Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Investor Presentation (2022)
30 slides from Yiren Digital's investor presentation, 2022
Slide 1: Yiren Digital Investor Presentation 1H22
Yiren Digital Investor Presentation 1H22 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: 1H22 Highlights
1H22 Highlights +96% +60% +28% +15% yoy yoy yoy yoy Number of Total Insurance Total Client Net Income borrowers Premiums Asset served 4
Slide 5: Wealth Solutions Gaining Traction
Wealth Solutions Gaining Traction Total Client Asset Number of Active clients from Hexiang and Yiren Select (RMB Million) 25,000 23,380 700,000 578,562 600,000 20,000 500,000 14,660 15,000 385,536 400,000 300,000 10,000 200,000 5,000 100,000 0 0 1H21 1H22 1H21 1H22 Note 1: Active clients refer to th
Slide 6: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (RMB Million) 900,000 827,767 800,000 12,000 700,000 10,183 646,486 10,000 9,541 600,000 8,000 500,000 400,000 6,000 300,000 4,000 200,000 2,000 100,000 0 0 1H21 1H22 1H21 1H22 Note 1: The decline in loan volumes facilitated i
Slide 7: Financial Metrics
Financial Metrics Net Revenue GAAP Net Income (RMB Million) (RMB Million) 2,500 2,225 500 439 450 2,000 400 381 1,506 350 1,500 300 250 1,000 200 150 500 100 50 0 0 1H21 2H22 1H21 1H22 Note 1: The company has been proactively optimizing its product structure and shifting towards a shorter-tenor loan
Slide 8: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 2.0% 1.9% 1.5% 1.5% 1.4% 1.3% 1.2% 1.0% 0.9% 0.9% 0.8% 0.7% 0.6% 0.6% 0.5% FY19 FY20 FY21 1Q22 2Q22 Note: Delinquency rate uptick in 1Q22 was driven by the deterioration of offline asset amid the pandemic. The Company started to optimize its offline
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 Holistic Wealth Comprehensive Financial Management Solutions Cash account Insurance account Investment accounts liquidity Management Wealth Protection Wealth Appreciation Consumption + Business Protection Investment
Slide 11: 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 11
Slide 12: Credit-tech Business Mapping
Credit-tech Business Mapping Diversified product matrix, covering different senarios Unsecured revolving loans SME loans Online Young Internet customers/ employees with stable income Online Covering a variety of life scenarios Small business and flexible credit needs owners Offline with recurring op
Slide 13: 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 E-commerce Platforms Lifestyle Financial Services E-commerce Offers flexible installment-based Travel Entertainment payment options Average Principal Amt Loan T
Slide 14: 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 15: Holistic Wealth Solutions
Holistic Wealth Solutions Customer Spectrum Positioning Products Retail Clients Corporates l Partnering with over 200 corporates/institutions u One-stop holistic wealth Credit-Tech CreditEase Ecosystem solutions platform targeting l Catering to the comprehensive the mass affluent needs of mass afflu
Slide 16: Hexiang Insurance: Business Highlight and Differentiation
Hexiang Insurance: Business Highlight 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 capaciti
Slide 17: 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
Slide 18: Yiren Select: One-stop Holistic Wealth Solution Platform
Yiren Select: One-stop Holistic Wealth Solution Platform Holistic Wealth Selected Life Study Investment Financial product and institutional service Health management Self-improvement Asset Allocation partners suppliers sports and Leisure and child Knowledge and education strategy Yiren Communities -
Slide 19: Revenue Models and Monetization
Revenue Models and Monetization Hexiang Insurance Broker Insurance commissions Holistic Wealth Yiren Select Platform Referral and advertising fees External funding Loan facilitation/post facilitation service fees (Customer acquisition, partners risk profiling, collection, etc.) Credit-Tech Loan Loan
Slide 20: 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 Solutions Protection 4 Driving up
Slide 21: Massive Opportunity in China's Personal Financial Services Industry
Massive Opportunity in China’s Personal Financial Services Industry Wealth Solution Consumer Credit Increasing Investment Consumer 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 Cl
Slide 22: Appendix
APPENDIX 22
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 Six Months Ended June30, June 30, June 30, Loan facilitation services 1,093,505 503,386 75,154 18,033 224,823 381.295 439.316 65.588 Weight
Slide 24: Cash Flow Data
Cash Flow Data 4 BASE YIREN DIGITAL Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Six Months Ended June 30, June 30, June 30, 2021 2022 2022 RMB RMB USD Unaudited Condensed Consolidated Cash Flow Data N
Slide 25: Balance Sheet
Balance Sheet Unaudited Condensed Consolidated Balance Sheets (in thousands) As of December 31, June30, Tune 30, 2021 2022 2022 RMB RMB USD ‘Cash and cash equivalents 2,864,543 4,354,487 650,108 Accounts receivable 305,018 297,939 44,481 Contract cost 9,959 2,545 380 Loans at fair value 73,734 19,81
Slide 26: Operating Highlights
Operating Highlights Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of investors and percentages) For the Six Months Ended Tune 30, Tune 30, ‘Tune 30, RMB RMB USD I : i i i i i 11,166,657 10,918,580 1,630,101 Amount of loans
Slide 27: Delinquency Rates
Delinquency Rates Delinquency Rates (Loan Facilitation Model) 15-29 days 30-59 day : December 31, 2019 0.8% 1.3% 1.0% December 31, 2021 0.9% 1.5% 12% June 30, 2022 0.6% 1.4% 15% Online Channels December 31, 2020 0.6% 3 1.1% March 31, 2022 0.7% 1.5% 13% December 31, 2019 2 3 0.7% 3 2 December 31, 202
Slide 28: M3+ NCO by Vintage
M3+ NCO by Vintage ASA Net Charge-Off Rate (Loan Facilitation Model) Loan Amount of Loans Accumulated M3+ Net Total Net Charge-Off Issued Facilitated Charge-Off Rate Period a the Period as of June 30, 2022 as of June 30, 2022 2020 9,614,819 746,922 78% 4,606,889 30,001 0.7% 2022Q1
Slide 29: M3+ NCO by Vintage
M3+ NCO by Vintage M3+ Net Charge-Off Rate (Loan Facilitation Model) ai’ Month on Book 4 7 10 13 16 19 22 25 28 31 34 2019Q1 0.0% 0.8% 2.0% 34% 5.3% 59% 63% 63% 63% 63% 63% 2019Q2 0.1% 15% 45% 7.5% 88% 92% 9.9% 10.3% 10.6% 10.6% 10.6% 2019Q3 0.2% 2.9% 68% 9.0% 104% 12.0% 13.2% 13.8% 144% 146% 2019Q4
Slide 30: Thanks!
THANKS! 30