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2Q 2017 Investor Presentation Noah Holdings Limited (NYSE: NOAH)

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2Q 2017 Investor Presentation Noah Holdings Limited (NYSE: NOAH) 2Q 2017 Investor Presentation Noah Holdings Limited (NYSE: NOAH) September 2017 Disclaimers This presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of 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," "confident" and similar statements. Among other things, the outlook for 2017 and quotations from management in this presentation, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties. All information provided in this presentation is as of the date of this presentation. Noah undertakes no duty to update any information in this presentation or any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. The presentation contains non-GAAP financial measures that exclude the effects of all forms of share-based compensation and loss or gain on change in fair value of derivative liabilities. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measure used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies. The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness, reasonableness or correctness of such information or opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company or any of their respective affiliates, advisers or representatives shall be in any way responsible for the contents hereof, or shall be liable (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. 2 Table of Contents Who We Are Industry Overview Overview of Noah Financial Performance Appendices 3 WE HAVE BEEN GROWING AT A RAPID RATE Net Revenues Non-GAAP Net Income(1) (RMB mm) (RMB mm) 723.0 2,513.6 2,119.9 603.5 479.2 1,528.5 348.2 1,006.0 546.8 169.3 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Transaction Value Gopher AUM (RMB bn) (RMB bn) 99.0 101.4 120.9 86.7 63.4 44.5 49.7 23.1 31.3 7.9 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Source: Company Filings (1) Representing non-GAAP net income attributable to Noah Shareholders, based on non-GAAP financial measures that exclude the effects of all forms of share-based compensation 4 WE ARE MORE THAN A WEALTH MANAGER Comprehensive Financial Platform Wealth Asset Global Internet Financial Management Management Platform Services • 1H17 Transaction • 1H17 Total AUM at • Noah Hong Kong • 1H17 Transaction Value of USD9.7bn USD20.5bn Value of USD1.9bn • Noah US • Transaction Value • AUM 5-Year CAGR • 2Q17 Average • Ark Trust (HK & 5-Year CAGR 44.7% 97.8% Transaction Value of Jersey) USD40k • 164,728 Registered • 55% AUM in PE • 1H17 Overseas AUM Clients Investment • 438,981 Caifupai* at USD2.7bn Clients Open Architecture Product & Service Platform * Caifupai is Noah’s brand for internet wealth management services 5 OUR HISTORY AND KEY MILESTONES Management NYSE IPO; Launch of Internet Expansion of buyout Establishment of Wealth Management overseas distribution Gopher Asset Business channels; Investment-grade Rating by S&P Establishment of Noah Establishment of Wealth management Hong Kong; Fund Noah US; division of Xiangcai Sequoia invested Distribution License Establishment of Securities in Noah (No.1) in China Ark Trust (Jersey) 6 Table of Contents Who We Are Industry Overview Overview of Noah Financial Performance Appendices 7 STRONG WEALTH CREATION IN CHINA Number of HNWI(1) in China Total Household Assets in China from 2013 to 2021F HNWI (mm) (RMB tn) 1.9 0.2 1.6 0.1 110 0.1 102 0.1 93 1.0 86 0.1 79 0.1 72 0.7 1.6 64 0.1 1.4 55 0.5 111 49 97 0.1 0.9 85 0.3 73 0.2 0.6 54 63 0.4 46 0.3 28 36 0.2 2006 2008 2010 2012 2014 2016 2017F 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F RMB 10-50 mm RMB 50-100 mm > RMB 100 mm HNWF Ordinary Families Source: Bain & Company & CMB report, 2017 Source: Industrial Bank & BCG report, 2017 (1) HNWI stands for High Net Worth Individuals, whose investable assets exceed RMB 10 million 8 INDEPENDENT WEALTH MANAGEMENT COMPANIES GAINING MORE MARKET