Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Yirendai — Q1 2018 Earnings Presentation
37 slides from Yiren Digital's earnings presentation, 2018
Slide 1: Q1 2018 Investor Presentation
Q1 2018 Investor Presentation
Slide 2: Safe Harbor Statement
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 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. Pri
Slide 3: Yirendai at a Glance
Yirendai at a Glance WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Our founders started CreditEase in 2006, and created our online-dedicated business, Yirendai, in 2012 A leading FinTech company in China Targeting prime consumers Online wealth management for investors Full end-to-end online
Slide 4: The Leading Fintech Company in China
The Leading Fintech Company in China WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx FIRST lending mobile app in China at scale LARGEST online platform for consumption loans(1) Asian Banker Asian Banker Award 2017 Award 2018 WELL-KNOWN brand name in China for FinTech Ranked #1 among 2000+ onli
Slide 5: Addressing China's Consumer Finance Needs
Addressing China’s Consumer Finance Needs WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Traditional Yirendai Banking Solution Focus on Enterprise Huge Unmet Consumer Lending and High Net Credit and Wealth Worth Individuals Management Opportunity Market Innovative Online Offline Branch Office
Slide 6: Leading Fintech Company
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Leading Fintech Company Consumer Credit Wealth Management Prime Borrowers Mass Affluent Investors Yirendai Yiren Wealth Personalized Wealth Diversified Loan Management Products Services Standard Fast Track Insurance Housing Loans Loans Policy Loa
Slide 7: Investment Highlights
www.yirendai.com Investment Highlights
Slide 8: Key Investment Highlights
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Key Investment Highlights 1 Largely Untapped Consumer Credit & Wealth Management Market 2 Leading FinTech Company in China 3 Strong Online Credit Business Growth with Leading Market Share 4 Superior Asset Performance with Leading Online Risk Unde
Slide 9: Large Wealth Management Market
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Large Wealth Management Market Wealth Management Market in China China’s wealth management market (By population with investable assets of above RMB 600K, million) is heavily dominated by retail (over 70%) 28 17 Individual wealth management mar
Slide 10: Large Unsecured Consumer Credit Demand
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Large Unsecured Consumer Credit Demand (1) Unsecured Consumer Finance Market in China (1) Immediately addressable market: (By outstanding loan balance, USD Billion) prime borrowers with unmet credit 1,885 needs • USD 666 billion in 2015 • USD 1
Slide 11: A Leading Fintech Company in China
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 A Leading Fintech Company in China RMB 1.4 M 1.2 M 85.9 Billion Cumulative Cumulative Cumulative loan number of investors(1) number of borrowers(1) facilitations (1) RMB 214,231 174,128 43.8 Billion Number of investors in Q1 2018 Number of borr
Slide 12: Expanding Borrower Universe and Investor Base
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Expanding Borrower Universe and Investor Base Cumulatively Registered Borrowers Cumulatively Registered Investors (million) 63.2 (million) 64 6.9 7 56 6 48 5 40 4 32 24 3 16 2 8 1 0 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1Q16 2Q16 3Q16
Slide 13: Strong Momentum in Online Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 Strong Momentum in Online Growth Number of Online Borrowers Online Loan Volume Online vs. Offline Loan Volume (Thousand) (RMB Bn) (RMB Bn) 6.9 126.3 6.9 86.1 3.6 3.6 5.0 3.7 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 Online loan volume Offline loan volume 1
Slide 14: Extensive Data Set and Credit Decisioning Capabilities
4 Extensive Data Set and Credit Decisioning WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Capabilities Proprietary Extensive Data Set Risk Grid Decisioning Platform Big Data I Aggregation & Analysis Bank 400+ Location Statements Decisioning Rules Developed FICO II PBOC Credit Credit Card Chi
Slide 15: Yiren Wealth: Strong Growth Momentum
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Yiren Wealth: Strong Growth Momentum AUM Per Investor（1） Investment Yield (1) (RMB Bn) (RMB 000) (%) 9.5 50 150.0 9.2 129.8 129.9 9.0 8.9 8.7 39.6 40 117.1 37.8 120.0 8.5 8.2 8.2 100.1 7.9 7.9 7.9 8.0 7.9 31.9 86.8 30 82.1 90.0 7.5 74.2 26.2 60
Slide 16: Superior Technology Enabling Platform
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Superior Technology Enabling Platform Yirendai Enabling Platform (YEP) Launched in March 2017 Technology Risk Customer 76 industry Enabling Management Acquisition partners connected as of March 31, 2018 RMB 13.5m of revenue in Q1 2018 16 16
Slide 17: Financial Highlights
www.yirendai.com Financial Highlights
Slide 18: Marketplace Model
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 1 Marketplace Model Principal + Interest Borrowers Investors Transaction Fees Service Fees Loans 1 2 3 Transaction Fees from Borrowers Service Fees from Investors Other Revenue Charged to borrowers for loan Monthly management fee charged Includes
