Slide 1: Preliminary 2009 Third Quarter Results
Preliminary 2009 Third Quarter Results November 4, 2009 9:00 AM EST 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: GMAC: Significant Recent Events
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 lend
Slide 4: GMAC: Third Quarter 2009 Highlights
Net loss of $767 million compared to second quarter net loss of $3.9 billion Net loss from continuing operations of $671 million compared to $3.3 billion in second quarter Results impacted by several significant items (see following slide) Originated $7.7 billion and $15.9 billion of auto and mortga
Slide 5: GMAC: Significant Items Impacting Earnings
Certain business lines were isolated as discontinued operations as they are being sold Several significant items impacted third quarter results GMAC: Significant Items Impacting Earnings (1) Includes provision, impairments and reserves on certain non-bank mortgage assets. Note: Loss of ($266) millio
Slide 6: GMAC: Income by Segment
GMAC: Income by Segment (1) Corporate and Other segment includes Commercial Finance, equity investments, amortization of original issue discount from GMAC bond exchange, and other corporate activities. (2) Discontinued Operations currently includes: U.S. property and casualty insurance (Insurance se
Slide 7: Global Auto Finance: Highlights
Global Auto Finance: Highlights Global Auto Finance earned $395 million of pre-tax income from continuing operations compared to $347 million in the second quarter Three international units have been classified as discontinued and subsequently impaired Consumer originations totaled $7.7 billion for
Slide 8: Global Auto Finance: Key Metrics
Global Auto Finance: Key Metrics All tables include North American and International Operations except where noted. Origination and asset base figures include auto loans and leases. (1) Estimated remarketing proceeds at time of lease origination. (2) U.S. scheduled lease terminations on a managed ba
Slide 9: Global Auto Finance: Condensed Income Statement
Global Auto Finance: Condensed Income Statement Notable Items (Pre-Tax) ($ millions) 3Q 09 2Q 09 3Q 08 2Q 09 3Q 08 Total financing revenue and other interest income 3,022 $ 3,108 $ 4,246 $ (86) $ (1,224) $ Interest expense 1,171 1,309 2,179 (138) (1,008) Depreciation expense on operating lease asset
Slide 10: Global Auto Finance: Credit Allowance Coverage Ratios
Global Auto Finance: Credit Allowance Coverage Ratios Consumer coverage ratios declined from 2Q 09 due to changes to the charge-off policy to become compliant with bank holding company requirements Change in policy accelerated $134 million of charge-offs for which reserves had previously been establ
Slide 11: Global Auto Finance: Consumer Delinquency Trends
Shrinking portfolios, mainly in North America, have contributed to increased delinquency rates Elevated unemployment, especially in the U.S., and seasonality continue to affect delinquencies Legacy Nuvell sub-prime portfolio represents less than 14% of total North American consumer receivables and a
Slide 12: Global Auto Finance: Consumer Loss Trends
Global Auto Finance: Consumer Loss Trends Loss numbers for this quarter were impacted by a charge off policy change as demonstrated below ($ mil) Global Annualized Credit Losses for Managed Retail Assets 267 280 306 256 241 231 177 309 134 3.29% 2.27% 2.41% 2.10% 1.56% 1.40% 1.34% 1.05% 2.19% $0 $10
Slide 13: Insurance Highlights
Insurance Highlights Reached agreement to sell U.S. consumer property and casualty insurance business 3Q 09 written premiums increased from 2Q 09 driven by “Cash-for- Clunkers” volume Opportunity to increase written premiums with the Ally Dealer Rewards Program Note: 4Q 08 includes reversal of prior
Slide 14: Mortgage Operations: Highlights
Mortgage Operations: Highlights Mortgage Operations includes ResCap, LLC as well as the mortgage activities of Ally Bank and ResMor Trust Mortgage Operations results differ materially from ResCap, LLC The Mortgage Operations segment experienced a net loss for the quarter driven primarily by repurcha
Slide 15: Mortgage Operations: Key Metrics
Mortgage Operations: Key Metrics Note: G overnment and prime second liens are included in prime non-conforming. Total assets include $3.8 billion of assets securitized on-balance sheet and $1.8 billion of assets related to other balance sheet gross-ups at 9/30/09 ($ mil) Pre-Tax Income $(932) $(905)
Slide 16: Mortgage Operations: Condensed Income Statement
