Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q2 2021 Earnings Presentation
22 slides from Lexinfintech's earnings presentation, 2021
Slide 1: Investor Presentation 2Q21 Results
Investor Presentation 2Q21 Results
Slide 2: Who We Are
01 WHO WE ARE
Slide 3: We Are a Fast-Growing Consumer Finance Enabler in China
We Are a Fast-Growing Consumer Finance Enabler in China New Generation Consumers Technology-empowered Accessible credit and consumption scenarios superior user experience 143.9 mm+ Registered Users1 New Retail Merchants Financial Partners Fenqile Lehua Card Membership Le Installment Program Customer
Slide 4: We Serve the New Generation Consumers
We Serve the New Generation Consumers New Generation Consumers 26.3 Years Old Average Customer1 Age As of June 30, 2021 Customer Profile High High Consumption Strong Desire Strong Pursuit for Income Potential Needs to Build Credit Record Customer Experience 13K RMB Average Credit Limit in 2Q 2021 Le
Slide 5: We Connect Consumers to Our Flagship Products through Omni-Channels
We Connect Consumers to Our Flagship Products through Omni-Channels Fenqile Platform Lehua Card Le Installment Membership Program Products E-commerce platform Virtual credit tool1 at POS Installment at POS Loyalty program Value Consumption + Installment Payment + Credit Consumption + Credit Customer
Slide 6: We Offer Seamless Experience to Our Users
We Offer Seamless Experience to Our Users A Typical Day for New Generation Consumer 6:00 PM 9:00 PM Membership Grocery at Online Shopping Program 4:00 PM Supermarket New iPhone Release Membership Le Program Installment 2:00 PM Music Streaming Membership Membership Program 9:30 AM Program 12:00 PM Ri
Slide 7: We Have Extensive Merchant Relationships
We Have Extensive Merchant Relationships One card at hand, creating value for every penny spent Membership Management Loyalty Traffic Programs Acquisition Benefit Co-branded Bonus Card Card Card Consumer Relationship Management 5
Slide 8: We Enable Financial Institutions through Our Proprietary Systems
We Enable Financial Institutions through Our Proprietary Systems Superior Technology Solutions and… Lingxi Hawkeye Wormhole AI Platform Engine System 100% New Loans Facilitated from Institutional Funding …Diversified and Flexible Cooperation Models Credit Profit / Risk Borrowers Technology Facilitat
Slide 9: We Power Our Platform with Cutting-edge Technologies
We Power Our Platform with Cutting-edge Technologies 97% customer enquiries solved by AI Customer Service Smart Customer Complex Service Network User Behavior Robot Collection Risk Analysis Hawkeye Engine 99.8% applications Smart LBS Risk Recommen- processed automatically Assessment dation Wormhole
Slide 10: Our Technologies
02 OUR TECHNOLOGIES
Slide 11: Our Unique Lingxi AI Platform to Bring Superior Customer Experience
Our Unique Lingxi AI Platform to Bring Superior Customer Experience Smart Recommendation Smart Customer Service Smart Voice Quality Control Voice Big Data Deep Recognition Analytics Customer Base Learning Customer Text Logged-in Profiling Chatbot Recommen- Recognition Customer dation Algorithms Emot
Slide 12: Our Advanced and Customized Credit Risk Management
Our Advanced and Customized Credit Risk Management Hawkeye Engine: Automated and Dynamic Credit Approval Complex User Behavior Network Risk Analysis Bank Account Information, Email Community clustering In-App behavior pattern Social Media and Phone Information Number Data Assessing individual Matchi
Slide 13: Our Industry-leading Funding and Asset Allocation Technologies
Our Industry-leading Funding and Asset Allocation Technologies Wormhole System: Effective Connection between Individual Customers and Financial Institutions Wormhole Credit System Application 1 Funding Partners’ Risk Preferences Financial Institution A Funding Quota Credit Application 2 Algorithms F
Slide 14: Our Operation & Financial Metrics
03 OUR OPERATION & FINANCIAL METRICS
Slide 15: Stable Business Growth
Stable Business Growth Total Outstanding Loan Balance1 Key Metrics of Our Loan Products (RMB bn) 90.5 82.4 76.5 60.6 61.9 67.4 Nominal APR 15.5% 58.5 For 2Q21 51.5 40.6 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Average RMB13K Total Loan Originations2 Credit Limit For 2Q21 (RMB b
Slide 16: Strong Customer Acquisition
Strong Customer Acquisition (in thousands) Registered Customers Customers With Credit Line 32,942 143,890 30,264 131,803 27,727 118,099 25,222 106,261 22,692 95,324 20,665 19,356 84,201 16,704 73,253 13,474 62,635 50,166 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Jun 19 Sep 19 De
Slide 17: More Resilient Business Mix
More Resilient Business Mix Total Operating Revenue Gross Profit (RMB mm) (RMB mm) 3,188 3,269 3,148 3,155 2,958 3,033 2,944 238 217 620 1,701 1,661 2,493 2,500 419 614 1,478 1,520 717 636 200 287 1,369 1,099 968 978 1,323 1,969 1,788 2,025 1,914 1,846 1,686 1,837 2,208 167 970 1,036 1,143 527 570 5
Slide 18: Diversified Funding Channels and Stable Funding Cost
Diversified Funding Channels and Stable Funding Cost Profit / Risk-Sharing Model Weighted Average Interest Rate of Institutional Funding Partners % of New Loans Facilitated via Profit / Risk-Sharing Continued Optimization of Funding Cost1 Cooperation model with financial institutions (Off b/s loans,
Slide 19: Credit Statistics
Credit Statistics Vintage Charge-Off Curve 6.02% 5.55% 4.74% 2.97% 3.45% 3.40% 3.60% 3.37% 2.74% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 2.57% 2.99% 2.60% 1.56% 1.95% 1.84% 1.85% 1.42% 1.49% 1.40% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 15
Slide 20: Credit Statistics
Credit Statistics 30-day Delinquency by Vintage First Payment Default 30+ for New Originations 16
Slide 21: Well-maintained Operating Efficiency
Well-maintained Operating Efficiency Total Operating Expense1/Average Loan Balance2 Operating Expense Breakdown1/Average Loan Balance2 3.10% 2.60% 2.10% 1.60% 1.30% 1.30% 1.10% 1.40% 1.40% 1.20% 0.70% 0.80% 0.80% 0.70% 0.60% 0.70% 0.90% 1.10% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 2Q19 3Q19 4Q
Slide 22: Profitability Back to Pre-COVID19 Level
Profitability Back to Pre-COVID19 Level EBIT (GAAP)1 EBIT (Non-GAAP)2 (RMB mm) (RMB mm) 857 862 954 733 643 622 1,001 519 845 911 413 776 698 704 541 499 (791) (720) 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1 Net (loss)/income plus income tax (benefit
LexinFintech Holdings — Q2 2021 Earnings Presentation on 6ix