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2016 Interim Results
August 2016
Cautionary Note Regarding Forward-looking Statements
To the extent any statements made in this presentation containing information that is not historical are essentially
forward-looking. These forward-looking statements include but not limited to projections, targets, estimates and
business plans that the Company expects or anticipates will or may occur in the future. These forward-looking
statements are subject to known and unknown risks and uncertainties that may be general or specific. Certain
statements, such as those include the words or phrases "potential", "estimates", "expects", "anticipates",
"objective", "intends", "plans", "believes", "will", "may", "should", and similar expressions or variations on such
expressions may be considered forward-looking statements.
Readers should be cautioned that a variety of factors, many of which may be beyond the Company's control, affect the
performance, operations and results of the Company, and could cause actual results to differ materially from the
expectations expressed in any of the Company's forward-looking statements. These factors include, but are not
limited to, exchange rate fluctuations, market shares, competition, environmental risks, changes in legal, financial and
regulatory frameworks, international economic and financial market conditions and other risks and factors beyond our
control. These and other factors should be considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. In addition, the Company undertakes no obligation to publicly update or
revise any forward-looking statement that is contained in this presentation as a result of new information, future
events or otherwise. Neither the Company nor any of its employees or affiliates is responsible for, or is making, any
representations concerning the future performance of the Company.
2
Overview
Financial Results
Business Review
Agenda
Chairman and CEO Peter Ma
Overview
Overview Financial Results Business Review
4
New Strategies for Ping An's Era 3.0
A World-leading
Personal Financial
Services Provider
Big Financial Assets Big Health Care
Insurance Banking
Financial
Service
Eco-
circle
Finance + Internet Internet + Finance & Non-
finance
Asset
Management
Estate
Finance
Eco-
circle
Medical
Health
Eco-
circle
Car
Services
Eco-
circle
1 Goal
2 Focuses
2 Models
N Pillars
Group CFO Jason Yao
Financial Results
Overview Financial Results Business Review
6
1H2016 Robust Financial Results
Ping An had 298 million internet users and 119 million
individual customers, 35.9% of new customers acquired
were from internet user conversion, reflecting significant
synergy in customer migration.
Profit Although the interest rate and asset yield decreased due
to economy slowdown in the first half of 2016, the
Company still managed to achieve 17.7% profit growth.
Value Both value of new business and embedded value grew
strongly, increased by 42.7% and 11.2%, respectively.
Sales
Agents
The number of life insurance agents exceeded 1 million
along with improved productivity.
Users and
Customers
7
34,649
40,776
EPS 1.90
EPS 2.28
1H2015 1H2016
17.7%
334,248
31/12/2015
/1H2015
30/6/2016 /1H2016
8.9%
1H2015 1H2016
46,308
39,911
16.0%
4,765,159
31/12/2015 30/6/2016
9.5% 5,219,782
Net Profit Net Profit attributable to Shareholders
of the Parent Company / EPS
Total Assets Equity attributable to Shareholders
of the Parent Company / ROE
ROE
11.0%
ROE
11.6%
Financial Highlights (in RMB million/in RMB)
363,948
8
Profit Contribution by
Business Line
Banking
business
17.2%
Insurance
business
55.7%
Asset management
business 9.6%
Net profit
attributable to
shareholders of
parent company
40,776
Notes: (1) The profit contribution from internet finance business included the net profit of RMB9,497 million from reorganization of Puhui Financial.
(2) Profit contributed by each business line has been calculated with the share percentage held by the parent company.
Internet finance
business and
others
17.5%
(in RMB million)
1H2015 1H2016
24,095
22,713
Insurance Business
1H2015 1H2016
6,999
6,618
Banking Business
1H2015 1H2016
4,545
3,922
Asset Management
Business
1H2015 1H2016
7,142
(609)
Internet Finance
Business and Others
5.7% 5.8%
13.7%
Profit Contribution by Business Line
9
Net Profits of Major Subsidiaries
16,760
6,868
12,292
848
1,219
1,047
15,543
8,744
11,585
1,020
1,606
820
Ping An Life
Ping An Property& Casualty
Ping An Bank
Ping An Trust
Ping An Securities
Ping An AssetManagement
21.5%
1H2015 1H2016
7.8%
6.1%
16.9%
24.1%
27.7%
Note: The profits of Ping An Trust and Ping An Asset Management were corporate figures, others were consolidated figures.
