Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q3 2020 Earnings Presentation
29 slides from Yiren Digital's earnings presentation, November 2020
Slide 1: Q3 2020 Investor Presentation
Q3 2020 Investor Presentation November 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This material contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of 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 f
Slide 3: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 3
Slide 4: Yiren Digital: Leading Digital Financial Services Platform
Yiren Digital Leading digital financial services platform in China Yiren Credit – Full spectrum of credit products with online/offline customer services channels Leading Digital Financial Yiren Wealth – One stop asset allocation-based online wealth Services management service for Mass Affluent Inves
Slide 5: Yiren Digital: Differentiated Business Model
Yiren Digital: Differentiated Business Model Positioning Digital Personal Financial Service Consumer Credit and Business Model Wealth Management Loan & AUM Based Monetization Recurring Service Fee Customer Value Long Term Value Capital Light 5
Slide 6: Yiren Digital At A Glance, Q3 2020
Yiren Digital At A Glance, Q3 2020 Leading Digital Wealth Management Platform Leading Consumer Creditech Player Total AUA Loan Balance Q3 2020 Q3 2020 ~RMB 25Bn ~RMB 28Bn No. of Active Wealth No. of New Borrowers Management Investors1 Q3 2020 Q3 2020 ~143K ~38K AUA Wealth Management Investments2 Cus
Slide 7: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 7
Slide 8: Business Highlights
Business Highlights Leading Digital Personal Financial Services Platform in China Consumer Credit: Unique In-house Capabilities of Manufacturing Fixed Income Products With Full Spectrum of Online / Offline Channels Wealth Management: One-Stop Asset Allocation-based service for Mass Affluent Data and
Slide 9: Leading Digital Personal Financial Service Platform
Leading Digital Personal Financial Service Platform Wealth Management Unsecured Customer Wealth Management Market Finance Market in China in China (By outstanding balance, RMB trillion) (By amount of investable assets, RMB trillion) 300 25 23 243 250 20 Prime Mass Affluent Borrowers Investors 200 15
Slide 10: Leading Creditech Platform
Leading Creditech Platform Omni-Channel Full Spectrum of Credit Product Diversified & Competitive Customer Services Funding Source With Balanced Credit Performance High Profit Generator Online Yield Financial Institutions Profit Contributor Nationwide Service Network Telemarketing Portfolio Stabiliz
Slide 11: Extensive Data Set And Credit Decisioning Capabilities
Extensive Data Set And Credit Decisioning Capabilities Extensive Data Set Proprietary Decisioning Risk Grid Platform Big Data I Aggregation & Analysis 400+ Location Bank Statements Decisioning Rules Developed FICO II PBOC Credit Report Credit Card Chinese 1,000,000+ Online Banking Statements Market
Slide 12: Our Wealth Management Strategy
Our Wealth Management Strategy Total Investable Asset Service Needs Disruptive Wealth Model Assets UHNW Estate Planning Tax Advisory >RMB 100 M Immigration Philanthropy HNW Alternatives Education RMB 10 M - 100 M …… …… Cash Management One Stop Financial Advisory Fixed income for Mass Affluent Mass A
Slide 13: Yiren Wealth Business
Yiren Wealth Business Customer Acquisition One Stop Wealth Management Underlying Assets MMF Existing Customers Robo + Remote Financial Advisor Cash Hybrid Model Mgmt. Repeat Investment Bank WM Products Online Direct Acquisition Cross Sale KYC Fixed / Up sale Loans Income Channel Partnership Portfoli
Slide 14: Wealth Management Gaining Traction
