Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q1 2023 Earnings Presentation
25 slides from Yiren Digital's earnings presentation, Jun 9, 2023
Slide 1: Yiren Digital Investor Presentation 1Q23
Yiren Digital Investor Presentation 1Q23 1
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: Company Overview
fj HAS YIREN Sei] Company Overview » .,.,°,°|©;«€©«©™©5»]»«=©=©—lCUOC,Z7?’rrm®: ee
Slide 4: Credit-Tech Holistic Wealth
Yiren Digital: A Leading Digital Personal Financial Management Platform Credit-Tech Holistic Wealth Comprehensive Financial Management Solutions Cash account Insurance account Membership liquidity Management Wealth Protection account Consumption + Business Protection Others Operation 4
Slide 5: 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 5
Slide 6: Acquire High-Quality Borrowers through Diversified Consumption Scenarios
Acquire High-Quality Borrowers through Diversified Consumption Scenarios 1 2 Self-Developed Multi-acquistion Channels E-commerce Platform Lifestyle Financial Services E-commerce Offers flexible installment-based Travel/Entertainment payment options Average Principal Amt Loan Tenure Target Customer B
Slide 7: 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 8: 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 9: Revenue Models and Monetization
Revenue Models and Monetization Hexiang Insurance Broker Insurance commissions Holistic Wealth Advertising fees, membership Others service fees etc. External funding Loan facilitation/post facilitation service fees (Customer acquisition, partners risk profiling, collection, etc.) Credit-Tech Loan Lo
Slide 10: Four Essential Growth Pillars
Four Esstential Growth Pillars Membership Insurance Credit Data & Tech Services • Continous product innovation to cater to Harnessing the power of Driving business growth Better engage existing data, technology, and AI through product innovation, diversified consumption users - improve retention sce
Slide 11: Key Financial & Operational Highlights
Key Financial & Operational Highlights 11
Slide 12: What We Achieved in 1Q23
What We Achieved in 1Q23 +15% +59% +71% +17pp yoy yoy yoy yoy Cumulative Net Income Total Insurance # of Borrowers Insurance Margin Premiums Served Clients 12
Slide 13: Hexiang Insurance: A New Key Growth Pillar
Hexiang Insurance: A New Key Growth Pillar Gross Written Premiums Cumulative Number of Insurance Clients (RMB Million) 1,335 1,007,238 924,824 866,874 997 923 755,819 806 798 633,431 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 13
Slide 14: 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) 862,226 872,235 6,784 6,299 6,420 737,320 4,934 556,094 4,607 508,746 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 14
Slide 15: Robust Revenue and Profitability through Challenging Environments
Robust Revenue and Profitablity through Challenging Environments Net Revenue GAAP Net Income (RMB Million) (RMB Million) 1,088 485 986 427 841 801 705 270 254 185 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 15
Slide 16: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 1.5% 1.3% 1.2% 1.3% 1.2% 1.2% 1.1% 1.0% 0.9% 0.8% 0.7% 0.7% 0.6% 0.6% 0.5% FY19 FY20 FY21 FY22 1Q23 16
Slide 17: APPENDIX
APPENDIX 17
Slide 18: Income Statement
Income Stament Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) Net revenue: Loan facilitation services Post-origination services Insurance brokerage services Financing services Electronic commerce services Others
Slide 19: Cash Flow Data
Cash Flow Data S| 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 March31, | March31, | March 31, 2022 2023 2023 RMB RMB USD Net cash generated from operating activit
Slide 20: Balance Sheet
Balance Sheet Unaudited Condensed Consolidated Balance Sheets Cash and cash equivalents Restricted cash Accounts receivable Contract assets, net Contract cost Prepaid expenses and other assets Loans at fair value Financing receivables Amounts due from related parties ‘Held-to-maturity investments Av
Slide 21: 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) ‘March 31, March 31, 2022 2023 RMB RMB 806,355 923,382 134,455 : ; 1 266,313 296.068 43.111 633.431 1,007,238 1,007,238 | 508.
Slide 22: Delinquency Rates
Delinquency Rates yj aAen YIREN DIGITAL
Slide 23: NCOs
NCOs fj BASE YIREN DIGITAL Net Charge-Off Rate Amount of Loans Accumulated M3+ Net Total Net Charge-Off Loan Issued Facilitated Charge-Off Rate Period During the Period as of March 31, 2023 as of March 31, 2023 (in RMB thousands) (in RMB thousands) 2020 9,614,819 778.668 8.1% 2022 22,623,101 598,837
Slide 24: 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% 63% 6.3% 6.3% 6.3% 6.3% 2019Q2 0.1% 1.5% 4.5% 7.5% 88% 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% 2
Slide 25: THANKS!
THANKS! 25