Q2 2017 Earnings Conference Call August 1, 2017
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 o f Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward- looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to e vents that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yirendai’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yirendai’s ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yirendai’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yirendai’s filings with the U.S. Securities and Exchange Commission. All information provided in this material is as of the date of this material, and Yirendai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. 2 2
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
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 unsecured credit Proprietary risk model leveraging 11 years of data 20.3 from CreditEase Capital efficient model with no regulatory capital adequacy requirements 9.6 Full end-to-end automation (1) from online application through funding and servicing 2.2 Relationship with CreditEase provides borrower 0.2 referrals, data sharing, and collection support 2013 2014 2015 2016 2017E Profitable since Q4 2014 Loan Volume Growth (RMB billion) (1) The process is fully automated end to end with additional support for specific needs, such as referrals, verification of certain information, and collections. 4 4
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx A Leading Fintech Company in China Wealth Consumer Credit Management Monthly Payment Prime borrowers: credit card Mass affluent investors with holders with salary income AUM on average between RMB 600k to RMB 6 million Internet-savvy and more receptive to internet finance Pilot project for solutions institutional investors (ABS) Mainly invest via automated Primary purpose: “life Loan Disbursement events” e.g., home investing tool which allocates funds across a remodeling, car purchasing, diversified pool of loans wedding, education End to End Automated Online Business Process Proprietary Approval and Servicing and Application Verification Risk Funding Listing Collections Assessment 5 5
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 Online Marketplace Model Long Application Time Business Model Legacy Systems End-to-end Automation (1) Back-end Processing Mobile Leadership Technology 6 6 (1) The process is fully automated end to end with additional support for specific needs, such as referrals, verification of certain information, and collections.
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 7 7
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 9 9
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Huge Unsecured Consumer Credit Demand (1) 1 Unsecured Consumer Finance Market in China (1) Immediately addressable market : prime borrowers with unmet unsecured (By outstanding loan balance, RMB Billion) credit needs 12,330 • RMB 4.4 trillion in 2015 • RMB 12.3 trillion expected in 2019 Future target market may extend to broader unmet unsecured credit needs 4,353 • New products (ie. line of credit product) • New industry verticals 2015 2019E Source: iResearch 10 10 (1) Outstanding balance of unsecured consumption loans in China, such as credit cards and other unsecured loans from banks and other consumer financing companies.
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Multiple Drivers of Growth 1 + + More Financing of Rising GDP More Consumption Consumption (2015 Consumption Loan Balance (1) as a % (2015 GDP per Capita, US$‘000 ) (2015 Consumption as % of GDP) of Consumption) 55.8 78.4% 86.1% 54.4% 51.6% 7.9 China U.S. 2015 Source: World Bank Source: CIA World FactBook Source: National Bureau of Statistics of China, CIA World FactBook, iResearch and Federal Reserve Bank of New York (1) Consists of secured consumption loans such as car loans and home mortgages, and unsecured consumption loans such as credit cards and other unsecured loans from 11 11 banks and consumer financing companies
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Huge Wealth Management Market 1 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 2020E 12 12 Source: The Boston Consulting Group, Forbes and Bain & Company.
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx A Leading Fintech Company in China 2 RMB RMB 743,777 1,058,211 27.9 Billion 47.4 Billion Cumulative loan Cumulative Cumulative Remaining principal of facilitations (1) number of investors (1) Number of borrowers (1) performing loans (2) RMB RMB 199,591 8.2 Billion 2.0 Billion 138,529 Loan facilitations Liabilities from quality Number of investors Number of borrowers in Q2 2017 assurance program (2) in Q2 2017 in Q2 2017 (1) From inception in March 2012 through June 30, 2017 (2) As of June 30, 2017 13 13
Extensive Data Set and Credit Decisioning WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Capabilities Proprietary Extensive Data Set Risk Grid Decisioning Platform I Big Data Aggregation & Analysis 400+ Bank Location Decisioning Rules Statements Developed II FICO 1,000,000+ PBOC Credit Chinese Credit Card Market Report Fraud Detection Points Online Banking Statements Adaption III 11 Years Loan Data Cloud Data Ownership Computing (CreditEase) Retention Housing Mobile Carrier Provident Fund Data IV Machine Learning Yiren Score Artificial E-commerce Insurance Intelligence Records Policy V 14 14
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Expanding Borrower Universe and Investor Base 4 Cumulatively Registered Borrowers Cumulatively Registered Investors 33.5 (million) (million) 28 5.6 6 24 5 20 4 16 3 12 2 8 1 4 0 0 1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q17 1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q17 Cumulatively Served Borrowers Cumulatively Served Investors 743.8 1,058.2 750 (thousand) (thousand) 650 1000 550 800 450 600 350 400 250 200 150 50 0 1Q152Q153Q154Q151Q162Q163Q164Q161Q172Q17 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 15 15
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
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