(in RMB million)
10
22,051
64
1,735
15,556
58
1,017
41.8%
9.3%
70.6%
16,825 24,017 42.7%
1H2015 1H2016 Change NBEV
NBEV in Total
(in RMB million)
NBEV Margin 28.6% 28.4% 0.2 PPs
NBEV Grew Strongly and NBEV Margin Increased
Steadily
Note: Figures may not match due to rounding.
16,631 23,850 43.4% Individual Business
Group Business 194 167 13.7%
Agency
Bancassurance
Telemarketing, internet
marketing and others
11
16,825
1H NBEV
24,017
22,051
15,556
Agency channel’s
NBEV
Other channels’
NBEV
1,966
1,269
First-year
premium
56,771
39,729
NBEV margin
38.8%
39.2%
Average agent
force(in thousand)
710
940
New policies per
month per agent
1.32
1.24
8,038
7,984
Premium income
per policy(in RMB）
Active rate
in force
67.8%
66.4%
1.92
1.87
1H2015
1H2016
Policies per active
agent per month
Notes: (1) Other channels include: bancassurance, telemarketing, internet marketing and others under individual business, group business.
(2) Figures may not match due to rounding.
+
ⅹ
f
ⅹ
(in RMB million)
NBEV Breakdown
12
Growth of Embedded Value
Notes: (1) Above risk discount rates for the value of in-force business were earned rate/11.0%.
(2) Figures may not match due to rounding.
614,537
262,279
352,258
11.2%
16.6%
7.4%
31/12/2015
Value of in-
force
business
Adjusted
net asset
value
224,927
327,926
552,853
(in RMB million)
31/12/2015 30/6/2016 30/6/2016
Embedded Value per Share @ Dec 31, 2015 = RMB30.24
Embedded Value per Share @ Jun 30, 2016 = RMB33.62
614,537
354,524
260,014
11.2%
8.5%
15.0%
Life insurance
business
Other
business
326,813
226,040
552,853
13
Both NBEV and Embedded Value of Life Insurance
Business Improved under C-ROSS
(in RMB million)
Embedded Value NBEV
Solvency I
1.9%
C-ROSS
(in RMB million)
38,030
47,125
23.9%
Solvency I C-ROSS
Notes: (1) Value of one year’s new business is for the period from July 1, 2015 to June 30, 2016, while embedded is as at June 30, 2016.
(2) The method used to calculate the embedded value under C-ROSS is the same with current valuation framework discussed by
task force. The calculation guidance for embedded value valuation under C-ROSS is expected to be issued by China
Association of Actuaries (CAA) within 2016.
(3) Figures may not match due to rounding.
354,524 361,376
92,244 124,036
Value of
in-force
business
Adjusted net
asset value
237,340 262,279
34.5%
9.5%
14
289.0%
Group 210.4%
31/12/2015 30/6/2016
Ping An Property
& Casualty
Ping An Life 221.3%
11.82% Ping An Bank
Capital Injection
-
Issuance of RMB20 billion preferred
shares in March 2016
Issuance of RMB10 billion tier-2 capital
bonds in April 2016
269.5%
204.9%
219.7%
10.94%
Issuance of RMB10 billion capital
supplement bond in April 2016
-
Solvency Margin(C-ROSS) / Capital Adequacy
Ratio
15
1H2015 1H2016
Dividend Distribution
Profitability Business
development Capital requirement
Sustainability of dividend policy
The Company proposed an interim
dividend in cash of RMB0.20 per share
based on 18,280 million capital shares,
totaling RMB3,656 million, 11.1% higher
than for the same period last year.
11.1%
3,656
3,290
2016 interim dividend distribution
proposal:
RMB0.18
per share
RMB0.20
per share
(in RMB million)
Business Review
Overview Financial Results Business Review
Group President Alex Ren
17
Insurance
Business
Banking Business
Life insurance business: leverage strong agency sale force to achieve
sustainable healthy growth in new business value and premium.
Property and casualty business: build a brand of “customer’s first choice for
best experience”; improve business quality via rigorous risk screening.
