Investor Presentation 4Q21

Investor Presentation

4Q21

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DisclaimerThis presentation has been prepared by Cango Inc. (the “Company”) solely for information purpose and has not been independently verified. By viewing or accessing the information contained in this material, the recipient hereby acknowledges and agrees that no representations, warranties or undertakings, express or implied, are made by the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives or the underwriters as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives or the underwriters accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed.

Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect the Company’s intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” “anticipates,” “believes,” “confident” or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and other factors, many of which are beyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company or any of its affiliates, advisers or representatives or the underwriters has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.

This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the “SEC”) or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a “prospectus” within the meaning of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company and is qualified in its entirety by reference to the detailed information in the Company’s latest annual report on Form 20-F.

In evaluating our business, we use certain non-GAAP measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performances, investors should not consider them in isolation, or as a substitute for net income attributable to the Company or other consolidated statement of operations data prepared in accordance with U.S. GAAP.

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Our Mission

To Make Car Purchase Simple and Enjoyable

Business Overview

Section 1

Transforming Automotive Transactions and Purchases

Notes:1. As of December 31, 20212. Includes banks and other financial institutions, excludes insurance companies3. Cumulative number of car buyers served since the Company’s inception

BUSINESS OVERVIEW 5

China’s Leading Tech-enabled Auto Platform

Strong Profitability

One-stop Platform for All Key Participants(1)

45,000+ Car Dealers

2,000,000+Car Buyers(3)

40+Other Industry Participants

10+Financial Institutions(2)

Full Value Chain Coverage

Asset Light Model

Diversifying Revenue Streams

BUSINESS OVERVIEW 6

Products and Services Highlights

Automotive Financing Facilitation

Core Revenue Driver (24.0%) (1)

After-market Services Facilitation

Long-term Revenue Driver (3.5%) (1)

Automotive Transaction Facilitation

Fast Growing Revenue Contribution (67.0%) (1)

• Addresses key pain points of mid-to-small size car dealers

• Establishes infrastructure for automotive new retail model in lower-tier cities

• Facilitates synergies with existing auto financing and after-market services segments in terms of channel expansion and cross-selling

• Rapid growth since launch

• Diversified insurance product offerings and expanded insurance partnerships (e.g. non-life to life)

• Acquisition of an insurance brokerage license to fuel growth

• Optimizing efficiency in dealer network

• Dedicated sales team to penetrate high-end 4S channels

• Major ICBC financing partner platform

Online Platforms

Car Buyers

Dealers Financial Institutions Car Buyers

Other Participants

Insurance Companies /

Brokers

Dealers Car Buyers

Other Platforms

OEM / Wholesalers

1 2 3

Notes:1. Revenue contribution in 2021Q4

BUSINESS OVERVIEW 7

Disrupting the China’s NEV Market

Standardized & efficient supporting services

Realize “last mile” ofonline transaction

Leverage Cango’s 45,000+ dealernetwork to facilitate transactions

Strategic Synergies with NEV Partners

298569

1,037 1,0381,347

1,7992,441

3,374

4,700

0

1,000

2,000

3,000

4,000

5,000

2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E

Robust Growth in NEV MarketSales Volume (000s)

2016–2018 CAGR: 86.5%2019E–2022E CAGR: 35.3%

NEV as % of Total PV Sales

1.2% 2.2% 4.3% 4.7% 6.2% 8.1% 10.6% 13.9% 18.2%

Rapid Advancement of

NEV Technology

Favorable Government Policy

Upcoming Technological

Automotive Transaction Services Platform

• Strategic partnershipsin automotivetransaction, automotivefinancing and after-market services

• Cango insurance service portal in Li Auto and HiPhi car owner APPs

Source: CIC

BUSINESS OVERVIEW 8

Well-established Infrastructure to Scale Growth

BUSINESS OVERVIEW 9

Our Growth Strategies

Engage More Platform Participants

Enhanced Proprietary and 4S-High End Market Sales

Deepen Relationshipswith Our Strategic Partners

Roll Out More Services along the Automotive

Transaction Value Chain

Continued Investment in Data and Technology

BUSINESS OVERVIEW 10

Our Management Team

Xiaojun ZHANG

Co-founder and Chairman§ 20+ years of experience in auto industry§ Served as a financial supervisor of People’s Bank

of China, Shanghai Branch§ Master’s degree in business administration from

Peking University. Completed China Senior Executive Program at Harvard Business School

