1) The document is an investor presentation by GMAC's EVP & CFO from April 2007.
2) It summarizes GMAC's financial performance in 2006, noting challenges in the US residential mortgage market.
3) It provides an outlook for 2007, expecting continued pressure from nonprime assets but stabilization overall as strategic initiatives are implemented.
Mashups and Open Apis- Ideas that worked for us…Sujit Mohanty
This presentation is on application of web2.0 techniques such as mash ups and Open APIs. These techniques have been applied in UNISDR's information systems.
Mashups and Open Apis- Ideas that worked for us…Sujit Mohanty
This presentation is on application of web2.0 techniques such as mash ups and Open APIs. These techniques have been applied in UNISDR's information systems.
HFA Monitoring and Review -Key Questions GuidanceSujit Mohanty
This is an audio guidance on the key questions and means of verification included in the 2009- 2011 Hyogo Framework for Action Monitoring and Review process
A summary of the new online Disaster Risk Reduction (DRR) Project Portal developed by the UNISDR Asia Partnership on Disaster Reduction to collect details of all DRR projects being implemented throughout Asia and the Pacific.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Sanjiv Khattri, Executive Vice President and CFO of GMAC Financial Services AFSA International Fixed Income Investor
1. AFSA International Fixed Income
Investor Presentation
April 26, 2007
Sanjiv Khattri
EVP & CFO
Contact GMAC Investor Relations at (866) 710-4623 or investor.relations@gm.com
2. Forward Looking Statements
In the presentation that follows and in related comments by GMAC LLC (“GMAC”)
management, our use of the words “expect”, “anticipate”, “estimate”, “forecast”, “objective”,
“plan”, “could”, “should”, “would”, “may”, “goal”, “project”, “outlook”, “priorities”, “targets”,
“intend”, “evaluate”, “pursue”, “seek” and similar expressions is intended to identify forward
looking statements.
While these statements represent our current judgment on what the future may hold, and we
believe these judgments are reasonable, actual results may differ materially due to numerous
important factors that are described in GMAC’s most recent report on SEC Form 10-K, which
may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such
factors include, among others, the following: securing low cost funding to sustain growth for
GMAC and ResCap and maintaining the mutually beneficial relationship between GMAC and
General Motors; changes in economic conditions, currency exchange rates, significant terrorist
attacks or political instability in the major markets where we operate; recent developments in
the residential mortgage market, especially in the nonprime sector; changes in the laws,
regulations, policies or other activities of governments, agencies and similar organizations
where such actions may affect the production, licensing, distribution or sale of our products, the
cost thereof or applicable tax rates; and the outbreak or escalation of hostilities between the
United States and any foreign power or territory and changes in international political
conditions may continue to affect both the United States and the global economy and may
increase other risks. Investors are cautioned not to place undue reliance on forward-looking
statements. GMAC undertakes no obligation to update or revise any forward-looking
statements unless required by law. A reconciliation of non-GAAP financial measures included
within this presentation is provided in the supplemental charts.
Use of the term “loans” describes products associated with direct and indirect lending activities
of GMAC’s global operations. The specific products include retail installment sales contracts,
loans, lines of credit, leases or other financing products. The term “originate” refers to GMAC’s
purchase, acquisition or direct origination of various “loan” products.