Business Strategies
Asset
Management
Business
Internet Finance
Business
Push the second business transformation: aim for better quality and higher
efficiency; develop model of "boutique finance, smart finance, and green
finance”; strengthen risk management.
Build competitive advantages; strengthen overall risk management and
improve counter-cyclical capabilities; achieve stable investment return.
Diversify financial and daily-life service scenarios centered around customer
demands for health, food, housing, transportation, and entertainment;
pursue innovative internet financial business models; serve users and
customers as their "wealth manager, health adviser, and daily-life assistant".
Users, Customers
and Migration
Promote migrations between users and customers; build an open internet
financial platform to achieve the strategy of “one customer, one account,
multiple services and multiple products”.
Users, Customers and Migration
Overview Financial Results Business Review-Users,
Customers and Migration
19
Solid Achievement in Acquisition and Operation of Users and Customers
Online
Multiple
products
Conversion
Active
users
Conversion
Mobile
298 million internet users
206 million yearly
active users
In 1H 2016, 8.59 million
customers became new
users, accounting for
15.3% of total new users
In 1H 2016, 6.37 million
users became new
customers, accounting
for 35.9% of total new
customers
21% of the customers
hold financial products
from more than one
companies
182 million APP users,
70.2% higher than at
the beginning of 2016
57.7% of the customers
have become internet
users
119 million individual customers
One customer, one account, multiple services and multiple products
20
Large-scale and Growing User / Customer Base
(in ten thousand）
The Number of
Internet User (in ten thousand）
The Number of
Individual Customer
24,157
31/12/2015
From internal
customer
conversion From
external
4,758 859 29,774
23.3%
30/6/2016
10,858
31/12/2015
From internal
user conversion From
external
1,136 637
9.9%
30/6/2016
11,931
Retained
customers
10,158
New users New customers
Note: The number of customers at June 30, 2016 is not equal to the sum of the number of customers at December 31, 2015 and new
customers in the reporting period, due to customer loss.
21
Significant Progress in Migration and Conversion
From internet finance
companies to
core finance companies
From core finance
companies to
internet finance
companies
Migration between core
finance companies
From users into
customers
From customers into
users
300.5%
131.0%
26.9%
119.7%
40.4%
Customer
Migration
User and
Customer
Conversion
User
Migration
1H2015
1H2015
1H2015
1H2015
1H2015
1H2016
1H2016
1H2016
1H2016
1H2016
599
760
549
2,199
732
1,691
290
637
612
859
(in ten thousand
person times)
(in ten thousand
person times)
(in ten thousand
person)
22
16.6%
Cross-selling Achieved Outstanding Results
1H2016
1H2015
1H2016
1H2015
Ping An Property &
Casualty’s premium income
from cross selling
Premium income of Ping An
Annuity’s group short-term
insurance from cross selling
12,177
13,899
Ping An Health’s premium
income from cross selling
15.0%
Contribution from
Cross Selling Contribution from
Cross Selling
15.0%
13.7%
2,545
3,029
Contribution from
Cross Selling
41.2%
41.2%
1H2016
1H2015 35
43
(in RMB million)
Insurance Business
Overview Financial Results Business Review-Insurance Business
24
Steady Growth in Written Premiums of the Life
Insurance Business
Notes: (1) Written premiums refer to all premiums received from the policies underwritten by the Company prior to the testing of significant insurance
risks and the separating of hybrid risk contracts.
(2) Premium income refers to the premium income reported by the Company in its accounting statements after the testing of significant
insurance risks and the separating of hybrid risk contracts.
(3) The life insurance business includes relevant activities of Ping An Life, Ping An Annuity and Ping An Health.
