Slide 1: Q4 and FY 2016 Earnings Conference Call
Q4 and FY 2016 Earnings Conference Call March 16, 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 20.28 A leading online consumer finance marketplace connecting borrowers and investors Targeting prime borrowers seeking un
Slide 5: A Leading Online Consumer Finance Marketplace
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx A Leading Online Consumer Finance Marketplace Individual Borrowers Investors Prime borrowers: credit card Monthly Payment Mass affluent investors holders with salary income Pilot project for Internet-savvy and more institutional investors recepti
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
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: Regulatory Requirements
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Regulatory Requirements Interim Measures for the Administration of the Business Activities of Online Lending Information Intermediary Institutions (August 2016) Regulatory Framework Guideline for the Recordation and Registration of Online Lending
Slide 9: Investment Highlights
www. yirendai.com Investment Highlights
Slide 10: 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 5 Synergistic Relationship with Credit
Slide 11: Huge Unsecured Consumer Finance Market
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Huge Unsecured Consumer Finance Market (1) Unsecured Consumer Finance Market in China (1) Immediately addressable (By outstanding loan balance, RMB Billion) market: prime borrowers with unmet unsecured credit needs 12,330 • RMB 4.4 trillion in
Slide 12: 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 13: 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 14: A Leading Online Consumer Finance Marketplace
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 A Leading Online Consumer Finance Marketplace RMB RMB 110,785 194,505 32.3 Billion 6.7 Billion Cumulative loan Loan facilitations Number of borrowers Number of investors facilitations (1) in Q4 2016 in Q4 2016 in Q4 2016 RMB RMB 597,765 321,019
Slide 15: Extensive Data Set and Credit Decisioning Capabilities
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Extensive Data Set and Credit Decisioning Capabilities Proprietary Yirendai Score Mobile Carrier Data PBOC A Proprietary Credit Report Decisioning Platform Bank • Developed in Risk Grade Pricing Statements conjunction with B Credit Card FICO St
Slide 16: 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) 19.5 (million) 20.0 6.0 5.0 16.0 5.0 12.0 4.0 3.0 8.0 2.0 4.0 1.0 - - 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q15 2Q15
Slide 17: Synergistic Relationship with CreditEase
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Synergistic Relationship with CreditEase Current model suitable for nascent Chinese unsecured consumer finance market Receive borrower referrals Leverage CreditEase’s loan Utilize CreditEase’s from CreditEase’s sales data to help advance collec
Slide 18: Financial Highlights
www. yirendai.com Financial Highlights
Slide 19: 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 19 19
Slide 20: 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 21: Disciplined Growth of Loan Facilitations
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 Disciplined Growth of Loan Facilitations (RMB Million) 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 21 21
Slide 22: Q4 2016 Loan Facilitation Breakdown
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Q4 2016 Loan Facilitation Breakdown % Q4 2016 Loan Facilitation Volume Average Transaction Fee Rate (1) A Excellent 4.3% 5.6% Credit B Very Good 3.2% 17.3% Credit C Good 4.7% 24.8% Credit D Fair 87.8% 27.6% Credit (1) The transaction fee rate i
Slide 23: Net Revenue Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Revenue Growth Annual Quarterly (RMB Million) (RMB Million) 1,200.0 3,500.0 3,238.0 1,071.1 3,000.0 1,000.0 876.7 2,500.0 800.0 733.8 2,000.0 600.0 556.4 1,500.0 1,313.6 451.6 400.0 370.7 1,000.0 306.2 185.2 500.0 200.0 196.5 0.0 0.0 2014 2
Slide 24: 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 37.2 1,100.0 1,093.4 401.1 400.0 900.0 300.0 700.0 265.0 220.7 206.6 500.0 200.0 402.7 300.0 127.2 126.5 111.6 100.0 100.0 37.4 (26
Slide 25: 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 1,150.0 1,116.4 400.0 379.8 950.0 344.3 750.0 300.0 260.6 550.0 200.0 350.0 275.3 131.7 150.0 100.0 80.0 84.4 83.3 27.6 (50.0) (27.
Slide 26: 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) 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 25 26 27 28 29 30 31 3
Slide 27: 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 (Risk Reserve Model) (3) 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) 2015Q1 2015
Slide 28: Adjusted Calculation of M3+ Net Charge Off Rates
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Adjusted Calculation of M3+ Net Charge Off Rates Total amount of recovered Total balance of Remainder of past due payments of outstanding the expected principal and accrued interest principal of loans interest for in the same period with that b
Slide 29: Business Outlook
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Business Outlook Total loans facilitated in the range of RMB 6.4 billion to RMB 6.5 billion Total net revenue in the range of RMB 900 million to RMB 930 million First Quarter 2017 (1) Adjusted EBITDA (non-GAAP) in the range of RMB 280 million t
Slide 30: Appendix
www. yirendai.com Appendix
Slide 31: Income Statement
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Income Statement 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 Year Ended December September December December December D
Slide 32: Income Statement
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Income Statement 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 Year Ended December September December December December D
Slide 33: 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 For the Year Ended December September December December December December Dece
Slide 34: 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 For the Year Ended December September December December December December December 31, 2015 3
Slide 35: 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 For the Year Ended December September December December December December December 31, 2015 3
Slide 36: Reconciliation of GAAP to Non-GAAP Measures
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Reconciliation of GAAP to Non-GAAP Measures 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 Year Ended December September December
Slide 37: 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% Online Channels Dece
Slide 38: Net Charge-off Rates
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates 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, 2016 as of December 31, 2016 (in RMB thousands) (
Slide 39: M3+ Net Charge-off Rates
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx M3+ Net Charge-off Rates 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 0.
Slide 40: A Leading Online Consumer Finance Marketplace in China
A Leading Online Consumer Finance Marketplace in China 40