1
5. 2006 Performance Highlights
On Nov. 30th, successfully completed sale of 51% of GMAC
Established independent credit rating
―
2006 net income of $2.1 billion compared to $2.3 billion for 2005
U.S. residential mortgage market is in the midst of a radical slow
down
Slowing home price appreciation and nonprime credit weakness having
―
significant negative impact
Steady operating performance at Auto Finance in 2006
Results were stable year-over-year despite one-time debt buy back costs
―
Insurance reported record earnings in 2006 with robust underwriting
results
Successfully rebalanced investment portfolio towards higher fixed income and
―
lower equity weightings
4
6. Operating Earnings Walk 2005 vs. 2006
($ millions)
$710
($89)
($474)
($839)
$2,721
$2,029
ResCap 1 Insurance 2 Other 3
2005 Auto Finance 2006
Operating Operating
Earnings* Earnings*
1. Includes gross impact of sale of equity interest in a regional homebuilder of about $259 million, net of tax
2. Includes $568 million capital gains in Q4 due to rebalancing the investment portfolio
3. Includes lower income from our former Commercial Mortgage unit, attributable to 21% ownership following the sale on March 23, 2006
vs.100% ownership in 2005 and deterioration in Commercial Finance primarily related to credit
* Operating earnings reconciled to GAAP net income on next slide
5
7. Full Year Net Income
2006 2005 Change
($ in millions)
Global Automotive Finance $791 $880 ($89)
ResCap1 182 1,021 (839)
Insurance2 1,127 417 710
Other3 (71) 403 (474)
Operating Earnings $2,029 $2,721 ($692)
LLC conversion 791 - 791
Goodwill impairment (695) (439) (256)
Net Income $2,125 $2,282 ($157)
1. Includes gross impact of sale of equity interest in a regional homebuilder of about $259 million, net of tax
2. Includes $568 million capital gains in Q4 due to rebalancing the investment portfolio
3. Includes lower income from our former Commercial Mortgage unit, attributable to 21% ownership following the sale on March
23, 2006 vs.100% ownership in 2005 and deterioration in Commercial Finance primarily related to credit
6
8. ResCap - Diversified Mortgage Enterprise
ResCap is diversified across most sectors of the residential mortgage
market
Has the franchise platform to capitalize on opportunities to better utilize
―
its competitive advantages
7
9. ResCap – 2006 Key Metrics
• Negative nonprime
Moving
valuations
(Securitization / Sales)
• Increase in loan loss
Storage
provisions on nonprime
(HFI / Servicing)
• Nonprime credit issues in
Lending
warehouse lending
(Lending Receivables)
• Increased origination
International
volumes
8
10. ResCap - Nonprime Loan Risk
Relative nonprime loan exposure varies on balance sheet as does
its risk
($ billions)
Warehouse Lending Receivables
Loan Servicing Portfolio
Total: $8.8
Total: $448.6
17% 27%
Nonprime
Prime
Held For Sale Held For Investment
Total: $27.0 Total: $69.4
75%
32%
As of 12/31/2006
9
11. ResCap – Held for Investment Portfolio – Credit Quality
Nonaccrual Loans as a % of total MLHFI *
Asset quality weaker due to slowing
housing market and stress in nonprime
10.5%
mortgage market
9.1% 9.0% 9.2% 9.0% 9.2%
8.4% 8.3%
Nonprime assets continue to drive
increase in delinquencies and
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 nonaccruals
2006
2005
Declines in home price appreciation
Net charge-offs as a % of total MLHFI *
increased severity of losses
0.3%
0.2%
0.2% 0.2% 0.2% 0.1% 0.2% 0.2%
Allowance for loan losses increased to
2.17% at 12/31/2006 from 1.55% at
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
12/31/2005 for the HFI portfolio
2005 2006
* MLHFI – Mortgage Loans Held for Investment. The total MLHFI is $69.4 billion for 2006 & $69.0 billion for 2005 and is included in the balance
sheet under the caption quot;Finance receivables and loans, net of unearned incomequot;
10
12. ResCap - Capital
Capital increased in 2006, resulting in equity at year end of $7.6
billion
Q2 2005 Q4 2005 Q4 2006
($ billions)
Capital Level $7.1 $7.5 $7.6
ResCap’s equity base essentially in line with economic capital
requirements
Capital factors are under review to incorporate recent market volatility
―
GMAC is committed to maintaining a strong capital position at
ResCap and will contribute capital, if needed, to support our
investment grade rating
No dividend payments under consideration
11
13. ResCap - 2007 Outlook
What worked in 2006 continues to work
IBG performance remains solid
―
BCG businesses performing as expected
―
Strong prime originations and market share growth
―
What was bad in Q4 continues to be challenging
Liquidity of nonprime assets
―
Warehouse lending counterparty risk
―
Rising delinquencies on more recent originations
―
12
14. ResCap – Long-term Profile
Long term fundamental earnings potential of the franchise
remains solid
Pressure on income related to nonprime assets likely to abate
as new strategic initiatives are implemented
Sharply reduced nonprime origination volume through tighter
―
underwriting criteria and pricing changes
Nonprime HFI runoff of $20 billion in 2007
―
Structural cost reduction as business is right sized for the lower industry
―
volume
A new operating plan is being implemented to return our U.S.
