Ally Financial Inc. · NYSE:ALLY
Ally Financial — General Motors Acceptance — 2005 GMAC AFSA Investor Conference
35 slides from Ally Financial's conference presentation, May 17, 2005
Slide 1: 2005 GMAC AFSA Investor Conference
2005 GMAC AFSA Investor Conference May 17, 2005 Sanjiv Khattri Executive Vice President & Chief Financial Officer
Slide 2: GMAC Safe Harbor
GMAC Safe Harbor In the presentation that follows and in related comments by General Motors Acceptance Corporation's management, our use of the words "expect", "anticipate", "project", "estimate", "forecast", "objective", "plan", "goal", "outlook", "target", "pursue" and similar expressions is inten
Slide 3: General Motors
General Motors 3
Slide 4: 2005 First Quarter Highlights
2005 First Quarter Highlights Adjusted EPS ($1.48) (excludes special items), ($839) million Net Loss, $45.8 billion Revenue Reported EPS ($1.95), ($1.1) billion Net Loss Low Q1 '05 production levels combined with a weaker product mix and increased healthcare expense drove significant loss at GMNA Fa
Slide 5: GM Q1 Adjusted Results - Net Income
2004 2005 2005 Fav/(Unfav) 2004 ---------------- $ Millions ----------------- GMNA $401 ($1,336) ($1,737) GME (116) (103) 13 GMLAAM 1 46 45 GMAP 275 60 (215) Total Automotive 561 (1,333) (1,894) GMAC 764 728 (36) Corporate Other (117) (234) (117) Total Net Income 1,208 (839) (2,047) EPS (excl. speci
Slide 6: General Motors Acceptance Corporation
General Motors Acceptance Corporation 6
Slide 7: Major Lines of Business
3 Major Lines of Business Financing (2004 assets of $202 Billion) Financing loans to automotive retail and lease customers 8.6 million retail automotive accounts Inventory financing to automotive dealers Real estate and working capital loans to dealers 9,500 automotive dealer relationships Full-serv
Slide 8: Organization Structure
Organization Structure 8 GMAC Financial Services Financing Operations Insurance Operations North American Auto Operations International Auto Operations Commercial Finance Group Residential Capital MIC Personal Lines Mortgage Operations Commercial Mortgage RFC Residential Mortgage GM
Slide 9: GMAC Global Origination Volume
GMAC Global Origination Volume 2001. 2002.— 2003 | 2004 (thousand of units) Global Automotive Financing Volume Consumer 2,718 2,641 2,348 | 2,493 Wholesale 5,853 6,348 6312] 6,558 Consumer Financing ($ billions) $69 $71 $68 $69 Avg. Wholesale Assets Outstanding ($ billions) $20 $18 $24 $28 (@ billio
Slide 10: GMAC Net Income
GMAC Net Income Mortgage/Insurance Financing $ millions Net Income increases in a challenging ratings environment $728 Q1 10
Slide 11: Net Income by Sector
Net Income by Sector 2002 2004 Auto Finance Diversified Businesses (Mortgage, Insurance, etc.) GMAC Net Income Diversification Sustainable future earnings driven by diverse business portfolio 11
Slide 12: First Quarter 2005 Net Income
Memo: 2003 Memo: 2003 2004 2005 2005 2005 Fav/(Unfav) 2004 Financing $302 $442 $248 ($194) Mortgage 371 371 231 385 154 Insurance 26 26 91 95 4 Total 699 699 764 728 (36) First Quarter 2005 Net Income $ millions 12
Slide 13: Recent Financial Results Achieved in a Difficult Environment
Recent Financial Results Achieved in a Difficult Environment Credit Rating Downgrades Rising Market Interest Rates Widening GMAC Borrowing Spreads Declining Mortgage Volume 13
Slide 14: 2005 Net Income
2005 Net Income Financing Operations Insurance Operations Mortgage Operations At least $2.5 Billion 14
Slide 15: Mortgage Net Income
Mortgage Net Income Industry Volume * ($ trillion) 2.0 2.6 3.8 2.8 2.2 $ millions Volume represents US residential mortgage industry - source: Fannie Mae $385 Q1 15
Slide 16: 2005 Mortgage Outlook
