Slide 1: Q3 2017 Earnings Conference Call
Q3 2017 Earnings Conference Call November 14, 2017
Slide 2: Safe Harbor Statement
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Safe Harbor Statement This material contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Pri
Slide 3: Our Mission
Our Mission Offering borrowers in China easy access to unsecured credit and investors an attractive investment opportunity and wealth management service through our online platform 3
Slide 4: Yirendai at a Glance
Yirendai at a Glance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Our founders started CreditEase in 2006, and created our online-dedicated business, Yirendai, in 2012 A leading Fintech company in China serving individual borrowers and investors Targeting prime borrowers seeking unsecured c
Slide 5: The Leading Fintech Company in China
The Leading Fintech Company in China WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx FIRST lending mobile app in China at scale Asia Banker Award LARGEST online platform for consumption loans(1) WELL-KNOWN brand name in China for fintech Ranked #1 among 2000+ online lending platforms(2) RMB 60
Slide 6: Addressing China's Consumer Finance Needs
Addressing China’s Consumer Finance Needs WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Traditional Yirendai Banking Solution Focus on Enterprise Huge Unmet Consumer Lending and High Net Credit and Wealth Worth Individuals Management Opportunity Market Offline Branch Offices Innovative Onlin
Slide 7: Capital Efficient Marketplace Model
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Capital Efficient Marketplace Model No Regulatory Capital Adequacy or Liquidity No Co-Investing Requirements Matched Assets and No Deposits Liabilities 77
Slide 8: Investment Highlights
www.yirendai.com Investment Highlights
Slide 9: Key Investment Highlights
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Key Investment Highlights 99
Slide 10: Large Unsecured Consumer Credit Demand
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Large Unsecured Consumer Credit Demand (1) Unsecured Consumer Finance Market in China (1) Immediately addressable market: (By outstanding loan balance, USD Billion) prime borrowers with unmet unsecured 1,885 credit needs • USD 666 billion in 20
Slide 11: Large Wealth Management Market
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Large Wealth Management Market Wealth Management Market in China China’s wealth management market (By population with investable assets of above RMB 600K, million) is heavily dominated by retail (over 70%) 28 17 Individual wealth management mar
Slide 12: A Leading Fintech Company in China
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 A Leading Fintech Company in China RMB RMB 60.5 Billion 34.2 Billion 915,900 1.1M+ Cumulative loan Remaining principal of Cumulative Cumulative facilitations (1) performing loans(2) number of borrowers(1) number of investors(1) RMB RMB 12.2 Bil
Slide 13: Strong Momentum in Online Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Strong Momentum in Online Growth Number of Online Borrowers Online Loan Volume Online vs. Offline Loan Volume (Thousand) (RMB Bn) (RMB Bn) 329.7 14.8 14.8 122.2 5.3 5.3 13.1 8.3 9M16 9M17 9M16 9M17 9M16 9M17 Online loan volume Offline loan volu
Slide 14: Expanding Borrower Universe and Investor Base
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Expanding Borrower Universe and Investor Base Cumulatively Registered Borrowers Cumulatively Registered Investors (million) 43.4 (million) 7 40 6.0 6 32 5 24 4 3 16 2 8 1 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q15 2Q15 3Q15
Slide 15: Extensive Data Set and Credit Decisioning Capabilities
4 Extensive Data Set and Credit Decisioning WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Capabilities Proprietary Extensive Data Set Risk Grid Decisioning Platform Big Data I Aggregation & Analysis Bank 400+ Location Statements Decisioning Rules Developed FICO II PBOC Credit Credit Card Chi
Slide 16: Yiren Wealth: Strong Growth Momentum
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Yiren Wealth: Strong Growth Momentum AUM Per Investor Reach New High Investment Yield (RMB Bn) (RMB 000) (%) 119.2 9.5 120 32.4 9.2 103.2 30 9.0 27.0 8.9 89.3 83.8 90 8.7 76.8 23.2 8.5 62.0 19.8 20 8.2 16.4 60 53.3 13.5 8.0 7.9 7.9 7.9 10.9 10
Slide 17: Financial Highlights
www.yirendai.com Financial Highlights
Slide 18: Financial Highlights
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Financial Highlights 1 Marketplace Model 2 Disciplined Growth of Loan Facilitations 3 Sophisticated Risk Pricing Product Portfolio 4 Robust Growth and Profitability 5 Proven Credit Performance 6 Business Outlook 18 18
Slide 19: Marketplace Model
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Marketplace Model Principal + Interest Borrowers Investors Transaction Fees Service Fees Loans 1 2 3 Transaction Fees from Borrowers Service Fees from Investors Other Revenue Charged to borrowers for loan Monthly management fee charged Includes
Slide 20: Disciplined Growth of Loan Facilitations