mortgage business to profitability
13
15. Auto Finance – 2006 Key Metrics
• Strong lease and retail
Originations
originations
• While delinquencies trended
Credit Losses
higher, losses remained at
historically low levels
• U.S. residuals down slightly,
Lease Residuals
reflecting weaker used car
prices
• NAO margins improved in
Margins
Q4, IO still under pressure
14
16. Auto Finance – Consumer Originations
($ billions)
$61 $59
$57 $55
$51
$10 $10 $8 $7 $6
2002 2003 2004 2005 2006
Total Units 3,423 3,082 3,083 2,622 2,575
(in 000s)
New Used
2006 originations increased slightly from 2005 levels
Strong lease growth and GM’s successful 72 hour sale helped drive volumes
―
15
17. Auto Finance – Consumer Credit Quality
Delinquencies as a % of serviced retail assets
30 days or more past due
Delinquencies trended
higher in 2006, reflecting a
2.47%
2.41%
2.40%
somewhat weaker
2.34%
2.27%
2.21% consumer credit
2.16%
environment
2.06%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2005 2006
Annualized credit losses as a % of average
managed retail contracts
Losses remain at
1.09% 1.05%
1.03% historically low levels
0.96%
0.95% 0.95%
0.91% 0.83%
2005 2006
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2005 2006
16
18. Auto Finance – Nonprime
Nonprime auto market has not experienced the pressures affecting the
nonprime mortgage industry
Typical leading indicators for deterioration in nonprime auto credit
─
performance are rising interest rates or rising unemployment - which we are
not seeing
GMAC's exposure to nearprime and nonprime auto loans is limited
Less than 15% of U.S. serviced consumer asset base is considered nonprime
─
using traditional credit bureau scores
GMAC uses a proprietary underwriting model that factors in many more
inputs
Consistent underwriting and credit-scoring criteria
─
In 2006, there was an increase in GMAC’s retail auto delinquencies vs.
2005 but well within the historical range and in line with what the broader
industry is experiencing
Other factors that distinguish nonprime auto from nonprime mortgage
No floating rate or option arm equivalent on the auto finance side; no auto
─
equivalent of a housing bubble; retail loan pricing reflects depreciating
characteristic of the auto asset; consumers typically depend on transportation
for continued employment (vs. ownership of houses)
17
19. Insurance – 2006 Key Metrics
• Flat despite decline in GM retail
Written Revenue*
volume and increased
competition in U.S. personal
lines
• Strong underwriting results
Underwriting Results
driven by higher earned
premiums and lower loss
experience
• Improved combined ratio of
Combined Ratio
92.3% in 2006 vs. 93.9%
in 2005
• Rebalanced investment
Investment Income
portfolio to reduce capital
requirements
* Includes Written Premium
18
20. Insurance – Consolidated Earnings
Fourth Quarter Full Year
($ millions) 2006 2005 2006 2005
Core Earnings1 $170 $99 $499 $361
Capital Gains2 569 38 652 72
Interest Expense (4) (4) (24) (16)
Net Income $735 $133 $1,127 $417
Combined Ratio3 92.5% 92.8% 92.3% 93.9%
1. Core Earnings = Underwriting income + Investment income (net of tax)
2. Portfolio was rebalanced in Q4 2006 resulting in significant capital gains
3. Combined Ratio = Sum of all reported losses and expenses (excluding interest and income tax expense) divided by the total of
premiums and service revenues earned and other income
Favorable underlying core earnings trend continues
19
22. Global Liquidity
2006 YE
($ billions)
Cash and Marketable Securities* $18
Unused Bank Facilities 32
Unused Conduit Capacity 72
Unused Whole Loan Facility 46
Total Available Liquidity $167
* Includes $15 billion cash and cash equivalents and $3 billion invested in marketable securities
Total does not sum to $167 billion due to rounding.