2005 Mortgage Outlook Industry Volume GMAC Mortgage Profitability Growth in U.S. market share for 9th year in a row Increase in servicing income Increase in fee-for-service businesses Expansion of international mortgage operations 16
Slide 17: Insurance Net Income
Insurance Net Income $ millions $95 Q1 17
Slide 18: 2005 Insurance Outlook
2005 Insurance Outlook Insurance Premium Growth Underwriting Performance Growth in International Markets Income From Investment Portfolio 2005 Outlook G G G G G G 18
Slide 19: Financing Net Income
Financing Net Income $248 Q1 $ millions 19
Slide 20: 2005 Financing Outlook
2005 Financing Outlook 2005 Outlook G Credit Losses Y Y Rising Interest Rates Widening Borrowing Spreads Balance Sheet Capacity Y G Gains on Off-Lease Vehicles 20
Slide 21: GMAC Liquidity Update
GMAC GMAC Liquidity Update
Slide 22: GMAC Liquidity Position
GMAC Liquidity Position GMAC currently with very strong liquidity position Strong Q1 '05 cash portfolio of $18.5 billion* Capital leverage ratio reduced Term of debt maturities extended Many new funding channels established with more being cultivated Reduced reliance on institutional unsecured debt
Slide 23: Liquidity Profile
Liquidity Profile 23 Includes cash; excludes on-balance sheet secured debt and the related assets
Slide 24: GMAC Global Liquidity
GMAC Global Liquidity Over $70B of unutilized capacity Strong Q1 '05 cash portfolio of $18.5B* *Includes $2.4B of cash invested in a portfolio of highly liquid marketable securities 24
Slide 25: GMAC Access to Capital
GMAC Access to Capital Small Banks/ Insurance Co.'s Syndicated Whole Loan Sales GMAC Asset Origination Platform Major Banks Seeking to Retain Whole Loans Investment Banks Seeking to "Repackage" and Sell to Investors GMAC Balance Sheet (GMAC Auto Bank or other B/S Capacity) Public & Private Market As
Slide 26: New Funding Initiatives
New Funding Initiatives Further develop the private and public whole loan markets for auto assets GMAC selling more subordinated tranches Extending committed flow agreements Syndicated multi-investor whole loan transactions Grow GMAC banks GMAC Automotive Bank, GMAC Bank, GMAC Commercial Mortgage Ba
Slide 27: US Funding Mix
US Funding Mix 2001 2004 Asset Backed Securities Institutional Unsecured Whole Loan Sales Retail $ 65 Billion $ 47 Billion* * Includes pre-funding for 2005 27
Slide 28: Impact of ABS on Global Automotive Funding
Impact of ABS on Global Automotive Funding Outstanding Secured (ABS) Unsecured 21% 79% 2004 2001 18% 82% 28
Slide 29: Originate/Sell Auto Finance Model
Originate/Sell Auto Finance Model GMAC "Front-End" Financial Institutions "Back-End" Unique Origination Platform Captive Financing for GM's Subvented Business Auto Loan Underwriting Expertise Loan Servicing Expertise Low Cost of Funds Balance Sheet Capacity 29
Slide 30: GMAC RFC and GMAC Mortgage Credit Ratings
GMAC RFC GMAC Mortgage GMAC Credit Rating Residential Capital Credit Rating Residential Mortgage Operations Stand-alone Credit Rating (Residential Funding Corp) 30
Slide 31: 2005 GMAC U.S. Auto Funding Plan
2005 GMAC U.S. Auto Funding Plan * Includes pre-funding for 2005 31 ABCP Term ABS Bank Conduits
Slide 32: GM / GMAC Operating Agreement
GM / GMAC Operating Agreement Formal public operating agreement in place since 2001 All credit transactions are conducted and priced at prudent and commercially reasonable standards and established on an arm's length basis GMAC's equity will be kept at commercially-reasonable levels, as determined q
Slide 33: 2005 Objectives
2005 Objectives Net Income Earn at least $2.5 billion Dividends to GM Remit in excess of $2.0 billion Strong Liquidity Position Ensure ample funding under downside scenarios 33
Slide 34: Q & A
Q & A 34
Slide 35: General Motors Acceptance Corporation
General Motors Acceptance Corporation 35
General Motors Acceptance — 2005 GMAC AFSA Investor Conference on 6ix