Slide 1: Q2 2016 Earnings Conference Call
Q2 2016 Earnings Conference Call August 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 2006, and created our online-dedicated business, Yirendai, in 2012 9.56 A leading online consumer finance marketplace connecting borrowers and investors Targeting prime
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: Huge Unsecured Consumer Finance Market
1 Huge Unsecured Consumer Finance Market (1) WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unsecured Consumer Finance Market in China (1) Immediately addressable market: (By outstanding loan balance, RMB Billion) prime borrowers with unmet 11,365 unsecured credit needs Deepening loan databas
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 % of Consumption) 89.5% 54.6 86.6% 51.2% 47.2% 7.6 201
Slide 12: A Leading Online Consumer Finance Marketplace
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 A Leading Online Consumer Finance Marketplace RMB RMB 306,723 649,103 20 Billion 13.8 Billion Total Loan Facilitations (1) Remaining Principal of Total Borrowers (1) Total investors (1) Performing Loans (2) (1) From inception in March 2012 thro
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
4 Our Borrowers WARDED2014\7. Analyst 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 t
Slide 15: Our Investors
4 Our Investors WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 100% invest directly through Mass affluent investors online platform in Q2 2016 Majority invest via automated investing tool which allocates Investor protection service funds across a diversified pool of via Risk Reserve Fund loan
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: Financial Highlights
www. yirendai.com Financial Highlights
Slide 18: 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 6 Business Outlook 18 18
Slide 19: Marketplace Model
1 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 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) 5,000.0 4,539 4,000.0 3,447 3,302 3,000.0 2,551 2,084 2,000.0 1,621 1,121 1,000.0 686 252 170 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 20 20
Slide 21: Q2 2016 Loan Facilitation Breakdown
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Q2 2016 Loan Facilitation Breakdown % Q2 2016 Loan Facilitation Volume Average Transaction Fee (1) A Excellent 5.5% 5.6% Credit B Very Good 3.8% 17.3% Credit C Good 7.6% 24.8% Credit D Fair 83.1% 27.6% Credit (1) The transaction fee rate is cal
Slide 22: Net Revenue Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Revenue Growth Annual Quarterly (RMB Million) (RMB Million) 1,400.0 800.0 1,313.6 733.8 1,200.0 700.0 600.0 556.4 1,000.0 500.0 800.0 451.6 400.0 370.7 600.0 306.2 300.0 400.0 200.0 185.2 196.5 115.6 200.0 100.0 49.8 12.7 18.5 0.0 0.0 2014
Slide 23: EBITDA Margin
4 EBITDA Margin WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Annual Quarterly (RMB Million) (RMB Million) （13.5） 30.7 (176.9) (178.3) (22.7) 34.7 20.2 36.4 34.3 28.0 37.1 36.1 420.0 402.7 280.0 265.0 360.0 240.0 206.6 300.0 200.0 240.0 160.0 127.2 126.5 180.0 120.0 111.6 120.0 80.0 40.1 37.
Slide 24: Net Income
4 Net Income WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Annual Quarterly (RMB Million) (RMB Million) (14.1) 21.0 (178.4) (179.5) (23.4) 34.4 14.9 26.1 22.8 18.4 23.7 35.5 300.0 275.3 260.6 250.0 250.0 200.0 200.0 150.0 150.0 131.7 100.0 84.4 83.3 100.0 80.0 50.0 39.7 50.0 27.6 0.0 (50.0)
Slide 25: Proven Credit Performance
5 Proven Credit Performance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Yirendai YirendaiCumulative CumulativeM3+ M3+Net NetCharge ChargeOff Curve(1)(1)(2)(2)(3) OffRates 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 (Months) 2013Q1 201
Slide 26: Business Outlook
6 Business Outlook WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Total loans facilitated in the range of RMB 5.2 billion to RMB 5.4 billion Third Quarter 2016 (1) Total net revenue in the range of RMB 800 million to RMB 850 million EBITDA (non-GAAP) in the range of RMB 140 million to RMB 160
Slide 27: Appendix
www. yirendai.com Appendix
Slide 28: Income Statement
Income Statement WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unaudited Condensed Consolidated Statement of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June
Slide 29: Cash Flow Data
Cash Flow Data WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unaudited Condensed Consolidated Cash Flow Data (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30
Slide 30: Balance Sheet
Balance Sheet WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unaudited Consolidated Balance Sheet (in thousands, except for share, per share and per ADS data, and percentages) As of June 30, 2015 March 31, 2016 June 30, 2016 June 30, 2016 RMB RMB RMB USD Cash and cash equivalents 110,206 1,10
Slide 31: Operating Highlights
Operating Highlights WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Operating Highlights (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30, June 30, 2015
Slide 32: 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 thousands) For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30, June 30, 2015 2016 2016 2016 2015 20
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% March 31, 2016 0.5% 0.8% 0.5% June 30, 2016 0.5% 0.7%
Slide 34: Net Charge-off Rates
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates Net Charge-Off Rate Loan Amount of loans Accumulated M3+ Net issued Pricing facilitated during the Charge-Off as of June 30, Total Net Charge-Off Rate period grade period 2016 as of June 30, 2016 (in RMB thousands) (in RMB th
Slide 35: A Leading Online Consumer Finance Marketplace in China
A Leading Online Consumer Finance Marketplace in China 35