Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q3 2021 Earnings Presentation
31 slides from Yiren Digital's earnings presentation, November 2021
Slide 1: Yiren Digital Investor Presentation
Yiren Digital Investor Presentation Nov. 2021 1
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 Key Financial Updates 2 Business Models and Strategies 3
Slide 4: Q3 Highlights
Q3 Highlights +18% +30% +60% 27% qoq qoq qoq Wealth Number of Management as investors with New Loans Net Income % of Totoal over Rmb500k Revenue AUA 4
Slide 5: Wealth Management Gaining Traction
Wealth Management Gaining Traction Client Asset Per Investor1 Number of Active Investors2 (RMB millions) (RMB thousands) 450,000 427,873 18,000 259 280 243 270 400,000 385,536 260 16,000 250 240 230 350,000 14,000 220 307,107 192 210 200 300,000 12,000 172 190 180 170 250,000 10,000 160 150 115 140
Slide 6: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (Thousands) (RMB Million) 548 6,842 434 5,253 4,930 346 4,203 3,207 189 143 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 6
Slide 7: Financial Metrics
Financial Metrics Net Revenue Non-GAAP Net Income (RMB Million) (RMB Million) 321 1,232 1,161 1,100 1,125 1,023 200 181 96 80 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 7
Slide 8: Declining Delinquency Rate Remains Stable
Declining Delinquency Rate Remains Stable 15-29 days 30-59 days 60-89 days 1.8% 1.7% 1.3% 1.0% 1.0% 0.9% 0.8% 0.8% 0.8% 0.8% 0.7% 0.7% 0.6% 0.7% 0.6% 0.5% 0.5% 0.5% FY18 FY19 FY20 1Q21 2Q21 3Q21 8
Slide 9: Contents
Contents 1 Key Financial Updates 2 Business Models and Strategies 9
Slide 10: Yiren Digital: A Leading Digital Personal Financial Management Platform
Yiren Digital: A Leading Digital Personal Financial Management Platform Credit-Tech Wealth Management Comprehensive Financial Management Needs Cash account Investment accounts Insurance account liquidity Management Wealth Appreciation Wealth Protection Consumption Investment Protection 10 10
Slide 11: Wealth Management Business Mapping
Wealth Management Business Mapping Customer Spectrum Positioning Products Retail Investors Corporates Mass Mass Affluent HNW UHNW l 4000+financial products from over 60 financial u One-stop Wealth Credit-Tech CreditEase Ecosystem institutions Management Platform targeting the mass affluent l Non-fin
Slide 12: Yiren Wealth: One-stop Online Wealth Management Platform
Yiren Wealth: One-stop Online Wealth Management Platform Robot + Remote Consulting Underlying Assets Diverse Acqusition Channels Hybrid Model Legacy Customers Repeat Investors Cash Mgmt. Online Direct Acquisition Cross-selling KYC / Upselling Channel Partnership Mutual Selected Funds Tele-sales Port
Slide 13: Yiren Wealth: 'Finance plus life' Super-app Strategy
Yiren Wealth: ‘Finance plus life’ Super-app Strategy Serving you in a broader way Targeting Four Key Common Need Scenarios Health Study Lifestyle Family Medical treatment, Investment lessons, Membership malls, Parenting education, health managment, career management, selected entry lux, training cam
Slide 14: Hexiang Insurance: Business Model and Differentiation
Hexiang Insurance: Business Model and Differentiation • Differentiated positioning：Providing comprehensive customized and scenario-based insurance services • Competitive edges：1）Nationwide business deployment 2）Experienced teams on property, life insurance and internet industry 3）Strong capacities i
Slide 15: Hexiang Growth Strategy: 2B2C Model
Hexiang Growth Strategy：2B2C Model Customized Scenario-based Insurance Rich Application Scenarios products under 2B2C model Hexiang Insurance Medicine & Healthcare Travel & Leisure Serving both 2B and 2C clients with diversified products. 2B Corporate Clients After being served by Hexiang, working w
Slide 16: Credit Tech: Technology Driven Loan Facilitation Model
Credit Tech: Technology Driven Loan Facilitation Model Loan Repayment Customer Referral， Credit Application Collections & AI Risk/Anti-Fraud Risk Mgmt Services Institutional Borrowers Post-facilitation Funding Provides Funding Services Partners Intelligent KYC E-Signing Platform Funding 16
