Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q4 2020 Earnings Presentation
31 slides from Yiren Digital's earnings presentation, March 2021
Slide 1: Q4 2020 Investor Presentation
Q4 2020 Investor Presentation March 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 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 3
Slide 4: Business Highlights
Business Highlights Leading Digital Personal Financial Services Platform in China Wealth Management: One-Stop Asset Allocation-based Service for the Mass Affluent Investors Consumer Credit: Full Spectrum of Credit Products with Both Online & Offline Channels Data and Technology at Core Strong Indust
Slide 5: Positioned as a Leading Digital Personal Financial Services Platform
Positioned as a Leading Digital Personal Financial Services Platform Income Generation Protection Consumption 5 5
Slide 6: Differentiated Business Model
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 6
Slide 7: Yiren Digital At A Glance, Q4 2020
Yiren Digital At A Glance, Q4 2020 Leading Digital Wealth Management Platform Leading Consumer Credit-Tech Player Total Client Asset Loan Balance Q4 2020 Q4 2020 ~RMB 8.6Bn ~RMB 23.6Bn No. of Active Investors1 No. of Borrowers Served Q4 2020 Q4 2020 ~164k ~189K Investor Service Customer Service AI R
Slide 8: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 8
Slide 9: Massive Opportunity in China's Personal Financial Services Industry
Massive Opportunity in China’s Personal Financial Services Industry Wealth Management Customer Finance Increasing Investment Needs Market in China (in RMB trillion) (By outstanding balance, RMB trillion) 350 319 40% 25 37% 22.6 300 30% 20 250 26% Mass Affluent Prime 192 Investors Borrowers 200 20% 1
Slide 10: 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 Mutual Funds for Mass Affluent Mass A
Slide 11: Wealth Management Business Model
Wealth Management Business Model Diverse Acqusition Channels Robo+Remote FA Hybrid Model Underlying Assets Existing Customers Cash Mgmt. Repeat Investment Online Direct Acquisition Cross Sale KYC / Up sale Equities Stocks Channel Partnership Portfolio Review Mutual Selected Funds and Rebalancing Inv
Slide 12: One-Stop Insurance Solution
One-Stop Insurance Solution Professionally Designed Investor Awareness Education System Seminar series, short-videos, articles KYC Intelligent KYC Robo+IA model, analyze customer needs Customized Plan Diverse Product Portfolio 190+ products from 20+ insurance companies, product comparison & Service
Slide 13: 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 14: Full Spectrum of Credit Products: ST Revolving Loans
Full Spectrum of Credit Products : ST Revolving Loans 1 2 Membership-based Multi-consumption Scenarios New Consumption Platform Lifestyle Financial Services E-commerce Offers flexible installment-based Travel Entertainment payment options Average Principal Amt Loan Tenure Target Customer Base < RMB2
Slide 15: Full Spectrum of Credit Products: Secured Auto Loans
Full Spectrum of Credit Products : Secured Auto Loans Customer Acquisition Channels Focused on 2nd & 3rd tier cities Nationwide Service Network Average auto value: ~RMB 70k Customer Referrals Targets new and second-hand car owners Average Principal Amt Loan Tenure Target Customer Base ~RMB 70,000 Av
Slide 16: Technology Driven Loan Facilitation Model
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: Growth Strategy
Growth Strategy Grow Wealth Management business through asset-allocation model with Wealth Management products: differentiate asset sourcing Maintain high quality customer credit asset growth through Online & Offline with new product offerings: short/small revolving loans, auto-loans Develop data an
Slide 18: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 18
Slide 19: Wealth Management Gaining Traction
Wealth Management Gaining Traction Client Asset Per Investor1 Number of Active Investors2 (RMB millions) (RMB thousands) 180,000 170,907 9,000 190 163,593 172 180 160,000 8,000 170 160 140,000 7,000 150 140 115 130 120,000 6,000 120 5,000 110 100,000 100 80 90 4,000 80,000 65 80 70 60,000 3,000 48 6
Slide 20: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (Thousands) (RMB Million) 189 4,203 143 3,207 115 108 2,402 1,839 1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20 20
Slide 21: Financial Metrics
Financial Metrics Net Revenue Non-GAAP Net Income (RMB Million) (RMB Million) 96 1,161 80 1,024 1,023 19 755 1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20 -232 21
Slide 22: THANKS!
THANKS! 22
Slide 23: Proven Credit Performance
Proven Credit Performance Cumulative M3+ NCO (as of December 31, 2020) Cumulative M3+ NCO (as of December 31, 2020) All Loans Institutional Funds 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 4 7 10 13 16 19 22 25 28 31 34 4 7 10 13 16 19 22 25 28 31 34 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2016Q1 2016Q2
Slide 24: APPENDIX
APPENDIX 24
Slide 25: Income Statement
lj BASIN YIREN DIGITAL 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 Forthe Vear Ended December September 30, December December December December 31, December 31, 20
Slide 26: Cash Flow Data
BAHN 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 Year Ended December September 30, December December December December3l1, December 31, 2019 202
Slide 27: Balance Sheet
Balance Sheet ‘Unandited Condensed Consolidated Balance Sheets (in thousands) Asof December September 30, December December 31,2019 2020 31, 2020 31,2020 RMB RMB RMB UsD De ‘Cash and cash equivalents 3,198,086 2,836,229 2,469,909 378,530 ~ Accounts receivable 3398 100,657 122.742 18.811 - Contract c
Slide 28: Operating Highlights
Operating Highlights (Operating Highlights and Reconciliation of GAAP to Non. GAAP Measures Gad ‘except for of of investors and) 2018 020 31,2000 31,2020 3.201981, 2020_ 31,2020 Ey Re ie tS EAE ie SD Operating Highlights Aamoact of investment ia legacy 755 2.60. 5302 138941203595 12372812 1.896216 ‘
Slide 29: Delinquency Rates
Delinquency Rates cj BASH Delinquency Rates Including:Loan Facilitation Model 15-29 days 30-59 days 60-89 days 15-29 days 30-59 days 60-89 days All Loans December 31, 2015 0.7% 12% 0.9% 13% 1.9% 15% December 31, 2016 0.6% 0.9% 0.8% 0.6% 0.8% 0.7% December 31, 2017 0.8% 1.0% 0.8% 0.5% 0.8% 0.6% Decem
Slide 30: M3+ NCO by Vintage
BAHN YIREN DIGITAL M3+ NCO by Vintage Including:Loan Facilitation Model Net Charge-Off Rate Accumulated M3+ Net Accumulated M3+ Net Total Net Charge-Off Loan Amount of Loans Charge-Off Total Net Charge-Off Amount of Loans Charge-Off Rate Issued Facilitated as of December 31, Rate Facilitated as of D
Slide 31: M3+ NCO by Vintage
Tj BASIN YIREN DIGITAL — — M3+ Net Charge-Off Rate Including: Loan Facilitation Model Loan Issued Month on Book Month on Book | Period ! 4 7 10 13 16 19 22 25 28 31 34 4 7 10 13 16 19 22 25 28 «43134 | 2015Q1 0.8% 2.0% 3.4% 4.7% 5.7% 6.5% 7.1% 75% 7.7% 78% 7.8% 1.0% 19% 2.7% 3.6% 4.3% 48% 5.1% 5.3%