172,898
Including:
Premium income
218,192
172,745
130,691
26.3%
Written
premiums
32.3%
1H2016 1H2015
Written Premiums
/Premium Income
(in RMB million)
1H2016 1H2015
Written Premiums
by Business Type
26.3%
172,745
218,192
207,537
164,165
8,580
10,655 Group
Individual
26.4%
25
Ping An Life (1/3) Written premiums of individual life insurance business
40.5% 19.5%
1H2016 1H2015
(in RMB million)
Written Premiums of New Business and
Renewal Business in Individual Business
Including:
regular
premiums
164,130
207,498
26.4%
24.7% 148,985
185,729
6,108
12,393
1H2016
9,037
9,376
1H2015
(in RMB million)
Written Premiums of Individual
Business by Different Channels
Telemarketing, internet and other channels
Agent
channel
Bancassurance
channel
New business Renewal business
46,952
64,108
54,224
76,193
109,906
131,305
26
10,026
10,522
1H2015 1H2016
First-year written premiums per agent per month(in RMB) New individual life insurance policies per agent per month
869,895
31/12/2015/1H2015
30/6/2016/1H2016
Number of agents
Income of agents per agent per month(in RMB)
Ping An Life (2/3) The scale and productivity of sales agents increased steadily
Agent Productivity Sales Agents
6,333
5,751 1.2
1.3
1,045,813
27
13 months 25 months
Ping An Life (3/3) The customer base continued to grow with a sound persistency
ratio
93.1%
88.1%
88.1%
92.2%
1H2015 1H2016
(in thousand)
43,596
30/6/2016
Number of Individual Customers Policy Persistency Ratio
31/12/2015
41,233
5.7%
Note: The number of individual customers refers to the number of policy holders.
28
(in RMB million)
3.6%
Annuity Assets under
Investment Management
31/12/2015 30/6/2016
Annuity Assets Entrusted
Ping An Annuity Remained Market Leader
135,480 140,296
(in RMB million)
9.5%
31/12/2015 30/6/2016
127,226
139,363
29
70,695
61,944
10,745 17,667
57.0% 54.9%
36.6% 40.4%
2.9%
Note: The property and casualty insurance business includes relevant activities of Ping An Property & Casualty and Ping An
Insurance (Hong Kong).
Property and Casualty Insurance Business (1/2) Good business quality with premium income from auto insurance
growing fast
83,975 81,584
1H2015 1H2016 1H2015 1H2016
Premium Income Combined Ratio
Accident and health
Non-auto
Auto
Expense
ratio
Loss ratio
(in RMB million)
93.6% 95.3%
14.1%
1.7
PPs
30
26,221
23,225
13,899 12,177
13.3%
Property and Casualty Insurance Business (2/2) Sustained growth of premium from cross-selling and telemarketing
35,402
40,120
1H2015 1H2016
Premium Income from Cross-selling and Telemarketing Channel Contribution
Others
30.3%
Cross-selling
16.6% Car dealers
21.9%
Telemarketing
31.2%
Premium
income
83,975
(in RMB million)
Cross-selling
Telemarketing
(in RMB million)
31
Technology Innovation
Life insurance business Property and casualty
insurance business
53 million users
Monthly active rate of 31%
Over 10 million healthy eco-
circle users
Better customer experience and
operation efficiency driven by new
technologies
Over 580,000 customers
Degree of customer
satisfaction: 95%
Fully implement the “online + offline”
claim service model and further
implement internet business strategy
“Ping An Auto Owner” APP
Claim Services
Establishing a smart platform
of loss assessment
Introduced online claim
service model including
“pocket claim”
4 million users
Pooled the most extensive
quality services resources to
create a more powerful and
open platform for the internet
automobile living
“Jin Guan Jia” APP
Smart Stores
Banking Business
Overview Financial Results Business Review-Banking Business
33
Sustained Business Growth
31/12/2015 30/6/2016
2,507,149
11.7%
(in RMB million)
1H2015 1H2016
12,292 11,585
6.1%
1,898,348 1,733,921
31/12/2015 30/6/2016
9.5%
31/12/2015 30/6/2016
11.7%
1,216,138
1,358,021
Note: The data is from Ping An Bank's interim report.
Total Assets Net Profit
Deposits Loans and Advances
2,800,983
34
1H2015 1H2016Net Non-interest IncomeProportion of Net Non-interest Income
Improved Business Structure and Operating Efficiency
(in RMB million)
1H2015 1H2016
28.80%
32.22%
3.42
PPs
Cost-to-income Ratio
NIS
Net Non-interest Income
20.2%
2.57%
2.67%
1H2015 1H2016
15,457
18,573
33.19%
0.10
PPs
NIM
2.71%
2.79%
1H2015 1H2016
0.08
PPs
Note: The data is from Ping An Bank's interim report.
