMor Trust ResCap results differ significantly from Mortgage Operations results due to inter-company eliminations and oth
Slide 21: Mortgage Operations: Key Metrics
Mortgage Operations: Key Metrics 2 1 - Government and prime second liens are included in prime non-conforming. Total Assets includes $4.2 billion of assets securitized on-balance sheet and $2.5 billion of assets related to other balance sheet gross-ups at 6/30/09 1 1 Pre-Tax Income ($2,044) ($1,138)
Slide 22: Mortgage Operations: Condensed Income Statement
Mortgage Operations: Condensed Income Statement Note: Income statement presentation (condensed) as it appears on a GMAC reported basis. Notable Items (Pre-Tax) MEMO: Q2 2009 net loss includes $71 million benefit associated with conversion to a Corporation; excluding the benefit, net loss would be ($
Slide 23: Mortgage Operations: Global Portfolio Credit Quality
Mortgage Operations: Global Portfolio Credit Quality Total HFI 6 = $24.0 billion Total Lending Receivables 6 = $3.4 billion 1 - Calculations above for nonaccrual loans and net charge-offs as a percentage of HFI exclude loans impacted by FAS 159 (elected January 1, 2008). 2 - Mortgage loans HFI are p
Slide 24: Corporate and Other: Condensed Income Statement
Corporate and Other: Condensed Income Statement Notable Items (Pre-Tax) MEMO: Q2 2009 net loss includes ($234) million charge associated with conversion to a Corporation; excluding the charge, net loss would be ($591) million. ($ millions) Q2 2009 Q2 2008 Revenue Net financing loss ($441) ($95) Othe
Slide 25: Capital and Liquidity: Cash Roll Forward
Global Capital and Liquidity: Cash Roll Forward 1 - GMAC Consolidated includes Insurance, ResCap and Ally Bank. 2 - ResCap legal entity information. Does not include Ally Bank. 3 - Includes $4.5 billion of debt issued under TLGP program, and $5.7 billion of debt maturities. 4 - GMAC ex. Insurance/ R
Slide 26: Capital and Liquidity: Capital Base and Ownership
Global Capital and Liquidity: Capital Base and Ownership Note: Numbers may not foot due to rounding. Preferred Ownership as of 6/30/2009 1 - Preferred Blocker Inc. issued cumulative perpetual preferred stock in the 12/2008 bond exchange. Equity Roll Forward ($ billions) Total Equity Total Equity at
Slide 27: Capital and Liquidity: Capital Base and Ratios
Global Capital and Liquidity: Capital Base and Ratios 1 - The risk-weighted assets are determined by allocating assets and specified off-balance sheet financial instruments into six weighted categories, with higher levels of capital being required for the categories perceived as representing greater
Slide 28: Capital and Liquidity: Ally Bank
Global Capital and Liquidity: Ally Bank In May 2009, GMAC Bank was rebranded as Ally Bank and major brand-building and deposit- generation initiative launched Deposit levels increased to $25.4 billion as of 6/30/2009 Total FHLB borrowing capacity of $9.1 billion ($1.7 billion unused) also available
Slide 29: Conclusion
Conclusion Significant loss in Q2 2009 driven largely by acceleration of certain planned strategic actions (incorporation, portfolio sales, consumer P&C business write-down) Operating performance for the quarter reflected further deterioration of credit performance and real estate asset values, part
Slide 30: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES {22 2009 GMAG Preinnary Resuts 30
Slide 31: GMAC: Preliminary Consolidated Condensed Income Statement
GMAC: Preliminary Consolidated Condensed Income Statement Supplemental MEMO: Q2 2009 net loss includes ($1,213) million charge associated with conversion to a Corporation; excluding the charge, net loss would be ($2,690) million. ($ millions) Q2 2009 Q2 2008 Revenue Total financing revenue and other
Slide 32: GMAC: Preliminary Consolidated Condensed Balance Sheet
GMAC: Preliminary Consolidated Condensed Balance Sheet Supplemental ($ millions) 6/30/2009 12/31/2008 Assets Cash and cash equivalents $18,655 $15,151 Investment securities 9,992 7,444 Loans held-for-sale 11,440 7,919 Finance receivables and loans, net of unearned income 90,821 100,073 Allowance for
Slide 33: Auto Finance: Lease Residual Trends
Global Auto Finance: Lease Residual Trends Sales Proceeds as a % of Original ALG Estimate 1 - U.S. scheduled terminations on a managed basis, all lease terms. Supplemental U.S.- All Segements (by termination year) 1 75 85 95 105 115 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2006 2007 2008 2009
Slide 34: Auto Finance: Coverage Ratios
Global Auto Finance: Coverage Ratios Coverage ratio including NAO retail balloon contracts Supplemental Note: All figures are credit allowance as a percentage of average assets. Q2 2009 Q2 2008 MEMO: Q1 2009 NAO 4.5% 3.8% 5.0% IO 2.0% 1.6% 1.9% Consolidated 3.5% 2.8% 3.8% Consumer 34
Slide 35: Reconciliation of Insurance Core Earnings
Reconciliation of Insurance Core Earnings Supplemental 3 - Amount within investment income in Forms 10-Q and 10-K. 2 - Amount within other income in Forms 10-Q and 10-K. 1 - Amount within acquisition and underwriting expense in Forms 10-Q and 10-K. ($ millions) Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 200
Slide 36: Mortgage Operations: Production
Mortgage Operations: Production 1 - International includes some nonprime production. 1 1 Supplemental 1 - International includes some nonprime production. Note: Totals may not foot due to rounding. ($ billions) Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008 Q4 2007 Q3 2007 Q2 2007 Prime conforming
Slide 37: Mortgage Operations: HFS Portfolio
HFS and HFI Q2 09 transfers: HFS to HFI $339 million HFI to HFS $1,287 million Mortgage Operations: HFS Portfolio Supplemental Note: Mortgage Operations’ HFS is part of total loans held for sale. Q2 2009 Total HFS Portfolio of $6.9 billion 43% 6% 4% 47% 0% Prime Conforming Prime Non-conforming Nonpr
Slide 38: Mortgage Operations: Q2 Significant Items
Mortgage Operations: Q2 Significant Items 1 - Gain/(Loss) on Sale of Loans excludes the Gain/(Loss) from Deconsolidation of Securitized HFI. 2 - History has been restated for the reclass of uncertificated securities from Investment Securities to Other Income to be in compliance with BHC reporting. S
Slide 39: ResCap, LLC: Key Financial Information
ResCap, LLC: Key Financial Information 1 - For the purpose of ResCap’s tangible net worth covenants, consolidated tangible net worth is defined as the company’s consolidated equity, excluding intangible assets and any equity in Ally Bank to the extent included in ResCap’s consolidated balance sheet.
Slide 40: GMAC: Capital Measures as of 6/30/09
GMAC: Capital Measures as of 6/30/09 Supplemental Note: Numbers may not foot due to rounding. Capital 6/30/2009 3/31/2009 Shareholders’ Equity $26.0 $22.0 Less: Goodwill and certain other intangibles (0.7) (1.4) Unrealized (gain) loss and other adjustments (0.3) (0.1) Total Tier 1 Capital 25.0 20.5
Slide 41: Capital and Liquidity: Term Debt Maturity Profile
Global Capital and Liquidity: Term Debt Maturity Profile Supplemental Note: - Maturities are as of 6/30/2009 and reflect par value of debt. Excludes original issue discount of $4.9 billion, and collateralized borrowings in securitization trusts representing mortgage lending related debt that is repa