Jiayuan LIN

Co-founder and CEO§ 20+ years of experience in auto industry§ Served as the Deputy Manager of Audit Division

in the Finance Department at Pudong Branch of Bank of China

§ Bachelor’s degree in finance and economics from Shanghai University of Finance and Economic. Completed the China Senior Executive Program at Harvard Business School

Yongyi ZHANG

CFO§ 25+ years of experience in finance and capital

market§ Worked as an auditor at Arthur Anderson

(Shanghai Office)§ Bachelor’s degree in international accounting

from Shanghai University of Finance and Economics

Investment Highlights

Section 2

INVESTMENT HIGHLIGHTS 12

Investment Highlights

Leading Auto Transaction Enabler 1234

Unparalleled Expertise across Value Chain

End-to-end Technology-enabled Auto Platform

Asset Light Model with Diversified Funding Sources

Powerful Dealer Network

Best Participant Experience

Diversified Customer Acquisition Network

5678 Prudent Risk Management System


Leading Auto Transaction Enabler in China1

Auto Transaction Aggregator

Proprietary Sales Model

Infrastructure of Auto New Retail in Lower-tier Cities

EV Revolution

Vast Dealer Network Scalable Leadership in Auto Financing Facilitation Pioneer in Product and Service InnovationRMB Bn

34.3

40.0

43.5

45.8

FY 2018 FY 2019 FY 2020 FY 2021Outstanding Balance

46.6

49.2 48.5

45.9

FY 2018 FY 2019 FY 2020 FY 2021No. of Dealers (‘000)

Optimized network by terminating relationships

with underperforming dealers


End-to-end Technology-enabled Auto Platform2

Automotive Transaction Facilitation(Since 2017)

After-market Services Facilitation(Since 2017)

Automotive Financing Facilitation(Since 2010)

DealerDealers Car Buyers

Financial Institutions

After-market Service

Providers

OEMs /Wholesalers

• Data insights• Digital application• Credit risk model

• Digitalized trading platform for registered dealers

• Dealer training

• Telematics insights• Paperless repossession


Unparalleled Expertise across Value Chain3

• Knowledge on automotive value chain

• Knowledge on financial products and services

• Experience in working with various financial institutions

• Strong data and insights

• Advanced technology services and solutions

• Strategic collaboration with Tencent

• Launch in auto financing

• Steady expansion into after-market services facilitation

• Future growth fromautomotive transaction facilitation

+ +

INDUSTRY KNOW-HOW RICHNESS OF EXPERIENCE TECHNOLOGY EXPERTISE

Asset Light Model with Diversified Funding Sources


4

Diversified Funding with Limited Risk ExposureLoan Origination By Funding PartnersFY2021

Co-partnership: Financial institutions led by

More to come…

Direct Partnership

Steady Growth of Funding Partners

12

Reduced Funding Cost

~7% to ~6%

Notes:1. As of December 31, 20212. As of March 31, 2018


Powerful Dealer Network 5

30 provinces

Features of Our Dealers Strategic Value to Cango

Gain First-mover Advantage in an Underserved Market

Build up Network Effect

Access Auto Transaction Value Chain

Closed Transaction Loop

45,000+dealers

(1)

344cities

(1)

(1)

94.5%self-operated dealer coverage

(1)

21,000+independent sales agents

(1)

2734

11 13

IPO NowLower-tier citiesTier-one and tier-two cities

3036

8 10

IPO Now

Non-4S dealers 4S dealers

(1)(2)

No. of Dealers (‘000)

(1)(2)


Diversified Customer Acquisition Network6

ü New and used car sourcing for dealers

ü Diversified channels

ü Dealer trainingü Supply chain financing

ü Repair & maintenanceü Insurance products

CarSourcing

Value-addedServices

After-market Products

Leads Generation

Sales and Transaction Facilitation

Customer Acquisition Channels

Powerful Dealer Network

Independent Sales Agent Force

Conversion from Automotive Transaction

ü Diverse online traffic to offline dealer networks

ü Customized financial products for car buyers

Car Buyer

Notes:1. Operating profit over revenue


Best Participant Experience7

Application Submission

Time to Approve

Identity Verification

Signing of Agreement

GPS Installment

Transaction Closed/Car

Pick-up

10+ pages Paper

application form

1 Week approval time

Onsiteverification

at bank’s branch

Papersigning

Lengthy process at Specified Locations

Days to Weeks

waiting time

Traditional Approach

100%electronic

application

80% application less than 30 minutes

approval time

Facial recognition

utilization

Electronic signing

Quick Installment

Onsite

Within

Half of a DayApproach

Value Creation for Platform Participants

Financial Institutions Dealers Car Buyers

Driving Operating Efficiency

27.0%Average Operating Margin(1)