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 Disciplined Growth of Loan Facilitations (RMB Million) 12,185 12,000 11,000 10,000 9,000 8,536 8,000 7,246 6,883 7,000 5,617 6,000 5,000 4,539 4,000 3,302 3,447 3,000 2,551 2,084 2,000 1,621 1,121 1,000 686 170 252 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q
Slide 21: 9M 2017 Loan Facilitation Breakdown
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 9M 2017 Loan Facilitation Breakdown Pricing 9M 2017 Volume Risk 9M 2017 Volume % % Grade (RMB billion) Grade (RMB billion) Ⅰ 1.7 6% A 0.7 3% Ⅱ 5.9 21% B 2.1 7% Ⅲ 7.0 25% C 3.3 12% Ⅳ 6.9 25% D 21.9 78% Ⅴ 6.5 23% Total 28.0 100% Total 28.0 100% 2
Slide 22: Net Revenue Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Revenue Growth (RMB Million) Annual Quarterly 11.4 14.7 14.5 13.7 16.1 16.2 15.6 15.6 14.1 13.9 12.4 3,500 8.8 13.7 16.0 1,514 3,238 1,400 3,000 1,200 1,183 2,500 1,071 1,022 1,000 877 2,000 800 734 1,500 1,314 600 556 452 1,000 371 400 306
Slide 23: Adjusted EBITDA
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Adjusted EBITDA Annual Quarterly (RMB Million) (RMB Million) （13.5） 30.7 33.7 20.2 36.4 34.3 28.0 37.1 36.1 25.2 37.5 39.2 32.0 27.9 1,093 422 1,100.0 401 400 400.0 378 900.0 300.0 700.0 265 221 207 500.0 200.0 403 300.0 127 126 112 100.0 100.0
Slide 24: Net Income
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Income Annual Quarterly (RMB Million) (RMB Million) (14.1) 21.0 35.5 14.9 26.1 22.8 18.4 23.7 35.5 39.3 35.5 34.3 22.7 20.0 1,150.0 1,116 400.0 380 950.0 351 344 303 750.0 300.0 269 261 550.0 200.0 350.0 275 132 150.0 100.0 80 84 83 28 (50.
Slide 25: Proven Credit Performance
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Proven Credit Performance Cumulative M3+ Net Charge Off Rates (1) (2) Loans Facilitated Since 2015 (Quality Assurance Program Model) (3) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% (Month on Book) 0.0% 4 7 10 13 16 19 22 25 28 31 34 2015Q1 2015Q2 2015Q3 20
Slide 26: Business Outlook
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Business Outlook Total loans facilitated in the range of RMB 40.0 billion to RMB 40.5 billion Total net revenue in the range of RMB 5.2 billion to RMB 5.3 billion Full Year 2017 (1) Adjusted EBITDA (non-GAAP) in the range of RMB 1.60 billion to
Slide 27: Appendix
www.yirendai.com Appendix
Slide 28: Income Statement (1/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Income Statement (1/2) Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended September December March 31, June 30, September September 30
Slide 29: Income Statement (2/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Income Statement (2/2) Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended September December 31, March 31, June 30, September Septembe
Slide 30: Balance Sheet
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Balance Sheet Unaudited Condensed Consolidated Balance Sheet (in thousands, except for share, per share and per ADS data, and percentages) As of September June 30, September September 30, 2016 2017 30, 2017 30, 2017 RMB RMB RMB USD Cash and cash
Slide 31: Cash Flow Data
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Cash Flow Data Unaudited Condensed Consolidated Cash Flow Data (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended September December 31, March 31, June 30, September September 30, 2016 2016 20
Slide 32: Operating Highlights
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Operating Highlights Operating Highlights (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended September December March 31, June 30, September September 30, 2016 31, 2016 2017 2017 30, 201
Slide 33: Delinquency Rates
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Delinquency Rates Delinquency Rates Delinquent for 15-29 days 30-59 days 60-89 days All Loans December 31, 2013 0.2% 0.4% 0.3% December 31, 2014 0.3% 0.2% 0.2% December 31, 2015 0.4% 0.5% 0.4% December 31, 2016 0.4% 0.7% 0.6% March 31, 2017 0.4%
Slide 34: Net Charge-off Rates (Old Pricing Grade-1/3)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates (Old Pricing Grade-1/3) Net Charge-Off Rate for Previous Risk Grid Amount of loans Accumulated M3+ Net Loan issued facilitated during the Charge-Off as of September Total Net Charge-Off Rate period Loan grade period 30, 2017
Slide 35: Net Charge-off Rates (New Risk Grade-2/3)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates (New Risk Grade-2/3) Net Charge-Off Rate Loan Amount of loans Accumulated M3+ Net issued Loan facilitated during the Charge-Off as of September Total Net Charge-Off Rate period grade period 30, 2017 as of September 30, 2017 (
Slide 36: Net Charge-off Rates (3/3)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates (3/3) M3+ Net Charge-Off Rate Loan issued Month on Book period 4 7 10 13 16 19 22 25 28 31 34 2013Q1 1.9% 3.2% 3.1% 2.3% 2.0% 0.9% 0.5% 0.5% 0.4% 0.4% 0.4% 2013Q2 1.8% 3.6% 4.5% 5.9% 6.4% 7.4% 6.1% 7.0% 7.5% 7.5% 7.8% 2013Q3
Slide 37: A Leading Online Consumer Finance Marketplace in China
A Leading Online Consumer Finance Marketplace in China 37