Slide 19: Disciplined Growth of Loan Facilitations
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 2 Disciplined Growth of Loan Facilitations (RMB Million) 14,000 13,439 13,000 12,185 11,957 12,000 11,000 10,000 9,000 8,536 8,000 7,246 6,883 7,000 6,000 5,617 5,000 4,539 4,000 3,302 3,447 3,000 2,551 2,084 2,000 1,621 1,121 1,000 686 170 252 0
Slide 20: 2018 Q1 Loan Facilitation Breakdown
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 3 2018 Q1 Loan Facilitation Breakdown 2018 Q1 Volume Risk Grade % (RMB billion) Ⅰ 1.1 9% Ⅱ 3.0 25% Ⅲ 3.0 26% Ⅳ 3.4 28% Ⅴ 1.5 12% Total 12.0 100% 20 20
Slide 21: Net Revenue Growth
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Revenue Growth (RMB Million) Annual Quarterly 13.7 15.8 13.4 16.1 16.2 15.6 15.6 14.1 13.9 12.4 13.6 13.3 6,000 1,825 5,543 1,800 1,593 1,600 1,514 5,000 1,400 4,000 1,183 1,200 1,071 3,238 1,022 1,000 3,000 877 800 734 2,000 600 556 1,314
Slide 22: Adjusted EBITDA
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Adjusted EBITDA Annual Quarterly (RMB Million) (RMB Million) 30.7 33.8 31.5 37.1 36.1 25.2 37.5 39.2 32.0 27.9 29.7 55.2 1,800.0 1,744 900.0 880 1,600.0 800.0 1,400.0 700.0 519 1,200.0 1,093 600.0 543 1,000.0 500.0 400 422 401 378 800.0 400.0 6
Slide 23: Net Income
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 4 Net Income Annual Quarterly (RMB Million) (RMB Million) 21.0 34.5 24.7 23.7 35.5 39.3 35.5 34.3 22.7 20.0 24.6 42.0 800.0 1,400.0 1,372 700.0 669 1,200.0 1,116 600.0 1,000.0 500.0 449 390 800.0 400.0 380 344 351 600.0 303 300.0 261 269 400.0 20
Slide 24: Attractive Economics
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 5 Attractive Economics 2018Q1 Economics (1) (Per US$ 100 loan originated) 6.6 13.4 1.2 2.9 0.4 2.3 Net Revenue Sales and marketing Origination and General and Tax and Interest Net Income servicing administrative Income (1) Calculated by dividing
Slide 25: Proven Credit Performance
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 6 Proven Credit Performance Cumulative M3+ Net Charge Off Rates (1) (2) Loans Facilitated Since 2015 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% 4 7 10 13 16 19 22 25 28 31 34 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 (1) A
Slide 26: Business Outlook
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 7 Business Outlook Fiscal Year 2018 (1) Total loans facilitated in the range of RMB 48 billion to RMB 52 billion (1) The business outlook reflects the Company’s current and preliminary view and is subject to change. The business outlook does not
Slide 27: Appendix
www.yirendai.com Appendix
Slide 28: Income Statement (1/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Income Statement (1/2) Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended March 31, 2017 March 31, 2018 March 31, 2018 RMB RMB USD Net
Slide 29: Income Statement (2/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Income Statement (2/2) Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended March 31, 2017 March 31, 2018 March 31, 2018 RMB RMB USD Wei
Slide 30: Balance Sheet
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Balance Sheet Unaudited Consolidated Balance Sheet (in thousands, except for share, per share and per ADS data, and percentages) As of December 31, 2017 March 31, 2018 March 31, 2018 RMB RMB USD Cash and cash equivalents 1,857,175 1,666,866 265,7
Slide 31: Cash Flow Data
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx 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 March 31, 2017 March 31, 2018 March 31, 2018 RMB RMB USD Unaudited C
Slide 32: Operating Highlights (1/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Operating Highlights (1/2) 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 March 31, 2017 March 31, 2018 March 31,
Slide 33: Operating Highlights (2/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Operating Highlights (2/2) Operating Highlights (in thousands) As of December 31, 2017 March 31, 2018 March 31, 2018 RMB RMB USD Operating Highlights Remaining principal of performing loans 40,616,167 43,843,775 6,989,729 Remaining principal of p
Slide 34: Delinquency Rates
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Delinquency Rates Delinquency Rates Delinquent for 15-29 days 30-59 days 60-89 days All Loans December 31, 2013 0.2% 0.4% 0.3% December 31, 2014 0.3% 0.2% 0.2% December 31, 2015 0.4% 0.5% 0.4% December 31, 2016 0.4% 0.7% 0.6% December 31, 2017 0.
Slide 35: Net Charge-off Rates (1/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates (1/2) Net Charge-Off Rate for Upgraded Risk Grid Loan issued Customer Amount of loans facilitated Accumulated M3+ Net Charge-Off Total Net Charge-Off Rate period grade during the period as of March 31, 2018 as of March 31, 20
Slide 36: Net Charge-off Rates (2/2)
WARDED2014\7. Analyst Presentation\Cruise_AP_v31.pptx Net Charge-off Rates (2/2) M3+ Net Charge-Off Rate Loan issued Month on Book period 4 7 10 13 16 19 22 25 28 31 34 2013Q1 1.9% 3.2% 3.1% 2.3% 2.0% 0.9% 0.5% 0.5% 0.4% 0.4% 0.4% 2013Q2 1.8% 3.6% 4.5% 5.9% 6.4% 7.4% 6.1% 7.0% 7.5% 7.5% 7.8% 2013Q3
Slide 37: A Leading Online Consumer Finance Marketplace in China
A Leading Online Consumer Finance Marketplace in China 37