Slide 1: Q4 & Full Year 2017 Investor Presentation
Q4 & Full Year 2017 Investor Presentation
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: 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 Targeting prime consumers Online wealth management for investors Full end-to-end online
Slide 4: 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 Asian 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 7
Slide 5: 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 Innovative Online Offline Branch Office
Slide 6: Leading Fintech Company
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Leading Fintech Company Consumer Credit Wealth Management Prime Borrowers Mass Affluent Investors Yirendai Yiren Wealth Personalized Wealth Diversified Loan Management Products Services Standard Fast Track Insurance Housing Loans Loans Policy Loa
Slide 7: Investment Highlights
www.yirendai.com Investment Highlights
Slide 8: Key Investment Highlights
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Key Investment Highlights 1 Largely Untapped Consumer Credit & Wealth Management Market 2 Leading FinTech Company in China 3 Strong Online Credit Business Growth with Leading Market Share 4 Superior Asset Performance with Leading Online Risk Unde
Slide 9: 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 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: A Leading Fintech Company in China
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 A Leading Fintech Company in China RMB 1.3 M 1.1 M 73.9 Billion Cumulative Cumulative Cumulative loan number of investors(1) number of borrowers(1) facilitations (1) RMB 233,374 202,370 40.6 Billion Number of investors in Q4 2017 Number of borr
Slide 12: 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) (million) 64 54.4 7 6.5 56 6 48 5 40 4 32 24 3 16 2 8 1 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
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) 473.0 22.5 22.5 184.4 7.8 7.8 18.9 12.7 2016 2017 2016 2017 2016 2017 Online loan volume Offline loan vol
Slide 14: 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 15: 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) (%) 9.5 50 144.3 150 9.2 9.0 8.9 42.0 8.7 40 119.2 120 8.5 8.2 103.2 7.9 7.9 8.0 8.0 7.9 32.4 89.3 30 83.8 90 27.0 7.5 76.8 62.0 23.2 7.0 1
Slide 16: Superior Technology Enabling Platform
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Superior Technology Enabling Platform Yirendai Enabling Platform (YEP) Launched in March 2017 Technology Customer 40 industry Risk Enabling Management Acquisition partners connected as of December 31, 2017 RMB 95 million of revenue in FY 2017 1
Slide 17: Financial Highlights
www.yirendai.com Financial Highlights
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) 14,000 13,439 13,000 12,185 12,000 11,000 10,000 8,536 9,000 7,246 8,000 6,883 7,000 5,617 6,000 4,539 5,000 4,000 3,302 3,447 2,551 3,000 2,084 1,621 2,000 1,121 686 1,000 252 170 0 1Q14 2
Slide 20: 2017 Loan Facilitation Breakdown
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 2017 Loan Facilitation Breakdown Pricing 2017 Volume Risk 2017 Volume % % Grade (RMB billion) Grade (RMB billion) Ⅰ 2.7 6% A 1.0 2% Ⅱ 9.1 22% B 3.3 8% Ⅲ 10.5 26% C 5.0 12% Ⅳ 10.3 25% D 32.1 78% Ⅴ 8.8 21% Total 41.4 100% Total 41.4 100% 20 20
Slide 21: 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 13.6 6,000 13.7 15.8 13.4 1,825 5,543 1,800 1,600 1,514 5,000 1,400 4,000 1,200 1,183 1,071 3,238 1,022 1,000 3,000 877 800 734 2,000 600 5
Slide 22: Adjusted EBITDA
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Adjusted EBITDA Annual Quarterly (RMB Million) (RMB Million) 30.7 33.8 31.5 20.2 36.4 34.3 28.0 37.1 36.1 25.2 37.5 39.2 32.0 27.9 29.7 1,800.0 1,744 600.0 543 1,600.0 500.0 1,400.0 422 401 400 1,200.0 400.0 378 1,093 1,000.0 300.0 265 800.0 22
Slide 23: Net Income
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Income Annual Quarterly (RMB Million) (RMB Million) 21.0 34.5 24.7 14.9 26.1 22.8 18.4 23.7 35.5 39.3 35.5 34.3 22.7 20.0 24.6 1,400.0 1,372 449 1,200.0 400.0 380 1,116 351 344 1,000.0 303 300.0 269 800.0 261 600.0 200.0 400.0 132 275 200.0
Slide 24: Attractive Economics
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Attractive Economics 2017Q4 Economics (1) (Per US$ 100 loan originated) 8.0 0.5 21.9 7.4 13.5 1.1 1.2 0.5 3.3 Fees earned QAP Liablity (2) Others (3) Net Revenue Sales and Origination and General and Tax and Net Income marketing servicing admin
Slide 25: Proven Credit Performance
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Proven Credit Performance Cumulative M3+ Net Charge Off Rates (1) (2) Loans Facilitated Since 2015 (Quality Assurance Program Model) (3) 12.0% Cumulative M3+ Net Charge Off Rates – All Loans 10.0% 8.0% 6.0% 4.0% 2.0% (Month on Book) 0.0% 4 7 10
Slide 26: Business Outlook
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 7 Business Outlook Total loans facilitated in the range of RMB 11.0 billion to RMB 11.2 billion Total net revenue in the range of RMB 1.53 billion to RMB 1.57 billion Q1 2018 (1) Adjusted EBITDA (non-GAAP) in the range of RMB 0.43 billion to RMB
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 For the Full Year Ended December September December December
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 For the Full Year Ended December September December December
Slide 30: Balance Sheet
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Balance Sheet Unaudited Consolidated Balance Sheet (in thousands, except for share, per share and per ADS data, and percentages) As of December 31, September 30, December 31, December 31, 2016 2017 2017 2017 RMB RMB RMB USD Cash and cash equivale
Slide 31: Cash Flow Data
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Cash Flow Data Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Full Year Ended December 31, September December December Dec
Slide 32: Operating Highlights
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Operating Highlights Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended For the Full Year Ended December December Dec
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% December 31, 2017 0.
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 Loan issued Amount of loans facilitated Accumulated M3+ Net Charge-Off Total Net Charge-Off Rate period Loan grade during the period as of December 31, 2017 a
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 for Upgraded Risk Grid Loan issued Customer Amount of loans facilitated Accumulated M3+ Net Charge-Off Total Net Charge-Off Rate period grade during the period as of December 31, 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