Slide 1: Q2 2017 Earnings Conference Call
Q2 2017 Earnings Conference Call August 1, 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, by connecting them directly through our online marketplace 3
Slide 4: Yirendai At a Glance
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Yirendai At a Glance Our founders started CreditEase in 2006, and created our online-dedicated business, Yirendai, in 2012 35-37 A leading online consumer finance marketplace connecting borrowers and investors Targeting prime borrowers seeking un
Slide 5: A Leading Fintech Company in China
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx A Leading Fintech Company in China Consumer Credit Wealth Management Prime borrowers: credit card Monthly Payment Mass affluent investors with holders with salary income AUM on average between RMB 600k to RMB 6 million Internet-savvy and more rec
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 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 99
Slide 10: Huge Unsecured Consumer Credit Demand
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Huge Unsecured Consumer Credit Demand(1) Unsecured Consumer Finance Market in China (1) Immediately addressable market: (By outstanding loan balance, RMB Billion) prime borrowers with unmet unsecured credit needs 12,330 • RMB 4.4 trillion in 20
Slide 11: Multiple Drivers of Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Multiple Drivers of Growth Rising GDP (2015 GDP per Capita, US$‘000) + More Consumption (2015 Consumption as % of GDP) + More Financing of Consumption (2015 Consumption Loan Balance(1) as a % of Consumption) 55.8 78.4% 86.1% 54.4% 51.6% 7.9 Chi
Slide 12: Huge Wealth Management Market
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Huge Wealth Management Market Wealth Management Market in China Wealth Management Market in China (By amount of investable assets, RMB trillion) (By population with investable assets of above RMB 600,000, million) 28 223 17 127 2015 2020E 2015
Slide 13: A Leading Fintech Company in China
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 A Leading Fintech Company in China RMB RMB 47.4 Billion 27.9 Billion 743,777 1,058,211 Cumulative loan Remaining principal of Cumulative Cumulative facilitations (1) performing loans(2) Number of borrowers(1) number of investors(1) RMB RMB 8.2
Slide 14: Extensive Data Set and Credit Decisioning Capabilities
Extensive Data Set and Credit Decisioning WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 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 15: Expanding Borrower Universe and Investor Base
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Expanding Borrower Universe and Investor Base Cumulatively Registered Borrowers Cumulatively Registered Investors (million) 33.5 28 (million) 6 5.6 24 5 20 4 16 12 3 8 2 4 1 0 0 1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q17 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 16: Financial Highlights
www. yirendai.com Financial Highlights
Slide 17: 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 17 17
Slide 18: 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 19: Disciplined Growth of Loan Facilitations
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 Disciplined Growth of Loan Facilitations (RMB Million) 8,190 8,000 6,923 7,000 6,675 6,000 5,617 5,000 4,539 4,000 3,447 3,302 3,000 2,551 2,084 2,000 1,621 1,121 1,000 686 170 252 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1
Slide 20: 1H 2017 Loan Facilitation Breakdown
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 1H 2017 Loan Facilitation Breakdown Pricing 1H 2017 Volume Risk 1H 2017 Volume % % Grade (RMB billion) Grade (RMB billion) Ⅰ 0.7 5% A 0.4 3% Ⅱ 2.7 18% B 1.0 7% Ⅲ 3.3 22% C 1.5 10% Ⅳ 3.4 22% D 12.1 80% Ⅴ 5.1 34% Total 15.1 100% Total 15.1 100% 2
Slide 21: Net Revenue Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Revenue Growth Annual Quarterly (RMB Million) (RMB Million) 11.4 14.7 14.5 13.7 16.1 16.2 15.6 16.0 14.8 14.5 3,500.0 8.8 13.7 16.0 1,183 1,200.0 3,238 1,071 1,022 3,000.0 1,000.0 877 2,500.0 800.0 734 2,000.0 600.0 556 1,500.0 452 1,314 40
Slide 22: 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 1,093 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 37 (27)
Slide 23: 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 1,150.0 1,116 400.0 380 950.0 351 344 269 750.0 300.0 261 550.0 200.0 350.0 275 132 150.0 100.0 80 84 83 28 (50.0) (28) 2
Slide 24: 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 Before 2015 (Guarantee Model) (3) 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 25 26 27 28 29 30 31 32 33 3
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% 0.0% 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2
Slide 26: Business Outlook
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Business Outlook Total loans facilitated in the range of RMB 10 billion to RMB 10.5 billion Total net revenue in the range of RMB 1.3 billion to RMB 1.35 billion Third Quarter 2017 (1) Adjusted EBITDA (non-GAAP) in the range of RMB 280 million
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 June 30, September December March 31, June 30, June 30, 2016
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 June 30, September December March 31, June 30, June 30, 2016
Slide 30: 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 June 30, September December March 31, June 30, June 30, 2016 30, 2016 31, 2016
Slide 31: Balance Sheet
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Balance Sheet Unaudited Condensed Balance Sheet (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended June 30, September December 31, March 31, June 30, June 30, 2016 30, 2016 2016 2017 2017 2017
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 June 30, September December 31, March 31, June 30, June 30, 2016 30, 2016 2016 2017 2017 2017
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 Loan Amount of loans issued Loan facilitated during the Cumulative M3+ Net Charge- Total Net Charge-Off Rate period grade period Off as of June 30, 2017 as of June 30, 2017 (in RMB
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 June 30, Total Net Charge-Off Rate period grade period 2017 as of June 30, 2017 (in RMB tho
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 period Month on Book 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