M c I n t i r e I n v e s t m e n t I n s t i t u t e 1

McIntire Investment Institute At the University of Virginia

Long Pitch Renren Inc.

(NYSE: RENN)

Qidong Guan| 10 November 2011

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Business Overview

Risk Analysis

Stock Summary

Market Misperceptions

Thesis Points

VAR

Agenda

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Business Overview

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Business Overview

Very Similar to Facebook…

Better Understanding

of

“RenRen”

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Stock Summary

Share Price: $5.17 Market Cap: $2.04B P/E (ttm): N/A EPS: -0.85

52-Week Range : $4.50 -$24.00 Total Cash (mrq):1.23B Current Ratio (mrq):13.45 Total Debt: N/A

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•  Strong Growth Potential

•  Large Market Share

•  Product Diversity

Thesis Points

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•  Strong Second Quarter Performance Net income turned positive in 2nd Quarter Share Buyback Program of $150m Long-term Investment Initiated in 2nd Quarter

•  Sustainable Growth Dominate the market of Social-Networking websites in China Increasing types of IVAS (Internet Valued-Added Service) Revenue from Online-Advertising Doubled

Thesis 1:Strong Growth Potential

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China’s Online Ad Boom to support Growth

Numbers of Chinese Internet Users (million)

Stable Growth on Online-Advertising Demand

Stable Revenue Growth

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Thesis 2:Large Market Share

•  Ranked the Largest National “Real Name” Social Network

•  Brand Loyalty •  Large and Expanding Users Group:

•  124.2 million activated users •  Majority users: College students, young urban

professions etc. •  Age: 16-35 years old

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Thesis 2:Large Market Share

Trend of Expanding to Different Users Groups

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Thesis 2:Large Market Share

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Thesis 3:Product Diversity—Multi-Platform

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Thesis 3:Product Diversity—Access Everywhere

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Misperception

Chinese Facebook?

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VAR

•  Survey to U.Va Chinese Students who both use Renren and Facebook

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VAR

Response: Current Preference: 91.7% of them responded they prefer RenRen.com

Subjective Reasons: 87.5% of them Most of my friends use it. 50.0% of them referred “Language preference”

Question1: Which one do you prefer?

But…

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VAR

Objective Reason: the government has blocked Facebook in Mainland China.

Question2: If the block of Facebook.com is eliminated on mainland China, which one will you prefer in the future?

Response: Majority users(63.90%) still consider Renren.com

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Risk

•  Exit of Advertising Sponsor

•  Investors’ Negligence •  Various Competitors

•  Information Inconsistency

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Recommendation

Recommend MII to Initiate an initial position of 2% on RENN

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Questions?