33.91%
35
17,645
21,195
1.45%
1.56%
Balance of Non-performing Loans
Non-performing Loan Ratio
2.41%
2.51%
Loan Loss Provisions
Loan Loss Provision Ratio
Provision Coverage Ratio
Strengthen Provisions and Asset Quality under Control
Non-performing Loans
(in RMB million)
Provisions/ Loan Loss Provision Ratio/ Provision Coverage Ratio
31/12/2015 30/6/2016 1H2015/
31/12/2015
1H2016/
30/6/2016
(in RMB million)
12,923
20,000
165.86% 160.82%
Note: The data is from Ping An Bank's interim report.
Asset Management
Business
Overview Financial Results Business Review-Asset Management Business
37
Investment Return on Insurance Funds
Net Investment Income
/Net Investment Yield
Total Investment Income
/Total Investment Yield
78,299
38,028 40,622
59,752
47.1% 51.4%
1H2015 1H2016
NII yield
5.1%
TII yield
7.7% TII yield
4.4%
(in RMB million)
1H2015 1H2016
NII yield
5.7%
38
Asset allocation proportions 31/12/2015 30/6/2016 Change (PPs)
Fixed income investments 77.7% 76.5% 1.2
Term deposits 11.1% 10.4% 0.7
Bond investments 47.9% 47.6% 0.3
Debt scheme investments 7.9% 7.7% 0.2
Wealth management products(1) 6.8% 6.4% 0.4
Other fixed income investments(2) 4.0% 4.4% 0.4
Equity investments 16.2% 16.6% 0.4
Stocks and equity funds 10.0% 8.9% 1.1
Preferred stocks 2.5% 3.5% 1.0
Bond funds 1.2% 1.1% 0.1
Wealth management products and others 2.5% 3.1% 0.6
Investment properties 1.5% 1.6% 0.1
Cash, cash equivalents and others 4.6% 5.3% 0.7
Total investment assets (in RMB million) 1,731,619 1,825,901
Investment Portfolio of Insurance Funds
Notes: (1) Wealth management products include trust schemes from trust companies, wealth management products from commercial banks, etc.
(2) Other fixed income investments include financial assets purchased under agreements to resell, policy-pledged loans, statutory deposits for
insurance operations, etc.
39
Credit Risk of Alternative Assets was under Control; No
Credit Event has Occurred
Credit risk
control of
alternative
assets
Over 90%: with external credit ratings of AAA
Over 80%: fully covered by cash flows
Over 70%: guaranteed or secured
Sector
Distribution
Geographic
Distribution
Underlying assets are concentrated in developed and coastal areas such as
Beijing, Jiangsu, Zhejiang and Guangdong.
Underlying assets are distributed in important sectors that are critical to China's
development and people's livelihood, such as energy, transportation, infrastructure,
environmental protection, land reserve and affordable housing.
Nearly 50% of trust schemes were issued by China's
four major state-owned asset management companies.
Post Investment
Management Operations, incomes and risks of the assets are reviewed on a regular basis.
40
Trust Business (1/2) The number of high net-worth customers grew steadily, with net fees and
commission income beating most peers
Revenue
The Number of High
Net-worth Customers
1,397 1,687
1,052 432
102
96
1H2015 1H2016
2,215
2,551
3.7
4.3
30/6/2016 31/12/2015
(in RMB million) (in ten thousand)
Other income
Net fees and
commission
income
Investment
income
13.2% 14.9%
20.8%
Note: Figures may not match due to rounding.
41
Business Structure
Trust Business (2/2) Improved business structure and enhanced comprehensive risk
management
Proportions of Financing Trusts
(in RMB million) As at Jun 30, 2016, financing category
accounted for 23.5%, and real estate
financing accounted for 5.9%.
As at Dec 31, 2015, financing
category accounted for 29.0%,
and real estate financing
accounted for 8.3%.