ResCap’s liquidity position at 2006 YE was $64 billion
$1 billion GM equity contribution in March 2007
Substantial committed funding facilities
$10 billion Citibank secured facility in place
―
New $6 billion wholesale bridge facility
―
Exceptional liquidity position offers significant flexibility
Facilitates asset growth
―
Provides cushion against “shocks” which might impair market access
―
21
24. 2007 Funding Plan
Maintain appropriate liquidity cushion
Significant cash balances and committed liquidity facilities
―
Extensive auto loan assets that can be monetized quickly (“dry powder”)
―
Laddering of debt with moderate near-term maturities
―
Reduce all-in cost of borrowings
Active liability management to reduce cost of high-coupon debt
―
Continue to diversify unsecured funding across markets and currencies
―
Further expand securitization programs
―
Expand GMAC Bank funding
―
Project level of funding in 2007 to be consistent with 2005-2006
23
26. GMAC – Diversified Enterprise
GMAC Financial Services
Automotive Other
ResCap Insurance
Finance
Commercial
North American
MIC Finance Group
Auto
Equity interest in
Personal Lines
International Auto Capmark*
* Minority equity interest in Capmark. In March 2006, we closed the sale of approximately 78% of our equity in
Capmark (formerly GMAC Commercial Mortgage)
25
27. Operating Earnings Mix – Business Diversification
With the growth in our mortgage and insurance operations, our auto
finance earnings now represent less than half of GMAC’s net income
Very different than a few years ago when GMAC was predominantly an auto finance
―
company
2002 2005 2006
1 1 1,2
$2.2B $2.7B $2.0B
4% 18 %
15%
38% 39%
56%
44%
5%
81%
Auto Finance ResCap Insurance
1 Operating earnings figures include “Other” business segment. However, the graphical representations exclude “Other”
business segment
2 Includes insurance investment portfolio rebalancing gains of $568 million in 2006.
26
28. Gross Revenue – Business Diversification
Notably strong growth in diversified revenues with about 50% of
revenue being contributed by our mortgage and insurance operations
2002 2005 2006
$24.5B $33.3B $35.7B
4% 5% 2%
12% 16%
13%
14%
52%
56%
26%
30%
70%
Auto Finance ResCap Insurance Other
Gross revenue reflects gross financing revenue plus insurance premiums and service revenue plus mortgage banking income
plus investment income and other income. Gross revenue is not net of interest and discount expense and provision for credit
losses
27
29. The Transaction
Cerberus
led
Investor
Consortium
ity
49
% u
Eq
Eq
uit
1%
y 5
28
30. New GMAC
With the closing of the GMAC sale transaction, GMAC has
emerged as an independent company with an improved credit
profile
Strengthened capital position
―
Dividend restrictions
―
Cost cuttings plans
―
More diversified business strategies
―
GMAC Strategic Focus
Transform GMAC from a captive operation into an independent globally-
―
diversified financial services company
29
31. GMAC Improved Credit Profile
Strengthened Credit Profile
New $2.1 billion (face) layer of preferred equity injected
―
$1 billion GM equity contribution in March 2007
―
Essentially all 2007-2008 “after-tax earnings” to be retained by GMAC
―
All 2009-2011 after-tax profit distributions to Cerberus to be re-invested
―
in GMAC as preferred equity
Certain unsecured exposure to GM in the U.S. capped at $1.5 billion
―
Eliminated potential risks related to GM pension liability
―
Improved access to unsecured funding at lower cost of borrowing
―
30
32. Strategic Priorities
Implement changes to U.S. mortgage operations to address
deteriorating non-prime market environment
Position business to grow again as industry consolidates
―
Diversify operations beyond GM-related businesses
Leverage existing dealer relationship to expand presence beyond GM
―
dealer network
Continue profitable expansion overseas
Capitalize on uniquely broad footprint and extensive experience in
―
international markets
Maintain appropriate liquidity cushion and reduce all-in cost of
borrowings
31
33. Strategic Priorities (Continued…)
Grow GMAC fee-based businesses (e.g., SmartAuction, Fee for
Servicing, etc.)
