Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Yirendai — FY2015 Earnings Presentation
36 slides from Yiren Digital's earnings presentation, Mar 10, 2016
Slide 1: Fourth Quarter and Full Year 2015 Results
Fourth Quarter and Full Year 2015 Results March 10, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 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, by connecting them directly through our online marketplace 3
Slide 4: Yirendai At a Glance
Yirendai At a Glance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Our founders started offline P2P platforms CreditEase in 1,494 2006, and created our online-dedicated business, Yirendai, in 2012 A leading online consumer finance marketplace connecting borrowers and investors Targeting prim
Slide 5: Online Marketplace Connecting Borrowers with Investors
Online Marketplace Connecting Borrowers with WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Investors Individual Borrowers Investors Monthly Payment Loan Disbursement End to End Automated Online Business Process Proprietary Approval and Servicing and Application Verification Risk Funding List
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 Finance Opportunity Market Offline Branch Offices Innovative Online Consumer Long Application Time Finance Marketplace
Slide 7: Capital Efficient Marketplace Model
Capital Efficient Marketplace Model WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 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
Key Investment Highlights WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Huge Market Opportunity 2 A Leading Online Consumer Finance Marketplace 3 Extensive Data Set and Credit Decisioning Capabilities 4 $$ Expanding Borrower Universe and Investor Base 5 Synergistic Relationship with Credit
Slide 10: US$551 Billion Unsecured Consumer Finance Market
1 US$551 Billion Unsecured Consumer Finance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Market (1) Unsecured Consumer Finance Market in China (1) Immediately addressable market: (By outstanding loan balance, US$ Billion) prime borrowers with unmet unsecured credit needs 1,794 Deepening loa
Slide 11: Multiple Drivers of Growth
1 Multiple Drivers of Growth WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Rising GDP (2014 GDP per Capita, US$‘000) + More Consumption (2014 Consumption as % of GDP) + More Financing of Consumption (2014 Consumption Loan Balance(1) as a % 86.6 of Consumption) 89.5 54.6 51.2 47.2 7.6 2011 20
Slide 12: A Leading Online Consumer Finance Marketplace
2 A Leading Online Consumer Finance Marketplace WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx US$1.89 225,573 32.5% 9 Years #1/#2 Billion Total Marketplace Loan Borrowers and Loans facilitated Credit data Brand Amongst Facilitations (1) Investors through Yirendai supported by Investors/ in Q
Slide 13: Extensive Data Set and Credit Decisioning Capabilities
3 Extensive Data Set and Credit Decisioning WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Capabilities Proprietary Yirendai Score Mobile Carrier Data A Proprietary Data Analysis Platform • Developed in Risk Grade Pricing PBOC conjunction with B Credit Bank Statements FICO Report • Adapted to
Slide 14: Our Borrowers
OurAnalystBorrowers 4WARDED2014\7. Presentation\Cruise_AP_v31.pptx Internet-savvy and more Prime borrowers: credit card receptive to internet finance holders with salary income solutions Primary purpose: “life events” 100% applications processed e.g., wedding, education, through online platform trav
Slide 15: Our Investors
OurAnalystInvestors 4WARDED2014\7. Presentation\Cruise_AP_v31.pptx 100% invest directly through Mass affluent investors online platform in Q4 2015 Majority invest via automated investing tool which allocates Investor protection service funds across a diversified pool of via Risk Reserve Fund loans 1
Slide 16: Synergistic Relationship with CreditEase
5 Synergistic Relationship with CreditEase WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Current model suitable for nascent Chinese unsecured consumer finance market Receive borrower Leverage Utilize CreditEase’s referrals from CreditEase’s loan collections team CreditEase’s sales data to he
Slide 17: Visionary Founder & Experienced Leadership
Visionary 6WARDED2014\7. Founder & Experienced Leadership Analyst Presentation\Cruise_AP_v31.pptx Ning Tang Huan Chen Executive Chairman of Yirendai Director of Yirendai and Chief and Chief Executive Officer of Strategy Officer of CreditEase CreditEase Yihan Fang Yu Cong (Dennis) Chief Executive Off
Slide 18: Financial Highlights
www. yirendai.com Financial Highlights
Slide 19: Financial Highlights
Financial Highlights WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Marketplace Model 2 Disciplined Growth of Loan Facilitations 3 Sophisticated Risk Pricing Product Portfolio 4 Robust Growth and Profitability 5 Proven Credit Performance 19 19