Wealth Management Gaining Traction AUA Per Investor1 Number of Active Investors1,2 (RMB millions) (RMB thousands) 5,000 130 115 120 76,707 4,500 110 4,000 100 30,392 3,500 90 80 3,000 80 65 70 2Q20 3Q20 2,500 60 48 GMV 2,000 50 (RMB millions) 1,500 32 40 22 30 4,593 1,000 21 14 20 500 10 0 0 2186 4Q
Slide 15: Tech Driven Approach To User Retention & Conversion
Tech Driven Approach To User Retention & Conversion Yiri: AI-Based Financial Assistant Education Financial Literacy Investment Q&A Products Consumer Loans Insurance Planning Fund of Funds … Customer Investment Strategy Intelligent KYC Onboarding Recommendation Engine Tech Layer Yiren Financial Cloud
Slide 16: Growth Strategy
Growth Strategy Maintain high quality customer credit asset growth through Online & Offline with new product offerings: short/small revolving loans, auto-loans Grow Wealth Management business through asset-allocation model with Wealth Management products: differentiate asset sourcing Develop data an
Slide 17: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 17
Slide 18: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (Thousands) (RMB Million) 150 143 10,496 108 3,207 2,402 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 18
Slide 19: Financial Metrics
Financial Metrics Net Revenue Net Income (RMB Million) (RMB Million) 31.1% 11.1% -30.8% 7.8% 16.3% 24.4% 228 2,056 80 1,023 3Q19 2Q20 3Q20 755 -232 3Q19 2Q20 3Q20 Take Rate (%) (1) (1) Take rate is calculated as net revenue (net of allowance of contract assets) divided by amount of loans originated.
Slide 20: Proven Credit Performance
Proven Credit Performance 20% Cumulative M3+ NCO (as of September 30, 2020) 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 4 7 10 13 16 19 22 25 28 31 34 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 20
Slide 21: THANKS!
THANKS!
Slide 22: APPENDIX
APPENDIX
Slide 23: Income Statement
Income Statement AS ‘Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30, September 30, September 30, September 3
Slide 24: Cash Flow Data
HAH YIREN DIGITAL Cash Flow Data Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Nine Months Ended ‘September 30, June 30, September 30, September 30, September 30, September 30
Slide 25: Balance Sheet
HAI i YIREN DIGITAL Unaudited Condensed Consolidated Balance Sheets (in thousands) As of December June 30, September 30, September 30, 31, 2019 2020 2020 2020 RMB RMB RMB USD Cash and cash equivalents 3,198,086 | 2,935,543 2,836,229 417,731 Restricted cash 71,056 90,879 172,135 25,353 Accounts recei
Slide 26: Operating Highlights
lj BASIN YIREN DIGITAL Operating Highlights ‘Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30
Slide 27: Delinquency Rates
BAHN YIREN DIGITAL Delinquency Rates Delinquency Rates Delinquent for 5-29 day December 31, 2015 1.2% 0.9% 2 2 Fd 2 2 December 31, 2017 08% December 31, 2019 1.2% 2.0% | wp = June 30, 2020 14% 2.0% ember 31, 2015 0.5% 0.8% 2 = A 5 December 31, 2017 13%, 1.2% December 31, 2019 1.6% 2.9% Ry June 30, 2
Slide 28: M3+ NCO by Vintage
M3+ NCO by Vintage Net Charge-Off Rate Amount of Loans Koa Issued Facilitated Accumulated M3+ Net Charge-Off Total Net Charge-Off Rate During the Period as of September 30, 2020 as of September 30, 2020 ‘in RMB thousands) in RMB thousands) 2016 53,805,112 5,035,620 9.4% 2018 63,176,149 11,551,234 18
Slide 29: M3+ NCO by Vintage
BAHN YIREN DIGITAL M3+ NCO by Vintage ‘3+ Net Charge-Off Rate Yann Iooued Month on Book “4 7 0 6 19 SBS 2015Q1 0.8% 2.0% 3.4% 4.7% 5.7% 65% 7.1% 7.5% 7.71% 7.8% 7.8% | 1SQ2_— 08% 23% 38% 5.2% 6% 73% 19% 83% 85% 87% 88% 2015Q3 0.4% 1.6% 3.1% 4.4% 5.6% 65% 7.1% 7.6% 7.9% 8.1% 8.4% © WISQE 04% 6% 3.1%