Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Investor Presentation (June 2024)
30 slides from Yiren Digital's investor presentation, June 2024
Slide 1: Yiren Digital Investor Presentation
Yiren Digital Investor Presentation June,2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Yiren Digital solely for information purposes. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere els
Slide 3: Our Vision
Our Vision “Our vision is to elevate customers' life quality by delivering AI-powered digital services, while also empowering the technological capabilities of selected sectors.” Better tech. Better life.
Slide 4: Company Overview
01 Company Overview
Slide 5: A Leading AI-Driven Financial & Lifestyle Services Platform
A Leading AI-Driven Financial & Lifestyle Services Platform Diversified Business Lines Driving Innovation and Value Financial Services Life & Property Insurance Consumption and lifestyle Revolving loan services provide Customized insurance services to cater to Satisfying diverse quality-of-life need
Slide 6: Financial Services: Technology Driven Loan Facilitation Model
Financial Services: Technology Driven Loan Facilitation Model Loan Repayment Customer Referral， Credit Application Collections & Risk Mgmt Services AI Risk/Anti-Fraud Borrowers Institutional Post-facilitation Provides Funding Funding Services Partners Intelligent KYC E-Signing Platform Funding
Slide 7: Revolving Financing Services
Revolving Financing Services Precise Targeting, Diverse Acquisition Precise-targeting Customers Multi-acquisition Channels • 100mn+ borrowers served • Social media marketing • Mainly aged 25-40 • E-commerce & life service platforms • Stable salary or self-employed • Offline consumption scenarios Rev
Slide 8: Strong Risk Control Capability
Strong Risk Control Capability 18 years of experience and data accumulation in the credit-tech business Extensive Strong capability to understand data across economic cycles and the lifecycle of loans. Data Accumulation Over 100 million of registered users, and millions of customers’ database 20+ Cr
Slide 9: Data-powered Flywheel to Drive Growth
Data-powered Flywheel to Drive Growth More customers and repeat users More data plugged into Better products our AI-driven system to and services make it more intelligent and efficient Deliver more Attract more partners personalized user with better offerings experience and diverse and terms service
Slide 10: Insurance: Providing Full Spectrum Products and Services
Insurance: Providing Full Spectrum Products and Services Competitive edges: 1）Nationwide business deployment 2）Experienced teams on property, life insurance and internet industry 3）Strong capacities in product innovation and market expansion Customer Acquistion Multi-layer of customer needs Product
Slide 11: Insurance Growth Strategy: 2B2C Model
Insurance 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 2B Corporate Clients with diversified products. After being served by Hexiang, workin
Slide 12: Insurance: Diverse and Rich Resources and Networks
Insurance: Diverse and Rich Resources and Networks As of Mar.31 2024, 130+ Partner Institutions Nationwide 1000+ insurance products on the shelf Our Partnering Insurers
Slide 13: Revenue Models and Monetization
Revenue Models and Monetization External funding Loan facilitation & Post origination partners service fees1 Financial Loan facilitation & Post origination service fees1 Services YRD licensed Guarantee service fees subsidary Financing service fees Insurance Insurance Insurance commissions Brokerage
Slide 14: Key Financial Highlights
02 Key Financial Highlights
Slide 15: What We Achieved in 1Q24
What We Achieved in 1Q24 +86% +55% -1% +103% yoy yoy yoy yoy Gross # of Borrowers Loans Facilitated Total Premiums merchandise Served volume - Stable growth in revenue and business scale with strong profitability - Strong cash position and ample free cash flow - ‘AI Lab’ enhances core competitive ad