SHARE 100% Independent wealth managers 80% Foreign private banks Four state-owned banks 60% 40% Joint-stock commercial banks 20% 0% 2009 2011 2013 2015 2017 Source: Bain & Company & CMB report, 2017 9 HNWIs HAVE STRONG PREFERENCE FOR ALTERNATIVE INVESTMENTS Global HNWI & Ultra HNWI Asset Allocation Chinese HNWIs’ Plans for Asset Allocation 20% PE/VC -1.4% 70.1% 28% 9% Overseas Assets -2.8% 68.7% 15% 15% Fixed Income -8.6% 53.3% 33% Stocks & Mutual Funds -8.7% 46.1% 46% Gold -10.5% 28.0% 22% Real Estate & RE Funds -20.1% 22.7% 10% 2% HNWI Ultra HNWI Cash Alternatives Increase Decrease Fixed Income International Equities Domestic Equities Data Source: The Ultra High Net Worth Investor White Paper by KKR (May 2017) Data Source: 2016 Noah Wealth Management White Book 10 WM & AM INDUSTRY FACING UNIFIED SUPERVISION The asset management industry in China should return to the Beneficiary- Trustee principle -- the investors should bear both investment risk and return, whereas the asset managers should only be remunerated for the management “ services provided. The asset managers shall never guarantee either the principal or the yield but reinforce the client suitability management and investor education. As part of their fiduciary duty, the asset management institutions should put in place a firewall between their asset management business and the proprietary business. Products with expected yields should be gradually phased out and substituted by NAV-based products, with their fair value reflecting the inherent risks of the underlying assets. — China Financial Stability Report ” PBOC, July 4, 2017 11 Table of Contents Who We Are Industry Overview Overview of Noah Financial Performance Appendices 12 OVERVIEW OF WEALTH MANAGEMENT BUSINESS Transaction Value of Wealth Management Products (RMB bn) Fixed income products Private equity fund products 99.0 101.4 Secondary market equity fund products 7.8 Other products 28.1 27.5 63.4 65.6 2.2 8.9 52.6 31.9 17.3 44.5 5.1 12.0 6.4 13.6 64.5 22.6 23.1 45.6 14.4 7.6 35.7 40.2 36.6 10.8 33.1 8.3 14.4 5.9 9.6 2010 2011 2012 2013 2014 2015 2016 1H16 1H17 * Secondary market equity products were included in “other products” before 2013 ** Mutual fund products were not included in “other products” since 2016 13 NATIONWIDE NETWORK COVERAGE & STABLE SALES TEAM Distribution of Chinese High-Net-Worth 1,259 1.9% 76 205 Families 1,259 1.9% 76 cities 205 # of HNWFs dedicated turnover covering branches <10k relationship rate for top top tier across 10-30k managers relationship cities and China 30-50k 50-100k managers in key >100k 2Q17 provincial capitals Source: Industrial Bank & BCG HNWFs = families with at least RMB 6mn investable assets Distribution of Noah Branches Noah’s Average Transaction Value per Client (RMB mm) 8.43 7.87 7.49 7.03 7.35 # of Noah branches 1~4 5~9 10~19 2014 2015 2016 1Q17 2Q17 20 or more 14 WEALTH MANAGEMENT FROM PRODUCT DRIVEN TO COMPREHENSIVE SERVICES DRIVEN Philan- thropic Planning Immigration Trust & Education Mgmt Business Estate & Succession Wealth Consulting Transfer Tax Planning 15 OVERVIEW OF ASSET MANAGEMENT BUSINESS AUM* (RMB bn) 138.7 Segment strategy 3.5 • More diversified credit products, 120.9 less real estate exposure • More portfolios, less single 40.7 asset-backed products 27.8 101.2 3.6 • Fund of hedge funds 86.7 • MOM 8.3 18.5 6.9 6.3 15.4 • More commercial, less 10.7 23.2 10.6 residential • More value-added, less project development 21.6 49.7 31.8 • PE/VC FOF 5.7 2.6 • PE/VC secondary funds 31.3 72.2 • Co-investments 3.4 61.7 • Direct investments 31.0 46.8 4.0 7.9 23.9 7.2 10.4 0.7 4.0 2012 2013 2014 2015 2016 2Q16 2Q17 PE RE Public markets Credit Other * Assets under management figures shown is on historical cost basis, not NAV, except for public market products ** Credit investments were included in “other ” investments before 2Q17, and AUM balance is restated for comparison purpose 16 WE PARTNER WITH LEADING GPs TOP 20 RMB VC Funds TOP 20 RMB PE Funds 2.
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