Slide 17: Credit-tech Business Mapping
Credit-tech Business Mapping Diversified product matrix + Integration of on/offline channels Unsecured revolving loans Auto Secured loans SME loans Online Young Internet customers/ employees with stable income Online Covering a variety of life scenarios Needs for longer-tenor Small business and flex
Slide 18: Full Spectrum of Credit Products: Small Revolving Loans
Full Spectrum of Credit Products : Small Revolving Loans 1 2 Customer Acquisition Channels Self-Developed Diversified Consumption Scenarios New Consumption Platforms Lifestyle Financial Services E-commerce Offers flexible installment-based Travel Entertainment payment options Average Principal Amt L
Slide 19: Full Spectrum of Credit Products: SME loans
Full Spectrum of Credit Products : SME loans SMEs Across Varied Industries Diversified Channel Partners Tech-driven Credit Service SaaS Machine Learning & Model Building Data-driven Risk Pricing E-commerce Cross-platform Customized Service Accumulatively Served Offline Stores Offers fast-track insta
Slide 20: Revenue Models and Monetization
Revenue Models and Monetization Yiren Wealth AUM based platform fees Platform Non-financial product/service fees Wealth Hexiang Insurance Management Broker Insurance commissions Loan facilitation service fees External funding (Customer acquisition, risk profiling, partners collection, etc.) Credit-T
Slide 21: Growth Strategy
Growth Strategy 1 Integrating different business lines 3 Credit-tech: In response to to explore customers’ long-term Consumption regulatory direction, transitioning to C comprehensive financial (moving to 24% APR customers)+ B management needs strategy (SMEs) Wealth Appreciation Protection 4 Driving
Slide 22: Massive Opportunity in China's Personal Financial Services Industry
Massive Opportunity in China’s Personal Financial Services Industry Wealth Management Consumer Credit Increasing Investment Customer Finance Needs Market in China (in RMB trillion) (By outstanding balance, RMB trillion) 350 40% 25 319 22.6 37% % 300 15 ： 30% 20 AGR 250 C 26% Mass Affluent Prime 192
Slide 23: Appendix
APPENDIX 23
Slide 24: Income Statement
Income Statement ‘Unaudited Condensed Consolidated Statements of Operations (im 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 30
Slide 25: Cash Flow Data
Cash Flow Data fj BASE YIREN DIGITAL 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, Septemb
Slide 26: Balance Sheet
Balance Sheet Unandited Condensed Consolidated Balance Sheets fj BAS (in thousands) Asof December 31, Tune 30, September 30, September 30, 2020 2021 2021 2021 RMB RMB RMB usp Cash and cash equivalents 2,469,909 2,192,500 2,328,380 361,359 Restricted cash 237,239 88,160 91,830 14,252 Accounts receiva
Slide 27: Operating Highlights
fj BAS YIREN DIGITAL Operating Highlights ‘Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures Gin 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 28: Delinquency Rates
Delinquency Rates Delinquency Rates (Loan Facilitation Model) 5-29 di 30-59 di 60-89 day December 31, 2015 13% 3 15% December 31, 2017 0.5% 3 0.6% December 31, 2019 0.8% 13% 3 March 31, 2021 0.5! & 0.8% 0.6 x _ 30, 2021 0.7% 0.9% 0.8% Online Channels December31,2015 0.4% = 0.7% = 0.5% December 31, 2
Slide 29: M3+ NCO by Vintage
M3+ NCO by Vintage ASH Net Charge-Off Rate (Loan Facilitation Model) Accumulated M3+ Net Total Net Charge-Off oon Amount of Loans Charge-Off Rate Period Facilitated as of September 30, as of September 30, ia During the Period 2021 2021 (in RMB thousands) (in RMB thousands) 2016 3,749,815 318,255 8.5
Slide 30: M3+ NCO by Vintage
M3+ NCO by Vintage M3+ Net Charge-Off Rate (Loan Facilitation Model) Loan Issued Month on Book Period 2015Q1 1.0% 19% 28% 3.7% 43% 48% 51% 53% 53% 53% 52% 2015Q3 0.6% 2.2% 3.8% 5.0% 59% 65% 67% 68% 6.7% 6.7% 67% 2016Q1 0.6% 0.9% 13% 1.7% 20% 22% 24% 2.7% 29% 3.0% 32% 2016Q3 04% 1.7% 2.7% 41% 53% 65%
Slide 31: Thanks!
THANKS! 31