Slide 16: Continuous Expansion in Borrower Base Driving Stable Volume Growth
Continous Expansion in Borrower Base Driving Stable Volume Growth Number of Borrowers Loans Facilitated (RMB Million) 1Q24: 1,352,200 1Q24: -1% QoQ 1,371,501 +2% QoQ 11,646 11,910 +55% YoY 1,204,012 +86% YoY 9,814 1,013,972 862,226 872,235 8,156 737,320 6,784 6,299 6,420 556,094 508,746 4,934 4,607
Slide 17: Insurance Brokerage Business: Key Strategic Pillar
Insurance Brokerage Business : Key Strategic Pillar Gross Written Premiums Cumulative Number of Insurance Clients (RMB Million) 1Q24: 1Q24: -25% QoQ 1 +5% QoQ 1,343,660 1,283,102 -1% YoY 1 +33% YoY 1,256,762 1,428 1,133,069 1,335 1,332 1,007,238 1,209 924,824 866,874 997 923 912 755,819 806 798 633,
Slide 18: Stable Growth with Increased Business Scale
Stable Growth with Increased Business Scale Net Revenue GAAP Net Income (RMB Million) (RMB Million) 1Q24: 1Q24: +8% QoQ -15% QoQ +40% YoY +14% YoY 571 554 527 1,378 486 1,324 1,311 485 1,274 427 1,088 986 801 841 254 270 705 185 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2
Slide 19: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 1.6% 1.5% 1.4% 1.4% 1.3% 1.2% 1.3% 1.2% 1.1% 1.0% 0.9% 0.9% 0.9% 0.8% 0.7% 0.7% 0.6% 0.5% FY19 FY20 FY21 FY22 FY23 1Q24
Slide 20: Future Strategies
Future Strategies Financial service business Insurance brokerage Proactively adapting products and partnerships to 01 Expanding customer base and increasing line of credits for high quality borrowers through constantly-evolving AI systems and improved 02 embrace new regulations in the short-term, an
Slide 21: Investment Highlights
Investment Highlights Diversified Business Lines Driving Innovation and Value Comprehensive services covering a wide range of financial needs and consumption demands, strong synergies, healthy unit 01 economics with multiple growth drivers A Leading AI Business in the Making 02 Harnessing AI experti
Slide 22: Appendix
03 Appendix
Slide 23: Income Statement
Income Statement 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, March 31, March 31, 20320202 RMB RMB USD Net reveme Loan facilitation services 417,165 676,295, 93,666 — Posto
Slide 24: Cash Flow Data
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, March 31, March 31, 2023 2024 2024 RMB RMB uUsD Net cash aeaideal from hoe : activities 390,307 631,743 $7,495 N
Slide 25: Balance Sheets
Balance Sheets Unaudited Condensed Consolidated Balance Sheets (in thousands) As of December 31, March 31, March 31, 2023 2024 2024 RMB RMB USD Cash and cash equivalents 5,791,333 5,903,995 817,694 Restricted cash 267,271 89,221 12,357 Trading securities 76,053 77,967 10,798 Accounts receivable 499,
Slide 26: Operating Highlights
Operating Highlights Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (Gn thousands, except for number of borrowers, number of insurance clients, ‘cumulative number of insurance client2 and percentages) For the Three Month: Ended March 31, March 31, March 31, —2023__2024___2024_
Slide 27: Delinquency Rates
Delinquency Rates Delinquency Rates 15-29 at 30-59 1 60-89 Te December 31, 2020 0.5% 0.7% 0.6% December 31, 2022 0.7% 1.3% 1.1% March 31, 2024 0.9% 1.6% 1.4%
Slide 28: NCOs
NCOs Net Charge-Off Rate Amount of Loans Accumulated M3+ Net Total Net Charge- Loan Issued Facilitated Charge-Off Off Rate Period During the Period as of March 31, 2024 as of March 31, 2024 (in RMB thousands) (in RMB thousands) 2020 9,614,819 734,218 7.6% 2022 22,623,101 1,059,319 4.7%
Slide 29: NCOs by Vintage
NCOs by Vintage M3+ Net Charge-Off Rate Loan Issued Month on Book Period 4 7 10 13 16 19 22 25 28 31 34 2019Q1 0.0% 0.8% 2.0% 3.4% 5.3% 5.9% 6.3% 6.3% 6.3% 6.3% 6.3% 2019Q2 0.1% 1.5% 4.5% 7.5% 8.8% 9.2% 9.9% 10.3% 10.6% 10.6% 10.6% 2019Q3 0.2% 2.9% 6.8% 9.0% 10.4% 12.0% 13.2% 13.8% 14.4% 14.6% 14.6%
Slide 30: THANKS!
THANKS! For more information, please contact our IR team at ir@yiren.com Welcome to follow us on LinkedIn & X @Yiren Digital Ltd.