Company Presentation Q3 FY2018 (NASDAQ: HX) Disclaimer This - PowerPoint PPT Presentation

Company Presentation Q3 FY2018 (NASDAQ: HX)

Disclaimer This presentation of Hexindai Inc. (the “Company”) contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the Company’s goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace’s products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this presentation is current as of the date of this presentation, and the Company does not undertake any obligation to update such information, except as required under applicable law. 2

Why Hexindai  Matching individual borrowers with individual lenders without loan default risk to Hexindai  Fully compliant with government regulations Expand market share nationwide in terms of users and  products leveraging strong O2O capabilities and technological innovation  Highly experienced management team, strong BOD 3

Who We Are Number of Loans Facilitated (2) Established in March 2014, with headquarters in Beijing 32,511 29,628 Ranked 5 th in the unsecured medium-sized consumer loans market in China Founding Member of Beijing Internet Finance Industry Association 13,249 O2O model targeting borrowers seeking RMB20K~140K to finance consumption needs 8,609 3,442 Internet-based investor acquisition with decreasing acquisition cost and high investor satisfaction with 56% FY2015 FY2016 FY2017 FY2017Q3 FY2018Q3 investors’ repeat rate (1) . Prudent risk management system leveraging 3+ years of Loan Volume Facilitated (3) proprietary data accumulated from our sister company’s (US$ million) extensive network of 192 branches in China as of December 31, 2017. 493 470 389 Robust technology platform with sound risk management and 338 fraud detection 131 389 337 Experienced and visionary management with deep 6 101 100 understanding of market needs, strong finance and technology FY2015 FY2016 FY2017 FY2017Q3 FY2018Q3 background Credit Loan Secured Loan Note: (3) Loan volume is defined as the total principal amount of loans facilitated on the marketplace during the relevant period; (1) Repeat investors refer to investors who made more than one investment from inception to December 31, 2017. Growth rates are calculated by RMB and exclude the impact from exchange rate in different reporting periods to reflect a 4 (2) Number of loans facilitated is defined as the total number of loans facilitated on our marketplace during the relevant real growth rate. period (4) Fiscal year end is March 31.

Industry Overview Personal Loans Type Proven business model  focusing on medium-sized Medium-sized Installment Loan installment loan funded by (consumption for high-end individual investors services and goods) Fully compliant with online  Consumer Finance Companies lending industry guidelines Loan size: 20K -140K RMB governing P2P companies We are here Duration: 12-36 months Further expand market share  rapidly growing medium- sized loan segment used for consumption upgrades Payday Loan (Day to day) Payday loan Business Players P2P Players focusing on Loan size: < 3K RMB Payday Loan Business Duration: < 30 days Micro-lending P2P • Source of funds: lenders on the platform • Source of funds: equity/financial • Lending Model: information intermediary only Institutions • • Regulation: to complete the rectification and Lending model: company direct lending • preliminary filing by the end of June 2018 Regulation: On-going • Lenders bear the default risk • Company bears the default risk • No license required. • Must own the micro-lending License. Business Model Source: Oliver Wyman 5

Our Proven Business Model We are a pure information and service platform matching investors with individual borrowers. Loans are not held on our balance sheet and we bear no default risk Insurer Premium Compensation Loan Post- facilitation Origination Fee Fee Application Referral Decision- Verification Assessment Approval Borrowers Investors Making Loans Principal + Interest Custodian Bank Service Process Cash Flow Source: Company Information 6

Economics Illustration Economics Illustration (1) (Per US$100 loan facilitated, for example) 100 6.0 12.8 2.4 21.2 78.8 Loan volume facilitated Channel fee to referral Premium to the insurer Loan facilitation service fee Net proceeds to Borrowers partners to HXD (including VAT) PV of the PV of investment Upfront fee Borrowing PV Rate PMT Investor Loan volume facilitated=US$100=PV(11%/12,36,-3.27) Yield rate=11% Equal monthly payment=US$3.27 All inclusive APR (2) =28% =PMT(11%/12, 36, -100) Borrower Net proceeds=US$78.8=PV(28%/12,36,-3.27) =RATE(36,3.27,-78.8)*12 Note: (1) The above chart only represents credit loan economics. 7 ‘All inclusive APR’’ refers to the rate that is charged to borrowers, including a nominal interest rate, a loan facilitation or management service fee, channel fee and premium, expressed as a single percentage number that represents the actual (2) annualized cost of borrowing over the term of a loan.

Economics Illustration (Cont’d) Economics Illustration (1) (Per US$100 loan facilitated, for example) 21.2 6.0 2.4 0.7 0.1 1.2 12.1 10.8 2.9 1.2 6.7 Total fee borne Channel fee to Premium to VAT Loan facilitation Business tax Cash incentives Net Revenue Operating Provision for Net Income by borrowers referral the insurer service fee to HXD expenses income tax partners (Gross revenue net of VAT) Loan facilitation fee to HXD Note: (1) The above chart only represents credit loan economics. (2) The channel referral fee to referral partners represents the consultancy services fee borrowers directly pay to referral partners. It is not recognized as part of our revenue. Note: Fiscal year end is March 31. 8

Rapidly Rising Market Demand Ensures Future Growth for Sector Increasing Need for Investing Number of Potential P2P Investors Total Personal Investable Asset (Thousand) (RMB TN) 135,697 (4) • Rising middle class 226 and increased investable asset indicates strong appetite for consumer lending investment with 103 HNW (5) attractive returns on 134 well-defined risks. 8x 56 Mass Affluent (6) 37 41,810 (2) 23 Mass (7) 61 47 17,130 (3) 165 (1) The Rest (8) No. of active investors HX P2P Industry A Share 2016 2020F Source: P2PEYE.COM, WDZJ, CSDS, Oliver Wyman analysis. (5) High-net-worth-individuals: Individuals with more than RMB6 MM accumulated disposable assets. Affluent/Mass Affluent: The “Affluent/Mass affluent” segment is defined as individuals who hold RMB600,000 to 6 MM accumulate d disposable assets. Note: (6) (1) Calculated on a cumulative basis from inception of our business in March 2014 to December 31, 2017. (7) Mass: Individuals with RMB60,000 to 600,000 of accumulated disposable assets. The mass segment can be further segmented into upper mass (with accumulated disposable assets 9 (2) Number of investors in P2P industry for the year 2017 provided by P2PEYE.COM. above RMB 100,000) and lower mass (with accumulated disposable assets of RMB 60,000to 100,000). (3) Number of investors in P2P industry for the year 2017 provided by WDZJ. (8) The Rest: Individuals with less than RMB60,000 accumulated disposable assets. (4) Refers to the number of non-cancelled and non-dormant unified accounts consisting of A share and B share accounts, credit accounts and derivative contract accounts as of March 2, 2018.