Mortgage Operations: Condensed Income Statement Notable Items (Pre-Tax) (1) Includes provision, impairments and reserves on certain non-bank mortgage assets. ($ millions) 3Q 09 2Q 09 3Q 08 2Q 09 3Q 08 Total financing revenue and other interest income 570 $ 590 $ 862 $ (20) $ (292) $ Interest expense
Slide 17: Mortgage Operations: Credit Allowance Coverage Ratios
Mortgage Operations: Credit Allowance Coverage Ratios The consumer coverage ratio increased over prior periods Despite consumer mortgage assets decreasing by over 25% since 3Q 08, the allowance balance has increased 16% The commercial mortgage coverage ratio is down relative to prior periods as cert
Slide 18: Corporate and Other: Condensed Income Statement
Corporate and Other: Condensed Income Statement Notable Items (Pre-Tax) ($ millions) 3Q 09 2Q 09 3Q 08 2Q 09 3Q 08 Net financing loss (501) $ (441) $ (114) $ (60) $ (387) $ Gain (loss) on extinguishment of debt 4 8 (1) (4) 5 Other income, net of losses 45 63 (109) (18) 154 Total other revenue 49 71
Slide 19: GMAC: Deposits
Ally Bank in the U.S. and ResMor Trust in Canada provide funding flexibility for GMAC through their deposit-taking capabilities as well as other sources of favorable funding The Ally value proposition is resonating with consumers and has been extended to certain ResMor products “Straightforward” and
Slide 20: GMAC: Liquidity
GMAC: Liquidity Parent company available liquidity stands at $29.7 billion $9.5 billion of this liquidity is available based on current collateral $8.3 billion of available cash liquidity ABS market conditions significantly improved (1) GMAC Consolidated includes Insurance, ResCap, and Ally Bank. (2
Slide 21: GMAC: Capital Ratios
GMAC: Capital Ratios (1) The risk-weighted assets are determined by allocating assets and specified off-balance sheet financial instruments into six weighted categories, with higher levels of capital being required for the categories perceived as representing greater risk. The Company’s September 30
Slide 22: GMAC: Conclusion
GMAC: Conclusion Third quarter results affected by continued cleanup of credit costs and several significant items GMAC continues its strategic review of businesses and additional platforms may be impacted in the future Auto business was profitable again this quarter and origination volumes continue
Slide 23: Supplemental Charts
Supplemental Charts GMAC FINANCIAL SERVICES ‘032009 GMAC Preliminary Results 23
Slide 24: GMAC: Preliminary Consolidated Condensed Income Statement
GMAC: Preliminary Consolidated Condensed Income Statement Supplemental ($ millions) 3Q 09 2Q 09 3Q 08 2Q 09 3Q 08 Total financing revenue and other interest income 3,417 $ 3,563 $ 4,951 $ (146) $ (1,534) $ Interest expense 1,899 2,069 2,880 (170) (981) Depreciation expense on operating lease assets
Slide 25: GMAC: Preliminary Consolidated Condensed Balance Sheet
GMAC: Preliminary Consolidated Condensed Balance Sheet Supplemental Increase/ (Decrease) vs. ($ millions) 9/30/09 12/31/08 12/31/08 Cash and cash equivalents 14,225 $ 15,151 $ (925) $ Investment securities 14,376 7,444 6,932 Loans held-for-sale 14,963 7,919 7,044 Finance receivables and loans, net o
Slide 26: GMAC: Net Income by Segment
GMAC: Net Income by Segment Supplemental (1) Corporate and Other segment includes Commercial Finance, equity investments, amortization of original issue discount from GMAC bond exchange, and other corporate activities. (2) Discontinued Operations currently includes: U.S. property and casualty insura
Slide 27: 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 28: GMAC: Capital Measures as of 9/30/09
GMAC: Capital Measures as of 9/30/09 Supplemental Note: Numbers may not foot due to rounding. Capital 9/30/2009 6/30/2009 Shareholders’ Equity 24.9 $ 26.0 $ Less: Goodwill and certain other intangibles (0.7) (0.7) Unrealized (gain) loss and other adjustments (0.5) (0.3) Total Tier 1 Capital 23.8 25.
Slide 29: Global Capital and Liquidity: Term Debt Maturity Profile
Global Capital and Liquidity: Term Debt Maturity Profile Supplemental Note: Numbers may not foot due to rounding. Maturities are as of 9/30/2009 and reflect par value of debt. Excludes original issue discount of $4.6 billion, and collateralized borrowings in securitization trusts representing mortga
Slide 30: GMAC: Ownership Structure
GMAC: Ownership Structure Supplemental Preferred Ownership as of 9/30/2009 Common Ownership as of 9/30/2009 35.4% 22.0% 18.1% 14.6% 9.9% U.S. Treasury Cerberus and Affiliates Cerberus Co-Investors GM Trust GM Company ($ millions) Series Owner Liquidation Preference Book Value Series F Mandatory Conv