Slide 1: Preliminary 2008 Second Quarter Results
Preliminary 2008 Second Quarter Results July 31st, 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 13 ResCap Page 15 Liquidity and Funding Page 21 Summary Page 25 Supplemental Page 26
Slide 4: GMAC: Second Quarter 2008 Performance Highlights
GMAC: Second Quarter 2008 Performance Highlights Q2 2008 consolidated loss of $2.5 billion, versus a $293 million profit in Q2 2007 North America Auto Finance business negatively affected by slowdown in vehicle sales and deterioration in prices for used trucks and SUVs. Operating lease portfolio was
Slide 5: GMAC: Net Income and Significant Items
GMAC: Net Income and Significant Items 5 Notable Items (Pre-tax) Net Income by Segment *Includes Commercial Finance operating segment, 21% ownership of former commercial mortgage unit and other corporate activities. *Q2 2007 only includes HFS Valuation Adjustments.
Slide 6: Global Auto Finance: Key Metrics
Global Auto Finance: Key Metrics Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Net Income 285 593 398 395 554 137 258 -717 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Used 1.4 1.4 2 2.1 2.3 1.9 2.1 2.5 New 18.8 10.8 12.3 14 14.5 13.4 12.9 12.4 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07
Slide 7: Global Auto Finance: Condensed Income Statement
Global Auto Finance: Condensed Income Statement
Slide 8: Global Auto Finance: Lease Residual Trends
Global Auto Finance: Lease Residual Trends Decreased demand for certain used vehicles has caused an unprecedented rapid decline in lease residual values U.S. Sales Proceeds as a % of Original ALG Estimate Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2005 99.8 103.1 106.7 108 107 104 102.4 104.4 1
Slide 9: Global Auto Finance: North American Lease Impairment
Global Auto Finance: North American Lease Impairment North American Managed Lease Portfolio - Vehicle Mix As of 6/30/08 GMAC recognized a $716 million pretax impairment on its operating lease portfolio, driven by a sharp decline in remarketing proceeds primarily on SUVs in the U.S. Roughly 98% of th
Slide 10: Global Auto Finance: North American Lease Impairment
Global Auto Finance: North American Lease Impairment $716 million impairment charge would have been higher without GM contractual leasing support programs, including: Estimated risk sharing $750 million Estimated residual support $800 million Other lease related support $350 million Previously paid
Slide 11: Global Auto Finance: Consumer Auto Loss Trends
Global Auto Finance: Consumer Auto Loss Trends Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Managed 0.0112 0.0122 0.0113 0.0092 0.0101 0.0105 0.0134 0.014 Net Retail Losses (% Avg Assets) Q2 2008 1.68% 0.38% 0.57% 1.51% 1.40% Q2 2007 1.03% 0.41% 0.49% 1.08% 0.92% Year over Year Change + 6
Slide 12: Global Auto Finance: Auto Delinquency Trends
Global Auto Finance: Auto Delinquency Trends Loans > 30 Days Past Due Q2 2008 2.18% 1.41% 1.91% 3.96% 2.30% Q2 2007 2.37% 1.48% 2.18% 4.15% 2.46% Year over Year Change - 19bps - 7bps - 27bps - 19bps - 16bps Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Managed 0.026617552 0.026132226 0.025
Slide 13: Insurance: Key Metrics
Insurance: Key Metrics Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Net Income 183 735 143 131 117 68 132 135 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Core 126 170 143 134 114 70 131 84 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Combined 0.894 0.925 0.91 0.902
Slide 14: Insurance: Condensed Income Statement
Insurance: Condensed Income Statement
Slide 15: ResCap: Key Messages
ResCap: Key Messages Capital and Liquidity Successfully completed a global refinancing including the ResCap bond exchange Affiliate transactions structured to support liquidity in light of external market constraints Significant nonconforming asset sales completed, driving material losses while gene
Slide 16: ResCap: Key Metrics
ResCap: Key Metrics Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Net income 83 -128 -910 -254 -2261 -921 -859 -1860 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Total HFI, net of Allowance 73.1 67.9 63.6 61 59 41.3 34.001 30.3 All Other 59.508191 72.2 67 64.6 57.1 48.1 47.371 4
Slide 17: 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 29 of this presentation.
