Slide 1: Q1 2016 Earnings Conference Call
Q1 2016 Earnings Conference Call May 12, 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, 1,494 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$551 Billion Unsecured Consumer Finance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Market (1) Unsecured Consumer Finance Market in China (1) (2) Immediately addressable market: (By outstanding loan balance, US$ Billion) prime borrowers with unmet unsecured credit needs 1,794 Deepening
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
2 A Leading Online Consumer Finance Marketplace WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx US$2.4 253,673 32.8% 10 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
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 Q1 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 Includes penalty fees for Monthly manag
Slide 20: Disciplined Growth of Loan Facilitations
2 Disciplined Growth of Loan Facilitations (1) WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx (US$ Million) 600.0 534.5 509.7 500.0 401.4 400.0 327.9 300.0 255.0 200.0 176.4 107.9 100.0 39.6 26.7 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 (1) Exchange rate: RMB 6.448 : US$1 for Q1 2016,
Slide 21: Q1 2016 Loan Facilitation Breakdown
3 Q1 2016 Loan Facilitation Breakdown WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx % Q1 2016 Loan Facilitation Volume Average Transaction Fee (1) A Excellent 6% 5.6% Credit B Very Good 3% 18.5% Credit C Good 7% 26.4% Credit D Fair 84% 28.2% Credit (1) The transaction fee rate is calculated
Slide 22: Net Revenue Growth
4 Net Revenue Growth WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Annual Quarterly (US$ Million) (US$ Million) 90.0 85.1 250.0 80.0 209.1 71.1 200.0 70.0 59.0 60.0 150.0 49.3 50.0 40.0 100.0 29.7 30.0 18.8 20.0 50.0 31.9 10.0 8.1 2.1 3.0 3.1 0.0 0.0 2013 2014 2015 1Q14 2Q14 3Q14 4Q14 1Q15 2
Slide 23: EBITDA Margin
4 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 37.1 40.0 31.6 70.0 64.1 30.0 20.3 19.8 18.0 50.0 20.0 10.0 6.5 6.0 30.0 0.0 (1.8) 10.0 (3.7) (5.3) (10.0) (4.3) (10.
Slide 24: Net Income
4 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 23.7 25.0 45.0 43.8 20.1 20.0 35.0 13.5 15.0 12.9 13.0 25.0 10.0 6.4 15.0 4.4 5.0 5.0 0.0 (1.9) (5.0) (5.0) (3.7) (4.0)
Slide 25: Proven Credit Performance
5 Proven Credit Performance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Yirendai Cumulative M3+ Net Charge Off Rates (1) (2) 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 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4
Slide 26: Business Outlook
6 Business Outlook WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Total loans facilitated in the range of US$640 million to US$650 million Second Quarter Total net revenue in the range of US$95 million to US$100 million 2016 EBITDA (non-GAAP) in the range of US$20 million to US$25 million Tot
Slide 27: Appendix
www. yirendai.com Appendix
Slide 28: Income Statement
Income Statement WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Unaudited Condensed Consolidated Statement of Operations (in US$ thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended March 31, June 30, September 31, December 31, March 31, 2015 20
Slide 29: 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, except for share, per share and per ADS data, and percentages) For the Three Months Ended March 31, June 30, September 31, Decem
Slide 30: 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 Three Months Ended March 31, June 30, September 30, December 31, March 31, 2015 2015 2015 2015 2016 Operatin
Slide 31: 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, except for number of borrowers, number of investors and percentages) For the Three Months Ended March 31, June 30, September 30, December 3
Slide 32: 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% March 31, 2016 0.5% 0.8% 0.5% Online Channels Decembe
Slide 33: Net Charge-off Rates
Net Charge-off Rates WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-Off Rate Loan issued Pricing Amount of loans facilitated Accumulated M3+ Net Charge- Total Net Charge-Off Rate period grade during the period Off as of March 31, 2016 as of March 31, 2016 (in RMB thousands) (in RMB
Slide 34: A Leading Online Consumer Finance Marketplace in China
A Leading Online Consumer Finance Marketplace in China 34