Assets Held
in Trust
643,766
Investment
category
24.7%
Administrative
category
51.8%
Financing
category
23.5%
% of Assets
Held in Trust
42
Securities Business (1/2) The net profit declined due to market situations, but the overall
performance was still better than peers
Revenue Net Profit
679 755
4,767
833
2,292 2,322
1H2015 1H2016
3,880 1,766
1,606
1,219
1H2016 1H2015
(in RMB million) (in RMB million)
Underwriting
commission
income
Investment
income and
others
Net brokerage
fee income
24.1% 18.6%
43
Securities Business (2/2) New customers brought by internet increased and the scale of asset
management business made breakthrough
The Number of New Customers
of Brokerage Business Assets under Management
1H2015 1H2016
261
173 2,370
3,301
30/6/2016
39.3%
31/12/2015
(in ten thousand) (in RMB million)
50.9%
44
245,722
276,038
(in RMB million)
1,052
801
31/12/2015 30/6/2016 1H2015 1H2016
Ping An Asset Management Developed Third-
party Business Rapidly
Assets under Management Management Fees Income
(in RMB million)
12.3% 31.3%
Internet Finance Business
Overview Financial Results Business Review-Internet Finance Business
46
The Internet Finance Business has been Boosted
in terms of Flow, Frequency and Value
Internet +
Finance & Non-finance
47
Lufax Holding Achieved significant Business
Development
Registered
Users
Up by 61.7% compared with
the beginning of 2016
Lufax
23.42 million
Up by 27.9% compared with
the beginning of 2016
5.87 million
3,201.9
2,536
665.9
1H2015 1H2016
Retail
Institutional
Transaction Volume Puihui
Financial
79.4
31/12/2015 30/6/2016
Balance of Loans
Active
Investors
Puihui
Financial
Borrowers
2 million
Up by 61.3% compared with
the beginning of 2016
90.0%
41.8
(in RMB billion) (in RMB billion)
525%
113.9
398.3
512.2
48
Ping An Doctor Completed A-round Financing of USD500
million, and its Valuation Hit USD3 Billion
Private
clinics Hospitals Pharmacies Checkup
centers
Health
partners
Family
doctors Consultation
with experts
Quick drug
purchase
Appointment
making
Health
community
Health
plans
Ping An Doctor APP: online health service
platform
Offline health service platform
An in-house medical team of
about 1,000 members
Over 50,000 contracted external
doctors
Doctor
network Partners
1,500 hospitals
Over 500 health checkup
institutions
Offline medical
services
Online portal Health advisory
services
Offline medical
service network
Better user experience
Closed-loop services
49
E-wallet, PA Haofang and One Account Management Services
Ping An Pay and Wanlitong have further improved resource allocation to
build a uniform brand, E-wallet
E-wallet users
48.74 million
Transaction volume
RMB1.31 trillion Granted RMB5.4
billion worth of
loyalty points
New houses: launched online events such as house exhibitions and house purchase festivals, and effectively built its brand and reputation.
Second-hand houses: has accumulated authentic home trading information via external channels, attracted users to buy houses offline, and
developed an O2O transaction process.
The online comprehensive real estate information platform of PA
Haofang continued to improve
Registered users
over 10 million
Cities covered by the new
house portal: 125
The One Account Management Services is committed to becoming China's
leading open platform for internet financial services
Three value
propositions
Nearly 140 million registered users and over 20 million monthly active users
Benefit: The platform links users with financial and living benefit platform and creates online financial advisory center.
Credit reference: The credit reference center has handled over 70 million authorized queries since it launched one year ago.
Convenient management: The one-stop account information view covers over 800 financial institutions and 25 types of financial
accounts.
PA Haofang
50
Honors and Awards Widely praised by community Constantly rising on Fortune's list
2015
2014
2013
2012
2011
2010
2008
Established in 1988
No.462
No.383
No.328
No.242
No.181
No.128
No.96
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• Ping An received the "Asian Excellence Award",
the "Best CEO Award", the "Best CFO Award",
and the "Best Investor Relations in China
Award" from the Corporate Governance Asia
magazine
• Ping An received the “The Excellent Director” in
the Executive Director category from the
“Director Of The Year Award 2015” of the Hong
Kong Institute of Directors
• Ping An received the "Carbon-value Ecological
Practice Award" from the World Economic and
Environmental Conference
• No.20 among Forbes Global 2000 public
companies, No.10 among financial companies in
the world, and No.7 among mainland Chinese
companies
• No.57 among BrandZ Top 100 Most Valuable
Global Brands in 2016, up by 11 positions
compared with in 2015
• No.6 on Interbrand’s 2015 Best China Brands
list, again No.1 among Chinese insurance
brands
• No.96 among Eurobrand's Global Top 100 Brand
Corporations 2015 as the only insurance brand
on the list
2016 No.41 55
Q&A