Generates cashflow with virtually no strain on capital position
―
Capitalize on cross-sell opportunities across GMAC’s 18 million
customers
Sell more products per customer
―
Reduce asset acquisition cost
―
Attack cost side of the business by aligning resources more
efficiently across multiple operations and regions
Maintain asset quality
Further strengthen credit measures and historically strong credit culture
―
across all major businesses
32
34. 2007-2008 Earnings Drivers
Earnings Drivers – 2007-2008
Funding Cost Reduction:
―
Strengthen the capital base
Improve the credit ratings
Reduce borrowing costs
Expand net margins
Operating Expense Reduction:
―
Align global resources more efficiently
Eliminate redundant cost structures
Earnings Drivers – mid-2008 and Beyond
Top line growth
―
Continued funding cost and structural cost efficiency
―
33
35. Operating Expense Reductions
Lean operations
― Examples
Combine similar platforms
Integrating ResCap conforming and non-conforming platforms
Integrating Semperian and Nuvell auto servicing platforms
One general ledger system on a global basis
Reduce HQ overlap across business units
Common systems and processes across platforms to leverage global
scale
― Examples
Information and technology
Simplify infrastructure
Consolidate shared service applications
― Procurement
Manage at global level; economies of scale
― Support functions
Streamline support functions across different business units
34
36. New GMAC - Symmetry Of Shareholder / Bondholder Interest
VALUE PLAY
Aligned Interests
Priority Equity Holder
Initiatives
• Bolster Capital Base • Provides Significant
Protection to Unsecured
• Enhance Liquidity
Bondholders
• Strengthen Credit Measures
• Reduce Borrowing Costs
• Drives Equity Holder
• Expand Net Margins
Returns
• Increase Net Income
35
38. 2007 Outlook
Continuing pressures at ResCap likely to constrain overall
GMAC results near term
Highest priority is implementing changes at ResCap to address
rapidly changing mortgage market
Global Auto Finance is well-positioned to generate attractive
returns
Insurance is expected to deliver another robust year
GMAC’s long-term prospects remain favorable
ResCap’s fundamental earnings potential remains solid
―
Auto finance and insurance operations should mitigate pressure at
―
ResCap in near-term and provide base for growth in long-term
37
40. Summary
2006
Record performance at Insurance group and strong operating results in Auto
―
Finance helped offset weakness in U.S. mortgage sector
2007
Continued solid performance at Insurance and Auto Finance anticipated
―
ResCap profitability likely to remain constrained near term as pressure on
―
nonprime asset values persist
Prime mortgage lending and servicing operations continue to run profitably
in the U.S. and abroad
Strong liquidity position at GMAC and ResCap
―
Significant cash balances, large-scale committed funding facilities and
access to unsecured markets offer extensive financial flexibility
GMAC enters 2007 as a fundamentally stronger company with improved credit
―
profile
Better positioned to withstand near term challenges
Greater flexibility to pursue long term growth possibilities
Beyond 2007
Strategies in diversifying revenues and stabilization of U.S. nonprime mortgage
―
market will result in an even stronger globally diversified financial services
company
39
41. Supplemental
The following supplemental chart is provided to reconcile
adjusted financial data comprehended in the primary chart set with
GAAP-based data (per GMAC’s financial statements) and/or
provide clarification with regard to definition of non-GAAP
terminology
40
42. Reconciliation of Insurance Core Earnings
Fourth Quarter Full Year
2006 2005 2006 2005
($ millions)
Net Income $735 $133 $1,127 $417
Add: Pre-tax interest expense1 7 6 37 24
Less: Pre-tax capital gains2 (875) (58) (1,003) (111)
Add: Tax expense 303 18 338 31
Core Earnings $170 $99 $499 $361
1. Amount within premium tax and other expense in Form 10-K
2. Amount within investment income in Form 10-K
S1