Slide 20: Marketplace Model
Marketplace Model WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 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 Includes penalty fees for Monthly managem
Slide 21: Disciplined Growth of Loan Facilitations
Disciplined Growth of Loan Facilitations WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx (US$ Million) 600 510 500 401 400 328 300 255 200 176 108 100 40 27 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 (1) Exchange rate: RMB 6.4778 : US$1 for Q4 2015, RMB 6.3556 : US$1 for Q1 2014 – Q3 2015 21 21
Slide 22: Q4 2015 Loan Facilitation Breakdown
Q4 2015 Loan Facilitation Breakdown WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx % Q4 2015 Loan Facilitation Volume Average Transaction Fee (1) A Excellent 5% 5.6% Credit B Very Good 3% 18.5% Credit C Good 7% 26.4% Credit D 85% 28.2% Fair Credit (1) The transaction fee rate is calculated as
Slide 23: Net Revenue Growth
Net Revenue Growth WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Annual Quarterly (US$ Million) (US$ Million) 80 250 71 209 70 200 59 60 49 50 150 40 30 100 30 19 20 50 32 10 8 2 3 3 0 0 2013 2014 2015 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 23 23
Slide 24: EBITDA Margin
EBITDA Margin WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Annual Quarterly (US$ Million) (US$ Million) (264.1) （13.5） 30.7 (176.9) (178.2) (22.7) 34.6 20.2 36.4 34.4 27.9 90 30 20 20 70 64 20 18 50 10 6 6 30 0 (2) (4) (5) 10 (10) (8) (10) (4) (20) 2013 2014 2015 1Q14 2Q14 3Q14 4Q14 1Q15 2Q
Slide 25: Net Income
Net Income WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Annual Quarterly (US$ Million) (US$ Million) (226.4) (14.1) 21.0 (178.3) (179.4) (23.4) 34.2 14.9 26.1 22.9 18.3 20 44 45 13 13 13 35 10 25 6 4 15 5 0 (2) (5) (4) (4) (5) (8) (15) -10 2013 2014 2015 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4
Slide 26: Proven Credit Performance
Proven Credit Performance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Rates (1) (2) Yirendai Cumulative M3+ Net Charge Off Curve 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q
Slide 27: Risk Reserve Fund
Risk Reserve Fund WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Primary objective of the risk reserve fund service is to help build Chinese investors’ confidence and trust in Yirendai’s products and to attract new investors, and retain existing investors, on the platform At the inception of
Slide 28: Business Outlook
Business Outlook WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Total loans facilitated in the range of US$450 million to US$460 million First Quarter 2016 Total net revenue in the range of US$60 million to US$65 million EBITDA (non-GAAP) in the range of US$15 million to US$16 million Total l
Slide 29: Appendix
www. yirendai.com Appendix
Slide 30: Income Statement
Income Statement WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unaudited Condensed Consolidated Statement of Operations (in US$ thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Full Year Ended December 31, December 31, December 31,
Slide 31: Balance Sheet and Cash Flow Data
Balance Sheet and Cash Flow Data WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unaudited Condensed Consolidated Balance Sheet and Cash Flow Data (in US$ thousands) For the Three Months Ended For the Full Year Ended December 31, December 31, December 31, December 31, 2014 2015 2014 2015 Unaud
Slide 32: Operating Highlights
Operating Highlights WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Operating Highlights (in US$ thousands, except for number of borrowers, number of investors and percentages) For the Full Year Ended For the Three Months Ended December December December March 31, June 30, September December
Slide 33: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Reconciliation of GAAP to Non-GAAP Measures (in US$ thousands) For the Full Year Ended For the Three Months Ended December December December March 31, June 30, September December 31, 2014 31, 2015 31, 2
Slide 34: Delinquency Rates
Delinquency Rates WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 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% Online Channels December 31, 2013 0.1% 0.9% 0.3% Dece
Slide 35: Net Charge-off Rates
Net Charge-off Rates WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-Off Rate Loan issued Amount of loans facilitated Accumulated M3+ Net Charge- Total Net Charge-Off Rate period Pricing grade during the period Off as of December 31, 2015 as of December 31, 2015 (in RMB thousands) (
Slide 36: A Leading Online Consumer Finance Marketplace in China
A Leading Online Consumer Finance Marketplace in China 36