2017-2020

Notes:1. 4Q21


Prudent Risk Management System8

Rigorous DealerScreening Procedure

Credit Underwriting

Internal Blacklist of Fraudulent Dealers

Significant Lawsuits Check Leveraging Third-party Databases

On-site Visits

100% GPS Installation

Credit Assessment Collateral Registration

Automobiles Required to be Registered with Local Government Authorities

Manual Evaluation If Necessary

Proprietary Credit Assessment Model

Machine Learning Algorithms

Loan Applicant Data

Dealer Data

Proprietary Model

Proprietary Data

1 2 Six-stage DelinquentAsset Management

AutomatedReminder1

Live Phone Calls2

In-person Visits3

Professional Repossession 4

Disposal5

Legal Actions6

3

40.9% /4.3%

Automatic Approval/Rejection

1.62%vs. 3Q21: 1.58%

M1+ ratio(1)

0.86%vs. 3Q21: 0.76%

M3+ ratio(1)

Financial Performance

Section 3

FINANCIAL PERFORMANCE 22

Stable Business Growth with More Input in Automotive Transaction Amount of Financing Transactionsthe Company facilitatedRMB Bn

Total RevenuesRMB MM

Cost of RevenueRMB MM

Operating ExpensesRMB MM

27.7 30.1

10.8

5.7

FY2020 FY2021 4Q2020 4Q2021

2,052

3,922

1,097 1,051

FY2020 FY2021 4Q2020 4Q2021

1,098

2,958

724 881

FY2020 FY2021 4Q2020 4Q2021

196 239 66 74

266276

90 86

6370

23 24

FY2020 FY2021 4Q2020 4Q2021Sales and marketing General and administrative Research and development

1.9x

2.7x 1.2x


Income and Profit

Gross ProfitRMB MM

Net Income (Loss) (2)RMB MM

Non-GAAP Adjusted Net Income (2)(3)RMB MM

3,373

(9)

1,568

124

FY2020 FY2021 4Q2020 4Q2021

3,452

79

1,588

147

FY2020 FY2021 4Q2020 4Q2021

954 964

374

170

FY2020 FY2021 4Q2020 4Q2021

46.5% 24.6% 34.0% 16.2% 164.4% (0.22%) 142.9% 11.8%

Margin Margin

Notes:1. FY21 net loss and adjusted net income included RMB37.0 million investment loss in Li Auto. 4Q21 net income and adjusted net income included RMB254.1 million investment gain in Li Auto.2. Non-GAAP adjusted net income is defined as net income (loss) excluding share-based compensation. Reconciliation of non-GAAP adjusted net income to net income (loss) is included in Section 3 of this presentation.


Balance Sheet SummaryIn RMB million 31-Dec-20 31-Dec-21Assets

Cash and cash equivalents 1,426.9 1,434.8Restricted cash 9.7 61.3 Short-term investments 4,342.4 2,598.9Short-term finance leasing receivable, net 2,035.4 1,414.2Others 1,084.6 2,098.7

Total current assets 8,899.0 7,607.9 Restricted Cash 878.3 1,114.2 Long-term finance leasing receivable, net 1,454.5 1,029.3 Others 914.1 1,195.7

Total non-current assets 3,246.9 3,339.2 Total Assets 12,145.9 10,947.1

LiabilitiesShort-term borrowings 355.8 579.8 Long-term debts-current 1,228.8 938.0 Accrued expenses and other current liabilities 324.7 719.0 Risk assurance liabilities 460.8 699.0 Income tax payable 87.1 481.9

Total current liabilities 2,457.3 3,417.7 Long-term borrowings 977.8 486.4 Deferred tax liability 330.8 51.5 Other non-current liabilities 4.9 1.0

Total non-current liabilities 1,313.4 538.8 Total Liabilities 3,770.7 3,956.5

Cango's equity 8,375.2 6,990.6 Non-controlling interests - -

Total shareholders’ equity 8,375.2 6,990.6

Total liabilities and shareholders’ equity 12,145.9 10,947.1

THANK YOU!

NYSE:CANG

Yihe LiuCango Inc.Tel: +86 21 3183 5088 ext.5581Email: [email protected]

Emilie WuThe Piacente GroupTel: +86 21 6039 8363 Email: [email protected]

Investor Presentation 4Q21

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