Slide 18: ResCap: Nonprime and Prime Exposure
Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Nonprime 1.2 0.3 0.2 0.2 0.2 0.2 Prime 5.3 3.6 1.6 1.5 1.6 1.3 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 a
Slide 19: 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 Q2 '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 0.0061 0.0046 0.0067 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 % Lend
Slide 20: ResCap: Capital and Liquidity
ResCap: Capital and Liquidity Total equity of $4.1 billion (6/30/08) ResCap was compliant with its tangible net worth and minimum cash covenants at quarter end Global ResCap cash and cash equivalents of $6.6 billion (6/30/08) ResCap cash and cash equivalents increased $2.4 billion compared to Q1 200
Slide 21: Global Liquidity: GMAC and ResCap Debt Refinancing
Global Liquidity: GMAC and ResCap Debt Refinancing Successfully completed global debt refinancing in challenging market Converted $7.8 billion of unsecured revolvers into $11.4 billion of secured credit capacity Matures in June 2011 with step down in capacity to $7.9 billion after two years Renewed
Slide 22: Global Liquidity: GMAC Bank
Global Liquidity: GMAC Bank Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Assets 23.5 28.1 28.4 30.3 31.9 Deposit Liabilities 10.7 14.5 12.8 15.4 16.9 FDIC has granted a 10-year waiver on the GMAC ownership of GMAC Bank The approval contained several conditions: GMAC Bank required to maintain a minimum leverag
Slide 23: ResCap: Debt Maturity Schedule
ResCap: Debt Maturity Schedule 2008 2009 2010 2011 2012 2013 2014 2015 Pre-Exchange 4032 2458 2997 1244 1957 2294 718 487 2008 2009 2010 2011 2012 2013 2014 2015 Post Exchange 275 618 3651 226 442 2718 1834 1861 Pre-Exchange Post-Exchange
Slide 24: Global Liquidity: Roll Forward
Global Liquidity: Roll Forward Cash fell $0.5 billion in the quarter as debt repurchases and bond tender were partially offset by greater on-balance sheet securitizations *Cash and certain marketable securities declined from $18.6 billion at 3/31 to $15.6 billion at 6/30 ** Includes early paydown of
Slide 25: Conclusion
Conclusion GMAC and ResCap face credit and economic challenges Results will remain under pressure throughout 2008 To mitigate these pressures we must execute on servicing excellence, tighter underwriting, aggressively curtailing risk at ResCap and building liquidity Long-term transformational strate
Slide 26: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES ‘02 2008 GMAC Preliminary Results
Slide 27: GMAC: Preliminary Q2 Consolidated Net Income
GMAC: Preliminary Q2 Consolidated Net Income Supplemental
Slide 28: 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
Slide 29: ResCap: Income Statement
ResCap: Income Statement Includes gain on extinguishment of debt of $647 million in the second quarter of 2008 as a result of the completed debt tender offer and the retirement of ResCap debt contributed by GMAC Note: Numbers may not foot due to rounding. Income statement presentation (condensed) as
Slide 30: 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 Q2 '08 Total Domestic 43.9 41.2 31 27.1 20.2 15.5 18.7 17 Total International 7.5 8 6.5 7.7 9.1 5.3 2.2 1 Q106 Q206 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '
Slide 31: ResCap: Global HFS Portfolio
HFS and HFI Q2 08 transfers: HFS to HFI $122 million HFI to HFS $2.3 billion ResCap: Global HFS Portfolio Q208 Prime Conforming 1.17082 Prime Nonconforming 3.16001 Nonprime 1.11647 Prime Second-lien 0.26227 Government 1.32627 Q2 08 Non-Agency Public Securitizations 1.2 Agency 16.7 Non-Agency Whole L
Slide 32: ResCap: Q2 Significant Items
ResCap: Q2 Significant Items Note: These amounts are classified according to ResCap's income statement presentation (includes Auto Bank). Supplemental